This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1331a.CRG
DATE: 1/24/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1331 Commodities Produced by Forced Labor
SPONSOR(S): Constitutional Rights, Rule of Law & Government Operations Subcommittee, Yeager
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Constitutional Rights, Rule of Law &
Government Operations Subcommittee
14 Y, 0 N, As CS Poreda Miller
2) State Administration & Technology
Appropriations Subcommittee
3) State Affairs Committee
SUMMARY ANALYSIS
Florida law requires state agencies that wish to procure commodities or contractual services in excess of
$35,000 to use a competitive solicitation process. Depending on the type of contract and scope of work or
goods sought, an agency may use one of three procurement methods: invitation to bid, request for proposals,
or invitation to negotiate.
Any vendor that wishes to provide goods or services to the state must register in the Vendor Registration
System. The Department of Management Services (DMS) maintains a vendor list based on the vendor
registration process and has been granted authority to remove from its vendor list any source of supply that
fails to fulfill any of its duties specified in a contract. DMS also maintains lists of disqualified, scrutinized or
removed vendors.
The term “forced labor” has been defined by the United States (U.S.), as part of the Tariff Act of 1930 (Act), to
mean “all work or service which is exacted from any person under the menace of any penalty for its
nonperformance and for which the worker does not offer himself voluntarily, including forced or indentured
child labor. The Act also prohibits importing any product into the U.S. that was mined, produced, or
manufactured wholly or in part by forced labor, with some limited exceptions.
The bill directs DMS to create and maintain the “Forced Labor Vendor List” (List) of companies who have
provided to an agency a commodity produced, in whole or in part, by forced labor.
The bill prohibits vendors from submitting a bid, proposal, or reply to an agency, or entering into or renewing a
contract to provide goods or services to an agency, after its placement on the List and agencies may not
accept a bid, proposal, or reply from, or enter into or renew any contract with, a vendor that is on the List.
Companies placed on the List are automatically removed after 365 days, unless a petition for removal is
granted earlier than the end of that period.
The bill may have an indeterminate but neutral fiscal impact. See Fiscal Comments.
STORAGE NAME: h1331a.CRG PAGE: 2
DATE: 1/24/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Government Contracting and Procurement
The Department of Management Services (DMS) is statutorily designated as the primary state agency
overseeing procurement.
1
Its responsibilities include creating uniform agency procurement rules,
2
implementing the online procurement program,
3
and procuring state term contracts.
4
DMS also is
responsible for registering vendors that wish to provide goods or services to the state
5
and maintaining
lists of vendors who may not submit bids, proposals, or replies to agency solicitations.
6
Florida law creates the procurement and contracting procedures for most state agencies.
7
In general,
the law requires the use of a competitive solicitation
8
process when agencies wish to procure
commodities or contractual services that cost more than $35,000,
9
with certain exceptions.
10
Depending
on the type of contract and scope of work or goods sought, an agency may use one of three
procurement methods:
Invitation to bid (ITB) — An agency must use an ITB when the agency is capable of specifically
defining the scope of work for which a contractual service is required or when the agency is
capable of establishing precise specifications defining the actual commodity or group of
commodities required.
11
Request for proposals (RFP) — An agency must use an RFP when the purposes and uses for
which the commodity, group of commodities, or contractual service being sought can be
specifically defined and the agency is capable of identifying necessary deliverables.
12
Invitation to negotiate (ITN) — An ITN is a solicitation used by an agency that is intended to
determine the best method for achieving a specific goal or solving a particular problem and
identifies one or more responsive vendors with which the agency may negotiate in order to
receive the best value.
13
A competitive solicitation for contractual services in excess of $35,000 must be evidenced by a written
agreement (contract) embodying all provisions and conditions of the procurement.
14
The contract must
include, but not be limited to, provisions on the following:
1
See ss. 287.032 and 287.042, F.S.
2
See ss. 287.032(2) and 287.042(3), (4), and (12), F.S.
3
See s. 287.057(24), F.S.
4
See ss. 287.042(2) and 287.056, F.S.
5
See ss. 287.032 and 287.042, F.S.; see also Department of Management Services, Vendor Registration and Vendor Lists,
https://www.dms.myflorida.com/business_operations/state_purchasing/state_agency_resources/vendor_registration_and_vendor_lists
(last visited January 19, 2024).
6
Ss. 287.1351, 287.133, 287.134, and 287.137, F.S.
