HB 985 Summary

• Defines "small business" as an independently owned Florida entity with 50 or fewer permanent full-time employees, domiciled in-state for 3+ years, and average annual gross sales not exceeding $5 million (contractors), $500,000 (sole proprietors), or $1 million (other entities), with net worth under $5 million.

• Requires state agencies to avoid unnecessary contract bundling and conduct market research before issuing bundled contract solicitations, with written summaries and analyses explaining why bundling is necessary.

• Mandates agencies award at least 35 percent of total annual contract dollar amounts to small businesses either directly or indirectly as subcontractors, with no vendor subcontracting with small businesses for less than 35 percent of gross contract amounts.

• Prohibits agencies, general contractors, and prime contractors from requiring bid bonds, performance bonds, or other sureties for contracts not exceeding $500,000, and requires subcontractor payment within 15 calendar days after invoice receipt.

• Establishes a reporting system under the rules ombudsman to track small business participation, awards, and expenditures, with annual reports to state leadership due by February 1 each year; effective July 1, 2013.