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

HB 2724 would limit the fees that organizations can charge when they act as intermediaries distributing state funds to community programs for human services. The bill specifically targets groups that contract with the departments of social services and elementary and secondary education to manage these partnerships. Under the new rules, an organization could charge no more than five percent in fees if the total funds received are under one million dollars, or no more than three percent if the amount is one million dollars or more. This legislation aims to cap administrative costs while ensuring that the majority of public money goes directly to the intended community programs.