| 1 | The Health Care Appropriations Committee recommends the |
| 2 | following: |
| 3 |
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| 4 | Council/Committee Substitute |
| 5 | Remove the entire bill and insert: |
| 6 | A bill to be entitled |
| 7 | An act relating to the Department of Children and Family |
| 8 | Services; providing legislative intent with respect to |
| 9 | establishing a structure by which the department shall |
| 10 | monitor and manage contracts with external service |
| 11 | providers; providing definitions; requiring the department |
| 12 | to competitively procure certain commodities and |
| 13 | contractual services; requiring the department to allow |
| 14 | all public postsecondary institutions to bid on contracts |
| 15 | intended for any public postsecondary institution; |
| 16 | authorizing the department to competitively procure and |
| 17 | contract for systems of treatment or service that involve |
| 18 | multiple providers; providing requirements if other |
| 19 | governmental entities contribute matching funds; requiring |
| 20 | that an entity providing matching funds must comply with |
| 21 | certain procurement procedures; authorizing the department |
| 22 | to independently procure and contract for treatment |
| 23 | services; requiring that the department develop a business |
| 24 | case before outsourcing any service or function; providing |
| 25 | requirements for the business case; requiring that the |
| 26 | business case be submitted to the Legislature for |
| 27 | approval; requiring that a contractual service that has |
| 28 | previously been outsourced be subject to the requirements |
| 29 | for a business case; requiring that a procurement of |
| 30 | contractual services equal to or in excess of the |
| 31 | threshold amount for CATEGORY FIVE comply with specified |
| 32 | requirements, including a scope of work and performance |
| 33 | standards; authorizing the department to adopt incremental |
| 34 | penalties by rule; authorizing the department to include |
| 35 | cost-neutral, performance-based incentives in a contract; |
| 36 | requiring that a contract in excess of $1 million be |
| 37 | negotiated by a contract negotiator who is certified |
| 38 | according to standards established by the Department of |
| 39 | Management Services; limiting circumstances under which |
| 40 | the department may amend a contract; requiring that a |
| 41 | proposed contract amendment be submitted to the Executive |
| 42 | Office of the Governor for approval; requiring approval of |
| 43 | a contract amendment by the Administration Commission |
| 44 | under certain circumstances; requiring the department to |
| 45 | verify that contractual terms have been satisfied before |
| 46 | renewing a contract; requiring certain documentation; |
| 47 | requiring the department to develop, in consultation with |
| 48 | the Department of Management Services, contract templates |
| 49 | and guidelines; requiring that the department establish a |
| 50 | contract-management process; specifying the requirements |
| 51 | for and components of the contract-management process; |
| 52 | providing requirements for resolving performance |
| 53 | deficiencies and terminating a contract; requiring a |
| 54 | corrective-action plan under certain circumstances; |
| 55 | requiring the department to develop standards of conduct |
| 56 | and disciplinary actions; requiring that the department |
| 57 | establish contract-monitoring units and a contract- |
| 58 | monitoring process; requiring written reports; requiring |
| 59 | on-site visits for contracts involving the provision of |
| 60 | direct client services; requiring the department to make |
| 61 | certain documents available to the Legislature; requiring |
| 62 | the department to create an electronic database to store |
| 63 | the documents; amending s. 402.73, F.S.; requiring the |
| 64 | Agency for Persons with Disabilities to implement systems |
| 65 | to ensure quality and fiscal integrity of programs in the |
| 66 | developmental services Medicaid waiver system; providing |
| 67 | an exemption for health services from competitive bidding |
| 68 | requirements; amending s. 409.1671, F.S.; conforming |
| 69 | provisions to changes made by the act; requiring that the |
| 70 | Office of Program Policy Analysis and Government |
| 71 | Accountability conduct two reviews of the contract- |
| 72 | management and accountability structures of the department |
| 73 | and report to the Legislature and the Auditor General; |
| 74 | repealing s. 402.72, F.S., relating to contract-management |
| 75 | requirements for the Department of Children and Family |
| 76 | Services; providing an appropriation; providing an |
| 77 | effective date. |
| 78 |
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| 79 | Be It Enacted by the Legislature of the State of Florida: |
| 80 |
|
| 81 | Section 1. Department of Children and Family Services; |
| 82 | procurement of contractual services; outsourcing or |
| 83 | privatization; contract management.-- |
| 84 | (1) LEGISLATIVE INTENT.--The Legislature intends that the |
| 85 | Department of Children and Family Services obtain services in |
| 86 | the manner that is most efficient and cost-effective for the |
| 87 | state, that provides the greatest long-term benefits to the |
| 88 | clients receiving services, and that minimizes the disruption of |
| 89 | client services. In order to meet these legislative goals, the |
| 90 | department shall comply with legislative policy guidelines that |
| 91 | require compliance with uniform procedures for procuring |
| 92 | contractual services, prescribe how the department must |
| 93 | outsource its programmatic and administrative services to |
| 94 | external service providers rather than having them provided by |
| 95 | the department or another state agency, and establish a |
| 96 | contract-management and contract-monitoring process. |
| 97 | (2) DEFINITIONS.--As used in this section, the term: |
| 98 | (a) "Contract manager" means the department employee who |
| 99 | is responsible for enforcing the compliance with administrative |
| 100 | and programmatic terms and conditions of a contract. The |
| 101 | contract manager is the primary point of contact through which |
| 102 | all contracting information flows between the department and the |
| 103 | contractor. The contract manager is responsible for day-to-day |
| 104 | contract oversight, including approval of contract deliverables |
| 105 | and invoices. All actions related to the contract shall be |
| 106 | initiated by or coordinated with the contract manager. The |
| 107 | contract manager maintains the official contract files. |
| 108 | (b) "Contract monitor" means the department employee who |
| 109 | is responsible for observing, recording, and reporting to the |
| 110 | contract manager and other designated entities the information |
| 111 | necessary to assist the contract manager and program management |
| 112 | in determining whether the contractor is in compliance with the |
| 113 | administrative and programmatic terms and conditions of the |
| 114 | contract. |
| 115 | (c) "Department" means the Department of Children and |
| 116 | Family Services. |
| 117 | (d) "Outsourcing" means the process of contracting with an |
| 118 | external service provider to provide a service, in whole or in |
| 119 | part, while the department retains the responsibility and |
| 120 | accountability for the service. |
| 121 | (e) "Performance measure" means the quantitative |
| 122 | indicators used to assess if the service the external provider |
| 123 | is performing is achieving the desired results. Measures of |
| 124 | performance include outputs, direct counts of program |
| 125 | activities, and outcomes or results of program activities in the |
| 126 | lives of the clients served. |
| 127 | (f) "Performance standard" means the quantifiable, |
| 128 | specified, and desired level to be achieved for a particular |
| 129 | performance measure. |
| 130 | (g) "Privatize" means any process aimed at transferring |
| 131 | the responsibility for a service, in whole or in part, from the |
| 132 | department to the private sector such that the private sector is |
| 133 | solely and fully responsible for the performance of the specific |
| 134 | service. |
| 135 | (h) "Service" means all or any portion of a program or |
| 136 | program component as defined in section 216.011, Florida |
| 137 | Statutes. |
| 138 | (3) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.-- |
| 139 | (a) For the purchase of commodities and contractual |
| 140 | services in excess of the threshold amount established in |
| 141 | section 287.017, Florida Statutes, for CATEGORY TWO, the |
| 142 | department shall comply with the requirements set forth in |
| 143 | section 287.057, Florida Statutes. |
| 144 | (b) Notwithstanding section 287.057(5)(f)13., Florida |
| 145 | Statutes, whenever the department intends to contract with a |
| 146 | public postsecondary institution to provide a service, the |
| 147 | department must allow all public postsecondary institutions in |
