38070. This act shall be known and may be cited as the State
Department of Health Services Cooperative Agreement Act.
38071. The purposes of this division are:
(a) To simplify the administration of public health programs by
the State Department of Health Services.
(b) To reduce the administrative cost of public health programs to
the department.
(c) To encourage units of state and local government and nonprofit
organizations to attempt bold new solutions to local public health
problems.
38072. For purposes of this division, the following definitions
shall apply:
(a) "Cooperative agreement" means an agreement between the
department and a unit of local government, any other unit of state
government, or a nonprofit organization that provides for a contract
under any of the following programs:
(1) California AIDS Program (Chapter 2 (commencing with Section
120800) of Part 4 of Division 105).
(2) Health of Seasonal Agricultural and Migratory Workers (Chapter
3 (commencing with Section 124550) of Part 4 of Division 106).
(3) American Indian Health Services (Chapter 4 (commencing with
Section 124575) of Part 4 of Division 106).
(4) Rural Health Services Development (Chapter 5 (commencing with
Section 124600) of Part 4 of Division 106).
(5) Grants-In-Aid for Clinics (Article 1 (commencing with Section
124875) of Chapter 7 of Part 4 of Division 106).
(6) Expanded Access to Primary Care (Article 2 (commencing with
Section 124900) of Chapter 7 of Part 4 of Division 106).
(7) Birth Defects Monitoring Program (Chapter 1 (commencing with
Section 103825) of Part 2 of Division 102).
(8) Maternal and child health programs, including, but not limited
to, Article 5 (commencing with Section 123800) of Chapter 3 of Part
2 of Division 106 and as set forth in subdivision (c) of Section 27.
(9) Special Supplemental Food Program for Women, Infants, and
Children (Article 2 (commencing with Section 123275) of Chapter 1 of
Part 2 of Division 106).
(10) Perinatal Health Care (Article 4 (commencing with Section
123550) of Chapter 2 of Part 2 of Division 106).
(11) Family planning services (Section 14503 of the Welfare and
Institutions Code).
(12) Hereditary Disorders Programs (subdivision (b) of Section
27).
(13) Other public health programs for the protection,
preservation, and advancement of public health authorized pursuant to
Section 100185 or pursuant to an annual Budget Act provision.
(b) "Department" means the State Department of Health Services.
38073. The department shall comply with Sections 38030, 38031,
38032, 38035, and 38036, Chapter 3 (commencing with Section 38020)
and Chapter 5 (commencing with Section 38040) of Division 25, and the
grievance and appeal provisions set forth in Section 38036, Division
25.1 (commencing with Section 38050), and Article 4 (commencing with
Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of
the Government Code.
38074. (a) Cooperative agreements shall be procured by means of a
request for application or a request for proposal, whichever is
applicable, as determined by the department.
(b) A procurement by a request for application is one where the
department has funds, regardless of the source, that it seeks to
distribute to those entities or organizations specified in Section
38072, that meet the criteria and standards stated in the request for
application. A distinguishing feature of a request for application
is that, unlike a request for proposal, a request for application is
a request where multiple awards are to be made based on the
information provided in the application and evaluated against the
methodology and criteria specified in the request for application.
(c) All request for proposal cooperative agreement awards shall
comply with the requirements of Section 10344 of the Public Contract
Code.
(d) A cooperative agreement shall be for a period of up to three
years.
(e) A cooperative agreement for a one-year period may provide for
up to two annual extensions.
(f) A cooperative agreement may be procured without a request for
application or a request for proposal under either of the following
circumstances:
(1) When the amount of the cooperative agreement is less than
fifty thousand dollars ($50,000) annually. A nonprofit organization
shall receive only one of these awards during each fiscal year.
(2) When the amount of the cooperative agreement is less than two
hundred thousand dollars ($200,000) a year and from a program that
awards five or fewer grants per year.
38075. The department, at its discretion, may enter into a single
cooperative agreement with a single contractor based upon the
contractor's applications submitted in response to requests for
application from several programs.
38076. In administering cooperative agreements, the program staff
shall prepare all requests for proposals and requests for
applications, evaluate the proposals and applications received, make
the awards, and monitor progress of recipients of awards.
38077. (a) The department shall use only one or more of the
following payments systems for cooperative agreements:
(1) Allowable costs up to a maximum amount.
(2) Fixed payment per unit of service.
(3) Fixed monthly payment.
(4) Fixed price agreement.
(b) If the allowable cost payment system is used, the cooperative
agreement shall contain a line item budget for the cooperative
agreement project, and both of the following shall apply:
(1) Except as required by other funding sources, including, but
not limited to, the federal government or private foundations, the
line item budget shall specify aggregate costs for the following and
no other categories:
(A) Personnel, including, but not limited to, salary, wages, and
fringe benefits.
(B) Operating expenses, other than personnel, including, but not
limited to, rent, depreciation, use allowance, supplies, utilities,
and other operating costs.
(C) Capital expenditures to be paid for by the cooperative
agreement.
(D) Other costs as specified in the agreement.
(E) A fixed indirect cost amount or rate.
(2) A nonprofit organization or unit of state or local government
that is a party with the department in a cooperative agreement may
propose, in writing, scope of work revisions or changes. The
contractor shall be notified in writing within 30 calendar days when
proposed revisions are approved or disapproved by the department. If
written notification does not occur within this time period, the
proposed revisions or changes shall be deemed approved.
