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Meeting Packet - Workforce Development & Tourism Subcommittee (February 4, 2020)

Summary

A meeting packet of the Florida House of Representatives Commerce Committee Workforce Development & Tourism Subcommittee for Tuesday, February 4, 2020, 9:00 am - 11:00 am, with Rene Plasencia as Chair. The agenda lists HB 1139 Regional Rural Development Grants, HB 1253 Employer Contributions, HB 1297 Drug-free Workplaces and PCS for HB 1271 State Economic Development Entities. The staff analysis of HB 1139 states that the bill reduces the percentage of grant funds that must be matched with non-state funds from 100 percent to 25 percent of the state's contribution. It also states that the bill increases the maximum amount the Department of Economic Opportunity may expend for the program from $750,000 to $1 million annually.

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“Meeting Packet - Workforce Development & Tourism Subcommittee (February 4, 2020).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-02-04-3015-workforce-development-tourism-subcommittee-meeting-pac-656f704bf4/, SHA-256 38fda52e334d45e46d317fe467169d15f1731fabb8760cdeaca9ca71f6e7c49f.

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      Workforce Development & Tourism
               Subcommittee
              Tuesday, February 4, 2020
                 9:00 AM-11:00 AM
                       12 HOB



               Meeting Packet




Jose Oliva                                Rene Plasencia
Speaker                                            Chair
                     The Florida House of Representatives
                                            Commerce Committee

                         Workforce Development & Tourism Subcommittee
Jose R. Oliva                                                                                        Rene Plasencia
Speaker                                                                                                      Chair

                                      Meeting Agenda
                                  Tuesday, February 4, 2020
                                     9:00 am - 11 :00 am
                                           12 HOB

   I.   Call to Order

  II.   Roll Call

 Ill.   Welcome and Opening Remarks

IV.     Consideration of the following bill(s):

        HB 1139 Regional Rural Development Grants by Clemons, Polsky

        HB 1253 Employer Contributions by McClure

        HB 1297 Drug-free Workplaces by Robinson

        Consideration of the following proposed committee substitute(s):

        PCS for HB 1271 -- State Economic Development Entities

 V.     Closing Remarks

VI.     Adjournment




                    317 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                    (850) 717-4870
:::c
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                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1139 Regional Rural Development Grants
SPONSOR(S): Clemons and others
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 426

  REFERENCE                                                         ACTION                 ANALYST                STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  1) Workforce Development & Tourism Subcommittee                                          Willson   /ltV Barry
  2) Transportation & Tourism Appropriations
     Subcommittee

  3) Commerce Committee


                                                        SUMMARY ANALYSIS
Florida has enacted a number of economic development programs for rural areas. Two such programs are the
Regional Rural Development Grants Program and the Rural Infrastructure Fund. The Regional Rural
Development Grants Program is a state matching grant program established to provide funding to build the
professional capacity of regional economic development organizations. The Rural Infrastructure Fund assists
units of local government with the planning, preparing, and financing of infrastructure projects that encourage
job creation and capital investment. Both programs are administered by the Department of Economic
Opportunity (DEO).

The bill amends the Regional Rural Development Grants Program to clarify how regional economic
development organizations may build their professional capacity and expand grant use for technical
assistance. It also defines a "regional economic development organization" to mean an economic development
organization located in or contracted to serve a rural area of opportunity (RAO).

The bill increases the total annual grant award available to the three regional economic development
organizations recognized by the DEO as serving an entire RAO, decreases the annual grant award available to
other organizations located in or contracted to serve an RAO, and eliminates grant eligibility for organizations
representing rural counties or communities that are not located in a RAO. The bill reduces the percentage of
grant funds that must be matched with non-state funds from 100 percent to 25 percent of the state's
contribution. The bill increases the maximum amount of funds that DEO may expend for the program, from
$750,000 to $1 million annually.

The bill amends the Rural Infrastructure Fund by increasing the percentage of total infrastructure costs that
may be funded by a grant award, expanding eligible projects and uses to include broadband internet service,
and requiring a review of the grant program and procedures by September 1, 2021.

In addition, the bill requires contracts or agreements for both the Regional Rural Development Grants Program
and the Rural Infrastructure Fund to contain certain specific provisions and be posted online at least 14 days
before execution.

The bill has no fiscal impact on state funds. The expenditure authority for the Regional Rural Development
Grant program is increased from $750,000 to $1 million per fiscal year. However, the appropriation for the
Rural Community Development Revolving Loan Fund, which funds the grant program, is unchanged.

The effective date of the bill is July 1, 2020.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Regional Economic Development Organizations

        Three regional economic development organizations operate in Florida. Each coincides respectively
        with one of the state's three Rural Areas of Opportunity (RAO). A RAO is a rural community, or a region
        comprised of rural communities, which has been adversely affected by an extraordinary economic
        event, severe or chronic distress, or a natural disaster, or that presents a unique economic
        development opportunity of regional impact. 1 The Governor may designate up to three RAOs,
        establishing each region as a priority assignment for Rural Economic Development Initiative agencies.
        The Governor can waive the criteria, requirements, or similar provisions of any economic development
        incentive for projects in a RA0. 2

        The three designated RAOs are: 3
           • Northwest RAO: Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson, Liberty, Wakulla, and
               Washington counties, and the City of Freeport in Walton County.
           • South Central RAO: DeSoto, Glades, Hardee, Hendry, Highlands, and Okeechobee counties,
               and the cities of Pahokee, Belle Glade, and South Bay (Palm Beach County), and lmmokalee
               (Collier County).
           • North Central RAO: Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton, Jefferson, Lafayette,
               Levy, Madison, Putnam, Suwannee, Taylor, and Union counties.

        Coinciding with the RAOs are three regional economic development organizations which are
        public/private 501 (c)(6) organizations that provide economic development support to the local
        governments represented in the RAOs. Opportunity Florida serves the Northwest RAO; Florida's
        Heartland Regional Economic Development Initiative, Inc. serves the South Central RAO; and North
        Florida Economic Development Partnership serves the North Central RAO.

        Regional Rural Development Grants Program

        The Regional Rural Development Grants Program is a state matching grant program established to
        provide funding to build the professional capacity of regional economic development organizations. 4
        Additionally, grants may be used by an economic development organization to provide technical
        assistance to businesses within the rural counties and communities that it serves. 5

        Applications submitted to DEO must provide proof:
           • of official commitments of support from each local government represented by the regional
               organization;
           • that each local government has made a financial or in-kind commitment to the regional
               organization;
           • that the private sector has made financial or in-kind commitments to the regional organization;
           • that the regional organization is in existence and actively involved in economic development
               activities serving the region; and

1
  S. 288.0656(2)(d), F.S.
2
  S. 288.0656(7)(a), F.S.
3
  Department of Economic Opportunity, Rural Areas of Opportunity, http://www.floridajobs.org/community-planning-and-
development/rural-community-programs/rural-areas-of-opportunity (last visited Jan. 27, 2020).
4
  S. 288.018, F.S.
5
  S. 288.018(1), F.S.
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             •    the manner in which the regional organization coordinates its efforts with those of other local
                  and state organizations. 6

         An organization may receive up to $50,000 a year or $150,000 if located in a RA0. 7 Grants must be
         matched by an equivalent amount of non-state resources. 8 DEO is authorized to spend up to $750,000
         each fiscal year from funds appropriated to the Rural Community Development Revolving Loan Fund to
         carry out this program. 9

         Rural Infrastructure Fund

         The Rural Infrastructure Fund is a grant program created to facilitate the planning, preparing, and
         financing of infrastructure projects in rural communities. 10 The program provides access to federal and
         state infrastructure funding programs, including, but not limited to, those offered by the U.S.
         Departments of Agriculture, and Commerce. 11 The program funds total infrastructure project grants,
         infrastructure feasibility grants, and preclearance review grants.

         DEO may award grants for up to 30 percent of the total infrastructure project cost. If an application is
         for a catalyst site, 12 up to 40 percent of the total infrastructure project cost may be awarded. 13 Projects
         must be related to specific job-creation or job-retention opportunities. Additionally, projects may include
         improving any inadequate infrastructure that has resulted in regulatory action that prohibits economic or
         community growth or reducing the costs to community users of proposed infrastructure improvements
         that exceed such costs in comparable communities. 14

         Eligible uses of funds include improvements to public infrastructure for industrial or commercial sites
         and upgrades to or development of public tourism infrastructure. 15 Infrastructure can include public or
         public-private partnership facilities, like storm water systems, telecommunication, broadband, roads,
         and nature-based tourism. 16

         The infrastructure feasibility grant provides awards of up to 30 percent of the total project costs for
         infrastructure feasibility studies, design and engineering activities, or other infrastructure planning and
         preparation activities. 17 Maximum awards are dependent on the number of jobs that a business
         commits to create and may be up to $300,000 if the project is located in a RAO. The total project
         participation grant may be used in conjunction with the infrastructure feasibility grant.

         The preclearance review grant provides awards to help a local government participate in expedited
         permitting processes through technical assistance in preparing permit applications and local
         comprehensive plan amendments. 18 Grants may be used for surveys, feasibility studies, and other
         activities related to the identification and preclearance review of land use modifications. Grants are




6
   S. 288.018(2), F.S.
7
  S. 288.018(1), F.S.
8 Id.
9
   S. 288.018(4), F.S.
10
    Sees. 288.0655, F.S.
11
    S. 288.0655(2)(b), F.S.
12
    S. 288.0656(2)(b ), F.S., defines "catalyst site" as a parcel or parcels of land within a rural area of opportunity that has been
prioritized as a geographic site for economic development through partnerships with state, regional, and local organizations. The site
must be reviewed by the rural economic development initiative and approved by DEO for the purposes of locating a catalyst project.
13
    S. 288.0655(2)(b ), F.S.
14 Id
15 Id
16 Id.
17
    S. 288.0655(2)(c), F.S.
18
    S. 288.0655(2)(e), F.S. Expedited permitting is pursuant to s. 403.9739(18), F.S.
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            limited to $75,000 and must be matched 50 percent with local funds. However, projects in a RAO may
            receive up to $300,000 and must be matched 33 percent with local funds. 19

           Grant applications are reviewed and certified by DEO in consultation with: Enterprise Florida, Inc.,
           VISIT Florida, the Department of Environmental Protection, and the Florida Fish and Wildlife
           Conservation Commission. Reviews include an evaluation of the economic benefit of the projects and
           their long-term viability. 20

            Effect of Proposed Changes

            Regional Rural Development Grants Program

           The bill amends the Regional Rural Development Grants Program to clarify how regional economic
           development organizations may build their professional capacity, expand grant use for technical
           assistance, increase the annual grant awards for regional economic development organizations, and
           reduce match requirements. It also defines a "regional economic development organization" to mean
           an economic development organization that is located in, or contracted to serve, a RAO.

           One authorized use of the matching grant program is to build the professional capacity of regional
           economic development organizations. The bill specifies that efforts to build professional capacity hiring
           professional staff to develop, deliver, and provide needed economic development professional
           services, including technical assistance, education and leadership development, marketing, and project
           recruitment.

           Regional economic development organizations may currently use grant funds to provide technical
           assistance to businesses within rural counties and communities it serves. The bill expands this by
           allowing technical assistance to local governments, local economic development organizations, and
           existing and prospective businesses.

           The bill increases the maximum annual grant award from $150,000 to $250,000 for any three regional
           economic development organizations recognized by DEO as serving an entire region of a RAO. These
           organizations are: Opportunity Florida, Florida's Heartland Regional Economic Development Initiative,
           Inc., and North Florida Economic Development Partnership.

            For organizations located in or contracted to serve a RAO, but not recognized as serving the entire
            RAO, the bill reduces the maximum annual grant amount from $150,000 to $50,000.

           Under the bill, any organizations that represent rural counties and communities, but are not located in
           or serve a RAO, would not meet the definition of "regional economic development organizations" and
           therefore would no longer be eligible to receive any grant funds.

           The bill reduces the required match for a grant under this program to a 25% match of the state
           contribution, instead of the current one-to-one match requirement.

           The bill increases the amount that DEO may expend on the program each fiscal year, from $750,000 to
           $1 million. These funds are from the funds appropriated to the Rural Community Development
           Revolving Loan Fund.

            Rural Infrastructure Fund




19
     S. 288.0655(2)(e), F.S.
20
     S. 288.0655(3), F.S.
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         The bill amends the Rural Infrastructure Fund by revising grant award percentages, expanding eligible
         projects and uses to include broadband internet service, and requiring a review of the grant program
         and procedures by a specific date.

         Currently, grants awarded under the Rural Infrastructure Fund program are limited to 30 percent of the
         total infrastructure project cost, or up to 40 percent if funding is for a catalyst site. The bill increases the
         percentage for all grants awarded, including catalyst sites, to 50 percent of the total infrastructure
         project cost.

         The bill specifies that eligible projects may include improving certain inadequate infrastructure that
         reduces costs to community users of proposed infrastructure improvements that exceeds costs in
         comparable communities, and improving access to and the availability of broadband Internet service.
         Further, eligible uses are expanded to include improvements to broadband Internet service and access
         in unserved or underserved rural communities. These projects must be conducted through a
         partnership or partnerships with one or more dealers of communications services 21 , established by a
         publicly noticed and competitive selected process.

         The bill requires DEO to reevaluate the Rural Infrastructure Fund application guidelines and criteria by
         September 1, 2021. The review is to be done in consultation with Enterprise Florida, Inc., VISIT Florida,
         the Department of Environmental Protection, and the Florida Fish and Wildlife Conservation
         Commission and must include specific factors such as:
             • the project's potential for enhanced job creation or increased capital investment;
             • the demonstration and level of local public and private commitment;
             • whether the project is located in a community development corporation service area or in an
                 urban high-crime area;
             • the unemployment rate of the county the project would be located; and
             • the poverty rate of the community.

         Contracts or Agreements - Regional Rural Development Grants Program and Rural
         Infrastructure Fund

         The bill amends both the Regional Rural Development Grant Program and the Rural Infrastructure
         Fund to include the same requirements for contracts or agreements that expend grant funds.

         A contract or agreement that involves the expenditure of grant funds must include:
         • The purpose of the contract or agreement.
         • Specific performance standards and responsibilities for each entity under the agreement.
         • A detailed project or contract budget, if applicable.
         • The value of any services provided.
         • The projected travel expenses for employees and board members, if applicable.

         These required contract provisions apply to any contract or agreement that expends grant funds,
         including any contract or agreement between another entity and a regional economic development
         organization, a unit of local government, or an economic development organization substantially
         underwritten by a unit of local government.

         All contracts and agreements are required to be posted on the contracting regional economic
         development organization's website at least 14 days before execution. However, specific contracts or
         agreements that exceed $35,000 must be posted in "plain-language." This applies to a contract or
         agreement with a private entity, a municipality, or a vendor of services, supplies, or programs, including
         marketing, or for the purchase or lease or use of lands, facilities, or properties.


21
  S. 202.11 (2), F .S., defines a "dealer" as a person registered with the Florida Department of Revenue as a provider of
communications services in this state.
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       Additionally, the bill repeals obsolete language relating to enterprise zones and an appropriation for the
       2019-20 fiscal year.

   B. SECTION DIRECTORY:
       Section 1:     Amends subsections (1), (3), and (4) of s. 288.018, F.S., relating to the Regional Rural
                      Development Grants Program.

       Section 2:     Amends s. 288.0655, F.S., relating to the Rural Infrastructure Fund.

       Section 3:     Provides an effective date of July 1, 2020.


                        II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           The expenditure authority of the Regional Rural Development Grant program is increased from
           $750,000 to $1 million per fiscal year. However, the appropriation for the Rural Community
           Development Revolving Loan Fund, which funds the grant program, is unchanged.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill reduces the required match under the Regional Rural Development Grant program to a 25
       percent match of the state contribution, instead of the current one-to-one match requirement.

   D. FISCAL COMMENTS:
       None.


                                               Ill. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
         Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
         action requiring the expenditures of funds; reduce the authority that counties or municipalities have
         to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
         municipalities.

       2. Other:
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          None.

   B. RULE-MAKING AUTHORITY:
       This bill does not provide rulemaking authority or require executive branch rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                        IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




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FLORIDA                       H   O   U   S   E      0     F      REPRESENTATIVES




        HB 1139                                                               2020




 1                                         A bill to be entitled
 2                An act relating to regional rural development grants;
 3                amending s. 288.018, F.S.; defining the term "regional
 4                economic development organization"; specifying the
 5                duties of a regional economic development
 6                organization; specifying authorized uses of matching
 7                grants; increasing the maximum amount of annual grant
 8                funding that specified economic development
 9                organizations may receive; revising the required
10                amount of nonstate matching funds; requiring certain
11                information to be included in contracts or agreements
12                involving grant funds; specifying the information that
13                must be posted on a regional economic development
14                organizations website before execution of certain
15                contracts or agreements; deleting an obsolete
16                provision; increasing the amount of funds the
17                Department of Economic Opportunity may expend each
18                fiscal year from the Rural Community Development
19                Revolving Loan Fund for certain purposes; amending s.
20                288.0655, F.S.; increasing the maximum percent of
21                total infrastructure project costs for which the
22                department may award a grant; repealing a provision
23                addressing increased certain maximum percentages;
24                specifying that improving availability of broadband
25                Internet services is an eligible project for certain

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        HB 1139                                                                                 2020



26                grant funds; providing that grants for improvements to
27                broadband Internet service and access must be
28                conducted through certain partnerships; extending the
29                date by which the department is required to reevaluate
30                certain guidelines; requiring certain information to
31                be included in contracts or agreements involving grant
32                funds;     specifying the information that must be posted
33                on a regional economic development organizations
34                website before execution of certain contracts or
35                agreements; providing an effective date.
36
37      Be It Enacted by the Legislature of the State of Florida:
38
39                Section 1.       Subsections           ( 1) ,   ( 3) , and ( 4) of section
40      288.018, Florida Statutes, are amended to read:
41                288.018     Regional Rural Development Grants Program.-
42                ( 1) (a)   For the purposes of this section, the term
43      "regional economic development organization" means an economic
44      development organization located in or contracted to serve a
45      rural area of opportunity, as defined ins. 288.0656(2) (d).
46                J..el   The department shall establish a matching grant
47      program to provide funding to regional regionally based economic
48      development organizations representing rural counties and
49      coffiffiunities for the purpose of building the professional
50      capacity of those their organizations. Building the professional

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        HB 1139                                                               2020



51      capacity of a regional economic development organization
52      includes hiring professional staff to develop, deliver, and
53      provide needed economic development professional services,
54      including technical assistance, education and leadership
55      development, marketing, and project recruitment. -&telt Matching
56      grants may also be used by a regional ttft economic development
57      organization to provide technical assistance to local
58      governments, local economic development organizations, and
59      existing and prospective businesses within the rural counties
60      and coffiffiunities that it serves.
61                (c)   A regional economic development organization may apply
62      annually to the department for a matching grant. The department
63      is authorized to approve, on an annual basis, grants to such
64      regional regionally based economic development organizations.
65      The maximum amount an organization may receive in any year will
66      be $50,000, or $250,000 for any three regional economic
67      development organizations that serve an entire region of a rural
68      area of opportunity designated pursuant to s. 288.0656(7) if
69      they are recognized by the department as serving such a region.
70                (d) Grant funds received by a regional economic development
71      organization $150,000 in a rural area of opportunity recoffifflended
72      by the Rural Economic Development Initiative and designated by
73      the Governor, and must be matched each year by an equivalent
74      amount of nonstate resources in an amount equal to 25 percent of
75      the state contribution.

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         HB 1139                                                                               2020



 76                (3) (a)    A contract or agreement that involves the
 77      expenditure of grant funds provided under this section,
 78      including a contract or agreement entered into between another
 79      entity and a regional economic development organization, a unit
 80      of local government, or an economic development organization
 81      substantially underwritten by a unit of local government, must
 82      include:
 83                1.    The purpose of the contract or agreement.
 84                2.    Specific performance standards and responsibilities for
 85      each entity under the contract or agreement.
 86                3.    A detailed project or contract budget,               if applicable.
 87                4.    The value of any services provided.
 88                5.    The projected travel expenses for employees and board
 89      members, if applicable.
 90                (b)    At least 14 days before executing a contract or
 91      agreement, the contracting regional economic development
 92      organization shall post on its website:
 93                1. Any contract or agreement that involves the expenditure
 94      of grant funds provided under this section.
 95                2.    A plain-language version of any contract or agreement
 96      that is estimated to exceed $35,000 with a private entity, a
 97      municipality, or a vendor of services, supplies, or programs,
 98      including marketing, or for the purchase or lease or use of
 99      lands, facilities,             or properties which involves the expenditure
100      of grant funds provided under this section and which is

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         HB 1139                                                                            2020



101      estimated to exceed $35,000 The department may also contract for
102      the development of an enterprise zone web portal or websites for
103      each enterprise zone which will be used to market the program
104      for job creation in disadvantaged urban and rural enterprise
105      zones. Each enterprise zone web page should include downloadable
106      links to state forms and information, as well as local message
107      boards that help businesses and residents receive information
108      concerning zone boundaries, job openings, zone programs, and
109      neighborhood improvement activities.
110                (4)   The department may expend up to $1 million $750,000
111      each fiscal year from funds appropriated to the Rural Community
112      Development Revolving Loan Fund for the purposes outlined in
113      this section. The department may contract with Enterprise
114      Florida, Inc., for the administration of the purposes specified
115      in this section. Funds released to Enterprise Florida, Inc., for
116      this purpose shall be released quarterly and shall be calculated
117      based on the applications in process.
118                Section 2.        Subsection (5) of section 288.0655, Florida
119      Statutes, is renumbered as subsection (6), paragraph (b) of
120      subsection (2), subsection (4), and present subsection (6) are
121      amended, and a new subsection (5) is added to that section, to
122      read:
123                288.0655        Rural Infrastructure Fund.-
124                (2)

125                (b}   To facilitate access of rural communities and rural

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         HB 1139                                                               2020



126      areas of opportunity as defined by the Rural Economic
127      Development Initiative to infrastructure funding programs of the
128      Federal Government, such as those offered by the United States
129      Department of Agriculture and the United States Department of
130      Commerce, and state programs, including those offered by Rural
131      Economic Development Initiative agencies, and to facilitate
132      local government or private infrastructure funding efforts, the
133      department may award grants for up to 50 -3-8- percent of the total
134      infrastructure project cost. If an application for funding is
135      for a catalyst site, as defined ins. 288.0656, the department
136      may award grants for up to 40 percent of the total
137      infrastructure project cost. Eligible projects must be related
138      to specific job-creation or job-retention opportunities.
139      Eligible projects may also include improving any inadequate
140      infrastructure that has resulted in regulatory action that
141      prohibits economic or community growthL -e-r reducing the costs to
142      community users of proposed infrastructure improvements that
143      exceed such costs in comparable communities, and improving
144      access to and the availability of broadband Internet service.
145      Eligible uses of funds shall include improvements to public
146      infrastructure for industrial or commercial sites, upgrades to
147      or development of public tourism infrastructure, and
148      improvements to broadband Internet service and access in
149      unserved or underserved rural communities. Improvements to
150      broadband Internet service and access must be conducted through

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         HB 1139                                                                2020



151      a partnership or partnerships with one or more dealers of
152      communications services, as defined ins. 202.11(2), and the
153      partnership or partnerships must be established by a publicly
154      noticed and competitively selected process and upgrades to or
155      development of public tourism infrastructure. Authorized
156      infrastructure may include the following public or public-
157      private partnership facilities: storm water systems;
158      telecommunications facilities; broadband facilities; roads or
159      other remedies to transportation impediments; nature-based
160      tourism facilities; or other physical requirements necessary to
161      facilitate tourism, trade, and economic development activities
162      in the community. Authorized infrastructure may also include
163      publicly or privately owned self-powered nature-based tourism
164      facilities, publicly owned telecommunications facilities, and
165      broadband facilities, and additions to the distribution
166      facilities of the existing natural gas utility as defined ins.
167      366.04(3) (c), the existing electric utility as defined ins.
168      366.02, or the existing water or wastewater utility as defined
169      ins. 367.021(12), or any other existing water or wastewater
170      facility, which owns a gas or electric distribution system or a
171      water or wastewater system in this state where:
172                1.   A contribution-in-aid of construction is required to
173      serve public or public-private partnership facilities under the
174      tariffs of any natural gas, electric, water, or wastewater
175      utility as defined herein; and

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         HB 1139                                                                         2020



176                2.    Such utilities as defined herein are willing and able
177      to provide such service.
178                (4)   By September 1, 2021 ~ ' the department shall, in
179      consultation with the organizations listed in subsection (3),
180      and other organizations, reevaluate existing guidelines and
181      criteria governing submission of applications for funding,
182      review and evaluation of such applications, and approval of
183      funding under this section. The department shall consider
184      factors including, but not limited to, the project's potential
185      for enhanced job creation or increased capital investment, the
186      demonstration and level of local public and private commitment,
187      whether the project is located in an enterprise zone, in a
188      community development corporation service area, or in an urban
189      high-crime area as designated under s. 212.097, the unemployment
190      rate of the county in which the project would be located, and
191      the poverty rate of the community.
192                (5) (a) A contract or agreement that involves the
193      expenditure of grant funds provided under this section,
194      including a contract or agreement entered into between another
195      entity and a regional economic development organization, a unit
196      of local government, or an economic development organization
197      substantially underwritten by a unit of local government, must
198      include:
199                1. The purpose of the contract or agreement.
200                2. Specific performance standards and responsibilities for

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          HB 1139                                                                2020




2 01      each entity.
202                 3. A detailed project or contract budget, if applicable.
203                 4. The value of any services provided.
204                 5. The projected travel expenses for employees and board
205       members, if applicable.
206                 (b) At least 14 days before execution, the contracting
207       regional economic development organization shall post on its
208       website:
209                 1. Any contract or agreement that involves the expenditure
210       of grant funds provided under this section.
211                 2. A plain-language version of a contract or agreement that
212       is estimated to exceed $35,000 with a private entity, a
213       municipality, or a vendor of services, supplies, or programs,
214       including marketing, or for the purchase or lease or use of
215       lands, facilities, or properties which involves the expenditure
216       of grant funds provided under this section.
217                 (6)   For the 2019 2020 fiscal year, the funds appropriated
218       for the grant program for Florida Panhandle counties shall be
219       distributed pursuant to and for the purposes described in the
220       proviso language associated with Specific Appropriation 2314 of
221       the 2019 2020 General Appropriations Act. This subsection
222       expires July 1, 2020.
223                 Section 3.       This act shall take effect July 1, 2020.




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:c
CD
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1253   Employer Contributions
SPONSOR(S): McClure
TIED BILLS:       IDEN./SIM. BILLS: SB 1356

  REFERENCE                                                        ACTION                   ANALYST               STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  1) Workforce Development & Tourism
     Subcommittee
                                                                                            Willson   l'tV        Barry   t\1~
  2) Ways & Means Committee

  3) Commerce Committee


                                                         SUMMARY ANALYSIS

Florida's reemployment assistance program offers temporary, partial wage replacement to qualified individuals
who lose their jobs through no fault of their own. Employers fund the state's reemployment assistance program
through taxes on their businesses. Tax rates are impacted by the employment record of the individual business
and amount of money available in the fund, among other factors.

An employer's contributions are equal to a percentage of its wages paid for employment. The standard rate of
contributions payable is 5.4%, which is also the maximum allowable tax rate under current law. New employers
are liable to pay an initial contribution of 2. 7%, which remains in effect until the employer has made
contributions for at least eight consecutive quarters.

An employer with record of at least eight quarters of contributions may be eligible to receive a variable tax rate.
Variable tax rates are adjusted annually and are based on the employer's benefit experience, the balance of
the Trust Fund, and other adjustment factors. The variable rates range from 5.4% to the minimum allowable
tax rate, which varies annually but can never be less than 0.1 %.

Under current law, a negative adjustment factor is required if the balance of the Trust Fund is greater than 5%
of the taxable payrolls. A negative adjustment factor remains in effect until the balance of the Trust Fund is less
than 5%, but more than 4%, of the total taxable payroll for the previous year. A positive adjustment factor is
required if the balance of the Trust Fund is less than 5% of the taxable payrolls. A positive adjustment factor
remains in effect until the trust fund balance equals or exceeds 4% of the total taxable payroll for the previous
year.

The bill reduces the initial rate for unemployment contributions, from 2. 7% to 1.0%, for tax rates effective on or
after January 1, 2021, so long as the balance in the Unemployment Compensation Trust Fund does not require
the computation of a positive adjustment factor for that year.

See Fiscal Analysis section for an estimate of the fiscal impact of the bill.

The bill has an effective date of July 1, 2020.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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                                                      FULL ANALYSIS

                                               I. SUBSTANTIVE ANALYSIS

    A EFFECT OF PROPOSED CHANGES:
        Present Situation

        Reemployment Assistance Program

        The federal Unemployment Insurance Program provides unemployment benefits to eligible workers
        who are unemployed through no fault of their own and who meet the requirements of state law. The
        program is administered as a partnership of the federal government and the states. The individual
        states collect unemployment compensation payroll taxes on a quarterly basis, which are used to pay
        benefits. Subject to the approval of the United States Department of Labor (USDOL}, each state also
        sets tax rates, benefit levels, and trust fund balances based on the state's needs. 1

        The Internal Revenue Service collects an annual federal payroll tax under the Federal Unemployment
        Tax Act (FUTA}, 2 used to provide grants to the states to fund costs associated with program
        administration and job service programs. 3 In addition to FUTA, Florida employers are required to pay a
        state tax on the first $7,000 of each employee's annual income, which is deposited into Florida's
        Unemployment Compensation Trust Fund (Trust Fund}, an account used to pay unemployment
        compensation benefits.

