CS/HB 925 2023
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to direct -support organizations; 2
amending s. 402.57, F.S.; authorizing the Department 3
of Children and Families to establish a direct -support 4
organization for a specified purpose; providing 5
criteria for the direct -support organization; 6
requiring the direct-support organization to operate 7
under written contract with the department; providing 8
requirements for the contract; requiring the Secretary 9
of Children and Families to appoint a board of 10
directors of the direct -support organization; 11
providing for terms of board members; authorizing the 12
department to allow the direct -support organization to 13
use, without charge, the department's fixed property, 14
facilities, and personnel services, subject to certain 15
requirements; defining the term "personnel s ervices"; 16
authorizing the direct -support organization to 17
collect, expend, and provide funds for specified 18
purposes; prohibiting the use of such funds for 19
lobbying; authorizing moneys to be held in a separate 20
depository account in the name of the direct -support 21
organization, subject to the contract with the 22
department; requiring the direct -support organization 23
to provide for annual financial audits; providing for 24
future repeal; deleting obsolete language; providing 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
requirements for the contract for operation of the 26
direct-support organization assisting the Children and 27
Youth Cabinet; amending s. 1001.453, F.S.; authorizing 28
district school boards to contract with direct -support 29
organizations for personal services and operations; 30
providing requirements for cert ain persons providing 31
personal services; revising the amount of expenditures 32
and expenses a direct -support organization must have 33
to be required to provide for an annual financial 34
audit; authorizing district school boards to contract 35
with a vendor for such audits; providing an effective 36
date. 37
38
Be It Enacted by the Legislature of the State of Florida: 39
40
Section 1. Section 402.57, Florida Statutes, is amended to 41
read: 42
402.57 Direct-support organizations organization.— 43
(1) DEPARTMENT OF CHILDREN AND FAMILIES.—The Department of 44
Children and Families is authorized to create a direct -support 45
organization, the sole purpose of which is to support the 46
department in carrying out its purposes and responsibilities. 47
(a) The direct-support organization must b e: 48
1. A not-for-profit corporation incorporated under chapter 49
617 and approved by the Department of State as a not -for-profit 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
corporation; 51
2. Organized and operated to conduct programs and 52
activities; to raise funds; to request and receive grants, 53
gifts, and bequests of moneys; to acquire, receive, hold, 54
invest, and administer, in its own name, securities, funds, 55
objects of value, or other property, real or personal; and to 56
make expenditures to or for the direct or indirect benefit of 57
the department and the individuals it serves; and 58
3. Determined by the department to be operating in a 59
manner consistent with the goals and purposes of the department, 60
the best interest of the state, and the needs of children and 61
adults served by the department. 62
(b) The direct-support organization shall operate under a 63
written contract with the department. The contract must provide 64
for all of the following: 65
1. Department approval of the articles of incorporation 66
and bylaws of the direct -support organization. 67
2. Submission of an annual budget for department approval. 68
3. Certification by the department that the direct -support 69
organization is complying with the terms of the contract and 70
operating in a manner consistent with the goals and purposes of 71
the department and in the best interest of the state. Such 72
certification must be made annually and reported in the official 73
minutes of a meeting of the direct -support organization. 74
4. The reversion to the state of moneys and property held 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
in trust by the direct -support organization for the benefit of 76
those served by the department if the department ceases to exist 77
or the reversion to the department if the direct -support 78
organization is no longer approved to operate for the department 79
or ceases to exist. 80
5. The fiscal year of the direct-support organization, 81
which must begin July 1 of each year and end June 30 of the 82
following year. 83
6. The disclosure of material provisions of the contract, 84
and the distinction between the department and the direct -85
support organization, to donors of gifts, contributions, or 86
bequests, including such disclosure on all promotional and 87
fundraising publications. 88
(c) The Secretary of Children and Families shall appoint 89
the board of directors of the direct -support organization. Each 90
member of the board of directors shall be appointed to a 4 -year 91
term. However, for the purpose of providing staggered terms, the 92
initial appointments shall be for either 2 years or 4 years, as 93
determined by the secretary. 94
(d) The department may allow, without charge, appropriate 95
use of fixed property, facilities, and personnel services of the 96
department by the direct -support organization, subject to the 97
requirements of this section. As used in this subsection, the 98
term "personnel services" includes full -time or part-time 99
personnel, as well as payroll processing services. 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1. The department may not allow a direct -support 101
organization to use any fixed property, facilities, or personnel 102
services of the department if the direct -support organization 103
does not provide equal membership and employment opportunities 104
to all persons regardless of race, color, religion, sex, age, or 105
national origin. 106
2. The department may prescribe any conditions with which 107
a direct-support organization must comply to use fixed property, 108
facilities, or personnel services of the department and shall 109
adopt rules prescribing those conditions and the procedures by 110
which the direct-support organization is governed. 111
(e) The direct-support organization may collect, expend, 112
and provide funds for: 113
1. Addressing gaps in services for the children and adults 114
served by the department. 115
2. Developing, implementing, and operating targeted 116
prevention efforts. 117
