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(a) “Additional funds” means award of new contracts or expanded contracts that increase the contractor's level of administrative responsibility. Additional funds do not include cost of living adjustments, rate increases, one-time-only supplemental funds or Alternative Payment program contingency funds.

(b) “Applicants headquartered in” means: (1) Contractors or applicants that have provided child care and development services in the service delivery area, as defined in section 18000(f) of this Article, for at least three years immediately preceding the posting date of the Request for Applications (RFA); or

(2) Contractors or applicants that have their primary administrative offices for the child development program in the service delivery area as defined in section 18000(f) of this Article. The primary administrative office is that office which houses the executive officer(s), the fiscal functions, and other centralized support services as documented to the Internal Revenue Service and/or the California School Directory Web site located at http://www.cde.ca.gov.

(c) “Cost effective manner” for the purposes of Article 3 of this Chapter, means that services are provided at rates which are within the range of local market rates.

(d) “New contract” means either:

(1) a contract award to applicants who do not currently contract with the California Department of Education (CDE) for child care and development services; or

(2) a contract award to a current contractor that is for a program type as specified in Education Code section 8208(i) that is different than the child development contract(s) currently administered by the applicant.

(e) “Request for Applications (RFA)” means an announcement issued by the CDE for an award of new funding for child care and development services or expansion of existing level of services. The RFA includes, but is not limited to:

(1) the application content requirements;

(2) procedures and timelines for submission of an application for funding; and

(3) how the application will be scored.

(f) “Service delivery area” means the community, geographic area or political subdivision in which the child care and development services are to be provided as specified in the RFA.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261, 8406.6 and 8447, Education Code.

(a) Prior to announcing an award, the CDE shall verify:

(1) the applicant's eligibility for funding pursuant to section 18001 of this Division; and

(2) as applicable, all applicants who have filed appeals have either been notified of the results of their appeal or the applicant has withdrawn its appeal.

(b) The applicants will be awarded contract funding based on the applicant's score for the program narrative, the preference described in section 18002(d)(3), and the local child care planning council priority rankings established pursuant to Education Code section 8499.5(d).

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261 and 8444, Education Code.

(a) Alternative Payment programs as defined in section 18018(e) of this Division may apply for funding for additional services which were provided pursuant to section 8222.1 of the Education Code by submitting a request to the California Department of Education, Office of External Audits.

(b) The request shall be in the form of a letter which must be submitted by October 31 of the fiscal year following the fiscal year in which the additional costs were incurred and services were provided.

(c) The Office of External Audits shall order payments from the contingency fund after verifying:

(1) the costs incurred and the level of additional services provided;

(2) that reimbursement from the contingency fund does not exceed five thousand dollars ($5,000) or two percent (2%) of the contractor's maximum reimbursable amount, whichever is greater; and

(3) that the contractor has not been reimbursed for additional services from the contingency fund for the prior two consecutive years.

NOTE: Authority cited: Section 8269, Education Code. Reference: Sections 8222.1 and 8278, Education Code.

(a) An applicant must submit a complete application in accordance with the instructions and timeline(s) contained in the RFA.

(b) If the application submitted is incomplete or not completed in accordance with the instructions and timeline(s), the CDE may reject it. If the CDE rejects it, no further review shall be made.

(c) Any change made to the contents of the RFA, shall be posted on the CDE's funding Web site located at http://www.cde.ca.gov/.

(d) All complete applications submitted in accordance with the instructions and timeline(s) in the RFA shall be evaluated as follows:

(1) Applications shall be evaluated and scored as specified in the RFA.

(2) If the RFA includes more than one service delivery area, applicants shall be considered for the service area(s) specified in their applications.

(3) Applicants headquartered in the service delivery area(s) specified in the RFA shall be given preference over applicants with the same score that are not headquartered in the specified area(s).

(e) The CDE shall notify all applicants in writing of their score.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261 and 8445.

(a) A current contractor is eligible to apply for new or additional funds except when one or more of the following conditions apply during the RFA cycle:

(1) the contractor is on conditional status because of fiscal or programmatic noncompliance as described in section 18303 or 18304; or

(2) the CDE's Child Development Division has conducted a compliance review pursuant to section 18023 and the contractor has failed to cure items of fiscal and programmatic noncompliance identified in the review within 12 months of the issuance of the compliance review report; or

(3) the CDE reduced the contractor's current year maximum reimbursement amount due to the contractor's inability to utilize its full contract amount, whether through low enrollment or low expenditures for the same contract type.

(b) An applicant that is not a current CDE contractor is not eligible to apply for funding if one of the following conditions apply:

(1) the contractor had a previous contract with the CDE that was terminated or not continued by the CDE for fiscal or programmatic noncompliance as described in section 18303 or 18304 within three years immediately preceding the date the RFA was posted; or

(2) the applicant contractor has an outstanding accounts receivable balance with the CDE; or

(3) the applicant contractor has a delinquent audit with the CDE pursuant to section 18073.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261, 8406.6, 8447.5 and 8448, Education Code.

(a) If the contractor receives income from materials developed with contract funds, the use of the income shall be restricted to the child development program.

(b) If the materials were developed in part with contract funds, the income from the sale of the materials that shall be used in the child development program shall be computed in direct proportion to the share of contract funds used in development of the materials.

(c) Materials developed with contract funds shall contain:

(1) An acknowledgement of the use of State funds in the development of materials;

(2) A disclaimer that the contents do not necessarily reflect the position or policy of the California Department of Education.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

(a) No additional eligibility criteria beyond those specified in Section 18005 of this Division and Education Code Sections 8477 and 8478.5 shall be imposed.

(b) Based on the priorities and procedures specified in Sections 18006 and 18007 above, the Child Development Division shall make recommendations for funding to the State Allocation Board.

(c) Funds shall be awarded by the State Allocation Board based on availability and rules and procedures established by the State Allocation Board pursuant to Education Code Sections 8477(e) and 8478.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8477, Education Code.

Contractors with facilities which are exempt by statute or otherwise exempt from licensure shall comply with health and safety regulations for day care centers and family child care homes as specified in Title 22 California Code of Regulations, Community Care Licensing Standards in order to qualify for child care and development program contract funds.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

Three (3) Bids for Subcontracts Exceeding the Amount Stated in Annual Contract.

Private contractors shall obtain at least three (3) bids or estimates for subcontracts that exceed the amount stated for subcontract bid requirements in the annual child development contract.

(a) The subcontract shall be awarded to the lowest responsible bidder.

(b) If three (3) bids or estimates cannot be obtained, the private contractor shall maintain documents in its records that establish:

(1) The reasons why three (3) bids or estimates could not be obtained; and

(2) The reasonableness of the proposed expenditure without three

(3) bids or estimates.

(c) The contractor shall not split subcontracts to avoid competitive bidding requirements.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

(a) Title. When equipment is purchased with State funds, title shall vest in the contractor only for such period of time as the contractor has a contract with the California Department of Education (CDE).

(b) Retention of Equipment. The Child Development Division (CDD) may provide written authorization for the contractor to retain the equipment for the contractor's own use if a fair compensation is paid to the State for the State's share of the cost of the equipment. Fair compensation shall be determined by the State using the State's share of original acquisition cost, less depreciation, computed on a straight line method over the estimated useful life expectancy of the equipment.

(c) Use. When equipment is purchased in whole or in part with State funds, the contractor shall use the equipment exclusively in the program(s) from which funds were used to purchase the equipment. If the contractor wishes to share the use of the equipment between/among two or more programs, the cost of such equipment shall be prorated between/among the programs.

(d) Disposition. If the contractor no longer has a contract with the CDE, the contractor shall dispose of the equipment in accordance with written directions from the CDD.

The following types of relationships are not subject to the regulations contained in this Article:

(a) Employment agreements;

(b) Facility rental or lease agreements;

(c) Payment arrangements with family child care homes;

(d) Payment arrangements with child care providers for Alternative Payment programs;

(e) Medical or dental service agreements;

(f) Bookkeeping/auditing agreements, except for Section 18027;

(g) Food services agreements;

(h) Janitorial and groundkeeping agreements;

(i) A subcontract with a public agency; and

(j) Subcontracts with an individual for less than ten thousand dollars ($10,000.00), except for Section 18027.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

(a) A contractor with more than one service delivery area as specified in and funded through a single contract shall maintain service at the same level, plus or minus ten percent (10%) of the contracted child hours or child days of enrollment, as applicable, in the individual service area(s) specified in its current contract.

(b) The contractor may request approval from the Child Development Division to vary service levels by more than ten percent (10%) if the contractor can demonstrate that the need for services in the designated area(s) has changed.

(c) The Child Development Division shall approve or deny the request within thirty (30) calendar days of receipt of the request.

(d) If the request is denied, the contractor may appeal this decision in accordance with Section 18308 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203 and 8269, Education Code.

(a) Definitions.

(1) “Compliance review” means that a team of California Department of Education staff reviews a contractor's program at the program site to determine compliance with applicable laws, regulations, or contractual provisions.

(2) “CCR” means the monitoring and review instrument for child development programs that is used to determine compliance and is contained within the “Coordinated Compliance Review Guide -- 2003-2004”, a document that is incorporated by reference.

(b) At least once every three (3) years and as resources permit, the California Department of Education shall conduct reviews at the contractor's office(s) and operating facility(ies) to determine the contractor's compliance with applicable laws, regulations or contractual provisions.

(c) The reviews shall be conducted according to the provisions of CCR, as defined in subsection (a)(2) of this section.

(d) The reviews shall be conducted by consultants, analysts, and/or management staff of the California Department of Education or other State of California representatives.

(a) The requirements of this section are in addition to those stated in section 18086.

(b) If the parent's employment is in the family's home or on property that includes the family's home, the parent must provide justification for requesting subsidized early learning and care services based on the type of work being done and its requirements, the age of the family's child for whom services are sought, and, if the child is more than five years old, the specific child care needs. The contractor shall determine and document whether the parent's employment and the identified child care needs preclude the supervision of the family's child.

(c) If the parent is a licensed family day care home provider pursuant to Health and Safety Code section 1596.78 or an individual license-exempt provider pursuant to Health and Safety Code section 1596.792, subsections (d) or (f), the parent is not eligible for subsidized services during the parent's business hours because the parent's employment does not preclude the supervision of that parent's own child.

(d) If the parent is employed as an assistant in a licensed large family day care home, pursuant to Health and Safety Code section 1596.78(b), and is requesting services for the family's child in the same family day care home, the parent shall provide documentation that substantiates all of the following:

(1) A copy of the family day care home license indicating it is licensed as a large family day care home;

(2) A signed statement from the licensee stating that the parent is the assistant, pursuant to the staffing ratio requirement of California Code of Regulations, title 22, section 102416.5;

(3) Proof that the parent's fingerprints are associated with that licensed family day care home as its assistant, which the contractor may verify with the local community care licensing office; and

(4) Payroll deductions withheld for the assistant by the licensee, which may be a pay stub.

NOTE: Authority cited: Sections 8261, 8263 and 8265, Education Code. Reference: Sections 8206, 8261 and 8263, Education Code.

After receiving the written notification of its score as described in section 18002(e) above, an applicant may review its application, the criteria used to score the application, and any reader comments on its application. An applicant may appeal its score. If the applicant intends to appeal, the following appeal process shall apply:

(a) An applicant shall send a notice of appeal to the CDE's Child Development Division within ten business days of receipt of the notice of its score issued pursuant to section 18002(e).

(b) The notice to appeal shall contain the following information:

(1) the appellant's name, mailing address, and telephone number;

(2) the name(s) of the person(s) who will represent the appellant at the appeal hearing;

(3) whether the representative(s) will attend the appeal hearing in person or communicate through a telephone conference call.

(c) Within ten days of receipt of the notice of appeal, the CDE will notify the appellant of the date, time and place of the appeal hearing in writing to the address provided pursuant to subdivision (b)(1).

(d) The appeal will be limited to the application submitted in response to the RFA.

(e) The CDE shall notify the appellant in writing of the results of the appeal within ten business days of the appeal hearing.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261 and 8406.6, Education Code.

As used in this Division:

(a) “Actual and allowable net costs” means the costs which may be reimbursed under a particular child development contract after disallowed costs and restricted income have been subtracted from total expenditures.

(b) “Adjusted child days of enrollment” means child days of enrollment after special needs adjustment factors specified in Education Code section 8265.5 have been applied.

(c) “Administrative costs” means costs incurred for administrative activities where neither the family, the child nor the service providers for Alternative Payment programs and family child care homes directly benefit from the activity.

(d) “Adult” for the purposes of this Division means a person who is at least 18 years of age.

