The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Fiscal Policy
BILL: CS/CS/SB 7042
INTRODUCER: Fiscal Policy Committee; Appropriations Committee on Agriculture, Environment, and
General Government Committee; and Governmental Oversight and Accountability
Committee
SUBJECT: Commodities Produced by Forced Labor
DATE: February 28, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
Limones-Borja McVaney GO Submitted as Comm. Bill/Fav
1. Davis Betta AEG Fav/CS
2. Limones-Borja Yeatman FP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 7042 creates a new provision in ch. 287, F.S., preventing contracts with companies
for commodities produced, in whole or in part, by forced labor. For purposes of this legislation,
“forced labor” means work or service exacted from any person, including a minor, under the
menace of a penalty for nonperformance and for which the worker does not offer himself or
herself voluntarily or an activity that violates s. 787.06, F.S.
The bill requires the Department of Management Services (DMS or department) to create and
maintain a forced labor vendor list that identifies companies that are disqualified from public
contracting and purchasing process for 365 days. The DMS shall publish an updated version of
the list quarterly, and electronically post the list on its website.
A company is considered disqualified from the public contracting and purchasing process as of
the date a final order is entered. Once placed on the forced labor vendor list, a company may not:
 Submit a bid, proposal, or reply on a contract to provide any commodities to an agency;
 Be awarded a contract or perform work as a contractor, supplier, subcontractor, or consultant;
or
 Transact business pertaining to the provision of commodities with an agency.
BILL: CS/CS/SB 7042 Page 2
Likewise, an agency (a state executive branch entity generally) may not (1) accept a bid,
proposal, or reply from; (2) award a contract to; or (3) transact business with a company on the
forced labor vendor list. These prohibitions apply for a period of 365 days after the date the
company was placed on the list, unless the company is removed from the list earlier.
The bill requires all invitations to bid, requests for proposals, invitations to negotiate, and any
written contracts for the provision of commodities by an agency to include a statement informing
companies of such requirements related to forced labor. Contracts with an agency for the
provision of commodities entered into or renewed on or after July 1, 2024, must contain a
provision that allows the awarding agency to terminate the contract if the company is placed on
the forced labor vendor list.
Prior to putting a company on the forced labor vendor list, the DMS must investigate reasonable
and credible information that a company has submitted a false certification or provided a
commodity produced by forced labor. If good cause exists, and if placement on the list is in the
public interest, the DMS must notify the company in writing of its intent to place the company
on the list. The notice must include a notice of ch. 120, F.S., hearing rights and of the applicable
hearing procedures and time requirements.
A company that submits a false certification that the commodities it offered to the agency had
not been produced, in whole or in part, by forced labor and is subsequently placed on the forced
labor vendor list must be assessed a fine by the DMS.
The bill clarifies that placement on the forced labor vendor list does not affect any rights or
obligations under any contract, franchise, or other binding agreement which predate such
placement.
The bill may have an insignificant fiscal impact on state revenues and expenditures. See
Section V., Fiscal Impact Statement.
The bill takes effect July 1, 2024.
II. Present Situation:
Government Contracting and Procurement
Chapter 287, F.S., regulates state agency1 procurement of personal property and services. The
Department of Management Services (DMS or department) is responsible for overseeing state
purchasing activity including professional and contractual services as well as commodities
needed to support agency activities.2 Its responsibilities include creating uniform agency
procurement rules,3 implementing the online procurement program,4 and procuring state term
1
As defined in s. 287.012(1), F.S., “agency” means any of the various state officers, departments, boards, commissions,
divisions, bureaus, and councils and any other unit of organization, however designated, of the executive branch of state
government. “Agency” does not include the university and college boards of trustees or the state universities and colleges.
2
See ss. 287.032 and 287.042, F.S.
3
See ss. 287.032(2) and 287.042(3), (4), and (12), F.S.
4
See s. 287.057(24), F.S. See ss. 287.032 and 287.042, F.S.