3. Providing services and activities that support the 118
goals of the department. 119
4. Supporting the f unctions of the direct -support 120
organization's board of directors, as necessary and approved by 121
the department. 122
123
The funds of the direct -support organization may not be used for 124
the purpose of lobbying as defined in s. 11.045(1). 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(f) Any moneys may be hel d in a separate depository 126
account in the name of the direct -support organization, subject 127
to the provisions of the contract with the department. 128
(g) The direct-support organization shall provide for an 129
annual financial audit in accordance with s. 215.98 1. 130
(h) This subsection is repealed October 1, 2028, unless 131
reviewed and saved from repeal by the Legislature. 132
(2) CHILDREN AND YOUTH CABINET. —The Department of Children 133
and Families shall establish a direct -support organization to 134
assist the Children a nd Youth Cabinet established in s. 402.56 135
in carrying out its purposes and responsibilities, primarily 136
regarding fostering public awareness of children and youth 137
issues and developing new partners in the effort to serve 138
children and youth by raising money; submitting requests for and 139
receiving grants from the Federal Government, the state or its 140
political subdivisions, private foundations, and individuals; 141
and making expenditures to or for the benefit of the cabinet. 142
The sole purpose for the direct -support organization is to 143
support the cabinet. 144
(a) The direct-support organization must be: 145
1.(a) Incorporated under chapter 617 and approved by the 146
Department of State as a Florida corporation not for profit. 147
2.(b) Organized and operated to make expenditur es to or 148
for the benefit of the cabinet. 149
3.(c) Approved by the department to be operating for the 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
benefit of and in a manner consistent with the goals of the 151
cabinet and in the best interest of the state. 152
(b)(2) The board of directors of the direct -support 153
organization shall consist of seven members appointed by the 154
Governor. Each member of the board of directors shall be 155
appointed to a 4-year term. However, for the purpose of 156
providing staggered terms, the initial appointments shall be for 157
either 2 years or 4 years, as determined by the Governor. 158
(c)(3) The direct-support organization shall operate under 159
a written contract with the department. The contract must 160
provide for all of the following: 161
1. Department approval of the articles of incorporation 162
and bylaws of the direct -support organization. 163
2. Submission of an annual budget for department approval. 164
3. Certification by the department that the direct -support 165
organization is complying with the terms of the contract and 166
operating in a manner consistent with the goals and purposes of 167
the department and in the best interest of the state. Such 168
certification must be made annually and reported in the official 169
minutes of a meeting of the direct -support organization. 170
4. The reversion to the state o f moneys and property held 171
in trust by the direct -support organization for the benefit of 172
those served by the department if the department ceases to exist 173
or the reversion to the department if the direct -support 174
organization is no longer approved to operat e for the department 175
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
or ceases to exist. 176
(d)(4) All moneys received by the direct -support 177
organization must be deposited into an account of the direct -178
support organization and shall be used in a manner consistent 179
with the goals of the cabinet. 180
(e)(5) This subsection section is repealed October 1, 181
2024, unless reviewed and saved from repeal by the Legislature. 182
Section 2. Paragraphs (a) and (c) of subsection (2) and 183
subsection (4) of section 1001.453, Florida Statutes, are 184
amended to read: 185
1001.453 Direct-support organization; use of property; 186
board of directors; audit. — 187
(2) USE OF PROPERTY. —A district school board: 188
(a) Is authorized to : 189
1. Permit the use of property, facilities, and personal 190
services of the district by a direct -support organization, 191
subject to the provisions of this section; or 192
2. Contract with a direct -support organization for 193
personal services or operations. However, a retiree of the 194
Florida Retirement System providing such personal services must 195
first satisfy the requir ements for termination from employment 196
provided in s. 121.021(39) before providing such services for a 197
Florida Retirement System employer and is subject to the 198
reemployment limitations provided in s. 121.091(9) . 199
(c) May Shall not permit the use of prope rty, facilities, 200
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
or personal services by of a direct-support organization if such 201
organization does not provide equal employment opportunities to 202
all persons, regardless of race, color, religion, sex, age, or 203
national origin. 204
(4) ANNUAL FINANCIAL AUDIT.—Each direct-support 205
organization with more than $250,000 $100,000 in expenditures or 206
expenses shall provide for an annual financial audit of its 207
accounts and records, to be conducted by an independent 208
certified public accountant in accordance with rules ad opted by 209
the Auditor General pursuant to s. 11.45(8) and the Commissioner 210
of Education. A district school board may contract with a vendor 211
for an annual financial audit of a direct -support organization. 212
The annual financial audit report shall be submitted within 9 213
months after the fiscal year's end to the district school board 214
and the Auditor General. The Commissioner of Education, the 215
Auditor General, and the Office of Program Policy Analysis and 216
Government Accountability have the authority to require and 217
receive from the organization or the district auditor any 218
records relative to the operation of the organization. The 219
identity of donors and all information identifying donors and 220
prospective donors are confidential and exempt from the 221
provisions of s. 119.07(1), and that anonymity shall be 222
maintained in the auditor's report. All other records and 223
information shall be considered public records for the purposes 224
of chapter 119. 225
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Section 3. This act shall take effect upon becoming a law. 226