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Senate Bill 0156

Florida Senate - 1998 SB 156 By the Committee on Governmental Reform and Oversight 302-259A-98 1 A bill to be entitled 2 An act relating to program administration by 3 the Department of Children and Family Services; 4 amending s. 20.19, F.S.; providing additional 5 duties for the department's Office of Standards 6 and Evaluation with respect to measuring 7 standards of performance and to reports due to 8 the Legislature; providing duties of program 9 offices; requiring an evaluation and a report 10 from the Assistant Secretary for 11 Administration; revising requirements for the 12 department in procuring contracts for client 13 services and in establishing standards for the 14 delivery of those services; requiring the 15 department to procure certain services 16 competitively; allowing a phase-in period for 17 competitive procurement of certain client 18 services; authorizing deferral of the 19 competitive contracting process under certain 20 circumstances; limiting the duration of such 21 deferrals; authorizing the department to adopt 22 rules relating to an alternative competitive 23 procurement process; providing intent that the 24 department enter multi-year contracts; 25 providing for procuring services from multiple 26 sources; requiring that the department adopt 27 rules for imposing penalties against a provider 28 that fails to comply with a requirement for 29 corrective action; requiring notice; requiring 30 that the department develop, and incorporate 31 into the department's Employee Handbook, 1 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 standards of conduct and a range of 2 disciplinary actions relating to certain staff 3 functions; requiring the department to assure 4 the accountability of each provider of client 5 services; providing duties of the Auditor 6 General and the Office of Program Policy 7 Analysis and Government Accountability; 8 providing for cancellation of contracts under 9 specified circumstances; providing for 10 department liens against certain property 11 constructed or renovated using state funds; 12 amending 394.74, F.S.; adding a provision that 13 contracts for services must be performance 14 based; removing an obsolete requirement 15 associated with cost reimbursement contracts; 16 amending s. 394.76, F.S.; authorizing 17 performance-based contracts, 18 purchase-of-service contracts, and start-up 19 contracts; requiring an evaluation of the 20 contractor's performance; requiring reports to 21 the Legislature by the department; requiring 22 the department to provide training for staff in 23 negotiating contracts; requiring the department 24 to ensure certain assistance to staff who are 25 negotiating a contract; requiring the 26 department to create contract management units 27 at the district level; providing specifications 28 for these units; specifying the date by which 29 the contract management units must be in 30 operation; requiring the department to evaluate 31 contracting functions in the service districts; 2 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 authorizing the department to exercise budget 2 and personnel flexibility; authorizing the 3 department to transfer specified funds from 4 certain budget entities in order to create 5 certain staff positions; requiring a report; 6 providing an effective date. 7 8 WHEREAS, it is the intent of the Legislature that the 9 Department of Children and Family Services achieve and 10 maintain accountability from all providers of client services 11 in order to assure a high level of quality and effectiveness 12 of those services, and 13 WHEREAS, it is further the intent of the Legislature 14 that the Office of Standards and Evaluation, in conjunction 15 with the program offices at the headquarters of the 16 department, play a central role in assuring that this 17 accountability is achieved and maintained, NOW, THEREFORE, 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. Subsections (3), (4), and (5) of section 22 20.19, Florida Statutes, are amended, present subsections 23 (16), (17), (18), (19), and (20) are redesignated as 24 subsections (17), (18), (19), (20), and (21), respectively, 25 and a new subsection (16) is added to that section, to read: 26 20.19 Department of Children and Family 27 Services.--There is created a Department of Children and 28 Family Services. 29 (3) OFFICE OF STANDARDS AND EVALUATION.--There is 30 created under the secretary the Office of Standards and 31 Evaluation which has the following responsibilities: 3 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 (a) With the assistance of the assistant secretaries, 2 district administrators, and health and human services boards, 3 establishing systems and strategies to evaluate performance in 4 achieving outcome measures and performance and productivity 5 standards related to service delivery, program and financial 6 administration, and support, and procedures. 7 (b) Directing the development of monitoring and 8 quality assurance systems for statewide and district services 9 that will routinely assess the efficiency and effectiveness of 10 departmental and provider staff and services. 