38077.3. (a) The department shall develop uniform cooperative
agreement formats containing standardized agreement language. Each
uniform format shall be developed with the participation of the
affected parties. The purpose of the uniform formats shall be to
consolidate and simplify administrative and programmatic
requirements, maintain systemwide consistency, develop procedures
that promote ease of use by clients, streamline processes, eliminate
unnecessary paperwork, and ensure fiscal accountability. Uniform
formats shall be outcome oriented and conducive to the business and
operational needs of all parties to the extent practical.
(b) For purposes of this section "standardized agreement language"
means language that constitutes terms and conditions of performance
necessitated by sound contract management and compliance practices,
including, but not limited to, payment and invoicing systems and
procedures, record management requirements, and programmatic
reporting requirements. Excluded from this definition are scopes of
work, line item budgets, funding related provisions, preprinted
generic exhibits, and cancellation or amendment clauses.
(c) The department may form working groups including
representatives of all affected parties to implement this section.
(d) After finalization of uniform cooperative agreement formats,
no unilateral change to standardized agreement language may be
implemented without making the changes available for public comment.
These changes include changes caused by programmatic decisions,
control agency requirements, and administrative needs.
(e) Nothing in this section shall be construed to prevent or delay
changes necessitated by state or federal statute or regulations.
38078. All of the following shall apply to cooperative agreements:
(a) The department or contractor may terminate, upon a minimum of
30 days written notice, any cooperative agreement.
(b) The department may reject a request for proposal or a request
for application response based on an entity's or organization's
failure to comply with contracted requirements in prior contracts or
cooperative agreements with the department.
(c) The organization or unit of state and local government shall
be liable to return any funds for failure to comply with the
requirements of the cooperative agreement.
38078.5. (a) A cooperative agreement involving the purchase of
electronic data processing hardware, software, or services, or
telecommunication goods and services, up to a purchase amount of
fifty thousand dollars ($50,000), shall be exempt from Chapter 3
(commencing with Section 12100) and Chapter 3.5 (commencing with
Section 12120) of Part 2 of Division 2 of the Public Contract Code,
and from Part 1 (commencing with Section 11000) of Division 3 of
Title 2 of the Government Code.
(b) A cooperative agreement with a unit of local or state
government that requires the purchase of capital equipment shall
utilize the contractor's existing procurement systems for the
purchase of equipment.
(c) A cooperative agreement with a nonprofit organization that
provides for capital expenditures as part of a line item budget shall
utilize a procurement system for the purchase of equipment under a
cooperative agreement that meets the following standards:
(1) The nonprofit organization shall maintain a code or standard
of conduct that shall govern the performance of its officers,
employees, or agents engaged in awarding procurement contracts. No
employee, officer, or agent shall participate in the selection,
award, or administration of a procurement contract in which, to his
or her knowledge, he or she has a financial interest.
(2) Procurements shall be conducted in a manner that provides, to
the maximum extent practical, open and free competition.
(3) Procurements shall be conducted in a manner that provides for
all of the following:
(A) Avoidance of the purchasing of unnecessary or duplicate items.
(B) Solicitation for capital expenditures based upon a clear and
accurate description of the technical requirements of the capital
goods to be procured.
(C) The taking of positive steps to utilize small, minority,
women, or veteran owned businesses.
(d) Notwithstanding subdivisions (a), (b), and (c), the Director
of General Services may exempt from those requirements any purchases
in excess of fifty thousand dollars ($50,000) annually of capital
equipment, and electronic data processing and telecommunications
goods and services made under a cooperative agreement for which, in
his or her judgment, the exemption is appropriate and in the best
interests of the state. Written notice of an exemption shall be given
to the Controller.
(e) Subdivision (a) shall become inoperative on June 30, 1997.
38079. (a) All cooperative agreements, regardless of the size of
the contracting nonprofit organization, are subject to the late
payment provisions in Section 927.6 of the Government Code.
(b) In implementing this division, the department shall have the
authority of, and be subject to, the provisions set forth in Chapter
2 (commencing with Section 124475) of Part 4 of Division 106, except
that those provisions apply to all cooperative agreements, not only
those agreements with clinics. However, notwithstanding Section
124500, moneys in the Clinic Revolving Fund of the State Department
of Health Services shall be used for purposes of this division only
upon appropriation of funds by the Legislature for that purpose.
38080. When the department awards a cooperative agreement pursuant
to Section 38074, prior to execution of the agreement, the department
may do the following:
(a) Certify to the Controller that a cooperative agreement has
been awarded, the name of the organization or agency to which the
award has been made, the amount approved by the department for
funding the cooperative agreement, and any other information as may
be required by the Controller.
(b) Present a claim to the Controller for payment to the
organization or agency, from an appropriation available for such
purpose, of an amount not exceeding 25 percent of the funding
approved for the cooperative agreement.
38081. (a) Provisions shall be included in any invitation for bid
or request for proposal issued and in any contract executed on or
after January 1, 1996, in an amount that exceeds two hundred fifty
thousand dollars ($250,000) by the State Department of Health
Services, to permit the substitution of securities for any moneys
withheld to ensure performance under a service or consulting service
contract, provided that substitution of securities provisions shall
not be required where federal regulations or policies, or both, do
not allow the substitution of securities. At the request and expense
of the contractor, securities equivalent to the amount withheld shall
be deposited with the state department, or with a state or federally
chartered bank in California as the escrow agent, who shall then pay
the moneys to the contractor. Upon satisfactory completion of the
contract, the securities shall be returned to the contractor.
