ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 1 of 44 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 An act relating to transparency in health and human 2 services; amending s. 95.11, F.S.; establishing a 3 -3 year statute of limitations for an action to collect 4 medical debt for services rendered by a health care 5 provider or facility; creating s. 222.26, F.S.; 6 providing additional personal property exemptions from 7 legal process for medical debts resulting from 8 services provided in certain licensed facilities; 9 amending s. 395.301, F.S.; requiring a licensed 10 facility to post on its website a consumer -friendly 11 list of standard charges for a minimum number of 12 shoppable health care services or a price estimator 13 tool meeting certain requirements; providing 14 definitions; requiring a licensed facility to provide 15 an estimate to a patient or prospective patient and 16 the patient's health insurer within specified 17 timeframes; requiring a licensed facility to establish 18 an internal grievance process for patients to dispute 19 charges; requiring a facility to make available 20 information necessary for initiating a grievance; 21 requiring a facility to respond to a patient grievance 22 within a specified timeframe; requiring a licensed 23 facility to disclose specified information relating to 24 cost-sharing obligations to certain persons; providing 25 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 2 of 44 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 penalty; creating s. 395.3011, F.S.; defining the 26 term "extraordinary collection action"; prohibiting 27 certain collection activities by a licensed facility; 28 amending s. 624.27, F.S.; revising the definition of 29 the term "health care provider"; creating s. 627.446, 30 F.S.; defining the term "health insurer"; requiring 31 each health insurer to provide insureds with an 32 advanced explanation of benefits within specified 33 timeframes; providing requirements for the advan ced 34 explanation of benefits; amending ss. 627.6387 and 35 627.6648, F.S.; revising the definition of the term 36 "health insurer"; providing that a shared savings 37 incentive offered by a health insurer constitutes a 38 medical expense for rate development and rate f iling 39 purposes for individual and group health insurance 40 policies, respectively; amending s. 641.31076, F.S.; 41 revising the definition of the term "health 42 maintenance organization"; providing that a shared 43 savings incentive offered by a health maintenance 44 organization constitutes a medical expense for rate 45 development and rate filing purposes for individual or 46 group health maintenance contracts; amending ss. 47 475.01, 475.611, 517.191, 768.28, and 787.061, F.S.; 48 conforming provisions to changes made by the act ; 49 providing applicability; requiring the Agency for 50 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 3 of 44 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 Health Care Administration and the Office of Insurance 51 Regulation to notify the Division of Law Revision upon 52 the promulgation of certain federal rules; amending s. 53 409.016, F.S.; defining the term "manag ement 54 functions"; amending s. 409.987, F.S.; revising 55 requirements for contracts the Department of Children 56 and Families has with community -based care lead 57 agencies; providing duties for board members of lead 58 agencies; requiring lead agencies to ensure tha t board 59 members participate in certain annual training; 60 requiring the posting of a fidelity bond; revising the 61 definition of the term "conflict of interest"; 62 defining the term "related party"; requiring the lead 63 agency's board of directors to disclose to t he 64 department any known actual or potential conflicts of 65 interest; prohibiting a lead agency from entering into 66 a contract or being a party to any transaction with 67 related parties if a conflict of interest is not 68 properly disclosed; prohibiting a lead agen cy from 69 entering into a contract or being a party to any 70 transaction with related parties for officer -level or 71 director-level staffing to perform management 72 functions; requiring that the contract with the 73 department and the lead agency specify the 74 administrative functions that the lead agency may 75 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 4 of 44 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 subcontract; authorizing a lead agency to enter into 76 certain contracts or be a party to certain 77 transactions, provided that a certain requirement for 78 fees, rates, and prices paid is met and any conflict 79 of interest is properly disclosed; requiring that 80 department contracts impose contractual penalties on 81 lead agencies for undisclosed conflicts of interest; 82 providing applicability; requiring that certain 83 contracts be reprocured; authorizing the department to 84 recoup lead agency expenses for the execution of 85 certain contracts; amending s. 409.988, F.S.; revising 86 lead agency duties; specifying requirements for and 87 limitations on an exemption for lead agencies from 88 certain contract requirements; providing for renewal 89 of the exemption; authorizing the department to deny 90 an exemption renewal request under certain 91 circumstances; requiring such lead agencies to undergo 92 an operational audit by the Auditor General; 93 specifying requirements for the audit; requiring the 94 Auditor General to conduct such audits upon 95 notification by the department; repealing s. 409.991, 96 F.S., relating to allocation of funds for community -97 based care lead agencies; creating s. 409.9913, F.S.; 98 defining the terms "core services funding" and 99 "operational and fixed costs"; requiring the 100 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 5 of 44 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 department, in collaboration with the lead agencies 101 and providers of child welfare services, to develop a 102 specific funding methodology for the allocation of 103 core services which must meet certain criteria; 104 requiring the lead age ncies and providers of child 105 welfare services to submit to the department certain 106 financial information; requiring the department to 107 submit to the Governor and the Legislature certain 108 reports by specified dates; providing construction; 109 authorizing the depa rtment to include certain rates 110 and total allocations in certain reports; requiring 111 the Legislature to allocate funding to the lead 112 agencies with due consideration of the specified 113 funding methodology, beginning with a specified fiscal 114 year; prohibiting th e department from changing a lead 115 agency's allocation of funds provided in the General 116 Appropriations Act without legislative approval; 117 authorizing the department to approve certain risk 118 pool funding for a lead agency; requiring the 119 department to submit to the Governor and the 120 Legislature certain monthly reports for a specified 121 period of time; amending s. 409.992, F.S.; revising 122 requirements for lead agency practices in the 123 procurement of commodities and contractual services; 124 requiring the department to imp ose certain penalties 125 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 6 of 44 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 for a lead agency's noncompliance with applicable 126 procurement law; requiring that the contract between 127 the department and the lead agency specify the rights 128 and obligations with regard to real property held by 129 the lead agency during t he term of the contract; 130 providing applicability of certain limitations on the 131 salaries of community -based care lead agency 132 administrative employees; amending s. 409.994, F.S.; 133 revising the conditions under which the department may 134 petition a court for the appointment of a receiver for 135 a community-based care lead agency; amending s. 136 409.996, F.S.; revising requirements for contracts 137 between the department and lead agencies; revising the 138 actions the department may take under certain 139 circumstances; making a t echnical change; providing 140 duties of the department; requiring the department, by 141 specified dates, to submit certain reports to the 142 Governor and the Legislature; establishing the Future 143 of Child Protection Contracting and Funding Workgroup 144 within the department; requiring the department to 145 convene the workgroup and submit a report to the 146 Governor and the Legislature by a specified date; 147 providing for membership of the workgroup; specifying 148 requirements for the report; terminating the workgroup 149 upon the submission of the report; providing an 150 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 7 of 44 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 effective date. 151 152 Be It Enacted by the Legislature of the State of Florida: 153 154 Section 1. Present subsections (4) through (12) of section 155 95.11, Florida Statutes, are redesignated as subsections (5) 156 through (13), respectively, a new subsection (4) is added to 157 that section, and paragraph (b) of subsection (2), paragraph (n) 158 of subsection (3), paragraphs (f) and (g) of present subsection 159 (5), and present subsection (10) are amended, to read: 160 95.11 Limitations other th an for the recovery of real 161 property.