Florida Senate - 2024 SB 536 By Senator Garcia 36-00994-24 2024536__ Page 1 of 24 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to community-based child welfare 2 agencies; amending s. 409.987, F.S.; revising 3 requirements for contracts the Department of Children 4 and Families has with community-based care lead 5 agencies; revising requirements for an entity to serve 6 as a lead agency; revising the definition of the term 7 “conflict of interest”; defining the term “related 8 party”; requiring the lead agency's board of directors 9 to disclose any known or potential conflicts of 10 interest; prohibiting a lead agency from entering into 11 a contract or being a party to a transaction that 12 creates a conflict of interest; requiring a lead 13 agency to submit to the department for approval any 14 contract involving related parties; imposing civil 15 penalties for lead agency contracts having undisclosed 16 conflicts of interest; amending s. 409.988, F.S.; 17 revising community-based care lead agency duties; 18 making technical changes; amending s. 409.990, F.S.; 19 requiring a lead agency to submit to the department a 20 spending plan approved by its board of directors which 21 satisfies certain requirements before funds may be 22 released; specifying requirements for the spending 23 plan; requiring the lead agency to submit a revised 24 spending plan to the department if the lead agency’s 25 actual expenditures project an end-of-year deficit; 26 amending s. 409.991, F.S.; revising the definition of 27 the term “core services funds”; deleting

definitions; 28 requiring that the allocation of core services funds 29

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 2 of 24 CODING: Words stricken are deletions; words underlined are additions. be based on a three-tiered payment model; providing 30 specifications for the payment model; requiring that 31 reports be submitted annually to the Governor and the 32 Legislature by a specified date; requiring that all 33 funding for core services be based on the department’s 34 methodology; amending s. 409.992, F.S.; revising 35 requirements for lead agency practices in the 36 procurement of commodities and contractual services; 37 requiring the department to impose certain penalties 38 for a lead agency’s noncompliance with applicable 39 procurement law; requiring lead agencies to comply 40 with established purchasing practices for the 41 procurement of real property and professional 42 services; revising certain limitations on the salaries 43 of community-based care lead agency administrative 44 employees and the amount of federal grant funds that 45 may be used for executive salaries; amending s. 46 409.994, F.S.; authorizing the department to petition 47 a court for the appointment of a receiver if the 48 secretary of the department determines that certain 49 conditions endanger the dependent children under a 50 lead agency’s care; providing that a written 51 certification by the secretary of the department of 52 the dangerous conditions satisfies certain evidentiary 53 requirements; authorizing the department to petition 54 the court for the appointment of a receiver if the 55 lead agency is unlikely to meet its current financial 56 obligations; amending s. 409.996, F.S.; revising 57 requirements for contracts between the department and 58

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 3 of 24 CODING: Words stricken are deletions; words underlined are additions. lead agencies; revising the actions the department may 59 take under certain circumstances; amending s. 409.997, 60 F.S.; deleting the requirement for an annual 61 performance report; amending s. 409.988, F.S.; 62 conforming a provision to changes made by the act; 63 providing an effective date. 64 65 Be It Enacted by the Legislature of the State of Florida: 66 67

Section 1. Subsections (3) and (4) and paragraphs (

a) and 68 (

b) of subsection (7) of

section 409.987, Florida Statutes, are 69 amended, and paragraphs (

g) and (

h) are added to subsection (7) 70 of that section, to read: 71 409.987 Lead agency procurement; boards; conflicts of 72 interest.— 73

(3) Notwithstanding s. 287.057, the department shall use 5-74 year contracts with lead agencies. The 5-year contract must be 75 reprocured at the end of each 5-year contract term. The contract 76 may be extended at the discretion of the department for up to 1 77 year, based on department needs. 78

(4) In order to serve as a lead agency, an entity must: 79 (

a) Be organized as a Florida corporation or a governmental 80 entity. 81 (

b) Be governed by a board of directors or a board 82 committee composed of board members. Board members shall provide 83 oversight and ensure accountability and transparency for the 84 system of care. The board of directors shall provide fiduciary 85 oversight to prevent conflicts of interest, promote 86 accountability and transparency, and protect state and federal 87

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 4 of 24 CODING: Words stricken are deletions; words underlined are additions. funding from misuse. The membership of the board of directors or 88 board committee must be described in the bylaws or articles of 89 incorporation of each lead agency, which must provide that at 90 least 75 percent of the membership of the board of directors or 91 board committee must be composed consist of persons residing in 92 this state, and at least 51 percent of the state residents on 93 the board of directors must reside within the service area of 94 the lead agency.

