Amendment
Bill No. 1476

Amendment No. 190073

CHAMBER ACTION
Senate		House
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1	Representative(s) Galvano offered the following:
2
3	Amendment (with title amendment)
4	On page 2, line(s) 2,
5	remove:  everything after the enacting clause
6
7	and insert:
8	Section 1.  Department of Children and Family Services;
9	procurement of contractual services; contract management.--
10	(1)  DEFINITIONS.--As used in this section, the term:
11	(a)  "Contract manager" means the department employee who
12	is responsible for enforcing the compliance with administrative
13	and programmatic terms and conditions of a contract. The
14	contract manager is the primary point of contact through which
15	all contracting information flows between the department and the
16	contractor. The contract manager is responsible for day-to-day
17	contract oversight, including approval of contract deliverables
18	and invoices. All actions related to the contract shall be
19	initiated by or coordinated with the contract manager. The
20	contract manager maintains the official contract files.
21	(b)  "Contract monitor" means the department employee who
22	is responsible for observing, recording, and reporting to the
23	contract manager and other designated entities the information
24	necessary to assist the contract manager and program management
25	in determining whether the contractor is in compliance with the
26	administrative and programmatic terms and conditions of the
27	contract.
28	(c)  "Department" means the Department of Children and
29	Family Services.
30	(d)  "Outsourcing" means the process of contracting with an
31	external service provider to provide a service, in whole or in
32	part, while the department retains the responsibility and
33	accountability for the service.
34	(2)  PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.--
35	(a)  Notwithstanding section 287.057(5)(f)13., Florida
36	Statutes, whenever the department intends to contract with a
37	public postsecondary institution to provide a service, the
38	department must allow all public postsecondary institutions in
39	this state that are accredited by the Southern Association of
40	Colleges and Schools to bid on the contract. Thereafter,
41	notwithstanding any other provision to the contrary, if a public
42	postsecondary institution intends to subcontract for any service
43	awarded in the contract, the subcontracted service must be
44	procured by competitive procedures.
45	(b)  When it is in the best interest of a defined segment
46	of its consumer population, the department may competitively
47	procure and contract for systems of treatment or service that
48	involve multiple providers, rather than procuring and
49	contracting for treatment or services separately from each
50	participating provider. The department must ensure that all
51	providers that participate in the treatment or service system
52	meet all applicable statutory, regulatory, service-quality, and
53	cost-control requirements. If other governmental entities or
54	units of special purpose government contribute matching funds to
55	the support of a given system of treatment or service, the
56	department shall formally request information from those funding
57	entities in the procurement process and may take the information
58	received into account in the selection process. If a local
59	government contributes matching funds to support the system of
60	treatment or contracted service and if the match constitutes at
61	least 25 percent of the value of the contract, the department
62	shall afford the governmental match contributor an opportunity
63	to name an employee as one of the persons required by section
64	287.057(17), Florida Statutes, to evaluate or negotiate certain
65	contracts, unless the department sets forth in writing the
66	reason why the inclusion would be contrary to the best interest
67	of the state. Any employee so named by the governmental match
68	contributor shall qualify as one of the persons required by
69	section 287.057(17), Florida Statutes. A governmental entity or
70	unit of special purpose government may not name an employee as
71	one of the persons required by section 287.057(17), Florida
72	Statutes, if it, or any of its political subdivisions, executive
73	agencies, or special districts, intends to compete for the
74	contract to be awarded. The governmental funding entity or
75	contributor of matching funds must comply with all procurement
76	procedures set forth in section 287.057, Florida Statutes, when
77	appropriate and required.
78	(c)  The department may procure and contract for or provide
79	assessment and case-management services independently from
80	treatment services.
81	(3)  CONTRACT-MANAGEMENT REQUIREMENTS AND PROCESS.-- The
82	Department of Children and Family Services shall review the time
83	period for which the department executes contracts and shall
84	execute multiyear contracts to make the most efficient use of
85	the resources devoted to contract processing and execution.
86	Whenever the department chooses not to use a multiyear contract,
87	a justification for that decision must be contained in the
88	contract. Notwithstanding section 287.057(15), Florida Statutes,
89	the department is responsible for establishing a contract-
90	management process that requires a member of the department's
91	Senior Management or Select Exempt Service to assign in writing
92	the responsibility of a contract to a contract manager. The
93	department shall maintain a set of procedures describing its
94	contract-management process which must minimally include the
95	following requirements:
96	(a)  The contract manager shall maintain the official
97	contract file throughout the duration of the contract and for a
98	period not less than 6 years after the termination of the
99	contract.
100	(b)  The contract manager shall review all invoices for
101	compliance with the criteria and payment schedule provided for
102	in the contract and shall approve payment of all invoices before
103	their transmission to the Department of Financial Services for
104	payment.
105	(c)  The contract manager shall maintain a schedule of
106	payments and total amounts disbursed and shall periodically
107	reconcile the records with the state's official accounting
108	records.
109	(d)  For contracts involving the provision of direct client
110	services, the contract manager shall periodically visit the
111	physical location where the services are delivered and speak
112	directly to clients receiving the services and the staff
113	responsible for delivering the services.
114	(e)  The contract manager shall meet at least once a month
115	directly with the contractor's representative and maintain
116	records of such meetings.
117	(f)  The contract manager shall periodically document any
118	differences between the required performance measures and the
119	actual performance measures. If a contractor fails to meet and
120	comply with the performance measures established in the
121	contract, the department may allow a reasonable period for the
122	contractor to correct performance deficiencies. If performance
123	deficiencies are not resolved to the satisfaction of the
124	department within the prescribed time, and if no extenuating
125	circumstances can be documented by the contractor to the
126	department's satisfaction, the department must terminate the
127	contract. The department may not enter into a new contract with
128	that same contractor for the services for which the contract was
129	previously terminated for a period of at least 24 months after
130	the date of termination. The contract manager shall obtain and
131	enforce corrective-action plans, if appropriate, and maintain
132	records regarding the completion or failure to complete
133	corrective-action items.
134	(g)  The contract manager shall document any contract
135	modifications, which shall include recording any contract
136	amendments as provided for in this section.
137	(h)  The contract manager shall be properly trained before
138	being assigned responsibility for any contract.
