10-144-286 Me. Code R. § IV

Current through 2024-51, December 18, 2024

Section 144-286-IV - VENDOR

A. APPLICATION FOR AUTHORIZATION & VENDOR SELECTION CRITERIA

1. A vendor interested in participating in the WIC Program must complete a Vendor Application in accordance with the procedures outlined in the most recent WIC Vendor Manual

2. The State Agency will accept applications for authorization as a WIC vendor on an ongoing basis.

3. Incomplete applications will be returned to the vendor and may delay authorization.

4. In order for a vendor's application to be considered by the State Agency, the vendor must comply with the criteria listed in the most recent WIC Vendor Manual in effect at the time of application, including, but not limited to:

a. The vendor must have a minimum supply of WIC foods as defined in the most recent WIC Vendor Manual in effect at the time of application and the foods may not be out of date

b. The vendor applicant must possess a valid Food Establishment License from the Maine Department of Agriculture, Food and Rural Resources (or its equivalent from another state) or must be a Registered Pharmacy through the Maine Commission of Pharmacies (or its equivalent from another state).

c. The food vendor and food/pharmacy vendor applicant's store must include at least 1,000 square feet of space devoted to the sale of grocery items unless denial for this reason would result in inadequate participant access.

d. The food vendor and food/pharmacy vendor applicant must be currently enrolled as an authorized vendor in the Supplemental Nutrition Assistance Program

e. The vendor must be authorized to receive an ACH credit (direct deposit). The vendor must provide the State Agency a valid bank name, routing and account numbers.

f. The food vendor applicant may not expect to derive more than fifty percent of annual food sales revenue from WIC food instruments/cash value vouchers.

g. Applications for authorization as a WIC pharmacy vendor will be considered only if the State Agency determines that a need exists in the geographical area where the pharmacy applicant is located.

5. The State Agency has the right to refuse applications from new owners of stores previously disqualified from the Program or any other FNS Program if the State Agency has reason to believe that a bona fide arms length sale has not taken place.

6. Unless denying authorization of a vendor applicant would result in inadequate participant access, the State Agency may not authorize a vendor applicant that is currently disqualified from the Supplemental Nutrition Assistance Program or that has been assessed a Supplemental Nutrition Assistance Program civil money penalty for hardship and the disqualification period that would otherwise have been imposed has not expired.

7. The competitive pricing structure for the Maine WIC Nutrition Program is based on peer groups as defined in the most recent WIC Vendor Manual in effect at the time the vendor's application is reviewed. The vendor applicant's pricing must be competitive when compared to that of his/her peers.

8. A vendor applicant must be an established business, open to the public for at least one year in the current location. This condition can be waived by the State Agency for a current vendor in good standing that is adding an additional location.

9. U.S. military commissaries are exempt from the selection criteria.

10. The State Agency will consider business integrity as established in 7CFR§ 246.12(3) (iii) of the WIC Federal Regulations.

B. VENDOR AUTHORIZATION

1. If all required information meets the selection criteria and the application is approved, the State Agency will notify the vendor within thirty days from the date the completed Vendor Application is received.

2. The State Agency will conduct an on-site visit to verify that the information provided on the application is accurate. This visit can occur at any time during the application process.

3. If selected for authorization, each vendor (including each selected chain outlet) must participate in an approved form of training as defined in the most recent WIC Vendor Manual Failure to participate in the training will result in denial of the vendor application.

4. If a vendor applicant provides or furnishes false information in connection with an application for authorization, the State Agency shall deny authorization for a period of twelve months.

C. REVIEW OF QUALIFICATIONS

1. The State Agency may review each participating vendor's qualifications to be an authorized vendor at any time and as often as it deems necessary during the vendor's contract period.

2. If a current vendor provides or furnishes false information in connection with an application for authorization, the State Agency will terminate authorization for a period of twelve months.

3. In order to remain authorized, each vendor must maintain compliance with all of the vendor requirements of the WIC Program as defined in the Vendor Manual in effect at the time of the review.

4. A current vendor will receive an application for renewal of authorization thirty days before the agreement expires. The vendor must comply with application procedures as defined in the most recent WIC Vendor Manual.

D. VENDOR STAMPS

1. One vendor stamp will be provided to all WIC vendors at no charge except for self inking stamps which can be provided upon request for a fee.

2. The vendor stamp is invalid upon disqualification or voluntary withdrawal of the vendor from the Program.

3. Vendors may not duplicate vendor stamps.

E. VENDOR TRAINING

1. A Vendor and a Vendor applicant must participate in training on Program requirements and procedures as defined in the most recent WIC Vendor Manual.

F. VENDOR MONITORING

1. The State Agency shall be responsible for vendor monitoring.

2. During each fiscal year, at least five percent of all the authorized vendors (excluding high-risk vendors) will be monitored.

3. Compliance investigations will be conducted on all high-risk vendors as defined in the most recent WIC Vendor Manual in effect at the time of the investigation During each fiscal year, the State Agency will conduct compliance investigations of a minimum of five percent of the number of vendors authorized. The remainder of the required compliance investigations will be conducted on non high-risk vendors, selected in a manner determined by the State Agency.

G. VENDOR NON-COMPLIANCE

1. The Maine WIC Nutrition Program may initiate administrative action to disqualify or assess a fine against a vendor for non-compliance on the basis of one incidence of a violation or a pattern of violations. An incident is defined as one isolated event in a single point in time or any single occurrence of a violation. A pattern is defined as two or more incidences of a violation.

2. Mandatory sanctions are federal penalties as defined in the WIC Vendor Manual in effect at the time of the violation and shall constitute grounds for disqualification from the WIC Program for a minimum of one year and up to permanent disqualification.