—Actions other than for recovery of real property shall 162 be commenced as follows: 163 (2) WITHIN FIVE YEARS. — 164 (b) A legal or equitable action on a contract, obligation, 165 or liability founded on a written instrument, excep t for an 166 action to enforce a claim against a payment bond, which shall be 167 governed by the applicable provisions of paragraph (6)(e) 168 paragraph (5)(e), s. 255.05(10), s. 337.18(1), or s. 169 713.23(1)(e), and except for an action for a deficiency judgment 170 governed by paragraph (6)(h) paragraph (5)(h). 171 (3) WITHIN FOUR YEARS. — 172 (n) An action for assault, battery, false arrest, 173 malicious prosecution, malicious interference, false 174 imprisonment, or any other intentional tort, except as provided 175 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 8 of 44 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 subsections (5), (6), and (8) subsections (4), (5), and (7) . 176 (4) WITHIN THREE YEARS. —An action to collect medical debt 177 for services rendered by a facility licensed under chapter 395, 178 provided that the period of limitations shall run from the date 179 on which the facility re fers the medical debt to a third party 180 for collection. 181 (6)(5) WITHIN ONE YEAR.— 182 (f) Except for actions described in subsection (9) (8), a 183 petition for extraordinary writ, other than a petition 184 challenging a criminal conviction, filed by or on behalf of a 185 prisoner as defined in s. 57.085. 186 (g) Except for actions described in subsection (9) (8), an 187 action brought by or on behalf of a prisoner, as defined in s. 188 57.085, relating to the conditions of the prisoner's 189 confinement. 190 (11)(10) FOR INTENTIONAL TORTS RESULTING IN DEATH FROM 191 ACTS DESCRIBED IN S. 782.04 OR S. 782.07. —Notwithstanding 192 paragraph (5)(e) paragraph (4)(e), an action for wrongful death 193 seeking damages authorized under s. 768.21 brought against a 194 natural person for an intentional tort result ing in death from 195 acts described in s. 782.04 or s. 782.07 may be commenced at any 196 time. This subsection shall not be construed to require an 197 arrest, the filing of formal criminal charges, or a conviction 198 for a violation of s. 782.04 or s. 782.07 as a cond ition for 199 filing a civil action. 200 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 9 of 44 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 2. Section 222.26, Florida Statutes, is created to 201 read: 202 222.26 Additional exemptions from legal process concerning 203 medical debt.—If a debt is owed for medical services provided by 204 a facility licensed under chapter 395, the following property is 205 exempt from attachment, garnishment, or other legal process in 206 an action on such debt: 207 (1) A debtor's interest, not to exceed $10,000 in value, 208 in a single motor vehicle as defined in s. 32 0.01(1). 209 (2) A debtor's interest in personal property, not to 210 exceed $10,000 in value, if the debtor does not claim or receive 211 the benefits of a homestead exemption under s. 4, Art. X of the 212 State Constitution. 213 Section 3. Present paragraphs (b), (c), and (d) of 214 subsection (1) of section 395.301, Florida Statutes, are 215 redesignated as paragraphs (c), (d), and (e) of that subsection, 216 respectively, present subsection (6) is redesignated as 217 subsection (8) of that section, a new paragraph (b) is added to 218 subsection (1), a new subsection (6) and subsection (7) are 219 added to that section, and present paragraph (b) of subsection 220 (1) is amended, to read: 221 395.301 Price transparency; itemized patient statement or 222 bill; patient admission status notification. — 223 (1) A facility licensed under this chapter shall provide 224 timely and accurate financial information and quality of service 225 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 10 of 44 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 measures to patients and prospective patients of the facility, 226 or to patients' survivors or legal guardians, as appropriate. 227 Such information shall be provided in accordance with this 228 section and rules adopted by the agency pursuant to this chapter 229 and s. 408.05. Licensed facilities operating exclusively as 230 state facilities are exempt from this subsection. 231 (b) Each licensed facility shal l post on its website a 232 consumer-friendly list of standard charges for at least 300 233 shoppable health care services, or an Internet -based price 234 estimator tool meeting federal standards. If a facility provides 235 fewer than 300 distinct shoppable health care se rvices, it shall 236 make available on its website the standard charges for each 237 service it provides. As used in this paragraph, the term: 238 1. "Shoppable health care service" means a service that 239 can be scheduled by a healthcare consumer in advance. The term 240 includes, but is not limited to, the services described in s. 241 627.6387(2)(e) and any services defined in regulations or 242 guidance issued by the United States Department of Health and 243 Human Services. 244 2. "Standard charge" has the same meaning as that term i s 245 defined in regulations or guidance issued by the United States 246 Department of Health and Human Services for purposes of hospital 247 price transparency. 248 (c)(b)1. Upon request, and Before providing any 249 nonemergency medical services, each licensed facility sh all 250 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 11 of 44 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 provide in writing or by electronic means a good faith estimate 251 of reasonably anticipated charges by the facility for the 252 treatment of a the patient's or prospective patient's specific 253 condition. The facility must provide the estimate to the patient 254 or prospective patient within 7 business days after the receipt 255 of the request and is not required to adjust the estimate for 256 any potential insurance coverage. The facility must provide the 257 estimate to the patient's health insurer, as defined in s. 258 627.446(1), and the patient at least 3 business days before the 259 date such service is to be provided, but no later than 1 260 business day after the date such service is scheduled or, in the 261 case of a service scheduled at least 10 business days in 262 advance, no later than 3 business days after the date the 263 service is scheduled. The facility must provide the estimate to 264 the patient no later than 3 business days after the date the 265 patient requests an estimate. The estimate may be based on the 266 descriptive service bundles deve loped by the agency under s. 267 408.05(3)(c) unless the patient or prospective patient requests 268 a more personalized and specific estimate that accounts for the 269 specific condition and characteristics of the patient or 270 prospective patient. The facility shall in form the patient or 271 prospective patient that he or she may contact his or her health 272 insurer or health maintenance organization for additional 273 information concerning cost -sharing responsibilities. 