Md. Code Regs. 10.54.03.04

Current through Register Vol. 51, No. 25, December 13, 2024

Section 10.54.03.04 - Authorization Requirements

A. A store shall obtain authorization to operate as a WIC vendor from the State agency before redeeming food benefits.

B. A store:

(1) May not redeem WIC food benefits unless the store is authorized as a WIC vendor by the State agency;

(2) Constitutes a separate vendor and shall be authorized separately from other stores operated by the same business entity; and

(3) Shall have a single, fixed location.

C. In order to receive authorization from the State agency, a vendor shall:

(1) Submit a completed vendor application package as set forth in Regulation .07 of this chapter to the State agency;

(2) Have in its store from the time of application the minimum required stock as set forth in Regulation .14 of this chapter;

(3) Post shelf prices for all WIC-approved foods at, on, or near the food items;

(4) Comply with applicable federal and State laws and regulations;

(5) Maintain the store premises in a sanitary condition with no evidence of

(a) Excess trash;

(b) Vermin; or

(c) General lack of cleanliness;

(6) Be accessible to persons with disabilities;

(7) Successfully complete an on-site review as set forth in Regulation .08 of this chapter;

(8) Have a management representative attend a training session offered by the State agency;

(9) Be authorized by SNAP; and

(10) Be in good standing with SNAP and have not:

(a) Been disqualified;

(b) Been suspended;

(c) Been issued a charge or adverse action letter;

(d) Filed an appeal; or

(e) Been assessed a civil money penalty within the 24 months prior to the date of application.

D. In order to receive authorization from the State agency, a vendor applicant may not:

(1) Have owners, officers, or managers that have been indicted for, convicted of or have had a civil judgment entered against them for any activity indicating a lack of business integrity;

(2) Currently be under disqualification by the State agency;

(3) Owe money to the State agency; or

(4) Derive or derive after commencement of business more than 50 percent of the vendor's or applicant's annual eligible food sales revenue from food purchased with WIC food instruments, with the exception of:

(a) A nonprofit entity; or

(b) An above 50 percent vendor the State agency has authorized for participant access reasons.

E. Pursuant to Regulation .19 of this chapter, if the State agency determines that a participant hardship exists, where access to special infant formula and WIC-eligible medical foods are not available through a food/pharmacy combination store, the State agency, at its sole discretion, may authorize a pharmacy only vendor that shall:

(1) Adhere to the requirements set forth in §C(1) and (3)-(8) of this regulation;

(2) Hold a current permit to operate as a pharmacy issued by the State Board of Pharmacy;

(3) Only accept WIC food instruments prescribing exempt infant formula and WIC-eligible medical foods; and

(4) Upon request by a participant, provide exempt infant formulas and WIC-eligible medical foods within 48 hours, excluding weekends and holidays.

F. Except for a pharmacy only or military commissary, a vendor applicant shall have actual lowest current shelf prices that are less than or equal to 125 percent of the peer group average in the vendor applicant's region during the month of application, as determined by the State agency for each of the food packages set forth in Regulation .06A of this chapter.

G. A vendor applicant may not apply for authorization in order to circumvent sanctions imposed by SNAP or the State agency on a previous vendor.

H. The vendor applicant shall provide to the State agency documents that demonstrate the vendor applicant has submitted the application in good faith including but not limited to:

(1) A copy of the sales agreement including but not limited to the sales price;

(2) Names and addresses of the owners, directors, managers, and other decision makers of the store, including whether any of these people are related to the vendor who has been sanctioned; and

(3) A copy of the lease or deed for the store.

I. In order to determine whether the vendor applicant seeks authorization in order to circumvent sanctions imposed on a vendor by the State agency, the State agency shall review the totality of the circumstances and may consider whether the:

(1) Vendor applicant is related to the former vendor;

(2) Former vendor or a relative of the former vendor is involved in the operation of the store;

(3) Former vendor or a relative of the former vendor is a director, officer, or otherwise part of the entity that will own the store; and

(4) Business was sold for fair market value.

J. A store can be reassessed at any time during the authorization period to ensure that it meets the current vendor authorization requirements as set forth in this regulation.

K. A vendor applicant denied authorization three times in a 12-month period may not reapply until after 12 months have passed since the last denial date.

Md. Code Regs. 10.54.03.04

Regulations .04 adopted as an emergency provision effective November 1, 1995 (22:22 Md. R. 1655 and 22:23 Md. R. 1796); emergency status expired May 1, 1996
Regulations .04 adopted effective May 2, 1996 (23:6 Md. R. 476)
Regulations .04 amended as an emergency provision effective November 1, 1996 (23:24 Md. R. 1679); amended permanently effective February 24, 1997 (24:4 Md. R. 292)
Regulations .04 amended as an emergency provision effective October 1, 2002 (29:23 Md. R. 1807); amended permanently effective March 31, 2003 (30:6 Md. R. 421)
Regulations .04 amended as an emergency provision effective December 15, 2006 (34:1 Md. R. 29); amended permanently effective April 9, 2007 (34:7 Md. R. 699)
Regulations .04C amended as an emergency provision effective December 22, 2004 (32:1 Md. R. 25); amended permanently effective March 14, 2005 (32:5 Md. R. 581)
Regulations .04G amended as an emergency provision effective November 3, 2008 (35:24 Md. R. 2069); amended permanently effective February 9, 2009 (36:3 Md. R. 209)
Regulation .04 amended effective May 12, 2014 (41:9 Md. R. 521)
Regulations .04 amended as an emergency provision effective October 1, 2012 (39:22 Md. R. 1427); amended permanently effective March 4, 2013 (40:4 Md. R. 347)
Regulations .04 amended effective 42:7 Md. R. 570, eff.4/13/2015; amended effective 44:5 Md. R. 293, eff. 3/13/2017; amended effective 47:20 Md. R. 875, eff. 10/5/2020; amended effective 49:12 Md. R. 640, eff. 6/13/2022