139	(4)  CONTRACT MONITORING REQUIREMENTS AND PROCESS.--The
140	department shall establish contract monitoring units staffed by
141	career service employees who report to a member of the Select
142	Exempt Service or Senior Management Service and who have been
143	properly trained to perform contract monitoring, with at least
144	one member of the contract monitoring unit possessing specific
145	knowledge and experience in the contract's program area. The
146	department shall establish a contract-monitoring process that
147	must include, but need not be limited to, the following
148	requirements:
149	(a)  Performing a risk assessment at the start of each
150	fiscal year and preparing an annual contract monitoring schedule
151	that includes consideration for the level of risk assigned. The
152	department may monitor any contract at any time regardless of
153	whether such monitoring was originally included in the annual
154	contract-monitoring schedule.
155	(b)  Preparing a contract monitoring plan, including
156	sampling procedures, before performing on site monitoring at
157	external locations of a service provider. The plan must include
158	a description of the programmatic, fiscal, and administrative
159	components that will be monitored on site. If appropriate,
160	clinical and therapeutic components may be included.
161	(c)  Conducting analyses of the performance and compliance
162	of an external service provider by means of desk reviews if the
163	external service provider will not be monitored on site during a
164	fiscal year.
165	(d)  Unless the department sets forth in writing the need
166	for an extension, providing a written report presenting the
167	results of the monitoring within 30 days after the completion of
168	the on-site monitoring or desk review.
169	(e)  Developing and maintaining a set of procedures
170	describing the contract-monitoring process.
171	Section 2.  Section 402.73, Florida Statutes, is amended to
172	read:
173	402.73  Contracting and performance standards.--
174	(1)  The Department of Children and Family Services shall
175	establish performance standards for all contracted client
176	services. Notwithstanding s. 287.057(5)(f), the department must
177	competitively procure any contract for client services when any
178	of the following occurs:
179	(a)  The provider fails to meet appropriate performance
180	standards established by the department after the provider has
181	been given a reasonable opportunity to achieve the established
182	standards.
183	(b)  A new program or service has been authorized and
184	funded by the Legislature and the annual value of the contract
185	for such program or service is $300,000 or more.
186	(c)  The department has concluded, after reviewing market
187	prices and available treatment options, that there is evidence
188	that the department can improve the performance outcomes
189	produced by its contract resources. At a minimum, the department
190	shall review market prices and available treatment options
191	biennially. The department shall compile the results of the
192	biennial review and include the results in its annual
193	performance report to the Legislature pursuant to chapter 94-
194	249, Laws of Florida. The department shall provide notice and an
195	opportunity for public comment on its review of market prices
196	and available treatment options.
197	(2)  The competitive requirements of subsection (1) must be
198	initiated for each contract that meets the criteria of this
199	subsection, unless the secretary makes a written determination
200	that particular facts and circumstances require deferral of the
201	competitive process. Facts and circumstances must be
202	specifically described for each individual contract proposed for
203	deferral and must include one or more of the following:
204	(a)  An immediate threat to the health, safety, or welfare
205	of the department's clients.
206	(b)  A threat to appropriate use or disposition of
207	facilities that have been financed in whole, or in substantial
208	part, through contracts or agreements with a state agency.
209	(c)  A threat to the service infrastructure of a community
210	which could endanger the well-being of the department's clients.
211
212	Competitive procurement of client services contracts that meet
213	the criteria in subsection (1) may not be deferred for longer
214	than 1 year.
215	(3)  The Legislature intends that the department obtain
216	services in the manner that is most cost-effective for the
217	state, that provides the greatest long-term benefits to the
218	clients receiving services, and that minimizes the disruption of
219	client services. In order to meet these legislative goals, the
220	department may adopt rules providing procedures for the
221	competitive procurement of contracted client services which
222	represent an alternative to the request-for-proposal or
223	invitation-to-bid process. The alternative competitive
224	procedures shall permit the department to solicit professional
225	qualifications from prospective providers and to evaluate such
226	statements of qualification before requesting service proposals.
227	The department may limit the firms invited to submit service
228	proposals to only those firms that have demonstrated the highest
229	level of professional capability to provide the services under
230	consideration, but may not invite fewer than three firms to
231	submit service proposals, unless fewer than three firms
232	submitted satisfactory statements of qualification. The
233	alternative procedures must, at a minimum, allow the department
234	to evaluate competing proposals and select the proposal that
235	provides the greatest benefit to the state while considering the
236	quality of the services, dependability, and integrity of the
237	provider, the dependability of the provider's services, the
238	experience of the provider in serving target populations or
239	client groups substantially identical to members of the target
240	population for the contract in question, and the ability of the
241	provider to secure local funds to support the delivery of
242	services, including, but not limited to, funds derived from
243	local governments. These alternative procedures need not conform
244	to the requirements of s. 287.042 or s. 287.057(1) or (2).
245	(4)  The department shall review the period for which it
246	executes contracts and, to the greatest extent practicable,
247	shall execute multiyear contracts to make the most efficient use
248	of the resources devoted to contract processing and execution.
249	(5)  When it is in the best interest of a defined segment
250	of its consumer population, the department may competitively
251	procure and contract for systems of treatment or service that
252	involve multiple providers, rather than procuring and
253	contracting for treatment or services separately from each
254	participating provider. The department must ensure that all
255	providers that participate in the treatment or service system
256	meet all applicable statutory, regulatory, service-quality, and
257	cost-control requirements. If other governmental entities or
258	units of special purpose government contribute matching funds to
259	the support of a given system of treatment or service, the
260	department shall formally request information from those funding
261	entities in the procurement process and may take the information
262	received into account in the selection process. If a local
263	government contributes match to support the system of treatment
264	or contracted service and if the match constitutes at least 25
265	percent of the value of the contract, the department shall
266	afford the governmental match contributor an opportunity to name
267	an employee as one of the persons required by s. 287.057(17) to
268	evaluate or negotiate certain contracts, unless the department
269	sets forth in writing the reason why such inclusion would be
270	contrary to the best interest of the state. Any employee so
271	named by the governmental match contributor shall qualify as one
272	of the persons required by s. 287.057(17). No governmental
273	entity or unit of special purpose government may name an
274	employee as one of the persons required by s. 287.057(17) if it,
275	or any of its political subdivisions, executive agencies, or
276	special districts, intends to compete for the contract to be
277	awarded. The governmental funding entity or match contributor
278	shall comply with any deadlines and procurement procedures
279	established by the department. The department may also involve
280	nongovernmental funding entities in the procurement process when
281	appropriate.