        Florida's unemployment insurance program was created by the Legislature in 1937, 4 and was
        rebranded as the "Reemployment Assistance Program" in 2012. 5 The Department of Economic
        Opportunity (DEO) is responsible for administering the program and determining the calculation and
        payment of reemployment assistance (RA) benefits to eligible claimants. The Reemployment
        Assistance Program supports reemployment services through local One-Stop Career Centers located
        throughout the state. Department of Revenue (DOR) provides tax collection services on behalf of DEO
        and deposits the taxes into the state's Trust Fund. 6 The Trust Fund is used solely for the purpose of
        paying benefits to eligible claimants.7

        State Reemployment Tax

        Florida employers are required to pay the state reemployment tax as a cost of doing business. Workers
        do not pay any part of the Florida reemployment tax and employers must not make payroll deductions
        for this purpose. Employers with stable employment records receive credit in reduced tax rates after a
        qualifying period. Employers must file quarterly reports and pay taxes within one month following after
        the close of each quarter. New businesses are required to report initial employment information in the
        month following the calendar quarter in which employment begins. DOR reviews the reports and makes
        a determination of whether the business is liable to pay reemployment taxes. 8


1 USDOL, Employment and Training Administration, State Unemployment Insurance Benefits,
http://workforcesecurity.doleta.gov/unemploy/uifactsheet.asp (last visited Jan. 28, 2020).
2
  26 U.S.C. 3301-3311.
3
  FUTA also pays one-half the cost of extended unemployment benefits (during periods of high unemployment) and provides for a
fund from which states may borrow, ifnecessary, to pay benefits. See USDOL, Employment and Training Administration,
Unemployment Insurance Tax Topic, available at http://workforcesecurity.doleta.gov/unemploy/uitaxtopic.asp (last visited Jan. 29,
2020).
4
  Ch. 18402, Laws of Fla.
5
  Ch. 2012-30, Laws of Fla.
6
  S. 443.1316, F.S.
7
  Ss. 443.131 and443.191, F.S.
8
  DOR, Employer Guide to Reemployment Tax, available at http://floridarevenue.com/Forms library/current/rt800002.pdf (last visited
Jan. 29, 2020).
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         Generally, a business is liable to pay state reemployment tax if in the current or preceding calendar
         year, the employer:
            • Paid more than $1,500 in quarterly wages in a calendar year;
            • Had at least one employee for any portion of a day during any 20 weeks in a calendar year; or
            • Is liable under the FUTA as a result of employment in another state. 9

         Florida law also specifies separate liability requirements for agricultural and domestic employers,
         nonprofit organizations, governmental agencies, and Indian tribes. 10 Businesses that are otherwise not
         subject to reemployment taxation may opt to voluntarily pay into the Trust Fund for coverage for their
         employees. 11

         An employer's contributions are equal to a percentage of its wages paid for employment. 12 The
         standard rate of contributions payable is 5.4%, 13 which is also the maximum allowable tax rate under
         current law. 14 New employers are liable to pay an initial contribution of 2.7%, which remains in effect
         until the employer has made contributions for at least eight consecutive quarters. 15

         An employer with record of at least eight quarters of contributions may be eligible to receive a variable
         tax rate. Variable tax rates are adjusted annually and are based on the employer's benefit experience,
         the balance of the Trust Fund, and other adjustment factors. The variable rates range from 5.4% to the
         minimum allowable tax rate, which varies annually but can never be less than 0.1 %. 16

         An employer's benefit experience rating is based on a comparison of the previous 12 consecutive
         quarters of the employer's employment records in relation to the records of all other employers. 17 The
         benefit ratio divides the benefits charged during the previous three years by the taxable wages during
         the same timeframe. The purpose of using the experience rating to determine reemployment tax rates
         is to stabilize the Trust Fund at a percentage of the taxable payrolls reported by all employers and to
         ensure employers are required to pay a fair share. When an eligible claimant collects RA benefits, an
         employer is "charged" and the employer will likely see an increased tax rate. Additionally, any employer
         who has been billed for an outstanding tax debt for one year or longer is assigned a penalty tax rate of
         5.4%.

         Florida Unemployment Compensation Trust Fund

         Economic conditions resulting in abnormally high unemployment accompanied by high benefit charges
         can cause a severe drain on the Trust Fund. This effect triggers the positive fund balance adjustment
         factor, which consequently increases tax rates for all employers. Conversely, when unemployment and
         benefit charges are low, the negative fund balance adjustment factor triggers, and tax rates for
         employers are reduced accordingly. 18



9 S. 443.1215, F.S.
10
   See generally ch. 443, F.S.
11
   If an employer voluntarily provides coverage, the employer must report wages and pay reemployment taxes for a minimum of one
calendar year. S. 443.121(3), F.S.
12
   Employers are required to pay taxes on the first $7,000 of each employee's wages. S. 443.1217(2), F.S.
13
   S. 443.131(2)(c), F.S.
14
   Sees. 443.131(2)(e), F.S
15
   S. 443.131(2)(a), F.S.
16
   The final adjustment factor spreads costs not included in the variable adjustment factor to all employers whose rates are not at the
initial or maximum rate. The final adjustment factor determines the minimum tax rate for the year.
17
   Employers that paid the initial tax rate for at least eight consecutive quarters may also be assigned a benefit ratio, which requires a
separate calculation to be computed by DOR.
18
   During the years of2010-2014, the Legislature made efforts to temporarily increased the tax wage base from $7,000 to $8,500,
increased the trigger for the positive adjustment factor from 3.7% to 4%, and reduced the trigger for the negative adjustment factor
from 4.7% to 5%. The Legislature also reduced the tax wage base and the adjustment factor triggers as the economy stabilized. See
Ch. 2009-99, Laws ofFla., Ch. 2010-1, Laws of Fla., Ch. 2011-235, Laws ofFla., and Ch. 2012-30, Laws ofFla.
STORAGE NAME: h1253.WTS.DOCX                                                                                                        PAGE: 3
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             Under current law, a negative adjustment factor is required if the balance of the Trust Fund is greater
             than 5% of the taxable payrolls. A negative adjustment factor remains in effect until the balance of the
             Trust Fund is less than 5%, but more than 4%, of the total taxable payroll for the previous year. 19 A
             positive adjustment factor is required if the balance of the Trust Fund is less than 5% of the taxable
             payrolls. A positive adjustment factor remains in effect until the trust fund balance equals or exceeds
                                                                         °
             4% of the total taxable payroll for the previous year. 2 Florida's Unemployment Compensation Trust
             Fund held a balance greater than $4.08 billion at the close of the third quarter in 2019. 21

             Employee Leasing Companies

             Employee Leasing Companies (ELG) are regulated by part XI of ch. 468, F.S., and the Board of
             Employee Leasing Companies under Florida Department of Business and Professional Regulation
             (DBPR). Generally, 'employee leasing' means an arrangement whereby a leasing company assigns its
             employees to a client and allocates the direction of and control over the leased employees between the
             leasing company and the client, with exceptions.

             A newly licensed ELG has 30 days from the date of licensure by the Florida Department of Business
             and Professional Regulation (DBPR) to make an election with DOR to report and pay reemployment
             tax using the tax rate for each client. This is called the client method. The tax rate used will be based
             upon the wage and benefit history the client has earned under the ELG. If the client has no wage and
             benefit history under the ELG, the client will have the initial rate of 0.0270 (2.7%). A separate
             reemployment tax account number will be assigned by DOR under the Federal Employer Identification
             Number (FEIN) of the ELG for each client company. 22

             This one-time election by an ELG is binding on all current and future clients. A newly licensed ELG that
             does not timely notify DOR in writing of its election to use the client method must report all leased and
             internal employees under its own reemployment tax account number and tax rate. 23

             Effect of the Bill

             The bill amends s. 443.1216(1)(a)2.a.(ll)(C), F.S., reducing the initial rate at which an ELG must pay
             unemployment contributions for a client company under the client method, from 2.7% to 1.0%. The bill
             applies only to tax rates effective on or after January 1, 2021, so long as the balance in the
             Unemployment Compensation Trust Fund does not require the computation of a positive adjustment
             factor for that year.

             The bill amends s. 443.131 (2)(a), F.S., reducing the initial rate at which an employer must pay
             unemployment contributions from 2.7% to 1.0%. The bill applies only to tax rates effective on or after
             January 1, 2021, so long as the balance in the Unemployment Compensation Trust Fund does not
             require the computation of a positive adjustment factor for that year.

             The bill provides for an effective date of July 1, 2020.

       B. SECTION DIRECTORY:
             Section 1             Amends s. 443.1216, F.S., reducing the initial rate that certain client companies of
                                   employee leasing companies must pay under specified circumstances.


19
     S. 443.131(3)(e), F.S.
20
     See s. 443 .131 (3)( e ), F .S.
21
   U.S. Dept. of Labor, Financial Information by State for CYQ- 2019.3
https://oui.doleta.gov/unemploy/data summary/SummaryTables.pdf(last visited Jan. 29, 2020).
22
   DOR, Reemployment Tax for Professional Employer Organizations, https://floridarevenue.com/taxes/taxesfees/Pages/rt elc.aspx
(last visited Jan. 29, 2020).
n Id.
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        Section 2         Amends s. 443.131, F.S.; requiring the tax collection service provider to adjust the initial
                          employer contribution rate under certain circumstances.

        Section 3         Provides for an effective date.


                            11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
             None.

        2.   Expenditures:
             See Fiscal Comments, below.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
             None.

        2.   Expenditures:
             None.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        According to DEO, a reduction of the initial tax rate from 2.7% to 1.0% would result in a total savings for
        new contributory employers of $66.3 million annually, or $119 per employee per year. 24

    D. FISCAL COMMENTS:
        The Revenue Estimating Conference scored CS/SB 1356 on January 31, 2020, 25 and provided the
        following: Florida employers paid $498.2 million of Reemployment Assistance into the RA trust fund in
        FY 2018-19. Currently, due to the size of the trust fund, there are negative adjustment factors
        calculated to the rates employers pay. The Department of Revenue provided historical data for RA
        taxes paid by employers subject to the current 2. 7% initial rate (with fewer than eight chargeable
        quarters). Based on the data, new employers (with fewer than eight chargeable quarters), subject to the
        2.7% initial rate, paid $184.8 million in FY 2018-19. If these employers are charged the proposed 1%
        initial rate, they would have paid $68.9 million for the same period, a savings of $117 million to those
        employers. This amounts to 0.2% of taxable wages. There are approximately 150,000 employers that
        paid the 2.7% rate in FY 2018-19. As a result, RA tax collections and the trust fund balance would have
        decreased by that amount. Rates to all other employers (earned rate employers) would have remained
        the same in the first year. This will be the impact in the first year of implementation.

         In future years, the decrease in the fund balance may feed through into the calculation of earned rates
         for employers and earned rates for the remaining employers may potentially increase, all else being
         equal.




24
   Email from J.P. Bell, Legislative and Cabinet Affairs Coordinator, Dept. of Economic Opportunity, DEO one pagers (Jan. 21,
2020).
25
   Revenue Estimating Impact Conference, 1/31120 Revenue Impact Results, pp. 337-340,
http://edr.state.fl.us/Content/conferences/revenueimpact/archives/2020/ pdf/ImpactO 131.pdf (last visited Jan. 31, 2020).
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       Section 5: Consensus Estimate (Adopted: 01/31/2020): The Conference adopted the proposed impact with an adjustment for a
       feedback affect, reaching the full feedback affect impact in FY 2022-23.

                                GR                           Trust                    Local/Other                   Total
                        Cash         Recurring       Cash            Recurring   Cash         Reaming       Cash            Recurring
         2020-21         0.0            0.0        (117.0)            (87.8)      0.0            0.0      (117.0)            (87.8)
         2021-22         0.0            0.0         (96.4)            {87.8)      0.0            0.0       (96.4)            (87.8)
         2022-23         0.0            0.0         (87.8)            (87.8)      0.0            0.0       (87.8)            (87.8)
         2023-24         0.0            0.0         (87.8)            (87.8)      0.0            0.0       (87.8)            (87.8)
         2024-25         0.0            0.0         (87.8)            (87.8)      0.0            0.0       (87.8)            (87.8)


                                                        Ill. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
          raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
          municipalities.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill does not appear to create a need for rulemaking or rulemaking authority.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                            IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




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FLORIDA                       H    O   U   S   E     0   F      R E P R E S E N T A T I V E S



        HB 1253                                                                       2020




 1                                         A bill to be entitled
 2                An act relating to employer contributions; amending s.
 3                443.1216, F.S.; reducing the initial rate that certain
 4                client companies of employee leasing companies must
 5                pay under specified circumstances; amending s.
 6                443.131, F.S.; requiring the tax collection service
 7                provider to adjust the initial employer contribution
 8                rate under certain circumstances; providing an
 9                effective date.
10
11      Be It Enacted by the Legislature of the State of Florida:
12
13                Section 1.        Paragraph (a) of subsection (1) of section
14      443.1216, Florida Statutes, is amended to read:
15                443.1216        Employment.-Employment, as defined ins. 443.036,
16      is subject to this chapter under the following conditions:
17                ( 1) (a)   The employment subject to this chapter includes a
18      service performed, including a service performed in interstate
19      commerce, by:
20                1.   An officer of a corporation.
21                2.   An individual who, under the usual common-law rules
22      applicable in determining the employer-employee relationship, is
23      an employee. However, whenever a client, as defined ins.
24      443.036(18), which would otherwise be designated as an employing
25      unit has contracted with an employee leasing company to supply

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        HB 1253                                                                       2020




26      it with workers, those workers are considered employees of the
27      employee leasing company. An employee leasing company may lease
28      corporate officers of the client to the client and other workers
29      to the client, except as prohibited by regulations of the
30      Internal Revenue Service. Employees of an employee leasing
31      company must be reported under the employee leasing company's
32      tax identification number and contribution rate for work
33      performed for the employee leasing company.
34                a.     However, except for the internal employees of an
35      employee leasing company, each employee leasing company may make
36      a separate one-time election to report and pay contributions
37      under the tax identification number and contribution rate for
38      each client of the employee leasing company. Under the client
39      method, an employee leasing company choosing this option must
40      assign leased employees to the client company that is leasing
41      the employees. The client method is solely a method to report
42      and pay unemployment contributions, and, whichever method is
43      chosen, such election may not impact any other aspect of state
44      law. An employee leasing company that elects the client method
45      must pay contributions at the rates assigned to each client
46      company.
47                (I)    The election applies to all of the employee leasing
48      company's current and future clients.
49                (II)     The employee leasing company must notify the
50      Department of Revenue of its election by July 1, 2012, and such

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        HB 1253                                                                       2020




51      election applies to reports and contributions for the first
52      quarter of the following calendar year. The notification must
53      include:
54                (A)   A list of each client company and the unemployment
55      account number or, if one has not yet been issued, the federal
56      employment identification number, as established by the employee
57      leasing company upon the election to file by client method;
58                (B)   A list of each client company's current and previous
59      employees and their respective social security numbers for the
60      prior 3 state fiscal years or, if the client company has not
61      been a client for the prior 3 state fiscal years, such portion
62      of the prior 3 state fiscal years that the client company has
63      been a client must be supplied;
64                (C)   The wage data and benefit charges associated with each
65      client company for the prior 3 state fiscal years or, if the
66      client company has not been a client for the prior 3 state
67      fiscal years, such portion of the prior 3 state fiscal years
68      that the client company has been a client must be supplied. If
69      the client company's employment record is chargeable with
70      benefits for less than 8 calendar quarters while being a client
71      of the employee leasing company, the client company must pay
72      contributions at the initial rate of 2.7 percent. For tax rates
73      effective on or after January 1, 2021, if the client company's
74      employment record is chargeable with benefits for less than 8
75      calendar quarters while being a client of the employee leasing

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         HB 1253                                                                       2020




 76      company, the client company must pay contributions at the
 77      initial rate of 1.0 percent. However, the tax collection service
 78      provider may not adjust the initial rate for any year in which
 79      the balance in the Unemployment Compensation Trust Fund requires
 80      the computation of a positive adjustment factor under s.
 81      4 4 3. 131 ( 3) ( e) 2. a. (III) ; and
 82                (D)     The wage data and benefit charges for the prior 3
 83      state fiscal years that cannot be associated with a client
 84      company must be reported and charged to the employee leasing
 85      company.
 86                (III)     Subsequent to choosing the client method, the
 87      employee leasing company may not change its reporting method.
 88                (IV)     The employee leasing company shall file a Florida
 89      Department of Revenue Employer's Quarterly Report for each
 90      client company by approved electronic means, and pay all
 91      contributions by approved electronic means.
 92                (V)     For the purposes of calculating experience rates when
 93      the client method is chosen, each client's own benefit charges
 94      and wage data experience while with the employee leasing company
 95      determines each client's tax rate where the client has been a
 96      client of the employee leasing company for at least 8 calendar
 97      quarters before the election. The client company shall continue
 98      to report the nonleased employees under its tax rate.
 99                (VI)    The election is binding on each client of the
100      employee leasing company for as long as a written agreement is

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         HB 1253                                                                  2020




101      in effect between the client and the employee leasing company
102      pursuant to s. 4 68. 525 ( 3) (a) . If the relationship between the
103      employee leasing company and the client terminates, the client
104      retains the wage and benefit history experienced under the
105      employee leasing company.
106                (VII)     Notwithstanding which election method the employee
107      leasing company chooses, the applicable client company is an
108      employing unit for purposes of s. 443.071. The employee leasing
109      company or any of its officers or agents are liable for any
110      violation of s. 443.071 engaged in by such persons or entities.
111      The applicable client company or any of its officers or agents
112      are liable for any violation of s. 443.071 engaged in by such
113      persons or entities. The employee leasing company or its
114      applicable client company is not liable for any violation of s.
115      443.071 engaged in by the other party or by the other party's
116      officers or agents.
117                (VIII)     If an employee leasing company fails to select the
118      client method of reporting not later than July 1, 2012, the
119      entity is required to report under the employee leasing
120      company's tax identification number and contribution rate.
121                (IX)     After an employee leasing company is licensed
122      pursuant to part XI of chapter 468, each newly licensed entity
123      has 30 days after the date the license is granted to notify the
124      tax collection service provider in writing of their selection of
125      the client method. A newly licensed employee leasing company

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126      that fails to timely select reporting pursuant to the client
127      method of reporting must report under the employee leasing
128      company's tax identification number and contribution rate.
129                (X)     Irrespective of the election, each transfer of trade
130      or business, including workforce, or a portion thereof, between
131      employee leasing companies is subject to the provisions of s.
132      443.131(3) (g)         if, at the time of the transfer, there is common
133      ownership, management, or control between the entities.
134                b.     In addition to any other report required to be filed by
135      law, an employee leasing company shall submit a report to the
136      Labor Market Statistics Center within the Department of Economic
137      Opportunity which includes each client establishment and each
138      establishment of the leasing company, or as otherwise directed
139      by the department. The report must include the following
140      information for each establishment:
141                (I)     The trade or establishment name;
142                (II)     The former reemployment assistance account number, if
143      available;
144                (III)     The former federal employer's identification number,
145      if available;
146                (IV)     The industry code recognized and published by the
147      United States Office of Management and Budget, if available;
148                (V)     A description of the client's primary business
149      activity in order to verify or assign an industry code;
150                (VI)     The address of the physical location;

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151                (VII)     The number of full-time and part-time employees who
152      worked during, or received pay that was subject to reemployment
153      assistance taxes for,              the pay period including the 12th of the
154      month for each month of the quarter;
155                (VIII)     The total wages subject to reemployment assistance
156      taxes paid during the calendar quarter;
157                (IX)     An internal identification code to uniquely identify
158      each establishment of each client;
159                (X)     The month and year that the client entered into the
160      contract for services; and
161                (XI)     The month and year that the client terminated the
162      contract for services.
163                c.     The report must be submitted electronically or in a
164      manner otherwise prescribed by the Department of Economic
165      Opportunity in the format specified by the Bureau of Labor
166      Statistics of the United States Department of Labor for its
167      Multiple Worksite Report for Professional Employer
168      Organizations. The report must be provided quarterly to the
169      Labor Market Statistics Center within the department, or as
170      otherwise directed by the department, and must be filed by the
171      last day of the month immediately after the end of the calendar
172      quarter. The information required in sub-sub-subparagraphs b. (X)
173      and (XI) need be provided only in the quarter in which the
174      contract to which it relates was entered into or terminated. The
175      sum of the employment data and the sum of the wage data in this

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176      report must match the employment and wages reported in the
177      reemployment assistance quarterly tax and wage report.
178                d.   The department shall adopt rules as necessary to
179      administer this subparagraph, and may administer, collect,
180      enforce, and waive the penalty imposed bys. 443.141(1) (b) for
181      the report required by this subparagraph.
182                e.   For the purposes of this subparagraph, the term
183      "establishment'' means any location where business is conducted
184      or where services or industrial operations are performed.
185                3.   An individual other than an individual who is an
186      employee under subparagraph 1. or subparagraph 2., who performs
187      services for remuneration for any person:
188                a.   As an agent-driver or commission-driver engaged in
189      distributing meat products, vegetable products, fruit products,
190      bakery products, beverages other than milk, or laundry or
191      drycleaning services for his or her principal.
192                b.   As a traveling or city salesperson engaged on a full-
193      time basis in the solicitation on behalf of, and the
194      transmission to, his or her principal of orders from
195      wholesalers, retailers, contractors, or operators of hotels,
196      restaurants, or other similar establishments for merchandise for
197      resale or supplies for use in the business operations. This sub-
198      subparagraph does not apply to an agent-driver or a commission-
199      driver and does not apply to sideline sales activities performed
200      on behalf of a person other than the salesperson's principal.

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201                4.    The services described in subparagraph 3. are
202      employment subject to this chapter only if:
203                a.    The contract of service contemplates that substantially
204      all of the services are to be performed personally by the
205      individual;
206                b.    The individual does not have a substantial investment
207      in facilities used in connection with the services, other than
208      facilities used for transportation; and
209                c.    The services are not in the nature of a single
210      transaction that is not part of a continuing relationship with
211      the person for whom the services are performed.
212                Section 2.       Paragraph (a) of subsection (2) of section
213      443.131, Florida Statutes, is amended to read:
214                443.131     Contributions.-
215                (2)   CONTRIBUTION RATES.-Each employer must pay
216      contributions equal to the following percentages of wages paid
217      by him or her for employment:
218                (a)    Initial rate.-Each employer whose employment record is
219      chargeable with benefits for less than 8 calendar quarters shall
220      pay contributions at the initial rate of 2.7 percent. For tax
221      rates effective on or after January 1, 2021, the tax collection
222      service provider shall adjust the initial rate to 1.0 percent
223      for each employer whose employment record is chargeable with
224      benefits for less than 8 calendar quarters. However, the tax
225      collection service provider may not adjust the initial rate for

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226      any year in which the balance in the Unemployment Compensation
227      Trust Fund requires the computation of a positive adjustment
228      factor under sub-sub-subparagraph (3) (e)2.a. (III).
229                Section 3.       This act shall take effect July 1, 2020.




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:::c:

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                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1297 Drug-free Workplaces
SPONSOR(S): Robinson
TIED BILLS:       IDEN./SIM. BILLS:

  REFERENCE                                                       ACTION                    ANALYST               STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  1) Workforce Development & Tourism
     Subcommittee
                                                                                            Willson   Mw          Barry   v\1J~
  2) Appropriations Committee

  3) Commerce Committee


                                                         SUMMARY ANALYSIS
Currently, an employer subject to the Workers' Compensation Law who implements a drug-free workforce
program pursuant to s. 440.102, F.S., is eligible for a workers' compensation insurance discount of up to 5
percent. If an employee in such a program tests positive for drugs or alcohol, the employee may be terminated,
and forfeits his or her eligibility for medical and indemnity benefits.

The bill makes a number of changes to the drug-free workplace program, including:
• Amends the definition of "drug" to include substances named in state and federal law;
• Adds additional certification requirements for drug tests and specimens;
• Removes a requirement that an employee be provided a form on which to note medications, which must be
   taken into account in interpreting drug tests;
• Replaces a list of professions qualified to collect specimens with a requirement that such persons meet
   qualification standards set by specified federal agencies;
• Requires specimens from positive tests to be preserved for one year after the confirmation test was
   conducted, instead of 210 days after result was mailed;
• Shortens from 180 to 60 days after notification of a positive result the period during which an employee
   may have a specimen retested;
• Requires that drug-screening tests meet specified standards;
• Increases the required frequency of followup drug testing from at least once a year for a two-year period to
   at least six times in the first year and up to two times in the second year.

The bill appears to have no fiscal impact on state or local government.

The bill provides an effective date of July 1, 2020.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Drug-Free Workplace Program for Workers' Compensation Employers

        The Workers' Compensation Law in ch. 440, F.S., includes provisions that incentivize drug-free
        workplaces, and sets out the notice, educational, and procedural requirements that an employer must
        follow to implement the employee and applicant drug testing that is a component of such workplaces. 1

        If an employer implements a drug-free workplace program that conforms to applicable law and rules,
        the employer is eligible for workers' compensation and employer's liability insurance discounts2 of up to
        five percent, 3 and the employer may require an employee to submit to a test for the presence of drugs
        or alcohol. If an employee in a drug-free workplace program tests positive for drugs or alcohol, the
        employee may be terminated, and forfeits his or her eligibility for medical and indemnity benefits. 4

        For the purposes of the drug-free workplace program under s. 440.102, F.S.:
           • "Drug" means alcohol, including a distilled spirit, wine, a malt beverage, or an intoxicating liquor;
               an amphetamine; a cannabinoid; cocaine; phencyclidine (PCP); a hallucinogen; methaqualone;
               an opiate; a barbiturate; a benzodiazepine; a synthetic narcotic; a designer drug; or a metabolite
               of any of the substances listed in this paragraph.
            • "Drug test" or "test" means any chemical, biological, or physical instrumental analysis
               administered, by a laboratory certified by the U.S. Department of Health and Human Services or
                licensed by the Agency for Health Care Administration (AHCA), for the purpose of determining
               the presence or absence of a drug or its metabolites.
            • "Employer" means a person or entity that employs a person and that is covered by the Workers'
               Compensation Law.
           • "Specimen" means tissue, hair, or a product of the human body capable of revealing the
                presence of drugs or their metabolites, as approved by the U.S. Food and Drug Administration
               or the AHCA. 5

        Prior to testing, an employer must give all employees and applicants for employment a written policy
        statement that contains certain information, including:
            • The employer's policy on employee drug use,
            • The consequences of refusing to submit to a drug test, and
            • A list of all drugs for which the employer will test, described by brand, common and chemical
                name.

        An employer must include notice of drug testing on vacancy announcements for positions for which
        drug testing is required. 6

        An employer is required to conduct job applicant, reasonable-suspicion, and routine fitness-for-duty
        drug testing. If an employee in the course of employment enters an employee assistance program for

1 See ss. 440.101 and 440.102, F.S.
2
  S. 440.102(2), F.S. Sees. 627.0915, F.S., providing that the Office of Insurance Regulation must approve rating plans
for workers' compensation and employers' liability insurance that give specific identifiable consideration in the setting of
rates to employers that implement a drug-free workplace program pursuant to s. 440.102 F.S., and attendant rules.
3 R. 69L-5.220, F.A.C.
4 S. 440.101 (2), F .S.
5 S. 440.102(1), F.S.
6 S. 440.102(3)(c), F.S.
STORAGE NAME: h1297.WTS.D0CX                                                                                           PAGE: 2
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        drug-related problems, or a drug rehabilitation program, the employer must require the employee to
        submit to a drug test as a follow-up to such program, unless the employee voluntarily entered the
        program. If follow-up testing is required, it must be conducted at least once a year for a 2-year period
        after completion of the program.7

        Specimen collection and testing for drugs pursuant to s. 440.102, F.S., must be performed in
        accordance with the procedures set forth in the statute.

        An employee or job applicant whose drug test result is confirmed as positive in accordance with s.
        440.102, F.S., must not, by virtue of the result alone, be deemed to have a "handicap" or "disability" as
        defined under federal, state, or local handicap and disability discrimination laws.

        An employer who discharges or disciplines an employee or refuses to hire a job applicant in
        compliance with this section is considered to have discharged, disciplined, or refused to hire for cause.

        Effect of the Bill

        The bill makes numerous changes to the definitions, requirements, and procedures relating to drug-free
        workplaces for Workers' Compensation Law employers under s. 440.102, F.S. Specifically, the bill:

            •    Amends the definition of "drug" to include any form of alcohol, including ethanol, methanol,
                 propanol, and isopropanol; any controlled substance identified under Schedules I, II, Ill, IV, or
                 Schedule V of s. 893.03, F.S.; 8 and any controlled substance identified under Schedules I, II, Ill,
                 IV, orVof the Controlled Substances Act, 21 U.S.C. § 812(c).
            •    Amends the definition of "drug test," to provide that when testing for alcohol, the drug test must
                 be conducted in accordance with the United States Department of Transportation alcohol
                 testing procedures authorized under 49 C.F.R. part 40, subparts J through M. 9
            •    Adds the U.S. Department of Health and Human Services (HHS) and U.S. Department of
                 Transportation (USDOT) to the definition of "specimen".
            •   Changes the written policy statement that employers are required to give to all employees and
                applicants prior to testing by removing from the procedures the requirement that employees and
                job applicants could confidentially report to a medical review officer their use of medications
                both before and after being tested. The bill also removes the requirement that the policy contain
                the brand name of drugs being tested for.
            •    Increases the required frequency of mandatory followup drug testing for certain employees from
                 at least once a year for a two-year period to at least six times in the first year and up to two
                 times in the second year.
            •    Provides that a specimen container for saliva or breath testing is not required when the
                 specimen is not being transported to a laboratory for analysis.
            •    Removes a requirement that a form must be provided upon which an employee may provide
                 information considered by the employee to be relevant to the test, including the use of
                 medication, and deletes the requirement that such information be taken into account in
                 interpreting positive confirmed test results.


