AUTHORITY: Implementing and authorized by the WIC Vendor Management Act [410 ILCS 255].

SOURCE: Adopted at 14 Ill. Reg. 19984, effective December 1, 1990; amended at 16 Ill. Reg. 17734, effective December 15, 1992; amended at 18 Ill. Reg. 2450, effective February 1, 1994; emergency amendment at 18 Ill. Reg. 13125, effective August 12, 1994, for a maximum of 150 days; amended at 19 Ill. Reg. 606, effective January 9, 1995; amended at 19 Ill. Reg. 16086, effective November 20, 1995; amended at 21 Ill. Reg. 3960, effective March 15, 1997; recodified from the Department of Public Health to the Department of Human Services at 21 Ill. Reg. 9323; emergency amendment at 22 Ill. Reg. 3127, effective January 22, 1998, for a maximum of 150 days; emergency expired on June 20, 1998; amended at 22 Ill. Reg. 18960, effective October 1, 1998; emergency amendment at 23 Ill. Reg. 4553, effective April 2, 1999, for a maximum of 150 days; amended at 23 Ill. Reg. 10843, effective August 23, 1999; amended at 24 Ill. Reg. 7509, effective May 1, 2000; amended at 26 Ill. Reg. 15001, effective October 1, 2002; peremptory amendment at 30 Ill. Reg. 14602, effective September 1, 2006; emergency amendment at 44 Ill. Reg. 11847, effective July 1, 2020, for a maximum of 150 days; amended at 44 Ill. Reg. 18331, effective October 29, 2020; amended at 46 Ill. Reg. 2073, effective January 21, 2022; amended at 48 Ill. Reg. 2491, effective January 30, 2024.

SUBPART A: GENERAL PROVISIONS

 

Section 672.100  Definitions

 

"Act" means the WIC Vendor Management Act [410 ILCS 255].

 

"Administrative Law Judge" means any person appointed by the Secretary to preside at an administrative hearing.

 

"Applicant" means the individual, partnership, limited partnership, unincorporated association, limited liability company, or corporation applying to be a WIC Retail Vendor.

 

"Application" means the application forms and other required materials submitted by a business entity to notify the Department that the business entity desires to become a WIC Retail Vendor.

 

"Approved Product List" or "APL" means a master UPC list that the WIC EBT card is programmed to follow.

 

"Approved Source" means a wholesaler, retailer or manufacturer of infant formula listed by the Department as an approved purchase point for infant formula and WIC eligible nutritionals.

 

"Authorization" means the approval of an applicant who has met the WIC Vendor criteria and possesses a properly executed, valid WIC Vendor Contract as a WIC Retail Vendor.

 

"Balance Inquiry" means a type of transaction that allows WIC Cardholders to identify the remaining benefits left on their card.

 

"Benefits" means the food, formula, and WIC eligible nutritional item quantities that are loaded onto WIC Participant EBT cards.

 

"Business Entity" means the retail business which an applicant or authorized WIC Vendor operates at a particular Vendor Site.

 

"Civil Money Penalty" or "CMP" means a monetary fine that is imposed upon non-compliant vendors in lieu of disqualification when the vendor is necessary for adequate client access.

 

"Corporate Officer" means the identity of the officer of a corporation as set forth in its Articles of Incorporation filed with the Secretary of State of the state in which that entity is incorporated.

 

"Commodity Supplemental Food Program" or "CSFP" means a federal food assistance program through which the Department or the Department's Representative provides U.S. Government commodities to eligible elderly.

 

"Department" means the Illinois Department of Human Services. (Section 3(a) of the Act)

 

"Department Estimated Cost" means estimated prices that are averaged and weighted by store type and region.  The estimated prices are based on indicators, including wholesale prices for WIC Foods and the self-reported Vendor prices on the Vendor Retail Price Survey.

 

"Department Representative" means an employee or authorized agent of the Department.

 

"Education Visit/Visit" means a survey of an applicant/Vendor Site where the monitor and the designated store representative review the criteria for authorization as a retail WIC Vendor.

 

"Electronic Benefit Transfer" or "EBT" means a method that permits electronic access to WIC Food Benefits using a card approved by the Secretary.

 

"Expired Food" means WIC approved infant formula available to WIC Participants on a store shelf that exceeds the stamped "use before" date printed on the food item.

 

"50% Vendor" means any Vendor that makes more than half of its SNAP eligible sales from the sale of food items from the transaction of WIC Food Benefits as defined in 7 CFR 246.2 (Above 50% Vendors).  It includes vendor applicants applying for an initial authorization who estimate that they will make more than half of their SNAP eligible sales from the sale of food items from the transaction of WIC Food Benefits.

 

"Fine" means an amount of money imposed as a penalty.

 

"Food Benefit" means a negotiable EBT card issued by a Local Agency that specifies the quantity, size and type of authorized foods available to a WIC Participant within a designated time period, which can subsequently be taken to a Vendor in exchange for the specified quantities of food.

 

"Illinois eWIC" means a card with a magnetic strip that contains WIC Food Benefits for a WIC household to purchase WIC-approved foods at authorized WIC Retail Vendors using EBT.

 

"Integrated System" means a network of cash registers in a store that is capable of processing WIC EBT transactions through a third-party processor (TPP).  Integrated cash registers must be able to provide a benefit balance prior to WIC purchase and a receipt including the remaining monthly benefit balance to WIC clients.

