Section 7213.2 - Suspension or Termination of a Vendor's Operating Agreement(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Blind (BEP) shall suspend or terminate a vendor's operating agreement when: (1) The Permit for the vending facility is withdrawn by the contracting agency;(2) The vendor vacates the vending facility;(3) The vendor's license is suspended or terminated, in accordance with Section 7213.1 of these regulations; or(4) Good cause exists as specified in Section 7213.3 of these regulations.(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:(1) By certified mail, return receipt requested, to the current mailing address provided to the BEP Manager in accordance with Section 7213(c) of these regulations; or(2) By personal service on the licensee or vendor.(d) The notice of intent to suspend or terminate the operating agreement shall specify all of the following: (1) The primary site and satellite site(s) of a vending facility, as defined in Section 7211(a)(36) and (a)(38) of these regulations, respectively, that are affected.(2) The grounds that constitute good cause for suspension or termination of the operating agreement, consistent with subsection (b) herein.(3) The facts upon which the suspension or termination are based.(4) The length of the suspension, if the notice is of a suspension.(5) The effective date of the suspension or termination.(6) The right of the vendor to an administrative review and a full evidentiary hearing, as provided for in Sections 7227.1 and 7227.2 of these regulations, respectively.(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: (1) Demonstrate that the deficiency or deficiencies leading to the suspension have been fully corrected to the satisfaction of the BEP Manager and the contracting agency; or(2) Vacate the vending facility within 15 working days of the effective date of the decision.(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.Cal. Code Regs. Tit. 9, § 7213.2
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.
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).