Florida 2024 2024 Regular Session

Florida House Bill H1061 Introduced / Bill

Filed 12/28/2023

                       
 
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A bill to be entitled 1 
An act relating to community -based child welfare 2 
agencies; amending s. 409.987, F.S.; revising 3 
requirements for contracts the Department of Children 4 
and Families has with community -based care lead 5 
agencies; revising requirements for an entity to serve 6 
as a lead agency; requiring that lead agencies ensure 7 
that board members participate in certain annual 8 
training; revising the definition of the term 9 
"conflict of interest"; defining the term "related 10 
party"; requiring the lead agency's board of directors 11 
to disclose any known or potential conflicts of 12 
interest; prohibiting a lead agency from entering into 13 
a contract or being a party to a transaction that 14 
creates a conflict of interest; requiring a lead 15 
agency to competitively procure certain contracts; 16 
imposing civil penalties on lead agencies for 17 
undisclosed conflicts of interest; providing 18 
applicability; requiring certain contracts to be 19 
reprocured; authorizing the department to prohibit 20 
execution of certain contracts; amending s. 409.988, 21 
F.S.; revising commu nity-based care lead agency 22 
duties; amending s. 409.991, F.S.; revising the 23 
definition of the term "core services funds"; removing 24 
definitions; requiring that the allocation of core 25     
 
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services funds be based on a three -tiered payment 26 
model; providing specifi cations for the payment model; 27 
requiring that reports be submitted annually to the 28 
Governor and the Legislature by a specified date; 29 
requiring that all funding for core services be based 30 
on the department's methodology; amending s. 409.992, 31 
F.S.; revising requirements for lead agency practices 32 
in the procurement of commodities and contractual 33 
services; requiring the department to impose certain 34 
penalties for a lead agency's noncompliance with 35 
applicable procurement law; requiring lead agencies to 36 
comply with established purchasing practices for the 37 
procurement of real property and professional 38 
services; requiring the department to retain all 39 
rights to and ownership of real property procured upon 40 
termination of contracts; requiring certain funds to 41 
be returned to the department; providing applicability 42 
of certain limitations on the salaries of community -43 
based care lead agency administrative employees; 44 
amending s. 409.994, F.S.; revising the conditions 45 
under which the department may petition a court for 46 
the appointment of a receiver for a community -based 47 
care lead agency; amending s. 409.996, F.S.; revising 48 
requirements for contracts between the department and 49 
lead agencies; revising the actions the department may 50     
 
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take under certain circumstances; making a techn ical 51 
change; providing duties of the department; providing 52 
an effective date. 53 
  54 
Be It Enacted by the Legislature of the State of Florida: 55 
 56 
 Section 1.  Subsections (3) and (4) and paragraphs (a) and 57 
(b) of subsection (7) of section 409.987, Florida Statutes, are 58 
amended, and paragraph (g) is added to subsection (7) of that 59 
section, to read: 60 
 409.987  Lead agency procurement; boards; conflicts of 61 
interest.— 62 
 (3)  Notwithstanding s. 287.057, the department shall use 63 
5-year contracts with lead agencies. The 5-year contract must be 64 
reprocured at the end of each 5 -year contract term. The contract 65 
may be extended at the discretion of the department for up to 1 66 
year, based on department needs. 67 
 (4)  In order to serve as a lead agency, an entity must: 68 
 (a)  Be organized as a Florida corporation or a 69 
governmental entity. 70 
 (b)  Be governed by a board of directors or a board 71 
committee composed of board members. Board members shall provide 72 
oversight and ensure accountability and transparency for the 73 
system of care. The board of directors shall provide fiduciary 74 
oversight to prevent conflicts of interest, promote 75     
 
