HB 1827

CS

CHAMBER ACTION

1	The Health & Families Council recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to the Department of Children and Family
7	Services; providing legislative intent with respect to
8	establishing a structure by which the department shall
9	monitor and manage contracts with external service
10	providers; providing definitions; requiring the department
11	to competitively procure certain commodities and
12	contractual services; requiring the department to allow
13	all public postsecondary institutions to bid on contracts
14	intended for any public postsecondary institution;
15	authorizing the department to competitively procure and
16	contract for systems of treatment or service that involve
17	multiple providers; providing requirements if other
18	governmental entities contribute matching funds; requiring
19	that an entity providing matching funds must comply with
20	certain procurement procedures; authorizing the department
21	to independently procure and contract for treatment
22	services; requiring that the department develop a business
23	case before outsourcing any service or function; providing
24	requirements for the business case; requiring that the
25	business case be submitted to the Legislature for
26	approval; requiring that a contractual service that has
27	previously been outsourced be subject to the requirements
28	for a business case; requiring that a procurement of
29	contractual services equal to or in excess of the
30	threshold amount for CATEGORY FIVE comply with specified
31	requirements, including a scope of work and performance
32	standards; authorizing the department to adopt incremental
33	penalties by rule; authorizing the department to include
34	cost-neutral, performance-based incentives in a contract;
35	requiring multiyear contracts; providing an exception and
36	a requirement; requiring that a contract in excess of $1
37	million be negotiated by a contract negotiator who is
38	certified according to standards established by the
39	Department of Management Services; limiting circumstances
40	under which the department may amend a contract; requiring
41	that a proposed contract amendment be submitted to the
42	Executive Office of the Governor for approval; requiring
43	approval of a contract amendment by the Administration
44	Commission under certain circumstances; requiring the
45	department to verify that contractual terms have been
46	satisfied before renewing a contract; requiring certain
47	documentation; requiring the department to develop, in
48	consultation with the Department of Management Services,
49	contract templates and guidelines; requiring that the
50	department establish a contract-management process;
51	specifying the requirements for and components of the
52	contract-management process; providing requirements for
53	resolving performance deficiencies and terminating a
54	contract; requiring a corrective-action plan under certain
55	circumstances; requiring the department to develop
56	standards of conduct and disciplinary actions; requiring
57	that the department establish contract-monitoring units
58	and a contract-monitoring process; requiring written
59	reports; requiring on-site visits for contracts involving
60	the provision of direct client services; prohibiting
61	contractors from engaging in certain activities; requiring
62	the department to make certain documents available to the
63	Legislature; requiring the department to create an
64	electronic database to store the documents; amending s.
65	402.73, F.S.; requiring the Agency for Persons with
66	Disabilities to implement systems to ensure quality and
67	fiscal integrity of programs in the developmental services
68	Medicaid waiver system; providing an exemption for health
69	services from competitive bidding requirements; amending
70	s. 409.1671, F.S.; conforming provisions to changes made
71	by the act; requiring that the Office of Program Policy
72	Analysis and Government Accountability conduct two reviews
73	of the contract-management and accountability structures
74	of the department and report to the Legislature and the
75	Auditor General; repealing s. 402.72, F.S., relating to
76	contract-management requirements for the Department of
77	Children and Family Services; providing an appropriation;
78	providing an effective date.
79
80	Be It Enacted by the Legislature of the State of Florida:
81
82	Section 1.  Department of Children and Family Services;
83	procurement of contractual services; outsourcing or
84	privatization; contract management.--
85	(1)  LEGISLATIVE INTENT.--The Legislature intends that the
86	Department of Children and Family Services obtain services in
87	the manner that is most efficient and cost-effective for the
88	state, that provides the greatest long-term benefits to the
89	clients receiving services, and that minimizes the disruption of
90	client services. In order to meet these legislative goals, the
91	department shall comply with legislative policy guidelines that
92	require compliance with uniform procedures for procuring
93	contractual services, prescribe how the department must
94	outsource its programmatic and administrative services to
95	external service providers rather than having them provided by
96	the department or another state agency, and establish a
97	contract-management and contract-monitoring process.
98	(2)  DEFINITIONS.--As used in this section, the term:
99	(a)  "Contract manager" means the department employee who
100	is responsible for enforcing the compliance with administrative
101	and programmatic terms and conditions of a contract. The
102	contract manager is the primary point of contact through which
103	all contracting information flows between the department and the
104	contractor. The contract manager is responsible for day-to-day
105	contract oversight, including approval of contract deliverables
106	and invoices. All actions related to the contract shall be
107	initiated by or coordinated with the contract manager. The
108	contract manager maintains the official contract files.
109	(b)  "Contract monitor" means the department employee who
110	is responsible for observing, recording, and reporting to the
111	contract manager and other designated entities the information
112	necessary to assist the contract manager and program management
113	in determining whether the contractor is in compliance with the
114	administrative and programmatic terms and conditions of the
115	contract.
116	(c)  "Department" means the Department of Children and
117	Family Services.
118	(d)  "Outsourcing" means the process of contracting with an
119	external service provider to provide a service, in whole or in
120	part, while the department retains the responsibility and
121	accountability for the service.
122	(e)  "Performance measure" means the quantitative
123	indicators used to assess if the service the external provider
124	is performing is achieving the desired results. Measures of
125	performance include outputs, direct counts of program
126	activities, and outcomes or results of program activities in the
127	lives of the clients served.
128	(f)  "Performance standard" means the quantifiable,
129	specified, and desired level to be achieved for a particular
130	performance measure.
131	(g)  "Privatize" means any process aimed at transferring
132	the responsibility for a service, in whole or in part, from the
133	department to the private sector such that the private sector is
134	solely and fully responsible for the performance of the specific
135	service.
136	(h)  "Service" means all or any portion of a program or
137	program component as defined in section 216.011, Florida
138	Statutes.
139	(3)  PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.--
140	(a)  For the purchase of commodities and contractual
141	services in excess of the threshold amount established in
142	section 287.017, Florida Statutes, for CATEGORY TWO, the
143	department shall comply with the requirements set forth in
144	section 287.057, Florida Statutes.
145	(b)  Notwithstanding section 287.057(5)(f)13., Florida
146	Statutes, whenever the department intends to contract with a
147	public postsecondary institution to provide a service, the
148	department must allow all public postsecondary institutions in
149	this state that are accredited by the Southern Association of
150	Colleges and Schools to bid on the contract. Thereafter,
151	notwithstanding any other provision to the contrary, if a public
152	postsecondary institution intends to subcontract for any service
153	awarded in the contract, the subcontracted service must be
154	procured by competitive procedures.
