(a) "Additional funds" means award of new contracts or expanded contracts which increase the contractor's level of administrative responsibility. Cost of living adjustments, rate increases, one-time-only supplemental funds and Alternative Payment program contingency funds are not considered to be "additional funds."

(b) "Applicants headquartered in" means:

(1) Contractors or applicants who have provided child care and development services in the service delivery area, as defined in Section 18000(g) of this Division, for at least three (3) years immediately preceding the date of the Request for Applications; or

(2) Contractors or applicants who have their primary administrative offices for the child development program in the service delivery area as defined in Section 18000(g) of this Division. The primary administrative office is that office which houses the executive officer(s), the fiscal functions and other centralized support services.

(c) "Cost effective manner" for the purposes of Article 3 of this Chapter, means that services are provided at rates which are within the range of local market rates.

(d) "Extended day care" means before and after school care and care during school vacation days for children kindergarten age through the ninth (9th) grade.

(e) "New contract" means either:

(1) a contract award to applicants who do not currently contract with the State Department of Education for child care and development services; or

(2) a contract award to an existing contractor which is for a program type as specified in Education Code Section 8208(h) that is different than the child development contract(s) currently administered by the applicant.

(f) "Request for Applications" means an announcement issued by the Child Development Division for competitive award of a new contract for child care and development services or expansion of an existing level of services. The Request for Applications includes:

(1) the application content requirements;

(2) procedures for submission of an application for funding; and

(3) the criteria to be used in evaluating the application.

(g) "Service delivery area" means the community, geographic area or political subdivision in which the child care and development services are to be provided as specified in the Request for Applications.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261, 8269, 8406.6, 8447 and 8465, Education Code.

§ 18001 - Eligibility for Funding.

(a) A contractor is not eligible for additional funds if the contractor has received final notification, as specified in Section 18301 of this Division, that its contract has been terminated.

(b) A contractor is not eligible for additional funds if the contractor has demonstrated fiscal and/or programmatic noncompliance and has received final notification, as specified in Section 18303 of this Division, that:

(1) its contract will be placed on conditional status; or

(2) it will not be offered continued funding.

(c) An applicant is not eligible for funding if it has had a prior contract with the State Department of Education for child care and development services within three (3) years immediately preceding the date of the Request for Applications and:

(1) the contract was terminated for fiscal and/or programmatic noncompliance; or

(2) the contract funding was not continued because of fiscal and/or programmatic noncompliance.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261, 8406.6 and 8447, Education Code.

Article 2 - Selection of Contractors

§ 18002 - Application Review and Award of Contract.

(a) An applicant must submit a complete application in accordance with the instructions contained in the Request for Applications.

(b) If an application is submitted that is incomplete or not completed in accordance with the instructions, the Child Development Division shall reject it and no further review will be made.

(c) If any change is made in the contents of the Request for Applications, that change will be made in writing and mailed to all agencies and persons that received the Request for Application.

(d) All applicants that submit a complete application in accordance with the instructions shall be evaluated as follows:

(1) If the Request for Applications includes more than one service delivery area, applicants will be considered for the service area(s) specified in their applications;

(2) Applicants headquartered in the service delivery area(s) specified in the Request for Applications will be reviewed first;

(3) Applications will be evaluated and scored in accordance with the rating criteria specified in the Request for Applications.

(4) The Request for Applications shall specify the minimum number of points necessary for applicants to qualify for an interview.

(5) The interview will consist of an oral presentation by the applicant regarding the content area of the application and a question and answer portion to clarify or expand on the information presented.

(6) The interview will be evaluated and scored in accordance with the rating criteria specified in the Request for Applications;

(7) The applicants will be ranked on the basis of the combined scores for the written application and interview.

(8) If there are no applicants headquartered in the service delivery area meeting the minimum criteria specified in the Request for Applications, applications from applicants that are not headquartered in the specified service delivery area(s) will be evaluated in accordance with the procedures specified above.

(9) The highest scoring application shall receive a tentative offer of funding, subject to the provisions specified in Section 18003 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261 and 8445.

§ 18003 - Contract Award Disputes.

(a) Applicants may review applications, interview scores and any reader comments after the date the proposed application results are posted at the office of the Child Development Division. An unsuccessful applicant may appeal the procedures used in the scoring of applications and interviews. If the unsuccessful applicant intends to appeal, the following appeal process shall apply:

(1) The unsuccessful applicant shall file a notice of appeal with the Appeals Coordinator identified in the Request for Applications within seven (7) calendar days after the date the proposed application results are posted at the office of the Child Development Division.

(2) The Director of the Child Development Division shall designate a Child Development Division staff person who shall coordinate the appeal process and who shall be referred to as the "Appeals Coordinator." The Request for Applications shall specify the name, address and telephone number of the Appeals Coordinator.

(3) The Appeals Coordinator shall appoint no less than two (2) State Department of Education staff who will be members of an Appeals Panel that shall hear all appeals. The members of the Appeals Panel shall be independent from the application review process.

(4) A notice of appeal shall be deemed to be filed if the Appeals Coordinator receives a written notice of appeal or a telephone communication within the time period required for filing a notice of appeal.

(5) The notice to appeal shall contain the following information: the appellant's name, mailing address and telephone number; the name(s) of the person(s) who will represent the appellant at the appeal hearing; and whether the representative(s) will appear in person at the appeal hearing or will appear though a telephone conference call with the Appeals Panel.

(6) The Appeals Coordinator shall schedule an appeal hearing to be held in Sacramento or with a telephone conference call by the Appeals Panel within seven (7) calendar days of the receipt of the notice of appeal.

(7) The unsuccessful applicant shall not submit additional information to be evaluated and scored during the appeal process.

(8) The Appeals Panel shall adjust scores assigned by the reviewers and/or interviewers when there is evidence of an inconsistent application of scoring criteria by a reader(s) or interviewer(s).

(9) The Appeals Panel shall notify the appellant in writing of the results of the appeal within seven (7) calendar days of the appeal hearing.

(b) If, after the Appeals Panel's decision, there is a change in the rank order of applications, the applicant who received a tentative offer for funding pursuant to Section 18002 of this Division shall receive a notice of the change, and may file an appeal with the Appeals Coordinator within seven (7) calendar days of the date the notice of the change was sent. If a notice to appeal is filed pursuant to this Subsection, the procedures specified above in Subsections (a)(2) through (a)(9), inclusive, shall apply.

(c) A contract award decision is final when an appeal is filed pursuant to subsection (b) and the appellant is notified of the Appeal Panel's decision.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18005 - Contractor Eligibility for State Child Care Facilities Fund.

In order for a contractor to be eligible to apply for a lease of a relocatable facility for extended day care, the contractor shall maintain a clear or provisional contract status.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8477, Education Code.

§ 18006 - Priorities for State Child Care Facilities Fund (School Age Community Child Care Programs).

Priorities for the acquisition and leasing of facilities from the State Child Care Facilities Fund are:

(a) First priority shall be given to extended day care programs that:

(1) Operate within the boundaries of a school district which has unhoused pupils,

(2) Have developed a plan to provide extended day care services in a cost effective manner.

(b) Second priority shall be given to extended day care programs that:

(1) Operate within the boundaries of a school district with housed pupils,

(2) Have developed a plan to provide extended day care services in a cost effective manner.

NOTE: Authority cited: Section 8461, Education Code. Reference: Section 8477, Education Code.

[Article 3 - State Child Care Facilities Fund

§ 18007 - Priorities for State Child Care Facilities Fund (GAIN).

For programs serving participants in the Greater Avenues for Independence Act of 1985 (GAIN), priorities for the acquisition and leasing of facilities from the Child Care Facilities Fund are:

(a) First priority shall be given to extended day care programs that:

(1) Operate within the boundaries of school districts that have unhoused pupils;

(2) Have developed a plan to provide extended day care services in a cost effective manner; and

(3) Are providing or seeking to provide extended day care services in, or in close proximity to, public housing projects, or in areas of high density of recipients of benefits under the Aid to Families with Dependent Children programs in order to serve participants under the Greater Avenues for Independence Act of 1985 (GAIN).

(b) Second priority shall be given to extended day care programs that:

(1) Operate within the boundaries of a school district that has housed pupils;

(2) Have developed a plan to provide extended day care services in a cost effective manner; and

(3) Are providing or seeking to provide extended day care services in, or in close proximity to public housing projects, or in areas of high density of recipients of benefits under the Aid to Families with Dependent Children programs in order to serve participants under the Greater Avenues for Independence Act of 1985 (GAIN).

(1) Operate within the boundaries of a school district that has unhoused pupils;

(2) Have developed a plan to provide extended day care services in a cost effective manner; and

(3) Are providing or seeking to provide extended day care services that are not in or in close proximity to public housing projects, or in areas of high density of recipients of benefits under the Aid to Families with Dependent Children programs in order to serve participants under the Greater Avenues for Independence Act of 1985 (GAIN).

(d) Fourth priority shall be given to extended day care programs that:

(1) Operate within the boundaries of a school district that has housed pupils;

(2) Have developed a plan to provide extended day care services in a cost effective manner; and

NOTE: Authority cited: Section 8461, Education Code. Reference: Section 8478.5, Education Code.

§ 18008 - Funding Award Procedures for State Child Care Facility Funds.

(a) No additional eligibility criteria beyond those specified in Section 18005 of this Division and Education Code Sections 8477 and 8478.5 shall be imposed.

(b) Based on the priorities and procedures specified in Sections 18006 and 18007 above, the Child Development Division shall make recommendations for funding to the State Allocation Board.

(c) Funds shall be awarded by the State Allocation Board based on availability and rules and procedures established by the State Allocation Board pursuant to Education Code Sections 8477(e) and 8478.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8477, Education Code.

Article 4 - Contingency Funds for Alternative Payment Programs

§ 18009 - Application for Contingency Funds.

(a) Alternative Payment programs as defined in Section 18018(e) of this Division may apply for funding for additional services which were provided pursuant to Section 8222.1 of the Education Code by submitting a request to the State Department of Education, Office of External Audits.

(b) The request shall be in the form of a letter which must be submitted by October 31 of the fiscal year following the fiscal year in which the additional costs were incurred and services were provided.

(1) the costs incurred and the level of additional services provided;

(2) that reimbursement from the contingency fund does not exceed five thousand dollars ($5,000) or two percent (2%) of the contractor's maximum reimbursable amount, whichever is greater; and

(3) that the contractor has not been reimbursed for additional services from the contingency fund for the prior two (2) consecutive years.

NOTE: Authority cited: Section 8269, Education Code. Reference: Sections 8222.1 and 8278, Education Code.

Article 5 - Continued Funding

§ 18010 - Continued Funding.

(a) Contractors have no vested right to a subsequent contract.

(b) Contractors that are not on conditional contract status but which have evidenced fiscal or programmatic noncompliance with the provisions of this Division or Education Code Sections 8200 et seq., shall receive an administrative review in accordance with Section 18303 of this Division to determine whether they will receive an offer for continued funding.

(c) Contractors currently on conditional status that do not meet the requirements specified in the Conditional Status Addendum, as specified in Section 18305 of this Division, may not be offered a subsequent contract and shall be so notified by the Child Development Division at least ninety (90) calendar days prior to the end of the current contract period.

(d) Contractors that intend to accept the offer to continue services in the subsequent contract period shall respond to a continued funding application request from the Child Development Division in accordance with the instructions and timelines specified in the request.

(e) Failure to respond within the timelines specified in the continued funding application request shall constitute notification to the Child Development Division of the contractor's intent to discontinue services at the end of the current contract period unless the contractor has received a written extension of the original timeline from the Child Development Division.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8406.6, Education Code.

§ 18011 - Location of the Program.

Subchapter 2 - General Requirements

[CA] [50101900] [SC002000] [A001000]

Article 1 - General Provisions

§ 18012 - Scope of Chapter.

Unless otherwise provided in this Division, the regulations in this Chapter apply to all contracting agencies authorized to establish, maintain, or operate services pursuant to the Child Care and Development Services Act, Chapter 2, Part 6 of Title 1 of the California Education Code (commencing with Section 8200).

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203, 8261 and 8269, Education Code.

§ 18013 - Definitions.

As used in this Division:

(a) "Actual and allowable net costs" means the costs which may be reimbursed under a particular child development contract after disallowed costs and restricted income have been subtracted from total expenditures.

(b) "Adjusted child days/hours of enrollment" means child days or hours of enrollment after special needs adjustment factors specified in Education Code Section 8265.5 have been applied.

(c) "Administrative costs" means costs incurred for administrative activities where neither the family, the child nor the service providers for Alternative Payment programs and family child care homes directly benefit from the activity.

(d) "Adult" for the purposes of this Division means a person who is at least eighteen (18) years of age.

(e) "Alternative Payment programs" means contracts designated as Alternative Payment, County Welfare Department, or Child Protective Services. Contracts designated as School Age Community Child Care and Exceptional Needs which operate in a vendor payment mode are included in the definition of Alternative Payment programs. Contractors operating Alternative Payment programs are not precluded from contracting for other program types as specified in Education Code Section 8208(h).

(f) "Authorized representative" means a person who has been delegated the responsibility to sign a child in and out of a child care program in the absence of the parent.

(g) "Benefit to the state" means that the activity will improve knowledge or expertise in areas directly related to subsidized child care and development services.

(h) "Ceases operation" means the contractor does not provide subsidized services in accordance with the contractor's program operating calendar submitted to and approved by the Child Development Division for the applicable contract period.

(i) "Commingled child care services" means the provision of services to both subsidized and nonsubsidized children in the same classroom at the same time.

(j) "Contract period" means the time span the contract is in effect as specified in the child development contract.

(k) "Depreciation" means a cost in the current fiscal year that is based on acquisition costs, less any estimated residual value, computed on a straight line method (based on the normal, estimated useful life expectancy of the asset).

(l) "Disallowed costs" means costs which have been incurred but are not reimbursable because they are not reasonable and/or necessary for the performance of the contract as defined in Section 18013(s) of this Division or are nonreimbursable as specified in Section 18035 of this Division.

(m) "Indirect cost allocation plan" means a written justification and rationale for assigning the relative share of indirect costs across more than one program or contract.

(n) "Indirect cost" means an expense that cannot be readily assigned to one specific program or one specific line item within a program.

