The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Children, Families, and Elder Affairs
BILL: SB 536
INTRODUCER: Senator Garcia
SUBJECT: Community-based Child Welfare Agencies
DATE: January 15, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Woodruff Tuszynski CF Pre-meeting
2. AHS
3. FP
I. Summary:
The Department of Children and Families (DCF) mission is to work in partnership with local
communities to protect the vulnerable, promote strong economically self-sufficient families, and
advance personal and family recovery and resiliency. The DCF must delivery services by
contract through private providers, including community-based care lead agencies (CBCs)
delivering child welfare services. The DCF is responsible for program oversight and the overall
performance of the child welfare system
SB 536 amends laws related to DCF contracts with CBCs to increase transparency and
accountability of the services provided by the CBCs. Specifically, the bill:
Requires DCF to reprocure contracts with CBCs every five years to incentivize performance,
encourage competition within the provider network, and require competitive procurement of
all CBC subcontracts above $250,000.
Limits executive compensation funded through CBC contracts to a capped total amount
regardless of how many contracts the CBC has with DCF.
Requires a CBC’s board of directors to ensure accountability and transparency of operations
in addition to providing fiduciary oversight.
Prohibits a CBC from contracting out administrative and management functions with a
related party and requires DCF’s approval prior to a CBC entering a contract with a related
party.
Prohibits a CBC from directly providing more than 35 percent of child welfare services in its
catchment area.
Expands those who may have a conflict of interest to include a CBC employee and includes a
financial penalty on a CBC for failure to disclose known conflicts of interest.
Requires DCF to retain ownership of real property purchased through a CBC contract.
REVISED: BILL: SB 536 Page 2
Revises the criteria for corrective action plans to allow more timely action by DCF for
performance deficiencies and allows DCF to petition for receivership when DCF’s secretary
determines there is a danger to children under the CBC’s care.
Requires CBCs to comply with all financial audits and request for records.
Requires DCF to include monetary sanctions or disincentives for performance deficiencies in
CBC contracts.
Expands the information a CBC must publish on its website to include the number of
unlicensed placements, foster parent recruiting and licensing efforts, and other information.
Requires the CBCs to submit information timely to DCF to prevent delays of judicial review
hearings.
The bill amends the current statutory funding model for the allocation of funds to CBCs from
an equity model to an actuarially sound model using a tiered methodology.
The bill also requires CBCs to submit to DCF spending plans that align with budgeted
allocations prior to receiving monthly allocations.
The bill has no fiscal impact on state government and an indeterminate fiscal impact on the
private sector. See Section V. Fiscal Impact Statement.
The bill provides an effective date of July 1, 2024.
II. Present Situation:
Florida’s Child Welfare System
Chapter 39, F.S., creates the dependency system charged with protecting child welfare. Florida’s
child welfare system identifies children and families in need of services through reports to the
central abuse hotline (hotline) and child protective investigations. The Department of Children
and Families (DCF) and community-based care lead agencies (CBCs) work with those families
to address the problems endangering children, if possible. If the problems cannot be addressed,
the child welfare system finds safe out-of-home placements for children.
The child welfare system includes the following key elements:
A report to the hotline.
A child protective investigation to determine the safety of the child.
The court finding the child dependent, if the child is determined to need such protection.
Case planning to address the problems resulting in the child’s dependency.
Reunification with the child’s parents or another option to establish permanency, such as
adoption.
The DCF is responsible for program oversight and the overall performance of the child welfare
system.
1
1
Office of Program Policy Analysis & Government Accountability, Child Welfare System Performance Mixed in First Year
of Statewide Community-Based Care, Report No. 06-50, June 2006, available at:
https://oppaga.fl.gov/Documents/Reports/06-50.pdf. BILL: SB 536 Page 3
Department of Children and Families
The DCF’s mission is to work in partnerships with local communities to protect the vulnerable,
promote strong and economically self-sufficient families, and advance personal and family
recovery and resiliency.
2
The DCF must develop a strategic plan to fulfil this mission and
establish measurable goals, objectives, performance standards, and quality assurance
requirements to ensure DCF is accountable to taxpayers.
3
The DCF must deliver services by contract through private providers to the extent allowed by
law and funding.
4
These private providers include Community-Based Care Lead Agencies
(CBC) delivering child welfare services.
The total agency budget is $4,847,138,852.
5
Community-Based Care Lead Agencies
Community-based care combines the outsourcing of foster care and related services to local
nonprofits with an increased local community ownership of service delivery and design.
6
CBCs
are responsible for providing foster care and related services, including, but not limited to,
counseling, domestic violence services, substance abuse services, family preservation,
emergency shelter, and adoption.
7
Because CBCs are to partner with community providers to
meet the needs of children and families in its service area, the CBCs contract with subcontractors
for case management and direct care services to children and families.
8
The CBCs are to plan,
administer, and coordinate the delivery of client services, ensure compliance with federal and
state laws, rules, and regulations, and monitor subcontractors.
9
There are 17 CBCs statewide,
which serve the state’s 20 judicial circuits.
10
A CBC is statutorily limited from directly providing more than 35 percent of all child welfare
services in its catchment area unless it can demonstrate a justification for need to exceed the 35
percent threshold.
11
The local community alliance
12
in the CBC’s service area must review the
CBC’s justification for need to exceed the threshold and recommend whether DCF should
2
Section 20.19(1), F.S.
3
Id.
4
Id.
5
Governor Ron Desantis, Focus on Florida’s Future, available at
http://www.bolderbrighterbetterfuture.com/web%20forms/Budget/BudgetAgency.aspx (last visited Jan 10, 2024).
6
Florida Department of Children and Families, Community-Based Care, available at
https://www.myflfamilies.com/services/child-family/child-and-family-well-being/community-based-care (last visited Jan. 10,
2024).
7
Section 409.145(1), F.S.
8
Id.
9
Section 409.988, F.S.
10
Florida Department of Children and Families, Lead Agency Information, https://www.myflfamilies.com/services/child-
family/child-and-family-well-being/community-based-care/lead-agency-information (last visited Jan. 13, 2024).
11
Section 409.988(1)(j), F.S.
12
Section 20.19(5), F.S., requires the DCF, in consultation with local communities, to establish community alliances of the
stakeholders, community leaders, client representatives and funders of human services in each county to provide a focal point
for community participation and governance of community-based services. BILL: SB 536 Page 4
approve or deny the justification.
13
Currently, nine CBCs utilize the waiver to exceed the 35
percent threshold.
14
CBCs are obligated to perform several duties, including:
Serve children referred to the CBC as a result of abuse, neglect, or abandonment hotline
reports.