(e) “Alternative Payment programs” means contracts designated as Alternative Payment, County Welfare Department, or Child Protective Services. Contracts designated as Exceptional Needs which operate in a vendor payment mode are included in the definition of Alternative Payment programs. Contractors operating Alternative Payment programs are not precluded from contracting for other program types as specified in Education Code section 8208(h).

(f) “Authorized representative” means a person who has been delegated the responsibility to sign a child in and out of a child care program in the absence of the parent.

(g) “Benefit to the state” means that the activity will improve knowledge or expertise in areas directly related to subsidized child care and development services.

(h) “Ceases operation” means the contractor does not provide subsidized services in accordance with the contractor's program operating calendar submitted to and approved by the Child Development Division for the applicable contract period.

(i) “Commingled child care services” means the provision of services to both subsidized and nonsubsidized children in the same classroom at the same time.

(j) “Contract period” means the time span the contract is in effect as specified in the child development contract.

(k) “Depreciation” means a cost in the current fiscal year that is based on acquisition costs, less any estimated residual value, computed on a straight line method (based on the normal, estimated useful life expectancy of the asset).

(l) “Disallowed costs” means costs which have been incurred but are not reimbursable because they are not reasonable and/or necessary for the performance of the contract as defined in section 18013(s) of this Division or are nonreimbursable as specified in section 18035 of this Division.

(m) “Indirect cost” means an expense that cannot be readily assigned to one specific program or one specific line item within a program.

(n) “Indirect cost allocation plan” means a written justification and rationale for assigning the relative share of indirect costs across more than one program or contract.

(o) “Maximum reimbursable amount” means the total dollar amount of a contract. Reimbursement from the State shall not exceed the maximum reimbursable amount. The initial maximum reimbursable amount shall be the approved original version of the annual contract based on the Budget Act as signed by the Governor.

(p) “Net reimbursable program costs” means the portion of the actual and allowable net costs which are incurred in the provision of child care and development services for subsidized children.

(q) “Private contractor” means an entity other than a public agency which is tax exempt or non-tax exempt and under contract with the California Department of Education (CDE) for the provision of child care and development services.

(r) “Public contractor” means a school district, community college district, county superintendent of schools, campus of the California State University or the University of California system, county, city or other public entity under contract with the CDE for the provision of child care and development services.

(s) “Reasonable and necessary costs” means expenditures that, in nature and amount, do not exceed what an ordinarily prudent person would incur in the conduct of a competitive business.

(t) “Restricted income” means income which the donor designates may only be expended for specific limited purposes that are reimbursable according to the contract.

(u) “Total contract amount” for the purpose of determining the limit of allowable administrative and program support services for Alternative Payment type programs means either the initial maximum reimbursable amount or the total of direct payments to providers, which includes family fees for certified children and interest earned on advanced contract funds, plus reimbursable administrative and support services costs, whichever is greater.

(v) “Total expenditures” means all costs for the provision of subsidized services under the contract and any nonsubsidized services which are provided in commingled classrooms.

(w) “Unnecessarily increase the value” means an improvement of a site beyond what is required to meet California Code of Regulations, title 22, Community Care Licensing Standards.

(x) “Unrestricted income” means income that has no restrictions regarding use by the donor, and income restricted by the donor for purposes that are not reimbursable according to the contract, including income for services to children not subsidized by the contract.

(y) “Use allowance” means an alternate method for claiming the use of the contractor's assets as a cost when depreciation methods are not used.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8208 and 8261, Education Code.

(a) Fees received from subsidized parents are to be expended and earned by the contractor before contract funds shall be claimed for reimbursement.

(b) Such fees shall be expended on reimbursable costs and earned by providing child days/hours of enrollment beyond the minimum required by the contract at a rate equal to the lesser of the daily/hourly contract rate or the actual cost.

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

In order for a contractor to be eligible to apply for a lease of a relocatable facility for extended day care, the contractor shall maintain a clear or provisional contract status.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8477, Education Code.

Unless otherwise provided in this Division, the regulations in this Chapter apply to all contracting agencies authorized to establish, maintain, or operate services pursuant to the Child Care and Development Services Act, Chapter 2, Part 6 of Title 1 of the California Education Code (commencing with Section 8200).

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8203, 8261 and 8269, Education Code.

For programs serving participants in the Greater Avenues for Independence Act of 1985 (GAIN), priorities for the acquisition and leasing of facilities from the Child Care Facilities Fund are:

(a) First priority shall be given to extended day care programs that:

(1) Operate within the boundaries of school districts that have unhoused pupils;

(2) Have developed a plan to provide extended day care services in a cost effective manner; and

(3) Are providing or seeking to provide extended day care services in, or in close proximity to, public housing projects, or in areas of high density of recipients of benefits under the Aid to Families with Dependent Children programs in order to serve participants under the Greater Avenues for Independence Act of 1985 (GAIN).

(b) Second priority shall be given to extended day care programs that:

(1) Operate within the boundaries of a school district that has housed pupils;

(2) Have developed a plan to provide extended day care services in a cost effective manner; and

(3) Are providing or seeking to provide extended day care services in, or in close proximity to public housing projects, or in areas of high density of recipients of benefits under the Aid to Families with Dependent Children programs in order to serve participants under the Greater Avenues for Independence Act of 1985 (GAIN).

(c) Third priority shall be given to extended day care programs that:

(1) Operate within the boundaries of a school district that has unhoused pupils;

(2) Have developed a plan to provide extended day care services in a cost effective manner; and

(3) Are providing or seeking to provide extended day care services that are not in or in close proximity to public housing projects, or in areas of high density of recipients of benefits under the Aid to Families with Dependent Children programs in order to serve participants under the Greater Avenues for Independence Act of 1985 (GAIN).

(d) Fourth priority shall be given to extended day care programs that:

(1) Operate within the boundaries of a school district that has housed pupils;

(2) Have developed a plan to provide extended day care services in a cost effective manner; and

(3) Are providing or seeking to provide extended day care services that are not in or in close proximity to public housing projects, or in areas of high density of recipients of benefits under the Aid to Families with Dependent Children programs in order to serve participants under the Greater Avenues for Independence Act of 1985 (GAIN).

NOTE: Authority cited: Section 8461, Education Code. Reference: Section 8478.5, Education Code.

(a) Contractors have no vested right to a subsequent contract.

(b) Contractors that are not on conditional contract status but which have evidenced fiscal or programmatic noncompliance with the provisions of this Division or Education Code Sections 8200 et seq., shall receive an administrative review in accordance with Section 18303 of this Division to determine whether they will receive an offer for continued funding.

(c) Contractors currently on conditional status that do not meet the requirements specified in the Conditional Status Addendum, as specified in Section 18305 of this Division, may not be offered a subsequent contract and shall be so notified by the Child Development Division at least ninety (90) calendar days prior to the end of the current contract period.

(d) Contractors that intend to accept the offer to continue services in the subsequent contract period shall respond to a continued funding application request from the Child Development Division in accordance with the instructions and timelines specified in the request.

(e) Failure to respond within the timelines specified in the continued funding application request shall constitute notification to the Child Development Division of the contractor's intent to discontinue services at the end of the current contract period unless the contractor has received a written extension of the original timeline from the Child Development Division.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8406.6, Education Code.

Reimbursable costs include, but are not limited to, the following:

(a) Start-up costs specified in Education Code Section 8275, not to exceed fifteen percent (15%) of the annual contract amount.

(b) Close-down costs for Migrant Programs as specified in Education Code Section 8233.

(c) Administrative costs, not to exceed fifteen percent (15%) of net reimbursable program costs. Such costs include activities that do not provide a direct benefit to the children, parents, or providers.

(d) Employee compensation, including fringe benefits, and personal service contracts.

(e) Equipment and equipment replacement with prior Child Development Division approval if required in the annual child development contract.

(f) Improvement of sites and adjacent grounds to meet or continue to meet Title 22 California Code of Regulations, Community Care Licensing Standards. Reimbursable improvements are those that:

(1) do not unnecessarily increase the value as defined in 18013(v) of this Division of a facility; and

(2) the contractor has obtained prior Child Development Division approval if required in the annual child development contract.

(g) Taxes, insurance, and maintenance for buildings and/or equipment.

(h) Depreciation based on the useful life of an asset using a straight line method from the original date of acquisition. Depreciation shall not be claimed on land, donated assets or assets purchased with public funds.

(i) A use allowance for buildings and improvements, computed at annual rate not to exceed two percent (%) of acquisition costs. A use allowance for equipment computed at an annual rate not to exceed six and two-thirds percent (6 2/3%) of acquisition costs. A use allowance shall not be claimed on assets purchased with contract funds or on land, and shall not be claimed for assets for which depreciation has been claimed.

(j) Travel and per diem expenses, including approved out-of-state travel, at rates not to exceed those rates paid to the majority of State Department of Education's represented employees computed in accordance with State Department of Personnel Administration regulations, Title 2 California Code of Regulations, Subchapter 1. The Child Development Division shall notify the contractor of a change in expense rates within thirty (30) calendar days after the Child Development Division has received notification of a change in rates from the State Department of Personnel Administration.

(k) An indirect cost rate based on an approved cost allocation plan, not to exceed the rate specified in the annual child development contract.

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

Reimbursement for net reimbursable program costs shall meet the following criteria:

(a) Costs must be incurred during the contract period.

(b) Contractors shall not use current year contract funds to pay prior or future year obligations.

(c) The cost of the annual independent audit may be claimed either in the contract period which was the subject of the audit or during the contract period in which the audit is completed.

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

(a) Contractors shall notify the Child Development Division in writing of any change in mailing address for communication regarding the contract within ten (10) calendar days of the address change.

(b) Contractors shall notify the Child Development Division in writing of any proposed change in operating facility address(es) at least thirty (30) calendar days in advance of the change unless such change is required by an emergency such as fire, flood or earthquake.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

The contractor shall not provide nor be reimbursed for child care and development services which include religious instruction or worship.

NOTE: Authority cited: Section 8269, Education Code. Reference: Section 8265, Education Code.

Except for external payroll services, private contractors:

(a) Shall not use any presigned, preauthorized, or pre-stamped checks, without the prior written approval of the Child Development Division; and

(b) Shall require two (2) authorized signatures on all checks unless:

(1) the contractor has a policy approved by its governing board requiring dual signatures only on checks above a specified dollar amount; and

(2) the annual audit verifies that appropriate internal controls are maintained.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

(a) Contractors shall not loan contract funds to individuals, corporations, organizations, public agencies or private agencies.

(b) Contractors shall not advance unearned salary to employees.

(c) Contractors shall not make advance payments to subcontractors and shall compensate subcontractors after services are rendered or goods are received except for:

(1) Subcontractors providing direct child care and development services; and

(2) Subcontractors with subcontracts exempt from the provisions of Article 2 of this Chapter as specified in Section 18026 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

Prior Child Development Division Approval Required for All Subcontracts Exceeding the Amount Stated in the Annual Child Development Contract

Contractors shall obtain prior written approval from the Child Development Division for subcontracts that:

(a) Are not excluded from the provisions of this Article by Section 18026 of this Division; and

(b) Exceed the amount stated for subcontract approval in the annual child development contract.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

(a) A contractor may terminate the contract for any reason during the contract term.

(b) The contractor shall notify the Child Development Division of its intent to terminate the contract at least ninety (90) calendar days prior to the date the contractor intends to terminate the contract.

(c) Within fifteen (15) days from the date the contractor notifies the Child Development Division of its intent to terminate the contract, the contractor shall submit:

(1) A current inventory of equipment purchased in whole or in part with contract funds; and

(2) The names, addresses and telephone numbers of all families served by the contract and all staff members funded by the contract.

(3) Family child care home and Alternative Payment program contractors shall also submit the names, addresses and telephone numbers of all providers of subsidized services funded by the contract.

(d) Upon receipt of a notice of intent to terminate, the Child Development Division will transfer the program to another agency as soon as practicable.

Every subcontract shall specify:

(a) The dates within which the subcontractor is to perform the contract. The time for subcontractor performance shall not begin prior to, nor shall the time extend beyond, the time period of the contract between the contractor and the State.

(b) The dollar amount of the subcontract or specify an amount not to exceed a maximum dollar amount.

(c) The service(s) to be provided under the subcontract.

(d) The responsibilities of each party under the subcontract.

(e) That the subcontractor, and the agents and employees of the subcontractor, in the performance of the subcontract, are acting in an independent capacity and not as officers or employees or agents of the State of California.

(f) That modifications of the subcontract shall be in writing, and that for subcontracts in excess of the amount stated in the annual child development contract, prior written Child Development Division (CDD) approval is required unless the subcontract is otherwise exempt from prior CDD approval.

(g) That the subcontract is the complete and exclusive statement of the mutual understanding of the parties and that the subcontract supersedes and cancels all previous written and oral agreements and communications relating to the subject matter of the subcontract.