| 148 | this state that are accredited by the Southern Association of |
| 149 | Colleges and Schools to bid on the contract. Thereafter, |
| 150 | notwithstanding any other provision to the contrary, if a public |
| 151 | postsecondary institution intends to subcontract for any service |
| 152 | awarded in the contract, the subcontracted service must be |
| 153 | procured by competitive procedures. |
| 154 | (c) When it is in the best interest of a defined segment |
| 155 | of its consumer population, the department may competitively |
| 156 | procure and contract for systems of treatment or service that |
| 157 | involve multiple providers, rather than procuring and |
| 158 | contracting for treatment or services separately from each |
| 159 | participating provider. The department must ensure that all |
| 160 | providers that participate in the treatment or service system |
| 161 | meet all applicable statutory, regulatory, service-quality, and |
| 162 | cost-control requirements. If other governmental entities or |
| 163 | units of special purpose government contribute matching funds to |
| 164 | the support of a given system of treatment or service, the |
| 165 | department shall formally request information from those funding |
| 166 | entities in the procurement process and may take the information |
| 167 | received into account in the selection process. If a local |
| 168 | government contributes matching funds to support the system of |
| 169 | treatment or contracted service and if the match constitutes at |
| 170 | least 25 percent of the value of the contract, the department |
| 171 | shall afford the governmental match contributor an opportunity |
| 172 | to name an employee as one of the persons required by section |
| 173 | 287.057(17), Florida Statutes, to evaluate or negotiate certain |
| 174 | contracts, unless the department sets forth in writing the |
| 175 | reason why the inclusion would be contrary to the best interest |
| 176 | of the state. Any employee so named by the governmental match |
| 177 | contributor shall qualify as one of the persons required by |
| 178 | section 287.057(17), Florida Statutes. A governmental entity or |
| 179 | unit of special purpose government may not name an employee as |
| 180 | one of the persons required by section 287.057(17), Florida |
| 181 | Statutes, if it, or any of its political subdivisions, executive |
| 182 | agencies, or special districts, intends to compete for the |
| 183 | contract to be awarded. The governmental funding entity or |
| 184 | contributor of matching funds must comply with all procurement |
| 185 | procedures set forth in section 287.057, Florida Statutes, when |
| 186 | appropriate and required. |
| 187 | (d) The department may procure and contract for or provide |
| 188 | assessment and case-management services independently from |
| 189 | treatment services. |
| 190 | (4) SOURCING STANDARDS AND REQUIREMENTS.--If the |
| 191 | department proposes to outsource a service, the department must |
| 192 | comply with the requirements of this section prior to the |
| 193 | procurement process provided for in section 287.057, Florida |
| 194 | Statutes. |
| 195 | (a) The department shall develop a business case |
| 196 | describing and analyzing the service proposed for outsourcing. A |
| 197 | business case is part of the solicitation process and is not a |
| 198 | rule subject to challenge pursuant to section 120.54, Florida |
| 199 | Statutes. The business case must include, but need not be |
| 200 | limited to: |
| 201 | 1. A detailed description of the services to be |
| 202 | outsourced, a description and analysis of the department's |
| 203 | current performance of the service, and a rationale documenting |
| 204 | how outsourcing the service would be in the best interest of the |
| 205 | state, the department, and its clients. |
| 206 | 2. A cost-benefit analysis documenting the estimated |
| 207 | specific direct and indirect costs, savings, performance |
| 208 | improvements, risks, and qualitative and quantitative benefits |
| 209 | involved in or resulting from outsourcing the service. The cost- |
| 210 | benefit analysis must include a detailed plan and timeline |
| 211 | identifying all actions that must be implemented to realize |
| 212 | expected benefits. Under section 92.525, Florida Statutes, the |
| 213 | Secretary of Children and Family Services shall verify that all |
| 214 | costs, savings, and benefits are valid and achievable. |
| 215 | 3. A description of the specific performance measures and |
| 216 | standards that must be achieved through the outsourcing |
| 217 | proposal. |
| 218 | 4. A statement of the potential effect on applicable |
| 219 | federal, state, and local revenues and expenditures. The |
| 220 | statement must specifically describe the effect on general |
| 221 | revenue, trust funds, general revenue service charges, and |
| 222 | interest on trust funds, together with the potential direct or |
| 223 | indirect effect on federal funding and cost allocations. |
| 224 | 5. A plan to ensure compliance with public-record laws, |
| 225 | which must include components that: |
| 226 | a. Provide public access to public records at a cost that |
| 227 | does not exceed that provided in chapter 119, Florida Statutes. |
| 228 | b. Ensure the confidentiality of records that are exempt |
| 229 | from disclosure or confidential under law. |
| 230 | c. Meet all legal requirements for record retention. |
| 231 | d. Allow for transfer to the state, at no cost, all public |
| 232 | records in possession of the external service provider upon |
| 233 | termination of the contract. |
| 234 | 6. A department transition and implementation plan for |
| 235 | addressing changes in the number of agency personnel, affected |
| 236 | business processes, and employee-transition issues. Such a plan |
| 237 | must also specify the mechanism for continuing the operation of |
| 238 | the service if the contractor fails to perform and comply with |
| 239 | the performance measures and standards and provisions of the |
| 240 | contract. Within this plan, the department shall identify all |
| 241 | resources, including full-time equivalent positions, which are |
| 242 | subject to outsourcing. All full-time equivalent positions |
| 243 | identified in the plan shall be placed in reserve by the |
| 244 | Executive Office of the Governor until the end of the second |
| 245 | year of the contract. Notwithstanding the provisions of section |
| 246 | 216.262, Florida Statutes, the Executive Office of the Governor |
| 247 | shall request authority from the Legislative Budget Commission |
| 248 | to reestablish full-time positions above the number fixed by the |
| 249 | Legislature when a contract is terminated and the outsourced |
| 250 | service must be returned to the department. |
| 251 | 7. A listing of assets proposed for transfer to or use by |
| 252 | the external service provider, a description of the proposed |
| 253 | requirements for maintenance of those assets by the external |
| 254 | service provider or the department in accordance with chapter |
| 255 | 273, Florida Statutes, a plan for their disposition upon |
| 256 | termination of the contract, and a description of how the |
| 257 | planned asset transfer or use by the contractor is in the best |
| 258 | interest of the department and the state. |
| 259 | (b)1. If the department proposes to outsource the service |
| 260 | in the next fiscal year, the department shall submit the |
| 261 | business case with the department's final legislative budget |
| 262 | request, in the manner and form prescribed in the legislative |
| 263 | budget request instructions under section 216.023, Florida |
| 264 | Statutes. Upon approval in the General Appropriations Act, the |
| 265 | department may initiate and complete the procurement process |
| 266 | under section 287.057, Florida Statutes, and shall have the |
| 267 | authority to enter into contracts with the external service |
| 268 | provider. |
| 269 | 2. If a proposed outsourcing initiative would require |
| 270 | integration with, or would in any way affect other state |
| 271 | information technology systems, the department shall submit the |
| 272 | feasibility study documentation required by the legislative |
| 273 | budget request instructions under section 216.023, Florida |
| 274 | Statutes. |
| 275 | (c) If the department proposes to outsource a service |
| 276 | during a fiscal year and the outsourcing provision was not |
| 277 | included in the approved operating budget of the department, the |
| 278 | department must provide to the Governor, the President of the |
| 279 | Senate, the Speaker of the House of Representatives, the chairs |
| 280 | of the legislative appropriations committees, and the chairs of |
| 281 | the relevant substantive committees the business case that |
| 282 | complies with the requirements of paragraph (a) at least 45 days |
| 283 | before the release of any solicitation documents, as provided |
| 284 | for in section 287.057, Florida Statutes. Any budgetary changes |
| 285 | that are inconsistent with the department's approved budget may |
