Ed. Code, § 51827

(a) On or before July 1, 2027, the governing board of a school district or educational joint powers authority, the governing body of a charter school, or the county superintendent of schools shall adopt a policy for the local educational agency to comply with in order to evaluate and approve contractors. The policy shall include all of the following provisions:

(1) A local educational agency shall not expend public funds for a contract unless the materials, programs, and activities are nonsectarian and comply with nondiscrimination provisions of state and federal law.

(2) A local educational agency shall not expend public funds for a contract that pays for tuition or fees for a pupil at a private school that has filed an affidavit pursuant to Section 33190, except if required pursuant to a pupil’s individualized education program.

(3) (A) Financial payments or gifts shall not be offered by a local educational agency to a pupil, prospective pupil, or a pupil’s parent, guardian, or relative as an incentive for enrollment, referral, or retention.

(B) A local educational agency shall not offer any financial incentives to employees to manipulate or falsify pupil attendance records and reports. Nothing in this subparagraph is intended to prohibit a local educational agency from offering financial incentives to employees for activities to encourage pupil engagement and reengagement of chronically absent pupils, including, but not limited to, home visits.

(4) For a nonclassroom-based charter school, contracts shall itemize costs attributed to credentialed staff, administrative staff, and instruction and related services with sufficient detail to determine a qualifying expense for purposes of a funding determination.

(5) A local educational agency shall ensure contracts reflect a reasonable market value.

(6) A local educational agency shall not purchase or contract for annual and season passes or membership to amusement or theme parks, zoos, or family entertainment activities, except that a local educational agency may purchase or contract for single-use admission, meals, and transportation that is aligned with educational opportunities and assignments by teachers, or for graduation, school celebrations, or co-curricular activities.

(7) (A) A local educational agency shall only contract with an entity that has a business license or business certificate, where applicable, and that has appropriate insurance, for the service being offered. Government agencies are not required to have a business license.

(B) Notwithstanding subparagraph (A), this paragraph shall not apply to either of the following:

(i) Local educational agency contracts with a family daycare home, as defined in Section 1596.78 of the Health and Safety Code, that possess a valid Family Child Care Home license issued by the State Department of Social Services and that is compliant with Section 1597.531 of the Health and Safety Code.

(ii) Contracts between a local educational agency serving as an alternative payment program provider pursuant to Chapter 3 (commencing with Section 10225) of Part 1.8 of Division 9 of the Welfare and Institutions Code and any license-exempt provider, as described in subdivision (d) or (f) of Section 1596.792 of the Health and Safety Code.

(8) A local educational agency shall not contract with a pupil or a pupil’s parent, guardian, or relative for services provided exclusively to that pupil, except for any of the following persons who are compensated by the local educational agency to provide school-related transportation for a pupil:

(A) A parent or legal guardian.

(B) A relative, as defined in paragraph (2) of subdivision (c) of Section 361.3 of the Welfare and Institutions Code, or a nonrelative extended family member, as defined in Section 362.7 of the Welfare and Institutions Code.

(C) A court-appointed educational rights holder.

(D) A court-appointed special advocate.

(9) A local educational agency shall not reimburse parents or guardians for any activities or services. This paragraph does not prohibit a local educational agency from reimbursing parents or guardians for activities or services for pupils with disabilities pursuant to an individualized education program and required by a legal settlement or agreement.

(10) A contractor who interacts with pupils outside the immediate supervision and control of a school employee shall have policies and procedures related to pupil and site safety, including in virtual settings, emergency response, and accident reporting that are reasonable for the instruction or activity.

(11) Contractor personnel interacting with pupils shall have a valid criminal records summary as described in Section 45125.1.

(12) As part of a contract with a local educational agency, contractors shall provide evidence of qualification and expertise for the activities to be provided, in accordance with policies of the governing board or body of the local educational agency.

(13) As part of a contract with a local educational agency, contractors shall not charge fees to a pupil or the pupil’s parent or legal guardian, except as otherwise authorized for any of the following:

(A) California state preschool programs, as specified in Section 8252.

(B) The 21st Century High School After School Safety and Enrichment for Teens (High School ASSETs) program established pursuant to Article 19 (commencing with Section 8420) of Chapter 2 of Part 6 of Division 1 of Title 1.

(C) The After School Education and Safety Program pursuant to Article 22.5 (commencing with Section 8482) of Chapter 2 of Part 6 of Division 1 of Title 1.

(D) Expanded learning opportunity programs pursuant to Section 46120.

(E) Schoolage childcare programs, as specified in Section 1596.793 of the Health and Safety Code.

(F) Childcare programs, as specified in Section 10290 of the Welfare and Institutions Code.

(b) Auditing the approval of, and compliance with, policies enacted in accordance with subdivision (a) shall be included in the audit guide, Standards and Procedures for Audits of California K-12 Local Educational Agencies, described in Section 14502.1.

(c) This section does not supersede or invalidate a contract that is in effect on or before July 1, 2027. If a contract is in effect on or before July 1, 2027, the contract shall remain in effect until the expiration of the contract or the parties to the agreement negotiate a successor agreement that will be operative after July 1, 2027, that complies with this section. A local educational agency shall not enter into a contract or make an amendment or other ancillary agreement to an existing contract on or after the effective date of the act adding this section that would be operative after July 1, 2027, unless it would comply with this section.

(d) For purposes of this section, “local educational agency” means a school district, educational joint powers authority, county office of education, or charter school.