DHS 149.10(3)
(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 shall disqualify a vendor from participation in the WIC program for 3 years for any one of the following:
DHS 149.10(3)(a)
(a) One incident of selling in exchange for a WIC check, alcohol, an alcoholic beverage or a tobacco product.
DHS 149.10(3)(b)1.
1. Claiming reimbursement for the sale of a specific authorized food in an amount that exceeds the vendor's documented inventory of that food for the same period of time.
DHS 149.10(3)(b)2.
2. Intentionally or unintentionally charging a participant or the participant's proxy more for authorized food than non-participants are charged for authorized food.
DHS 149.10(3)(b)3.
3. Charging a participant or the participant's proxy more than the current shelf price for an authorized food.
DHS 149.10(3)(b)4.
4. Receiving or redeeming a WIC check outside of authorized channels, including receiving or redeeming a WIC check for a vendor that is not an authorized vendor; redeeming a WIC check 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.
5. Charging for authorized food not received by a WIC participant or the participant's proxy.
DHS 149.10(3)(b)6.
6. Providing in exchange for a WIC check, credit 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)
(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 shall disqualify a vendor from participation in the WIC program for one year for any one of the following:
DHS 149.10(4)(a)
(a) Three or more incidents of providing unauthorized food in exchange for a WIC check.
DHS 149.10(4)(b)
(b) Three or more incidents of charging for authorized food provided in excess of the amount of food listed on the WIC check.
DHS 149.10(5)
(5) Second mandatory disqualification. When a vendor who previously has received a mandatory disqualification receives a second subsequent mandatory disqualification, the state WIC office shall impose a double period of disqualification.
DHS 149.10(6)
(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 shall double the third period of disqualification and all subsequent periods of disqualification.
DHS 149.10(7)
(7) Prior notification. For violations listed in
subs. (3) (b) and
(4), the state WIC office shall notify the authorized vendor of the initial violation prior to documenting another violation, unless the state WIC office determines that notifying the authorized vendor would compromise an investigation.
DHS 149.10 History
History: CR 07-115: cr.
Register June 2008 No. 630, eff. 7-1-08.
DHS 149.11
DHS 149.11 Discretionary vendor sanctions. DHS 149.11(1)
(1)
Up to one year disqualification. The state WIC office 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, or impose any combination of sanctions for any one of the following violations:
DHS 149.11(1)(b)
(b) Failing to implement a corrective action plan imposed by the state WIC office.
DHS 149.11(2)
(2) Up to 6 month disqualification. The state WIC office 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 6 months, or impose any combination of sanctions for any one of the following violations:
DHS 149.11(2)(a)
(a) Failing to comply with WIC check processing and redemption procedures described in the agreement.
DHS 149.11(2)(b)
(b) Failing to mark or affix the prices of authorized food directly on food containers, on the shelves in close proximity to the food, or in the immediate area where the foods are kept in the customer area of the store.
DHS 149.11(2)(c)
(c) Stocking or selling foods that are not fresh and have expired dates or codes of freshness use-by date in the customer area.
DHS 149.11(2)(d)
(d) Failing to complete training as required by the state WIC office or the state WIC office designee.
DHS 149.11(2)(e)
(e) Failing to maintain the grocery store or pharmacy in a clean, orderly and safe condition.
DHS 149.11(2)(f)
(f) Failing to provide all information requested during the application process and contract period by the state WIC office or the state WIC office designee within the timeframes specified in the request for information.
DHS 149.11(2)(h)
(h) Failing to provide to a WIC participant or the participant's proxy the same courtesies as offered to other customers based on the person's status as a WIC participant.
DHS 149.11 History
History: CR 07-115: cr.
Register June 2008 No. 630, eff. 7-1-08.
DHS 149.12
DHS 149.12 Civil money penalty in lieu of disqualification. DHS 149.12(1)(1) Under
s. DHS 149.10 (2) to
(4), if the state WIC office determines that disqualification of the authorized vendor would result in inadequate participant access, the state WIC office shall impose a civil money penalty in lieu of disqualification. A civil money penalty may not be imposed in lieu of a disqualification under
s. DHS 149.10 (1).