7
See ch. 287, F.S. “Agency” means any of the various state officers, departments, boards, commissions, divisions, bureaus, and
councils and any other unit of organization, however designated, of the executive branch of state government. “Agency” does not
include the university and college boards of trustees or the state universities and colleges. S. 287.012(1), F.S.
8
“Competitive solicitation” means the process of requesting and receiving two or more sealed bids, proposals, or replies submitted by
responsive vendors in accordance with the terms of a competitive process, regardless of the method of procurement. S. 287.012(6),
F.S.
9
S. 287.057, F.S. $35,000 is the minimum threshold for Category 2 purchases, one of four purchasing categories. See s.287.017, F.S.
10
See s. 287.057(3)(e), F.S.
11
S. 287.057(1)(a), F.S.
12
S. 287.057(1)(b), F.S.
13
S. 287.057(1)(c), F.S.
14
S. 287.058(1), F.S., provides an exception for the written agreement for contractual services that provide health and mental health
services or drugs in the examination, diagnosis, or treatment of sick or injured state employees or provide other benefits as required by
ch. 440, F.S. STORAGE NAME: h1331a.CRG PAGE: 3
DATE: 1/24/2024
Bills for fees or other compensation for services or expenses must be submitted in detail
sufficient for a proper preaudit and postaudit of such items;
15
Bills for any travel expenses be submitted in accordance with the law on per diem and travel
expenses of public officers, employees, or authorized persons;
16
Allowing unilateral cancellation by the agency for refusal by the contractor to allow public access
to all documents, papers, letters, or other material made or received by the contractor in
conjunction with the contract, unless the records are exempt;
17
Specifying a scope of work clearly establishing all tasks the contractor is required to perform;
18
Dividing the contract into quantifiable, measurable, and verifiable units of deliverables that must
be received and accepted in writing by the contract manager before payment;
19
Specifying the performance criteria and the final date by which such criteria must be met for
completion of the contract;
20
Specifying the conditions that must be met for a renewal of the contract, including, but not
limited to:
21
o The contract may be renewed for a period not exceeding three years or the term of the
original contract, whichever is longer;
o The renewal price for the contractual service as set forth in the bid, proposal, or reply;
o Specifying that contract renewals are contingent upon satisfactory performance
evaluations by the agency and subject to the availability of funds;
Specifying the financial consequences if the contractor fails to perform in accordance with the
contract;
22
and
Addressing the property rights of any intellectual property related to the contract and the specific
rights of the state regarding the intellectual property if the contractor fails to provide the services
or is no longer providing services.
23
The contract must be signed by the agency head or designee and the contractor before the rendering
of any contractual service in excess of $35,000.
24
The Chief Financial Officer (CFO) may waive the
contracting requirements for the procurement of certain specified commodities or services, unless
otherwise provided in the annual General Appropriations Act (GAA) or the substantive bill implementing
the GAA.
25
A contract may not prohibit a contractor from lobbying the executive or legislative branch
concerning the scope of services, performance, term, or compensation regarding any contract to which
the contractor and a state agency are parties, after contract execution and during the contract term.
26
Each public agency contract for services must authorize the public agency to inspect the following
records within 10 days after the agency makes a request:
27
Financial records, papers, and documents of the contractor that are directly related to the
performance of the contract or the expenditure of state funds.
28
Programmatic records, papers, and documents of the contractor that the public agency
determines are necessary to monitor the performance of the contract or to ensure that the terms
of the contract are being met.
29
15
S. 287.058(1)(a), F.S.
16
S. 287.058(1)(b), F.S.
17
S. 287.058(1)(c), F.S.
18
S. 287.058(1)(d), F.S.
19
S. 287.058(1)(e), F.S.
20
S. 287.058(1)(f), F.S.
21
S. 287.058(1)(g), F.S.
22
S. 287.058(1)(h), F.S.
23
S. 287.058(1)(i), F.S.
24
S. 287.058(2), F.S.
25
S. 287.058(5), F.S., incorporates s. 287.057(3)(e), F.S., which lists 13 specific types of commodities or services for which the
contracting requirement may be waived, including, for example, artistic services, lectures by individuals, certain health services,
family placement services, and services or commodities provided by governmental entities.
