HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/CS/HB 1061 Community-based Child Welfare Agencies
SPONSOR(S): Health & Human Services Committee, Health Care Appropriations Subcommittee, Children,
Families & Seniors Subcommittee, McFarland
TIED BILLS: IDEN./SIM. BILLS: SB 536
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Children, Families & Seniors Subcommittee 15 Y, 0 N, As CS DesRochers Brazzell
2) Health Care Appropriations Subcommittee 14 Y, 1 N, As CS Fontaine Clark
3) Health & Human Services Committee 20 Y, 0 N, As CS DesRochers Calamas
SUMMARY ANALYSIS
Florida’s model for providing child welfare services is unique in the nation. No other state outsources its child
welfare services to private organizations to the extent that Florida does. Accordingly, the performance of those
private organizations – community based-care lead agencies (CBCs) and their subcontractors – has a great
impact on the health, safety, and well-being of the thousands of children and families served by Florida’s child
welfare system.
While most CBC’s are deemed by DCF to overall meet or exceed performance standards, deficiencies remain,
particularly in the well-being of children in care. Additionally, a recent forensic audit of 6 CBC’s identified the
following financial and managerial concerns with one or more of the 6 CBC’s:
Non-compliant contract procurement for related and non-related entities.
Receipt of Paycheck Protection Program Loans that were not properly reimbursed to the State.
Board approval of deficit budgets.
Allocated officer compensation in excess of mandatory caps.
Non-compliance with Cost Allocation Plans.
CS/CS/CS/HB 1061 reforms the contractual rights and obligations between DCF and the CBCs, establishes
the regulatory framework for a CBC’s subcontracts and transactions with related parties, revises the CBC
subcontract procurement process, and creates contractual remedies to address failures to follow procurement
law, noncompliance with contractual requirements, and inadequate performance in the provision of child
protection and child welfare services.
The bill establishes a new funding methodology for the allocation of core service funds, and establishes a
working group to study, evaluate, and offer recommendations relating to contractual and funding matters in the
privatized child welfare system.
The bill has no fiscal impact for Fiscal Year 2024-25, but may redistribute funding among CBCs beginning in
Fiscal Year 2025-26 and annually thereafter. The bill has no fiscal impact on local government.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/23/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Florida’s Child Welfare System
Chapter 39, F.S., creates the dependency system charged with protecting child welfare. The Florida
Legislature has declared four main purposes of the dependency system: 1
to provide for the care, safety, and protection of children in an environment that fosters healthy
social, emotional, intellectual, and physical development;
to ensure secure and safe custody;
to promote the health and well-being of all children under the state’s care; and
to prevent the occurrence of child abuse, neglect, and abandonment.
Florida’s dependency system identifies children and families in need of services through reports to the
central abuse hotline and child protective investigations. The Department of Children and Families
(DCF) works with those families to address the problems endangering children, if possible. DCF’s
practice model is based on the safety of the child within the home by using in-home services, such as
parenting coaching and counseling, to maintain and strengthen that child’s natural supports in his or
her environment. If the problems are not addressed, the child welfare system finds safe out-of-home
placements for these children.
Community Alliances
DCF is required to establish community alliances to serve as a catalyst for community resource
development and promote prevention and early intervention, among other obligations. 2 Each
community alliance may encompass more than one county when such arrangement is determined to
provide for more effective representation.3
Community Alliances include local stakeholders and representatives in each county to encourage and
maintain community participation and oversight of community-based care lead agencies (CBCs).4
Community alliances are composed of representatives from:
DCF.
the county government.
the school district.
the county United Way.
the county sheriff’s office.
the circuit court corresponding to the county.
the county children’s board, if one exists.
a faith-based organization involved in efforts to prevent child maltreatment, strengthen families,
and promote adoption.5
The community alliance must adopt bylaws and may increase the membership of the alliance if such
increase is necessary to adequately represent the diversity.6 The additional members may include state
1 S. 39.001(1)(a), F.S.
2 S. 20.19(5)(b), F.S.
3 S. 20.19(5)(a), F.S.
4 Id.
5 S. 20.19(5)(d), F.S.
6 S. 20.19(5)(e), F.S.
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attorneys, public defenders, their designees, or individuals from funding organizations, community
leaders or individuals who have knowledge of community-based service issues.7
DCF’s procurement team for CBC contracts must include individuals from the community alliance in the
area to be served under the contract.8
Community-Based Care Lead Agencies
Florida’s model for providing child welfare services is unique in the nation. No other state outsources
its child welfare services to private organizations to the extent that Florida does. Accordingly, the
performance of those private organizations—community based-care lead agencies, or CBCs-- has
great impact on the health, safety, and well-being of the thousands of children and families served by
Florida’s child welfare system. DCF’s effective management and oversight of contractors is critical to
the successful functioning of the child welfare system.
