reglab/statecodes huggingface dataset:
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 2 - Powers and Procedures › Section 37922.2.

37922.2. If anticipated rent increases or other increases in housing costs will result in dislocation of residential rehabilitation area residents or will result in residents paying a disproportionately large percentage of their incomes for housing, the local agency shall take every possible action to prevent displacement of all residents as a result of the operation of the residential rehabilitation program in residential rehabilitation areas. Such actions shall include relocation payments to persons and families of low or moderate income, as defined by Section 50093, who are tenants displaced because of the temporary or permanent displacement for rehabilitation work or residential infill construction assisted under this part, or rent increases resulting from rehabilitation, pursuant to the Uniform Relocation and Real Property Acquisition Policies Act of 1970 (42 U.S.C., Sec. 4601) or Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code. Such actions shall also include, but need not be limited to, utilization of all federal, state, or local funding programs which are available for housing subsidies. In allocating funds which may become available through federal revenue sharing and through the federal Housing and Community Development Act of 1974 (P.L. 93-383; 88 Stat. 633), the local agency shall give consideration to measures which will assist in preventing displacement of such residents, the consideration of such measures to be evidenced in writing.
For purposes of this section, displacement includes relocation occurring because of the inability of a person or family of low or moderate income to pay increased rentals resulting from rehabilitation, or involuntary temporary or permanent displacement of such a person or family.
The relocation payments required under this section shall be mandatory only if federal or state funds are available. However, nothing shall preclude the public entity from using local funds or funds from the sale of bonds.
(Amended by Stats. 1979, Ch. 1191, Sec. 17.5.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 2 - Powers and Procedures › Section 37922.5.

37922.5. (a)  A local agency, in order to prevent precipitous increases in rent which the loans would engender as to residential rental property, may require, as a condition of making a loan pursuant to this part, that the borrower contract during the term of the loan not to raise the rental amount over an amount which the agency by regulation establishes will yield a fair rate of return for similar investments and will allow for increases that are reasonably necessary to provide and continue proper maintenance of the property. This subdivision shall apply only to structures which will contain 12 or more dwelling units after rehabilitation and to structures for which loans exceeding five thousand dollars ($5,000) per dwelling unit have been extended pursuant to this part.
(b)  A local agency may require that an owner of a residential property provide notice to tenants at the time of application for a loan pursuant to this part, so that, in the event of protest by tenants, the amount of rehabilitation work may, at the discretion of the local agency, be limited in order to prevent precipitous rent increases which may cause displacement.
(Amended by Stats. 1979, Ch. 1190.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 2 - Powers and Procedures › Section 37923.

37923. (a) The local agency shall require that any residence that is rehabilitated, constructed, or acquired with financing obtained under this part shall be open, upon sale or rental of any portion thereof, to all regardless of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code. The local agency shall also require that contractors and subcontractors engaged in residential rehabilitation financed under this part provide equal opportunity for employment, without discrimination as to any basis listed in subdivision (a) of Section 12940 of the Government Code, as those bases are defined in Sections 12926 and 12926.1 of the Government Code, and except as otherwise provided in Section 12940 of the Government Code. All contracts and subcontracts for residential rehabilitation financed under this part shall be let without discrimination as to any basis listed in subdivision (a) of Section 12940 of the Government Code, as those bases are defined in Sections 12926 and 12926.1 of the Government Code, and except as otherwise provided in Section 12940 of the Government Code. It shall be the policy of the local agency financing residential rehabilitation under this part to encourage participation by minority contractors, and the local agency shall adopt rules and regulations to implement this section.
(b) Notwithstanding subdivision (a), with respect to familial status, subdivision (a) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in subdivision (a) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to subdivision (a).
(Amended by Stats. 2012, Ch. 181, Sec. 74. (AB 806) Effective January 1, 2013. Operative January 1, 2014, by Sec. 86 of Ch. 181.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 2 - Powers and Procedures › Section 37924.

37924. The authority of this part may be used to issue bonds for the purpose of financing residential rehabilitation in areas which were designated for concentrated code enforcement and have received federal funds under the Federally Assisted Code Enforcement program (Sections 115, 117, and 312 of the Housing Act of 1949, 42 U.S.C. 1466, 1468, and 1452b), and nothing in this part shall prevent using funds generated by bonds issued pursuant to the provisions of this part to finance residential rehabilitation in such areas.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 2 - Powers and Procedures › Section 37924.5.

