New Mexico Administrative Code › Title 7 - HEALTH › Chapter 31 - HEALTH NUTRITION PROGRAMS › Part 2 - SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN INFANTS AND CHILDREN VENDOR REQUIREMENTS › Section 7.31.2.20 - VENDOR SANCTIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
GENERALLY:
The State WIC Office may impose sanctions upon a vendor for
				non-compliance with the program. Sanctions may include immediate
				disqualification from the program, or such other lesser penalties, in addition
				to or in lieu of disqualification, as the State WIC Office deems appropriate to
				the nature and severity of the violation(s). In addition to sanctions which may
				be imposed by the state WIC office, a vendor who commits fraud or abuse of the
				system, or who deals unlawfully in WIC food instruments, or who aids and abets
				another in so doing, is liable to prosecution and fines under state and federal
				law.
B.
PENALTIES &
				OFFENSES:
(1) Disqualification. Grounds
				for outright disqualification of a vendor from the program include, but are not
				limited to, the following:
(a) Redeeming WIC
				food instruments while the vendor is suspended or disqualified.
(b) Charging WIC customers tax on WIC
				purchases.
(c) Failing to enter the
				actual purchase price of authorized foods and/or infant formulas purchased on
				WIC food instruments at the time of redemption.
(d) Redeeming WIC food instruments for fixed
				amounts that do not reflect actual authorized food package costs.
(e) Redeeming WIC food instruments for dollar
				amounts greater than actual authorized food package costs.
(f) Causing or permitting unfair or
				discriminatory treatment of WIC participants, or otherwise violating the civil
				rights of WIC participants.
(g)
				Price fixing of WIC authorized foods and/or infant formulas.
(h) Altering WIC food instruments for
				fraudulent or unlawful purposes.
(i) Providing valuable consideration other
				than WIC authorized foods or formulas, in exchange for WIC food instruments, or
				negotiating WIC food instruments for cash, credit or non-food items.
(j) Submitting falsified WIC food price
				information to the State WIC Office.
(k) Aiding or abetting WIC participants in
				fraud or abuse of the program, or in the unlawful dealing in WIC food
				instruments.
(l) Negotiating stolen
				or counterfeit food instruments.
(m) Providing materially false or misleading
				information in an application.
(n)
				Failing to submit timely applications or re-applications.
(o) Otherwise committing fraud or abuse of
				the WIC program.
(p) Criminal
				conviction of fraud or abuse related to the WIC program or the Food Stamp
				Program.
(q) If the Food Stamp
				Program disqualifies a vendor, WIC shall disqualify the vendor for the same
				length of time as the Food Stamp Program disqualification. (Disqualification
				from the WIC program may also result in a vendor being disqualified from the
				Food Stamp Program).
(r) If the
				Food Stamp Program assesses a civil monetary penalty (CMP) to a vendor in lieu
				of disqualification, WIC may disqualify for the length of time the vendor would
				otherwise have been disqualified in the Food Stamp Program.
(s) Criminal conviction for trafficking in
				food instruments or selling firearms, ammunition, explosives, or controlled
				substances in exchange for food instruments.
(t) One incidence of buying or selling food
				instruments for cash (trafficking); or one incidence of selling firearms,
				ammunition, explosives, or controlled substances in exchange for food
				instruments.
(u) One incidence of
				the sale of alcohol or alcoholic beverages or tobacco products in exchange for
				food instruments.
(v) A pattern of
				claiming reimbursement for the sale of an amount of a specific supplemental
				food item which exceeds the stores documented inventory of that supplemental
				food item for a specific period of time.
(w) A pattern of charging participants more
				for supplemental food than non-WIC customers or charging participants more than
				the current shelf or contract price.
(x) A pattern of receiving, transacting
				and/or redeeming food instruments outside of authorized channels, including the
				use of an unauthorized vendor and/or unauthorized person.
(y) A pattern of charging for supplemental
				food not received by the participant.
(z) A pattern of providing credit or non-food
				items, other than alcohol, alcoholic beverages, tobacco products, cash,
				firearms, ammunition, explosives or controlled substances in exchange for food
				instruments.
(aa) A pattern of
				providing unauthorized food items in exchange for food instruments, including
				charging for supplemental foods provided in excess of those listed on the food
				instrument.