2010 California Code
Health and Safety Code
Chapter 3. Contract Approval Process

38020.  (a) All departments under the Health and Welfare Agency may
write and execute direct service contracts prior to July 1 of any
fiscal year for the mutual benefit of both parties in order to avoid
program and fiscal delay which could occur if the contracts were
executed after July 1.
   Such contracts are valid and enforceable only if sufficient funds
are made available by the Budget Act of the appropriate contract
year. In addition, contracts may be subject to such additional
restrictions, limitations, or conditions as enacted by the
Legislature and contained in the Budget Bill or any statute enacted
by the Legislature.
   If the Budget Act does not appropriate sufficient funds for the
program, such contracts shall be invalid and of no further force and
effect. In this event, the state shall have no liability to pay any
funds whatsoever to the contractor, or to furnish any other
considerations under this contract and the contractor shall not be
obligated to perform any provisions of this contract.
   (b) As used in this act "direct service contract" means a contract
for services contained in local assistance or subvention programs,
or both.


38021.  If the renewal of a direct service contract is not approved
in a timely manner through no fault of the contractor, the
administrative department may request a simple 90-day extension of
the existing approved contract pending final approval of the contract
renewal and provide notification and the information and forms
necessary for the agency contractor to bill for up to 90 days
pursuant to this section.