Senate Bill sb1166

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    Florida Senate - 2007                                  SB 1166

    By Senator Wise





    5-1197-07                                           See HB 495

  1                      A bill to be entitled

  2         An act relating to procurement of contractual

  3         services by a state agency; amending s.

  4         287.0571, F.S.; providing that specified

  5         services related to mental health, substance

  6         abuse, child welfare, and juvenile justice are

  7         not subject to the Florida Efficient Government

  8         Act; creating s. 287.0575, F.S.; providing

  9         agency and contract requirements with respect

10         to the outsourcing of human services related to

11         mental health and substance abuse, child

12         welfare, and juvenile justice by the Department

13         of Juvenile Justice, the Department of

14         Corrections, the Department of Children and

15         Family Services, and the Agency for Health Care

16         Administration; providing an effective date.

17  

18         WHEREAS, in 2006, the Florida Legislature, during the

19  2006 regular legislative session, passed Committee Substitute

20  for Committee Substitute for Senate Bill 2518, the "Florida

21  Efficient Government Act," and

22         WHEREAS, the expressed intent of the Florida Efficient

23  Government Act is that "each state agency focus on its core

24  mission and deliver services effectively and efficiently by

25  leveraging resources and contracting with private sector

26  vendors whenever vendors can more effectively and efficiently

27  provide services and reduce the cost of government," and

28         WHEREAS, it is also the expressed intent of the act

29  that "business cases to outsource be evaluated for

30  feasibility, cost-effectiveness, and efficiency before a state

31  agency proceeds with any outsourcing of services," and

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    Florida Senate - 2007                                  SB 1166
    5-1197-07                                           See HB 495




 1         WHEREAS, as part of the Florida Efficient Government

 2  Act, section 287.0571(4), Florida Statutes, exempts

 3  procurements of certain commodities and contractual services

 4  from the provisions of the act, and

 5         WHEREAS, among those exempt commodities and contractual

 6  services are artistic services; academic program reviews;

 7  lectures by individuals; auditing services; legal services;

 8  health services involving examination, diagnosis, treatment,

 9  prevention, medical consultation, or administration; services

10  provided to persons with mental or physical disabilities by

11  certain not-for-profit corporations; family placement

12  services; and prevention services related to mental health,

13  including drug abuse prevention programs, child abuse

14  prevention programs, and shelters for runaways, operated by

15  not-for-profit corporations, and

16         WHEREAS, though the Florida Efficient Government Act

17  makes great strides in accomplishing its intended purposes,

18  there are managing entities and service providers who

19  currently provide human services related to mental health,

20  substance abuse, child welfare, and juvenile justice under

21  outsourcing contracts with the Department of Juvenile Justice,

22  the Department of Corrections, the Department of Children and

23  Family Services, and the Agency for Health Care Administration

24  who should be included within the exemption provisions of

25  section 287.0571(4), Florida Statutes, and

26         WHEREAS, these entities provide critical assistance to

27  the Department of Juvenile Justice, the Department of

28  Corrections, the Department of Children and Family Services,

29  and the Agency for Health Care Administration in fulfilling

30  their missions, and

31  

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    Florida Senate - 2007                                  SB 1166
    5-1197-07                                           See HB 495




 1         WHEREAS, these managing entities and service providers

 2  want to ensure full accountability of the managing entity, the

 3  service provider, and the contracting agency by requiring

 4  transparency in negotiations and contracting and by

 5  instituting equitable and reasonable requirements with respect

 6  to oversight, monitoring, and regulation of the services

 7  provided, and

 8         WHEREAS, because it is also a primary concern of these

 9  managing entities and service providers to ensure continuity

10  of care, optimal levels of service that are not subject to

11  fluctuation, and stability for the client, it is essential

12  that such outsourcing contracts be required to define

13  standards of performance and measurement that are based upon

14  evidence-based best practices and national outcome-related

15  standards or measures, and

16         WHEREAS, it is of equal importance that contracts for

17  such services contain requirements for stringent, independent,

18  and formalized audit procedures and improved reporting to the

19  Legislature in order to ensure the continuing efficiency and

20  accountability of these contracts, NOW, THEREFORE,

21  

22  Be It Enacted by the Legislature of the State of Florida:

23  

24         Section 1.  Subsection (4) of section 287.0571, Florida

25  Statutes, is amended to read:

26         287.0571  Applicability of ss. 287.0571-287.0574.--

27         (4)  Sections 287.0571-287.0574 do not apply to:

28         (a)  A procurement of commodities and contractual

29  services listed in s. 287.057(5)(e), (f), and (g) and (22).

30         (b)  A procurement of contractual services subject to

31  s. 287.055.

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    Florida Senate - 2007                                  SB 1166
    5-1197-07                                           See HB 495




 1         (c)  A procurement of contractual services subject to

 2  s. 287.0575.

 3         (d)(c)  A contract in support of the planning,

 4  development, implementation, operation, or maintenance of the

 5  road, bridge, and public transportation construction program

 6  of the Department of Transportation.

