38060-38061

HEALTH AND SAFETY CODE
SECTION 38060-38061




38060.  An administrative appeal process means a process established
by a state agency or department which allows a nonprofit human
service agency to seek review and resolution of some complaint about
a specific action or inaction of a state agency.
   The hearings held pursuant to this division shall be conducted
using current procedures presently established by the office.
   If the dispute is brought pursuant to subdivisions (d) through (g)
of Section 38061 and it involves a sum of money more than ten
thousand dollars ($10,000), the appeal authority, taking into account
the cash flow problems of the parties, may require the party holding
the disputed funds to place the amount under dispute in a special
deposit fund to earn and be paid interest with such earnings to be
distributed to the party who succeeds upon appeal. If the amount is
less than ten thousand dollars ($10,000), it may be placed in such a
special deposit fund with the approval of both parties.
   The appeal process shall include flexibility to modify procedures
to accommodate the particular needs of a given case.
   The state's portion of the cost of the appeal process shall be
borne by the state agency or department which shall not include
internal operating expenses of the Office of Administrative Hearings.




38061.  An appeal may be taken under the following circumstances.
   (a) Denial of a local contracting agency's application for
funding.
   (b) Denial of a local contracting agency's application for
expansion or startup funding.
   (c) Termination of a direct service contract.
   (d) Suspension of a direct service contract.
   (e) Denial of all or part of a direct service payment for services
schedule.
   (f) Demand for remittance of an overpayment.
   (g) When allegations are asserted which, if true, would constitute
a violation of a contract provision, or of federal or state law,
regulations, or guidelines.
   Decisions made pursuant to subdivisions (a) and (b) shall be
limited to a determination as to the procedural propriety of the
decisionmaking process, including the reason stated in the decision.