(b) Alternatively, the contractor may request and the state
department shall make payment of retentions earned directly to the
escrow agent at the expense of the contractor. At the expense of the
contractor, the contractor may direct the investment of the payments
into securities and the contractor shall receive the interest earned
on the investments upon the same terms provided for in this section
for securities deposited by the contractor. Upon satisfactory
completion of the contract, the contractor shall receive from the
escrow agent all securities, interest, and payments received by the
escrow agent from the state department, pursuant to the terms of this
section. The contractor shall pay to each subcontractor, not later
than 20 days of receipt of the payment, the respective amount of
interest earned, net of costs attributed to retention withheld from
each subcontractor, on the amount of retention withheld to insure the
performance of the contractor.
(c) Securities eligible for investment under this section shall
include those listed in Section 16430 of the Government Code, bank or
savings and loan certificates of deposit, interest bearing demand
deposit accounts, standby letters of credit, or any other security
mutually agreed to by the contractor and the state department.
The contractor shall be the beneficial owner of any securities
substituted for moneys withheld and shall receive any interest
thereon.
Failure to include these provisions in bid and contract documents
shall void any provisions for performance retentions in an affected
contract.
38081.1. (a) Cooperative agreements shall be subject to review and
approval by the Department of General Services pursuant to Chapter 2
(commencing with Section 10290) of Part 2 of Division 2 of the Public
Contract Code, except as follows:
(1) Changes in the scope of work approved under paragraph (2) of
subdivision (b) of Section 38077.
(2) For allowable cost agreements, changes in line item budgets of
up to 15 percent of the annual total, not to exceed one hundred
thousand dollars ($100,000), so long as the contract total does not
increase or decrease. This maximum amount shall be assessed annually
and automatically adjusted in accordance with cost-of-living indexes.
(3) Agreements, and amendments to those agreements, under programs
expressly exempted from the review and approval of the Department of
General Services pursuant to statute, including, but not limited to,
those exemptions granted prior to January 1, 1994.
(b) (1) A nonprofit organization or governmental agency that is
awarded a cooperative agreement shall not be subject to the minority
and women business and disabled veterans participation goals set
forth in Article 1.5 (commencing with Section 10115 of Chapter 1 of
Part 2 of Division 2 of the Public Contract Code with respect to that
portion of the cooperative agreement budget that is for personnel
related costs of the cooperative agreement, as determined by the
department.
(2) A nonprofit organization or governmental agency that is
awarded a cooperative agreement shall also be exempt from the
participation goals described in paragraph (1) when the cooperative
agreement meets any of the following criteria:
(A) The amount of the cooperative agreement is one hundred
thousand dollars ($100,000) or less annually.
(B) In the case of a nonprofit organization, the nonprofit
organization to be awarded the cooperative agreement has a board of
directors of which at least 51 percent of the members are any
combination of women, minorities, and disabled veterans.
(C) Cooperative agreements that result from requests for
application.
(c) The Director of General Services may exempt from his or her
approval or from approval of the department any cooperative
agreements for which, in his or her judgment, the exemption is
appropriate and in the best interests of the state. Written notice of
an exemption shall be given to the Controller.
(d) Subdivision (b) shall become inoperative on June 30, 1997.
38070. This act shall be known and may be cited as the State
Department of Health Services Cooperative Agreement Act.
38071. The purposes of this division are:
(a) To simplify the administration of public health programs by
the State Department of Health Services.
(b) To reduce the administrative cost of public health programs to
the department.
(c) To encourage units of state and local government and nonprofit
organizations to attempt bold new solutions to local public health
problems.
38072. For purposes of this division, the following definitions
shall apply:
(a) "Cooperative agreement" means an agreement between the
department and a unit of local government, any other unit of state
government, or a nonprofit organization that provides for a contract
under any of the following programs:
(1) California AIDS Program (Chapter 2 (commencing with Section
120800) of Part 4 of Division 105).
(2) Health of Seasonal Agricultural and Migratory Workers (Chapter
3 (commencing with Section 124550) of Part 4 of Division 106).
(3) American Indian Health Services (Chapter 4 (commencing with
Section 124575) of Part 4 of Division 106).
(4) Rural Health Services Development (Chapter 5 (commencing with
Section 124600) of Part 4 of Division 106).
(5) Grants-In-Aid for Clinics (Article 1 (commencing with Section
124875) of Chapter 7 of Part 4 of Division 106).
(6) Expanded Access to Primary Care (Article 2 (commencing with
Section 124900) of Chapter 7 of Part 4 of Division 106).
(7) Birth Defects Monitoring Program (Chapter 1 (commencing with
Section 103825) of Part 2 of Division 102).
(8) Maternal and child health programs, including, but not limited
to, Article 5 (commencing with Section 123800) of Chapter 3 of Part
2 of Division 106 and as set forth in subdivision (c) of Section 27.
(9) Special Supplemental Food Program for Women, Infants, and
Children (Article 2 (commencing with Section 123275) of Chapter 1 of
Part 2 of Division 106).