274 2. In the estimate, the facility shall provide to the 275 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 12 of 44 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 patient or prospective patient information on the facility's 276 financial assistance policy, including the application process, 277 payment plans, and discounts and the facility's charity care 278 policy and collection procedures. 279 3. The estimate shall clearly identif y any facility fees 280 and, if applicable, include a statement notifying the patient or 281 prospective patient that a facility fee is included in the 282 estimate, the purpose of the fee, and that the patient may pay 283 less for the procedure or service at another faci lity or in 284 another health care setting. 285 4. Upon request, The facility shall notify the patient or 286 prospective patient of any revision to the estimate. 287 5. In the estimate, the facility must notify the patient 288 or prospective patient that services may be provided in the 289 health care facility by the facility as well as by other health 290 care providers that may separately bill the patient, if 291 applicable. 292 6. The facility shall take action to educate the public 293 that such estimates are available upon request. 294 7. Failure to timely provide the estimate pursuant to this 295 paragraph shall result in a daily fine of $1,000 until the 296 estimate is provided to the patient or prospective patient and 297 the health insurer. The total fine per patient estimate may not 298 exceed $10,000. 299 300 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 13 of 44 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 The provision of an estimate does not preclude the actual 301 charges from exceeding the estimate. 302 (6) Each facility shall establish an internal process for 303 reviewing and responding to grievances from patients. Such 304 process must allow a patient to dis pute charges that appear on 305 the patient's itemized statement or bill. The facility shall 306 prominently post on its website and indicate in bold print on 307 each itemized statement or bill the instructions for initiating 308 a grievance and the direct contact inform ation required to 309 initiate the grievance process. The facility must provide an 310 initial response to a patient grievance within 7 business days 311 after the patient formally files a grievance disputing all or a 312 portion of an itemized statement or bill. 313 (7) Each licensed facility shall disclose to a patient, a 314 prospective patient, or a patient's legal guardian whether a 315 cost-sharing obligation for a particular covered health care 316 service or item exceeds the charge that applies to an individual 317 who pays cash or the cash equivalent for the same health care 318 service or item in the absence of health insurance coverage. 319 Failure to provide a disclosure in compliance with this 320 subsection may result in a fine not to exceed $500 per incident. 321 Section 4. Section 395.30 11, Florida Statutes, is created 322 to read: 323 395.3011 Billing and collection activities. — 324 (1) As used in this section, the term "extraordinary 325 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 14 of 44 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 collection action" means any of the following actions taken by a 326 licensed facility against an individual in rela tion to obtaining 327 payment of a bill for care covered under the facility's 328 financial assistance policy: 329 (a) Selling the individual's debt to another party. 330 (b) Reporting adverse information about the individual to 331 consumer credit reporting agencies or c redit bureaus. 332 (c) Deferring, denying, or requiring a payment before 333 providing medically necessary care because of the individual's 334 nonpayment of one or more bills for previously provided care 335 covered under the facility's financial assistance policy. 336 (d) Actions that require a legal or judicial process, 337 including, but not limited to: 338 1. Placing a lien on the individual's property; 339 2. Foreclosing on the individual's real property; 340 3. Attaching or seizing the individual's bank account or 341 any other personal property; 342 4. Commencing a civil action against the individual; 343 5. Causing the individual's arrest; or 344 6. Garnishing the individual's wages. 345 (2) A facility may not engage in an extraordinary 346 collection action against an individual to obtain payment for 347 services: 348 (a) Before the facility has made reasonable efforts to 349 determine whether the individual is eligible for assistance 350 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 15 of 44 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 under its financial assistance policy for the care provided and, 351 if eligible, before a decision is made by the facil ity on the 352 patient's application for such financial assistance. 353 (b) Before the facility has provided the individual with 354 an itemized statement or bill. 355 (c) During an ongoing grievance process as described in s. 356 395.301(6) or an ongoing appeal of a clai m adjudication. 357 (d) Before billing any applicable insurer and allowing the 358 insurer to adjudicate a claim. 359 (e) For 30 days after notifying the patient in writing, by 360 certified mail, or by other traceable delivery method, that a 361 collection action will co mmence absent additional action by the 362 patient. 363 (f) While the individual: 364 1. Negotiates in good faith the final amount of a bill for 365 services rendered; or 366 2. Complies with all terms of a payment plan with the 367 facility. 368 Section 5. Paragraph (b) of s ubsection (1) of section 369 624.27, Florida Statutes, is amended to read: 370 624.27 Direct health care agreements; exemption from 371 code.— 372 (1) As used in this section, the term: 373 (b) "Health care provider" means a health care provider 374 licensed under chapter 4 58, chapter 459, chapter 460, chapter 375 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 16 of 44 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 461, chapter 464, or chapter 466, chapter 490, or chapter 491, 376 or a health care group practice, who provides health care 377 services to patients. 378 Section 6. Section 627.446, Florida Statutes, is created 379 to read: 380 627.446 Advanced explanation of benefits. — 381 (1) As used in this section, the term "health insurer" 382 means a health insurer issuing individual or group coverage or a 383 health maintenance organization issuing coverage through an 384 individual or a group contract. 385 (2) Each health insurer shall prepare an advanced 386 explanation of benefits upon receiving a patient estimate from a 387 facility pursuant to s. 395.301(1). The health insurer must 388 provide the advanced explanation of benefits to the insured no 389 later than 1 business day after receiving the patient estimate 390 from the facility or, in the case of a service scheduled at 391 least 10 business days in advance, no later than 3 business days 392 after receiving such estimate. The health insurer must provide 393 an advanced explanatio n of benefits to the insured no later than 394 3 business days after the date on which the health insurer 395 receives a request from the insured. 396 (3) At a minimum, the advanced explanation of benefits 397 must include detailed coverage and cost -sharing information 398 pursuant to the No Surprises Act, Title I of Division BB of the 399 Consolidated Appropriations Act, 2021, Pub. L. No. 116 -260. 400 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 17 of 44 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 7. Paragraph (b) of subsection (2) and paragraph 401 (a) of subsection (4) of section 627.6387, Florida Statutes, are 402 amended to read: 403 627.6387 Shared savings incentive program. — 404 (2) As used in this section, the term: 405 (b) "Health insurer" means an authorized insurer issuing 406 major medical or other comprehensive coverage through an 407 individual policy offering health insuranc e as defined in s. 408 624.603. 409 (4)(a) A shared savings incentive offered by a health 410 insurer in accordance with this section: 411 1. Is not an administrative expense for rate development 412 or rate filing purposes and shall be counted as a medical 413 expense for such purposes. 