California Code of Regulations
Title 9 - Rehabilitative and Developmental Services
Division 3 - Department of Rehabilitation
Chapter 6 - Business Enterprises Program for the Blind
Article 7.7 - Vending Facility Operations
Section 7220.3 - Vendor Placed on Probation

Universal Citation: 9 CA Code of Regs 7220.3

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

(a) For the purposes of this section, the DR 468, Vending Facility License (Rev. 07/07), incorporated by reference herein, shall be referred to as the "license." Only the Department may place a licensee or vendor on probation.

(b) Written notice of the intent to place a licensee or vendor on probation shall be considered properly served by one of the following two methods and shall include a declaration of service:

(1) Certified mail to the current mailing address provided to the BEP Manager by the licensee or vendor in accordance with Section 7213(c) of these regulations; or

(2) Personal service on the licensee or vendor.

(c) The notice of intent to place a licensee or vendor on probation shall specify the following:

(1) If applicable, the primary site and any satellite sites of a vendor's vending facility, as defined in Section 7211(a)(36) and (a)(38) of these regulations, respectively, that are affected.

(2) The grounds for placing the licensee or vendor on probation as specified in subdivision (e) of this section.

(3) The facts upon which placing the licensee or vendor on probation are based.

(4) The effective date of the probationary period.

(5) The length of the probationary period.

(6) The right of the licensee or vendor to an administrative review and a full evidentiary hearing, in accordance with Sections 7227.1 and 7227.2 of these regulations, respectively.

(d) Probation shall be effective 15 working days from the date of service, unless the vendor or licensee 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 probation.

(1) If a licensee or vendor appeals being placed on probation, and the Department prevails at an administrative review and/or a full evidentiary hearing, the probationary period shall commence upon the effective date of the decision.

(e) The Department may place a licensee or vendor on probation when the licensee or vendor:

(1) Fails to comply with Health and Safety Code requirements specified in this chapter.

(2) Fails to file one or more DR 478, Vendor's Monthly Operating Reports (Rev. 06/16), incorporated by reference herein, in accordance with Section 7221 of these regulations.

(3) Fails to pay financial obligations to the BEP, including, but not limited to set-aside fees, liability or workers' compensation insurance coverage, or penalties in accordance with Section 7220 or 7221 of these regulations.

(4) Fails to personally manage his or her vending facility pursuant to Section 7220(g) of these regulations.

(5) Fails to comply with any other requirements of these regulations.

(f) If the licensee or vendor does not comply with all terms and conditions of probation, the vendor's or licensee's license and/or vendor's operating agreement shall be suspended or terminated in accordance with these regulations.

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).
3. Amendment of subsection (e)(2) 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 107, 107a(a)(5), 107a(b), 107a(e), 107b(6) and 107d-1(a); 34 CFR Sections 395.2, 395.3(a)(7), 395.3(a)(11)(ii), 395.5, 395.7 and 395.13; and Sections 19011, 19625, 19632(d) and 19635, Welfare and Institutions Code.

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