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accountability and transparency, and protect state and federal 76 
funding from misuse. The membership of the board of directors or 77 
board committee must be des cribed in the bylaws or articles of 78 
incorporation of each lead agency, which must provide that at 79 
least 75 percent of the membership of the board of directors or 80 
board committee must be composed consist of persons residing in 81 
this state, and at least 51 pe rcent of the state residents on 82 
the board of directors must reside within the service area of 83 
the lead agency. The lead agency shall ensure that board members 84 
participate in annual training related to their 85 
responsibilities. However, for procurements of le ad agency 86 
contracts initiated on or after July 1, 2014: 87 
 1.  At least 75 percent of the membership of the board of 88 
directors must be composed consist of persons residing in this 89 
state, and at least 51 percent of the membership of the board of 90 
directors must be composed consist of persons residing within 91 
the service area of the lead agency. If a board committee 92 
governs the lead agency, 100 percent of its membership must be 93 
composed consist of persons residing within the service area of 94 
the lead agency. 95 
 2.  The powers of the board of directors or board committee 96 
include, but are not limited to, approving the lead agency's 97 
budget and setting the lead agency's operational policy and 98 
procedures. A board of directors must additionally have the 99 
power to hire the lead agency's executive director, unless a 100     
 
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board committee governs the lead agency, in which case the board 101 
committee must have the power to confirm the selection of the 102 
lead agency's executive director. 103 
 (c)  Demonstrate financial responsibility through an 104 
organized plan for regular fiscal audits and the posting of a 105 
performance bond. 106 
 (7)(a)  As used in this subsection, the term: 107 
 1.  "Activity" includes, but is not limited to, a contract 108 
for goods and services, a contract for the purchase of any real 109 
or tangible property, or an agreement to engage with a lead 110 
agency for the benefit of a third party in exchange for an 111 
interest in real or tangible property, a monetary benefit, or an 112 
in-kind contribution. 113 
 2.  "Conflict of interest" means when a board member or an 114 
officer, or a relative of a board member , director, or an 115 
officer, or a relative of a board member, director, or officer, 116 
of a lead agency does any of the following: 117 
 a.  Enters into a contract or other transaction for goods 118 
or services with the lead agency. 119 
 b.  Holds a direct or indirect interest in a corporation, 120 
limited liability corporation, partnership, limited liability 121 
partnership, or other business entity that conducts business 122 
with the lead agency or proposes to enter into a contract or 123 
other transaction with the lead agency. For purposes of this 124 
paragraph, the term "indirect interest" has the same meaning as 125     
 
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in s. 112.312. 126 
 c.  Knowingly obtains a direct or indirect personal, 127 
financial, professional, or other benefit as a result of the 128 
relationship of such board member , director, or officer, or 129 
relative of the board member , director, or officer, with the 130 
lead agency. For purposes of this paragraph, the term "benefit" 131 
does not include per diem and travel expenses paid or reimbursed 132 
to board members or officers of the lead agency in connection 133 
with their service on the board. 134 
 3.  "Related party" means any entity of which a director or 135 
an executive of the entity is also directly or indirectly 136 
related to, or has a direct or indirect financial or other 137 
material interest in, the lead agency. The term also includes 138 
any subsidiary, parent entity, associate firm, or joint venture, 139 
or any entity that is controlled, influenced, or managed by 140 
another entity or an individual related to such entity, 141 
including an individual who is, or was within the immediately 142 
preceding 3 years, an executive officer or a board member of the 143 
entity. 144 
 4.3. "Relative" means a relative within the third degree 145 
of consanguinity by blood or marriage. 146 
 (b)1.  For any activity that is presented to the board of a 147 
lead agency for its initial consideration and approval after 148 
July 1, 2021, or any activity that involves a contract that is 149 
being considered for renewal on or after July 1, 2021, but 150     
 
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before January 1, 2022 , a board member, a director, or an 151 
officer of a lead agency shall disclose to the board any 152 
activity that may reasonably be construed to be a conflict of 153 
interest before such activity is initially considered and 154 
approved or a contract is renewed by the board. A rebuttable 155 
presumption of a conflict of interest exists if the activity was 156 
acted on by the board without prior notice as required under 157 
paragraph (c). The board shall disclose any known actual or 158 
potential conflicts to the department. 159 
 2.  A lead agency may not enter into a contract or be a 160 
party to any transaction that creates a conflict of interest, 161 
including with related parties for the provision of management 162 
or administrative services or oversight. The lead agency shall 163 
competitively procure all contracts with rel ated parties in 164 
excess of $35,000 For contracts with a lead agency which are in 165 
existence on July 1, 2021, and are not subject to renewal before 166 
January 1, 2022, a board member or an officer of the lead agency 167 
shall disclose to the board any activity that may reasonably be 168 
construed to be a conflict of interest under this section by 169 
December 31, 2021. 170 
 (g)1.  Civil penalties in the amount of $5,000 per 171 
occurrence shall be imposed for each known and potential 172 
conflict of interest, as described in paragraph ( b), which is 173 
not disclosed to the department. 174 
 2.  If a contract is procured for which a conflict of 175     
 