BILL: CS/CS/SB 7042 Page 3
contracts.5 The DMS is also responsible for registering vendors that wish to provide goods or
services to the state6 and maintaining lists of vendors who may not submit bids, proposals, or
replies to agency solicitations.7 The Division of State Purchasing in the DMS establishes
statewide purchasing rules and negotiates contracts and purchasing agreements that are intended
to leverage the state’s buying power.8
Current law requires contracts for commodities or contractual services in excess of $35,000 to be
procured utilizing a competitive solicitation process.9,10 These competitive procurement
provisions apply to an agency, defined as “any of the various state officers, departments, board
commissions, divisions, bureaus, and councils and any other unit of organization, however
designated, of the executive boards of state government.11 This definition does not include
municipalities and local governments; and university and college boards of trustees, and the state
universities and colleges are specifically excluded from this definition.12
State agencies may use a variety of procurement methods, depending on the cost and
characteristics of the needed good or service, the complexity of the procurement, and the number
of available vendors. These methods include the following:
 Invitations to bid,13 used when an agency determines that standard services or goods will
meet needs, wide competition is available and the vendor’s experience will not greatly
influence the agency’s results;
 Requests for proposals,14 used when the procurement requirements allow for consideration of
various solutions and the agency believes more than two or three vendors exist who can
provide the required goods or services; and
 Invitations to negotiate,15 used when negotiations are determined to be necessary to obtain
the best value and involve a request for highly complex, customized, mission-critical
services, by an agency dealing with a limited number of vendors.
5
See ss. 287.042(2) and 287.056, F.S
6
See ss. 287.032 and 287.042, F.S.; see also Department of Management Services, Vendor Registration and Vendor Lists,
https://www.dms.myflorida.com/business_operations/state_purchasing/state_agency_resources/vendor_registration_and_ven
dor_lists (last visited Jan. 31, 2024).
7
See ss. 287.1351, 287.133, 287.134, and 287.137, F.S.
8
Chapter 287, F.S., provides requirements for the procurement of personal property and services. Part I of that chapter
pertains to commodities, insurance, and contractual services, and part II pertains to means of transport.
9
Section 287.057(1), F.S., requires all projects that exceed the Category Two ($35,000) threshold provided in s. 287.017,
F.S., to be competitively bid.
10
As defined in s. 287.012(6), F.S., “competitive solicitation” means the process of requesting and receiving two or more
sealed bids, proposals, or replies submitted by responsive vendors in accordance with the terms of a competitive process,
regardless of the method of procurement.
11
Section 287.012(1), F.S.
12
Id.
13
Section 287.057(1)(a), F.S.
14
Section 287.057(1)(b), F.S.
15
Section 287.057(1)(c), F.S.
BILL: CS/CS/SB 7042 Page 4
A competitive solicitation for contractual services in excess of $35,000 must be evidenced by a
written agreement (contract) embodying all provisions and conditions of the procurement.16 The
contract must include, but not be limited to, provisions on the following:
 Bills for fees or other compensation for services or expenses must be submitted in detail
sufficient for a proper pre-audit and post-audit of such items;17
 Bills for any travel expenses be submitted in accordance with the law on per diem and travel
expenses of public officers, employees, or authorized persons;18
 Allowing unilateral cancellation by the agency for refusal by the contractor to allow public
access to all documents, papers, letters, or other material made or received by the contractor
in conjunction with the contract, unless the records are exempt;19
 Specifying a scope of work clearly establishing all tasks the contractor is required to
perform;20
 Dividing the contract into quantifiable, measurable, and verifiable units of deliverables that
must be received and accepted in writing by the contract manager before payment;21
 Specifying the performance criteria and the final date by which such criteria must be met for
completion of the contract;22
 Specifying the conditions that must be met for a renewal of the contract, including, but not
limited to:23
o The contract may be renewed for a period not exceeding three years or the term of the
original contract, whichever is longer;
o The renewal price for the contractual service as set forth in the bid, proposal, or reply;
o Specifying costs for the renewal may not be charged; and
o Specifying that contract renewals are contingent upon satisfactory performance
evaluations by the agency and subject to the availability of funds;
 Specifying the financial consequences if the contractor fails to perform in accordance with
the contract;24 and
 Addressing the property rights of any intellectual property related to the contract and the
specific rights of the state regarding the intellectual property if the contractor fails to provide
the services or is no longer providing services.25
The contract must be signed by the agency head or designee and the contractor before the
rendering of any contractual service in excess of $35,000.26 The Chief Financial Officer (CFO)
may waive the contracting requirements for the procurement of certain specified commodities or
services, unless otherwise provided in the annual General Appropriations Act (GAA) or the
16
Section 287.058(1), F.S., provides an exception for the written agreement for contractual services that provide health and
mental health services or drugs in the examination, diagnosis, or treatment of sick or injured state employees or provide other
benefits as required by ch. 440, F.S.