 7         (e)(d)  A procurement of commodities or contractual

 8  services which does not constitute an outsourcing of services

 9  or activities.

10         Section 2.  Section 287.0575, Florida Statutes, is

11  created to read:

12         287.0575  Requirements for outsourcing of human

13  services related to mental health, substance abuse, child

14  welfare, and juvenile justice by the Department of Juvenile

15  Justice, the Department of Corrections, the Department of

16  Children and Family Services, and the Agency for Health Care

17  Administration.--The outsourcing of human services related to

18  mental health, substance abuse, child welfare, and juvenile

19  justice by the Department of Juvenile Justice, the Department

20  of Corrections, the Department of Children and Family

21  Services, or the Agency for Health Care Administration are

22  subject to the following requirements:

23         (1)  The Department of Juvenile Justice, the Department

24  of Corrections, the Department of Children and Family

25  Services, and the Agency for Health Care Administration shall,

26  with respect to a contract to outsource human services related

27  to mental health, substance abuse, child welfare, and juvenile

28  justice:

29         (a)  Recognize and accept accreditation by national

30  accreditation organizations as providing appropriate

31  credentials for service providers so as to reduce paperwork,

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    Florida Senate - 2007                                  SB 1166
    5-1197-07                                           See HB 495




 1  reduce required monitoring, and otherwise assist in meeting

 2  required oversight functions, where applicable.

 3         (b)  Establish model rates of payment for services

 4  based on the variable costs of providing services in different

 5  geographical regions of the state.

 6         (c)  Prohibit cost reimbursement as a method of

 7  payment.

 8         (d)  Implement a mechanism to annually adjust model

 9  rates of payment for services which is based on the Consumer

10  Price Index.

11         (e)1.  Require that negotiations be reopened with

12  providers in order to make any modifications to the scope of

13  work of an executed contract;

14         2.  Require cost-benefit analysis to be utilized as a

15  part of any negotiation;

16         3.  Provide that amendments to a contract resulting

17  from negotiations be justified by need; and

18         4.  Provide for adequate compensation for any

19  modification.

20         (f)  Establish and require a reasonable period of time

21  for negotiation and execution of a contract after the award.

22         (g)  Provide for an ombudsman and a procedure to

23  facilitate or assist in resolving contract disputes.

24         (h)  Provide for an annual report to the Legislature

25  based upon evidence-based best practices and national

26  outcome-related standards or measures.

27         (i)  Provide for reimbursement for the extra day of

28  services provided during a leap year.

29         (j)1.  Provide for monthly reimbursement within a

30  prescribed timeframe; and

31  

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    Florida Senate - 2007                                  SB 1166
    5-1197-07                                           See HB 495




 1         2.  Where there are disputed issues, ensure that

 2  payment will be made on all items not under dispute and that

 3  in no event will payment be withheld on undisputed issues

 4  pending the resolution of disputed issues.

 5         (k)  Provide that funds required to ensure cash flow

 6  and program expansion and development cannot be considered as

 7  excess revenue.

 8         (2)  A contract to outsource human services related to

 9  mental health, substance abuse, child welfare, and juvenile

10  justice on behalf of the Department of Juvenile Justice, the

11  Department of Corrections, the Department of Children and

12  Family Services, or the Agency for Health Care Administration

13  shall include provisions that:

14         (a)  Require contract deliverables to be based on the

15  requirements of the contracting agency or, in the case of a

16  multi-agency contract, the primary contracting agency,

17  applicable state laws, and national outcome-related standards

18  or measures. In the event that there are no best practices or

19  national outcome-related standards or measures upon which to

20  base the deliverable, the initial contract shall be utilized

21  to establish baseline measures and deliverables for future

22  contracts, based upon experience and baseline data collected

23  during the initial contract. Under no circumstances shall

24  deliverables other than the requirements of the contracting

25  agency to the state or those requirements specified in state

26  law be established without data to support them, except when

27  establishing baseline measures.

28         (b)1.  Contain clear measures and specifications when

29  deliverables are placed in a contract that will allow for

30  accurate determinations regarding the fulfillment of contract

31  requirements; and

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    Florida Senate - 2007                                  SB 1166
    5-1197-07                                           See HB 495




 1         2.  Take into consideration the fact that, when dealing

 2  with human health and behavioral issues, a wide range of

 3  variables exists. Therefore, to the extent possible, the

 4  contract shall provide established measures and specifications

 5  to be stated within established parameters.

 6         (c)  Specify a reasonable number of annual monitoring

 7  visits to ensure that appropriate oversight will occur without

 8  impeding the efficient provision of the services. These may be

 9  modified if the performance of the managing entity or service

10  provider dictates otherwise. Whenever possible, monitoring

11  shall be combined so that interruptions to the agency and

12  services are minimized.

13         (d)  Require all financial audits to be conducted in

14  accordance with generally accepted accounting principles.

15         Section 3.  This act shall take effect July 1, 2007.

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