(1) If a county department has substantiated evidence that a child placement agency with which the county has contracted to provide foster care services has violated the provisions of this part 9 or a rule of the state board, it shall communicate the information to the state department. A county department shall also identify whether it is requesting the state department to investigate a complaint against a child placement agency for possible negative licensing action against the child placement agency. (2) Upon receiving a request for investigation of a child placement agency from a county department, the state department shall commence an investigation and, upon conclusion, report its findings to the requesting county department. The state department shall include in its report to the county department the child placement agency's response, if any, to the findings. (3) The state department shall provide to county departments and affected child placement agencies direct access to information concerning the results of an investigation or negative licensing action taken against the affected child placement agency licensed to provide foster care services in Colorado. (4) (a) The state department, in collaboration with the federal department of health and human services and other federal agencies and with county departments, shall seek recovery from a child placement agency of any public funds that the child placement agency has misused, as the term "misuse" is defined by rules promulgated pursuant to section 26-6-914 (2)(p). (b) A county and child placement agency that enters into a contract for the provision of foster care services shall include a provision in the contract that recognizes a right of the state department or county department to recover any funds misused by the child placement agency and to withhold subsequent payments. The provision in the contract must provide for an appeal of the decision to recover or withhold the funds. The state board shall promulgate rules that set forth the procedures for the appeal, which rules must require, at a minimum, reasonable notice to the child placement agency.
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