11 (c) Validating the monitoring and quality assurance 12 activities of statewide and district service providers and 13 staff to ensure that these activities are being conducted 14 routinely and that corrective action is being taken to 15 eliminate deficiencies detected by these activities. 16 (d) Conducting evaluations, directly or by contract, 17 of programs and services provided by the department to 18 determine whether improvement in the condition of individuals, 19 families, and communities has occurred as a result of these 20 programs and services. The evaluations must include an 21 assessment of the short-term effects on individuals and 22 families and the long-term effects on communities and the 23 state. Outcome evaluation studies shall be conducted in 24 response to priorities determined by the department and the 25 Legislature and to the extent that funding is provided by the 26 Legislature. 27 (e) Consulting with the inspector general to ensure 28 the integrity of the monitoring and evaluation process and the 29 validity of the data derived from these activities. 30 31 4 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 (f) Developing procedures for the competitive 2 procurement of external evaluations, including detailed 3 specifications for all evaluation contracts. 4 (g) Developing the budget for the department's 5 evaluation efforts and identifying future evaluation needs, 6 including infrastructure needs to support the outcome 7 evaluation function. 8 (h) Evaluating and reporting to the Legislature, 9 beginning December 31, 1999, and by October 31 of each 10 subsequent year, on the following issues: 11 1. The effectiveness of the department's performance 12 contracting system in accomplishing program outcomes and 13 supporting statewide quality assurance systems. 14 2. The adequacy of resources and internal controls 15 used by each program and service district to ensure 16 effectiveness and quality of client services provided through 17 standard contracts and other agreements. 18 3. The effectiveness and quality of contracted 19 services for each client target group, as determined by annual 20 performance reporting and results of quality assurance 21 monitoring. 22 4. The status of the department's progress in 23 complying with the provisions of this act, including the work 24 of the contract evaluation teams established pursuant to 25 paragraph (9)(g). 26 (i)(h) Such other duties relating to evaluation as may 27 be assigned to the Office of Standards and Evaluation by the 28 secretary. 29 (4) PROGRAM OFFICES.-- 30 (a) There are created program offices, each of which 31 shall be headed by an assistant secretary who shall be 5 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 appointed by and serve at the pleasure of the secretary. Each 2 program office shall have the following responsibilities: 3 1. Ensuring that family services programs are 4 implemented according to legislative intent and as provided in 5 state and federal laws, rules, and regulations. 6 2. Establishing program standards and performance 7 objectives. 8 3. Reviewing, monitoring, and ensuring compliance with 9 statewide standards and performance measures objectives. 10 4. Providing general statewide supervision of the 11 administration of service programs, including, but not limited 12 to: 13 a. Developing and coordinating training for service 14 programs. 15 b. Coordinating program research. 16 c. Identifying statewide program needs and 17 recommending solutions and priorities. 18 d. Providing technical assistance for the 19 administrators and staff of the service districts. 20 e. Assisting district administrators in staff 21 development and training. 22 f. Monitoring service programs to ensure program 23 quality among service districts. 24 4. Conducting outcome evaluations and ensuring program 25 effectiveness. 26 5. Developing workload and productivity standards. 27 6. Developing resource allocation methodologies. 28 7. Compiling reports, analyses, and assessment of 29 client needs on a statewide basis. 30 8. Ensuring the continued interagency collaboration 31 with the Department of Education for the development and 6 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 integration of effective programs to serve children and their 2 families. 3 9. Other duties as are assigned by the secretary. 4 (b) The following program offices are established and 5 may be consolidated, restructured, or rearranged by the 6 secretary; provided any such consolidation, restructuring, or 7 rearranging is for the purpose of encouraging service 8 integration through more effective and efficient performance 9 of the program offices or parts thereof: 10 1. Economic Self-Sufficiency Program Office.--The 11 responsibilities of this office encompass income support 12 programs within the department, such as temporary assistance 13 to families with dependent children, food stamps, welfare 14 reform, and state supplementation of the supplemental security 15 income (SSI) program. 16 2. Developmental Services Program Office.