Direct service contracts.

The Child Care and Development Services Act, administered by the State Department of Education, requires the Superintendent of Public Instruction to administer child care and development programs for eligible children from infancy to 13 years of age. The act requires each entity that enters into a direct service contract with the state to provide child care and development services to comply with specified financial requirements, and to annually undergo a financial and compliance audit. This bill would authorize a contractor to carry forward certain reimbursable expenses and unearned funds to a subsequent contract issued by the department to continue the same program or services, subject to specified requirements. The bill would require the department to submit a report to specified committees of each house of the Legislature by January 1, 2014. The bill would repeal the bill's provisions on January 1, 2016.