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A bill to be entitled

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An act relating to the Department of Education; providing

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for the relief of Karen W. Stripling; providing an

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appropriation to compensate her for damages sustained as a

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result of a breach of contract by the Department of

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Education; providing a limitation on the payment of fees

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and costs; providing an effective date.

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     WHEREAS, Karen W. Stripling is the owner and operator of

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Florida Read & Lead, Inc., a not-for-profit private faith and

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community-based entity, and

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     WHEREAS, in June 2002, Florida Read & Lead, Inc., was

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awarded a grant contract from the Department of Education to

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assist persons in this state in obtaining high school diplomas

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and developing literacy skills, and

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     WHEREAS, the contract grant was denominated as a

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"performance-based" grant contract, providing that Florida Read &

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Lead, Inc., would be paid after Florida Read & Lead, Inc.,

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presented documentation to the Department of Education which

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demonstrated that Florida Read & Lead, Inc., had achieved certain

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required levels of performance by meeting specified literacy and

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education benchmarks, and

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     WHEREAS, Florida Read & Lead, Inc., was not to be paid on a

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"cash-advance" or "reimbursement" basis, and, accordingly, was

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not required to provide receipts, invoices, or other

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documentation showing its costs and expenditures, and

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     WHEREAS, during the first year of the contract grant, from

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July 1, 2002, to June 30, 2003, in full compliance with the grant

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contract, Florida Read & Lead, Inc., submitted documentation that

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showed it had attained the specified literacy and education

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benchmarks, and

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     WHEREAS, upon receipt of the documentation submitted by

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Florida Read & Lead, Inc., the Department of Education not only

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approved and paid Florida Read & Lead, Inc., in full, but

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confirmed in writing that Florida Read & Lead, Inc., met "all the

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requirements, acts, duties, and responsibilities as called for in

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the payment for" the invoices, based upon the documentation, and

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     WHEREAS, upon the Department of Education's approval of the

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documentation during the first year of the contract, the

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Department of Financial Services paid Florida Read & Lead, Inc.,

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approximately $200,000 solely on the basis of documentation

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substantiating the attainment of the specified literacy and

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education benchmarks, and

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     WHEREAS, when in December 2003, March 2004, and June 2004,

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Florida Read & Lead, Inc., submitted additional documentation of

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progress toward meeting the specified literacy and education

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benchmarks justifying a payment of approximately $200,000 for

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each quarter, documentation that was identical in format to the

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documentation submitted and approved for payment in the first

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year of the contract, the Department of Education refused to pay

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the documentation, wrongfully contending that Florida Read &

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Lead, Inc., and Stripling were required to present detailed

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itemized receipts documenting all of the costs Florida Read &

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Lead, Inc., had incurred to achieve the specified literacy and

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education benchmarks, and

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     WHEREAS, when Florida Read & Lead, Inc., and Stripling

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objected to the attempt of the Department of Education to convert

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the grant contract from a "performance-based" contract to a

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"reimbursement-based" contract, the Department of Education and

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the Department of Financial Services made numerous false

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statements to federal and state criminal investigators, including

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the erroneous assertions that Florida Read & Lead, Inc., had been

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allocated and had received an additional $200,000 in federal

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cash-advance payments at the beginning of the second year of the

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grant period; that all funds received by Florida Read & Lead,

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Inc., and Stripling during the first year had been federal cash-

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advance payments that carry stringent requirements as to their

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use and separation from personal funds; that Stripling had

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purchased a new car for her own personal use with government

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funds; that Stripling had created a fraudulent "grant slush fund"

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using her own personal Ameritrade retirement account into which

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she deposited "advance government funds"; that Stripling did not

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have a Doctorate of Philosophy as she asserted in her application

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and had fraudulently manufactured her educational background;

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that Florida Read & Lead, Inc., was to be evaluated in terms of

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its financial operations as if it were a school district, which

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by definition includes only public and government entities; that

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Stripling was to be evaluated as if she were a superintendent of

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a "local education agency"; and that Florida Read & Lead, Inc.,

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and Stripling had commingled government cash-advance payments

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with her own personal funds in violation of criminal law, and

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     WHEREAS, as a result of these false statements, Stripling

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was subjected to extensive criminal investigations by both state

