Florida Senate - 2011 CS for SB 226 By the Committee on Children, Families, and Elder Affairs; and Senators Smith and Gaetz 586-02856-11 2011226c1 1 A bill to be entitled 2 An act relating to human services; creating s. 3 287.0576, F.S.; providing definitions; allowing the 4 national accreditation of human service providers to 5 substitute for certain agency licensure and monitoring 6 requirements; providing exceptions; requiring a single 7 lead agency to be responsible for monitoring human 8 services delivery for designated populations; 9 requiring the lead agency to develop monitoring 10 protocols, develop a plan for coordinating monitoring 11 activities, adopt rules, provide a list of required 12 documents, and develop forms by a certain date; 13 providing that background screening conducted for one 14 agency satisfies the screening requirements of other 15 agencies; requiring the agency to accept all mandated 16 reports and invoices electronically and to allow all 17 core documents to be posted in secure electronic 18 storage; requiring agencies to provide an analysis of 19 every new governmental mandate to an affected 20 contractor before the mandate may be required or 21 imposed; requiring a contracting agency to negotiate a 22 contract amendment for any material change to a 23 contract that will have a financial impact on a 24 contractor; requiring human service contracts to 25 include a cost-of-living adjustment or allow the 26 contractor to reduce services; providing an exception 27 under certain circumstances; requiring a contract to 28 ensure payment for undisputed issues, not allow a 29 private entity performing contract monitoring to 30 impose additional requirements, and allow unexpended 31 funds to be carried forward; providing that failure by 32 an agency to negotiate a contract amendment or provide 33 a remedy to a material adverse impact of a new 34 governmental mandate constitutes an agency action for 35 the purposes of ch. 120, F.S.; requiring each agency 36 to compile a list of contractor requirements and 37 submit such list to the Governor; providing an 38 effective date. 39 40 Be It Enacted by the Legislature of the State of Florida: 41 42 Section 1. Section 287.0576, Florida Statutes, is created 43 to read: 44 287.0576 Outsourced human services.— 45 (1) As used in this section, the term: 46 (a) “Financial impact” means an increase in reasonable 47 costs of 5 percent or more in the annual aggregate payment to a 48 contractor performing a contract for outsourced human services. 49 (b) “Human services” means services related to mental 50 health, substance abuse, child welfare, or juvenile justice. 51 (c) “New governmental mandate” means a statutory 52 requirement, administrative rule, regulation, assessment, 53 executive order, judicial order, or other governmental 54 requirement, or an agency policy, that was not in effect when a 55 contract for the outsourcing of human services was originally 56 entered into and that directly imposes an obligation on the 57 contractor to take, or to refrain from taking, an action in 58 order to fulfill its contractual obligation. 59 (2) Notwithstanding any other provision of law, in order to 60 create a more stable business environment for contractors 61 providing outsourced human services and to ensure 62 accountability, eliminate duplication, and improve efficiency 63 with respect to the provision of such services, national 64 accreditation of human services providers by the Joint 65 Commission on Accreditation of Healthcare Organizations, the 66 Commission on Accreditation of Rehabilitation Facilities, and 67 the Council on Accreditation shall be accepted by an agency in 68 lieu of the agency’s facility licensure onsite review and 69 administrative requirements, and as a substitute for the 70 agency’s licensure, administrative, and program monitoring 71 requirements. Accreditation for administrative requirements 72 satisfies the administrative requirements for licensure during 73 the time period that the accreditation is effective. 74 Notwithstanding a survey or inspection by an accreditation 75 organization, the agency may continue to inspect and monitor the 76 contractor as necessary with respect to: 77 (a) Reimbursement matters for any contract. 78 (b) Complaint investigations, suspected problems, or the 79 implementation of the terms of consent decrees or other orders. 80 (c) Ensuring compliance with federal or state laws and 81 rules that are not covered by the accreditation. 82 (3) To facilitate service delivery and compliance with the 83 provisions of this part, a single agency shall take the lead 84 with respect to developing policies and monitoring requirements 85 for specified human services. The agency that has been 86 designated by the Federal Government or state law as the 87 authorized state entity with respect to a defined human service 88 population shall be the lead agency for the provision of all 89 related human services. 