(10) Perinatal Health Care (Article 4 (commencing with Section
123550) of Chapter 2 of Part 2 of Division 106).
(11) Family planning services (Section 14503 of the Welfare and
Institutions Code).
(12) Hereditary Disorders Programs (subdivision (b) of Section
27).
(13) Other public health programs for the protection,
preservation, and advancement of public health authorized pursuant to
Section 100185 or pursuant to an annual Budget Act provision.
(b) "Department" means the State Department of Health Services.
38073. The department shall comply with Sections 38030, 38031,
38032, 38035, and 38036, Chapter 3 (commencing with Section 38020)
and Chapter 5 (commencing with Section 38040) of Division 25, and the
grievance and appeal provisions set forth in Section 38036, Division
25.1 (commencing with Section 38050), and Article 4 (commencing with
Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of
the Government Code.
38074. (a) Cooperative agreements shall be procured by means of a
request for application or a request for proposal, whichever is
applicable, as determined by the department.
(b) A procurement by a request for application is one where the
department has funds, regardless of the source, that it seeks to
distribute to those entities or organizations specified in Section
38072, that meet the criteria and standards stated in the request for
application. A distinguishing feature of a request for application
is that, unlike a request for proposal, a request for application is
a request where multiple awards are to be made based on the
information provided in the application and evaluated against the
methodology and criteria specified in the request for application.
(c) All request for proposal cooperative agreement awards shall
comply with the requirements of Section 10344 of the Public Contract
Code.
(d) A cooperative agreement shall be for a period of up to three
years.
(e) A cooperative agreement for a one-year period may provide for
up to two annual extensions.
(f) A cooperative agreement may be procured without a request for
application or a request for proposal under either of the following
circumstances:
(1) When the amount of the cooperative agreement is less than
fifty thousand dollars ($50,000) annually. A nonprofit organization
shall receive only one of these awards during each fiscal year.
(2) When the amount of the cooperative agreement is less than two
hundred thousand dollars ($200,000) a year and from a program that
awards five or fewer grants per year.
38075. The department, at its discretion, may enter into a single
cooperative agreement with a single contractor based upon the
contractor's applications submitted in response to requests for
application from several programs.
38076. In administering cooperative agreements, the program staff
shall prepare all requests for proposals and requests for
applications, evaluate the proposals and applications received, make
the awards, and monitor progress of recipients of awards.
38077. (a) The department shall use only one or more of the
following payments systems for cooperative agreements:
(1) Allowable costs up to a maximum amount.
(2) Fixed payment per unit of service.
(3) Fixed monthly payment.
(4) Fixed price agreement.
(b) If the allowable cost payment system is used, the cooperative
agreement shall contain a line item budget for the cooperative
agreement project, and both of the following shall apply:
(1) Except as required by other funding sources, including, but
not limited to, the federal government or private foundations, the
line item budget shall specify aggregate costs for the following and
no other categories:
(A) Personnel, including, but not limited to, salary, wages, and
fringe benefits.
(B) Operating expenses, other than personnel, including, but not
limited to, rent, depreciation, use allowance, supplies, utilities,
and other operating costs.
(C) Capital expenditures to be paid for by the cooperative
agreement.
(D) Other costs as specified in the agreement.
(E) A fixed indirect cost amount or rate.
(2) A nonprofit organization or unit of state or local government
that is a party with the department in a cooperative agreement may
propose, in writing, scope of work revisions or changes. The
contractor shall be notified in writing within 30 calendar days when
proposed revisions are approved or disapproved by the department. If
written notification does not occur within this time period, the
proposed revisions or changes shall be deemed approved.
38077.3. (a) The department shall develop uniform cooperative
agreement formats containing standardized agreement language. Each
uniform format shall be developed with the participation of the
affected parties. The purpose of the uniform formats shall be to
consolidate and simplify administrative and programmatic
requirements, maintain systemwide consistency, develop procedures
that promote ease of use by clients, streamline processes, eliminate
unnecessary paperwork, and ensure fiscal accountability. Uniform
formats shall be outcome oriented and conducive to the business and
operational needs of all parties to the extent practical.
(b) For purposes of this section "standardized agreement language"
means language that constitutes terms and conditions of performance
necessitated by sound contract management and compliance practices,
including, but not limited to, payment and invoicing systems and
procedures, record management requirements, and programmatic
reporting requirements. Excluded from this definition are scopes of
work, line item budgets, funding related provisions, preprinted
generic exhibits, and cancellation or amendment clauses.
(c) The department may form working groups including
representatives of all affected parties to implement this section.
(d) After finalization of uniform cooperative agreement formats,
no unilateral change to standardized agreement language may be
implemented without making the changes available for public comment.
These changes include changes caused by programmatic decisions,
control agency requirements, and administrative needs.
(e) Nothing in this section shall be construed to prevent or delay
changes necessitated by state or federal statute or regulations.
38078. All of the following shall apply to cooperative agreements:
(a) The department or contractor may terminate, upon a minimum of
30 days written notice, any cooperative agreement.
(b) The department may reject a request for proposal or a request
for application response based on an entity's or organization's
failure to comply with contracted requirements in prior contracts or
cooperative agreements with the department.
(c) The organization or unit of state and local government shall
be liable to return any funds for failure to comply with the
requirements of the cooperative agreement.