--The 17 responsibilities of this office encompass programs operated by 18 the department for developmentally disabled persons. 19 Developmental disabilities include any disability defined in 20 s. 393.063. 21 3. Children and Families Program Office.--The 22 responsibilities of this program office encompass early 23 intervention services for children and families at risk; 24 intake services for protective investigation of abandoned, 25 abused, and neglected children; interstate compact on the 26 placement of children programs; adoption; child care; 27 out-of-home care programs and other specialized services to 28 families; and child protection and sexual abuse treatment 29 teams created under chapter 415, excluding medical direction 30 functions. 31 7 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 4. Alcohol, Drug Abuse, and Mental Health Program 2 Office.--The responsibilities of this office encompass all 3 alcohol, drug abuse, and mental health programs operated by 4 the department. 5 (5) ASSISTANT SECRETARY FOR ADMINISTRATION.-- 6 (a) The secretary shall appoint an Assistant Secretary 7 for Administration who serves at the pleasure of the 8 secretary. The Assistant Secretary for Administration is 9 responsible for: 10 1. Supervising all of the budget management activities 11 of the department and serving as the chief budget officer of 12 the department. 13 2. Providing administrative and management support 14 services above the district level. 15 3. Monitoring administrative and management support 16 services in the districts. 17 4. Developing and implementing uniform policies, 18 procedures, and guidelines with respect to personnel 19 administration, finance and accounting, budget, grants 20 management and disbursement, contract administration, 21 procurement, information and communications systems, 22 management evaluation and improvement, and general services, 23 including housekeeping, maintenance, and leasing of 24 facilities. 25 5. Performing such other administrative duties as are 26 assigned by the secretary. 27 (b) If reductions in a district's operating budget 28 become necessary during any fiscal year, the department shall 29 develop a formula to be used in its recommendations to the 30 Governor and Legislature which does not disproportionately 31 8 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 reduce a district's operating budget because of voluntary 2 county appropriations to department programs. 3 (c) The Assistant Secretary for Administration shall 4 evaluate and report to the Legislature by July 1, 1999, and 5 annually thereafter, on the methods used by each program to 6 ensure the fiscal accountability of each provider of client 7 services with whom the department contracts. 8 (d) The Assistant Secretary for Administration shall 9 evaluate the administrative operations of the districts, and 10 may require that districts develop and submit corrective 11 action plans in those areas that do not conform to the 12 department's uniform operating procedures. 13 (16) CONTRACTING AND PERFORMANCE STANDARDS.-- 14 (a) The department will establish performance 15 standards for all contracted client services. Notwithstanding 16 s. 287.057(3)(f), the department must competitively procure 17 any contract for client services when any of the following 18 occurs: 19 1. The provider fails to meet performance standards 20 established by the department after the provider has been 21 given a reasonable opportunity to achieve the established 22 standards. 23 2. A new program or service has been authorized and 24 funded by the Legislature and the annual value of the contract 25 is $300,000 or more. 26 3. A program or service is expanded based on an 27 increased appropriation of more than 10 percent above the 28 prior year's appropriation for that program or service and the 29 annual value of the contract is $300,000 or more. 30 4. The annual value of the contract exceeds $500,000 31 and the contract has been with the same service provider for 3 9 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 years or more, unless the contract is with a governmental 2 entity. 3 (b) The department may phase in the implementation of 4 competitive procurement for client services contracts that 5 exceed $300,000 in annual contract value over a 3-year period, 6 to begin January 1, 1999. The department shall accomplish the 7 phase-in by determining which contracts must be competitively 8 procured to comply with this subsection and shall 9 competitively procure one-third of the contracts during each 10 of the subsequent 3 years. 11 (c) The competitive requirements of paragraph (a) must 12 be initiated for each contract that meets the criteria of this 13 subsection within the time limits set forth in paragraph (b), 14 unless the secretary makes a written determination that 15 particular facts and circumstances require deferral of the 16 competitive process. Facts and circumstances must be 17 specifically described for each individual contract proposed 18 for deferral and must include one or more of the following: 19 1. An immediate threat to the health, safety, or 20 welfare of the department's clients. 