26
S. 287.058(6), F.S.
27
S. 216.1366(1), F.S.
28
S. 216.1366(1)(a), F.S.
29
S. 216.1366(1)(b), F.S. STORAGE NAME: h1331a.CRG PAGE: 4
DATE: 1/24/2024
Vendors
Vendors seeking to provide goods or services to the state must register in the Vendor Registration
System. In order to register, a vendor must provide its company name, federal tax identification
number, tax filing name, business location, commodities and services offered, and certified business
and enterprise status. Once registered, vendors are able to do business with the State of Florida
executive branch agencies through the Vendor Information Portal (VIP). The VIP is designed to
streamline interactions with vendors and state government entities that purchase goods and services.
The system provides a portal where vendors can complete the registration process, receive information
on upcoming bids, post information on products and services they can provide, receive purchase
orders, view payment information, and review their performance.
30
The Vendor Bid System (VBS) allows agencies to post competitive solicitations of $35,000 or more for
all vendors to review. Vendors can then bid, submit proposals, or submit a request to negotiate with the
agency through the VBS, and be notified if their bid has been chosen.
31
DMS Vendor Lists
DMS maintains a vendor list based on the vendor registration process,
32
and may remove from the
vendor list any source of supply that fails to fulfill any of its duties specified in a contract.
33
DMS also
maintains the following lists of disqualified, scrutinized, or removed vendors:
Suspended Vendor List;
34
Convicted Vendor List;
35
Discriminatory Vendor List;
36
Antitrust Violator Vendor List;
37
and
Scrutinized List of Prohibited Companies.
38
Suspended Vendor List
DMS maintains a list of vendors that have been removed from the vendor list for failing to fulfill any
duties specified in their contracts with the state.
39
If a vendor fails to perform the duties provided in the
vendor’s contract, the agency must notify DMS if the vendor meets the grounds for suspension and
provide documentation.
40
If DMS determines good cause exists to remove the vendor, DMS must then
notify the vendor in writing of its intent to remove the vendor from the vendor list and of the vendor's
right to file a petition for an administrative hearing.
41
A vendor on the suspended vendor list is not
eligible to receive a contract from any agency until the vendor is removed from the suspended vendor
list.
42
A vendor placed on the suspended vendor list must wait at least one year before it may file a
petition with DMS for removal from the suspended vendor list.
43
If a petition for removal is denied, the
vendor must wait at least nine months after the date of the denial before petitioning for another hearing.
DMS may petition for a suspended vendor's removal before the expiration of such period if, in the
30
The Department of Management Services, Vendor Resources, available at
https://www.dms.myflorida.com/business_operations/state_purchasing/vendor_resources (last visited, January 18, 2024).
31
Id.
32
S. 287.042, F.S. See also The Department of Management Services, Vendor Resources, available at
https://www.dms.myflorida.com/business_operations/state_purchasing/vendor_resources (last visited, January 18, 2024).
33
S. 287.042(1)(b), F.S.
34
S. 287.1351, F.S.
35
S. 287.133, F.S.
36
S. 287.134, F.S.
37
S. 287.137, F.S.
38
S. 287.135, F.S.
39
S. 287.1351, F.S. See Vendor Registration and Vendor Lists, available at
https://www.dms.myflorida.com/business_operations/state_purchasing/state_agency_resources/vendor_registration_and_vendor_lists
(last visited January 18, 2024).
40
S. 287.1351(2), F.S.
41
S. 287.1351(3), F.S.
42
S. 287.1351(2)(b), F.S.
43
S. 287.1351(5)(a), F.S. STORAGE NAME: h1331a.CRG PAGE: 5
DATE: 1/24/2024
discretion of DMS, removing that vendor from the suspended vendor list would be in the public
interest.
44
Currently, five vendors are on the Suspended Vendor List.
45
Convicted Vendor List
DMS has a list of vendors who have been disqualified from the public contracting and purchasing
process due to conviction for a public entity crime.
46
A vendor who has been placed on the convicted
vendor list may not submit a bid, proposal, or reply on a contract to provide goods or services to a
public entity, and a public entity may not accept any bid, proposal, or reply from, award any contract to,
or contract any business with, a vendor on the convicted vendor list.
47
After receiving information that a vendor has been convicted of a public entity crime, DMS must
investigate and determine whether good cause exists to place the vendor on the convicted vendor list.
If good cause exists, DMS must provide written notification to the vendor of its intent to place that
vendor on the convicted vendor list and of the vendors’ legal rights. If the vendor does not request an
administrative hearing, DMS must enter a final order placing the vendor on the convicted vendor list.