Provide DCF with accurate and timely information necessary for DCF oversight.
Follow financial guidelines developed by DCF and provide for regular independent audits.
Prepare and file all necessary court documents and attend dependency court proceedings.
Ensure all individuals providing care to dependent children receive training and specified
information and meet employment requirements.
Maintain eligibility to receive all available federal child welfare funds.
Adhere to all best child welfare practices.
Maintain written agreements with Healthy Families Florida entities in its service area to
promote cooperative planning for the provision of prevention and intervention services.
Comply with federal and state statutory requirements and agency rules in the provision of
contractual services.
Use authority to subcontract for the provision of services provided CBCs contribute to
services and meet specified criteria.
Identify an employee to serve as a liaison with the community alliance and community-based
and faith-based organizations interested in collaborating or offering services or other
assistance on a volunteer basis to the children and families served by the CBC.
Ensure that appropriate CBC staff and subcontractors are informed of the specific services or
assistance available from local community-based and faith-based organizations.
Identify it as a DCF contractor on its website and promotional literature.
Ensure that it is addressing the unique needs of the fathers of children who are served by the
CBC by employing a father-engagement specialist.
Post information regarding case management services on its website by a specified date,
including the average caseload of case managers for filled positions, the turnover rate for
case managers and their supervisors for the previous 12 months, the percentage of required
home visits completed, and performance on outcome measures required under s. 409.997,
F.S., for the previous 12 months.
15
There are minimum requirements with which CBCs must comply to be eligible to contract with
DCF, including:
Being organized as a Florida corporation or a governmental entity.
16
13
Supra note 11.
14
Florida Department of Children and Families, 2024 Agency Analysis, pg. 4. (on file with the Children, Families, and Elder
Affairs Committee). The nine CBCs that currently exceed the 35 percent threshold include: Kids First of Florida, Inc.;
Childnet, Inc. (Palm Beach); Childnet, Inc. (Broward); Community Partnership for Children, Inc.; Brevard Family
Partnerships; Family Integrity Program (St. Johns County); Kids Central, Inc.; Safe Children Coalition; and Children’s
Network of Southwest Florida.
15
Section 409.988(1), F.S.
16
Section 409.987(4)(a), F.S. BILL: SB 536 Page 5
Having a board of directors or board committee with authority to approve the CBC budget
and hire a CBC executive director.
17
Demonstrating financial responsibility by having a plan for regular fiscal audits and securing
performance bond.
18
The DCF must ensure contracts with CBCs:
Provide for the services as required under s. 409.988, F.S.
Provide relevant information to DCF related to a quality assurance program and the child
welfare results-oriented accountability system.
Include tiered interventions and graduated penalties for failure to comply with contract or
performance deficiencies.
Require CBCs to provide current and accurate information about activities related to case
records in the statewide automated child welfare information system.
Require CBCs to annually provide written and published operating procedures on specific
topics.
Require CBCs to gather all information to complete the requirements for the child-specific
section of the unified home study and enter data into the statewide automated child welfare
information system no later than 90 days after the filing of a petition for termination of
parental rights.
Specify the procedures to resolve differences in interpreting the contract or to resolve a
disagreement amongst the parties regarding compliance with the contract.
19
The DCF contracts with the following CBCs as illustrated in the following map:
20
17
Section 409.987(4)(b), F.S.
18
Section 409.987(4)(c), F.S.
19
Section 409.996(1), F.S.
20
Supra note 10. BILL: SB 536 Page 6
The DCF must develop and maintain written policies and procedures for monitoring compliance
with the services the CBCs provide under contract. The DCF is required to evaluate each CBC’s
programmatic, operation, and fiscal operations at least once annually.
21
The DCF typically enters into 5-year contracts with CBCs, with the option for an extension or a
renewal of up to 5-years or for the original term of the contract, whichever period is longer.
22
While entering into 5-year contracts has provided stability within the CBC system, it has also
had the effect of reducing competition. For example, since the creation of CBCs, the DCF has
conducted 19 procurements; for 11 of these procurements, only one entity submitted a bid for the
contract.
23
The DCF is currently in the process of procuring CBC services in 12 circuits, which
includes 11 CBC service areas.
24
Funding allocated to the CBCs during the 2023-24 state fiscal year totaled over $1.3 billion.
25
21
Section 409.996(19)(a), F.S.
22
Section 409.987(3), F.S.
23
Supra note 14, pg. 3.
24
Florida Department of Children and Families, Invitation to Negotiate, Community-Based Care Lead Agencies, DCF ITN
2324 063
25
Chapter 2023-239, L.O.F., General Appropriations Act FY 2023-2024, specific appropriations 328, 329, and 330. BILL: SB 536 Page 7
Funding
Section 409.990, F.S., requires that funding for a contract between DCF and CBC be through
general revenue or other applicable state or federal funding sources. The DCF allocates core
funding
26
to CBCs based on a statutory “equity model”, which considers the proportion of child
population, child abuse hotline workload, and children in care.
27
In addition to annually evaluating CBC fiscal operations, current law requires DCF to do several
things to ensure that the CBCs are providing services within its allocated budget:
Section 409.996, F.S., requires DCF to annually conduct a comprehensive, multi-year review
of the revenues, expenditures and financial positions of all CBCs that cover the most recent
two consecutive fiscal years. The review must include a comprehensive system-of-care
analysis and the CBCs must develop and maintain a plan to achieve financial viability to
accompany DCF’s review. The DCF must submit the review to the Governor, the Senate
President, and the Speaker of the House of Representatives by November 1 each year.
The 2023-2024 General Appropriations Act required each CBC to submit a detailed spending
plan, approved by its board of directors, to DCF for all projected expenditures for the current
fiscal year. The spending plan must demonstrate that core expenditures will not exceed the
appropriated amount of core funding and reserve a certain amount of funding for
unanticipated expenses. The DCF cannot release addition funds outside the two-month
advance until it has reviewed and approved a CBC’s spending plan. At any point during the
year, if a CBC’s actual expenditures project an end of year deficit, the CBC must submit a
revised spending plan to DCF that reflects actions to be taken to remain within appropriated
core funding for the remained of the fiscal year.
28
The following table includes the total allocated funding amount (state and federal dollars) for
each CBC for FY 23-24 and the total contract amount for each CBC.