21 2. A threat to appropriate use or disposition of 22 facilities that have been financed in whole, or substantially 23 in part, through contracts or agreements with a state agency. 24 3. A threat to the service infrastructure of a 25 community which could endanger the well-being of the 26 department's clients. 27 28 Competitive procurement of client services may not be deferred 29 for longer than 3 years beyond the time limits set forth in 30 paragraph (b) and deferral may not be used to circumvent the 31 intent of paragraph (b). 10 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 (d) The Legislature intends for the department to 2 obtain services in the manner that is most cost-effective for 3 the state, in the manner that provides the greatest long-term 4 benefits to the clients receiving services, and in the manner 5 that minimizes the disruption of client services. In order to 6 meet these legislative goals, the department may adopt rules 7 providing procedures for the competitive procurement of 8 contracted client services which represent an alternative to 9 the request-for-proposal or the invitation-to-bid process. The 10 alternative competitive procedures shall permit the department 11 to solicit professional qualifications from prospective 12 providers and to evaluate such statements of qualification 13 before requesting service proposals. The department may limit 14 the firms invited to submit service proposals to only those 15 firms that have demonstrated the highest level of professional 16 capability to provide the services under consideration, but 17 may not invite fewer than three firms to submit service 18 proposals, unless fewer then three firms submitted 19 satisfactory statements of qualification. The alternative 20 procedures must, at a minimum, allow the department to 21 evaluate competing proposals and select the proposal that 22 provides the greatest benefit to the state while considering 23 the quality of the services, dependability and integrity of 24 the provider, dependability of the provider's services, the 25 experience of the provider in serving target populations or 26 client groups substantially identical to members of the target 27 population for the contract in question, and the ability of 28 the provider to secure local funds to support the delivery of 29 services, including, but not limited to, funds derived from 30 county governments. These alternative procedures need not 31 11 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 conform to the requirements of s. 287.057(1) or (2) or s. 2 287.042. 3 (e) The department shall review the period for which 4 it executes contracts and, to the greatest extent practical, 5 shall execute multi-year contracts to make the most efficient 6 use of the resources devoted to contract processing and 7 execution. 8 (f) When it is in the best interest of a defined 9 segment of its consumer population, the department may 10 competitively procure and contract for systems of treatment or 11 service that involve multiple providers, rather than procuring 12 and contracting for treatment or services separately from each 13 participating provider. The department must ensure that all 14 providers that participate in the treatment or service system 15 meet all applicable statutory, regulatory, service-quality, 16 and cost-control requirements. If other governmental entities 17 or units of special purpose government contribute matching 18 funds to the support of a given system of treatment or 19 service, the department shall formally request information 20 from those funding entities in the procurement process and 21 shall take the information received from those funding 22 entities into account in the selection process. The department 23 may also involve nongovernmental funding entities in the 24 procurement process when appropriate. 25 (g) The department may contract for or provide 26 assessment and case-management services independently of 27 treatment services. 28 (h) The department shall adopt, by rule, provisions 29 for including in its contracts incremental penalties to be 30 imposed by its contract managers on a service provider due to 31 the provider's failure to comply with a requirement for 12 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 corrective action. Any financial penalty that is imposed upon 2 a provider may not be paid from funds being used to provide 3 services to clients, and the provider may not reduce the 4 amount of services being delivered to clients as a method for 5 offsetting the impact of the penalty. If a financial penalty 6 is imposed upon a provider that is a corporation, the 7 department shall notify, at a minimum, the board of directors 8 of the corporation. The department may notify, at its 9 discretion, any additional parties that the department 10 believes may be helpful in obtaining the corrective action 11 that is being sought. Further, the rules adopted by the 12 department must include provisions that permit the department 13 to deduct the financial penalties from funds that would 14 otherwise be due to the provider, not to exceed 10 percent of 15 the amount that otherwise would be due to the provider for the 16 period of noncompliance. If the department imposes a financial 17 penalty, it shall advise the provider in writing of the cause 18 for the penalty. A failure to include such deductions in a 19 request for payment constitutes a ground for the department to 20 reject that request for payment. The additional remedies 21 identified in this paragraph do not limit or restrict the 22 department's application of any other remedy available to it 23 in the contract or under law. The additional remedies 24 described in this paragraph may be cumulative and may be 25 assessed upon each separate failure to comply with 26 instructions from the department to complete corrective 27 action. 