414 2. Does not constitute an unfair method of competition or 415 an unfair or deceptive act or practice under s. 626.9541 and is 416 presumed to be appropriate unless credible data clearly 417 demonstrates otherwise. 418 Section 8. Paragraph (b) of subsection (2) and paragraph 419 (a) of subsection (4) of section 627.6648, Florida Statutes, are 420 amended to read: 421 627.6648 Shared savings incentive program. — 422 (2) As used in this section, the term: 423 (b) "Health insurer" means an authorized insurer issuing 424 major medical or other comprehensive coverage through a group 425 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 18 of 44 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 policy offering health insurance as defined in s. 624.603 . The 426 term does not include the state group health insurance program 427 provided under s. 110.123. 428 (4)(a) A shared savings incentive offered by a health 429 insurer in accordance with this section: 430 1. Is not an administrative expense for rate development 431 or rate filing purposes and shall be counted as a medical 432 expense for such purposes . 433 2. Does not constitute an unfair method of competition or 434 an unfair or deceptive act or practice under s. 626.9541 and is 435 presumed to be appropriate unless credible data clearly 436 demonstrates otherwise. 437 Section 9. Paragraph (b) of subsection (2) and pa ragraph 438 (a) of subsection (4) of section 641.31076, Florida Statutes, 439 are amended to read: 440 641.31076 Shared savings incentive program. — 441 (2) As used in this section, the term: 442 (b) "Health maintenance organization" means an authorized 443 health maintenance organization issuing major medical or other 444 comprehensive coverage through individual or group contract has 445 the same meaning as provided in s. 641.19 . The term does not 446 include the state group health insurance program provided under 447 s. 110.123. 448 (4) A shared savings incentive offered by a health 449 maintenance organization in accordance with this section: 450 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 19 of 44 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) Is not an administrative expense for rate development 451 or rate filing purposes and shall be counted as a medical 452 expense for such purposes . 453 Section 10. Paragraphs (a) and (j) of subsection (1) of 454 section 475.01, Florida Statutes, are amended to read: 455 475.01 Definitions. — 456 (1) As used in this part: 457 (a) "Broker" means a person who, for another, and for a 458 compensation or valuable consideration di rectly or indirectly 459 paid or promised, expressly or impliedly, or with an intent to 460 collect or receive a compensation or valuable consideration 461 therefor, appraises, auctions, sells, exchanges, buys, rents, or 462 offers, attempts or agrees to appraise, auction , or negotiate 463 the sale, exchange, purchase, or rental of business enterprises 464 or business opportunities or any real property or any interest 465 in or concerning the same, including mineral rights or leases, 466 or who advertises or holds out to the public by any oral or 467 printed solicitation or representation that she or he is engaged 468 in the business of appraising, auctioning, buying, selling, 469 exchanging, leasing, or renting business enterprises or business 470 opportunities or real property of others or interests the rein, 471 including mineral rights, or who takes any part in the procuring 472 of sellers, purchasers, lessors, or lessees of business 473 enterprises or business opportunities or the real property of 474 another, or leases, or interest therein, including mineral 475 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 20 of 44 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 rights, or who directs or assists in the procuring of prospects 476 or in the negotiation or closing of any transaction which does, 477 or is calculated to, result in a sale, exchange, or leasing 478 thereof, and who receives, expects, or is promised any 479 compensation or valua ble consideration, directly or indirectly 480 therefor; and all persons who advertise rental property 481 information or lists. A broker renders a professional service 482 and is a professional within the meaning of s. 95.11(5)(b) s. 483 95.11(4)(b). Where the term "appra ise" or "appraising" appears 484 in the definition of the term "broker," it specifically excludes 485 those appraisal services which must be performed only by a 486 state-licensed or state-certified appraiser, and those appraisal 487 services which may be performed by a r egistered trainee 488 appraiser as defined in part II. The term "broker" also includes 489 any person who is a general partner, officer, or director of a 490 partnership or corporation which acts as a broker. The term 491 "broker" also includes any person or entity who un dertakes to 492 list or sell one or more timeshare periods per year in one or 493 more timeshare plans on behalf of any number of persons, except 494 as provided in ss. 475.011 and 721.20. 495 (j) "Sales associate" means a person who performs any act 496 specified in the definition of "broker," but who performs such 497 act under the direction, control, or management of another 498 person. A sales associate renders a professional service and is 499 a professional within the meaning of s. 95.11(5)(b) s. 500 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 21 of 44 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 95.11(4)(b). 501 Section 11. Paragraph (h) of subsection (1) of section 502 475.611, Florida Statutes, is amended to read: 503 475.611 Definitions. — 504 (1) As used in this part, the term: 505 (h) "Appraiser" means any person who is a registered 506 trainee real estate appraiser, a licensed real estate appraiser, 507 or a certified real estate appraiser. An appraiser renders a 508 professional service and is a professional within the meaning of 509 s. 95.11(5)(b) s. 95.11(4)(b). 510 Section 12. Subsection (7) of section 517.191, Florida 511 Statutes, is amended to read: 512 517.191 Injunction to restrain violations; civil 513 penalties; enforcement by Attorney General. — 514 (7) Notwithstanding s. 95.11(5)(f) s. 95.11(4)(f), an 515 enforcement action brought under this section based on a 516 violation of any provision of this chapter or any rule or order 517 issued under this chapter shall be brought within 6 years after 518 the facts giving rise to the cause of action were discovered or 519 should have been discovered with the exercise of due diligence, 520 but not more than 8 years after the date such violation 521 occurred. 522 Section 13. Subsection (14) of section 768.28, Florida 523 Statutes, is amended to read: 524 768.28 Waiver of sovereign immunity in tort actions; 525 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 22 of 44 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 recovery limits; civil liability for damages caused during a 526 riot; limitation on attorney fe es; statute of limitations; 527 exclusions; indemnification; risk management programs. — 528 (14) Every claim against the state or one of its agencies 529 or subdivisions for damages for a negligent or wrongful act or 530 omission pursuant to this section shall be foreve r barred unless 531 the civil action is commenced by filing a complaint in the court 532 of appropriate jurisdiction within 4 years after such claim 533 accrues; except that an action for contribution must be 534 commenced within the limitations provided in s. 768.31(4), and 535 an action for damages arising from medical malpractice or 536 wrongful death must be commenced within the limitations for such 537 actions in s. 95.11(5) s. 95.11(4). 538 Section 14. Subsection (4) of section 787.061, Florida 539 Statutes, is amended to read: 540 787.061 Civil actions by victims of human trafficking. — 541 (4) STATUTE OF LIMITATIONS. —The statute of limitations as 542 specified in s. 95.11(8) or (10) s. 95.11(7) or (9), as 543 applicable, governs an action brought under this section. 544 Section 15. The requirements of s. 395.301(1)(b), Florida 545 Statutes, as created by this act, relating to shoppable health 546 care services, do not apply to ambulatory surgical centers as 547 defined in s. 395.002, Florida Statutes, until January 1, 2026. 