However, for procurements of lead agency 95 contracts initiated on or after July 1, 2014: 96 1. At least 75 percent of the membership of the board of 97 directors must be composed consist of persons residing in this 98 state, and at least 51 percent of the membership of the board of 99 directors must be composed consist of persons residing within 100 the service area of the lead agency. If a board committee 101 governs the lead agency, 100 percent of its membership must be 102 composed consist of persons residing within the service area of 103 the lead agency. 104 2.

The powers of the board of directors or board committee 105 include, but are not limited to, approving the lead agency’s 106 budget and setting the lead agency’s operational policy and 107 procedures. A board of directors must additionally have the 108 power to hire the lead agency’s executive director, unless a 109 board committee governs the lead agency, in which case the board 110 committee must have the power to confirm the selection of the 111 lead agency’s executive director. 112 (

c) Demonstrate financial responsibility through an 113 organized plan for regular fiscal audits and the posting of a 114 performance bond. 115 (7)(

a) As used in this subsection, the term: 116

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 5 of 24 CODING: Words stricken are deletions; words underlined are additions. 1. “Activity” includes, but is not limited to, a contract 117 for goods and services, a contract for the purchase of any real 118 or tangible property, or an agreement to engage with a lead 119 agency for the benefit of a third party in exchange for an 120 interest in real or tangible property, a monetary benefit, or an 121 in-kind contribution. 122 2. “Conflict of interest” means when an employee, a board 123 member or an officer, or a relative of a board member or an 124 officer, of a lead agency does any of the following: 125 a.

Enters into a contract or other transaction for goods or 126 services with the lead agency. 127 b. Holds a direct or indirect interest in a corporation, 128 limited liability corporation, partnership, limited liability 129 partnership, or other business entity that conducts business 130 with the lead agency or proposes to enter into a contract or 131 other transaction with the lead agency. For purposes of this 132 paragraph, the term “indirect interest” has the same meaning as 133 in s. 112.312. 134 c.

Knowingly obtains a direct or indirect personal, 135 financial, professional, or other benefit as a result of the 136 relationship of such employee, board member or officer, or 137 relative of the board member or officer, with the lead agency. 138 For purposes of this paragraph, the term “benefit” does not 139 include per diem and travel expenses paid or reimbursed to board 140 members or officers of the lead agency in connection with their 141 service on the board. 142 3. “Related party” means any entity of which a director or 143 an executive of the entity is also directly or indirectly 144 related to, or has a direct or indirect financial or other 145

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 6 of 24 CODING: Words stricken are deletions; words underlined are additions. material interest in, the lead agency.

The term also includes 146 any subsidiary, parent entity, associate firm, or joint venture, 147 or any entity that is controlled, influenced, or managed by 148 another entity or an individual related to such entity, 149 including an individual who is, or was within the immediately 150 preceding 3 years, an executive officer or a board member of the 151 entity. 152 4.3. “Relative” means a relative within the third degree of 153 consanguinity by blood or marriage. 154 (b)1.

The lead agency’s board of directors is responsible 155 for all activity and contractual obligations of the lead agency 156 and must disclose to the department any known or potential 157 conflicts of interest.

This duty to disclose is ongoing for the 158 duration of each contract or relevant activity of the lead 159 agency For any activity that is presented to the board of a lead 160 agency for its initial consideration and approval after July 1, 161 2021, or any activity that involves a contract that is being 162 considered for renewal on or after July 1, 2021, but before 163 January 1, 2022, a board member or an officer of a lead agency 164 shall disclose to the board any activity that may reasonably be 165 construed to be a conflict of interest before such activity is 166 initially considered and approved or a contract is renewed by 167 the board.