37924.5. The local agency may include, in the comprehensive residential rehabilitation financing program adopted by ordinance or resolution pursuant to Section 37922, criteria for selection or order of selection of dwelling structures to be inspected in a systematic enforcement program to be carried out citywide or countywide in addition to the concentrated enforcement of rehabilitation standards in one or more residential rehabilitation areas, during the period in which such concentrated enforcement is carried out. Guidelines for financing residential rehabilitation of residences subjected to systematic enforcement shall be subject to the financing limitations prescribed by subdivision (d) of Section 37922. The comprehensive residential rehabilitation financing program shall, in such case, provide notice and opportunities to be involved in planning and operation of the program to persons potentially affected by the systematic enforcement program.
(Added by Stats. 1977, Ch. 920.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 2 - Powers and Procedures › Section 37925.

37925. Any action challenging the legality of a comprehensive residential rehabilitation financing program, the selection of a residential rehabilitation area, the selection of residences for residential rehabilitation pursuant to Section 37922.1, or the adoption of a plan for public improvements for a residential rehabilitation area, shall be commenced within 60 days of the adoption of such program, selection of such area or residences, or adoption of such plan for public improvements.
(Amended by Stats. 1975, Ch. 558.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37930.

37930. (a)  A local agency may, from time to time, issue its negotiable bonds or notes for the purpose of financing residential rehabilitation, including the rehabilitation, construction, or acquisition of (1) single residences for single participating parties, (2) a series of residences for a single participating party, (3) single residences for several participating parties, or (4) several residences for several participating parties. In anticipation of the sale of such bonds, the local agency may issue negotiable bond anticipation notes and may renew such notes from time to time. Bond anticipation notes may be paid from the proceeds of sale of the bonds of the local agency in anticipation of which they were issued. Bond anticipation notes and agreements relating thereto and the resolution or resolutions authorizing such notes and agreements may contain any provisions, conditions, or limitations which a bond, agreement relating thereto, or bond resolution of the local agency may contain except that any such note or renewal thereof shall mature at a time not later than two years from the date of the issuance of the original note.
(b)  Every issue of its bonds shall be a special obligation of the local agency payable from all or any part of the revenues specified in this part. The bonds shall be negotiable instruments for all purposes, subject only to the provisions of such bonds for registration.
(Amended by Stats. 1979, Ch. 1190.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37930.5.

37930.5. In determining the amount of bonds to be issued, the local agency may include all costs of the issuance of such revenue bonds, bond reserve funds, and bond interest estimated to accrue for a period not exceeding 12 months from the date of the bonds.
(Added by Stats. 1977, Ch. 931.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37931.

37931. The bonds may be issued as serial bonds or as term bonds, or the local agency, in its discretion, may issue bonds of both types. The bonds shall be authorized by resolution of the local agency and shall bear such date or dates, mature at such time or times, not exceeding 50 years from their respective dates of issuance, bear interest at such fixed or variable rate or rates, be payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America, at such place or places, and be subject to such terms of redemption as the resolution or resolutions of the local agency may provide. The bonds may be sold at either a public or private sale and for such prices as the local agency shall determine. Pending preparation of the definitive bonds, the local agency may issue interim receipts, certificates, or temporary bonds, which shall be exchanged for such definitive bonds. The local agency may sell any bonds, notes, or other evidence of indebtedness at a price below the par value thereof, but the discount on any bond so sold shall not exceed 6 percent of the par value thereof.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37932.

37932. Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions respecting any of the following terms and conditions, which shall be a part of the contract with the holders of the bonds:
(a)  The pledge of all or any part of the revenues, as defined in this part, subject to such agreements with bondholders as may then exist.
(b)  The interest and principal to be received and other charges to be charged and the amounts to be raised each year thereby, and the use and disposition of the revenues.
(c)  The setting aside of reserves or sinking funds and the regulation and disposition thereof.
(d)  Limitations on the purposes to which the proceeds of a sale of any issue of bonds, then or thereafter issued, may be applied, and pledging such proceeds to secure the payment of the bonds or any issue of bonds.
(e)  Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds.
(f)  The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given.
(g)  Limitation on expenditures for operating, administration, or other expenses of the local agency.
(h)  Specification of the acts or omissions to act which shall constitute a default in the duties of the local agency to holders of its obligations, and providing the rights and remedies of such holders in the event of default.
(i)  The mortgaging of any residence and the site thereof for the purpose of securing the bondholders.
(j)  The mortgaging of land, improvements, or other assets owned by a participating party for the purpose of securing the bondholders.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37933.

