The DeSantis Administration's Diversion of $10 Million to Casey DeSantis's Charity Broke the Law

It looks like the DeSantis administration has a scandal on its hands. Lawrence Mower and Alexandra Glorioso reported that state officials diverted $10 million from a settlement to the Hope Florida Foundation, the charity led by first lady Casey DeSantis. More details came to light yesterday at a House committee hearing. Current Agency for Health Care Administration secretary Shevaun Harris told lawmakers that a company overbilled the state by tens of millions of dollars. AHCA and the company, Centene, then reached a presuit settlement of $67 million. $10 million of that went directly to the foundation.

The settlement agreement (obtained by the Florida Phoenix) was between Centene and "the State of Florida by and through its Attorney General; the Florida Agency for Health Care Administration ('AHCA'); the Florida Office of Insurance Regulation ('FL OIR'); and the Florida Department of Health ('FL DOH')." Signing for the state were, among other top state officials, chief deputy attorney general John Guard and then AHCA secretary Jason Weida (now DeSantis chief of staff). (The reader may remember that, as AHCA secretary, Weida violated state statute by spending millions of taxpayer dollars to defeat Amendment 4.)

The relevant provision of the settlement agreement:

Following the Execution Date at the times and manner set forth below, the Centene Entities shall cause payments in the total aggregate amount of Sixty-Seven Million, Forty Eight Thousand, Six Hundred and Eleven Dollars ($67,048,611) (“Settlement Amount”) to be made as directed by AHCA. Specifically, AHCA directs that (i) the Centene Entities shall pay Ten Million Dollars ($10,000,000) as a one-time donation to The Hope Florida Foundation, Inc. (“Hope Florida Donation”), and (ii) the Centene Entities shall pay the balance of the Settlement Amount, Fifty-Seven Million, Forty Eight Thousand, Six Hundred and Eleven Dollars ($57,048,611), to AHCA (“Settlement Balance”). ... As directed by AHCA, the Hope Florida Donation shall be paid within seven (7) days of the Execution Date by wire transfer to an account of The Hope Florida Foundation, Inc., in the manner to be directed in writing by AHCA pursuant to the Notice provisions of this Agreement. The Centene Entities’ obligation to pay the Hope Florida Donation shall be fully satisfied and extinguished upon completion of the wire transfer deposit of such installment into the account of The Hope Florida Foundation, Inc., as directed by AHCA. ...

(Emphasis added.)

What's the problem with this "donation"? Florida Statutes § 45.062(5):

When a state agency or officer settles an action or legal claim in which the state asserted a right to recover money, all moneys paid to the state by a party in full or partial exchange for a release of the state’s claim shall be placed into the General Revenue Fund or the appropriate trust fund.

(Emphasis added.)

Seems clear. The state had a "legal claim" against Centene for the recovery of money. The total settlement for this claim -- "all moneys" -- was $67 million. The $10 million to the Hope Florida Foundation was a part of that settlement amount and, so, part of the "all moneys." It should have been placed into the General Revenue Fund or a trust fund, not directed to an outside organization to, as is likely, benefit the first lady's political ambitions. The DeSantis administration violated § 45.062(5).

The DeSantis administration's defense so far is underdeveloped. Per Glorioso and Mower:

“Any monies owed to the state were paid back to the state,” [Harris] said. “This entity, Centene, made a separate contribution to the foundation.”

....

Attorney General’s Office spokesperson Jeremy Redfern said “donations to Hope Florida are not state funds” under the statute.

He did not answer when asked to provide other examples of the attorney general diverting settlement money to charities instead of delivering it to lawmakers.

Setting aside the BS semantics, Harris and Redfern are way off base. The settlement agreement itself says the $10 million was part of the total settlement amount paid to release the state's claim against Centene. Look at section B(3) of the agreement.

Maybe the DeSantis administration will argue that § 45.062(5) didn't control because the "donation" wasn't "paid to the state by a party." Hopefully they won't be that stupid. All the way back in 1938, the Supreme Court of Florida held in State ex rel. Powell v. Leon County: "It is fundamental and elementary that the legislature may not do that by indirect action which it is prohibited by the Constitution to do by direct action." This "long-standing legal principle" applies to statutes and all public officials: "Certainly a public official cannot do indirectly that which he is prohibited from doing directly."

The legislature seems pretty pissed off by the DeSantis administration's skullduggery. Hopefully this time it suffers some consequences.