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 7213.4 - Disapproval or Withdrawal of Approval of a Vendor by the Contracting Agency

Universal Citation: 9 CA Code of Regs 7213.4

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

(a) A contracting agency, as defined in Section 7211(a)(12) of these regulations, may disapprove, or withdraw approval of, a vendor currently operating a vending facility on property cared for, in the custody of, or controlled by the contracting agency, but only for good cause. The Department may not orally, in writing, or by any other form of communication, instigate, initiate, or encourage a person, governing board, or legislative body having control of the property on which a vending facility is operated, to request the removal of a vendor.

(b) The contracting agency shall notify the Business Enterprises Program for the Blind (BEP) in writing of the grounds for disapproval or withdrawal of approval of a vendor and shall supply any supporting material to the BEP. The BEP Manager shall review this written notice and supporting material within three working days and determine whether there is good cause for disapproval or withdrawal of approval of a vendor.

(c) If good cause exists, the BEP shall immediately send a letter of reprimand to the vendor by certified mail with a receipt confirmation required that shall include all of the following:

(1) A copy of the original notification form and any supporting material provided by the contracting agency.

(2) A description of the acts or omissions that constitute good cause for disapproval or withdrawal of approval of the vendor, which may include one or more of the following:
(A) Failure to carry out the vendor's responsibilities as specified in Section 7220 of these regulations.

(B) Any of the conditions considered good cause, as specified in Section 7213.3 of these regulations.

(3) Identification of 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, title 9, section 7210 et seq.), and applicable Health and Safety Code requirements that have been violated.

(4) The date of removal from the vending facility.

(5) Any corrective action(s) the vendor must take which, if taken, shall allow the vendor to remain at the vending facility.

(6) The vendor's right to an administrative review and a full evidentiary hearing as provided for in Sections 7227.1 and 7227.2 of these regulations, respectively.

(d) The vendor shall have 15 working days from receipt of the letter of reprimand provided for in subsection (c) herein to correct any deficiency or deficiencies that are the basis for the reprimand. During this 15-day period, the Department shall make all reasonable efforts, as appropriate, to assist the vendor in rectifying the condition(s) upon which the letter of reprimand is based. If the vendor does not rectify the condition(s) to the satisfaction of the contracting agency, the Director of the Department shall so inform the vendor in writing, who shall vacate his or her vending facility immediately.

(e) Upon the vendor's departure, the vending facility 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.

(f) If the vendor requests an administrative review and/or a full evidentiary hearing, the vending facility may be placed into interim operation pursuant to Section 7215 of these regulations, until a final decision to approve or disapprove the vendor is rendered.

(g) Upon the vendor's departure from the vending facility, the vending facility stock (excluding equipment) shall be liquidated as follows:

(1) If title to the stock is vested in the BEP pursuant to Section 7222(a)(4) of these regulations, the Department shall be responsible for stock liquidation. The Department may sell stock it owns to the vendor of the interim vending facility or to any other vendor interested in purchasing the stock.

(2) If title to the stock is vested in the vendor, the vendor shall be responsible for stock liquidation as specified in Section 7222(a)(4) of these regulations.

(h) Disapproval or withdrawal of approval of a vendor by the contracting agency is not equivalent to suspension or termination of a vendor's DR 468, Vending Facility License (Rev. 07/07), incorporated by reference herein. However, the Department may bring an action to suspend or terminate a vendor's license, based on the facts that resulted in the disapproval or withdrawal of approval by the contracting agency, in accordance with Section 7213.1 of these regulations.

(i) The removal of a vendor from a vending facility on property cared for, in the custody of, or controlled by the contracting agency and, at the request of the contracting agency, shall not require the vendor to vacate other vending facility sites that he or she operates on property cared for, in the custody of, or controlled by a different contracting agency and shall not require a finding of ineligibility for licensing.

1. New section 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).
2. 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).

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(6) and 107d-1(a); 34 CFR Sections 395.2, 395.3(a)(7) and 395.13; and Sections 19011, 19632(c), 19632(d) and 19635, Welfare and Institutions Code.

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