 

"Limited Liability Company" means a company organized and existing under the Limited Liability Company Act [805 ILCS 180].

 

"Local Agency" means a public or private, non-profit health or human services agency that provides health services, either directly or through contract, in accordance with the USDA WIC Regulations, the Act, or this Part.

 

"Minimum Supply of WIC Foods" means the Department published list of the minimum required quantities, sizes, and types of WIC Foods that must be maintained in stock at all times by a Vendor.

 

"Not-to-Exceed Price" or "NTE Price" means the maximum allowable price that is established by peer group for most supplemental foods sold by Vendors.

 

"Participant" means authorized pregnant women, breast feeding women, postpartum women, infants or children who are receiving supplemental foods or Food Benefits under the WIC Program.

 

"Participant Access" means the determination by the Department of the availability of authorized Vendors within a geographic area.

 

"Peer Group" means the classification of authorized Vendors into groups based on common characteristics or criteria that affect food prices, for the purpose of applying appropriate competitive price criteria to Vendors at authorization and limiting payments for food to competitive levels.

 

"Pharmacy" means any store, shop, department, or other place, at a fixed and permanent location, having the capability to dispense and sell or offer for sale at retail value by a licensed pharmacist drugs, medicines, poisons, and liquid foods, prescribed for an individual by dentists, veterinarians, and physicians licensed to practice medicine in all its branches.

 

"Pharmacy Vendor" means any free-standing pharmacy that has been authorized by the Department to accept Illinois eWIC as a WIC Retail Vendor and to provide only infant formula and medical food to WIC Participants, proxies of WIC Participants or Department representatives.

 

"Personal Identification Number" or "PIN" means the unique number selected by WIC clients to authorize transactions on their WIC EBT cards.

 

"Posted Shelf Price" means the displayed price of WIC Foods charged to the general public, identifying the price of the specific WIC Food item, including any sales price or discounts.

 

"Probation" means a period of time during which the Vendor will be under increased scrutiny by the Department.

 

"Retail Vendor Price Survey" means the current prices, reported to the Department, by a Vendor or a Department representative, as charges for WIC Foods.

 

"Rural-Urban Commuting Area Code" or "RUCA" means a code assigned by the USDA Economic Research Services (ERS) to determine the rural or urban status of a postal ZIP Code.

 

"Secretary" means the Secretary of the Illinois Department of Human Services or designee.

 

"SNAP Eligible Sales" means revenue from food that legally may be purchased with the SNAP EBT Card.

 

"Supplemental Nutrition Assistance Program" or "SNAP" means the program funded by the USDA Food and Nutrition Service (FNS) to provide nutrition assistance to low-income individuals and families.

 

"United States Department of Agriculture" or "USDA" means the federal agency that oversees the Women, Infants, and Children (WIC) Program, SNAP, and other food, nutrition, and agricultural programs that benefit residents of the United States.

 

"Universal Product Code" or "UPC" means a 12- or 13-digit code affixed, by barcode, to food, formula, and WIC eligible nutritional items.  The Illinois APL contains a comprehensive list of all WIC eligible UPCs and permits WIC EBT transactions.

 

"USDA WIC Regulations" means the Regulations of the United States Department of Agriculture, Food and Consumer Service, Special Supplemental Nutrition Program for Women, Infants, and Children (7 CFR 246 (1999)).

 

"Vendor" or "WIC Retail Vendor" means the individual, partnership, limited partnership, unincorporated association, limited liability company, or corporation authorized by the Department to accept Food Benefits and to provide supplemental food to WIC Cardholders.

 

"Vendor Site" means a fixed and permanent location, operating as a business entity, listed in the WIC Vendor application, that has been authorized by the Department for purposes of delivery of WIC Foods to WIC Cardholders.

 

"Violation" means an infringement of federal regulations as defined in 7 CFR 246.2, or State rules or statutes, or local laws.

 

"WIC Cardholder" means the person presenting a WIC EBT card at the time of purchase and who is able to enter a correct PIN to complete a WIC balance inquiry and/or sale.

 

"WIC Food Centers" are WIC food distribution sites through which the Department or its representative provide the direct distribution of WIC foods.

 

"WIC Food List" means the published list of the State of Illinois authorized WIC Foods.

 

"WIC Foods" means those competitively priced foods that have been placed on the WIC Food List and have been determined by the Department to be nutritionally qualified for the WIC Program in the State of Illinois.

 

"WIC Participant" means a person receiving WIC benefits, who may or may not also be a WIC Cardholder.

 

"WIC Retail Vendor Contract" means an agreement signed by the WIC Retail Vendor and the Department for the provision of WIC Foods to Participants, the Proxies of WIC Participants or Department Representatives.  A valid WIC Retail Vendor Contract is binding only between the Department and the officer, partner or sole proprietor who originally signed the Vendor Application.  It authorizes the contractor to operate as a WIC Vendor.

 

"Women, Infants and Children Nutrition Program" or "WIC" means the federal Special Supplemental Nutrition Program for Women, Infants and Children authorized by section 17 of the Child Nutrition Act of 1966, as amended (42 USC 1786).

