HB 495

1	A bill to be entitled
2	An act relating to procurement of contractual services by
3	a state agency; amending s. 287.0571, F.S.; providing that
4	specified services related to mental health, substance
5	abuse, child welfare, and juvenile justice are not subject
6	to the Florida Efficient Government Act; creating s.
7	287.0575, F.S.; providing agency and contract requirements
8	with respect to the outsourcing of human services related
9	to mental health and substance abuse, child welfare, and
10	juvenile justice by the Department of Juvenile Justice,
11	the Department of Corrections, the Department of Children
12	and Family Services, and the Agency for Health Care
13	Administration; providing an effective date.
14
15	WHEREAS, in 2006, the Florida Legislature, during the 2006
16	regular legislative session, passed Committee Substitute for
17	Committee Substitute for Senate Bill 2518, the "Florida
18	Efficient Government Act," and
19	WHEREAS, the expressed intent of the Florida Efficient
20	Government Act is that "each state agency focus on its core
21	mission and deliver services effectively and efficiently by
22	leveraging resources and contracting with private sector vendors
23	whenever vendors can more effectively and efficiently provide
24	services and reduce the cost of government," and
25	WHEREAS, it is also the expressed intent of the act that
26	"business cases to outsource be evaluated for feasibility, cost-
27	effectiveness, and efficiency before a state agency proceeds
28	with any outsourcing of services," and
29	WHEREAS, as part of the Florida Efficient Government Act,
30	section 287.0571(4), Florida Statutes, exempts procurements of
31	certain commodities and contractual services from the provisions
32	of the act, and
33	WHEREAS, among those exempt commodities and contractual
34	services are artistic services; academic program reviews;
35	lectures by individuals; auditing services; legal services;
36	health services involving examination, diagnosis, treatment,
37	prevention, medical consultation, or administration; services
38	provided to persons with mental or physical disabilities by
39	certain not-for-profit corporations; family placement services;
40	and prevention services related to mental health, including drug
41	abuse prevention programs, child abuse prevention programs, and
42	shelters for runaways, operated by not-for-profit corporations,
43	and
44	WHEREAS, though the Florida Efficient Government Act makes
45	great strides in accomplishing its intended purposes, there are
46	managing entities and service providers who currently provide
47	human services related to mental health, substance abuse, child
48	welfare, and juvenile justice under outsourcing contracts with
49	the Department of Juvenile Justice, the Department of
50	Corrections, the Department of Children and Family Services, and
51	the Agency for Health Care Administration who should be included
52	within the exemption provisions of section 287.0571(4), Florida
53	Statutes, and
54	WHEREAS, these entities provide critical assistance to the
55	Department of Juvenile Justice, the Department of Corrections,
56	the Department of Children and Family Services, and the Agency
57	for Health Care Administration in fulfilling their missions, and
58	WHEREAS, these managing entities and service providers want
59	to ensure full accountability of the managing entity, the
60	service provider, and the contracting agency by requiring
61	transparency in negotiations and contracting and by instituting
62	equitable and reasonable requirements with respect to oversight,
63	monitoring, and regulation of the services provided, and
64	WHEREAS, because it is also a primary concern of these
65	managing entities and service providers to ensure continuity of
66	care, optimal levels of service that are not subject to
67	fluctuation, and stability for the client, it is essential that
68	such outsourcing contracts be required to define standards of
69	performance and measurement that are based upon evidence-based
70	best practices and national outcome-related standards or
71	measures, and
72	WHEREAS, it is of equal importance that contracts for such
73	services contain requirements for stringent, independent, and
74	formalized audit procedures and improved reporting to the
75	Legislature in order to ensure the continuing efficiency and
76	accountability of these contracts, NOW, THEREFORE,
77
78	Be It Enacted by the Legislature of the State of Florida:
79
80	Section 1.  Subsection (4) of section 287.0571, Florida
81	Statutes, is amended to read:
82	287.0571  Applicability of ss. 287.0571-287.0574.--
83	(4)  Sections 287.0571-287.0574 do not apply to:
84	(a)  A procurement of commodities and contractual services
85	listed in s. 287.057(5)(e), (f), and (g) and (22).
86	(b)  A procurement of contractual services subject to s.
87	287.055.
88	(c)  A procurement of contractual services subject to s.
89	287.0575.
90	(d)(c)  A contract in support of the planning, development,
91	implementation, operation, or maintenance of the road, bridge,
92	and public transportation construction program of the Department
93	of Transportation.