155	(c)  When it is in the best interest of a defined segment
156	of its consumer population, the department may competitively
157	procure and contract for systems of treatment or service that
158	involve multiple providers, rather than procuring and
159	contracting for treatment or services separately from each
160	participating provider. The department must ensure that all
161	providers that participate in the treatment or service system
162	meet all applicable statutory, regulatory, service-quality, and
163	cost-control requirements. If other governmental entities or
164	units of special purpose government contribute matching funds to
165	the support of a given system of treatment or service, the
166	department shall formally request information from those funding
167	entities in the procurement process and may take the information
168	received into account in the selection process. If a local
169	government contributes matching funds to support the system of
170	treatment or contracted service and if the match constitutes at
171	least 25 percent of the value of the contract, the department
172	shall afford the governmental match contributor an opportunity
173	to name an employee as one of the persons required by section
174	287.057(17), Florida Statutes, to evaluate or negotiate certain
175	contracts, unless the department sets forth in writing the
176	reason why the inclusion would be contrary to the best interest
177	of the state. Any employee so named by the governmental match
178	contributor shall qualify as one of the persons required by
179	section 287.057(17), Florida Statutes. A governmental entity or
180	unit of special purpose government may not name an employee as
181	one of the persons required by section 287.057(17), Florida
182	Statutes, if it, or any of its political subdivisions, executive
183	agencies, or special districts, intends to compete for the
184	contract to be awarded. The governmental funding entity or
185	contributor of matching funds must comply with all procurement
186	procedures set forth in section 287.057, Florida Statutes, when
187	appropriate and required.
188	(d)  The department may procure and contract for or provide
189	assessment and case-management services independently from
190	treatment services.
191	(4)  SOURCING STANDARDS AND REQUIREMENTS.--If the
192	department proposes to outsource a service, the department must
193	comply with the requirements of this section prior to the
194	procurement process provided for in section 287.057, Florida
195	Statutes.
196	(a)  The department shall develop a business case
197	describing and analyzing the service proposed for outsourcing. A
198	business case is part of the solicitation process and is not a
199	rule subject to challenge pursuant to section 120.54, Florida
200	Statutes. The business case submitted by the department pursuant
201	to this section for a service shall be sufficient for all
202	contracts executed by the department for that service. The
203	business case must include, but need not be limited to:
204	1.  A detailed description of the services to be
205	outsourced, a description and analysis of the department's
206	current performance of the service, and a rationale documenting
207	how outsourcing the service would be in the best interest of the
208	state, the department, and its clients.
209	2.  A cost-benefit analysis documenting the estimated
210	specific direct and indirect costs, savings, performance
211	improvements, risks, and qualitative and quantitative benefits
212	involved in or resulting from outsourcing the service. The cost-
213	benefit analysis must include a detailed plan and timeline
214	identifying all actions that must be implemented to realize
215	expected benefits. Under section 92.525, Florida Statutes, the
216	Secretary of Children and Family Services shall verify that all
217	costs, savings, and benefits are valid and achievable.
218	3.  A description of the specific performance measures and
219	standards that must be achieved through the outsourcing
220	proposal.
221	4.  A statement of the potential effect on applicable
222	federal, state, and local revenues and expenditures. The
223	statement must specifically describe the effect on general
224	revenue, trust funds, general revenue service charges, and
225	interest on trust funds, together with the potential direct or
226	indirect effect on federal funding and cost allocations.
227	5.  A plan to ensure compliance with public-record laws,
228	which must include components that:
229	a.  Provide public access to public records at a cost that
230	does not exceed that provided in chapter 119, Florida Statutes.
231	b.  Ensure the confidentiality of records that are exempt
232	from disclosure or confidential under law.
233	c.  Meet all legal requirements for record retention.
234	d.  Allow for transfer to the state, at no cost, all public
235	records in possession of the external service provider upon
236	termination of the contract.
237	6.  A department transition and implementation plan for
238	addressing changes in the number of agency personnel, affected
239	business processes, and employee-transition issues. Such a plan
240	must also specify the mechanism for continuing the operation of
241	the service if the contractor fails to perform and comply with
242	the performance measures and standards and provisions of the
243	contract. Within this plan, the department shall identify all
244	resources, including full-time equivalent positions, which are
245	subject to outsourcing. All full-time equivalent positions
246	identified in the plan shall be placed in reserve by the
247	Executive Office of the Governor until the end of the second
248	year of the contract. Notwithstanding the provisions of section
249	216.262, Florida Statutes, the Executive Office of the Governor
250	shall request authority from the Legislative Budget Commission
251	to reestablish full-time positions above the number fixed by the
252	Legislature when a contract is terminated and the outsourced
253	service must be returned to the department.
254	7.  A listing of assets proposed for transfer to or use by
255	the external service provider, a description of the proposed
256	requirements for maintenance of those assets by the external
257	service provider or the department in accordance with chapter
258	273, Florida Statutes, a plan for their disposition upon
259	termination of the contract, and a description of how the
260	planned asset transfer or use by the contractor is in the best
261	interest of the department and the state.
262	(b)1.  If the department proposes to outsource the service
263	in the next fiscal year, the department shall submit the
264	business case with the department's final legislative budget
265	request, in the manner and form prescribed in the legislative
266	budget request instructions under section 216.023, Florida
267	Statutes. Prior to approval in the General Appropriations Act,
268	the agency may initiate the procurement process pursuant to
269	section 287.057, Florida Statutes. The agency may complete
270	contract execution pursuant to section 287.057, Florida
271	Statutes, only upon approval in the General Appropriations Act.
272	2.  If a proposed outsourcing initiative would require
273	integration with, or would in any way affect other state
274	information technology systems, the department shall submit the
275	feasibility study documentation required by the legislative
276	budget request instructions under section 216.023, Florida
277	Statutes.
278	(c)  If the department proposes to outsource a service
279	during a fiscal year and the outsourcing provision was not
280	included in the approved operating budget of the department, the
281	department must provide to the Governor, the President of the
282	Senate, the Speaker of the House of Representatives, the chairs
283	of the legislative appropriations committees, and the chairs of
284	the relevant substantive committees the business case that
285	complies with the requirements of paragraph (a) at least 45 days
286	before the release of any solicitation documents, as provided
287	for in section 287.057, Florida Statutes. Any budgetary changes
288	that are inconsistent with the department's approved budget may
289	not be made to existing programs unless the changes are
290	recommended to the Legislative Budget Commission by the Governor
291	and the Legislative Budget Commission expressly approves the
292	program changes.
