Amendment
Bill No. 1476

Amendment No. 814009

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

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