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interest was not disclosed to the department before execution of 176 
the contract, the following penalties apply: 177 
 a.  A civil penalty in the amount of $50,000 for a first 178 
offense. 179 
 b.  A civil penalty in the amount of $100,000 for a second 180 
or subsequent offense. 181 
 3.  The civil penalties for failure to disclose a conflict 182 
of interest under subparagraphs 1. and 2. apply to any contract 183 
entered into, regardless of the method of procurement, 184 
including, but not limited to, formal procurement, single -source 185 
contracts, and contracts that do not meet the minimum threshold 186 
for formal procurement. 187 
 4.  A contract procured for which a conflict of interest 188 
was not disclosed to the department before execution of the 189 
contract shall be reprocured. 190 
 5.  The department may, at its sole discretion, prohibit 191 
execution of a contract for which a conflict of interest exists, 192 
or will exist after execution. 193 
 Section 2.  Paragraphs (c) , (i), (j), and (k) of subsection 194 
(1) of section 409.988, Florida Statutes, are amended to read: 195 
 409.988  Community-based care lead agency duties; general 196 
provisions.— 197 
 (1)  DUTIES.—A lead agency: 198 
 (c)  Shall follow the financial guidelines developed by t he 199 
department and shall comply with regular, independent auditing 200     
 
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of its financial activities, including any requests for records 201 
associated with such financial audits within the timeframe 202 
established by the department or its contracted vendors provide 203 
for a regular independent auditing of its financial activities . 204 
The results of the financial audit must Such financial 205 
information shall be provided to the community alliance 206 
established under s. 20.19(5). 207 
 (i)  Shall comply with federal and state statutory 208 
requirements and agency rules in the provision of contractual 209 
services. Any subcontract in excess of $250,000 must comply with 210 
the competitive procurement process. 211 
 (j)  May subcontract for the provision of services , 212 
excluding administrative and management functions, required by 213 
the contract with the lead agency and the department; however, 214 
the subcontracts must specify how the provider will contribute 215 
to the lead agency meeting the performance standards established 216 
pursuant to the child welfare results -oriented accountability 217 
system required by s. 409.997. The lead agency shall directly 218 
provide no more than 35 percent of all child welfare services 219 
provided unless it can demonstrate a need , within the lead 220 
agency's geographic service area where there is a lack of viable 221 
providers available to perform the necessary services. The 222 
approval period to exceed the threshold shall be limited to 2 223 
years. The lead agency shall reprocure for these services before 224 
the end of the 2-year period, to exceed this threshold . The 225     
 
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local community alliance in the geographic service area in which 226 
the lead agency is seeking to exceed the threshold shall review 227 
the lead agency's justification for need and recommend to the 228 
department whether the department should approve or deny the 229 
lead agency's request for an exemption from the services 230 
threshold. If there is not a community alliance operating in the 231 
geographic service area in which the lead agency is seeking to 232 
exceed the threshold, such review and recommendation shall be 233 
made to the department. by representatives of local 234 
stakeholders, including at least one representative from each of 235 
the following: 236 
 1.  The department. 237 
 2.  The county government. 238 
 3.  The school district. 239 
 4.  The county United Way. 240 
 5.  The county sheriff's off ice. 241 
 6.  The circuit court corresponding to the county. 242 
 7.  The county children's board, if one exists . 243 
 (k)  Shall publish on its website by the 15th day of each 244 
month at a minimum the data specified in subparagraphs 1.-9. 1.-245 
5., calculated using a stan dard methodology determined by the 246 
department, for the preceding calendar month regarding its case 247 
management services. The following information must shall be 248 
reported by each individual subcontracted case management 249 
provider, by the lead agency, if the l ead agency provides case 250     
 