A rebuttable presumption of a conflict of interest 168 exists if the activity was acted on by the board without prior 169 notice as required under paragraph (c). 170 2. A lead agency may not enter into a contract or be a 171 party to any transaction that creates a conflict of interest. 172 The lead agency must submit to the department, for their review 173 and approval, any proposed contract for allowable services 174

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 7 of 24 CODING: Words stricken are deletions; words underlined are additions. involving related parties, prior to contract award and 175 execution. For contracts with a lead agency which are in 176 existence on July 1, 2021, and are not subject to renewal before 177 January 1, 2022, a board member or an officer of the lead agency 178 shall disclose to the board any activity that may reasonably be 179 construed to be a conflict of interest under this

section by 180 December 31, 2021. 181 (

g) Civil penalties in the amount of $5,000 per occurrence 182 shall be imposed for each known and potential conflict of 183 interest which is not disclosed to the department. 184 (

h) A contract procured for which there was a conflict of 185 interest that was not disclosed shall result in: 186 1. A civil penalty in the amount of $50,000 for a first 187 offense. 188 2. A civil penalty in the amount of $100,000 for a second 189 or subsequent offense. 190 (

i) Any contract procured in this manner must be 191 reprocured. 192

Section 2. Subsection (1) of

section 409.988, Florida 193 Statutes, is amended to read: 194 409.988 Community-based care lead agency duties; general 195 provisions.— 196

(1) DUTIES.—A lead agency: 197 (a)1. Shall serve: 198 a. All children referred as a result of a report of abuse, 199 neglect, or abandonment to the department’s central abuse 200 hotline, including, but not limited to, children who are the 201 subject of verified reports and children who are not the subject 202 of verified reports but who are at moderate to extremely high 203

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 8 of 24 CODING: Words stricken are deletions; words underlined are additions. risk of abuse, neglect, or abandonment, as determined using the 204 department’s risk assessment instrument, regardless of the level 205 of funding allocated to the lead agency by the state if all 206 related funding is transferred. 207 b. Children who were adopted from the child welfare system 208 and whose families require postadoption supports. 209 2.

May also serve children who have not been the subject of 210 reports of abuse, neglect, or abandonment, but who are at risk 211 of abuse, neglect, or abandonment, to prevent their entry into 212 the child protection and child welfare system. 213 (

b) Shall provide accurate and timely information necessary 214 for oversight by the department pursuant to the child welfare 215 results-oriented accountability system required by s. 409.997. 216 (

c) Shall follow the financial guidelines developed by the 217 department and shall comply with regular, independent auditing 218 of its financial activities, including any requests for records 219 associated with such financial audits within the timeframe 220 established by the department or its contracted vendors provide 221 for a regular independent auditing of its financial activities. 222 The results of the financial audit must Such financial 223 information shall be provided to the community alliance 224 established under s. 20.19(5). 225 (

d) Shall prepare all judicial reviews, case plans, and 226 other reports necessary for court hearings for dependent 227 children, except those related to the investigation of a 228 referral from the department’s child abuse hotline, and shall 229 submit these documents timely to the department’s attorneys for 230 review, any necessary revision, and filing with the court. The 231 lead agency shall make the necessary staff available to 232

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 9 of 24 CODING: Words stricken are deletions; words underlined are additions. department attorneys for preparation for dependency proceedings, 233 and shall provide testimony and other evidence required for 234 dependency court proceedings in coordination with the 235 department’s attorneys. This duty does not include the 236 preparation of legal pleadings or other legal documents, which 237 remain the responsibility of the department.

Timely submission 238 of documents by the lead agency to the department’s attorneys 239 includes the following parameters: 240 1. All documents prepared and kept by the lead agency must 241 be made available at the request of the department’s attorneys 242 within 1 business day. 243 2. Before each court hearing, the department’s attorneys 244 and the case manager must confer on any case to be heard in 245 court. For dependency and termination of parental rights 246 adjudicatory hearings, the department’s attorneys and the case 247 manager must confer no fewer than 3 days before the hearing. 248 3.