282	(6)  The department may contract for or provide assessment
283	and case management services independently from treatment
284	services.
285	(1)(7)  The Department of Children and Family Services
286	shall adopt, by rule, provisions for including in its contracts
287	incremental penalties to be imposed by its contract managers on
288	a service provider due to the provider's failure to comply with
289	a requirement for corrective action. Any financial penalty that
290	is imposed upon a provider may not be paid from funds being used
291	to provide services to clients, and the provider may not reduce
292	the amount of services being delivered to clients as a method
293	for offsetting the impact of the penalty. If a financial penalty
294	is imposed upon a provider that is a corporation, the department
295	shall notify, at a minimum, the board of directors of the
296	corporation. The department may notify, at its discretion, any
297	additional parties that the department believes may be helpful
298	in obtaining the corrective action that is being sought.
299	Further, the rules adopted by the department must include
300	provisions that permit the department to deduct the financial
301	penalties from funds that would otherwise be due to the
302	provider, not to exceed 10 percent of the amount that otherwise
303	would be due to the provider for the period of noncompliance. If
304	the department imposes a financial penalty, it shall advise the
305	provider in writing of the cause for the penalty. A failure to
306	include such deductions in a request for payment constitutes a
307	ground for the department to reject that request for payment.
308	The remedies identified in this subsection do not limit or
309	restrict the department's application of any other remedy
310	available to it in the contract or under law. The remedies
311	described in this subsection may be cumulative and may be
312	assessed upon each separate failure to comply with instructions
313	from the department to complete corrective action.
314	(8)  The department shall develop standards of conduct and
315	a range of disciplinary actions for its employees which are
316	specifically related to carrying out contracting
317	responsibilities.
318	(2)(9)  The Agency for Persons with Disabilities department
319	must implement systems and controls to ensure financial
320	integrity and service provision quality in the developmental
321	services Medicaid waiver service system.
322	(10)  If a provider fails to meet the performance standards
323	established in the contract, the department may allow a
324	reasonable period for the provider to correct performance
325	deficiencies. If performance deficiencies are not resolved to
326	the satisfaction of the department within the prescribed time,
327	and if no extenuating circumstances can be documented by the
328	provider to the department's satisfaction, the department must
329	cancel the contract with the provider. The department may not
330	enter into a new contract with that same provider for the
331	services for which the contract was previously canceled for a
332	period of at least 24 months after the date of cancellation. If
333	an adult substance abuse services provider fails to meet the
334	performance standards established in the contract, the
335	department may allow a reasonable period, not to exceed 6
336	months, for the provider to correct performance deficiencies. If
337	the performance deficiencies are not resolved to the
338	satisfaction of the department within 6 months, the department
339	must cancel the contract with the adult substance abuse
340	provider, unless there is no other qualified provider in the
341	service district.
342	(3)(11)  The department shall include in its standard
343	contract document a requirement that any state funds provided
344	for the purchase of or improvements to real property are
345	contingent upon the contractor or political subdivision granting
346	to the state a security interest in the property at least to the
347	amount of the state funds provided for at least 5 years from the
348	date of purchase or the completion of the improvements or as
349	further required by law. The contract must include a provision
350	that, as a condition of receipt of state funding for this
351	purpose, the provider agrees that, if it disposes of the
352	property before the department's interest is vacated, the
353	provider will refund the proportionate share of the state's
354	initial investment, as adjusted by depreciation.
355	(12)  The department shall develop and refine contracting
356	and accountability methods that are administratively efficient
357	and that provide for optimal provider performance.
358	(13)  The department may competitively procure any contract
359	when it deems it is in the best interest of the state to do so.
360	The requirements described in subsection (1) do not, and may not
361	be construed to, limit in any way the department's ability to
362	competitively procure any contract it executes, and the absence
363	of any or all of the criteria described in subsection (1) may
364	not be used as the basis for an administrative or judicial
365	protest of the department's determination to conduct
366	competition, make an award, or execute any contract.
367	(14)  A contract may include cost-neutral, performance-
368	based incentives that may vary according to the extent a
369	provider achieves or surpasses the performance standards set
370	forth in the contract. Such incentives may be weighted
371	proportionally to reflect the extent to which the provider has
372	demonstrated that it has consistently met or exceeded the
373	contractual requirements and the department's performance
374	standards.
375	(4)(15)  Nothing contained in chapter 287 shall require
376	competitive bids for health services involving examination,
377	diagnosis, or treatment.