29
CBC Lead Agency Circuit FY 23-24 Allocation
Total Contract
Amount
Northwest Florida Health
Network (Big Bend)
2, 14 $56,369,236 $238,526,446
1 $82,885,014 $405,072,361
Partnership for Strong
Families
3, 8 $54,767,819 $393,779,654
26
Section 409.997(1)(a), defines “core services funds” as all funds allocated to CBCs operating under contract with the DCF,
with the following exceptions: funds appropriated for independent living; funds appropriated for maintenance adoption
subsidies; Funds allocated by the DCF for protective investigations training; nonrecurring funds; designated mental health
wrap-around services funds; funds for special projects for a designated CBC; and funds appropriated for the Guardianship
Assistance Program under s. 39.6225, F.S.
27
Section 409.991, F.S. provides that core services funds are calculated based on the proportion of the (a) child population
weighted as five percent of the total; (b) child abuse hotline workload weighted as 35 percent of the total; and (c) children in
care weighted as 60 percent of the total. Section 409.991(3), F.S., provides that beginning in the 2015-16 FY, 100 percent of
the recurring core services funding must be based on the prior year recurring base core services funds, and any new funding
be allocated as: (a) 70 percent of new funding among all CBCs and (b) 35 percent of new funding to CBCs below their
equitable share.
28
Supra note 25, specific appropriation 328.
29
Information on a CBC’s FY 2023-24 allocation can be found in the respective CBC contract; See Florida Accountability
Contract Tracking System, available at https://facts.fldfs.com/Search/ContractSearch.aspx (last visited Dec. 7, 2023). BILL: SB 536 Page 8
CBC Lead Agency Circuit FY 23-24 Allocation
Total Contract
Amount
Family Support Services of
North Florida
4 (Duval, Nassau) $39,569,518 $637,352,496
Kids First of Florida 4 (Clay) $17,989,867 $113,824,668
St. Johns County Board of
Commissioners
7 (St. Johns) $11,029,295 $75,361,163
Community Partnership for
Children
7 (Flagler, Volusia,
Putnam)
$63,794,188 $306,403,794
Safe Children Coalition 12 $51,438,346 $255,500,845
Family Support Services of
Suncoast
6 (Pasco, Pinellas) $132,525,326 $658,177,868
Kids Central 5 $76,436,349 $369,953,294
Embrace Families 9, 18 (Orange, Osceola,
Seminole)
$96,434,878 $432,245,145
Heartland for Children 10 $66,958,780 $492,511,758
Brevard Family Partnerships 18 (Brevard) $22,163,788
30
$296,691,729
Communities Connected for
Kids
19 $21,164,340
31
$326,868,835
ChildNet
15 (Palm Beach) $60,203,225 $509,655,207
17 (Broward) $90,672,980 $437,235,275
Children’s Network of
Southwest Florida
20 $74,963,612 $373,815,208
Children’s Network of
Hillsborough
13 $114,169,279 $563,336,139
Citrus Family Care Network 11, 16 $118,092,501 $563,973,467
TOTAL $1,251,628,34 $7,450,285,352
Because the core services funding for each CBC was established based on the total expenditures
by DCF when the CBCs were created, significant core funding inequities have been
institutionalized in the system of care. To mitigate financial risk, the Legislature created a CBC
Risk Pool that allows CBCs to apply to DCF for additional funding.
32
A committee that includes
DCF’s secretary and three nonapplicant CBC representatives review the risk pool applications.
33
The DCF may authorize risk pool funding to address:
Significant changes in the number or composition of clients eligible to receive services.
34
Significant changes in the services that are eligible for reimbursement.
35
30
This reflects six months of payments (07/01/2023-12/31/2023) because the contract end date is Dec. 31, 2023.
31
This reflects six months of payments (07/01/2023-12/31/2023) because the contract end date is Dec. 31, 2023.
32
Section 409.990(8), F.S.
33
Id.
34
Section 409.990(8)(c)1., F.S.
35
Section 409.990(8)(c)2., F.S. BILL: SB 536 Page 9
Continuity of care in the event of failure, discontinuance of service, or financial misconduct
by a CBC.
36
Significant changes in the mix of available funds.
37
The Legislature added the “equity model” CBC funding model into statute in 2011 because the
allocation of state or federal funds to CBCs was based primarily on the number of children in
care with funding direction to DCF through proviso in the General Appropriations Act (GAA).
38
In 2019, the Legislature directed DCF and the CBCs to develop an alternative funding model.
39
This produced the Florida Funding Model for Children (FMC) that calculated the cost of
providing services by setting case worker caseload ratios, an incentive for prevention spending,
and a target to reduce use of group care and a per child cost calculation.
40
The Legislature,
through proviso in the GAA, used the FMC methodology to allocate increases in CBC core
services funding of $25 million in 2020 and $150 million in 2022.
41
However, the current
“equity model” and the FMC allocation methodology do not use an actuarially-sound model that
many other programs in the state utilize; therefore, the DCF contracted with Mercer, a
government human services consulting firm, to assist it in developing an actuarially sound
model. The DCF released the initial report with a proposed model and draft rates on September
30, 2022. The DCF expects to release a final report by January 2024.
42
Oversight and Monitoring
The DCF has the responsibility to monitor and oversee CBCs to ensure that CBCs are delivering
services in accordance with applicable federal and state statutes and regulations and the
performance standards and metrics specified in its strategic plan.
43
The DCF must, at a
minimum, evaluate each of the CBCs under contract annually.
44
The evaluation must cover the
programmatic, operational, and fiscal operations of the CBC.
45
The DCF Office of Quality (Office) ensures that CBCs and other contracted providers meet high
levels of performance. The duties of the Office include, at a minimum:
36
Section 409.990(8)(c)3., F.S.
37
Section 409.990(8)(c)4., F.S.
38
Chapter 2011-62, s. 1, L.O.F. In fiscal year 2010-11, the allocation was based on four weighted factors: the number of
children in poverty (30 percent); the number of reports the DCF’s central abuse hotline that are either referred for
investigation or whose findings have been verified (30 percent); the number of children in out-of-home care (30 percent); and
contribution to a safe reduction in out-of-home care (10 percent).
39
Chapter 2019-115, L.O.F., General Appropriations Act FY 2019-2020, specific appropriation 326.
40
Supra note 14, pg. 5.
41
In 2022, the Florida Legislature addressed the funding inequities by appropriating $150 million in increases to core funding
to bring all CBCs up to 100 percent funding levels to ensure that each CBC has the tools to best serve the children and
families in their respective service area. [Supra note 40] Even with this $150 million increase in core funding, last fiscal
year, at the request of certain CBCs, the Legislature appropriated an addition $18.5 million dollars in Back of Bill funding to
address CBC funding deficits incurred in the 2022-23 fiscal year. [Supra note 25, Section 88.]
42
Supra note 14, pg. 5.
43
Section 409.996, F.S.
44
Section 409.996(21)(a), F.S.