 

(Source:  Amended at 48 Ill. Reg. 2491, effective January 30, 2024)

 

Section 672.105  Incorporated and Referenced Materials

 

a)         The following State rules and statutes are referenced in various Sections of this Part:

 

1)         The WIC Vendor Management Act [410 ILCS 255]

 

2)         The Illinois Procurement Code [30 ILCS 500]

 

3)         The Illinois Purchasing Act [30 ILCS 505] (Sections 672.210(a)(5) and (7) and 672.435)

 

4)         Sections 33E-3 and 33E-4 of the Criminal Code of 2012 [720 ILCS 5] (Section 672.210(a)(10))

 

5)         Section 2-102 of the Illinois Human Rights Act [755 ILCS 5] (Section 672.440)

 

6)         Administrative Hearings (89 Ill. Adm. Code 508).

 

b)         The following federal regulations are incorporated in various Sections of this Part:

 

1)         USDA WIC Regulations– Special Supplemental Food Program for Women, Infants and Children (7 CFR 246 and as published in 64 Fed. Reg. 13311);

 

2)         USDA Nondiscrimination Regulations – Nondiscrimination (7 CFR 15); Education Programs or Activities Receiving or Benefiting from Federal Financial Assistance (7 CFR 15a); and Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving Federal Financial Assistance (7 CFR 15b) (Section 672.440).

 

3)         USDA Operating Rules: Women, Infants, and Children (WIC) Electronic Benefits Transfer (EBT), publication date: September 2014.

 

4)         USDA Technical Implementation Guide (TIG) for eWIC, effective February 2018.

 

c)         All incorporations by reference refer to the materials on the date specified and do not include any additions or deletions subsequent to the date specified.

 

d)         All citations to federal regulations in this Part concern the specified regulation in the Code of Federal Regulations which was effective as of August 6, 2021.

 

e)         Copies of all incorporated materials are available for inspection and duplication (at a fee in accordance with Section 1176.410 of the Department's Freedom of Information Code (2 Ill. Adm. Code 1176)) by the public at the Department's Central Office, Office of Family Wellness, Bureau of Family Nutrition (823 E. Monroe St., Springfield, Illinois 62761).

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.110  Purpose

 

The purpose of this Part is to provide for the qualifications, approval process, education, and compliance review of Vendors who participate in the Illinois WIC Program.  This Part further provides for the sanction of Vendors who violate this Part and to enable the Department to carry out its responsibilities for fiscal management and accountability for the food delivery system under its jurisdiction (Section 2 of the Act).

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.115  Application of This Part

 

These procedures apply to all applicants for participation as Vendors in the WIC Program, and all Vendors contracting with the Department, and any individual, business entity or commercial enterprise that accepts or receives Food Benefits and/or credit/payment for Food Benefits.  Any authorization issued prior to the effective date of the Act or this Part, will remain valid and subject to the Act and this Part.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

SUBPART B: WIC VENDOR APPLICATION AND AUTHORIZATION PROCESS

 

Section 672.200  Geographic Distribution and Participant Access Criteria

 

a)         The Department will authorize an appropriate number and distribution of vendors to ensure adequate Participant access to supplemental foods consistent with 7 CFR 246.12(g)(1) and the approved State Plan.  Current SNAP disqualification/civil money penalty for hardship or business integrity, as well as all State agency-imposed criteria, may be waived to authorize Vendor applicants needed for Participant access.  

 

b)         Before disqualifying a Vendor for non-permanent disqualifications, the Department will determine if the disqualification would result in inadequate Participant access.  The Department will also make a Participant access determination before imposing permanent disqualification.  If a Participant access determination finds that the disqualification of a vendor would result in inadequate Participant access, the Department will impose a civil money penalty (CMP) instead of disqualification, consistent with Section 672.505(j).

 

c)         For WIC Vendor applicants deemed necessary for Participant access by the Department, costs of a stand-beside point of sale terminal may be covered by the Department, consistent with 7 CFR 246.12(z)(2)(iv).

 

d)         "Participant access" is defined as no other Vendors being available within 5 miles of a Vendor in an urban RUCA ZIP Code or within 20 miles of a Vendor in a rural RUCA ZIP Code. The Department will determine Participant access based on the following criteria:

 

1)         Location of the physical address of the vendor using current RUCA Codes.

 

2)         All other authorized vendors will be mapped and their distance from the vendor in question will be calculated.  Distance will be calculated based on distance in radial miles.

 

(Source:  Amended at 48 Ill. Reg. 2491, effective January 30, 2024)

 

Section 672.205  Application Procedures

 

The Department will provide an application for applying to become an authorized WIC Retail Vendor.  Submission of a completed application shall not constitute authorization for an applicant to accept or receive payment for Food Benefits.  Any application submitted improperly or incompletely will be rejected and applicants will need to request a new application if they wish to re-apply.  Applicants must complete each step in the authorization process as described in subsections (a) through (f) within 60 calendar days after the Department's notification of the requirement. If a vendor does not complete the steps successfully within this timeframe, the application will be rejected, and the vendor will be required to request a new application.  An applicant can apply for authorization to become a WIC Retail Vendor by completing, at minimum, the following steps:

 

a)         Submitting a complete application and all required documents that demonstrate that the applicant meets the federally mandated selection criteria specified in 7 CFR 246.12(g)(3) and (g)(4).  The application and all supporting documents shall be properly completed and verified by the Department.  No application will be deemed complete unless it includes all necessary supporting documents required by this Section.