48
A vendor placed on the convicted vendor list may petition for removal from the list no sooner than six
months from the date of the final order placing the vendor on that list. A vendor’s removal is subject to
such conditions as may be prescribed by the administrative law judge (ALJ) upon a determination that
removal from the list is in the public interest. If a petition for removal is denied, the vendor may not
petition for another hearing on removal for a period of nine months after such denial, unless the petition
is based upon a reversal of the conviction on appellate review or a pardon. DMS may petition for
removal prior to the expiration of such period if, in its discretion, it determines that removal would be in
the public interest.
49
Currently, there are no vendors on the Convicted Vendor List.
50
Discriminatory Vendor List
DMS maintains a list of entities that have been disqualified from participating in the state contracting
and purchasing process due to a violation of any state or federal law prohibiting discrimination on the
basis of race, gender, national origin, disability, or religion.
51
An entity or affiliate who has been placed
on the discriminatory vendor list may not submit a bid, proposal, or reply on a contract to provide any
goods or services to a public entity.
52
The investigative and administrative process for discriminatory vendors is the same as that described
above for the convicted vendor list, including the removal process and specified timelines.
53
44
S. 287.1351(5)(b), F.S.
45
Department of Management Services, Suspended Vendor List, available at
https://www.dms.myflorida.com/business_operations/state_purchasing/state_agency_resources/vendor_registration_and_vendor_lists/
suspended_vendor_list (last visited January 18, 2024).
46
S. 287.133, F.S. The term “public entity” means the State of Florida, any of its departments or agencies, or any political subdivision.
S. 287.133(1)(f), F.S. The term “public entity crime” means a violation of any state or federal law by a person with respect to and
directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or
with the United States, including, but not limited to, any bid, proposal, reply, or contract for goods or services, any lease for real
property, or any contract for the construction or repair of a public building or public work, involving antitrust, fraud, theft, bribery,
collusion, racketeering, conspiracy, or material misrepresentation. S. 287.133(1)(g), F.S.
47
S. 287.133(2)(b), F.S.
48
S. 287.133(3)(e), F.S.
49
Id.
50
Department of Management Services, Convicted Vendor List, Available at
https://www.dms.myflorida.com/business_operations/state_purchasing/state_agency_resources/vendor_registration_and_vendor_lists/
convicted_vendor_list (last visited January 19, 2024)
51
S. 287.134(3)(c), F.S.
52
S. 287.134(2)(a), F.S.
53
S. 287.134(3)(e), F.S. STORAGE NAME: h1331a.CRG PAGE: 6
DATE: 1/24/2024
Currently, there are no vendors on the Discriminatory Vendor List.
54
Antitrust Violator Vendor List
DMS maintains a list of entities disqualified from the public contracting and purchasing process
following a conviction or being held civilly liable for an antitrust violation.
55
An entity or affiliate placed
on the antitrust violator vendor list may not submit a bid, proposal, or reply on a contract to provide any
goods or services to a public entity.
56
The investigative and administrative process for discriminatory vendors is the same as that described
above for the convicted vendor list, including the removal process and specified timelines.
57
Currently, there are no vendors on the Antitrust Violator Vendor List.
58
Scrutinized List of Prohibited Companies
The Florida State Board of Administration is charged with maintaining a complete list of scrutinized
companies.
59
An company is prohibited from bidding on, submitting a proposal for, or entering into or
renewing a contract with an agency or local government entity for goods or services of any amount if
the company is on the Scrutinized Companies that Boycott Israel List.
60
Companies are prohibited from
bidding on, submitting a proposal for, or entering into or renewing a contract with an agency or local
government entity for goods or services of $1 million or more if the company is on the Scrutinized
Companies with Activities in Sudan List or the Scrutinized Companies with Activities in Iran Terrorism
Sectors List.
61
There are currently 70 companies on the Scrutinized List of Prohibited Companies as of December 19,
2023.
62
Forced Labor
The term “forced labor” is defined by the United States (U.S.), as part of the Tariff Act of 1930 (Act), to
mean “all work or service which is exacted from any person under the menace of any penalty for its
nonperformance and for which the worker does not offer himself voluntarily, including forced or
indentured child labor.”
63
The Act also prohibits importing any product into the U.S. that was mined,
produced, or manufactured wholly or in part by forced labor, with some limited exceptions.
64
On June 12, 1999, President Clinton signed an executive order titled Prohibition of Acquisition of
Products Produced by Forced or Indentured Child Labor.
