Title: Direct-support Organizations

Summary: Authorizes DCF to establish direct-support organization for specified purpose; provides DCF & direct-support organization requirements; provides requirements for contract for operation of direct-support organization assisting Children & Youth Cabinet; authorizes district school boards to contract with direct-support organizations for personal services or operations; revises amount of expenditures & expenses organization must have to be required to provide for annual financial audit; & authorizes district school boards to contract with vendor for such audits.

Full Text:
An act relating to direct-support organizations; amending s. 402.57, F.S.; authorizing the Department of Children and Families to establish a direct-support organization for a specified purpose; providing criteria for the direct-support organization; requiring the direct-support organization to operate under written contract with the department; providing requirements for the contract; requiring the Secretary of Children and Families to appoint a board of directors of the direct-support organization; providing for terms of board members; authorizing the department to allow the direct-support organization to use, without charge, the department's fixed property, facilities, and personnel services, subject to certain requirements; defining the term "personnel services"; authorizing the direct-support organization to collect, expend, and provide funds for specified purposes; prohibiting the use of such funds for lobbying; authorizing moneys to be held in a separate depository account in the name of the direct-support organization, subject to the contract with the department; requiring the direct-support organization to provide for annual financial audits; providing for future repeal; deleting obsolete language; providing CS/HB 2023 requirements for the contract for operation of the direct-support organization assisting the Children and Youth Cabinet; amending s. 1001.453, F.S.; authorizing district school boards to contract with direct-support organizations for personal services and operations; providing requirements for cert ain persons providing personal services; revising the amount of expenditures and expenses a direct-support organization must have to be required to provide for an annual financial audit; authorizing district school boards to contract with a vendor for such audits; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Section 402.57, Florida Statutes, is amended to read: 402.57 Direct-support organizations organization.-(1) DEPARTMENT OF CHILDREN AND FAMILIES.-The Department of Children and Families is authorized to create a direct-support organization, the sole purpose of which is to support the department in carrying out its purposes and responsibilities. (a) The direct-support organization must be: 1. A not-for-profit corporation incorporated under chapter and approved by the Department of State as a not-for-profit CS/HB 2023 corporation; 2. Organized and operated to conduct programs and activities; to raise funds; to request and receive grants, gifts, and bequests of moneys; to acquire, receive, hold, invest, and administer, in its own name, securities, funds, objects of value, or other property, real or personal; and to make expenditures to or for the direct or indirect benefit of the department and the individuals it serves; and 3. Determined by the department to be operating in a manner consistent with the goals and purposes of the department, the best interest of the state, and the needs of children and adults served by the department. (b) The direct-support organization shall operate under a written contract with the department. The contract must provide for all of the following: 1. Department approval of the articles of incorporation and bylaws of the direct-support organization. 2. Submi ssion of an annual budget for department approval. 3. Certification by the department that the direct-support organization is complying with the terms of the contract and operating in a manner consistent with the goals and purposes of the department and in the best interest of the state. Such certification must be made annually and reported in the official minutes of a meeting of the direct-support organization. 4. The reversion to the state of moneys and property held CS/HB 2023 in trust by the direct-support org anization for the benefit of those served by the department if the department ceases to exist or the reversion to the department if the direct-support organization is no longer approved to operate for the department or ceases to exist. 5. The fiscal year of the direct-support organization, which must begin July of each year and end June of the following year. 6. The disclosure of material provisions of the contract, and the distinction between the department and the direct support organization, to donors of gifts, contributions, or bequests, including such disclosure on all promotional and fundraising publications. (c) The Secretary of Children and Families shall appoint the board of directors of the direct-support organization. Each member of the board of directors shall be appointed to a-year term. However, for the purpose of providing staggered terms, the initial appointments shall be for either years or years, as determined by the secretary. (d) The department may allow, without charge, appropriate use of fixed property, facilities, and personnel services of the department by the direct-support organization, subject to the requirements of this section. As used in this subsection, the term "personnel services" includes full-time or part-time personnel, as well as payroll processing services. CS/HB 2023 1. The department may not allow a direct-support organization to use any fixed property, facilities, or personnel services of the department if the direct-support organization does not provide equal membership and employment opportunities to all persons regardless of race, color, religion, sex, age, or national origin. 