 

1)         Each owner, partner, limited partner, or shareholder of 5% or more of any stock shall provide a statement concerning any conviction for a misdemeanor involving fraud, theft, or misuse of state or federal funds or for any felony.

 

2)         Each applicant or authorized representative shall attest to the accuracy of information provided in the application.

 

3)         Proof of FEIN shall include a copy of a notice of new employer identification number assigned or a copy of the Federal Tax Deposit Coupon.

 

4)         Proof of identity for each owner, partner, limited partner or shareholder of 5% or more of any stock shall include a copy of their driver's license or a government-issued identification card.

 

5)         If applicable, proof of USDA SNAP authorization shall include a copy of the federal SNAP authorization /Retailer Card.

 

6)         The applicant shall provide documents that verify the date of purchase or acquisition of the business entity for which the applicant is seeking WIC Vendor authorization.

 

7)         Any vendor application with a vendor type of Pharmacy or Grocery with Pharmacy shall provide proof of active licensure in good standing with the Illinois Department of Financial and Professional Regulation (IDFPR).

 

8)         Each applicant shall attest to compliance with necessary local, municipal, or village licensing requirements at the proposed Vendor Site and may be required to provide proof of licensing by the Department.

 

b)         A price survey of the applicant's WIC Foods specified in the minimum stock requirement shall be completed as part of the application process.  The cost of the WIC Foods will be compared to the Department's estimated cost.  If three or more WIC Foods prices exceed the Department's estimated cost or the Vendor peer group's assigned price, the application will be denied.

 

c)         Successful completion of the initial training seminar (see Section 672.305).

 

d)         Successful completion of an initial site visit.

 

1)         The Department shall conduct an education visit of the proposed Vendor Site after receipt of a completed application.  The visit will determine whether the applicant has the minimum quantities, sizes, and types of WIC Foods and will verify any business or financial information submitted by the applicant.  The Department will also review and document whether the infant formula maintained as inventory was purchased from an approved source.  Food products originating from WIC Food Centers or CSFP or "expired" infant formula will not count towards the minimum quantities, sizes, and types of WIC Foods.

 

2)         If the education visit by the Department discloses that the applicant's proposed Vendor Site does not have the minimum quantities, sizes, and types of WIC Foods necessary or that business or financial information supplied by the applicant is erroneous, inaccurate, or insufficient, a second visit shall be scheduled within 30 calendar days after the initial visit.  If the second visit does not meet the requirements as stated in this subsection (d), then the application shall be denied.

 

e)         Full certification and demonstration of readiness to process WIC EBT transactions with a WIC-enabled integrated cash register system, except where participant access criteria are met in Section 672.200(d).

 

1)         If the Illinois eWIC certification visit by the Department discloses that the applicant's Point of Sale System does not meet the minimum requirements to complete Illinois eWIC transactions, a second certification visit shall be scheduled within 30 calendar days after the initial visit.

 

2)         If the second visit does not meet the requirements as stated in this subsection (e), the application shall be denied.

 

f)         Fully executed and signed contract.

 

g)         The applicant shall have an obligation to notify the Department in writing of material changes in information contained on the application after authorization and during the term of the WIC Vendor authorization.

 

h)         The applicant shall be notified by the Department, within 30 calendar days, after each step in the application process has been successfully completed and upon eligibility for the next step in the application procedures.

 

(Source:  Amended at 48 Ill. Reg. 2491, effective January 30, 2024)

 

Section 672.210  Authorization Criteria

 

Only WIC Retail Vendors authorized by the Department shall be eligible to accept Food Benefits or otherwise provide supplemental foods to WIC Cardholders.  Any applicant seeking authorization to become a WIC Retail Vendor has an obligation to meet, at a minimum, the following criteria before authorization.  In addition, any authorized Vendor has a continuing obligation to meet all criteria specified in the WIC Vendor Contract and the criteria listed in this Section during the period of authorization:

 

a)         The Vendor shall have, at minimum, one location authorized as a WIC Vendor located within the boundary lines of Illinois.  Vendor locations outside of Illinois may only be authorized if participant access criteria in Section 672.200(d) are met, and the Vendor location is no more than 20 miles from the Illinois border.

 

b)         The Vendor Site shall have a fixed and permanent location.  This site shall be the address indicated on the WIC Vendor application and shall be the location where a WIC Cardholder selects WIC Foods during business hours.

 

1)         This site shall not be at an address or within any building where Food Benefits are distributed to WIC Participants.

 

2)         The price charged to the WIC Program for WIC Foods provided through Participant requested delivery shall not exceed those prices charged to cash paying customers nor the prices posted at the Vendor Site.  The Vendor shall not charge the WIC Program for delivery of WIC Foods.

 

c)         Each Vendor Site listed in the application shall have 70% or more gross receipts from the sale of non-alcoholic products and the percentage of sales revenue from food purchased with WIC Food Benefits shall not exceed 50% of total SNAP eligible food sales.

 

d)         Authorization to participate in USDA SNAP is not a prerequisite for Authorization as a WIC Retail Vendor.  If, however, an applicant or Vendor has been authorized to participate in USDA SNAP, the applicant or Vendor shall not have been denied, suspended, disqualified, terminated, or assessed a civil money penalty during the 2 years preceding application for authorization as a WIC Retail Vendor.

