Section 40771 - Disqualification of Local Agencies(a) The Department may disqualify a local agency in the following circumstances: (1) When the Department determines noncompliance with Program regulations or the agency's agreement with the State;(2) When the Department's Program funds are insufficient to support the continued operation of all its existing local agencies at their current participation level;(3) When the Department determines, following a review of local agency credentials, that another local agency can operate the Program more effectively or efficiently;(4) When the Department determines that disqualification of the agency would conserve the fiscal interests of the State, such as when consolidation of existing local agencies serving the same geographic service area would result in Program services being provided at lower cost, or would reduce the potential for dual participation by Program participants.(b) When taking an action to disqualify a local agency, the Department shall take relevant factors into consideration, including but not limited to: (1) The availability of other community resources to participants, and the cost efficiency and cost effectiveness of the local agency in terms of food, administrative and program services costs;(2) The percentages of participants in each priority level being served by the local agency and the percentage of need being met in each participant category;(3) The relative need of the area or special population served by the local agency;(4) The local agency's place in the priority system set forth in Section 40769 of these regulations;(5) The capability of another local agency or agencies to accept the local agency's participants and to provide Program services in an efficient and effective manner;(6) The local agency's past performance in participating in other governmental programs; and(7) Whether disqualification of the local agency will decrease the potential for dual participation in the service area and thereby conserve the fiscal interests of the State.(c) When disqualifying a local agency under the Program the Department shall:(1) Make every effort to transfer affected participants to another local agency without disruption of benefits;(2) Provide the affected local agency with written notice not less than sixty (60) calendar days in advance of the pending action, including an explanation of the reasons for disqualification, the date of disqualification, and, except in cases of the expiration of a local agency's agreement, the local agency's right to appeal as set forth in Section 40781 of these regulations; and(3) Ensure that the action is not in conflict with any existing written agreements between the Department and the local agency.(d) The Department shall conduct periodic reviews of the qualifications of authorized local agencies under its jurisdiction. Based upon the results of such reviews, the Department may make appropriate adjustments among participating local agencies, including the disqualification of a local agency when the Department determines that another local agency can operate the Program more effectively and efficiently, taking into consideration the factors set forth in subsection (b) above.Cal. Code Regs. Tit. 22, § 40771
1. New section filed 8-23-89; operative 8-23-89 (Register 89, No. 38). Note: Authority cited: Sections 311 and 312, Health and Safety Code. Reference: Sections 311, 312, 318 and 319, Health and Safety Code.
1. New section filed 8-23-89; operative 8-23-89 (Register 89, No. 38).