378	Section 3.  Section 409.1671, Florida Statutes, is amended
379	to read:
380	409.1671  Foster care and related services; outsourcing
381	privatization.--
382	(1)(a)  It is the intent of the Legislature that the
383	Department of Children and Family Services shall outsource
384	privatize the provision of foster care and related services
385	statewide. It is further the Legislature's intent to encourage
386	communities and other stakeholders in the well-being of children
387	to participate in assuring that children are safe and well-
388	nurtured. However, while recognizing that some local governments
389	are presently funding portions of certain foster care and
390	related services programs and may choose to expand such funding
391	in the future, the Legislature does not intend by its
392	outsourcing privatization of foster care and related services
393	that any county, municipality, or special district be required
394	to assist in funding programs that previously have been funded
395	by the state. Counties that provide children and family services
396	with at least 40 licensed residential group care beds by July 1,
397	2003, and provide at least $2 million annually in county general
398	revenue funds to supplement foster and family care services
399	shall continue to contract directly with the state and shall be
400	exempt from the provisions of this section. Nothing in this
401	paragraph prohibits any county, municipality, or special
402	district from future voluntary funding participation in foster
403	care and related services. As used in this section, the term
404	"outsource" "privatize" means to contract with competent,
405	community-based agencies. The department shall submit a plan to
406	accomplish outsourcing privatization statewide, through a
407	competitive process, phased in over a 3-year period beginning
408	January 1, 2000. This plan must be developed with local
409	community participation, including, but not limited to, input
410	from community-based providers that are currently under contract
411	with the department to furnish community-based foster care and
412	related services, and must include a methodology for determining
413	and transferring all available funds, including federal funds
414	that the provider is eligible for and agrees to earn and that
415	portion of general revenue funds which is currently associated
416	with the services that are being furnished under contract. The
417	methodology must provide for the transfer of funds appropriated
418	and budgeted for all services and programs that have been
419	incorporated into the project, including all management, capital
420	(including current furniture and equipment), and administrative
421	funds to accomplish the transfer of these programs. This
422	methodology must address expected workload and at least the 3
423	previous years' experience in expenses and workload. With
424	respect to any district or portion of a district in which
425	outsourcing privatization cannot be accomplished within the 3-
426	year timeframe, the department must clearly state in its plan
427	the reasons the timeframe cannot be met and the efforts that
428	should be made to remediate the obstacles, which may include
429	alternatives to total outsourcing privatization, such as public-
430	private partnerships. As used in this section, the term "related
431	services" includes, but is not limited to, family preservation,
432	independent living, emergency shelter, residential group care,
433	foster care, therapeutic foster care, intensive residential
434	treatment, foster care supervision, case management,
435	postplacement supervision, permanent foster care, and family
436	reunification. Unless otherwise provided for, the state attorney
437	shall provide child welfare legal services, pursuant to chapter
438	39 and other relevant provisions, in Pinellas and Pasco
439	Counties. When a private nonprofit agency has received case
440	management responsibilities, transferred from the state under
441	this section, for a child who is sheltered or found to be
442	dependent and who is assigned to the care of the outsourcing
443	privatization project, the agency may act as the child's
444	guardian for the purpose of registering the child in school if a
445	parent or guardian of the child is unavailable and his or her
446	whereabouts cannot reasonably be ascertained. The private
447	nonprofit agency may also seek emergency medical attention for
448	such a child, but only if a parent or guardian of the child is
449	unavailable, his or her whereabouts cannot reasonably be
450	ascertained, and a court order for such emergency medical
451	services cannot be obtained because of the severity of the
452	emergency or because it is after normal working hours. However,
453	the provider may not consent to sterilization, abortion, or
454	termination of life support. If a child's parents' rights have
455	been terminated, the nonprofit agency shall act as guardian of
456	the child in all circumstances.
457	(b)  It is the intent of the Legislature that the
458	department will continue to work towards full outsourcing
459	privatization in a manner that assures the viability of the
460	community-based system of care and best provides for the safety
461	of children in the child protection system. To this end, the
462	department is directed to continue the process of outsourcing
463	privatizing services in those counties in which signed startup
464	contracts have been executed. The department may also continue
465	to enter into startup contracts with additional counties.
466	However, no services shall be transferred to a community-based
467	care lead agency until the department, in consultation with the
468	local community alliance, has determined and certified in
469	writing to the Governor and the Legislature that the district is
470	prepared to transition the provision of services to the lead
471	agency and that the lead agency is ready to deliver and be
472	accountable for such service provision. In making this
473	determination, the department shall conduct a readiness
474	assessment of the district and the lead agency.
475	1.  The assessment shall evaluate the operational readiness
476	of the district and the lead agency based on:
477	a.  A set of uniform criteria, developed in consultation
478	with currently operating community-based care lead agencies and
479	reflecting national accreditation standards, that evaluate
480	programmatic, financial, technical assistance, training and
481	organizational competencies; and
482	b.  Local criteria reflective of the local community-based
483	care design and the community alliance priorities.
484	2.  The readiness assessment shall be conducted by a joint
485	team of district and lead agency staff with direct experience
486	with the start up and operation of a community-based care
487	service program and representatives from the appropriate
488	community alliance. Within resources available for this purpose,
489	the department may secure outside audit expertise when necessary
490	to assist a readiness assessment team.
491	3.  Upon completion of a readiness assessment, the
492	assessment team shall conduct an exit conference with the
493	district and lead agency staff responsible for the transition.
494	4.  Within 30 days following the exit conference with staff
495	of each district and lead agency, the secretary shall certify in
496	writing to the Governor and the Legislature that both the
497	district and the lead agency are prepared to begin the
498	transition of service provision based on the results of the
499	readiness assessment and the exit conference. The document of
500	certification must include specific evidence of readiness on
501	each element of the readiness instrument utilized by the
502	assessment team as well as a description of each element of
503	readiness needing improvement and strategies being implemented
504	to address each one.
505	(c)  The Auditor General and the Office of Program Policy
506	Analysis and Government Accountability (OPPAGA), in consultation
507	with The Child Welfare League of America and the Louis de la
508	Parte Florida Mental Health Institute, shall jointly review and
509	assess the department's process for determining district and
510	lead agency readiness.
511	1.  The review must, at a minimum, address the
512	appropriateness of the readiness criteria and instruments
513	applied, the appropriateness of the qualifications of
514	participants on each readiness assessment team, the degree to
515	which the department accurately determined each district and
516	lead agency's compliance with the readiness criteria, the
517	quality of the technical assistance provided by the department
518	to a lead agency in correcting any weaknesses identified in the
519	readiness assessment, and the degree to which each lead agency
520	overcame any identified weaknesses.
521	2.  Reports of these reviews must be submitted to the
522	appropriate substantive and appropriations committees in the
523	Senate and the House of Representatives on March 1 and September
524	1 of each year until full transition to community-based care has
525	been accomplished statewide, except that the first report must
526	be submitted by February 1, 2004, and must address all readiness
527	activities undertaken through June 30, 2003. The perspectives of
528	all participants in this review process must be included in each
529	report.
530	(d)  In communities where economic or demographic
531	constraints make it impossible or not feasible to competitively
532	contract with a lead agency, the department shall develop an
533	alternative plan in collaboration with the local community
534	alliance, which may include establishing innovative geographical
535	configurations or consortia of agencies. The plan must detail
536	how the community will continue to implement community-based
537	care through competitively procuring either the specific
538	components of foster care and related services or comprehensive
539	services for defined eligible populations of children and
540	families from qualified licensed agencies as part of its efforts
541	to develop the local capacity for a community-based system of
542	coordinated care. The plan must ensure local control over the
543	management and administration of the service provision in
544	accordance with the intent of this section and may include
545	recognized best business practices, including some form of
546	public or private partnerships.
547	(e)  As used in this section, the term "eligible lead
548	community-based provider" means a single agency with which the
549	department shall contract for the provision of child protective
550	services in a community that is no smaller than a county. The
551	secretary of the department may authorize more than one eligible
552	lead community-based provider within a single county when to do
553	so will result in more effective delivery of foster care and
554	related services. To compete for an outsourcing a privatization
555	project, such agency must have:
556	1.  The ability to coordinate, integrate, and manage all
557	child protective services in the designated community in
558	cooperation with child protective investigations.