548 Section 16. The changes made by this act to s. 395.301, 549 Florida Statutes, relating to good faith estimates, are not 550 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 23 of 44 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 effective until the United States Department of Health and Human 551 Services, the United States Department of Labor, and the United 552 States Department of the Treasury iss ue a final rule pertaining 553 to good faith estimates required by section 2799B -6 of the 554 Public Health Services Act. The Agency for Health Care 555 Administration shall notify the Division of Law Revision upon 556 the promulgation of the final rule. 557 Section 17. The changes made by this act to s. 627.446, 558 Florida Statutes, relating to advanced explanation of benefits, 559 are not effective until the United States Department of Health 560 and Human Services, the United States Department of Labor, and 561 the United States Depar tment of the Treasury issue final rules 562 pertaining to advanced explanation of benefits required by 563 section 2799A-1(f) of the Public Health Services and good faith 564 estimates required by section 2799B -6 of the Public Health 565 Services Act. The Office of Insura nce Regulation shall notify 566 the Division of Law Revision upon the promulgation of the final 567 rule pertaining to advanced explanation of benefits. 568 Section 18. Present subsections (3) and (4) of section 569 409.016, Florida Statutes, are redesignated as subse ctions (4) 570 and (5), respectively, and a new subsection (3) is added to that 571 section, to read: 572 409.016 Definitions. —As used in this chapter: 573 (3) "Management functions" means: 574 (a) Planning, directing, organizing, coordinating, and 575 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 24 of 44 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 carrying out oversigh t duties of the lead agency; or 576 (b) Contracting for officer or director level staffing in 577 performance of the planning, directing, organizing, 578 coordinating, and carrying out of oversight duties of the lead 579 agency. 580 Section 19. Subsections (3) and (4) a nd paragraphs (a) and 581 (b) of subsection (7) of section 409.987, Florida Statutes, are 582 amended, and paragraph (g) is added to subsection (7) of that 583 section, to read: 584 409.987 Lead agency procurement; boards; conflicts of 585 interest.— 586 (3) Notwithstanding s . 287.057, the department shall use 587 5-year contracts with lead agencies. The department may only 588 extend a contract for a period of 1 to 5 years, in accordance 589 with s. 287.057, if the lead agency has met performance 590 expectations within the monitoring evalua tion. 591 (4) In order to serve as a lead agency, an entity must: 592 (a) Be organized as a Florida corporation or a 593 governmental entity. 594 (b) Be governed by a board of directors or a board 595 committee composed of board members. Board members shall provide 596 oversight and ensure accountability and transparency for the 597 system of care. The board of directors shall provide fiduciary 598 oversight to prevent conflicts of interest, promote 599 accountability and transparency, and protect state and federal 600 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 25 of 44 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 funding from misuse. The board of directors shall act in 601 accordance with s. 617.0830. The membership of the board of 602 directors or board committee must be described in the bylaws or 603 articles of incorporation of each lead agency, which must 604 provide that at least 75 percent of th e membership of the board 605 of directors or board committee must be composed consist of 606 persons residing in this state, and at least 51 percent of the 607 state residents on the board of directors must reside within the 608 service area of the lead agency. The lead agency shall ensure 609 that board members participate in annual training related to 610 their responsibilities. The department shall set forth minimum 611 training criteria in the contracts with the lead agencies. 612 However, for procurements of lead agency contracts in itiated on 613 or after July 1, 2014: 614 1. At least 75 percent of the membership of the board of 615 directors must be composed consist of persons residing in this 616 state, and at least 51 percent of the membership of the board of 617 directors must be composed consist of persons residing within 618 the service area of the lead agency. If a board committee 619 governs the lead agency, 100 percent of its membership must be 620 composed consist of persons residing within the service area of 621 the lead agency. 622 2. The powers of the board of directors or board committee 623 include, but are not limited to, approving the lead agency's 624 budget and setting the lead agency's operational policy and 625 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 26 of 44 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 procedures. A board of directors must additionally have the 626 power to hire the lead agency's executive director, unless a 627 board committee governs the lead agency, in which case the board 628 committee must have the power to confirm the selection of the 629 lead agency's executive director. 630 (c) Demonstrate financial responsibility throug h an 631 organized plan for regular fiscal audits ; and the posting of a 632 performance bond; and the posting of a fidelity bond to cover 633 any costs associated with reprocurement and the assessed 634 penalties related to a failure to disclose a conflict of 635 interest under subsection (7). 636 (7)(a) As used in this subsection, the term: 637 1. "Activity" includes, but is not limited to, a contract 638 for goods and services, a contract for the purchase of any real 639 or tangible property, or an agreement to engage with a lead 640 agency for the benefit of a third party in exchange for an 641 interest in real or tangible property, a monetary benefit, or an 642 in-kind contribution. 643 2. "Conflict of interest" means when a board member , a 644 director, or an officer, or a relative of a board member , a 645 director, or an officer, of a lead agency does any of the 646 following: 647 a. Enters into a contract or other transaction for goods 648 or services with the lead agency. 649 b. Holds a direct or indirect interest in a corporation, 650 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 27 of 44 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 limited liability corporation, par tnership, limited liability 651 partnership, or other business entity that conducts business 652 with the lead agency or proposes to enter into a contract or 653 other transaction with the lead agency. For purposes of this 654 paragraph, the term "indirect interest" has t he same meaning as 655 in s. 112.312. 656 c. Knowingly obtains a direct or indirect personal, 657 financial, professional, or other benefit as a result of the 658 relationship of such board member , director, or officer, or 659 relative of the board member , director, or officer, with the 660 lead agency. For purposes of this paragraph, the term "benefit" 661 does not include per diem and travel expenses paid or reimbursed 662 to board members or officers of the lead agency in connection 663 with their service on the board. 664 3. "Related party" means any entity of which a director or 665 an officer of the entity is also directly or indirectly related 666 to, or has a direct or indirect financial or other material 667 interest in, the lead agency. The term also includes any 668 subsidiary firm, parent entity, associate firm, or joint 669 venture. Lead agencies that hold more than one lead agency 670 contract with the department may request an exemption from the 671 department for specific related party requirements. 672 4.3. "Relative" means a relative within the third degre e 673 of consanguinity by blood or marriage. 