7 S. 440.102(4), F.S.
8
  Section 893.03, F.S., classifies controlled substances into five categories, known as schedules. These schedules
regulate the manufacture, distribution, preparation, and dispensing of the substances listed in the schedules. The most
important factors in determining the schedule classification of a substance are the "potential for abuse" of the substance
and whether there is a currently accepted medical use for the substance in the United States.
9
  This rule describes required procedures for conducting workplace drug and alcohol testing for the federally regulated
transportation industry. See USDOT, Overview of 49 CFR Part 40, https://www.transportation.gov/odapc/part40 {last
visited January 27, 2020).
STORAGE NAME: h1297.WTS.D0CX                                                                                         PAGE: 3
DATE: 2/1/2020
           •   Replaces a requirement that a drug test specimen may be taken or collected by a physician,
               physician assistant, registered professional nurse, licensed practical nurse, nurse practitioner,
               certified paramedic at scene of accident, or qualified lab employee with a requirement that a
               specimen may be collected by a person who meets the qualification standards for urine or oral
               fluid specimen collection as specified by the HHS or the USDOT. For alcohol testing, a person
               must meet the USDOT for a screening test technician or a breath alcohol technician. A hair
               specimen may be collected and packaged by a person who has been trained and certified by a
               drug testing laboratory. A person who directly supervises an employee subject to testing may
               not serve as the specimen collector for that employee unless there is no other qualified
               specimen collector available.
           •   Clarifies that a specimen amount should be sufficient for two independent drug tests - one to
               screen the specimen and one to confirm the screening results.
           •   Extends the amount of time that a positive, confirmed test must be preserved, from "210 days
               after the result of the test was mailed or otherwise delivered to the medical review officer" to one
               year after the confirmation test was conducted.
           •   Shortens from 180 days to 60 days the period after a positive test during which an employee or
               applicant may have the sample retested.
           •   Provides that a second lab must test the specimen at the limit of detection for the drug or
               analyte confirmed by the original, and if the drug or analyte is detected by the second
               laboratory, the result must be reported as reconfirmed positive.
           •   Removes a requirement that an applicant or employee's explanation or challenge of a positive
               test must be provided to the applicant or employee.
           •   Removes the requirement that an employee must verify a positive test result with a confirmation
               test prior to taking adverse action against an employee or job applicant, and creates an
               exception when a confirmed positive breath alcohol test was conducted in accordance with U.S.
               Department of Transportation alcohol testing procedures.
           •   Allows an employer that performs drug testing or specimen collection to follow chain-of-custody
               procedures established by HHS or USDOT.
           •   Removes a provision specifying that, if an initial drug test is negative, the employer may in its
               sole discretion seek a confirmation test, and removes a provision that only licensed or certified
               laboratories may conduct confirmation drug tests.
           •   Provides that all laboratory positive initial tests on a urine, oral fluid, blood, or hair_specimen
               must be confirmed using gas chromatography/mass spectrometry or an equivalent or more
               accurate scientifically accepted method approved by the HHS or the USDOT, and removes a
               provision that the tests can be confirmed by methods approved by the AHCA or the U.S. Food
               and Drug Administration.
           •   Provides that for a breath alcohol test, an initial positive result must be confirmed by a second
               breath specimen taken and tested using an evidential breath testing device listed on the
               conforming products list issued by the National Highway Traffic Safety Administration and
               conducted in accordance with USDOT alcohol testing procedures.
           •   Removes a requirement that lab reports of drug tests must include any correlation between
               medication reported by the employee or applicant and the test result.

       The bill provides an effective date of July 1, 2020.

   B. SECTION DIRECTORY:
       Section 1      Amends s. 440.102, F.S., revising definitions; revising the contents of an employer policy
                      statement with respect to employee drug use; revising the frequency of followup testing;
                      revising specimen collection, verification, and documentation procedures; revising
STORAGE NAME: h1297.WTS.DOCX                                                                                 PAGE: 4
DATE: 2/1/2020
                        requirements for confirmation testing; conforming provisions to changes made by the
                        act; revising minimum requirements for laboratory reports of a drug test result.

       Section 2        Provides an effective date.


                          II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
             None.

       2.    Expenditures:
             None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
             None.

       2. Expenditures:
             None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       Indeterminate. If the amended testing standards in the bill reduce the number of drug-testing facilities
       that can comply, those drug-testing facilities that can comply should see an increase in the number of
       tests they perform.

   D. FISCAL COMMENTS:
       None.


                                                  Ill. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
            Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
            action requiring the expenditures of funds; reduce the authority that counties or municipalities have
            to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
            municipalities.

       2. Other:
            None.

   B. RULE-MAKING AUTHORITY:
       The bill does not appear to create a need for rulemaking authority.

   C. DRAFTING ISSUES OR OTHER COMMENTS:

STORAGE NAME: h1297.WTS.D0CX                                                                                 PAGE: 5
DATE: 2/1/2020
       None.


                        IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h1297.WTS.DOCX                                           PAGE: 6
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        HB 1297                                                                                       2020




 1                                         A bill to be entitled
 2                An act relating to drug-free workplaces; amending s.
 3                440.102, F.S.; revising definitions; revising the
 4                contents of an employer policy statement with respect
 5                to employee drug use; revising the frequency of
 6                followup testing; revising specimen collection,
 7                verification, and documentation procedures; revising
 8                requirements for confirmation testing; conforming
 9                provisions to changes made by the act; revising
10                minimum requirements for laboratory reports of a drug
11                test result; providing an effective date.
12
13      Be It Enacted by the Legislature of the State of Florida:
14
15                Section 1.       Paragraphs ( c) ,          ( e) , and ( q) of subsection ( 1) ,
16      paragraph (a) of subsection (3), paragraph (a) of subsection
17       (4), paragraphs (b),             (c),    (e),    (f),       (g),    (h),   (j),   (k), and (1)
18      of subsection (5), subsection (6), paragraph (a) of subsection
19       (7), and paragraph (c) of subsection (9) of section 440.102,
20      Florida Statutes, are amended to read:
21                440.102      Drug-free workplace program requirements.-The
22      following provisions apply to a drug-free workplace program
23      implemented pursuant to law or to rules adopted by the Agency
24      for Health Care Administration:
25                (1)   DEFINITIONS.-Except where the context otherwise

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26      requires, as used in this act:
27                (c}    "Drug" means any form of alcohol, as defined in s.
28      322.01(2), including a distilled spirit, wine, a malt beverage,
29      or an intoxicating preparation; any controlled substance
30      identified under Schedule I, Schedule II, Schedule III, Schedule
31      IV, or Schedule V of s. 893.03; any controlled substance
32      identified under Schedule I, Schedule II, Schedule III, Schedule
33      IV, or Schedule V of the Controlled Substances Act, 21 U.S.C. s.
34      812(c)       liquor; an amphetamine; a cannabinoid; cocaine;
35      phencyclidine          (PCP); a hallucinogen; methaqualone, an opiate; a
36      barbiturate; a benzodiazepine; a synthetic narcotic; a designer
37      €i--r-wJ; or a metabolite of any of the substances listed in this
38      paragraph. An employer may test an individual for any or all of
39      such drugs.
40                ( e)   "Drug test" or "test" means any chemical, biological,
41      or physical instrumental analysis administered7 by a laboratory
42      certified by the United States Department of Health and Human
43      Services or licensed by the Agency for Health Care
44      Administration7           for the purpose of determining the presence or
45      absence of a drug or its metabolites. In the case of testing for
46      the presence of alcohol, the test shall be conducted in
47      accordance with United States Department of Transportation
48      alcohol testing procedures authorized under 49 C.F.R. part 40,
49      subparts J through M.
50                (q}    "Specimen" means tissue, hair, or a product of the

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51      human body capable of revealing the presence of drugs or their
52      metabolites, as approved by the United States Food and Drug
53      AdministrationL e-r the Agency for Health Care AdministrationL
54      the United States Department of Health and Human Services, or
55      the United States Department of Transportation.
56                (3)    NOTICE TO EMPLOYEES AND JOB APPLICANTS.-
57                (a)    One time only, before prior to testing, an employer
58      shall give all employees and job applicants for employment a
59      written policy statement that which contains:
60                1.    A general statement of the employer's policy on
61      employee drug use, which must identify:
62                a.    The types of drug testing an employee or job applicant
63      may be required to submit to, including reasonable-suspicion
64      drug testing or drug testing conducted on any other basis.
65                b.    The actions the employer may take against an employee
66      or job applicant on the basis of a positive confirmed drug test
67      result.
68                2.    A statement advising the employee or job applicant of
69      the existence of this section.
70                3.    A general statement concerning confidentiality.
71                4.    Procedures for employees and job applicants to
72      confidentially report to a medical review officer the use of
73      prescription or nonprescription medications to a medieal review
74      offieer both before and after being tested.
75                5.    A list of the most common medications, by brand name or

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 76      conunon name, as applicable, as well as by chemical name, which
 77      may alter or affect a drug test. A list of such medications as
 78      developed by the Agency for Health Care Administration shall be
 79      available to employers through the department.
 80                6.    The consequences of refusing to submit to a drug test.
 81                7.    A representative sampling of names, addresses, and
 82      telephone numbers of employee assistance programs and local drug
 83      rehabilitation programs.
 84                8.    A statement that an employee or job applicant who
 85      receives a positive confirmed test result may contest or explain
 86      the result to the medical review officer within 5 working days
 87      after receiving written notification of the test result; that if
 88      an employee's or job applicant's explanation or challenge is
 89      unsatisfactory to the medical review officer, the medical review
 90      officer shall report a positive test result back to the
 91      employer; and that a person may contest the drug test result
 92      pursuant to law or to rules adopted by the Agency for Health
 93      Care Administration.
 94                9.    A statement informing the employee or job applicant of
 95      his or her responsibility to notify the laboratory of any
 96      administrative or civil action brought pursuant to this section.
 97                10.   A list of all drugs for which the employer will test,
 98      described by brand naffie or conunon name, as applieable, as well
 99      as by chemical name.
100                11.    A statement regarding any applicable collective

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101      bargaining agreement or contract and the right to appeal to the
102      Public Employees Relations Commission or applicable court.
103                12.   A statement notifying employees and job applicants of
104      their right to consult with a medical review officer for
105      technical information regarding prescription or nonprescription
106      medication.
107                (4)    TYPES OF TESTING.-
108                (a}   An employer is required to conduct the following types
109      of drug tests:
110                1.    Job applicant drug testing.-An employer must require
111      job applicants to submit to a drug test and may use a refusal to
112      submit to a drug test or a positive confirmed drug test as a
113      basis for refusing to hire a job applicant.
114                2.    Reasonable-suspicion drug testing.-An employer must
115      require an employee to submit to reasonable-suspicion drug
116      testing.
117                3.    Routine fitness-for-duty drug testing.-An employer must
118      require an employee to submit to a drug test if the test is
119      conducted as part of a routinely scheduled employee fitness-for-
120      duty medical examination that is part of the employer's
121      established policy or that is scheduled routinely for all
122      members of an employment classification or group.
123                4.    Followup drug testing.-If the employee in the course of
124      employment enters an employee assistance program for drug-
125      related problems, or a drug rehabilitation program, the employer

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126      must require the employee to submit to a drug test as a followup
127      to such program, unless the employee voluntarily entered the
128      program. In those cases, the employer has the option to not
129      require followup testing. If followup testing is required, it
130      must be conducted at least six times in the first year, and may
131      be conducted twice for 1 additional year once a year for a 2
132      year period after completion of the program. Advance notice of a
133      followup testing date must not be given to the employee to be
134      tested.
135                (5)     PROCEDURES AND EMPLOYEE PROTECTION.-All specimen
136      collection and testing for drugs under this section shall be
137      performed in accordance with the following procedures:
138                (b)     Specimen collection must be documented, and the
139      documentation procedures shall include the+
140                ±-;-   labeling of specimen containers so as to reasonably
141      preclude the likelihood of erroneous identification of test
142      results. For saliva or breath alcohol testing, a specimen
143      container is not required if the specimen is not being
144      transported to a laboratory for analysis.
145                2.     A form for the employee or job applicant to provide any
146      information he or she considers relevant to the test, including
147      identification of currently or recently used prescription or
148      nonprescription medication or other relevant medical
149      information. The form must provide notice of the most coFRFRon
150      medications by brand name or coFRFRon name, as applicable, as well

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         HB 1297                                                                            2020




151      as by chemical name, ;1hich may alter or affect a drug test. The
152      providing of information shall not preclude the administration
153      of the drug test, but shall be taken into account in
154      interpreting any positive confirmed test result.
155                (c)    Specimen collection, storage, and transportation to a
156      laboratory the testing site shall be performed in a manner that
157      reasonably precludes contamination or adulteration of specimens.
158                (e)    A specimen for a drug test may be taken or collected
159      by any person who meets the qualification standards for urine or
160      oral fluid specimen collection as specified by the United States
161      Department of Health and Human Services or the United States
162      Department of Transportation. For alcohol testing, a person must
163      meet the United States Department of Transportation standards
164      for a screening test technician or a breath alcohol technician.
165      A hair specimen may be collected and packaged by a person who
166      has been trained and certified by a drug testing laboratory. A
167      person who directly supervises an employee subject to testing
168      may not serve as the specimen collector for that employee unless
169      there is no other qualified specimen collector available. of the
170      following persons:
171                1.    A physician, a physician assistant, a registered
172      professional nurse, a licensed practical nurse,                      or a nurse
173      practitioner or a certified paramedic Hho is present at the
174      scene of an accident for the purpose of rendering emergency
175      medical service or treatment.

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176                2.    A qualified person employed by a licensed or certified
177      laboratory as described in subsection (9).
178                (f)    A person who collects or takes a specimen for a drug
179      test shall collect an amount sufficient for two independent drug
180      tests, one to screen the specimen and one for confirmation of
181      the screening results, at a laboratory as determined by the
182      Agency for Health Care Administration.
183                (g)    Every specimen that produces a positive, confirmed
184      test result shall be preserved by the licensed or certified
185      laboratory that conducted the confirmation test for a period of
186      at least 1 year after the confirmation test was conducted~
187      days after the result of the test was mailed or otherwise
188      delivered to the medical review officer. However, if an employee
189      or job applicant undertakes an administrative or legal challenge
190      to the test result, the employee or job applicant shall notify
191      the laboratory and the sample shall be retained by the
192      laboratory until the case or administrative appeal is settled.
193      During the 60-day 180 day period after written notification of a
194      positive test result, the employee or job applicant who has
195      provided the specimen shall be permitted by the employer to have
196      a portion of the specimen retested, at the employee's or job
197      applicant's expense, at another laboratory, licensed and
198      approved by the Agency for Health Care Administration, chosen by
199      the employee or job applicant. The second laboratory must test
200      the specimen at the limit of detection for the drug or analyte

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         HB 1297                                                                 2020




201      confirmed by the original at equal or greater sensitivity for
202      the drug in question as the first laboratory. If the drug or
203      analyte is detected by the second laboratory, the result shall
204      be reported as reconfirmed positive. The first laboratory that
205      performed the test for the employer is responsible for the
206      transfer of the portion of the specimen to be retested, and for
207      the integrity of the chain of custody during such transfer.
208                (h)    Within 5 working days after receipt of a positive
209      verified confirmed test result from the medical review officer,
210      an employer shall inform an employee or job applicant in writing
211      of such positive test result, the consequences of such results,
212      and the options available to the employee or job applicant. The
213      employer shall provide to the employee or job applicant, upon
214      request, a copy of the test results.
215                ( j)   The employee's or job applicant's CJEplanation or
216      challenge of the positive test result is unsatisfactory to the
217      employer, a written e1rplanation as to why the employee's or job
218      applicant's euplanation is unsatisfactory, along with the report
219      of positive result, shall be provided by the employer to the
220      employee or job applicant; and All 5-U-efi documentation of a
221      positive test shall be kept confidential by the employer
222      pursuant to subsection (8) and shall be retained by the employer
223      for at least 1 year.
224                (k)    An employer may not discharge, discipline, refuse to
225      hire, discriminate against, or request or require rehabilitation

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226      of an employee or job applicant on the sole basis of a positive
227      test result that has not been reviewed and verified by a
228      confirmation test and by a medical review officer, except when a
229      confirmed positive breath alcohol test was conducted in
230      accordance with United States Department of Transportation
231      alcohol testing procedures.
232                (1)   An employer that performs drug testing or specimen
233      collection shall use chain-of-custody procedures established by
234      the Agency for Health Care Administration, the United States
235      Department of Health and Human Services, or the United States
236      Department of Transportation to ensure proper recordkeeping,
237      handling, labeling, and identification of all specimens tested.
238                (6)   CONFIRMATION TESTING.-
239                (a)   If an initial drug test io negative, the employer may
240      in its sole discretion seek a confirmation test.
241                (b)   Only licensed or certified laboratories ao described
242      in subsection (9) may conduct confirmation drug tests.
243                ~-+et-     All laboratory positive initial tests on a urine,
244      oral fluid, blood, or hair specimen shall be confirmed using gas
245      chromatography/mass spectrometry (GC/MS) or an equivalent or
246      more accurate scientifically accepted method approved by the
247      United States Department of Health and Human Services or the
248      United States Department of Transportation Agency for Health
249      Gare Administration or the United States Food and Drug
250      Administration ao ouch technology becomes available in a coot

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251      effective form.
252                JE.l-+El+   If~ an initial drug test of an employee or job
253      applicant is confirmed by the laboratory as positive, the
254      employer's medical review officer shall provide technical
255      assistance to the employer and to the employee or job applicant
256      for the purpose of interpreting the test result to determine
257      whether the result could have been caused by prescription or
258      nonprescription medication taken by the employee or job
259      applicant.
260                (c)    For a breath alcohol test, an initial positive result
261      shall be confirmed by a second breath specimen taken and tested
262      using an evidential breath testing device listed on the
263      conforming products list issued by the National Highway Traffic
264      Safety Administration and conducted in accordance with United
265      States Department of Transportation alcohol testing procedures
266      authorized under 49 C.F.R. part 40, subparts J through M.
267                (7)    EMPLOYER PROTECTION.-
268                (a)    An employee or job applicant whose drug test result is
269      confirmed or verified as positive in accordance with this
270      section shall not, by virtue of the result alone, be deemed to
271      have a "handicap" or "disability" as defined under federal,
272      state, or local handicap and disability discrimination laws.
273                (9)    DRUG-TESTING STANDARDS FOR LABORATORIES.-
274                (c)    A laboratory shall disclose to the medical review
275      officer a written positive confirmed test result report within 7

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276      working days after receipt of the sample. All laboratory reports
277      of a drug test result must, at a minimum, state:
278                1.   The name and address of the laboratory that performed
279      the test and the positive identification of the person tested.
280                2.   Positive results on confirmation tests only, or
281      negative results, as applicable.
282                3.   A list of the drugs for which the drug analyses were
283      conducted.
284                4.   The type of tests conducted for both initial tests and
285      confirmation tests and the minimum cutoff levels of the tests.
286                5.   Any correlation between medication reported by the
287      employee or job applicant pursuant to subparagraph ( 5) (b) 2. and
288      a positive confirmed drug test result.
289
290      A report must not disclose the presence or absence of any drug
291      other than a specific drug and its metabolites listed pursuant
292      to this section.
293                Section 2.       This act shall take effect July 1, 2020.




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          WORKFORCE DEVELOPMENT AND TOURISM SUBCOMMITTEE

                              HB 1297 by Rep. Robinson
                                Drug-free Workplaces

                               AMENDMENT SUMMARY
                                  February 4, 2020

Amendment 1 by Rep. Robinson (Strike-All):

The amendment makes the following changes to the bill:

   •   Adds provisions that require urine sample validity testing for employees
       participating in the State Drug-Free Workplace Program under chapter 112, F.S.,
       and the Drug-Free Workplace Program under chapter 440, F.S.
   •   Adds a statement of legislative intent regarding such urine sample validity
       testing.
   •   Removes a provision of the bill that increases the frequency of required follow-up
       drug testing for certain employees with a history of drug-related problems.
                                             COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                      Bill No. HB 1297   (2020)
       Amendment No. 1




               COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                           (Y/N)
       ADOPTED AS AMENDED                (Y/N)
       ADOPTED W/0 OBJECTION             (Y/N)
       FAILED TO ADOPT                   (Y/N)
       WITHDRAWN                         (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:      Workforce Development    &

 2     Tourism Subcommittee
 3     Representative Robinson offered the following:
 4
 5          Amendment (with title amendment)
 6             Remove everything after the enacting clause and insert:
 7     Section 1.      Present subsections (13) through (17) of section
 8     112.0455, Florida Statutes, are redesignated as subsections (14)
 9     through (18), respectively, a new subsection (13) is added to
10     that section, and paragraph (b) of subsection (6) and paragraph
11     (a) of present subsection (15) are amended, to read:
12             112.0455   Drug-Free Workplace Act.-
13             (6)   NOTICE TO EMPLOYEES.-
14             (b)   Prior to testing, all employees and job applicants for
15     employment shall be given a written policy statement from the
16     employer which contains:
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                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 1297    (2020)
       Amendment No. 1



17          1.     A general statement of the employer's policy on
18     employee drug use, which shall identify:
19          a.     The types of testing an employee or job applicant may
20     be required to submit to, including reasonable suspicion or
21     other basis; and
22          b.     The actions the employer may take against an employee
23     or job applicant on the basis of a positive confirmed drug test
24     result.
25          2.     A statement advising the employee or job applicant of
26     the existence of this section.
27          3.     A general statement concerning confidentiality.
28          4.     Procedures for employees and job applicants to
29     confidentially report the use of prescription or nonprescription
30     medications both befdre and after being tested. Additionally,
31     employees and job applicants shall receive notice of the most
32     common medications by brand name or common name, as applicable,
33     as well as by chemical name, which may alter or affect a drug
34     test. A list of such medications shall be developed by the
35     Agency for Health Care Administration.
36          5.     The consequences of refusing to submit to a drug test.
37          6.     Names, addresses, and telephone numbers of employee
38     assistance programs and local alcohol and drug rehabilitation
39     programs.
40          7.     A statement that an employee or job applicant who
41     receives a positive confirmed drug test result may contest or

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                                                    COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                               Bill No. HB 1297   (2020)
       Amendment No. 1



42     explain the result to the employer within 5 working days after
43     written notification of the positive test result. If an employee
44     or job applicant's explanation or challenge is unsatisfactory to
45     the employer, the person may contest the drug test result as
46     provided by subsections J.1....21 -f-3:-4+ and J..1..§1 -H:--§-t.
47           8.      A statement informing the employee or job applicant of
48     his or her responsibility to notify the laboratory of any
49     administrative or civil actions brought pursuant to this
50     section.
51           9.      A list of all drugs for which the employer will test,
52     described by brand names or common names, as applicable, as well
53     as by chemical names.
54           10.      A statement regarding any applicable collective
55     bargaining agreement or contract and the right to appeal to the
56     Public Employees Relations Commission.
57           11.      A statement notifying employees and job applicants of
58     their right to consult the testing laboratory for technical
59     information regarding prescription and nonprescription
60     medication.
61            (13)     DRUG-TESTING STANDARDS; SAMPLE VALIDITY
62     PRESCREENING.-Before a drug-testing facility licensed under part
63     II of chapter 408 may perform any drug-screening test on a urine
64     specimen collected in this state, prescreening tests must be
65     performed to determine the validity of the specimen. The
66     prescreening tests must be capable of detecting, or detecting
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                                                   Bill No. HB 1297    (2020)
       Amendment No. 1



67     and defeating, novel or emerging urine drug-testing subversion
68     technologies as described in this subsection.
69          (a)     The drug-testing facility shall use urine sample
70     validity screening tests that meet all of the following
71     criteria:
72          1.     A urine sample validity screening test for creatinine
73     must use a 20 mg/dL cutoff concentration and must have minimal
74     interferences from bilirubin and blood in the urine. The urine
75     sample validity screening test must be able to discriminate
76     between a creatinine level from an unadulterated urine sample
77     and a creatinine level arising from overhydration or creatine or
78     protein loading.
79          2.     A urine sample validity screening test for oxidants
80     must be able to detect the presence or effects of oxidant
81     adulterants up to 6 days after sample collection, under the
82     sample storage conditions outlined in the laboratory standards
83     guideline adopted by rule by the Agency for Health Care
84     Administration, and after any sample transport that is routinely
85     involved.
86          3.     Urine sample validity screening tests must be able to
87     detect synthetic or freeze-dried urine substituted for the
88     donor's urine for drug testing.
89          4.     Urine sample validity screening tests must be validated
90     for the detection of all of the additional adulterant classes
91     represented by glutaraldehyde, salt, heavy metals, cationic

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                                                         Bill No. HB 1297   (2020)
        Amendment No. 1



 92     detergents, protease, strong alkaline buffers, and strong acidic
 93     buffers. The detection limits of these classes must be at a
 94     sufficient level to detect a nonphysiologic sample or
 95     interference with enzyme immunoassay drug screening tests.
 96          (b)     The drug-testing facility may use only urine sample
 97     validity screening tests that have undergone validation studies
 98     conducted by the manufacturer to document the product's
 99     conformance to the requirements of this subsection.
100          (c)     A drug-testing facility may rely on urine sample
101     validity screening tests to determine if confirmation testing is
102     required for any urine sample that has been deemed invalid for
103     drug screening.
104          (d)     Urine specimens collected in this state may not be
105     sent for drug screening tests to a drug-testing facility located
106     outside of this state unless such drug-testing facility complies
107     with all requirements of this subsection.
108          (e)     The Agency for Health Care Administration shall adopt
109     rules necessary for the implementation and enforcement of this
110     subsection.
111          11:_§l-f-±-§-t   NONDISCIPLINE REMEDIES.-
112          (a)     Any person alleging a violation of the provisions of
113     this section, that is not remediable by the commission or an
114     arbitrator pursuant to subsection J12l +±4+, must institute a
115     civil action for injunctive relief or damages, or both, in a
116     court of competent jurisdiction within 180 days of the alleged
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117     violation, or be barred from obtaining the following relief.
118     Relief is limited to:
119             1.     An order restraining the continued violation of this
120     section.
121             2.     An award of the costs of litigation, expert witness
122     fees,    reasonable attorney attorney's fees, and noneconomic
123     damages provided that damages shall be limited to the recovery
124     of damages directly resulting from injury or loss caused by each
125     violation of this section.
126             Section 2.     Present subsections (9) through (15) of section
127     440.102, Florida Statutes, are redesignated as subsections (10)
128     through (16), respectively, a new subsection (9) is added to
129     that section, and paragraphs (c),       (e), and (q) of subsection
130     (1), paragraph (a) of subsection (3), paragraphs (b) through
131     (h),    (j),    (k), and (1) of subsection (5), subsection (6),
132     paragraph (a) of subsection (7), and paragraphs (b) and (c) of
133     present subsection (9) of that section are amended, to read:
134             440.102     Drug-free workplace program requirements.-The
135     following provisions apply to a drug-free workplace program
136     implemented pursuant to law or to rules adopted by the Agency
137     for Health Care Administration:
138             (1)     DEFINITIONS.-Except where the context otherwise
139     requires, as used in this act:
140             (c)     "Drug" means any form of alcohol, as defined in s.
141     322.01(2), including a distilled spirit, wine, a malt beverage,
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                                                          Bill No. HB 1297    (2020)
         Amendment No. 1



142      or an intoxicating preparation; any controlled substance
143      identified under Schedule I, Schedule II, Schedule III, Schedule
144      IV, or Schedule V of s. 893.03; any controlled substance
145      identified under Schedule I, Schedule II, Schedule III, Schedule
14 6     IV, or Schedule V of the Controlled Substances Act, 21 U.S.C. s.
147      812(c) liquor; an amphetamine; a cannabinoid; cocaine;
148      phencyclidine (PCP); a hallucinogen; methaqualone; an opiate; a
149      barbiturate; a benzodiazepine; a synthetic narcotic; a designer
150      €i-r--tttJ; or a metabolite of any of the substances listed in this
151      paragraph. An employer may test an individual for any or all e-.f.
152      such drugs.
153           ( e)   11
                          Drug test II or "test II means any chemical, biological,
154      or physical instrumental analysis administered7 by a laboratory
155      certified by the United States Department of Health and Human
156      Services or licensed by the Agency for Health Care
157      Administration7       for the purpose of determining the presence or
158      absence of a drug or its metabolites. In the case of testing for
159      the presence of alcohol, the test must be conducted in
160      accordance with the United States Department of Transportation
161      alcohol testing procedures authorized under 49 C.F.R. part 40,
162      subparts J through M.
163           ( q)   11
                          Specimen II means tissue, hair, or a product of the
164      human body capable of revealing the presence of drugs or their
165      metabolites, as approved by the United States Food and Drug
166      AdministrationL e-r the Agency for Health Care AdministrationL

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167      the United States Department of Health and Human Services, or
168      the United States Department of Transportation.
169           (3)    NOTICE TO EMPLOYEES AND JOB APPLICANTS.-
170           (a)    One time only, before prior to testing, an employer
171      shall give all employees and job applicants for employment a
172      written policy statement that which contains:
173           1.    A general statement of the employer's policy on
174      employee drug use, which must identify:
175           a.    The types of drug testing an employee or job applicant
17 6     may be required to submit to, including reasonable-suspicion
177      drug testing or drug testing conducted on any other basis.
178           b.    The actions the employer may take against an employee
179      or job applicant on the basis of a positive confirmed drug test
180      result.
181           2.    A statement advising the employee or job applicant of
182      the existence of this section.
183           3.    A general statement concerning confidentiality.
184           4.    Procedures for employees and job applicants to
185      confidentially report to a medical review officer the use of
186      prescription or nonprescription medications to a medical review
187      officer both before and after being tested.
188           5.    A list of the most common medications, by brand name or
189      common name, as applicable, as well as by chemical name, which
190      may alter or affect a drug test. A list of such medications as


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                                                   Bill No. HB 1297     (2020)
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191     developed by the Agency for Health Care Administration shall be
192     available to employers through the department.
193          6.    The consequences of refusing to submit to a drug test.
194          7.    A representative sampling of names, addresses, and
195     telephone numbers of employee assistance programs and local drug
196     rehabilitation programs.
197          8.    A statement that an employee or job applicant who
198     receives a positive confirmed test result may contest or explain
199     the result to the medical review officer within 5 working days
200     after receiving written notification of the test result; that if
201     an employee's or job applicant's explanation or challenge is
202     unsatisfactory to the medical review officer, the medical review
203     officer shall report a positive test result back to the
204     employer; and that a person may contest the drug test result
205     pursuant to law or to rules adopted by the Agency for Health
206     Care Administration.
207          9.    A statement informing the employee or job applicant of
208     his or her responsibility to notify the laboratory of any
209     administrative or civil action brought pursuant to this section.
210          10.    A list of all drugs for which the employer will test,
211     described by brand name or common name, as applicable, as well
212     as by chemical name.
213          11.   A statement regarding any applicable collective
214     bargaining agreement or contract and the right to appeal to the
215     Public Employees Relations Commission or applicable court.
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216          12.      A statement notifying employees and job applicants of
217     their right to consult with a medical review officer for
218     technical information regarding prescription or nonprescription
219     medication.
220           (5)      PROCEDURES AND EMPLOYEE PROTECTION.-All specimen
221     collection and testing for drugs under this section shall be
222     performed in accordance with the following procedures:
223           (b)      Specimen collection must be documented, and the
224     documentation procedures shall include the7
225          -±-;--   labeling of specimen containers so as to reasonably
226     preclude the likelihood of erroneous identification of test
227     results. For saliva or breath alcohol testing, a specimen
228     container is not required if the specimen is not being
229     transported to a laboratory for analysis
230          2.       A form for the employee or job applicant to provide any
231     information he or she considers relevant to the test, including
232     identification of currently or recently used prescription or
233     nonprescription medication or other relevant medical
234     information. The form must provide notice of the most coffiffion
235     medications by brand name or common name, as applicable, as well
236     as by chemical name, which may alter or affect a drug test. The
237     providing of information shall not preclude the administration
238     of the drug test, but shall be taken into account in
239     interpreting any positive confirmed test result.