45
Id. BILL: SB 536 Page 10
Identifying performance standards and metrics for DCF programs and all service providers.
The performance standards and metrics must be included in DCF’s strategic plan and must,
at minimum, have the same child welfare results-oriented performance standards.
Strengthening DCF’s data and analytic capabilities to identify systemic strengths and
deficiencies.
Recommending initiatives to correct any deficiencies.
Reporting consistent performance failures to DCF’s secretary for corrective action.
Engaging and collaborating with stakeholders to improve quality, efficiency, and
effectiveness of the DCF’s programs and services.
CBC contracts specify required performance measures that generally align with the state and
federal measures.
46
The DCF contract manager must periodically identify whether any gaps exist
between actual and required CBC performance. If contractor performance is insufficient, the
DCF may allow a reasonable time for correction. If the deficiencies are not resolved and there
are no extenuating circumstances, DCF must terminate the contract and it may not contract again
with the same provider during the next 24 months.
47
Section 409.996(1)(d), F.S., requires CBC contracts to include tiered interventions DCF may use
if CBCs fail to comply with contractual terms or in the event of performance deficiencies. Such
interventions include, but are not limited to:
Enhanced monitoring and reporting;
Corrective action plans;
Requirements for contracted providers to accept technical assistance and consultations from
the DCF;
Financial penalties that require a CBC to reallocate funds from administrative costs to direct
care for children; and
Early termination of contracts.
The DCF may provide technical assistance and consultation to CBCs as necessary for the
achievement of performance standings, including, but not limited to, providing additional
resources to assist a CBC to implement best practices or institute operation efficiencies.
48
The DCF may impose financial penalties on a CBC that does not comply with a DCF corrective
action plan.
49
The DCF must request corrective action on a provider when the delivery of
services is unacceptable or the provider is not in compliance with contractual terms and
conditions. The DCF can impose financial penalties for failure to comply with a corrective action
plan, unless the DCF determines that extenuating circumstances exist.
50
The imposed financial
46
November 2022 CBC Services Contract, Contract AJ500, pp. 40-44, available at:
https://facts.fldfs.com/Search/ContractDetail.aspx?AgencyId=600000&ContractId=AJ500&Tab=4.
47
Section 402.7305(3)(f), F.S.
48
Section 409.996(6), F.S.
49
Section 402.73(1), F.S.; See also R. 65C-29.001, F.A.C. All contracts entered into by the DCF for services shall contain a
notice that penalties shall be imposed for failure to implement or to make acceptable progress on corrective action plans
develop as a result of noncompliance, non-performance, or unacceptable performance with the terms and conditions of a
contract.
50
Rule 65C-29.001(3)(a), F.A.C. BILL: SB 536 Page 11
penalties are based on the severity of the noncompliance, nonperformance, or unacceptable
performance that generated the need for the corrective action plan.
51
A provider is prohibited
from paying a financial penalty with funds intended to be used, or which are budgeted, to
provide services to clients and cannot reduce the amount of quality of services delivered to
clients as a result of the imposition of a financial penalty.
52
The DCF may also petition a court for the appointment of a receiver for a CBC if:
The CBC is operating without a license as a child-placing agency;
The CBC has given less than 120 days’ notice of its intent to cease operations, and
arrangements have not been made for another CBC or DCF to continue the uninterrupted
provision of services;
The DCF determines that conditions exist in the CBC which present an imminent danger to
the health, safety, or welfare of the dependent children under the CBC’s care or supervision;
or
A CBC is struggling to meet its financial obligations to its employees, contractors, or foster
parents as supported by issuance of bad checks or the existence of delinquent obligations for
payment of salaries, utilities, or invoices for essential services or commodities.
53
Audits
Over the years, the Governor’s Office of Inspector General (OIG) and the DCF’s Office of
Inspector General (DCF OIG) have conducted audits due to concerns about CBC executive
compensation and related parties within the CBC structure.
On February 20, 2020, Florida’s Governor issued an executive order requiring the OIG to review
entities which had sole-source, public-private agreements with state agencies; received more than
50 percent or more of their budget from state and federal funds; and had compensation totals
exceeding federal or state law and regulations.
54
The OIG issued a report finding nine CBCs
55
51
Rule 65C-29.001(3)(b), F.A.C. The penalty, if imposed, shall not exceed ten percent of the total contract payments during
the period in which the corrective action plan has not been implemented or in which acceptable progress toward
implementation has not been made. Noncompliance that is determined to have a direct effect on client health and safety shall
result in the imposition of a ten percent penalty of the total contract payments during the period in which the corrective action
plan was has not been implemented or in which acceptable progress toward implementation has not been made.
Noncompliance involving the provision of service not having a direct effect on client health and safety shall result in the
imposition of a five percent penalty. Noncompliance as a result of unacceptable performance of administrative tasks shall
result in the imposition of a two percent penalty.
52
Rule 65C-29.001(5), F.A.C.
53
Section 409.994(1), F.S.
54
Executive Order Number 20-44. The executive order arose from the Florida Coalition Against Domestic Violence, Inc.,
using funds from the DCF to subsidize exorbitant executive leadership team compensation payouts.
55
Big Bend Community Based Care [d/b/a North West Florida Health Network (NWFHN)]; ChildNet, Inc.; Citrus Health
Network, Inc.; Community Based Care of Brevard, Inc.; Eckerd Youth Alternatives (d/b/a Eckerd Connects); Embrace
Families Community Based Care, Inc.; Florida Support Services of North Florida (FSSNF); Lakeview Center, Inc.; and Safe
Children Coalition, Inc. See Executive Office of the Governor, Office of the Chief Inspector General, Executive Order
Number 20-44, Data Compilation and Statutory Compensation Limit Review, CIG Number 2021-01-25-0017, June 30, 2021,
pg. vi, available at https://www.flgov.com/wp-content/uploads/2021/06/Final-Report-with-Responses-6.30.21-2.pdf. BILL: SB 536 Page 12
had compensation that potentially exceeded statutory limits.
56
The report also identified
additional areas of concern related to employees and related parties.
57
At the request of the OIG,
the DCF OIG conducted a review of the nine CBCs and identified two CBCs
58
for which
executive leadership compensation appeared to exceeded state limits.
59
On December 3, 2021, the DCF OIG issued a report focused on the creation of management
companies and other related parties within the CBCs.
60
The report found that “the purposes and
functions of these related organizations are not clear and pose risks to DCF fulfilling its
mission.”
61
Based on these findings, DCF contracted with two auditing firms to conduct financial
and operation examinations on all CBCs. The DCF released the findings for six of the CBCs on
August 22, 2023.