| 286 | not be made to existing programs unless the changes are |
| 287 | recommended to the Legislative Budget Commission by the Governor |
| 288 | and the Legislative Budget Commission expressly approves the |
| 289 | program changes. |
| 290 | (d) The department may not privatize a service without |
| 291 | specific authority provided in general law, the General |
| 292 | Appropriations Act, legislation implementing the General |
| 293 | Appropriations Act, or a special appropriations act. |
| 294 | (5) CONTRACTING AND PERFORMANCE MEASURES.--In addition to |
| 295 | the requirements of section 287.058, Florida Statutes, every |
| 296 | procurement of contractual services by the department which |
| 297 | meets or is in excess of the threshold amount provided in |
| 298 | section 287.017, Florida Statutes, for CATEGORY FIVE, must |
| 299 | comply with the requirements of this subsection. |
| 300 | (a) The department shall execute a contract containing all |
| 301 | provisions and conditions, which must include, but need not be |
| 302 | limited to: |
| 303 | 1. A detailed scope of work that clearly specifies each |
| 304 | service and deliverable to be provided, including a description |
| 305 | of each deliverable or activity that is quantifiable, |
| 306 | measurable, and verifiable by the department and the contractor. |
| 307 | 2. Associated costs and savings, specific payment terms |
| 308 | and payment schedules, including incentive and penalty |
| 309 | provisions, criteria governing payment, and a clear and specific |
| 310 | schedule to complete all required activities needed to transfer |
| 311 | the service from the state to the contractor. |
| 312 | 3. Clear and specific identification of all required |
| 313 | performance measures and standards, which must, at a minimum, |
| 314 | include: |
| 315 | a. Acceptance criteria for each deliverable and service to |
| 316 | be provided to the department under the terms of the contract |
| 317 | which document, to the greatest extent possible, the required |
| 318 | performance level. Acceptance criteria must be detailed, clear, |
| 319 | and unambiguous and shall be used to measure deliverables and |
| 320 | services to be provided under the contract. |
| 321 | b. A method for monitoring and reporting progress in |
| 322 | achieving specified performance standards and levels. |
| 323 | c. The sanctions or penalties that shall be assessed for |
| 324 | contract or state nonperformance. The department may adopt, by |
| 325 | rule, provisions for including in its contracts incremental |
| 326 | penalties to be imposed by its contract managers on a contractor |
| 327 | due to the contractor's failure to comply with a requirement for |
| 328 | corrective action. Any financial penalty that is imposed upon a |
| 329 | contractor may not be paid from funds being used to provide |
| 330 | services to clients, and the contractor may not reduce the |
| 331 | amount of services being delivered to clients as a method for |
| 332 | offsetting the effect of the penalty. If a financial penalty is |
| 333 | imposed upon a contractor that is a corporation, the department |
| 334 | shall notify, at a minimum, the board of directors of the |
| 335 | corporation. The department may notify any additional parties |
| 336 | that the department believes may be helpful in obtaining the |
| 337 | corrective action that is being sought. In addition, the rules |
| 338 | adopted by the department must include provisions that permit |
| 339 | the department to deduct the financial penalties from funds that |
| 340 | would otherwise be due to the contractor, not to exceed 10 |
| 341 | percent of the amount that otherwise would be due to the |
| 342 | contractor for the period of noncompliance. If the department |
| 343 | imposes a financial penalty, it shall advise the contractor in |
| 344 | writing of the cause for the penalty. A failure to include such |
| 345 | deductions in a request for payment constitutes grounds for the |
| 346 | department to reject that request for payment. The remedies |
| 347 | identified in this paragraph do not limit or restrict the |
| 348 | department's application of any other remedy available to it in |
| 349 | the contract or under law. The remedies described in this |
| 350 | paragraph may be cumulative and may be assessed upon each |
| 351 | separate failure to comply with instructions from the department |
| 352 | to complete corrective action. |
| 353 | 4. A requirement that the contractor maintain adequate |
| 354 | accounting records that comply with all applicable federal and |
| 355 | state laws and generally accepted accounting principles. |
| 356 | 5. A requirement authorizing the department and state to |
| 357 | have access to and conduct audits of all records related to the |
| 358 | contract and outsourced services. |
| 359 | 6. A requirement that ownership of any intellectual |
| 360 | property developed in the course of, or as a result of, work or |
| 361 | services performed under the contract shall transfer to the |
| 362 | state if the contractor ceases to provide the outsourced |
| 363 | service. |
| 364 | 7. A requirement describing the timing and substance of |
| 365 | all plans and status or progress reports that are to be |
| 366 | provided. All plans and status or progress reports must comply |
| 367 | with any relevant state and federal standards for planning, |
| 368 | implementation, operations, and oversight. |
| 369 | 8. A requirement that the contractor shall comply with |
| 370 | public-record laws. The contractor shall: |
| 371 | a. Keep and maintain the public records that ordinarily |
| 372 | and necessarily would be required by the department to perform |
| 373 | the service. |
| 374 | b. Provide public access to such public records on the |
| 375 | same terms and conditions that the department would and at a |
| 376 | cost that does not exceed that provided in chapter 119, Florida |
| 377 | Statutes. |
| 378 | c. Ensure the confidentiality of records that are exempt |
| 379 | from disclosure or confidential under law. |
| 380 | d. Meet all legal and auditing requirements for record |
| 381 | retention, and transfer to the state, at no cost to the state, |
| 382 | all public records in possession of the contractor upon |
| 383 | termination of the contract. All records stored electronically |
| 384 | must be provided to the state in the format compatible with |
| 385 | state information technology systems. |
| 386 | 9. A requirement that any state funds provided for the |
| 387 | purchase of or improvements to real property are contingent upon |
| 388 | the contractor granting to the state a security interest in the |
| 389 | property which is at least equal to the amount of the state |
| 390 | funds provided for at least 5 years following the date of |
| 391 | purchase or the completion of the improvements or as further |
| 392 | required by law. The contract must include a provision that, as |
| 393 | a condition of receipt of state funding for this purpose, the |
| 394 | contractor agrees that, if it disposes of the property before |
| 395 | the department's interest is vacated, the contractor must refund |
| 396 | the proportionate share of the state's initial investment, as |
| 397 | adjusted by depreciation. |
| 398 | 10. A provision that the contractor annually submit and |
| 399 | verify, under section 92.525, Florida Statutes, all required |
| 400 | financial statements. |
| 401 | 11. A provision that the contractor will be held |
| 402 | responsible and accountable for all work covered under the |
| 403 | contract including any work performed by subcontractors. The |
| 404 | contract must state that the department may monitor the |
| 405 | performance of any subcontractor. |
| 406 | (b) A contract may include cost-neutral, performance-based |
| 407 | incentives that may vary according to the extent a contractor |
| 408 | achieves or surpasses the performance standards set forth in the |
| 409 | contract. The incentives may be weighted proportionally to |
| 410 | reflect the extent to which the contractor has demonstrated that |
| 411 | it has consistently met or exceeded the contractual requirements |
| 412 | and the performance standards. |
| 413 | (c) The department shall review the time period for which |
| 414 | it executes contracts and, to the greatest extent practicable, |
| 415 | shall execute multiyear contracts to make the most efficient use |
| 416 | of the resources devoted to contract processing and execution. |
| 417 | (d) When the annualized value of a contract is in excess |
| 418 | of $1 million, at least one of the persons conducting |
| 419 | negotiations must be certified as a contract negotiator based |
| 420 | upon standards established by the Department of Management |
| 421 | Services. |
| 422 | (e) The department may not amend a contract without first |
| 423 | submitting the proposed contract amendment to the Executive |
| 424 | Office of the Governor for approval if the effect of the |
| 425 | amendment would be to increase: |
| 426 | 1. The value of the contract by $250,000 for those |