3. State sanctions are penalties defined in the WIC Vendor Manual in effect at the time of violation and shall constitute grounds for one or more of the following: disqualification from the WIC Program; assessment of vendor fines; mandated training and submission of corrective action plans. State sanctions will not be added to a mandatory sanction within the same investigation unless a mandatory sanction from the same investigation is not upheld on appeal.

Notwithstanding the imposition of any mandatory or State sanctions, a WIC vendor who violates any of these rules, or program requirements as set forth in the Vendor Manual, is also subject to potential reciprocal Supplemental Nutrition Assistance Program sanctions, and potential disqualification as a consequence of engaging in conduct which resulted in sanctions imposed by the New Hampshire WIC Program.

H. WARNING LETTERS

1. The Maine WIC Program shall provide written notice to a vendor determined to have engaged in conduct which constitutes the initial act of a pattern of conduct subject to sanctions, unless such notification would compromise the integrity of a pending Departmental investigation.

I. PROSECUTION AND FINES

1. A vendor committing fraud or abuse of the WIC Program is liable to prosecution under applicable federal, state or local laws.

J. CIVIL MONEY PENALTY

1. In the event that the State Agency determines that disqualification of a vendor would result in inadequate participant access and the Maine WIC Program does not authorize a new WIC vendor(s) or otherwise devise a plan to meet participant access needs, the State Agency shall impose a civil monetary penalty in lieu of disqualification where allowed by law.

2. The method used to calculate the civil money penalty, limits of the penalty and payment options available to the vendor are as defined in the WIC Vendor Manual in effect at the time the penalty is imposed.

K. PARTICIPANT ACCESS DETERMINATION

1. In order to determine inadequate participant access, the State Agency will consider several factors that include, but are not limited to the following:

a. A WIC participant would be required to travel more than ten miles one way from the disqualified vendor to the nearest authorized WIC vendor;

b. The presence of physical barriers or conditions that would make normal travel to another authorized vendor difficult or impossible (for example, an island store, poor road conditions).

2. Such a determination is in the sole discretion of the State Agency and is not subject to appeal ( 7 CFR § 246.18) .

L. REJECTION OF FOOD INSTRUMENTS

1. Food instruments/cash value vouchers will be rejected by the WIC fiscal intermediary and returned to the vendor's depository bank for the following reasons:

a. Missing or unreadable vendor stamp.

b. Food instrument/cash value vouchers exceeds the Maximum Redemption Price.

c. Early cashing (before the first date of use);

d. Late cashing (after the last date of use);

e. No participant signature on the signature line of the food instrument/cash value voucher;

f. Previously presented for payment and consequently rejected (except for being rejected due to missing an Authorized Vendor Stamp);

g. Obvious alterations; and

h. Unauthorized vendor stamp.

M. REIMBURSEMENT OF REJECTED FOOD INSTRUMENTS

1. The State Agency has the right to reduce or deny payment of food instruments/cash value vouchers cashed in violation of WIC rules and regulations or as defined in the most recent WIC Vendor Manual in effect at the time the ACH credit was incurred. The State Agency may approve an ACH credit for a food instrument rejected by the bank for the following reasons:

a. Unreadable or missing vendor stamp;

b. Exceeds the Maximum Redemption Price. An ACH credit will automatically be applied to the vendor's bank account following the procedure in the WIC Vendor Manual in effect at the time the food instrument/cash value vouchers was rejected;

c. Bank error; and

d. WIC Program error.

2. The State Agency shall not reimburse a vendor for food instruments rejected for the following reasons:

a. Food instruments/cash value vouchers cashed early (before the first date of use);

b. Food instruments/cash value vouchers cashed late (after the last date to use);

c. Food instruments/ cash value vouches missing a signature;

d. Food instruments/cash value vouches accepted by unauthorized vendors; and

e. Food instruments/cash value vouchers which bear apparent signs of alteration

N. VENDOR AGREEMENTS

1. If selected for authorization, each vendor must sign a Vendor Agreement with the State Agency.

2. A State Agency-Corporate Agreement (chain stores) covering all outlets of the chain selected will be signed by the chain store's corporate office and the State Agency.

3. A contract between the State Agency and an authorized vendor will not exceed three years.

4. The State Agency reserves the right to unilaterally amend vendor agreements at any time to accommodate changes in the food delivery system.

5. Either party may terminate the agreement, without cause, effective upon receipt of a thirty day written notice.

6. In the event a vendor ceases operation or majority ownership of the store changes, the agreement is automatically terminated beginning on the day the store closed or ownership changed.

7. Special written exception may be issued by the State Agency on a case-by-case basis for the stocking requirements.

8. A WIC pharmacy vendor or a WIC food/pharmacy vendor must ensure that formula authorized by the WIC Program and requested by a WIC participant or the WIC Program can be available within seventy two hours of the request.

9. A WIC pharmacy vendor can accept food instruments for authorized infant formula and/or WIC -eligible medical foods only.

10. A WIC food vendor that has not been authorized as a WIC pharmacy vendor cannot accept food instruments for prescription infant formula and/or WIC-eligible medical foods.

O. REDEMPTION OF FOOD INSTRUMENTS

1. The vendor is solely responsible for ensuring the validity of food instruments/cash value vouchers by abiding by the following criteria:

a. The current date is within the use dates specified on the face of the food instruments/cash value vouchers;

b. The signature is affixed at the time of the purchase and it matches either of the signatures on the ID Folder;

c. No visible alterations are apparent on the food instruments/cash value vouchers (e.g., food quantities, participant ID number).

2. When accepting a food instrument/cash value voucher, the vendor is solely responsible for ensuring that proper transaction procedures are followed. Transaction procedures are as defined in the WIC Vendor Manual in effect at the time of the redemption.

10-144 C.M.R. ch. 286, § IV