# 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. (c) Termination or suspension of a contract during the contract period may occur when: (1) A contractor fails to correct items of fiscal or programmatic non-compliance 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; or (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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://title5.caqualityearlylearning.org/appeal-and-dispute-resolution-procedures/termination-suspension-and-major-reductions-in-contract.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.