(h) Remedies, in case of a breach of contract, for subcontracts in excess of $10,000.00.

(i) That the State of California retains title to any equipment or supplies purchased with State funds and that the equipment shall be returned to the contractor upon termination of the subcontract. The subcontract shall also specify that the subcontractor shall obtain prior written approval from the contractor and the CDD for any unit of equipment that costs in excess of the amount stated in the annual child development contract.

(j) That the subcontractor shall be reimbursed for travel and per diem expenses only at rates that do not exceed the rates paid to the majority of California Department of Education's represented employees computed in accordance with State Department of Personnel Administration regulations, Title 2, California Code of Regulations, Subchapter 1.

(k) That the subcontractor agrees to indemnify and hold harmless the State of California, its officers, agents and employees from any and all claims and losses occurring or resulting to any and all contractors, subcontractors, materialmen, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of the subcontract, and from any and all claims and losses occurring or resulting to any person, firm or corporation that may be injured or damaged by the subcontractor in the performance of the subcontract.

(l) That for those subcontracts requiring CDD prior approval, the subcontractor shall maintain records for program review, evaluation, audit and/or other purposes and make the records available to agents of the State for a period of five years.

(m) Contain provisions of the “Nondiscrimination Clause” included in the prime contract as specified in Title 2 California Code of Regulations, Chapter 5, section 8107.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.

Expenditure from the Child Development Fund shall occur in the following order:

(a) Fees collected from parents of certified children shall be first in and first out.

(b) State or federal contract funds apportioned by the California Department of Education (CDE) shall be second in and second out.

(c) Interest received on advanced CDE funds shall be last in and last out.

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

(a) Subcontracts requiring Child Development Division approval shall be audited in accordance with California Department of Education (CDE) Audit Guidelines.

(b) The cost of the audit shall be reimbursable and shall be borne by the contractor either directly or as an allowance in the subcontract.

(c) The audit of the subcontract shall be submitted to the CDE as follows:

(1) School districts, county offices of education and community colleges shall submit the audit of the subcontract by the fifteenth day of the fifth month following the fiscal year in which the subcontracted services were performed;

(2) All other contractors shall submit the subcontract audit along with the contractor's audit as specified in section 18071 of this Division.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8448, Education Code.

The following costs shall not be reimbursable under the child development contract:

(a) Bad debts, including losses arising from uncollectible accounts and any related legal costs. Uncollected parent fees are not considered to be bad debts if documentation of collection attempts exists;

(b) Contributions;

(c) Costs of amusement or entertainment;

(d) Costs of fines or penalties;

(e) Costs of idle facilities unless those costs are related to a partial year program and the costs of the idle facilities have been approved by the Child Development Division;

(f) Costs incurred after the contract has been terminated;

(g) Fund raising costs except as specified in Section 18277 of this Division;

(h) Consumer interest except:

(1) Interest on borrowed funds when apportionments are withheld because of a delay or error attributable to the State and the amount of interest claimed is approved by the Child Development Division; or

(2) when interest is part of a lease purchase agreement.

(i) Investment management costs;(j) Costs of organization of a nonprofit corporation such as incorporation fees or consultant fees;(k) Public relations consultant fees;(l) Costs of legal, consulting and accounting services incurred in prosecution of claims against the State;(m) State and federal income taxes;(n) Costs for the acquisition of sites and buildings except through depreciation;(o) Bonuses unless part of a collective bargaining agreement;(p) Compensation to the members of the board of directors except for:(1) reimbursement, computed in accordance with Section 18034 of this Division, for travel and/or per diem incurred while the members are conducting business for the organization; and(2) as provided in the California Corporation Code Section 5227, et seq.(q) Costs of subcontracts which increase the contractor's cost or subcontracts which contain a provision for reimbursement for cost-plus a percentage-of-costs.

Contractors will be reimbursed for actual costs that are reasonable and necessary to the performance of the contract as defined in Section 18013(s) of this Division.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8265 and 8275, Education Code.

(a) Contractors operating centers and/or family child care homes shall use daily sign-in/sign-out sheets as a primary source document for audit and reimbursement purposes.

(b) One of the following persons shall enter the time of arrival and departure on a sign-in/sign-out sheet and, except as specified in Subsection (c) below, shall sign the sheet using their full signature:

(1) The parent or other adult authorized by the parent to drop off/pick up a child; or

(2) The staff person designated by the contractor as the person responsible for entering the times of arrival and departure if the child is not dropped off/picked up by a parent or other adult authorized by the parent.

(c) First and last initials of the contractor's authorized representative along with a notation of the time are required to document when a school-age child departs for and returns from school during the day.

(d) Contractors operating an Alternative Payment program may use an alternative to daily sign-in/sign-out sheets as documentation of attendance for reimbursement purposes with the prior written approval of the Child Development Division.

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

(a) When expenditures for equipment, equipment replacement and improvements exceed the level specified in the annual child development contract, private contractors shall obtain at least three (3) bids or estimates;

(1) Award shall be made to the lowest responsible bidder;

(2) If three (3) bids or estimates cannot be obtained, the contractor shall maintain documentation that specifies the reason(s) why three (3) bids or estimates could not be obtained and establishes the reasonableness of the cost without three (3) bids or estimates;

(b) When expenditures for equipment, equipment replacement and improvements exceed the level specified in the annual child development contract, the contractor shall request prior written approval from the Child Development Division.

(c) The Child Development Division shall approve or deny the request for the capital outlay expenditure within thirty (30) calendar days of the receipt of the request;

(d) If the request is denied, the contractor may appeal the decision in accordance with instructions specified in Section 18302 of this Division.

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

(a) Contractors shall be reimbursed for out-of-state travel expenses only with prior written approval from the Child Development Division. The Child Development Division shall not approve out-of-state travel expenses:

(1) For more than one employee per contract per year;

(2) For contractors with delinquent accounts payable which are delinquent more than ninety (90) calendar days after the date of the original invoice;

(3) For contractors on conditional status;

(4) When there is no clear benefit to the state; or

(5) When the benefit to the state can be obtained within California.

(b) The Child Development Division shall approve or deny the request for out-of-state travel within thirty (30) calendar days of the receipt of the request;

(c) If the request is denied, the contractor may appeal the decision in accordance with instructions specified in Section 18308 of this Division.

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

(a) Contractors shall submit reports containing the following information for each contract to the California Department of Education at intervals specified in the annual child development contract:

(1) Days/hours of enrollment and attendance for all children served in the program in the current reporting period and year to date;

(2) Total days of operation in the current reporting period and year to date;

(3) Except for contractors operating Alternative Payment programs, the report shall include all services, revenues and expenditures for both subsidized and nonsubsidized children if nonsubsidized and subsidized children are commingled as defined in section 18013(i) of this division;

(4) Amount and sources of all revenues other than advanced contract funds for the current reporting period and the year to date; restricted and unrestricted income shall be reported as follows:

(A) restricted income expended during the contract period shall be reported as “restricted”; restricted income that is not expended during the contract period remains restricted and shall be considered “deferred revenue”;

(B) all unrestricted income shall be reported as “unrestricted”;

(5) Total expenditures related to the program operation for the current reporting period and the year to date, including all expenses for specific purposes as designated by restricted income and all non-reimbursable expenses.

(b) Reports not received by the due dates shall be considered delinquent. Penalties for delinquent reporting are specified in section 18056 of this division.

(c) Contractors on conditional or provisional status shall report monthly.

NOTE: Authority cited: Section 8269, Education Code. Reference: Section 8269, Education Code.

Contractors shall report expenditures on an accrual basis.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261 and 8448(g), Education Code.

(a) Except for Resource and Referral programs and Alternative Payment type programs, all contractors shall be reimbursed for an audited claim that is the least of the following:

(1) The maximum reimbursable amount as stated in the annual child development contract; or

(2) The net reimbursable program costs; or

(3) The product of the adjusted child days of enrollment for certified children, times the contract rate per child day of enrollment, times the actual percentage of attendance plus five percent (5%), but in no case to exceed one hundred percent (100%) of enrollment;

(b) Resource and Referral programs will be reimbursed for the lesser of subdivisions (a)(1) or (a)(2) of this section.

(c) Alternative Payment type programs shall be reimbursed for an audited claim that is the least of the following:

(1) The maximum reimbursable amount as stated in the annual child development contract; or

(2) The amount earned, which is reimbursable expenditures of:

(A) direct payments to providers, which includes family fees for certified children and interest earned on advanced contract funds; and

(B) actual administrative and support costs directly related to child care services provided, which combined cannot exceed the allowable percentage of the total contract amount.

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

(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.

(a) The State Department of Education shall recoup any payments made for costs which were not reasonable and necessary. The amount that is recouped shall be the excess payment over the reasonable or fair market value, or one hundred percent (100%) of the cost, if the cost was not necessary.

(b) The State Department of Education may elect to recover any costs of recoupment, including collection services or attorney fees.

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

(a) All contractors shall establish a fund to be known as the “Child Development Fund” as specified in Education Code Section 8328, except that private contractors shall establish the fund in a federally insured banking institution located in California.

(b) Contractors with multiple fund sources shall establish separate program cost accounts for each source of funds.

(c) If a contractor places advanced contract funds in an interest bearing account, the interest bearing account shall be a separate account within the Child Development Fund.

(d) Interest earned shall be retained by the contractor if:

(1) Expended on reimbursable costs; and

(2) Except Resource and Referral programs, earned by providing subsidized days/hours of enrollment beyond the minimum required to earn the maximum reimbursable amount at a rate equal to the lesser of the daily/hourly contract rate or the actual program costs.

NOTE: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8261 and 8328, Education Code.

(a) If the absence is claimed by the contractor as an excused absence as defined within the definition of “Attendance” in Education Code section 8208, the attendance accounting records shall contain verification that includes:

(1) The name of the child;

(2) The date(s) of absence;

(3) the specific reason for the absence; and

(4) The signature of the parent or the contractor's authorized representative if verification is made by telephone.

(b) If an excused absence is based on the time spent with a parent or other relative as required by a court of law, the basic data file shall contain a copy of the Court Order.

(c) Contractors shall adopt reasonable policies delineating circumstances that would constitute an excused absence for “family emergency” and “in the best interest of the child.”

(d) Contractors shall not disenroll any family due to excessive absences, except in circumstances described in section 18066.5.

(e) Contractors shall inform parent of these policies.

(f) Except for children who are recipients of protective services or at risk of abuse or neglect, excused absences “in the best interest of the child” shall be limited to 10 days during the contract period.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8208, 8261 and 8263, Education Code.

The regulations contained in this Subchapter, except for those contained in Section 18075.1, shall apply to contractors using the regional market rate ceiling to develop reimbursement agreements with licensed and license-exempt providers of child care and development services to eligible families. Section 18075.1 applies to contractors developing reimbursement agreements with licensed providers only. For the purposes of this subchapter, the term “contractor” shall also apply to county welfare departments operating programs pursuant to Article 15.5, commencing with Section 8350, of Chapter 2 of Division 1 of the Education Code.

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

(a) All records shall be retained for a minimum period of five (5) years.

(b) Claims for reimbursement shall not be paid unless there are documents to support the claims. The contractor has the burden of supporting claims for reimbursement.

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

Contractors operating Resource and Referral programs shall submit reports to the Child Development Division which contain the following data at intervals specified in the annual child development contract:

(a) Number of requests for general child care information and child care referrals.

(b) Age categories of child care requests and referrals:

(1) Infants (birth to eighteen months);

(2) Toddlers (eighteen months to thirty-six months);

(3) Preschool (3 years to kindergarten enrollment); and

(4) School-age (kindergarten enrollment to age 14).

(c) Time categories of child care referrals:

(1) Full-time;

(2) Part-time;

(3) Before and after school;

(4) Occasional (drop-in, temporary, emergency care);

(5) Summer care only; and

(6) Special time categories (nights, weekends, rotating shifts, swing shift, graveyard shift, etc.).

(d) Reasons for requesting referrals:

(1) Employed or seeking employment;

(2) School or training;

(3) Respite care (emergency only);

(4) Parental relief (non-emergency);

(5) Child's developmental or special need;

(6) Child is ill and cannot attend school or usual child care arrangement; and

(7) Child Protective Service referral.

(e) Number of technical services provided:

(1) Written materials;

(2) Telephone consultations;

(3) Program visitations;

(4) Office consultations;

(5) Resource information library;

(6) Toy/equipment lending library;

(7) Published newsletters;

(8) Conducted workshops or conferences;

(9) Attended meetings with child care providers;

(10) Attended meetings with child care related service agencies;

(11) Coordinated workshops or conferences; and

(12) Media contacts.

