California Code of Regulations › Title 22 - Social Security › Division 2 - Department of Social Services-Department of Health Services › Part 2 - Health and Welfare Agency-Department of Health Services Regulations › Subdivision 6 - Preventive Medical Services › Chapter 6 - California Special Supplemental Food Program for Women, Infants and Children › Article 7 - Food Delivery System › Section 40747 - Vendors Claims and Vendor Repayment to the State

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A vendor that has been determined by the
						Department to be in violation of this Chapter identified during monitoring, as
						specified in Section
						40743, shall be subject to a
						vendor claim and shall reimburse the Program for any Program funds so received.
						The Program shall notify the vendor in writing of the vendor claim. A vendor
						shall reimburse said monies prior to being reauthorized to participate in the
						Program. However, a vendor may be reauthorized to participate in the Program
						prior to full reimbursement of said monies if the Department determines that
						the vendor is meeting its reimbursement obligations in amounts and according to
						the repayment schedule established by the Department.
(b) A vendor claim shall be either the full
						amount of an audit finding determined during an audit of a vendor or the amount
						of the full purchase price of any food instrument transacted in violation of
						this Chapter as identified during a compliance buy or on-site
						inspection.
(c) Assessment of a
						vendor claim shall be in addition to sanctions imposed for Program violations
						as specified in Sections
						40740 and
						40741. Dispute of a vendor claim
						shall not be subject to appeal or administrative review as described in
						Sections 40751 or
						40752 of this Article. However,
						vendors shall have the opportunity to dispute a vendor claim as specified in
						subsection (d) of this Section.
(d)
						The vendor shall be provided an opportunity to dispute a vendor claim by
						submitting to the Program a written explanation of the dispute, that states the
						issues in dispute, evidence to support the vendor's position, and the desired
						resolution. The vendor shall submit the written explanation of the dispute
						within 30 calendar days from the date of the vendor's receipt of the vendor
						claim. The Program address for submitting disputes regarding a vendor claim
						will be provided in the Program's written notice to the vendor of the vendor
						claim.
(e) Any written explanation
						disputing the vendor claim received by the Program after the time period
						specified in subsection (d) of this Section shall be denied and the vendor
						claim deemed by the Program as due and payable from the vendor.
(f) The Department's Director or designee
						shall review and issue a written decision as to the resolution of the dispute
						of a vendor claim. In the following instances, the issuance of the decision
						shall be deferred until the amount of the vendor claim is determined by any
						final administrative decision, as specified in this Chapter, or court ruling:
(1) If an audit finding results in a
						disqualification of a vendor based on a violation of Section
						40740(e)(2);
						or
(2) For a dispute of a vendor
						claim based on payment of a food instrument transacted in violation of Program
						regulations as identified during a compliance buy or on-site
						inspection.