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and federal law enforcement authorities, was notified she was a

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subject of these criminal investigations, was specifically

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threatened with a federal indictment carrying substantial fines

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and a lengthy prison sentence, and had to pay private criminal

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defense and other counsel to defend her interest and show that

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the statements of the Department of Education and the Department

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of Financial Services were completely groundless, and

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     WHEREAS, in the course of defending herself against these

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spurious allegations, Stripling suffered a complete mental,

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physical, and emotional breakdown, was forced to the brink of

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bankruptcy, was beset with chronic insomnia, suffered severe

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anxiety and panic attacks, was subjected to the threat of

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imminent indictment by a federal grand jury, was forced to move

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from her lifelong home, was compelled to inform her three

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children that she was quite likely going to prison, and suffered

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the loss of her personal and business reputations, and

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     WHEREAS, as a result of the false statements of employees of

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the Department of Education and the Department of Financial

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Services, Stripling was threatened with federal prison for

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stealing, "commingling" and "misappropriating" advance government

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money when in reality Florida Read & Lead, Inc., never received

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any state or federal advance money, and

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     WHEREAS, although the Department of Education has now

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acknowledged that Florida Read & Lead, Inc., has fully performed

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under the grant contract and has met all of the specified

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literacy and education benchmarks that are set forth in its grant

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contract, the Department of Education and the Department of

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Financial Services have both refused for over 3 years to pay

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Florida Read & Lead, Inc., the money it is owed as documented in

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its submissions for December 2003, March 2004, and June 2004, and

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     WHEREAS, Stripling is also entitled to compensation for the

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shame and humiliation she experienced as an innocent subject of a

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federal and state criminal investigation; the total destruction

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of her personal and business reputations, which taint follows her

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throughout this state and the eastern United States; the

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overwhelming mental anguish and emotional distress that

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ultimately led to her total physical and emotional breakdown,

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along with associated medical expenses and lost income; the loss

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of income in the past and the loss of her ability to earn income

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in the future since the only profession for which she is trained

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has been utterly destroyed; and the attorney's fees and costs she

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incurred in defending the unwarranted criminal investigation

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facilitated by the false accusations of employees of the

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Department of Education, and

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     WHEREAS, although a lawsuit has been filed, the Department

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of Education has offered to pay only $163,000, which does not

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even repay Florida Read & Lead, Inc., and Stripling for the

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approximately $260,000 owed for fully performing under the grant

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contract plus 41 months' interest; the loss of income of $700,000

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to Stripling as an independent contract grant writer, which is a

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conservative estimate of the income she lost over the last 3

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years; the $160,000 she incurred in fees and costs to defend the

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false criminal charges against her; the more than $1 million in

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lost future income as an independent contract grant writer, which

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is a conservative estimate of lost future income from her

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inability to secure any additional grants due to the taint of

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being labeled a felon who undertook criminal activity and the

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consequent loss of her personal and business reputations; the

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$100,000 in fees and costs associated with her effort to secure

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payments of the amounts owed to her and Florida Read & Lead,

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Inc., under the grant contract with the Department of Education;

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and the $500,000 she conservatively is owed for the pain and

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anguish she endured which resulted in her physical, emotional,

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and mental breakdown from being falsely accused of committing

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serious federal and state felonies and becoming the subject of a

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federal corruption probe, NOW, THEREFORE,

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1. The facts stated in the preamble to this act are

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found and declared to be true.

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     Section 2. There is appropriated from the General Revenue

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Fund to the Department of Education the sum of $2,720,000 for the

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relief of Karen W. Stripling for damages sustained due the breach

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of contract described in this act.

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     Section 3. The Chief Financial Officer is directed to draw

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a warrant in favor of Karen W. Stripling in the sum of $2,720,000

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upon funds of the Department of Education in the State Treasury,

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and the Chief Financial Officer is directed to pay the same out

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of such funds in the State Treasury.

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     Section 4. This award is intended to provide the sole

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compensation for all present and future claims arising out of the

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factual situation described in this act which resulted in this

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claim by Karen W. Stripling. The total amount paid for attorney's

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fees, lobbying fees, costs, and other similar expenses relating

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to this claim may not exceed 25 percent of the amount awarded

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under this act.

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     Section 5.  This act shall take effect upon becoming a law.