(f) Referral procedures utilized:

(1) Telephone referrals service;

(2) Answering machine requests for referrals;

(3) Office hours for appointments or drop-in referrals; and

(4) Evening or weekend office hours for referrals.

(g) Types of child care providers in resource file:

(1) Centers;

(2) Family child care home (licensed); and

(3) In-home caregivers.

(h) Responses to referral requests:

(1) Method of response;

(2) Number of responses; and

(3) Languages used to respond.

NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8212, Education Code.

(a) Contractors shall submit to the California Department of Education (CDE) Office of External Audits an acceptable annual financial and compliance audit.

(b) All audits shall be performed by:

(1) A Certified Public Accountant who possesses a valid license to practice within the State of California;

(2) A Public Accountant licensed on or before December 31, 1970 and currently certified and licensed by the State of California; or

(3) A member of the CDE staff of auditors.

(c) Non-school district contractors shall submit the audit by the fifteenth day of the fifth month following the end of the contract period or earlier if specified by the CDE.

(d) The audits for school districts and county offices of education shall be submitted to the State Controller by November 15, or by December 31 if an extension has been approved by the applicable county superintendent of schools.

(e) If, for any reason, the contract is terminated during the contract period, the audit shall cover the period from the beginning of the contract through the date of termination.

(f) Public agencies may have their audits prepared by in-house auditors if the public contractor has internal audit staff that performs auditing functions and meets the tests of independence found in Standards for Audits of Governmental Organization, Programs, Activities, and Functions issued by the Comptroller General of the United States.

(g) Subcontracts which are required to have approval from the Child Development Division prior to their execution as specified in section 18028 of this Division shall be audited in accordance with the requirements stated in section 18032 of this Division.

(a) Contractors shall submit statistical, cost and program data as requested by the California Department of Education (CDE) in order for the CDE to prepare various legislatively mandated reports, to meet state and federal reporting requirements, and for the effective administration of child care and development programs.

(b) By September 30 of each year, the CDE shall issue a notice to all affected child development contractors of any data collection efforts planned for the current contract period.

(c) Contractors shall submit the data to the CDE by the date specified in the CDE's request for this information.

(d) Reports not received by the required due date shall be considered delinquent. Penalties for delinquent reporting are specified in section 18056 of this Division.

(e)(1) Contractors shall provide a copy of the Child Care Data Collection Privacy Notice and Consent Form CD 9600A (New 01/01/00) which is incorporated by reference herein, to any head of a family unit at the time of enrollment and shall obtain a signed copy of that form indicating the head of household's decision whether to authorize or not authorize release of his or her social security number for the purposes of data collection and program management as described in this section.

(2) Each signed Child Care Data Collection Privacy Notice and Consent Form CD 9600A (New 01/01/00), whether the head of a family unit authorized or did not authorize release of his or her social security number, shall be retained by the contractor pursuant to the requirements of sections 18081 and 18117 of these regulations.

NOTE: Authority cited: Sections 8261 and 8261.5, Education Code. Reference: Sections 8261.5 and 8280, Education Code; Section 1798.24, Civil Code; and Section 7 of the Privacy Act of 1974 (Title 5, United States Code, Section 552a, Note: Disclosure of Social Security Numbers).

(a) If an audit is not received on or before the required due date and an extension has not been granted, the audit shall be considered delinquent and all apportionments shall be withheld as specified in Section 18056 of this Division.

(b) Except for contractors on conditional status, the California Department of Education (CDE) Office of External Audits may grant a contractor a one-time only, thirty (30) calendar day extension of the audit due date provided the inability of the contractor to submit the audit by the due date was beyond the fault and control of the contractor.

(c) Contractors shall be liable for all CDE costs incurred in obtaining an independent audit if the contractor fails to produce or submit an acceptable audit.

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261 and 8448, Education Code.

(a) The California Department of Education Office of External Audits shall conduct a review of the audit to determine whether the audit is acceptable and to determine the contractor's net reimbursable program costs. The Office of External Audits' determination of earnings shall be the final accounting of any amount payable to or receivable from the contractor pursuant to the contract.

(b) The contractor may appeal the Office of External Audits' findings according to the procedures specified in section 18301 of this Division if the amount of the demand for remittance meets or exceeds the threshold specified in Education Code section 8402(c).

NOTE: Authority cited: Section 8261, Education Code. Reference: Sections 8261, 8402 and 8448, Education Code.

(a) This section applies only to reimbursement to licensed providers, except this section shall not apply to reimbursement provided pursuant to the hourly rate defined in Section 18075(a).

(b) When a licensed provider is meeting the certified need for child care that includes hours during the period from 6:00 p.m. to 6:00 a.m. on any day of the week or from 6 a.m. Saturday to 6:00 a.m. Monday, the contractor shall multiply the regional market rate ceiling for the applicable rate category by the appropriate adjustment factor as follows:

(1) By 1.25 when 50 percent or more of the certified need for child care occurs during this period.

(2) By 1.125 when at least ten percent, but less than 50 percent of the certified need for child care occurs during this period.

(c) Reimbursement to the provider shall be the lesser of the amount the provider charges unsubsidized families for the same hours of child care, or the maximum subsidy amount as determined pursuant to subsection

(b) above.

NOTE: Authority cited: Sections 8265 and 8269, Education Code. Reference: Sections 8220, 8222 and 8357, Education Code.

(a) “Certified need for child care” means the number of days and hours of child care and development services approved and documented by the contractor as sufficient to meet the family's need for child care.

(b) “Maximum subsidy amount” means the regional market rate ceiling plus any applicable adjustments pursuant to Sections 18075.1 or 18075.2.

(c) “Regional market rate ceilings” means the maximum amount calculated by the Department that providers in different regions of the state may be reimbursed for the same type of child care for the same age child in accordance with statutory ceilings currently in effect.

(d) “Subsidized families” means eligible families who are receiving child care and development services and on whose behalf the Department or the California Department of Social Services is providing a reimbursement, in whole or in part.

(e) “Unsubsidized” means children or families other than those defined in subdivision (d).

NOTE: Authority cited: Sections 8261, 8263 and 8269, Education Code. Reference: Sections 8263, 8269 and 8461, Education Code.

(a) When child care and development services are provided to a child with exceptional needs, the contractor shall multiply the lesser of the regional market rate ceiling or the rate determined pursuant to Section 18074.3 or 18074.4, whichever is lower, by only one of the following:

(1) By 1.2, when the child has exceptional needs as defined in Education Code Section 8208(l).

(2) By 1.5, when the child is severely disabled as defined in Education Code Section 8208(x).

(b) Contractors shall apply this adjustment only when there is documentation that additional services and/or accommodations for that particular child are being provided, and such services and/or accommodations result in an on-going financial impact on the provider.

NOTE: Authority cited: Sections 8222, 8265, 8265.5 and 8269, Education Code. Reference: Sections 8208(l) and 8208(x), Education Code.

(a) The contractor shall reimburse fees charged by providers such as registration, materials, and insurance, either in a single payment or prorated over a 12-month period, as long as:

(1) The provider documents that the contractual terms used for services to unsubsidized families require payment for such fees; and

(2) The fees or prorated portion thereof, plus the rate established for the provider pursuant to this subchapter, do not exceed the maximum subsidy amount.

NOTE: Authority cited: Sections 8265 and 8269, Education Code. Reference: Sections 8222, 8266.5 and 8357, Education Code.

Contractors shall use the age of the child, the certified need for child care, and the facility type to identify the applicable regional market rate ceiling.

(a) The applicable facility type shall be determined as follows:

(1) Child care center rate ceilings shall be used for those providers who:

(A) Operate licensed centers; or

(B) Are public or private schools operating extended day programs; or

(C) Operate centers on tribal or federal lands; or

(D) Operate recreation programs exempt from licensure pursuant to Health and Safety Code Section 1596.792 and that meet the requirements for participation in the alternative payment program, including:

1. Using sign-in/sign-out documents to record attendance pursuant to Section 18065;

2. Providing adult supervision for all children during all hours of operation; and

3. Ensuring that all employees who have contact with children have completed criminal history background examinations comparable to the criminal history background examinations required by Chapter 3.35 of Division 2 of the Health and Safety Code, commencing with Section 1596.60.

(2) Family child care home rate ceilings shall be used for those providers who:

(A) Operate licensed family child care homes; or

(B) Operate a child care business in a home setting on tribal or federal land.

(3) In-home/exempt rate ceilings shall be used for all other providers. If no ceiling is provided for the applicable reimbursement rate category pursuant to Section 18075, the contractor shall determine a ceiling by multiplying the regional market rate hourly ceiling by the hours of certified need.

(b) For children enrolled in kindergarten who are less than six years of age, the applicable age category shall be determined as follows:

(1) Providers identified in (a)(1) above shall utilize:

(A) The 6+ age category when the child is considered school-age for licensing purposes.

(B) The 2-5 age category when the child is considered preschool age for licensing purposes.

(2) Providers identified in (a)(2) and (a)(3) above shall utilize:

(A) The 6+ age category when the child is six years of age or older.

(B) The 2-5 age category when the child is less than six years of age.

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

Contractors shall reimburse providers in accordance with the following rate categories.

(a) Hourly, which shall only be used for the following:

(1) A child's certified need for child care of less than 30 hours per week and less than six hours on any day; or

(2) An unscheduled but documented need of less than six hours per occurrence, such as the parent's need to work overtime, that exceeds the certified need for child care; or

(3) That portion of the certified need for child care that exceeds 52.5 hours per week and is not included in the provider's full-time weekly or full-time monthly rate. This provision applies only if the family utilizes no more than one provider to meet the child's entire need for child care and development services. Additional payment made under the hourly rate for this purpose cannot exceed the provider's full-time weekly or full-time monthly rate.

(b) Daily, which shall only be used for the following:

(1) A certified need for child care of six hours or more per day; or

(2) An unscheduled but documented need of six hours or more per occurrence, such as the parent's need to work on a regularly scheduled day off, that exceeds the certified need for child care.

(c) Part-time weekly, which shall only be used when a certified need for child care less than 30 hours per week.

(d) Full-time weekly, which shall only be used when a certified need for child care is 30 hours or more per week.

(e) Part-time monthly, which shall only be used for the following:

(1) A certified need for child care of less than 30 hours per week and that need occurs in every week of the month; or

(2) A certified need for child care averages less than 30 hours per week when calculated by dividing the total number of hours of need in the month by 4.33, and that need occurs in every week of the month.

(f) Full-time monthly, which shall only be used for the following:

(1) A certified need for child care of 30 hours or more per week and that need occurs in every week of the month; or

(2) A certified need for child care averages 30 hours or more per week when calculated by dividing the total number of hours of need in the month by 4.33, and that need occurs in every week of the month.

NOTE: Authority cited: Sections 8265 and 8269, Education Code. Reference: Sections 8220, 8222 and 8357, Education Code.

(a) For purposes of this section, “provider” includes an individual, family child care home, or center-based entity that provides subsidized early learning and care services directly to children.

(b) When the family has not been in communication with the provider for seven consecutive calendar days and has not notified the provider of the reason the family is not using services, the provider, if not the contractor, shall promptly notify the contractor.

(c) Using the contact information on file, the contractor shall attempt to contact the parent through a variety of communication methods. At least one communication attempt shall be in writing, which may be through electronic methods. The contractor shall keep documentation of all communication attempts, including a copy of all written communication, in the family data file. The contractor shall inform the parent in these communications that failure to communicate with the contractor or provider may result in termination of early learning and care services.

(d) The contractor shall issue a notice of action to disenroll the family on the basis of abandonment of care when there has been no communication with the provider or the contractor for a total of 30 consecutive calendar days.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

(a) Except for reimbursement pursuant to Section 18076.2(c), contractors shall reimburse only one provider of child care services per child when the hours of operation of the child care provider selected by the parent can accommodate the certified need for child care. Contractors may reimburse more than one provider per child when the hours of operation of the first provider cannot accommodate the certified need for child care.

(b) Notwithstanding subsection (a), when a family's first provider is not a licensed center and the parent also chooses a licensed center for the specific purpose of providing the child with large group school readiness experiences, the contractor may also reimburse the services provided by the licensed center provider.

(c) Contractors who pay multiple providers pursuant to this section shall not pay more than one provider for the same portion of a child's certified need for child care.

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

(a) Single Rate Category. Contractors shall only reimburse providers using a single rate category as defined in Section 18075.

(b) Notwithstanding subsection (a), contractors may provide reimbursement to a provider using both a daily and an hourly rate when:

(1) No single rate established by the provider corresponds to the family's need for care; and

(2) The provider has established a rate in both daily and hourly rate categories pursuant to Section 18074.3; and

(3) Using both rates is consistent with the rates the provider charges unsubsidized families needing similar hours of care.

