The proposed bill, Substitute Bill No. 1231, aims to enhance the oversight and efficiency of state contracts with nonprofit human services providers. It defines "nonprofit human services provider" and mandates the Secretary of the Office of Policy and Management to conduct a review of the state's purchase of service contracts every five years, starting January 1, 2026. This review will assess whether the compensation rates for these providers are adequate for the services rendered. Additionally, the Secretary is required to submit a report to relevant legislative committees, which will include findings from the review and recommendations for adjustments to contractual expectations if they are not sufficiently funded.

Furthermore, the bill introduces a requirement for the Secretary to review the reporting obligations of nonprofit human services providers triennially, starting January 1, 2026. The Secretary is tasked with eliminating or consolidating any reporting deemed unduly burdensome or duplicative, while ensuring that necessary reporting to prevent fraud or comply with federal regulations remains intact. The bill also repeals and replaces a subsection of the current law regarding the establishment of uniform policies for purchasing health and human services, adding a provision that mandates timely payment to providers for services rendered. The act is set to take effect upon passage, with specific provisions becoming effective on July 1, 2025.