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A bill to be entitled 1
An act relating to community -based child welfare 2
agencies; amending s. 409.987, F.S.; revising 3
requirements for contracts the Department of Children 4
and Families has with community -based care lead 5
agencies; revising requirements for an entity to serve 6
as a lead agency; providing duties for board members 7
of lead agencies; requiring that lead agencies ensure 8
that board members participate in certain annual 9
training; revising the definition of the term 10
"conflict of interest"; defining the term "related 11
party"; requiring the lead agency's board of directors 12
to disclose any known or potential conflicts of 13
interest; prohibiting a lead agency from entering into 14
a contract or being a party to a transaction that 15
creates a conflict of interest; imposing civil 16
penalties on lead agencies for undisclosed conflicts 17
of interest; providing applicability; requiring 18
certain contracts to be reprocured; authorizing the 19
department to prohibit execution of certain contracts; 20
amending s. 409.988, F.S.; revising community -based 21
care lead agency duties; creating s. 409.9913, F.S.; 22
defining the term "core services funds"; providing the 23
purpose of the tiered payment model; providing the 24
tier payments; providing reporting requirements; 25
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creating s. 409.9915, F.S.; providing implementation 26
of the tiered payment model; providing reporting 27
requirements; providing an expiration date; amending 28
s. 409.992, F.S.; revising requirements for lead 29
agency practices in the procurement of commodities and 30
contractual services; requiring the department to 31
impose certain penalties for a lead agency's 32
noncompliance with applicable procurement law; 33
requiring lead agencies to comply with established 34
purchasing practices for the procurement of real 35
property and professional services; requiring the 36
department to retain all rights to and ownership of 37
real property procured upon termination of contracts; 38
requiring certain funds to be returned to the 39
department; providing applicability of certain 40
limitations on the salaries of community -based care 41
lead agency administrative employees; amending s. 42
409.994, F.S.; revising the conditions under which the 43
department may petition a court for the appointment of 44
a receiver for a community -based care lead agency; 45
amending s. 409.996, F.S.; revising requirements for 46
contracts between the department and lead agencies; 47
revising the actions the department may take under 48
certain circumstances; making a technical change; 49
providing duties of the department; providing 50
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reporting requirements; providing an effective date. 51
52
Be It Enacted by the Legislature of the State of Florida: 53
54
Section 1. Subsections (3) and (4) and paragraphs (a) and 55
(b) of subsection (7) of section 409.987, Florida Statutes, are 56
amended, and paragraph (g) is added to subsection (7) of that 57
section, to read: 58
409.987 Lead agency procurement; boards; conflicts of 59
interest.— 60
(3) Notwithstanding s. 287.057, the department shall use 61
5-year contracts with lead agencies. The 5-year contract must be 62
reprocured at the end of each 5 -year contract term. The contrac t 63
may be extended at the discretion of the department for up to 1 64
year, based on department needs. 65
(4) In order to serve as a lead agency, an entity must: 66
(a) Be organized as a Florida corporation or a 67
governmental entity. 68
(b) Be governed by a board of directors or a board 69
committee composed of board members. Board members shall provide 70
oversight and ensure accountability and transparency for the 71
system of care. The board of directors shall provide fiduciary 72
oversight to prevent conflicts of interest, promote 73
accountability and transparency, and protect state and federal 74
funding from misuse. The board of directors shall act in 75
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accordance with s. 617.0830. The membership of the board of 76
directors or board committee must be described in the bylaws or 77
articles of incorporation of each lead agency, which must 78
provide that at least 75 percent of the membership of the board 79
of directors or board committee must be composed consist of 80
persons residing in this state, and at least 51 percent of the 81
state residents on the board of directors must reside within the 82
service area of the lead agency. The lead agency shall ensure 83
that board members participate in annual training related to 84
their responsibilities. However, for procurements of lead agency 85
contracts initiated on or after July 1, 2014: 86