(o) "Maximum reimbursable amount" means the total dollar amount of a contract. Reimbursement from the State shall not exceed the maximum reimbursable amount.

(p) "Net reimbursable program costs" means the portion of the actual and allowable net costs which are incurred in the provision of child care and development services for subsidized children.

(q) "Private contractor" means an entity other than a public agency which is tax exempt or non-tax exempt and under contract with the State Department of Education for the provision of child care and development services.

(r) "Public contractor" means a school district, community college district, county superintendent of schools, campus of the California State University or the University of California system, county, city or other public entity under contract with the State Department of Education for the provision of child care and development services.

(s) "Reasonable and necessary costs" means expenditures that, in nature and amount, do not exceed what an ordinarily prudent person would incur in the conduct of a competitive business.

(t) "Restricted income" means income which may only be expended for specific limited purposes.

(u) "Total expenditures" means all costs for the provision of subsidized services under the contract and any nonsubsidized services which are provided in commingled classrooms.

(v) "Unnecessarily increase the value" means an improvement of a site beyond what is required to meet Title 22 California Code of Regulations, Community Care Licensing Standards.

(w) "Use allowance" means an alternate method for claiming the use of the contractor's assets as a cost when depreciation methods are not used.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8208 and 8261, Education Code.

§ 18014 - Notification of Address Change.

(a) Contractors shall notify the Child Development Division in writing of any change in mailing address for communication regarding the contract within ten (10) calendar days of the address change.

(b) Contractors shall notify the Child Development Division in writing of any proposed change in operating facility address(es) at least thirty (30) calendar days in advance of the change unless such change is required by an emergency such as fire, flood or earthquake.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18015 - Private Agencies; Open Board Meetings.

Any private tax exempt or private non-tax exempt agency receiving public funds under these regulations must, to the extent of the publicly funded program, comply with the Ralph M. Brown Open Meetings Act, Government Code Sections 54950-54961.

NOTE: Authority cited: Sections 8203(f) and 8261, Education Code. Reference: Section 54951.7, Government Code.

§ 18016 - Materials Developed with Contract Funds.

(a) If the contractor receives income from materials developed with contract funds, the use of the income shall be restricted to the child development program.

(b) If the materials were developed in part with contract funds, the income from the sale of the materials that shall be used in the child development program shall be computed in direct proportion to the share of contract funds used in development of the materials.

(1) An acknowledgement of the use of State funds in the development of materials;

(2) A disclaimer that the contents do not necessarily reflect the position or policy of the State Department of Education.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18017 - Prohibition Against Religious Instruction or Worship.

The contractor shall not provide nor be reimbursed for child care and development services which include religious instruction or worship.

NOTE: Authority cited: Section 8269, Education Code. Reference: Section 8265, Education Code.

§ 18018 - Prohibition Against Presigned Checks, Child Development Division Prior Written Approval; Two (2) Authorized Signatures on Checks.

Except for external payroll services, private contractors:

(a) Shall not use any presigned, preauthorized, or pre-stamped checks, without the prior written approval of the Child Development Division; and

(b) Shall require two (2) authorized signatures on all checks unless:

(1) the contractor has a policy approved by its governing board requiring dual signatures only on checks above a specified dollar amount; and

(2) the annual audit verifies that appropriate internal controls are maintained.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18019 - Prohibition Against Loans and Advances.

(a) Contractors shall not loan contract funds to individuals, corporations, organizations, public agencies or private agencies.

(b) Contractors shall not advance unearned salary to employees.

(c) Contractors shall not make advance payments to subcontractors and shall compensate subcontractors after services are rendered or goods are received except for:

(1) Subcontractors providing direct child care and development services; and

(2) Subcontractors with subcontracts exempt from the provisions of Article 2 of this Chapter as specified in Section 18026 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18020 - Compliance with Title 22 California Code of Regulations.

Contractors with facilities which are exempt by statute or otherwise exempt from licensure shall comply with health and safety regulations for day care centers and family child care homes as specified in Title 22 California Code of Regulations, Community Care Licensing Standards in order to qualify for child care and development program contract funds.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18021 - Payments to Family Child Care Providers.

(a) Contractors who operate through family child care homes shall pay each non-employee family child care provider the same rate(s) the provider charges non-subsidized families.

(b) For non-employee family child care home providers that do not serve non-subsidized children, the contractor shall pay a rate that is within 1.5 standard deviations of the mean market rate for family child care homes as established by the most recent survey of the local resource and referral agency.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18022 - Contracts with Multiple Service Areas.

(a) A contractor with more than one service delivery area as specified in and funded through a single contract shall maintain service at the same level, plus or minus ten percent (10%) of the contracted child hours or child days of enrollment, as applicable, in the individual service area(s) specified in its current contract.

(b) The contractor may request approval from the Child Development Division to vary service levels by more than ten percent (10%) if the contractor can demonstrate that the need for services in the designated area(s) has changed.

(c) The Child Development Division shall approve or deny the request within thirty (30) calendar days of receipt of the request.

(d) If the request is denied, the contractor may appeal this decision in accordance with Section 18308 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8269, Education Code.

§ 18023 - Compliance Reviews of Contractors.

(a) At least once every three (3) years and as resources permit, the State Department of Education shall conduct reviews at the contractor's office(s) and operating facility(ies) to determine the contractor's compliance with applicable laws, regulations or contractual provisions.

(b) The reviews shall be conducted by consultants, analysts and/or management staff of the Child Development Division, Office of External Audits, Local Assistance Bureau or other State of California representatives.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261(a)(2), Education Code.

§ 18024 - Contractor's Termination for Convenience.

(a) A contractor may terminate the contract for any reason during the contract term.

(b) The contractor shall notify the Child Development Division of its intent to terminate the contract at least ninety (90) calendar days prior to the date the contractor intends to terminate the contract.

(c) Within fifteen (15) days from the date the contractor notifies the Child Development Division of its intent to terminate the contract, the contractor shall submit:

(1) A current inventory of equipment purchased in whole or in part with contract funds; and

(2) The names, addresses and telephone numbers of all families served by the contract and all staff members funded by the contract.

(3) Family child care home and Alternative Payment program contractors shall also submit the names, addresses and telephone numbers of all providers of subsidized services funded by the contract.

(d) Upon receipt of a notice of intent to terminate, the Child Development Division will transfer the program to another agency as soon as practicable.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8269, Education Code.

§ 18025 - Title, Use, Disposition and Retention of Equipment.

(a) Title. When equipment is purchased with State funds, title shall vest in the contractor only for such period of time as the contractor has a contract with the State Department of Education.

(b) Retention of Equipment. The Child Development Division may provide written authorization for the contractor to retain the equipment for the contractor's own use if a fair compensation is paid to the State for the State's share of the cost of the equipment. Fair compensation shall be determined by the State using the State's share of original acquisition cost, less depreciation, computed on a straight line method over the estimated useful life expectancy of the equipment.

(c) Use. When equipment is purchased in whole or in part with State funds, the contractor shall use the equipment exclusively in the program(s) from which funds were used to purchase the equipment. If the contractor wishes to share the use of the equipment between/among two (2) or more programs, the cost of such equipment shall be prorated between/among the programs.

(d) Disposition. If the contractor no longer has a contract with the State Department of Education, the contractor shall dispose of the equipment in accordance with written directions from the Child Development Division.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8269, Education Code.

[CA] [50101900] [SC002000] [A002000]

Article 2 - Subcontracts

§ 18026 - Subcontracts Excluded from Scope of This Article.

The following types of relationships are not subject to the regulations contained in this Article:

(a) Employment agreements;

(b) Facility rental or lease agreements;

(d) Payment arrangements with child care providers for Alternative Payment programs;

(e) Medical or dental service agreements;

(f) Bookkeeping/auditing agreements, except for Section 18027;

(g) Food services agreements;

(h) Janitorial and groundkeeping agreements;

(i) A subcontract with a public agency; and

(j) Subcontracts with an individual for less than ten thousand dollars ($10,000.00), except for Section 18027.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18027 - Private Contractors; Three (3) Bids for Subcontracts Exceeding the Amount Stated in Annual Contract.

Private contractors shall obtain at least three (3) bids or estimates for subcontracts that exceed the amount stated for subcontract bid requirements in the annual child development contract.

(a) The subcontract shall be awarded to the lowest responsible bidder.

(b) If three (3) bids or estimates cannot be obtained, the private contractor shall maintain documents in its records that establish:

(1) The reasons why three (3) bids or estimates could not be obtained; and

(2) The reasonableness of the proposed expenditure without three (3) bids or estimates.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18028 - Prior Child Development Division Approval Required for All Subcontracts Exceeding the Amount Stated in the Annual Child Development Contract.

Contractors shall obtain prior written approval from the Child Development Division for subcontracts that:

(a) Are not excluded from the provisions of this Article by Section 18026 of this Division; and

(b) Exceed the amount stated for subcontract approval in the annual child development contract.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18029 - Required Documents for Prior Child Development Division Approval of Subcontracts.

The contractor shall submit the following documents to the Child Development Division before entering into any agreement with a proposed subcontractor and before any work begins pursuant to the proposed subcontract:

(a) A copy of each bid or estimate;

(b) If applicable, the documents required to be maintained under Section 18027(b) of this Division;

(d) For capital outlay subcontracts, documents showing that the bidder selected by the contractor has obtained a payment bond in an amount not less than one-half (1/2) the amount of the proposed subcontract; and

(e) Two (2) copies of the proposed subcontract, including a proposed line-item budget which shows the costs of the services to be performed. The budget for a proposed subcontract for renovation and repair shall show the total cost of labor and the total cost of materials.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18030 - Child Development Division Approval or Disapproval of Subcontract Within Thirty (30) Calendar Days.

(a) The Child Development Division shall approve or disapprove a proposed subcontract submitted for prior approval within thirty (30) calendar days following the receipt of all required documents.

(b) Upon approval or disapproval, the Child Development Division shall return a copy of the approved subcontract or a copy of the disapproved subcontract to the contractor.

(d) If the request for approval of a subcontract is denied, the contractor may appeal the decision in accordance with instructions specified in Section 18308 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18031 - Required Subcontract Provisions.

Every subcontract shall specify:

(a) The dates within which the subcontractor is to perform the contract. The time for subcontractor performance shall not begin prior to, nor shall the time extend beyond, the time period of the contract between the contractor and the State.

(b) The dollar amount of the subcontract or specify an amount not to exceed a maximum dollar amount.

(d) The responsibilities of each party under the subcontract.

(e) That the subcontractor, and the agents and employees of the subcontractor, in the performance of the subcontract, are acting in an independent capacity and not as officers or employees or agents of the State of California.

(f) That modifications of the subcontract shall be in writing, and that for subcontracts in excess of the amount stated in the annual child development contract, prior written Child Development Division approval is required unless the subcontract is otherwise exempt from prior Child Development Division approval.

(g) That the subcontract is the complete and exclusive statement of the mutual understanding of the parties and that the subcontract supersedes and cancels all previous written and oral agreements and communications relating to the subject matter of the subcontract.

(h) Remedies, in case of a breach of contract, for subcontracts in excess of ten thousand dollars ($10,000.00).

(i) That the State of California retains title to any equipment or supplies purchased with State funds and that the equipment shall be returned to the contractor upon termination of the subcontract. The subcontract shall also specify that the subcontractor shall obtain prior written approval from the contractor and the Child Development Division for any unit of equipment that costs in excess of the amount stated in the annual child development contract.

(j) That the subcontractor shall be reimbursed for travel and per diem expenses only at rates that do not exceed the rates paid to the majority of State Department of Education's represented employees computed in accordance with State Department of Personnel Administration regulations, Title 2 California Code of Regulations, Subchapter 1.

(k) That the subcontractor agrees to indemnify and hold harmless the State of California, its officers, agents and employees from any and all claims and losses occurring or resulting to any and all contractors, subcontractors, materialmen, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of the subcontract, and from any and all claims and losses occurring or resulting to any person, firm or corporation that may be injured or damaged by the subcontractor in the performance of the subcontract.

( l) That for those subcontracts requiring Child Development Division prior approval, the subcontractor shall maintain records for program review, evaluation, audit and/or other purposes and make the records available to agents of the State for a period of five (5) years.

(m) Contain provisions of the "Nondiscrimination Clause" included in the prime contract as specified in Title 2 California Code of Regulations, Chapter 5, Section 8107.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18032 - Audit Requirements for Subcontracts.

(a) Subcontracts requiring Child Development Division approval shall be audited in accordance with State Department of Education Audit Guidelines.

(b) The cost of the audit shall be reimbursable and shall be borne by the contractor either directly or as an allowance in the subcontract.

(1) School districts, county offices of education and community colleges shall submit the audit of the subcontract by the fifteenth day of the fifth month following the fiscal year in which the subcontracted services were performed;

(2) All other contractors shall submit the subcontract audit along with the contractor's audit as specified in Section 18071 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8448, Education Code.

[CA] [50101900] [SC002000] [A003000]

Article 3 - Costs

§ 18033 - General Standards.

Contractors will be reimbursed for actual costs that are reasonable and necessary to the performance of the contract as defined in Section 18013(s) of this Division.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8265 and 8275, Education Code.

§ 18034 - Specific Items of Reimbursable Costs.

Reimbursable costs include, but are not limited to, the following:

(a) Start-up costs specified in Education Code Section 8275, not to exceed fifteen percent (15%) of the annual contract amount.

(b) Close-down costs for Migrant Programs as specified in Education Code Section 8233.

(c) Administrative costs, not to exceed fifteen percent (15%) of net reimbursable program costs. Such costs include activities that do not provide a direct benefit to the children, parents, or providers.

(d) Employee compensation, including fringe benefits, and personal service contracts.

(e) Equipment and equipment replacement with prior Child Development Division approval if required in the annual child development contract.

(f) Improvement of sites and adjacent grounds to meet or continue to meet Title 22 California Code of Regulations, Community Care Licensing Standards. Reimbursable improvements are those that:

(1) do not unnecessarily increase the value as defined in 18013(v) of this Division of a facility; and

(2) the contractor has obtained prior Child Development Division approval if required in the annual child development contract.

(g) Taxes, insurance, and maintenance for buildings and/or equipment.

(h) Depreciation based on the useful life of an asset using a straight line method from the original date of acquisition. Depreciation shall not be claimed on land, donated assets or assets purchased with public funds.