The Department of Children and Families (DCF) competitively contracts with CBCs as required by
chapters 287 and 409 to provide child protection and child welfare services to children and families in
Florida. These contracts generally cover case management, out-of-home services, and related
services. The outsourced provision of child welfare services is intended to increase local community
ownership of service delivery and design. CBCs in turn contract with a number of subcontractors for
case management and direct care services to children and their families. DCF remains responsible for
a number of child welfare functions, including operating the central abuse hotline, performing child
protective investigations, and providing children’s legal services. Ultimately, DCF is responsible for
program oversight and the overall performance of the child welfare system. 9
At present, there are 18 CBCs that each cover specific geographic areas within the 20 Judicial Circuits
in Florida. The geographic size of the CBC’s varies widely. While a few serve only one county, ranging
from St. Johns County to Broward County, several CBCs cover multiple counties, with one CBC
(Partnership for Strong Families) encompassing 13 rural counties. The following map illustrates DCF
Regions, Judicial Circuits, and CBC geographic areas. 10
7 Id.
8
S. 409.987(5), F.S.
9
S. 409.996, F.S.
10 Florida Department of Children and Families, A Comprehensive, Multi-Year Review of the Revenues, Expenditures, and Financial
Position of All Community-Based Care Lead Agencies with System of Care Analysis, p. 2 (Dec. 1, 2023)
https://www.myflfamilies.com/services/child-family/lmr (last visited Jan. 6, 2024).
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Accordingly, the child population of the area served by each CBC varies, and the number of children
and families served by each CBC varies.
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Florida Child Welfare System Performance Serving Children
The DCF infographic below scores the health of Florida’s child welfare system at the circuit level.11
DCF identifies areas with the most significant systemic impact on improving permanency and well-
being12 and evaluates progress toward achieving permanency, safety, and well-being for children in the
welfare system. The overall score for each of the 20 circuits aggregates individual circuit performance
scores on permanency, safety, and well-being. For FY 2022-23, the overall median score was 3.0 out
of a possible 5, and 60% of circuits earned a 3.0 or higher. 13 A score over 3.50 indicates the circuit’s
performance exceeds established standards.14 A score between 3.00-3.349 indicates the circuit’s
performance meets established standards.15 A score of 2.00-2.99 indicated the circuit’s performance
does not meet established standards.16 In FY 2022-23, DCF gave 11 of 20 circuits a score of 3.0 or
higher, indicating that the circuit’s performance exceeded established standards. Every CBC except
one was rated below expectations or poor for the well-being of children in care.
17
11 Florida Department of Children and Families, Annual Accountability Report on the Health of Florida’s Child Welfare System: Fiscal
Year 2022-2023, p. 6 (Dec. 1, 2023) https://www.myflfamilies.com/sites/default/files/2023-
12/Annual%20Accountibility%20Report%20on%20the%20Health%20of%20Floridas%20Child%20Welfare%20System%20FY%202022
-23.pdf (last visited Feb. 22, 2024).
12 Id. at p. 3.
13 Id. at p. 2.
14 Id. at p. 7.
15 Id.
16 Id.
17 Id. at pg. 6.
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CBC Funding
The source of CBC revenues are predominately federal and state funds appropriated by the Florida
Legislature. Nearly all federal funding for child welfare purposes comes from the Social Security Act18
and the Child Abuse Prevention and Treatment Act (CAPTA). Each of these federal sources generally
require state matching funds.19 Historically, CBCs could use Title IV-E funds in a variety of state-
specific, innovative ways because the federal government approved a waiver allowing Florida to
experiment. However, the federal government terminated the Title IV-E waiver authority it had allowed
states on September 30, 2019.20 This has led to significant change in levels and the mix of federal and
state funds over the last five years.
