THE BILL ITSELF
HB 1303
Department of Financial Services
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A bill to be entitled
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An act relating to the Department of Financial
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Services; creating s. 17.324, F.S.; providing
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definitions; establishing the Florida Agency for
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Fiscal Oversight within the Department of Financial
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Services; providing the purpose and duties of the
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agency; requiring local governments to notify the
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agency after authorizing specified referendums;
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requiring the agency to conduct an audit; authorizing
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the agency to request certain information; providing
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penalties for noncompliance with such request;
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requiring certain funds to be deposited in a specified
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trust fund; authorizing the agency to waive fines in
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certain circumstances; providing that certain actions
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may be challenged in a specified manner; authorizing
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the agency to report certain evidence to specified
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parties; authorizing the Florida Commission on Ethics
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to make certain recommendations; authorizing the
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Department of Financial Services to create a certain
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analysis using specified information; requiring that
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such analysis be posted in a specified manner to
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certain parties; authorizing the Department of
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Financial Services to adopt rules; amending s. 17.325,
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F.S.; removing a requirement that a specified hotline
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be operated for a certain amount of time each day;
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removing a requirement that the hotline be advertised
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in a specified manner; creating s. 112.31424, F.S.;
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providing definitions; requiring specified employees
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to take a certain training annually; requiring the
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first training to be completed by a specified
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deadline; requiring certain employees who report
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information to the Florida Agency for Fiscal Oversight
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be afforded the same protection as whistle-blowers;
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providing construction; prohibiting local governments
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from executing certain documents with specified
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provisions; providing that such contracts are void;
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requiring local governments to submit a certain report
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to the Department of Financial Services by a specified
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date; requiring the department to adopt rules;
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requiring the department to submit information from
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the reports to certain entities by a specified date;
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amending s. 215.985, F.S.; requiring counties to use
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certain contract tracking systems; providing
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information required to be tracked; authorizing the
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use of an alternate contract tracking system in
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certain circumstances; providing that certain
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provisions may not be enforced until a specified
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event; requiring the Chief Financial Officer to make
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specified changes to the secure contract tracking
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system by a specified date; providing an effective
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date.
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Be It Enacted by the Legislature of the State of Florida: Section 1. Section 17.324, Florida Statutes, is created to
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read:
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17.324 Florida Agency for Fiscal Oversight.—
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(1) As used in this section, the term:
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(a) "Agency" has the same meaning as in s. 283.30.
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(b) "Local government" has the same meaning as in s.
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106.113(1).
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(c) "Noncompliant" means, as determined by the Chief
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Financial Officer, failing to respond to a request for
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information, failing to include any requested information, or
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providing incomplete or materially inaccurate information.
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(d) "State funds" means funds provided to a local
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government by the state, state shared revenue, state grants,
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sales tax collected pursuant to chapter 212, and enterprise
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funds as defined in s. 350.81(1); however, it does not include
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local funds derived from local taxes or fees or funds related to
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public safety.
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(2) The Florida Agency for Fiscal Oversight is established
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within the department. The purpose of Florida Agency for Fiscal
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Oversight is to identify and report unnecessary spending within
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any agency or local governments and to provide fiscal management
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and public spending education and training to such governments.
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The Florida Agency for Fiscal Oversight shall:
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(a) Develop the mandatory financial ethics training
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required under s. 112.31424(2). The training must include
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instruction on:
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1. Recognizing misuse of public funds.
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2. Reporting financial misconduct.
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3. Whistle-blower rights and protections.
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(b) Provide guidance and materials to agencies and local
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governments for internal training sessions.
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(c) Complete the audit of a local government required
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under subsection (3).
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(d) Determine the information required in the Local
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Government Efficiency Report required by s. 112.31424(5).
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(3)(a) A local government must notify the Florida Agency
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for Fiscal Oversight within 5 days after authorizing a
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referendum to levy a tax, increase a current tax, or increase
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the millage rate. The Florida Agency for Fiscal Oversight shall
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conduct an audit of any such local government. The Florida
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Agency for Fiscal Oversight may request any information it deems
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necessary to conduct such audit. If a local government is
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noncompliant, and at the discretion of the Chief Financial
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Officer:
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1. At least 15 days after the initial request:
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a. The Florida Agency for Fiscal Oversight may impose
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administrative fines on local governments of no more than $1,000
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each day; however, such fines may not be retroactive to the date
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the request was first made.
