ENROLLED 2023 Legislature CS for SB 1278, 1st Engrossed 20231278er 1 2 An act relating to direct-support organizations; 3 amending s. 402.57, F.S.; authorizing the Department 4 of Children and Families to establish a direct-support 5 organization for a specified purpose; specifying 6 criteria for the direct-support organization; 7 requiring the direct-support organization to operate 8 under written contract with the department; providing 9 requirements for the contract; requiring the Secretary 10 of Children and Families to appoint a board of 11 directors for the direct-support organization; 12 providing for appointment of board members; 13 authorizing the department to allow the direct-support 14 organization to use, without charge, the departments 15 fixed property, facilities, and personnel services, 16 subject to certain requirements; defining the term 17 personnel services; authorizing the direct-support 18 organization to collect, expend, and provide funds for 19 specified purposes; prohibiting the use of such funds 20 for lobbying purposes; authorizing moneys to be held 21 in a separate depository account in the name of the 22 direct-support organization, subject to certain 23 requirements; requiring the direct-support 24 organization to provide for annual audits; providing 25 for future repeal; amending s. 1001.453, F.S.; 26 authorizing district school boards to contract with 27 direct-support organizations for personal services or 28 operations, subject to certain limitations; revising 29 the amount of expenditures and expenses a direct 30 support organization must have to be required to 31 provide for an annual financial audit; authorizing 32 district school boards to contract with a vendor for 33 such audits; providing an effective date. 34 35 Be It Enacted by the Legislature of the State of Florida: 36 37 Section 1.Section 402.57, Florida Statutes, is amended to 38 read: 39 402.57Direct-support organizations organization. 40 (1)DEPARTMENT OF CHILDREN AND FAMILIES.The Department of 41 Children and Families is authorized to create a direct-support 42 organization, the sole purpose of which is to support the 43 department in carrying out its purposes and responsibilities. 44 (a)The direct-support organization must be: 45 1.A not-for-profit corporation incorporated under chapter 46 617 and approved by the Department of State as a not-for-profit 47 corporation; 48 2.Organized and operated to conduct programs and 49 activities; to raise funds; to request and receive grants, 50 gifts, and bequests of moneys; to acquire, receive, hold, 51 invest, and administer, in its own name, securities, funds, 52 objects of value, or other property, real or personal; and to 53 make expenditures to or for the direct or indirect benefit of 54 the department and the individuals it serves; and 55 3.Determined by the department to be operating in a manner 56 consistent with the goals and purposes of the department, the 57 best interest of the state, and the needs of children and adults 58 served by the department. 59 (b)The direct-support organization shall operate under a 60 written contract with the department. The contract must provide 61 for all of the following: 62 1.Department approval of the articles of incorporation and 63 bylaws of the direct-support organization. 64 2.Submission of an annual budget for department approval. 65 3.Certification by the department that the direct-support 66 organization is complying with the terms of the contract and 67 operating in a manner consistent with the goals and purposes of 68 the department and in the best interest of the state. Such 69 certification must be made annually and reported in the official 70 minutes of a meeting of the direct-support organization. 71 4.The reversion to the state of moneys and property held 72 in trust by the direct-support organization for the benefit of 73 those served by the department if the department ceases to exist 74 or the reversion to the department if the direct-support 75 organization is no longer approved to operate for the 76 department, a county commission, or a circuit board or ceases to 77 exist. 78 5.The fiscal year of the direct-support organization, 79 which must begin July 1 of each year and end June 30 of the 80 following year. 81 6.The disclosure of material provisions of the contract, 82 and the distinction between the department and the direct 83 support organization, to donors of gifts, contributions, or 84 bequests, including such disclosure on all promotional and 85 fundraising publications. 86 (c)The Secretary of Children and Families shall appoint 87 the board of directors of the direct-support organization. The 88 board members shall be appointed according to the organizations 89 bylaws. 90 (d)The department may allow, without charge, appropriate 91 use of fixed property, facilities, and personnel services of the 92 department by the direct-support organization, subject to the 93 requirements of this section. As used in this subsection, the 94 term personnel services includes full-time or part-time 95 personnel, as well as payroll processing services. 96 1.The department may not allow a direct-support 97 organization to use any fixed property, facilities, or personnel 98 services of the department if the direct-support organization 99 does not provide equal membership and employment opportunities 100 to all persons regardless of race, color, religion, sex, age, or 101 national origin. 102 2.The department may prescribe any conditions with which a 103 direct-support organization must comply to use fixed property, 104 facilities, or personnel services of the department and shall 105 adopt rules prescribing those conditions and the procedures by 106 which the direct-support organization is governed. 