65
The Executive Order stated that all
“executive agencies shall take appropriate actions to enforce the laws prohibiting the manufacture or
54
Department of Management Services, Discriminatory Vendor List, available at
https://www.dms.myflorida.com/business_operations/state_purchasing/state_agency_resources/vendor_registration_and_vendor_lists/
discriminatory_vendor_list (last visited January 19, 2024).
55
S. 287.137(3)(b), F.S.
56
S. 287.137(2)(a), F.S.
57
S. 287.137(3), F.S.
58
Department of Management Services, Antitrust Violator Vendor List, available at
https://www.dms.myflorida.com/business_operations/state_purchasing/state_agency_resources/vendor_registration_and_vendor_lists/
antitrust_violator_vendor_list (last visited January 19, 2024).
59
S. 215.473, F.S.
60
S. 287.135(2), F.S.
61
S. 287.135(2)(b)1., F.S.
62
Florida State Board of Administration, Protecting Florida’s Investments Act (PFIA) and the Global Governance Mandates
Quarterly Report, available at
https://www.sbafla.com/fsb/Portals/FSB/Content/Performance/Quarterly/2023_12_19_Web_Update_PFIA_Prohibited_List.pdf?ver=2
023-12-19-122502-633 (last visited January 18, 2024)
63
19 U.S.C. § 1307
64
Id.
65
E.O. 13126, 64 C.F.R 32383 (1999). STORAGE NAME: h1331a.CRG PAGE: 7
DATE: 1/24/2024
importation of goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in
part by forced or indentured child labor.” In 2000, Congress passed
The Trafficking Victims Protection Act (TVPA)
66
and included forced labor in its definition of human
trafficking
67
. The TVPA was subsequently reauthorized.
68
In 2005 the Act directed the Department of
Labor, Bureau of International Labor Affairs (ILAB), to maintain a list of goods and their source
countries which ILAB had reason to believe are produced by child labor or forced labor.
69
As of
September 28, 2022, there are 159 goods from 78 countries and areas on the list.
70
Florida Law includes the term “forced labor” within the context of human trafficking, finding that that
victims of human trafficking are subjected to force, fraud, or coercion for the purpose of sexual
exploitation or forced labor.
71
Human trafficking occurs in many forms of labor exploitation including
domestic servitude, restaurant work, janitorial work, sweatshop factory work, and migrant agricultural
work.
72
A person who knowingly, or in reckless disregard of the facts, engages in or attempts to engage in
human trafficking, or benefits financially by receiving anything of value from participating in a venture
that has subjected a person to human trafficking for labor
73
or services
74
by coercing
75
an adult,
commits a first-degree felony.
76,
Effect of the Bill
The bill directs DMS to create and maintain the “forced labor vendor list” of companies who have
provided to an agency a commodity produced, in whole or in part, by forced labor, including the name
and address of each disqualified company. The bill defines the term "forced labor" as work or service
exacted from any person, including a minor, under the menace of a penalty for nonperformance and for
which the worker does not offer himself or herself voluntarily or an activity that violates s. 787.06, F.S.,
the statute prohibiting human trafficking.
All invitations to bid, requests for proposals, invitations to negotiate, and written contracts for the
provision of commodities must inform the contracting companies of the requirements of this new
section of law. Contracts for the provision of commodities entered into or renewed after July 1, 2024,
must include an express provision allowing for the termination of the contract if the contracting
company is placed on the forced labor vendor list. At the time a company submits a bid, proposal, or
reply for the provision of commodities, a member of the company's senior management must certify, in
writing, that to the best of his or her knowledge the commodities the company is providing to the
66
Pub. L. No. 106- 386.
67
22 U.S.C. §7102
68
The Trafficking Victims Protection Act was reauthorized as the Trafficking Victims Protection Reauthorization Act in 2003, 2005,
2008, 2013, 2017, and 2018. 22 U.S.C. Ch. 78.
69
22 U.S.C. §7112(b)(2)(C)
70
Bureau of International Labor Affairs, List of Goods Produced by Child Labor or Forced Labor, available at
https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods-print (last visited January 18, 2024)
71
S. 787.06(1)(a), F.S.
72
S. 787.06(1)(b), F.S.
73
“Labor” means work of economic or financial value. S. 787.06(2)(e), F.S.