CBC appropriations from federal and state sources grew from $951.9 million in Fiscal Year (FY) 2018-
19 to $1.3 billion for FY 2023-24.21 The Legislature appropriates funds from both state and federal
sources to CBC’s through DCF.
State law specifies calculation of annual CBC funding. The Legislature first established a CBC funding
formula in law in 2011 and has changed over time.22 Before this statutory formula, the allocation of new
state or federal funds to lead agencies was based primarily on the number of children in care with
direction to the department through proviso language in the General Appropriations Act, though at the
time of the formula’s enactment, the Legislature had begun considering additional factors such as those
now in the formula.23
Under the current formula, 100 percent of the recurring core services funding for each community-
based care lead agency are based on the prior year recurring base of core services funds, and any
new funds are allocated according to a statutory formula.
Generally, all funds allocated to a CBCs are considered “core service funds”, except for:
1. Funds appropriated for independent living.
2. Funds appropriated for maintenance adoption subsidies.
3. Funds allocated by DCF for protective investigations training.
4. Nonrecurring funds (e.g., risk pool appropriations, back of the bill authorizations designed in the
General Appropriations Act, Legislative Budget Commission actions, and prior year excess
federal earnings).24
5. Designated mental health wrap-around services.
6. Funds for special projects for a designated CBC.
7. Funds appropriated for the Guardianship Assistance Program under s. 39.6225, F.S.
Unless otherwise specified in the General Appropriations Act, any new core service funds are allocated
according to the equity allocation model on the following weighted basis:
70% of new funding must be allocated among all CBCs.
30% of new funding must be allocated among the CBCs that are funded below their equitable
share.25
18 Relevant provisions of the Social Security Act include the Title IV-A Temporary Assistance for Needy Families (TANF) block grant,
Title IV-B child welfare services, Title IV-B promoting safe and stable families, Title IV-E funds for fos ter care, Title IV-E funds for
adoption assistance, independent living and education, training and voucher funds , and the Title XX Social Services Block Grant.
19 In addition, a local match is required for the Title IV-B promoting safe and stable families fund.
20 Florida Department of Children and Families, A Comprehensive, Multi-Year Review of the Revenues, Expenditures, and Financial
Position of All Community-Based Care Lead Agencies with System of Care Analysis, p. 3 (Dec. 1, 2023)
https://www.myflfamilies.com/services/child-family/lmr (last visited Jan. 6, 2024).
21 Supra, FN 10 at 3.
22
Ch. 2011-62, L.O.F.
23 Florida Senate Analysis of 2011 Senate Bill 2146, p. 3 (April 1, 2011)
https://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=2011s2146.bc.DOCX&DocumentTyp e=Analysis&BillNu
mber=2146&Session=2011 (last visited Jan. 26, 2024).
24 Supra, FN 3 at 4-5. At the time of DCF’s annual report, the carry-forward balance for FY 2023-24 was not yet determined.
25 S. 409.991(4), F.S.
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The equity allocation model weights the proportions of the child population, the child abuse hotline
workload, and the children in care according to the following formula:
The proportion of the child population is weighted at 5% of the total.
The proportion of the child abuse hotline workload is weighted at 35% of the total.
The proportion of the children in care is weighted at 60% of the total. 26
The FY 2023-24 GAA provides the following core service funding amounts to CBC’s:
Core Service Funding
Community-based Care Lead Agency
for FY 2023-24
Big Bend CBC (Northwest Florida Health Network)-West $55,032,652
Big Bend CBC (Northwest Florida Health Network)-East $35,459,931
Partnership for Strong Families $31,401,300
Kids First of Florida $12,525,871
Family Support Services of North Florida $49,018,528
St Johns Board of County Commissioners (Family Integrity Program) $7,683,739
Community Partnership for Children $43,440,511
Kids Central $54,912,909
Embrace Families $60,761,737
Heartland for Children $46,721,076
Community-Based Care of Brevard (Brevard Family Partnerships) $29,292,110
Communities Connected for Kids $24,247,000
Family Support Services of Suncoast $87,553,887
Safe Children Coalition $34,861,493
Children’s Network of Hillsborough $75,448,412
Children’s Network of Southwest Florida