Florida Senate - 2026                                     SB 400
       
       
        
       By Senator Garcia
       
       
       
       
       
       36-00653-26                                            2026400__
    1                        A bill to be entitled                      
    2         An act relating to carryforward funding of certain
    3         managing entities; amending s. 394.9082, F.S.;
    4         revising the duties of the Department of Children and
    5         Families; revising the criteria for the department’s
    6         comprehensive review of certain managing entities;
    7         requiring a managing entity to ensure maximum
    8         subcontract utilization of current year allocated
    9         funds within its network; prohibiting a managing
   10         entity from intentionally reserving current year
   11         allocated funds for carryforward planning without the
   12         express advanced approval of the department; providing
   13         an effective date.
   14          
   15  Be It Enacted by the Legislature of the State of Florida:
   16  
   17         Section 1. Paragraph (l) of subsection (4) and paragraph
   18  (a) of subsection (9) of section 394.9082, Florida Statutes, are
   19  amended, and paragraph (o) is added to subsection (3) of that
   20  section, to read:
   21         394.9082 Behavioral health managing entities.—
   22         (3) DEPARTMENT DUTIES.—The department shall:
   23         (o) Routinely monitor the managing entity’s utilization of
   24  all available funds and take any necessary steps, up to and
   25  including potential corrective action, to reduce
   26  underutilization within the managing entity’s network.
   27         (4) CONTRACT WITH MANAGING ENTITIES.—
   28         (l) Every 2 years, the department shall conduct a
   29  comprehensive, multiyear review of the revenues, expenditures,
   30  and financial positions of managing entities covering the most
   31  recent 2 consecutive fiscal years. The review must include a
   32  comprehensive system-of-care analysis and a comprehensive
   33  financial utilization analysis. The department shall submit the
   34  review to the Governor, the President of the Senate, and the
   35  Speaker of the House of Representatives by November 1 of every
   36  other year, beginning in 2023.
   37         (9) FUNDING FOR MANAGING ENTITIES.—
   38         (a) A contract established between the department and a
   39  managing entity under this section must shall be funded by
   40  general revenue, other applicable state funds, or applicable
   41  federal funding sources. A managing entity may carry forward
   42  documented unexpended state funds from one fiscal year to the
   43  next, but the cumulative amount carried forward may not exceed 8
   44  percent of the annual amount of the contract. Any unexpended
   45  state funds in excess of that percentage must shall be returned
   46  to the department. The funds carried forward may not be used in
   47  a way that would increase future recurring obligations or for
   48  any program or service that was not authorized under the
   49  existing contract with the department. A managing entity shall
   50  ensure maximum subcontract utilization of current year allocated
   51  funds within its network and may not intentionally reserve
   52  current year allocated funds for carryforward planning without
   53  the express advanced approval of the department. Expenditures of
   54  funds carried forward must shall be separately reported to the
   55  department. Any unexpended funds that remain at the end of the
   56  contract period must shall be returned to the department. Funds
   57  carried forward may be retained through contract renewals and
   58  new contract procurements as long as the same managing entity is
   59  retained by the department.
   60         Section 2. This act shall take effect July 1, 2026.