(i) A use allowance for buildings and improvements, computed at annual rate not to exceed two percent (%) of acquisition costs. A use allowance for equipment computed at an annual rate not to exceed six and two-thirds percent (6 2/3%) of acquisition costs. A use allowance shall not be claimed on assets purchased with contract funds or on land, and shall not be claimed for assets for which depreciation has been claimed.

(j) Travel and per diem expenses, including approved out-of-state travel, at rates not to exceed those rates paid to the majority of State Department of Education's represented employees computed in accordance with State Department of Personnel Administration regulations, Title 2 California Code of Regulations, Subchapter 1. The Child Development Division shall notify the contractor of a change in expense rates within thirty (30) calendar days after the Child Development Division has received notification of a change in rates from the State Department of Personnel Administration.

(k) An indirect cost rate based on an approved cost allocation plan, not to exceed the rate specified in the annual child development contract.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8269, Education Code.

§ 18035 - Nonreimbursable Costs.

The following costs shall not be reimbursable under the child development contract:

(a) Bad debts, including losses arising from uncollectible accounts and any related legal costs. Uncollected parent fees are not considered to be bad debts if documentation of collection attempts exists;

(b) Contributions;

(d) Costs of fines or penalties;

(e) Costs of idle facilities unless those costs are related to a partial year program and the costs of the idle facilities have been approved by the Child Development Division;

(f) Costs incurred after the contract has been terminated;

(g) Fund raising costs except as specified in Section 18277 of this Division;

(h) Consumer interest except:

(1) Interest on borrowed funds when apportionments are withheld because of a delay or error attributable to the State and the amount of interest claimed is approved by the Child Development Division; or

(2) when interest is part of a lease purchase agreement.

(i) Investment management costs;

(j) Costs of organization of a nonprofit corporation such as incorporation fees or consultant fees;

(k) Public relations consultant fees;

(l) Costs of legal, consulting and accounting services incurred in prosecution of claims against the State;

(m) State and federal income taxes;

(n) Costs for the acquisition of sites and buildings except through depreciation;

(o) Bonuses unless part of a collective bargaining agreement;

(p) Compensation to the members of the board of directors except for:

(1) reimbursement, computed in accordance with Section 18034 of this Division, for travel and/or per diem incurred while the members are conducting business for the organization; and

(2) as provided in the California Corporation Code Section 5227, et seq.

(g) Costs of subcontracts which increase the contractor's cost or subcontracts which contain a provision for reimbursement for cost-plus a percentage-of-costs.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8208(o) and 8269, Education Code.

§ 18037 - Charging of Expenditures.

Reimbursement for net reimbursable program costs shall meet the following criteria:

(a) Costs must be incurred during the contract period.

(b) Contractors shall not use current year contract funds to pay prior or future year obligations.

(c) The cost of the annual independent audit may be claimed either in the contract period which was the subject of the audit or during the contract period in which the audit is completed.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8269, Education Code.

§ 18038 - Recoupment of Advanced Contract Funds.

(a) The State Department of Education shall recoup any payments made for costs which were not reasonable and necessary. The amount that is recouped shall be the excess payment over the reasonable or fair market value, or one hundred percent (100%) of the cost, if the cost was not necessary.

(b) The State Department of Education may elect to recover any costs of recoupment, including collection services or attorney fees.

NOTE: Authority cited: Sections 8265 and 8269, Education Code. Reference: Section 8269, Education Code.

§ 18039 - Use of Subsidized Parent Fees.

(a) Fees received from subsidized parents are to be expended and earned by the contractor before contract funds shall be claimed for reimbursement.

(b) Such fees shall be expended on reimbursable costs and earned by providing child days/hours of enrollment beyond the minimum required by the contract at a rate equal to the lesser of the daily/hourly contract rate or the actual cost.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8265, Education Code.

§ 18040 - Prior Approval for Certain Capital Outlay Expenditures.

(a) When expenditures for equipment, equipment replacement and improvements exceed the level specified in the annual child development contract, private contractors shall obtain at least three (3) bids or estimates;

(1) Award shall be made to the lowest responsible bidder;

(2) If three (3) bids or estimates cannot be obtained, the contractor shall maintain documentation that specifies the reason(s) why three (3) bids or estimates could not be obtained and establishes the reasonableness of the cost without three (3) bids or estimates;

(b) When expenditures for equipment, equipment replacement and improvements exceed the level specified in the annual child development contract, the contractor shall request prior written approval from the Child Development Division.

(c) The Child Development Division shall approve or deny the request for the capital outlay expenditure within thirty (30) calendar days of the receipt of the request;

(d) If the request is denied, the contractor may appeal the decision in accordance with instructions specified in Section 18302 of this Division.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8265, Education Code.

§ 18041 - Prior Approval for Out-of-State Travel.

(a) Contractors shall be reimbursed for out-of-state travel expenses only with prior written approval from the Child Development Division. The Child Development Division shall not approve out-of-state travel expenses:

(1) For more than one employee per contract per year;

(2) For contractors with delinquent accounts payable which are delinquent more than ninety (90) calendar days after the date of the original invoice;

(3) For contractors on conditional status;

(4) When there is no clear benefit to the state; or

(5) When the benefit to the state can be obtained within California.

(b) The Child Development Division shall approve or deny the request for out-of-state travel within thirty (30) calendar days of the receipt of the request;

(c) If the request is denied, the contractor may appeal the decision in accordance with instructions specified in Section 18308 of this Division.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8265, Education Code.

[CA] [50101900] [SC002000] [A004000]

Article 4 - Determination of Reimbursement

§ 18054 - Determination of Reimbursable Amount.

(a) Except for Resource and Referral programs, all contractors shall be reimbursed for an audited claim that is the least of the following:

(1) The maximum reimbursable amount as stated in the annual child development contract; or

(2) The net reimbursable program costs; or

(3) The product of the adjusted child days/hours of enrollment for certified children, times the contract rate per child day/hour of enrollment, times the actual percentage of attendance plus five percent (5%), but in no case to exceed one hundred percent (100%) of enrollment;

(b) Resource and Referral programs will be reimbursed for the lesser of (a)(1) or (a)(2) of this section.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Section 8265, Education Code.

§ 18055 - Minimum Days of Operation.

If the contractor fails to operate at least ninety eight percent (98%) of the minimum days of operation required in its contract, ceases operation or the contract is terminated prior to the end of the contract period, the maximum reimbursable amount shall be reduced in proportion to the percentage of the contract minimum days of operation that the contractor was not in operation.

NOTE: Authority cited: Section 8269, Education Code. Reference: Section 8269, Education Code.

§ 18056 - Reduction, Withholding, and Cancelling Apportionments to Contractors.

(a) The State Department of Education shall reduce, withhold or cancel any scheduled apportionment when one or more of the following conditions exist:

(1) The contractor has not submitted an acceptable audit for any prior year of operation on or before the date due.

(2) The contractor has not submitted the reports required by Sections 18068, 18069, 18070, 18071, 18072 and 18073 of this Division, if applicable, on or before the date due.

(3) The contractor will not earn the full contract amount based on the current year projected and the prior year actual net reimbursable programs costs as determined by the State Department of Education, Local Assistance Bureau.

(4) A creditor of the contractor has placed a lien on the contractor's scheduled apportionments.

(5) The contractor has accounts payable which are:

(A) more than ninety (90) days delinquent to the State Department of Education; and

(B) not under appeal as specified in either Section 18301 or Section 18308 of this Division.

(b) If any apportionment is to be reduced, withheld or cancelled, the State Department of Education shall provide the contractor prior written notice of the intended action.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8265, Education Code.

§ 18057 - Order of Expenditure.

Expenditure from the Child Development Fund shall occur in the following order:

(a) Fees collected from parents of certified children shall be first in and first out.

(b) State or federal contract funds apportioned by the State Department of Education shall be second in and second out.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8265, Education Code.

[CA] [50101900] [SC002000] [A005000]

Article 5 - Accounting and Reporting Requirements

§ 18063 - General Provisions.

Contractors shall report expenditures on an accrual basis.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261 and 8448(g), Education Code.

§ 18064 - Child Development Fund; Interest Bearing Accounts.

(a) All contractors shall establish a fund to be known as the "Child Development Fund" as specified in Education Code Section 8328, except that private contractors shall establish the fund in a federally insured banking institution located in California.

(b) Contractors with multiple fund sources shall establish separate program cost accounts for each source of funds.

(c) If a contractor places advanced contract funds in an interest bearing account, the interest bearing account shall be a separate account within the Child Development Fund.

(d) Interest earned shall be retained by the contractor if:

(1) Expended on reimbursable costs; and

(2) Except Resource and Referral programs, earned by providing subsidized days/hours of enrollment beyond the minimum required to earn the maximum reimbursable amount at a rate equal to the lesser of the daily/hourly contract rate or the actual program costs.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8328, Education Code.

§ 18065 - Enrollment and Attendance Accounting.

(a) Contractors operating centers and/or family child care homes shall use daily sign-in/sign-out sheets as a primary source document for audit and reimbursement purposes.

(b) One of the following persons shall enter the time of arrival and departure on a sign-in/sign-out sheet and, except as specified in Subsection (c) below, shall sign the sheet using their full signature:

(1) The parent or other adult authorized by the parent to drop off/pick up a child; or

(2) The staff person designated by the contractor as the person responsible for entering the times of arrival and departure if the child is not dropped off/picked up by a parent or other adult authorized by the parent.

(c) First and last initials of the contractor's authorized representative along with a notation of the time are required to document when a school-age child departs for and returns from school during the day.

(d) Contractors operating an Alternative Payment program may use an alternative to daily sign-in/sign-out sheets as documentation of attendance for reimbursement purposes with the prior written approval of the Child Development Division.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8269, Education Code.

§ 18066 - Verification of Excused Absence; Policies.

(a) If the absence is claimed by the contractor as an excused absence as defined in Education Code Section 8208(d), the attendance accounting records shall contain verification that includes:

(1) The name of the child;

(2) The date(s) of absence;

(3) The specific reason for the absence; and

(4) The signature of the parent or the contractor's authorized representative if verification is made by telephone.

(b) If an excused absence is based on time spent with a parent or other relative as required by a court of law, the basic data file shall contain a copy of the Court Order.

(c) Contractors shall adopt reasonable policies delineating circumstances that would constitute an excused absence for "family emergency" and "in the best interest of the child."

(d) Contractors shall also adopt a policy governing unexcused absences which may include reasonable limitations, if any.

(e) Contractors shall inform parents of these policies.

(f) Except for children who are recipients of protective services or at risk of abuse or neglect, excused absences "in the best interest of the child" shall be limited to ten (10) days during the contract period.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8208(d), 8261 and 8263, Education Code.

§ 18067 - General Recordkeeping Requirements.

(a) All records shall be retained for a minimum period of five (5) years.

(b) Claims for reimbursement shall not be paid unless there are documents to support the claims. The contractor has the burden of supporting claims for reimbursement.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8269, Education Code.

§ 18068 - Attendance and Expenditure Reports.

(a) Contractors shall submit reports containing the following information for each contract to the State Department of Education, Local Assistance Bureau at intervals specified in the annual child development contract:

(1) Days/hours of enrollment and attendance for all children served in the program in the current reporting period and year to date;

(2) Total days of operation in the current reporting period and year to date;

(3) Except for contractors operating Alternative Payment programs, the report shall include all services, revenues and expenditures for both subsidized and nonsubsidized children if nonsubsidized and subsidized children are commingled as defined in Section 18013(i) of this Division;

(4) Amount and sources of all revenues other than advanced contract funds for the current reporting period and the year to date total; and

(5) Total expenditures related to the program operation for the current reporting period and the year to date total.

(b) Reports not received by the due dates shall be considered delinquent. Penalties for delinquent reporting are specified in Section 18056 of this Division.

NOTE: Authority cited: Section 8269, Education Code. Reference: Section 8269, Education Code.

§ 18069 - Service Data Report for Resource and Referral Programs.

Contractors operating Resource and Referral programs shall submit reports to the Child Development Division which contain the following data at intervals specified in the annual child development contract:

(a) Number of requests for general child care information and child care referrals.

(b) Age categories of child care requests and referrals:

(1) Infants (birth to eighteen months);

(2) Toddlers (eighteen months to thirty-six months);

(3) Preschool (3 years to kindergarten enrollment); and

(4) School-age (kindergarten enrollment to age 14).

(1) Full-time;

(2) Part-time;

(3) Before and after school;

(4) Occasional (drop-in, temporary, emergency care);

(5) Summer care only; and

(6) Special time categories (nights, weekends, rotating shifts, swing shift, graveyard shift, etc.).

(d) Reasons for requesting referrals:

(1) Employed or seeking employment;

(2) School or training;

(3) Respite care (emergency only);

(4) Parental relief (non-emergency);

(5) Child's developmental or special need;

(6) Child is ill and cannot attend school or usual child care arrangement; and

(7) Child Protective Service referral.

(e) Number of technical services provided:

(1) Written materials;

(2) Telephone consultations;

(3) Program visitations;

(4) Office consultations;

(5) Resource information library;

(6) Toy/equipment lending library;

(7) Published newsletters;

(8) Conducted workshops or conferences;

(9) Attended meetings with child care providers;

(10) Attended meetings with child care related service agencies;

(11) Coordinated workshops or conferences; and

(12) Media contacts.

(f) Referral procedures utilized:

(1) Telephone referrals service;

(2) Answering machine requests for referrals;

(3) Office hours for appointments or drop-in referrals; and

(4) Evening or weekend office hours for referrals.

(g) Types of child care providers in resource file:

(1) Centers;

(2) Family child care home (licensed); and

(3) In-home caregivers.

(h) Responses to referral requests:

(1) Method of response;

(2) Number of responses; and

(3) Languages used to respond.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8212, Education Code.

§ 18070 - Legislative Report Data.

(a) Contractors shall submit statistical, cost and program data as requested by the State Department of Education in order for the Department to prepare various legislatively mandated reports.

(b) By September 30 of each year, the Child Development Division shall issue a notice to all affected contractors of any data collection efforts planned for the current contract period.

(c) Contractors shall submit the data to the State Department of Education by the date specified in the State Department of Education's request for this information.

(d) Reports not received by the required due date shall be considered delinquent. Penalties for delinquent reporting are specified in Section 18056 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8280, Education Code.

