(a)  The department, under any program established pursuant to this article, shall ensure that, at a minimum, the authorized vendor shall do all of the following:

(1)  Redeem nutrition coupons only from persons bearing appropriate identification provided by the department.

(2)  Redeem nutrition coupons for only those foods specified thereon.

(3)  Redeem nutrition coupons at an amount that is the same as, or lesser than, that charged other customers for identical foods.

(4)  Redeem and deposit nutrition coupons during specified valid periods.

(5)  Deposit the nutrition coupons directly in the vendor’s bank account and not transfer them for cash payment, credit, or any other benefit to any party other than the vendor’s bank or the state.

(6)  Maintain for a period of at least three years records that shall include, but not be limited to, all of the following:

(A)  Inventory records showing all purchases, both wholesale and retail, in the form of invoices that identify the quantity and prices of specified authorized supplemental foods.

(B)  Sales and use tax returns.

(C)  Books of account.

(D)  Other pertinent records that the department determines are necessary to substantiate the volume and prices charged to the state department through the nutrition coupons redeemed by the vendor.

(7)  Accept up to the maximum allowable department reimbursement as payment in full for the maximum allowable quantity of food listed on the food instrument.

(8)  Comply with department rules of vendor authorization, reimbursement, and monitoring that control program food costs, maximize participant access, and ensure program integrity.

(b)  The department shall adopt regulations to implement this section and Section 123310 in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of any emergency regulations on or after January 1, 2000, shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Emergency regulations adopted pursuant to this section shall remain in effect for no more than 180 days.

(Amended by Stats. 1999, Ch. 21, Sec. 3. Effective May 4, 1999.)