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                                                      Bill No. HB 1297   (2020)
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240           (c)    Specimen collection, storage, and transportation to a
241     laboratory the testing site shall be performed in a manner that
242     reasonably precludes contamination or adulteration of specimens.
243           (d)    Each confirmation test conducted under this section,
244     not including the taking or collecting of a specimen to be
245     tested, shall be conducted by a licensed or certified laboratory
246     as described in subsection J..l.Ql -f-9-t.
247           (e}    A specimen for a drug test may be taken or collected
248     by any person who meets the qualification standards for urine or
249     oral fluid specimen collection as specified by the United States
250     Department of Health and Human Services or the United States
251     Department of Transportation. For alcohol testing, a person must
252     meet the United States Department of Transportation standards
253     for a screening test technician or a breath alcohol technician.
254     A hair specimen may be collected and packaged by a person who
255     has been trained and certified by a drug-testing laboratory. A
256     person who directly supervises an employee subject to testing
257     may not serve as the specimen collector for that employee unless
258     there is no other qualified specimen collector available of the
259     following persons:
260          1.     A physician, a physician assistant, a registered
261     professional nurse, a licensed practical nurse, or a nurse
262     practitioner or a certified paramedic who is present at the
263     scene of an accident for the purpose of rendering emergency
264     medical service or treatment.
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                                                    Bill No. HB 12 97   ( 2 02 0)
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265          2.    A qualified person employed by a licensed or certified
266     laboratory as described in subsection (9).
267          (f)   A person who collects or takes a specimen for a drug
268     test shall collect an amount sufficient for two independent drug
269     tests, one to screen the specimen and one for confirmation of
270     the screening test results, at a laboratory as determined by the
271     Agency for Health Care Administration.
272          (g)    Every specimen that produces a positive, confirmed
273     test result shall be preserved by the licensed or certified
274     laboratory that conducted the confirmation test for a period of
275     at least 1 year after the confirmation test was conducted ±-±-8-
276     days after the result of the test was mailed or otherwise
277     delivered to the medical review officer. However, if an employee
278     or job applicant undertakes an administrative or legal challenge
279     to the test result, the employee or job applicant shall notify
280     the laboratory and the sample shall be retained by the
281     laboratory until the case or administrative appeal is settled.
282     During the 60-day 180 day period after written notification of a
283     positive test result, the employee or job applicant who has
284     provided the specimen shall be permitted by the employer to have
285     a portion of the specimen retested, at the employee's or job
286     applicant's expense, at another laboratory, licensed and
287     approved by the Agency for Health Care Administration, chosen by
288     the employee or job applicant. The second laboratory must test
289     the specimen at the limit of detection for the drug or analyte
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                                                   Bill No. HB 1297     (2020)
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290     confirmed by the original at equal or greater sensitivity for
291     the drug in question as the first laboratory. If the drug or
292     analyte is detected by the second laboratory, the result must be
293     reported as reconfirmed positive. The first laboratory that
294     performed the test for the employer is responsible for the
295     transfer of the portion of the specimen to be retested, and for
296     the integrity of the chain of custody during such transfer.
297          (h)   Within 5 working days after receipt of a positive
298     verified confirmed test result from the medical review officer,
299     an employer shall inform an employee or job applicant in writing
300     of such positive test result, the consequences of such result
301     results, and the options available to the employee or job
302     applicant. The employer shall provide to the employee or job
303     applicant, upon request, a copy of the test results.
304          (j)   The employee's or job applicant's explanation or
305     challenge of the positive test result is unsatisfactory to the
306     employer, a written explanation as to why the employee's or job
307     applicant's explanation is unsatisfactory, along with the report
308     of positive result, shall be provided by the employer to the
309     employee or job applicant; and All -3-Uefr documentation of a
310     positive test shall be kept confidential by the employer
311     pursuant to subsection (8) and shall be retained by the employer
312     for at least 1 year.
313          (k)   An employer may not discharge, discipline, refuse to
314     hire, discriminate against, or request or require rehabilitation
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315     of an employee or job applicant on the sole basis of a positive
316     test result that has not been reviewed and verified by a
317     confirmation test and by a medical review officer, except when a
318     confirmed positive breath alcohol test was conducted in
319     accordance with United States Department of Transportation
320     alcohol testing procedures.
321          (1)   An employer that performs drug testing or specimen
322     collection shall use chain-of-custody procedures established by
323     the Agency for Health Care Administration, the United States
324     Department of Health and Human Services, or the United States
325     Department of Transportation to ensure proper recordkeeping,
326     handling, labeling, and identification of all specimens tested.
327          (6)   CONFIRMATION TESTING.-
328          (a)   If an initial drug test is negative, the employer may
329     in its sole discretion seek a confirmation test.
330          (b)   Only licensed or certified laboratories as described
331     in subsection (9) may conduct confirmation drug tests.
332          +et   All laboratory positive initial tests on a urine, oral
333     fluid, blood, or hair specimen shall be confirmed using gas
334     chromatography/mass spectrometry (GC/MS) or an equivalent or
335     more accurate scientifically accepted method approved by the
336     United States Department of Health and Human Services or the
337     United States Department of Transportation Agency for Health
338     Care Administration or the United States Food and Drug


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339     Adffliniotration ao ouch technology becoffleo available in a coot
340     effective forffl.
341          J.Ql_-ta+   If~ an initial drug test of an employee or job
342     applicant is confirmed by the laboratory as positive, the
343     employer's medical review officer shall provide technical
344     assistance to the employer and to the employee or job applicant
345     for the purpose of interpreting the test result to determine
346     whether the result could have been caused by prescription or
347     nonprescription medication taken by the employee or job
348     applicant.
349           (c)    For a breath alcohol test, an initial positive result
350     must be confirmed by a second breath specimen taken and tested
351     using an evidential breath testing device listed on the
352     conforming products list issued by the National Highway Traffic
353     Safety Administration and conducted in accordance with United
354     States Department of Transportation alcohol testing procedures
355     authorized under 49 C.F.R. part 40, subparts J through M.
356           (7)    EMPLOYER PROTECTION.-
357           (a)    An employee or job applicant whose drug test result is
358     confirmed or verified as positive in accordance with this
359     section shall not, by virtue of the result alone, be deemed to
360     have a "handicap" or "disability" as defined under federal,
361     state, or local handicap and disability discrimination laws.
362           (9)    DRUG-TESTING STANDARDS; SAMPLE VALIDITY PRESCREENING.-
363     Before a drug-testing facility licensed under part II of chapter
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                                                     Bill No. HB 1297   (2020)
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364     408 may perform any drug screening test on a urine specimen
365     collected in this state, prescreening tests must be performed to
366     determine the validity of the specimen. The prescreening tests
367     must be capable of detecting, or detecting and defeating, novel
368     or emerging urine drug-testing subversion technologies as
369     described in this subsection.
370          (a)     The drug-testing facility shall use urine sample
371     validity screening tests that meet all of the following
372     criteria:
373          1.     A urine sample validity screening test for creatinine
374     must use a 20 mg/dL cutoff concentration and must have minimal
375     interferences from bilirubin and blood in the urine. The urine
376     sample validity screening test must be able to discriminate
377     between a creatinine level from an unadulterated urine sample
378     and a creatinine level arising from overhydration or creatine or
379     protein loading.
380          2.     A urine sample validity screening test for oxidants
381     must be able to detect the presence or effects of oxidant
382     adulterants up to 6 days after sample collection, under the
383     sample storage conditions outlined in the laboratory standards
384     guideline adopted by rule by the Agency for Health Care
385     Administration, and after any sample transport that is routinely
386     involved.




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387          3.    Urine sample validity screening tests must be able to
388     detect synthetic or freeze-dried urine substituted for the
389     donor's urine for drug testing.
390          4.    Urine sample validity screening tests must be validated
391     for the detection of all of the additional adulterant classes
392     represented by glutaraldehyde, salt, heavy metals, cationic
393     detergents, protease, strong alkaline buffers, and strong acidic
394     buffers. The detection limits of these classes must be at a
395     sufficient level to detect a nonphysiologic sample or
396     interference with enzyme immunoassay drug-screening tests.
397          (b)    The drug-testing facility may use only urine sample
398     validity screening tests that have undergone validation studies
399     conducted by the manufacturer to document the product's
400     conformance to the requirements of this subsection.
401          (c)   A drug-testing facility may rely on urine sample
402     validity screening tests to determine if confirmation testing is
403     required for any urine sample that has been deemed invalid for
404     drug screening.
405          (d)    Urine specimens collected in this state may not be
406     sent for drug-screening tests to a drug-testing facility located
407     outside of this state unless such drug-testing facility complies
408     with all requirements of this subsection.
409          (e)   The Agency for Health Care Administration shall adopt
410     rules necessary for the implementation and enforcement of this
411     subsection.
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                                                           Bill No. HB 1297   (2020)
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412          J.1..Ql_-f-9-t-   DRUG-TESTING STANDARDS FOR LABORATORIES.-
413          (b)       A laboratory may analyze initial or confirmation test
414     specimens only if:
415          1.      The laboratory obtains a license under part II of
416     chapter 408 ands. 112.0455(18) s. 112.0455(17). Each applicant
417     for licensure and each licensee must comply with all
418     requirements of this section, part II of chapter 408, and
419     applicable rules.
420          2.      The laboratory has written procedures to ensure the
421     chain of custody.
422          3.      The laboratory follows proper quality control
423     procedures, including, but not limited to:
424          a.      The use of internal quality controls, including the use
425     of samples of known concentrations which are used to check the
426     performance and calibration of testing equipment, and periodic
427     use of blind samples for overall accuracy.
428          b.      An internal review and certification process for drug
429     test results, conducted by a person qualified to perform that
430     function in the testing laboratory.
431          c.      Security measures implemented by the testing laboratory
432     to preclude adulteration of specimens and drug test results.
433          d.      Other necessary and proper actions taken to ensure
434     reliable and accurate drug test results.
435           (c)      A laboratory shall disclose to the medical review
436     officer a written positive confirmed test result report within 7
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                                                      Bill No. HB 1297    (2020)
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437      working days after receipt of the sample. All laboratory reports
438      of a drug test result must, at a minimum, state:
439           1.     The name and address of the laboratory that performed
440      the test and the positive identification of the person tested.
441           2.     Positive results on confirmation tests only, or
442      negative results, as applicable.
443           3.     A list of the drugs for which the drug analyses were
444      conducted.
445           4.     The type of tests conducted for both initial tests and
446      confirmation tests and the minimum cutoff levels of the tests.
447           5.     Any correlation between medication reported by the
448      employee or job applicant pursuant to subparagraph ( 5) (b) 2. and
449      a positive confirmed drug test result.
450
451      A report must not disclose the presence or absence of any drug
452      other than a specific drug and its metabolites listed pursuant
453      to this section.
454           Section 3.     Paragraph (b) of subsection (11) of section
455      443.101, Florida Statutes, is amended to read:
456           443.101     Disqualification for benefits.-An individual shall
457      be disqualified for benefits:
458           (11)     If an individual is discharged from employment for
459      drug use as evidenced by a positive, confirmed drug test as
4 60     provided in paragraph (1) (d), or is rejected for offered
461      employment because of a positive, confirmed drug test as

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462      provided in paragraph (2) (c), test results and chain of custody
463      documentation provided to the employer by a licensed and
4 64     approved drug-testing laboratory is self-authenticating and
465      admissible in reemployment assistance hearings, and such
466      evidence creates a rebuttable presumption that the individual
4 67     used, or was using, controlled substances, subject to the
4 68     following conditions:
469           (b)   Only laboratories licensed and approved as provided in
470      s. 440.102(10) o. 440.102(9), or as provided by equivalent or
471      more stringent licensing requirements established by federal law
472      or regulation may perform the drug tests.
473           Section 4.   This act shall take effect July 1, 2020.
474
475
476                         T I T L E   A ME N D ME N T
477           Remove everything before the enacting clause and insert:
478                                 A bill to be entitled
479           An act relating to drug-free workplaces; amending s.
480           112.0455, F.S.; requiring licensed drug-testing
481           facilities to perform prescreening tests on urine
482           specimens to determine the specimens' validity;
483           specifying requirements for such tests; authorizing
484           such facilities to rely on such tests to determine if
485           confirmation testing is required; providing that urine
486           specimens may not be sent to an out-of-state facility
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487           unless the facility complies with certain
488           requirements; authorizing the Agency for Health Care
489           Administration to adopt rules; conforming cross-
490           references; amending s. 440.102, F.S.; revising
491           definitions; revising information required in a
4 92          written policy statement provided to employees and job
493           applicants before drug testing; revising procedures
4 94          for specimen collection, testing, and preservation;
495           revising qualifications for persons who may take or
496           collect specimens for a drug test; revising
4 97          requirements and procedures for retesting specimens;
4 98          deleting and revising confidentiality requirements for
499           employers relating to certain information; revising
500           circumstances under which an employer may take certain
501           actions as to an employee or a job applicant on the
502           sole basis of certain positive test results; revising
503           standards for chain-of-custody procedures; revising
504           requirements and authorized actions relating to
505           confirmation testing; requiring licensed drug-testing
506           facilities to perform prescreening tests on urine
507           specimens to determine the specimens' validity;
508           specifying requirements for such tests; authorizing
509           such facilities to rely on such tests to determine if
510           confirmation testing is required; providing that urine
511           specimens may not be sent to an out-of-state facility
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512           unless the facility complies with certain
513           requirements; authorizing the agency to adopt rules;
514           conforming provisions to changes made by the act;
515           amending s. 443.101, F.S.; conforming a cross-
516           reference; providing an effective date.
517
518           WHEREAS, the State of Florida has a profound interest in
519     the health and welfare of its citizens, and
520           WHEREAS, new and emerging drug-testing subversion
521     technologies represent a significant threat to the ability to
522     properly identify those suffering from addiction and drug abuse,
523     and
524           WHEREAS, the Legislature, therefore, seeks to require urine
525     sample validity testing, such that those persons being tested
526     can be properly and promptly identified for referral to drug
527     treatment programs and other health care services, NOW,
528     THEREFORE,
529




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PCS for HB 1271
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     PCS for HB 1271   State Economic Development Entities
SPONSOR(S): Workforce Development & Tourism Subcommittee
TIED BILLS:       IDEN./SIM. BILLS:

  REFERENCE                                                       ACTION                    ANALYST               STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  Orig. Comm.: Workforce Development & Tourism                                              Willson   f\\/        Barry   ~
     Subcommittee


                                                        SUMMARY ANALYSIS
CareerSource is a not-for-profit corporation that serves as Florida's state-level workforce investment board.
CareerSource is responsible for developing and implementing a 5-year plan for the statewide workforce
system in collaboration with the Department of Economic Opportunity (DEO), the local workforce development
boards, and one-stop career centers to ensure that workforce services provided are consistent with state and
local plans. CareerSource also provides state-level policy, planning, performance evaluation, and oversight of
the delivery of workforce services. Current law specifies that CareerSource is administratively housed within
DEO but that it is not subject to control, supervision, or direction by DEO in any manner.

The bill replaces CareerSource with a "state board" for the purpose of workforce development and
administration in Florida. The bill provides for the state board to serve as the board of directors for
CareerSource, and requires CareerSource to support and work at the direction of the state board, in
consultation with DEO. The bill repeals the provision stating that CareerSource is not subject to the control,
supervision, or direction of DEO, and specifies that CareerSource must operate under agreement with DEO.
The bill reassigns many of CareerSource's powers, duties and responsibilities to DEO or the state board, or a
combination of the two. The bill also makes a number of conforming changes to reflect this adjustment in the
relationship between DEO, CareerSource Florida, and the state board.

The Florida Development Finance Corporation (FDFC) is a statewide development financing authority created
by the Legislature in 1993. The FDFC operates as a conduit bond issuer that issues bonds on behalf of
borrowers. FDFC is governed by a five-member board of directors who are appointed by the Governor and
confirmed by the Senate for four-year terms.

The bill requires DEO to establish annual performance standards and develop a detailed report of the
performance of FDFC each year, which will be included in DEO's annual report to the Governor, President and
Speaker.

The bill increases the membership of the FDFC board from five to seven, adding the executive director of DEO
(to serve as chair of the board) and the director of the Division of Bond Finance.

The bill provides thats. 288.9604, F.S., the statute creating and authorizing the FDFC, stands repealed
October 1, 2022, and every fourth year thereafter, unless reviewed and saved from repeal by the Legislature.

The bill does not appear to have a fiscal impact on state or local governments.

The bill provides an effective date of July 1, 2020.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: pcs1271.WTS.D0CX
DATE: 1/31/2020
                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Florida's Workforce Development System

        The federal Workforce Investment Act of 1998 0,NIA) was passed by Congress in an effort to improve
        the quality of the nation's workforce through implementation of a comprehensive workforce investment
        system. 1 WIA required each state to establish an investment board at the state level and to also
        establish workforce investment boards to represent local service areas. 2 WIA also called for the
        delivery of workforce development services through a system of "one-stop" centers in local
        communities. 3 Some key principles of WIA were to better integrate workforce services, empower
        individuals, provide universal access to participants, increase accountability, and improve youth
        programs. 4

        In response to WIA, Florida established a workforce development system under the Workforce
        Investment Act of 2000. 5 The act aimed to better connect the state's economic development strategies
        with its workforce development system and to implement the principles of the federal WIA. 6

        Federal Workforce Innovation and Opportunity Act of 2014

        In 2014, Congress passed the Workforce Innovation and Opportunity Act (WIOA), which superseded
        the Workforce Investment Act of 1998. 7 WIOA requires each state to develop a single, unified plan for
        aligning workforce services through the identification and evaluation of core workforce programs. 8 In
        general, WIOA maintains the one-stop framework of WIA, and encompasses provisions aimed at
        streamlining services, easing reporting requirements, and reducing administrative barriers. 9 WIOA
        officially became effective on July 1, 2015, the first full program year after enactment.

        Core Programs

        WIOA identifies four core programs that must coordinate and complement each other in a manner that
        ensures job seekers have access to needed resources. 10 The core programs are:
           • Adult, Dislocated Worker and Youth Programs;
           • Employment Services under the Wagner-Peyser Employment Act;
           • Vocational Rehabilitation Services; and
           • Adult Education and Literacy Activities.

        Performance Measures




1
  Workforce Investment Act of 1998, 29 U.S.C. § 2801 (1998), repealed by Workforce Innovation and Opportunity Act, Pub. L. No.
113-128, H.R. 803, 113th Cong. (July 22, 2014)(codified at 29 U.S.C. § 3101, et seq.).
2
  See 29 U .S.C. § 2821 and 29 U .S.C. § 2832 ( 1998).
3
  See 29 U.S.C. § 2841 (1998).
4
  See 29 U.S.C. § 2811 (1998).
5
  Ch. 2000-165, Laws ofFla.
6
  Sees. 445.003, F.S.
7
  Workforce Innovation and Opportunity Act, 29 U.S.C. § 3101 et seq. (2014).
8
  See 29 U.S.C. § 3 l 12(a).
9
  See 29 U.S.C. § 3111.
10
   See 29 U.S.C. § 3102(13).
STORAGE NAME: pcs1271.WTS.DOCX                                                                                          PAGE: 2
DATE: 1/31/2020
        In an effort to promote transparency and accountability, WIOA created a single set of common
        measures for the evaluation of core programs. 11 WIOA requires performance reports to be provided at
        the state, local, and trainer provider levels. The performance measures that now apply across all core
        programs are:
            • The percentage of participants in unsubsidized employment during second quarter after exit;
            • The percentage of participants in unsubsidized employment during fourth quarter after exit;
            • The median earnings of participants during second quarter after exit;
            • The percentage of participants who obtain a postsecondary credential or secondary school
                diploma within 1 year after exit;
            • The achievement of measureable skill gains toward credentials or employment; and
            • The effectiveness in serving employers.

        State Workforce Development Plan

        Using the common performance measures for core programs, WIOA requires each state to develop
        and submit a unified state plan based on a 4-year strategy for workforce development. 12 The state plan
        must describe an overall strategy for the core programs and how the strategy will meet needs for
        workers, job seekers, and employers. 13 WIOA also provides an option for states to submit a combined
        plan that outlines plans for the core programs along with additional workforce programs. 14

        Regional Planning and Local Workforce Development Boards

        WIOA requires states to identify regional planning areas for workforce development strategies. 15 Within
        each area, a local workforce development board must be established. 16 Each local workforce
        development board is required to coordinate planning and service delivery strategies within their area. 17
        Formulated strategies are then used by the local workforce development board to develop and submit a
        local plan for the delivery of workforce services. 18

        One-Stop Delivery System

        WIOA aims to strengthen the one-stop delivery system by requiring each local area to have at least one
        comprehensive one-stop delivery provider. 19 A comprehensive one-stop delivery provider supplies
        physical access to services provided by core partners, as well as other mandatory partners. 20 WIOA
        mandates that each partner shares in the funding of services and infrastructure costs of the one-stop
        delivery system. 21

        Florida's Implementation of WIOA

        In 2016, Florida made changes to the workforce development system to conform to the new federal
        guidelines established by WIOA. 22 Under the current workforce development system, DEO,


11
   See 29 U.S.C. § 3141.
12
   See 29 U.S.C. § 3 l 12(a).
13
   See 29 U.S.C. § 3 l 12(b).
14
   See 29 U.S.C. § 3113.
15
   See 29 U.S.C. § 3121.
16 Id.
17
   See 29 U.S.C. § 3122.
18
   See 29 U.S.C. § 3123.
19
   See 29 U.S.C. § 3151.
20
   Other mandatory partners may include programs under the Older Americans Act, Department of Housing and Urban Development,
Social Security Act, Perkins Career and Technical Education Act, the Community Service Block Grant Act, and certain adult
education and literacy activities. 29 U.S.C. § 3151 (b).
21
   See 29 U.S.C. § 3151(2).
22
   Ch. 2016-216, Laws ofFla.
STORAGE NAME: pcs1271.WTS.D0CX                                                                                        PAGE: 3
DATE: 1/31/2020
        CareerSource, and 24 local workforce development boards act as partners in administering Florida's
        comprehensive system for the delivery of workforce strategies, services, and programs.

        Department of Economic Opportunity (DEO)

        DEO serves as Florida's lead workforce agency. 23 DEO is responsible for the fiscal and administrative
        affairs of the workforce development system. 24 DEO receives and distributes federal funds for
        employment-related programs to the local workforce development boards. 25 Additionally, under the
        direction of CareerSource, DEO must annually meet with each local workforce development board to
        review the board's performance and to certify that the board is in compliance with applicable state and
        federal law. 26

         CareerSource Florida, Inc. (CareerSource)

        CareerSource Florida, Inc., a not-for-profit corporation, serves as Florida's state-level workforce
        development board. 27 CareerSource is responsible for the development of a 4-year plan that is
        consistent with the requirements of WIOA2 8 and collaborates with DEO, the local workforce
        development boards, and one-stop service providers to ensure workforce services are consistent with
        state and local plans. 29 CareerSource also provides state-level policy direction, planning, and
        performance evaluation of the delivery of workforce services. 30

         Local Workforce Development Boards

        Twenty-four local workforce development boards deliver Florida's workforce development services
        through over 100 one-stop service providers. 31 The one-stop service providers give Floridians access
        to available workforce services, including job placement, career counseling, and skills training. 32
        Collectively, the local workforce development boards operate under a charter approved by
        CareerSource. 33 Each local workforce development board formulates a local budget and oversees the
        one-stop delivery system within its local area. 34

         Review of CareerSource Tampa Bay and CareerSource Pinellas

        In response to a series of articles by the Tampa Bay Times, 35 reporting on questionable practices,
        violations and malfeasance by CareerSource Tampa Bay and CareerSource Pinellas, the US
        Department of Labor conducted a review of the two local workforce development boards. The review
        found "fake" job placements, falsified records, and a number of other violations of WIA and WIOA,
        resulting in over $17 million in questionable costs. 36



23
   Primarily through the Division of Workforce Services. Sees. 20.60, F.S.
24
   S. 445.009(3)(c), F.S.
25
   Sees. 445.003, F.S.
26
   Sees. 445.007(3), F.S.
27
   S. 445.004(5)(a), F.S. Prior to 2014, CareerSource was known as Workforce Florida, Inc.
28
   S. 445.003(2), F.S.
29
   Sees. 445.004, F.S.
30 Id.
31
   DEO, CareerSource Florida Network Directory, http://lcd.floridajobs.org/ (last visited Jan. 17, 2020).
32
   Sees. 445.009, F.S.
33
   Sees. 445.004, F.S.
34
   S. 445.007(12), F.S.
35 Puente and Sampson, CareerSource: Read the entire investigation, TAMPA BAY TIMES (Dec. 21, 2018),
https://www.tampabay.com/investigations/2018/12/20/careersource-read-the-entire-investigation/ (last visited Jan. 22, 2020).
36
   U.S. Dept. of Labor, Compliance Review of CareerSource Tampa Bay and CareerSource Pinellas (May 15, 2019),
http://floridajobs.org/docs/ default-source/lwdb-resources/program-monitoring-and-reports/20 19-usdol-compliance-review-and-deo-
response/final-florida-comp liance-review---cstb-csp-workforce-areas---16-may-2019 .pdf?sfvrsn=2 (last visited Jan. 22, 2020)
STORAGE NAME: pcs1271.WTS.D0CX                                                                                             PAGE: 4
DATE: 1/31/2020
         In summary, the US Department of Labor reported that "The improper administration of Federal
         employment and training funds by the two local workforce boards lead to blatant non-compliance with
         WIOA requirements. This was further compounded by the lack of fiduciary oversight which fostered an
         environment vulnerable to mismanagement, waste, fraud, and abuse to occur undetected." 37 The
         report detailed 17 findings of non-compliance and 3 areas of concern.

         Florida Development Finance Corporation

         The Florida Development Finance Corporation (FDFC) is a statewide development financing authority
         created by the Legislature in 1993. 38 The original purpose of the FDFC was to foster the growth of
         manufacturing and other strong job-creating businesses in Florida by brokering private-activity bond
         financing through inter-local agreements with counties, municipalities, and other local political
         subdivisions. 39

         The FDFC is governed by a five-member board of directors who are appointed by the Governor and
         confirmed by the Senate for four-year terms. 40 At least three of the FDFC's directors must be bankers
         selected from a list of candidates nominated by the Enterprise Florida, Inc. (EFI), and one must be an
         economic development specialist. 41 The directors are vested with the FDFC's powers, and may take
         action on behalf of the corporation by a vote of a majority of the directors present at a meeting, unless
         otherwise required by the FDFC's bylaws. 42 The directors do not receive compensation for their
         service, but are entitled to necessary expenses, including travel expenses. 43 Lastly, the board is
         empowered to employ a staff to facilitate the FDFC's functions. 44

         The FDFC must provide an annual report to the Governor, the Legislature, the Auditor General, and the
         governing body of each public entity with which it has an interlocal agreement, which details:
            • The FDFC's activities, operations, and accomplishments, including the specific number of
                businesses that the FDFC assisted;
            • The FDFC's assets, liabilities, income, and operating expenses, including a description of all
                outstanding revenue bonds; and
            • Any findings made by the Auditor General in an audit conducted pursuant to s. 11.45, F.S.

         In the 2010 legislative session, the FDFC's responsibilities were broadened to allow it to participate in a
         federal Department of Energy guaranteed loan program for the development of renewable energy
         infrastructure projects, and related energy projects that may be eligible under federal law. 45 The FDFC
         has the power to function within the corporate limits of any public agency including local governments
         with which it enters into an inter-local agreement. 46

         Pursuant to s. 288.9605, F.S., the FDFC operates as a conduit bond issuer that issues bonds on behalf
         of borrowers. 47 While the FDFC functions as a mechanism to help borrowers access capital markets, it



37 Id.
38 Ch. 288, part X, F.S. The corporation was created as a "public body corporate and politic" meaning that it is a legal

entity or corporation with a public function. Ch. 93-187, ss. 24-45, Laws of Fla.
39 S. 288.9602, F.S., generally expresses the legislative intent of the FDFC.
40 S. 288.9604(2), F.S.
41 S. 288.9604(2), F.S.

42 S. 288.9604(3), F.S.
43 S. 288.9604(3)(a)1., F.S.
44 S. 288.9604(3)(c), F.S.
45 Ch. 2010-139, ss. 2-10, Laws of Fla.

46 S. 288.9605(2)(e), F.S.
47 "[The] FDFC facilitated the issuance of debt obligations ... [t]hese bonds do not constitute a general debt, liability or

obligation of FDFC, the state, or any local government." Florida Development Finance Corporation, Financial Statements
for the Year Ended June 30, 2019, 12 (on file with the Senate Committee on Commerce and Tourism). See also, FDFC,
Bond Financing, https://www.fdfcbonds.com/traditional-bonds (last visited Jan. 21, 2020).
STORAGE NAME: pcs1271.WTS.D0CX                                                                                        PAGE: 5
DATE: 1/31/2020
        does not take on responsibility of debt repayment, even when a borrower fails to repay. 48 Conversely,
        the FDFC does not guarantee the bonds it issues but certain borrowers may opt in to the guaranty fund
        established by the FDFC pursuant to s. 288.9607, F.S., which guarantees that the bonds issued will be
        repaid. This guaranty fund consists of premiums paid by businesses that wish to participate in the fund
        and by a property interest in the infrastructure built with the insured bond's proceeds. 49

        A majority of the FDFC's financial assistance results from the issuance of municipal bonds, of which it
        may issue either a taxable revenue bond or a tax-exempt bond. 50 The bonds issued can provide
        financing for projects that further public purposes and are issued on behalf of a range of organizations.