293	(d)  The department may not privatize a service without
294	specific authority provided in general law, the General
295	Appropriations Act, legislation implementing the General
296	Appropriations Act, or a special appropriations act.
297	(5)  CONTRACTING AND PERFORMANCE MEASURES.--In addition to
298	the requirements of section 287.058, Florida Statutes, every
299	procurement of contractual services by the department which
300	meets or is in excess of the threshold amount provided in
301	section 287.017, Florida Statutes, for CATEGORY FIVE, must
302	comply with the requirements of this subsection.
303	(a)  The department shall execute a contract containing all
304	provisions and conditions, which must include, but need not be
305	limited to:
306	1.  A detailed scope of work that clearly specifies each
307	service and deliverable to be provided, including a description
308	of each deliverable or activity that is quantifiable,
309	measurable, and verifiable by the department and the contractor.
310	2.  Associated costs and savings, specific payment terms
311	and payment schedules, including incentive and penalty
312	provisions, criteria governing payment, and a clear and specific
313	schedule to complete all required activities needed to transfer
314	the service from the state to the contractor.
315	3.  Clear and specific identification of all required
316	performance measures and standards, which must, at a minimum,
317	include:
318	a.  Acceptance criteria for each deliverable and service to
319	be provided to the department under the terms of the contract
320	which document, to the greatest extent possible, the required
321	performance level. Acceptance criteria must be detailed, clear,
322	and unambiguous and shall be used to measure deliverables and
323	services to be provided under the contract.
324	b.  A method for monitoring and reporting progress in
325	achieving specified performance standards and levels.
326	c.  The sanctions or penalties that shall be assessed for
327	contract or state nonperformance. The department may adopt, by
328	rule, provisions for including in its contracts incremental
329	penalties to be imposed by its contract managers on a contractor
330	due to the contractor's failure to comply with a requirement for
331	corrective action. Any financial penalty that is imposed upon a
332	contractor may not be paid from funds being used to provide
333	services to clients, and the contractor may not reduce the
334	amount of services being delivered to clients as a method for
335	offsetting the effect of the penalty. If a financial penalty is
336	imposed upon a contractor that is a corporation, the department
337	shall notify, at a minimum, the board of directors of the
338	corporation. The department may notify any additional parties
339	that the department believes may be helpful in obtaining the
340	corrective action that is being sought. In addition, the rules
341	adopted by the department must include provisions that permit
342	the department to deduct the financial penalties from funds that
343	would otherwise be due to the contractor, not to exceed 10
344	percent of the amount that otherwise would be due to the
345	contractor for the period of noncompliance. If the department
346	imposes a financial penalty, it shall advise the contractor in
347	writing of the cause for the penalty. A failure to include such
348	deductions in a request for payment constitutes grounds for the
349	department to reject that request for payment. The remedies
350	identified in this paragraph do not limit or restrict the
351	department's application of any other remedy available to it in
352	the contract or under law. The remedies described in this
353	paragraph may be cumulative and may be assessed upon each
354	separate failure to comply with instructions from the department
355	to complete corrective action.
356	4.  A requirement that the contractor maintain adequate
357	accounting records that comply with all applicable federal and
358	state laws and generally accepted accounting principles.
359	5.  A requirement authorizing the department and state to
360	have access to and conduct audits of all records related to the
361	contract and outsourced services.
362	6.  A requirement that ownership of any intellectual
363	property developed in the course of, or as a result of, work or
364	services performed under the contract shall transfer to the
365	state if the contractor ceases to provide the outsourced
366	service.
367	7.  A requirement describing the timing and substance of
368	all plans and status or progress reports that are to be
369	provided. All plans and status or progress reports must comply
370	with any relevant state and federal standards for planning,
371	implementation, operations, and oversight.
372	8.  A requirement that the contractor shall comply with
373	public-record laws. The contractor shall:
374	a.  Keep and maintain the public records that ordinarily
375	and necessarily would be required by the department to perform
376	the service.
377	b.  Provide public access to such public records on the
378	same terms and conditions that the department would and at a
379	cost that does not exceed that provided in chapter 119, Florida
380	Statutes.
381	c.  Ensure the confidentiality of records that are exempt
382	from disclosure or confidential under law.
383	d.  Meet all legal and auditing requirements for record
384	retention, and transfer to the state, at no cost to the state,
385	all public records in possession of the contractor upon
386	termination of the contract. All records stored electronically
387	must be provided to the state in the format compatible with
388	state information technology systems.
389	9.  A requirement that any state funds provided for the
390	purchase of or improvements to real property are contingent upon
391	the contractor granting to the state a security interest in the
392	property which is at least equal to the amount of the state
393	funds provided for at least 5 years following the date of
394	purchase or the completion of the improvements or as further
395	required by law. The contract must include a provision that, as
396	a condition of receipt of state funding for this purpose, the
397	contractor agrees that, if it disposes of the property before
398	the department's interest is vacated, the contractor must refund
399	the proportionate share of the state's initial investment, as
400	adjusted by depreciation.
401	10.  A provision that the contractor annually submit and
402	verify, under section 92.525, Florida Statutes, all required
403	financial statements.
404	11.  A provision that the contractor will be held
405	responsible and accountable for all work covered under the
406	contract including any work performed by subcontractors. The
407	contract must state that the department may monitor the
408	performance of any subcontractor.
409	(b)  A contract may include cost-neutral, performance-based
410	incentives that may vary according to the extent a contractor
411	achieves or surpasses the performance standards set forth in the
412	contract. The incentives may be weighted proportionally to
413	reflect the extent to which the contractor has demonstrated that
414	it has consistently met or exceeded the contractual requirements
415	and the performance standards.
416	(c)  The department shall review the time period for which
417	it executes contracts and shall execute multiyear contracts to
418	make the most efficient use of the resources devoted to contract
419	processing and execution. Whenever the department chooses not to
420	use a multiyear contract, a justification for that decision must
421	be contained in the contract.
422	(d)  When the annualized value of a contract is in excess
423	of $1 million, at least one of the persons conducting
424	negotiations must be certified as a contract negotiator based
425	upon standards established by the Department of Management
426	Services.
427	(e)  The department may not amend a contract without first
428	submitting the proposed contract amendment to the Executive
429	Office of the Governor for approval if the effect of the
430	amendment would be to increase:
431	1.  The value of the contract by $250,000 for those
432	contracts with a total value of at least $250,000 but less than
433	$1 million;
434	2.  The value of the contract by $1 million for those
435	contracts with a total value of at least $1 million but less
436	than $10 million;
437	3.  The value of the contract by 10 percent for those
438	contracts with a total value of $10 million or more; or
439	4.  The term of the contract by 1 year or more.