DHS 149.12(2)
(2) The state WIC office shall use the formula under
7 CFR 246.12 to calculate a civil money penalty imposed in lieu of disqualification for violations in
s. DHS 149.10 (2) to
(4). The civil money penalty may not exceed $10,000 for each violation. When during the course of a single investigation the state WIC office determines a vendor has committed multiple violations, the state WIC office shall impose a civil money penalty for each of the violations, not to exceed $40,000 for a single investigation.
DHS 149.12(3)
(3) If a vendor does not pay, only partially pays, or fails to timely pay a civil money penalty, the state WIC office shall disqualify the vendor for the length of the disqualification corresponding to the most serious violation for which the civil money penalty was assessed.
DHS 149.12(4)
(4) The state WIC office may use installment plans for the collection of civil money penalties.
DHS 149.12(5)
(5) The state WIC office may double civil money penalties up to the limits allowed under
sub. (2).
DHS 149.12(6)
(6) The state WIC office may not impose a civil money penalty in lieu of disqualification for third or subsequent violations that mandate disqualification.
DHS 149.12 History
History: CR 07-115: cr.
Register June 2008 No. 630, eff. 7-1-08.
DHS 149.13
DHS 149.13 Recoupment. The state WIC office may recoup excess payments made to the vendor, as verified by the state WIC office, resulting from the vendor's violation of
s. DHS 149.10. If a recoupment is imposed, the state WIC office shall also impose an enforcement assessment of 50 percent of the amount of the recoupment imposed.
DHS 149.13 History
History: CR 07-115: cr.
Register June 2008 No. 630, eff. 7-1-08.
DHS 149.14
DHS 149.14 Reciprocal food stamp program actions. DHS 149.14(1)(1) The state WIC office shall disqualify from the WIC program a vendor who is disqualified from the food stamp program.
DHS 149.14(2)
(2) The state WIC office shall impose a civil money penalty in lieu of a disqualification for a food stamp disqualification if the state WIC office determines that WIC disqualification would result in inadequate participant access.
DHS 149.14(3)
(3) The state WIC office may disqualify a vendor who has had a civil money penalty imposed by the food stamp program in lieu of disqualification.
DHS 149.14 History
History: CR 07-115: cr.
Register June 2008 No. 630, eff. 7-1-08.
DHS 149.15
DHS 149.15 Written notice. The state WIC office shall begin an adverse action, including disqualification, denial, or imposition of a civil money penalty, forfeiture, recoupment or enforcement assessment by serving upon the vendor a written notice of the action which shall include applicable appeal rights. With the exception of actions under
s. DHS 149.10 (1), the service shall be made by certified mail or personal delivery at least 15 days in advance of the effective date of the action described in the notice.
DHS 149.15 History
History: CR 07-115: cr.
Register June 2008 No. 630, eff. 7-1-08.
DHS 149.16
DHS 149.16 Voluntary withdrawal or non-renewal of agreement. Except as provided in the discretionary sanctions listed in
s. DHS 149.11, the state WIC office may not accept an authorized vendor's voluntary withdrawal from the WIC program, or use non-renewal of the vendor contract as an alternative to disqualification.
DHS 149.16 History
History: CR 07-115: cr.
Register June 2008 No. 630, eff. 7-1-08.
DHS 149.17
DHS 149.17 Summary suspension. If the department finds that public health, safety or welfare imperatively requires emergency action and incorporates a finding to that effect in its order, summary suspension of WIC authorization may be ordered pending proceedings for revocation or other action. Such proceedings shall be promptly instituted and determined.
DHS 149.17 History
History: CR 07-115: cr.
Register June 2008 No. 630, eff. 7-1-08.
DHS 149.18
DHS 149.18 Vendor and food distribution centers appeals. DHS 149.18(1)(b)
(b) Requests appealing an adverse action shall be in writing and shall be filed within 15 days after service of notice of the adverse action. A request shall be considered filed on the date of actual receipt by the agency, or the date of the postmark, whichever is earlier. A request filed by facsimile is complete upon transmission. If the request is filed by facsimile transmission and such transmission is complete between 5 p.m. and midnight, one day shall be added to the prescribed period.
DHS 149.18(2)
(2) Requests for hearing. Requests for an administrative hearing shall be filed with the department of administration's division of hearings and appeals.
DHS 149.18 Note
Note: Requests for an administrative hearing should be addressed to the Division of Hearings and Appeals, P.O. Box 7875, Madison, Wisconsin 53707-7875 or faxed to 608-264-9885. Requests may be delivered in person to that office at 5005 University Avenue, Room 201, Madison, Wisconsin.