 

e)         Neither the applicant, Vendor, nor any officers or officials shall have been involved in bribery as prohibited under Section 50-5 of the Illinois Procurement Code.

 

f)         The applicant or approved Vendor shall be barred from receiving State contracts as a result of any default on any educational loans as that term is defined in the Educational Loan Default Act [5 ILCS 385].

 

g)         Neither the applicant, Vendor, nor the applicant or Vendor's spouse or minor children shall hold an elective office in the State of Illinois, a seat in the General Assembly, appointment or employment in any of the offices of State government during the period of any WIC Vendor authorization as prohibited under Section 50-13 of the Illinois Procurement Code.

 

h)         Neither the applicant, Vendor, its officers, directors, individual partners, nor their spouses or minor children who owns more than 7˝% ownership or beneficial interest in the business entity seeking authorization to participate in the WIC Program shall be employed by the WIC Program of a local agency.

 

i)          Neither the applicant, nor the Vendor shall have been convicted of a misdemeanor involving fraud, misuse or theft of State or federal funds or of any felony. 

 

j)          The applicant or Vendor shall be barred from bidding on or entering into a WIC Vendor Contract as a result of a violation of Sections 33E-3 or 33E-4 of the Criminal Code of 2012.

 

k)         Neither the applicant, Vendor, nor any owner of 30% or more ownership shall have been terminated from the WIC Program in the previous 3 years.

 

l)          The applicant or Vendor shall adhere to the provisions of the USDA WIC Regulations, the Act, this Part, and, once authorized, the WIC Vendor Contract.

 

m)        The vendor applicant's shelf prices may not exceed current Not-to-Exceed (NTE) prices based on peer group assignment in accordance with 7 CFR 246 12(g)(4).

 

n)         The Vendor shall maintain minimum quantities, sizes, and types of WIC Foods necessary at a Vendor Site as specified in the WIC Vendor Contract based on peer group assignment.  A copy of this list will be provided to each applicant and authorized Vendor.

 

(Source:  Amended at 48 Ill. Reg. 2491, effective January 30, 2024)

 

Section 672.215  WIC Food List and Quantities

 

a)         The Department will make available a list of authorized WIC foods that specifies the criteria by which foods will be eligible as WIC Food items.  This list will be updated at least annually and will be available to all Vendors and Participants.  

 

b)         The Department will maintain the full WIC Approved Products List (APL) that identifies the specific UPC, category, subcategory and description of all authorized WIC Foods.  Vendors shall download the APL to their POS at least daily to ensure accuracy.

 

c)         The Vendor is not allowed to offer a food item from the WIC Food List or APL if the current Food Benefit balance of the Cardholder would not accommodate that addition.

 

d)         Minimum required quantities, as specified in the WIC Vendor Contract, are determined based on the vendor type and location of the Vendor.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.220  Criteria for Denial of Authorization

 

A determination by the Secretary to deny authorization will be based upon a finding that one or more of the following criteria are met: 

 

a)         The applicant has not met the requirements of the USDA WIC Regulations, the Act, or this Part.

 

b)         The applicant has submitted false, erroneous, or inaccurate information on the application, or in the business or financial information provided to the Department or during the course of a visit of the proposed Vendor Site. (See Section 672.205.)

 

c)         The applicant has refused to allow the Department access to visit the proposed Vendor Site during the applicant's normal business hours.

 

d)         The applicant has submitted a FEIN or Social Security number for the business entity to be operated at the proposed Vendor Site that is not the same FEIN or Social Security number filed for the same business entity with SNAP and/or with the Illinois Department of Revenue.

 

e)         The applicant does not have the necessary local, municipal, or village license to operate as a business entity at the proposed Vendor Site.

 

f)         USDA SNAP has imposed against the applicant any of the following sanctions:

 

1)         civil money penalty;

 

2)         suspension;

 

3)         disqualification;

 

4)         permanent disqualification.

 

g)         The applicant failed to pay any fine or reimbursement within the time specified by the Department.

 

h)         The applicant qualifies as a "50% Vendor".

 

i)          The applicant has a disqualification, suspension or repudiation currently in effect pursuant to Section 672.505, 672.510 or 672.520 or has a pending hearing for one of these actions, pursuant to Section 672.600.

 

(Source:  Amended at 48 Ill. Reg. 2491, effective January 30, 2024)

 

Section 672.225  Denial of Authorization

 

a)         Application for Authorization as a WIC Retail Vendor shall be denied when the Secretary finds that an Applicant meets any of the criteria set forth in Section 672.220.

 

b)         When the Secretary determines that the Application for Authorization as a WIC Retail Vendor is to be denied, the Department shall notify the Applicant.  The notice to the Applicant shall be in writing and shall include:  

 

1)         A clear and concise statement of the basis for denial.  The statement shall include a citation to the USDA WIC Regulations, the Act, or the provisions of this Part for which the Application is being denied.

 

2)         A description of the right of the Applicant to appeal the denial of the Application within 15 calendar days after receipt of the letter and the right to a hearing pursuant to Section 672.600.

 

3)         A statement that the Applicant may not reapply again for a minimum 180 calendar days from the date of the notice.

