Chapter DHS 149

DHS 149.03(37) (37) “WIC benefit” means WIC checks, authorized food purchased with WIC checks, and WIC breast pumps.

DHS 149.03(38) (38) “WIC check” means the negotiable instrument distributed by the department for use by a participant to purchase authorized food.

DHS 149.03(39) (39) “WIC participant identification” means the document issued by a local project to the participant or the participant’s parent or guardian that includes the signature of the participant or the participant’s parent or guardian as well as the signature of each proxy authorized to spend the participant’s WIC checks.

DHS 149.03(40) (40) “WIC program” or “WIC” means the special supplemental nutrition program for women, infants and children established pursuant to 42 USC 1786, and 7 CFR 246, and s. 253.06, Stats.

DHS 149.03 History History: CR 07-115: cr. Register June 2008 No. 630, eff. 7-1-08; correction in (10) made under s. 13.92 (4) (b) 6., Stats., Register January 2009 No. 637; corrections in (13), (25), (28) and (40) made under s. 13.92 (4) (b) 7., Stats., Register July 2011 No. 667.

subch. II of ch. DHS 149 Subchapter II — Vendor Authorization And Responsibilities

DHS 149.04 DHS 149.04 Food distribution centers. Food distribution centers shall comply with this chapter and s. 253.06, Stats.

DHS 149.04 History History: CR 07-115: cr. Register June 2008 No. 630, eff. 7-1-08; correction made under s. 13.92 (4) (b) 7., Stats., Register July 2011 No. 667.

DHS 149.05 DHS 149.05 Minimum requirements for vendor authorization. A vendor may be eligible to become an authorized vendor, remain an authorized vendor, or be eligible for renewal as an authorized vendor if all of the following conditions are met:

DHS 149.05(1) (1) The vendor is located in Wisconsin.

DHS 149.05(2) (2) The vendor has a fixed location unless otherwise allowed by the state WIC office, as in the case of a designated disaster or emergency.

DHS 149.05(3) (3) The vendor demonstrates business integrity.

DHS 149.05 Note Note: Activities that would 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(4) (4) The vendor and any of its representatives, agents, managers, employees, or other persons who directly or indirectly participates in the operation of the grocery store or pharmacy have not been convicted of a crime, or had 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.

DHS 149.05(5) (5) 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 the food stamp program, has an acceptable history with WIC and the food stamp program. In determining whether the history is acceptable, the state WIC office shall consider the person’s history with either WIC or the food stamp program, including whether the person conducts or has conducted business without authorization by WIC or the food stamp program as applicable.

DHS 149.05(6) (6) The vendor is not currently disqualified from the food stamp program and has not had a food stamp program civil money penalty suspended for hardship where the disqualification period that would otherwise have been imposed has not expired.

DHS 149.05(7) (7) The vendor has not been adjudged to be delinquent in the payment of taxes under ch. 71, 72, 76, 77, 78 or 139, Stats.

DHS 149.05(8) (8) The vendor has not been sold by its previous owner to another vendor or owner in an attempt to circumvent a WIC sanction. The state WIC office 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.

DHS 149.05(9) (9) 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(10) (10) 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(11) (11) 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(12) (12) The vendor purchases infant formula provided to participants only from a supplier listed on the authorized infant formula provider list.

DHS 149.05(13) (13) The vendor has regular, 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(14) (14) The vendor has not accepted WIC checks before becoming an authorized vendor.

DHS 149.05(15) (15) The vendor meets the minimum stock requirement on shelves or in coolers in the customer area, unless otherwise specified in the contract.

DHS 149.05 History History: CR 07-115: cr. Register June 2008 No. 630, eff. 7-1-08; correction in (9) made under s. 13.92 (4) (b) 7., Stats., Register July 2011 No. 667.

DHS 149.06 DHS 149.06 Application requirements.

DHS 149.06(1) (1) Only persons who meet the eligibility requirements under s. DHS 149.05 may apply for authorization. An eligible person who wishes to apply for authorization shall apply to the state WIC office on an application form obtained from the state WIC 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; participate in training as requested under sub. (2); and provide additional information requested from the state WIC office or the state WIC office designee. An application for authorization shall be submitted under each of the following circumstances:

DHS 149.06(1)(a) (a) Multiple locations. If a person wishes to accept and redeem WIC checks at multiple locations, a separate application shall be completed and submitted for each grocery store or pharmacy for which the person wishes to accept and redeem WIC checks.

