DHS 149.03 (12) “Direct distribution center" means an entity, other than a vendor, that is under contract with the department or a local agency under s. 253.06 (3m), Stats., to distribute approved food to participants. DHS 149.03 (13) “Disqualification" means the act by the department of ending WIC participation of a vendor, direct distribution center, infant formula supplier, or participant because of a program violation.
DHS 149.03 (14) “EBT” or “Electronic benefit transfer system” has the meaning provided in s. 253.06 (1), Stats. DHS 149.03 (15) ”EBT-capable” means a cash register system or payment device, approved by the department, that can accurately and securely obtain the WIC benefit balance associated with a food instrument, maintain the necessary files, such as the approved product list, and successfully complete WIC transactions.
DHS 149.03 (16) “Enforcement assessment" means the amount added to a forfeiture or recoupment required under s. 253.06 (5) (c), Stats. DHS 149.03 (17) “Family" means a household or economic unit composed of a person or group of persons, related or unrelated who usually live together and whose production of income and consumption of goods are related. Exceptions include residents of a homeless facility or an institution shall not be considered as members of a single family. A foster child is counted as a separate family unit of one.
DHS 149.03 (18) “Food instrument” has the meaning provided in s. 253.06 (1), Stats. DHS 149.03 (19) “Food sales" means the sales of all foods that are eligible items under SNAP.
DHS 149.03 (20) “Forfeiture" means the sum of money required to be paid to the department as a result of a vendor violation as provided in s. 253.06 (5) (b) (4), Stats. DHS 149.03 (21) “Grocery store" means a retail store, or a store authorized by SNAP as a specialty store, that sells a general line of food such as breads, cereals, fruits and vegetables, meats, fish, poultry, and dairy products.
DHS 149.03 (22) “Incident” means one or more compliance buys, as defined in 7 CFR 246.2, conducted on the same date, or one sub-category level designation within the approved product list (APL) as used in an inventory audit, or a program violation observed on one date for discretionary sanctions. DHS 149.03 (23) “Initial authorization" means the authorization of a specific business entity to serve as a vendor at a designated location.
DHS 149.03 (24) “Inventory audit” means the examination of invoices or other proofs of purchase to determine whether a vendor has purchased sufficient quantities of approved foods compared to valid claims for payment.
DHS 149.03 (26) “Local agency" means an entity that has a contract with the department to provide WIC services including preauthorization site visits, eligibility determination, WIC benefit issuance, and nutrition counseling for participants.
DHS 149.03 (27) “Local agency clinic" means a site established by a local agency where WIC participants receive services including the local agency main office or its satellite locations.
DHS 149.03 (28) “Maximum food price" means the maximum amount a vendor within each vendor peer group may charge for an approved food item or for a standardized combination of foods.
DHS 149.03 (29) “Minimum stock requirement" means the food items, categories, approved sizes and quantities of foods that vendors are required to maintain in the customer area as specified in the vendor manual and stock price survey.
DHS 149.03 (30) “Non-sale price" means the price of an item that has not been reduced for a limited time.
DHS 149.03 (31) “Preauthorization site visit" means the on-site review of the vendor to verify that the vendor meets WIC program requirements, including minimum stock requirements, pricing, freshness, and cleanliness.
DHS 149.03 (32) “Participant" means a person who is eligible for and receives services under s. 253.06, Stats., including an infant, child under age 5, and a pregnant, breastfeeding, or postpartum woman within six months of delivery. DHS 149.03 (33) “Pattern” means two or more documented incidents subject to discretionary sanctions.
DHS 149.03 (34) “Pharmacy" means an establishment that is licensed to operate as a pharmacy under s. 450.06, Stats. “Pharmacy" includes a person conducting transactions on behalf of the pharmacy, including the owner, manager, a representative, an employee or any other individual who directly or indirectly participates in the operation of the pharmacy. DHS 149.03 (35) “SNAP" means the federal Supplemental Nutrition Assistance Program under 7 USC 2011 to 2029, formerly known as Food Stamp Program, and known in Wisconsin as FoodShare Program. DHS 149.03 (36) “Sanction" means a penalty imposed by the local agency or department on a vendor, direct distribution center, infant formula supplier or participant because of a violation of this chapter and includes denial of an application, termination of authorization for a vendor or termination of the contract for a direct distribution center, disqualification, recoupment, forfeiture, enforcement assessments under s. 253.06 (5) (b), Stats., or civil money penalties. DHS 149.03 (37) “Standardized combination of foods" means a group of approved foods selected by the department and used for cost containment and vendor eligibility.
DHS 149.03 (38) “Stock price survey" means the department form used to record current vendor non-sale shelf prices for approved foods, which must be submitted with a vendor application when requested by the department.
(Note) The stock price survey may be obtained from the WIC vendor website at http://www.dhs.wisconsin.gov/wic/vendor/application/htm.