 

(Source:  Amended at 24 Ill. Reg. 7509, effective May 1, 2000)

SUBPART C: WIC VENDOR EDUCATION

 

Section 672.300  Initial WIC Retail Training by the Department

 

a)         Upon official written notification by the Department, an initial WIC retail training course shall be provided to applicants who have met the criteria in Subpart B.  All applicant sites shall send, at minimum, one representative to the training course except as provided for in subsection (f) or in Section 672.305.

 

b)         The initial WIC retail training course shall be presented in an interactive format.  The purpose of the Vendor training is to improve Vendors' understanding of WIC Program rules and requirements to enhance compliance and prevent errors.  At a minimum, initial training shall include, but is not limited to the following: 

 

1)         the purpose of the WIC Program;

 

2)         approved supplemental foods;

 

3)         minimum stocking requirements;

 

4)         the requirements to obtain infant formula only from sources included on the Department's list of infant formula providers;

 

5)         procedures for transacting and redeeming WIC Food Benefits;

 

6)         the Vendor sanction system;

 

7)         the Vendor complaint process;

 

8)         claims procedures;

 

9)         incentive item policies; and

 

10)        changes to program requirements within the past year, including but not limited to changes to federal and State statutes, regulations, policies, or procedures affecting the program.

 

c)         All applicants or their representatives at the initial retail training course shall provide their full names and store names to document and record their attendance.

 

d)         At the end of the initial retail training course, each attendee shall complete and return a certification of understanding of the WIC Program to the Department. The certification will be maintained in the Vendor file.

 

e)         The Vendor shall inform and train cashiers and all other store employees who may be involved in the WIC redemption process on program requirements and transaction processes.

 

f)         In order for attendance of the initial retail training course to be waived, the applicant shall request, in writing, a waiver from the Department. This request shall contain the name and position of the store representative who attended an annual or initial training course within the 12 months prior to the date of application and the date of attendance at that training.  The applicant shall affirm that the store representative named in the waiver request is employed by the applicant.  The store representative shall complete and return to the Department a certification of understanding of the WIC Program for the applicant.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.305  Initial WIC Retail Training by a Vendor

 

a)         A Vendor who meets the following criteria will have the option of providing the initial WIC retail training to each Vendor Site only with written prior approval of the Department.  The Vendor shall meet the following criteria:  

 

1)         the Vendor shall submit a written request to provide the training course and all materials that will be used in the course, which shall include the subjects specified in Section 673.300(b);  

 

2)         all WIC Retail Vendor outlets shall operate under one FEIN;

 

3)         the Vendor shall have a minimum of 20 Illinois WIC Retail Vendor Sites;

 

4)         the Vendor shall allow the Department to observe the training; and

 

5)         the Vendor of the Vendor's representative shall complete and sign certification of understanding of the WIC Program.

 

b)         If the criteria in subsection (a) are met, the Department will send a written notification permitting the Vendor to provide the initial WIC Retail Vendor training.  This permission will be valid for the period covered by the WIC Vendor authorization.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.310  Annual WIC Retail Training Program

 

a)         Unless a Vendor has attended an initial WIC Retail Vendor training course during the current contract period, a representative from each Vendor Site shall be notified and shall participate in an annual Department sponsored training program. This person shall not represent more than one WIC Retail Vendor Site at any annual training course.  Annual training may be presented by the Department in a variety of formats; however, at least every 3 years, annual training must be completed in an interactive format.

 

b)         Each training program shall include, at a minimum, the following topics: 

 

1)         the purpose of the WIC Program;

 

2)         approved supplemental foods;

 

3)         minimum stocking requirements;

 

4)         the requirement to obtain infant formula only from sources included on the Department's list of infant formula providers;

 

5)         procedures for transacting and redeeming WIC benefits;

 

6)         the Vendor sanction system;

 

7)         the Vendor complaint process;

 

8)         claims procedures;

 

9)         incentive item policies; and

 

10)        changes to program requirements since the last training, including changes to federal and State statutes, regulations, policies, or procedures affecting the program.

 

c)         A representative from each Vendor Site shall complete and return to the Department a certificate of participation in the training program.

 

d)         A Vendor who meets the following criteria shall have the option of providing the annual WIC retail training to each Vendor Site only with written prior approval of the Department.  The Vendor shall meet the following criteria:

 

1)         the Vendor shall submit a written request to provide the training course and all materials that will be used in the course, which shall include the subjects specified in Section 672.310(b);

 

2)         all WIC Retail Vendor outlets shall operate under one FEIN;

 

3)         the Vendor shall have a minimum of 20 Illinois WIC Retail Vendor Sites;

 

4)         the Vendor shall allow the Department to observe the training; and

 

5)         the Vendor or the Vendor's representative shall complete and sign certification of understanding of the WIC Program.

 

e)         If the criteria in subsection (d) are met, the Department shall send a written notification permitting the Vendor to provide the annual WIC Retail Vendor training.  This permission will be valid for the period covered by the WIC Vendor authorization.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.315  Compliance Training Workshop (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

SUBPART D: WIC VENDOR AUTHORIZATION AND RESPONSIBILITIES

 

Section 672.400  Authorization

 

a)         Authorization.  Upon successful completion of the process for application as per Section 672.205(a) through (e), each applicant or WIC Vendor who meets the criteria set forth in this Part will be notified that the applicant/Vendor is issued probationary authorization for 60 calendar days pending completion of a WIC Vendor Contract and eWIC Certification.