(c) Notwithstanding subsection (a), when Sections 18075(a)(2), 18075(a)(3), or 18075(b)(2) are applicable, contractors may reimburse providers for those categories in addition to the applicable single category.

(d) Contractors shall not be bound by the regional market rate ceilings when there are, in the region, no more than two child care providers of the type needed by the subsidized family. For the purposes of this subsection, types of providers are licensed child care centers, licensed family child care homes, and exempt providers.

NOTE: Authority cited: Sections 8265 and 8269, Education Code. Reference: Sections 8222, 8266.5 and 8357, Education Code.

(a) This section does not apply to reimbursement for services provided pursuant to Sections 18075(a)(2), (a)(3), and (b)(2) of this subchapter.

(b) Reimbursable hours for the child's regular provider shall include:

(1) Time that a child's absence is deemed excused pursuant to Section 18066 and the time the child is absent when the contractual terms used by the provider for services to unsubsidized families require payment for such absences. Reimbursement for an excused absence based on the child's illness shall not occur in lieu of providing accommodations for the child pursuant to the applicable provisions of the Americans with Disabilities Act.

(2) Time that the provider has a paid day of non-operation and can provide documentation that the contractual terms used by the provider for services to unsubsidized families require payment for such day(s) of non-operation. The number of reimbursable paid day(s) of non-operation shall be limited to a maximum of ten days per fiscal year per provider.

(c) Reimbursable hours for an eligible alternate provider shall include:

(1) Time that services are provided when the regular provider has a paid day of non-operation, and the parent has to obtain an alternate provider to meet the certified need for child care. Payment to an alternate provider when the regular provider has a paid day of non-operation shall be limited to ten days per child per fiscal year.

(2) Time that child care services are provided by an eligible alternate provider when the child is ill and the parent has to obtain care from an eligible alternate provider. Payment to an alternate provider when the child is ill shall be limited to a maximum of ten days per child per fiscal year. Contractors may reimburse an alternate provider in excess of ten days per year based on the illness of the child if the parent provides a physician verification.

(d) Reimbursable hours do not include:

(1) The scheduled instructional minutes of a public educational program available to a school-age child, or a private school in which the child is enrolled and attending.

(2) Time when the child is receiving any other child care and development services.

(3) Days on which the provider is not open to provide services, except as specified in subsection (b)(2). A contractor shall reimburse an alternate provider when the regular provider is not open to provide services and the subsidized family must obtain an alternate provider during the certified need for child care.

NOTE: Authority cited: Sections 8265 and 8269, Education Code. Reference: Section 8208(e), 8263, 8266.5 and 8357, Education Code.

(a) Contractors shall establish and maintain a family data file for each family receiving early learning and care services.

(b) The family data file shall contain a completed and signed application for services and the following records, as applicable, to determine eligibility and need in accordance with Education Code section 8263(a)(1)(A) and (a)(1)(B):

(1) Records demonstrating eligibility based on the following:

(A) Current CalWORKs cash aid recipient

(B) Income eligibility, which shall include an income calculation worksheet;

(C) Family experiencing homelessness;

(D) The child is receiving child protective services;

(E) The child is identified as being abused, neglected or exploited or at risk thereof;

(2) Records demonstrating a need for services based on the following:

(A) The child is receiving child protective services;

(B) The child is identified as being abused, neglected or exploited or at risk thereof;

(C) Family experiencing homelessness;

(D) The parent is employed;

(E) The parent is seeking employment;

(F) The parent is enrolled in vocational training;

(G) The parent is enrolled in educational programs;

(H) The parent is incapacitated; or

(I) The parent is seeking permanent housing for family stability.

(c) The family data file shall also include the following:

(1) Documentation of a child's exceptional needs, if applicable;

(2) Applicable Notice(s) of Action as required in sections 18094, 18095, 18119, and 18120.

(3) For all center-based contractors, including those that provide services through a Family Child Care Home Education Network, the family data file shall contain all child health and current emergency information required by California Code of Regulations, title 22, Social Security, division 12, and Community Care Facilities Licensing Regulations.

(4) For all Alternative Payment Programs inclusive of CalWORKs Stage 2 and 3 Child Care Programs, the family data file shall contain the child's current emergency information required by California Code of Regulations, title 22, Social Security, division 12, and Community Care Facilities Licensing Regulations. Immunization records are not required to be kept on file unless the child is receiving care from a license-exempt provider, either in the child's own home or at the home of a relative of the child, and there are other unrelated children being cared for in the same setting.

(5) When the family is certified as income eligible, documentation of the notification to the parent of their requirement to report when the family's income exceeds the income threshold as described in section 18082.2.

NOTE: Authority cited: Sections 8261, 8261.5, 8263 and 8269, Education Code. Reference: Sections 8261, 8261.5, 8263 and 8269, Education Code; Sections 16500.5 and 16506, Welfare and Institutions Code; and 45 Code of Federal Regulations Section 98.41.

Unless otherwise provided in this Division, the regulations in this chapter apply to all contracting agencies authorized to establish, maintain, or operate services pursuant to the Child Care and Development Services Act, Chapter 2, Part 6 of Title 1 of the California Education Code (commencing with Section 8200).

NOTE: Authority cited: Section 8261 and 8263, Education Code. Reference: Sections 8261 and 8265, Education Code.

(a) Families shall be recertified for services by the contractor no later than 50 calendar days following the last day of the 12-month certification period, which starts with the day the agency's authorized representative signed the last application for services.

(b) In order to recertify families, the contractor's authorized representative shall:

(1) Notify the parent in writing in the final 30 days of the 12-month certification period, which starts with the day the contractor's authorized representative signed the last application for services, of:

(A) The requirement that the families be recertified in order to receive ongoing services;

(B) The date that the recertification must be completed by;

(C) The recertification appointment date, which can be no earlier than one day following the last day of the 12-month certification period;

(D) Information on the recertification process;

(E) Required information/documentation needed for the recertification appointment; and

(F) A telephone contact number and an optional email address in the event the parent may have any questions regarding the recertification process.

(2) Recertify or deny each family's/child's eligibility and need for early learning and care services after reviewing the completed application and documentation contained in the family data file, as provided for in chapter 19, subchapter 3, (commencing with section 18077); and

(3) Issue a Notice of Action pursuant to section 18095 to recertify eligibility for services or disenroll the family.

(c) Once recertified as eligible to receive services, except as otherwise provided in law or regulation, the contractor shall consider the family to meet all eligibility and/or need requirements for 12 months, at which point the family's eligibility and/or need must be recertified as set forth in this section.

(d) When a family is recertified as income eligible, the contractor shall at the same time provide notice to the family of the requirement to report if their income exceeds the income threshold, as provided in section 18082.2.

(e) Except as otherwise provided for in law or regulation, disenrollment cannot occur prior to the end of the 12-month certification period, even if disqualifying information is discovered during the preliminary collection of documentation for recertification, with the following exceptions:

(1) When the recalculation of income, pursuant to section 18082.2, based on the provided documentation indicates that the family's adjusted monthly income, adjusted for family size, exceeds the income threshold set forth in Education Code section 8263.1 and the family does not meet the requirements for another eligibility basis pursuant to section 18083; or

(2) When the parent changes residency outside of California, as reported by the parent; or

(3) When there is substantiated evidence of fraud that invalidates the initial certification or recertification; or

(4) When the family has abandoned care pursuant to section 18066.5.

(f) Families disenrolled prior to the last day of the 12-month initial certification or recertification period shall be issued a Notice of Action for disenrollment pursuant to section 18095.

(g) The contractor shall make every effort to make the recertification process convenient for families by providing early morning, evening, weekend appointments, or appointments at alternative locations as needed. The contractor may use technology to complete the recertification process if there is no reasonable way for the family to complete the process in person.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261, 8263 and 8263.1, Education Code; and 45 Code of Federal Regulations Section 98.21.

For the purposes of this chapter, the following definitions shall apply:

(a) “Adjusted monthly income” means the total countable income as defined below, minus verified child support payments paid by the parent whose child is receiving child development services, excluding the non-countable income listed below:

(1) Earnings of a child under age 18 years;

(2) Loans;

(3) Grants or scholarships to students for educational purposes;

(4) Federal Supplemental Assistance Program (CalFRESH/SNAP) or Women, Infants and Children (WIC) benefits or other food assistance;

(5) Earned Income Tax Credit or tax refund;

(6) GI Bill entitlements, hardship duty pay, hazardous duty pay, hostile fire pay, or imminent danger pay;

(7) Adoption assistance payments received pursuant to Welfare and Institutions Code section 16115 et seq;

(8) Non-cash assistance or gifts;

(9) All income of any individual counted in the family size who is collecting federal Supplemental Security Income (SSI) or State Supplemental Program (SSP) benefits;

(10) Insurance or court settlements including pain and suffering and excluding lost wages and punitive damages;

(11) Reimbursements for work-required expenses such as uniforms, mileage, or per diem expenses for food and lodging;

(12) Business expenses for self-employed family members;

(13) When there is no cash value to the employee, the portion of medical and/or dental insurance documented as paid by the employer and included in gross pay;

(14) Disaster relief grants or payments, except any portion for rental assistance or unemployment; and

(15) AmeriCorps Volunteers In Service to America (VISTA) and Federal Emergency Management Agency (FEMA) stipends, room and board, and grants.

(b) “Certified Schedule” means the number of hours per day and/or week that a family is approved to receive subsidized early learning and care services. This is also referred to sometimes as a “child care schedule.”

(c) “Child protective services” means children receiving protective services through the local county welfare department as well as children identified by a legal, medical, social service agency or emergency shelter as abused, neglected or exploited or at risk of abuse, neglect or exploitation.

(d) “Declaration” means a written statement signed by a parent under penalty of perjury attesting that the contents of the statement are true and correct to the best of that parent's knowledge.

(e) “Displace families” means the disenrollment of families in order to reduce service levels due to insufficient funding or inability of a contractor to operate one or more sites because of reasons stated in Education Code section 8271.

(f) “Early learning and care program” is defined as “Child Care and Development Program” as set forth in Education Code section 8208(i).

(g) “Early learning and care services” is defined as “Child Care and Development Services” as set forth in Education Code section 8208(j).

(h) “Educational programs” for purposes of determining need for child care and development services means:

(1) Classes or courses for English language learner (ELL) or English as a Second Language (ESL); or

(2) Classes or courses to attain a high school diploma, a General Education Development (GED), or a High School Equivalency (HSE) certificate, as specified in Education Code section 8263(a)(1)(B).(i) “Family experiencing homelessness” is defined as set forth in section 11434(a)(2) of title 42 of the United States Code, known as the McKinney-Vento Homeless Assistance Act.

(j) “Family” means the parents and the children for whom the parents are responsible, who comprise the household in which the child receiving services is living. For purposes of income eligibility and family fee determination, when a child and that child's siblings are living in a family that does not include their biological or adoptive parent, “family” shall be considered the child and related siblings.

(k) “Fee schedule” means the “Family Fee Schedule,” issued by the State Superintendent of Public Instruction (SSPI) pursuant to Education Code section 8273.

(l) “Immediate need” means a situation in which both subsections (1) and (2) apply:

(1) An eligible parent has a need for child care services pursuant to Education Code section 8263(a)(1)(B); and

(2) The contractor determines that no child care is reasonably available from a licensed, TrustLine registered or TrustLine-exempt provider that meets the parent's need for care.

(m) “Income eligibility” for the purpose of determining income eligibility for early learning and care services is defined as set forth in Education Code section 8263.1(a) and (b), as applicable.

(n) “Income fluctuation” means income that varies due to:

(1) Migrant, agricultural, or seasonal work;

(2) Inconsistent and/or unstable employment or self-employment resulting in an inconsistent pattern of income; or

(3) Intermittent, occasional, sporadic, or infrequent earnings or income, including but not limited to bonuses, commissions, lottery winnings, inheritance, back child support payment, overtime, or net proceeds from the sale of real property or stock.

(o) “Initial certification” means the formal processes the contractor goes through to collect information and documentation to determine that the family and/or child meets the criteria for receipt of subsidized child development services as specified in Education Code sections 8263(a)(1)(A) and 8263(a)(1)(B), respectively. The dated signature of the contractor's authorized representative on an application for services certifies that the criteria have been met, and begins the period of eligibility.

(p) “Legally qualified professional” means a person licensed under applicable laws and regulations of the State of California to perform legal, medical, health or social services for the general public.

(q) “Parent” means a biological parent, adoptive parent, stepparent, foster parent, caretaker relative, legal guardian, domestic partner of the parent as defined in Family Code section 297, or any other adult living with a child who has responsibility for the care and welfare of the child.