440
441	When the department proposes any contract amendment that meets
442	the criteria described in this paragraph, it shall submit the
443	proposed contract amendment to the Executive Office of the
444	Governor for approval and shall immediately notify the chairs of
445	the legislative appropriations committees. The Executive Office
446	of the Governor may not approve the proposed contract amendment
447	until 14 days following receipt of the notification to the
448	legislative appropriations chairs. If either chair of the
449	legislative appropriations committees objects in writing to a
450	proposed contract amendment within 14 days following
451	notification and specifies the reasons for the objection, the
452	Executive Office of the Governor shall disapprove the proposed
453	contract amendment or shall submit the proposed contract
454	amendment to the Administration Commission. The proposed
455	contract amendment may be approved by the Administration
456	Commission by a two-thirds vote of the members present with the
457	Governor voting in the affirmative. In the absence of approval
458	by the commission, the proposed contract amendment shall be
459	automatically disapproved. Otherwise, upon approval by the
460	Governor or Administration Commission, the department may
461	execute the contract amendment.
462	(f)  An amendment that is issued under legislative
463	direction, including funding adjustments annually provided for
464	in the General Appropriations Act or the federal appropriations
465	acts, need not be submitted for approval in accordance with
466	paragraph (d).
467	(g)  In addition to the requirements of section 287.057(13)
468	and (14), Florida Statutes, the department shall verify, based
469	upon the best available data at the point of contract
470	renegotiations, that all specific direct and indirect costs,
471	savings, performance measures and standards, and qualitative and
472	quantitative benefits identified in the original contract have
473	been satisfied by a contractor or the department before the
474	contract is extended or renewed. The documentation must include
475	an explanation of any differences between the required
476	performance as identified in the contract and the actual
477	performance of the contractor. The documentation must be
478	included in the official contract file.
479	(h)  The department shall, in consultation with the
480	Department of Management Services, develop contract templates
481	and guidelines that define the mandatory contract provisions and
482	other requirements identified in this subsection and that must
483	be used for all contractual service contracts meeting the
484	requirements of this subsection. All contract templates and
485	guidelines shall be developed by September 30, 2005.
486	(6)  CONTRACT-MANAGEMENT REQUIREMENTS AND
487	PROCESS.--Notwithstanding section 287.057(15), Florida Statutes,
488	the department is responsible for establishing a contract-
489	management process that requires a member of the department's
490	Senior Management Service to assign in writing the
491	responsibility of a contract to a contract manager. The
492	department shall maintain a set of procedures describing its
493	contract-management process which must minimally include the
494	following requirements:
495	(a)  The contract manager shall maintain the official
496	contract file throughout the duration of the contract and for a
497	period not less than 6 years after the termination of the
498	contract.
499	(b)  The contract manager shall review all invoices for
500	compliance with the criteria and payment schedule provided for
501	in the contract and shall approve payment of all invoices before
502	their transmission to the Department of Financial Services for
503	payment. Only the contract manager shall approve the invoices
504	for a specific contract, unless the contract manager is
505	temporarily unavailable to review an invoice. The contract file
506	must contain an explanation for any periods of temporary
507	unavailability of the assigned contract manager. For any
508	individual invoice in excess of $500,000, a member of the
509	Selected Exempt Service or Senior Management Service shall also
510	sign payment approval of the invoice. For any individual invoice
511	in excess of $1 million, a member of the Senior Management
512	Service shall also sign payment approval of the invoice.
513	(c)  The contract manager shall maintain a schedule of
514	payments and total amounts disbursed and shall periodically
515	reconcile the records with the state's official accounting
516	records.
517	(d)  For contracts involving the provision of direct client
518	services, the contract manager shall periodically visit the
519	physical location where the services are delivered and speak
520	directly to clients receiving the services and the staff
521	responsible for delivering the services.
522	(e)  For contracts for which the contractor is a
523	corporation, the contract manager shall attend at least one
524	board meeting semiannually, if held and if within 100 miles of
525	the contract manager's official headquarters.
526	(f)  The contract manager shall meet at least once a month
527	directly with the contractor's representative and maintain
528	records of such meetings.
529	(g)  The contract manager shall periodically document any
530	differences between the required performance measures and the
531	actual performance measures. If a contractor fails to meet and
532	comply with the performance measures established in the
533	contract, the department may allow a reasonable period for the
534	contractor to correct performance deficiencies. If performance
535	deficiencies are not resolved to the satisfaction of the
536	department within the prescribed time, and if no extenuating
537	circumstances can be documented by the contractor to the
538	department's satisfaction, the department must terminate the
539	contract. The department may not enter into a new contract with
540	that same contractor for the services for which the contract was
541	previously terminated for a period of at least 24 months after
542	the date of termination. The contract manager shall obtain and
543	enforce corrective-action plans, if appropriate, and maintain
544	records regarding the completion or failure to complete
545	corrective-action items.
546	(h)  The contract manager shall document any contract
547	modifications, which shall include recording any contract
548	amendments as provided for in this section.
549	(i)  The contract manager shall be properly trained before
550	being assigned responsibility for any contract.
551
552	The department shall develop standards of conduct and a range of
553	disciplinary actions for its employees which are specifically
554	related to carrying out contract-management responsibilities.
555	(7)  CONTRACT-MONITORING REQUIREMENTS AND PROCESS.--The
556	department shall establish contract-monitoring units staffed by
557	full-time career service employees who report to a member of the
558	Select Exempt Service or Senior Management Service and who have
559	been properly trained to perform contract monitoring. A member
560	of the Senior Management Service shall assign in writing a
561	specific contract to a contract-monitoring unit, with at least
562	one member of the contract-monitoring unit possessing specific
563	knowledge and experience in the contract's program area. The
564	department shall establish a contract-monitoring process that
565	must include, but need not be limited to, the following
566	requirements:
567	(a)  Performing a risk assessment at the start of each
568	fiscal year and preparing an annual contract-monitoring schedule
569	that includes consideration for the level of risk assigned. The
570	department may monitor any contract at any time regardless of
571	whether such monitoring was originally included in the annual
572	contract-monitoring schedule.
573	(b)  Preparing a contract-monitoring plan, including
574	sampling procedures, before performing on-site monitoring at
575	external locations of a service provider. The plan must include
576	a description of the programmatic, fiscal, and administrative
577	components that will be monitored on-site. If appropriate,
578	clinical and therapeutic components may be included.
