| On July 1, 2024, two new Florida laws took effect that impose new contract requirements on Florida’s local governments, including special districts. The first law requires government contractors to attest that they are not using coercive labor practices commonly used by human traffickers when supplying labor and services to local governments. The second law mandates the use of United States-produced iron and steel in public works projects that are funded in whole or in part by state funds.
Prohibition on Coercion for Labor and Services (HB 7063)
Governor Ron DeSantis recently signed House Bill 7063 (2024) into law, creating a new section in Florida’s Human Trafficking statute that enlists government entities in the fight against human trafficking. Section 787.06(13), Florida Statutes, requires any non-governmental entity that enters into a contract with a governmental entity to provide an affidavit attesting that the nongovernmental entity does not use “coercion” for labor or services. For the purposes of this statute, coercion means any of the following activities:
- Using or threatening to use physical force against any person;
- Restraining, isolating, or confining or threatening to restrain, isolate, or confine any person without lawful authority and against her or his will;
- Using lending or other credit methods to establish a debt by any person when labor or services are pledged as a security for the debt, if the value of the labor or services as reasonably assessed is not applied toward the liquidation of the debt, the length and nature of the labor or services are not respectively limited and defined;
- Destroying, concealing, removing, confiscating, withholding, or possessing any actual or purported passport, visa, or other immigration document, or any other actual or purported government identification document, of any person;
- Causing or threatening to cause financial harm to any person;
- Enticing or luring any person by fraud or deceit; or
- Providing a controlled substance to any person for the purpose of exploitation of that person.
The affidavit must be signed by a representative of the non-governmental entity under penalty of perjury and must be provided before entering into a new contract with a governmental entity and when renewing or extending an existing contract with that entity.
Use of U.S.-Produced Iron and Steel Products in State-Funded Public Works Projects (SB 674)
Governor DeSantis also signed Senate Bill 674 (2024) into law, creating Section 255.0993, Florida Statutes, which establishes new requirements for the use of United States-produced iron and steel products in state funded public works projects. Under this new law, Florida local governments must include in their contracts for public works projects a requirement that any iron and steel product permanently incorporated in the project must by produced in the United States. This law is similar to the federal Build America, Buy America Act, adopted as part of Infrastructure Investment and Jobs Act of 2021, which has imposed similar requirements for iron, steel, manufactured products and construction materials used in infrastructure projects that receive federal funding.
Under the Florida law, “public works” are broadly defined to include activities paid for with any state-appropriated funds or state funds administered by a governmental entity consisting of the construction, maintenance, repair, renovation, remodeling, or improvement of a building, road, street, sewer, storm drain, water system, site development, irrigation system, reclamation project, gas or electrical distribution system, gas or electrical substation, or other facility, project, or portion thereof owned in whole or in part by any governmental entity.
“Iron or steel product“ means products that are made primarily of iron or steel, such as lined or unlined pipes and fittings; bars and rods; wire, wire ropes, and link chains; forgings; grating and drainage products; access covers, hatches, manhole covers, and other castings; hydrants; electric transmission and distribution poles; tanks; flanges; pipe clamps and restraints; valves; structural steel and other steel mill products; materials made primarily of iron and steel within precast concrete; and other construction materials made primarily of iron or steel. Electrical components and equipment are exempt from this law.
This law will not apply if the local government entity, in its sole discretion, makes any of the following determinations: a) U.S.-produced iron or steel is not available in sufficient quantities or of satisfactory quality; b) using U.S.-produced materials will increase the total project cost by more than 20%; or c) compliance with the law is inconsistent with the public interest.
Finally, minimal use of foreign iron or steel is allowed if it is incidental, not specified in project plans, and does not exceed the greater of 0.1% of the total project cost or $2,500.
The law requires the Florida Department of Management Services to develop guidelines and procedures to implement these new requirements. Although the guidelines and procedures have not yet been developed, governmental entities must comply with the statutory requirements beginning July 1, 2024.
For more information on either of these new laws, please contact jrustin@llw-law.com. |