| 427 | contracts with a total value of at least $250,000 but less than |
| 428 | $1 million; |
| 429 | 2. The value of the contract by $1 million for those |
| 430 | contracts with a total value of at least $1 million but less |
| 431 | than $10 million; |
| 432 | 3. The value of the contract by 10 percent for those |
| 433 | contracts with a total value of $10 million or more; or |
| 434 | 4. The term of the contract by 1 year or more. |
| 435 |
|
| 436 | When the department proposes any contract amendment that meets |
| 437 | the criteria described in this paragraph, it shall submit the |
| 438 | proposed contract amendment to the Executive Office of the |
| 439 | Governor for approval and shall immediately notify the chairs of |
| 440 | the legislative appropriations committees. The Executive Office |
| 441 | of the Governor may not approve the proposed contract amendment |
| 442 | until 14 days following receipt of the notification to the |
| 443 | legislative appropriations chairs. If either chair of the |
| 444 | legislative appropriations committees objects in writing to a |
| 445 | proposed contract amendment within 14 days following |
| 446 | notification and specifies the reasons for the objection, the |
| 447 | Executive Office of the Governor shall disapprove the proposed |
| 448 | contract amendment or shall submit the proposed contract |
| 449 | amendment to the Administration Commission. The proposed |
| 450 | contract amendment may be approved by the Administration |
| 451 | Commission by a two-thirds vote of the members present with the |
| 452 | Governor voting in the affirmative. In the absence of approval |
| 453 | by the commission, the proposed contract amendment shall be |
| 454 | automatically disapproved. Otherwise, upon approval by the |
| 455 | Governor or Administration Commission, the department may |
| 456 | execute the contract amendment. |
| 457 | (f) An amendment that is issued under legislative |
| 458 | direction, including funding adjustments annually provided for |
| 459 | in the General Appropriations Act or the federal appropriations |
| 460 | acts, need not be submitted for approval in accordance with |
| 461 | paragraph (d). |
| 462 | (g) In addition to the requirements of section 287.057(13) |
| 463 | and (14), Florida Statutes, the department shall verify that all |
| 464 | specific direct and indirect costs, savings, performance |
| 465 | measures and standards, and qualitative and quantitative |
| 466 | benefits identified in the original contract have been satisfied |
| 467 | by a contractor or the department before the contract is |
| 468 | extended or renewed. The documentation must include an |
| 469 | explanation of any differences between the required performance |
| 470 | as identified in the contract and the actual performance of the |
| 471 | contractor. The documentation must be included in the official |
| 472 | contract file. |
| 473 | (h) The department shall, in consultation with the |
| 474 | Department of Management Services, develop contract templates |
| 475 | and guidelines that define the mandatory contract provisions and |
| 476 | other requirements identified in this subsection and that must |
| 477 | be used for all contractual service contracts meeting the |
| 478 | requirements of this subsection. All contract templates and |
| 479 | guidelines shall be developed by September 30, 2005. |
| 480 | (6) CONTRACT-MANAGEMENT REQUIREMENTS AND |
| 481 | PROCESS.--Notwithstanding section 287.057(15), Florida Statutes, |
| 482 | the department is responsible for establishing a contract- |
| 483 | management process that requires a member of the department's |
| 484 | Senior Management Service to assign in writing the |
| 485 | responsibility of a contract to a contract manager. The |
| 486 | department shall maintain a set of procedures describing its |
| 487 | contract-management process which must minimally include the |
| 488 | following requirements: |
| 489 | (a) The contract manager shall maintain the official |
| 490 | contract file throughout the duration of the contract and for a |
| 491 | period not less than 6 years after the termination of the |
| 492 | contract. |
| 493 | (b) The contract manager shall review all invoices for |
| 494 | compliance with the criteria and payment schedule provided for |
| 495 | in the contract and shall approve payment of all invoices before |
| 496 | their transmission to the Department of Financial Services for |
| 497 | payment. Only the contract manager shall approve the invoices |
| 498 | for a specific contract, unless the contract manager is |
| 499 | temporarily unavailable to review an invoice. The contract file |
| 500 | must contain an explanation for any periods of temporary |
| 501 | unavailability of the assigned contract manager. For any |
| 502 | individual invoice in excess of $500,000, a member of the |
| 503 | Selected Exempt Service or Senior Management Service shall also |
| 504 | sign payment approval of the invoice. For any individual invoice |
| 505 | in excess of $1 million, a member of the Senior Management |
| 506 | Service shall also sign payment approval of the invoice. |
| 507 | (c) The contract manager shall maintain a schedule of |
| 508 | payments and total amounts disbursed and shall periodically |
| 509 | reconcile the records with the state's official accounting |
| 510 | records. |
| 511 | (d) For contracts involving the provision of direct client |
| 512 | services, the contract manager shall periodically visit the |
| 513 | physical location where the services are delivered and speak |
| 514 | directly to clients receiving the services and the staff |
| 515 | responsible for delivering the services. |
| 516 | (e) For contracts for which the contractor is a |
| 517 | corporation, the contract manager shall attend at least one |
| 518 | board meeting semiannually, if held and if within 100 miles of |
| 519 | the contract manager's official headquarters. |
| 520 | (f) The contract manager shall meet at least once a month |
| 521 | directly with the contractor's representative and maintain |
| 522 | records of such meetings. |
| 523 | (g) The contract manager shall periodically document any |
| 524 | differences between the required performance measures and the |
| 525 | actual performance measures. If a contractor fails to meet and |
| 526 | comply with the performance measures established in the |
| 527 | contract, the department may allow a reasonable period for the |
| 528 | contractor to correct performance deficiencies. If performance |
| 529 | deficiencies are not resolved to the satisfaction of the |
| 530 | department within the prescribed time, and if no extenuating |
| 531 | circumstances can be documented by the contractor to the |
| 532 | department's satisfaction, the department must terminate the |
| 533 | contract. The department may not enter into a new contract with |
| 534 | that same contractor for the services for which the contract was |
| 535 | previously terminated for a period of at least 24 months after |
| 536 | the date of termination. The contract manager shall obtain and |
| 537 | enforce corrective-action plans, if appropriate, and maintain |
| 538 | records regarding the completion or failure to complete |
| 539 | corrective-action items. |
| 540 | (h) The contract manager shall document any contract |
| 541 | modifications, which shall include recording any contract |
| 542 | amendments as provided for in this section. |
| 543 | (i) The contract manager shall be properly trained before |
| 544 | being assigned responsibility for any contract. |
| 545 |
|
| 546 | The department shall develop standards of conduct and a range of |
| 547 | disciplinary actions for its employees which are specifically |
| 548 | related to carrying out contract-management responsibilities. |
| 549 | (7) CONTRACT-MONITORING REQUIREMENTS AND PROCESS.--The |
| 550 | department shall establish contract-monitoring units staffed by |
| 551 | full-time career service employees who report to a member of the |
| 552 | Select Exempt Service or Senior Management Service and who have |
| 553 | been properly trained to perform contract monitoring. A member |
| 554 | of the Senior Management Service shall assign in writing a |
| 555 | specific contract to a contract-monitoring unit, with at least |
| 556 | one member of the contract-monitoring unit possessing specific |
| 557 | knowledge and experience in the contract's program area. The |
| 558 | department shall establish a contract-monitoring process that |
| 559 | must include, but need not be limited to, the following |
| 560 | requirements: |
| 561 | (a) Performing a risk assessment at the start of each |
| 562 | fiscal year and preparing an annual contract-monitoring schedule |
| 563 | that includes consideration for the level of risk assigned. The |
| 564 | department may monitor any contract at any time regardless of |
| 565 | whether such monitoring was originally included in the annual |
| 566 | contract-monitoring schedule. |
| 567 | (b) Preparing a contract-monitoring plan, including |
| 568 | sampling procedures, before performing on-site monitoring at |