§ 18071 - Audits and Auditors.

(a) Contractors shall submit to the State Department of Education Office of External Audits an acceptable annual financial and compliance audit.

(b) All audits shall be performed by:

(1) A Certified Public Accountant who possesses a valid license to practice within the State of California;

(2) A Public Accountant licensed on or before December 31, 1970 and currently certified and licensed by the State of California; or

(3) A member of the State Department of Education staff of auditors.

(c) Non-school district contractors shall submit the audit by the fifteenth day of the fifth month following the end of the contract period or earlier if specified by the State Department of Education.

(d) The audits for school districts and county offices of education shall be submitted to the State Controller by November 15, or by December 31 if an extension has been approved by the applicable county superintendent of schools.

(e) If, for any reason, the contract is terminated during the contract period, the audit shall cover the period from the beginning of the contract through the date of termination.

(f) Public agencies may have their audits prepared by in-house auditors if the public contractor has internal audit staff that performs auditing functions and meets the tests of independence found in Standards for Audits of Governmental Organization, Programs, Activities, and Functions issued by the Comptroller General of the United States.

(g) Subcontracts which are required to have approval from the Child Development Division prior to their execution as specified in Section 18028 of this Division shall be audited in accordance with the requirements stated in Section 18032 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261, 8448, 33420 and 41020.5.

§ 18072 - Review of Audit by the State Department of Education Office of External Audits.

(a) The State Department of Education Office of External Audits shall conduct a review of the audit to determine whether the audit is acceptable and to determine the contractor's net reimbursable program costs. The Office of External Audits' determination of earnings shall be the final accounting of any amount payable to or receivable from the contractor pursuant to the contract.

(b) The contractor may appeal the Office of External Audits' findings according to the procedures specified in Section 18301 of this Division if the amount of the demand for remittance meets or exceeds the threshold specified in Education Code Section 8402(c).

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261, 8402(c) and 8448, Education Code.

§ 18073 - Delinquent Audits; One-Time Extension; Liability for State Department of Education Audit Costs.

(a) If an audit is not received on or before the required due date and an extension has not been granted, the audit shall be considered delinquent and all apportionments shall be withheld as specified in Section 18056 of this Division.

(b) Except for contractors on conditional status, the State Department of Education Office of External Audits may grant a contractor a one-time only, thirty (30) calendar day extension of the audit due date provided the inability of the contractor to submit the audit by the due date was beyond the fault and control of the contractor.

(c) Contractors shall be liable for all State Department of Education costs incurred in obtaining an independent audit if the contractor fails to produce or submit an acceptable audit.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261 and 8448, Education Code.

[CA] [50101900] [SC003000]

Subchapter 3 - General Child Care Programs

[CA] [50101900] [SC003000] [A001000]

Article 1 - General Provisions

§ 18077 - Scope of Chapter.

Unless otherwise provided in this Division, the regulations in this chapter apply to all contracting agencies authorized to establish, maintain, or operate services pursuant to the Child Care and Development Services Act, Chapter 2, Part 6 of Title 1 of the California Education Code (commencing with Section 8200).

NOTE: Authority cited: Section 8261 and 8263, Education Code. Reference: Sections 8261 and 8265, Education Code.

§ 18078 - Definitions.

For the purposes of this Division, the following definitions shall apply:

(a) "Adjusted monthly income" means total countable income minus verified child support payments paid by the parent whose child is receiving child development services. Except for child support payments paid by the parent, monthly income shall not be adjusted because of voluntary or involuntary deductions. When income fluctuations occur, the adjusted monthly income shall be computed by averaging the total adjusted income received during the twelve (12) months immediately preceding the month in which the application for services is signed.

(b) "Certify eligibility" means the formal process the contractor goes through to collect information and documentation to determine that the family and/or child meets the criteria for receipt of subsidized child development services as specified in Education Code Sections 8263(a)(1) and 8263(a)(2). The signature of the contractor's authorized representative on an application for services attests that the criteria have been met.

(c) "Child protective services" means children receiving protective services through the local county welfare department as well as children identified by a legal, medical, social service agency or emergency shelter as abused, neglected or exploited or at risk of abuse, neglect or exploitation.

(d) "Declaration" means a written statement signed by a parent under penalty of perjury attesting that the contents of the statement are true and correct to the best of his or her knowledge.

(e) "Displace families" means to disenroll families in order to reduce service levels due to insufficient funding or inability of a contractor to operate one or more sites because of reasons stated in Education Code Section 8271.

(f) "Income eligible" means for the purpose of child care and development services (except State Preschool, Severely Handicapped and Federal Based Migrant programs) that a family's adjusted monthly income is at or below eighty-four percent (84%) of the state median income, adjusted for family size at the time of initial enrollment, and shall not exceed one hundred percent (100%) of median income, adjusted for family size.

(g) "Income fluctuation" means income which varies because of income such as bonuses, commissions, overtime, lottery winnings or migrant agricultural work or other seasonal employment.

(h) "Legally qualified professional" means a person licensed under applicable laws and regulations of the State of California to perform legal, medical, health or social services for the general public.

(i) "Parental incapacity" means that the ability of the child's parent(s) to provide normal care for the child is significantly limited.

(j) "Recipients of service" means families and/or children enrolled in a child care and development program subsidized by the State Department of Education.

(k) "State median income" means the most recent median income for California families as determined by the State Department of Finance.

(l) "Total countable income" means income that does not include the following:

(1) Earnings of a child under age eighteen (18) years;

(2) Loans, grants, and scholarships obtained under conditions that preclude their use for current living costs;

(3) Grants or loans to students for educational purposes made or insured by a state or federal agency;

(4) Allowances received for uniforms or other work required clothing, food and shelter.

(5) Business expenses for self-employed family members.

(m) "Update the application" means the process of revising the application for services between recertifications as specified in Section 18103 of this Division. The application shall be revised by inserting the latest family information that documents the continued need and eligibility for child care and development services.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code.

[CA] [50101900] [SC003000] [A002000]

Article 2 - Basic Data File

§ 18081 - Contents of Basic Data File.

(a) Contractors shall establish and maintain a basic data file for each family receiving child care and development services.

(b) The basic data file shall contain an application for services and the following records as applicable to determine eligibility and need in accordance with Education Code Section 8263 (a)(1) and (a)(2):

(1) Documentation of total countable income;

(2) Documentation of employment;

(3) Documentation of training;

(4) Documentation of parental incapacity;

(5) Documentation of child's special needs;

(6) Documentation of homelessness;

(7) Documentation of seeking permanent housing for family stability;

(8) Written referral from a legal, medical or social services agency or emergency shelter for children receiving protective services for abuse, neglect or exploitation or at risk of abuse, neglect or exploitation.

(c) Certification of eligibility for federal Chapter 1, Migrant Funds shall be included for Federal Based Migrant Programs.

(d) Notice of Action, Application for Services and/or Recipient of Services shall be included.

(e) The basic data file shall contain all child health and emergency information required by Title 22 California Code of Regulations, Community Care Licensing Standards.

NOTE: Authority cited: Sections 8261, 8263 and 8269, Education Code. Reference: Sections 8261, 8263 and 8269, Education Code.

§ 18082 - Certification of Eligibility.

(a) The contractor shall designate the staff person(s) authorized to certify family/child eligibility; and

(b) Prior to initial enrollment and at the time of recertification, an authorized representative of the contractor shall certify each family's/child's eligibility for child care and development services after reviewing the completed application and documentation contained in the basic data file.

NOTE: Authority cited: Sections 8261, 8263 and 8269, Education Code. Reference: Sections 8261, 8263 and 8269, Education Code.

§ 18083 - Application for Services; Contents.

The application for services shall contain the following information:

(a) The parent's(s') full name(s), address(es) and telephone number(s);

(b) The names and birth dates of all children under the age of eighteen (18) in the family, whether or not they are served by the program;

(d) The names of other family members in the household related by blood, marriage or adoption;

(e) The reason for needing child care and development services as specified in Education Code Section 8263(a)(2):

(1) Child Protective Services;

(2) Employment;

(3) Training;

(4) Seeking Employment;

(5) Incapacitation of the parent;

(6) Special Need of the Child; or

(7) Seeking Permanent Housing for Family Stability.

(f) Employment or training information for parent(s) including name and address of employer(s) or training institution(s) and days and hours of employment or training, if applicable;

(g) Eligibility status as specified in Education Code Section 8263(a)(1):

(1) Child Protective Services;

(2) Current Aid Recipient;

(3) Income Eligible; or

(4) Homeless.

(h) Family size and income, if applicable;

(i) The parent's signature and date of the signature;

(j) The signature of the contractor's authorized representative certifying the eligibility.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

§ 18084 - Documentation of Total Countable Income.

(a) Unless that basis of need and eligibility as specified in Education Code Section 8263(a)(1) and (a)(2) is child protective services, the parent(s) shall provide copies of his or her most recent check stub(s) or the contractor shall record the following information on the application for services when viewing the most recent check stub(s):

(1) Date of the check(s);

(2) Amount(s) of the gross pay specified on the check stub;

(3) The period(s) covered by the check;

(b) If the parent is self-employed, he/she may provide other documentation of income such as a letter from the source of the income or copies of tax returns or statements of estimated income for tax purposes;

(c) The basic data file shall contain documentation as specified in Subsections (a) and (b) above for other income the family has received that is not excluded by Section 18078(l) of this Division.

(d) If the parent does not have documentation of his/her income, he/she may make a declaration of the amount of income.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

§ 18085 - Documentation of Public Assistance.

If the basis of eligibility as specified in Education Code Section 8263(a)(1) is current aid recipient, the contractor shall document that a family is receiving public assistance by recording the family's Medi-Cal number on the application.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

§ 18086 - Documentation of Employment; Employment in the Parent's Home.

(a) If the basis of need as specified in Education Code Section 8263(a)(2) is employment of the parent(s), the basic data file shall contain documentation of the parent(s) employment. The documentation of employment shall consist of one of the following:

(1) Statement of Wages which is attached to the check; or

(2) A written statement from the employer; or

(3) Documented telephone verification between the contractor's staff and the employer.

(b) If the family's employment is in the home:

(1) The nature of the work must preclude the supervision of the family's child(ren).

(2) Family child care providers are not eligible for subsidized services because their work does not preclude the supervision of their own children.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8206, 8261 and 8263, Education Code.

§ 18087 - Documentation of Training.

If the basis of need as specified in Education Code Section 8263(a)(2) is training, the basic data file shall contain documentation of the parent's(s') training. The documentation of training shall include:

(a) Name of the school or organization where training is received;

(b) Dates that current training activities will begin and end;

(d) The anticipated completion date(s) of all required training activities to meet the vocational goal;

(e) Class schedule which includes:

(1) The courses that the parent is currently enrolled in;

(2) Day(s) of the week and time(s) of day of the courses;

(3) Signature of parent along with the date the application was signed;

(4) Signature or stamp of the training institution's registrar and

(f) Report cards, transcripts or other records to document that the parent is making progress toward the attainment of the vocational goal in accordance with (d) of this Section.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

§ 18088 - Documentation of Parental Incapacity.

If the basis of need as specified in Education Code Section 8263(a)(2) is parental incapacity, the basic data file shall contain documentation provided by a legally qualified professional of the parent's(s') incapacitation. The documentation of incapacitation shall include:

(a) A description of the nature of the incapacitation;

(b) The probable duration of the incapacitation;

(c) A statement that the parent's(s') incapacitation prevents the parent(s) from caring for the child for some part of the day;

(d) The number of hours that child care is needed each day because of the incapacitation; and

(e) The name, address, telephone number and signature of the legally qualified professional who is rendering the opinion of incapacitation.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

§ 18089 - Documentation of the Child's Special Needs.

If the basis of need as specified in Education Code Section 8263(a)(2) is the child's medical or psychiatric special need, including those exceptional needs specified in Education Code Section 8208(l ), which cannot be met without the provision of child care and development services, the basic data file shall contain documentation of that special need from a legally qualified professional. The documentation of special need shall include:

(a) A description of the nature of the child's special need and the special services required to meet the child's special need;

(b) The probable duration of the child's special need;

(c) A statement that the child's special need cannot be met without the provision of child care and development services;

(d) The number of hours that the child care is needed each day;

(e) The name, address, telephone number and signature of the legally qualified professional who is rendering the opinion of the special need; and

(f) For children with exceptional needs, the basic data file shall also include information as specified in Education Code Section 56026 and Title 5 California Code of Regulations, Sections 3030 and 3031.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8250, 8261, 8263 and 56026, Education Code.

§ 18090 - Documentation of Homelessness.

If the basis of eligibility as specified in Education Code Section 8263(a)(1) is homelessness, the basic data file shall include documentation of homelessness. The documentation of homelessness shall include:

(a) A written referral from an emergency shelter or other legal, medical or social service agency; or

(b) A written parental declaration that the family is homeless.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

§ 18091 - Documentation of Seeking Permanent Housing.

If the basis of need as specified in Education Code Section 8263(a)(2) is seeking permanent housing for family stability, the basic data file shall include documentation of homelessness as specified in Section 18090 of this Division and a written parental declaration that the family is seeking permanent housing and needs child care and development services while seeking permanent housing.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

§ 18092 - Documentation of Child Protective Services.

If eligibility and need as specified in Education Code Section 8263(a)(1) and (a)(2) are based on child protective services, the basic data file shall contain a written referral, dated within the six (6) months immediately preceding the date of application for services, from a legal, medical, social service agency or emergency shelter. The written referral shall include either:

(a) A statement from the local county welfare department, child protective services unit certifying that the child is receiving child protective services and that child care and development services are a necessary component of the child protective services plan; or

(b) A statement by a legally qualified professional that the child is at risk of abuse or neglect and the child care and development services are needed to reduce or eliminate that risk; and

(d) The name, address, telephone number and signature of the legally qualified professional who is making the referral.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

§ 18093 - Certification of Federal Eligibility for the Federal Based Migrant Program.