559	2.  The ability to ensure continuity of care from entry to
560	exit for all children referred from the protective investigation
561	and court systems.
562	3.  The ability to provide directly, or contract for
563	through a local network of providers, all necessary child
564	protective services. Such agencies should directly provide no
565	more than 35 percent of all child protective services provided.
566	4.  The willingness to accept accountability for meeting
567	the outcomes and performance standards related to child
568	protective services established by the Legislature and the
569	Federal Government.
570	5.  The capability and the willingness to serve all
571	children referred to it from the protective investigation and
572	court systems, regardless of the level of funding allocated to
573	the community by the state, provided all related funding is
574	transferred.
575	6.  The willingness to ensure that each individual who
576	provides child protective services completes the training
577	required of child protective service workers by the Department
578	of Children and Family Services.
579	7.  The ability to maintain eligibility to receive all
580	federal child welfare funds, including Title IV-E and IV-A
581	funds, currently being used by the Department of Children and
582	Family Services.
583	8.  Written agreements with Healthy Families Florida lead
584	entities in their community, pursuant to s. 409.153, to promote
585	cooperative planning for the provision of prevention and
586	intervention services.
587	9.  A board of directors, of which at least 51 percent of
588	the membership is comprised of persons residing in this state.
589	Of the state residents, at least 51 percent must also reside
590	within the service area of the lead community-based provider.
591	(f)1.  The Legislature finds that the state has
592	traditionally provided foster care services to children who have
593	been the responsibility of the state. As such, foster children
594	have not had the right to recover for injuries beyond the
595	limitations specified in s. 768.28. The Legislature has
596	determined that foster care and related services need to be
597	outsourced privatized pursuant to this section and that the
598	provision of such services is of paramount importance to the
599	state. The purpose for such outsourcing privatization is to
600	increase the level of safety, security, and stability of
601	children who are or become the responsibility of the state. One
602	of the components necessary to secure a safe and stable
603	environment for such children is that private providers maintain
604	liability insurance. As such, insurance needs to be available
605	and remain available to nongovernmental foster care and related
606	services providers without the resources of such providers being
607	significantly reduced by the cost of maintaining such insurance.
608	2.  The Legislature further finds that, by requiring the
609	following minimum levels of insurance, children in outsourced
610	privatized foster care and related services will gain increased
611	protection and rights of recovery in the event of injury than
612	provided for in s. 768.28.
613	(g)  In any county in which a service contract has not been
614	executed by December 31, 2004, the department shall ensure
615	access to a model comprehensive residential services program as
616	described in s. 409.1677 which, without imposing undue
617	financial, geographic, or other barriers, ensures reasonable and
618	appropriate participation by the family in the child's program.
619	1.  In order to ensure that the program is operational by
620	December 31, 2004, the department must, by December 31, 2003,
621	begin the process of establishing access to a program in any
622	county in which the department has not either entered into a
623	transition contract or approved a community plan, as described
624	in paragraph (d), which ensures full outsourcing privatization
625	by the statutory deadline.
626	2.  The program must be procured through a competitive
627	process.
628	3.  The Legislature does not intend for the provisions of
629	this paragraph to substitute for the requirement that full
630	conversion to community-based care be accomplished.
631	(h)  Other than an entity to which s. 768.28 applies, any
632	eligible lead community-based provider, as defined in paragraph
633	(e), or its employees or officers, except as otherwise provided
634	in paragraph (i), must, as a part of its contract, obtain a
635	minimum of $1 million per claim/$3 million per incident in
636	general liability insurance coverage. The eligible lead
637	community-based provider must also require that staff who
638	transport client children and families in their personal
639	automobiles in order to carry out their job responsibilities
640	obtain minimum bodily injury liability insurance in the amount
641	of $100,000 per claim, $300,000 per incident, on their personal
642	automobiles. In any tort action brought against such an eligible
643	lead community-based provider or employee, net economic damages
644	shall be limited to $1 million per liability claim and $100,000
645	per automobile claim, including, but not limited to, past and
646	future medical expenses, wage loss, and loss of earning
647	capacity, offset by any collateral source payment paid or
648	payable. In any tort action brought against such an eligible
649	lead community-based provider, noneconomic damages shall be
650	limited to $200,000 per claim. A claims bill may be brought on
651	behalf of a claimant pursuant to s. 768.28 for any amount
652	exceeding the limits specified in this paragraph. Any offset of
653	collateral source payments made as of the date of the settlement
654	or judgment shall be in accordance with s. 768.76. The lead
655	community-based provider shall not be liable in tort for the
656	acts or omissions of its subcontractors or the officers, agents,
657	or employees of its subcontractors.
658	(i)  The liability of an eligible lead community-based
659	provider described in this section shall be exclusive and in
660	place of all other liability of such provider. The same
661	immunities from liability enjoyed by such providers shall extend
662	as well to each employee of the provider when such employee is
663	acting in furtherance of the provider's business, including the
664	transportation of clients served, as described in this
665	subsection, in privately owned vehicles. Such immunities shall
666	not be applicable to a provider or an employee who acts in a
667	culpably negligent manner or with willful and wanton disregard
668	or unprovoked physical aggression when such acts result in
669	injury or death or such acts proximately cause such injury or
670	death; nor shall such immunities be applicable to employees of
671	the same provider when each is operating in the furtherance of
672	the provider's business, but they are assigned primarily to
673	unrelated works within private or public employment. The same
674	immunity provisions enjoyed by a provider shall also apply to
675	any sole proprietor, partner, corporate officer or director,
676	supervisor, or other person who in the course and scope of his
677	or her duties acts in a managerial or policymaking capacity and
678	the conduct that caused the alleged injury arose within the
679	course and scope of those managerial or policymaking duties.
680	Culpable negligence is defined as reckless indifference or
681	grossly careless disregard of human life.