1. At least 75 percent of the membership of the board of 87
directors must be composed consist of persons residing in this 88
state, and at least 51 percent of the membership of the board of 89
directors must be composed consist of persons residing within 90
the service area of the lead agency. If a board committee 91
governs the lead agency, 100 percent of its membership must be 92
composed consist of persons residing within the service area of 93
the lead agency. 94
2. The powers of the board of directors or board committee 95
include, but are not limited to, approving the lead agency's 96
budget and setting the lead agency's operational policy and 97
procedures. A board of directors must additionally have the 98
power to hire the lead agency's executive dire ctor, unless a 99
board committee governs the lead agency, in which case the board 100
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committee must have the power to confirm the selection of the 101
lead agency's executive director. 102
(c) Demonstrate financial responsibility through an 103
organized plan for regular fiscal audits and the posting of a 104
performance bond. 105
(7)(a) As used in this subsection, the term: 106
1. "Activity" includes, but is not limited to, a contract 107
for goods and services, a contract for the purchase of any real 108
or tangible property, or an agr eement to engage with a lead 109
agency for the benefit of a third party in exchange for an 110
interest in real or tangible property, a monetary benefit, or an 111
in-kind contribution. 112
2. "Conflict of interest" means when a board member , 113
director, or an officer, or a relative of a board member , 114
director, or an officer, of a lead agency does any of the 115
following: 116
a. Enters into a contract or other transaction for goods 117
or services with the lead agency. 118
b. Holds a direct or indirect interest in a corporation, 119
limited liability corporation, partnership, limited liability 120
partnership, or other business entity that conducts business 121
with the lead agency or proposes to enter into a contract or 122
other transaction with the lead agency. For purposes of this 123
paragraph, the term "indirect interest" has the same meaning as 124
in s. 112.312. 125
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c. Knowingly obtains a direct or indirect personal, 126
financial, professional, or other benefit as a result of the 127
relationship of such board member , director, or officer, or 128
relative of the board member, director, or officer, with the 129
lead agency. For purposes of this paragraph, the term "benefit" 130
does not include per diem and travel expenses paid or reimbursed 131
to board members or officers of the lead agency in connection 132
with their service on the board. 133
3. "Related party" means any entity of which a director or 134
an officer of the entity is also directly or indirectly related 135
to, or has a direct or indirect financial or other material 136
interest in, the lead agency. The term also includes an y 137
subsidiary, parent entity, associate firm, or joint venture, or 138
any entity that is controlled, influenced, or managed by another 139
entity or an individual related to such entity, including an 140
individual who is, or was within the immediately preceding 3 141
years, an executive officer or a board member of the entity. 142
4.3. "Relative" means a relative within the third degree 143
of consanguinity by blood or marriage. 144
(b)1. For any activity that is presented to the board of a 145
lead agency for its initial considerati on and approval after 146
July 1, 2021, or any activity that involves a contract that is 147
being considered for renewal on or after July 1, 2021, but 148
before January 1, 2022 , a board member, a director, or an 149
officer of a lead agency shall disclose to the board a ny 150
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activity that may reasonably be construed to be a conflict of 151
interest before such activity is initially considered and 152
approved or a contract is renewed by the board. A rebuttable 153
presumption of a conflict of interest exists if the activity was 154
acted on by the board without prior notice as required under 155
paragraph (c). The board shall disclose any known actual or 156
potential conflicts to the department. 157
2. A lead agency may not enter into a contract or be a 158
party to any transaction that creates a confli ct of interest, 159
including with related parties for the provision of management 160
or administrative services or oversight For contracts with a 161
lead agency which are in existence on July 1, 2021, and are not 162
subject to renewal before January 1, 2022, a board m ember or an 163
officer of the lead agency shall disclose to the board any 164
activity that may reasonably be construed to be a conflict of 165