(r) “Parental Incapacity” means the temporary or permanent inability of the child's parent(s) to provide care and supervision of the child(ren) for any part of the day due to a physical and/or mental health condition.

(s) “Provisional child care provider” means an individual, exempt from licensure pursuant to Health and Safety Code sections 1596.792(d) or (f), who provides child care for a child or children of an eligible parent for a period of up to 30 days when there is an immediate need. The provisional child care provider shall have completed a TrustLine application and submitted fingerprints, in accordance with Health and Safety Code sections 1596.603 and 1596.605.

(t) “Recertification” means the formal processes the contractor goes through to collect information and documentation to determine that the family and/or child continues to meet the criteria for receipt of subsidized child development services as specified in Education Code sections 8263(a)(1)(A) and 8263(a)(1)(B), respectively. The dated signature of the contractor's authorized representative on an application for services certifies that the criteria have been met, and begins the period of eligibility.

(u) “Recipients of service” means families and/or children enrolled in an early learning and care program subsidized by the California Department of Education (CDE).

(v) “Self-Certification of Income” means a declaration signed by the parent under penalty of perjury identifying:

(1) To the extent known, the employer's name, address, start date of work, the rate and frequency of pay, the total amount of income received for the preceding month(s), the type of work performed, and the hours and days worked; or

(2) That the parent does not have income from employment and any source of income used to support the family including non-wage income.

(w) “Total countable income” means all income of the individuals counted in the family size that includes, but is not limited to, the following:

(1) Gross wages or salary, commissions, overtime, tips, bonuses, gambling or lottery winnings;

(2) Wages for migrant, agricultural, or seasonal work;

(3) CalWORKs cash aid;

(4) Gross income from self-employment less business expenses with the exception of wage draws;

(5) Disability or unemployment compensation;

(6) Workers compensation;

(7) Spousal support, child support received from the former spouse or absent parent, or financial assistance for housing costs or car payments paid as part of or in addition to spousal or child support;

(8) Survivor and retirement benefits;

(9) Dividends, interest on bonds, income from estates or trusts, net rental income or royalties;

(10) Rent for room within the family's residence;

(11) Foster care grants, payments or clothing allowance for children placed through child welfare services;

(12) Financial assistance received for the care of a child living with an adult who is not the child's biological or adoptive parent;

(13) Veterans pensions;

(14) Pensions or annuities;

(15) Inheritance;

(16) Allowances for housing or automobiles provided as part of compensation;

(17) Insurance or court settlements for lost wages or punitive damages;

(18) Net proceeds from the sale of real property, stocks, or inherited property; or

(19) Other enterprise for gain.

(x) “Variable schedule,” as provided in Education Code section 8221.5, means a schedule in which the total number of hours worked each week is inconsistent and/or unstable from week to week.

(y) “Vocational training” means an educational or job training/apprenticeship/internship program courses and/or classes leading to a recognized trade, paraprofession or profession.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8202, 8203, 8208, 8221.5, 8261, 8263, 8263.1 and 8273, Education Code.

(a) A family may, at any time, voluntarily request to reduce a family fee or increase their certified schedule, and shall provide applicable supporting documentation for the requested change.

(b) When a family voluntarily requests to reduce their family fee, the contractor shall:

(1) Use the documentation provided by the parent to reduce the family fee, if applicable, pursuant to sections 18083.1, 18084 and 18084.1;

(2) Within 10 business days after receipt of applicable documentation, issue a Notice of Action pursuant to section 18095;

(3) Only use any information received to reduce the family fee, if applicable. No other changes to the certified schedule shall be made unless requested by the family pursuant to subsection (e) below.

(c) Notwithstanding any other law or regulation, the effective date of any family fee reduction shall be the first day of the subsequent month.

(d) When a family voluntarily requests an increase to their certified schedule, the contractor shall:

(1) Use the documentation provided by the parent to increase the certified schedule;

(2) Within 10 business days after receipt of applicable documentation, issue a Notice of Action pursuant to section 18095;

(3) Notwithstanding any other law or regulation, make the effective date of the increase in certified schedule immediate. For contracted center-based programs, including those that provide services through a Family Child Care Home Education Network, this is based on hours of operation and space availability, as applicable; and

(4) Only use any information received to increase the certified schedule. No other changes to the certified schedule shall be made.

(e) When a family voluntarily requests a reduction to their certified schedule, the parent shall:

(1) Submit a written request that includes:

(A) Days and hours per day requested; and

(B) Date of the proposed reduction of their certified schedule

(2) Acknowledge in writing that they understand that they may retain their current certified schedule and that a decrease to their certified schedule would replace their current schedule, and if they choose to increase their certified schedule at a later time, they will be required to provide additional documentation.

(f) Upon receipt of the parent's written request in subsection (e), the contractor shall:

(1) Notify the family in writing of the parent's right to continue to bring the enrolled child pursuant to the original certified schedule and that a decrease to their certified schedule would replace their current schedule, and if the parent chooses to increase their certified schedule at a later time, they will be required to provide additional documentation; and

(2) Use the documentation provided by the parent to reduce the certified schedule, as applicable;

(3) Issue a Notice of Action pursuant to section 18095;

(4) Notify the family in writing that the family may voluntarily request to reduce their family fee due to a reduction of their certified schedule by following the process outlined in subsections (a) and (b) above; and

(5) Only use any information received to reduce their certified schedule. No other changes to the certified schedule shall be made.

NOTE: Authority cited: Sections 8261, 8263 and 8269, Education Code. Reference: Sections 8261, 8263 and 8263.1, Education Code; and 45 Code of Federal Regulations Section 98.21.

(a) The contractor shall designate the staff person(s) authorized to certify family/child eligibility.

(1) At initial certification, the authorized representative of the contractor shall certify or deny each family's/child's eligibility and need for early learning and care services after reviewing the completed application and documentation contained in the family data file, as applicable, as provided in chapter 19, subchapter 3, (commencing with section 18077); and

(2) Once certified as eligible to receive services, except as otherwise provided in law or regulation, the contractor shall consider the family to meet all eligibility and/or need requirements for not less than 12 months, at which point the family's eligibility and/or need shall be recertified as provided in section 18082.1.

(b) When a family is certified as income eligible, the contractor shall, at the same time, notify the family in writing of the requirement to report if their income exceeds ongoing income eligibility limits, as provided in section 18082.2.

(c) Except as otherwise provided for in law or regulation, disenrollment cannot occur prior to the end of the 12-month certification period, with the following exceptions:

(1) When the recalculation of income, pursuant to section 18082.2, based on the provided documentation indicates that the family's adjusted monthly income exceeds the income eligibility threshold set forth in Education Code section 8263.1 and the family does not meet the requirements for another eligibility basis pursuant to section 18083;

(2) When the parent changes residency outside of California as reported by the parent; or

(3) When there is substantiated evidence of fraud that invalidates the initial certification and the family is not otherwise eligible; or

(4) When the family has abandoned care pursuant to section 18066.5.

(d) Families disenrolled prior to the last day of the 12-month certification period shall be issued a Notice of Action for disenrollment pursuant to section 18095.

NOTE: Authority cited: Sections 8261, 8263 and 8269, Education Code. Reference: Sections 8261, 8263, 8263.1 and 8269, Education Code.

(a) The parent shall obtain and provide documentation of the family's total countable income for the purposes of determining whether a family is income eligible and/or assessing the appropriate family fee, as applicable. The parent(s) shall provide documentation of total countable income for all the individuals counted in the family size as follows:

(1) If the parent is employed, the parent shall provide:

(A) A release authorizing the contractor to contact the employer(s) that includes, to the extent known, the employer's name, address, telephone number, and usual business hours; and

(B) Payroll check stubs, or an independently drafted letter from the employer, or other record of wages issued by the employer from either month of the two-month window immediately preceding the initial certification, or the recertification of eligibility for services.

(2) When the employer refuses or fails to provide requested documentation or when the parent states a request for documentation would adversely affect the parent's employment, the parent shall obtain and provide other means of verification that may include a list of clients and amounts paid, the most recently signed and completed tax returns, quarterly estimated tax statements, or other records of income to support the reported income, along with a self-certification of income.

(3) If the parent is self-employed, the parent shall obtain and provide a combination of documentation necessary to establish current income eligibility from either month of the two-month window immediately preceding the initial certification, or the recertification of eligibility for services. Documentation shall consist of a self-certification of income as defined in section 18078, and as many of the following types of documentation as reasonably necessary to determine income:

(A) An independently drafted letter from the source of the income; or

(B) A copy of the most recently signed and completed tax return with a statement of current estimated income for tax purposes; or

(C) Other business records, such as ledgers, receipts, or business logs.

(4) If the parent does not have income from employment, the parent shall provide a self-certification of income as defined in section 18078.

(5) The parent shall also provide documentation of all non-wage income, which includes, self-certification of any income for which no documentation is possible, and any verified child support payments as defined in section 18078(a) of this chapter.

(b) The contractor shall:

(1) Retain copies of the documentation of total countable income and adjusted monthly income, in the family data file.

(2) When the parent is employed, verify the parent's salary/wage; rate(s) of pay; hours and days of work; inconsistent and/or unstable hours and days of work; pay periods and frequency of pay; and the start date for the employee.

(3) When the parent is self-employed, make a record of independent verification regarding the cost for services provided by the parent that may be obtained by contacting clients, or confirming the information in the parent's advertisements or website. If the income cannot be independently verified, the contractor shall assess whether the reported income is reasonable or consistent with the community practice for this employment.

(4) Establish income eligibility and/or family fee by signing the application for services, certifying to the contractor's reasonable belief that the income documentation obtained and, if applicable, the self-certification of income, support the reported income, are reliable, and are consistent with all other family information and the contractor's knowledge, if applicable, of this type of employment or employer.

(c) If the family is receiving early learning and care services because the child(ren) is/are at risk of abuse, neglect, or exploitation or receiving child protective services, and the written referral pursuant to sections 18081 and 18092 specifies that it is necessary to exempt the family from paying a family fee, then the parent shall not be required to provide documentation of total countable income.

(d) Using the income calculation pursuant to this section and family size determination pursuant to section 18083.1, contractors shall, as applicable, assess a family fee.

NOTE: Authority cited: Sections 8261, 8263 and 8269, Education Code. Reference: Sections 8261, 8263, 8263.1, 8273 and 8273.1, Education Code.

The application for services shall contain the following information:

(a) The parent's(s') full name(s), mailing address(es), telephone number(s), and email address(es), if available;

(b) The names and birth dates of all children under the age of 18 years in the family, as defined in section 18078, whether or not they are served by the program;

(c) The maximum number of hours of care needed each day or week for each child;

(d) The basis of the family's eligibility as specified in Education Code section 8263(a)(1)(A), which may be either:

(1) The parent is receiving CalWORKs cash aid;

(2) The family is income eligible;

(3) The family is experiencing homelessness;

(4) The child is receiving child protective services; or

(5) The child is identified as being abused, neglected or exploited or at risk thereof.

(e) The reason(s) for needing services as specified in Education Code section 8263(a)(1)(B) which is (are):

(1) The child is receiving child protective services;

(2) The child is identified as being abused, neglected or exploited or at risk thereof;

(3) The family is experiencing homelessness;

(4) The parent is employed;

(5) The parent is seeking employment;

(6) The parent is enrolled in vocational training;

(7) The parent is enrolled in educational programs;

(8) The parent is incapacitated; or

(9) The parent is seeking permanent housing for family stability.

(f) Employment, vocational training, or educational program information for the parent(s) shall include:

(1) Name and phone number of the employer or contact person;

(2) Name and address of the business, vocational training, or educational program; and

(3) Days and hours of employment, enrollment in vocational training, or an educational program, as applicable.

(g) Family size and family's adjusted monthly income, if applicable.

(h) The parent's signature signed under penalty of perjury and date of the signature.

(i) The signature of the contractor's authorized representative certifying that the family and/or child meets the criteria for receipt of services.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

(a) The parent shall obtain and provide supporting documentation regarding the number of children and parents in the family as listed on the application for services.

(1) The number of children shall be documented by providing any one of the following documents, as applicable:

(A) Birth certificates or other live birth records;

(B) Court orders regarding child custody;

(C) Adoption documents;

(D) Records of Foster Care placements;

(E) School or medical records;

(F) County welfare department records; or

(G) Other reliable documentation indicating the relationship of the child to the parent.

(2) If only one parent has signed the application and the information provided pursuant to subsection (a)(1) indicates the child(ren) in the family has another parent whose name does not appear on the application, then the parent who has signed the application shall self-certify the presence or absence of that parent under penalty of perjury and shall not be required to submit additional information documenting the presence or absence of the second parent.