        Tax exempt bonds, known also as Private Activity Bonds, require additional borrower qualification
        processes, including approval pursuant to the Tax Equity and Fiscal Responsibility Act of 1986
        (TEFRA) and allocation from the Florida State Board of Administration's Division of Bond Finance.
        These bonds are more lucrative financing options because they tend to have a lower interest rate than
        bank loans or taxable fixed-income securities, and investors benefit by not paying income taxes on
        interest payments. 51 The FDFC helps its borrowers pursue Private Activity Bonds by assisting them
        with the additional qualification processes. 52 In the fiscal year ending June 30, 2019, the FDFC
        facilitated the issuance of $2,885,710,000 in eight new money bonds.

        The FDFC also administers the Property Assessed Clean Energy (PACE) program, for which it also
        may issue bonds and other financial assistance that supports energy conservation. 53 The PACE
        Program was launched June 29, 2017, and allows a property owner to use equity accrued from the
        original purchase as the basis for an extension of credit. 54 The PACE Program facilitated $19,353,886
        in five taxable residential bonds for the 2018-19 fiscal year. 55

        FDFC's revenues are generated exclusively by fees it charges for the issuance of bonds. 56 The fees
        assessed are a $1,500 application fee and a tiered issuance fee due at the time of closing (sale of
        bonds). The tiered issuance fee is based on the face value of the bond issued: bonds valued from $0 -
        $2.5 million pay 75 basis points (0.75%); bonds valued from $2.5-$32.5 million pay 25 basis points
        (0.25%); and bonds valued over $32.5 million pay 10 basis points (0.10%). 57

        Division of Bond Finance

        The Division of Bond Finance (Division) was created by the Legislature in 1969 to issue bonds on
        behalf of local governments and agencies of the State of Florida. It assumed the powers of its
        predecessor, the Florida Development Commission. The Division has been administratively housed
        within the State Board of Administration since 1992, and operates under the control of a governing
        board which consists of the Governor and Cabinet. 58 The Division has the power to:
            • Sue and be sued;


48 Id.
49 The guaranty may not exceed 5% of the aggregate principal amount of bonds or other indebtedness relating to any

capital project. S. 288.9607, F.S.
°
5 FDFC, About Us, https://www.fdfcbonds.com/copy-of-about-us (last visited Jan. 21, 2020).
51 Steven Maguire and Joseph Hughes, Congressional Research Service, Private Activity Bonds: An Introduction (July 13,

2018), https://fas.org/sgp/crs/misc/RL31457.pdf (last visited Jan. 21, 2020).
52 FDFC, Bond Financing, supra.
53 FDFC, Property Assessed Clean Energy "PACE"- Commercial PACE, https://www.fdfcbonds.com/pace-commerical

(last visited Jan. 21, 2020). See also, s. 288.9606(7), F.S.
54 Id.
55 FDFC, Financial Statements for the Year Ended June 30, 2019, supra, at 3.
56 Id. at 6.
57 FDFC, Conduit Issuance Policy, 6-7 (Feb. 26, 2019), https://ca5cce56-0e6c-4988-82a7-

74892bf1d07e.filesusr.com/ugd/b1 b27e Ob227d45ff2b4e139bb36f2846f70b4b.pdf (last visited Jan. 21, 2020).
58 Division of Bond Finance, About the Division of Bond Finance, https://www.sbafla.com/bond/Home/About-the-Division-

of-Bond-Finance (last visited January 21, 2020).
STORAGE NAME: pcs1271.WTS.D0CX                                                                                  PAGE: 6
DATE: 1/31/2020
             •   Issue any bonds of the state, and to issue bonds on behalf of any state agency;
             •   Exercise all of the powers relating to the issuance of bonds of any state agency;
             •   Employ a director of the division to be designated by the Governor;
             •   Employ or retain persons, firms, or corporations;
             •   Prepare resolutions and other necessary proceedings relating to the issuance and sale of
                 bonds;
             •   Sell all state bonds authorized by law;
             •   Request assistance related to bond issuance from any state agency;
             •   Exercise the power of eminent domain;
             •   Remit the proceeds of any bonds sold for any state agency;
             •   Exercise control over the state's arbitrage compliance program; and
             •   Undertake investigations. 59

        The Division also determines the allocations for private activity bonds permitted to be issued in Florida
        under the Internal Revenue Code. 60

        Effect of the Bill

        Florida's Workforce Development System

        The bill defines the term "state board" to mean the state workforce development board established
        pursuant to the Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, Title I, s. 101. The bill
        provides that the state board will be supported by CareerSource, which works at the direction of the
        state board in consultation with DEO.

        The bill reassigns many of CareerSource powers, duties and responsibilities to DEO, the state board,
        or the state board in consultation with DEO and makes a number of conforming changes to reflect this
        adjustment in the relationship between DEO, CareerSource, and the state board.

        The bill specifies that CareerSource must operate under an agreement with DEO and repeals the
        provision in current law which states that CareerSource is not subject to the control, supervision, or
        direction of DEO.

        The bill provides for the state board to serve as the board of directors of CareerSource. The bill also
        provides for the state board to hire an executive director for CareerSource, who will serve as the
        president, the chief executive officer, and an employee of CareerSource.

        The bill directs CareerSource to:
           • operate at the direction of the state board;
           • provide support, including administrative support, to the state board;
           • work at the direction of the state board in consultation with DEO when appropriate; and
           • implement the policy directives of the state board and administer state workforce development
                programs as authorized by law, in accordance with its agreement with DEO.

        The bill authorizes the state board to hire a director and staff to assist in carrying out the functions and
        spending the funds made available through WIOA. The bill also directs the state board to authorize the
        director and staff to work with the department in carrying out the functions of WIOA.

        The bill requires that the state board notify the Governor and DEO of statewide or local workforce
        development and training needs that may require policy changes or an update to the state plan


59 S. 215.64, F.S.
60 S. 159.804, F.S. See also, Division of Bond Finance, Tax Equity and Fiscal Responsibility Act (TEFRA) Approval,

https://www.sbafla.com/bondfinance/Other-Functions/TEFRA (last visited Jan. 21, 2020).
STORAGE NAME: pcs1271.WTS.D0CX                                                                                   PAGE: 7
DATE: 1/31/2020
       required under s. 445.003, F.S. The bill also requires CareerSource to report all donations and grants
       they receive to the state board and DEO.

       The bill authorizes the chief elected official of a local workforce development board to remove, for
       cause, a member of the local board, the executive director of the local board, or the designated person
       responsible for the operational and administrative functions of the local board.

       The bill defines the term "for cause" to include, but not limited to, engaging in fraud or other criminal
       acts, incapacity, unfitness, neglect of duty, official incompetence and irresponsibility, misfeasance,
       malfeasance, nonfeasance, or lack of performance.

       The bill also deletes a number of obsolete provisions.

       Florida Development Finance Corporation

       Relating to the board of directors of the Florida Development Finance Corporation, the bill:
          • Increases the board of directors from five to seven members.
          • Provides that the executive director of DEO, or his or her designee, serve as the chair of the
              board.
          • Provides that the director of the Division of Bond Finance, or his or her designee, serve on the
              board.
          • Specifies that the Governor will appoint the remaining five members, subject to confirmation by
              the Senate. Of the five appointed members:
                   o Three or more must be bankers or persons with experience in finance.
                   o One must be an economic development specialist.
          • Specifies that the board may remove appointed directors under certain circumstances.

       The bill requires DEO to develop a detailed report concerning the performance of FDFC each year, and
       to include the report, along with an existing summary report of FDFC, in its annual report to the
       Governor, President and Speaker. The bill also requires DEO to establish annual performance
       standards for FDFC and to annually report on how such performance measures are being met.

       The bill provides thats. 288.9604, F.S., the statute creating and authorizing the FDFC, stands repealed
       October 1, 2022, and every fourth year thereafter, unless reviewed and saved from repeal by the
       Legislature.

       The bill specifies that an FDFC contract or interlocal agreement in existence before July 1, 2020, will
       remain in effect and be binding on successors.

       The bill provides for an effective date of July 1, 2020.

   B. SECTION DIRECTORY:
       Section 1      Amends s. 445.002, F.S., defining the terms "for cause" and "state board".

       Section 2      Amends s. 445.003, F.S., replacing CareerSource Florida, Inc., with the state board or
                      the Department of Economic Opportunity in provisions relating to the implementation of
                      the federal Workforce Innovation and Opportunity Act; authorizing, rather than requiring,
                      certain funds to be reserved for the Incumbent Worker Training Program; conforming
                      provisions to changes made by the act; authorizing the state board to hire a director and
                      staff; requiring the state board to authorize the director and staff to work with the
                      department for specified reasons.

       Section 3      Amends s. 445.004, F.S., revising provisions relating to the operation of CareerSource
                      Florida, Inc.; revising the purpose of CareerSource Florida, Inc.; providing purpose for
STORAGE NAME: pcs1271.WTS.D0CX                                                                               PAGE: 8
DATE: 1/31/2020
                      the state board; revising the organizational structure of CareerSource Florida, Inc.;
                      providing requirements for the organizational structure of the state board; providing the
                      state board with powers and authority previously held by CareerSource Florida, Inc.;
                      revising the requirements related to such powers and authority; requiring the state
                      board, rather than CareerSource Florida, Inc., to submit an annual report to the
                      Governor and the Legislature; authorizing the Auditor General to conduct an audit of the
                      state board and programs or entities created by the state board; requiring the state
                      board, rather than CareerSource Florida, Inc., to establish certain uniform performance
                      accountability measures; requiring the state board, in consultation with the department,
                      to design the workforce development strategy for the state; requiring that the strategy be
                      approved by the Governor; revising requirements relating to the workforce development
                      system; authorizing the department to consult with the state board to issue certain
                      technical assistance letters.

       Section 4      Amends s. 445.006, F.S., requiring that the state board, rather than CareerSource
                      Florida, Inc., take certain actions relating to the state plan for workforce development.

       Section 5      Amends s. 445.007, F.S., replacing CareerSource Florida, Inc., with the state board or
                      the department in provisions relating to local workforce development boards; deleting the
                      definition of the term "cause"; authorizing a chief elected official for a local workforce
                      development board to remove certain persons from the board for cause; requiring the
                      department to provide certain guidance to specified entities; deleting an obsolete
                      provision; making technical changes.

       Section 6      Amends s. 445.0071, F.S., replacing CareerSource Florida, Inc., with the state board or
                      the department in provisions relating to the Florida Youth Summer Jobs Pilot Program.

       Section 7      Amends s. 445.008, F.S., revising authority relating to the Workforce Training Institute;
                      requiring that certain donations and grants be reported to the state board and the
                      department.

       Section 8      Amends s. 445.009, F.S., replacing CareerSource Florida, Inc., with the state board or
                      the department in provisions relating to one-stop delivery systems; deleting an obsolete
                      provision.

       Section 9      Amends s. 445.011, F.S., replacing CareerSource Florida, Inc., with the department in
                      provisions relating to workforce information systems; requiring the department to consult
                      with the state board in implementing certain automated information systems; deleting a
                      provision requiring CareerSource Florida, Inc., to take certain actions when procuring
                      workforce information systems.

   Sections 10-32     Conforms provisions to changes made by the act.

       Section 33     Amends s. 20.60, F.S., requiring the executive director of the Department of Economic
                      Opportunity to serve as the chair of the board of directors of the Florida Development
                      Finance Corporation; requiring the department to include specified information in its
                      annual report and develop annual performance standards for the corporation;
                      conforming provisions to changes made by the act.

       Section 34     Amends s. 288.9604, F.S., revising the membership of the board of directors of the
                      Florida Development Finance Corporation; conforming provisions to changes made by
                      the act; providing for future repeals; requiring the current chair and vice chair of the
                      board of directors of the Florida Development Finance Corporation to serve as appointed
                      directors after a specified date.

STORAGE NAME: pcs1271.WTS.DOCX                                                                              PAGE: 9
DATE: 1/31/2020
       Section 35     Provides construction.

       Section 36     Amends s. s. 288.9610, F.S., requiring the Florida Development Finance Corporation to
                      submit an annual report containing specified information to the Department of Economic
                      Opportunity.

       Section 37     Provides that certain contracts and interlocal agreements remain in effect and binding
                      under certain circumstances.

       Section 38     Provides for an effective date.


                        II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                               Ill. 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 does not appear to create a need for rulemaking or rulemaking authority.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
STORAGE NAME: pcs1271.WTS.DOCX                                                                         PAGE: 10
DATE: 1/31/2020
       None.


                        IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: pcs1271.WTS.DOCX                                         PAGE: 11
DATE: 1/31/2020
F       L   O   R     D A       H   O   U   S   E      0   F     REPRESENTATIVES




            PCS for HB 1271                                                                               2020




    1                                        A bill to be entitled
    2               An act relating to state economic development
    3               entities; amending s. 445.002,                F.S.; defining the
    4               terms "for cause" and "state board"; amending s.
    5               445.003,     F.S.; replacing CareerSource Florida,                            Inc.,
    6               with the state board or the Department of Economic
    7               Opportunity in provisions relating to the
    8               implementation of the federal Workforce Innovation and
    9               Opportunity Act; authorizing,                rather than requiring,
10                  certain funds to be reserved for the Incumbent Worker
11                  Training Program; conforming provisions to changes
12                  made by the act; authorizing the state board to hire a
13                  director and staff; requiring the state board to
14                  authorize the director and staff to work with the
15                  department for specified reasons; amending s.                             445.004,
16                  F.S.; revising provisions relating to the operation of
17                  CareerSource Florida,             Inc.; revising the purpose of
18                  CareerSource Florida,             Inc.; providing purpose for the
19                  state board; revising the organizational structure of
20                  CareerSource Florida,             Inc.; providing requirements for
21                  the organizational structure of the state board;
22                  providing the state board with powers and authority
23                  previously held by CareerSource Florida,                          Inc.;
24                  revising the requirements related to such powers and
25                  authority; requiring the state board, rather than
26                  CareerSource Florida,             Inc., to submit an annual report

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         PCS for HB 1271                                                                        2020




27               to the Governor and the Legislature; authorizing the
28               Auditor General to conduct an audit of the state board
29               and programs or entities created by the state board;
30               requiring the state board, rather than CareerSource
31               Florida, Inc., to establish certain uniform
32               performance accountability measures; requiring the
33               state board,        in consultation with the department, to
34               design the workforce development strategy for the
35               state; requiring that the strategy be approved by the
36               Governor; revising requirements relating to the
37               workforce development system; authorizing the
38               department to consult with the state board to issue
39               certain technical assistance letters; amending s.
40               445.006,     F.S.; requiring that the state board, rather
41               than CareerSource Florida,                  Inc., take certain actions
42               relating to the state plan for workforce development;
43               amending s. 445.007,              F.S.; replacing CareerSource
44               Florida,     Inc., with the state board or the department
45               in provisions relating to local workforce development
46               boards; deleting the definition of the term "cause";
47               authorizing a chief elected official for a local
48               workforce development board to remove certain persons
49               from the board for cause; requiring the department to
50               provide certain guidance to specified entities;
51               deleting an obsolete provision; making technical
52               changes; amending s. 445.0071,                 F.S.; replacing

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         PCS for HB 1271                                                                              2020




53               CareerSource Florida, Inc., with the state board or
54               the department in provisions relating to the Florida
55               Youth Summer Jobs Pilot Program; amending s. 445.008,
56               F.S.; revising authority relating to the Workforce
57               Training Institute; requiring that certain donations
58               and grants be reported to the state board and the
59               department; amending s. 445.009, F.S.; replacing
60               CareerSource Florida, Inc., with the state board or
61               the department in provisions relating to one-stop
62               delivery systems; deleting an obsolete provision;
63               amending s. 445.011, F.S.; replacing CareerSource
64               Florida, Inc., with the department in provisions
65               relating to workforce information systems; requiring
66               the department to consult with the state board in
67               implementing certain automated information systems;
68               deleting a provision requiring CareerSource Florida,
69               Inc., to take certain actions when procuring workforce
70               information systems; amending s. 445.014, F.S.;
71               replacing CareerSource Florida, Inc., with the state
72               board in provisions relating to the establishment of
73               one-stop delivery systems; amending s. 445.021,                              F.S.;
74               replacing CareerSource Florida,                   Inc., with the state
75               board in provisions relating to the relocation
76               assistance program; amending s. 445.022, F.S.;
77               replacing CareerSource Florida,                   Inc., with the state
78               board in provisions relating to Retention Incentive

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          PCS for HB 1271                                                                      2020




 79               Training Accounts; amending s. 445.024, F.S.;
 80               replacing CareerSource Florida,                   Inc., with the state
 81               board in provisions relating to certain contract
 82               exceptions; amending s. 445.026, F.S.; replacing
 83               CareerSource Florida, Inc., with the state board in
 84               provisions relating to cash assistance severance
 85               benefits; amending s. 445.028, F.S.; replacing
 86               CareerSource Florida, Inc., with the department in
 87               provisions relating to transitional benefits and
 88               services; amending s. 445.030, F.S.; replacing
 89               CareerSource Florida, Inc., with the state board in
 90               provisions relating to transitional education and
 91               training; amending s. 445.033, F.S.; replacing
 92               CareerSource Florida, Inc., with the state board in
 93               provisions relating to evaluations of TANF-funding
 94               programs; amending s. 445.035, F.S.; replacing
 95               CareerSource Florida, Inc., with the state board in
 96               provisions relating to data collection and reporting;
 97               amending s. 445.048, F.S.; replacing CareerSource
 98               Florida, Inc., with the state board in provisions
 99               relating to the Passport to Economic Progress program;
100               amending s. 445.051, F.S.; replacing CareerSource
101               Florida, Inc., with the state board in provisions
102               relating to individual development accounts; amending
103               s. 445.055, F.S.; replacing CareerSource Florida,
104               Inc., with the state board in provisions relating to

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         PCS for HB 1271                                                                       2020




105              the establishment of an employment advocacy and
106             assistance program targeting a certain group; amending
107              ss. 11.45, 288.901, 331.369, 413.405, 414.045,
108              420.622, 443.171, 443.181, 446.71, 1011.80, and
109              1011.801, F.S.; conforming provisions to changes made
110              by the act; amending s. 20.60, F.S.; requiring the
111              executive director of the department to serve as the
112              chair of the board of directors of the Florida
113              Development Finance Corporation; requiring the
114              department to include specified information in its
115              annual report and develop annual performance standards
116              for the corporation; conforming provisions to changes
117             made by the act; amending s. 288.9604, F.S.; revising
118              the membership of the board of directors of the
119              corporation; conforming provisions to changes made by
120              the act; providing for future repeals; requiring the
121              current chair and vice chair of the board of directors
122              of the corporation to serve as appointed directors
123              after a specified date; providing construction;
124              amending s. 288.9610, F.S.; requiring the corporation
125              to submit an annual report containing specified
126              information to the department; providing that certain
127              contracts and interlocal agreements remain in effect
128              and binding under certain circumstances; providing an
129              effective date.
130

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         PCS for HB 1271                                                                               2020




131      Be It Enacted by the Legislature of the State of Florida:
132
133              Section 1.           Subsections (2) and (3) of section 445.002,
134      Florida Statutes, are renumbered as subsections (3) and (5),
135      respectively, and new subsections (2) and (4) are added to that
136      section to read:
137              445.002           Definitions.-As used in this chapter, the term:
138              ( 2)      11
                                For cause II includes, but is not limited to, engaging
139      in fraud or other criminal acts, incapacity, unfitness, neglect
140      of duty, official incompetence and irresponsibility,
141      misfeasance, malfeasance, nonfeasance, or lack of performance.
142              ( 4)      11
                                State board II means the state workforce development
143      board established pursuant to the Workforce Innovation and
144      Opportunity Act, Pub. L. No. 113-128, Title I, s. 101. The state
145      board shall be supported by CareerSource Florida, Inc., which
146      works at the direction of the state board in consultation with
147      the department as required by this chapter.
148              Section 2.           Subsections ( 2) ,       ( 3) ,     ( 4) , and ( 5) of section
149      445.003, Florida Statutes, are amended, and subsection (6) is
150      added to that section, to read:
151              445.003           Implementation of the federal Workforce Innovation
152      and Opportunity Act.-
153              (2)       FOUR-YEAR PLAN.-The state board CareerSource Florida,
154      Inc., shall prepare and submit a 4-year plan, consistent with
155      the requirements of the Workforce Innovation and Opportunity
156      Act. Mandatory and optional federal partners shall be fully

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157       involved in designing the plan's one-stop delivery system
158       strategy. The plan must clearly define each program's statewide
159       duties and role relating to the system. The plan must detail a
160       process that would fully integrate all federally mandated and
161       optional partners.
162               (3)       FUNDING.-
163               (a)       Title I, Workforce Innovation and Opportunity Act
164       funds; Wagner-Peyser funds; and NAFTA/Trade Act funds will be
165       expended based on the 4-year plan of the state board
166       CareerSource Florida, Inc. The plan must outline and direct the
167       method used to administer and coordinate various funds and
168       programs that are operated by various agencies. The following
169       provisions apply to these funds:
170               1.    At least 50 percent of the Title I funds for Adults and
171       Dislocated Workers which are passed through to local workforce
172       development boards shall be allocated to and expended on
173       Individual Training Accounts unless a local workforce
174       development board obtains a waiver from the state board
175       CareerSource Florida, Inc. Tuition, books, and fees of training
176       providers and other training services prescribed and authorized
177       by the Workforce Innovation and Opportunity Act qualify as
178       Individual Training Account expenditures.
17 9              2.    Fifteen percent of Title I funding shall be retained at
180       the state level and dedicated to state administration and shall
181       be used to design, develop, induce, and fund innovative
182       Individual Training Account pilots, demonstrations, and

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         PCS for HB 1271                                                                       2020




183      programs. Of such funds retained at the state level, $2 million
184      may shall be reserved for the Incumbent Worker Training Program
185      created under subparagraph 3. Eligible state administration
186      costs include the costs of funding for the state board and state
187      board staff of CareerSource Florida, Inc.; operating fiscal,
188      compliance, and management accountability systems through the
189      department CareerSource Florida, Inc.; conducting evaluation and
190      research on workforce development activities; and providing
191      technical and capacity building assistance to local workforce
192      development areas at the direction of the state board
193      CareerSource Florida, Inc. Notwithstanding s. 445.004, such
194      administrative costs may not exceed 25 percent of these funds.
195      An amount not to exceed 75 percent of these funds shall be
196      allocated to Individual Training Accounts and other workforce
197      development strategies for other training designed and tailored
198      by the department in consultation with the state board
199      CareerSource Florida, Inc., including, but not limited to,
200      programs for incumbent workers, nontraditional employment, and
201      enterprise zones. The department, in consultation with the state
202      board CareerSource Florida, Inc., shall design, adopt, and fund
203      Individual Training Accounts for distressed urban and rural
204      communities.
205              3.    The Incumbent Worker Training Program is created for
206      the purpose of providing grant funding for continuing education
207      and training of incumbent employees at existing Florida
208      businesses. The program will provide reimbursement grants to

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         PCS for HB 1271                                                                       2020




209      businesses that pay for preapproved, direct, training-related
210      costs.
211              a.    The Incumbent Worker Training Program will be
212      administered by CareerSource Florida, Inc., which may, at its
213      discretion, contract with a private business organization to
214      serve as grant administrator.
215              b.    The program shall be administered pursuant to s.
216      134(d) (4) of the Workforce Innovation and Opportunity Act.
217      Priority for funding shall be given to businesses with 25
218      employees or fewer, businesses in rural areas, businesses in
219      distressed inner-city areas, businesses in a qualified targeted
220      industry, businesses whose grant proposals represent a
221      significant upgrade in employee skills, or businesses whose
222      grant proposals represent a significant layoff avoidance
223      strategy.
224              c.    All costs reimbursed by the program must be preapproved
225      by CareerSource Florida, Inc., or the grant administrator. The
226      program may not reimburse businesses for trainee wages, the
227      purchase of capital equipment, or the purchase of any item or
228      service that may possibly be used outside the training project.
229      A business approved for a grant may be reimbursed for
230      preapproved, direct, training-related costs including tuition,
231      fees, books and training materials, and overhead or indirect
232      costs not to exceed 5 percent of the grant amount.
233              d.    A business that is selected to receive grant funding
234      must provide a matching contribution to the training project,

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235      including, but not limited to, wages paid to trainees or the
236      purchase of capital equipment used in the training project; must
237      sign an agreement with CareerSource Florida, Inc., or the grant
238      administrator to complete the training project as proposed in
239      the application; must keep accurate records of the project's
240      implementation process; and must submit monthly or quarterly
241      reimbursement requests with required documentation.
242              e.    All Incumbent Worker Training Program grant projects
243      shall be performance-based with specific measurable performance
244      outcomes, including completion of the training project and job
245      retention. CareerSource Florida, Inc., or the grant
246      administrator shall withhold the final payment to the grantee
247      until a final grant report is submitted and all performance
248      criteria specified in the grant contract have been achieved.
249              f.    The state board CareerSource Florida, Inc., may
250      establish guidelines necessary to implement the Incumbent Worker
251      Training Program.
252              g.    No more than 10 percent of the Incumbent Worker
253      Training Program's total appropriation may be used for overhead
254      or indirect purposes.
255              4.    At least 50 percent of Rapid Response funding shall be
256      dedicated to Intensive Services Accounts and Individual Training
257      Accounts for dislocated workers and incumbent workers who are at
258      risk of dislocation. The department CareerSource Florida, Inc.,
259      shall also maintain an Emergency Preparedness Fund from Rapid
260      Response funds, which will immediately issue Intensive Service

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         PCS for HB 1271                                                                        2020




261      Accounts, Individual Training Accounts, and other federally
262      authorized assistance to eligible victims of natural or other
263      disasters. At the direction of the Governor, these Rapid
264      Response funds shall be released to local workforce development
265      boards for immediate use after events that qualify under federal
266      law. Funding shall also be dedicated to maintain a unit at the
267      state level to respond to Rapid Response emergencies and to work
268      with state emergency management officials and local workforce
269      development boards. All Rapid Response funds must be expended
270      based on a plan developed by the state board in consultation
271      with the department CareerSource Florida, Inc., and approved by
272      the Governor.
273              (b)       The administrative entity for Title I, Workforce
274      Innovation and Opportunity Act funds, and Rapid Response
275      activities is the department of Economic Opportunity, which
276      shall provide direction to local workforce development boards
277      regarding Title I programs and Rapid Response activities
278      pursuant to the direction of CareerSource Florida, Inc.
279              ( 4)      FEDERAL REQUIREMENTS, EXCEPTIONS AND REQUIRED
280      MODIFICATIONS.-
281              (a)       The state board CareerSource Florida, Inc., may
282      provide indemnification from audit liabilities to local
283      workforce development boards that act in full compliance with
284      state law and board policy.
285              (b)       The state board, in consultation with the department
286      CareerSource Florida, Inc., may make modifications to the

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         PCS for HB 1271                                                                        2020




287      state's plan, policies, and procedures to comply with federally
288      mandated requirements that in its judgment must be complied with
289      to maintain funding provided pursuant to Pub. L. No. 113-128.
290      The state board shall provide written notice to the Governor,
291      the President of the Senate, and the Speaker of the House of
292      Representatives within 30 days after any such changes or
293      modifications.
294              (c)       The state board CareerSource Florida, Inc., shall
295      enter into a memorandum of understanding with the Florida
296      Department of Education to ensure that federally mandated
297      requirements of Pub. L. No. 113-128 are met and are in
298      compliance with the state plan for workforce development.
299              (5)       LONG-TERM CONSOLIDATION OF WORKFORCE DEVELOPMENT.-The
300      state board CareerSource Florida, Inc., may recommend workforce-
301      related divisions, bureaus, units, programs, duties,
302      commissions, boards, and councils for elimination,
303      consolidation, or privatization.
304              (6)       AUTHORITY TO HIRE DIRECTOR AND STAFF.-The state board
305      may hire a director and staff to assist in carrying out the
306      functions of the Workforce Innovation and Opportunity Act and in
307      using funds made available through the act. The state board
308      shall authorize the director and staff to work with the
309      department in carrying out the functions of the Workforce
310      Innovation and Opportunity Act.
311              Section 3.        Section 445.004, Florida Statutes, is amended
312      to read:

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         PCS for HB 1271                                                                        2020




313              445.004       CareerSource Florida, Inc., and the state board;
314      creation; purpose; membership; duties and powers.-
315              (1)       CareerSource Florida, Inc., is created as a not-for-
316      profit corporation, which shall be registered, incorporated,
317      organized, and operated in compliance with chapter 617 and shall
318      operate at the direction of the state board. CareerSource
319      Florida, Inc., is not a unit or entity of state government and
320      is exempt from chapters 120 and 287. CareerSource Florida, Inc.,
321      shall apply the procurement and expenditure procedures required
322      by federal law for the expenditure of federal funds.
323      CareerSource Florida, Inc., shall be administratively housed
324      within the department and shall operate under agreement with e-f-
325      Economic Opportunity; however, CareerSource Florida, Inc., is
326      not subject to control, supervision, or direction by the
327      department in any manner. The Legislature finds that public
328      policy dictates that CareerSource Florida, Inc., operate in the
329      most open and accessible manner consistent with its public
330      purpose. To this end, the Legislature specifically declares that
331      CareerSource Florida, Inc., its board, councils, and any
332      advisory committees or similar groups created by CareerSource
333      Florida, Inc., are subject to the provisions of chapter 119
334      relating to public records, and those provisions of chapter 286
335      relating to public meetings.
336              (2)       CareerSource Florida, Inc., provides administrative
337      support for the state board, -i--s- the principal workforce policy
338      organization for the state. The purpose of the state board

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         PCS for HB 1271                                                                        2020