interest under this section by December 31, 2021 . 166
(g)1. Civil penalties in the amount of $5,000 per 167
occurrence shall be i mposed for each known and potential 168
conflict of interest, as described in paragraph (b), which is 169
not disclosed to the department. Civil penalties shall be paid 170
by the board and not from any state or federal funds. 171
2. If a contract is executed for which a conflict of 172
interest was not disclosed to the department before execution of 173
the contract, the following penalties apply: 174
a. A civil penalty in the amount of $50,000 for a first 175
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offense. 176
b. A civil penalty in the amount of $100,000 for a second 177
or subsequent offense. 178
3. The civil penalties for failure to disclose a conflict 179
of interest under subparagraphs 1. and 2. apply to any contract 180
entered into, regardless of the method of procurement, 181
including, but not limited to, formal procurement, single -source 182
contracts, and contracts that do not meet the minimum threshold 183
for formal procurement. 184
4. A contract procured for which a conflict of interest 185
was not disclosed to the department before execution of the 186
contract shall be reprocured. 187
5. The department may, at its sole discretion, prohibit 188
execution of a contract for which a conflict of interest exists, 189
or will exist after execution. 190
Section 2. Paragraphs (c), (j), and (k) of subsection (1) 191
of section 409.988, Florida Statutes, are amended to r ead: 192
409.988 Community-based care lead agency duties; general 193
provisions.— 194
(1) DUTIES.—A lead agency: 195
(c) Shall follow the financial guidelines developed by the 196
department and shall comply with regular, independent auditing 197
of its financial activitie s, including any requests for records 198
associated with such financial audits within the timeframe 199
established by the department or its contracted vendors provide 200
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for a regular independent auditing of its financial activities . 201
The results of the financial au dit must Such financial 202
information shall be provided to the community alliance 203
established under s. 20.19(5). 204
(j) May subcontract for the provision of services , 205
excluding management and oversight functions, required by the 206
contract with the lead agency and the department; however, the 207
subcontracts must specify how the provider will contribute to 208
the lead agency meeting the performance standards established 209
pursuant to the child welfare results -oriented accountability 210
system required by s. 409.997. The le ad agency shall directly 211
provide no more than 35 percent of all child welfare services 212
provided unless it can demonstrate a need , within the lead 213
agency's geographic service area where there is a lack of 214
qualified providers available to perform the necessary services. 215
The approval period to exceed the threshold shall be limited to 216
2 years. If a lead agency wishes to continue its exemption from 217
the services threshold, it must submit a new request with 218
updated evidence to the department and the communi ty alliance 219
showing its efforts to recruit providers and that conditions 220
have not changed, to exceed this threshold . The local community 221
alliance in the geographic service area in which the lead agency 222
is seeking to exceed the threshold shall review the le ad 223
agency's justification for need and recommend to the department 224
whether the department should approve or deny the lead agency's 225
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request for an exemption from the services threshold. If there 226
is not a community alliance operating in the geographic servic e 227
area in which the lead agency is seeking to exceed the 228
threshold, such review and approval or denial of the lead 229
agency's request for an exemption from the services threshold 230
must be made by the department and the department must specify 231
the duration of the exemption recommendation shall be made by 232
representatives of local stakeholders, including at least one 233
representative from each of the following: 234
1. The department. 235
2. The county government. 236
3. The school district. 237
4. The county United Way. 238
5. The county sheriff's office. 239
6. The circuit court corresponding to the county. 240
7. The county children's board, if one exists. 241
(k) Shall publish on its website by the 15th day of each 242
month at a minimum the data specified in subparagraphs 1.-9. 1.-243
5., calculated using a standard methodology determined by the 244
department, for the preceding calendar month regarding its case 245
management services. The following information must shall be 246
