SESSION WATCH
Died SENATE · SESSION 2026

No. SB 400

Carryforward Funding of Certain Managing Entities
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SPONSOR
Garcia
FILED BY
Ileana Garcia — District 36, Republican [search donations]
EFFECTIVE
7/1/2026
DIED IN
Children

Filed under Healthcare.

PROVIDED SUMMARY

Carryforward Funding of Certain Managing Entities; Revising the duties of the Department of Children and Families; revising the criteria for the department’s comprehensive review of certain managing entities; requiring a managing entity to ensure maximum subcontract utilization of current year allocated funds within its network, etc.

Full bill text →

Plain English Summary

AI-GENERATED
Bars behavioral health managing entities from hoarding funds to carry forward.

Managing entities running Florida's behavioral health contracts can no longer deliberately hold back current-year money just to carry it forward to the next fiscal year, unless the department approves that specific plan first.

Each managing entity must instead push its current year's allocated funds out through subcontracts to the providers in its network, rather than sitting on the money at the entity level.

The department must now routinely check how well each managing entity is using its funds, with authority to take corrective action, including sanctions, against entities that underspend their allocations.

The department's existing two-year financial review of each managing entity must now also analyze fund utilization directly, on top of the system-of-care analysis it already required.

KEY PROVISIONS
§ 1 Bars managing entities from deliberately hoarding current-year funds majors. 394.9082

AIA managing entity may not intentionally hold back current-year money in order to carry it forward to the next fiscal year, unless the department approves that specific plan in advance.

“may not intentionally reserve current year allocated funds for carryforward planning without the express advanced approval of the department” bill text, line 51 →
§ 2 Requires managing entities to push funds out to their subcontracted network majors. 394.9082

AIEach managing entity must ensure its current year's allocated funds are put to maximum use through subcontracts with the providers in its network, rather than held at the managing-entity level.

“shall ensure maximum subcontract utilization of current year allocated funds within its network” bill text, line 49 →
§ 3 Requires DCF to actively monitor fund utilization moderates. 394.9082

AIThe department must routinely track how much of a managing entity's available funds are actually being used, and can take corrective action if a managing entity is underutilizing its funding.

“Routinely monitor the managing entity's utilization of all available funds and take any necessary steps” bill text, line 23 →
§ 4 Adds a financial utilization analysis to the biennial review moderates. 394.9082

AIThe department's existing 2-year comprehensive review of managing entities' finances must now also include a financial utilization analysis, not just the system-of-care analysis already required.

“The review must include a comprehensive system-of-care analysis and a comprehensive financial utilization analysis” bill text, line 31 →
TIMELINE
3/13/2026
Died in Children, Families, and Elder Affairs
1/13/2026
Introduced
11/17/2025
Referred to Children, Families, and Elder Affairs; Appropriations...
11/5/2025
Filed
STATUTES IT CHANGES
s. 394.9082
+79 / −4