216 R.I. Code R. 216-RICR-20-05-3.8

Current through December 26, 2024

Section 216-RICR-20-05-3.8 - WIC Vendor Systems

A. Threshold requirements:

1. An application will only be issued to a grocery or pharmacy owner, partner or corporate officer which satisfies the requirements of these regulations.

2. Mobile stores and home Vendor companies are not eligible to be WIC Vendors.

B. The applicant-Vendor must return the following documents prior to approval:

1. Vendor Application signature Page from Online Application;

2. Email Price Survey List;

3. Proof of ownership;

4. Annual or quarterly tax forms;

5. Copy of a recent driver's license or other positive photo identification; and

6. List names of stores, owner, partnership, manager, spouse, and clerk, to be reviewed by the WIC program, after completed by the Vendor.

C. Vendor Agreements

1. All approved Vendors must review and execute a Vendor Agreement prior to participation.

2. Each Vendor Agreement shall include a sanction schedule for Vendor Violations in accordance with 7 C.F.R. § 246.12(I)(3).

D. Application Denials

1. If the Vendor has withheld, misrepresented or falsified any information required by the application process, the application will be denied and/or any subsequent Vendor Agreements relating to the application will be immediately rendered null and void, upon discovery.

2. If the Vendor has participated in any actions which are violations of Program rules or accepted WIC checks prior to authorization, (in accordance with Vendor Compliance, V-4) the application will be denied and/or any subsequent Vendor Agreement relating thereto will be immediately rendered null and void, upon discovery.

3. The Vendor may not be accepted if it has been debarred or suspended from participating in any transactions involving federal funds or other assistance with grantees and sub grantees of federal funds.

E. FNS and WIC: Unless needed to serve an area, a grocery Vendor will not be approved to accept WIC, unless the Vendor is authorized by the Supplemental Nutrition Assistance Program (SNAP) under the current ownership. If the Vendor is disqualified from SNAP as a result of disqualification from the WIC Program, the Vendor may not reapply until SNAP authorization is reinstated.

1. A Vendor will not be approved if an individual as a Vendor owner, officer, partner, or manager

a. Has not paid in full any fiscal claim, penalty, or fine owed to any USDA or other Federal or State Program or if the Vendor has not corrected any previous violation.

b. Has committed or been convicted of any violation of, or been found in violation of, any of the laws and/or regulations, or rules of any USDA or other Federal or State Program, or the terms of any previous Vendor Agreement.

c. The Vendor will not be accepted for one to six years from the time of the last violation committed, or from the time it was determined the violation had been committed, or prior to the end of any disqualification, sentence, or sanction imposed with respect to that violation; whichever of these occurred last.

2. A Vendor will not be approved if they were sanctioned with a civil money penalty, or fine or other monetary settlement imposed in lieu of a disqualification, or agreed to as part of resolution of a charge of violation of USDA rules, until the monetary penalty is paid in full.

3. If a Vendor was removed from the WIC Program, re-applicant(s) must serve the length of time of the sanction the WIC Program before they can be re-approved as a WIC Vendor or such term as consistent with the nature of the act and penalties for a similar act. The WIC Program may accept such a Vendor if it deems Vendor would be a special benefit to the WIC Program and acceptance of the Vendor would be in the best interests of the WIC Program, and impose an alternative penalty and/or special conditions of participation in lieu of denial of participation.

4. A Vendor will not be approved if the store is owned, in whole or in part, or is managed by any person who has committed or been convicted of any violation of or found in violation of the laws, regulations, or rules, of any USDA Program in accordance with the above.

5. A Vendor will not be approved if the Vendor employs any person who has committed or been convicted of any violation of, or found in violation of, any of the laws, regulations, or rules of any USDA Program in accordance with the above, whether such violations occurred in relation to that applicant store while the store was under previous ownership, or any other store where such person committed such violations unless such person is under on-site supervision of a superior during all hours of WIC Program related activity and is not allowed to take part in any WIC check transactions.

6. A Vendor will not be approved if the Vendor has committed any violation of the laws, rules, or regulations of any USDA Program, while under disqualification or other sanction by any USDA Program, or when not participating in SNAP.

7. A Vendor will not be approved where there is evidence of an attempt to circumvent, or assist in a circumvention of, a period of disqualification from any USDA Program or a civil money penalty imposed for violations of the rules or regulations of any USDA Program.