For judicial review hearings, the department’s attorneys 249 and the case manager must confer no fewer than 3 days before the 250 hearing, provided that the attorneys receive from the case 251 manager the judicial review social study report 10 business days 252 before the hearing. 253 (

e) Shall ensure that all individuals providing care for 254 dependent children receive: 255 1. Appropriate training and meet the minimum employment 256 standards established by the department. Appropriate training 257 shall include, but is not limited to, training on the 258 recognition of and responses to head trauma and brain injury in 259 a child under 6 years of age developed by the Child Protection 260 Team Program within the Department of Health. 261

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 10 of 24 CODING: Words stricken are deletions; words underlined are additions. 2. Contact information for the local mobile response team 262 established under s. 394.495. 263 (

f) Shall maintain eligibility to receive all available 264 federal child welfare funds. 265 (

g) Shall adhere to all best child welfare practices under 266 ss. 39.4087, 39.523, 409.1415, and 409.145. 267 (

h) Shall maintain written agreements with Healthy Families 268 Florida lead entities in its service area pursuant to s. 409.153 269 to promote cooperative planning for the provision of prevention 270 and intervention services. 271 (

i) Shall comply with federal and state statutory 272 requirements and agency rules in the provision of contractual 273 services. Any subcontract in excess of the simplified 274 acquisition threshold specified in 2 C.F.R.

part 200 must comply 275 with the competitive procurement process in

chapter 287. 276 (

j) May subcontract for the provision of services, 277 excluding administrative and management functions, required by 278 the contract with the lead agency and the department; however, 279 the subcontracts must specify how the provider will contribute 280 to the lead agency meeting the performance standards established 281 pursuant to the child welfare results-oriented accountability 282 system required by s. 409.997.

The lead agency shall directly 283 provide no more than 35 percent of all child welfare services 284 provided unless it can demonstrate a need, within the lead 285 agency’s geographic service area, to exceed this threshold. The 286 local community alliance in the geographic service area in which 287 the lead agency is seeking to exceed the threshold shall review 288 the lead agency’s justification for need and recommend to the 289 department whether the department should approve or deny the 290

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 11 of 24 CODING: Words stricken are deletions; words underlined are additions. lead agency’s request for an exemption from the services 291 threshold. If there is not a community alliance operating in the 292 geographic service area in which the lead agency is seeking to 293 exceed the threshold, such review and recommendation shall be 294 made by representatives of local stakeholders, including at 295 least one representative from each of the following: 296 1. The department. 297 2. The county government. 298 3. The school district. 299 4.

The county United Way. 300 5. The county sheriff’s office. 301 6. The circuit court corresponding to the county. 302 7. The county children’s board, if one exists. 303 (

k) Shall publish on its website by the 15th day of each 304 month at a minimum the data specified in subparagraphs 1.-9. 1.-305 5., calculated using a standard methodology determined by the 306 department, for the preceding calendar month regarding its case 307 management services. The following information must shall be 308 reported by each individual subcontracted case management 309 provider, by the lead agency, if the lead agency provides case 310 management services, and in total for all case management 311 services subcontracted or directly provided by the lead agency: 312 1.

The average caseload of case managers, including only 313 filled positions; 314 2. The total number and percentage of case managers who 315 have 25 or more cases on their caseloads; 316 3. The turnover rate for case managers and case management 317 supervisors for the previous 12 months; 318 4. The percentage of required home visits completed; and 319

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 12 of 24 CODING: Words stricken are deletions; words underlined are additions. 5. Performance on outcome measures required pursuant to s. 320 409.997 for the previous 12 months;. 321 6. The number of unlicensed placements for the previous 322 month; 323 7. The percentages and trends for foster parent and group 324 home recruitment and licensure for the previous month; 325 8. The percentage of families being served through family 326 support, in-home, and out-of-home services for the previous 327 month; and 328 9. The percentage of cases that converted from nonjudicial 329 to judicial for the previous month. 330 (

l) Shall identify an employee to serve as a liaison with 331 the community alliance and community-based and faith-based 332 organizations interested in collaborating with the lead agency 333 or offering services or other assistance on a volunteer basis to 334 the children and families served by the lead agency. The lead 335 agency shall ensure that appropriate lead agency staff and 336 subcontractors, including, but not limited to, case managers, 337 are informed of the specific services or assistance available 338 from community-based and faith-based organizations. 339 (

m) Shall include the statement “...(community-based care 340 lead agency name)... is a community-based care lead agency 341 contracted with the Department of Children and Families” on its 342 website and, at a minimum, in its promotional literature, lead 343 agency-created documents and forms provided to families served 344 by the lead agency, business cards, and stationery letterhead. 345 (

n) Shall ensure that it is addressing the unique needs of 346 the fathers of children who are served by the lead agency. 347 1. The lead agency shall: 348

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 13 of 24 CODING: Words stricken are deletions; words underlined are additions. a. Conduct an initial assessment of its engagement with 349 such fathers and provision of and referral to father-oriented 350 services. 351 b. Create an action plan to address any gaps identified 352 through the assessment and implement the action plan. 353 c.