579	(c)  Conducting analyses of the performance and compliance
580	of an external service provider by means of desk reviews if the
581	external service provider will not be monitored on-site during a
582	fiscal year.
583	(d)  Unless the department sets forth in writing the need
584	for an extension, providing a written report presenting the
585	results of the monitoring within 30 days after the completion of
586	the on-site monitoring or desk review. Report extensions may not
587	exceed 30 days after the original completion date. The
588	department shall develop and use a standard contract-monitoring
589	report format and shall provide access to the reports by means
590	of a website that is available to the Legislature.
591	(e)  For contracts involving the provision of direct client
592	services, requiring the contract monitor to visit the physical
593	location where the services are being delivered and to speak
594	directly to the clients receiving the services and with the
595	staff responsible for delivering the services.
596	(f)  Developing and maintaining a set of procedures
597	describing the contract-monitoring process.
598
599	The department shall develop standards of conduct and a range of
600	disciplinary actions for its employees which are specifically
601	related to carrying out contract-monitoring responsibilities.
602	(8)  CONTRACTOR PROHIBITIONS.--A contractor, as defined in
603	chapter 287, Florida Statutes, or the employees, agents, or
604	subcontractors of the contractor, may not:
605	(a)  Directly or indirectly supervise, direct, or act as an
606	approving authority over any state employee or the action
607	committed to the responsibility of state employees.
608	(b)  Knowingly participate through decision, approval,
609	disapproval, recommendation, preparation of any part of a
610	purchase request, influencing the content of any specification
611	or procurement standard, rendering of advice, investigation, or
612	auditing, or in any other advisory capacity, in the procurement
613	of contractual services from an entity of which the contractor,
614	or the employees, agents, or subcontractors of the contractor,
615	has a material interest.
616	(9)  REPORTS TO THE LEGISLATURE.--Beginning October 1,
617	2005, the department shall make available to the Legislature
618	electronically all documents associated with the procurement and
619	contracting functions of the department. The documents in the
620	database must include, but are not limited to, all:
621	(a)  Business cases;
622	(b)  Procurement documents;
623	(c)  Contracts and any related files, attachments, or
624	amendments;
625	(d)  Contract monitoring reports;
626	(e)  Corrective action plans and reports of corrective
627	actions taken when contractor performance deficiencies are
628	identified; and
629	(f)  Status reports on all outsourcing initiatives
630	describing the progress by the department towards achieving the
631	business objectives, costs, savings, and quantifiable benefits
632	identified in the business case.
633	Section 2.  Section 402.73, Florida Statutes, is amended to
634	read:
635	402.73  Contracting and performance standards.--
636	(1)  The Department of Children and Family Services shall
637	establish performance standards for all contracted client
638	services. Notwithstanding s. 287.057(5)(f), the department must
639	competitively procure any contract for client services when any
640	of the following occurs:
641	(a)  The provider fails to meet appropriate performance
642	standards established by the department after the provider has
643	been given a reasonable opportunity to achieve the established
644	standards.
645	(b)  A new program or service has been authorized and
646	funded by the Legislature and the annual value of the contract
647	for such program or service is $300,000 or more.
648	(c)  The department has concluded, after reviewing market
649	prices and available treatment options, that there is evidence
650	that the department can improve the performance outcomes
651	produced by its contract resources. At a minimum, the department
652	shall review market prices and available treatment options
653	biennially. The department shall compile the results of the
654	biennial review and include the results in its annual
655	performance report to the Legislature pursuant to chapter 94-
656	249, Laws of Florida. The department shall provide notice and an
657	opportunity for public comment on its review of market prices
658	and available treatment options.
659	(2)  The competitive requirements of subsection (1) must be
660	initiated for each contract that meets the criteria of this
661	subsection, unless the secretary makes a written determination
662	that particular facts and circumstances require deferral of the
663	competitive process. Facts and circumstances must be
664	specifically described for each individual contract proposed for
665	deferral and must include one or more of the following:
666	(a)  An immediate threat to the health, safety, or welfare
667	of the department's clients.
668	(b)  A threat to appropriate use or disposition of
669	facilities that have been financed in whole, or in substantial
670	part, through contracts or agreements with a state agency.
671	(c)  A threat to the service infrastructure of a community
672	which could endanger the well-being of the department's clients.
673
674	Competitive procurement of client services contracts that meet
675	the criteria in subsection (1) may not be deferred for longer
676	than 1 year.
677	(3)  The Legislature intends that the department obtain
678	services in the manner that is most cost-effective for the
679	state, that provides the greatest long-term benefits to the
680	clients receiving services, and that minimizes the disruption of
681	client services. In order to meet these legislative goals, the
682	department may adopt rules providing procedures for the
683	competitive procurement of contracted client services which
684	represent an alternative to the request-for-proposal or
685	invitation-to-bid process. The alternative competitive
686	procedures shall permit the department to solicit professional
687	qualifications from prospective providers and to evaluate such
688	statements of qualification before requesting service proposals.
689	The department may limit the firms invited to submit service
690	proposals to only those firms that have demonstrated the highest
691	level of professional capability to provide the services under
692	consideration, but may not invite fewer than three firms to
693	submit service proposals, unless fewer than three firms
694	submitted satisfactory statements of qualification. The
695	alternative procedures must, at a minimum, allow the department
696	to evaluate competing proposals and select the proposal that
697	provides the greatest benefit to the state while considering the
698	quality of the services, dependability, and integrity of the
699	provider, the dependability of the provider's services, the
700	experience of the provider in serving target populations or
701	client groups substantially identical to members of the target
702	population for the contract in question, and the ability of the
703	provider to secure local funds to support the delivery of
704	services, including, but not limited to, funds derived from
705	local governments. These alternative procedures need not conform
706	to the requirements of s. 287.042 or s. 287.057(1) or (2).
707	(4)  The department shall review the period for which it
708	executes contracts and, to the greatest extent practicable,
709	shall execute multiyear contracts to make the most efficient use
710	of the resources devoted to contract processing and execution.