reported by each individual subcontracted case management 247
provider, by the lead agency, if the lead agency provides case 248
management services, and in total for all case management 249
services subcontracted or directly provided by the lead agency: 250
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1. The average caseload of case managers, including only 251
filled positions; 252
2. The total number and percentage of case managers who 253
have 25 or more cases on their caseloads; 254
3. The turnover rate for case managers and case management 255
supervisors for the previous 12 months; 256
4. The percentage of required home visits completed; and 257
5. Performance on outcome measures required pursuant to s. 258
409.997 for the previous 12 months ;. 259
6. The number of unlicensed placements for the previous 260
month; 261
7. The percentages and trends for foster parent and group 262
home recruitment and licensure for the previous month; 263
8. The percentage of families being served through family 264
support, in-home, and out-of-home services for the previous 265
month; and 266
9. The percentage of cases that converted from nonjudicial 267
to judicial for the previous month. 268
Section 3. Section 409.9913, Florida Statutes, is created 269
to read: 270
409.9913 Actuarially -based tiered model for allocation of 271
funds for community-based care lead agencies. — 272
(1) As used in this section, the term "core services 273
funds" means all funds allocat ed to lead agencies operating 274
under contract with the department pursuant to s. 409.987. The 275
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term does not include any of the following: 276
(a) Funds appropriated for independent living services. 277
(b) Funds appropriated for maintenance adoption subsidies. 278
(c) Funds allocated by the department for child protective 279
investigation service training. 280
(d) Nonrecurring funds. 281
(e) Designated mental health wrap -around service funds. 282
(f) Funds for special projects for a designated lead 283
agency. 284
(g) Funds appropriated for the Guardianship Assistance 285
Program established under s. 39.6225. 286
(2) The purpose of the tiered model is to achieve a stable 287
payment model that adjusts to workload and incentivizes 288
prevention, family preservation, and permanency. The tiers a re 289
as follows: 290
(a) Tier 1 provides operational base and fixed costs, 291
which do not vary based on the number of children and families 292
served. Tier 1 payments may vary by geographic catchment area 293
and cost-of-living differences. The department shall establi sh 294
and annually update Tier 1 payment rates to maintain cost 295
expectations that are aligned with the population served, 296
services provided, and environment. Tier 1 expenses may include: 297
1. Administrative expenditures. 298
2. Lease payment. 299
3. Asset depreciation. 300
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4. Utilities. 301
5. Select components of case management, including 302
administrative elements. 303
6. Mandated activities such as training, quality, and 304
contract management. 305
7. Activities performed for children and families which 306
are nonjudicial and not candidates for Title IV -E funding, 307
including true prevention and community -focused activities. 308
(b) Tier 2 is a per -child, per-month payment to provide 309
funding for lead agencies' expenses that vary based on the 310
number of children served for a particul ar month. The payment 311
rate must blend out-of-home rates and in-home rates specific to 312
each lead agency to create a rate that provides a financial 313
incentive to lead agencies to provide services in the least 314
restrictive safe placement. The department shall e stablish and 315
annually update Tier 2 payment rates to maintain cost 316
expectations that are aligned with the population served, 317
services provided, and environment. Tier 2 rates must be set 318
annually. 319
(c) Tier 3 provides financial incentives that the 320
department shall establish to reward lead agencies that achieve 321
performance measures aligned with the department's goals of 322
prevention, family preservation, and permanency. 323
(3) By December 1 of each year, beginning in 2027, the 324
department shall submit a report t o the Governor, the President 325
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of the Senate, and the Speaker of the House of Representatives 326
which includes each lead agency's actual performance in 327
attaining the previous fiscal year's targets, recommendations 328
for adjustments to lead agency funding, and a djustments to the 329
tiered payment model, if necessary. 330
Section 4. Section 409.9915, Florida Statutes, is created 331
to read: 332
409.9915 Implementation of actuarially -based tiered model 333
