Section 8406.6.

The Superintendent of Public Instruction shall establish a contract classification system for purposes of identifying, monitoring, and providing technical assistance to contractors as follows:

(a) Clear contract.This designation shall be given to contracted agencies that are in full compliance with all applicable statutory provisions, funding terms and conditions, and applicable program quality guidelines.

(b) Provisional contract.This designation applies to existing contracted agencies, or agencies that are awarded a new contract for services. The time frame of a provisional contract is at the discretion of the State Department of Education and is given to ensure demonstrated fiscal and programmatic compliance before granting clear contract status. The contract status shall be reviewed annually.

(c) Conditional contract.This designation applies to high-risk contracted agencies that evidence fiscal and or programmatic noncompliance. These agencies shall not be eligible to apply for additional State Child Development program funds, and are subject to any restrictions deemed reasonable to secure compliance. The conditional contract shall include a bill of particulars detailing the items of noncompliance, the standards that must be met to avoid termination of contract and to qualify the agency for clear contract status, and technical assistance plan. Failure to demonstrate substantive progress toward fiscal or program compliance within six months of that designation shall constitute a breach of contract and be subject to termination for any applicable cause specified in Section 8406.7 or in accordance with Section 8402.

(d) Agencies with conditional contracts shall receive technical assistance from the Child Development Division of the State Department of Education.

(Added by Stats. 1985, Ch. 687, Sec. 3.)