Section 410 IAC 3.6-5-2 - Major and minor violationsAuthority: IC 16-19-3-5; IC 16-35-1.5-6
Affected: IC 16-35-1.5
Sec. 2.
(a) Major violations are violations that could result in harm to WIC participants or the WIC program. The following are major violations: (1) Claiming reimbursement for the sale of an amount of a specific supplemental food item that exceeds the vendor's documented inventory of that supplemental food item for a specific period of time.(2) Submission of false information:(A) on the retail vendor price survey; or(B) during the course of inspections of the vendor site.(3) Receiving, transacting, or redeeming food instruments outside of authorized channels, including the use of an unauthorized vendor or an unauthorized person, or both.(4) Charging for a supplemental food not received by the participant.(5) Providing credit or nonfood items, other than: (H) controlled substances, as defined in 21 U.S.C. 802; in exchange for food instruments.
(6) Failure to attend a required training.(7) Failure to maintain: (A) inventory records; or(B) other records; the department requires of the vendor.
(8) Providing change when redeeming a food instrument.(9) Failure to provide authorized WIC program personnel access to the following: (A) The business premises.(B) Any redeemed food instruments on hand.(C) Any other records pertaining to vendor participation.(10) Alteration of a food instrument other than a legitimate price or "date used" correction.(11) Home delivery of WIC purchases.(12) Failure to accept a valid food instrument when accompanied by a valid WIC identification folder.(13) Recovery or attempted recovery of funds or food from WIC participants.(14) Failure of a vendor pharmacy to provide special formulas as required by 410 IAC 3.6-3-4(5).(15) Failure to compare the signature on the food instrument with the signature on the WIC program identification card.(16) Not allowing WIC participants to participate in sales promotions or manufacturer's specials or refusal to accept coupons when allowed for other customers.(17) Denial of the purchase of up to the full amount of WIC foods authorized on a food instrument if requested by a WIC participant.(18) Selling expired infant formula to participants.(19) Failure to reimburse the department, within thirty (30) days of written request, for amounts paid by the department to the vendor on improperly redeemed food instruments.(20) Including sales tax or container deposits as part of the actual cost of the authorized food listed on the food instrument or requiring the participant to pay the sales tax or container deposit.(21) Requiring cash purchases in order to redeem food instruments.(22) Accepting the return of items purchased with a food instrument for cash or credit towards other purchases or exchanges, with the exception of exchanges of an identical authorized food item when the original food item: (C) has exceeded its: (ii) "best if used by" date; or(iii) another date; limiting the sale or use of the item.
(23) Threatening or verbally abusing WIC participants or authorized WIC program personnel.(b) Minor violations are violations that may impose less harm to participants or the program. The following are minor violations: (1) Failure to supply a timely retail vendor price survey to the department.(2) Requiring WIC participants to show identification other than WIC identification folders, except in cases when the WIC identification folder is not signed.(3) Issuing rain checks for specific WIC food types, brand, or quantities listed on the food instrument not available or not received by the participant at the time a food instrument is redeemed.(4) Failure to maintain the minimum required:(D) variety; of WIC approved foods as set forth in 410 IAC 3.6-3-8.
(5) Requiring a participant to select a specific type or brand of WIC approved foods when the food instrument or the food list, or both, does not require the purchase of that specific type or brand.(6) The: (B) display on the shelf in the vendor site;(D) actual sale; of food products that originated from the Commodity Supplemental Food Program.
(7) Acceptance of food instruments that are signed by a participant or a proxy before the vendor fills in the total actual cost.(8) Failure to remove out-of-date WIC foods from customer areas.(9) Failure of the WIC foods identification test by store personnel or scanner system.(10) Failure to do any of the following: (A) Maintain WIC food prices within fifteen percent (15%) of other authorized WIC vendors in the WIC service area.(B) Accurately show the price of WIC foods on the food:(C) Offer WIC participants the same courtesies and services offered to the general public.(11) Using a cash register without a current WIC approved food list at the cash register.(12) Failure to allow the purchase of a WIC authorized food.(13) Accepting a food instrument: (A) before the "first day to use"; or(B) after the "last day to use".(14) Accepting an altered food instrument, other than a legitimate price or "date used" correction.(15) Failure to provide a WIC participant with a cash register receipt for foods purchased with a food instrument.(16) Retaining WIC identification or any information that identifies a person as a WIC participant or proxy or disclosing information regarding a participant of the WIC program to any person without a valid court order, other than to the department, its designee, or a federal WIC program official.(c) Sanctions will be imposed as follows: (1) For the first major violation the vendor shall receive a warning letter indicating the following: (B) How to remedy the violation.(2) For the second major violation within a twenty-four (24) month period, a vendor may be sanctioned as follows: (A) A fine up to the lesser of one thousand dollars ($1,000) or ten percent (10%) of the vendor's monthly average redemptions for:(i) the greater of the twelve (12) months preceding the date of the sanction notice; or(ii) a lesser number of months the vendor has been authorized.(B) Disqualification from the WIC program for up to one (1) year.(3) For the first minor violation within a twenty-four (24) month period, the vendor shall receive a warning letter indicating the following: (B) How to remedy the violation.(4) For a vendor's second minor violation within a twenty-four (24) month period, a vendor shall either:(A) receive a second warning letter; or(B) be required to participate in a conference with the department and local agency about the violation, either in person or by telephone; or both. After the letter or conference, the vendor shall submit written documentation of the corrective action that will be taken.
(5) For a vendor's third minor violation within a twenty-four (24) month period, a vendor may be fined three percent (3%) of the vendor's monthly average redemptions for the greater of the following: (A) The twelve (12) months preceding the date of the imposition of the sanction.(B) A lesser number of months the vendor has been authorized.(6) For any subsequent minor violations within a twenty-four (24) month period, a vendor may be fined five percent (5%) of the vendor's monthly average redemptions for the greater of the following: (A) The twelve (12) months preceding the date of the sanction notice.(B) A lesser number of months the vendor has been authorized.(7) Multiple violations found may result in a cumulative penalty assessment based upon this subsection.(8) The maximum fine and maximum disqualification term shall be not more than the limits set forth in 7 CFR 246.12(l)(2)(i).(9) For the fourth violation of subsection (b)(4) within a twenty-four (24) month period, the sanction will be disqualification from the WIC program for up to one (1) year.(d) A vendor remaining in the program after an imposed sanction shall provide the following: (1) Certification that the situation giving rise to the sanction has been corrected.(2) Documentation regarding the correction as requested by the department.Indiana State Department of Health; 410 IAC 3.6-5-2; filed Apr 24, 2006, 3:00 p.m.: 29 IR 2995; filed Dec 14, 2009, 2:36 p.m.: 20100113-IR-410090047FRA; readopted filed Jul 12, 2012, 12:09 p.m.: 20120808-IR-410120265RFAReadopted filed 9/26/2018, 2:48 p.m.: 20181024-IR-410180328RFA