(b) For income eligibility and family fee purposes, when a child and that child's siblings are living in a family that does not include their biological or adoptive parent, such as, formal or informal custodial family arrangements or foster care:

(1) Only the child and related siblings shall be counted to determine family size;

(2) The adjusted monthly income of the child and any related siblings, which includes payments specifically for the care and well-being of the child(ren) that are made payable to and received by the adult who lives with and is responsible for the care and welfare of the child(ren), is counted to determine income eligibility; and

(3) The adult(s) who live(s) with and has responsibility for the care and welfare of the child(ren), must meet a need criterion as specified in Education Code section 8263(a)(1)(B).

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code; and 45 Code of Federal Regulations Section 98.21.

(a) To calculate a family's adjusted monthly income for purposes of determining income eligibility and/or calculating a family fee, the calculation shall be done by the use of an income calculation worksheet, and shall be calculated as provided for in subsections (b) and (c).

(b) When a family's income is regular and steady, use the income calculation worksheet that specifies:

(1) The frequency of the pay periods;

(2) The gross amount of the payroll check stubs; and

(3) All other sources of countable income to determine the adjusted monthly income pursuant to section 18078, as either:

(A) Weekly for 52 pay periods;

(B) Every two weeks for 26 pay periods;

(C) Twice monthly for 24 pay periods; or

(D) Monthly for 12 pay periods.

(c) When a family's income fluctuates because of migrant, agricultural, or seasonal work; inconsistent and/or unstable employment or self-employment; or intermittent income, as defined in section 18078, the adjusted monthly income shall be determined by averaging the total countable income from the preceding 12 months.

NOTE: Authority cited: Sections 8261, 8263 and 8263.1, Education Code. Reference: Sections 8261 and 8263, Education Code; and 45 Code of Federal Regulations Section 98.21.

If the basis of eligibility as specified in Education Code section 8263(a)(1) is a current aid recipient, the parent shall provide documentation of public cash assistance, unless the contractor has and elects to use other means of obtaining verification.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

(a) Except as otherwise provided for in law, families who are eligible for subsidized early learning and care services shall document that each parent in the family, as defined in section 18078, meets at least one of the following need criterion, as specified in Education Code section 8263(a)(1)(B):

(1) The child(ren) is (are) a recipient(s) of child protective services, or identified as being abused, neglected, or exploited, or at risk thereof;

(2) The parent is employed;

(3) The parent is seeking employment;

(4) The family is experiencing homelessness;

(5) The family is seeking permanent housing for family stability;

(6) The parent is enrolled in vocational training;

(7) The parent is enrolled in an educational program;

(8) The parent is incapacitated.

(b) Subsidized early learning and care services shall only be available to the extent to which:

(1) The parent(s) meets a need criterion as specified in subsection (a) that precludes the provision of care and supervision of the family's child(ren) for any part of the day;

(2) There is no parent in the family available and capable of providing care for the family's child(ren) during the time care is requested; and

(3) Supervision of the family's child(ren) is(are) not otherwise being provided by:

(A) Scheduled time in a public educational program available to school-age child(ren);

(B) A private school in which the child(ren) is(are) enrolled and attending; or

(C) A time when a child(ren) is (are) receiving any other early learning and care services.

(c) At any time during the 12-month certification period, a parent may request an increase to the certified schedule based on provided documentation of need.

(d) At any time during the 12-month certification period, a parent may request to decrease the certified schedule. Requests for decrease in hours shall be provided in writing. In such a case, the contractor shall inform the family of the right to maintain the current certified schedule.

(e) A family may receive services based on more than one need criterion at any one time, provided that applicable documentation has been collected.

NOTE: Authority cited: Sections 8261, 8263 and 8265, Education Code. Reference: Sections 8206, 8235, 8237, 8261 and 8263, Education Code.

(a) If the basis of need as stated on the application for services is employment of the parent, the documentation of the parent's employment shall include the days and hours of employment. If the total number of hours worked each week is consistent, but the days and hours of employment vary, the documentation shall support the total number of hours worked each week.

(b) If the parent has an employer, the parent shall obtain and provide documentation of need based on employment that consists of one of the following:

(1) Pay stubs that indicate the days and hours of employment; or

(2) Pay stubs that indicate the total hours of employment per pay period, as long as the hours generally correlate with the parent's requested number of hours needed each week.

(3) When the pay stubs do not meet the criteria of either subsections (1) or (2) above, the contractor shall verify the days and hours, or the total number of hours, of employment each week by doing one of the following:

(A) Secure an independent written statement from the employer indicating the days and hours of employment using the release authorization pursuant to section 18084; or

(B) Telephone the employer to verify the days and hours of employment and maintain a record of the verified information.

(4) If the parent's employment is a variable schedule as defined in section 18078 and precludes the contractor from verifying a specific number of hours per week, the contractor shall use the provided documentation from either month of the two-month window immediately preceding the initial certification or recertification and identify the highest number of actual hours worked within any given week and use that as the basis for approving the certified schedule on the application for services.

(5) If at the time of initial certification or recertification the parent does not have a work history, the contractor shall establish the certified schedule based on the verified days and hours or, if a variable schedule, the highest number of total hours per week the employer expects the parent to work.

(6) If the employer refuses or is non-responsive in providing the requested information, the contractor shall record the attempts to contact the employer, and specify in the family data file the reasonableness of the days and hours of employment based on the description of the employment and community practice;

(7) If the parent asserts in a declaration signed under penalty of perjury that a request for employer documentation would adversely affect the parent's employment, the contractor shall review the declaration and determine whether the days and hours of employment based on the parent's description of the employment and community practice are reasonable and include the declaration and determination of reasonableness in the family data file; or

(8) When the employed parent does not have pay stubs or other record of wages from the employer and has provided a self-certification of income, as defined in section 18078, the contractor shall assess the reasonableness of the days and hours of employment, based on the description of the employment and the documentation provided pursuant to section 18084, and authorize only the time determined to be reasonable.

(c) If the parent is self-employed, the parent shall obtain and provide documentation of employment consisting of the following:

(1) A declaration of need under penalty of perjury that includes a description of the employment and an estimate of the days and hours worked per week; and

(2) As many of the following documents needed to support the days and hours of employment:

(A) Appointment logs, client receipts, job logs, mileage logs, a list of clients with contact information, or similar records; or

(B) As applicable, a copy of a business license, a workspace lease, or a workspace rental agreement.

(d) If additional services are requested for travel time and/or sleep time to support employment, the time authorized shall be calculated as follows:

(1) Travel time to and from the location at which services are provided and the place of employment, not to exceed half of the daily hours authorized for employment, to a maximum of four hours per day;

(2) Sleep time, if the parent is employed anytime between 10:00 p.m. and 6:00 a.m., not to exceed the number of hours authorized for employment and travel between those hours.

(3) Sleep time shall not be provided when:

(A) There is a parent in the family available and capable of providing care for the family's child(ren) during the time care is requested; or

(B) Supervision of the family's child(ren) is(are) otherwise being provided by:

(i) Scheduled time in a public educational program available to school-age child(ren);

(ii) A private school in which the child(ren) is(are) enrolled and attending; or

(iii) A time when a child(ren) is(are) receiving any other early learning and care services.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8206, 8261 and 8263, Education Code.

(a) If the basis of need as stated on the application for services is seeking employment, the following shall apply:

(1) Services as requested by the parent shall occur on no more than five days per week and for less than 30 hours per week.

(2) The parent's period of eligibility for early learning and care services shall be for not less than 12 months and the parent shall receive services for not less than 12 months before having eligibility and need recertified.

(b) Documentation of seeking employment shall include a written parental declaration signed under penalty of perjury stating that the parent is seeking employment. The declaration shall include the parent's general plan to secure, change, or increase employment and services shall occur as requested by the parent pursuant to subsection (a)(1) above.

NOTE: Authority cited: Sections 8261, 8263 and 8265, Education Code. Reference: Sections 8206, 8261 and 8263, Education Code.

(a) If the basis of need as stated on the application for services is vocational training as defined in section 18078, early learning and care services shall be limited in total, to whichever occurs first:

(1) Six years from the initiation of services based on need for vocational training; or

(2) Twenty-four semester units, or the equivalent, after the attainment of a Bachelor's Degree.

(b) The service limitations specified in subsection (a) shall not apply in the following instances:

(1) When a parent is receiving services from a program operating pursuant to Education Code section 66060;

(2) When a parent is attending vocational training and is participating in rehabilitation services through the California Department of Rehabilitation; or

(3) When a parent is attending retraining services available through the California Employment Development Department or its contractors due to a business closure or mass layoff.

(c) The parent shall provide documentation of the days and hours of vocational training, which shall include:

(1) The name of the training institution that is providing the vocational training;

(2) The parent's current class schedule that is either an electronic print-out from the training institution or, if unavailable, a document that includes all of the following:

(A) The classes in which the parent is currently enrolled;

(B) The days of the week and times of day of the classes; and

(C) The signature or stamp of the training institution's registrar.

(d) The contractor shall determine the days and hours needed per week based on the provided documentation. The contractor may request that the parent provide additional information from the training institution describing the classes.

(e) On-line or televised instructional classes that are unit bearing classes from an accredited training institution shall be counted as class time at one hour a week for each unit. The parent shall provide a copy of the syllabus or other class documentation, as applicable. The accrediting body of the training institution shall be among those recognized by the United States Department of Education.

(f) When a parent requests study time, travel time, or both, the contractor shall determine the amount of service time needed based on the documentation provided by the parent.

(1) Study time shall be determined by the following:

(A) When the vocational training, on-line, or televised instructional classes are based on academic units, study time is determined at two hours per week per academic unit in which the parent is enrolled. Additional time for studying may be approved by the contractor, on a case-by-case basis, if the parent provides a declaration signed under penalty of perjury as to why the additional time is needed for the specified course(s). Additional time, if approved, shall not exceed one hour per week per academic unit for the specified course(s) in which the parent is enrolled.

(B) When the vocational training is not based on academic units, the contractor shall determine the hours approved for study time but in no case may the study hours exceed the number of class hours per week.

(2) Travel time shall be determined based on the location where the early learning and care services are provided and the training location, of the vocational program, based on actual travel time needed, not to exceed a maximum of four hours per day.

(g) Pursuant to section 18082.3, a parent may voluntarily request changes at any time.

(h) At recertification, the continuation of services for vocational training is contingent upon the parent making adequate progress. To document adequate progress for the last enrolled quarter, semester, or training period, as applicable, the parent shall provide documentation from the college classes, technical school, or apprenticeship for which subsidized care is provided demonstrating the following:

(1) In a graded program, achievement of a minimum 2.0 grade point average for the last enrolled quarter, semester, or academic enrollment period; or

(2) In a non-graded program, passing the program's requirements in at least 50 percent of the classes or meeting the training institution's standard for making adequate progress.

(i) If at recertification the parent has made adequate progress based on the provided documentation, the certified schedule may be established pursuant to subsections (c) and (d).

(j) If at recertification the parent has not made adequate progress pursuant to subsection

(h), the parent shall be recertified for services for another 12 months. At the conclusion of this 12-month certification period, the parent shall have made adequate progress pursuant to subsection (h). If the parent has not made adequate progress pursuant to subsection (h), and cannot establish another basis of need for services, the family shall be:

(1) Disenrolled from services; and

(2) Once disenrolled, the parent shall be ineligible to be certified for services based on enrollment in vocational training for six months from the date of disenrollment.

NOTE: Authority cited: Sections 8261, 8263 and 8265, Education Code. Reference: Sections 8206, 8261 and 8263, Education Code.

(a) If the basis of need as stated on the application for services is parental incapacity, the following shall apply:

(1) The certified schedule for early learning and care services shall not exceed 50 hours per week.

(2) The parent's period of eligibility for early learning and care services shall be for no less than 12 months and the parent shall receive services for not less than 12 months before having eligibility and need recertified.

(b) Documentation of parental incapacity shall include a release signed by the incapacitated parent authorizing a legally qualified health professional to disclose information necessary to establish that the parent meets the definition of parental incapacity, pursuant to section 18078, and needs services.

(c) The documentation of incapacitation provided by the legally qualified health professional shall include:

(1) A statement that the parent is incapacitated and that the parent is incapable of providing care or supervision for the child for part of the day;

(2) The days and hours per week that services are recommended to accommodate the incapacitation, taking into account the age of the child and the child's care needs. This may include time for the parent's regularly scheduled medical or mental health appointments;

(3) The name, business address, telephone number, professional license number, and signature of the legally qualified health professional who is rendering the opinion of incapacitation; and

(4) If applicable, the name of the health organization with which the professional is associated.

(d) The contractor may contact the legally qualified health professional for verification, or clarification of the provided statement.

(e) The contractor shall determine the days and hours of the certified schedule based on the parent's requested days and hours and the recommendation of the health professional, consistent with the provisions of this article.