Employ a father-engagement specialist to, at a minimum, 354 build relationships with fathers, help identify their needs, 355 assist them in accessing services, and communicate with the lead 356 agency about the challenges faced by these fathers and how to 357 appropriately meet their unique needs. The lead agency shall 358 prioritize individuals who have faced experiences similar to the 359 fathers who are being served by the lead agency for selection as 360 a father-engagement specialist. 361 2.

The department shall annually review how the lead agency 362 is meeting the needs of fathers, including, at a minimum, how 363 the lead agency is helping fathers establish positive, stable 364 relationships with their children and assisting fathers in 365 receiving needed services. The lead agency shall provide any 366 relevant information on how it is meeting the needs of these 367 fathers to the department, which must be included in the report 368 required under s. 409.997. 369

Section 3. Present subsections (2) through (8) of

section 370 409.990, Florida Statutes, are redesignated as subsections (3) 371 through (9), respectively, and a new subsection (2) is added to 372 that section, to read: 373 409.990 Funding for lead agencies.—A contract established 374 between the department and a lead agency must be funded by a 375 grant of general revenue, other applicable state funds, or 376 applicable federal funding sources. 377

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(2) Before the release of funds, each lead agency shall 378 submit a detailed spending plan, approved by its board of 379 directors, to the department for all projected expenditures for 380 the fiscal year. The spending plan must demonstrate that core 381 expenditures will not exceed the appropriated amount of core 382 services funds and that the plan reserves a certain amount of 383 funding for unanticipated expenses. Each lead agency must 384 receive its statutory 2-month advance; however, the department 385 may not release additional funds until it has reviewed and 386 approved the lead agency’s spending plan.

At any point during 387 the year, if a lead agency’s actual expenditures project an end-388 of-year deficit, the lead agency must submit a revised spending 389 plan to the department. The revised spending plan must reflect 390 actions the lead agency will take to remain within appropriated 391 core services fund amounts for the remainder of the fiscal year. 392

Section

Section 409.991, Florida Statutes, is amended to 393 read: 394 409.991 Allocation of funds for community-based care lead 395 agencies.— 396

(1) As used in this section, the term: 397 (a) “core services funds” means all funds allocated to 398 community-based care lead agencies operating under contract with 399 the department pursuant to s. 409.987. The term does not include 400 any of, with the following exceptions: 401 (a)1. Funds appropriated for independent living services.; 402 (b)2. Funds appropriated for maintenance adoption 403 subsidies.; 404 (c)3. Funds allocated by the department for child 405 protective investigation service investigations training.; 406

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 15 of 24 CODING: Words stricken are deletions; words underlined are additions. (d)4. Nonrecurring funds.; 407 (e)5. Designated mental health wrap-around service services 408 funds.; 409 (f)6. Funds for special projects for a designated 410 community-based care lead agency.; and 411 (g)7. Funds appropriated for the Guardianship Assistance 412 Program established under s. 39.6225. 413 (b) “Equity allocation model” means an allocation model 414 that uses the following factors: 415 1. Proportion of the child population; 416 2.

Proportion of child abuse hotline workload; and 417 3. Proportion of children in care. 418 (c) “Proportion of child population” means the proportion 419 of children up to 18 years of age during the previous calendar 420 year in the geographic area served by the community-based care 421 lead agency. 422 (d) “Proportion of child abuse hotline workload” means the 423 weighted average of the following subcomponents: 424 1.

The average number of initial and additional child abuse 425 reports received during the month for the most recent 12 months 426 based on child protective investigations trend reports as 427 determined by the department. This subcomponent shall be 428 weighted as 20 percent of the factor. 429 2. The average count of children in investigations in the 430 most recent 12 months based on child protective investigations 431 trend reports as determined by the department. This subcomponent 432 shall be weighted as 40 percent of the factor. 433 3.

The average count of children in investigations with a 434 most serious finding of verified abuse in the most recent 12 435

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 16 of 24 CODING: Words stricken are deletions; words underlined are additions. months based on child protective investigations trend reports as 436 determined by the department.

