6-01 Vendor Sanction Schedule Overview

6.01 Vendor Sanction Schedule Overview

Effective Date: 08/01/2021

PURPOSE:    

To provide an overview of the Vendor sanction system and explain how sanctions are applied for Vendor violations.

DEFINITIONS:

Civil Money Penalty (CMP) means a monetary penalty imposed in lieu of disqualification when disqualification would result in inadequate participant access.

Disqualification means the termination of a Vendor’s authorization to participate in the WIC Program for a specified period of time.

Sanction means an administrative action imposed by the Department against a Vendor for violating WIC Program requirements.

Vendor violation means any intentional or unintentional action by a Vendor, its owners, officers, managers, agents, or employees that violates Federal or State WIC statutes, regulations, policies, procedures, or the WIC Vendor Contract.

POLICY:

1. The Department shall maintain and enforce a Vendor sanction system in accordance with Federal WIC regulations.

    

2. Sanctions may include, but are not limited to:

    

   1. Warning letters;

       

   2. Mandatory training;

       

   3. Corrective action plans;

       

   4. Civil money penalties;

       

   5. Termination; and

       

   6. Disqualification.

    

3. The Department shall impose sanctions for Vendor violations in accordance with the WIC Vendor Sanction Schedule. (See Exhibit 6.01A WIC Vendor Sanction Schedule.)

    

4. The Department may impose sanctions based on:

    

   1. Monitoring visits;

       

   2. Compliance buys;

       

   3. Inventory audits;

       

   4. Complaint investigations;

       

   5. Transaction data analysis; or

       

   6. Other documented evidence.

    

5. The Department may impose a civil money penalty in lieu of disqualification if disqualification would result in inadequate participant access.

    

6. Vendors subject to adverse actions may have appeal rights in accordance with Policy 7.0 Vendor Appeals.

References:

7 CFR Part 246.12

7 CFR Part 246.18

Cross-References:

5.0 Vendor Compliance

6.02 Claims Against Vendors

6.03 Adverse Actions Against Vendors

7.0 Vendor Appeals

Exhibits:

6.01A WIC Vendor Sanction Schedule