DHS 149.18(3)(b)
(b) The validity or appropriateness of the state WIC office's selection criteria.
DHS 149.18(3)(c)
(c) The validity or appropriateness of the state WIC office's vendor peer group criteria.
DHS 149.18(3)(d)
(d) The validity or appropriateness of the state WIC office's criteria used to identify a vendor that is an above-50-percent vendor or the criteria used to determine maximum allowable payment to an above-50-percent vendor.
DHS 149.18(3)(e)
(e) The validity or appropriateness of the state WIC office's participant access criteria and the state WIC office's determination regarding participant access to WIC services.
DHS 149.18(3)(f)
(f) The state WIC office's determination of whether a vendor had an effective policy and program in effect to prevent trafficking
of WIC benefits
and whether the vendor owner was involved in the conduct of the violation.
DHS 149.18(3)(g)
(g) Denial of authorization if the state WIC office vendor authorization is subject to procurement procedures applicable to the state agency.
DHS 149.18(3)(h)
(h) Disputes regarding WIC check payments and vendor claims, other than the opportunity as permitted by
7 CFR 246.12(k)(3) to justify or correct a vendor overcharge or other error.
DHS 149.18(3)(i)
(i) Disqualification of an authorized vendor as a result of disqualification from the food stamp program.
DHS 149.18(4)(a)(a) As an alternative to an administrative hearing, a vendor may request from the department an abbreviated review for any of the following actions taken by the state WIC office:
DHS 149.18(4)(a)1.
1. Denial of authorization based on a food stamp program disqualification or civil money penalty in lieu of disqualification from the food stamp program.
DHS 149.18(4)(a)2.
2. Denial of authorization based on vendor selection criteria if the basis of the denial is a WIC vendor sanction or a food stamp program withdrawal of authorization or disqualification.
DHS 149.18(4)(a)3.
3. Termination of the agreement because of a change in ownership or location or cessation of operations.
DHS 149.18(4)(b)
(b) Requests for abbreviated review shall be filed with the state WIC office.
DHS 149.18 Note
Note: Requests for an abbreviated review should be addressed to the Wisconsin WIC Program Director, P.O. Box 2659, Madison, Wisconsin, 53701-2659, or faxed to 608-266-3125. Requests may be delivered in person to that office at 1 W. Wilson Street, Room 243, Madison, Wisconsin.
DHS 149.18(4)(c)1.1. A vendor request for an abbreviated review shall be in writing and include all of the following:
DHS 149.18(4)(c)1.b.
b. A description of the adverse action for which the vendor requests an abbreviated review.
DHS 149.18(4)(c)1.c.
c. A specific description of the mistake in fact or law which the vendor contends constitutes reasonable grounds for reversing the decision of the state WIC office to deny an authorization or terminate an agreement. If the vendor asserts that a mistake in fact was made, the request shall include a concise statement of the essential facts which the vendor intends to establish at the review. If the vendor asserts a mistake in law was made, the request shall include a statement of the law upon which the vendor relies.
DHS 149.18(4)(c)2.
2. The agency review shall be conducted by a decision-maker who is someone other than the person who rendered the initial decision on the action.
DHS 149.18(4)(c)3.
3. The decision-maker's determination shall be based solely on whether the state WIC office correctly applied federal and state statutes, regulations, policies, and procedures governing the program, according to the information provided to the vendor in the notice of denial of authorization or termination of agreement and the vendor's response.
DHS 149.18(4)(c)4.
4. If the designated decision-maker determines that a conference with the parties would assist in the completion of his or her review, the decision-maker may issue a notice of conference, prepared on forms prescribed by the department and including a description of conference procedures, and inviting the vendor and all other parties to participate. A conference may not be held without the consent of the vendor.
DHS 149.18(4)(c)5.
5. The decision-maker shall issue written notification of the abbreviated review decision.
DHS 149.18(4)(c)6.
6. The decision-maker's review decision shall constitute the agency's final decision. Review decisions shall include notice of a vendor's right to appeal the determination to circuit court.
DHS 149.18 History
History: CR 07-115: cr.
Register June 2008 No. 630, eff. 7-1-08;
correction in (1) (a) made under s. 13.92 (4) (b) 7., Stats., Register July 2011 No. 667.