37933. Neither the members of the governing board of the local agency nor any person executing the bonds or notes shall be liable personally on the bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37934.

37934. The local agency shall have the power out of any funds available therefor to purchase its bonds or notes. The local agency may hold, pledge, cancel, or resell such bonds, subject to and in accordance with agreements with the bondholders.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37935.

37935. In the discretion of the local agency, any bonds issued under the provisions of this part may be secured by a trust agreement by and between the local agency and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without this state. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received or proceeds of any contract or contracts pledged, and may convey or mortgage any residence the rehabilitation, construction, or acquisition of which is to be financed out of the proceeds of such bonds. Such trust agreement or the resolution providing for the issuance of the bonds may provide for the assignment to such corporate trustee or trustees of loans, deeds of trust, or mortgages, to be held by such trustee or trustees on behalf of the local agency for the benefit of the bondholders. Such trust agreement or resolution providing for the issuance of bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including such provisions as may be included in any resolution or resolutions of the local agency authorizing the issuance of bonds pursuant to Section 37932. Any bank or trust company doing business under the laws of this state which may act as depositary of the proceeds of bonds or of revenues or other moneys may furnish such indemnity bonds or pledge such securities as may be required by the local agency. Any such trust agreement may set forth the rights and remedies of the bondholders and of the trustee or trustees, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the local agency may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of residential rehabilitation.
(Amended by Stats. 1979, Ch. 1190.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37936.

37936. Any holder of bonds issued under the provisions of this part or any of the coupons appertaining thereto, and the trustee or trustees appointed pursuant to any resolution authorizing the issuance of such bonds, except to the extent the rights thereof may be restricted by the resolution authorizing the issuance of the bonds, may, either at law or in equity, by suit, action, mandamus, or other proceedings, protect or enforce any and all rights specified in the laws of the state or in such resolution, and may enforce and compel the performance of all duties required by this part or by such resolution to be performed by the local agency or by any officer, employee, or agent thereof, including the fixing, charging, and collecting of rates, fees, interest, and charges authorized and required by the provisions of such resolution to be fixed, established, and collected.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37937.

37937. Bonds issued under the provisions of this part shall not be deemed to constitute a debt or liability of the local agency or a pledge of the faith and credit of the local agency, but shall be payable solely from the funds specified in this part. All such bonds shall contain on the face thereof a statement to the following effect:
Neither the faith and credit nor the taxing power of the [local agency] is pledged to the payment of the principal of or interest on this bond.
The issuance of bonds under the provisions of this part shall not directly, indirectly, or contingently obligate the local agency to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37938.

37938. (a)  The local agency may provide for the issuance of the bonds of the local agency for the purpose of refunding any bonds of the local agency then outstanding including the payment of any redemption premiums thereof and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of such bonds, and, if deemed advisable by the local agency, for the additonal purpose of paying all or any part of the cost of additional residential rehabilitation.
(b)  The proceeds of bonds issued for the purpose of refunding any outstanding bonds may, in the discretion of the local agency, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds, either at their earliest or, notwithstanding the provisions of Section 53583 of the Government Code or any other law, any subsequent redemption date or upon the purchase or retirement at the maturity thereof and may, pending such application, be placed in escrow, to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the local agency.
(c)  Pending use for purchase, retirement at maturity, or redemption of outstanding bonds, any proceeds held in escrow pursuant to subdivision (b) may be invested and reinvested as provided in the resolution authorizing the issuance of the bonds. Any interest or other increment earned or realized on any such investment may also be applied to the payment of the outstanding bonds to be refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and any interest or increment earned or realized from the investment thereof may be returned to the local agency to be used by it for any lawful purpose.
(d)  That portion of the proceeds of any such bonds designated for the purpose of paying all or any part of the cost of additonal residential rehabilitation pursuant to subdivision (a) may be invested and reinvested in obligations of, or guaranteed by, the United States of America or in certificates of deposit or time deposits secured by obligations of, or guaranteed by, the United States of America, maturing not later than the time or times when such proceeds will be needed for the purpose of paying all or any part of such cost.
(e)  All bonds issued pursuant to this section shall be subject to the provisions of this part in the same manner and to the same extent as other bonds issued pursuant to this part.
(Amended by Stats. 1980, Ch. 331.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37938.5.