 

b)         Probationary Authorization

 

1)         The Department shall issue probationary WIC authorization to a Vendor for a period of time not longer than 60 calendar days from the date the probationary authorization is approved. 

 

2)         The notice of a 60 calendar day probationary authorization will state the requirements to complete eWIC certification that must be completed during this probationary period.  All Sections of the WIC Vendor Management Act and this Part will be in force during this probationary authorization period.

 

(Source:  Amended at 48 Ill. Reg. 2491, effective January 30, 2024)

 

Section 672.405  WIC Vendor Contract Requirement

 

All authorizations to act as WIC Retail Vendors require a properly executed, valid written WIC Vendor Contract between the Department and the Vendor.  In the retail purchase system, a standard WIC Vendor Contract will be used statewide and will expire annually.  Exceptions to this requirement will be made with the approval of the Secretary of the Department, consistent with USDA WIC Regulations (7 CFR 246.12(f)(1)).  Food Benefits accepted after the term of the contract expires will not be reimbursed by the Department's contract bank.

 

a)         A failure by a Vendor to provide any information required by this Part will, as specified in the Vendor Contract be deemed to constitute a material breach of contract.

 

b)         Currently authorized WIC Retail Vendors shall be required to submit completed applications at least once every 3 years.

 

c)         WIC Vendors appealing an order to disqualify and/or to repudiate the contract at the time of annual expiration of the WIC Vendor Contract will not be reauthorized.  If the appeal is resolved in the Vendor's favor, the Vendor may reapply for authorization at that time, and may not be denied based on the prior disqualification, but only based on other reasons set forth in this Part.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.410  Expiration of WIC Vendor Authorization and Contract

 

The Department is under no obligation to re-authorize a WIC Vendor at the time of expiration of the WIC Vendor Contract.

 

Section 672.415  Food Benefit Processing

 

The Vendor shall submit Food Benefits for payment for the provision of WIC supplemental foods in the process determined by the software developer and maker of the point of sale register system or device in accordance with the USDA Operating Rules for WIC EBT and the USDA Technical Implementation Guide (TIG) for eWIC (see Section 672.105(b)). The following minimum standards shall be met:  

 

a)         Vendors shall accept eWIC payment from any person presenting an eWIC card and upon entering a valid PIN.

 

b)         WIC Cardholders may redeem Food Benefits over as many, or as few, transactions as desired until the benefit expiration date. Cardholders are not required to use all or most of their benefits at once.

 

c)         Vendors shall provide WIC Cardholders with a receipt for foods purchased with eWIC benefits.  The receipt shall include the remaining benefit balance.

 

d)         Vendors shall process a balance inquiry when requested by a WIC Cardholder. Vendors shall not require a minimum purchase in order to process a balance inquiry.

 

e)         Vendors using an integrated system shall allow WIC Cardholders to purchase both WIC and non-WIC Foods in a single transaction. Vendors must allow WIC customers to use another form of payment (SNAP, cash, or debit/credit card) to pay for anything not covered by WIC.

 

f)         Vendors shall not provide incentive items dependent upon WIC Cardholders redeeming some or all of their benefits at one time.

 

g)         EBT Minimum Lane Coverage.  Point of sale (POS) terminals used to support the WIC program shall be deployed in accordance with the minimum lane coverage provisions of 7 CFR 246.12(z)(2).  The Department may remove excess terminals if actual redemption activity warrants a reduction consistent with the redemption levels outlined in 7 CFR 246.12(z)(2)(i) and (ii).

 

h)         EBT Third-Party Processing Costs and Fees.  The Vendor shall not charge to the Department any third-party commercial processing costs and fees incurred by the Vendor from EBT multi-function equipment. Commercial transaction processing costs and fees imposed by a third-party processor that the Vendor elects to use to connect to the EBT system of the State shall be borne by the Vendor.

 

i)          EBT Interchange Fees.  The Department will not pay or reimburse the Vendor for interchange fees related to WIC EBT transactions.

 

j)          EBT Ongoing Maintenance and Operational Costs.  The Department will not pay for ongoing maintenance, processing fees, or operational costs for vendor systems and equipment used to support WIC EBT after the Department has implemented WIC EBT statewide, unless the equipment was provided to the Vendor during the implementation of the WIC EBT system, is used solely for the WIC Program and the Department determines the Vendor using multi-function equipment is necessary for Participant access.  This provision also applies to authorized farmers and farmers' markets. Costs shared by the Department will be proportional to the usage for the WIC Program.

 

k)         Compliance with EBT Operating Rules, Standards and Technical Requirements.  The Vendor shall comply with the operating rules, standards and technical requirements incorporated by the Department (see Section 672.105).

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.420  Specifications for Rejection of Food Benefits

 

Vendors will be notified at the time of the transaction if a payment will not be processed on a transaction. Reasons for denial of a transaction may be due to, but not limited to, the following reasons:

 

a)         Processing a Food Benefit before or after the benefit eligibility period.

 

b)         Processing of a Food Benefit by a Vendor who is not currently authorized as a WIC Vendor.