Prior to enrolling a child in the Federal Based Migrant Program, the contractor shall certify that the child meets eligibility requirements of the Education Consolidation Improvement Act (E.C.I.A.), Chapter 1 Migrant funds. The certification documentation shall include:

(a) The child's full name, date of birth and birthplace;

(b) The parent(s) full name(s);

(d) The child's current address and the date of arrival;

(e) Information about the employment of the parent(s) which identifies such employment as:

(1) seasonal or temporary and

(2) relating to fishing or agriculture;

(f) The purpose of the child's last move which qualifies the child for migrant services as defined in 34 Code of Federal Regulations, Section 201.3 (b);

(g) A statement signed by the parent(s) certifying that the child has moved with the family in order for the parent(s) to seek temporary or seasonal agriculturally related work;

(h) A statement signed by the contractor's authorized representative certifying that the child meets the eligibility criteria necessary to receive services funded by E.C.I.A., Chapter 1 Migrant funds; and

(i) Documentation that the parent has given consent for the child to participate in the program.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8233, 8261 and 8263, Education Code and 34 Code of Federal Regulations, Part 201.

§ 18094 - Notice of Action, Application for Services.

(a) The contractor's decision to approve or deny services shall be communicated to the applicant through a written statement referred to as a Notice of Action, Application for Services, in accordance with Section 18118 of this Division. The contractor shall maintain copies of the Notice of Action, Application for Services in the basic data file. The Notice of Action, Application for Services shall include:

(1) The applicant's name and address;

(2) The contractor's name and address;

(3) The name and telephone number of the contractor's authorized representative who made the decision;

(4) The date of the notice;

(5) The method of distribution of the notice.

(b) If services are approved, the notice shall contain:

(1) Basis of eligibility;

(2) Daily/hourly fee, if applicable;

(3) Duration of the eligibility;

(4) Names of children approved to receive services;

(5) Hours of service approved for each day;

(1) The basis of denial; and

(2) Instructions for the parent(s) on how to request a hearing if they do not agree with the contractor's decision as stated in the Notice of Action, Application for Services in accordance with procedures specified in Sections 18120 and 18121 of this Division.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code.

§ 18095 - Notice of Action, Recipient of Services.

If upon recertification or update of the application, the contractor determines that the need or eligibility requirements are no longer being met, or the fee or amount of service needs to be modified, the contractor shall notify the family through a written Notice of Action, Recipient of Services in accordance with Section 18119 of this Division. The contractor shall maintain copies of all Notices of Action, Recipient of Services in the family's basic data file. The Notice of Action, Recipient of Services shall include:

(a) The type of action being taken;

(b) The effective date of the action;

(d) The name and address of the contractor;

(e) The name and telephone number of the contractor's authorized representative who is taking the action;

(f) The date the notice is mailed or given to the recipient;

(g) The method of distribution to the recipient;

(h) A description of the action;

(i) A statement of the reason(s) for the changes;

(j) A statement of the reason(s) for termination, if applicable; and

(k) Instructions for the parent(s) on how to request a hearing if they do not agree with the contractor's decisions as stated in the Notice of Action, Recipient of Services in accordance with procedures specified in Sections 18120 and 18121 of this Division. These instructions shall inform parents how to request a hearing from the contractor and, if necessary, from the Child Development Division as described in Sections 18120 and 18121 of this Division.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code.

[CA] [50101900] [SC003000] [A003000]

Article 3 - Enrollment

§ 18100 - Determination of Family Size; Exclusions.

(a) Family size shall be determined by the number of adults and children related by blood, marriage, or adoption who comprise the household in which the child is living.

(b) When an adult living in the household is neither the parent of the child nor the spouse of the parent, the adult and the adult's children if any, shall be excluded from the calculation of family size.

(c) When a child is living with adult(s) other than a natural or adoptive parent, the child shall be considered a family of one. In these cases, a need criterion as specified in Education Code Section 8263(a)(2) must be met by the caretaker of the child.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code.

§ 18101 - Parents Seeking Employment; Eligibility and Service Limitation.

If the basis of need is seeking employment:

(a) The family's period of eligibility is limited to sixty (60) working days during the contract period.

If the Governor declares a state of emergency and if the factual bases for the Governor's declaration indicate that opportunities for employment have temporarily diminished to such a degree that parents cannot be reasonably expected to find employment within sixty (60) working days of diligent searching, the Superintendent of Public Instruction may investigate to determine whether the sixty (60) working day limitation described in paragraph (a) should be suspended. If the Superintendent of Public Instruction determines that it is in the public interest to do so, he or she may, by order, suspend the sixty (60) working day limitation on eligibility during the period of the emergency or for a lesser time. The scope of the suspension, including the geographic areas and the persons affected, and its duration, shall be no more than necessary to respond to the emergency as determined in the Superintendent's investigation, and shall be specifically described in the Superintendent's order.

(b) Service is limited to an average not to exceed five (5) days per week for an average of less than six and one-half (6 1/2) hours per day.

(c) Families certified for the Greater Avenues of Independence program (GAIN Certified Families) are not subject to the sixty (60) day limitation set forth in subsection (a) above.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code.

§ 18102 - Notice to Families of Their Responsibility to Notify Contractor of Changes to Family Circumstances.

At the time the contractor certifies or recertifies eligibility of a family/child for child care and development services, the contractor shall inform the family of the family's responsibility to notify the contractor of any changes in family income, family size or the need for child care and development services as specified in Education Code Section 8263(a)(2).

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code.

§ 18103 - Recertification.

(a) After initial certification and enrollment, the contractor shall verify need and eligibility and recertify each family/child as follows:

(1) Families receiving services because the child is at risk of abuse, neglect or exploitation shall be recertified at least once every six (6) months;

(2) Families receiving services because of actual abuse, neglect or exploitation shall be recertified at least every six (6) months and, at the time of recertification, the contractor shall document that the family is participating in a protective services plan in accordance with the requirements of their local county welfare department, child protective services unit to alleviate the circumstances causing the abuse, neglect or exploitation;

(3) All other families shall be recertified at least once each contract period and at intervals not to exceed twelve (12) months;

(b) Contractors shall update the family's application to document continued need and eligibility as specified in Education Code Section 8263(a)(1) and (a) (2) and determine any change to fee assessment, if applicable, as follows:

(1) For migrant and other seasonally employed families, the application shall be updated within thirty (30) days whenever there is a change in family size or need as specified in Section 18083 (e) of this Division if need is based on training or incapacity of the parent;

(2) For all other families, the application shall be updated within thirty (30) days whenever there is a change in family size, income, public assistance status or need as specified in Section 18083 (e) of this Division;

(3) The requirement for updating the files does not apply to families receiving services because the child is abused, neglected or exploited or at risk of abuse, neglect or exploitation.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

§ 18104 - Limited Term Service Leave Requirements.

(a) If the family will temporarily not have a need for subsidized child care and development services as specified in Education Code Section 8263(a)(2), the contractor may grant the family a limited term service leave.

(b) If the contractor grants a limited term service leave:

(1) The family shall not be disenrolled from the program;

(2) The service agreement with the parent shall indicate that no services will be provided during the limited term service leave; and

(3) The contractor shall not report the child as enrolled nor claim reimbursement from the State Department of Education while the child is on a limited term service leave.

(c) A limited term service leave shall not exceed twelve (12) consecutive weeks in duration except when the parent is on a maternity or a medically related leave absence from their employment or training.

(d) Maternity or medical limited term service leaves shall not exceed sixteen (16) consecutive weeks in duration.

(e) If the contractor grants limited term service leaves, the contractor shall establish and implement a policy regarding the criteria for approval of requests for limited term service leaves.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8263, 8265 and 8269, Education Code.

[CA] [50101900] [SC003000] [A004000]

Article 4 - Admission Policies and Procedures

§ 18105 - Admission Policies and Procedures; Interview.

(a) Contractors shall develop written admission policies and procedures which shall be made available to the public.

(b) The admission procedures established shall conform to requirements in Title 22 California Code of Regulations, Section 101319.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8203 and 8263, Education Code.

§ 18106 - Admission Priorities; Waiting List; and Displacement.

(a) Within the first priority for services stated in Education Code Section 8263(b)(1), children receiving protective services through the local county welfare department shall be enrolled before children identified as at risk of being neglected or abused.

(b) Except for situations where not all of the children in a family are certified based on child protective services or the child's special need, a family that has a child or children enrolled in a program shall be allowed to enroll additional children provided there exists an appropriate program opening such as infant care or services to school age care children in which to enroll the child.

(c) When not all of the children in a family are certified based on child protective services or the child's special need, the other children or the parents in the family must meet both eligibility and need criteria as specified in Education Code Section 8263(a)(1) and (a)(2) prior to enrollment and shall be admitted in accordance with priorities specified in Education Code Section 8263(b).

(d) Contractors shall not deny service to nor assign a lower priority to a family that needs less than full-time services.

(e) Contractors shall maintain a current waiting list in accordance with admission priorities. Contractors shall contact applicants in order of priority from the waiting list as vacancies occur.

(f) If it is necessary to displace families, families shall be displaced in reverse order of admission priorities.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code.

§ 18107 - Residency Requirements.

(a) In addition to other applicable eligibility requirements as specified elsewhere in this Division, to be eligible for child care and development services the child's parent(s) must live or work in the State of California.

(b) Any evidence of a street address, post office address, income verification or declaration of intent to live or work in California will be sufficient to establish residency.

(c) The governing board of any school district, community college or county superintendent of schools may accommodate children residing outside its district boundaries in accordance with Education Code Section 8322(a).

(d) The determination of eligibility for child care and development services shall be without regard to the immigration status of the child or the child's parent(s), unless the child or the child's parent(s) are under a final order of deportation from the United States Department of Justice.

NOTE: Authority cited: Section 8263, Education Code. Reference: Section 8263, Education Code.

[CA] [50101900] [SC003000] [A005000]

Article 5 - Parent Fees

§ 18108 - Fee Schedule.

Contractors shall use a fee schedule prepared and issued by the Child Development Division.

NOTE: Authority cited: Section 8263, Education Code. Reference: Sections 8263 and 8265, Education Code.

§ 18109 - Fee Assessment; Explanation to Parents.

(a) The contractor shall utilize the following factors in determining the fee to be assessed for each family:

(1) The adjusted monthly family income;

(2) Family size; families having fewer than three (3) members shall be regarded as a family of three (3).

(3) The fee shall be assessed and collected based on the family's child who is enrolled for the longest period.

(4) The fee assessed and collected shall be either the fee indicated on the fee schedule, the actual costs of services or the contract maximum daily/hourly rate, whichever is least.

(5) No adjustment shall be made for excused or unexcused absences.

(6) The fee shall be the full portion of the family's cost for services.

(b) The contractor shall maintain a record of each family's fee assessment, the effective date(s) of each fee increase or decrease, the dates and amounts of fees collected and any amounts which are delinquent.

(c) The contractor shall explain to the parent(s) the contractor's policies regarding fee assessment and collection and the possible consequences for delinquent payment of fees.

NOTE: Authority cited: Section 8263, Education Code. Reference: Sections 8263 and 8265, Education Code.

§ 18110 - Exceptions to Fee Assessment.

No fees shall be collected from the following types of families whose children are enrolled:

(a) Because of a need for child protective services;

(b) In the State Preschool Program;

(d) In the Severely Handicapped program; or

(e) With an income level that, in relation to family size, is less than the first entry in the fee schedule.

NOTE: Authority cited: Sections 8250 and 8263, Education Code. Reference: Sections 8250 and 8263, Education Code.

§ 18111 - No Additional Payments or Costs; Refunds; Exceptions.

(a) Except as provided in Subsection (b) below, neither a contractor nor a provider of services shall require or solicit, in cash or in kind, additional payments from the recipients of service. The prohibition includes activities or services that would increase the family's cost of participation including meals, recreation and field trips. If additional payments are made or additional costs are incurred by the family, the contractor shall refund to the parent(s) the amount of payments made or costs incurred.

(b) A contractor or a provider of service need not make a refund as specified in Subsection (a) above under the following conditions:

(1) The family is enrolled in an Alternative Payment program and the parent(s) has voluntarily placed the child with a service provider that requires all parent(s) to provide a sack lunch or supplies such as diapers.

(2) School Age Community Child Care programs may require all parents to provide a sack lunch. The contractor shall provide a meal if the parent does not provide a sack lunch. A contractor that requires parents to provide sack lunches may develop a policy which includes reasonable penalties for parents who fail to provide a sack lunch.

NOTE: Authority cited: Section 8263, Education Code. Reference: Sections 8263 and 8265, Education Code.

§ 18112 - Credit for Fees Paid to Other Service Providers.

This section shall apply to child care and development services provided by someone other than the contractor:

(a) When a contractor cannot meet all of a family's needs for child care for which eligibility and need as specified in Education Code Section 8263(a)(1) and (a)(2) have been established, the contractor shall grant a fee credit equal to the amount paid to the other provider(s) of these child care and development services.

(b) The contractor shall apply the fee credit to the family's subsequent fee billing period. The family shall not be allowed to carry over the fee credit beyond the family's subsequent fee billing period.

(c) The contractor shall obtain copies of receipts or cancelled checks for the other child care and development services from the parent. The copies of the receipts or cancelled checks shall be maintained in the contractor's fee assessment records.

NOTE: Authority cited: Section 8263, Education Code. Reference: Sections 8263 and 8265, Education Code.

§ 18113 - Receipt for Payment of Fee; Retention of Copy for Records.

(a) The contractor or service provider shall provide an original copy of a pre-numbered receipt to each person who pays a fee. The receipt shall show the amount paid, the date of payment, the rate of payment and the period of service purchased.

(b) The contractor shall retain a copy of the receipt in its fee assessment records.

NOTE: Authority cited: Section 8263, Education Code. Reference: Sections 8263 and 8265, Education Code.

§ 18114 - Advance Payment of Fees; Delinquent Fees; Notice of Delinquency.

(a) Contractors shall adopt a policy for the collection of fees in advance of providing services. The written policy shall be provided to families at the time of initial enrollment into the program.

(b) For contractors providing direct services to children, fees shall be considered delinquent after seven (7) calendar days from the date the fees were due.

(c) For contractors providing services through Alternative Payment programs, fees shall be considered delinquent on the date they are notified by the provider that fees have not been paid.

(d) A Notice of Action, Recipient of Services shall be used to inform the family of the following:

(1) The total amount of unpaid fees;

(2) The fee rate;

(3) The period of delinquency; and

(4) That services shall be terminated two (2) weeks from the date of the Notice unless all delinquent fees are paid before the end of the two (2)-week period.

NOTE: Authority cited: Section 8263, Education Code. Reference: Sections 8263 and 8265, Education Code.