17
Section 287.058(1)(a), F.S.
18
Section 287.058(1)(b), F.S.
19
Section 287.058(1)(c), F.S.
20
Section 287.058(1)(d), F.S.
21
Section 287.058(1)(e), F.S.
22
Section 287.058(1)(f), F.S.
23
Section 287.058(1)(g), F.S.
24
Section 287.058(1)(h), F.S.
25
Section 287.058(1)(i), F.S.
26
Section 287.058(2), F.S.
BILL: CS/CS/SB 7042 Page 5
substantive bill implementing the GAA.27 A contract may not prohibit a contractor from
lobbying the executive or legislative branch concerning the scope of services, performance, term,
or compensation regarding any contract to which the contractor and a state agency are parties,
after contract execution and during the contract term.28 Each public agency contract for services
must authorize the public agency to inspect the following records within 10 days after the agency
makes a request:29
 Financial records, papers, and documents of the contractor that are directly related to the
performance of the contract or the expenditure of state funds.30
 Programmatic records, papers, and documents of the contractor that the public agency
determines are necessary to monitor the performance of the contract or to ensure that the
terms of the contract are being met.31
Department Vendor Lists
The DMS maintains a vendor list based on the vendor registration process,32 and may remove
from the vendor list any source of supply that fails to fulfill any of its duties specified in a
contract.33 The DMS also maintains the following lists of disqualified, scrutinized, or removed
vendors:
 Suspended Vendor List;34
 Convicted Vendor List;35
 Discriminatory Vendor List;36
 Scrutinized List of Prohibited Companies; and37
 Antitrust Violator Vendor List.38
Forced Labor
The term “forced labor” is defined as part of the Tariff Act of 1930 (Act), to mean “all work or
service which is exacted from any person under the menace of any penalty for its
nonperformance and for which the worker does not offer himself voluntarily, including forced or
indentured child labor.”39 The Act also prohibits importing any product into the U.S. that was
mined, produced, or manufactured wholly or in part by forced labor, with some limited
exceptions.40
27
Section 287.058(5), F.S., incorporates s. 287.057(3)(e), F.S., which lists 13 specific types of commodities or services for
which the contracting requirement may be waived, including, for example, artistic services, lectures by individuals, certain
health services, family placement services, and services or commodities provided by governmental entities.
28
Section 287.058(6), F.S.
29
Section 216.1366(1), F.S
30
Section 216.1366(1)(a), F.S.
31
Section 216.1366(1)(b), F.S
32
Section 287.042, F.S. See also The Department of Management Services, Vendor Resources, available at
https://www.dms.myflorida.com/business_operations/state_purchasing/vendor_resources (last visited Jan. 31, 2024).
33
Section 287.042(1)(b), F.S.
34
Section 287.1351, F.S.
35
Section 287.133, F.S.
36
Section 287.134, F.S.
37
Section 287.135, F.S
38
Section 287.137, F.S.
39
19 U.S.C. § 1307.
40
Id.
BILL: CS/CS/SB 7042 Page 6
Florida Law includes the term “forced labor” within the context of human trafficking41, finding
that that victims of human trafficking are subjected to force, fraud, or coercion for the purpose of
sexual exploitation or forced labor.42 Human trafficking occurs in many forms of labor
exploitation including domestic servitude, restaurant work, janitorial work, sweatshop factory
work, and migrant agricultural work.43 Any person who knowingly, or in reckless disregard of
the facts, engages in human trafficking, attempts to engage in human trafficking, or benefits
financially by receiving anything of value from participation in a venture that has subjected a
person to human trafficking for labor,44 services,45 or commercial sexual activity, commits a
crime.46
Administrative Procedures Act
The Administrative Procedures Act (APA) provides that a party who wishes to challenge an
agency determination of his or her substantial interests must file a petition for a hearing with the
agency. An agency request for an administrative law judge (ALJ) must be made to the Division
of Administrative Hearings within 15 days after receiving the petition.47,48 All parties shall be
given an opportunity for a hearing after reasonable notice.49 Generally, agency determinations
that impact a party’s substantial interests are subject to either an informal hearing in which the
petitioner does not dispute any material facts of the agency’s final action,50 or a formal hearing,
in which the petitioner disputes a material fact of the agency’s final action.51
III. Effect of Proposed Changes: