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 7213.3 - Good Cause for Suspension or Termination of a License or Operating Agreement

Universal Citation: 9 CA Code of Regs 7213.3

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) For purposes of this section, the DR 468, Vending Facility License (Rev. 07/07), incorporated by reference herein, shall be referred to as the "license" and Vendor's Operating Agreement, as defined in Section 7211(a)(60), shall be referred to as the "operating agreement."

(b) Good cause for termination of a licensee's license is that the licensee no longer meets the eligibility requirements to apply for participation in the Business Enterprises Program for the Blind (BEP) established in Section 7212(a) of these regulations.

(c) Any of the following conditions shall be considered good cause for suspension or termination of a vendor's license or operating agreement:

(1) The vendor no longer meets the eligibility requirements to apply for participation in the BEP established in Section 7212(a) of these regulations.

(2) The vendor abandons his or her vending facility or, for two or more sites that have been combined or consolidated into a vending facility, the vendor abandons any one of those sites. A vending facility site shall be considered abandoned when it is closed for three consecutive working days and no services are provided, and/or it is closed without approval from the BEP Manager.

(3) The vendor fails to operate his or her vending facility in accordance with applicable federal law (20 USC section 107 et seq.), federal regulations (34 CFR Part 395), state law (Welfare and Institutions Code section 19625 et seq.), state regulations (California Code of Regulations (CCR), Title 9, Section 7210 et seq.), or with applicable Health and Safety Codes.

(4) The vendor fails to operate his or her vending facility in accordance with the terms and conditions of the Permit defined in Section 7211(a)(35) of these regulations, or the Vendor's Operating Agreement defined in Section 7211(a)(60) of these regulations.

(5) The vendor fails to personally manage his or her vending facility by a continuing presence at the vending facility, as required by Section 7220(a) of these regulations.

(6) The vendor willfully or maliciously destroys, or fails to exercise necessary care for, equipment furnished by the BEP or the contracting agency named in the Permit.

(d) Any of the following acts by a vendor whose conduct interferes with any aspect of the operation of his or her vending facility is good cause for suspension or termination of a vendor's license or operating agreement. These acts include, but are not limited to, the following:

(1) Conviction of fraud during licensure.

(2) Intoxication on the vending facility premises.

(3) Neglect of any of the duties required by these regulations.

(4) Failure to file the DR 478, Vendor's Monthly Operating Report (Rev. 06/16), incorporated by reference herein, in accordance with these regulations.

(5) Failure to submit to a medical examination provided in Welfare and Institutions Code section 19632, subdivision (a) of this section when requested by the BEP.

(6) Using a facility or allowing others to use a vending facility for unlawful activities.

(7) Using the facility for purposes not expressly authorized in the Permit, as defined in Section 7211(a)(35) of these regulations.

(8) Filing false or misleading DR 478, Vendor's Monthly Operating Report (Rev. 06/16).

(9) Allowing the DR 468, Vending Facility License (Rev. 07/07) to be suspended under conditions specified in Section 7213.3 of these regulations and failing to apply for reinstatement in accordance with Section 7213.6 of these regulations.

(e) A vendor's failure to pay any of the following is good cause for suspension or termination of a vendor's license or operating agreement, if unpaid for more than 90 days from the date in which payment is due:

(1) Liability or workers' compensation insurance as required by the BEP.

(2) Set-aside fees, as defined in Section 7211(a)(42) of these regulations.

(3) Penalty charges on delinquent set-aside fees, in accordance with Section 7221(a) of these regulations.

(f) A vendor's failure to prepare and maintain records required by Section 7220 (l) of these regulations, make records or financial reports relating to the operation of his or her vending facility available within 15 calendar days of receipt of a written request from BEP or Department staff, or failure to cooperate with BEP or Department staff during the conduct of an audit or any other matters relating to the vending facility shall be good cause for the suspension or termination of a vendor's license or operating agreement.

1. Renumbering of former section 7225 to section 7213.3 and amendment of NOTE filed 2-4-93; operative 3-8-93 (Register 93, No. 6).
2. 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).
3. 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).
4. Amendment of subsections (d)(4) and (d)(8) 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, 19632 and 19639, Welfare and Institutions Code. Reference: 20 USC Sections 107, 107a(a)(5), 107a(b), 107a(e), 107b(3), 107b(6), and 107d-1(a); 34 CFR Sections 395.1(i), 395.1(o), 395.2, 395.3(a)(7), 395.3(a)(11)(ii), 395.5, 395.7, 395.9, 395.13, 395.16, 395.34 and 395.35; and Sections 19011, 19625, 19626, 19629, 19632 and 19635, Welfare and Institutions Code.

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