38078.5. (a) A cooperative agreement involving the purchase of
electronic data processing hardware, software, or services, or
telecommunication goods and services, up to a purchase amount of
fifty thousand dollars ($50,000), shall be exempt from Chapter 3
(commencing with Section 12100) and Chapter 3.5 (commencing with
Section 12120) of Part 2 of Division 2 of the Public Contract Code,
and from Part 1 (commencing with Section 11000) of Division 3 of
Title 2 of the Government Code.
(b) A cooperative agreement with a unit of local or state
government that requires the purchase of capital equipment shall
utilize the contractor's existing procurement systems for the
purchase of equipment.
(c) A cooperative agreement with a nonprofit organization that
provides for capital expenditures as part of a line item budget shall
utilize a procurement system for the purchase of equipment under a
cooperative agreement that meets the following standards:
(1) The nonprofit organization shall maintain a code or standard
of conduct that shall govern the performance of its officers,
employees, or agents engaged in awarding procurement contracts. No
employee, officer, or agent shall participate in the selection,
award, or administration of a procurement contract in which, to his
or her knowledge, he or she has a financial interest.
(2) Procurements shall be conducted in a manner that provides, to
the maximum extent practical, open and free competition.
(3) Procurements shall be conducted in a manner that provides for
all of the following:
(A) Avoidance of the purchasing of unnecessary or duplicate items.
(B) Solicitation for capital expenditures based upon a clear and
accurate description of the technical requirements of the capital
goods to be procured.
(C) The taking of positive steps to utilize small, minority,
women, or veteran owned businesses.
(d) Notwithstanding subdivisions (a), (b), and (c), the Director
of General Services may exempt from those requirements any purchases
in excess of fifty thousand dollars ($50,000) annually of capital
equipment, and electronic data processing and telecommunications
goods and services made under a cooperative agreement for which, in
his or her judgment, the exemption is appropriate and in the best
interests of the state. Written notice of an exemption shall be given
to the Controller.
(e) Subdivision (a) shall become inoperative on June 30, 1997.
38079. (a) All cooperative agreements, regardless of the size of
the contracting nonprofit organization, are subject to the late
payment provisions in Section 927.6 of the Government Code.
(b) In implementing this division, the department shall have the
authority of, and be subject to, the provisions set forth in Chapter
2 (commencing with Section 124475) of Part 4 of Division 106, except
that those provisions apply to all cooperative agreements, not only
those agreements with clinics. However, notwithstanding Section
124500, moneys in the Clinic Revolving Fund of the State Department
of Health Services shall be used for purposes of this division only
upon appropriation of funds by the Legislature for that purpose.
38080. When the department awards a cooperative agreement pursuant
to Section 38074, prior to execution of the agreement, the department
may do the following:
(a) Certify to the Controller that a cooperative agreement has
been awarded, the name of the organization or agency to which the
award has been made, the amount approved by the department for
funding the cooperative agreement, and any other information as may
be required by the Controller.
(b) Present a claim to the Controller for payment to the
organization or agency, from an appropriation available for such
purpose, of an amount not exceeding 25 percent of the funding
approved for the cooperative agreement.
38081. (a) Provisions shall be included in any invitation for bid
or request for proposal issued and in any contract executed on or
after January 1, 1996, in an amount that exceeds two hundred fifty
thousand dollars ($250,000) by the State Department of Health
Services, to permit the substitution of securities for any moneys
withheld to ensure performance under a service or consulting service
contract, provided that substitution of securities provisions shall
not be required where federal regulations or policies, or both, do
not allow the substitution of securities. At the request and expense
of the contractor, securities equivalent to the amount withheld shall
be deposited with the state department, or with a state or federally
chartered bank in California as the escrow agent, who shall then pay
the moneys to the contractor. Upon satisfactory completion of the
contract, the securities shall be returned to the contractor.
(b) Alternatively, the contractor may request and the state
department shall make payment of retentions earned directly to the
escrow agent at the expense of the contractor. At the expense of the
contractor, the contractor may direct the investment of the payments
into securities and the contractor shall receive the interest earned
on the investments upon the same terms provided for in this section
for securities deposited by the contractor. Upon satisfactory
completion of the contract, the contractor shall receive from the
escrow agent all securities, interest, and payments received by the
escrow agent from the state department, pursuant to the terms of this
section. The contractor shall pay to each subcontractor, not later
than 20 days of receipt of the payment, the respective amount of
interest earned, net of costs attributed to retention withheld from
each subcontractor, on the amount of retention withheld to insure the
performance of the contractor.
(c) Securities eligible for investment under this section shall
include those listed in Section 16430 of the Government Code, bank or
savings and loan certificates of deposit, interest bearing demand
deposit accounts, standby letters of credit, or any other security
mutually agreed to by the contractor and the state department.
The contractor shall be the beneficial owner of any securities
substituted for moneys withheld and shall receive any interest
thereon.
Failure to include these provisions in bid and contract documents
shall void any provisions for performance retentions in an affected
contract.
38081.1. (a) Cooperative agreements shall be subject to review and
approval by the Department of General Services pursuant to Chapter 2
(commencing with Section 10290) of Part 2 of Division 2 of the Public
Contract Code, except as follows:
(1) Changes in the scope of work approved under paragraph (2) of
subdivision (b) of Section 38077.
