Section 17826 - Termination, Suspension, and Major Reductions in Contract(a) Pursuant to the requirements of Education Code sections 8306 through 8319, an independent appeal procedure shall be available to any contractor whose contract is: (1) Terminated, either immediately or upon 90 days' notice;(3) Reduced by 4 percent of the agency's total contract or $25,000, whichever is less; or(4) Demanded for remittance of an overpayment of more than 4 percent of an agency's contract or $25,000, whichever is less.(b) Such appeals shall be preceded by a written notice to the contractor setting forth the specific reasons for the action and the steps by which the contractor may take to appeal the action, in accordance with any applicable requirements of the Administrative Procedures Act.(c) If a contractor timely requests an appeal, an appeal shall be heard by independent hearing officers in accordance with procedures established by the Office of Administrative Hearings in California Code of Regulations, title 1, division 2.(d) Termination upon 90 days' notice or temporary suspension of a contract during the contract period may occur when:(1) A contractor fails to correct items of fiscal or programmatic noncompliance within six months of receiving a conditional contract which includes an addendum stating the specific items of noncompliance and the corrective actions necessary to come into compliance; or(2) There is evidence of serious fiscal or programmatic noncompliance by the contractor; or(3) A contractor fails or refuses to make available for examination or copying by an authorized employee of the California Department of Education (CDE) any records or documents that the contractor is required to retain pursuant to this chapter, upon a request by that employee to examine or copy such records or documents; or(4) A contractor refuses to permit an authorized employee of the CDE to enter a facility operated by the contractor during the days and/or hours of operation on file with the CDE, for the purpose of reviewing administrative operations of the contractor or for observing preschool services provided by the contractor pursuant to this chapter.(e) Immediate termination actions may be taken for any reasons set forth in Education Code section 8315 or 8316.(f) Except in instances when the contractor has been immediately terminated or temporarily suspended, the contractor may continue to operate during the appeal process.Cal. Code Regs. Tit. 5, § 17826
1. New subchapter 11 (sections 17826-17833) and section filed 7-1-2022; operative 7-1-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 26). Note: Authority cited: Section 8231, Education Code. Reference: Sections 8309, 8310, 8311, 8313, 8314, 8315, 8316, 8317, 8318 and 8319, Education Code.
1. New subchapter 11 (sections 17826-17833) and section filed 7-1-2022; operative 7/1/2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 26).