Florida 2024 Regular Session

Florida House Bill H7089 Latest Draft

Bill / Enrolled Version Filed 03/12/2024

                                    
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      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          
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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          
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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          
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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          
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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          
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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          
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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          
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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          
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 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          
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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          
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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          
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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 
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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          
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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          
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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          
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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          
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 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          
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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          
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 (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          
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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          
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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          
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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          
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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          
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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          
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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          
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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          
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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          
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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          
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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          
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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          
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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          
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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          
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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          
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 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          
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 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          
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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          
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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          
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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          
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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          
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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          
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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          
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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          
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 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          
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 (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