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b. The Florida Agency for Fiscal Oversight must provide
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the local government with written notice that if such local
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government remains noncompliant, the Florida Agency for Fiscal
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Oversight may initiate the process of withholding certain funds
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payable to a local government beginning 45 days after the
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initial request.
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2. At least 45 days after the initial request, the Florida
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Agency for Fiscal Oversight may withhold state funds until the
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local government is no longer noncompliant or the final order
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requires the release of such funds.
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(b) Fines collected under sub-subparagraph (a)1.a. must be
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deposited into the Insurance Regulatory Trust Fund. The Florida
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Agency for Fiscal Oversight may, for good cause or upon
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demonstration of extenuating circumstances, waive any such fines
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upon the request of the local government.
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(c) The decision to withhold funds under subparagraph
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(a)2. constitutes an agency action under chapter 120 and is
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subject to review as provided in that chapter.
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(4) The Florida Agency for Fiscal Oversight may report any
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evidence suggesting ethical violations, misconduct, or
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malfeasance by a local government official to the Governor and
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the Florida Commission on Ethics. The Florida Commission on
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Ethics may recommend appropriate actions, including, but not
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limited to, the removal of local government officials from
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office.
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(5) The department may create a Local Government Spending
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Analysis to evaluate each local government based on the
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information obtained under this section or from the report
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required under s. 112.31424(5). If the department produces a
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Local Government Spending Analysis, it must make such analysis
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available on its website, and the local government that is the
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subject of the analysis must include a link to the analysis in a
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clear and conspicuous place on the local government website.
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(6) The department may adopt rules to implement this
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section, including procedures for training, reporting,
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investigations, and establishing financial thresholds, risk
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indicators, or other criteria that, when met, may trigger an
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audit, operational review, or investigation of a local
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government by the Florida Agency for Fiscal Oversight.
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Section 2. Subsections (1), (2), and (3) of section
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17.325, Florida Statutes, are amended to read:
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17.325 Governmental efficiency hotline; duties of Chief
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Financial Officer.—
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(1) The Chief Financial Officer shall establish and
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operate a statewide toll-free telephone hotline to receive
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information or suggestions from the residents of this state on
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how to improve the operation of state and local government,
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increase state and local governmental efficiency, and eliminate
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waste in state and local government.
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(2) The Chief Financial Officer shall operate the hotline
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24 hours a day. The Chief Financial Officer may advertise the
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availability of the hotline in newspapers of general circulation
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in this state and shall provide for the posting of notices in
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conspicuous places in state agency offices, city halls, county
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courthouses, and places in which there is exposure to
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significant numbers of the general public, including, but not
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limited to, local convenience stores, shopping malls, shopping
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centers, gasoline stations, or restaurants. The Chief Financial
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Officer shall use the slogan "Tell us where we can 'Get Lean'"
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for the hotline and in advertisements for the hotline.
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(3) Each telephone call on the hotline shall be received
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by the office of the Chief Financial Officer, and the office of
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the Chief Financial Officer shall conduct an evaluation to
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determine if it is appropriate for the telephone call to be
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processed as a government efficiency hotline "Get Lean"
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telephone call. If it is determined that the telephone call
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should be processed as a government efficiency hotline "Get
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Lean" telephone call, a record of each suggestion or item of
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information received shall be entered into a log kept by the
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Chief Financial Officer. A caller on the hotline may remain
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anonymous, and, if the caller provides his or her name, the name
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shall be confidential. If a caller discloses that he or she is a
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state employee, the Chief Financial Officer, in addition to
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maintaining a record as required by this section, may refer any
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information or suggestion from the caller to an existing state
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awards program administered by the affected agency. The affected
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agency shall conduct a preliminary evaluation of the efficacy of
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any suggestion or item of information received through the
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hotline and shall provide the Chief Financial Officer with a
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preliminary determination of the amount of revenues the state
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might save by implementing the suggestion or making use of the
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information.
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Section 3. Section 112.31424, Florida Statutes, is created
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to read:
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112.31424 Financial ethics of governments.—
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(1) As used in this section, the term:
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(a) "Agency" has the same meaning as in s. 112.3187(3).
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(b) "Employee" has the same meaning as in s. 112.3187(3).
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(c) "Local government" has the same meaning as in s.
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106.113(1).
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(2) All agency employees, elected officials, and
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volunteers must complete the training on financial ethics
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created pursuant to s. 17.324(2)(a) annually. The first training
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must be completed within 30 days after:
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(a) For a person employed by an agency, the first day of
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employment.