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management services, and in total for all case management 251 
services subcontracted or directly provided by the lead agency: 252 
 1.  The average caseload of case managers, including only 253 
filled positions; 254 
 2.  The total number and percentage of case managers who 255 
have 25 or more cases on their caseloads; 256 
 3.  The turnover rate for case managers and case management 257 
supervisors for the previous 12 months; 258 
 4.  The percentage of required home visits completed; and 259 
 5.  Performance on ou tcome measures required pursuant to s. 260 
409.997 for the previous 12 months ;. 261 
 6.  The number of unlicensed placements for the previous 262 
month; 263 
 7.  The percentages and trends for foster parent and group 264 
home recruitment and licensure for the previous month; 265 
 8.  The percentage of families being served through family 266 
support, in-home, and out-of-home services for the previous 267 
month; and 268 
 9.  The percentage of cases that converted from nonjudicial 269 
to judicial for the previous month. 270 
 Section 3.  Section 409.9 91, Florida Statutes, is amended 271 
to read: 272 
 409.991  Allocation of funds for community -based care lead 273 
agencies.— 274 
 (1)  As used in this section, the term : 275     
 
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 (a) "core services funds" means all funds allocated to 276 
community-based care lead agencies operating under contract with 277 
the department pursuant to s. 409.987 . The term does not include 278 
any of, with the following exceptions: 279 
 (a)1. Funds appropriated for independent living services.; 280 
 (b)2. Funds appropriated for maintenance adoption 281 
subsidies.; 282 
 (c)3.  Funds allocated by the department for child 283 
protective investigation service investigations training.; 284 
 (d)4. Nonrecurring funds.; 285 
 (e)5. Designated mental health wrap -around service 286 
services funds.; 287 
 (f)6. Funds for special projects for a designated 288 
community-based care lead agency.; and 289 
 (g)7. Funds appropriated for the Guardianship Assistance 290 
Program established under s. 39.6225. 291 
 (b)  "Equity allocation model" means an allocation model 292 
that uses the following factors: 293 
 1.  Proportion of the child population; 294 
 2.  Proportion of child abuse hotline workload; and 295 
 3.  Proportion of children in care. 296 
 (c)  "Proportion of child population" means the proportion 297 
of children up to 18 years of age during the previous calendar 298 
year in the geographic area ser ved by the community -based care 299 
lead agency. 300     
 
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 (d)  "Proportion of child abuse hotline workload" means the 301 
weighted average of the following subcomponents: 302 
 1.  The average number of initial and additional child 303 
abuse reports received during the month for t he most recent 12 304 
months based on child protective investigations trend reports as 305 
determined by the department. This subcomponent shall be 306 
weighted as 20 percent of the factor. 307 
 2.  The average count of children in investigations in the 308 
most recent 12 months based on child protective investigations 309 
trend reports as determined by the department. This subcomponent 310 
shall be weighted as 40 percent of the factor. 311 
 3.  The average count of children in investigations with a 312 
most serious finding of verified abuse in the most recent 12 313 
months based on child protective investigations trend reports as 314 
determined by the department. This subcomponent shall be 315 
weighted as 40 percent of the factor. 316 
 (e)  "Proportion of children in care" means the proportion 317 
of the number of children in care receiving in -home services 318 
over the most recent 12 -month period, the number of children 319 
whose families are receiving family support services over the 320 
most recent 12-month period, and the number of children who have 321 
entered into out-of-home care with a case management overlay 322 
during the most recent 24 -month period. This subcomponent shall 323 
be weighted as follows: 324 
 1.  Fifteen percent shall be based on children whose 325     
 
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families are receiving family support services. 326 
 2.  Fifty-five percent shall be based on children in out -327 
of-home care. 328 
 3.  Thirty percent shall be based on children in in -home 329 
care. 330 
 (2)  Effective July 1, 2025, allocation of core services 331 
funds must be based on an actuarially sound, tiered payment 332 
model. The tiered model's purpose is to achieve the overarching 333 
goals of a stable payment model that adjusts to workload and 334 
incentivizes prevention, family preservation, and permanency. 335 
 (a)  Tier 1 provides operational base and fixed costs, 336 
which do not vary based on the number o f children and families 337 
served. Tier 1 payments may vary by geographic catchment area 338 
and cost of living differences. The department shall establish 339 
and annually update Tier 1 payment rates to maintain cost 340 
expectations that are aligned with the population served, 341 
services provided, and environment. Tier 1 expenses may include: 342 
 1.  Administrative expenditures. 343 
 2.  Lease payment. 344 
 3.  Asset depreciation. 345 
 4.  Utilities. 346 
 5.  Select components of case management, including 347 
administrative elements. 348 
 6.  Mandated activities such as training, quality, and 349 
contract management. 350     
 