37938.5. When not immediately required to provide financing under this chapter, revenues and the proceeds of bonds may be invested in any securities or obligations authorized by the resolution providing for issuance of the bonds or by the trust agreement securing the bonds. Such investments may include mortgage obligations on single-family dwellings purchased from a state or federally chartered bank or savings and loan association pursuant to a repurchase agreement under which the bank or savings and loan association will repurchase the mortgage obligation on or before a specified date and for a specified amount, provided that the mortgage or the repurchase agreement shall be insured by a mortgage insurance company licensed to insure mortgages in the State of California and qualified to provided insurance on mortgages purchased by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
The authority provided in this section is additional and alternative to any other authorization for investment contained in this part, including subdivision (d) of Section 37938, or in other provisions of law.
(Added by Stats. 1980, Ch. 331.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37939.

37939. Notwithstanding any other provisions of law, bonds issued pursuant to this part shall be legal investments for all trust funds, the funds of insurance companies, savings and loan associations, investment companies and banks, both savings and commercial, and shall be legal investments for executors, administrators, guardians, conservators, trustees, and all other fiduciaries. Such bonds shall be legal investments for state school funds and for any funds which may be invested in county, municipal, or school district bonds, and such bonds shall be deemed to be securities which may properly and legally be deposited with, and received by, any state or municipal officer or by any agency or political subdivision of the state for any purpose for which the deposit of funds or obligations of the state is now, or may hereafter be, authorized by law, including deposits to secure public funds.
(Amended by Stats. 1979, Ch. 730.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 3 - Bonds and Notes › Section 37940.

37940. The exercise of the powers granted by this part shall be in all respects for the benefit of the people of this state and for their health and welfare. Any bonds or notes issued under the provisions of this chapter, their transfer and the income therefrom, shall at all times be free from taxation of every kind by the state and by the municipalities and other political subdivisions of the state.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 4 - Rehabilitation Loans › Section 37950.

37950. The local agency may provide financing to any participating party for the purpose of residential rehabilitation authorized pursuant to a comprehensive residential rehabilitation financing program. All agreements for such loans shall provide that the architectural and engineering design of the residential rehabilitation shall be subject to such standards as may be established by the local agency and that the work of such residential rehabilitation shall be subject to such supervision as the local agency deems necessary.
(Amended by Stats. 1975, Ch. 558.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 4 - Rehabilitation Loans › Section 37952.

37952. All moneys received pursuant to the provisions of this part, whether proceeds from the sale of bonds or revenues or proceeds of mortgage insurance or guarantee claims, if any, shall be deemed to be trust funds to be held and applied solely as provided in this part. Any bank or trust company in which such moneys are deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes specified in this part, subject to the terms of the resolution authorizing the bonds.
(Amended by Stats. 1977, Ch. 931.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 5 - Construction and Effect › Section 37961.

37961. If the jurisdiction of the legislative body to order the proposed act is not affected, an omission of any officer or the local agency in proceedings under this part or any other defect in the proceedings shall not invalidate the proceedings or bonds issued pursuant to this part.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 5 - Construction and Effect › Section 37963.

37963. This part shall be deemed to provide a complete, additional, and alternative method for doing the things authorized thereby, and shall be regarded as supplemental and additional to the powers conferred by other laws. The issuance of bonds and refunding bonds under the provisions of this part need not comply with the requirements of any other law applicable to the issuance of bonds.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 24 - COMMUNITY DEVELOPMENT AND HOUSING › PART 13 - RESIDENTIAL REHABILITATION › CHAPTER 5 - Construction and Effect › Section 37964.

37964. An action may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure to determine the validity of bonds and the legality and validity of all proceedings previously taken and (as provided in the bond resolution) proposed to be taken for the authorization, issuance, sale, and delivery of the bonds and for the payment of the principal thereof and interest thereon.
(Added by Stats. 1973, Ch. 1201.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 1 - Legislative Intent and Policy › Section 38000.