| 569 | external locations of a service provider. The plan must include |
| 570 | a description of the programmatic, fiscal, and administrative |
| 571 | components that will be monitored on-site. If appropriate, |
| 572 | clinical and therapeutic components may be included. |
| 573 | (c) Conducting analyses of the performance and compliance |
| 574 | of an external service provider by means of desk reviews if the |
| 575 | external service provider will not be monitored on-site during a |
| 576 | fiscal year. |
| 577 | (d) Unless the department sets forth in writing the need |
| 578 | for an extension, providing a written report presenting the |
| 579 | results of the monitoring within 30 days after the completion of |
| 580 | the on-site monitoring or desk review. Report extensions may not |
| 581 | exceed 30 days after the original completion date. The |
| 582 | department shall develop and use a standard contract-monitoring |
| 583 | report format and shall provide access to the reports by means |
| 584 | of a website that is available to the Legislature. |
| 585 | (e) For contracts involving the provision of direct client |
| 586 | services, requiring the contract monitor to visit the physical |
| 587 | location where the services are being delivered and to speak |
| 588 | directly to the clients receiving the services and with the |
| 589 | staff responsible for delivering the services. |
| 590 | (f) Developing and maintaining a set of procedures |
| 591 | describing the contract-monitoring process. |
| 592 |
|
| 593 | The department shall develop standards of conduct and a range of |
| 594 | disciplinary actions for its employees which are specifically |
| 595 | related to carrying out contract-monitoring responsibilities. |
| 596 | (8) REPORTS TO THE LEGISLATURE.--Beginning October 1, |
| 597 | 2005, the department shall make available to the Legislature |
| 598 | electronically all documents associated with the procurement and |
| 599 | contracting functions of the department. The documents in the |
| 600 | database must include, but are not limited to, all: |
| 601 | (a) Business cases; |
| 602 | (b) Procurement documents; |
| 603 | (c) Contracts and any related files, attachments, or |
| 604 | amendments; |
| 605 | (d) Contract monitoring reports; |
| 606 | (e) Corrective action plans and reports of corrective |
| 607 | actions taken when contractor performance deficiencies are |
| 608 | identified; and |
| 609 | (f) Status reports on all outsourcing initiatives |
| 610 | describing the progress by the department towards achieving the |
| 611 | business objectives, costs, savings, and quantifiable benefits |
| 612 | identified in the business case. |
| 613 | Section 2. Section 402.73, Florida Statutes, is amended to |
| 614 | read: |
| 615 | 402.73 Contracting and performance standards.-- |
| 616 | (1) The Department of Children and Family Services shall |
| 617 | establish performance standards for all contracted client |
| 618 | services. Notwithstanding s. 287.057(5)(f), the department must |
| 619 | competitively procure any contract for client services when any |
| 620 | of the following occurs: |
| 621 | (a) The provider fails to meet appropriate performance |
| 622 | standards established by the department after the provider has |
| 623 | been given a reasonable opportunity to achieve the established |
| 624 | standards. |
| 625 | (b) A new program or service has been authorized and |
| 626 | funded by the Legislature and the annual value of the contract |
| 627 | for such program or service is $300,000 or more. |
| 628 | (c) The department has concluded, after reviewing market |
| 629 | prices and available treatment options, that there is evidence |
| 630 | that the department can improve the performance outcomes |
| 631 | produced by its contract resources. At a minimum, the department |
| 632 | shall review market prices and available treatment options |
| 633 | biennially. The department shall compile the results of the |
| 634 | biennial review and include the results in its annual |
| 635 | performance report to the Legislature pursuant to chapter 94- |
| 636 | 249, Laws of Florida. The department shall provide notice and an |
| 637 | opportunity for public comment on its review of market prices |
| 638 | and available treatment options. |
| 639 | (2) The competitive requirements of subsection (1) must be |
| 640 | initiated for each contract that meets the criteria of this |
| 641 | subsection, unless the secretary makes a written determination |
| 642 | that particular facts and circumstances require deferral of the |
| 643 | competitive process. Facts and circumstances must be |
| 644 | specifically described for each individual contract proposed for |
| 645 | deferral and must include one or more of the following: |
| 646 | (a) An immediate threat to the health, safety, or welfare |
| 647 | of the department's clients. |
| 648 | (b) A threat to appropriate use or disposition of |
| 649 | facilities that have been financed in whole, or in substantial |
| 650 | part, through contracts or agreements with a state agency. |
| 651 | (c) A threat to the service infrastructure of a community |
| 652 | which could endanger the well-being of the department's clients. |
| 653 |
|
| 654 | Competitive procurement of client services contracts that meet |
| 655 | the criteria in subsection (1) may not be deferred for longer |
| 656 | than 1 year. |
| 657 | (3) The Legislature intends that the department obtain |
| 658 | services in the manner that is most cost-effective for the |
| 659 | state, that provides the greatest long-term benefits to the |
| 660 | clients receiving services, and that minimizes the disruption of |
| 661 | client services. In order to meet these legislative goals, the |
| 662 | department may adopt rules providing procedures for the |
| 663 | competitive procurement of contracted client services which |
| 664 | represent an alternative to the request-for-proposal or |
| 665 | invitation-to-bid process. The alternative competitive |
| 666 | procedures shall permit the department to solicit professional |
| 667 | qualifications from prospective providers and to evaluate such |
| 668 | statements of qualification before requesting service proposals. |
| 669 | The department may limit the firms invited to submit service |
| 670 | proposals to only those firms that have demonstrated the highest |
| 671 | level of professional capability to provide the services under |
| 672 | consideration, but may not invite fewer than three firms to |
| 673 | submit service proposals, unless fewer than three firms |
| 674 | submitted satisfactory statements of qualification. The |
| 675 | alternative procedures must, at a minimum, allow the department |
| 676 | to evaluate competing proposals and select the proposal that |
| 677 | provides the greatest benefit to the state while considering the |
| 678 | quality of the services, dependability, and integrity of the |
| 679 | provider, the dependability of the provider's services, the |
| 680 | experience of the provider in serving target populations or |
| 681 | client groups substantially identical to members of the target |
| 682 | population for the contract in question, and the ability of the |
| 683 | provider to secure local funds to support the delivery of |
| 684 | services, including, but not limited to, funds derived from |
| 685 | local governments. These alternative procedures need not conform |
| 686 | to the requirements of s. 287.042 or s. 287.057(1) or (2). |
| 687 | (4) The department shall review the period for which it |
| 688 | executes contracts and, to the greatest extent practicable, |
| 689 | shall execute multiyear contracts to make the most efficient use |
| 690 | of the resources devoted to contract processing and execution. |
| 691 | (5) When it is in the best interest of a defined segment |
| 692 | of its consumer population, the department may competitively |
| 693 | procure and contract for systems of treatment or service that |
| 694 | involve multiple providers, rather than procuring and |
| 695 | contracting for treatment or services separately from each |
| 696 | participating provider. The department must ensure that all |
| 697 | providers that participate in the treatment or service system |
| 698 | meet all applicable statutory, regulatory, service-quality, and |
| 699 | cost-control requirements. If other governmental entities or |
| 700 | units of special purpose government contribute matching funds to |
| 701 | the support of a given system of treatment or service, the |
| 702 | department shall formally request information from those funding |
| 703 | entities in the procurement process and may take the information |
| 704 | received into account in the selection process. If a local |
| 705 | government contributes match to support the system of treatment |
| 706 | or contracted service and if the match constitutes at least 25 |
| 707 | percent of the value of the contract, the department shall |
| 708 | afford the governmental match contributor an opportunity to name |
| 709 | an employee as one of the persons required by s. 287.057(17) to |