62
Key findings include:
Noncompliance with competitive procurement requirements for non-related and related
entities.
Overbilling related to PPP Loan Forgiveness.
Board approval of departmental deficit budgets.
Excessive compensation.
Establishment of sub-contracts to related parties that provide administrative support and
management services.
Related parties holding real estate that may have been purchased through the use of
state/federal funds or acquired based on the existence of those funding streams.
Another key finding was a significant overlap of key individuals serving on both CBC board of
directors and the board of a CBC related party. Additionally, CBC boards were not providing
high level fiduciary oversight of CBC operations and budgets. Certain executive leadership
positions were also integrally involved in related parties creating the potential for conflict of
interest in CBC contracts for services with such related parties.
63
The DCF took corrective action against the six CBCs because of the examinations’ findings.
Executive Compensation
CBC expenditures must comply with financial guidelines developed by DCF and with federal
and state law.
Current law prohibits a CBC administrative employee in excess of 150 percent of the annual
56
Executive Office of the Governor, Office of the Chief Inspector General, Executive Order Number 20-44, Data
Compilation and Statutory Compensation Limit Review, CIG Number 2021-01-25-0017, June 30, 2021, pg. vi., available at
https://www.flgov.com/wp-content/uploads/2021/06/Final-Report-with-Responses-6.30.21-2.pdf.
57
Id.
58
Eckerd Connects and Family Support Services of North Florida.
59
Supra note 56.
60
Florida Department of Children and Families, Office of Inspector General, Internal Audit, Project #A-1819DCF-043,
December 3, 2021, available at https://eds.myflfamilies.com/IGRPTS/AuditFileView.aspx.
61
Id.
62
Florida Department of Children and Families, Community-Based Care Lead Agencies Audit Findings, available at
https://www.myflfamilies.com/community-based-care-lead-agencies-audit-findings (last visited Jan. 12, 2024).
63
Id. BILL: SB 536 Page 13
salary paid to DCF’s secretary from state-appropriate funds, including state-appropriated federal
funds.
64
The law does not prohibit any party from providing cash that is not appropriated state
funds to a CBC administrative employee.
65
The Legislature codified the statutory salary cap into
law in 2015 after the Florida Auditor General found instances where salary payments, including
bonuses and leave balances, did not appear to be properly supported or calculated in accordance
with established CBC policy or state law.
66
CBCs must also comply with the federal salary rate limit because CBCs receive federal pass-
through awards from the DCF. Federal funds from the United States Health and Human Services
(HHS) may not be used to pay the salary, or any percentage of salary, to an individual at a rate in
excess of the established Executive Level II rate, currently $212,100.
67
Therefore, the maximum amount a CBC executive may be compensated with combined state and
federal funds is $315,000, of which only $212,100 can be federal funds.
68
The DCF is required to publish the compensation information for a CBC’s chief executive, chief
administrator, or other chief officer.
69
The following table includes the total compensation for
CBC executive officers as of the last annual reporting to DCF.
70
CBC Lead Agency Circuit CEO CFO COO
Northwest Florida Health Network (Big Bend) 1, 2,14 $563,842 $272,261 $217,194
Partnership for Strong Families 3, 8 $169,043 $116,277 $105,445
Family Support Services of North Florida 4 (Duval, Nassau)
$230,125 $146,978 Vacant
Family Support Services of Suncoast 6 (Pasco, Pinellas)
Kids First of Florida 4 (Clay) $113,656 $113,040 $101,656
St. Johns County Board of Commissioners 7 (St. Johns) N/A N/A N/A
Community Partnership for Children 7 (Flagler, Volusia, Putnam) $205,000 $114,500 $122,360
Safe Children Coalition 12 $220,000 $110,000 $145,000
Kids Central 5 $218,624 $177,786 $162,350
Embrace Families
9, 18
(Orange, Osceola, Seminole)
$332,023 $206,520 $254,635
Heartland for Children 10 $175,000 $130,000 $152,499
Brevard Family Partnerships 18 (Brevard) $157,757 $103,716 $129,024
Communities Connected for Kids 19 $169,161 $141,474 $145,757
64
Section 409.992(3), F.S.
65
Id.
66
Florida Auditor General, Department of Children and Families and Selected Community-Based Care Lead Agencies,
Oversight of Foster Care and Related Services, Operational Audit, Report No. 2015-156, March 2015, available at:
https://flauditor.gov/pages/pdf_files/2015-156.pdf.
67
Email from Sam Kerce, Legislative Affairs Director, Florida Department of Children and Families, re: Questions, on file
with the Senate Children, Families, and Elder Affairs Committee. See also Health Resources & Services Administration,
Grants Policy Bulletin, Legislative Mandates in Grants Management for FY 2023, Feb. 1, 2023, available at:
https://www.hrsa.gov/sites/default/files/hrsa/grants/manage/legislative-mandates-grants-management-2023.pdf.
68
Supra note 14, pg. 6.
69
Section 409.996(4)(a)1., F.S.
70
Supra note 10. BILL: SB 536 Page 14
CBC Lead Agency Circuit CEO CFO COO
ChildNet
15 (Palm Beach)
$266,492 $201,956 $212,630
17 (Broward)
Children’s Network of Southwest Florida 20 $209,830 $162,931 $163,513
Children’s Network of Hillsborough 13 $197,600 $166,400 $166,400
Citrus Family Care Network 11, 16 $263,800 $176,342 $203,059
Conflicts of Interest
The outsourced nature of DCF services, including child welfare, requires DCF to engage in
contract management functions focused on accountability. One area of possible lack of
accountability is conflicts of interest between a CBC member, officer, or relative and CBC
subcontractor.
Section 409.987(7), F.S., requires a process for disclosing and eliminating any transaction or
activity that could reasonably be construed to be a conflict of interest for a member, officer, or
relative of a CBC. This requirement applies to situations in which a CBC board member or an
officer, or a relative within the third degree of consanguinity by blood or marriage of a member
or officer:
Enters into a contract or other transaction for goods or services with the CBC.
Holds a direct or indirect interest
71
in a corporation, limited liability corporation, partnership,
limited liability partnership, or other business entity that conducts business with the CBC or
proposes to enter into a contract or other transaction with the CBC.
Knowingly obtains a direct or indirect personal, financial, professional, or other benefit as a
result of the relationship with a board member or officer, or relative of the board member or
officer of the CBC.
