CA AB2323

Authorizes contractors with direct service contracts for child care and development services to carry forward reimbursable expenses that exceed contract earnings to the next contract for the same program, limited to 10 percent of the maximum reimbursable amount from the original contract.

Clarifies that the department is not required to issue a new contract to continue services or increase future contract amounts based on carried forward expenses.

Maintains existing requirements that contractors must earn reimbursement by serving children and meet the number of children to be served to earn their contract under Section 8265.

Requires the department to report to specified legislative committees by January 1, 2014, on the number and percentage of contractors that carried over expenses and the amounts carried over.

Sunsets the bill's provisions on January 1, 2016, unless extended by later enacted legislation before that date.