107 (e)The direct-support organization may collect, expend, 108 and provide funds for: 109 1.Addressing gaps in services for the children and adults 110 served by the department. 111 2.Development, implementation, and operation of targeted 112 prevention efforts. 113 3.Services and activities that support the goals of the 114 department. 115 4.Functions of the direct-support organizations board of 116 directors, as necessary and approved by the department. 117 118 The funds of the direct-support organization may not be used for 119 the purpose of lobbying as defined in s. 11.045. 120 (f)Any moneys may be held in a separate depository account 121 in the name of the direct-support organization and subject to 122 the provisions of the contract with the department. 123 (g)The direct-support organization shall provide for an 124 annual financial audit in accordance with s. 215.981. 125 (h)This subsection is repealed October 1, 2028, unless 126 reviewed and saved from repeal by the Legislature. 127 (2)CHILDREN AND YOUTH CABINET.The Department of Children 128 and Families shall establish a direct-support organization to 129 assist the Children and Youth Cabinet established in s. 402.56 130 in carrying out its purposes and responsibilities, primarily 131 regarding fostering public awareness of children and youth 132 issues and developing new partners in the effort to serve 133 children and youth by raising money; submitting requests for and 134 receiving grants from the Federal Government, the state or its 135 political subdivisions, private foundations, and individuals; 136 and making expenditures to or for the benefit of the cabinet. 137 The sole purpose for the direct-support organization is to 138 support the cabinet. 139 (a)The direct-support organization must be: 140 1.(a)Incorporated under chapter 617 and approved by the 141 Department of State as a Florida corporation not for profit. 142 2.(b)Organized and operated to make expenditures to or for 143 the benefit of the cabinet. 144 3.(c)Approved by the department to be operating for the 145 benefit of and in a manner consistent with the goals of the 146 cabinet and in the best interest of the state. 147 (b)(2)The board of directors of the direct-support 148 organization shall consist of seven members appointed by the 149 Governor. Each member of the board of directors shall be 150 appointed to a 4-year term. However, for the purpose of 151 providing staggered terms, the initial appointments shall be for 152 either 2 years or 4 years, as determined by the Governor. 153 (c)(3)The direct-support organization shall operate under 154 a written contract with the department. 155 (d)(4)All moneys received by the direct-support 156 organization must be deposited into an account of the direct 157 support organization and shall be used in a manner consistent 158 with the goals of the cabinet. 159 (e)(5)This subsection section is repealed October 1, 2024, 160 unless reviewed and saved from repeal by the Legislature. 161 Section 2.Paragraphs (a) and (c) of subsection (2) and 162 subsection (4) of section 1001.453, Florida Statutes, are 163 amended to read: 164 1001.453Direct-support organization; use of property; 165 board of directors; audit. 166 (2)USE OF PROPERTY.A district school board: 167 (a)Is authorized to: 168 1.Permit the use of property, facilities, and personal 169 services of the district by a direct-support organization, 170 subject to the provisions of this section; or 171 2.Contract with a direct-support organization for personal 172 services or operations. However, a retiree of the Florida 173 Retirement System must first satisfy the requirements for 174 termination from employment provided in s. 121.021(39) before 175 providing such services or operations for a Florida Retirement 176 System employer, and is subject to the reemployment limitations 177 provided in s. 121.091(9). 178 (c)May Shall not permit the use of property, facilities, 179 or personal services by of a direct-support organization if such 180 organization does not provide equal employment opportunities to 181 all persons, regardless of race, color, religion, sex, age, or 182 national origin. 183 (4)ANNUAL FINANCIAL AUDIT.Each direct-support 184 organization with more than $250,000 $100,000 in expenditures or 185 expenses shall provide for an annual financial audit of its 186 accounts and records, to be conducted by an independent 187 certified public accountant in accordance with rules adopted by 188 the Auditor General pursuant to s. 11.45(8) and the Commissioner 189 of Education. A district school board may contract with a vendor 190 for an annual financial audit of a direct-support organization. 191 The annual financial audit report shall be submitted within 9 192 months after the fiscal years end to the district school board 193 and the Auditor General. The Commissioner of Education, the 194 Auditor General, and the Office of Program Policy Analysis and 195 Government Accountability have the authority to require and 196 receive from the organization or the district auditor any 197 records relative to the operation of the organization. The 198 identity of donors and all information identifying donors and 199 prospective donors are confidential and exempt from the 200 provisions of s. 119.07(1), and that anonymity shall be 201 maintained in the auditors report. All other records and 202 information shall be considered public records for the purposes 203 of chapter 119. 204 Section 3.This act shall take effect upon becoming a law.