Respondents' refusal, under Social Services Law § 95 (10) (c) and 18 NYCRR 388.4 (b), to reimburse petitioner for 50% of its costs in administering and distributing benefits under New York State's Food Assistance Program (FAP) to ineligible recipients during the period September 1997 through October 1998 was not arbitrary and capricious and was rationally based. In promulgating section 388.4 (b), which provides that local social services districts are responsible for...
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