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 7.  Activities performed for children and families which 351 
are nonjudicial and not candidates for Title IV -E funding, 352 
including true prevention and community -focused activities. 353 
 (b)  Tier 2 is a per-child, per-month payment designed to 354 
provide funding for lead agencies' expenses that vary based on 355 
the number of children served for a particular month. The 356 
payment rate blends out -of-home rates and in-home rates specific 357 
to each lead agency to create a rate that provides a financial 358 
incentive to lead agencies to provide services in the least 359 
restrictive safe placement. The department shall establish and 360 
annually update Tier 2 payment rates to maintain cost 361 
expectations that are aligned with the population served, 362 
services provided, and environment. Tier 2 rates must be set 363 
annually. 364 
 (c)  Tier 3 provides financial incentives that the 365 
department shall establish to reward lead agencies that achieve 366 
performance measures aligned with the department' s goals of 367 
prevention, family preservation, and permanency. 368 
 (2)  The equity allocation of core services funds shall be 369 
calculated based on the following weights: 370 
 (a)  Proportion of the child population shall be weighted 371 
as 5 percent of the total. 372 
 (b)  Proportion of child abuse hotline workload shall be 373 
weighted as 35 percent of the total. 374 
 (c)  Proportion of children in care shall be weighted as 60 375     
 
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percent of the total. 376 
 (3)  By December 1 of each year, beginning in 2024, the 377 
department shall submit a re port to the Governor, the President 378 
of the Senate, and the Speaker of the House of Representatives 379 
which includes each lead agency's actual performance in 380 
attaining the previous fiscal year's targets, recommendations 381 
for adjustments to lead agency funding, and adjustments to the 382 
tiered payment model, if necessary Beginning in the 2015 -2016 383 
state fiscal year, 100 percent of the recurring core services 384 
funding for each community -based care lead agency shall be based 385 
on the prior year recurring base of core se rvices funds. 386 
 (4)  Effective July 1, 2025, unless otherwise specified in 387 
the General Appropriations Act, the department shall allocate 388 
all funding for core services, based on the department's 389 
methodology any new core services funds shall be allocated base d 390 
on the equity allocation model as follows: 391 
 (a)  Seventy percent of new funding shall be allocated 392 
among all community-based care lead agencies. 393 
 (b)  Thirty percent of new funding shall be allocated among 394 
community-based care lead agencies that are fund ed below their 395 
equitable share. Funds allocated pursuant to this paragraph 396 
shall be weighted based on each community -based care lead 397 
agency's relative proportion of the total amount of funding 398 
below the equitable share . 399 
 Section 4.  Subsections (1) and (3) of section 409.992, 400     
 
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Florida Statutes, are amended to read: 401 
 409.992  Lead agency expenditures. — 402 
 (1)  The procurement of commodities or contractual services 403 
by lead agencies is shall be governed by the financial 404 
guidelines developed by the department and must comply with 405 
applicable state and federal law and follow good business 406 
practices. Pursuant to s. 11.45, the Auditor General may provide 407 
technical advice in the development of the financial guidelines. 408 
 (a)  Lead agencies shall competitively procure all 409 
contracts, consistent with the simplified acquisition threshold 410 
as specified in 2 C.F.R. part 200. Financial penalties or 411 
sanctions, as established by the department and incorporated 412 
into the contract, shall be imposed b y the department for 413 
noncompliance with applicable local, state, or federal law for 414 
the procurement of commodities or contractual services. 415 
 (b)  Notwithstanding s. 402.73, for procurement of real 416 
property or professional services, lead agencies shall comp ly 417 
with established purchasing practices, including the provisions 418 
of s. 287.055, as required, for professional services, including 419 
engineering or construction design. Upon termination of the 420 
contract, the department shall immediately retain all rights to 421 
and ownership of real property procured. Any funds from the 422 
sale, transfer, or other dispossession of such property during 423 
the contract term shall be returned to the department. 424 
 (3)  Notwithstanding any other provision of law, a 425     
 