DHS 149.06(1)(b) (b) Change of ownership. If a person takes ownership, whether by gift, purchase, or lease of an authorized vendor, the person taking ownership shall submit an application at least 15 days before change of ownership.

DHS 149.06(1)(c) (c) Change of vendor location. With the exception of s. DHS 149.08 (6), if the location of an authorized vendor is changed, 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 at the new location until the vendor has received authorization from the state WIC office for the new location.

DHS 149.06 Note Note: See s. DHS 149.08 (6) for procedures for reporting a change of location.

DHS 149.06(2) (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 or the state WIC office designee.

DHS 149.06 History History: CR 07-115: cr. Register June 2008 No. 630, eff. 7-1-08.

DHS 149.07 DHS 149.07 Action on application.

DHS 149.07(1) (1) Initial authorization. Within 60 days after receipt by the state WIC office of a fully and accurately completed application for initial authorization, state WIC office staff shall approve or deny the application after doing all of the following:

DHS 149.07(1)(a) (a) Determining whether the applicant for initial authorization meets the eligibility requirements under s. DHS 149.05.

DHS 149.07(1)(b) (b) Conducting a preauthorization site visit if the applicant meets all of the application requirements and is eligible under ss. DHS 149.05 and 149.06 for authorization. During the preauthorization visit, staff of the state WIC office or the state WIC office designee shall determine whether all of the following requirements are being met:

DHS 149.07(1)(b)1. 1. The vendor meets the minimum stock requirement on shelves or in coolers in the customer area, unless otherwise specified in the agreement.

DHS 149.07(1)(b)2. 2. The vendor marks or affixes 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 149.07(1)(b)3. 3. The vendor’s prices are substantially the same as those listed on the stock price survey submitted with the application for authorization.

DHS 149.07(1)(b)4. 4. The vendor maintains the grocery store or pharmacy in a clean, orderly, and safe condition.

DHS 149.07(1)(b)5. 5. The vendor’s foods are fresh and do not have expired dates or codes of freshness use-by date in the customer area.

DHS 149.07(1)(c) (c)

DHS 149.07(1)(c)1. 1. If all of the requirements of the preauthorization site visit are not met, the state WIC office may issue a corrective action plan. Following receipt of the corrective action plan, the vendor may submit information describing how the items in the correction action plan have been addressed and request a second preauthorization site visit.

DHS 149.07(1)(c)2. 2. If the vendor passes the second preauthorization site visit, the state WIC office shall proceed with the authorization process for the vendor.

DHS 149.07(1)(c)3. 3. If the vendor fails the second preauthorization site visit, the vendor may not submit a WIC vendor application until 6 months after the date of the denial of the first failed preauthorization site visit.

DHS 149.07(1)(c)4. 4. If the vendor does not submit the corrective action plan to the state WIC office within 6 months from the date of the notification of denial, the vendor shall file a new application.

DHS 149.07(1)(d) (d) If the vendor meets the preauthorization site visit requirements, the vendor or the vendor’s designee shall participate in a training session at a location designated by the state WIC office or the state WIC office designee.

DHS 149.07(1)(e) (e) The state WIC office shall distribute the WIC vendor agreement and vendor stamp 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) (2) Renewal authorization. Within 120 days after receipt by the state WIC office of a fully and accurately completed application for continued authorization as a vendor for a new contract period, the state WIC office shall either approve or deny the application for authorization.

DHS 149.07(3) (3) Expiration or termination of authorization.

DHS 149.07(3)(a) (a) Vendor authorizations shall expire on October 31, 2010 and every 3 years thereafter on October 31, regardless of the date initial authorization was granted, unless the vendor is earlier disqualified. A new application shall be submitted for each 3-year authorization period.

DHS 149.07(3)(b) (b) Vendor authorization shall terminate automatically upon a change of ownership, including when the state WIC office determines that a change of location constitutes a change of ownership.

DHS 149.07(4) (4) Denial of authorization.

