1. (a) Adverse action affecting vendor participation means a civil money penalty, denial of authorization, disqualification from the Program, or Departmental termination of the vendor agreement. The following shall not constitute an adverse action:

   1. (1) Expiration of an agreement with a vendor.
   2. (2) Departmental termination from the Program of a vendor that has received a final determination by the USDA of termination from the Food Stamp Program.
   3. (3) A claim for reimbursement from a vendor.
2. (b) Adverse action affecting local agency participation means denial of an agency's application to participate, disqualification of an agency during the course of a contract agreement, or issuance of a written demand for repayment of costs determined to be unallowable pursuant to a fiscal audit. Expiration of a contract with a local agency shall not constitute an adverse action.

Note: Authority cited: Sections 123280, 123290 and 123355, Health and Safety Code. Reference: Section 123355, Health and Safety Code; and Title 7 Code of Federal Regulations Sections 246.12 and 246.18.

History

1. New section filed 8-23-89; operative 8-23-89 (Register 89, No. 38).

2. Amendment of section heading, section and Note filed 4-17-2007; operative 5-17-2007 (Register 2007, No. 16).