# 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.&#x20;

(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.


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