§ 18115 - Plan for Payment of Delinquent Fees.

The contractor shall accept a reasonable plan from the parent(s) for payment of delinquent fees. The contractor shall continue to provide services to the child, provided the parent(s) pays current fees when due and complies with the provisions of the repayment plan.

NOTE: Authority cited: Section 8263, Education Code. Reference: Sections 8263 and 8265, Education Code.

§ 18116 - Consequences of Nonpayment of Delinquent Fees.

Upon termination of services for nonpayment of delinquent fees, the family shall be ineligible for child care and development services until all delinquent fees are paid.

NOTE: Authority cited: Section 8263, Education Code. Reference: Sections 8263 and 8265, Education Code.

§ 18117 - Confidentiality of Records.

(a) The use or disclosure of all information pertaining to the child and his/her family shall be restricted to purposes directly connected with the administration of the program.

(b) The contractor shall permit the review of the basic data file by the child's parent(s) or parent's authorized representative, upon request and at reasonable times and places.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

[CA] [50101900] [SC003000] [A006000]

Article 6 - Due Process Requirements

§ 18118 - Approval or Denial of Child Care and Development Services.

The contractor shall mail or deliver a completed Notice of Action, Application for Services to the parents within thirty (30) calendar days from the date the application is signed by the parent(s) in accordance with Sections 18094 and 18095 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18119 - Changes Affecting Service.

(a) The contractor shall complete a Notice of Action, Recipient of Services when changes are made to the service agreement. Such changes may include, but are not limited to, an increase or decrease in parent fees, an increase or decrease in the amount of services, or termination of service.

(b) The contractor shall mail or deliver the notice of action to the parents at least fourteen (14) calendar days before the effective date of the intended action whenever:

(1) The contractor has factual information that confirms the death of the parent or the child;

(2) The contractor receives notification from the parent that the parent no longer wants the service;

(3) The agreement for services was a limited term authorization which has come to the end of the term, and at the time of approval of the limited term authorization, the parent was informed in writing of the date services would terminate; or

(4) The parent does not provide eligibility or need information after a written request by the contractor.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

§ 18120 - Clients Request for a Hearing; Rules and Procedures.

(a) If the parent disagrees with an action, the parent(s) may file a request for a hearing with the contractor within fourteen (14) calendar days of the date the Notice of Action was received.

(b) Upon the filing of a request for hearing, the intended action shall be suspended until the review process has been completed. The review process is complete when the appeal process has been exhausted or when the parent(s) abandons the appeal process.

(c) Within ten (10) calendar days following the receipt of the request for a hearing, the contractor shall notify the parent(s) of the time and place of the hearing. The time and place of the hearing shall, to the extent possible, be convenient for the parent(s).

(d) The hearing shall be conducted by an administrative staff person who shall be referred to as "the hearing officer." The hearing officer shall be at a staff level higher in authority than the staff person who made the contested decision.

(e) The parent(s) or parent's authorized representative is required to attend the hearing. If the parent or the parent's authorized representative fails to appear at the hearing, the parent will be deemed to have abandoned his or her appeal.

(f) Only persons directly affected by the hearing shall be allowed to attend.

(g) The contractor shall arrange for the presence of an interpreter at the hearing, if one is requested by the parent(s).

(h) The hearing officer shall explain to the parent(s) the legal, regulatory, or policy basis for the intended action.

(i) During the hearing, the parent(s) shall have an opportunity to explain the reason(s) they believe the contractor's decision was incorrect. The contractor's staff shall present any material facts omitted by the parent(s).

(j) The hearing officer shall mail or deliver to the parent(s) a written decision within ten (10) calendar days after the hearing.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18121 - Appeal Procedure for Child Development Division Review.

(a) If the parent disagrees with the written decision from the contractor, the parent has fourteen (14) calendar days in which to appeal to the Child Development Division.

(b) If the parent(s) do(es) not submit an appeal request to the Child Development Division within fourteen (14) calendar days, the parents' appeal process shall be deemed abandoned and the contractor may implement the intended action.

(c) The parent(s) shall specify in the appeal request the reason(s) why he/she believes the contractor's decision was incorrect.

(d) A copy of the contractor's notice of intended action and written decision shall be submitted by the parent(s) with the appeal request.

(e) Upon receipt of an appeal request, the Child Development Division may request copies of the basic data file and other relevant materials from the contractor. The Child Development Division may also conduct any investigations, interviews or mediation necessary to resolve the appeal.

(f) The decision of the Child Development Division shall be mailed or delivered to the parent(s) and to the contractor within thirty (30) calendar days after receipt of the appeal request.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

§ 18122 - Contractor Compliance with Child Development Division Decision; Reimbursement for Services During the Appeal Process.

(a) The contractor shall comply with the decision of the Child Development Division immediately upon receipt thereof.

(b) The contractor shall be reimbursed for child care and development services delivered to the family which is appealing during the appeal process.

(c) If a contractor's determination that a family is ineligible is upheld by the Child Development Division, services to the family shall cease upon receipt of the Child Development Division's decision by the contractor.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

[CA] [50101900] [SC004000]

Subchapter 4 - State Preschool Program

[CA] [50101900] [SC004000] [A001000]

Article 1 - Scope of Chapter

§ 18130 - Scope of Chapter: Applicable Regulations.

(a) The regulations contained in this Chapter shall apply only to contractors funded for the State Preschool Program.

(b) Except as otherwise provided in this Chapter, contractors funded for the State Preschool program shall also comply with regulations contained in Chapters 1, 2, 12, 14 and 15 in whole, and Sections 18077, 18078 (a)(d)(h)(1), 18081 (a)(b)(1), 18082, 18083 (a)(b)(h)(i)(j), 18084, 18094, 18095, 18100, 18105, 18107, 18117 and 18118 through 18122 of Chapter 3 and Section 18290(c)(e) of Chapter 13 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8235, Education Code.

[CA] [50101900] [SC004000] [A002000]

Article 2 - Enrollment Priorities

§ 18131 - Enrollment Priorities for State Preschool Programs.

(a) The first priority for services shall be given to eligible children whose families have the lowest adjusted monthly income at the time of enrollment not to exceed the most recent schedule of income ceilings issued by the Child Development Division.

(b) Thereafter, the contractor may establish the following priorities in an order determined by the contractor:

(1) Children who are identified as limited English or non-English proficient.

(2) Children with exceptional needs and whose Individualized Education Plan (IEP) as described in Section 56026 of the Education Code and Sections 3030 and 3031 of Title 5 California Code of Regulations, identifies a State Preschool program as being an appropriate placement during all or part of the state preschool day as defined in Section 18136 of this Division.

(3) Children from families whose special circumstances may diminish the children's opportunities for normal development.

(4) Children who range in age from three years-nine months to four years-nine months.

(5) Within these additional priorities, families with the lowest adjusted monthly income shall be admitted first.

(c) The basic data file shall include documentation to support the determination that the child meets the priority for service. If the priority for service is the child's exceptional need, the basic data file shall include documentation as specified in Section 18089(f) of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8235, Education Code.

§ 18132 - Certification of Eligibility; Waiting List.

(a) The contractor shall certify eligibility no more than thirty (30) calendar days prior to the first day of the beginning of the new preschool year.

(b) After full enrollment is attained, the contractor shall prepare a waiting list based on the enrollment priorities set forth in Section 18131 of this Division.

NOTE: Authority cited: Section 8263, Education Code. Reference: Sections 8235 and 8263, Education Code.

§ 18133 - Exceptions to Enrollment Priorities; Ten Percent (10%) Limitation.

(a) If no eligible children are on the waiting list, the contractor may enroll children who are not otherwise eligible for participation. This includes children who exceed the age limitations and children from families whose income exceeds the current income ceiling issued by the Child Development Division by fifteen percent (15%) or less of the adjusted monthly income for income eligible families of the same size.

(b) Children enrolled pursuant to subsection (a) above shall comprise a maximum of ten percent (10%) of the total enrollment.

(c) The contractor shall maintain the following information in the basic data file of children enrolled pursuant to this section:

(1) Evidence that shows the contractor has made a diligent search for eligible children;

(2) The child's family income; and

(3) The specific reason(s) for enrolling each child.

(d) To the greatest extent possible, the contractor shall assign children enrolled pursuant to this section to all of the State Preschool program classes within the contractor's jurisdiction.

NOTE: Authority cited: Section 8263, Education Code. Reference: Sections 8235 and 8263, Education Code.

[CA] [50101900] [SC004000] [A003000]

Article 3 - Other Requirements

§ 18135 - Volunteers; Staffing Ratios.

If the contractor cannot recruit a sufficient number of parents or volunteers, the contractor shall hire teacher aides for each class to the extent required to meet adult/child ratios as set forth in Section 18290 of this Division.

NOTE: Authority cited: Section 8287, Education Code. Reference: Sections 8235 and 8288, Education Code.

§ 18136 - Minimum Hours and Days of Operation.

The contractor shall operate classes a minimum of three (3) hours per day, excluding home-to-school transportation time, for a minimum of 175 days per year, unless the child development contract specified a lower minimum days of operation.

NOTE: Authority cited: Sections 8261, Education Code. Reference: Sections 8235 and 8265, Education Code.

Subchapter 6 - Campus Child Care Program

§ 18175 - Applicable Regulations.

Except as provided in Education Code Section 8225(b), contractors funded by the Campus Child Care Program shall also comply with the regulations set forth in Chapters 1, 2, 3, 12, 13, 14 and 15 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8225 and 8263, Education Code.

[CA] [50101900] [SC007000]

Subchapter 7 - Federal Based Migrant Program

[CA] [50101900] [SC007000] [A001000]

Article 1 - Scope of Chapter

§ 18180 - Scope of Chapter: Applicable Regulations.

(a) The regulations contained in this Chapter shall apply only to contractors funded through the Federal Based Migrant program.

(b) Except as otherwise provided in this Chapter, contractors funded by the Federal Based Migrant program shall also comply with regulations contained in Chapters 1, 2, 12, 13, 14 and 15 in whole and Sections 18077, 18078(d), 18081 (a) (b) (c) and (d), 18093, 18094, 18095, 18103, 18105, 18110, 18117, 18118, 18119, 18120, 18121 and 18122 of Chapter 3 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8233 and 8261, Education Code; 34 Code of Federal Regulations, Part 201; and 20 United States Code, Parts 2761, 2762, 2763.

[CA] [50101900] [SC007000] [A002000]

Article 2 - Eligibility and Enrollment Priorities

§ 18181 - Definitions.

Definitions contained in 34 Code of Federal Regulations Section 201.3 apply.

NOTE: Authority cited: Section 8261, Education Code. Reference: 34 Code of Federal Regulations, Section 201.3.

§ 18182 - Enrollment Priorities.

(a) The following are the enrollment priorities for the Federal Based Migrant program:

(1) First Priority: Currently migratory child.

(2) Second Priority: Formerly migratory child.

(b) A newborn infant whose family's residence has not changed since birth is not considered to be a currently migratory child.

(c) Contractors operating in a federally funded public migrant housing center shall reserve the first fourteen (14) days of their initial enrollment period for residents of the public housing center.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8231, Education Code; and 34 Code of Federal Regulations Part 201.31.

§ 18183 - Eligibility Certification for Federal Based Migrant Programs.

Federal eligibility shall be determined before the child is enrolled or served in the program.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code; and 34 Code of Federal Regulations Part 201.30.

§ 18184 - Migrant Student Record Transfer System.

The contractor shall register all children enrolled on the Migrant Student Record Transfer System (MSRTS).

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8231, Education Code; and 34 Code of Federal Regulations, Part 201.32.

[CA] [50101900] [SC007005]

Subchapter 7.5 - State Based Migrant Program

[CA] [50101900] [SC007005] [A001000]

Article 1 - Scope of Chapter

§ 18190 - Scope of Chapter: Applicable Regulations.

(a) The regulations contained in this Chapter shall apply only to contractors funded by the State Based Migrant program.

(b) Except as otherwise provided in this Chapter, contractors funded by the State Based Migrant program shall also comply with regulations contained in Chapters 1, 2, 12, 13, 14, 15 in whole and Chapter 3, except for Section 18106, of this Division.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8231, 8232, 8233 and 8261, Education Code.

[CA] [50101900] [SC007005] [A002000]

Article 2 - Eligibility and Enrollment Priorities

§ 18191 - Eligibility Criteria.

In addition to meeting the criteria for being an agricultural worker family as specified in Education Code Section 8231(a), the family shall also meet eligibility and need criteria specified in Education Code Section 8263(a)(1) and (a) (2).

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8231 and 8263, Education Code.

§ 18192 - Priorities for Enrollment; Waiting List; Displacement Order.

(a) Children of eligible migrant agricultural worker families shall be enrolled in the order of priorities specified in Education Code Section 8231(b).

(b) Contractors operating in federally funded public migrant housing centers shall reserve the first fourteen (14) days of their enrollment period for residents of the public migrant housing center.

(c) The contractor shall maintain a waiting list in accordance with the enrollment priorities specified in Education Code Section 8231(b).

(d) If it is necessary to displace families, families shall be displaced in reverse order of enrollment priorities.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8231 and 8263, Education Code.

[CA] [50101900] [SC008000]

Subchapter 8 - School Age Community Child Care Services Program (Latch Key)

[CA] [50101900] [SC008000] [A001000]

Article 1 - Scope of Chapter

§ 18200 - Scope of Chapter: Applicable Regulations.

Except as otherwise provided in this Chapter, contractors funded by the School Age Community Child Care Services program (Latchkey) shall also comply with the regulations contained in Chapters 1, 2, 12 and 15 in whole, and Chapter 3 except for Section 18106 and Section 18290(d)(e) of Chapter 13 of this Division. Contractors operating a School Age Community Child Care Services-Alternative Payment program shall also comply with Chapter 10 of this Division.

NOTE: Authority cited: Section 8461, Education Code. Reference: Section 8463, Education Code.

[CA] [50101900] [SC008000] [A002000]

Article 2 - General Provisions

§ 18201 - Waiting List; Priorities for Enrollment.

(a) The contractor shall maintain a waiting list of families seeking entry into the program in accordance with the enrollment priorities set forth in Education Code Section 8468.5.

(b) As vacancies occur in the program, families shall be enrolled in the order of priority established on the waiting list.

