Bill Text: CA AB2323 | 2009-2010 | Regular Session | Amended

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Bill Title: Direct service contracts.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2010-05-28 - In committee: Set, second hearing. Held under submission. [AB2323 Detail]

Download: California-2009-AB2323-Amended.html

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BILL NUMBER: AB 2323	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 19, 2010

INTRODUCED BY   Assembly Member Torlakson
    (   Coauthor:   Assembly Member  
Chesbro   ) 

                        FEBRUARY 19, 2010

   An act to add  Section 8449 to   and repeal
Section 8449 of  the Education Code, relating to child care and
development services.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2323, as amended, Torlakson. Direct service contracts.
   The Child Care and Development Services Act, administered by the
State Department of Education, requires the Superintendent of Public
Instruction to administer child care and development programs for
eligible children from infancy to 13 years of age. The act requires
each entity that enters into a direct service contract with the state
to provide child care and development services to comply with
specified financial requirements, and to annually undergo a financial
and compliance audit.
   This bill would authorize a contractor to carry forward certain
reimbursable expenses and unearned funds to a subsequent contract
issued by the department to continue the same program or services,
subject to specified requirements.  The bill would require the
department to submit a report to specified committees of each house
of the Legislature by January 1,   2014. The bill would
repeal the bill's provisions on January 1, 2016. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8449 is added to the Education Code, to read:
   8449.  (a) Notwithstanding any other provision of law, a
contractor whose reimbursable expenses in any direct service contract
exceed the earnings in the contract shall be allowed to carry
forward the reimbursable expenses that exceed contract earnings to a
contract issued by the department to continue the same program
services, except that the expenses carried forward shall not exceed
10 percent of the maximum reimbursable amount of the contract from
which the expenses are carried forward. 
   (b) A contractor shall be allowed to carry over up to 20 percent
of unearned funds in a direct service contract to a contract issued
by the department to continue the same program services during a
subsequent contract period. Those unearned funds shall be reimbursed
pursuant to the laws and regulation, including earning funds, that
apply to the subsequent period. The department may require the
contractor to submit a plan to earn the carryover funds in the
subsequent contract period.  
   (c) Nothing in this section shall require the department to issue
a new contract to a contractor in a subsequent period to continue
services.  
   (b) Nothing in this section shall require the department to do
either of the following:  
   (1) Issue a new contract to a contractor in a subsequent period to
continue services.  
   (2) Increase the future contract as a result of a contractor
carrying forward any reimbursable expenses pursuant to this section.
 
   (c) Nothing in this section changes the requirements under Section
8265 that contractors earn reimbursement through serving children,
or reduces the number of children that a contractor must serve to
earn its contract.  
   (d) (1) The department shall submit a report to the Senate and
Assembly Committees on Appropriations, the Senate Committee on Budget
and Fiscal Review and Assembly Committee on Budget, and Senate and
Assembly Committees on Education by January 1, 2014, on the number
and percentage of contractors that carried over expenses and the
amount carried over pursuant to subdivision (a).  
   (2) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
 
   (e) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.