Chapter 3Administrative Appeal Process

Section § 38060

Explanation

This law establishes an administrative appeal process for nonprofit human service agencies to challenge actions by state agencies. The hearings follow current office procedures, and if the dispute involves over $10,000, the disputed funds might be placed in a special account to accrue and pay interest to the winning party. For amounts under $10,000, both parties must agree to use the special account. Procedures can be adjusted to fit the needs of each case. The state agency involved pays for the appeal process, excluding certain internal costs.

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.
administrative appeal process nonprofit human service agency state agency actions complaint review specific action or inaction hearing procedures disputed funds special deposit fund interest earnings appeal process flexibility cash flow problems cost of appeal process Office of Administrative Hearings
(Added by Stats. 1982, Ch. 1373, Sec. 1.)

Section § 38061

Explanation

This law explains when an appeal can be made regarding certain decisions related to funding or contracts. Appeals are allowed if there's a denial of funding applications, whether for new projects or expansions, a termination or suspension of a service contract, denial of payments, overpayment demands, or if there are claims of violations against contract terms or laws. For funding application denials, appeals focus on whether the decision process was proper and the reasons behind it.

An appeal may be taken under the following circumstances.
(a)CA Health and Safety Code § 38061(a)  Denial of a local contracting agency’s application for funding.
(b)CA Health and Safety Code § 38061(b)  Denial of a local contracting agency’s application for expansion or startup funding.
(c)CA Health and Safety Code § 38061(c)  Termination of a direct service contract.
(d)CA Health and Safety Code § 38061(d)  Suspension of a direct service contract.
(e)CA Health and Safety Code § 38061(e)  Denial of all or part of a direct service payment for services schedule.
(f)CA Health and Safety Code § 38061(f)  Demand for remittance of an overpayment.
(g)CA Health and Safety Code § 38061(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.
funding denial appeal local contracting agency contract termination contract suspension service payment denial remittance demand overpayment appeal contract violation allegations decisionmaking process review procedure propriety funding application decision contract provision violation federal and state law compliance direct service contract expansion or startup funding denial
(Added by Stats. 1982, Ch. 1373, Sec. 1.)