28 (i) The department shall develop standards of conduct 29 and a range of disciplinary actions for its employees which 30 are specifically related to carrying out contracting 31 responsibilities, and shall incorporate the standards and 13 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 disciplinary actions in its Employee Handbook by December 31, 2 1998. 3 (j) The department must implement systems and controls 4 to ensure financial integrity and service-provision quality in 5 the developmental services Medicaid waiver service system no 6 later than December 31, 1998. The Auditor General shall 7 include specific reference to systems and controls related to 8 financial integrity in the developmental services Medicaid 9 waiver service system in his audit of the department for the 10 1998-1999 fiscal year, and for all subsequent fiscal years. 11 The Office of Program Policy Analysis and Government 12 Accountability shall review the department's systems and 13 controls related to service-provision quality in the 14 developmental services Medicaid waiver service system and 15 submit a report to the Legislature by December 31, 1999. 16 (k) If a provider fails to meet the performance 17 standards established in the contract, the department may 18 allow a reasonable period for the provider to correct 19 performance deficiencies. If performance deficiencies are not 20 resolved to the satisfaction of the department within the 21 prescribed time, and if no extenuating circumstances can be 22 documented by the provider to the department's satisfaction, 23 the department must cancel the contract with the provider. The 24 department may not enter into a new contract with that same 25 provider for the services for which the contract was 26 previously canceled for a period of at least 24 months after 27 the date of cancellation. 28 (l) The department shall file a lien against the 29 property where facilities are located which have been 30 constructed or substantially renovated, in whole or in part, 31 through the use of state funds. The lien must be recorded in 14 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 the county where the property is located upon the execution of 2 the contract authorizing such construction or renovation. The 3 lien must specify that the department has a financial interest 4 in the property equal to the pro rata portion of the state's 5 original investment of the then-fair-market value for 6 renovations, or the proportionate share of the cost of the 7 construction. The lien must also specify that the department's 8 interest is proportionately reduced and subsequently vacated 9 over a 20-year period of depreciation. The contract must 10 include a provision that, as a condition of receipt of state 11 funding for this purpose, the provider agrees that, if it 12 disposes of the property before the department's interest is 13 vacated, the provider will refund the proportionate share of 14 the state's initial investment, as adjusted by depreciation. 15 Section 2. Subsections (2) and (3) of section 394.74, 16 Florida Statutes, are amended to read: 17 394.74 Contracts for provision of local alcohol, drug 18 abuse, and mental health programs.-- 19 (2) Contracts for service shall be performance based 20 and consistent with the approved district plan and the service 21 priorities established in s. 394.75(4). 22 (3) Contracts shall include, but are not limited to: 23 (a) A provision that, within the limits of available 24 resources, primary care alcohol, drug abuse, and mental health 25 services shall be available to any individual residing or 26 employed within the service area, regardless of ability to pay 27 for such services, current or past health condition, or any 28 other factor; 29 (b) A provision that such services be available with 30 priority of attention being given to individuals who exhibit 31 symptoms of chronic or acute alcoholism, drug abuse, or mental 15 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 illness and who are unable to pay the cost of receiving such 2 services; 3 (c) A provision that every reasonable effort to 4 collect appropriate reimbursement for the cost of providing 5 alcohol, drug abuse, and mental health services to persons 6 able to pay for services, including first-party payments and 7 third-party payments, shall be made by facilities providing 8 services pursuant to this act; and 9 (d) A program description and line-item operating 10 budget by program service component for alcohol, drug abuse, 11 and mental health services, provided the entire proposed 12 operating budget for the service provider will be displayed; 13 and 14 (d)(e) A requirement that the contractor must conform 15 to department rules and the priorities established thereunder. 