711	(5)  When it is in the best interest of a defined segment
712	of its consumer population, the department may competitively
713	procure and contract for systems of treatment or service that
714	involve multiple providers, rather than procuring and
715	contracting for treatment or services separately from each
716	participating provider. The department must ensure that all
717	providers that participate in the treatment or service system
718	meet all applicable statutory, regulatory, service-quality, and
719	cost-control requirements. If other governmental entities or
720	units of special purpose government contribute matching funds to
721	the support of a given system of treatment or service, the
722	department shall formally request information from those funding
723	entities in the procurement process and may take the information
724	received into account in the selection process. If a local
725	government contributes match to support the system of treatment
726	or contracted service and if the match constitutes at least 25
727	percent of the value of the contract, the department shall
728	afford the governmental match contributor an opportunity to name
729	an employee as one of the persons required by s. 287.057(17) to
730	evaluate or negotiate certain contracts, unless the department
731	sets forth in writing the reason why such inclusion would be
732	contrary to the best interest of the state. Any employee so
733	named by the governmental match contributor shall qualify as one
734	of the persons required by s. 287.057(17). No governmental
735	entity or unit of special purpose government may name an
736	employee as one of the persons required by s. 287.057(17) if it,
737	or any of its political subdivisions, executive agencies, or
738	special districts, intends to compete for the contract to be
739	awarded. The governmental funding entity or match contributor
740	shall comply with any deadlines and procurement procedures
741	established by the department. The department may also involve
742	nongovernmental funding entities in the procurement process when
743	appropriate.
744	(6)  The department may contract for or provide assessment
745	and case management services independently from treatment
746	services.
747	(7)  The department shall adopt, by rule, provisions for
748	including in its contracts incremental penalties to be imposed
749	by its contract managers on a service provider due to the
750	provider's failure to comply with a requirement for corrective
751	action. Any financial penalty that is imposed upon a provider
752	may not be paid from funds being used to provide services to
753	clients, and the provider may not reduce the amount of services
754	being delivered to clients as a method for offsetting the impact
755	of the penalty. If a financial penalty is imposed upon a
756	provider that is a corporation, the department shall notify, at
757	a minimum, the board of directors of the corporation. The
758	department may notify, at its discretion, any additional parties
759	that the department believes may be helpful in obtaining the
760	corrective action that is being sought. Further, the rules
761	adopted by the department must include provisions that permit
762	the department to deduct the financial penalties from funds that
763	would otherwise be due to the provider, not to exceed 10 percent
764	of the amount that otherwise would be due to the provider for
765	the period of noncompliance. If the department imposes a
766	financial penalty, it shall advise the provider in writing of
767	the cause for the penalty. A failure to include such deductions
768	in a request for payment constitutes a ground for the department
769	to reject that request for payment. The remedies identified in
770	this subsection do not limit or restrict the department's
771	application of any other remedy available to it in the contract
772	or under law. The remedies described in this subsection may be
773	cumulative and may be assessed upon each separate failure to
774	comply with instructions from the department to complete
775	corrective action.
776	(8)  The department shall develop standards of conduct and
777	a range of disciplinary actions for its employees which are
778	specifically related to carrying out contracting
779	responsibilities.
780	(1)(9)  The Agency for Persons with Disabilities department
781	must implement systems and controls to ensure financial
782	integrity and service provision quality in the developmental
783	services Medicaid waiver service system.
784	(10)  If a provider fails to meet the performance standards
785	established in the contract, the department may allow a
786	reasonable period for the provider to correct performance
787	deficiencies. If performance deficiencies are not resolved to
788	the satisfaction of the department within the prescribed time,
789	and if no extenuating circumstances can be documented by the
790	provider to the department's satisfaction, the department must
791	cancel the contract with the provider. The department may not
792	enter into a new contract with that same provider for the
793	services for which the contract was previously canceled for a
794	period of at least 24 months after the date of cancellation. If
795	an adult substance abuse services provider fails to meet the
796	performance standards established in the contract, the
797	department may allow a reasonable period, not to exceed 6
798	months, for the provider to correct performance deficiencies. If
799	the performance deficiencies are not resolved to the
800	satisfaction of the department within 6 months, the department
801	must cancel the contract with the adult substance abuse
802	provider, unless there is no other qualified provider in the
803	service district.
804	(11)  The department shall include in its standard contract
805	document a requirement that any state funds provided for the
806	purchase of or improvements to real property are contingent upon
807	the contractor or political subdivision granting to the state a
808	security interest in the property at least to the amount of the
809	state funds provided for at least 5 years from the date of
810	purchase or the completion of the improvements or as further
811	required by law. The contract must include a provision that, as
812	a condition of receipt of state funding for this purpose, the
813	provider agrees that, if it disposes of the property before the
814	department's interest is vacated, the provider will refund the
815	proportionate share of the state's initial investment, as
816	adjusted by depreciation.
817	(12)  The department shall develop and refine contracting
818	and accountability methods that are administratively efficient
819	and that provide for optimal provider performance.
820	(13)  The department may competitively procure any contract
821	when it deems it is in the best interest of the state to do so.
822	The requirements described in subsection (1) do not, and may not
823	be construed to, limit in any way the department's ability to
824	competitively procure any contract it executes, and the absence
825	of any or all of the criteria described in subsection (1) may
826	not be used as the basis for an administrative or judicial
827	protest of the department's determination to conduct
828	competition, make an award, or execute any contract.
829	(14)  A contract may include cost-neutral, performance-
830	based incentives that may vary according to the extent a
831	provider achieves or surpasses the performance standards set
832	forth in the contract. Such incentives may be weighted
833	proportionally to reflect the extent to which the provider has
834	demonstrated that it has consistently met or exceeded the
835	contractual requirements and the department's performance
836	standards.
837	(2)(15)  Nothing contained in chapter 287 shall require
838	competitive bids for health services involving examination,
839	diagnosis, or treatment.