682	(j)  Any subcontractor of an eligible lead community-based
683	provider, as defined in paragraph (e), which is a direct
684	provider of foster care and related services to children and
685	families, and its employees or officers, except as otherwise
686	provided in paragraph (i), must, as a part of its contract,
687	obtain a minimum of $1 million per claim/$3 million per incident
688	in general liability insurance coverage. The subcontractor of an
689	eligible lead community-based provider must also require that
690	staff who transport client children and families in their
691	personal automobiles in order to carry out their job
692	responsibilities obtain minimum bodily injury liability
693	insurance in the amount of $100,000 per claim, $300,000 per
694	incident, on their personal automobiles. In any tort action
695	brought against such subcontractor or employee, net economic
696	damages shall be limited to $1 million per liability claim and
697	$100,000 per automobile claim, including, but not limited to,
698	past and future medical expenses, wage loss, and loss of earning
699	capacity, offset by any collateral source payment paid or
700	payable. In any tort action brought against such subcontractor,
701	noneconomic damages shall be limited to $200,000 per claim. A
702	claims bill may be brought on behalf of a claimant pursuant to
703	s. 768.28 for any amount exceeding the limits specified in this
704	paragraph. Any offset of collateral source payments made as of
705	the date of the settlement or judgment shall be in accordance
706	with s. 768.76.
707	(k)  The liability of a subcontractor of an eligible lead
708	community-based provider that is a direct provider of foster
709	care and related services as described in this section shall be
710	exclusive and in place of all other liability of such provider.
711	The same immunities from liability enjoyed by such subcontractor
712	provider shall extend as well to each employee of the
713	subcontractor when such employee is acting in furtherance of the
714	subcontractor's business, including the transportation of
715	clients served, as described in this subsection, in privately
716	owned vehicles. Such immunities shall not be applicable to a
717	subcontractor or an employee who acts in a culpably negligent
718	manner or with willful and wanton disregard or unprovoked
719	physical aggression when such acts result in injury or death or
720	such acts proximately cause such injury or death; nor shall such
721	immunities be applicable to employees of the same subcontractor
722	when each is operating in the furtherance of the subcontractor's
723	business, but they are assigned primarily to unrelated works
724	within private or public employment. The same immunity
725	provisions enjoyed by a subcontractor shall also apply to any
726	sole proprietor, partner, corporate officer or director,
727	supervisor, or other person who in the course and scope of his
728	or her duties acts in a managerial or policymaking capacity and
729	the conduct that caused the alleged injury arose within the
730	course and scope of those managerial or policymaking duties.
731	Culpable negligence is defined as reckless indifference or
732	grossly careless disregard of human life.
733	(l)  The Legislature is cognizant of the increasing costs
734	of goods and services each year and recognizes that fixing a set
735	amount of compensation actually has the effect of a reduction in
736	compensation each year. Accordingly, the conditional limitations
737	on damages in this section shall be increased at the rate of 5
738	percent each year, prorated from the effective date of this
739	paragraph to the date at which damages subject to such
740	limitations are awarded by final judgment or settlement.
741	(2)(a)  The department may contract for the delivery,
742	administration, or management of protective services, the
743	services specified in subsection (1) relating to foster care,
744	and other related services or programs, as appropriate. The
745	department shall retain responsibility for the quality of
746	contracted services and programs and shall ensure that services
747	are delivered in accordance with applicable federal and state
748	statutes and regulations. The department must adopt written
749	policies and procedures for monitoring the contract for delivery
750	of services by lead community-based providers. These policies
751	and procedures must, at a minimum, address the evaluation of
752	fiscal accountability and program operations, including provider
753	achievement of performance standards, provider monitoring of
754	subcontractors, and timely followup of corrective actions for
755	significant monitoring findings related to providers and
756	subcontractors. These policies and procedures must also include
757	provisions for reducing the duplication of the department's
758	program monitoring activities both internally and with other
759	agencies, to the extent possible. The department's written
760	procedures must ensure that the written findings, conclusions,
761	and recommendations from monitoring the contract for services of
762	lead community-based providers are communicated to the director
763	of the provider agency as expeditiously as possible.
764	(b)  Persons employed by the department in the provision of
765	foster care and related services whose positions are being
766	outsourced under privatized pursuant to this statute shall be
767	given hiring preference by the provider, if provider
768	qualifications are met.
769	(3)(a)  In order to help ensure a seamless child protection
770	system, the department shall ensure that contracts entered into
771	with community-based agencies pursuant to this section include
772	provisions for a case-transfer process to determine the date
773	that the community-based agency will initiate the appropriate
774	services for a child and family. This case-transfer process must
775	clearly identify the closure of the protective investigation and
776	the initiation of service provision. At the point of case
777	transfer, and at the conclusion of an investigation, the
778	department must provide a complete summary of the findings of
779	the investigation to the community-based agency.
780	(b)  The contracts must also ensure that each community-
781	based agency shall furnish information on its activities in all
782	cases in client case records.
783	(c)  The contract between the department and community-
784	based agencies must include provisions that specify the
785	procedures to be used by the parties to resolve differences in
786	interpreting the contract or to resolve disputes as to the
787	adequacy of the parties' compliance with their respective
788	obligations under the contract.
789	(d)  Each contract with an eligible lead community-based
790	provider shall provide for the payment by the department to the
791	provider of a reasonable administrative cost in addition to
792	funding for the provision of services.
793	(e)  Each contract with an eligible lead community-based
794	provider must include all performance outcome measures
795	established by the Legislature and that are under the control of
796	the lead agency. The standards must be adjusted annually by
797	contract amendment to enable the department to meet the
798	legislatively established statewide standards.
799	(4)(a)  The department, in consultation with the community-
800	based agencies that are undertaking the outsourced privatized
801	projects, shall establish a quality assurance program for
802	privatized services. The quality assurance program shall be
803	based on standards established by the Adoption and Safe Families
804	Act as well as by a national accrediting organization such as
805	the Council on Accreditation of Services for Families and
806	Children, Inc. (COA) or CARF--the Rehabilitation Accreditation
807	Commission. Each program operated under contract with a
808	community-based agency must be evaluated annually by the
809	department. The department shall, to the extent possible, use
810	independent financial audits provided by the community-based
811	care agency to eliminate or reduce the ongoing contract and
812	administrative reviews conducted by the department. The
813	department may suggest additional items to be included in such
814	independent financial audits to meet the department's needs.