for allocation of funds for community -based care lead agencies. — 334
(1) The model established under s. 409.9913 shall be 335
implemented as follows: 336
(a) During the 2024 -2025 fiscal year, the department 337
shall: 338
1. Establish the requisite systems and processes to 339
collect data necessary for system implementation. 340
2. Refine the model in collaboration with the lead 341
agencies. 342
(b) Funding for lead agencies shall be determined as 343
follows: 344
1. During the 2024-2025 fiscal year, funding for a lead 345
agency must be as provided under s. 409.991, unless otherwise 346
provided in the General A ppropriations Act. 347
2. During the 2025-2026 fiscal year, funding for a lead 348
agency must be the sum of 67 percent of the funding determined 349
under s. 409.991, unless otherwise provided in the General 350
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Appropriations Act, and 33 percent of the funding determi ned 351
under s. 409.9913. 352
3. During the 2026-2027 fiscal year, funding for a lead 353
agency must be the sum of 33 percent of the funding determined 354
under s. 409.991, unless otherwise provided in the General 355
Appropriations Act, and 67 percent of the funding det ermined 356
under s. 409.9913. 357
4. During the 2027-2028 fiscal year, funding for a lead 358
agency must be as provided under s. 409.9913. 359
(2) The department shall submit quarterly reports to the 360
Governor, the President of the Senate, and the Speaker of the 361
House of Representatives, with the first report due October 31, 362
2024, and subsequent reports submitted every 3 months 363
thereafter. Each report must contain, at a minimum, information 364
regarding the department's actions, determinations, proposals, 365
and results under this section. 366
(a) The first quarterly report for the 2024 -2025 fiscal 367
year must include a plan for implementation under this section, 368
which shall be updated in subsequent reports. 369
(b) The second quarterly report for the 2024 -2025 fiscal 370
year must additionally provide details regarding: 371
1. Proposed payments under Tier 3, including, but not 372
limited to, the proposed goals and justifications for any 373
incentive payments in the next fiscal year, measures and 374
targets, and correlating payment amounts, which shall be updated 375
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in subsequent reports. The report must describe how the Tier 3 376
goals and payments relate to the results -oriented accountability 377
program under s. 409.997. 378
2. Proposed funding for the 2025 -2026 fiscal year, as 379
determined under s. 409.993, by lead agency. 380
(3) This section shall expire on June 30, 2029. 381
Section 5. Subsections (1) and (3) of section 409.992, 382
Florida Statutes, are amended to read: 383
409.992 Lead agency expenditures. — 384
(1) The procurement of commodities or contractual se rvices 385
by lead agencies is shall be governed by the financial 386
guidelines developed by the department and must comply with 387
applicable state and federal law and follow good business 388
practices. Pursuant to s. 11.45, the Auditor General may provide 389
technical advice in the development of the financial guidelines. 390
(a)1. Lead agencies shall competitively procure all 391
contracts, consistent with the federal simplified acquisition 392
threshold. 393
2. Lead agencies shall competitively procure all contracts 394
in excess of $35,000 with related parties. 395
3. Financial penalties or sanctions, as established by the 396
department and incorporated into the contract, shall be imposed 397
by the department for noncompliance with applicable local, 398
state, or federal law for the procurement o f commodities or 399
contractual services. 400
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(b) Notwithstanding s. 402.73, for procurement of real 401
property or professional services, lead agencies shall comply 402
with established purchasing practices, including the provisions 403
of s. 287.055, as required, for pr ofessional services, including 404
engineering or construction design. Upon termination of the 405
contract, the department shall immediately retain all rights to 406
and ownership of real property procured. Any funds from the 407
sale, transfer, or other dispossession of such property during 408
the contract term shall be returned to the department. 409
(3) Notwithstanding any other provision of law, a 410
community-based care lead agency administrative employee may not 411
receive a salary, whether base pay or base pay combined with a ny 412
bonus or incentive payments from the lead agency or any related 413
party, in excess of 150 percent of the annual salary paid to the 414
secretary of the Department of Children and Families from state -415
appropriated funds, including state -appropriated federal fun ds. 416