DHS 149.07(4)(a) (a) The state WIC office may deny vendor authorization for any one of the following reasons:

DHS 149.07(4)(a)1. 1. The vendor does not meet the requirements under sub. (1) or s. DHS 149.05 or 149.06. If the state WIC office determines that denying an application for authorization would inhibit participant access to WIC services, the state WIC office may waive any requirement for vendor eligibility for authorization.

DHS 149.07(4)(a)2. 2. The vendor does not comply with requirements of the WIC program, including federal and state statutes, local ordinances, or federal and state regulations relating to WIC program operation, or other food and nutrition service programs of the USDA.

DHS 149.07(4)(a)3. 3. The application contains false information.

DHS 149.07(4)(a)4. 4. The vendor is in violation of any other applicable federal, state, or local health protection laws or ordinances.

DHS 149.07(4)(b) (b) If the state WIC office denies an application, the state WIC office shall give the vendor reasons for the denial in writing and inform the vendor of the right to appeal that decision under s. DHS 149.18.

DHS 149.07 History History: CR 07-115: cr. Register June 2008 No. 630, eff. 7-1-08.

DHS 149.08 DHS 149.08 Vendor responsibilities.

DHS 149.08(1) (1) Compliance with federal, state and local requirements. An authorized vendor shall comply with all of the following:

DHS 149.08(1)(a) (a) The WIC program requirements specified in this chapter, s. 253.06, Stats., and 7 CFR 246.

DHS 149.08(1)(b) (b) Applicable federal, state and local health protection laws or ordinances.

DHS 149.08(1)(c) (c) The current WIC vendor agreement.

DHS 149.08(2) (2) Prohibited practices. A vendor may not do any of the following:

DHS 149.08(2)(a) (a) Provide in exchange for a WIC check to a participant or a participant’s proxy alcohol, an alcoholic beverage, a tobacco product or any other food other than the authorized food specified on the WIC check, or provide any coupon or certificate for these items contingent upon spending the WIC check or provided to a participant or a participant’s proxy for a purchase made with a WIC check.

DHS 149.08(2)(b) (b) Provide cash in exchange for a WIC check to a participant or a participant’s proxy.

DHS 149.08(2)(c) (c) Charge sales tax on WIC food purchases.

DHS 149.08(2)(d) (d) Provide in exchange for a WIC check to a participant or a participant’s proxy authorized foods in quantities that are more than the quantities specified on the WIC check.

DHS 149.08(3) (3) Required practices. An authorized vendor shall do all of the following:

DHS 149.08(3)(a) (a) Comply with WIC check processing and redemption procedures described in the agreement.

DHS 149.08(3)(b) (b) In conjunction with a change of ownership, timely submit in the vendor’s bank account all WIC checks for redemption.

DHS 149.08(3)(c) (c) Charge the participant or the participant’s proxy prices that are the same as or lower than prices charged to other customers.

DHS 149.08(3)(d) (d) Provide stock price surveys to the state WIC office upon request of the state WIC office or the state WIC office designee.

DHS 149.08(3)(e) (e) 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 149.08(3)(f) (f) Charge a price for an authorized food or standardized combination of foods that is the same as or lower than the maximum food price established by the state WIC Office.

DHS 149.08(3)(g) (g) Maintain prices of authorized foods at levels that are required for vendor authorization.

DHS 149.08(3)(h) (h) Keep a copy of the WIC agreement on file.

DHS 149.08(3)(i) (i) Display a sign, sticker or other evidence of authorization as a vendor in an area visible to participants.

DHS 149.08(3)(j) (j) Ensure that the current list of authorized foods is readily accessible to cashiers.

DHS 149.08(3)(k) (k) 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 149.08(3)(L) (L) Maintain inventory and accounting records as specified by the agreement for the period of time specified in the agreement.

DHS 149.08(3)(m) (m) Make available upon the request of representatives of the state WIC office, the USDA, or the comptroller general of the United States all WIC checks in the vendor’s possession and all required inventory and accounting records for inspection and audit.

DHS 149.08(4) (4) Use of vendor stamp.

DHS 149.08(4)(a) (a) Only the authorized vendor may use the vendor stamp to validate a WIC check.

DHS 149.08(4)(b) (b) The authorized vendor shall keep the vendor stamp in a safe place and shall report loss of the vendor stamp to the state WIC office within 2 days of the loss.