674 (b)1. For any activity that is presented to the board of a 675 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 28 of 44 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 lead agency for its initial consideration and approval after 676 July 1, 2021, or any activity that involves a contract that is 677 being considered for renewal on or after July 1, 2021, but 678 before January 1, 2022 , a board member, a director, or an 679 officer of a lead agency shall disclose to the board any 680 activity that may reasonably be construed to be a conflict of 681 interest before such activity is initially conside red and 682 approved or a contract is renewed by the board. A rebuttable 683 presumption of a conflict of interest exists if the activity was 684 acted on by the board without prior notice as required under 685 paragraph (c). The board shall disclose any known actual or 686 potential conflicts to the department. 687 2. A lead agency may not enter into a contract or be a 688 party to any transaction with related parties if a conflict of 689 interest is not properly disclosed. A lead agency may not enter 690 into a contract with a related par ty for officer-level or 691 director-level staffing to perform management functions. The 692 contract with the department and lead agency must specify the 693 administrative functions that the lead agency may subcontract 694 For contracts with a lead agency which are in e xistence on July 695 1, 2021, and are not subject to renewal before January 1, 2022, 696 a board member or an officer of the lead agency shall disclose 697 to the board any activity that may reasonably be construed to be 698 a conflict of interest under this section by De cember 31, 2021. 699 3. Subject to the requirements of subparagraph 2., a lead 700 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 29 of 44 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 agency may enter into a contract or be a party to any 701 transaction with related parties as long as the fee, rate, or 702 price paid by the lead agency for the commodities or services 703 being procured does not exceed the fair market value for such 704 commodities or services. The lead agency shall disclose any 705 known actual or potential conflicts to the department. 706 (g)1. All department contracts with lead agencies must 707 contain the following contractual penalty provisions: 708 a. Penalties in the amount of $5,000 per occurrence must 709 be imposed for each known and potential conflict of interest, as 710 described in paragraph (b), which is not disclosed to the 711 department. 712 b. If a contract is executed for which a conflict of 713 interest was not disclosed to the department before execution of 714 the contract, the following penalties apply: 715 (I) A penalty in the amount of $20,000 for a first 716 offense. 717 (II) A penalty in the amount of $30,000 for a second or 718 subsequent offense. 719 (III) Removal of the board member who did not disclose a 720 known conflict of interest. 721 2. The penalties for failure to disclose a conflict of 722 interest under sub-subparagraphs 1.a. and 1.b. apply to any 723 contract entered into, regardless of the method of procurement, 724 including, but not limited to, formal procurement, single -source 725 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 30 of 44 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 contracts, and contracts that do not meet the minimum threshold 726 for formal procurement. 727 3. A contract procured for which a conflict of interest 728 was not disclosed to the department before execution of the 729 contract must be reprocured. The department shall recoup from 730 the lead agency expenses related to a contract that was executed 731 without disclosure of a conflict of interest. 732 Section 20. Paragraphs (c), (j), and (k) of subsection (1) 733 of section 409.988, Florida Statutes, are amended to read: 734 409.988 Community-based care lead agency duties; general 735 provisions.— 736 (1) DUTIES.—A lead agency: 737 (c) Shall follow the financial guidelines developed by the 738 department and shall comply with regular, independent auditing 739 of its financial activities, including any requests for records 740 associated with such financial audits within the timeframe 741 established by the department or its contracted vendors provide 742 for a regular independent auditing of its financial activities . 743 The results of the financial audit must Such financial 744 information shall be provided to the community alliance 745 established under s. 20.19(5). 746 (j)1. May subcontract for the provision of services , 747 excluding subcontracts with a related party for officer -level or 748 director-level staffing to perform management functions, 749 required by the contract with the lead agency and the 750 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 31 of 44 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 department; however, the subcontracts must specify how the 751 provider will contribute to the lead agency meeting the 752 performance standards established pursuant to the child welfare 753 results-oriented accountability system required by s. 409.997. 754 Any contract with an unrelated entity for officer -level or 755 director-level staffing to perform management functions must 756 adhere to the executive compensation provision in s. 409.992(3). 757 2. The lead agency Shall directly provide no more than 35 758 percent of all child welfare services provided unless it can 759 demonstrate a need, within the lead agency's geographi c service 760 area, where there is a lack of qualified providers available to 761 perform necessary services. The approval period for an exemption 762 to exceed the 35 percent threshold is limited to 2 years to 763 exceed this threshold . To receive approval, the lead agen cy must 764 create and submit to the department through the lead agency's 765 local community alliance a detailed report of all efforts to 766 recruit a qualified provider to perform the necessary services 767 in that geographic service area. The local community alliance in 768 the geographic service area in which the lead agency is seeking 769 to exceed the threshold shall review the lead agency's 770 justification for need and recommend to the department whether 771 the department should approve or deny the lead agency's request 772 for an exemption from the services threshold. If there is not a 773 community alliance operating in the geographic service area in 774 which the lead agency is seeking to exceed the threshold, such 775 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 32 of 44 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 review and recommendation shall be made by representatives of 776 local stakeholders, including at least one representative from 777 each of the following: 778 a.1. The department. 779 b.2. The county government. 780 c.3. The school district. 781 d.4. The county United Way. 782 e.5. The county sheriff's office. 783 f.6. The circuit court corresponding to the county. 784 g.7. The county children's board, if one exists. 785 786 The lead agency may request a renewal of the exemption allowing 787 the lead agency to directly provide child welfare services by 788 following the process outline d in this subparagraph. The 789 approval period for an exemption renewal is limited to 2 years. 790 If, after the expiration of the exemption, the department 791 determines the lead agency is not making a good faith effort to 792 recruit a qualified provider, the departme nt may deny the 793 renewal request and require reprocurement. 794 3. Upon approving any exemption that allows a lead agency 795 to directly provide more than 40 percent of all child welfare 796 services provided, the department shall require the lead agency 797 to undergo an operational audit by the Auditor General to 798 examine the lead agency's procurement of and financial 799 arrangements for providing such services. The audit shall, at a 800 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 33 of 44 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 minimum, examine the costs incurred and any payments made by the 801 lead agency to itself for services directly provided by the lead 802 agency compared to any procurement solicitations by the lead 803 agency, and assess the adequacy of the efforts to obtain 804 services from subcontractors and the resulting cost and cost -805 effectiveness of the services provide d directly by the lead 806 agency. The Auditor General shall conduct such audits upon 807 notification by the department. 