74
“Services” means any act committed at the behest of, under the supervision of, or for the benefit of another. The term includes, but
is not limited to, forced marriage, servitude, or the removal of organs. S. 787.06(2)(h), F.S.
75
“Coercion” means using or threatening to use force against a person, restraining, isolating, or confining a person without lawful
authority and against his or her will, or threatening to do so, using lending or other credit methods to establish a debt by a person when
labor or services are pledged as a security for the debt, if the reasonably assessed value of the labor or services is not applied toward
the liquidation of the debt, destroying, concealing, removing, confiscating, withholding, or possessing any actual or purported
passport, visa, other immigration document, or government identification document, Causing or threatening to cause financial harm,
Enticing or luring a person by fraud or deceit, or providing a schedule I or II controlled substance to a person for the purpose of
exploiting that person. S. 787.06(2)(a), F.S.
76
S. 787.06(3)(a)2., (b), (c)2., (d), (e)2., and (f)2., F.S. A first-degree felony is punishable by up to 30 years’ imprisonment and a
$10,000 fine. Ss. 775.082 and 775.083, F.S.; or see s. 775.084, F.S. (applies to violent career criminals, habitual felony offenders,
habitual violent felony offenders, and three-time violent felony offenders). STORAGE NAME: h1331a.CRG PAGE: 8
DATE: 1/24/2024
agency have not been produced, in whole or in part, by forced labor. The bill defines "senior
management" to include chief executive officers, assistant chief executive officers, including, but not
limited to, assistant presidents, vice presidents, or assistant treasurers, chief financial officers, chief
personnel officers, or any employee of an entity performing similar functions.
A company gaining actual knowledge that a commodity it provided to a contracting agency was
produced in whole or in part by forced labor must notify DMS within 30 days. Agencies receiving
information that a company providing a commodity in whole or in part by forced labor must notify DMS
in writing within 10 days.
Upon receiving from any source reasonable and credible information that a company submitted a false
certification or provided an agency with a commodity produced, wholly or in part, by forced labor, DMS
must investigate and determine whether good cause exists to place the company on the forced labor
vendor list and whether such placement is in the public interest. The bill provides the following specific
guidance on when placing a company on the forced labor vendor list is not in the public interest:
The company did not provide a commodity produced, wholly or in part, by forced labor;
Providing an agency with a commodity produced, wholly or in part, by forced labor was
committed by a company employee without the actual or constructive knowledge of the
company’s senior management;
The member of the company’s senior management responsible for the contract under which
the company provided the commodity produced, wholly or in part, by forced labor did not have
actual or constructive knowledge, and could not have reasonably had such knowledge, that the
commodity was so produced;
The member of the company’s senior management responsible for the contract under which
the commodity was produced, wholly or in part, by forced labor is no longer employed by the
company; or
For a contract with an agency under the Governor, the Governor makes a public finding that the
agency cannot obtain the commodities absent provision of such commodities by the
company.(If the contract is with an agency under a state constitutional officer,
77
that officer
makes a similar finding for that agency.)
Absent one of the foregoing specific conditions, DMS must consider the following factors in determining
whether placing the company on the forced labor vendor list is in the public interest:
The nature and details of the provision of the commodity produced, wholly or in part, by forced
labor;
The company’s degree of culpability;
Prior or future self-policing efforts by the company to prevent providing commodities produced,
wholly or in part, by forced labor;
The company’s compliance with the reporting requirements upon discovering a provided
commodity was produced, wholly or in part, by forced labor;
The needs of agencies for additional competition in procuring commodities; and
Mitigation efforts by the company, including adopting a plan to cease producing or providing
commodities produced, wholly or in part, by forced labor.
If DMS determines good cause exists to place the company on the forced labor vendor list and that
placement is in the public interest, the bill requires that DMS notify the company in writing of the intent
to place the company on the list, of the company’s right to a hearing, the hearing procedure, and
applicable time requirements. Within 21 days the company may challenge placement on the list and
77
The Lt. Governor, Attorney General, Chief Financial Officer, or the Commissioner of Agriculture. Art. IV, ss. 2, 4(a), Fla. Const. STORAGE NAME: h1331a.CRG PAGE: 9
DATE: 1/24/2024
request an administrative hearing based on disputed issues of material fact.
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With the following
exceptions, ch. 120, F.S., applies to any such hearings:
The petition is filed with DMS, which is a party for all purposes.