This subcomponent shall be 437 weighted as 40 percent of the factor. 438 (e) “Proportion of children in care” means the proportion 439 of the number of children in care receiving in-home services 440 over the most recent 12-month period, the number of children 441 whose families are receiving family support services over the 442 most recent 12-month period, and the number of children who have 443 entered into out-of-home care with a case management overlay 444 during the most recent 24-month period. This subcomponent shall 445 be weighted as follows: 446 1.

Fifteen percent shall be based on children whose 447 families are receiving family support services. 448 2. Fifty-five percent shall be based on children in out-of-449 home care. 450 3. Thirty percent shall be based on children in in-home 451 care. 452

(2) Allocation of core services funds must be based on an 453 actuarially sound, tiered payment model. The tiered model’s 454 purpose is to achieve the overarching goals of a stable payment 455 model that adjusts to workload and incentivizes prevention, 456 family preservation, and permanency. 457 (

a) Tier 1 provides operational base costs, including 458 administrative and other expenses that do not vary based on the 459 number of children and families served. Tier 1 payments may vary 460 by geographic catchment area and cost of living differences. The 461 department shall establish and annually update Tier 1 payment 462 rates to maintain cost expectations that are aligned with the 463 population served, services provided, and environment. 464

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b) Tier 2 is a per-child, per-month payment designed to 465 provide funding for lead agencies’ expenses that vary based on 466 the number of children served for a particular month. The 467 payment rate blends out-of-home rates and in-home rates specific 468 to each lead agency to create a rate that provides a financial 469 incentive to lead agencies to provide services in the least 470 restrictive safe placement. The department shall establish and 471 annually update Tier 2 payment rates to maintain cost 472 expectations that are aligned with the population served, 473 services provided, and environment. Tier 2 rates must be set 474 annually. 475 (

c) Tier 3 provides financial incentives that the 476 department shall establish to reward lead agencies that achieve 477 performance measures aligned with the department’s goals of 478 prevention, family preservation, and permanency. 479

(2) The equity allocation of core services funds shall be 480 calculated based on the following weights: 481 (

a) Proportion of the child population shall be weighted as 482 5 percent of the total. 483 (

b) Proportion of child abuse hotline workload shall be 484 weighted as 35 percent of the total. 485 (

c) Proportion of children in care shall be weighted as 60 486 percent of the total. 487

(3) By December 1 of each year, the department shall submit 488 a report to the Governor, the President of the Senate, and the 489 Speaker of the House of Representatives which includes each lead 490 agency’s actual performance in attaining the previous fiscal 491 year’s targets, recommendations for adjustments to lead agency 492 funding, and adjustments to the tiered payment model, if 493

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 18 of 24 CODING: Words stricken are deletions; words underlined are additions. necessary Beginning in the 2015-2016 state fiscal year, 100 494 percent of the recurring core services funding for each 495 community-based care lead agency shall be based on the prior 496 year recurring base of core services funds. 497

(4) Unless otherwise specified in the General 498 Appropriations Act, the department shall allocate all funding 499 for core services, based on the department’s methodology any new 500 core services funds shall be allocated based on the equity 501 allocation model as follows: 502 (

a) Seventy percent of new funding shall be allocated among 503 all community-based care lead agencies. 504 (

b) Thirty percent of new funding shall be allocated among 505 community-based care lead agencies that are funded below their 506 equitable share. Funds allocated pursuant to this paragraph 507 shall be weighted based on each community-based care lead 508 agency’s relative proportion of the total amount of funding 509 below the equitable share. 510

Section 5. Subsections (1) and (3) of

section 409.992, 511 Florida Statutes, are amended to read: 512 409.992 Lead agency expenditures.— 513

(1) The procurement of commodities or contractual services 514 by lead agencies is shall be governed by the financial 515 guidelines developed by the department and must comply with 516 applicable state and federal law and follow good business 517 practices. Pursuant to s. 11.45, the Auditor General may provide 518 technical advice in the development of the financial guidelines. 519 (

a) Lead agencies shall competitively procure all 520 contracts, consistent with the simplified acquisition threshold 521 as specified in 2 C.F.R.

