N.M. Code R. § 7.31.2.22

Current through Register Vol. 35, No. 11, June 11, 2024

Section 7.31.2.22 - DISPUTE RESOLUTION/WAIVER OF SANCTIONS

A. ALTERNATIVE DISPUTE RESOLUTION: If it finds that a vendor has committed an offense warranting sanctions, the State WIC Office may elect to issue a warning letter to the vendor, specifying a time frame and requirements for cure of the deficiency(ies). Timely compliance shall operate to purge the vendor of the offense. Exercise of this option by the State WIC Office shall not constitute a waiver of the Office's right to sanction the vendor for the same or similar offenses in the future, nor of the right to sanction other vendors for any offense(s) at any time.

B. CIVIL MONETARY PENALTY IN LIEU OF DISQUALIFICATION: The State WIC Office may elect to offer a vendor the option of payment of monetary penalties not to exceed $10,000 per violation up to a maximum of $40,000 for violations investigated as part of a single investigation, or such lesser amounts as may be deemed reasonable and appropriate considering the nature and severity of the offense(s), in lieu of outright disqualification from the program.

(1) For any of the violations listed in sub-paragraphs (q) and (s) through (aa) of paragraph (1) of sub-section B of 7.31.2.20 NMAC, the State shall impose a Civil Monetary Penalty (CMP) in lieu of WIC disqualification if such disqualification of the vendor would result in inadequate participant access; or, with respect to violations listed in sub-paragraph (s) of paragraph (1) of sub-section B of 7.31.2.20 NMAC, if the vendor had, at the time of the violation, an effective program and policy in effect to prevent trafficking, and if the ownership of the vendor was not aware of, did not approve of, and was not involved in the conduct of the violation.

(2) The CMP shall be calculated by using the following formula:

(a) Determine the vendor's average monthly redemptions for at least the 6-month period ending with the month immediately preceding the month during which the notice of administrative action is dated;

(b) Multiply the average monthly redemptions figure by ten percent (.10);

(c) Multiply the product from sub-paragraph (b) of paragraph (2) of sub-section B of 7.31.2.22 NMAC by the number of months for which the store would have been disqualified. This is the amount of the CMP, provided that the CMP shall not exceed $10,000 for each violation. For a violation that warrants disqualification, the amount of the CMP shall be $10,000.

(3) Exercise of this option by the State WIC Office shall not constitute a waiver of the Office's right to disqualify the vendor for the same or similar offenses in the future, nor of the right to disqualify other vendors for any offense(s) at any time.

C. WAIVER OF SANCTIONS: For good cause or exigent circumstances, the State WIC Office may waive imposition of sanctions for offenses. Such waiver shall not constitute a waiver of the Office's right to impose sanctions for the same violation on the same vendor at a future time, nor to waive the Office's right to impose sanctions on other vendors for the same offense at any time.

N.M. Code R. § 7.31.2.22

8-3-89, 10-31-96; 7.31.2.22 NMAC - Rn, 7 NMAC 31.2.22, A, 5-31-2000