DMS must notify the Division of Administrative Hearings (DOAH) within five days after the
petition is filed. The director of DOAH must assign an administrative law judge (ALJ) to the
proceedings within five days after receiving notice from DMS.
The ALJ must conduct the hearing on the petition within 30 days after being assigned unless the
parties stipulate otherwise.
The ALJ must enter the final order within 30 days after the hearing or receipt of the hearing
transcript, whichever is later, determining whether the company is placed on the forced labor
vendor list. The final order by the ALJ is subject to appeal to the appropriate district court of
appeal.
In any hearing determining whether a company should be placed on the forced labor vendor list, DMS
must prove by clear and convincing evidence that the placement is in the public interest. If DMS meets
this burden of proof and establishes its case, the company may rebut this presumption by proving by a
preponderance of evidence that its placement on the list is not in the public interest. If the company
does not request a hearing, DMS shall enter the final order placing the company on the forced labor
vendor list.
The bill prohibits a vendor on the forced labor vendor list from submitting a bid, proposal, or reply to an
agency, or entering into or renewing a contract to provide goods or services to an agency. Agencies
may not accept a bid, proposal, or reply from, or enter into or renew any contract with, a company that
is on the forced labor vendor list for 365 days after the date of the order placing the company on the list,
unless the company is removed from the list.
Companies are automatically removed from the forced labor vendor list after 365 days, unless a petition
for removal is granted earlier than the end of that period.
Companies submitting a false certification or that should have known a commodity provided under a
contract with an agency was produced, in whole or in part, by forced labor, and is subsequently placed
on the forced labor vendor list, shall be assessed a fine of no more than $1,000 or an amount equal to
20 percent of the value of the commodity provided under the contract, whichever is greater. All fines
collected shall be deposited into the General Revenue Fund.
DMS must review the documentation submitted by an agency and decide whether good cause exists to
remove the vendor from the vendor list and to place it on the forced labor vendor list if it is in the public
interest. DMS must notify the vendor in writing of its intent to remove the vendor from the vendor list
and of the vendor’s right to an administrative hearing, as well as the applicable procedures and time
requirements for any such hearing. The ALJ may remove a vendor from the suspended vendor list if the
ALJ determines it would be in the public interest.
A company placed on the forced labor vendor list may petition for removal from the list no sooner than
six months after the date of the final order placing the company on the list. The bill applies the same
hearing procedures to a petition for removal from the list as apply to a petition challenging initial
placement on the list. If a petition for removal is denied, the company may not petition for another
hearing for removal, but will automatically be removed after 365 days. DMS may petition for the
company to be removed before that time if DMS determines that removal would be in the public
interest.
Placement on the forced labor vendor list does not affect rights under any contract, franchise, or other
binding agreement predating such placement. DMS must update and publish on its website the forced
labor vendor list quarterly.
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Under the bill, companies may not respond and request a hearing under s. 120.57(2), F.S., that does not involve disputed issues of
fact. STORAGE NAME: h1331a.CRG PAGE: 10
DATE: 1/24/2024
B. SECTION DIRECTORY:
Section 1: Creates s. 287.1346, F.S., relating to the provision of commodities produced by forced
labor; denial or revocation of the right to transact business with agencies.
Section 2: Provides an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
See Fiscal Comments
2. Expenditures:
See Fiscal Comments
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
The bill may have an indeterminate but insignificant positive fiscal impact by fees collected under the
act.
DMS will incur increased workload for the oversight and management for maintaining and administering
the forced labor vendor list.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill neither provides authority for nor requires additional rulemaking by executive branch agencies
C. DRAFTING ISSUES OR OTHER COMMENTS:
None. IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 24, 2024, the Constitutional Rights, Rule of Law & Government Operations Subcommittee
adopted one amendment and reported the bill favorably as a committee substitute. The amendment STORAGE NAME: h1331a.CRG PAGE: 11
DATE: 1/24/2024
differed from the bill by clarifying that a company placed on the forced labor vendor list is automatically
removed after 365 days, unless a petition for removal is granted earlier than the end of that period, but if a
petition for removal is denied, the company may not file another petition before the end of the 365-day
period. The bill also clarifies that a company that provides a false certification of compliance and is later
placed on the forced labor vendor list must be fined no more than $1,000 or twenty percent of the value of
the commodity provided under the contract, whichever is greater.
This analysis is drafted to the bill as amended by the Constitutional Rights, Rule of Law & Government
Operations Subcommittee.