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