Any activity that involves a contract for goods and services, a purchase of any real or tangible
property, an agreement to engage with the CBC for a benefit, or an in-kind contribution, or if a
CBC board member or officer notifies the CBC board of a potential conflict of interest under an
existing CBC contract, the proposed activity or potential conflict of interest must be presented to
the CBC board for approval which includes:
Listing the proposed activity on the CBC board’s agenda for the next general or special
meeting;
Providing copies of all contracts and relevant documents related to the proposed transaction;
and
Giving the CBC board an opportunity to approve or disapprove the conflict of interest by a
vote of two-thirds of all other members present.
72
If the CBC board votes against the proposed activity, the CBC board member or officer must
notify the CBC board in writing of his or her intention, or the relative’s intention, not to pursue
the proposed activity or the CBC board member or officer must resign. If the CBC board finds a
CBC member or officer has violated the requirements for approval, the CBC board member or
71
”Indirect interest” means an interest in which legal title is held by another as trustee or other representative capacity, but
the equitable or beneficial interest is held by the person required to file under Ch. 112, Part III, F.S.
72
Section 409.987(7)(c), F.S. BILL: SB 536 Page 15
officer will be deemed removed from the CBC board before the next scheduled board meeting.
If the CBC board does not approve a conflict of interest, the parties to the activity where the
conflict of interest exist may opt to cancel the activity or resign from the CBC board or office
before the next scheduled board meeting.
73
A contract entered into between a CBC board member or officer, or relative of a CBC board
member or officer, and a CBC which has not been properly disclosed as a conflict of interest or
potential conflict of interest is voidable and terminates upon the filing of a written notice to the
CBC board of directors.
74
Findings from the most recent CBC financial and operational examinations included concerns of
significant overlap of key individuals serving on both a CBC board of directors and a related
party board and executive leadership positions being integrally involved in multiple related
parties creating the potential for conflict of interest in CBC contracts for services with related
parties.
75
Findings also noted a perception that CBC board of directors were not providing proper
fiduciary oversight of CBC operations and budgets.
76
Dependency System Process
Current law requires any person who knows or suspects that a child has been abused, abandoned,
or neglected to report such known or suspicion to the Florida’s central abuse hotline (Hotline).
77
A child protective investigation begins if the Hotline determines the allegations meet the
statutory definition of abuse, abandonment, or neglect. A child protective investigator
investigates the situation either immediately, or within 24 hours after the report is received,
depending on the nature of the allegation.
78
After conducting an investigation, if the child protective investigator determines that the child is
in need of protection and supervision that necessitates removal, the investigator may initiate
formal proceedings to remove the child from his or her home. When the DCF removes a child
from the home, a series of dependency court proceedings must occur before a child may be
adjudicated dependent.
79
The dependency court process is summarized in the table below.
The Dependency Court Process
Dependency
Proceeding
Description of Process
Controlling
Statute
Removal
A child protective investigation determines a child is unsafe
in his or her home and the child is removed.
s. 39.401, F.S.
Shelter Hearing
A shelter hearing occurs within 24 hours after removal. A
judge determines whether to keep the child out of home.
s. 39.401, F.S.
73
Section 409.987(7)(d)2., F.S.
74
Section 409.987(7)(f), F.S.
75
Supra note 60.
76
Id.
77
Section 39.201(1), F.S.
78
Section 39.101(2), F.S.
79
See s. 39.01(14), F.S., for the definition of “child who is found to be dependent.” BILL: SB 536 Page 16
The Dependency Court Process
Dependency
Proceeding
Description of Process
Controlling
Statute
Petition for
Dependency
A petition for dependency is filed within 21 days of the
shelter hearing. The petition seeks to find the child
dependent.
s. 39.501, F.S.
Arraignment
Hearing and Shelter
Review
An arraignment and shelter review occur within 28 days of
the shelter hearing. This allows the parent to admit, deny, or
consent to the allegations within the petition for dependency
and allows the court to review any shelter placement.
s. 39.506, F.S.
Adjudicatory Trial
An adjudicatory trial is held within 30 days of arraignment.
A judge determines if the child is dependent.
s. 39.507, F.S.
Disposition
Hearing
If the child is found dependent, disposition occurs with 15
days of arraignment or 30 days of adjudication. A judge
reviews and orders the case plan and appropriate placement
of the child.
s. 39.506, F.S.
s. 39.521, F.S.
Post-disposition
Hearing
The court may change temporary placement at a post-
disposition hearing any time after disposition but before the
child is residing in the permanent placement approved at a
permanency hearing.
s. 39.522, F.S.
Judicial Review
Hearings
The court must review the case plan and placement every 6
months, or upon motion of a party.
s. 39.701, F.S.
Petition for
Termination of
Parental Rights
Once the child has been out-of-home for 12 months, if DCF
determines that reunification is no longer a viable goal,
termination of parental rights is in the best interest of the
child, and other requirements are met, a petition for
termination of parental rights is filed.
s. 39.802, F.S.
s. 39.8055, F.S.
s. 39.806, F.S.
s. 39.810, F.S.
Advisory Hearing
An advisory hearing is set as soon as possible after all
parties have been served with the petition for termination of
parental rights. The hearing allows the parent to admit, deny,
or consent to the allegations within the petition for
termination of parental rights.
s. 39.808, F.S.
Adjudicatory
Hearing
An adjudicatory hearing is set within 45 days after the
advisory hearing. A judge determines whether to terminate
parental rights to the child.
s. 39.809, F.S.
Section 39.701, F.S., requires the court to hold judicial review hearings to review the status of
the child at least every six months until the child reaches permanency. The purpose of judicial
review is to ensure that any barriers to permanency are being addressed so that children can
achieve permanency as expeditiously as possible.
To make the judicial process efficient, the DCF’s children’s legal services’ attorneys and the
case managers must be prepared for court appearances and file the necessary documentation for
judicial reviews. At least 72 hours prior to a judicial review hearing, the DCF must file a copy of
the Judicial Review Social Study Report
80
with the court and provide a copy to all parties to the
80
The Judicial Review Social Study Report is a written report that contains all pertinent details relating to the child and
includes, but is not limited to, a description of the type of placement the child is in at the time of the hearing, including the
safety of the child and the continuing necessity for and appropriateness of the placement; documentation of the diligent BILL: SB 536 Page 17
child’s case and the foster parents or legal custodians.
81
If the DCF does not timely file the
report, the court may continue the judicial review hearing. To ensure all parties and the court can
appropriately prepare for hearings, the CBC and subcontractors are contractually required to
provide the reports to the DCF at least 10 days in advance of any judicial review hearing.
82
For
state fiscal year 2022-23, only 46 percent of the judicial reports provided by case management to
the DCF were timely.
83
As a result, 4,947 children had a judicial review hearing continued.
84
Continuances result in delays in permanency and can compromise federal funding, as federal law
requires the court to make certain judicial determinations every 12 months for ongoing
eligibility.
