Law:Division 25.1. Health And Welfare Agency--administrative Appeals Process For Nonprofit Human Services (California)

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Agencies

Contents

Chapter 1. Legislative Intent And Policy

Ca Codes (hsc:38050) Health And Safety Code 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.


Chapter 2. Appeal Authority

Ca Codes (hsc:38055-38057) Health And Safety Code Section 38055-38057



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.


38056. Notwithstanding any other statutes to the contrary, this division shall prevail.


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.


Chapter 3. Administrative Appeal Process

Ca Codes (hsc: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.



Chapter 4. Implementation Of Administrative Appeal Process

Ca Codes (hsc:38065) Health And Safety Code Section 38065



38065. The Office of Administrative Hearings shall, by December 31, 1983, adopt regulations governing the hearings, which shall include all the following: (a) Deadlines for filing petitions, commencing hearings and rendering decisions. (b) Notice to affected parties. (c) Hearings shall be conducted at the offices of the Office of Administrative Hearings in Los Angeles, Sacramento or San Francisco. (d) Any other issues deemed appropriate by the Office of Administrative Hearings.


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