808 (k) Shall publish on its website by the 15th day of each 809 month at a minimum the data specified in subparagraphs 1.-10. 810 subparagraphs 1.-5., calculated using a standard methodology 811 determined by the department, for the preceding calendar month 812 regarding its case management services. The following 813 information shall be reported by each individual subcontracted 814 case management provider, by the lea d agency, if the lead agency 815 provides case management services, and in total for all case 816 management services subcontracted or directly provided by the 817 lead agency: 818 1. The average caseload of case managers, including only 819 filled positions; 820 2. The total number and percentage of case managers who 821 have 25 or more cases on their caseloads; 822 3. The turnover rate for case managers and case management 823 supervisors for the previous 12 months; 824 4. The percentage of required home visits completed; and 825 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 34 of 44 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 5. Performance on outcome measures required pursuant to s. 826 409.997 for the previous 12 months ;. 827 6. The number of unlicensed placements for the previous 828 month; 829 7. The percentages and trends for foster parent and group 830 home recruitment and licensure for the previous month; 831 8. The percentage of families being served through family 832 support services, in -home services, and out -of-home services for 833 the previous month; 834 9. The percentage of cases that were converted from 835 nonjudicial to judicial for the prev ious month; and 836 10. Children's legal service staffing rates. 837 Section 21. Section 409.991, Florida Statutes, is 838 repealed. 839 Section 22. Section 409.9913, Florida Statutes, is created 840 to read: 841 409.9913 Funding methodology to allocate funding to lea d 842 agencies.— 843 (1) As used in this section, the term: 844 (a) "Core services funding" means all funds allocated to 845 lead agencies. The term does not include any of the following: 846 1. Funds appropriated for independent living services. 847 2. Funds appropriated for maintenance adoption subsidies. 848 3. Funds allocated by the department for child protective 849 investigation service training. 850 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 35 of 44 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 4. Nonrecurring funds. 851 5. Designated mental health wrap -around service funds. 852 6. Funds for special projects for a designa ted lead 853 agency. 854 7. Funds appropriated for the Guardianship Assistance 855 Program established under s. 39.6225. 856 (b) "Operational and fixed costs" means: 857 1. Administrative expenditures, including, but not limited 858 to, information technology and human reso urces functions. 859 2. Lease payments. 860 3. Asset depreciation. 861 4. Utilities. 862 5. Administrative components of case management. 863 6. Mandated activities such as training, quality 864 improvement, or contract management. 865 (2) The department shall develop, in collaboration with 866 lead agencies and providers of child welfare services, a funding 867 methodology for allocating core services funding to lead 868 agencies which, at a minimum: 869 (a) Is actuarially sound. 870 (b) Is reimbursement -based. 871 (c) Is designed to incentivize efficient and effective 872 lead agency operation, prevention, family preservation, and 873 permanency. 874 (d) Considers variable costs, including, but not limited 875 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 36 of 44 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 to: 876 1. Direct costs for in -home and out-of-home care for 877 children served by the lead agencies. 878 2. Direct costs for prevention services. 879 3. Operational and fixed costs. 880 (e) Is scaled regionally for cost -of-living factors. 881 (3) The lead agencies and providers shall submit any 882 detailed cost and expenditure data that t he department requests 883 for the development of the funding methodology. 884 (4) The department shall submit a report to the Governor, 885 the President of the Senate, and the Speaker of the House of 886 Representatives by December 1, 2024, which, at a minimum: 887 (a) Describes a proposed funding methodology and formula 888 that will provide for the annual budget of each lead agency, 889 including, but not limited to, how the proposed methodology will 890 meet the criteria specified in subsection (2). 891 (b) Describes the data used to develop the methodology and 892 the data that will be used to annually calculate the proposed 893 lead agency budget. 894 (c) Specifies proposed rates and total allocations for 895 each lead agency. The allocations must ensure that the total of 896 all amounts allocated to lead agencies under the funding 897 methodology does not exceed the total amount appropriated to 898 lead agencies in the 2024 -2025 General Appropriations Act. 899 (d) Provides risk mitigation recommendations that ensure 900 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 37 of 44 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 that lead agencies do not experience a red uction in funding that 901 would be detrimental to operations or result in a reduction in 902 services to children. 903 (5) By October 31, 2025, and each October 31 thereafter, 904 the department shall submit a report to the Governor, the 905 President of the Senate, and th e Speaker of the House of 906 Representatives which includes recommendations for adjustments 907 to the funding methodology for the next fiscal year, calculated 908 using the criteria in subsection (2). Such recommendations must, 909 at a minimum, be based on updated expe nditure data, cost-of-910 living adjustments, market dynamics, or other catchment area 911 variations. The total of all amounts proposed for allocation to 912 lead agencies under the funding methodology for the subsequent 913 fiscal year may not exceed the total amount ap propriated in the 914 General Appropriations Act for core services funding in the 915 present fiscal year. The funding methodology must include risk 916 mitigation strategies that ensure that lead agencies do not 917 experience a reduction in funding that would be detrime ntal to 918 operations or result in a reduction in services to children. 919 (6)(a) The requirements of this section do not replace, 920 and are in addition to, any requirements of chapter 216, 921 including, but not limited to, submission of final legislative 922 budget requests by the department under s. 216.023. 923 (b) The data and reports required under subsections (4) 924 and (5) may also include proposed rates and total allocations 925 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 38 of 44 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 for each lead agency which reflect any additional core services 926 funding for lead agencies whi ch is requested by the department 927 under s. 216.023. 928 (7)(a) Beginning with the 2025 -2026 fiscal year, the 929 Legislature shall allocate funding to lead agencies through the 930 General Appropriations Act with due consideration of the funding 931 methodology develope d under this section. 932 (b) The department may not change the allocation of funds 933 to a lead agency as provided in the General Appropriations Act 934 without legislative approval. The department may approve 935 additional risk pool funding for a lead agency as prov ided under 936 s. 409.990. 937 (8) The department shall provide to the Governor, the 938 President of the Senate, and the Speaker of the House of 939 Representatives monthly reports from July through October 2024 940 which provide updates on activities and progress in devel oping 941 the funding methodology. 942 Section 23. Subsections (1) and (3) of section 409.992, 943 Florida Statutes, are amended to read: 944 409.992 Lead agency expenditures. — 945 (1) The procurement of commodities or contractual services 946 by lead agencies is shall be governed by the financial 947 guidelines developed by the department and must comply with 948 applicable state and federal law and follow good business 949 practices. Pursuant to s. 11.45, the Auditor General may provide 950 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 39 of 44 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 technical advice in the development of the fin ancial guidelines. 