part 200. Financial penalties or 522

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 19 of 24 CODING: Words stricken are deletions; words underlined are additions. sanctions, as established by the department and incorporated 523 into the contract, shall be imposed by the department for 524 noncompliance with applicable local, state, or federal law for 525 the procurement of commodities or contractual services. 526 (

b) Notwithstanding s. 402.73, for procurement of real 527 property or professional services, lead agencies shall comply 528 with established purchasing practices, including the provisions 529 of s. 287.055, as required, for professional services, including 530 engineering or construction design. Upon termination of the lead 531 agency’s contract, the department shall immediately retain all 532 rights to and ownership of real property procured. 533

(3) Notwithstanding any other provision of law, a 534 community-based care lead agency administrative employee may not 535 receive a salary, whether base pay or base pay combined with any 536 bonus or incentive payments, in excess of 150 percent of the 537 annual salary paid to the secretary of the Department of 538 Children and Families from state-appropriated funds, including 539 state-appropriated federal funds. This limitation applies 540 regardless of the number of contracts a community-based care 541 lead agency may execute with the department.

Additionally, the 542 amount of federal grant funds that may be used for an executive 543 salary may not exceed the Executive Level II salary level, as 544 directed by the federal Health Resources and Services 545 Administration. This subsection does not prohibit any party from 546 providing cash that is not from appropriated state funds to a 547 community-based care lead agency administrative employee. 548

Section 6. Paragraphs (

c) and (

d) of subsection (1) of 549

section 409.994, Florida Statutes, are amended to read: 550 409.994 Community-based care lead agencies; receivership.— 551

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(1) The Department of Children and Families may petition a 552 court of competent jurisdiction for the appointment of a 553 receiver for a community-based care lead agency established 554 pursuant to s. 409.987 if any of the following conditions exist: 555 (

c) The secretary of the department determines that 556 conditions exist in the lead agency which present a an imminent 557 danger to the health, safety, or welfare of the dependent 558 children under that agency’s care or supervision. A written 559 certification of such conditions by the secretary of the 560 department constitutes prima facie evidence that this 561 requirement is satisfied. Whenever possible, the department 562 shall make a reasonable effort to facilitate the continued 563 operation of the program. 564 (

d) The lead agency cannot meet, or is unlikely to meet, 565 its current financial obligations to its employees, contractors, 566 or foster parents. Issuance of bad checks or the existence of 567 delinquent obligations for payment of salaries, utilities, or 568 invoices for essential services or commodities constitutes shall 569 constitute prima facie evidence that the lead agency lacks the 570 financial ability to meet its financial obligations. 571

Section 7. Paragraph (

d) of subsection (1) of

section 572 409.996, Florida Statutes, is amended to read: 573 409.996 Duties of the Department of Children and Families.—574 The department shall contract for the delivery, administration, 575 or management of care for children in the child protection and 576 child welfare system. In doing so, the department retains 577 responsibility for the quality of contracted services and 578 programs and shall ensure that, at a minimum, services are 579 delivered in accordance with applicable federal and state 580

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 21 of 24 CODING: Words stricken are deletions; words underlined are additions. statutes and regulations and the performance standards and 581 metrics specified in the strategic plan created under s. 582 20.19(1). 583

(1) The department shall enter into contracts with lead 584 agencies for the performance of the duties by the lead agencies 585 established in s. 409.988. At a minimum, the contracts must do 586 all of the following: 587 (

d) Provide for contractual actions tiered interventions 588 and graduated penalties for failure to comply with contract 589 terms or in the event of performance deficiencies, as determined 590 appropriate by the department. Such interventions and penalties 591 must shall include, but are not limited to: 592 1. Enhanced monitoring and reporting. 593 2. Corrective action plans. 594 2.3. Requirements to accept technical assistance and 595 consultation from the department under subsection (6). 596 3.4.

Financial penalties, which shall require a lead agency 597 to direct reallocate funds from administrative costs to the 598 department. The department shall use the funds collected to 599 support service delivery of quality improvement activities for 600 children in the lead agency’s care to direct care for children. 601 These penalties may be imposed for failure to provide timely, 602 sufficient resolution of deficiencies resulting in a corrective 603 action plan or other performance improvement plan issued by the 604 department. Financial penalties may include liquidated damages. 605 4.