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(b) For an elected official within an agency, the day the
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elected official takes office.
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(c) For a volunteer of an agency, the first day the
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volunteer begins volunteering.
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(3) Notwithstanding any other law, an employee who reports
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information to the Florida Agency for Fiscal Oversight shall be
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afforded the same protection as a whistle-blower under chapter
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112. Such employee is not required to report the information
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directly to his or her supervisory officials, his or her Chief
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Executive Officer as defined in s. 447.203(9), or any other
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appropriate local official.
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(4) An agency may not execute any contract, agreement, or
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other document that:
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(a) Prohibits an agency or a vendor, as defined in s.
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287.1351(1), from participating with the Florida Agency for
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Fiscal Oversight.
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(b) Requires an agency or a vendor, as defined in s.
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287.1351(1), to execute a nondisclosure agreement as a condition
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for performing any duties or functions with the Florida Agency
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for Fiscal Oversight.
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Any such contract, agreement, or document shall be void.
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(5) Each local government shall submit an annual Local
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Government Efficiency Report to the Department of Financial
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Services by October 30 of each year. The Department of Financial
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Services shall adopt rules prescribing the format of such
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reports and the information that must be included. The
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department shall submit recommendations and findings from the
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report to the Legislature and Office of Policy and Budget by
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January 1 of each year. Section 4. Subsection (14) of section 215.985, Florida
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Statutes, is amended to read:
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215.985 Transparency in government spending.—
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(14) The Chief Financial Officer shall establish and
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maintain a secure contract tracking system available for viewing
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and downloading by the public through a secure website. The
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Chief Financial Officer shall use appropriate Internet security
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measures to ensure that no person has the ability to alter or
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modify records available on the website.
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(a) Within 30 calendar days after executing a contract,
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each state entity shall post the following information relating
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to the contract on the contract tracking system:
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1. The names of the contracting entities.
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2. The procurement method.
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3. The contract beginning and ending dates.
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4. The nature or type of the commodities or services
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purchased.
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5. Applicable contract unit prices and deliverables.
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6. Total compensation to be paid or received under the
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contract.
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7. All payments made to the contractor to date.
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8. Applicable contract performance measures.
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9. If a competitive solicitation was not used to procure
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the goods or services, the justification of such action,
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including citation to a statutory exemption or exception from
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competitive solicitation, if any.
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10. Electronic copies of the contract and procurement
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documents that have been redacted to exclude confidential or
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exempt information.
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(b) Within 30 calendar days after executing a contract,
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each county shall post the following information relating to the
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contract on the contract tracking system or an alternate
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contract tracking system authorized by the department:
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1. The names of the contracting entities.
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2. The procurement method.
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3. The contract beginning and ending dates.
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4. The nature or type of the commodities or services
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purchased.
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5. Applicable contract unit prices and deliverables.
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6. Total compensation to be paid or received under the
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contract.
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7. Applicable contract performance measures.
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8. If a competitive solicitation was not used to procure
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the goods or services, the justification of such action,
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including citation to a statutory exemption or an exception from
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competitive solicitation, if any.
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9. Electronic copies of the contract and procurement
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documents that have been redacted as required by paragraph (e).
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(c)(b) Within 30 calendar days after an amendment to an
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existing contract, the state entity or county that is a party to
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the contract must update the information described in paragraph
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(a) or paragraph (b), respectively, in the contract tracking
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system. An amendment to a contract includes, but is not limited
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to, a renewal, termination, or extension of the contract or a
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modification of the terms of the contract.
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(d)(c) For each contract for which a state entity makes a
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payment pursuant to a contract executed, amended, or extended on
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or after July 1, 2023, the state entity shall post any documents
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submitted pursuant to s. 216.1366 which indicate the use of
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state funds as remuneration under the contract or a specified
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payment associated with the contract on the contract tracking
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system.
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(e)(d)1. Records made available on the contract tracking
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system may not reveal information made confidential or exempt by
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law.
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2. Each state entity or county that is a party to a
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contract must redact confidential or exempt information from the
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contract and procurement documents before posting an electronic
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copy on the contract tracking system. If a state entity or
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county that is a party to the contract becomes aware that an
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electronic copy of a contract or a procurement document has been
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posted but has not been properly redacted, the state entity or
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county must immediately notify the Chief Financial Officer and
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must immediately remove the contract or procurement document
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from the contract tracking system. Within 7 business days, the
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state entity must post a properly redacted copy of the contract
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or procurement document on the contract tracking system.