815	Should the department determine that such independent financial
816	audits are inadequate, then other audits, as necessary, may be
817	conducted by the department. Nothing herein shall abrogate the
818	requirements of s. 215.97. The department shall submit an annual
819	report regarding quality performance, outcome measure
820	attainment, and cost efficiency to the President of the Senate,
821	the Speaker of the House of Representatives, the minority leader
822	of each house of the Legislature, and the Governor no later than
823	January 31 of each year for each project in operation during the
824	preceding fiscal year.
825	(b)  The department shall use these findings in making
826	recommendations to the Governor and the Legislature for future
827	program and funding priorities in the child welfare system.
828	(5)(a)  The community-based agency must comply with
829	statutory requirements and agency rules in the provision of
830	contractual services. Each foster home, therapeutic foster home,
831	emergency shelter, or other placement facility operated by the
832	community-based agency or agencies must be licensed by the
833	Department of Children and Family Services under chapter 402 or
834	this chapter. Each community-based agency must be licensed as a
835	child-caring or child-placing agency by the department under
836	this chapter. The department, in order to eliminate or reduce
837	the number of duplicate inspections by various program offices,
838	shall coordinate inspections required pursuant to licensure of
839	agencies under this section.
840	(b)  Substitute care providers who are licensed under s.
841	409.175 and have contracted with a lead agency authorized under
842	this section shall also be authorized to provide registered or
843	licensed family day care under s. 402.313, if consistent with
844	federal law and if the home has met the requirements of s.
845	402.313.
846	(c)  A dually licensed home under this section shall be
847	eligible to receive both an out-of-home care payment and a
848	subsidized child care payment for the same child pursuant to
849	federal law. The department may adopt administrative rules
850	necessary to administer this paragraph.
851	(6)  Beginning January 1, 1999, and continuing at least
852	through June 30, 2000, the Department of Children and Family
853	Services shall outsource privatize all foster care and related
854	services in district 5 while continuing to contract with the
855	current model programs in districts 1, 4, and 13, and in
856	subdistrict 8A, and shall expand the subdistrict 8A pilot
857	program to incorporate Manatee County. Planning for the district
858	5 outsourcing privatization shall be done by providers that are
859	currently under contract with the department for foster care and
860	related services and shall be done in consultation with the
861	department.  A lead provider of the district 5 program shall be
862	competitively selected, must demonstrate the ability to provide
863	necessary comprehensive services through a local network of
864	providers, and must meet criteria established in this section.
865	Contracts with organizations responsible for the model programs
866	must include the management and administration of all outsourced
867	privatized services specified in subsection (1). However, the
868	department may use funds for contract management only after
869	obtaining written approval from the Executive Office of the
870	Governor. The request for such approval must include, but is not
871	limited to, a statement of the proposed amount of such funds and
872	a description of the manner in which such funds will be used. If
873	the community-based organization selected for a model program
874	under this subsection is not a Medicaid provider, the
875	organization shall be issued a Medicaid provider number pursuant
876	to s. 409.907 for the provision of services currently authorized
877	under the state Medicaid plan to those children encompassed in
878	this model and in a manner not to exceed the current level of
879	state expenditure.
880	(7)  The Florida Coalition for Children, Inc., in
881	consultation with the department, shall develop a plan based on
882	an independent actuarial study regarding the long-term use and
883	structure of a statewide community-based care risk pool for the
884	protection of eligible lead community-based providers, their
885	subcontractors, and providers of other social services who
886	contract directly with the department. The plan must also
887	outline strategies to maximize federal earnings as they relate
888	to the community-based care risk pool. At a minimum, the plan
889	must allow for the use of federal earnings received from child
890	welfare programs to be allocated to the community-based care
891	risk pool by the department, which earnings are determined by
892	the department to be in excess of the amount appropriated in the
893	General Appropriations Act. The plan must specify the necessary
894	steps to ensure the financial integrity and industry-standard
895	risk management practices of the community-based care risk pool
896	and the continued availability of funding from federal, state,
897	and local sources. The plan must also include recommendations
898	that permit the program to be available to entities of the
899	department providing child welfare services until full
900	conversion to community-based care takes place. The final plan
901	shall be submitted to the department and then to the Executive
902	Office of the Governor and the Legislative Budget Commission for
903	formal adoption before January 1, 2005. Upon approval of the
904	plan by all parties, the department shall issue an interest-free
905	loan that is secured by the cumulative contractual revenue of
906	the community-based care risk pool membership, and the amount of
907	the loan shall equal the amount appropriated by the Legislature
908	for this purpose. The plan shall provide for a governance
909	structure that assures the department the ability to oversee the
910	operation of the community-based care risk pool at least until
911	this loan is repaid in full.
912	(a)  The purposes for which the community-based care risk
913	pool shall be used include, but are not limited to:
914	1.  Significant changes in the number or composition of
915	clients eligible to receive services.
916	2.  Significant changes in the services that are eligible
917	for reimbursement.
918	3.  Scheduled or unanticipated, but necessary, advances to
919	providers or other cash-flow issues.
920	4.  Proposals to participate in optional Medicaid services
921	or other federal grant opportunities.
922	5.  Appropriate incentive structures.
923	6.  Continuity of care in the event of failure,
924	discontinuance of service, or financial misconduct by a lead
925	agency.
926	7.  Payment for time-limited technical assistance and
927	consultation to lead agencies in the event of serious
928	performance or management problems.
929	8.  Payment for meeting all traditional and nontraditional
930	insurance needs of eligible members.
931	9.  Significant changes in the mix of available funds.
932	(b)  After approval of the plan in the 2004-2005 fiscal
933	year and annually thereafter, the department may also request in
934	its annual legislative budget request, and the Governor may
935	recommend, that the funding necessary to carry out paragraph (a)
936	be appropriated to the department. Subsequent funding of the
937	community-based care risk pool shall be supported by premiums
938	assessed to members of the community-based care risk pool on a
939	recurring basis. The community-based care risk pool may invest
940	and retain interest earned on these funds. In addition, the
941	department may transfer funds to the community-based care risk
942	pool as available in order to ensure an adequate funding level
943	if the fund is declared to be insolvent and approval is granted
944	by the Legislative Budget Commission. Such payments for
945	insolvency shall be made only after a determination is made by
946	the department or its actuary that all participants in the
947	community-based care risk pool are current in their payments of
948	premiums and that assessments have been made at an actuarially
949	sound level. Such payments by participants in the community-
950	based care risk pool may not exceed reasonable industry
951	standards, as determined by the actuary. Money from this fund
952	may be used to match available federal dollars. Dividends or
953	other payments, with the exception of legitimate claims, may not
954	be paid to members of the community-based care risk pool until
955	the loan issued by the department is repaid in full. Dividends
956	or other payments, with the exception of legitimate claims and
957	other purposes contained in the approved plan, may not be paid
958	to members of the community-based care risk pool unless, at the
959	time of distribution, the community-based care risk pool is
960	deemed actuarially sound and solvent. Solvency shall be
961	determined by an independent actuary contracted by the
962	department. The plan shall be developed in consultation with the
963	Office of Insurance Regulation.
964	1.  Such funds shall constitute partial security for
965	contract performance by lead agencies and shall be used to
966	offset the need for a performance bond. Subject to the approval
967	of the plan, the community-based care risk pool shall be managed
968	by the Florida Coalition for Children, Inc., or the designated
969	contractors of the Florida Coalition for Children, Inc.