85
Competitive Solicitation for Commodities or Contractual Services
Section 287.057, F.S., requires state agencies that wish to procure commodities or contractual
services in excess of $35,000 to use a competitive solicitation process. A competitive solicitation
is the process of requesting and receiving two or more sealed bids, proposals, or replies
submitted by responsive vendors in accordance with the terms of a competitive process,
regardless of procurement method.
86
Depending on the type of contract and scope of work or
goods sought, an agency may use one of three procurement methods: invitation to bid,
87
request
for proposals,
88
or invitation to negotiate.
89
III. Effect of Proposed Changes:
Section 1 of the bill requires the DCF to reprocure CBC contracts every 5-years and allows for
the DCF to extend a CBC contract for up to 1-year based on need.
efforts made by all parties to the case plan to comply with each applicable provision of the plan; the amount of fees assessed
and collected during the period of time being reported; the services provided to the foster family or caregiver in an effort to
address the needs of the child as indicated in the case plan; a statement regarding how the parent(s) have or have not
complied with the case plan; a statement from the foster parent or caregiver providing any material evidence concerning the
well-being of the child, the impact of any services provided to the child, the working relationship between the parents and
caregivers; and the return of the child to the parents; a statement concerning the frequency, duration, and results of the parent-
child visitation, if any, and the agency and caregiver recommendations for an expansion or restriction of future visitation; the
number of times a child has been removed from his or her home and placed elsewhere, the number and types of placements
that have occurred, and the reason for the changes in placement; the number of times a child’s educational placement has
been changed, the number of types of educational placements which have occurred, and the reason for any change in
placement; if the child has reached 13 years of age but is not yet 18 years of age, a statement from the caregiver on the
progress the child has made in acquiring independent living skills; copies of all medical, psychological, and educational
records that support the terms of the case plan and that have been produced concerning the parents or any caregiver since the
last judicial review hearing; and copies of the current health, mental health, and educational records.
81
Section 39.701(1)(b), F.S.
82
November 2022 CBC Services Contract, Contract AJ500, pg. 71.
83
Supra note 14 pg. 4.
84
Id.
85
45 CFR s. 1356.21(b)(2).
86
Section 287.012(6), F.S.
87
Section 287.057(1)(a), F.S.
88
Section 287.057(1)(b), F.S.
89
Section 287.057(1)(c), F.S. BILL: SB 536 Page 18
The bill requires a CBC board of directors to ensure accountability and transparency of the
system of care, which includes fiduciary oversight to prevent conflicts of interest, promote
accountability and transparency, and protect state and federal funding from misuse.
The bill expands those who may have a conflict of interest to include a CBC employee and
creates a definition for “related party” to conform to changes made in this section.
The bill removes obsolete language related to conflicts of interest; instead, requiring a CBC to
disclose to the DCF any known and potential conflicts of interest and further requires the CBC
board of directors to disclose to the DCF any actual or potential conflicts of interest due to their
responsibility for all activity and contractual obligations entered by the CBC. This duty to
disclose is ongoing for the life of each contract or relevant activities.
The bill prohibits CBCs from entering into a contract or be a party to any transaction with any
conflict of interest, including for the provision of management or administrative services or
oversight with related parties, which includes any:
Entity where any director or executive of such entity is also directly or indirectly related to,
or has a direct or indirect financial or other material interest in, the CBC.
Subsidiary, parent entity, associate firm, joint venture, or any entity that is controlled,
influenced, or managed by another entity or any individual related to such entity
Individual who is, or was within the immediately preceding 36 months, an executive officer
of board member.
The bill requires CBCs to submit to the DCF for review and approval any proposed contract for
allowable services involving related parties prior to contract award and execution.
The bill creates civil penalties in the amount of $5,000 per occurrence when a CBC does not
disclose a known and potential conflict of interest
The bill creates civil penalties when a CBC procures a contract that was a conflict of interest and
not disclosed to the DCF to include $50,000 for a first offense and $100,000 for a second or
subsequent offense. The bill requires any contract procured in violation of the disclosure
requirements to be reprocured.
These provisions all focus on the corporate function and business operations of CBCs, clarifying
and detailing requirements around reporting, conflicts of interest, board of director functions, and
financial penalties.
Section 2 of the bill requires CBCs to comply with regular, independent auditing of the CBC’s
financial activities, including any requests for records associated with such financial audits
within the timeframe established by the DCF or its contracted vendors. It also requires the
financial audits to be provided to the community alliance in the CBC’s services area rather than
the financial information being provided to the community alliance.
The bill creates timeframes for the timely submission of dependency proceeding documents by
the CBC to the DCF to include: BILL: SB 536 Page 19
All documents prepared and kept by the CBC must be made available at the request of the
DCF’s attorneys within one business day.
DCF’s attorneys and the case manager must confer on any case before each court hearing.
Specifically:
o For dependency and termination of parental rights hearings, the case manager must
confer with the DCF attorney no fewer than three days before the hearing.
o For judicial review hearings, the case manager must confer with the DCF attorney no
fewer than three days before the hearing if the DCF attorney receives the judicial review
social study report 10 business days before the hearing.
The bill requires any subcontract in excess of the simplified acquisition threshold specified in
federal rule (2 C.F.R. part 200) must comply with the competitive procurement process in Ch.
287, F.S.
The bill prohibits a CBC from providing more than 35 percent of direct child welfare services by
removing a CBC’s ability to demonstration a justification of need to exceed the threshold.
The bill expands the data that a CBC must publish on its website to include:
The number of unlicensed placements for the previous month;
The percentages and trends for foster parent and group home recruitment and licensure for
the previous month;
The percentage of families being served through family support, in-home, and out-of-home
services for the previous month; and
The percentage of cases that converted from nonjudicial to judicial for the previous month.
These provisions focus on the business operations of CBCs and tighten requirements around
procurement and provision of services, transparency, and the procurement of services.
Section 3 of the bill requires each CBC to submit a detailed spending plan, approved by its board
of directors, to the DCF for all projected expenditures for the fiscal year. The spending plan must
demonstrate that core expenditures will not exceed the appropriated amount of core services
funds and that the plan reserves a certain amount of funding for unanticipated expenses. The bill
requires CBCs to receive its statutory 2-month advance but prohibits the DCF from releasing
additional funds until it has reviewed and approved the CBC’s spending plan. The bill requires a
CBC to submit a revised spending plan to the DCF if, at any point during the fiscal year, there’s
a projected end-of-year deficit. The revised spending plan must reflect actions taken by the CBC
to remain within appropriated core services fund amounts for the remainder of the fiscal year.