This limitation applies regardless of the number of contracts a 417
community-based care lead agency may execute with the 418
department. This subsection does not prohibit any party from 419
providing cash that is not from appropriated state funds to a 420
community-based care lead agency administrative employee. 421
Section 6. Paragraphs (c) and (d) of subsection (1) of 422
section 409.994, Florida Statutes, are amended to read: 423
409.994 Community-based care lead agencies; receivership. — 424
(1) The Department of Children and Families may petition a 425
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court of competent jurisdiction for the appointment of a 426
receiver for a community -based care lead agency established 427
pursuant to s. 409.987 if any of the following conditions exist: 428
(c) The department determines that condition s exist in the 429
lead agency which present a an imminent danger to the health, 430
safety, or welfare of the dependent children under that agency's 431
care or supervision. Whenever possible, the department shall 432
make a reasonable effort to facilitate the continued operation 433
of the program. 434
(d) The lead agency cannot meet , or is unlikely to meet, 435
its current financial obligations to its employees, contractors, 436
or foster parents. Issuance of bad checks or the existence of 437
delinquent obligations for payment of salaries, utilities, or 438
invoices for essential services or commodities constitutes shall 439
constitute prima facie evidence that the lead agency lacks the 440
financial ability to meet its financial obligations. 441
Section 7. Paragraph (d) of subsection (1) of section 442
409.996, Florida Statutes, is amended to read: 443
409.996 Duties of the Department o f Children and 444
Families.—The department shall contract for the delivery, 445
administration, or management of care for children in the child 446
protection and child welfare system. In doing so, the department 447
retains responsibility for the quality of contracted s ervices 448
and programs and shall ensure that, at a minimum, services are 449
delivered in accordance with applicable federal and state 450
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statutes and regulations and the performance standards and 451
metrics specified in the strategic plan created under s. 452
20.19(1). 453
(1) The department shall enter into contracts with lead 454
agencies for the performance of the duties by the lead agencies 455
established in s. 409.988. At a minimum, the contracts must do 456
all of the following: 457
(d) Provide for contractual actions tiered interventions 458
and graduated penalties for failure to comply with contract 459
terms or in the event of performance deficiencies , as determined 460
appropriate by the department . 461
1. Such contractual actions must interventions and 462
penalties shall include, but are not l imited to: 463
a.1. Enhanced monitoring and reporting. 464
b.2. Corrective action plans. 465
c.3. Requirements to accept technical assistance and 466
consultation from the department under subsection (6). 467
d.4. Financial penalties, which shall require a lead 468
agency to direct reallocate funds from administrative costs to 469
the department. The department shall use the funds collected to 470
support service delivery of quality improvement activities for 471
children in the lead agency's care to direct care for children . 472
These penalties may be imposed for failure to provide timely, 473
sufficient resolution of deficiencies resulting in a corrective 474
action plan or other performance improvement plan issued by the 475
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department. Financial penalties may include liquidated damages. 476
e.5. Early termination of contracts, as provided in s. 477
402.7305(3)(f) s. 402.1705(3)(f). 478
2. The department shall include in each lead agency 479
contract executed a provision that requires payment to the 480
department of sanctions or disincentives for failure t o comply 481
with contractual obligations. The department shall establish a 482
schedule of daily monetary sanctions or disincentives for lead 483
agencies, which schedule shall be incorporated by reference into 484
the contract. The department is solely responsible for 485
determining the monetary value of liquidated damages. 486
Section 8. The Department of Children and Families shall 487
submit a report to the Governor, the President of the Senate, 488
and the Speaker of the House of Representatives on rules and 489
policies adopted and other actions taken to implement the 490
requirements of this act. The first such report must be due 491
September 30, 2024, and the second such report must be due 492
February 1, 2025. 493
Section 9. This act shall take effect July 1, 2024. 494