38000. The Legislature states its intent with respect to direct service contracts of the departments within the Health and Welfare Agency as follows:
(a)  Contract approval process should take no longer than 30 days from the time the administrative agency generating the contract has approved its provisions.
(b)  Payment for services rendered shall take no longer than 30 days after an invoice has been approved by the responsible department.
(c)  If contract approval or payment or both are delayed, the state shall notify community based agencies within 15 days with instructions to either defer or interrupt services to be contracted. If the state requests an agency to continue providing services, conditions shall be mutually agreed upon in advance for amortization of particular additional costs to the agency involved.
(Added by Stats. 1980, Ch. 990.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 2 - Contract Authority › Section 38010.

38010. Notwithstanding any other statutes to the contrary, this division shall prevail.
This division shall not apply to contracts entered into pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code.
(Amended by Stats. 1982, Ch. 1462, Sec. 2.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 2 - Contract Authority › Section 38011.

38011. Administrative departments are responsible for:
Program planning, issuing requests for proposal, reviewing and choosing contractors, negotiating service agreements with contractors, oversight of contract review and payment processes, preparing claims for payment, monitoring services, and evaluating contractors.
(Added by Stats. 1980, Ch. 990.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 2 - Contract Authority › Section 38012.

38012. The Department of General Services shall review and approve contracts in accordance with Article 4 (commencing with Section 10335) of Chapter 2 of Part 2 of Division 2 of the Public Contract Code.
(Amended by Stats. 2006, Ch. 538, Sec. 397. Effective January 1, 2007.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 2 - Contract Authority › Section 38013.

38013. The Department of Finance shall review and approve contracts in accordance with the provisions of Section 10336 of the Public Contract Code.
(Amended by Stats. 1983, Ch. 1231, Sec. 3. Effective September 30, 1983.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 2 - Contract Authority › Section 38015.

38015. The State Department of Social Services may advance up to 90 percent of any federal emergency food and shelter funds under Public Law 98-8 which the state appropriates to the department, to counties or local United Way organizations which have contracts with the department for the purpose of providing emergency food and shelter services. Any interest earned on any funds received pursuant to this section by a county, a United Way organization, or the department shall be used for the purpose of emergency food and shelter services.
(Added by Stats. 1983, Ch. 883, Sec. 1. Effective September 19, 1983.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 3 - Contract Approval Process › Section 38020.

38020. (a)  All departments under the Health and Welfare Agency may write and execute direct service contracts prior to July 1 of any fiscal year for the mutual benefit of both parties in order to avoid program and fiscal delay which could occur if the contracts were executed after July 1.
Such contracts are valid and enforceable only if sufficient funds are made available by the Budget Act of the appropriate contract year. In addition, contracts may be subject to such additional restrictions, limitations, or conditions as enacted by the Legislature and contained in the Budget Bill or any statute enacted by the Legislature.
If the Budget Act does not appropriate sufficient funds for the program, such contracts shall be invalid and of no further force and effect. In this event, the state shall have no liability to pay any funds whatsoever to the contractor, or to furnish any other considerations under this contract and the contractor shall not be obligated to perform any provisions of this contract.
(b)  As used in this act “direct service contract” means a contract for services contained in local assistance or subvention programs, or both.
(Added by Stats. 1980, Ch. 990.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 3 - Contract Approval Process › Section 38021.

38021. If the renewal of a direct service contract is not approved in a timely manner through no fault of the contractor, the administrative department may request a simple 90-day extension of the existing approved contract pending final approval of the contract renewal and provide notification and the information and forms necessary for the agency contractor to bill for up to 90 days pursuant to this section.
(Added by Stats. 1980, Ch. 990.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 4 - Direct Service Contract Procedure › Section 38030.

38030. Each department under the Health and Welfare Agency shall identify each program (1) within which direct service contracts are awarded totaling in the aggregate contract amount of more than two hundred fifty thousand dollars ($250,000), and (2) which awards more than five direct service contracts per year. For the purposes of this chapter, “direct service contracts” shall not include contracts, grants, or subventions to other governmental agencies or units of government nor contracts with regional centers or area agencies on aging.
(Added by Stats. 1981, Ch. 794.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 4 - Direct Service Contract Procedure › Section 38031.

38031. For each program identified pursuant to Section 38030, each department shall develop an annual calendar identifying target dates for requests for proposal, contract bid deadlines, contract award announcements, contract approvals, and contract evaluations. Where funding or funding levels for a program are uncertain or subject to delays beyond the control of the program, the calendar shall so indicate and shall specify a range of dates within which final decisions on funding availability are likely to be made. Each such calendar shall be available to the public and shall be updated at least annually.
(Added by Stats. 1981, Ch. 794.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 4 - Direct Service Contract Procedure › Section 38032.