Section 4 of the bill creates a new funding model for the allocation of funds from the DCF to the
CBCs. The language removes the current equity-funding model and requires an actuarially
sound, tiered payment model intended to achieve a stable payment model that adjusts to
workload and incentivizes prevention, family preservation, and permanency. The bill creates a
tiered payment model for the allocation of core funds to CBCs that includes:
Tier 1 provides operational base costs, including administrative and other expenses that do
not vary based on the number of children and families served. Tier 1 payments may vary by
geographic catchment area and costs of living differences. The bill requires the DCF to BILL: SB 536 Page 20
establish and annually update Tier 1 payment rates to maintain cost expectations aligned with
the population served, services provided, and environment. The bill does not redefine or
change what core funding is, only the frequency and method of calculation.
Tier 2 is a per-child, per month payment designed to provide funding for CBC’s expenses
that vary based on the number of children served for a particular month. The per-child, per
month payment rate blends out-of-home rates and in-home rates specific to each CBC to
create a financial incentive to CBCs to provide services in the least restrictive safe
placement. The bill requires the DCF to establish and annually update Tier 2 payment rates to
maintain a cost expectation that is aligned with the population served, services provided, and
environment.
Tier 3 provides a financial incentive payment that the DCF must establish to reward CBCs
that achieve performance measures aligned with the DCF’s goals of prevention, family
preservation, and permanency.
The bill requires the DCF to submit a report the Governor, the Senate President, and the Speaker
of the House of Representatives by December 1 each year that includes:
Each CBC’s actual performance in attaining the previous fiscal year’s targets;
Recommendations for adjustments to CBC funding; and
Adjustments to the tiered payment model, if necessary.
The bill requires the DCF to allocate funding based on the newly created actuarially-sound,
tiered based model, unless otherwise specified by proviso in the General Appropriations Act.
Section 5 of the bill requires CBCs to competitively procure all contracts consistent with the
simplified acquisition threshold in federal rule (2 C.F.R. part 200). It also creates financial
penalties or sanctions for noncompliance with applicable local, state, or federal law for the
procurement of commodities or contractual services. The bill requires the DCF to establish and
incorporate the financial penalties or sanctions into the CBC contracts.
The bill requires CBCs to comply with purchasing practices for professional services, including
engineering or construction design, in s. 287.055, F.S. It also requires the DCF to retain all rights
to and ownership of any real property procured by the CBC upon termination of the CBC’s
contract.
The bill limits the compensation a CBC administrative employee may receive to a capped total
amount, 150 percent of the annual salary paid to the secretary of the DCF, regardless of the
number of contracts a CBC executes with the DCF.
This is currently $315,000 of combined state
and federal funds. Additionally, the language makes clear that any portion of that $315,000 that
is funded by federal grant may not exceed the Executive Level II salary level set by the federal
Health Resources and Services Administration.
90
Section 6 of the bill expands the situations in which the DCF can petition the court to initiate
receivership of a CBC. The bill allows the DCF to petition the court for receivership when the
DCF’s secretary determines that conditions exist within the CBC that present a danger (rather
90
This is currently $213,000; Supra note 67 BILL: SB 536 Page 21
than an imminent danger as in current law) to the health, safety, or welfare of the dependent
children in the CBC’s care or supervision. It allows a written certification by the secretary to
serve as prima facie evidence that such conditions exist. Further, it expands when the DCF may
petition for receivership from when a CBC cannot meet financial obligations to also include
when a CBC is unlikely to meet financial obligations.
Section 7 of the bill creates flexibility for the DCF to take action against a CBC by removing a
tiered intervention and graduated penalties process and instead require contractual actions and
financial penalties for performance deficiencies. The bill requires the DCF to include the
following in CBC contracts:
Contractual actions for failure to comply with contract terms or in the event of performance
deficiencies, as determined by the DCF. Such interventions and penalties include, but are not
limited to:
o Corrective action plans.
o Requirements to accept technical assistance and consultation from the DCF.
o Financial penalties, including liquidated damages which the DCF will be solely
responsible for determining the monetary value of, that require the CBC to direct, rather
than reallocate, funds from administrative costs to the DCF. The bill requires the DCF to
use the collected funds to support service delivery of quality improvement activities for
children in the CBC’s care. The bill allows the penalties to be imposed for failure to
provide timely, sufficient resolution of deficiencies resulting in a corrective action plan or
other performance improvement plan issued by the DCF.
o Payment of sanctions or disincentives to the DCF for failure to comply with contractual
obligations. The bill requires CBC contracts to include, at a minimum, sanctions or
disincentives for failure to comply with:
A corrective action plan;
A child placement agreement that includes all required safety and care precautions and
behavior management plans needed to keep the children and others safe;
State and federal law requirements for the procurement of commodities or contractual
services;
State and federal law requirements for related parties which address conflicts of interest;
Disclosure or reporting of any conflicts of interest of the DCF;
Provision of timely data and information as requested by the DCF or its contracted vendors;
and
Maintenance of an adequate network of placement arrangements based on the needs of the
children in the CBC’s care, including placement locations that are licensed or that provide an
authorized setting or stable nightly placements.
Section 8 of the bill removes the annual performance report on the results-oriented
accountability program that must be submitted to the Governor, Senate President, and Speaker of
the House of Representatives by November 15 of each year.
Section 9 of the bill removes the requirement that a CBC must provide relevant information on
how it is meeting the needs of fathers to the DCF in the annual performance report on the results-
oriented accountability program.
BILL: SB 536 Page 22
Section 10 provides an effective date of July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None identified.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
There is an indeterminate fiscal impact on the CBCs due to the funding model changes
and financial penalties included in the bill.
Funding Model
The CBCs will experience an adjustment in state funding levels due to the funding model
changes made by the bill; some CBCs will have an increase in funding, while others will
have a decrease in funding. However, over time, the state could potentially experience a
positive fiscal impact due to the funding model change if the proper incentives built into
the new model increase prevention and in-home services and ultimately decrease the
amount of funding spent on costly out-of-home care services.
Financial Penalties
A CBC that fails to disclose known or actual conflicts of interest or does not comply with
other requirements mandated by the bill will experience a negative fiscal impact in the
event of the DCF imposing the financial penalties authorized by the bill. BILL: SB 536 Page 23
C. Government Sector Impact:
Current funding levels to the DCF will not need to change based on the language in the
bill. However, over time, the cost of funding the child welfare system of care may
decrease if the new actuarially sound funding model properly promotes and increases the
use of prevention and in-home services.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends sections 409.987, 409.988, 409.990, 409.991, 409.992, 409.994,
409.996, 409.997 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.