BILL NUMBER: AB 2323	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Torlakson

                        FEBRUARY 19, 2010

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2323, as introduced, 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.
   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.