951 (a)1. Lead agencies shall competitively procure all 952 contracts, consistent with the federal simplified acquisition 953 threshold. 954 2. Lead agencies shall competitively procure all contracts 955 in excess of $35,000 with related parties. 956 3. Financial penalties or sanctions, as established by the 957 department and incorporated into the contract, must be imposed 958 by the department for noncompliance with applicable local, 959 state, or federal law for the procurement of commodities or 960 contractual services. 961 (b) The contract between the department and the lead 962 agency must delineate the rights and obligations of the lead 963 agency concerning the acquisition, transfer, or other 964 disposition of real property. At a minimum, the contract must: 965 1. Require the lead agency to follow all federal law on 966 the acquisition, improvement, transfer, or disposition of real 967 property acquired by the lead agency using federal dollars. 968 2. Beginning July 1, 2024, require the department to 969 approve any sale, transfer, or dispositi on of real property 970 acquired and held by the lead agency using state funds. 971 (3) Notwithstanding any other provision of law, a 972 community-based care lead agency administrative employee may not 973 receive a salary, whether base pay or base pay combined with an y 974 bonus or incentive payments, in excess of 150 percent of the 975 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 40 of 44 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 annual salary paid to the secretary of the Department of 976 Children and Families from state -appropriated funds, including 977 state-appropriated federal funds. This limitation applies 978 regardless of the number of contracts a community -based care 979 lead agency may execute with the department. This subsection 980 does not prohibit any party from providing cash that is not from 981 appropriated state funds to a community -based care lead agency 982 administrative employ ee. 983 Section 24. Paragraph (d) of subsection (1) of section 984 409.994, Florida Statutes, is amended to read: 985 409.994 Community-based care lead agencies; receivership. — 986 (1) The Department of Children and Families may petition a 987 court of competent jurisdiction for the appointment of a 988 receiver for a community -based care lead agency established 989 pursuant to s. 409.987 if any of the following conditions exist: 990 (d) The lead agency cannot meet , or is unlikely to meet, 991 its current financial obligations to its employees, contractors, 992 or foster parents. Issuance of bad checks or the existence of 993 delinquent obligations for payment of salaries, utilities, or 994 invoices for essential services or commodities constitutes shall 995 constitute prima facie evidence that the lead agency lacks the 996 financial ability to meet its financial obligations. 997 Section 25. Paragraph (d) of subsection (1) of section 998 409.996, Florida Statutes, is amended to read: 999 409.996 Duties of the Department of Children and 1000 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 41 of 44 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 Families.—The department shall contract for the delivery, 1001 administration, or management of care for children in the child 1002 protection and child welfare system. In doing so, the department 1003 retains responsibility for the quality of contracted services 1004 and programs and shall ensure that, at a minimum, services are 1005 delivered in accordance with applicable federal and state 1006 statutes and regulations and the performance standards and 1007 metrics specified in the strategic plan created under s. 1008 20.19(1). 1009 (1) The department shall enter into contracts with lead 1010 agencies for the performance of the duties by the lead agencies 1011 established in s. 409.988. At a minimum, the contracts must do 1012 all of the following: 1013 (d) Provide for contractual actions tiered interventions 1014 and graduated penalties for failure to comply with contract 1015 terms or in the event of performance deficiencies , as determined 1016 appropriate by the department . 1017 1. Such contractual actions must interventions and 1018 penalties shall include, but are not limited to: 1019 a.1. Enhanced monitoring and reporting. 1020 b.2. Corrective action plans. 1021 c.3. Requirements to accept technical assistance and 1022 consultation from the department under subsection (6). 1023 d.4. Financial penalties, as a matter of contract. The 1024 financial penalties assessed by the department on the lead 1025 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 42 of 44 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 agency revert to the state which shall require a lead agency to 1026 reallocate funds from administrative costs to direct care for 1027 children. 1028 e.5. Early termination of contracts, as provided in s. 1029 402.7305(3)(f) s. 402.1705(3)(f). 1030 2. No later than January 1, 2025, the department shall 1031 ensure that each lead agency contract executed includes a list 1032 of financial penalties for failure to comply with contractual 1033 requirements. 1034 Section 26. By September 30, 2024, and February 1, 2025, 1035 respectively, the Department of Children and Families shall 1036 submit a report to the Governor, the President of the Senate, 1037 and the Speaker of the House of Representatives on rules and 1038 policies adopted and other actions taken t o implement this act. 1039 Section 27. There is established the Future of Child 1040 Protection Contracting and Funding Workgroup within the 1041 Department of Children and Families. The department shall 1042 convene the workgroup and is responsible for producing and 1043 submitting a report of the workgroup's findings and 1044 recommendations to the Governor, the President of the Senate, 1045 and the Speaker of the House of Representatives by October 15, 1046 2025. 1047 (1)(a) The Secretary of Children and Families, or his or 1048 her designee, shall chair the workgroup and shall invite the 1049 following persons to participate as members of the workgroup: 1050 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 43 of 44 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 Secretary of Health Care Administration, or his or 1051 her designee. 1052 2. The Secretary of Management Services, or his or her 1053 designee. 1054 (b) The Secretary of Children and Families, or his or her 1055 designee, shall appoint the following individuals as members of 1056 the workgroup: 1057 1. An employee of a community -based care lead agency with 1058 executive-level experience. 1059 2. A current contractor for lead agen cy child protection 1060 services. 1061 3. Two representatives of a direct provider of child 1062 protection or child welfare services. 1063 4. A member of the Family Law Section of The Florida Bar 1064 or a member of the court exercising jurisdiction over family law 1065 matters. 1066 5. A representative of a for -profit managed care entity. 1067 6. A representative from the Florida Institute for Child 1068 Welfare. 1069 7. Any additional members the department deems 1070 appropriate. 1071 (2) The report submitted by the department must, at a 1072 minimum: 1073 (a) Examine the current contracting methods for the 1074 provision of all foster care and related services. 1075 ENROLLED HB 7089, Engrossed 2 2024 Legislature CODING: Words stricken are deletions; words underlined are additions. hb7089-03-er Page 44 of 44 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 (b) Consider the unique regional needs of children and 1076 families at risk of abuse and neglect. 1077 (c) Identify current barriers to implementing federally 1078 approved Title IV-E prevention services. 1079 (d) Recommend changes to existing laws, rules, and 1080 policies necessary to implement the workgroup's recommendations. 1081 (3) The workgroup shall terminate imme diately after the 1082 Secretary of Children and Families submits the report to the 1083 Governor, the President of the Senate, and the Speaker of the 1084 House of Representatives. 1085 Section 28. This act shall take effect July 1, 2024. 1086