(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

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