Ohio Administrative Code › Title 3701 - Department of Health - Administration and Director › Chapter 3701-42 - WIC Program › Section 3701-42-04 - WIC vendor contract

Current through all regulations passed and filed through July 1, 2024
(A) An applicant is not authorized to act as
			 a vendor without a valid contract executed pursuant to rule
			 3701-42-03
			 of the Administrative Code. Vendors whose contracts have expired and applicants
			 who have not yet received authorization from the director to be vendors, shall
			 not accept WIC nutrition cards. The department shall not reimburse for WIC
			 transactions that occurred before a contract becomes effective or after the
			 contract expires.
(B) A contract
			 executed by the director and a vendor pursuant to rule
			 3701-42-03
			 of the Administrative Code shall conform with the provisions of
			 7 C.F.R.
			 246.12 (in effect on September
			 28, 2016) and the applicable provisions of this chapter of the
			 Administrative Code. The contract shall list all locations in the applicable
			 region in which the vendor is authorized to accept WIC nutrition
			 cards.
(C) The director may amend
			 the contract at any time to include or incorporate additional provisions that
			 are required because of changes in federal or state statute, regulation or rule
			 or to improve the administration, operation, or evaluation of the WIC program.
			 The director 
								will notify vendors of any such amendment
			 with as much advance notice as
			 possible. A vendor may accept the amendment or may terminate the contract
			 voluntarily as provided in paragraph (H) of this rule. A vendor that does not
			 voluntarily terminate the contract after receiving notification under this
			 paragraph is deemed to have accepted the amendment. A vendor may not appeal an
			 amendment to the contract.
(D) A
			 contract is not assignable or transferable. A vendor shall not sell, assign, or
			 transfer in any manner its rights under the contract. A sale, assignment, or
			 transfer of a contract shall render the contract void.
(E) A vendor or its authorized
			 representative, which may include the purchaser or operator of the location,
			 shall notify the department in writing, no less than thirty-days prior to any
			 scheduled change of ownership or operation, including, but not limited to: a
			 sale, lease, transfer, bankruptcy, dissolution, or cessation of business, or
			 change of store location. If any of the listed events are not scheduled, the
			 vendor must notify the department, in writing, within thirty days after the
			 occurrence. A "change of ownership or operation" also includes the death of a
			 sole proprietor, the transfer of a controlling interest in, or voluntary or
			 involuntary dissolution of, a vendor that is a corporation, limited liability
			 company, partnership, cooperative association, or other business
			 entity.
(F) A vendor shall cease
			 transacting WIC nutrition cards immediately upon the effective date of a change
			 of ownership or operation unless otherwise authorized by the director in
			 writing. Upon notice or other information that the location is the subject of a
			 change of ownership or operation, the director shall terminate the vendor
			 contract and shall not reimburse vendor for WIC nutrition card transactions
			 that occurred on or after the effective date of termination.
(G) If a vendor does not provide the
			 department with notice of a change of ownership within thirty days from the
			 effective date of the change of ownership, but continues to transact WIC
			 nutrition cards, the director shall not accept a WIC application for processing
			 from the applicant for that location for three years in accordance with
			 paragraph (D) of rule
			 3701-42-03
			 of the Administrative Code. In lieu of not processing an application for three
			 years, the director may require the vendor to reimburse the department any
			 monies paid to the vendor while not authorized or impose a civil money penalty
			 not to exceed two thousand five hundred dollars, whichever is
			 greater.
(H) A vendor may
			 voluntarily terminate the contract for any reason. The vendor shall notify the
			 department in writing at least fifteen days before the effective date of
			 termination. If the vendor owes the department any outstanding payment, it
			 shall pay the amount due in full before the effective date of termination. The
			 department may obtain the amount due by withholding current or future payments
			 that otherwise would be due to the vendor.
(I) Voluntary termination by a vendor shall
			 not affect any action by the director to disqualify or otherwise sanction the
			 vendor pursuant to rule
			 3701-42-08
			 of the Administrative Code, or to deny authorization pursuant to rule
			 3701-42-03
			 of the Administrative Code.
(J) The
			 director may terminate the contract if state or federal funds are not
			 appropriated or otherwise become unavailable. The director shall notify the
			 vendor in writing, by certified mail, return receipt requested or other
			 delivery method that verifies receipt, at least fifteen days before the
			 effective date of the termination.
(K) The director may terminate a contract if
			 the vendor provided false information in connection with its contract or
			 application for authorization.
(L)
			 The director will terminate the vendor's contract if the Ohio secretary of
			 state cancels a vendor's articles of incorporation.