SB0400 • 2026

Carryforward Funding of Certain Managing Entities

Children

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Garcia
Last action: 2026-03-13
Official status: Senate - Died in Children, Families, and Elder Affairs
Effective date: 2026-07-01

Plain English Breakdown

The bill summary text does not provide specific details on consequences for non-compliance or impacts on existing contracts.

Carryforward Funding for Managing Entities

This bill revises how managing entities can use leftover funds from one fiscal year to the next and sets new rules about their financial responsibilities.

What This Bill Does

Revises the duties of the Department of Children and Families regarding monitoring managing entities' fund utilization.
Requires managing entities to ensure maximum subcontract utilization of current-year allocated funds within their network.
Limits how much leftover money from one fiscal year can be carried over to the next without permission from the department.
Requires managing entities to separately report on any carryforward funds they use.

Who It Names or Affects

Managing entities that work with the Department of Children and Families
The Department of Children and Families

Terms To Know

Managing entity: An organization that helps manage behavioral health services for a specific area.
Carryforward funds: Money left over from one fiscal year that is allowed to be used in the next fiscal year, subject to department approval and reporting requirements.

Limits and Unknowns

The bill does not specify what happens if managing entities do not follow these new rules.
It's unclear how this will affect existing contracts between managing entities and the department.

Bill History

2026-03-13 Senate
• Died in Children, Families, and Elder Affairs
2026-01-13 Senate
• Introduced
2025-11-17 Senate
• Referred to Children, Families, and Elder Affairs; Appropriations Committee on Health and Human Services; Fiscal Policy
2025-11-05 Senate
• Filed

Official Summary Text

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.

Current Bill Text

Read the full stored bill text

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.