DHS 149.07 (4) (a) 2. The vendor fails to comply with WIC program requirements including federal and state statutes, local ordinances, or federal and state regulations relating to WIC program operation, or other USDA food and nutrition service programs.
DHS 149.07 (4) (a) 3. The vendor’s application contains false information.
DHS 149.07 (4) (a) 4. The vendor is in violation of any other applicable federal, state, or local health protection laws or ordinances.
DHS 149.07 (4) (b) If the department denies an application, the department shall give the vendor reasons for the denial in writing and inform the vendor of the right to appeal under s. DHS 149.18. SECTION 11. DHS 149.08 (1) (d) is created to read:
DHS 149.08 (1) (d) Vendor agreement or vendor manual amendments and program updates as necessary.
SECTION 12. DHS 149.08 (2) (a), (b), and (d) are repealed and recreated to read:
DHS 149.08 (2) (a) Provide to a participant or cardholder alcohol, an alcoholic beverage, a tobacco product, or substitute any food or commodity other than the approved food specified on the WIC food instrument, in exchange for a WIC food instrument, or provide any coupon or certificate for these items contingent upon spending the WIC food instrument or provided to a participant or cardholder for a purchase made with a WIC food instrument.
DHS 149.08 (2) (b) Provide cash, credit, including rainchecks, refunds, or exchanges, except for exchanges for an identical approved food item when the original approved food item is defective, spoiled, or exceeded its sell by, or use by date, in exchange for a WIC food instrument to a participant or cardholder.
(Note) Providing cash or other consideration in exchange for a WIC food instrument is included in the definition of trafficking found in s. 253.06 (1), Stats. DHS 149.08 (2) (d) Provide approved foods in quantities that are more than the quantities specified on the WIC food instrument to a participant or cardholder in exchange for a WIC food instrument.
SECTION 13. DHS 149.08 (2) (e) to (h) are created to read:
DHS 149.08 (2) (e) Charge participants or cardholders for approved foods obtained with food instruments or seek restitution from these individuals for food instruments not paid or partially paid by the department.
DHS 149.08 (2) (f) Accept food instruments outside of authorized channels.
DHS 149.08 (2) (g) Ask for any additional form of identification from a WIC participant or cardholder.
DHS 149.08 (2) (h) Provide an incentive item without department approval.
SECTION 14. DHS 149.08 (3) (a) is repealed and recreated to read:
DHS 149.08 (3) (a) Comply with WIC program processing and redemption procedures in this chapter, ch. 410 and s. 253.06, Stats., 7 CFR 246, the vendor agreement, the vendor manual, and the current WIC EBT operating rules. SECTION 15. DHS 149.08 (3) (am) is created to read:
DHS 149.08 (3) (am) Purchase all WIC eligible food items for resale with verifiable form of payment.
SECTION 16. DHS 149.08 (3) (b) is repealed.
SECTION 17. DHS 149.08 (3) (c) is amended to read:
DHS 149.08 (3) (c) Charge the participant or the participant’s proxy cardholder prices that are less than or equal to prices charged to other customers.
SECTION 18. DHS 149.08 (3) (d) is repealed and recreated to read:
DHS 149.08 (3) (d) Provide stock price surveys to the department upon request of the department.
SECTION 19. DHS 149.08 (3) (f) is amended to read:
DHS 149.08 (3) (f) Charge a price for an authorized approved food or standardized combination of foods that is the same as or lower than the maximum food price established by the state WIC office department.
SECTION 20. DHS 149.08 (3) (h) is repealed and recreated to read:
DHS 149.08 (3) (h) Keep a copy of the current vendor agreement on file or be able to access the electronic document.
SECTION 21. DHS 149.08 (3) (k) is amended to read:
DHS 149.08 (3) (k) Provide all information or documents requested by the department during the application process and contract period within the timeframes specified in the request.
SECTION 22. DHS 149.08 (3) (L) and (m) are repealed and recreated to read:
DHS 149.08 (3) (L) Maintain inventory and accounting records for a minimum of 3 years.
DHS 149.08 (3) (m) Make available upon the request of representatives of the department, the USDA, or the comptroller general of the United States all WIC food instruments in the possession of the vendor and all required inventory and accounting records for inspection and audit.
SECTION 23. DHS 149.08 (4) is repealed.
