California Code of Regulations
Title 9 - Rehabilitative and Developmental Services
Division 3 - Department of Rehabilitation
Chapter 6 - Business Enterprises Program for the Blind
Article 4 - Licensing
Section 7213.2 - Suspension or Termination of a Vendor's Operating Agreement
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) For the purposes of this section, Vendor's Operating Agreement, as defined in Section 7211(a)(60), shall be referred to as the "operating agreement." The suspension or termination of a vendor's operating agreement does not require that a vendor's DR 468, Vending Facility License (Rev. 07/07), incorporated by reference herein, be suspended or terminated.
(b) Upon properly served written notice of intent to suspend or terminate an operating agreement in accordance with subsection (c) herein, the Business Enterprises Program for the Blind (BEP) shall suspend or terminate a vendor's operating agreement when:
(c) Written notice of the intent to suspend or terminate an operating agreement shall be considered properly served by one of the following two methods and shall include a declaration of service:
(d) The notice of intent to suspend or terminate the operating agreement shall specify all of the following:
(e) Termination of a vendor's operating agreement shall be effective 15 working days from the date of service of the written notice of intent, unless the vendor files a request for an administrative review or a full evidentiary hearing, in accordance with Section 7227.1 or 7227.2 of these regulations, respectively, before the effective date of the termination.
(f) If a vendor operating a vending facility at only one site appeals a suspension of his or her operating agreement, and the Department prevails at an administrative review and/or a full evidentiary hearing, the vendor must either:
(g) If the vendor operates a vending facility comprised of two or more sites that have been combined or consolidated into a vending facility, and the cause for a suspension did not occur at all of those sites, subsections (f)(1) and (2) herein apply only to the site(s) where the deficiency or deficiencies leading to the suspension occurred.
(h) If a vendor operating a vending facility at only one site has his or her operating agreement terminated, and the Department prevails at an administrative review and/or a full evidentiary hearing, the vendor shall vacate the vending facility within 15 working days from the effective date of the decision. The vending facility vacated may be placed into interim operation pursuant to Section 7215 of these regulations, until such time that the vacated vending facility may be announced as available to be operated on a permanent basis.
(i) If the vendor operates a vending facility comprised of two or more sites that have been combined or consolidated into a vending facility, and the vendor is required to vacate only one of those sites due to suspension or termination of the operating agreement, the operating agreement is null and void due to this material change in the agreement, and the vendor must enter into a new operating agreement for the remaining sites that were not vacated. The vendor must submit a signed operating agreement for the remaining sites to the BEP within five working days of receiving it. Failure to submit a signed operating agreement for the remaining sites shall result in the BEP filing an action against the vendor to terminate the operating agreement.
(j) If the vendor vacates a site of a vending facility comprised of two or more sites that have been combined or consolidated into a vending facility, the site vacated shall be made available as an interim vending facility pursuant to Section 7215 of these regulations, until such time that the vacated vending facility may be announced as available to be operated on a permanent basis.
(k) A vendor whose operating agreement is terminated may apply to operate another BEP vending facility, if the vendor pays all monies owed to the BEP, including, but not limited to, set-aside fees, payment for workers' compensation and liability insurance, and penalties, and files any delinquent DR 478, Vendor's Monthly Operating Reports (Rev. 06/16), incorporated by reference herein.
1. Amendment
filed 2-10-83; designated effective 2-20-83 pursuant to Government Code Section
11346.2(d)
(Register 83, No. 7).
2. Renumbering of former section
7224 to section
7213.2 and amendment of NOTE filed
2-4-93; operative 3-8-93 (Register 93, No. 6).
3. Amendment of section
heading, repealer and new section and amendment of NOTE filed 9-22-2009; operative
upon the approval of the Secretary of the United States Department of Education, in
accordance with title 34, Code of Federal Regulations, section
395.4(a) (Register
2009, No. 39).
4. Approved by the Secretary of the United States
Department of Education in accordance with section
395.4(a) of title 34
of the Code of Federal Regulations on 6-2-2010; operative 9-15-2010 pursuant to
section 7210(b)(2) of title 9
of the California Code of Regulations (Register 2010, No. 39).
5.
Amendment of subsection (k) filed 10-18-2017; operative upon approval of the
Secretary of the United States Department of Education in accordance with title 34
of the Code of Federal Regulations section
395.4(a) (Register
2017, No. 42).
Note: Authority cited: 20 USC Section 107b(5); 34 CFR Section 395.4; and Sections 19006, 19016 and 19639, Welfare and Institutions Code. Reference: 20 USC Sections 107b(3), 107b(6) and 107d-1(a); 34 CFR Sections 395.1(o), 395.2, 395.3(a)(7), 395.9, 395.13, 395.16, 395.34 and 395.35; and Sections 19011, 19626, 19629 and 19635, Welfare and Institutions Code.
