Ed. Code, § 8231

(a) The Superintendent shall adopt rules and regulations pursuant to this chapter. The rules and regulations shall include, but not be limited to, provisions that do all of the following:

(1) Provide clear guidelines for the selection of agencies when child development contracts are let, including, but not limited to, specification that any agency headquartered in the proposed service area will be given priority for a new contract in that area, unless the department makes a written determination that (A) the agency is not able to deliver the level of services specified in the request for proposal, or (B) the department has notified the agency that it is not in compliance with the terms of its contract.

(2) Provide for a contract monitoring system to ensure that agencies expend funds received pursuant to this chapter in accordance with the provisions of their contracts.

(3) Specify adequate standards of agency performance.

(4) Establish reporting requirements for service reports, including provisions for varying the frequency with which these reports are to be submitted on the basis of agency performance.

(5) Specify standards for withholding payments to agencies that fail to submit required fiscal reports.

(6) Set forth standards for department site visits to contracting agencies, including, but not limited to, specification as to the purpose of the visits, the personnel that will perform these visits, and the frequency of these visits which shall be as frequently as staff and budget resources permit.

(7) Authorize the department to develop a process that may require every contracting agency to recompete for continued funding no less frequently than every five years.

(b) For purposes of expediting the implementation of state or federal legislation to expand preschool services, the department may do any of the following:

(1) Use an alternative application process in which the department will evaluate the ability and standing of existing contractors in determining allocation methodology and eligibility for funding.

(2) Waive the regulations regarding the point qualifications for, and the process and scoring of, applications of existing contractor applicants pursuant to Section 17723 of Title 5 of the California Code of Regulations.