339      CareerSource Florida, Inc., is to design and implement
340      strategies that help Floridians enter, remain in, and advance in
341      the workplace, so that they may become more highly skilled and
342      successful, which benefits these Floridians, Florida businesses,
343      and the entire state, and fosters the development of the state's
344      business climate. CareerSource Florida, Inc., shall, consistent
345      with its agreement with the department, implement the policy
346      directives of the state board and administer state workforce
347      development programs as authorized by law.
348              ( 3) (a)     CareerSource Florida, Inc., shall be governed by a
349      board of directors, whose membership and appointment must be
350      consistent with Pub. L. No. 113 128, Title I, s. lOl(b). Members
351      of the state board described in Pub. L. No. 113-128, Title I, s.
352      101 (b) (1) (C) (iii) (I) (aa) are shall be nonvoting members. The
353      number of members is directors shall be determined by the
354      Governor, who shall consider the importance of minority, gender,
355      and geographic representation in making appointments to the
356      state board. When the Governor is in attendance, he or she shall
357      preside at all meetings of the state board of directors.
358              (b)       The state board of directors of CareerSource Florida,
359      Inc., shall be chaired by a board member designated by the
360      Governor pursuant to Pub. L. No. 113-128. A member may not serve
361      more than two terms.
362              (c)       Members appointed by the Governor may serve no more
363      than two terms and must be appointed for 3-year terms. However,
364      in order to establish staggered terms for board members, the

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         PCS for HB 1271                                                                        2020




365      Governor shall appoint or reappoint one-third of the board
366      members for 1-year terms, one-third of the board members for 2-
367      year terms, and one-third of the board members for 3-year terms
368      beginning July 1, 2016. Subsequent appointments or
369      reappointments shall be for 3-year terms, except that a member
370      appointed to fill a vacancy on the board shall be appointed to
371      serve only the remainder of the term of the member whom he or
372      she is replacing, and may be appointed for a subsequent 3-year
373      term. Private sector representatives of businesses, appointed by
374      the Governor pursuant to Pub. L. No. 113-128, shall constitute a
375      majority of the membership of the board. Private sector
376      representatives shall be appointed from nominations received by
377      the Governor, including, but not limited to, those nominations
378      made by the President of the Senate and the Speaker of the House
379      of Representatives. Private sector appointments to the state
380      board must be representative of the business community of this
381      state; no fewer than one-half of the appointments must be
382      representative of small businesses, and at least five members
383      must have economic development experience. Members appointed by
384      the Governor serve at the pleasure of the Governor and are
385      eligible for reappointment.
386              (d)       The state board must include the vice chairperson of
387      the board of directors of Enterprise Florida, Inc., and one
388      member representing each of the Workforce Innovation and
389      Opportunity Act partners, including the Division of Career and
390      Adult Education, and other entities representing programs

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         PCS for HB 1271                                                                        2020




391      identified in the Workforce Innovation and Opportunity Act, as
392      determined necessary.
393              (e)       A member of the state board of directors of
394      CareerSource Florida, Inc., may be removed by the Governor for
395      cause. Absence from three consecutive meetings results in
396      automatic removal. The chair of the state board CareerSource
397      Florida, Inc., shall notify the Governor of such absences.
398              (f)       Representatives of businesses appointed to the state
399      board of directors may not include providers of workforce
400      services.
401              (g)       The state board serves as the board of directors of
402      CareerSource Florida, Inc. The state board shall hire an
403      executive director for CareerSource Florida, Inc. The executive
404      director serves as the president, the chief executive officer,
405      and an employee of CareerSource Florida, Inc. The president of
406      CareerSource Florida, Inc., serves at the pleasure of the
407      Governor.
408              (4) (a)      The president of CareerSource Florida, Inc., shall
409      be hired by the board of directors of CareerSource Florida,
410      Inc., and shall serve at the pleasure of the Governor in the
411      capacity of an executive director and secretary of CareerSource
412      Florida, Inc.
413             ~-fb+         The state board of directors of CareerSource
414      Florida, Inc., shall meet at least quarterly and at other times
415      upon the call of its chair. The state board and its committees,
416      subcommittees, or other subdivisions may use any method of

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417      telecommunications to conduct meetings, including establishing a
418      quorum through telecommunications, if the public is given proper
419      notice of the telecommunications meeting and is given reasonable
420      access to observe and, if appropriate, participate.
421              J..Ql_+et     A majority of the total current membership of the
422      state board of directors of CareerSource Florida, Inc.,
423      constitutes a quorum and is required to organize and conduct the
424      business of the state board, except that a majority of the
425      executive committee is required to adopt or amend the bylaws.
426              (d)       A majority of those voting is required to organize and
427      conduct the business of the board, except that a majority of the
428      entire board of directors is required to adopt or amend the
429      bylaws.
430              J....gl-fe+   Except as delegated or authorized by the state
431      board of directors of CareerSource Florida, Inc., individual
432      members have no authority to control or direct the operations of
433      CareerSource Florida, Inc., or the actions of its officers and
434      employees, including the president.
435             ~-f-f-t        Members of the state board of directors of
436      CareerSource Florida, Inc., and its committees serve without
437      compensation, but these members and7 the president 7 and -t-h-e
438      employees of CareerSource Florida, Inc., may be reimbursed for
439      all reasonable, necessary, and actual expenses as provided under
440      pursuant to s. 112.061.
441             ~~             The state board shall of directors of CareerSource
442      Florida, Inc., may establish an executive committee consisting

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443       of the chair and at least six additional board members selected
444       by the chair, one of whom must be a representative of organized
445       labor. The executive committee and the president of CareerSource
446       Florida, Inc., have such authority as the state board delegates
447       to them, except that the state board of directors may not
448       delegate to the executive committee authority to take action
449       that requires approval by a majority of the entire state board
450       of directors.
451               J!l-ffl+     The chair may appoint committees to fulfill the
452       state board's responsibilities, to comply with federal
453       requirements, or to obtain technical assistance, and must
454       incorporate members of local workforce development boards into
455       its structure.
456               i.9l_+i+     Each member of the state board of directors who is
457       not otherwise required to file a financial disclosure under
458       pursuant to s. 8, Art. II of the State Constitution ors.
459       112.3144 must file disclosure of financial interests under
460       pursuant to s. 112.3145.
461               (5)       The state board has CareerSource Florida, Inc., shall
4 62      flfr'if"e all the powers and authority not explicitly prohibited by
463       statute which are necessary or convenient to carry out and
464       effectuate its purposes as determined by statute, Pub. L. No.
465       113-128, and the Governor, as well as its functions, duties, and
466       responsibilities, including, but not limited to, the following:
467               (a)       Serving as the state's workforce development board
4 68      pursuant to Pub. L. No. 113-128. Unless otherwise required by

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469      federal law, at least 90 percent of workforce development
470      funding must go toward direct customer service.
471              (b)       Providing oversight and policy direction to ensure
472      that the following programs are administered by the department
473      consistent in compliance with approved plans and under contract
474      with CareerSource Florida, Inc.:
475              1.    Programs authorized under Title I of the Workforce
476      Innovation and Opportunity Act, Pub. L. No. 113-128, with the
477      exception of programs funded directly by the United States
478      Department of Labor under Title I, s. 167.
479              2.    Programs authorized under the Wagner-Peyser Act of
480      1933, as amended, 29 U.S.C. ss. 49 et seq.
481              3.    Activities authorized under Title II of the Trade Act
482      of 2002, as amended, 19 U.S.C. ss. 2272 et seq., and the Trade
483      Adjustment Assistance Program.
484              4.    Activities authorized under 38 U.S.C. chapter 41,
485      including job counseling, training, and placement for veterans.
486              5.    Employment and training activities carried out under
487      funds awarded to this state by the United States Department of
488      Housing and Urban Development.
489              6.    Welfare transition services funded by the Temporary
490      Assistance for Needy Families Program, created under the
491      Personal Responsibility and Work Opportunity Reconciliation Act
492      of 1996, as amended, Pub. L. No. 104-193, and Title IV, s. 403,
493      of the Social Security Act, as amended.
494              7.    The Florida Bonding Program, provided under Pub. L. No.

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495       97-300, s. 164 (a) (1).
496                 8.    The Food Assistance Employment and Training Program,
4 97      provided under the Food and Nutrition Act of 2008, 7 U.S.C. ss.
498       2011-2032; the Food Security Act of 1988, Pub. L. No. 99-198;
499       a-ftEi   the Hunger Prevention Act, Pub. L. No. 100-435; and the
500       Agriculture Improvement Act of 2018, Pub. L. No. 115-334.
501                 9.    The Quick-Response Training Program, provided under ss.
502       288.046-288.047. Matching funds and in-kind contributions that
503       are provided by clients of the Quick-Response Training Program
504       shall count toward the requirements of s. 288.904, pertaining to
505       the return on investment from activities of Enterprise Florida,
506       Inc.
507                 10.     The Work Opportunity Tax Credit, provided under the
508       Tax and Trade Relief Extension Act of 1998, Pub. L. No. 105-277,
509       and the Taxpayer Relief Act of 1997, Pub. L. No. 105-34.
510                 11.     Offender placement services, provided under ss.
511       944.707-944.708.
512                +et
513       The department may adopt rules necessary to administer this
514       chapter which relate to implementing and administering the
515       programs listed in this paragraph -fe+- as well as rules related
516       to eligible training providers and auditing and monitoring
517       subrecipients of the workforce system grant funds.
518                l£L+El+     Contracting with public and private entities as
519       necessary to further the directives of this section. All
520       contracts executed by the state board or CareerSource Florida,

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521      Inc., must include specific performance expectations and
522      deliverables. All CareerSource Florida, Inc., contracts,
523      including those solicited, managed, or paid by the department
524      under pursuant to s. 20.60(5) (c).L are exempt from s. 112.061,
525      but shall be governed by subsection (1).
526              J..s:!1-+et   Notifying the Governor and the department of
527      statewide or local workforce development and training needs that
528      may require policy changes or an update to the state plan
529      required under s. 445.003, and notifying the Governor, the
530      President of the Senate, and the Speaker of the House of
531      Representatives of noncompliance by the department or other
532      agencies or obstruction of the state board's efforts by such
533      agencies. Upon such notification, the Executive Office of the
534      Governor shall assist agencies to bring them into compliance
535      with state board objectives.
536             ~-ff+          Ensuring that the state does not waste valuable
537      training resources. The state board's policy is board shall
538      direct that all resources, including equipment purchased for
539      training Workforce Innovation and Opportunity Act clients, be
540      available for use at all times by eligible populations as first
541      priority users. At times when eligible populations are not
542      available, such resources shall be used for any other state-
543      authorized education and training purpose. The state board
544      CareerSource Florida, Inc., may authorize expenditures to award
545      suitable framed certificates, pins, or other tokens of
546      recognition for performance by a local workforce development

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547      board, its committees and subdivisions, and other units of the
548      workforce system. The state board CareerSource Florida, Inc.,
549      may also authorize expenditures for promotional items, such as
550      t-shirts, hats, or pens printed with messages promoting the
551      state's workforce system to employers, job seekers, and program
552      participants. However, such expenditures are subject to federal
553      regulations applicable to the expenditure of federal funds.
554             J..!l+J-+-     Establishing a dispute resolution process for all
555      memoranda of understanding or other contracts or agreements
556      entered into between the department and local workforce
557      development boards.
558             J_gJ_-f-fl-t   Archiving records with the Bureau of Archives and
559      Records Management of the Division of Library and Information
560      Services of the Department of State.
561              (6)       The state board CareerSource Florida, Inc., may take
562      action that it deems necessary to achieve the purposes of this
563      section, including, but not limited to:
564              (a)       Creating a state employment, education, and training
565      policy that ensures that programs to prepare workers are
566      responsive to present and future business and industry needs and
567      complement the initiatives of Enterprise Florida, Inc.
568              (b)       Establishing policy direction for a funding system
569      that provides incentives to improve the outcomes of career
570      education, registered apprenticeship, and work-based learning
571      programs and that focuses resources on occupations related to
572      new or emerging industries that add greatly to the value of the

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573      state's economy.
574              (c)       Establishing a comprehensive policy related to the
575      education and training of target populations such as those who
576      have disabilities, are economically disadvantaged, receive
577      public assistance, are not proficient in English, or are
578      dislocated workers. This approach should ensure the effective
579      use of federal, state, local, and private resources in reducing
580      the need for public assistance.
581              (d)       Designating Institutes of Applied Technology composed
582      of public and private postsecondary institutions working
583      together with business and industry to ensure that career
584      education programs use the most advanced technology and
585      instructional methods available and respond to the changing
586      needs of business and industry.
587              (e)       Providing policy direction for a system to project and
588      evaluate labor market supply and demand using the results of the
589      Workforce Estimating Conference created ins. 216.136 and the
590      career education performance standards identified under s.
591      1008.43.
592              (f)       Reviewing the performance of public programs that are
593      responsible for economic development, education, employment, and
594      training. The review must include an analysis of the return on
595      investment of these programs.
596              (g)       Expanding the occupations identified by the Workforce
597      Estimating Conference to meet needs created by local emergencies
598      or plant closings or to capture occupations within emerging

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599      industries.
600              ( 7)      By December 1 of each year, the state board
601      CareerSource Florida, Inc., shall submit to the Governor, the
602      President of the Senate, the Speaker of the House of
603      Representatives, the Senate Minority Leader, and the House
604      Minority Leader a complete and detailed annual report setting
605      forth:
606              (a)       All audits, including any audit conducted under
607      subsection (8).
608              (b}       The operations and accomplishments of the state board,
609      including the programs or entities specified in subsection (6).
610              (8)       Pursuant to his or her own authority or at the
611      direction of the Legislative Auditing Committee, the Auditor
612      General may conduct an audit of the state board and CareerSource
613      Florida, Inc., or the programs or entities created by the state
614      board CareerSource Florida, Inc. The Office of Program Policy
615      Analysis and Government Accountability, pursuant to its
616      authority or at the direction of the Legislative Auditing
617      Committee, may review the systems and controls related to
618      performance outcomes and quality of services of the state board
619      and CareerSource Florida, Inc.
620              (9)       The state board CareerSource Florida, Inc., in
621      collaboration with the local workforce development boards and
622      appropriate state agencies and local public and private service
623      providers, shall establish uniform performance accountability
624      measures that apply across the core programs to gauge the

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625       performance of the state and local workforce development boards
626       in achieving the workforce development strategy.
627               (a)       The performance accountability measures for the core
628       programs consist of the primary indicators of performance, any
629       additional indicators of performance, and a state-adjusted level
630       of performance for each indicator pursuant to Pub. L. No. 113-
631       128, Title I, s. 116(b).
632               (b)       The performance accountability measures for each local
633       area consist of the primary indicators of performance, any
634       additional indicators of performance, and a local level of
635       performance for each indicator pursuant to Pub. L. No. 113-128.
636       The local level of performance is determined by the local board,
637       the chief elected official, and the Governor pursuant to Pub. L.
638       No. 113-128, Title I, s. 116(c).
639               (c)       Performance accountability measures shall be used to
640       generate performance reports pursuant to Pub. L. No. 113-128,
641       Title I, s. 116(d).
642               (d)       The performance accountability measures of success
643       that are adopted by the state board CareerSource Florida, Inc.,
644       or the local workforce development boards must be developed in a
645       manner that provides for an equitable comparison of the relative
646       success or failure of any service provider in terms of positive
647       outcomes.
648               (10)       The workforce development strategy for the state
64 9      shall be designed by the state board, in consultation with the
650       department, and approved by the Governor CareerSource Florida,

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         PCS for HB 1271                                                                        2020




651      ±fie. The strategy must include efforts that enlist business,
652      education, and community support for students to achieve long-
653      term career goals, ensuring that young people have the academic
654      and occupational skills required to succeed in the workplace.
655      The strategy must also assist employers in upgrading or updating
656      the skills of their employees and assisting workers to acquire
657      the education or training needed to secure a better job with
658      better wages. The strategy must assist the state's efforts to
659      attract and expand job-creating businesses offering high-paying,
660      high-demand occupations.
661              (11)      The workforce development system must encourage use a
662      charter process approach aimed at encouraging local design and
663      control of service delivery and targeted activities. The state
664      board, in consultation with the department CareerSource Florida,
665      ±-ne-., is shall be responsible for ensuring that granting
666      charters to local workforce development boards -t-fla-t- have a
667      membership consistent with the requirements of federal and state
668      law and have developed a plan consistent with the state's
669      workforce development strategy. The plan must specify methods
670      for allocating the resources and programs in a manner that
671      eliminates unwarranted duplication, minimizes administrative
672      costs, meets the existing job market demands and the job market
673      demands resulting from successful economic development
674      activities, ensures access to quality workforce development
675      services for all Floridians, allows for pro rata or partial
676      distribution of benefits and services, prohibits the creation of

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         PCS for HB 1271                                                                        2020




677      a waiting list or other indication of an unserved population,
678      serves as many individuals as possible within available
679      resources, and maximizes successful outcomes. The state board As-
680      part of the charter process, CareerSource Florida, Inc., shall
681      establish incentives for effective coordination of federal and
682      state programs, outline rewards for successful job placements,
683      and institute collaborative approaches among local service
684      providers. Local decisionmaking and control shall be important
685      components for inclusion in this charter application.
686              (12)      CareerSource Florida, Inc., under the direction of
687      the state board, shall enter into agreement with Space Florida
688      and collaborate with vocational institutes, community colleges,
689      colleges, and universities in this state to develop a workforce
690      development strategy to implement the workforce provisions of s.
691      331. 3051.
692              (13)      The department may consult with the state board to
693      issue technical assistance letters on the operation of federal
694      programs and the expenditure of federal funds by the state board
695      or any local workforce development board. A technical assistance
696      letter must be in writing, must be posted on the department's
697      website, and remains in effect until superseded or terminated. A
698      technical assistance letter is not a rule of general
699      applicability under s. 120.54 and is not a declaratory statement
700      issued under s. 120.565 or an order issued under s. 120.569.
701      Section 120.53 does not apply to technical assistance letters.
702              Section 4.        Section 445.006, Florida Statutes, is amended

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         PCS for HB 1271                                                                             2020




703      to read:
704                   445.006    State plan for workforce development.-
705                   (1)    STATE PLAN.-The state board CareerSource Florida,
706      -I-fie-;-,    in conjunction with state and local partners in the
707      workforce system, shall develop a state plan that produces an
708      educated and skilled workforce. The state plan must consist of
709      strategic and operational planning elements. The state plan
710      shall be submitted by the Governor to the United States
711      Department of Labor pursuant to the requirements of Pub. L. No.
712      113-128.
713                   (2)    STRATEGIC PLANNING ELEMENTS.-The state board
714      CareerSource Florida, Inc., in conjunction with state and local
715      partners in the workforce system, shall develop strategic
716      planning elements, pursuant to Pub. L. No. 113-128, Title I, s.
717      102, for the state plan.
718                   (a)    The strategic planning elements of the state plan must
719      include, but need not be limited to, strategies for:
720                   1.    Fulfilling the workforce system goals and strategies
721      prescribed ins. 445.004;
722                   2.    Aggregating, integrating, and leveraging workforce
723      system resources;
724                   3.    Coordinating the activities of federal,                     state, and
725      local workforce system partners;
726                   4.    Addressing the workforce needs of small businesses; and
727                   5.    Fostering the participation of rural communities and
728      distressed urban cores in the workforce system.

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         PCS for HB 1271                                                                        2020




729              (b)       The strategic planning elements must include criteria
730      for allocating workforce resources to local workforce
731      development boards. With respect to allocating funds to serve
732      customers of the welfare transition program, such criteria may
733      include weighting factors that indicate the relative degree of
734      difficulty associated with securing and retaining employment
735      placements for specific subsets of the welfare transition
736      caseload.
737              (3)       OPERATIONAL PLANNING ELEMENTS.-The state board
738      CareerSource Florida, Inc., in conjunction with state and local
739      partners in the workforce system, shall develop operational
740      planning elements, pursuant to Pub. L. No. 113-128, Title I, s.
741      102, for the state plan.
742              Section 5.        Subsection (1), paragraph (b) of subsection
743       (2), and subsections            (3) through (7) and (9) through (13) of
744      section 445.007, Florida Statutes, are amended, and paragraph
745       (c) is added to subsection (2) of that section, to read:
746              445.007       Local workforce development boards.-
747              (1)       One local workforce development board shall be
748      appointed in each designated service delivery area and shall
749      serve as the local workforce development board pursuant to Pub.
750      L. No. 113-128. The membership of the local board must be
751      consistent with Pub. L. No. 113-128, Title I, s. 107(b). If a
752      public education or training provider is represented on the
753      local board, a representative of a private education provider
754      must also be appointed to the local board. The state board

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           PCS for HB 1271                                                                       2020




755        CareerSource Florida, Inc., may waive this requirement if
756        requested by a local workforce development board if it is
757        demonstrated that such representatives do not exist in the
758        region. The importance of minority and gender representation
759        shall be considered when making appointments to the local board.
760        The local board, its committees, subcommittees, and
761        subdivisions, and other units of the workforce system, including
762        units that may consist in whole or in part of local governmental
763        units, may use any method of telecommunications to conduct
764        meetings, including establishing a quorum through
765        telecommunications, provided that the public is given proper
766        notice of the telecommunications meeting and reasonable access
767        to observe and, when appropriate, participate. Local workforce
7 68       development boards are subject to chapters 119 and 286 ands.
769        24, Art. I of the State Constitution. If the local workforce
770        development board enters into a contract with an organization or
771        individual represented on the local board of directors, the
772        contract must be approved by a two-thirds vote of the local
773        board, a quorum having been established, and the local board
774        member who could benefit financially from the transaction must
775        abstain from voting on the contract. A local board member must
776        disclose any such conflict in a manner that is consistent with
777        the procedures outlined ins. 112.3143. Each member of a local
778        workforce development board who is not otherwise required to
779        file a full and public disclosure of financial interests under
780        pursuant to s. 8, Art. II of the State Constitution ors.

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          PCS for HB 1271                                                                        2020




781       112.3144 shall file a statement of financial interests under
782       pursuant to s. 112.3145. The executive director or designated
783       person responsible for the operational and administrative
784       functions of the local workforce development board who is not
785       otherwise required to file a full and public disclosure of
786       financial interests under pursuant to s. 8, Art. II of the State
787       Constitution ors. 112.3144 shall file a statement of financial
788       interests under pursuant to s. 112.3145.
789               (2)

790               (b)       The Governor may remove a member of the local board,
791       the executive director of the local board, or the designated
7 92      person responsible for the operational and administrative
793       functions of the local board for cause. As used in this
794       paragraph, the term "cause" includes, but is not limited to,
795       engaging in fraud or other criminal acts, incapacity, unfitness,
796       neglect of duty, official incompetence and irresponsibility,
797       misfeasance, malfeasance, nonfeasance, or lack of performance.
798               (c)       The chief elected official for the local workforce
799       development board may remove a member of the local board, the
800       executive director of the local board, or the designated person
801       responsible for the operational and administrative functions of
802       the local board for cause.
803               (3)       The department of Economic Opportunity, under the
804       direction of CareerSource Florida, Inc., shall assign staff to
805       meet with each local workforce development board annually to
806       review the local board's performance and to certify that the

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         PCS for HB 1271                                                                        2020




807      local board is in compliance with applicable state and federal
808      law.
809              ( 4)      In addition to the duties and functions specified by
810      the state board CareerSource Florida, Inc., and by the
811      interlocal agreement approved by the local county or city
812      governing bodies, the local workforce development board shall
813      have the following responsibilities:
814              (a)       Develop, submit, ratify, or amend the local plan
815      pursuant to Pub. L. No. 113-128, Title I, s. 108 and this act.
816              (b)       Conclude agreements necessary to designate the fiscal
817      agent and administrative entity. A public or private entity,
818      including an entity established under pursuant to s. 163.01,
819      which makes a majority of the appointments to a local workforce
820      development board may serve as the local board's administrative
821      entity if approved by the department CareerSource Florida, Inc.,
822      based upon a showing that a fair and competitive process was
823      used to select the administrative entity.
824              (c)       Complete assurances required for the charter process
825      of CareerSource Florida, Inc., and Provide ongoing oversight
826      related to administrative costs, duplicated services, career
827      counseling, economic development, equal access, compliance and
828      accountability, and performance outcomes.
829              (d)       Oversee the one-stop delivery system in its local
830      area.
831              (5)       The department, in conjunction with the state board
832      CareerSource Florida, Inc., shall implement a training program

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         PCS for HB 1271                                                                        2020




833      for the local workforce development boards to familiarize local
834      board members with the state's workforce development goals and
835      strategies.
836              (6)       The local workforce development board shall designate
837      all local service providers and may not transfer this authority
838      to a third party. Consistent with the intent of the Workforce
839      Innovation and Opportunity Act, local workforce development
840      boards should provide the greatest possible choice of training
841      providers to those who qualify for training services. A local
842      workforce development board may not restrict the choice of
843      training providers based upon cost, location, or historical
844      training arrangements. However, a local board may restrict the
845      amount of training resources available to any one client. Such
846      restrictions may vary based upon the cost of training in the
847      client's chosen occupational area. The local workforce
848      development board may be designated as a one-stop operator and
849      direct provider of intake, assessment, eligibility
850      determinations, or other direct provider services except
851      training services. Such designation may occur only with the
852      agreement of the chief elected official and the Governor as
853      specified in 29 U.S.C. s. 2832 (f) (2). The state board
854      CareerSource Florida, Inc., shall establish procedures by which
855      a local workforce development board may request permission to
856      operate under this section and the criteria under which such
857      permission may be granted. The criteria shall include, but need
858      not be limited to, a reduction in the cost of providing the

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          PCS for HB 1271                                                                        2020




859       permitted services. Such permission shall be granted for a
860       period not to exceed 3 years for any single request submitted by
861       the local workforce development board.
8 62              (7)       Local workforce development boards shall adopt a
863       committee structure consistent with applicable federal law and
8 64      state policies established by the state board CareerSource
865       Florida, Inc.
866               (9)       For purposes of procurement, local workforce
8 67      development boards and their administrative entities are not
868       state agencies and are exempt from chapters 120 and 287. The
869       local workforce development boards shall apply the procurement
870       and expenditure procedures required by federal law and policies
871       of the department of Economic Opportunity and the state board
872       CareerSource Florida, Inc., for the expenditure of federal,
873       state, and nonpass-through funds. The making or approval of
874       smaller, multiple payments for a single purchase with the intent
875       to avoid or evade the monetary thresholds and procedures
876       established by federal law and policies of the department~
877       Economic Opportunity and the state board CareerSource Florida,
878       Inc., is grounds for removal for cause. Local workforce
879       development boards, their administrative entities, committees,
880       and subcommittees, and other workforce units may authorize
881       expenditures to award suitable framed certificates, pins, or
882       other tokens of recognition for performance by units of the
883       workforce system. Local workforce development boards; their
884       administrative entities, committees, and subcommittees; and

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          PCS for HB 1271                                                                               2020




885       other workforce units may authorize expenditures for promotional
886       items, such as t-shirts, hats, or pens printed with messages
887       promoting Florida's workforce system to employers,                                 job seekers,
888       and program participants. However, such expenditures are subject
889       to federal regulations applicable to the expenditure of federal
890       funds. All contracts executed by local workforce development
891       boards must include specific performance expectations and
8 92      deliverables.
893               (10)      State and federal funds provided to the local
894       workforce development boards may not be used directly or
895       indirectly to pay for meals, food, or beverages for board
896       members, staff, or employees of local workforce development
897       boards, the state board CareerSource Florida, Inc., or the
898       department of Economic Opportunity except as expressly
899       authorized by state law. Preapproved, reasonable, and necessary
900       per diem allowances and travel expenses may be reimbursed. Such
901       reimbursement shall be at the standard travel reimbursement
902       rates established ins. 112.061 and shall be in compliance with
903       all applicable federal and state requirements. The department
904       shall provide fiscal and programmatic guidance CareerSource
905       Florida, Inc., shall develop a statewide fiscal policy
906       applicable to the state board, CareerSource Florida, Inc., and
907       all local workforce development boards, to hold both the state
908       and local workforce development boards strictly accountable for
909       adherence to the policy and subject to regular and periodic
910       monitoring by the department of Economic Opportunity, the

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         PCS for HB 1271                                                                        2020




911      administrative entity for CarccrSourcc Florida, Inc. Local
912      boards arc prohibited from expending state or federal funds for
913      entertainment costs and recreational activities for local board
914      members and employees as these terms are defined by 2 C.F.R.
915      part 200 ~ -
916              (11)      To increase transparency and accountability, a local
917      workforce development board must comply with the requirements of
918      this section before contracting with a member of the local board
919      or a relative, as defined ins. 112.3143(1) (c), of a local board
920      member or of an employee of the local board. Such contracts may
921      not be executed before or without the prior approval of the
922      department CarccrSourcc Florida, Inc. Such contracts, as well as
923      documentation demonstrating adherence to this section as
924      specified by the department CarccrSourcc Florida, Inc., must be
925      submitted to the department of Economic Opportunity for review
926      and approval recommendation according to criteria to be
927      determined by CarccrSourcc Florida, Inc. Such a contract must be
928      approved by a two-thirds vote of the local board, a quorum
929      having been established; all conflicts of interest must be
930      disclosed before the vote; and any member who may benefit from
931      the contract, or whose relative may benefit from the contract,
932      must abstain from the vote. A contract under $25,000 between a
933      local workforce development board and a member of that board or
934      between a relative, as defined in s. 112. 314 3 ( 1) ( c), of a local
935      board member or of an employee of the local board is not
936      required to have the prior approval of the department

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937       CareerSource Florida, Inc., but must be approved by a two-thirds
938       vote of the local board, a quorum having been established, and
939       must be reported to the department of Economic Opportunity and
940       the state board CareerSource Florida, Inc., within 30 days after
941       approval. If a contract cannot be approved by the department
942       CareerSource Florida, Inc., a review of the decision to
943       disapprove the contract may be requested by the local workforce
944       development board or other parties to the disapproved contract.
945               (12)       Each local workforce development board shall develop
94 6      a budget for the purpose of carrying out the duties of the local
947       board under this section, subject to the approval of the chief
948       elected official. Each local workforce development board shall
949       submit its annual budget for review to the department
950       CareerSource Florida, Inc., no later than 2 weeks after the
951       chair approves the budget.
952               (13)       By March 1, 2018, CareerSource Florida, Inc., shall
953       establish regional planning areas in accordance with Pub. L. No.
954       113 128, Title I, s. 106(a) (2). Local workforce developffient
955       boards and chief elected officials within identified regional
956       planning areas shall prepare a regional worlcforce developffient
957       plan as required under Pub. L. No. 113 128, Title I, o.
958       106(c) (2).
959               Section 6.        Subsections (1) and (4) of section 445.0071,
960       Florida Statutes, are amended to read:
961               445.0071         Florida Youth Summer Jobs Pilot Program.-
962               (1)       CREATION.-Contingent upon appropriations, there is

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          PCS for HB 1271                                                                        2020




963       created the Florida Youth Summer Jobs Pilot Program within
964       workforce development district 22 served by the Broward
965       Workforce Development Board. The board shall, in consultation
966       with the state board CarecrSourcc Florida, Inc., provide a
967       program offering at-risk and disadvantaged children summer jobs
968       in partnership with local communities and public employers.
969               (4)       GOVERNANCE.-
970               (a)       The pilot program shall be administered by the local
971       workforce development board in consultation with the state board
972       CarccrSourcc Florida, Inc.
973               (b)       The local workforce development board shall report to
974       the state board and the department CarccrSourcc Florida, Inc.,
975       the number of at-risk and disadvantaged children who enter the
976       program, the types of work activities they participate in, and
977       the number of children who return to school, go on to
978       postsecondary school, or enter the workforce full time at the
979       end of the program. The state board CarccrSourcc Florida, Inc.,
980       shall report to the Legislature by November 1 of each year on
981       the performance of the program.
982               Section 7.        Subsections (1) and (2) of section 445.008,
983       Florida Statutes, are amended to read:
984               445.008       Workforce Training Institute.-
985               (1)       The state board, through CareerSource Florida, Inc.,
98 6      may create the Workforce Training Institute, which shall be a
987       comprehensive program of workforce training courses designed to
988       meet the unique needs of, and shall include Internet-based

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          PCS for HB 1271                                                                             2020




 989      training modules suitable for and made available to,
 990      professionals integral to the workforce system, including
 991      advisors and counselors in educational institutions.
 992              (2)       The state board, through CareerSource Florida, Inc.,
 993      may enter into a contract for the provision of administrative
 994      support services for the institute and shall adopt policies for
 995      the administration and operation of the institute and establish
 996      admission fees in an amount which, in the aggregate, does not
 997      exceed the cost of the program. CareerSource Florida, Inc., may
 998      accept donations or grants of any type for any function or
 999      purpose of the institute. All donations and grants received by
1000      CareerSource Florida, Inc., must be reported to the state board
1001      and the department.
1002              Section 8.        Subsections ( 2) ,        ( 3) , and ( 4) , paragraph (b) of
1003      subsection (6), subsection (7), paragraphs (a),                               (c), and (d) of
1004      subsection (8), and subsection (9) of section 445.009, Florida
1005      Statutes, are amended to read:
1006              445.009       One-stop delivery system.-
1007              (2) (a)      Subject to a process designed by the state board
1008      CareerSource Florida, Inc., and in compliance with Pub. L. No.
1009      113-128, local workforce development boards shall designate one-
1010      stop delivery system operators.
1011              (b)       A local workforce development board may designate as
1012      its one-stop delivery system operator any public or private
1013      entity that is eligible to provide services under any state or
1014      federal workforce program that is a mandatory or discretionary

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1015      partner in the local workforce development area's one-stop
1016      delivery system if approved by the department CareerSource
1017      Florida, Inc., upon a showing by the local workforce development
1018      board that a fair and competitive process was used in the
1019      selection. As a condition of authorizing a local workforce
1020      development board to designate such an entity as its one-stop
1021      delivery system operator, the department CareerSource Florida,
1022      Inc., must require the local workforce development board to
1023      demonstrate that safeguards are in place to ensure that the one-
1024      stop delivery system operator will not exercise an unfair
1025      competitive advantage or unfairly refer or direct customers of
1026      the one-stop delivery system to services provided by that one-
1027      stop delivery system operator. A local workforce development
1028      board may retain its current one-stop career center operator
1029      without further procurement action if the local board has an
1030      established one-stop career center that has complied with
1031      federal and state law.
1032              (c)       The local workforce development board must enter into
1033      a memorandum of understanding with each mandatory or optional
1034      partner participating in the one-stop delivery system which
1035      details the partner's required contribution to infrastructure
1036      costs, as required by Pub. L. No. 113-128, s. 121(h). If the
1037      local worlcforce development board and the one stop partner are
1038      unable to come to an agreement regarding infrastructure costs by
1039      July 1, 2017, the costs shall be allocated pursuant to a policy
1040      established by the Governor.