(2) For allowable cost agreements, changes in line item budgets of
up to 15 percent of the annual total, not to exceed one hundred
thousand dollars ($100,000), so long as the contract total does not
increase or decrease. This maximum amount shall be assessed annually
and automatically adjusted in accordance with cost-of-living indexes.
(3) Agreements, and amendments to those agreements, under programs
expressly exempted from the review and approval of the Department of
General Services pursuant to statute, including, but not limited to,
those exemptions granted prior to January 1, 1994.
(b) (1) A nonprofit organization or governmental agency that is
awarded a cooperative agreement shall not be subject to the minority
and women business and disabled veterans participation goals set
forth in Article 1.5 (commencing with Section 10115 of Chapter 1 of
Part 2 of Division 2 of the Public Contract Code with respect to that
portion of the cooperative agreement budget that is for personnel
related costs of the cooperative agreement, as determined by the
department.
(2) A nonprofit organization or governmental agency that is
awarded a cooperative agreement shall also be exempt from the
participation goals described in paragraph (1) when the cooperative
agreement meets any of the following criteria:
(A) The amount of the cooperative agreement is one hundred
thousand dollars ($100,000) or less annually.
(B) In the case of a nonprofit organization, the nonprofit
organization to be awarded the cooperative agreement has a board of
directors of which at least 51 percent of the members are any
combination of women, minorities, and disabled veterans.
(C) Cooperative agreements that result from requests for
application.
(c) The Director of General Services may exempt from his or her
approval or from approval of the department any cooperative
agreements for which, in his or her judgment, the exemption is
appropriate and in the best interests of the state. Written notice of
an exemption shall be given to the Controller.
(d) Subdivision (b) shall become inoperative on June 30, 1997.
38070. This act shall be known and may be cited as the State
Department of Health Services Cooperative Agreement Act.
38071. The purposes of this division are:
(a) To simplify the administration of public health programs by
the State Department of Health Services.
(b) To reduce the administrative cost of public health programs to
the department.
(c) To encourage units of state and local government and nonprofit
organizations to attempt bold new solutions to local public health
problems.
38072. For purposes of this division, the following definitions
shall apply:
(a) "Cooperative agreement" means an agreement between the
department and a unit of local government, any other unit of state
government, or a nonprofit organization that provides for a contract
under any of the following programs:
(1) California AIDS Program (Chapter 2 (commencing with Section
120800) of Part 4 of Division 105).
(2) Health of Seasonal Agricultural and Migratory Workers (Chapter
3 (commencing with Section 124550) of Part 4 of Division 106).
(3) American Indian Health Services (Chapter 4 (commencing with
Section 124575) of Part 4 of Division 106).
(4) Rural Health Services Development (Chapter 5 (commencing with
Section 124600) of Part 4 of Division 106).
(5) Grants-In-Aid for Clinics (Article 1 (commencing with Section
124875) of Chapter 7 of Part 4 of Division 106).
(6) Expanded Access to Primary Care (Article 2 (commencing with
Section 124900) of Chapter 7 of Part 4 of Division 106).
(7) Birth Defects Monitoring Program (Chapter 1 (commencing with
Section 103825) of Part 2 of Division 102).
(8) Maternal and child health programs, including, but not limited
to, Article 5 (commencing with Section 123800) of Chapter 3 of Part
2 of Division 106 and as set forth in subdivision (c) of Section 27.
(9) Special Supplemental Food Program for Women, Infants, and
Children (Article 2 (commencing with Section 123275) of Chapter 1 of
Part 2 of Division 106).
(10) Perinatal Health Care (Article 4 (commencing with Section
123550) of Chapter 2 of Part 2 of Division 106).
(11) Family planning services (Section 14503 of the Welfare and
Institutions Code).
(12) Hereditary Disorders Programs (subdivision (b) of Section
27).
(13) Other public health programs for the protection,
preservation, and advancement of public health authorized pursuant to
Section 100185 or pursuant to an annual Budget Act provision.
(b) "Department" means the State Department of Health Services.
38073. The department shall comply with Sections 38030, 38031,
38032, 38035, and 38036, Chapter 3 (commencing with Section 38020)
and Chapter 5 (commencing with Section 38040) of Division 25, and the
grievance and appeal provisions set forth in Section 38036, Division
25.1 (commencing with Section 38050), and Article 4 (commencing with
Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of
the Government Code.
38074. (a) Cooperative agreements shall be procured by means of a
request for application or a request for proposal, whichever is
applicable, as determined by the department.
(b) A procurement by a request for application is one where the
department has funds, regardless of the source, that it seeks to
distribute to those entities or organizations specified in Section
38072, that meet the criteria and standards stated in the request for
application. A distinguishing feature of a request for application
is that, unlike a request for proposal, a request for application is
a request where multiple awards are to be made based on the
information provided in the application and evaluated against the
methodology and criteria specified in the request for application.
(c) All request for proposal cooperative agreement awards shall
comply with the requirements of Section 10344 of the Public Contract
Code.
(d) A cooperative agreement shall be for a period of up to three
years.
(e) A cooperative agreement for a one-year period may provide for
up to two annual extensions.
