THE BILL ITSELF
SB 400
Carryforward Funding of Certain Managing Entities
Florida Senate - 2026 SB 400 By Senator Garcia 36-00653-26 2026400__
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A bill to be entitled
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An act relating to carryforward funding of certain
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managing entities; amending s. 394.9082, F.S.;
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revising the duties of the Department of Children and
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Families; revising the criteria for the department’s
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comprehensive review of certain managing entities;
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requiring a managing entity to ensure maximum
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subcontract utilization of current year allocated
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funds within its network; prohibiting a managing
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entity from intentionally reserving current year
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allocated funds for carryforward planning without the
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express advanced approval of the department; providing
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an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Paragraph (l) of subsection (4) and paragraph
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(a) of subsection (9) of section 394.9082, Florida Statutes, are
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amended, and paragraph (o) is added to subsection (3) of that
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section, to read:
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394.9082 Behavioral health managing entities.—
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(3) DEPARTMENT DUTIES.—The department shall:
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(o) Routinely monitor the managing entity’s utilization of
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all available funds and take any necessary steps, up to and
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including potential corrective action, to reduce
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underutilization within the managing entity’s network.
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(4) CONTRACT WITH MANAGING ENTITIES.—
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(l) Every 2 years, the department shall conduct a
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comprehensive, multiyear review of the revenues, expenditures,
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and financial positions of managing entities covering the most
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recent 2 consecutive fiscal years. The review must include a
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comprehensive system-of-care analysis and a comprehensive
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financial utilization analysis . The department shall submit the
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review to the Governor, the President of the Senate, and the
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Speaker of the House of Representatives by November 1 of every
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other year, beginning in 2023.
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(9) FUNDING FOR MANAGING ENTITIES.—
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(a) A contract established between the department and a
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managing entity under this section must shall be funded by
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general revenue, other applicable state funds, or applicable
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federal funding sources. A managing entity may carry forward
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documented unexpended state funds from one fiscal year to the
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next, but the cumulative amount carried forward may not exceed 8
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percent of the annual amount of the contract. Any unexpended
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state funds in excess of that percentage must shall be returned
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to the department. The funds carried forward may not be used in
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a way that would increase future recurring obligations or for
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any program or service that was not authorized under the
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existing contract with the department. A managing entity shall
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ensure maximum subcontract utilization of current year allocated
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funds within its network and may not intentionally reserve
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current year allocated funds for carryforward planning without
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the express advanced approval of the department. Expenditures of
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funds carried forward must shall be separately reported to the
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department. Any unexpended funds that remain at the end of the
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contract period must shall be returned to the department. Funds
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carried forward may be retained through contract renewals and
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new contract procurements as long as the same managing entity is
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retained by the department.
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Section 2. This act shall take effect July 1, 2026.