Cal. WIC § 11466.35

(a) Any licensee or member of a governing board of a nonprofit who has been determined to owe a sustained overpayment under this chapter, and who, subsequent to notice of the sustained overpayment, has its rate terminated, shall be ineligible to apply or receive a rate for any future program until the overpayment is repaid. (b) A rate application shall be denied for a provider that meets either of the following conditions: (1) A provider owing a sustained overpayment under this chapter, upon the occurrence of any additional sustained overpayment, shall be ineligible to apply or receive a rate for an existing or future program until the sustained overpayments are repaid, unless a voluntary repayment agreement is approved by the department. (2) A provider incurring a sustained overpayment that constitutes more than 60 percent of the provider’s annual rate reimbursement shall be ineligible to apply or receive a rate for any existing or future programs until the sustained overpayments are repaid, unless a voluntary repayment agreement is approved by the department.