(f) A cooperative agreement may be procured without a request for
application or a request for proposal under either of the following
circumstances:
(1) When the amount of the cooperative agreement is less than
fifty thousand dollars ($50,000) annually. A nonprofit organization
shall receive only one of these awards during each fiscal year.
(2) When the amount of the cooperative agreement is less than two
hundred thousand dollars ($200,000) a year and from a program that
awards five or fewer grants per year.
38075. The department, at its discretion, may enter into a single
cooperative agreement with a single contractor based upon the
contractor's applications submitted in response to requests for
application from several programs.
38076. In administering cooperative agreements, the program staff
shall prepare all requests for proposals and requests for
applications, evaluate the proposals and applications received, make
the awards, and monitor progress of recipients of awards.
38077. (a) The department shall use only one or more of the
following payments systems for cooperative agreements:
(1) Allowable costs up to a maximum amount.
(2) Fixed payment per unit of service.
(3) Fixed monthly payment.
(4) Fixed price agreement.
(b) If the allowable cost payment system is used, the cooperative
agreement shall contain a line item budget for the cooperative
agreement project, and both of the following shall apply:
(1) Except as required by other funding sources, including, but
not limited to, the federal government or private foundations, the
line item budget shall specify aggregate costs for the following and
no other categories:
(A) Personnel, including, but not limited to, salary, wages, and
fringe benefits.
(B) Operating expenses, other than personnel, including, but not
limited to, rent, depreciation, use allowance, supplies, utilities,
and other operating costs.
(C) Capital expenditures to be paid for by the cooperative
agreement.
(D) Other costs as specified in the agreement.
(E) A fixed indirect cost amount or rate.
(2) A nonprofit organization or unit of state or local government
that is a party with the department in a cooperative agreement may
propose, in writing, scope of work revisions or changes. The
contractor shall be notified in writing within 30 calendar days when
proposed revisions are approved or disapproved by the department. If
written notification does not occur within this time period, the
proposed revisions or changes shall be deemed approved.
38077.3. (a) The department shall develop uniform cooperative
agreement formats containing standardized agreement language. Each
uniform format shall be developed with the participation of the
affected parties. The purpose of the uniform formats shall be to
consolidate and simplify administrative and programmatic
requirements, maintain systemwide consistency, develop procedures
that promote ease of use by clients, streamline processes, eliminate
unnecessary paperwork, and ensure fiscal accountability. Uniform
formats shall be outcome oriented and conducive to the business and
operational needs of all parties to the extent practical.
(b) For purposes of this section "standardized agreement language"
means language that constitutes terms and conditions of performance
necessitated by sound contract management and compliance practices,
including, but not limited to, payment and invoicing systems and
procedures, record management requirements, and programmatic
reporting requirements. Excluded from this definition are scopes of
work, line item budgets, funding related provisions, preprinted
generic exhibits, and cancellation or amendment clauses.
(c) The department may form working groups including
representatives of all affected parties to implement this section.
(d) After finalization of uniform cooperative agreement formats,
no unilateral change to standardized agreement language may be
implemented without making the changes available for public comment.
These changes include changes caused by programmatic decisions,
control agency requirements, and administrative needs.
(e) Nothing in this section shall be construed to prevent or delay
changes necessitated by state or federal statute or regulations.
38078. All of the following shall apply to cooperative agreements:
(a) The department or contractor may terminate, upon a minimum of
30 days written notice, any cooperative agreement.
(b) The department may reject a request for proposal or a request
for application response based on an entity's or organization's
failure to comply with contracted requirements in prior contracts or
cooperative agreements with the department.
(c) The organization or unit of state and local government shall
be liable to return any funds for failure to comply with the
requirements of the cooperative agreement.
38078.5. (a) A cooperative agreement involving the purchase of
electronic data processing hardware, software, or services, or
telecommunication goods and services, up to a purchase amount of
fifty thousand dollars ($50,000), shall be exempt from Chapter 3
(commencing with Section 12100) and Chapter 3.5 (commencing with
Section 12120) of Part 2 of Division 2 of the Public Contract Code,
and from Part 1 (commencing with Section 11000) of Division 3 of
Title 2 of the Government Code.
(b) A cooperative agreement with a unit of local or state
government that requires the purchase of capital equipment shall
utilize the contractor's existing procurement systems for the
purchase of equipment.
(c) A cooperative agreement with a nonprofit organization that
provides for capital expenditures as part of a line item budget shall
utilize a procurement system for the purchase of equipment under a
cooperative agreement that meets the following standards:
(1) The nonprofit organization shall maintain a code or standard
of conduct that shall govern the performance of its officers,
employees, or agents engaged in awarding procurement contracts. No
employee, officer, or agent shall participate in the selection,
award, or administration of a procurement contract in which, to his
or her knowledge, he or she has a financial interest.
(2) Procurements shall be conducted in a manner that provides, to
the maximum extent practical, open and free competition.
(3) Procurements shall be conducted in a manner that provides for
all of the following:
(A) Avoidance of the purchasing of unnecessary or duplicate items.
(B) Solicitation for capital expenditures based upon a clear and
accurate description of the technical requirements of the capital
goods to be procured.
(C) The taking of positive steps to utilize small, minority,
women, or veteran owned businesses.
