The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Rules
BILL: CS/SB 742
INTRODUCER: Community Affairs Committee and Senator Grall
SUBJECT: Public Works Projects
DATE: February 20, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hunter Ryon CA Fav/CS
2. Harmsen McVaney GO Favorable
3. Hunter Twogood RC Favorable
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 742 revises the circumstances under which certain governmental actions are prohibited
for the procurement of a “public works project.”
A “public works project” consists of the construction, maintenance, repair, renovation,
remodeling, or improvement of certain infrastructure projects owned in whole or in part by any
political subdivision.
Current law prohibits the state or any political subdivision from imposing certain requirements
on contractors for public works projects paid for with any state-appropriated funds. The bill
expands this provision to also include public works projects paid for with any local funds.
The bill does, however, maintain the ability for municipalities and counties to preclude certain
contractors from bidding on a public works project based on the geographic location of the
contractor’s headquarters or offices, if the project is paid solely with local funds.
The bill also specifies that the term “public works project” does not include the provision of
goods, services, or work incidental to the public works project in certain instances.
The bill is not expected to have a fiscal impact on state or local governments.
The bill takes effect July 1, 2024.
REVISED: BILL: CS/SB 742 Page 2
II. Present Situation:
Competitive Solicitation of Construction Services
Current law specifies construction services procurement procedures for public property and
public owned buildings.
1
The Department of Management Services (DMS) is responsible for
establishing by rule procedures to:
2
Determine the qualifications and responsibility of potential bidders prior to advertising for
and receiving bids for building construction contracts.
3
Award each state agency construction project to the lowest qualified bidder.
4
Govern negotiations for construction contracts and contract modifications when such
negotiations are determined to be in the best interest of the state.
5
Enter into performance-based contracts for the development of public facilities when those
contracts are determined to be in the best interest of the state.
6
State contracts for construction projects that are projected to cost in excess of $200,000 must be
competitively bid.
7
A county, municipality, special district, or other political subdivision seeking
to construct or improve a public building must competitively bid the project if the estimated cost
is in excess of $300,000.
8
Prohibited Local Government Preferences in Contracts for Construction Services
A competitive solicitation
9
for construction services that is paid for with state-appropriated funds
prevents a state college, county, municipality, school district, or other political subdivision of the
state (local government) from using a local ordinance or regulation that provides a preference
based upon a contractor, subcontractor, or material supplier or carrier:
10
Maintaining an office or place of business within a particular local jurisdiction;
Hiring employees or subcontractors from within a particular local jurisdiction; or
Prior payment of local taxes, assessments, or duties within a particular local jurisdiction.
A local government that will use state-appropriated funds to pay for construction services must
disclose in the solicitation document that any of the aforementioned preferences will be
prohibited.
11
1
See ch. 255, F.S.
2
Section 255.29, F.S.
3
Rules 60D-5.004 and F.A.C.
4
Rule 60D-5.007, F.A.C.
5
Rule 60D-5.008, F.A.C.
6
Rule 60D-5.0082, F.A.C.
7
See s. 255.0525, F.S.; see also Rules 60D-5.002 and 60D-5.0073, F.A.C.
8
Section 255.20(1), F.S. For electrical work, local governments must competitively bid projects estimated to cost over
$75,000.
9
“Competitive solicitation” means an invitation to bid, a request for proposals, or an invitation to negotiate. Section 255.248,
F.S.
10
Section 255.0991(2), F.S.
11
Section 255.0991(3), F.S. BILL: CS/SB 742 Page 3
Public Works Projects
A public works project is an activity that is paid for with any state-appropriated funds and that
consists of the construction, maintenance, repair, renovation, remodeling, or improvement of a
building, road, street, sewer, storm drain, water system, site development, irrigation system,
reclamation project, gas or electrical distribution system, gas or electrical substation, or other
facility, project, or portion thereof owned in whole or in part by any political subdivision.
12
Prohibited Local Government Preferences in Public Works Projects
Except as required by federal or state law, the state or any political subdivision
13
that contracts
for a public works project paid for with any state-appropriated funds may not:
14
Prevent a certified, licensed, or registered contractor, subcontractor, or material supplier or
carrier, from participating in the bidding process based on the geographic location of the
company headquarters or offices of the contractor, subcontractor, or material supplier or
carrier submitting a bid on a public works project or the residences of employees of such
contractor, subcontractor, or material supplier or carrier;
Require a contractor, subcontractor, or material supplier or carrier engaged in the project to:
o Pay employees a predetermined amount of wages or prescribe any wage rate;
o Provide employees a specified type, amount, or rate of employee benefits;
o Control, limit, or expand staffing; or
o Recruit, train, or hire employees from a designated, restricted, or single source.
Prohibit any contractor, subcontractor, or material supplier or carrier from submitting a bid
on the project if such individual is able to perform the work described and is qualified,
licensed, or certified as required by state law.
The foregoing governmental actions are prohibited only for public works projects paid for with
any amount of state-appropriated funds. These restrictions do not apply to locally-funded public
works projects.
Prior to July 1, 2023, the state or a political subdivision could impose the otherwise prohibited
requirements on contractors for state-funded public works projects, up to $1 million. However, in
2023, the Legislature removed the $1 million cap and prohibited such actions for public works
projects using any amount of state appropriated funds.
15
III. Effect of Proposed Changes:
The bill amends s. 255.0992, F.S., to revise the definition of “public works project” to include all
projects paid for with local or state funds, rather than just projects that include state funding.
12
Section 255.0992(1)(b), F.S.
13
“Political subdivision” means a separate agency or unit of local government created or established by law or ordinance and
the officers thereof. The term includes, but is not limited to, a county; a city, town, or other municipality; or a department,
commission, authority, school district, taxing district, water management district, board, public corporation, institution of
higher education, or other public agency or body thereof authorized to expend public funds for construction, maintenance,
repair, or improvement of public works. See s. 255.0992(1)(a), F.S.
14
Section 255.0992, F.S.
15
Ch. 2023-134, Laws of Fla. BILL: CS/SB 742 Page 4
This prevents the state or political subdivision from imposing the prohibited governmental
actions for public works projects paid for with any amount of local funds.
The bill does, however, maintain the ability for municipalities and counties to preclude certain
contractors from bidding on a public works project based on the geographic location of the
contractor’s headquarters or offices, if a public works project will be paid for solely with local
funds.
The bill clarifies that the term “public works project” does not include the provision of goods,
services, or work incidental to the public works project, such as the provision of security
services, janitorial services, landscaping services, maintenance services, transportation services,
or other services that do not require a construction contracting license or do not involve
supplying or carrying construction materials for a public works project.
The bill takes effect July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Not applicable. The bill does not require counties or municipalities to take an action
requiring the expenditure of funds, reduce the authority that counties or municipalities
have to raise revenue in the aggregate, nor reduce the percentage of state tax shared with
counties or municipalities.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None. BILL: CS/SB 742 Page 5
B. Private Sector Impact:
The prohibition on certain predetermined wage, benefits, and staffing requirements may
result in a positive fiscal impact for contractors.
C. Government Sector Impact:
The change to the definition of “public works project” may lower costs for local public
construction projects by prohibiting certain actions by a local government such as
imposing predetermined wage and benefit requirements on potential contractors.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 255.0992 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Community Affairs on January 22, 2023:
The committee substitute:
Specifies that the term “public works project” does not include the provision of
goods, services, or work incidental to the public works project in certain instances.
Applies the exception allowing local governments to prevent a vendor from bidding
based on a contractor's geographic location to municipalities and counties only, rather
than all political subdivisions.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.