Florida Senate - 2009 SB 900
By Senator Bennett
21-00803-09 2009900__
1 A bill to be entitled
2 An act relating to procurement of contractual services
3 by a state agency; creating s. 287.0575, F.S.;
4 providing definitions; providing requirements with
5 respect to the provision of outsourced human services
6 related to mental health, substance abuse, child
7 welfare, or juvenile justice; providing requirements
8 with respect to contracts for such services; requiring
9 state agencies to identify specified costs to human
10 services providers; requiring a fiscal impact
11 statement; providing that failure by a governmental
12 entity to negotiate a contract amendment or remedy a
13 material adverse impact of a new governmental mandate
14 constitutes an agency action or purposes of the
15 Administrative Procedure Act; providing for annual
16 reports by state agencies; amending s. 216.136, F.S.;
17 requiring the Social Services Estimating Conference to
18 convene quarterly for the purpose of developing
19 information related to mental health, substance abuse,
20 child welfare, and juvenile justice services needs;
21 providing an effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Section 287.0575, Florida Statutes, is created
26 to read:
27 287.0575 Outsourced human services related to mental
28 health, substance abuse, child welfare, or juvenile justice.—
29 (1) For the purposes of this section:
30 (a) “Material adverse financial impact” means:
31 1. An increase in reasonable costs to a contractor in
32 performing a contract for the outsourcing of human services
33 related to mental health, substance abuse, child welfare, or
34 juvenile justice that is the lesser of:
35 a. Five per cent of the maximum obligation amount or unit
36 price of the contract; or
37 b. Ten thousand dollars in the aggregate as a result of all
38 new governmental mandates taking effect during any calendar year
39 of the contract term; or
40 2. An action that affects the core purpose and primary
41 intent of a contract for the outsourcing of such services.
42 (b) “New governmental mandate” means a statutory
43 requirement, administrative rule, regulation, assessment,
44 executive order, judicial order, or other governmental
45 requirement, or an agency policy, that was not in effect when a
46 contract for the outsourcing of human services related to mental
47 health, substance abuse, child welfare, or juvenile justice was
48 originally entered into and that directly imposes an obligation
49 on the contractor to take, or to refrain from taking, any action
50 in order to fulfill its contractual obligation.
51 (2) To create a more stable business environment for
52 providing outsourced human services related to mental health,
53 substance abuse, child welfare, or juvenile justice and to
54 ensure accountability, eliminate duplication, and improve
55 efficiency with respect to the provision of such services:
56 (a) Each state agency shall annually submit to the
57 Legislature a list of mandated requirements, forms, and other
58 monitoring requirements that are satisfied through accreditation
59 by appropriate national accreditation organizations.
60 (b) Each state agency that provides funding for outsourced
61 human services contracts under this section:
62 1. Shall coordinate with other state agencies that provide
63 funding and designate an agency that will act as the lead agency
64 in ensuring that monitoring activities are coordinated.
65 2. May delegate monitoring activities to another agency
66 that is monitoring outsourced services for a particular
67 population.
68 3. Shall develop a common monitoring protocol to be used
69 when services to a particular population are being funded by two
70 or more agencies. The protocol, at a minimum, must:
71 a. Delineate all program, fiscal, and administrative
72 contract monitoring activities, including all required reporting
73 mechanisms, to provide required program, fiscal, and
74 administrative data.
75 b. Provide for a master list of core required documents for
76 contract monitoring purposes and provide for the collection of
77 such documents from each service provider.
78 (3) Contracts to outsource human services related to mental
79 health, substance abuse, child welfare, and juvenile justice
80 shall:
81 (a) Provide that, in the event that a material change to
82 the scope of the contract is imposed upon a service provider and
83 compliance with such change will have a material adverse
84 financial impact on the service provider, the contracting agency
85 shall negotiate a contract amendment with the service provider
86 to increase the maximum obligation amount or unit price of the
87 contract to offset the material adverse financial impact of the
88 change, provided the service provider furnishes evidence to the
89 contracting agency of such material adverse financial impact
90 along with a request to renegotiate the contract based on the
91 proposed change.
92 (b) Ensure that payment will be made on all items not under
93 dispute and that in no event will payment be withheld on
94 undisputed issues pending the resolution of disputed issues.
95 (c) Provide that any dispersed funds that remain unexpended
96 during the contract term be considered as authorized revenue for
97 the purposes of cash flow, program expansion and development,
98 and administrative costs.
99 (d) Include language authorizing, subject to appropriation,
100 an annual cost-of-living adjustment that reflects increases in
101 the consumer price index or, at a minimum, is comparable to any
102 annual salary increase for state employees. In the absence of a
103 cost-of-living adjustment for state employees, the contract must
104 include language that adjusts human services contracts by
105 reducing the number of services or units contracted for or that
106 requires documentation substantiating the reasons a reduction is
107 not possible. This documentation shall be considered by the
108 Social Service Estimating Conference and reported pursuant to s.
109 216.136.
110 (4) State agencies shall provide an analysis of every new
111 form, procedure, or mandate required of a provider of human
112 services related to mental health, substance abuse, child
113 welfare, or juvenile justice under a contract for the
114 outsourcing of such human services that were not in effect when
115 the contract was originally entered into. The analysis shall
116 identify the cost to the provider of any such new requirements
117 and must be transmitted to the provider before any new form,
118 procedure, or mandate may be used or implemented. The analysis
119 shall also include a fiscal impact statement from the provider
120 with respect to each new form, procedure, or mandate required or
121 imposed.
122 (5) Any contractor aggrieved by the refusal or failure of a
123 governmental unit to negotiate a contract amendment to remedy a
124 material adverse impact of a new governmental mandate pursuant
125 to this section constitutes an agency action for the purposes of
126 the Administrative Procedure Act.
127 (6) By December 30 annually, each agency that contracts for
128 the provision of human services shall prepare a comprehensive
129 list of all contract requirements, mandated reports, outcome
130 measures, and other requirements of a provider. The list shall
131 be submitted to the Governor, the President of the Senate, and
132 the Speaker of the House of Representatives.
133 Section 2. Paragraph (c) is added to subsection (6) of
134 section 216.136, Florida Statutes, to read:
135 216.136 Consensus estimating conferences; duties and
136 principals.—
137 (6) SOCIAL SERVICES ESTIMATING CONFERENCE.—
138 (c) The Social Services Estimating Conference shall be
139 convened quarterly for the purpose of developing information
140 that is related to mental health, substance abuse, child
141 welfare, or juvenile justice services needs, including, but not
142 limited to, enrollment, caseload, utilization, expenditures, and
143 documentation required under s. 287.0575(3)(d), and that
144 reflects population growth and economic trends.
145 Section 3. This act shall take effect upon becoming a law.