Adverse Action Affecting Vendor or Local Agency Participation.

(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:

(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.