16 Section 3. Subsection (3) of section 394.76, Florida 17 Statutes, is amended to read: 18 394.76 Financing of district programs and 19 services.--If the local match funding level is not provided in 20 the General Appropriations Act or the substantive bill 21 implementing the General Appropriations Act, such funding 22 level shall be provided as follows: 23 (3) The state share of financial participation shall 24 be determined by the following formula: 25 (a) For performance-based contracts and 26 purchase-of-service contracts, the state must purchase units 27 of services or outcomes at a per-unit rate. The state rate 28 must be a negotiated rate not to exceed the state model rate 29 and model rates must be reevaluated biennially. At a minimum, 30 financial rules must address a chart of accounts for state 31 reporting and auditing and programmatic rules must address 16 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 performance outcomes, including client satisfaction and 2 functional assessments, service protocols, quality assurance 3 standards, and service standards. 4 (b) For start-up contracts, the state shall reimburse 5 actual expenditures made in accordance with contract 6 specifications that include a description of services to be 7 provided and a detailed line-item budget. 8 9 All contracts for client services must provide for an 10 evaluation of the contractor's performance. The evaluation 11 must be based on contractually agreed-upon outcome performance 12 standards that measure the effectiveness of the services 13 provided. The state share of approved program costs shall be 14 a percentage of the net balance determined by deducting from 15 the total operating cost of services and programs, as 16 specified in s. 394.675(1), those expenditures which are 17 ineligible for state participation as provided in subsection 18 (7) and those ineligible expenditures established by rule of 19 the department pursuant to s. 394.78. 20 (c)(b) Residential and case management services which 21 are funded as part of a deinstitutionalization project shall 22 not require local matching funds and shall not be used as 23 local matching funds. The state and federal financial 24 participation portions of Medicaid earnings pursuant to Title 25 XIX of the Social Security Act, except for the amount of 26 general revenue equal to the amount appropriated in 1985-1986 27 plus all other general revenue that is shifted from any other 28 alcohol, drug abuse, and mental health appropriation category 29 after fiscal year 1986-1987, shall not require local matching 30 funds and shall not be used as local matching funds. Local 31 matching funds are not required for general revenue 17 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 transferred by the department into alcohol, drug abuse, and 2 mental health appropriations categories during a fiscal year 3 to match federal funds earned from Medicaid services provided 4 for mental health clients in excess of the amounts initially 5 appropriated. Funds for children's services which were 6 provided through the Children, Youth, and Families Services 7 budget which did not require local match prior to being 8 transferred to the Alcohol, Drug Abuse, and Mental Health 9 Services budget shall be exempt from local matching 10 requirements. All other contracted community alcohol and 11 mental health services and programs, except as identified in 12 s. 394.457(3), shall require local participation on a 75-to-25 13 state-to-local ratio. 14 (d)(c) The expenditure of 100 percent of all 15 third-party payments and fees shall be considered as eligible 16 for state financial participation if such expenditures are in 17 accordance with subsection (7) and the approved district plan. 18 (e)(d) Fees generated by residential and case 19 management services which are funded as part of a 20 deinstitutionalization program and do not require local 21 matching funds shall be used to support program costs approved 22 in the district plan. 23 (f)(e) Any earnings pursuant to Title XIX of the 24 Social Security Act in excess of the amount appropriated shall 25 be used to support program costs approved in the district 26 plan. 27 Section 4. (1) The Department of Children and Family 28 Services shall take steps to ensure that department contracts 29 are negotiated in a manner that assures that the state's 30 interests are well represented. In order to make this 31 assurance, the department must request voluntary assistance 18 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 from outside entities, including, but not limited to, other 2 state agencies, to provide training for departmental employees 3 who negotiate contracts. Further, employees who negotiate 4 contracts must have available to them other department 5 employees who have expertise in legal and fiscal matters and 6 employees who are especially skilled in conducting contract 7 negotiations to ensure that the interests of the state are 8 well represented. 