970	Nonmembers of the community-based care risk pool may continue to
971	contract with the department but must provide a letter of credit
972	equal to one-twelfth of the annual contract amount in lieu of
973	membership in the community-based care risk pool.
974	2.  The department may separately require a bond to
975	mitigate the financial consequences of potential acts of
976	malfeasance, misfeasance, or criminal violations by the
977	provider.
978	(8)  Notwithstanding the provisions of s. 215.425, all
979	documented federal funds earned for the current fiscal year by
980	the department and community-based agencies which exceed the
981	amount appropriated by the Legislature shall be distributed to
982	all entities that contributed to the excess earnings based on a
983	schedule and methodology developed by the department and
984	approved by the Executive Office of the Governor. Distribution
985	shall be pro rata based on total earnings and shall be made only
986	to those entities that contributed to excess earnings. Excess
987	earnings of community-based agencies shall be used only in the
988	service district in which they were earned. Additional state
989	funds appropriated by the Legislature for community-based
990	agencies or made available pursuant to the budgetary amendment
991	process described in s. 216.177 shall be transferred to the
992	community-based agencies. The department shall amend a
993	community-based agency's contract to permit expenditure of the
994	funds.
995	(9)  Each district and subdistrict that participates in the
996	model program effort or any future outsourcing privatization
997	effort as described in this section must thoroughly analyze and
998	report the complete direct and indirect costs of delivering
999	these services through the department and the full cost of
1000	outsourcing privatization, including the cost of monitoring and
1001	evaluating the contracted services.
1002	(10)  The lead community-based providers and their
1003	subcontractors shall be exempt from state travel policies as set
1004	forth in s. 112.061(3)(a) for their travel expenses incurred in
1005	order to comply with the requirements of this section.
1006	Section 4.  The Office of Program Policy Analysis and
1007	Government Accountability shall conduct two reviews of the
1008	contract-management and accountability structures of the
1009	Department of Children and Family Services, including, but not
1010	limited to, whether the department is adequately monitoring and
1011	managing its outsourced or privatized functions and services.
1012	The office shall report its findings and recommendations to the
1013	President of the Senate, the Speaker of the House of
1014	Representatives, and the Auditor General by February 1 of 2006
1015	and 2007, respectively.
1016	Section 5.  Notwithstanding section 287.057(14)(a), Florida
1017	Statutes, the Department of Children and Family Services may
1018	enter into agreements, not to exceed 23 years, with a private
1019	contractor to finance, design, and construct a secure facility,
1020	as described in section 394.917, Florida Statutes, of at least
1021	600 beds and to operate all aspects of daily operations within
1022	the secure facility. The contractor may sponsor the issuance of
1023	tax-exempt certificates of participation or other securities to
1024	finance the project, and the state may enter into a lease-
1025	purchase agreement for the secure facility. The department shall
1026	begin the implementation of this privatization initiative by
1027	July 1, 2005. This section is repealed July 1, 2006.
1028	Section 6.  Section 402.72, Florida Statutes, is repealed.
1029	Section 7.  This act shall take effect July 1, 2005.
1030
1031
1032	================= T I T L E  A M E N D M E N T =================
1033	On page 1, line(s) 1,
1034	remove:  the entire title, and insert:
1035
1036	A bill to be entitled
1037	An act relating to the Department of Children and Family;
1038	providing definitions; requiring the department to allow
1039	all public postsecondary institutions to bid on contracts
1040	intended for any public postsecondary institution;
1041	authorizing the department to competitively procure and
1042	contract for systems of treatment or service that involve
1043	multiple providers; providing requirements if other
1044	governmental entities contribute matching funds; requiring
1045	that an entity providing matching funds must comply with
1046	certain procurement procedures; authorizing the department
1047	to independently procure and contract for treatment
1048	services; requiring multiyear contracts unless
1049	justification is provided; requiring that the department
1050	establish a contract management process; specifying the
1051	requirements for and components of the contract management
1052	process; providing requirements for resolving performance
1053	deficiencies and terminating a contract; requiring a
1054	corrective action plan under certain circumstances;
1055	requiring that the department establish contract monitoring
1056	units and a contract monitoring process; requiring written
1057	reports; requiring on site visits for contracts involving
1058	the provision of direct client services; amending s.
1059	402.73, F.S.; authorizing the department to adopt
1060	incremental penalties by rule; requiring the Agency for
1061	Persons with Disabilities to implement systems to ensure
1062	quality and fiscal integrity of programs in the
1063	developmental services Medicaid waiver system; providing an
1064	exemption for health services from competitive bidding
1065	requirements; amending s. 409.1671, F.S.; conforming
1066	provisions to changes made by the act; requiring that the
1067	Office of Program Policy Analysis and Government
1068	Accountability conduct two reviews of the contract-
1069	management and accountability structures of the department
1070	and report to the Legislature and the Auditor General;
1071	authorizing the Department of Children and Family Services
1072	to enter into agreements with a private contractor to
1073	finance, design, and construct a secure facility;
1074	authorizing the contractor to sponsor issuance of certain
1075	financing certificates or securities; authorizing the state
1076	to enter into a lease-purchase agreement; requiring
1077	implementation by a time certain; providing for future
1078	repeal; repealing s. 402.72, F.S., relating to contract
1079	management requirements for the Department of Children and
1080	Family Services; providing an effective date.

CODING: Words stricken are deletions; words underlined are additions.