840	Section 3.  Paragraphs (a), (b), (e), (f), and (g) of
841	subsection (1), paragraph (b) of subsection (2), paragraph (a)
842	of subsection (4), and subsections (6) and (9) of section
843	409.1671, Florida Statutes, are amended to read:
844	409.1671  Foster care and related services; outsourcing
845	privatization.--
846	(1)(a)  It is the intent of the Legislature that the
847	Department of Children and Family Services shall outsource
848	privatize the provision of foster care and related services
849	statewide. It is further the Legislature's intent to encourage
850	communities and other stakeholders in the well-being of children
851	to participate in assuring that children are safe and well-
852	nurtured. However, while recognizing that some local governments
853	are presently funding portions of certain foster care and
854	related services programs and may choose to expand such funding
855	in the future, the Legislature does not intend by its
856	outsourcing privatization of foster care and related services
857	that any county, municipality, or special district be required
858	to assist in funding programs that previously have been funded
859	by the state. Counties that provide children and family services
860	with at least 40 licensed residential group care beds by July 1,
861	2003, and provide at least $2 million annually in county general
862	revenue funds to supplement foster and family care services
863	shall continue to contract directly with the state and shall be
864	exempt from the provisions of this section. Nothing in this
865	paragraph prohibits any county, municipality, or special
866	district from future voluntary funding participation in foster
867	care and related services. As used in this section, the term
868	"outsource" "privatize" means to contract with competent,
869	community-based agencies. The department shall submit a plan to
870	accomplish outsourcing privatization statewide, through a
871	competitive process, phased in over a 3-year period beginning
872	January 1, 2000. This plan must be developed with local
873	community participation, including, but not limited to, input
874	from community-based providers that are currently under contract
875	with the department to furnish community-based foster care and
876	related services, and must include a methodology for determining
877	and transferring all available funds, including federal funds
878	that the provider is eligible for and agrees to earn and that
879	portion of general revenue funds which is currently associated
880	with the services that are being furnished under contract. The
881	methodology must provide for the transfer of funds appropriated
882	and budgeted for all services and programs that have been
883	incorporated into the project, including all management, capital
884	(including current furniture and equipment), and administrative
885	funds to accomplish the transfer of these programs. This
886	methodology must address expected workload and at least the 3
887	previous years' experience in expenses and workload. With
888	respect to any district or portion of a district in which
889	outsourcing privatization cannot be accomplished within the 3-
890	year timeframe, the department must clearly state in its plan
891	the reasons the timeframe cannot be met and the efforts that
892	should be made to remediate the obstacles, which may include
893	alternatives to total outsourcing privatization, such as public-
894	private partnerships. As used in this section, the term "related
895	services" includes, but is not limited to, family preservation,
896	independent living, emergency shelter, residential group care,
897	foster care, therapeutic foster care, intensive residential
898	treatment, foster care supervision, case management,
899	postplacement supervision, permanent foster care, and family
900	reunification. Unless otherwise provided for, the state attorney
901	shall provide child welfare legal services, pursuant to chapter
902	39 and other relevant provisions, in Pinellas and Pasco
903	Counties. When a private nonprofit agency has received case
904	management responsibilities, transferred from the state under
905	this section, for a child who is sheltered or found to be
906	dependent and who is assigned to the care of the outsourcing
907	privatization project, the agency may act as the child's
908	guardian for the purpose of registering the child in school if a
909	parent or guardian of the child is unavailable and his or her
910	whereabouts cannot reasonably be ascertained. The private
911	nonprofit agency may also seek emergency medical attention for
912	such a child, but only if a parent or guardian of the child is
913	unavailable, his or her whereabouts cannot reasonably be
914	ascertained, and a court order for such emergency medical
915	services cannot be obtained because of the severity of the
916	emergency or because it is after normal working hours. However,
917	the provider may not consent to sterilization, abortion, or
918	termination of life support. If a child's parents' rights have
919	been terminated, the nonprofit agency shall act as guardian of
920	the child in all circumstances.
921	(b)  It is the intent of the Legislature that the
922	department will continue to work towards full outsourcing
923	privatization in a manner that assures the viability of the
924	community-based system of care and best provides for the safety
925	of children in the child protection system. To this end, the
926	department is directed to continue the process of outsourcing
927	privatizing services in those counties in which signed startup
928	contracts have been executed. The department may also continue
929	to enter into startup contracts with additional counties.
930	However, no services shall be transferred to a community-based
931	care lead agency until the department, in consultation with the
932	local community alliance, has determined and certified in
933	writing to the Governor and the Legislature that the district is
934	prepared to transition the provision of services to the lead
935	agency and that the lead agency is ready to deliver and be
936	accountable for such service provision. In making this
937	determination, the department shall conduct a readiness
938	assessment of the district and the lead agency.
939	1.  The assessment shall evaluate the operational readiness
940	of the district and the lead agency based on:
941	a.  A set of uniform criteria, developed in consultation
942	with currently operating community-based care lead agencies and
943	reflecting national accreditation standards, that evaluate
944	programmatic, financial, technical assistance, training and
945	organizational competencies; and
946	b.  Local criteria reflective of the local community-based
947	care design and the community alliance priorities.
948	2.  The readiness assessment shall be conducted by a joint
949	team of district and lead agency staff with direct experience
950	with the start up and operation of a community-based care
951	service program and representatives from the appropriate
952	community alliance. Within resources available for this purpose,
953	the department may secure outside audit expertise when necessary
954	to assist a readiness assessment team.
955	3.  Upon completion of a readiness assessment, the
956	assessment team shall conduct an exit conference with the
957	district and lead agency staff responsible for the transition.
958	4.  Within 30 days following the exit conference with staff
959	of each district and lead agency, the secretary shall certify in
960	writing to the Governor and the Legislature that both the
961	district and the lead agency are prepared to begin the
962	transition of service provision based on the results of the
963	readiness assessment and the exit conference. The document of
964	certification must include specific evidence of readiness on
965	each element of the readiness instrument utilized by the
966	assessment team as well as a description of each element of
967	readiness needing improvement and strategies being implemented
968	to address each one.
969	(e)  As used in this section, the term "eligible lead
970	community-based provider" means a single agency with which the
971	department shall contract for the provision of child protective
972	services in a community that is no smaller than a county. The
973	secretary of the department may authorize more than one eligible
974	lead community-based provider within a single county when to do
975	so will result in more effective delivery of foster care and
976	related services. To compete for an outsourcing a privatization
977	project, such agency must have:
978	1.  The ability to coordinate, integrate, and manage all
979	child protective services in the designated community in
980	cooperation with child protective investigations.
981	2.  The ability to ensure continuity of care from entry to
982	exit for all children referred from the protective investigation
983	and court systems.
984	3.  The ability to provide directly, or contract for
985	through a local network of providers, all necessary child
986	protective services. Such agencies should directly provide no
987	more than 35 percent of all child protective services provided.
988	4.  The willingness to accept accountability for meeting
989	the outcomes and performance standards related to child
990	protective services established by the Legislature and the
991	Federal Government.
992	5.  The capability and the willingness to serve all
993	children referred to it from the protective investigation and
994	court systems, regardless of the level of funding allocated to
995	the community by the state, provided all related funding is
996	transferred.
997	6.  The willingness to ensure that each individual who
998	provides child protective services completes the training
999	required of child protective service workers by the Department
1000	of Children and Family Services.
1001	7.  The ability to maintain eligibility to receive all
1002	federal child welfare funds, including Title IV-E and IV-A
1003	funds, currently being used by the Department of Children and
1004	Family Services.
1005	8.  Written agreements with Healthy Families Florida lead
1006	entities in their community, pursuant to s. 409.153, to promote
1007	cooperative planning for the provision of prevention and
1008	intervention services.