38032. For each program identified pursuant to Section 38030, each department shall develop and maintain a central distribution list for requests for proposal. Such lists shall contain a statement of the basis for making additions to the list and any affirmative action policies pertinent to the program’s contracting practices.
(Added by Stats. 1981, Ch. 794.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 4 - Direct Service Contract Procedure › Section 38033.

38033. Each request for proposal shall contain, but not be limited to, the following information: the goals and objectives of the entire program, identification of the specific minimum range of services to be purchased related to those goals, quantitative as well as qualitative measures which will be used by the department to evaluate service outcomes, specific criteria and a description of the methodology and timetable which will be followed to review and approve bids, and all minimum performance standards any agency must meet prior to direct service contract approval.
(Added by Stats. 1981, Ch. 794.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 4 - Direct Service Contract Procedure › Section 38034.

38034. For each program identified pursuant to Section 38030, each department shall identify the following steps: time estimated for each step; specific staff names, office addresses, and telephone numbers for those responsible for each step; and legal requirements and signatory approvals required prior to final approval of any contract. Any conditions for advance or interim payments shall also be identified. All bidders shall receive, in writing, all information required pursuant to this section.
(Added by Stats. 1981, Ch. 794.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 4 - Direct Service Contract Procedure › Section 38035.

38035. For each program identified pursuant to Section 38030, each department shall identify and transmit to all agencies awarded direct service contracts forms required for contract payments, management information or reports required pursuant to contract objectives, and conditions and methods for contract evaluations. Methods and conditions for payment recoveries, withholding of payments, and contract terminations relating to nonperformance shall also be identified. This information shall be made available to each agency awarded a direct service contract prior to final approval of the contract.
(Added by Stats. 1981, Ch. 794.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 4 - Direct Service Contract Procedure › Section 38036.

38036. Each department under the Health and Welfare Agency shall develop a grievance procedure for resolving disputes arising from the awarding or administering of direct service contracts.
(Added by Stats. 1981, Ch. 794.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 4 - Direct Service Contract Procedure › Section 38037.

38037. Pursuant to Section 38030 through Section 38035, inclusive, all departments under the Health and Welfare Agency shall prepare an implementation schedule to develop the information required pursuant to this chapter. These schedules shall be transmitted within 90 days after the effective date of this chapter to the Joint Legislative Budget Committee and the Assembly and Senate Offices of Research for their review. The implementation schedule shall cover the period of one year from the effective date of this chapter.
(Added by Stats. 1981, Ch. 794.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 5 - Direct Service Contract Audit Requirements › Section 38040.

38040. As used in this chapter:
(a)  “Financial and compliance audit” means a systematic review or appraisal to determine each of the following:
(1)  Whether the financial statements of an audited organization fairly present the financial position and the results of financial operations in accordance with generally accepted accounting principles.
(2)  Whether the organization has complied with laws and regulations that may have a material effect upon the financial statements.
(b)  “Public accountants” means certified public accountants, or state licensed public accountants.
(c)  “Independent auditors” means public accountants who have no direct or indirect relationship with the functions or activities being audited or with the business conducted by any of the officials or contractors being audited.
(d)  “Generally accepted auditing standards” means the auditing standards set forth in the financial and compliance element of the “Standards for Audit of Governmental Organizations, Programs, Activities, and Functions” issued by the Comptroller General of the United States and incorporating the audit standards of the American Institute of Certified Public Accountants.
(e)  “Direct service contract” means any contract provided by a state agency pursuant to Chapter 4 (commencing with Section 38030).
(f)  “Nonprofit organization” means an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 that is exempt from taxation under Section 501(a) of that code or any nonprofit, scientific or educational organization qualified under Section 23701d of the Revenue and Taxation Code.
(Amended by Stats. 2003, Ch. 185, Sec. 4. Effective January 1, 2004.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25 - HEALTH AND WELFARE AGENCY—DIRECT SERVICE CONTRACTS REFORM ACT › CHAPTER 5 - Direct Service Contract Audit Requirements › Section 38041.