The department shall include in each lead agency 606 contract executed a provision that requires payment to the 607 department of sanctions or disincentives for failure to comply 608 with contractual obligations. The department shall establish a 609

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schedule of daily monetary sanctions or disincentives for lead 610 agencies, which

schedule shall be incorporated by reference into 611 the contract. Contracts must, at a minimum, include sanctions or 612 disincentives for failure to comply with the following: 613 (

I) A corrective action plan; 614 (II) A child placement agreement that includes all required 615 safety and care precautions and behavior management plans needed 616 to keep the children and others safe; 617 (III) State and federal law requirements for the 618 procurement of commodities or contractual services; 619 (IV) State and federal law requirements for related parties 620 which address conflicts of interest; 621 (

V) Disclosure or reporting of any conflict of interest to 622 the department; 623 (VI) Provision of timely data and information as requested 624 by the department or its contracted vendors; and 625 (VII) Maintenance of an adequate network of placement 626 arrangements based on the needs of the children in the lead 627 agency’s care, including placement locations that are licensed 628 or that provide an authorized setting or stable nightly 629 placements. 630 631 The department is solely responsible for determining the 632 monetary value of liquidated damages. 633 5. Early termination of contracts, as provided in s. 634 402.1705(3)(f). 635

Section 8. Paragraph (

g) of subsection (2) of

section 636 409.997, Florida Statutes, is amended to read: 637 409.997 Child welfare results-oriented accountability 638

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 23 of 24 CODING: Words stricken are deletions; words underlined are additions. program.— 639

(2) The purpose of the results-oriented accountability 640 program is to monitor and measure the use of resources, the 641 quality and amount of services provided, and child and family 642 outcomes. The program includes data analysis, research review, 643 and evaluation. The program shall produce an assessment of 644 individual entities’ performance, as well as the performance of 645 groups of entities working together on a local, judicial 646 circuit, regional, and statewide basis to provide an integrated 647 system of care.

Data analyzed and communicated through the 648 accountability program shall inform the department’s development 649 and maintenance of an inclusive, interactive, and evidence-650 supported program of quality improvement which promotes 651 individual skill building as well as organizational learning. 652 The department may use data generated by the program regarding 653 performance drivers, process improvements, short-term and long-654 term outcomes, and quality improvement efforts to determine 655 contract compliance and as the basis for payment of performance 656 incentives if funds for such payments are made available through 657 the General Appropriations Act.

The information compiled and 658 utilized in the accountability program must incorporate, at a 659 minimum: 660 (

g) An annual performance report that is provided to 661 interested parties including the dependency judge or judges in 662 the community-based care service area. The report shall be 663 submitted to the Governor, the President of the Senate, and the 664 Speaker of the House of Representatives by November 15 of each 665 year. 666

Section 9. Paragraph (

n) of subsection (1) of

section 667

Florida Senate - 2024 SB 536 36-00994-24 2024536__ Page 24 of 24 CODING: Words stricken are deletions; words underlined are additions. 409.988, Florida Statutes, is amended to read: 668 409.988 Community-based care lead agency duties; general 669 provisions.— 670

(1) DUTIES.—A lead agency: 671 (

n) Shall ensure that it is addressing the unique needs of 672 the fathers of children who are served by the lead agency. 673 1. The lead agency shall: 674 a. Conduct an initial assessment of its engagement with 675 such fathers and provision of and referral to father-oriented 676 services. 677 b. Create an action plan to address any gaps identified 678 through the assessment and implement the action plan. 679 c.

Employ a father-engagement specialist to, at a minimum, 680 build relationships with fathers, help identify their needs, 681 assist them in accessing services, and communicate with the lead 682 agency about the challenges faced by these fathers and how to 683 appropriately meet their unique needs. The lead agency shall 684 prioritize individuals who have faced experiences similar to the 685 fathers who are being served by the lead agency for selection as 686 a father-engagement specialist. 687 2.

The department shall annually review how the lead agency 688 is meeting the needs of fathers, including, at a minimum, how 689 the lead agency is helping fathers establish positive, stable 690 relationships with their children and assisting fathers in 691 receiving needed services. The lead agency shall provide any 692 relevant information on how it is meeting the needs of these 693 fathers to the department, which must be included in the report 694 required under s. 409.997. 695

Section 10. This act shall take effect July 1, 2024. 696