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Management Bulletin 09-10

Early Learning and Care Division

Subject: New Process to Assign Relinquished Funds to Child Development Contractors

Number: 09-10

Date: July 2009

Expires: Until Rescinded

Authority: California Education Code (EC) sections 8232, 8235, 8236, 8240, 8245, 8269, and 8467. California Code of Regulations, Title 5 (5 CCR), sections 18001 and 18308.

Attention:  Executive and Program Directors of Child Care and Development Programs


The purpose of this Management Bulletin is to inform Child Development contractors of the new process the Early Learning and Care Division (ELCD) will use to assign a permanent contractor when a contract has been relinquished. This process replaces the current one in which an interim contractor is appointed until a permanent contractor is selected through a Request for Application process.

Relinquishment of Funds Process

  • When an ELCD contractor relinquishes a Child Care and Development contract, the assigned ELCD Field Services Consultant will fax or e-mail a Letter of Intent to (1) all like contractors (and subcontractors) in the county; (2) any known contractor whose administrative headquarters is located outside the service delivery area but has been serving ELCD children for at least three years; and (3) a “for your information” copy to the County Local Planning Council Coordinator(s) in the county.
  • The Letter of Intent will include questions regarding the ability of the contractor to meet specific conditions in order to be considered for funding. For example, the contractor may need to provide services in a specific facility or to identify a new facility due to the unique circumstances of the relinquishment. There will also be language allowing (if appropriate) the current contract to be divided between two or more ELCD contractors.
  • The Letter of Intent will be completed by interested ELCD contractors or subcontractors and sent back to the ELCD within a short period of time (dictated by unique circumstances). The returned Letter of Intent will inform the ELCD of the contractor’s interest in assuming some or all of the relinquished contract services.
  • The assigned ELCD Field Services Consultant will determine if each applicant is “eligible for funding,” i.e., the contractor has demonstrated fiscal and/or programmatic compliance consistent with 5 CCR, Section 18001. The assigned ELCD Consultant will also contact Community Care Licensing and Child Development Fiscal Services to conduct record reviews to determine that:
    • The contractor has not significantly under-earned any existing contract(s).
    • There are no serious licensing issues.
    • There are no serious unresolved issues during the last Contract Monitoring Review or the Categorical Program Monitoring Review.
  • The ELCD will determine which agency will be awarded the contract based on the scores attained on the submitted documents of contractors found eligible for funding. If more than one agency attains the highest score, the ELCD will conduct a lottery to determine the awardee.
  • If time and budget permit, the assigned ELCD Field Services Consultant may conduct a site visit with the awardee(s) to verify their capacity to assume the contract.
  • Contractors will be notified of the results via e-mail and will have 24 hours to appeal, per 5 CCR, Section 18308.
  • Upon the ELCD’s decision, the relinquished funds will be permanently awarded.

If there are any questions regarding this new procedure, please contact your assigned ELCD Field Services Consultant at or call the ELCD at 916-322-6233.

This Management Bulletin is mandatory only to the extent that it cites a specific statutory and/or regulatory requirement. Any portion of this Management Bulletin that is not supported by a specific statutory and/or regulatory requirement is not prescriptive pursuant to California Education Code, Section 33308.5.

Questions:   Early Learning and Care Division | 916-322-6233
Last Reviewed: Thursday, January 18, 2024
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