(d) Notwithstanding subdivisions (a), (b), and (c), the Director
of General Services may exempt from those requirements any purchases
in excess of fifty thousand dollars ($50,000) annually of capital
equipment, and electronic data processing and telecommunications
goods and services made under a cooperative agreement for which, in
his or her judgment, the exemption is appropriate and in the best
interests of the state. Written notice of an exemption shall be given
to the Controller.
(e) Subdivision (a) shall become inoperative on June 30, 1997.
38079. (a) All cooperative agreements, regardless of the size of
the contracting nonprofit organization, are subject to the late
payment provisions in Section 927.6 of the Government Code.
(b) In implementing this division, the department shall have the
authority of, and be subject to, the provisions set forth in Chapter
2 (commencing with Section 124475) of Part 4 of Division 106, except
that those provisions apply to all cooperative agreements, not only
those agreements with clinics. However, notwithstanding Section
124500, moneys in the Clinic Revolving Fund of the State Department
of Health Services shall be used for purposes of this division only
upon appropriation of funds by the Legislature for that purpose.
38080. When the department awards a cooperative agreement pursuant
to Section 38074, prior to execution of the agreement, the department
may do the following:
(a) Certify to the Controller that a cooperative agreement has
been awarded, the name of the organization or agency to which the
award has been made, the amount approved by the department for
funding the cooperative agreement, and any other information as may
be required by the Controller.
(b) Present a claim to the Controller for payment to the
organization or agency, from an appropriation available for such
purpose, of an amount not exceeding 25 percent of the funding
approved for the cooperative agreement.
38081. (a) Provisions shall be included in any invitation for bid
or request for proposal issued and in any contract executed on or
after January 1, 1996, in an amount that exceeds two hundred fifty
thousand dollars ($250,000) by the State Department of Health
Services, to permit the substitution of securities for any moneys
withheld to ensure performance under a service or consulting service
contract, provided that substitution of securities provisions shall
not be required where federal regulations or policies, or both, do
not allow the substitution of securities. At the request and expense
of the contractor, securities equivalent to the amount withheld shall
be deposited with the state department, or with a state or federally
chartered bank in California as the escrow agent, who shall then pay
the moneys to the contractor. Upon satisfactory completion of the
contract, the securities shall be returned to the contractor.
(b) Alternatively, the contractor may request and the state
department shall make payment of retentions earned directly to the
escrow agent at the expense of the contractor. At the expense of the
contractor, the contractor may direct the investment of the payments
into securities and the contractor shall receive the interest earned
on the investments upon the same terms provided for in this section
for securities deposited by the contractor. Upon satisfactory
completion of the contract, the contractor shall receive from the
escrow agent all securities, interest, and payments received by the
escrow agent from the state department, pursuant to the terms of this
section. The contractor shall pay to each subcontractor, not later
than 20 days of receipt of the payment, the respective amount of
interest earned, net of costs attributed to retention withheld from
each subcontractor, on the amount of retention withheld to insure the
performance of the contractor.
(c) Securities eligible for investment under this section shall
include those listed in Section 16430 of the Government Code, bank or
savings and loan certificates of deposit, interest bearing demand
deposit accounts, standby letters of credit, or any other security
mutually agreed to by the contractor and the state department.
The contractor shall be the beneficial owner of any securities
substituted for moneys withheld and shall receive any interest
thereon.
Failure to include these provisions in bid and contract documents
shall void any provisions for performance retentions in an affected
contract.
38081.1. (a) Cooperative agreements shall be subject to review and
approval by the Department of General Services pursuant to Chapter 2
(commencing with Section 10290) of Part 2 of Division 2 of the Public
Contract Code, except as follows:
(1) Changes in the scope of work approved under paragraph (2) of
subdivision (b) of Section 38077.
(2) For allowable cost agreements, changes in line item budgets of
up to 15 percent of the annual total, not to exceed one hundred
thousand dollars ($100,000), so long as the contract total does not
increase or decrease. This maximum amount shall be assessed annually
and automatically adjusted in accordance with cost-of-living indexes.
(3) Agreements, and amendments to those agreements, under programs
expressly exempted from the review and approval of the Department of
General Services pursuant to statute, including, but not limited to,
those exemptions granted prior to January 1, 1994.
(b) (1) A nonprofit organization or governmental agency that is
awarded a cooperative agreement shall not be subject to the minority
and women business and disabled veterans participation goals set
forth in Article 1.5 (commencing with Section 10115 of Chapter 1 of
Part 2 of Division 2 of the Public Contract Code with respect to that
portion of the cooperative agreement budget that is for personnel
related costs of the cooperative agreement, as determined by the
department.
(2) A nonprofit organization or governmental agency that is
awarded a cooperative agreement shall also be exempt from the
participation goals described in paragraph (1) when the cooperative
agreement meets any of the following criteria:
(A) The amount of the cooperative agreement is one hundred
thousand dollars ($100,000) or less annually.
(B) In the case of a nonprofit organization, the nonprofit
organization to be awarded the cooperative agreement has a board of
directors of which at least 51 percent of the members are any
combination of women, minorities, and disabled veterans.
(C) Cooperative agreements that result from requests for
application.
(c) The Director of General Services may exempt from his or her
approval or from approval of the department any cooperative
agreements for which, in his or her judgment, the exemption is
appropriate and in the best interests of the state. Written notice of
an exemption shall be given to the Controller.
(d) Subdivision (b) shall become inoperative on June 30, 1997.
