Current through Register Vol. 35, No. 11, June 11, 2024
Section 7.31.2.20 - VENDOR SANCTIONSA. GENERALLY: The State WIC Office may impose sanctions upon a vendor for non-compliance with the program. Sanctions may include immediate disqualification from the program, or such other lesser penalties, in addition to or in lieu of disqualification, as the State WIC Office deems appropriate to the nature and severity of the violation(s). In addition to sanctions which may be imposed by the state WIC office, a vendor who commits fraud or abuse of the system, or who deals unlawfully in WIC food instruments, or who aids and abets another in so doing, is liable to prosecution and fines under state and federal law.B. PENALTIES & OFFENSES:(1) Disqualification. Grounds for outright disqualification of a vendor from the program include, but are not limited to, the following:(a) Redeeming WIC food instruments while the vendor is suspended or disqualified.(b) Charging WIC customers tax on WIC purchases.(c) Failing to enter the actual purchase price of authorized foods and/or infant formulas purchased on WIC food instruments at the time of redemption.(d) Redeeming WIC food instruments for fixed amounts that do not reflect actual authorized food package costs.(e) Redeeming WIC food instruments for dollar amounts greater than actual authorized food package costs.(f) Causing or permitting unfair or discriminatory treatment of WIC participants, or otherwise violating the civil rights of WIC participants.(g) Price fixing of WIC authorized foods and/or infant formulas.(h) Altering WIC food instruments for fraudulent or unlawful purposes.(i) Providing valuable consideration other than WIC authorized foods or formulas, in exchange for WIC food instruments, or negotiating WIC food instruments for cash, credit or non-food items.(j) Submitting falsified WIC food price information to the State WIC Office.(k) Aiding or abetting WIC participants in fraud or abuse of the program, or in the unlawful dealing in WIC food instruments.(l) Negotiating stolen or counterfeit food instruments.(m) Providing materially false or misleading information in an application.(n) Failing to submit timely applications or re-applications.(o) Otherwise committing fraud or abuse of the WIC program.(p) Criminal conviction of fraud or abuse related to the WIC program or the Food Stamp Program.(q) If the Food Stamp Program disqualifies a vendor, WIC shall disqualify the vendor for the same length of time as the Food Stamp Program disqualification. (Disqualification from the WIC program may also result in a vendor being disqualified from the Food Stamp Program).(r) If the Food Stamp Program assesses a civil monetary penalty (CMP) to a vendor in lieu of disqualification, WIC may disqualify for the length of time the vendor would otherwise have been disqualified in the Food Stamp Program.(s) Criminal conviction for trafficking in food instruments or selling firearms, ammunition, explosives, or controlled substances in exchange for food instruments.(t) One incidence of buying or selling food instruments for cash (trafficking); or one incidence of selling firearms, ammunition, explosives, or controlled substances in exchange for food instruments.(u) One incidence of the sale of alcohol or alcoholic beverages or tobacco products in exchange for food instruments.(v) A pattern of claiming reimbursement for the sale of an amount of a specific supplemental food item which exceeds the stores documented inventory of that supplemental food item for a specific period of time.(w) A pattern of charging participants more for supplemental food than non-WIC customers or charging participants more than the current shelf or contract price.(x) A pattern of receiving, transacting and/or redeeming food instruments outside of authorized channels, including the use of an unauthorized vendor and/or unauthorized person.(y) A pattern of charging for supplemental food not received by the participant.(z) A pattern of providing credit or non-food items, other than alcohol, alcoholic beverages, tobacco products, cash, firearms, ammunition, explosives or controlled substances in exchange for food instruments.(aa) A pattern of providing unauthorized food items in exchange for food instruments, including charging for supplemental foods provided in excess of those listed on the food instrument.(2) Denial of redemption of WIC food instruments. Grounds for denial of redemptions of a vendor include, but are not limited to, the following: (a) Repeated failure to use the WIC vendor stamp on WIC food instruments before bank deposit.