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1041              (3)       Local workforce development boards shall enter into a
1042      memorandum of understanding with the department of Economic
1043      Opportunity for the delivery of employment services authorized
1044      by the federal Wagner-Peyser Act. This memorandum of
1045      understanding must be performance based.
1046              (a}       Unless otherwise required by federal law, at least 90
1047      percent of the Wagner-Peyser funding must go into direct
1048      customer service costs.
1049              (b}       Employment services must be provided through the one-
1050      stop delivery system, under the guidance of one-stop delivery
1051      system operators. One-stop delivery system operators shall have
1052      overall authority for directing the staff of the workforce
1053      system. Personnel matters shall remain under the ultimate
1054      authority of the department. However, the one-stop delivery
1055      system operator shall submit to the department information
1056      concerning the job performance of employees of the department
1057      who deliver employment services. The department shall consider
1058      any such information submitted by the one-stop delivery system
1059      operator in conducting performance appraisals of the employees.
1060              (c}       The department shall retain fiscal responsibility and
1061      accountability for the administration of funds allocated to the
1062      state under the Wagner-Peyser Act. An employee of the department
1063      who is providing services authorized under the Wagner-Peyser Act
1064      shall be paid using Wagner-Peyser Act funds.
1065              (4)       One-stop delivery system partners shall enter into a
1066      memorandum of understanding pursuant to Pub. L. No. 113-128,

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1067      Title I, s. 121, with the local workforce development board.
1068      Failure of a local partner to participate cannot unilaterally
1069      block the majority of partners from moving forward with their
1070      one-stop delivery system, and the state board, in conjunction
1071      with the department, may notify the Governor CarecrSource
1072      Florida, Inc., pursuant too. 445.004(5)(e), may make
1073      notification of a local partner that fails to participate.
1074              ( 6)

1075              (b)       To expand electronic capabilities, the state board and
1076      the department CareerSource Florida, Inc., working with local
1077      workforce development boards, shall develop a centralized help
1078      center to assist local workforce development boards in
1079      fulfilling core services, minimizing the need for fixed-site
1080      one-stop delivery system centers.
1081              (7)       Intensive services and training provided pursuant to
1082      Pub. L. No. 113-128 shall be provided to individuals through
1083      Intensive Service Accounts and Individual Training Accounts. The
1084      state board CarcerSource Florida, Inc., shall develop an
1085      implementation plan, including identification of initially
1086      eligible training providers, transition guidelines, and criteria
1087      for use of these accounts. Individual Training Accounts must be
1088      compatible with Individual Development Accounts for education
1089      allowed in federal and state welfare reform statutes.
1090              ( 8) ( a)    Individual Training Accounts must be expended on
1091      programs that prepare people to enter high-wage occupations
1092      identified by the Workforce Estimating Conference created bys.

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          PCS for HB 1271                                                                        2020




1093      216.136, and on other programs recommended by the state board
1094      and approved by the department as approved by CareerSource
1095      Florida, Inc.
1096              (c)       The department CareerSource Florida, Inc., shall
1097      periodically review Individual Training Account pricing
1098      schedules developed by local workforce development boards and
1099      present findings and recommendations for process improvement to
1100      the President of the Senate and the Speaker of the House of
1101      Representatives.
1102              (d)       To the maximum extent possible, training providers
1103      shall use funding sources other than the funding provided under
1104      Pub. L. No. 113-128. The state board CareerSource Florida, Inc.,
1105      shall develop a system to encourage the leveraging of
1106      appropriated resources for the workforce system and shall report
1107      on such efforts as part of the required annual report.
1108              (9) (a)      The state board CareerSource Florida, Inc., working
1109      with the department, shall coordinate among the agencies a plan
1110      for a One-Stop Electronic Network made up of one-stop delivery
1111      system centers and other partner agencies that are operated by
1112      authorized public or private for-profit or not-for-profit
1113      agents. The plan shall identify resources within existing
1114      revenues to establish and support this electronic network for
1115      service delivery that includes Government Services Direct. If
1116      necessary, the plan shall identify additional funding needed to
1117      achieve the provisions of this subsection.
1118              (b)       The network shall assure that a uniform method is used

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          PCS for HB 1271                                                                        2020




1119      to determine eligibility for and management of services provided
1120      by agencies that conduct workforce development activities. The
1121      Department of Management Services shall develop strategies to
1122      allow access to the databases and information management systems
1123      of the following systems in order to link information in those
1124      databases with the one-stop delivery system:
1125              1.    The Reemployment Assistance Program under chapter 443.
1126              2.    The public employment service described ins. 443.181.
1127              3.    The public assistance information system used by the
1128      Department of Children and Families and the components related
1129      to temporary cash assistance, food assistance, and Medicaid
1130      eligibility.
1131              4.    The Student Financial Assistance System of the
1132      Department of Education.
1133              5.    Enrollment in the public postsecondary education
1134      system.
1135              6.    Other information systems determined appropriate by the
1136      state board, in consultation with the department CareerSource
1137      Florida, Inc.
1138              Section 9.        Section 445.011, Florida Statutes, is amended
1139      to read:
1140              445.011      Workforce information systems.-
1141              (1)       The department, in consultation with the state board
1142      CareerSource Florida, Inc., shall implement, subject to
1143      legislative appropriation, automated information systems that
1144      are necessary for the efficient and effective operation and

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          PCS for HB 1271                                                                        2020




1145      management of the workforce development system. These
1146      information systems shall include, but need not be limited to,
1147      the following:
1148              (a)       An integrated management system for the one-stop
1149      service delivery system, which includes, at a minimum, common
1150      registration and intake, screening for needs and benefits, case
1151      planning and tracking, training benefits management, service and
1152      training provider management, performance reporting, executive
1153      information and reporting, and customer-satisfaction tracking
1154      and reporting.
1155              1.    The system should report current budgeting,
1156      expenditure, and performance information for assessing
1157      performance related to outcomes, service delivery, and financial
1158      administration for workforce programs pursuant to s. 445.004(5)
1159      and (9).
1160              2.    The information system should include auditable systems
1161      and controls to ensure financial integrity and valid and
1162      reliable performance information.
1163              3.    The system should support service integration and case
1164      management by providing for case tracking for participants in
1165      welfare transition programs.
1166              (b)       An automated job-matching information system that is
1167      accessible to employers, job seekers, and other users via the
1168      Internet, and that includes, at a minimum:
1169              1.    Skill match information, including skill gap analysis;
1170      resume creation; job order creation; skill tests; job search by

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          PCS for HB 1271                                                                        2020




1171      area, employer type, and employer name; and training provider
1172      linkage;
1173              2.    Job market information based on surveys, including
1174      local, state, regional, national, and international occupational
1175      and job availability information; and
1176              3.    Service provider information, including education and
1177      training providers, child care facilities and related
1178      information, health and social service agencies, and other
1179      providers of services that would be useful to job seekers.
1180              (2)       The department In procuring workforce information
1181      systems, CareerSource Florida, Inc., shall employ competitive
1182      processes, including requests for proposals, competitive
1183      negotiation, and other competitive processes to ensure that the
1184      procurement results in the most cost effective investment of
1185      state funds.
1186              (3)       CareerSource Florida, Inc., may procure independent
1187      verification and validation services associated with developing
1188      and implementing any workforce information system.
1189             _lll-f-4+     The department CarecrSource Florida, Inc., shall
1190      coordinate development and implementation of workforce
1191      information systems with the state chief information officer to
1192      ensure compatibility with the state's information system
1193      strategy and enterprise architecture.
1194              Section 10.          Subsections (1) and (3) of section 445.014,
1195      Florida Statutes, are amended to read:
1196              445.014       Small business workforce service initiative.-

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          PCS for HB 1271                                                                        2020




1197              (1)       Subject to legislative appropriation, the state board
1198      CareerSource Florida, Inc., shall establish a program to
1199      encourage local workforce development boards to establish one-
1200      stop delivery systems that maximize the provision of workforce
1201      and human-resource support services to small businesses. Under
1202      the program, a local workforce development board may apply, on a
1203      competitive basis, for funds to support the provision of such
1204      services to small businesses through the local workforce
1205      development area's one-stop delivery system.
1206              (3)       The state board CareerSource Florida, Inc., shall
1207      establish guidelines governing the administration of this
1208      program and shall establish criteria to be used in evaluating
1209      applications for funding. Such criteria must include, but need
1210      not be limited to, a showing that the local workforce
1211      development board has in place a detailed plan for establishing
1212      a one-stop delivery system designed to meet the workforce needs
1213      of small businesses and for leveraging other funding sources in
1214      support of such activities.
1215              Section 11.          Paragraphs (b) ,       ( c) , and ( d) of subsection ( 2)
1216      and subsection (4) of section 445.021, Florida Statutes, are
1217      amended to read:
1218              445.021       Relocation assistance program.-
1219              (2)       The relocation assistance program shall involve five
1220      steps by the local workforce development board, in cooperation
1221      with the Department of Children and Families:
1222              (b)       A determination that there is a basis for believing

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          PCS for HB 1271                                                                        2020




1223      that relocation will contribute to the ability of the applicant
1224      to achieve self-sufficiency. For example, the applicant:
1225              1.    Is unlikely to achieve economic self-sufficiency at the
1226      current community of residence;
1227              2.    Has secured a job that provides an increased salary or
1228      improved benefits and that requires relocation to another
1229      community;
1230              3.    Has a family support network that will contribute to
1231      job retention in another community;
1232              4.    Is determined, pursuant to criteria or procedures
1233      established by the state board of directors of CareerSource
1234      Florida, Inc., to be a victim of domestic violence who would
1235      experience reduced probability of further incidents through
1236      relocation; or
1237              5.    Must relocate in order to receive education or training
1238      that is directly related to the applicant's employment or career
1239      advancement.
1240              (c}       Establishment of a relocation plan that includes such
1241      requirements as are necessary to prevent abuse of the benefit
1242      and provisions to protect the safety of victims of domestic
1243      violence and avoid provisions that place them in anticipated
1244      danger. The payment to defray relocation expenses shall be
1245      determined based on criteria approved by the state board e-t-
1246      directors of CareerSource Florida, Inc. Participants in the
1247      relocation program shall be eligible for diversion or
1248      transitional benefits.

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1249              (d)       A determination, pursuant to criteria adopted by the
1250      state board of directors of CareerSource Florida, Inc., that a
1251      community receiving a relocated family has the capacity to
1252      provide needed services and employment opportunities.
1253              (4)       The state board of directors of CareerSource Florida,
1254      Inc., may establish criteria for developing and implementing
1255      relocation plans and for drafting agreements to restrict a
1256      family from applying for temporary cash assistance for a
1257      specified period after receiving a relocation assistance
1258      payment.
1259              Section 12.          Section 445.022, Florida Statutes, is amended
1260      to read:
1261              445.022       Retention Incentive Training Accounts.-To promote
1262      job retention and to enable upward job advancement into higher
1263      skilled, higher paying employment, the state board of directors
1264      of CareerSource Florida, Inc., and the local workforce
1265      development boards may assemble a list of programs and courses
1266      offered by postsecondary educational institutions which may be
1267      available to participants who have become employed to promote
1268      job retention and advancement.
1269              (1)       The state board of directors of CareerSource Florida,
1270      Inc., may establish Retention Incentive Training Accounts
1271      (RITAs) to use Temporary Assistance to Needy Families (TANF)
1272      block grant funds specifically appropriated for this purpose.
1273      RITAs must complement the Individual Training Account required
1274      by the federal Workforce Innovation and Opportunity Act, Pub. L.

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          PCS for HB 1271                                                                        2020




1275      No. 113-128.
1276              (2)       RITAs may pay for tuition, fees, educational
1277      materials, coaching and mentoring, performance incentives,
1278      transportation to and from courses, child care costs during
1279      education courses, and other such costs as the local workforce
1280      development boards determine are necessary to effect successful
1281      job retention and advancement.
1282              (3)       Local workforce development boards shall retain only
1283      those courses that continue to meet their performance standards
1284      as established in their local plan.
1285              (4)       Local workforce development boards shall report
1286      annually to the Legislature on the measurable retention and
1287      advancement success of each program provider and the
1288      effectiveness of RITAs, making recommendations for any needed
1289      changes or modifications.
1290              Section 13.          Paragraph (e) of subsection (5) of section
1291      445.024, Florida Statutes, is amended to read:
1292              445.024       Work requirements.-
1293              (5)       USE OF CONTRACTS.-Local workforce development boards
1294      shall provide work activities, training, and other services, as
1295      appropriate, through contracts. In contracting for work
1296      activities, training, or services, the following applies:
1297              (e)       The administrative costs associated with a contract
1298      for services provided under this section may not exceed the
1299      applicable administrative cost ceiling established in federal
1300      law. An agency or entity that is awarded a contract under this

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          PCS for HB 1271                                                                        2020




1301      section may not charge more than 7 percent of the value of the
1302      contract for administration unless an exception is approved by
1303      the local workforce development board. A list of any exceptions
1304      approved must be submitted to the state board of directors of
1305      CareerSource Florida, Inc., for review, and the state board may
1306      rescind approval of the exception.
1307              Section 14.          Subsection (6) of section 445.026, Florida
1308      Statutes, is amended to read:
1309              445.026       Cash assistance severance benefit.-An individual
1310      who meets the criteria listed in this section may choose to
1311      receive a lump-sum payment in lieu of ongoing cash assistance
1312      payments, provided the individual:
1313              ( 6)      Signs an agreement not to apply for or accept cash
1314      assistance for 6 months after receipt of the one-time payment.
1315      In the event of an emergency, such agreement shall provide for
1316      an exception to this restriction, provided that the one-time
1317      payment shall be deducted from any cash assistance for which the
1318      family subsequently is approved. This deduction may be prorated
1319      over an 8-month period. The state board of directors of
1320      CareerSource Florida, Inc., shall adopt criteria defining the
1321      conditions under which a family may receive cash assistance due
1322      to such emergency.
1323
1324      Such individual may choose to accept a one-time, lump-sum
1325      payment of $1,000 in lieu of receiving ongoing cash assistance.
1326      Such payment shall only count toward the time limitation for the

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          PCS for HB 1271                                                                        2020




1327      month in which the payment is made in lieu of cash assistance. A
1328      participant choosing to accept such payment shall be terminated
1329      from cash assistance. However, eligibility for Medicaid, food
1330      assistance, or child care shall continue, subject to the
1331      eligibility requirements of those programs.
1332              Section 15.          Section 445.028, Florida Statutes, is amended
1333      to read:
1334              445.028       Transitional benefits and services.-In cooperation
1335      with the department CareerSource Florida, Inc., the Department
1336      of Children and Families shall develop procedures to ensure that
1337      families leaving the temporary cash assistance program receive
1338      transitional benefits and services that will assist the family
1339      in moving toward self-sufficiency. At a minimum, such procedures
1340      must include, but are not limited to, the following:
1341              (1)       Each recipient of cash assistance who is determined
1342      ineligible for cash assistance for a reason other than a work
1343      activity sanction shall be contacted by the workforce system
1344      case manager and provided information about the availability of
1345      transitional benefits and services. Such contact shall be
1346      attempted prior to closure of the case management file.
1347              (2)       Each recipient of temporary cash assistance who is
1348      determined ineligible for cash assistance due to noncompliance
1349      with the work activity requirements shall be contacted and
1350      provided information in accordance withs. 414.065(1).
1351              (3)       The department, in consultation with the state board
1352      of directors of CareerSource Florida, Inc., shall develop

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          PCS for HB 1271                                                                        2020




1353      informational material, including posters and brochures, to
1354      better inform families about the availability of transitional
1355      benefits and services.
1356              (4)       The department CareerSource Florida, Inc., in
1357      cooperation with the Department of Children and FamiliesL shall,
1358      to the extent permitted by federal law, develop procedures to
1359      maximize the utilization of transitional Medicaid by families
1360      who leave the temporary cash assistance program.
1361              Section 16.          Section 445.030, Florida Statutes, is amended
1362      to read:
1363              445.030       Transitional education and training.-In order to
1364      assist former recipients of temporary cash assistance who are
1365      working or actively seeking employment in continuing their
1366      training and upgrading their skills, education, or training,
1367      support services may be provided for up to 2 years after the
1368      family is no longer receiving temporary cash assistance. This
1369      section does not constitute an entitlement to transitional
1370      education and training. If funds are not sufficient to provide
1371      services under this section, the state board of directors of
1372      CareerSource Florida, Inc., may limit or otherwise prioritize
1373      transitional education and training.
1374              (1)       Education or training resources available in the
1375      community at no additional cost shall be used whenever possible.
1376              (2)       Local workforce development boards may authorize child
1377      care or other support services in addition to services provided
1378      in conjunction with employment. For example, a participant who

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          PCS for HB 1271                                                                        2020




1379      is employed full time may receive child care services related to
1380      that employment and may also receive additional child care
1381      services in conjunction with training to upgrade the
1382      participant's skills.
1383              (3)       Transitional education or training must be job-
1384      related, but may include training to improve job skills in a
1385      participant's existing area of employment or may include
1386      training to prepare a participant for employment in another
1387      occupation.
1388              (4)       A local workforce development board may enter into an
1389      agreement with an employer to share the costs relating to
1390      upgrading the skills of participants hired by the employer. For
1391      example, a local workforce development board may agree to
1392      provide support services such as transportation or a wage
1393      subsidy in conjunction with training opportunities provided by
1394      the employer.
1395              Section 17.          Section 445.033, Florida Statutes, is amended
1396      to read:
1397              445.033       Evaluation.-The state board of directors of
1398      CareerSource Florida, Inc., and the Department of Children and
1399      Families shall arrange for evaluation of TANF-funded programs
1400      operated under this chapter, as follows:
1401              (1)       If required by federal waivers or other federal
1402      requirements, the state board of directors of CareerSource
1403      Florida, Inc., and the department may provide for evaluation
1404      according to these requirements.

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           PCS for HB 1271                                                                       2020




1405               (2)       The state board of directors of CareerSource Florida,
1406       Inc., and the department shall participate in the evaluation of
1407       this program in conjunction with evaluation of the state's
1408       workforce development programs or similar activities aimed at
1409       evaluating program outcomes, cost-effectiveness, or return on
1410       investment, and the impact of time limits, sanctions, and other
1411       welfare reform measures set out in this chapter. Evaluation
1412       shall also contain information on the number of participants in
1413       work experience assignments who obtain unsubsidized employment,
1414       including, but not limited to, the length of time the
1415       unsubsidized job is retained, wages, and the public benefits, if
1416       any, received by such families while in unsubsidized employment.
1417       The evaluation must solicit the input of consumers, community-
1418       based organizations, service providers, employers, and the
1419       general public, and must publicize, especially in low-income
1420       communities, the process for submitting comments.
1421               (3)       The state board of directors of CareerSource Florida,
1422       Inc., and the department may share information with and develop
1423       protocols for information exchange with the Florida Education
1424       and Training Placement Information Program.
1425               (4)       The state board of directors of CareerSource Florida,
1426       Inc.,    and the department may initiate or participate in
1427       additional evaluation or assessment activities that will further
1428       the systematic study of issues related to program goals and
1429       outcomes.
1430               (5)       In providing for evaluation activities, the state

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          PCS for HB 1271                                                                        2020




1431      board of directors of CareerSource Florida, Inc., and the
1432      department shall safeguard the use or disclosure of information
1433      obtained from program participants consistent with federal or
1434      state requirements. Evaluation methodologies may be used which
1435      are appropriate for evaluation of program activities, including
1436      random assignment of recipients or participants into program
1437      groups or control groups. To the extent necessary or
1438      appropriate, evaluation data shall provide information with
1439      respect to the state, district, or county, or other substate
1440      area.
1441              (6)       The state board of directors of CareerSource Florida,
1442      Inc., and the department may contract with a qualified
1443      organization for evaluations conducted under this section.
1444              Section 18.          Section 445.035, Florida Statutes, is amended
1445      to read:
1446              445.035       Data collection and reporting.-The Department of
1447      Children and Families and the state board of directors of
1448      CareerSource Florida, Inc., shall collect data necessary to
1449      administer this chapter and make the reports required under
1450      federal law to the United States Department of Health and Human
1451      Services and the United States Department of Agriculture.
1452              Section 19.          Subsections (1),         (2), and (3), paragraph (b)
1453      of subsection (4), and subsection (5) of section 445.048,
1454      Florida Statutes, are amended to read:
1455              445.048       Passport to Economic Progress program.-
1456              (1)       AUTHORIZATION.-Notwithstanding any law to the

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1457      contrary, the state board CareerSource Florida, Inc., in
1458      conjunction with the department and the Department of Children
1459      and Families and the Department of Economic Opportunity, shall
1460      implement a Passport to Economic Progress program consistent
1461      with this section. The state board CareerSource Florida, Inc.,
1462      may designate local workforce development boards to participate
1463      in the program. Expenses for the program may come from
1464      appropriated revenues or from funds otherwise available to a
1465      local workforce development board which may be legally used for
1466      such purposes. The state board CareerSource Florida, Inc., must
1467      consult with the applicable local workforce development boards
1468      and the applicable local offices of the Department of Children
1469      and Families which serve the program .areas and must encourage
1470      community input into the implementation process.
1471                 (2)    WAIVERS.-If the state board CareerSource Florida,
1472      -I-ne-.,   in consultation with the Department of Children and
1473      Families, finds that federal waivers would facilitate
1474      implementation of the program, the department shall immediately
1475      request such waivers, and the state board CareerSource Florida,
1476      Inc., shall report to the Governor, the President of the Senate,
1477      and the Speaker of the House of Representatives if any refusal
1478      of the federal government to grant such waivers prevents the
1479      implementation of the program. If the state board CareerSource
1480      Florida, Inc., finds that federal waivers to provisions of the
1481      Food Assistance Program would facilitate implementation of the
1482      program, the Department of Children and Families shall

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1483       immediately request such waivers in accordance withs. 414.175.
1484               (3)       TRANSITIONAL BENEFITS AND SERVICES.-In order to assist
1485       them in making the transition to economic self-sufficiency,
1486       former recipients of temporary cash assistance participating in
1487       the passport program shall be eligible for the following
1488       benefits and services:
1489               (a)       Notwithstanding the time period specified ins.
1490       445.030, transitional education and training support services as
1491       specified ins. 445.030 for up to 4 years after the family is no
1492       longer receiving temporary cash assistance;
1493               (b)       Notwithstanding the time period specified ins.
14 94      445.031, transitional transportation support services as
1495       specified ins. 445.031 for up to 4 years after the family is no
1496       longer receiving temporary cash assistance; and
14 97              (c)       Notwithstanding the time period specified ins.
1498       445.032, transitional child care as specified ins. 445.032 for
1499       up to 4 years after the family is no longer receiving temporary
1500       cash assistance.
1501
1502       All other provisions of ss. 445.030, 445.031, and 445.032 apply
1503       to such individuals, as appropriate. This subsection does not
1504       constitute an entitlement to transitional benefits and services.
1505       If funds are insufficient to provide benefits and services under
1506       this subsection, the state board of directors of CareerSource
1507       Florida, Inc., or its agent, may limit such benefits and
1508       services or otherwise establish priorities for the provisions of

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1509      such benefits and services.
1510              ( 4)      INCENTIVES TO ECONOMIC SELF-SUFFICIENCY.-
1511              (b)       The state board CareerSource Florida, Inc., in
1512      cooperation with the department and the Department of Children
1513      and Families and the Department of Economic Opportunity, shall
1514      offer performance-based incentive bonuses as a component of the
1515      Passport to Economic Progress program. The bonuses do not
1516      represent a program entitlement and are contingent on achieving
1517      specific benchmarks prescribed in the self-sufficiency plan. If
1518      the funds appropriated for this purpose are insufficient to
1519      provide this financial incentive, the state board of directors
1520      of CareerSource Florida, Inc., may reduce or suspend the bonuses
1521      in order not to exceed the appropriation or may direct the local
1522      workforce development boards to use resources otherwise given to
1523      the local workforce development board to pay such bonuses if
1524      such payments comply with applicable state and federal laws.
1525              (5)       EVALUATIONS AND RECOMMENDATIONS.-The state board
1526      CareerSource Florida, Inc., in conjunction with the department,
1527      the Department of Children and Families, the Department of
1528      Economic Opportunity, and the local workforce development
1529      boards, shall conduct a comprehensive evaluation of the
1530      effectiveness of the program operated under this section.
1531      Evaluations and recommendations for the program shall be
1532      submitted by the state board CareerSource Florida, Inc., as part
1533      of its annual report to the Legislature.
1534              Section 2 0.         Subsections ( 6) ,       ( 8) , and ( 13) of section

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          PCS for HB 1271                                                                        2020




1535      445.051, Florida Statutes, are amended to read:
1536              445.051       Individual development accounts.-
1537              (6)       The state board CareerSource Florida, Inc., shall
1538      establish procedures for local workforce development boards to
1539      include in their annual program and financial plan an
1540      application to offer an individual development account program
1541      as part of their TANF allocation. These procedures must include,
1542      but need not be limited to, administrative costs permitted for
1543      the fiduciary organization and policies relative to identifying
1544      the match ratio and limits on the deposits for which the match
1545      will be provided in the application process. The state board
1546      CareerSource Florida, Inc., shall establish policies and
1547      procedures necessary to ensure that funds held in an individual
1548      development account are not withdrawn except for one or more of
1549      the qualified purposes described in this section.
1550              (8)       The state board CareerSource Florida, Inc., shall
1551      establish procedures for controlling the withdrawal of funds for
1552      uses other than qualified purposes, including specifying
1553      conditions under which an account must be closed.
1554              (13)       Pursuant to policy direction by the state board
1555      CareerSource Florida, Inc., the department of Economic
1556      Opportunity shall adopt such rules as are necessary to implement
1557      this act.
1558              Section 21.          Subsection (2) of section 445.055, Florida
1559      Statutes, is amended to read:
1560              445.055       Employment advocacy and assistance program