| 710 | evaluate or negotiate certain contracts, unless the department |
| 711 | sets forth in writing the reason why such inclusion would be |
| 712 | contrary to the best interest of the state. Any employee so |
| 713 | named by the governmental match contributor shall qualify as one |
| 714 | of the persons required by s. 287.057(17). No governmental |
| 715 | entity or unit of special purpose government may name an |
| 716 | employee as one of the persons required by s. 287.057(17) if it, |
| 717 | or any of its political subdivisions, executive agencies, or |
| 718 | special districts, intends to compete for the contract to be |
| 719 | awarded. The governmental funding entity or match contributor |
| 720 | shall comply with any deadlines and procurement procedures |
| 721 | established by the department. The department may also involve |
| 722 | nongovernmental funding entities in the procurement process when |
| 723 | appropriate. |
| 724 | (6) The department may contract for or provide assessment |
| 725 | and case management services independently from treatment |
| 726 | services. |
| 727 | (7) The department shall adopt, by rule, provisions for |
| 728 | including in its contracts incremental penalties to be imposed |
| 729 | by its contract managers on a service provider due to the |
| 730 | provider's failure to comply with a requirement for corrective |
| 731 | action. Any financial penalty that is imposed upon a provider |
| 732 | may not be paid from funds being used to provide services to |
| 733 | clients, and the provider may not reduce the amount of services |
| 734 | being delivered to clients as a method for offsetting the impact |
| 735 | of the penalty. If a financial penalty is imposed upon a |
| 736 | provider that is a corporation, the department shall notify, at |
| 737 | a minimum, the board of directors of the corporation. The |
| 738 | department may notify, at its discretion, any additional parties |
| 739 | that the department believes may be helpful in obtaining the |
| 740 | corrective action that is being sought. Further, the rules |
| 741 | adopted by the department must include provisions that permit |
| 742 | the department to deduct the financial penalties from funds that |
| 743 | would otherwise be due to the provider, not to exceed 10 percent |
| 744 | of the amount that otherwise would be due to the provider for |
| 745 | the period of noncompliance. If the department imposes a |
| 746 | financial penalty, it shall advise the provider in writing of |
| 747 | the cause for the penalty. A failure to include such deductions |
| 748 | in a request for payment constitutes a ground for the department |
| 749 | to reject that request for payment. The remedies identified in |
| 750 | this subsection do not limit or restrict the department's |
| 751 | application of any other remedy available to it in the contract |
| 752 | or under law. The remedies described in this subsection may be |
| 753 | cumulative and may be assessed upon each separate failure to |
| 754 | comply with instructions from the department to complete |
| 755 | corrective action. |
| 756 | (8) The department shall develop standards of conduct and |
| 757 | a range of disciplinary actions for its employees which are |
| 758 | specifically related to carrying out contracting |
| 759 | responsibilities. |
| 760 | (1)(9) The Agency for Persons with Disabilities department |
| 761 | must implement systems and controls to ensure financial |
| 762 | integrity and service provision quality in the developmental |
| 763 | services Medicaid waiver service system. |
| 764 | (10) If a provider fails to meet the performance standards |
| 765 | established in the contract, the department may allow a |
| 766 | reasonable period for the provider to correct performance |
| 767 | deficiencies. If performance deficiencies are not resolved to |
| 768 | the satisfaction of the department within the prescribed time, |
| 769 | and if no extenuating circumstances can be documented by the |
| 770 | provider to the department's satisfaction, the department must |
| 771 | cancel the contract with the provider. The department may not |
| 772 | enter into a new contract with that same provider for the |
| 773 | services for which the contract was previously canceled for a |
| 774 | period of at least 24 months after the date of cancellation. If |
| 775 | an adult substance abuse services provider fails to meet the |
| 776 | performance standards established in the contract, the |
| 777 | department may allow a reasonable period, not to exceed 6 |
| 778 | months, for the provider to correct performance deficiencies. If |
| 779 | the performance deficiencies are not resolved to the |
| 780 | satisfaction of the department within 6 months, the department |
| 781 | must cancel the contract with the adult substance abuse |
| 782 | provider, unless there is no other qualified provider in the |
| 783 | service district. |
| 784 | (11) The department shall include in its standard contract |
| 785 | document a requirement that any state funds provided for the |
| 786 | purchase of or improvements to real property are contingent upon |
| 787 | the contractor or political subdivision granting to the state a |
| 788 | security interest in the property at least to the amount of the |
| 789 | state funds provided for at least 5 years from the date of |
| 790 | purchase or the completion of the improvements or as further |
| 791 | required by law. The contract must include a provision that, as |
| 792 | a condition of receipt of state funding for this purpose, the |
| 793 | provider agrees that, if it disposes of the property before the |
| 794 | department's interest is vacated, the provider will refund the |
| 795 | proportionate share of the state's initial investment, as |
| 796 | adjusted by depreciation. |
| 797 | (12) The department shall develop and refine contracting |
| 798 | and accountability methods that are administratively efficient |
| 799 | and that provide for optimal provider performance. |
| 800 | (13) The department may competitively procure any contract |
| 801 | when it deems it is in the best interest of the state to do so. |
| 802 | The requirements described in subsection (1) do not, and may not |
| 803 | be construed to, limit in any way the department's ability to |
| 804 | competitively procure any contract it executes, and the absence |
| 805 | of any or all of the criteria described in subsection (1) may |
| 806 | not be used as the basis for an administrative or judicial |
| 807 | protest of the department's determination to conduct |
| 808 | competition, make an award, or execute any contract. |
| 809 | (14) A contract may include cost-neutral, performance- |
| 810 | based incentives that may vary according to the extent a |
| 811 | provider achieves or surpasses the performance standards set |
| 812 | forth in the contract. Such incentives may be weighted |
| 813 | proportionally to reflect the extent to which the provider has |
| 814 | demonstrated that it has consistently met or exceeded the |
| 815 | contractual requirements and the department's performance |
| 816 | standards. |
| 817 | (2)(15) Nothing contained in chapter 287 shall require |
| 818 | competitive bids for health services involving examination, |
| 819 | diagnosis, or treatment. |
| 820 | Section 3. Paragraphs (a), (b), (e), (f), and (g) of |
| 821 | subsection (1), paragraph (b) of subsection (2), paragraph (a) |
| 822 | of subsection (4), and subsections (6) and (9) of section |
| 823 | 409.1671, Florida Statutes, are amended to read: |
| 824 | 409.1671 Foster care and related services; outsourcing |
| 825 | privatization.-- |
| 826 | (1)(a) It is the intent of the Legislature that the |
| 827 | Department of Children and Family Services shall outsource |
| 828 | privatize the provision of foster care and related services |
| 829 | statewide. It is further the Legislature's intent to encourage |
| 830 | communities and other stakeholders in the well-being of children |
| 831 | to participate in assuring that children are safe and well- |
| 832 | nurtured. However, while recognizing that some local governments |
| 833 | are presently funding portions of certain foster care and |
| 834 | related services programs and may choose to expand such funding |
| 835 | in the future, the Legislature does not intend by its |
| 836 | outsourcing privatization of foster care and related services |
| 837 | that any county, municipality, or special district be required |
| 838 | to assist in funding programs that previously have been funded |
| 839 | by the state. Counties that provide children and family services |
| 840 | with at least 40 licensed residential group care beds by July 1, |
| 841 | 2003, and provide at least $2 million annually in county general |
| 842 | revenue funds to supplement foster and family care services |
| 843 | shall continue to contract directly with the state and shall be |
| 844 | exempt from the provisions of this section. Nothing in this |
| 845 | paragraph prohibits any county, municipality, or special |
| 846 | district from future voluntary funding participation in foster |
