# Reduction, Withholding, and Cancelling Apportionments to Contractors

(a) The California Department of Education (CDE) shall reduce, withhold or cancel any scheduled apportionment when one or more of the following conditions exist: 

              (1) The contractor has not submitted an acceptable audit for any prior year of operation on or before the date due. 

              (2) The contractor has not submitted the reports required by sections 18068, 18069, 18070, 18071, 18072 and 18073 of this Division, if applicable, on or before the date due. 

              (3) The contractor will not earn the full contract amount based on the current year projected and the prior year actual net reimbursable programs costs as determined by the CDE, Local Assistance Bureau. 

              (4) A creditor of the contractor has placed a lien on the contractor's scheduled apportionments.                                       

              (5) The contractor has accounts payable which are: 

                            (A) more than 90 days delinquent to the CDE; and 

                            (B) not under appeal as specified in either section 18301 or section 18308 of this Division. 

(b) If any apportionment is to be reduced, withheld or cancelled, the CDE shall provide the contractor prior written notice of the intended action.

> NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8265, Education Code.


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