# Recoupment of Advanced Contract Funds

(a) The State Department of Education shall recoup any payments made for costs which were not reasonable and necessary. The amount that is recouped shall be the excess payment over the reasonable or fair market value, or one hundred percent (100%) of the cost, if the cost was not necessary.&#x20;

(b) The State Department of Education may elect to recover any costs of recoupment, including collection services or attorney fees.

> NOTE: Authority cited: Sections 8265 and 8269, Education Code. Reference: Section 8269, Education Code.


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