(c) When displacement from services is required either temporarily or permanently, families shall be displaced in the reverse order of the priorities set forth in paragraph (a) of this section.

NOTE: Authority cited: Section 8461, Education Code. Reference: Section 8468.5, Education Code.

§ 18202 - Age Limitation.

(a) Only school age children are eligible to be enrolled in School Age Community Child Care program.

(b) "School age" means children enrolled in kindergarten through 9th grade.

(c) A child is considered to be enrolled in kindergarten on June 1 of each year if he or she will be four years nine months of age by September 1 of the same year.

NOTE: Authority cited: Section 8461, Education Code. Reference: Section 8468.5, Education Code.

§ 18203 - Staff Qualifications--Program Director for School Age Programs.

(a) The contractor shall employ a program director who has overall administrative responsibility for programs operated at one or more sites.

(b) The program director may also serve as a site supervisor at one of the sites if he/she assumes responsibility for the day-to-day operation of the program at that site.

(1) A baccalaureate degree in recreation, recreational therapy, special education or a related field; and

(A) Three (3) semester units of administration and supervision of recreation, child development or related programs; and

(B) Two (2) years of teaching or supervisory experience in recreation or related programs; or

(2) Hold one of the following valid permits or credentials issued by the Commission on Teacher Credentialing:

(A) Children's Center Supervision Permit;

(B) Life Children's Center Supervision Permit;

(D) Professional Administrative Services Credential; or

(E) Be deemed to hold a permit pursuant to Education Code Section 8360 and have three (3) semester units of administration and supervision of child development programs.

NOTE: Authority cited: Sections 8287 and 8461, Education Code. Reference: Section 8463(l), Education Code.

§ 18204 - Adult/Child Ratios in Group Child Development Programs.

§ 18205 - Staff Qualifications--Site Supervisor.

Each site shall have a site supervisor who meets the requirements specified in Title 22 California Code of Regulations, Division 12, Chapters 1 and 2, Sections 101215, 101315 and 101515.

NOTE: Authority cited: Sections 8287 and 8461, Education Code. Reference: Section 8463(l), Education Code.

§ 18206 - Staff Qualifications--Teacher.

Each contractor shall employ sufficient numbers of qualified teachers to meet the requirements specified in Title 22 California Code of Regulations, Chapters 1 and 2, Sections 101216, 101316.2 and 101516.2.

NOTE: Authority cited: Sections 8287 and 8461, Education Code. Reference: Section 8463(l), Education Code.

§ 18207 - Staff Qualifications--Teacher Aide.

Each contractor shall employ sufficient numbers of teacher aides to meet the requirements specified in Title 22 California Code of Regulations, Chapter 1 and 2, Sections 101216 and 101316.3.

NOTE: Authority cited: Sections 8287 and 8461, Education Code. Reference: Section 8463(l), Education Code.

§ 18208 - Ratios Based on Average Attendance.

[CA] [50101900] [SC009000]

Subchapter 9 - Severely Handicapped Program

§ 18210 - Scope of Chapter: Applicable Regulations.

(a) The regulations contained in this Chapter shall only apply to contractors funded through the Severely Handicapped program.

(b) Except as otherwise provided in this Chapter contractors funded by the Severely Handicapped program shall also comply with regulations contained in Chapters 1, 2, 12, 14, 15 in whole and Sections 18077, 18078 (h) , 18081 (a) (b) (5) (c) (d), 18082, 18083 (a) (b) (c) (h) (i) (j), 18094, 18095, 18105, 18107, 18110 and 18117 through 18122 of Chapter 3 and Sections 18290 and 18291 of Chapter 13 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8208, 8250 and 56026, Education Code.

§ 18211 - Eligibility.

In order to be eligible for services through the Severely Handicapped program, the child must have a physical, mental or emotional handicap of such severity that the child cannot be adequately or appropriately served in regular child care and development program as determined by the individualized Education Plan (IEP) required by Section 18212 of this Division.

NOTE: Authority cited: Sections 8261, Education Code. Reference: Section 8250, Education Code.

§ 18212 - Additional Basic Data File Requirements.

The child's basic data file shall include an Individualized Education Plan (IEP) as specified in Section 56026 of the Education Code and Sections 3030 and 3031 of Title 5 California Code of Regulations.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8250, Education Code.

§ 18213 - Minimum Hours of Operation.

The contractor shall provide child development services a minimum of three and a half (3 1/2) hours per day.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Section 8250, Education Code.

[CA] [50101900] [SC010000]

Subchapter 10 - Alternative Payment Program

[CA] [50101900] [SC010000] [A001000]

Article 1 - Scope of Chapter

§ 18220 - Scope of Chapter: Applicable Regulations.

(a) The provisions contained in this chapter shall only apply to contractors authorized to establish, maintain, or operate Alternative Payment programs as defined in section 18013(e) of this division.

(b) Except as otherwise provided in this chapter, contractors funded by the Alternative Payment Programs shall also comply with regulations contained in chapters 1, 2, 3, and 15 in whole and sections 18271(a), (c), 18274, 18277 and 18279 of chapter 12 of this division.

(c) Contractors operating School-Age Community Child Care Services-Alternative Programs shall also comply with chapter 8, except for sections 18203 through 18207, of this division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8261, Education Code.

[CA] [50101900] [SC010000] [A002000]

Article 2 - Policies and Procedures

§ 18221 - Information on Contractor Policies.

The contractor shall develop and implement a written policy statement. The policy statement shall include information regarding:

(a) A description of the program's purpose, design, and organization framework;

(b) Priorities for enrollment;

(d) Conditions for participation;

(e) Reimbursement of providers which may include a limitation of 1.5 standard deviations from the mean market rate for the type of care provided as established by the most recent survey of the local resource and referral agency;

(f) Requirements for provider participation;

(g) Range of services available including limitations, if any, on payment for in-home care; and

(h) Parent fee collection policy and procedures including direct payment of fees to the provider, if allowable.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8203, Education Code.

§ 18222 - Information to Be Given to Parents.

(a) The contractor shall provide parents with the following information upon enrollment in the program:

(1) The policy statement specified in Section 18221 of this Division;

(2) Information regarding the confidentiality of records;

(3) Information regarding grievance procedures for parents; and

(4) Information regarding the rights of parents to change child care settings.

(b) If the parent(s) speaks a language other than English or is (are) hearing impaired, the information shall be provided through written materials or by Presentation of an interpreter in a language the parent understands.

NOTE: Authority cited: Section 8261, Education Code, Reference: Section 8203, Education Code.

§ 18223 - Procedures for Provider Participation.

The contractor shall develop and implement written policies and procedures for provider participation which include the following:

(a) Maximizing parental choice with consideration of the contractor's ability to pay for the services within the funding provided in the annual child development contract.

(b) Acceptance, rejection and termination of provider affiliation with the program.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8203, Education Code.

§ 18224 - Written Materials to Be Given to Providers.

(a) The contractor shall give to all providers the following information:

(1) A copy of the contractor's policy statements as specified in Sections 18221 (e), (f) and (h), 18223 and 18226 of this Division;

(2) A statement prohibiting the provider from engaging in religious instruction or worship while providing child care and development services;

(3) A statement prohibiting the provider from engaging in any form of discrimination;

(4) A schedule for the payment of services which shall be signed by the provider; and

(5) Instructions on enrollment and attendance recordkeeping requirements.

(b) If a provider speaks a language other than English or is hearing impaired, the information shall be provided either through written materials or by presentation of an interpreter in the language that the provider understands.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8203, Education Code.

[CA] [50101900] [SC010000] [A003000]

Article 3 - Services and Payments

§ 18225 - Plan for Continuity of Service and Expenditures.

The contractor shall develop and implement a plan to ensure that services are provided to families enrolled in the program continuously throughout the contract period.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8203, Education Code.

§ 18226 - Plan for Provider Payments.

The contractor shall develop and implement a plan for timely payment to providers. The plan shall include a description of parent fee collection methods in accordance with the policy required by Section 18221 (h) of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8261, Education Code.

§ 18228 - Offset of Parent Fees Paid to Providers.

(a) If the contractor's policy allows parents to make direct payments of their fees to the provider, the provider shall submit a copy of the parent's receipt to the contractor.

(b) The contractor shall offset the amount of the fee paid by the parent in calculating the payment due to the provider.

(c) The contractor shall report the amount of fee collected and retained by the provider as "income" on the attendance and expenditure reports as specified in Section 18068 of this Division.

(d) The contractor shall report its payment to the provider along with the amount of fees paid directly by the parent which serve in lieu of payment from the contractor to the provider as "expense" on the attendance and expenditure reports as specified in Section 18068 of this Division.

NOTE: Authority cited: Sections 8261 and 8269, Education Code, Reference: Sections 8261 and 8265, Education Code.

§ 18229 - Basic Data File; Receipt of Supportive Services.

The documents required by Education Code Section 8266.5 shall be maintained in the family's basic data file.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8266.5, Education Code.

[CA] [50101900] [SC010000] [A004000]

Article 4 - Records

§ 18230 - Records on File Concerning In-Home Service Providers.

If the contractor's policies allow payment for in-home care, the contractor shall maintain in its file the following records concerning in-home care providers:

(a) A description of the caregiver's qualifications and work experience obtained during a personal interview with the care-giver.

(b) A declaration by the care giver that he or she is in good health.

(d) A California driver's license number or other valid and recognized form of identification to verify that the caregiver is at least eighteen (18) years of age.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Section 8203, Education Code.

§ 18231 - Records on File Concerning Service Providers.

The contractor shall maintain in its files the following records concerning each service provider:

(a) A statement of the service provider's current fees with information regarding the provider's usual and customary services provided for those fees;

(b) A statement signed by the provider that the child care and development services being provided do not include religious instruction or worship;

(c) A document that contains the rate and schedule of payment for approved services that is signed by both the service provider and the contractor;

(d) A copy of the facility license that shows the authorized capacity of the facility;

(e) The name, address and telephone number of the service provider; and

(f) The age group(s) served by the provider.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261 and 8266.5, Education Code.

[CA] [50101900] [SC011000]

Subchapter 11 - Resource and Referral Program

[CA] [50101900] [SC011000] [A001000]

Article 1 - Scope of Chapter

§ 18240 - Scope of Chapter: Applicable Regulations.

(a) The regulations contained in this chapter shall apply only to contractors funded by the Resource and Referral Program.

(b) Except as otherwise provided in this chapter, contractors funded by the Resource and Referral Program shall also comply with regulations contained in chapters 1, 2, and 15 in whole and sections 18271(a), (c), 18274, 18277 and 18279 of chapter 12 of this division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8212, 8212.5 and 8213, Education Code.

[CA] [50101900] [SC011000] [A002000]

Article 2 - Resource and Referral Service

§ 18241 - Service Area.

(a) The contractor shall identify in its application for funding the specific geographical area in which the contractor proposes to operate referral services.

(b) The proposed service area shall be approved by the Child Development Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8212, Education Code.

§ 18242 - No Fees Charged for Referral Services.

The contractor shall not charge a fee for resource and referral services funded by the State Department of Education except for the recovery of printing and duplication costs, the costs of damaged or lost materials from the lending library or late fees. This does not preclude contractors from entering into separate contracts for resource and referral services with other entities such as cities, counties or private industry which may allow for the collection of fees for the service provided.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8214, Education Code.

§ 18243 - Resources Available for Service Providers.

The contractor shall contact each licensed facility in the contractor's service area at least annually to inform the provider of the available resources provided by the contractor.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8212 and 8214, Education Code.

§ 18244 - Written Referral Policies.

(a) The contractor shall develop and implement written referral policies.

(b) The written referral policies shall include the following information:

(1) A statement that referral services are available to all persons requesting them regardless of income level or other eligibility requirements;

(2) A statement that information received from the parent(s) is confidential;and(3) The conditions under which referrals to a provider may be discontinued.(e) The written referral policies shall be available to parents and providers upon request.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8212 and 8214, Education Code.

§ 18245 - Maximizing Parental Choice.

The contractor shall assist parents in choosing child care services by providing parents with the following:

(a) Information regarding how to select child care services which will meet the needs of the parent(s) and the child(ren).

(b) A range of possible child care alternatives from which the parents may choose.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8212 and 8214, Education Code.

§ 18246 - Confidentiality of Information.

The use or disclosure of information pertaining to the child or the child's family shall be restricted to purposes directly related to the administration of the program. Data collection and dissemination of information shall be handled in such a manner as to ensure confidentiality of the names and addresses of individual clients.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8261, Education Code.

§ 18247 - Complaint Procedures.

(a) The contractor shall develop and implement written complaint procedures which specify:

(1) The procedures for the documentation and resolution of complaints; and

(2) The procedures for referring reports of licensing violations to appropriate agencies.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8212, Education Code.

§ 18248 - Discontinuing Referrals to Service Providers.

(a) The contractor shall notify the provider in writing that referrals have been discontinued. The notice shall include the reason(s) for the decision and shall inform the provider of the process for appealing the decision.(b) The contractor shall maintain in its files all of the records related to discontinuing referrals to a provider.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8212, Education Code.

[CA] [50101900] [SC012000]

Subchapter 12 - Program Quality

[CA] [50101900] [SC012000] [A001000]

Article 1 - Scope of Chapter

§ 18270 - Scope of Chapter.

Except as otherwise provided in this division, all contractors shall comply with the requirements of this chapter.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8203, Education Code.

[CA] [50101900] [SC012000] [A002000]

Article 2 - General Program Requirements

§ 18271 - Program Philosophy, Goals and Objectives.

(a) Each contractor shall have a written philosophical statement and goals and objectives which support that philosophy. The governing body of each contractor shall approve the program philosophy, goals and objectives.

(b) The goals and objectives shall address the requirements contained in all of the sections in this article.

(c) The goals and objectives shall reflect the cultural and linguistic characteristics of the families served by the contractor.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8261, Education Code.

§ 18272 - Developmental Profile.

(a) "Developmental Profile" means a record of a child's physical, cognitive, social and emotional development. Teacher and parent observations shall be included as part of the child's developmental program.

(b) The contractor shall complete a developmental profile of each child upon enrollment and at least at the following intervals:

(1) Infants once every three (3) months;

(2) Toddlers once every six (6) months;

(3) Preschoolers every twelve months;

(c) Contractors serving school-age children need not conduct a developmental profile but shall identify each child's needs, skills and interests upon enrollment and annually thereafter;

(d) The contractor shall use the developmental profiles to plan and conduct age and developmentally appropriate activities.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8203, Education Code.

