2005 California Education Code Sections 8440-8447.5 Article 20. Direct Service Contract Procedure

8440.  The State Department of Education shall develop an annual
calendar identifying target dates for contract application deadlines,
contract award announcements, contract approvals, and contract
evaluations.  Each calendar shall be available to the public and
shall be updated at least annually.
8441.  The State Department of Education shall develop and maintain
a central distribution list for application announcements.
8442.  Application announcements shall contain, but not be limited
to, the following information:  the goals and objectives of the
program, identification of the specific minimum range of services to
be purchased related to those goals, quantitative as well as
qualitative measures which will be used by the department to evaluate
service outcomes, specific criteria and a description of the
methodology and timetable which will be followed to review and
approve applications, and all minimum performance standards any
agency is required to meet prior to direct service contract approval.
8443.  (a) The State Department of Education shall include all of
the following in the application announcement:
   (1) The time estimated for each step.
   (2) The specific staff names, office addresses, and telephone
numbers for those responsible for each step.
   (3) The legal requirements and signatory approvals required prior
to final approval of any contract.
   Any conditions for advance payments shall also be identified.
   (b) This information shall be provided in any application
announcement.
8444.  The State Department of Education shall identify and transmit
to all agencies awarded direct service contracts forms required for
contract payments, management information or reports required
pursuant to contract objectives, and conditions and methods for
contract evaluations.  Methods and conditions for payment recoveries,
withholding of payments, and contract terminations relating to
nonperformance shall also be identified.  This information shall be
provided in all cases prior to final approval of any direct service
contract, unless the information is provided in the contract
document.
8445.  The State Department of Education shall develop a grievance
procedure for resolving disputes arising from the awarding or
administering of direct service contracts,  in addition to the
remedies provided under the Administrative Procedure Act (Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code).
8447.  (a) The Legislature hereby finds and declares that greater
efficiencies may be achieved in the execution of state subsidized
child care and development program contracts with public and private
agencies by the timely approval of contract provisions by the
Department of Finance, the Department of General Services, and the
State Department of Education and by authorizing the State Department
of Education to establish a multiyear application, contract
expenditure, and service review as may be necessary to provide timely
service while preserving audit and oversight functions to protect
the public welfare.
   (b) The Department of Finance and the Department of General
Services shall approve or disapprove annual contract funding terms
and conditions, including both family copayment schedules and
regional market rate schedules that are required to be adhered to by
contract, and contract face sheets submitted by the State Department
of Education not more than 30 working days from the date of
submission, unless unresolved conflicts remain between the Department
of Finance, the State Department of Education, and the Department of
General Services.  The State Department of Education shall resolve
conflicts within an additional 30 working day time period.  Contracts
and funding terms and conditions shall be issued to child care
contractors no later than June 1.  Applications for new child care
funding shall be issued not more than 45 working days after the
effective date of authorized new allocations of child care moneys.
   (c) With respect to subdivision (b), it is the intent of the
Legislature that the Department of Finance annually review contract
funding terms and conditions for the primary purpose of ensuring
consistency between child care contracts and the child care budget.
This review, shall include evaluating any proposed changes to
contract language or other fiscal documents to which the contractor
is required to adhere, including those changes to terms or conditions
that authorize higher reimbursement rates, that modify related
adjustment factors, that modify administrative or other service
allowances, or that diminish copayment revenues otherwise available
for services, to determine if the change is necessary or has the
potential effect of reducing the number of full-time equivalent
children that may be served.
   (d) Alternative payment child care systems, as set forth in
Article 3 (commencing with Section 8220), shall be subject to the
rates established in the Regional Market Rate Survey of California
Child Care Providers for provider payments.  The State Department of
Education shall contract to conduct and complete the annual Regional
Market Rate Survey with a goal of completion by March 1.
   (e) By March 1 of each year, the Department of Finance shall
provide to the State Department of Education the State Median Income
amount for a four-person household in California based on the best
available data.  The State Department of Education shall adjust its
fee schedule for child care providers to reflect this updated state
median income.
   (f) Notwithstanding the June 1 date specified in subdivision (b),
changes to the regional market rate schedules and copayment schedules
may be made at any other time to reflect the availability of
accurate data necessary for their completion, provided these
documents receive the approval of the Department of Finance.  The
Department of Finance shall review the changes within 30 working days
of submission and the State Department of Education shall resolve
conflicts within an additional 30 working day period.  Contractors
shall be given adequate notice prior to the effective date of the
approved schedules.  It is the intent of the Legislature that
contracts for services not be delayed by the timing of the
availability of accurate data needed to update these schedules.
8447.5.  The State Department of Education may execute a multiyear
application process.  Multiyear applications may only be submitted by
public and private agencies that have been fully compliant in
executing prior contracts for at least the preceding three fiscal
years as evidenced by all of the following:
   (a) No fiscal audit disclaimer.
   (b) No program quality deficiencies.
   (c) No contract compliance deficiencies.
   (d) No incidents of child abuse or molestation.
   (e) No program management, administrative, or staffing
deficiencies.
   (f) Any other criteria as may be deemed necessary to safeguard the
public trust.