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community-based care lead agency administrative employee may not 426 
receive a salary, whether base pay or base pay combined with any 427 
bonus or incentive payments from the lead agency or any related 428 
party, in excess of 150 percent of the annual salary paid to the 429 
secretary of the Depart ment of Children and Families from state -430 
appropriated funds, including state -appropriated federal funds. 431 
This limitation applies regardless of the number of contracts a 432 
community-based care lead agency may execute with the 433 
department. This subsection does not prohibit any party from 434 
providing cash that is not from appropriated state funds to a 435 
community-based care lead agency administrative employee. 436 
 Section 5.  Paragraphs (c) and (d) of subsection (1) of 437 
section 409.994, Florida Statutes, are amended to read: 438 
 409.994  Community-based care lead agencies; receivership. — 439 
 (1)  The Department of Children and Families may petition a 440 
court of competent jurisdiction for the appointment of a 441 
receiver for a community -based care lead agency established 442 
pursuant to s. 409.987 if any of the following conditions exist: 443 
 (c)  The department determines that conditions exist in the 444 
lead agency which present a an imminent danger to the health, 445 
safety, or welfare of the dependent children under that agency's 446 
care or supervision. Whenever possible, the department shall 447 
make a reasonable effort to facilitate the continued operation 448 
of the program. 449 
 (d)  The lead agency cannot meet , or is unlikely to meet, 450     
 
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its current financial obligations to its employees, contractors, 451 
or foster parents. Issuance of bad checks or the existence of 452 
delinquent obligations for payment of salaries, utilities, or 453 
invoices for essential services or commodities constitutes shall 454 
constitute prima facie evidence that the lead agency lacks the 455 
financial ability to meet its financial obligations. 456 
 Section 6.  Paragraph (d) of subsection (1) of section 457 
409.996, Florida Statutes, is amended to read: 458 
 409.996  Duties of the Department of Children and 459 
Families.—The department shall contract for the deliver y, 460 
administration, or management of care for children in the child 461 
protection and child welfare system. In doing so, the department 462 
retains responsibility for the quality of contracted services 463 
and programs and shall ensure that, at a minimum, services are 464 
delivered in accordance with applicable federal and state 465 
statutes and regulations and the performance standards and 466 
metrics specified in the strategic plan created under s. 467 
20.19(1). 468 
 (1)  The department shall enter into contracts with lead 469 
agencies for the performance of the duties by the lead agencies 470 
established in s. 409.988. At a minimum, the contracts must do 471 
all of the following: 472 
 (d)  Provide for contractual actions tiered interventions 473 
and graduated penalties for failure to comply with contract 474 
terms or in the event of performance deficiencies , as determined 475     
 
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appropriate by the department . 476 
 1. Such contractual actions must interventions and 477 
penalties shall include, but are not limited to: 478 
 1.  Enhanced monitoring and reporting. 479 
 a.2. Corrective action plans. 480 
 b.3. Requirements to accept technical assistance and 481 
consultation from the department under subsection (6). 482 
 c.4. Financial penalties, which shall require a lead 483 
agency to direct reallocate funds from administrative costs to 484 
the department. The department shall use the funds collected to 485 
support service delivery of quality improvement activities for 486 
children in the lead agency's care to direct care for children . 487 
These penalties may be imposed for failure to provide timely, 488 
sufficient resolution of deficiencies resulting in a corrective 489 
action plan or other performance improvement plan issued by the 490 
department. Financial penalties may include liquidated damages. 491 
 d.5. Early termination of contracts, as provided in s. 492 
402.7305(3)(f) s. 402.1705(3)(f). 493 
 2.  The department shall include in each lead agency 494 
contract executed a provision that requires payment to the 495 
department of sanctions or disincentives for failure to comply 496 
with contractual obligations. The department shall establish a 497 
schedule of daily monetary sanctions or disincentives for lead 498 
agencies, which schedule shall be incorporated by reference into 499 
the contract. The department is solely responsible for 500     
 
HB 1061  	2024 
 
 
 
CODING: Words stricken are deletions; words underlined are additions. 
hb1061-00 
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determining the monetary value of liquidated damages. 501 
 Section 7.  This act sha ll take effect July 1, 2024. 502