38041. (a)  Annually, there shall be a single independent financial and compliance audit of nonprofit organizations that contract with the state under a direct service contract. Any such audit shall include an evaluation of the accounting and control systems of the direct service contractor and of the activities by the contractor to comply with the financial requirements of direct service contracts received by the contractor from the state agency. Audits carried out pursuant to this section shall be audits of the contractor, rather than audits of individual contracts or programs. In the case of any contractor that receives less than twenty-five thousand dollars ($25,000) per year from any state agency, the audit required by this section shall be conducted biennially, unless there is evidence of fraud or other violation of state law in connection with the direct service contract. The cost of such audit may be included in direct service contracts up to the proportionate amount that the contract represents of the contractor’s total revenue.
(b)  A nonprofit organization shall have responsibility for financial and compliance audits of the nonprofit organization and any subcontractors. The audits shall be made by independent auditors in accordance with generally accepted auditing standards. The audit shall be completed by the 15th day of the fifth month following the end of the contractor’s fiscal year.
(c)  (1)  Nothing in this chapter limits the authority of state agencies to make audits of direct service contracts; provided, however, that if independent audits arranged for by direct service contractors meet generally accepted auditing standards state agencies shall rely on those audits and any additional audit work shall build upon the work already done.
(2)  The state is responsible for conducting, or contracting for the conduct of, contract performance audits which are not financial and compliance audits.
(3)  Nothing in this chapter limits the state’s responsibility or authority to enforce state law or regulations, procedures, or reporting requirements arising pursuant thereto.
(Added by Stats. 1982, Ch. 1462, Sec. 3.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25.1 - HEALTH AND WELFARE AGENCY—ADMINISTRATIVE APPEALS PROCESS FOR NONPROFIT HUMAN SERVICES AGENCIES › CHAPTER 1 - Legislative Intent and Policy › Section 38050.

38050. The Legislature hereby finds that in a contractual relationship between the Health and Welfare Agency, its component departments, and private, nonprofit human service organizations:
(a)  Problems arise under cooperative agreements that end in disputes.
(b)  The intent between the disputing parties is to resolve their controversy through an informal dispute process. The parties should set a goal of no more than 60 days from receipt of a complaint to resolution.
(c)  If the parties reach an impasse, then there should be a logical intermediate appeal authority as the next level in the appeal process.
(d)  In California, there exists no process between informal dispute resolution and judicial review that is available to and can properly address controversies between the Health and Welfare Agency and human service organizations.
(Added by Stats. 1982, Ch. 1373, Sec. 1.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25.1 - HEALTH AND WELFARE AGENCY—ADMINISTRATIVE APPEALS PROCESS FOR NONPROFIT HUMAN SERVICES AGENCIES › CHAPTER 2 - Appeal Authority › Section 38055.

38055. A formal administrative appeal process shall be established and made available to all private, nonprofit human service organizations seeking resolution of any dispute arising out of a direct service contract with the Health and Welfare Agency or a component department of the agency, except as provided in Section 38030 of the Health and Safety Code.
This division shall not apply to contracts entered into pursuant to Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code.
(Added by Stats. 1982, Ch. 1373, Sec. 1.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25.1 - HEALTH AND WELFARE AGENCY—ADMINISTRATIVE APPEALS PROCESS FOR NONPROFIT HUMAN SERVICES AGENCIES › CHAPTER 2 - Appeal Authority › Section 38056.

38056. Notwithstanding any other statutes to the contrary, this division shall prevail.
(Added by Stats. 1982, Ch. 1373, Sec. 1.)
2023 California Code › Health and Safety Code - HSC › DIVISION 25.1 - HEALTH AND WELFARE AGENCY—ADMINISTRATIVE APPEALS PROCESS FOR NONPROFIT HUMAN SERVICES AGENCIES › CHAPTER 2 - Appeal Authority › Section 38057.

38057. The appeal authority shall be the Office of Administrative Hearings in the Department of General Services. The office is hereby charged with the responsibility to administer and conduct hearings, and to render proposed decisions about the matter in dispute.
The appeal authority may delay or set aside a state agency or departmental action related to the appeal.
The appeal authority shall provide flexibility in the appeal process, providing a range of review from the most formal to a level acceptable to both parties.
An appeal pursuant to this division shall not be considered by the appeal authority until the direct service contractor has attempted to resolve the dispute through the grievance procedure established in accordance with Section 38036 of the Health and Safety Code. If the department or agency has failed to establish such a procedure, the appeal authority shall assume immediate jurisdiction over the dispute.
(Added by Stats. 1982, Ch. 1373, Sec. 1.)