90 (a) By October 1, 2011, each lead agency shall: 91 1. Develop a common monitoring protocol to be used by all 92 agencies serving the same population; 93 2. Develop and implement a plan that coordinates monitoring 94 activities related to the delivery of services to the 95 populations being served by multiple agencies. Monitoring by 96 multiple agencies shall be combined so that interruptions to the 97 contractor and to the services provided are minimized; 98 3. Adopt rules that guide the delivery of services across 99 the jurisdictions of multiple agencies serving the same 100 population and coordinate all monitoring activities; 101 4. Provide a master list of core documents required for 102 contract monitoring purposes and provide for the submission or 103 posting of such documentation by each contractor; and 104 5. If the same information or documentation is required by 105 more than one agency, develop a common form to be used by all 106 agencies requesting that information or documentation. 107 (b) Level 2 background screening conducted for one lead 108 agency shall satisfy the screening requirements for all agencies 109 requiring such screening. 110 (4) The department or agency must accept all mandated 111 reports and invoices from human services contractors 112 electronically, and allow all core documents required under 113 subparagraph (3)(a)4. to be posted in secure electronic storage. 114 The department shall recognize electronic document vaults 115 established for the purpose of storing, delivering, and 116 retrieving documents required in monitoring and regulatory 117 review processes. To the greatest extent possible, the 118 department shall promote the development, implementation, and 119 maintenance of such vaults by service providers or provider 120 trade associations. If a contractor uses such storage, the 121 department or agency must have access to the electronic storage 122 in order to monitor required documents, and shall by rule or 123 contract require the contractor to deposit documents requested 124 by the agency in such storage. 125 (5) Agencies shall provide to the contractor an analysis of 126 every new governmental mandate affecting the human services 127 contractor. The analysis must identify the estimated cost of the 128 mandate to the contractor and must be transmitted to the 129 contractor before the mandate may be required or imposed. 130 (6) Contracts to outsource human services must: 131 (a) Provide that if a material change to the scope of the 132 contract is imposed upon a contractor and compliance with such 133 change will have a financial impact on the contractor, the 134 contracting agency shall negotiate a contract amendment to 135 increase the maximum obligation amount or unit price of the 136 contract to offset the financial impact of the change if the 137 contractor furnishes evidence of such impact along with a 138 request to renegotiate the contract based on the proposed change 139 to the agency. The contractor may not be held to requirements or 140 obligations that are not required by law or are not included in 141 the original contract or by negotiated amendment to the 142 contract. The agency may issue emergency requirements to ensure 143 the continued safety of the population served by the contractor 144 for up to 90 days, during which the agency shall negotiate 145 contract changes as described in this paragraph. 146 (b) Provide, subject to appropriations, an annual cost-of 147 living adjustment that reflects increases in the consumer price 148 index. In the absence of a cost-of-living adjustment, the 149 contract must allow the contractor to reduce the number of 150 services or units contracted for, or require the agency to 151 provide documentation substantiating the reasons a reduction is 152 not possible. 153 (c) Ensure that: 154 1. Payment will be made on all items not under dispute and 155 that payment will not be withheld on undisputed issues pending 156 the resolution of disputed issues. 157 2. If the agency engages a private entity to conduct 158 contract monitoring or otherwise delegates any contract 159 administration functions to an outside entity, such entity shall 160 uniformly administer the contract and not impose any 161 requirements that exceed law, rule, or the contract terms. 162 3. Notwithstanding s. 216.301, any dispersed funds that 163 remain unexpended during the contract term are approved as 164 authorized revenue and carry over into the next year for the 165 purposes of cash flow and continuation of the contract. 166 (7) Any material change to a human services contract 167 imposed pursuant to paragraph (6)(a) constitutes an agency 168 action pursuant to chapter 120. Any contractor aggrieved by the 169 refusal or failure of an agency to negotiate a contract 170 amendment to provide a remedy for the fiscal impact of a 171 material change to the scope of the contract may seek a remedy 172 pursuant to chapter 120. 173 (8) Each agency shall annually compile and list all 174 contract requirements, mandated reports, outcome measures, and 175 other requirements imposed on its human services contractors. 176 The list must provide a law, rule, contract, or policy citation 177 for each requirement. The list shall be submitted to the 178 Governor. 179 Section 2. This act shall take effect July 1, 2011.