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3.a. If a party to a contract, or an authorized
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representative of a party to a contract, discovers that an
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electronic copy of a contract or procurement document has been
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posted to the contract tracking system but has not been properly
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redacted, the party or representative may request the state
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entity or county that is a party to the contract to redact the
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confidential or exempt information. Upon receipt of the request,
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the state entity or county shall redact the confidential or
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exempt information.
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b. A request to redact confidential or exempt information
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must be made in writing and delivered by mail, facsimile,
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electronic transmission, or in person to the state entity or
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county that is a party to the contract. The request must
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identify the specific document, the page numbers that include
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the confidential or exempt information, the information that is
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confidential or exempt, and the applicable statutory exemption.
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A fee may not be charged for a redaction made pursuant to the
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request.
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c. A party to a contract may petition the circuit court
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for an order directing compliance with this paragraph.
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4. The contract tracking system shall display a notice of
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the right of an affected party to request redaction of
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confidential or exempt information contained on the system.
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5.a. The Chief Financial Officer, the Department of
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Financial Services, or an officer, employee, or contractor
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thereof, is not responsible for redacting confidential or exempt
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information from an electronic copy of a contract or procurement
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document posted by another state entity or county on the system.
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b. The Chief Financial Officer, the Department of
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Financial Services, or an officer, employee, or contractor
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thereof, is not liable for the failure of a state entity or
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county to redact the confidential or exempt information.
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(e)1. The posting of information on the contract tracking
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system or the provision of contract information on a website for
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public viewing and downloading does not supersede the duty of a
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state entity or county to respond to a public records request or
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subpoena for the information.
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2. A request for a copy of a contract or procurement
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document or certified copy of a contract or procurement document
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shall be made to the state entity or county that is party to the
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contract. The request may not be made to the Chief Financial
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Officer, the Department of Financial Services, or an officer,
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employee, or contractor thereof, unless the Chief Financial
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Officer or the department is a party to the contract.
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3. A subpoena for a copy of a contract or procurement
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document or certified copy of a contract or procurement document
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must be served on the state entity or county that is a party to
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the contract and that maintains the original documents. The
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Chief Financial Officer, the Department of Financial Services,
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or an officer, employee, or contractor thereof, may not be
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served a subpoena for those records unless the Chief Financial
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Officer or the department is a party to the contract.
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(g)(f) The Chief Financial Officer may regulate and
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prohibit the posting of records that could facilitate identity
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theft or fraud, such as signatures; compromise or reveal an
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agency investigation; reveal the identity of undercover
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personnel; reveal proprietary business information or trade
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secrets; reveal an individual's medical information; or reveal
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another record or information that the Chief Financial Officer
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believes may jeopardize the health, safety, or welfare of the
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public. However, such action by the Chief Financial Officer does
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not supersede the duty of a state entity or county to provide a
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copy of a public record upon request.
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(h)(g) The Chief Financial Officer may adopt rules to
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administer this subsection.
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(i)(h) For purposes of this subsection, the term:
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1. "Procurement document" means any document or material
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provided to the public or any vendor as part of a formal
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competitive solicitation of goods or services undertaken by a
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state entity or county, and a document or material submitted in
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response to a formal competitive solicitation by any vendor who
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is awarded the resulting contract.
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2. "State entity" means an official, officer, commission,
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board, authority, council, committee, or department of the
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executive branch of state government; a state attorney, public
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defender, criminal conflict and civil regional counsel, capital
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collateral regional counsel, and the Justice Administrative
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Commission; the Public Service Commission; and any part of the
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judicial branch of state government.
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(i) In lieu of posting in the contract tracking system
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administered by the Chief Financial Officer, the Department of
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Legal Affairs and the Department of Agriculture and Consumer
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Services may post the information described in paragraphs (a)
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through (d) (c) to its own agency-managed website. The data
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posted on the agency-managed website must be downloadable in a
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format that allows offline analysis.
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(j) The requirement under paragraphs (a) through (d) (c)
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that each agency or county post information and documentation
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relating to contracts on the tracking system does not apply to
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any record that could reveal attorney work product or strategy.
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Section 5. The amendments made by this act to s.
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215.985(14), Florida Statutes, may not be enforced until the
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secure contract tracking system is able to accept reports. The
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Chief Financial Officer shall make any changes necessary to the
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secure contract tracking system to allow counties to make the
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reports required by the amendments to s. 215.985(14)(b), Florida
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Statutes, before July 1, 2027.
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Section 6. This act shall take effect July 1, 2026.