6-03 Adverse Actions Against Vendors

6.03 Adverse Actions Against Vendors

Effective Date: 08/01/2021

PURPOSE:    

To describe adverse actions the Department may take against Vendors for violations of WIC Program requirements.

DEFINITIONS:

Adverse action means an administrative action taken against a Vendor that negatively affects the Vendor’s participation in the WIC Program.

Corrective Action Plan (CAP) means a written agreement between the Department and a Vendor outlining actions required to correct identified deficiencies.

1. POLICY:

1. The Department may impose adverse actions against Vendors for violations of Federal or State WIC statutes, regulations, policies, procedures, or the WIC Vendor Contract.

    

2. Adverse actions may include:

    

   1. Denial of authorization or reauthorization;

       

   2. Termination;

       

   3. Disqualification;

       

   4. Civil money penalties;

       

   5. Claims;

       

   6. Mandatory corrective action plans; or

       

   7. Other sanctions identified in the Vendor Sanction Schedule.

    

3. The Department shall provide written notice of adverse actions to Vendors. Notices shall include:

    

   1. The basis for the action;

       

   2. The effective date;

       

   3. The duration, if applicable; and

       

   4. Appeal rights and procedures.

    

4. The Department may require Vendors to complete and comply with a Corrective Action Plan (CAP) in order to maintain authorization. (See Exhibit 6.03A Corrective Action Plan Agreement.)

    

5. Failure to comply with a corrective action plan or other Department directives may result in additional sanctions or disqualification.

References:

7 CFR Part 246.12

7 CFR Part 246.18

Cross-References:

6.01 Vendor Sanction Schedule Overview

6.02 Claims Against Vendors

7.0 Vendor Appeals

Exhibits:

6.01A WIC Vendor Sanction Schedule

6.03A Corrective Action Plan Agreement