| 847 | care and related services. As used in this section, the term |
| 848 | "outsource" "privatize" means to contract with competent, |
| 849 | community-based agencies. The department shall submit a plan to |
| 850 | accomplish outsourcing privatization statewide, through a |
| 851 | competitive process, phased in over a 3-year period beginning |
| 852 | January 1, 2000. This plan must be developed with local |
| 853 | community participation, including, but not limited to, input |
| 854 | from community-based providers that are currently under contract |
| 855 | with the department to furnish community-based foster care and |
| 856 | related services, and must include a methodology for determining |
| 857 | and transferring all available funds, including federal funds |
| 858 | that the provider is eligible for and agrees to earn and that |
| 859 | portion of general revenue funds which is currently associated |
| 860 | with the services that are being furnished under contract. The |
| 861 | methodology must provide for the transfer of funds appropriated |
| 862 | and budgeted for all services and programs that have been |
| 863 | incorporated into the project, including all management, capital |
| 864 | (including current furniture and equipment), and administrative |
| 865 | funds to accomplish the transfer of these programs. This |
| 866 | methodology must address expected workload and at least the 3 |
| 867 | previous years' experience in expenses and workload. With |
| 868 | respect to any district or portion of a district in which |
| 869 | outsourcing privatization cannot be accomplished within the 3- |
| 870 | year timeframe, the department must clearly state in its plan |
| 871 | the reasons the timeframe cannot be met and the efforts that |
| 872 | should be made to remediate the obstacles, which may include |
| 873 | alternatives to total outsourcing privatization, such as public- |
| 874 | private partnerships. As used in this section, the term "related |
| 875 | services" includes, but is not limited to, family preservation, |
| 876 | independent living, emergency shelter, residential group care, |
| 877 | foster care, therapeutic foster care, intensive residential |
| 878 | treatment, foster care supervision, case management, |
| 879 | postplacement supervision, permanent foster care, and family |
| 880 | reunification. Unless otherwise provided for, the state attorney |
| 881 | shall provide child welfare legal services, pursuant to chapter |
| 882 | 39 and other relevant provisions, in Pinellas and Pasco |
| 883 | Counties. When a private nonprofit agency has received case |
| 884 | management responsibilities, transferred from the state under |
| 885 | this section, for a child who is sheltered or found to be |
| 886 | dependent and who is assigned to the care of the outsourcing |
| 887 | privatization project, the agency may act as the child's |
| 888 | guardian for the purpose of registering the child in school if a |
| 889 | parent or guardian of the child is unavailable and his or her |
| 890 | whereabouts cannot reasonably be ascertained. The private |
| 891 | nonprofit agency may also seek emergency medical attention for |
| 892 | such a child, but only if a parent or guardian of the child is |
| 893 | unavailable, his or her whereabouts cannot reasonably be |
| 894 | ascertained, and a court order for such emergency medical |
| 895 | services cannot be obtained because of the severity of the |
| 896 | emergency or because it is after normal working hours. However, |
| 897 | the provider may not consent to sterilization, abortion, or |
| 898 | termination of life support. If a child's parents' rights have |
| 899 | been terminated, the nonprofit agency shall act as guardian of |
| 900 | the child in all circumstances. |
| 901 | (b) It is the intent of the Legislature that the |
| 902 | department will continue to work towards full outsourcing |
| 903 | privatization in a manner that assures the viability of the |
| 904 | community-based system of care and best provides for the safety |
| 905 | of children in the child protection system. To this end, the |
| 906 | department is directed to continue the process of outsourcing |
| 907 | privatizing services in those counties in which signed startup |
| 908 | contracts have been executed. The department may also continue |
| 909 | to enter into startup contracts with additional counties. |
| 910 | However, no services shall be transferred to a community-based |
| 911 | care lead agency until the department, in consultation with the |
| 912 | local community alliance, has determined and certified in |
| 913 | writing to the Governor and the Legislature that the district is |
| 914 | prepared to transition the provision of services to the lead |
| 915 | agency and that the lead agency is ready to deliver and be |
| 916 | accountable for such service provision. In making this |
| 917 | determination, the department shall conduct a readiness |
| 918 | assessment of the district and the lead agency. |
| 919 | 1. The assessment shall evaluate the operational readiness |
| 920 | of the district and the lead agency based on: |
| 921 | a. A set of uniform criteria, developed in consultation |
| 922 | with currently operating community-based care lead agencies and |
| 923 | reflecting national accreditation standards, that evaluate |
| 924 | programmatic, financial, technical assistance, training and |
| 925 | organizational competencies; and |
| 926 | b. Local criteria reflective of the local community-based |
| 927 | care design and the community alliance priorities. |
| 928 | 2. The readiness assessment shall be conducted by a joint |
| 929 | team of district and lead agency staff with direct experience |
| 930 | with the start up and operation of a community-based care |
| 931 | service program and representatives from the appropriate |
| 932 | community alliance. Within resources available for this purpose, |
| 933 | the department may secure outside audit expertise when necessary |
| 934 | to assist a readiness assessment team. |
| 935 | 3. Upon completion of a readiness assessment, the |
| 936 | assessment team shall conduct an exit conference with the |
| 937 | district and lead agency staff responsible for the transition. |
| 938 | 4. Within 30 days following the exit conference with staff |
| 939 | of each district and lead agency, the secretary shall certify in |
| 940 | writing to the Governor and the Legislature that both the |
| 941 | district and the lead agency are prepared to begin the |
| 942 | transition of service provision based on the results of the |
| 943 | readiness assessment and the exit conference. The document of |
| 944 | certification must include specific evidence of readiness on |
| 945 | each element of the readiness instrument utilized by the |
| 946 | assessment team as well as a description of each element of |
| 947 | readiness needing improvement and strategies being implemented |
| 948 | to address each one. |
| 949 | (e) As used in this section, the term "eligible lead |
| 950 | community-based provider" means a single agency with which the |
| 951 | department shall contract for the provision of child protective |
| 952 | services in a community that is no smaller than a county. The |
| 953 | secretary of the department may authorize more than one eligible |
| 954 | lead community-based provider within a single county when to do |
| 955 | so will result in more effective delivery of foster care and |
| 956 | related services. To compete for an outsourcing a privatization |
| 957 | project, such agency must have: |
| 958 | 1. The ability to coordinate, integrate, and manage all |
| 959 | child protective services in the designated community in |
| 960 | cooperation with child protective investigations. |
| 961 | 2. The ability to ensure continuity of care from entry to |
| 962 | exit for all children referred from the protective investigation |
| 963 | and court systems. |
| 964 | 3. The ability to provide directly, or contract for |
| 965 | through a local network of providers, all necessary child |
| 966 | protective services. Such agencies should directly provide no |
| 967 | more than 35 percent of all child protective services provided. |
| 968 | 4. The willingness to accept accountability for meeting |
| 969 | the outcomes and performance standards related to child |
| 970 | protective services established by the Legislature and the |
| 971 | Federal Government. |
| 972 | 5. The capability and the willingness to serve all |
| 973 | children referred to it from the protective investigation and |
| 974 | court systems, regardless of the level of funding allocated to |
| 975 | the community by the state, provided all related funding is |
| 976 | transferred. |
| 977 | 6. The willingness to ensure that each individual who |
| 978 | provides child protective services completes the training |
| 979 | required of child protective service workers by the Department |
| 980 | of Children and Family Services. |
| 981 | 7. The ability to maintain eligibility to receive all |
| 982 | federal child welfare funds, including Title IV-E and IV-A |