DHS 149.03 (39) “USDA" means the United States department of agriculture.
DHS 149.03 (40) “Vendor" means a sole proprietorship, partnership, cooperative association, corporation, or other business entity operating one or more grocery stores or pharmacies authorized by the department to provide approved foods to participants under a retail food delivery system. Each location operated by a business entity constitutes a separate vendor and must be authorized separately from other stores operated by the business entity.
DHS 149.03 (41) “Vendor authorization” means the determination by the department that assesses, selects, and then enters into an agreement with a grocery store or pharmacy that applies or reapplies to be authorized as a vendor.
DHS 149.03 (42) “Vendor manual" means the electronic or printed manual the department publishes that describes the WIC program and program policies related to the provision of approved food to participants, including program policies, periodic updates and amendments, applicable rules, and other requirements.
DHS 149.03 (43) “Vendor peer group" means a group of 2 or more vendors determined by the department to have similar characteristics and used to set distinct competitive price criteria and allowable reimbursement levels.
DHS 149.03 (44) “WIC" or “WIC Program" means the special supplemental nutrition program for women, infants and children established pursuant to 42 USC 1786, 7 CFR 246, and s. 253.06, Stats. DHS 149.03 (45) “WIC benefit" means a WIC food instrument, approved food available with a food instrument, approved food purchased with a food instrument, or a WIC breast pump.
SECTION 4. DHS 149.04 (title) and (intro.) are amended to read:
DHS 149.04 Food Direct distribution centers. Food Direct distribution centers shall comply with this chapter and s. 253.06, Stats.
SECTION 5. DHS 149.05 is repealed and recreated to read:
DHS 149.05 Minimum requirements for vendor authorization. A vendor may be eligible to become an authorized vendor, or remain an authorized vendor if all of the following conditions are met:
DHS 149.05 (1) The vendor is located in Wisconsin.
DHS 149.05 (2) The vendor has a fixed location unless otherwise allowed by the department, as in the case of a designated disaster or emergency.
DHS 149.05 (3) The vendor is SNAP authorized.
DHS 149.05 (4) The vendor has a current retail food establishment license.
DHS 149.05 (5) The vendor is registered and maintains registration in good standing with the Wisconsin department of financial institutions (DFI).
DHS 149.05 (6) The vendor demonstrates business integrity. Activities that indicate a lack of business integrity include fraud, antitrust violations, embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, obstruction of justice, or aiding and abetting any of these activities.
DHS 149.05 (7) The vendor and any representative, agent, manager, employee, or other person who directly or indirectly participates in the operation of the grocery store or pharmacy has not been convicted of a crime, or has a civil or criminal judgment entered against them in Wisconsin or any other state during the last 6 years for an activity that would indicate a lack of business integrity, including possession of a controlled substance with intent to deliver.
DHS 149.05 (8) The vendor and any of its representatives, agents, managers, employees or other persons who directly or indirectly participate in the operation of the grocery store or pharmacy, who has current or prior involvement with WIC or SNAP, has an acceptable history with WIC and SNAP. In determining whether the history is acceptable, the department shall consider the person’s history with either WIC or SNAP, including whether the person conducts or has conducted business without authorization by WIC or SNAP as applicable.
DHS 149.05 (9) The vendor demonstrates the business was purchased in good faith with a verifiable form of payment.
DHS 149.05 (10) The vendor is not currently disqualified from SNAP and has not had a SNAP civil money penalty suspended for hardship where the disqualification period that would otherwise have been imposed has not expired.
DHS 149.05 (11) The vendor has not been adjudicated to be delinquent in the payment of taxes under ch. 71, 72, 76, 77, 78 or 139, Stats. DHS 149.05 (12) The vendor has not been sold by its previous owner to another vendor or owner in an attempt to circumvent a WIC sanction. The department may consider such factors as whether the previous owner sold the grocery store or pharmacy to a person who is related by blood or marriage to the previous owner or sold to any individual or organization for less than the grocery store or pharmacy’s fair market value, or is unable to provide verifiable proof of payment.
DHS 149.05 (13) The vendor has no outstanding forfeitures, recoupment assessments, enforcement assessments, or civil money penalties that were levied against that vendor for a violation of this chapter, or for a violation of s. 253.06, Stats., or 7 CFR 246. DHS 149.05 (14) The vendor has an EBT capable cash register system or payment device, approved by the department. The system or device must have acceptable documented testing prior to a WIC participant purchase.
DHS 149.05 (15) The vendor has sufficient EBT capable cash register system terminals or payment devices deployed in accordance with the minimum lane coverage provisions of s. 7 CFR 246.12 (z) (2). DHS 149.05 (16) The vendor is not an above-50-percent vendor at the time of the initial application for authorization to be a WIC vendor.