2. The department may prescribe any conditions with which a direct-support organization must comply to use fixed property, facilitie s, or personnel services of the department and shall adopt rules prescribing those conditions and the procedures by which the direct-support organization is governed. (e) The direct-support organization may collect, expend, and provide funds for: 1. Addressing gaps in services for the children and adults served by the department. 2. Developing, implementing, and operating targeted prevention efforts. 3. Providing services and activities that support the goals of the department. 4. Supporting the functions of the direct-support organization's board of directors, as necessary and approved by the department. The funds of the direct-support organization may not be used for the purpose of lobbying as defined in s. 11.045(1). CS/HB 2023 (f) Any moneys may be hel din a separate depository account in the name of the direct-support organization, subject to the provisions of the contract with the department. (g) The direct-support organization shall provide for an annual financial audit in accordance with s. 215.98 1. (h) This subsection is repealed October 1, 2028, unless reviewed and saved from repeal by the Legislature. (2) CHILDREN AND YOUTH CABINET.-The Department of Children and Families shall establish a direct-support organization to assist the Children a nd Youth Cabinet established in s. 402.56 in carrying out its purposes and responsibilities, primarily regarding fostering public awareness of children and youth issues and developing new partners in the effort to serve children and youth by raising money; submitting requests for and receiving grants from the Federal Government, the state or its political subdivisions, private foundations, and individuals; and making expenditures to or for the benefit of the cabinet. The sole purpose for the direct-support organization is to support the cabinet. (a) The direct-support organization must be: 1.(a) Incorporated under chapter and approved by the Department of State as a Florida corporation not for profit. 2.(b) Organized and operated to make expenditur es to or for the benefit of the cabinet. 3.(c) Approved by the department to be operating for the CS/HB 2023 benefit of and in a manner consistent with the goals of the cabinet and in the best interest of the state. (b)(2) The board of directors of the direct-support organization shall consist of seven members appointed by the Governor. Each member of the board of directors shall be appointed to a-year term. However, for the purpose of providing staggered terms, the initial appointments shall be for either yea rs or years, as determined by the Governor. (c)(3) The direct-support organization shall operate under a written contract with the department. The contract must provide for all of the following: 1. Department approval of the articles of incorporation and bylaws of the direct-support organization. 2. Submission of an annual budget for department approval. 3. Certification by the department that the direct-support organization is complying with the terms of the contract and operating in a manner consistent with the goals and purposes of the department and in the best interest of the state. Such certification must be made annually and reported in the official minutes of a meeting of the direct-support organization. 4. The reversion to the state of moneys and property held in trust by the direct-support organization for the benefit of those served by the department if the department ceases to exist or the reversion to the department if the direct-support organization is no longer approved to operat efor the department CS/HB 2023 or ceases to exist. (d)(4) All moneys received by the direct-support organization must be deposited into an account of the direct support organization and shall be used in a manner consistent with the goals of the cabinet. (e)(5) This subsection section is repealed October 1, 2024, unless reviewed and saved from repeal by the Legislature. Section 2. Paragraphs (a) and (c) of subsection (2) and subsection (4) of section 1001.453, Florida Statutes, are amended to read: 1001.453 Direct-support organization; use of property; board of directors; audit.-(2) USE OF PROPERTY.-A district school board: (a) Is authorized to:1. Permit the use of property, facilities, and personal services of the district by a direct-support orga nization, subject to the provisions of this section;or 2. Contract with a direct-support organization for personal services or operations. However, a retiree of the Florida Retirement System providing such personal services must first satisfy the requir ements for termination from employment provided in s. 121.021(39) before providing such services for a Florida Retirement System employer and is subject to the reemployment limitations provided in s. 121.091(9).(c) May Shall not permit the use of prope rty, facilities, CS/HB 2023 or personal services by of a direct-support organization if such organization does not provide equal employment opportunities to all persons, regardless of race, color, religion, sex, age, or national origin. (4) ANNUAL FINANCIAL AUDIT.-Each direct-support organization with more than $250,000 $100,000 in expenditures or expenses shall provide for an annual financial audit of its accounts and records, to be conducted by an independent certified public accountant in accordance with rules ad opted by the Auditor General pursuant to s. 11.45(8) and the Commissioner of Education. A district school board may contract with a vendor for an annual financial audit of a direct-support organization. The annual financial audit report shall be submitted within 213 months after the fiscal year's end to the district school board and the Auditor General. The Commissioner of Education, the Auditor General, and the Office of Program Policy Analysis and Government Accountability have the authority to require and receive from the organization or the district auditor any records relative to the operation of the organization. The identity of donors and all information identifying donors and prospective donors are confidential and exempt from the provisions of s. 119.07(1), and that anonymity shall be maintained in the auditor's report. All other records and information shall be considered public records for the purposes of chapter 119. CS/HB 2023 Section 3. This act shall take effect upon becoming a law.