| 983 | funds, currently being used by the Department of Children and |
| 984 | Family Services. |
| 985 | 8. Written agreements with Healthy Families Florida lead |
| 986 | entities in their community, pursuant to s. 409.153, to promote |
| 987 | cooperative planning for the provision of prevention and |
| 988 | intervention services. |
| 989 | 9. A board of directors, of which at least 51 percent of |
| 990 | the membership is comprised of persons residing in this state. |
| 991 | Of the state residents, at least 51 percent must also reside |
| 992 | within the service area of the lead community-based provider. |
| 993 | (f)1. The Legislature finds that the state has |
| 994 | traditionally provided foster care services to children who have |
| 995 | been the responsibility of the state. As such, foster children |
| 996 | have not had the right to recover for injuries beyond the |
| 997 | limitations specified in s. 768.28. The Legislature has |
| 998 | determined that foster care and related services need to be |
| 999 | outsourced privatized pursuant to this section and that the |
| 1000 | provision of such services is of paramount importance to the |
| 1001 | state. The purpose for such outsourcing privatization is to |
| 1002 | increase the level of safety, security, and stability of |
| 1003 | children who are or become the responsibility of the state. One |
| 1004 | of the components necessary to secure a safe and stable |
| 1005 | environment for such children is that private providers maintain |
| 1006 | liability insurance. As such, insurance needs to be available |
| 1007 | and remain available to nongovernmental foster care and related |
| 1008 | services providers without the resources of such providers being |
| 1009 | significantly reduced by the cost of maintaining such insurance. |
| 1010 | 2. The Legislature further finds that, by requiring the |
| 1011 | following minimum levels of insurance, children in outsourced |
| 1012 | privatized foster care and related services will gain increased |
| 1013 | protection and rights of recovery in the event of injury than |
| 1014 | provided for in s. 768.28. |
| 1015 | (g) In any county in which a service contract has not been |
| 1016 | executed by December 31, 2004, the department shall ensure |
| 1017 | access to a model comprehensive residential services program as |
| 1018 | described in s. 409.1677 which, without imposing undue |
| 1019 | financial, geographic, or other barriers, ensures reasonable and |
| 1020 | appropriate participation by the family in the child's program. |
| 1021 | 1. In order to ensure that the program is operational by |
| 1022 | December 31, 2004, the department must, by December 31, 2003, |
| 1023 | begin the process of establishing access to a program in any |
| 1024 | county in which the department has not either entered into a |
| 1025 | transition contract or approved a community plan, as described |
| 1026 | in paragraph (d), which ensures full outsourcing privatization |
| 1027 | by the statutory deadline. |
| 1028 | 2. The program must be procured through a competitive |
| 1029 | process. |
| 1030 | 3. The Legislature does not intend for the provisions of |
| 1031 | this paragraph to substitute for the requirement that full |
| 1032 | conversion to community-based care be accomplished. |
| 1033 | (2) |
| 1034 | (b) Persons employed by the department in the provision of |
| 1035 | foster care and related services whose positions are being |
| 1036 | outsourced under privatized pursuant to this statute shall be |
| 1037 | given hiring preference by the provider, if provider |
| 1038 | qualifications are met. |
| 1039 | (4)(a) The department, in consultation with the community- |
| 1040 | based agencies that are undertaking the outsourced privatized |
| 1041 | projects, shall establish a quality assurance program for |
| 1042 | privatized services. The quality assurance program shall be |
| 1043 | based on standards established by the Adoption and Safe Families |
| 1044 | Act as well as by a national accrediting organization such as |
| 1045 | the Council on Accreditation of Services for Families and |
| 1046 | Children, Inc. (COA) or CARF--the Rehabilitation Accreditation |
| 1047 | Commission. Each program operated under contract with a |
| 1048 | community-based agency must be evaluated annually by the |
| 1049 | department. The department shall, to the extent possible, use |
| 1050 | independent financial audits provided by the community-based |
| 1051 | care agency to eliminate or reduce the ongoing contract and |
| 1052 | administrative reviews conducted by the department. The |
| 1053 | department may suggest additional items to be included in such |
| 1054 | independent financial audits to meet the department's needs. |
| 1055 | Should the department determine that such independent financial |
| 1056 | audits are inadequate, then other audits, as necessary, may be |
| 1057 | conducted by the department. Nothing herein shall abrogate the |
| 1058 | requirements of s. 215.97. The department shall submit an annual |
| 1059 | report regarding quality performance, outcome measure |
| 1060 | attainment, and cost efficiency to the President of the Senate, |
| 1061 | the Speaker of the House of Representatives, the minority leader |
| 1062 | of each house of the Legislature, and the Governor no later than |
| 1063 | January 31 of each year for each project in operation during the |
| 1064 | preceding fiscal year. |
| 1065 | (6) Beginning January 1, 1999, and continuing at least |
| 1066 | through June 30, 2000, the Department of Children and Family |
| 1067 | Services shall outsource privatize all foster care and related |
| 1068 | services in district 5 while continuing to contract with the |
| 1069 | current model programs in districts 1, 4, and 13, and in |
| 1070 | subdistrict 8A, and shall expand the subdistrict 8A pilot |
| 1071 | program to incorporate Manatee County. Planning for the district |
| 1072 | 5 outsourcing privatization shall be done by providers that are |
| 1073 | currently under contract with the department for foster care and |
| 1074 | related services and shall be done in consultation with the |
| 1075 | department. A lead provider of the district 5 program shall be |
| 1076 | competitively selected, must demonstrate the ability to provide |
| 1077 | necessary comprehensive services through a local network of |
| 1078 | providers, and must meet criteria established in this section. |
| 1079 | Contracts with organizations responsible for the model programs |
| 1080 | must include the management and administration of all outsourced |
| 1081 | privatized services specified in subsection (1). However, the |
| 1082 | department may use funds for contract management only after |
| 1083 | obtaining written approval from the Executive Office of the |
| 1084 | Governor. The request for such approval must include, but is not |
| 1085 | limited to, a statement of the proposed amount of such funds and |
| 1086 | a description of the manner in which such funds will be used. If |
| 1087 | the community-based organization selected for a model program |
| 1088 | under this subsection is not a Medicaid provider, the |
| 1089 | organization shall be issued a Medicaid provider number pursuant |
| 1090 | to s. 409.907 for the provision of services currently authorized |
| 1091 | under the state Medicaid plan to those children encompassed in |
| 1092 | this model and in a manner not to exceed the current level of |
| 1093 | state expenditure. |
| 1094 | (9) Each district and subdistrict that participates in the |
| 1095 | model program effort or any future outsourcing privatization |
| 1096 | effort as described in this section must thoroughly analyze and |
| 1097 | report the complete direct and indirect costs of delivering |
| 1098 | these services through the department and the full cost of |
| 1099 | outsourcing privatization, including the cost of monitoring and |
| 1100 | evaluating the contracted services. |
| 1101 | Section 4. The Office of Program Policy Analysis and |
| 1102 | Government Accountability shall conduct two reviews of the |
| 1103 | contract-management and accountability structures of the |
| 1104 | Department of Children and Family Services, including, but not |
| 1105 | limited to, whether the department is adequately monitoring and |
| 1106 | managing its outsourced or privatized functions and services. |
| 1107 | The office shall report its findings and recommendations to the |
| 1108 | President of the Senate, the Speaker of the House of |
| 1109 | Representatives, and the Auditor General by February 1 of 2006 |
| 1110 | and 2007, respectively. |
| 1111 | Section 5. Section 402.72, Florida Statutes, is repealed. |
| 1112 | Section 6. For fiscal year 2005-2006, there is hereby |
| 1113 | appropriated the sum of $102,232 in nonrecurring General Revenue |
| 1114 | funds to the Department of Children and Family Services to |
| 1115 | enable the department to comply with the electronic reporting |
| 1116 | requirements of section 1 of this act. |
| 1117 | Section 7. This act shall take effect July 1, 2005. |