DHS 149.05 (17) The vendor’s maximum price for a standardized combination of foods is the same or less than the prices charged by other vendors in the vendor’s peer group.
DHS 149.05 (18) The vendor purchases infant formula provided to participants only from a supplier listed on the authorized infant formula supplier list.
DHS 149.05 (19) The vendor has established hours of operation which include a minimum of two 4-hour blocks of time on each of 5 days per week and daily operating hours are consistent from week to week.
DHS 149.05 (20) The vendor has not accepted WIC food instruments before becoming an authorized vendor.
DHS 149.05 (21) The vendor meets the minimum stock requirement on shelves or in coolers in the customer area, unless otherwise stated in the vendor agreement.
DHS 149.05 (22) The vendor meets conditional authorization terms, if required.
SECTION 6. DHS 149.06 (1) (intro.) is amended to read:
DHS 149.06 (1) Only persons who meet the eligibility requirements under s. DHS 149.05 may apply for authorization as a WIC vendor. An eligible person who wishes to apply for authorization shall apply to the state WIC office department on an application form obtained from the department or department’s office. The person applying for initial authorization shall complete each application form fully and accurately; submit for each application a stock price survey indicating the non-sale prices of approved food available on the day the application is submitted to the state WIC office department; participate in training as required under sub. (2); and provide additional information requested from by the state WIC office department or the state WIC office designee, and demonstrate an EBT capable cash register system or payment device.
SECTION 7. DHS 149.06 (1) (Note) is created to read:
DHS 149.06 (1) (Note): The application form can be obtained from the WIC vendor website at http://www.dhs.wisconsin.gov/wic/vendor/application/htm.
SECTION 8. DHS 149.06 (1) (a) to (c) and (2) are amended to read:
DHS 149.06 (1) (a) Multiple locations. If a person wishes to accept and redeem WIC checks food instruments at multiple locations, a separate application shall be completed and submitted for each grocery store or pharmacy for which the person or business entity wishes to accept and redeem WIC checks food instruments.
DHS 149.06 (1) (b) Change of ownership. If a person, group of persons, or business entity takes ownership, or becomes a majority owner or shareholder, whether by gift, purchase, or lease of an authorized a vendor, the person, persons or business entity taking ownership shall submit an application at least 15 days before change of ownership.
DHS 149.06 (1) (c) Change of vendor location. Except as provided in s. DHS 149.08 (6), if a vendor changes its location the person responsible for the change shall complete an application for authorization for the new location. The vendor may not accept or redeem WIC checks food instruments at the new location until the vendor has received receives authorization from the state WIC office department for the new location. DHS 149.06 (2) As part of the application process, the vendor or its designee, for each location for which authorization is requested, shall participate in a training session at a time and location designated by the state WIC office department or the state WIC office department designee.
SECTION 9. DHS 149.07 (1) (c) 5. is created to read:
DHS 149.07 (1) (c) 5. If the vendor fails to submit a completed initial application, or fails to submit requested information within 90 days of initial submission, the department may close the application without action. The vendor may submit a new application.
SECTION 10. DHS 149.07 (1) (d) and (e), and (2) to (4) are repealed and recreated to read:
DHS 149.07 (1) (d) A vendor meeting the preauthorization site visit requirements shall participate in a WIC-approved training session at a time, date, and location designated by the department or local agency.
DHS 149.07 (1) (e) The department shall provide the WIC vendor agreement and vendor manual to the vendor upon satisfactory completion of the application requirements under this subsection and ss. DHS 149.05 and 149.06. DHS 149.07 (2) Reapplication for Authorization. (a) The vendor agreement does not constitute a license or a property interest. If the vendor wishes to continue to be authorized beyond the period of its current agreement, the vendor must reapply for authorization.
DHS 149.07 (2) (b) Within 120 days after receipt of a completed application for continued authorization as a vendor for a new contract period, the department shall either approve or deny the application for WIC authorization.
DHS 149.07 (2) (c) A new application shall be submitted for each authorization period.
DHS 149.07 (2) (d) Any conditions placed on the initial authorization remain in place unless the authorization is amended or terminated.
DHS 149.07 (3) Expiration or termination of authorization. (a) Unless terminated earlier, a WIC authorization shall expire on October 31, 2019, and every 3 years thereafter on October 31, regardless of the date initial authorization was granted.
DHS 149.07 (3) (b) Vendor authorization terminates upon a change of ownership, including when the department determines that a change of location constitutes a change of ownership.
DHS 149.07 (4) Denial of authorization. (a) The department may deny vendor authorization for any one of the following reasons:
DHS 149.07 (4) (a) 1. The vendor does not meet the requirements under sub. (1) or s. DHS 149.05 or 149.06. Except for the initial preauthorization site visit, the department may waive any WIC authorization requirement if the department determines that denying an application for authorization would inhibit participant access to WIC services. 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.