SECTION 24. DHS 149.08 (5) (d) is created to read:
DHS 149.08 (5) (d) A vendor may not include the WIC acronym, WIC logo, or close facsimiles of the WIC logo, in whole or in part, in any advertising material containing references to alcohol or tobacco products.
SECTION 25. DHS 149.08 (6) (a) and (b) are amended to read:
DHS 149.08 (6) Reporting requirements. (a) At least 15 days before a change of location, name, address, management, corporate officers or majority stockholders the vendor shall report the change in writing to the state WIC office or its designee department on a form provided by that office the department.
DHS 149.08 (6) (b) A new location within a 5-mile radius of the vendor’s previous authorized location with the previous location being closed, will does not require a new application for authorization. If the new location is more than a 5 mile radius of the vendor’s previous location and or the previous location is not being closed, a new application for authorization will be is required.
SECTION 26. DHS 149.08 (6) (b) (Note) is repealed and recreated to read:
DHS 149.08 (6) (b) (Note): Authorization forms may be obtained from the WIC vendor website at http://www.dhs.wisconsin.gov/forms/f4/f40108.pdf.
SECTION 27. DHS 149.08 (7), (8), and (10) are amended to read:
DHS 149.08 (7) Services to participants. A vendor shall afford a participant or participant’s proxy cardholder the same courtesies afforded to other customers, and treat a participant and the participant’s proxy cardholder in accordance with non-discrimination requirements under 7 CFR 15, subpart A. DHS 149.08 (8) Training. The vendor or at least one designee from each authorized location shall satisfactorily complete any training sessions required by the state WIC office department or designee. The authorized vendor shall ensure that all employees who process WIC checks food instruments are trained in check food instrument processing procedures.
DHS 149.08 (10) Reporting of participant noncompliance. A vendor shall may report to the state WIC office department or its designee on a form provided by the office department any instance in which a participant fails to comply with WIC requirements.
SECTION 28. DHS 149.08 (10) (Note) is repealed and recreated to read:
DHS 149.08 (10) (Note): Complaint forms may be obtained from the WIC vendor website at http://www.dhs.wisconsin.gov/forms/f4/f44322.pdf.
SECTION 29. DHS 149.085 is created to read:
DHS 149.085 Infant formula suppliers. (1) An infant formula supplier that distributes WIC approved infant formula for resale to WIC vendors shall do all of the following:
DHS 149.085 (1) (a) Maintain the appropriate state or local food safety license.
DHS 149.085 (1) (b) Complete the WIC authorized infant formula supplier application form upon request by the department.
DHS 149.085 (1) (c) Provide sales records or invoices with each delivery including a unique sales identification or invoice number, the name and address of the infant formula supplier, name and address of the WIC vendor purchasing the product, month, date and 4-digit year of delivery, items purchased including product name, size of container, stock number or uniform product code, quantity and unit price, and type of payment received.
DHS 149.085 (1) (d) Purchase infant formula from the infant formula manufacturer or another entity on the Wisconsin approved infant formula supplier list.
DHS 149.085 (1) (e) Retain purchase records for a minimum of one year.
DHS 149.085 (1) (f) Allow the department unrestricted access to the infant formula storage facility, delivery vehicle, and purchase records during normal business hours for inspection purposes.
DHS 149.085 (1) (g) Provide purchase records and sales receipts to the department upon request.
DHS 149.085 (1) (h) Demonstrate business integrity as provided in s. DHS 149.05.
DHS 149.085 (2) Failure to meet the requirements in sub. (1) may result in the infant formula supplier being removed from the authorized infant formula supplier list.
SECTION 30. DHS 149.09 (1) and (2) are amended to read:
DHS 149.09 Monitoring of vendors. (1) The state WIC office department or designee may monitor a vendor at any time during a contract period including conducting compliance buys, inventory audits, record reviews, monitoring visits, or routine on-site inspections.
DHS 149.09 (2) When, during the course of a single monitoring visit, the state WIC office department determines that a vendor has committed multiple violations, the state WIC office department shall impose the sanction corresponding to the most serious violation under ss. DHS 149.10 or 149.11. SECTION 31. DHS 149.10 (1) (a) 1., (2) (intro.), (a) and (b), (3) (intro.), (a), (b) 2. to 6., (4) (intro.), (a) and (b), (5), (6) are amended to read:
DHS 149.10 (1) (a) 1. The state WIC office department shall permanently disqualify a vendor from participation in the WIC program if the vendor is convicted of trafficking, providing cash in exchange for a WIC check food instrument, or of selling a firearm, ammunition, explosive or controlled substance in exchange for a WIC check food instrument. Disqualification of a vendor shall be effective upon the postmark date of the notice of administrative action by the state WIC office department to the vendor’s address of record.
