Missouri House Bill HB2724

Missouri 2024 Regular Session

• Introduced: 2/20/24
• Refer: 5/17/24

Caption

Prohibits certain organizations that contract with the departments of social services and elementary and secondary education from taking more than a certain percentage in fees when distributing department funds

Impact

The impact of HB2724 could be significant for organizations that contract with the DSS to provide human services. By capping the fees that these organizations can charge, the bill aims to promote transparency and efficiency in the use of state funds. Supporters argue this will ensure more resources are available for the intended community programs, enhancing the level of service provided to vulnerable populations. In contrast, opponents might raise concerns about the financial viability of these organizations, especially smaller ones that may struggle with operational costs under such constraints.

Summary

House Bill 2724 seeks to amend chapters 161 and 660 of the Revised Statutes of Missouri to set limits on the fees that certain entities, contracted by the Department of Social Services (DSS), can charge when distributing funds. The proposed legislation specifies that entities receiving less than one million dollars from the department cannot charge more than five percent in fees, while those receiving one million dollars or more are limited to three percent. This aims to ensure that a larger proportion of funds allocated for community programs is directed towards service provision rather than administrative overhead costs.

Contention

While the intention behind HB2724 is to protect community uses of funds, there may be contention regarding how these fee caps could affect service delivery. Critics may argue that lower allowable fees might deter qualified service providers from contracting with the state, subsequently reducing the quality or availability of services in some areas. Furthermore, there might be debates around whether the bill disproportionately impacts larger versus smaller entities in the sector, potentially leading to disparities in service coverage across the state.