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1561      targeting military spouses and dependents.-
1562              (2)       The state board CareerSource Florida, Inc., shall
1563      establish an employment advocacy and assistance program
1564      targeting military spouses and dependents. This program shall
1565      deliver employment assistance services through military family
1566      employment advocates colocated within selected one-stop career
1567      centers. Persons eligible for assistance through this program
1568      include spouses and dependents of active duty military
1569      personnel, Florida National Guard members, and military
1570      reservists.
1571              Section 22.          Paragraph (p) of subsection (3) of section
1572      11.45, Florida Statutes, is amended to read:
1573              11.45       Definitions; duties; authorities; reports; rules.-
1574              (3)       AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.-The
1575      Auditor General may, pursuant to his or her own authority, or at
1576      the direction of the Legislative Auditing Committee, conduct
1577      audits or other engagements as determined appropriate by the
1578      Auditor General of:
1579              (p)       CareerSource Florida, Inc., the state board as defined
1580      ins. 445.002, or the programs or entities created by the state
1581      board under CareerSource Florida, Inc., created pursuant to s.
1582      445.004.
1583              Section 23.          Paragraph (a) of subsection (5) of section
1584      288.901, Florida Statutes, is amended to read:
1585              288.901       Enterprise Florida, Inc.-
1586              (5)       APPOINTED MEMBERS OF THE BOARD OF DIRECTORS.-

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          PCS for HB 1271                                                                        2020




1587              (a)       In addition to the Governor or his or her designee,
1588      the board of directors shall consist of the following appointed
1589      members:
1590              1.    The Commissioner of Education or his or her designee.
1591              2.    The Chief Financial Officer or his or her designee.
1592              3.    The Attorney General or his or her designee.
1593              4.    The Commissioner of Agriculture or his or her designee.
1594              5.    The chairperson of the state board as defined ins.
1595      445.002 board of directors of CareerSource Florida, Inc.
1596              6.    The Secretary of State or his or her designee.
1597              7.    Twelve members from the private sector, six of whom
1598      shall be appointed by the Governor, three of whom shall be
1599      appointed by the President of the Senate, and three of whom
1600      shall be appointed by the Speaker of the House of
1601      Representatives. Members appointed by the Governor are subject
1602      to Senate confirmation.
1603
1604      All board members shall serve without compensation, but are
1605      entitled to receive reimbursement for per diem and travel
1606      expenses pursuant to s. 112.061. Such expenses must be paid out
1607      of funds of Enterprise Florida, Inc.
1608              Section 24.          Subsection (5) of section 331.369, Florida
1609      Statutes, is amended to read:
1610              331.369       Space Industry Workforce Initiative.-
1611              (5)       The state board as defined ins. 445.002 CareerSource
1612      Florida, Inc., as part of its statutorily prescribed annual

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          PCS for HB 1271                                                                        2020




1613      report to the Legislature, shall provide recommendations for
1614      policies, programs, and funding to enhance the workforce needs
1615      of the aerospace industry.
1616              Section 25.          Paragraph (k) of subsection (1) and subsection
1617      (9) of section 413.405, Florida Statutes, are amended to read:
1618              413.405       Florida Rehabilitation Council.-There is created
1619      the Florida Rehabilitation Council to assist the division in the
1620      planning and development of statewide rehabilitation programs
1621      and services, to recommend improvements to such programs and
1622      services, and to perform the functions listed in this section.
1623              (1)       The council shall be composed of:
1624              (k)       At least one representative of the state board as
1625      defined ins. 445.002 board of directors of CareerSource
1626      Florida, Inc.
1627              (9)       In addition to the other functions specified in this
1628      section, the council shall, after consulting with the state
1629      board as defined ins. 445.002 board of directors of
1630      CareerSource Florida, Inc.:
1631              (a)       Review, analyze, and advise the division regarding the
1632      performance of the responsibilities of the division under Title
1633      I of the act, particularly responsibilities relating to:
1634              1.    Eligibility, including order of selection.
1635              2.    The extent, scope, and effectiveness of services
1636      provided.
1637              3.    Functions performed by state agencies which affect or
1638      potentially affect the ability of individuals with disabilities

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          PCS for HB 1271                                                                        2020




1639      to achieve employment outcomes under Title I.
1640              (b)       In partnership with the division:
1641              1.    Develop, agree to, and review state goals and
1642      priorities in accordance with 34 C.F.R. s. 361.29(c); and
1643              2.    Evaluate the effectiveness of the vocational
1644      rehabilitation program and submit reports of progress to the
1645      Governor, the President of the Senate, the Speaker of the House
1646      of Representatives, and the United States Secretary of Education
1647      in accordance with 34 C.F.R. s. 361.29(e).
1648              (c)       Advise the department and the division and assist in
1649      the preparation of the state plan and amendments to the plan,
1650      applications, reports, needs assessments, and evaluations
1651      required by Title I.
1652              (d)       To the extent feasible, conduct a review and analysis
1653      of the effectiveness of, and consumer satisfaction with:
1654              1.    The functions performed by state agencies and other
1655      public and private entities responsible for performing functions
1656      for individuals who have disabilities.
1657              2.    Vocational rehabilitation services:
1658              a.    Provided or paid for from funds made available under
1659      the act or through other public or private sources.
1660              b.    Provided by state agencies and other public and private
1661      entities responsible for providing vocational rehabilitation
1662      services to individuals who have disabilities.
1663              3.    The employment outcomes achieved by eligible
1664      individuals receiving services under this part, including the

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1665      availability of health or other employment benefits in
1666      connection with those employment outcomes.
1667              (e)       Prepare and submit an annual report on the status of
1668      vocational rehabilitation programs in the state to the Governor,
1669      the President of the Senate, the Speaker of the House of
1670      Representatives, and the United States Secretary of Education
1671      and make the report available to the public.
1672              (f)       Coordinate with other councils within Florida,
1673      including the Florida Independent Living Council, the advisory
1674      panel established under s. 612(a) (21) of the Individuals with
1675      Disabilities Education Act, 20 U.S.C. s. 1412(a) (21), the State
1676      Planning Council described ins. 124 of the Developmental
1677      Disabilities Assistance and Bill of Rights Act, 42 U.S.C. s.
1678      15024, the state mental health planning council established
1679      under s. 1914 of the Public Health Service Act, 42 U.S.C. s.
1680      300x-3, and the state board as defined ins. 445.002 board of
1681      directors of CareerSource Florida, Inc.
1682              (g)       Advise the department and division and provide for
1683      coordination and the establishment of working relationships
1684      among the department, the division, the Florida Independent
1685      Living Council, and centers for independent living in the state.
1686              (h)       Perform other functions that are consistent with the
1687      duties and responsibilities of the council under this section.
1688              Section 26.          Section 414.045, Florida Statutes, is amended
1689      to read:
1690              414.045       Cash assistance program.-Cash assistance families

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          PCS for HB 1271                                                                        2020




1691      include any families receiving cash assistance payments from the
1692      state program for temporary assistance for needy families as
1693      defined in federal law, whether such funds are from federal
1694      funds, state funds, or commingled federal and state funds. Cash
1695      assistance families may also include families receiving cash
1696      assistance through a program defined as a separate state
1697      program.
1698              (1)       For reporting purposes, families receiving cash
1699      assistance shall be grouped into the following categories. The
1700      department may develop additional groupings in order to comply
1701      with federal reporting requirements, to comply with the data-
1702      reporting needs of the state board as defined ins. 445.002
1703      board of directors of CareerSource Florida, Inc., or to better
1704      inform the public of program progress.
1705              (a)       Work-eligible cases.-Work-eligible cases shall
1706      include:
1707              1.    Families containing an adult or a teen head of
1708      household, as defined by federal law. These cases are generally
1709      subject to the work activity requirements provided ins. 445.024
1710      and the time limitations on benefits provided ins. 414.105.
1711              2.    Families with a parent where the parent's needs have
1712      been removed from the case due to sanction or disqualification
1713      shall be considered work-eligible cases to the extent that such
1714      cases are considered in the calculation of federal participation
1715      rates or would be counted in such calculation in future months.
1716              3.    Families participating in transition assistance

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          PCS for HB 1271                                                                        2020




1717      programs.
1718              4.    Families otherwise eligible for temporary cash
1719      assistance which receive diversion services, a severance
1720      payment, or participate in the relocation program.
1721              (b)       Child-only cases.-Child-only cases include cases that
1722      do not have an adult or teen head of household as defined in
1723      federal law. Such cases include:
1724              1.    Children in the care of caretaker relatives, if the
1725      caretaker relatives choose to have their needs excluded in the
1726      calculation of the amount of cash assistance.
1727              2.    Families in the Relative Caregiver Program as provided
1728      ins. 39.5085.
1729              3.    Families in which the only parent in a single-parent
1730      family or both parents in a two-parent family receive
1731      supplemental security income (SSI) benefits under Title XVI of
1732      the Social Security Act, as amended. To the extent permitted by
1733      federal law, individuals receiving SSI shall be excluded as
1734      household members in determining the amount of cash assistance,
1735      and such cases shall not be considered families containing an
1736      adult. Parents or caretaker relatives who are excluded from the
1737      cash assistance group due to receipt of SSI may choose to
1738      participate in work activities. An individual whose ability to
1739      participate in work activities is limited who volunteers to
1740      participate in work activities shall be assigned to work
1741      activities consistent with such limitations. An individual who
1742      volunteers to participate in a work activity may receive child

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          PCS for HB 1271                                                                        2020




1743      care or support services consistent with such participation.
1744              4.    Families in which the only parent in a single-parent
1745      family or both parents in a two-parent family are not eligible
1746      for cash assistance due to immigration status or other
1747      limitation of federal law. To the extent required by federal
1748      law, such cases shall not be considered families containing an
1749      adult.
1750              5.    To the extent permitted by federal law and subject to
1751      appropriations, special needs children who have been adopted
1752      pursuant to s. 409.166 and whose adopting family qualifies as a
1753      needy family under the state program for temporary assistance
1754      for needy families. Notwithstanding any provision to the
1755      contrary ins. 414.075, s. 414.085, ors. 414.095, a family
1756      shall be considered a needy family if:
1757              a.    The family is determined by the department to have an
1758      income below 200 percent of the federal poverty level;
1759              b.    The family meets the requirements of s. 414.095(2) and
1760       (3) related to residence, citizenship, or eligible noncitizen
1761      status; and
1762              c.    The family provides any information that may be
1763      necessary to meet federal reporting requirements specified under
1764      Part A of Title IV of the Social Security Act.
1765              6.    Families in the Guardianship Assistance Program as
1766      provided ins. 39.6225.
1767
1768      Families described in subparagraph 1., subparagraph 2., or

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           PCS for HB 1271                                                                        2020




1769       subparagraph 3. may receive child care assistance or other
1770       supports or services so that the children may continue to be
1771       cared for in their own homes or in the homes of relatives. Such
1772       assistance or services may be funded from the temporary
1773       assistance for needy families block grant to the extent
1774       permitted under federal law and to the extent funds have been
1775       provided in the General Appropriations Act.
1776               (2)       Oversight by the state board as defined ins. 445.002
1777       board of directors of CareerSource Florida, Inc., and the
1778       service delivery and financial planning responsibilities of the
1779       local workforce development boards apply to the families defined
1780       as work-eligible cases in paragraph (1) (a). The department shall
1781       be responsible for program administration related to families in
1782       groups defined in paragraph (1) (b), and the department shall
1783       coordinate such administration with the state board of directors
1784       of CareerSource Florida, Inc., to the extent needed for
1785       operation of the program.
1786               Section 27.          Subsection (2) of section 420.622, Florida
1787       Statutes, is amended to read:
1788               420.622       State Office on Homelessness; Council on
1789       Homelessness.-
1790               (2)       The Council on Homelessness is created to consist of
1791       17 representatives of public and private agencies who shall
1792       develop policy and advise the State Office on Homelessness. The
17 93      council members shall be: the Secretary of Children and
1794       Families, or his or her designee; the executive director of the

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1795      Department of Economic Opportunity, or his or her designee, who
1796      shall advise the council on issues related to rural development;
1797      the State Surgeon General, or his or her designee; the Executive
1798      Director of Veterans' Affairs, or his or her designee; the
1799      Secretary of Corrections, or his or her designee; the Secretary
1800      of Health Care Administration, or his or her designee; the
1801      Commissioner of Education, or his or her designee; the Executive
1802      Director of CareerSource Florida, Inc., or his or her designee;
1803      one representative of the Florida Association of Counties; one
1804      representative of the Florida League of Cities; one
1805      representative of the Florida Supportive Housing Coalition; the
1806      Executive Director of the Florida Housing Finance Corporation,
1807      or his or her designee; one representative of the Florida
1808      Coalition for the Homeless; and four members appointed by the
1809      Governor. The council members shall be nonpaid volunteers and
1810      shall be reimbursed only for travel expenses. The appointed
1811      members of the council shall be appointed to staggered 2-year
1812      terms, and the council shall meet at least four times per year.
1813      The importance of minority, gender, and geographic
1814      representation shall be considered in appointing members to the
1815      council.
1816              Section 28.          Subsections (1) and (4) of section 443.171,
1817      Florida Statutes, are amended to read:
1818              443.171       Department of Economic Opportunity and commission;
1819      powers and duties; records and reports; proceedings; state-
1820      federal cooperation.-

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          PCS for HB 1271                                                                        2020




1821              (1)       POWERS AND DUTIES.-The Department of Economic
1822      Opportunity shall administer this chapter. The department may
1823      employ persons, make expenditures, require reports, conduct
1824      investigations, and take other action necessary or suitable to
1825      administer this chapter. The department shall annually submit
1826      information to the state board as defined ins. 445.002
1827      CareerSource Florida, Inc., covering the administration and
1828      operation of this chapter during the preceding calendar year for
1829      inclusion in the strategic plan under s. 445.006 and may make
1830      recommendations for amendment to this chapter.
1831              (4)       EMPLOYMENT STABILIZATION.-The Department of Economic
1832      Opportunity, under the direction of the state board as defined
1833      ins. 445.002 CareerSource Florida, Inc., shall take all
1834      appropriate steps to reduce and prevent unemployment; to
1835      encourage and assist in the adoption of practical methods of
1836      career training, retraining, and career guidance; to
1837      investigate, recommend, advise, and assist municipalities,
1838      counties, school districts, and the state in the establishment
1839      and operation of reserves for public works to be used in times
1840      of business depression and unemployment; to promote the
1841      reemployment of unemployed workers throughout the state in every
1842      other way that may be feasible; to refer a claimant entitled to
1843      extended benefits to suitable work that meets the criteria of
1844      this chapter; and, to these ends, to carry on and publish the
1845      results of investigations and research studies.
1846              Section 29.          Subsection (1) of section 443.181, Florida

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          PCS for HB 1271                                                                        2020




1847      Statutes, is amended to read:
1848              443.181       Public employment service.-
1849              (1)       The one-stop delivery system established under s.
1850      445.009 is this state's public employment service as part of the
1851      national system of public employment offices established under
1852      29 U.S.C. s. 49. The Department of Economic Opportunity, under
1853      policy direction from the state board as defined ins. 445.002
1854      CareerSource Florida, Inc., shall cooperate with any official or
1855      agency of the United States having power or duties under 29
1856      U.S.C. ss. 49-491-1 and shall perform those duties necessary to
1857      secure to this state the funds provided under federal law for
1858      the promotion and maintenance of the state's public employment
1859      service. In accordance with 29 U.S.C. s. 49c, this state accepts
1860      29 U.S.C. ss. 49-491-1. The department is designated the state
1861      agency responsible for cooperating with the United States
1862      Secretary of Labor under 29 U.S.C. s. 49c. The department shall
1863      appoint sufficient employees to administer this section. The
1864      department may cooperate with or enter into agreements with the
1865      Railroad Retirement Board for the establishment, maintenance,
1866      and use of one-stop career centers.
1867              Section 30.          Subsection (1) of section 446.71, Florida
1868      Statutes, is amended to read:
1869              446.71       Everglades Restoration Agricultural Community
1870      Employment Training Program.-
1871              (1)       The Department of Economic Opportunity, in cooperation
1872      with the state board as defined ins. 445.002 CareerSource

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           PCS for HB 1271                                                                        2020




1873       Florida, Inc., shall establish the Everglades Restoration
1874       Agricultural Community Employment Training Program within the
1875       Department of Economic Opportunity. The Department of Economic
1876       Opportunity shall use funds appropriated to the program by the
1877       Legislature to provide grants to stimulate and support training
1878       and employment programs that seek to match persons who complete
1879       such training programs to nonagricultural employment
1880       opportunities in areas of high agricultural unemployment, and to
1881       provide other training, educational, and information services
1882       necessary to stimulate the creation of jobs in the areas of high
1883       agricultural unemployment. In determining whether to provide
1884       funds to a particular program, the Department of Economic
1885       Opportunity shall consider the location of the program in
1886       proximity to the program's intended participants.
1887               Section 31.          Subsection (9) of section 1011.80, Florida
1888       Statutes, is amended to read:
1889               1011.80       Funds for operation of workforce education
1890       programs.-
1891               (9)       The State Board of Education and the state board as
1892       defined ins. 445.002 CareerSource Florida, Inc., shall provide
18 93      the Legislature with recommended formulas, criteria, timeframes,
1894       and mechanisms for distributing performance funds. The
1895       commissioner shall consolidate the recommendations and develop a
1896       consensus proposal for funding. The Legislature shall adopt a
18 97      formula and distribute the performance funds to the State Board
1898       of Education for Florida College System institutions and school

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          PCS for HB 1271                                                                        2020




1899      districts through the General Appropriations Act. These
1900      recommendations shall be based on formulas that would discourage
1901      low-performing or low-demand programs and encourage through
1902      performance-funding awards:
1903              (a)       Programs that prepare people to enter high-wage
1904      occupations identified by the Workforce Estimating Conference
1905      created bys. 216.136 and other programs as approved by the
1906      state board as defined ins. 445.002 CareerSource Florida, Inc.
1907      At a minimum, performance incentives shall be calculated for
1908      adults who reach completion points or complete programs that
1909      lead to specified high-wage employment and to their placement in
1910      that employment.
1911              (b)       Programs that successfully prepare adults who are
1912      eligible for public assistance, economically disadvantaged,
1913      disabled, not proficient in English, or dislocated workers for
1914      high-wage occupations. At a minimum, performance incentives
1915      shall be calculated at an enhanced value for the completion of
1916      adults identified in this paragraph and job placement of such
1917      adults upon completion. In addition, adjustments may be made in
1918      payments for job placements for areas of high unemployment.
1919              (c)       Programs that are specifically designed to be
1920      consistent with the workforce needs of private enterprise and
1921      regional economic development strategies, as defined in
1922      guidelines set by the state board as defined ins. 445.002
1923      CareerSource Florida, Inc. The state board CareerSource Florida,
1924      Inc., shall develop guidelines to identify such needs and

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           PCS for HB 1271                                                                        2020




1925       strategies based on localized research of private employers and
1926       economic development practitioners.
1927               (d)       Programs identified by the state board as defined in
1928       s. 445.002 CareerSource Florida, Inc., as increasing the
1929       effectiveness and cost efficiency of education.
1930               Section 32.           Subsection (3) of section 1011.801, Florida
1931       Statutes, is amended to read:
1932               1011.801         Workforce Development Capitalization Incentive
1933       Grant Program.-The Legislature recognizes that the need for
1934       school districts and Florida College System institutions to be
1935       able to respond to emerging local or statewide economic
1936       development needs is critical to the workforce development
1937       system. The Workforce Development Capitalization Incentive Grant
1938       Program is created to provide grants to school districts and
1939       Florida College System institutions on a competitive basis to
1940       fund some or all of the costs associated with the creation or
1941       expansion of workforce development programs that serve specific
1942       employment workforce needs.
1943               (3)       The State Board of Education shall give highest
1944       priority to programs that train people to enter high-skill,
1945       high-wage occupations identified by the Workforce Estimating
1946       Conference and other programs approved by the state board as
1947       defined ins. 445.002, CareerSource Florida, Inc.; programs that
1948       train people to enter occupations under the welfare transition
194 9      programLT or programs that train for the workforce adults who
1950       are eligible for public assistance, economically disadvantaged,

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          PCS for HB 1271                                                                        2020




1951      disabled, not proficient in English, or dislocated workers. The
1952      State Board of Education shall consider the statewide geographic
1953      dispersion of grant funds in ranking the applications and shall
1954      give priority to applications from education agencies that are
1955      making maximum use of their workforce development funding by
1956      offering high-performing, high-demand programs.
1957              Section 33.          Paragraph (b) of subsection (5), subsection
1958       (6), paragraph (b) of subsection (10), and subsection (11) of
1959      section 20.60, Florida Statutes, are amended, and paragraph (c)
1960      is added to subsection (9) of that section, to read:
1961              20.60       Department of Economic Opportunity; creation; powers
1962      and duties.-
1963              (5)       The divisions within the department have specific
1964      responsibilities to achieve the duties, responsibilities, and
1965      goals of the department. Specifically:
1966              (c)       The Division of Workforce Services shall:
1967              1.    Prepare and submit a unified budget request for
1968      workforce development in accordance with chapter 216 for, and in
1969      conjunction with, the state CareerSource Florida, Inc., and its
1970      board as defined ins. 445.002.
1971              2.    Ensure that the state appropriately administers federal
1972      and state workforce funding by administering plans and policies
1973      of the state board as defined ins. 445.002 CareerSource
1974      Florida, Inc., under contract with CareerSource Florida, Inc.
1975      The operating budget and midyear amendments thereto must be part
1976      of such contract.

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          PCS for HB 1271                                                                        2020




1977              a.    All program and fiscal instructions to local workforce
1978      development boards shall emanate from the Department of Economic
1979      Opportunity pursuant to plans and policies of the state board as
1980      defined ins. 445.002 CareerSource Florida, Inc., which shall be
1981      responsible for all policy directions to the local workforce
1982      development boards.
1983              b.    Unless otherwise provided by agreement with the state
1984      board as defined ins. 445.002 CareerSource Florida, Inc.,
1985      administrative and personnel policies of the Department of
1986      Economic Opportunity apply.
1987              3.    Implement the state's reemployment assistance program.
1988      The Department of Economic Opportunity shall ensure that the
1989      state appropriately administers the reemployment assistance
1990      program pursuant to state and federal law.
1991              4.    Assist in developing the 5-year statewide strategic
1992      plan required by this section.
1993              (6) (a)     The Department of Economic Opportunity is the
1994      administrative agency designated for receipt of federal
1995      workforce development grants and other federal funds. The
1996      department shall administer the duties and responsibilities
1997      assigned by the Governor under each federal grant assigned to
1998      the department. The department shall expend each revenue source
1999      as provided by federal and state law and as provided in plans
2000      developed by and agreements with the state board as defined in
2001      s. 445.002 CareerSource Florida, Inc. The department may serve
2002      as the contract administrator for contracts entered into by the

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          PCS for HB 1271                                                                        2020




2003      state board under CareerSource Florida, Inc., pursuant to s.
2004      445.004(5), as directed by CareerSource Florida, Inc.
2005              (b)       The Department of Economic Opportunity shall serve as
2006      the designated agency for purposes of each federal workforce
2007      development grant assigned to it for administration. The
2008      department shall carry out the duties assigned to it by the
2009      Governor, under the terms and conditions of each grant. The
2010      department shall have the level of authority and autonomy
2011      necessary to be the designated recipient of each federal grant
2012      assigned to it and shall disburse such grants pursuant to the
2013      plans and policies of the state board as defined ins. 445.002
2014      CareerSource Florida,             Inc. The executive director may, upon
2015      delegation from the Governor and pursuant to agreement with the
2016      state board CareerSource Florida, Inc., sign contracts, grants,
2017      and other instruments as necessary to execute functions assigned
2018      to the department. Notwithstanding other provisions of law, the
2019      department shall administer other programs funded by federal or
2020      state appropriations, as determined by the Legislature in the
2021      General Appropriations Act or other law.
2022              (9)       The executive director shall:
2023              (c)       Serve as the chair of the board of directors of the
2024      Florida Development Finance Corporation.
2025              (10)       The department, with assistance from Enterprise
2026      Florida, Inc., shall, by November 1 of each year, submit an
2027      annual report to the Governor, the President of the Senate, and
2028      the Speaker of the House of Representatives on the condition of

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          PCS for HB 1271                                                                        2020




2029      the business climate and economic development in the state.
2030              (b)       The report must incorporate annual reports of other
2031      programs, including:
2032              1.     Information provided by the Department of Revenue under
2033      s. 290.014.
2034              2.     Information provided by enterprise zone development
2035      agencies under s. 290.0056 and an analysis of the activities and
2036      accomplishments of each enterprise zone.
2037              3.     The Economic Gardening Business Loan Pilot Program
2038      established under s. 288.1081 and the Economic Gardening
2039      Technical Assistance Pilot Program established under s.
2040      288.1082.
2041              4.     A detailed report of the performance of the Black
2042      Business Loan Program and a cumulative summary of quarterly
2043      report data required under s. 288.714.
2044              5.     The Rural Economic Development Initiative established
2045      under s. 288.0656.
2046              6.     The Florida Unique Abilities Partner Program.
2047              7.     A detailed report of the performance of the Florida
2048      Development Finance Corporation and a summary of the
2049      corporation's report that is required under s. 288.9610.
2050              (11)      The department shall establish annual performance
2051      standards for Enterprise Florida, Inc., CareerSource Florida,
2052      Inc., the Florida Tourism Industry Marketing Corporation, the
2053      Florida Development Finance Corporation, and Space Florida and
2054      report annually on how these performance measures are being met

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          PCS for HB 1271                                                                           2020




2055      in the annual report required under subsection (10).
2056              Section 34.           Subsection (2), paragraphs                 (a) and (c) of
2057      subsection (3), and subsection (4) of section 288.9604, Florida
2058      Statutes, are amended, and subsection (5) is added to that
2059      section, to read:
2060              288.9604         Creation of the authority.-
2061              (2) (a)      The board of directors of the corporation shall
2062      consist of seven members. The executive director of the
2063      department, or his or her designee, shall serve as chair of the
2064      board of directors. The director of the Division of Bond Finance
2065      of the State Board of Administration, or his or her designee,
2066      shall serve as a director on the board. The Governor, subject to
2067      confirmation by the Senate, shall appoint the remaining five
2068      members of the board of directors of the corporation, who shall
2069      be five in number. At least three of the appointed directors of
2070      the corporation must be bankers or persons with experience in
2071      finance, and one of the appointed directors must be an economic
2072      development specialist.
2073              J.!21     The terms of office for the appointed directors are
2074      for shall be for 4 years after .f-r.effl the date of their
2075      appointment. A vacancy occurring during a term of an appointed
2076      director shall be filled for the unexpired term. An appointed A
2077      director is shall be eligible for reappointment. Each appointed
2078      director shall hold office until his or her successor has been
2079      appointed ~t least three of the directors of the corporation
2080      shall be banlcers who have been selected by the Governor from a

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          PCS for HB 1271                                                                                2020




2081      list of bankers who were nominated by Enterprise Florida, Inc.,
2082      and one of the directors shall be an economic development
2083      specialist.
2084              (3) (a) 1.       A director may not receive compensation for his
2085      or her services, but is entitled to necessary expenses,
2086      including travel expenses, incurred in the discharge of his or
2087      her duties. Each director shall hold office until his or her
2088      successor has been appointed.
2089              2.    Directors are subject toss. 112.313(1)-(8),                              (10),
2090       (12), and (15); 112.3135; and 112.3143(2). For purposes of
2091      applying ss. 112.313(1)-(8),                   (10),   (12), and (15); 112.3135; and
2092      112.3143(2) to activities of directors, directors are shall be
2093      considered public officers and the corporation is shall be
2094      considered their agency.
2095              (c)       The directors of the corporation shall annually elect
2096      one of their members as chair and one as vice chair. The
2097      corporation may employ a president, technical experts, and such
2098      other agents and employees, permanent and temporary, as it
2099      requires and determine their qualifications, duties, and
2100      compensation. For such legal services as it requires, the
2101      corporation may employ or retain its own counsel and legal
2102      staff.
2103              (4)       The board may remove an appointed a director for
2104      inefficiency, neglect of duty, or misconduct in office. An
2105      appointed director may be removed only after a hearing and only
2106      if he or she has been given a copy of the charges at least 10

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          PCS for HB 1271                                                                        2020



2107      days before such hearing and has had an opportunity to be heard
2108      in person or by counsel. The removal of an appointed a director
2109      creates shall create a vacancy on the board which must shall be
2110      filled pursuant to subsection (2).
2111              (5)       This section is repealed October 1, 2022, and October
2112      1 of every fourth year thereafter, unless reviewed and saved
2113      from repeal by the Legislature.
2114              Section 35.           In order to implement the changes made by this
2115      act to s. 288.9604, Florida Statutes, the chair and vice chair
2116      of the board of directors of the Florida Development Finance
2117      Corporation on June 30, 2020, shall serve as appointed directors
2118      beginning on July 1, 2020. This act does not affect the terms of
2119      the current directors serving on the board on July 1, 2020.
2120              Section 36.           Section 288.9610, Florida Statutes, is amended
2121      to read:
2122              288.9610         Annual reports of Florida Development Finance
2123      Corporation.-On or before 90 days after the close of the Florida
2124      Development Finance Corporation's fiscal year, the corporation
2125      shall submit to the Governor, the Legislature, the Auditor
2126      General, the Department of Economic Opportunity, and the
2127      governing body of each public entity with which it has entered
2128      into an interlocal agreement a complete and detailed report
2129      setting forth:
2130              (1)       The results of any audit conducted under pursuant to
2131      s. 11.45.
2132              (2)       The activities, operations, and accomplishments of the

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          PCS for HB 1271                                                                        2020




2133      Florida Development Finance Corporation, including the number of
2134      businesses assisted by the corporation.
2135              (3)       Its assets, liabilities, income, and operating
2136      expenses at the end of its most recent fiscal year, including a
2137      description of all of its outstanding revenue bonds.
2138              Section 37.          A contract or interlocal agreement that exists
2139      before July 1, 2020, between the Florida Development Finance
2140      Corporation, or an entity or agent of the corporation, and any
2141      other entity or person shall remain in effect and be binding on
2142      the successor department, entity, or person responsible for the
2143      program, activity, or function that relates to the contract or
2144      interlocal agreement.
2145              Section 38.          This act shall take effect July 1, 2020.




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