9 (2) The department shall create contract management 10 units at the district level which must be staffed by 11 individuals who are specifically trained to perform the 12 functions related to contract management. The contract 13 management units are responsible for monitoring the 14 programmatic and administrative performance of the 15 department's contracts for client services and shall report to 16 the appropriate district administrator. To the greatest extent 17 possible, the members of the contract management units shall 18 be career service employees who are assigned to the same pay 19 grade. The contract management units shall be in operation 20 throughout the state no later than March 1, 1999. 21 (3) The department shall evaluate the effectiveness 22 and efficiency of contracting functions in each service 23 district and report to the Legislature by December 15, 1999. 24 For districts where contracting functions have been 25 centralized for at least 12 months, the department shall 26 report on the effectiveness of such centralization. For 27 districts that elected not to centralize contracting 28 functions, the report must include the reasons for that 29 decision and the steps a district has taken to improve 30 contracting within the district. 31 19 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 Section 5. (1) It is critical that the Department of 2 Children and Family Services have an adequate number and 3 quality of staff to ensure the effective negotiation and 4 management of contracts for client services. The Legislature 5 intends that the department be permitted to have limited 6 flexibility to use funds for improving contract negotiation, 7 contract management, oversight, quality assurance, training, 8 and other related activities. To this end, effective October 9 1, 1998, the department may transfer up to 0.25 percent of the 10 total funds from categories used to pay for contractually 11 provided client services of any budget entity within the 12 department. Such transfer may not exceed a total of $3 million 13 in any fiscal year. When necessary, the department may 14 establish, in accordance with section 216.177, Florida 15 Statutes, additional positions that will be exclusively 16 devoted to these functions. Any positions required under this 17 section may be established notwithstanding sections 18 216.262(1)(a) and 216.351, Florida Statutes. 19 (2) The department must report to the Legislature by 20 July 1, 2000, on the impact of this section. This report must, 21 at a minimum, include quantifiable evidence demonstrating that 22 the department is able to provide additional client services 23 within the same appropriation through improved ability to 24 negotiate and manage contracts. 25 Section 6. This act shall take effect October 1, 1998. 26 27 28 29 30 31 20 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 156 302-259A-98 1 ***************************************** 2 SENATE SUMMARY 3 Requires that the Office of Standards and Evaluation of the Department of Children and Family Services evaluate 4 the process by which the department ensures the quality of contracted services, the fiscal accountability of 5 providers, and the support provided to staff. Requires that the department annually report to the Legislature. 6 Requires that the department competitively procure a contract for client services if the provider fails to 7 meet performance standards, if the contract is for a new program or service and the value of the contract exceeds 8 $300,000, or if the value of the contract exceeds $300,000 and the appropriation is more than 10 percent 9 over the amount appropriated in the prior year. Authorizes the department to phase in implementation of 10 competitive procurement. Authorizes the department to adopt rules for alternative procedures for procuring 11 services contracts. Requires that the department adopt rules for imposing incremental penalties against a 12 service provider that fails to take required corrective action. Requires that the department develop standards of 13 conduct and disciplinary sanctions for employees who have responsibility for contracts. Requires that the 14 department ensure the financial integrity of the Medicaid waiver service system by December 31, 1998. Requires that 15 the department record a lien against certain property in order to protect the state's investment in construction 16 or renovations to the property. Requires that the department request assistance in training departmental 17 employees who negotiate contracts. Requires the department to evaluate the effectiveness of centralizing 18 contracting functions within certain service districts and report to the Legislature. Authorizes the department 19 to transfer certain funds and establish additional positions. Requires that the department report to the 20 Legislature. 21 22 23 24 25 26 27 28 29 30 31 21