DHS 149.10 (2) Mandatory six year disqualification. Unless a determination is made under s. DHS 149.12 (1) that disqualification would result in inadequate participant access, the state WIC office department shall disqualify a vendor from participation in the WIC program for 6 years for any one of the following: DHS 149.10 (2) (a) One incident of trafficking, buying or selling a WIC check food instrument for cash.
DHS 149.10 (2) (b) One incident of selling in exchange for a WIC check food instrument a firearm, ammunition, an explosive, or a controlled substance as defined in 21 USC 802. DHS 149.10 (3) Mandatory three year disqualification. Unless a determination is made under s. DHS 149.12 (1) that disqualification would result in inadequate participant access, the state WIC office department shall disqualify a vendor from participation in the WIC program for 3 years for any one of the following: DHS 149.10 (3) (a) One or more incident incidents of selling in exchange for a WIC check food instrument, alcohol, an alcoholic beverage or a tobacco product.
DHS 149.10 (3) (b) 2. Intentionally Three or more incidents of intentionally or unintentionally charging a participant or the participant’s proxy more for authorized cardholder more for approved food than non-participants are charged for authorized supplemental approved food.
DHS 149.10 (3) (b) 3. Charging Three or more incidents of charging a participant or the participant’s proxy cardholder more than the current shelf price for an authorized supplemental approved food.
DHS 149.10 (3) (b) 4. Receiving Three or more incidents of receiving or redeeming a WIC check food instrument outside of authorized channels, including receiving or redeeming a WIC check food instrument for a vendor that is not an authorized vendor; or redeeming a WIC check food instrument for food purchased at an address other than the store address that appears on the authorized vendor’s application; or depositing a WIC check into a bank account other than the authorized vendor’s bank account.
DHS 149.10 (3) (b) 5. Charging Three or more incidents of charging for authorized approved food not received by a WIC participant or the participant’s proxy cardholder.
DHS 149.10 (3) (b) 6. Providing Three or more incidents of providing in exchange for a WIC check food instrument, credit, including rainchecks, or non-food items other than alcohol, an alcoholic beverage, a tobacco product, cash, a firearm, ammunition, explosive, or controlled substance as defined in 21 USC 802. DHS 149.10 (4) Mandatory one year disqualification. Unless a determination is made under s. DHS 149.12 (1) that disqualification would result in inadequate participant access, the state WIC office department shall disqualify a vendor from participation in the WIC program for one year for any one of the following: DHS 149.10 (4) (a) Three or more incidents of providing unauthorized unapproved food in exchange for a WIC check food instrument.
DHS 149.10 (4) (b) Three or more incidents of charging for authorized approved food provided in excess of the amount of food listed on the WIC check food instrument.
DHS 149.10 (5) Second mandatory disqualification. When a vendor who previously has received a mandatory disqualification receives a second subsequent mandatory disqualification, the state WIC office department shall impose a double period of disqualification.
DHS 149.10 (6) Third or subsequent mandatory disqualification. When a vendor who has received 2 or more mandatory disqualifications receives another subsequent mandatory disqualification, the state WIC office department shall double the third period of disqualification and all subsequent periods of disqualification.
SECTION 32. DHS 149.10 (7) is repealed and recreated to read:
DHS 149.10 (7) Prior notification. For any violation listed in subs. (3) (b) or (4), the department shall notify the vendor of the initial violation prior to documenting another violation, unless the department determines, in its discretion, on a case-by-case basis, that notifying the vendor would compromise an investigation.
SECTION 33. DHS 149.11 (1) and (2) are repealed and recreated to read:
DHS 149.11 Discretionary vendor sanctions. (1) Up to one year disqualification. The department may send a warning letter to the vendor, require training for designated vendor personnel, require implementation of a corrective action plan, require payment of a forfeiture, require recoupment, disqualify the vendor for no more than one year unless a determination is made under s. DHS 149.12 (1) that disqualification would result in inadequate participant access, or impose any combination of sanctions based on a pattern of the following violations: DHS 149.11 (1) (a) Providing cash for returned approved food.
DHS 149.11 (1) (b) Failing to implement a corrective action plan imposed by the department.