8. A Vendor will not be approved where there is likelihood that a former owner, who would not him/herself qualify, still retains direct or indirect ownership in, control over or interest in the business or its operations.

F. Re-application/Re- approval of Vendor Agreement: When reliable evidence or likelihood exists of violations of the regulations, rules, or procedures of any USDA Program in accordance with RIDOH Vendor Policies, such evidence shall be grounds for denial of the WIC Vendor Agreement. The WIC Program may deny Vendor participation in the WIC Program for a period in accordance with the WIC Vendor Policies contained in the Vendor Agreement, or until such time as the Vendor is no longer subject to, or under judicial, administrative penalties, sanctions and/or sanction reviews, or other punishment, whichever last occurs. Any of the conditions of the above, shall constitute a violation for purposes of re-approval of a Vendor even when it has been served under any USDA Program but not under the WIC Program (i.e. SNAP Applicant(s) or re-applicant(s) must serve this time under the WIC Program before he/she can be re-approved as a WIC Vendor.

1. The WIC Program may, at its option, enter into a conditional Vendor Participation Agreement when a Vendor is pending judicial or administrative finding, decision, or applicant sanction for an alleged violation, or being readmitted following an allegation of violation, or for special authorization needs.

2. Each applicant Vendor, including re-applications, will be reviewed for compliance with any current or previous WIC Agreement for the past three years from the date of application or from the termination of the most recent WIC Agreement.

G. A Vendor who is currently operating as a WIC Vendor will not be accepted or renewed if the Vendor:

1. Is currently suspended or disqualified from any USDA Program for non-compliance, or is under threat of disqualification related to pending charges. This shall not be subject to administrative or judicial review under the WIC Program.

2. Has committed three violations of the Vendor Agreement such as would be grounds for a 90 day or less disqualification.

3. Has committed two violations, and/or was issued two notices of violation: per the Violations and Sanction Types described in the Vendor Policies within the Vendor Agreement.

4. Has received two suspensions or disqualifications during the preceding three years. Such Vendors shall not be renewed or approved for participation for from one to three years from the date of termination of their current or most recent WIC Vendor Agreement.

5. Has been determined to be charging excessive prices, either by charging for foods not received on the WIC check or charging for foods at higher prices than submitted on the quarterly price survey.

6. If federal regulations for the WIC Program change the maximum disqualification or suspension term or standards for Vendor authorization, during the period of disqualification the WIC Program may modify the terms of disqualification or non-approval for participation in accordance with the standards set forth in the new federal regulations. The WIC Program cannot modify any federal sanctions.

7. If the WIC Program has reason to believe a change of ownership or control may have occurred and the Vendor fails to furnish sufficient proof that a change has not occurred.

8. If a new WIC Vendor is determined to be an "Above 50% Vendor" (A50%V), they will be authorized on a six month probationary period. During this time, monthly redemption data will be reviewed to identify if, in fact, the probationary WIC Vendor is an A50%V. If this is confirmed, they will be terminated from the WIC Program.

a. The "potentially Above-50% Vendor" (PA50%V) peer group will be assigned to applicants who have the potential for total WIC Program sales to comprise more than 50% of their total food sales.

b. The "Above 50% Vendor" (A50%V) Peer group will be applied to those Vendors whose total WIC sales comprise 50% or more of their total food sales.

c. The redemption histories of all new WIC authorized grocery (i.e. non-pharmacy, non-farmers market) Vendors will be reviewed during the application process. To identify a potential Above 50% Vendor (PA50%V) the following information will be considered:

(1) If the applicant is a new business with no redemption history;

(2) Recent Supplemental Nutrition Assistance Program (SNAP) redemption data for the applicant;

(3) Self-reported total gross food sales for the prior year;

(4) Recent State of RI Monthly Sales && Use Tax Return;

(5) Recent State of RI Quarterly Reconciling;

(6) Recent State of RI Annual Reconciling;

(7) Projected WIC food sales, based on the WIC Program's analysis of peer group food redemption profiles;

(8) A new Vendor with no food sales history or SNAP sales history will be considered a potential A50%V for the first 6 months of WIC authorization;

(9) A new branch of a national chain grocery store will not be considered as a potential A50%V;

d. During the 6-month period of time, the potential A50%V's redemptions will be monitored to ensure their reimbursements are no greater than the statewide average price of their peer group, or the maximum allowed price for their peer group (whichever is the lower amount).

216 R.I. Code R. 216-RICR-20-05-3.8