NOTE: Authority cited: Sections 8261, 8263 and 8265, Education Code. Reference: Sections 8261 and 8263, Education Code.

(a) If the basis of need as stated on the application for services is educational programs as defined in section 18078, early learning and care services shall be limited in total to six years from the initiation of services based on enrollment in educational programs.

(b) The parent shall obtain and provide to the contractor documentation of enrollment in an English Language Learner/English as a Second Language (ELL/ESL) program or a program to attain a high school diploma or General Education Degree/High School Equivalency (GED/HSE) certificate.

(c) The parent shall provide documentation of the days and hours of enrollment in an educational program, which shall include:

(1) The name of the institution that is providing the instruction;

(2) The parent's current class schedule that is either an electronic print-out from the educational program or, if unavailable, a document that includes all of the following:

(A) The classes in which the parent is currently enrolled;

(B) The days of the week and times of day of the classes; and

(C) A registration confirmation from the educational program.

(d) The contractor shall determine the days and hours needed per week based on the provided documentation.

(e) Online or televised instructional classes that are unit bearing classes from an accredited training institution shall be counted as class time at one hour a week for each unit. The parent shall provide a copy of the syllabus or other class documentation as applicable. The accrediting body of the training institution shall be among those recognized by the United States Department of Education.

(f) When the parent requests study time, travel time, or both, the contractor shall determine the amount of service time needed based on the documentation provided by the parent.

(1) Study time shall be determined based on the following:

(A) When the educational program, on-line, or televised instructional classes are based on academic units, study time is determined at two hours per week per academic unit in which the parent is enrolled. Additional time for studying may be approved by the contractor, on a case-by-case basis, if the parent provides a declaration signed under penalty of perjury as to why the additional time is needed for the specified course(s). Additional time, if approved, shall not exceed one hour per week per academic unit for the specified course(s) in which the parent is enrolled.

(B) When the educational program is not based on academic units, the contractor shall determine the hours approved for study time but in no case may the number of study hours exceed the number of class hours per week.

(2) Travel time shall be determined based on the location where the early learning and care services are provided and the location of the educational program, based on actual travel time needed, not to exceed a maximum of four hours per day.

(g) Pursuant to section 18082.3, a parent may voluntarily request changes at any time.

(h) At recertification, the continuation of services in an educational program is contingent upon the parent making adequate progress. To document adequate progress for the last enrolled quarter, semester, or training period, as applicable, the parent shall provide documentation from the educational program for which subsidized care is provided demonstrating the following:

(1) In a graded program, achievement of a minimum 2.0 grade point average for the last enrolled quarter, semester, or academic enrollment period; or

(2) In a non-graded program, passing the program's requirements in at least 50 percent of the classes or meeting the educational institution's standards for making adequate progress.

(i) If at recertification the parent has made adequate progress based on the provided documentation, the certified schedule may be established pursuant to subsections (b), (c), (d) and (e).

(j) If at recertification the parent has not made adequate progress pursuant to subsection

(h), the parent shall be recertified to receive services for another 12 months. At the conclusion of this 12-month certification period, the parent shall have made adequate progress pursuant to subsection (h) to be recertified for services based on enrollment in an educational program. If the parent has not made adequate progress pursuant to subsection (h), and cannot establish another basis of need for services, the family shall be:

(1) Disenrolled from services; and

(2) Once disenrolled, the parent shall be ineligible to be certified for services based on enrollment in educational programs for six months from the date of disenrollment.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

(a) If the basis of need as stated on the application for services is the parent seeking permanent housing for family stability, the following shall apply:

(1) Services, as requested by the parent, shall occur on no more than five days per week and for less than 30 hours per week.

(2) The parent's period of eligibility for early learning and care services shall be for no less than 12 months and the parent shall receive services for not less than 12 months before having eligibility and need recertified.

(b) Documentation of seeking permanent housing shall include a written parental declaration signed under penalty of perjury that the family is seeking permanent housing. The declaration shall include the parent's general search plan to secure a fixed, regular, and adequate residence. If the family is residing in a shelter, services shall also be provided while the parent attends appointments or activities necessary to comply with the shelter participation requirements within the certified schedule.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

The family data file shall contain documentation of the child's exceptional needs if the contractor is claiming adjustment factors pursuant to Education Code section 8265.5(b)(4) or (b)(5), the child with exceptional needs is 13 through 21 years of age, or the contractor is operating a program pursuant to Education Code section 8250(d). The documentation of exceptional needs shall include:

(a) A copy of the portion of the active individual family service plan (IFSP) or the individualized education program (IEP) that includes the information as specified in Education Code section 56026 and California Code of Regulations, title 5, sections 3030 and 3031; and

(b) A statement signed by a legally qualified professional that:

(1) The child requires the special attention of adults in a child care setting; and

(2) Includes the name, address, license number, and telephone number of the legally qualified professional who is rendering the opinion.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8208, 8250, 8261, 8263 and 56026, Education Code.

A family experiencing homelessness may establish both eligibility and need as follows:

(a) In order to meet the eligibility requirements for a family experiencing homelessness, the family must obtain and provide documentation, which includes either of the following:

(1) A written referral dated within three months prior to the application for services, from one of the following entities, which identifies the child as experiencing homelessness:

(A) A legal, medical, or social services agency;

(B) A local educational agency liaison for children and youth experiencing homelessness;

(C) A Head Start program; or

(D) An emergency or transitional shelter.

(2) A written parental declaration, signed under penalty of perjury, that the family is experiencing homelessness.

(b) The referral described in subsection (a)(1) above shall contain:

(1) The name of the identifying entity;

(2) Physical address;

(3) Telephone number; and

(4) Title and signature of the person identifying the family as experiencing homelessness.

(c) To meet the need requirements for receiving services on the basis that the family is experiencing homelessness, the parent shall comply with one of the following:

(1) If the basis of eligibility is established pursuant to subsection (a)(1) above, no additional documentation of need is required.

(2) If the basis of eligibility is established by parental declaration pursuant to subsection (a)(2) above, the parent shall provide documentation to establish a need in accordance with Education Code section 8263(a)(1)(B).

(d) If the basis of need is a family experiencing homelessness, services shall be as requested by the parent and shall occur on no more than five days per week and for less than 30 hours per week.

(e) The contractor shall permit the enrollment of children to begin immediately upon the parent signing the application for services when the basis for eligibility is family experiencing homelessness. The parent shall provide all required documentation, including immunization records, within 30 days from the date the application for services is signed.

(f) The contractor shall approve or deny services and issue a Notice of Action in accordance with subsection 18094.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

If eligibility and need as specified in Education Code Sections 8263(a)(1) and (a)(2) are based on child protective services, the basic data file shall contain a written referral, dated within the six (6) months immediately preceding the date of application for services, from a legal, medical, social service agency or emergency shelter. The written referral shall include either:

(a) A statement from the local county welfare department, child protective services unit certifying that the child is receiving child protective services and that child care and development services are a necessary component of the child protective services plan; or

(b) A statement by a legally qualified professional that the child is at risk of abuse or neglect and the child care and development services are needed to reduce or eliminate that risk; and

(c) The probable duration of the child protective service plan or the at risk situation; and

(d) The name, address, telephone number and signature of the legally qualified professional who is making the referral.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8261 and 8263, Education Code.

(a) The contractor's decision to approve or deny services shall be communicated to the applicant through a written statement referred to as a Notice of Action, Application for Services, in accordance with Section 18118 of this Division. The contractor shall maintain copies of the Notice of Action, Application for Services in the basic data file. The Notice of Action, Application for Services shall include:

(1) The applicant's name and address;

(2) The contractor's name and address;

(3) The name and telephone number of the contractor's authorized representative who made the decision;

(4) The date of the notice;

(5) The method of distribution of the notice.

(b) If services are approved, the notice shall contain:

(1) Basis of eligibility;

(2) Daily/hourly fee, if applicable;

(3) Duration of the eligibility;

(4) Names of children approved to receive services;

(5) Hours of service approved for each day;

(c) If the services are denied, the notice shall contain:

(1) The basis of denial; and

(2) Instructions for the parent(s) on how to request a hearing if they do not agree with the contractor's decision as stated in the Notice of Action, Application for Services in accordance with procedures specified in Sections 18120 and 18121 of this Division.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code.

(a) Contractors shall develop written admission policies and procedures which shall be made available to the public.

(b) The admission procedures established shall conform to requirements in Title 22 California Code of Regulations, Section 101319.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8203 and 8263, Education Code.

If upon recertification or update of the application, the contractor determines that the need or eligibility requirements are no longer being met, or the fee or amount of service needs to be modified, the contractor shall notify the family through a written Notice of Action, Recipient of Services in accordance with Section 18119 of this Division. The contractor shall maintain copies of all Notices of Action, Recipient of Services in the family's basic data file. The Notice of Action, Recipient of Services shall include:

(a) The type of action being taken;

(b) The effective date of the action;

(c) The name and address of the recipient;

(d) The name and address of the contractor;

(e) The name and telephone number of the contractor's authorized representative who is taking the action;

(f) The date the notice is mailed or given to the recipient;

(g) The method of distribution to the recipient;

(h) A description of the action;

(i) A statement of the reason(s) for the changes;

(j) A statement of the reason(s) for termination, if applicable; and

(k) Instructions for the parent(s) on how to request a hearing if they do not agree with the contractor's decisions as stated in the Notice of Action, Recipient of Services in accordance with procedures specified in Sections 18120 and 18121 of this Division. These instructions shall inform parents how to request a hearing from the contractor and, if necessary, from the Child Development Division as described in Sections 18120 and 18121 of this Division.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code.

Prior to enrolling a child in the Federal Based Migrant Program, the contractor shall certify that the child meets eligibility requirements of the Education Consolidation Improvement Act (E.C.I.A.), Chapter 1 Migrant funds. The certification documentation shall include:

(a) The child's full name, date of birth and birthplace;

(b) The parent(s) full name(s);

(c) The child's most recent address and date of departure;

(d) The child's current address and the date of arrival;

(e) Information about the employment of the parent(s) which identifies such employment as:

(1) seasonal or temporary and

(2) relating to fishing or agriculture;

(f) The purpose of the child's last move which qualifies the child for migrant services as defined in 34 Code of Federal Regulations, Section 201.3 (b);

(g) A statement signed by the parent(s) certifying that the child has moved with the family in order for the parent(s) to seek temporary or seasonal agriculturally related work;

(h) A statement signed by the contractor's authorized representative certifying that the child meets the eligibility criteria necessary to receive services funded by E.C.I.A., Chapter 1 Migrant funds; and

(i) Documentation that the parent has given consent for the child to participate in the program.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Sections 8233, 8261 and 8263, Education Code and 34 Code of Federal Regulations, Part 201.

(a) Within the first priority for services stated in Education Code section 8263(b)(1), children receiving protective services through the local county welfare department shall be enrolled before children identified as at risk of being neglected or abused.

(b) Except for situations where not all of the children in a family are certified based on child protective services, or the child's special need, a family that has a child or children enrolled in a program shall be allowed to enroll additional children provided there exists an appropriate program opening such as infant care or services to school age care children in which to enroll the child.

(c) When not all of the children in a family are certified based on child protective services, or the child's special need, the other children or the parents in the family must meet both eligibility and need criteria as specified in Education Code section 8263(a)(1) and (a)(2) prior to enrollment and shall be admitted in accordance with priorities specified in Education Code section 8263(b).

(d) Contractors shall not deny service to nor assign a lower priority to a family that needs less than full-time services.

(e) Contractors shall maintain a current waiting list in accordance with admission priorities. Contractors may satisfy the requirement for maintaining a waiting list by participating in a county child care centralized eligibility list. Contractors shall contact applicants in order of priority from the waiting list as vacancies occur.

(f) If it is necessary to displace families, families shall be displaced in reverse order of admission priorities.

NOTE: Authority cited: Sections 8261 and 8263, Education Code. Reference: Section 8263, Education Code.

(a) In addition to other applicable eligibility requirements as specified elsewhere in this Division, to be eligible for child care and development services the child must live in the State of California while services are being received.

(b) Any evidence of a street address or post office address in California will be sufficient to establish residency. A person identified as homeless pursuant to section 18078(h)(2) is exempted from this requirement and shall submit a declaration of intent to reside in California.

(c) The governing board of any school district, community college or county superintendent of schools may accommodate children residing outside its district boundaries in accordance with Education Code section 8322(a).

(d) The determination of eligibility for child care and development services shall be without regard to the immigration status of the child or the child's parent(s), unless the child or the child's parent(s) are under a final order of deportation from the United States Department of Justice.

NOTE: Authority cited: Section 8263, Education Code. Reference: Section 8263, Education Code.