94	(e)(d)  A procurement of commodities or contractual
95	services which does not constitute an outsourcing of services or
96	activities.
97	Section 2.  Section 287.0575, Florida Statutes, is created
98	to read:
99	287.0575  Requirements for outsourcing of human services
100	related to mental health, substance abuse, child welfare, and
101	juvenile justice by the Department of Juvenile Justice, the
102	Department of Corrections, the Department of Children and Family
103	Services, and the Agency for Health Care Administration.--The
104	outsourcing of human services related to mental health,
105	substance abuse, child welfare, and juvenile justice by the
106	Department of Juvenile Justice, the Department of Corrections,
107	the Department of Children and Family Services, or the Agency
108	for Health Care Administration are subject to the following
109	requirements:
110	(1)  The Department of Juvenile Justice, the Department of
111	Corrections, the Department of Children and Family Services, and
112	the Agency for Health Care Administration shall, with respect to
113	a contract to outsource human services related to mental health,
114	substance abuse, child welfare, and juvenile justice:
115	(a)  Recognize and accept accreditation by national
116	accreditation organizations as providing appropriate credentials
117	for service providers so as to reduce paperwork, reduce required
118	monitoring, and otherwise assist in meeting required oversight
119	functions, where applicable.
120	(b)  Establish model rates of payment for services based on
121	the variable costs of providing services in different
122	geographical regions of the state.
123	(c)  Prohibit cost reimbursement as a method of payment.
124	(d)  Implement a mechanism to annually adjust model rates
125	of payment for services that is based on the Consumer Price
126	Index.
127	(e)1.  Require that negotiations be reopened with providers
128	in order to make any modifications to the scope of work of an
129	executed contract;
130	2.  Require cost-benefit analysis to be utilized as a part
131	of any negotiation;
132	3.  Provide that amendments to a contract resulting from
133	negotiations be justified by need; and
134	4.  Provide for adequate compensation for any modification.
135	(f)  Establish and require a reasonable period of time for
136	negotiation and execution of a contract after the award.
137	(g)  Provide for an ombudsman and a procedure to facilitate
138	or assist in resolving contract disputes.
139	(h)  Provide for an annual report to the Legislature based
140	upon evidence-based best practices and national outcome-related
141	standards or measures.
142	(i)  Provide for reimbursement for the extra day of
143	services provided during a leap year.
144	(j)1.  Provide for monthly reimbursement within a
145	prescribed timeframe; and
146	2.  Where there are disputed issues, ensure that payment
147	will be made on all items not under dispute and that in no event
148	will payment be withheld on undisputed issues pending the
149	resolution of disputed issues.
150	(k)  Provide that funds required to ensure cash flow and
151	program expansion and development cannot be considered as excess
152	revenue.
153	(2)  A contract to outsource human services related to
154	mental health, substance abuse, child welfare, and juvenile
155	justice on behalf of the Department of Juvenile Justice, the
156	Department of Corrections, the Department of Children and Family
157	Services, or the Agency for Health Care Administration shall
158	include provisions that:
159	(a)  Require contract deliverables to be based on the
160	requirements of the contracting agency or, in the case of a
161	multi-agency contract, the primary contracting agency,
162	applicable state laws, and national outcome-related standards or
163	measures. In the event that there are no best practices or
164	national outcome-related standards or measures upon which to
165	base the deliverable, the initial contract shall be utilized to
166	establish baseline measures and deliverables for future
167	contracts, based upon experience and baseline data collected
168	during the initial contract. Under no circumstances shall
169	deliverables other than the requirements of the contracting
170	agency to the state or those requirements specified in state law
171	be established without data to support them, except when
172	establishing baseline measures.
173	(b)1.  Contain clear measures and specifications when
174	deliverables are placed in a contract that will allow for
175	accurate determinations regarding the fulfillment of contract
176	requirements; and
177	2.  Take into consideration the fact that, when dealing
178	with human health and behavioral issues, a wide range of
179	variables exist. Therefore, to the extent possible, the contract
180	shall provide established measures and specifications to be
181	stated within established parameters.
182	(c)  Specify a reasonable number of annual monitoring
183	visits to ensure that appropriate oversight will occur without
184	impeding the efficient provision of the services. These may be
185	modified if the performance of the managing entity or service
186	provider dictates otherwise. Whenever possible, monitoring shall
187	be combined so that interruptions to the agency and services are
188	minimized.
189	(d)  Require all financial audits to be conducted in
190	accordance with generally accepted accounting principles.
191	Section 3.  This act shall take effect July 1, 2007.

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