§ 18273 - Education Program.

(a) Each contractor shall include in its program an educational program component that is developmentally, culturally and linguistically appropriate for the children served.

(b) The educational program component shall provide activities which will facilitate a child's physical, cognitive, social and emotional development.

(c) School Age Community Child Care programs may restrict their educational program component to recreational activities which shall be developmentally, culturally and linguistically appropriate.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8203, Education Code.

§ 18274 - Staff Development Program.

Each contractor shall develop and implement a staff development program which includes the following:

(a) Identification of training needs of staff or service providers;

(b) Written job descriptions;

(d) An annual written performance evaluation procedure unless a different frequency of performance evaluations is specified in a contractor's collective bargaining agreement with their employees;

(e) Staff development opportunities which include topics related to the functions specified in each employee's job descriptions and those training needs identified in Subsection (a) above.

(f) An internal communication system that provides each staff member with the information necessary to carry out his or her assigned duties.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8261, Education Code.

§ 18275 - Parent Involvement and Education.

Each contractor shall include in its program a parent involvement and education component.

The parent involvement and education component shall include the following:

(a) An orientation for parents that includes topics such as program philosophy, program goals and objectives, eligibility criteria and priorities for enrollment, fee requirements, due process procedures and program activities;

(b) At least two (2) individual parent/teacher conferences per year;

(d) An open door policy which encourages parents to participate in the daily activities whenever possible; and

(e) A parent Advisory Committee which advises the contractor on issues related to services to families and children.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8261, Education Code.

§ 18276 - Health and Social Services.

(a) Each contractor shall include in its program a health and social service component that:

(1) Identifies the needs of the child and the family for health or social services;

(2) Refers a child and/or family to appropriate agencies in the community based on the health or social service needs; and

(3) Conducts follow-up procedures with the parent to ensure that the needs have been met.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8261, Education Code.

§ 18277 - Community Involvement.

Each contractor shall include in its program a community involvement component which shall include, but not be limited to, the following:

(a) Each contractor shall solicit support from the community. This includes the solicitation of donated goods and services.

(b) Providing information to the community regarding the services available. Contractors may utilize media or other forms of communication in the community.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8261, Education Code.

§ 18278 - Nutrition.

(a) Each contractor shall include in its program a nutrition component that ensures that the children have nutritious meals and snacks during the time in which they are in the program.

(b) The meals and snacks shall be culturally and developmentally appropriate for the children being served and shall meet the nutritional requirements specified by the federal Child Care Food or the National School Lunch program.

NOTE: Authority cited: Section 8261, Education Code. Reference; Sections 8203 and 8261, Education Code.

§ 18279 - Program Evaluation Process.

(a) Each contractor shall develop and implement an annual evaluation plan that determines if the program goals and objectives are being met.

(b) The evaluation shall include a self-assessment by the contractor in accordance with instructions specified by the Child Development Division.

(d) The contractor shall submit a summary of the findings of the self-assessment to the Child Development Division by March 1 of each year.

(e) The contractor shall modify its goals and objectives to address any areas identified during the evaluation as needing improvement.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8261, Education Code.

[CA] [50101900] [SC013000]

Subchapter 13 - Staffing Ratios

§ 18290 - Staffing Ratios for Child Care and Development Programs.

Contractors shall maintain at least the following minimum ratios in all centers:

(a) Infants (birth to 18 months old)-1:3 adult-child ratio, 1:18 teacher-child ratio.

(b) Toddlers (18 months to 36 months old)-1:4 adult-child ratio, 1:16 teacher-child ratio.

(d) Children enrolled in kindergarten through 14 years old-1:14 adult-child ratio, 1:28 teacher-child ratio.

(e) Compliance with these ratios shall be determined based on actual attendance.

NOTE: Authority cited: Section 8288, Education Code. Reference: Section 8288, Education Code.

§ 18291 - Commingling of Age Categories.

(a) Whenever groups of children of two (2) age categories are commingled and the younger age group exceeds fifty percent (50%) of the total number of children present, the ratios for the entire group must meet the ratios required for the younger age group.

(b) If the younger age group does not exceed fifty percent (50%) of the total number of the children present, the teacher-child and adult-child ratios shall be computed separately for each group.

NOTE: Authority cited: Section 8288, Education Code. Reference: Section 8288, Education Code.

§ 18292 - Staffing Ratio Variance.

Except as otherwise provided in this Division or Title 22 California Code of Regulations, Community care Licensing Standards the program may exceed teacher-child and adult-child ratios prescribed by Section 18290 by fifteen percent (15%) for a period of time not to exceed one hundred twenty (120) minutes in any one day.

NOTE: Authority cited: Section 8288, Education Code. Reference: Section 8288, Education Code.

[CA] [50101900] [SC014000]

Subchapter 14 - Waiver of Qualifications for Site Supervisor

§ 18295 - Waiver of Qualifications for Site Supervisor; Conditions.

(a) The Child Development Division shall grant a waiver of Education Code section 8208(z) upon a contractor's demonstration of the existence of compelling need. Factors the Child Development Division shall consider in determining compelling need are as follows:

(1) Evidence that the contractor's recruitment efforts have not be successful in obtaining qualified applicants;

(2) Evidence of the contractor's inability to offer competitive salaries;

(3) Evidence of potential or current staffs lack of reasonable access to training resources which offer required course work.

(b) A waiver may be granted if the contractor can provide evidence of either (a)(1), (2) or (3) of this section.

(d) The site supervisor shall, at a minimum, meet the qualifications specified in title 22 California Code of Regulations, Community Care Licensing Standards for "program director."

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8208(z) and 8287, Education Code.

[CA] [50101900] [SC015000]

Subchapter 15 - Appeal and Dispute Resolution Procedures

§ 18300 - Scope of Chapter.

The regulations in this Chapter apply to all agencies contracting with the State Department of Education for provision of services pursuant to the Child Care and Development Services Act Chapter 2 Part 6 of Title 1 of the California Education Code (commencing with Section 8200).

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8401 and 8402, Education Code.

§ 18301 - Termination, Suspension and Major Reductions in Contract.

(a) Pursuant to the requirements of Education Code Sections 8400 through 8409, an independent appeal procedure shall be available to any contractor whose contract is terminated or suspended, or whose total reimbursable contract amount is reduced by four percent (4%) or $25,000, whichever is less.

(b) Such appeals shall be heard by independent hearing officers in accordance with procedures established by the Office of Administrative Hearings as specified in Title I California Code of Regulations, Sections 201 through 207.

(1) A contractor fails to correct items of fiscal or programmatic noncompliance within six (6) months of receiving a conditional contract which includes an addendum stating the specific items of noncompliance and the corrective actions necessary to come into compliance; or

(2) A contractor engages in serious misconduct posing an immediate threat to health and safety or to State funds for any of the reasons listed in Education Code Section 8406.7.

(3) A contractor fails or refuses to make available for examination or copying by an authorized employee of the Department any records or documents that the contractor is required to retain pursuant to this Division, upon a request by that employee to examine or copy such records or documents; or

(4) A contractor refuses to permit an authorized employee of the Department to enter a facility operated by the contractor during the days and/or hours of operation on file with the Department, for the purpose of reviewing administrative operations of the contractor or for observing child care and development services provided by the contractor pursuant to this Division.

(d) Any action by the Child Development Division to terminate or suspend a contract or to reduce the total reimbursable contract amount, as stated in Education Code Section 8402(a) through (c), shall be preceded by a notice stating the specific reasons for the action and describing the contractor's appeal rights.

(e) Unless the termination or suspension is for reason(s) specified in Subsection (c) (2) above, the contractor may continue to operate during the appeal process.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8400-8409 Education Code.

§ 18302 - Contractor's Responsibility After Notice of Termination.

After receiving notice of the Child Development Division's decision to terminate the contract or to make no offer of continued funding, the contractor shall copies to or make available for copying by the Child Development Division all of the following:

(a) A current inventory of equipment purchased in whole or in part with contract funds;

(b) The names, addresses and telephone numbers of all families served by the contract, all staff members funded by the contract; and

(c) Monthly enrollment and attendance reports until the contract is actually terminated or until the final month for which the contractor retains a contract.

(d) Family child care home contractors and Alternative Payment programs shall also submit the names, addresses and telephone numbers of all providers of subsidized services under the contract.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261and 8402, Education Code.

§ 18303 - Administrative Review of Changes in Contract Status.

(a) Contract performance shall be reviewed at least annually by Child Development Division staff who shall determine by April 1 of each year whether to offer continued funding on a clear contract, continued funding on a conditional basis or to make no offer of continued funding.

(b) If the staff recommends conditional status or no offer of continued fund-ing, the contractor shall be notified in writing of the reasons for the proposed change in contract status by April 7. The notice of proposed action shall be sufficiently specific to allow the contractor to respond to the factual basis for the proposed action.

(1) The contractor's response shall be received by the Child Development Division within ten (10) calendar days of receipt of the notice of proposed action;

(2) The contractor's response shall include any written materials in support of its position; and

(3) If the contractor intends to make an oral presentation, the response shall so specify.

(d) If the action is being appealed, the staff recommendation and the contractor's response shall be reviewed by an administrative review panel convened by the Director of the Child Development Division within seven (7) calendar days of receipt of the contractor's response. The review panel will consist of representatives of Child Development Division management and the State Department of Education's Local Assistance Bureau, Legal Office, Office of External Audits and Contracts Office and a representative of a child care and development service provider familiar with the type(s) of program(s) operated by the contractor. Upon review of the written submissions, the panel will do one of the following:

(1) Issue a final decision holding or modifying the proposed change in status if no oral presentation has been requested; or

(2) Schedule a time and place for an oral presentation by the contractor.

(3) Issue a final decision to not change the contract status.

(e) If an oral presentation has been requested, the contractor will be notified by telephone of the time and place of the presentation. The oral presentation will be scheduled no later than fourteen (14) calendar days from receipt of the contractor's response.

(f) At the oral presentation, the contractor or the contractor's representative will have an opportunity to explain any material submitted in its response. While the contractor may present any information or arguments that are relevant to the proposed action, the review panel may set reasonable limits on the scope of the presentation.

(g) Within seven (7) calendar days after the oral presentation, the review panel shall issue and mail to the contractor a decision upholding, reversing or modifying the proposed change in contract status. The decision of the review panel shall be the final action of the State Department of Education with regard to that contract.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8406 and 8406.6, Education Code.

§ 18304 - Conditional Status Imposed During the Contract Period.

(a) If the contractor demonstrates fiscal or programmatic noncompliance during the contract period, based on such information as an annual audit report, a contract compliance review, a program quality review, or a change in licensing status, the Child Development Division may place the contract on conditional contract status for the remainder of the contract period.

(b) The contractor shall receive notice and may request an administrative review of the proposed action as set forth in Section 18303 of this Division, in the event such a change in contract status is recommended by staff of the Child Development Division.(c) if the contract is placed on conditional status during the last ninety (90) days of the contract period and the contractor is offered continued funding, the contract for the subsequent contract period will also be on conditional status.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8406.6, Education Code.

§ 18305 - Conditional Status Addendum.

A conditional status contract shall contain a bill of particulars specified in Education Code Section 8406.6 called a Conditional Status Addendum explain-ing the contract conditions. The Addendum shall include the following:

(a) The specific item(s) of noncompliance which the contractor must correct;

(b) The specific corrective action(s) which must be taken;

(d) Notice that failure to make required corrections will result in termination of the contract or no offer of continued funding.

(e) If the contractor is placed on conditional status during the contract period:

(1) A Conditional Status Addendum will be issued by the State Department of Education and

(2) The Conditional Status Addendum shall be considered a part of the annual child development contract and binding on the contractor.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8406.6, Education Code.

§ 18306 - Monthly Reports; Inventory of Equipment.

A contractor on conditional contract status shall submit:

(a) Monthly enrollment and attendance reports to the State Department of Education, Local Assistance Bureau.

(b) The first monthly report shall include a current inventory of equipment purchased in whole or in part with contract funds.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8406.6, Education Code.

§ 18307 - Duration of Conditional Contract Status.

(a) A contractor shall remain on conditional contract status until the contractor has corrected deficiencies and/or has met requirements identified in the Conditional Status Addendum.

(b) A contractor with a repayment plan shall remain on conditional contract status until full repayment is made.

(1) the State Department of Education issues written notice to the contractor that the conditional status has been cleared; or

(2) the contractor is issued a clear contract; or

(3) the contract terminates according to its terms.

(d) A contractor may request written verification from the Child Development Division that some of the deficiencies have been corrected even if the contractor will not be removed from conditional contract status.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8406.6, Education Code.

§ 18308 - Resolution of Contract Administration Disputes.

(a) The procedure specified in this Section shall be used to resolve disputes between contractors and the State Department of Education that may arise regarding the interpretation and application of any term or condition of a contract, including, but not limited to, requests for waivers, approval of subcontracts or expenditures requiring approval, requests for reimbursement rate adjustments, or reductions in the total amount of contract reimbursement that are not appealable under Section 18301 of this Division.

(b) The contractor shall attempt to resolve contract disputes at the lowest staff level within the State Department of Education.

(c) if the dispute is not resolved at the lowest staff level, the contractor may appeal the decision by submitting a written description of the issues and the basis for the dispute to the Regional Administrator of the Child Development Division having jurisdiction over the contractor's service delivery area. The Regional Administrator shall make a determination and shall send a written notification of the decision to the contractor, together with the reasons for the decision within thirty (30) calendar days of the receipt of the appeal by the Regional Administrator.

(d) The contractor may appeal the decision of the Regional Administrator to the Assistant Director of the Child Development Division by submitting a written description of the issues in the dispute and a copy of the Regional Administrators decision. The Assistant Director of the Child Development Division shall send notification of the decision to the contractor and shall specify the reason(s) for the decision within thirty (30) calendar days of the receipt of the appeal by the Assistant Director. The decision of the Assistant Director of the Child Development Division shall be the final administrative action afforded the contractor.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8445, Education Code.

Title 5. EducationDivision 1. State Department of EducationChapter 19, Child Care and Development Programs

Title 5. Education
Division 1. State Department of Education
Chapter 19, Child Care and Development Programs