1009	9.  A board of directors, of which at least 51 percent of
1010	the membership is comprised of persons residing in this state.
1011	Of the state residents, at least 51 percent must also reside
1012	within the service area of the lead community-based provider.
1013	(f)1.  The Legislature finds that the state has
1014	traditionally provided foster care services to children who have
1015	been the responsibility of the state. As such, foster children
1016	have not had the right to recover for injuries beyond the
1017	limitations specified in s. 768.28. The Legislature has
1018	determined that foster care and related services need to be
1019	outsourced privatized pursuant to this section and that the
1020	provision of such services is of paramount importance to the
1021	state. The purpose for such outsourcing privatization is to
1022	increase the level of safety, security, and stability of
1023	children who are or become the responsibility of the state. One
1024	of the components necessary to secure a safe and stable
1025	environment for such children is that private providers maintain
1026	liability insurance. As such, insurance needs to be available
1027	and remain available to nongovernmental foster care and related
1028	services providers without the resources of such providers being
1029	significantly reduced by the cost of maintaining such insurance.
1030	2.  The Legislature further finds that, by requiring the
1031	following minimum levels of insurance, children in outsourced
1032	privatized foster care and related services will gain increased
1033	protection and rights of recovery in the event of injury than
1034	provided for in s. 768.28.
1035	(g)  In any county in which a service contract has not been
1036	executed by December 31, 2004, the department shall ensure
1037	access to a model comprehensive residential services program as
1038	described in s. 409.1677 which, without imposing undue
1039	financial, geographic, or other barriers, ensures reasonable and
1040	appropriate participation by the family in the child's program.
1041	1.  In order to ensure that the program is operational by
1042	December 31, 2004, the department must, by December 31, 2003,
1043	begin the process of establishing access to a program in any
1044	county in which the department has not either entered into a
1045	transition contract or approved a community plan, as described
1046	in paragraph (d), which ensures full outsourcing privatization
1047	by the statutory deadline.
1048	2.  The program must be procured through a competitive
1049	process.
1050	3.  The Legislature does not intend for the provisions of
1051	this paragraph to substitute for the requirement that full
1052	conversion to community-based care be accomplished.
1053	(2)
1054	(b)  Persons employed by the department in the provision of
1055	foster care and related services whose positions are being
1056	outsourced under privatized pursuant to this statute shall be
1057	given hiring preference by the provider, if provider
1058	qualifications are met.
1059	(4)(a)  The department, in consultation with the community-
1060	based agencies that are undertaking the outsourced privatized
1061	projects, shall establish a quality assurance program for
1062	privatized services. The quality assurance program shall be
1063	based on standards established by the Adoption and Safe Families
1064	Act as well as by a national accrediting organization such as
1065	the Council on Accreditation of Services for Families and
1066	Children, Inc. (COA) or CARF--the Rehabilitation Accreditation
1067	Commission. Each program operated under contract with a
1068	community-based agency must be evaluated annually by the
1069	department. The department shall, to the extent possible, use
1070	independent financial audits provided by the community-based
1071	care agency to eliminate or reduce the ongoing contract and
1072	administrative reviews conducted by the department. The
1073	department may suggest additional items to be included in such
1074	independent financial audits to meet the department's needs.
1075	Should the department determine that such independent financial
1076	audits are inadequate, then other audits, as necessary, may be
1077	conducted by the department. Nothing herein shall abrogate the
1078	requirements of s. 215.97. The department shall submit an annual
1079	report regarding quality performance, outcome measure
1080	attainment, and cost efficiency to the President of the Senate,
1081	the Speaker of the House of Representatives, the minority leader
1082	of each house of the Legislature, and the Governor no later than
1083	January 31 of each year for each project in operation during the
1084	preceding fiscal year.
1085	(6)  Beginning January 1, 1999, and continuing at least
1086	through June 30, 2000, the Department of Children and Family
1087	Services shall outsource privatize all foster care and related
1088	services in district 5 while continuing to contract with the
1089	current model programs in districts 1, 4, and 13, and in
1090	subdistrict 8A, and shall expand the subdistrict 8A pilot
1091	program to incorporate Manatee County. Planning for the district
1092	5 outsourcing privatization shall be done by providers that are
1093	currently under contract with the department for foster care and
1094	related services and shall be done in consultation with the
1095	department.  A lead provider of the district 5 program shall be
1096	competitively selected, must demonstrate the ability to provide
1097	necessary comprehensive services through a local network of
1098	providers, and must meet criteria established in this section.
1099	Contracts with organizations responsible for the model programs
1100	must include the management and administration of all outsourced
1101	privatized services specified in subsection (1). However, the
1102	department may use funds for contract management only after
1103	obtaining written approval from the Executive Office of the
1104	Governor. The request for such approval must include, but is not
1105	limited to, a statement of the proposed amount of such funds and
1106	a description of the manner in which such funds will be used. If
1107	the community-based organization selected for a model program
1108	under this subsection is not a Medicaid provider, the
1109	organization shall be issued a Medicaid provider number pursuant
1110	to s. 409.907 for the provision of services currently authorized
1111	under the state Medicaid plan to those children encompassed in
1112	this model and in a manner not to exceed the current level of
1113	state expenditure.
1114	(9)  Each district and subdistrict that participates in the
1115	model program effort or any future outsourcing privatization
1116	effort as described in this section must thoroughly analyze and
1117	report the complete direct and indirect costs of delivering
1118	these services through the department and the full cost of
1119	outsourcing privatization, including the cost of monitoring and
1120	evaluating the contracted services.
1121	Section 4.  The Office of Program Policy Analysis and
1122	Government Accountability shall conduct two reviews of the
1123	contract-management and accountability structures of the
1124	Department of Children and Family Services, including, but not
1125	limited to, whether the department is adequately monitoring and
1126	managing its outsourced or privatized functions and services.
1127	The office shall report its findings and recommendations to the
1128	President of the Senate, the Speaker of the House of
1129	Representatives, and the Auditor General by February 1 of 2006
1130	and 2007, respectively.
1131	Section 5.  Section 402.72, Florida Statutes, is repealed.
1132	Section 6.  For fiscal year 2005-2006, there is hereby
1133	appropriated the sum of $102,232 in nonrecurring General Revenue
1134	funds to the Department of Children and Family Services to
1135	enable the department to comply with the electronic reporting
1136	requirements of section 1 of this act.
1137	Section 7.  This act shall take effect July 1, 2005.

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