HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 1 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 2 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 3 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 4 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 5 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 6 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 7 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 8 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 9 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 10 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 11 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 12 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 13 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 14 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 15 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 16 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 17 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 18 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 19 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1061 2024 CODING: Words stricken are deletions; words underlined are additions. hb1061-00 Page 20 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 Page 21 of 21 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S determining the monetary value of liquidated damages. 501 Section 7. This act sha ll take effect July 1, 2024. 502