(b) Accepting WIC food instruments with non-matching participant signatures.(c) Failing to obtain participant counter signatures on WIC food instruments at the time of redemption.(d) Accepting pre-signed WIC food instruments.(e) Accepting altered WIC food instruments.(f) Accepting WIC food instruments before valid issue date.(g) Accepting WIC food instruments after the 30 day time limit for redemption.(h) Depositing WIC food instruments after the 90 day time limit for deposit.(i) Forwarding food instruments to the State WIC Office for replacement after their expiration date.(j) Failing to promptly notify the State WIC Office of a missing vendor stamp if such loss results in the submission of unauthorized food instruments for redemption.(k) Food instruments forwarded by anyone other than an authorized vendor for an authorized vendor location to the State WIC Office for redemption.(3) Vendor Suspension. Grounds for vendor suspension from the program include, but are not limited to, the following: (a) Providing outdated authorized foods and/or infant formulas to WIC customers.(b) Failing to maintain the minimum stock and variety requirements of authorized foods and/or infant formulas.(c) Failing to submit or failing to timely submit vendor and food or infant formula price information as required or requested by the State WIC Office.(d) Failing to furnish WIC participants with itemized receipts at the time of purchase.(e) Requiring WIC participants to countersign WIC food instruments prior to entering the dollar purchase amount on the food instruments.(f) Providing a "raincheck," or otherwise allowing a WIC participant to make more than one transaction with a single food instrument.(g) Redeeming WIC food instruments for greater quantities of authorized foods and/or infant formulas than those specified on the food instruments.(h) Accepting or soliciting payment from WIC participants for dollar amounts that exceed actual authorized costs of foods and/or infant formulas.(i) Accepting or soliciting payment from WIC participants for dollar amounts that exceed the maximum redemption value specified on the food instruments.(j) Soliciting payment from WIC participants for food instruments which the State WIC Office has refused to redeem or has otherwise dishonored.(k) Failing to enter the redemption date on WIC food instruments.(l) Entering an incorrect redemption date on WIC food instruments.(m) Duplicating a vendor stamp.(n) Providing false or misleading information in an application.(o) Failing to display prices on shelves, coolers or foods and formulas.(p) Engaging in participant discrimination.(q) Failing to report participant fraud or abuse of the WIC program.(r) Failing to maintain competitive prices.(s) Failing to maintain required information in files or on display.(t) Failing to appear for mandatory training without good cause.(u) Violation of health, safety or sanitation codes.(v) Failing to produce requested records in a timely manner.(4) Miscellaneous provisions.(a) Program fraud or abuse/unlawful dealing in WIC food instruments. The State WIC Office may share findings of its investigation and monitoring activities with law enforcement, Food Stamp program authorities, or other WIC authorities, if it suspects fraud or abuse of the WIC Program, unlawful dealing in WIC food instruments, or if Food Stamp Program violations have occurred; and will cooperate fully with such authorities in their investigation.(b) Combination of offenses. Nothing in these regulations shall preclude the State WIC Office from charging a vendor with multiple offenses, or from simultaneously imposing sanctions for offenses in different categories, subject to the limitations imposed by sub-section A of 7.31.2.21 NMAC and sub-section B of 7.31.2.22 NMAC below.(c) Repeated violations. The State WIC Office may impose sanctions up to and including vendor disqualification for violations which would not of themselves constitute grounds for disqualification, but which recur after opportunity to cure and warnings have been provided to the vendor. The State WIC Office may also impose lesser sanctions, such as suspension from the program, denial or redemption of food instruments, or denial of replacement of food instruments for repeated instances of vendor non-compliance with program requirements.(d) Civil penalties. The State WIC Office may demand reimbursement from a vendor for offenses which result in overcharges to the program, and may otherwise avail itself of all civil remedies available under New Mexico and federal law.8-30-89, 10-31-96, 10-31-96; 7.31.2.20 NMAC - Rn, 7 NMAC 31.2.20, A, 5-31-2000