 

c)         Processing of a Food Benefit with a POS system that has not been certified by the State of Illinois.

 

d)         Processing of a Food Benefit after the Vendor contract has been repudiated or the Vendor disqualified.

 

e)         Processing of a Food Benefit after the term of the contract expires.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.425  WIC Retail Vendor Responsibilities

 

a)         The Vendor shall comply with all WIC Program requirements specified in this Part, 7 CFR 246, Operating Rules: Women, Infants, and Children (WIC) Electronic Benefits Transfer (EBT), applicable federal, State and local health protection laws or ordinances, and the current WIC Vendor Agreement.

 

b)         Vendors with a grocery or grocery/pharmacy Vendor contract shall maintain minimum required quantities of foods and infant formulas at all times (see Section 672.215(d)). Vendors with pharmacy Vendor contracts shall be exempt from the minimum required quantities of all food items, except for the infant formula requirement. Grocery/pharmacy and pharmacy Contract Vendors must have the ability to supply and process sales of all specialty formula in the quantity available based on the current Participant's Food Benefits balance, upon request, within 2 business days.   

 

c)         The Vendor shall display the price of WIC Foods, charged to the general public, in clear view of customers, identifying the price of the specific WIC Food item.

 

d)         The Vendor shall provide WIC Foods to WIC Cardholders at the same price or less than the price charged to non-WIC customers.

 

e)         The Vendor shall accept Food Benefits only from WIC Cardholders who are able to provide a valid PIN.

 

f)         The Vendor shall not issue a WIC Cardholder any document (e.g., rain check) purporting to give the WIC Cardholder the right to buy a WIC Food item or non-WIC Food item after the Food Benefit is processed.

 

g)         The Vendor may not provide refunds or permit exchanges for authorized supplemental foods obtained with food instruments or cash-value vouchers, except for exchanges of an identical authorized supplemental food item when the original authorized supplemental food item is defective, spoiled, or has exceeded its "sell by", "best if used by", or other date limiting the sale or use of the food item.

 

h)         The Vendor shall charge the Department sale prices. The value of coupons and discounts shall be deducted from the price charged to the Department. The WIC Cardholder shall not be given cash for the difference.

 

i)          The Vendor shall participate in an annual WIC training program (see Section 672.310).

 

j)          The Vendor and the Vendor's business entity shall be subject to review by the Department or USDA for the time period covering any present or previous authorization.  Documents to be maintained by the Vendor shall include but not be limited to:

 

1)         Original purchase order, including purchase order date; and

 

2)         Original vendor invoices, showing date, showing date received, revealing description of items  received, showing vendor model or item number, listing stock keeping unit identification number of item received (if different than the vendor unit ID number), listing quantity received by item, identifying item unit costs, furnishing item cost extension (item cost multiplied by item quantity received), and showing initials of employee receiving and counting inventory on behalf of store. The Vendor shall maintain all records of purchases, gross sales receipts, and invoices of all WIC and non-WIC Foods for a period not less than 3 years.  The original of those records shall be made available to the Department or USDA upon reasonable request.  The Vendor shall also provide the Department and USDA the opportunity to inspect all Food Benefits located at the Vendor Site or under the control of the Vendor.

 

k)         The Vendor shall respond truthfully and accurately to Department initiated requests for Retail Vendor price surveys, verification of ownership of the business entity or Vendor Site, proof of WIC and non-WIC purchases and sales, and proof of the volume of alcoholic beverage sales. The responses shall be in writing and be provided within 15 calendar days after receipt of the Department's request.  Failure to submit requested information may result in the suspension of WIC Vendor authorization.

 

l)          The Vendor shall maintain all refrigerated areas at temperature of 40 degrees Fahrenheit or below.

 

m)        The Vendor shall not exchange Food Benefits for any form of currency, or other items of value, nor provide the WIC Cardholder with any amount of currency or coin as change from a partial WIC Food transaction.

 

n)         The Vendor shall not seek restitution from WIC Cardholders for Food Benefits not paid by the Department or fines levied by the Department, a financial institution or the Department's contract bank. The Vendor shall not seek or receive restitution from the Department for monetary penalties for rejected Food Benefits.

 

o)         The Vendor shall not charge sales taxes for WIC Foods, as the Department is exempt from those taxes under tax number E9984-0987-03.

 

p)         The Vendor shall reimburse the Department for any Food Benefits redeemed in violation of the USDA WIC Regulations, Operating Rules: Women, Infants, and Children (WIC) Electronic Benefits Transfer (EBT), the Act, this Part or the WIC Vendor Contract.

 

q)         Neither authorization as a WIC Vendor nor the WIC Vendor Contract constitutes employment between the Vendor and the Department as a State employee or provides eligibility for any employee benefits provided by the State of Illinois.

 

r)          The Vendor shall offer the same courtesies to WIC Cardholders as offered to other customers.

 

s)         At least 15 calendar days before a change of location, name, address, management, corporate officers, or majority stockholders, the vendor shall report the change in writing to the Department or its designee.  A new location within a 2-mile radius of the Vendor's previous authorized location, with the previous location being closed, will not require a new application for authorization.  If a Vendor begins to operate in a new location and the previous location is not closed, a new application for authorization will be required.

 

t)          The grocery Vendor or grocery/pharmacy Vendor shall not deny a WIC Cardholder any WIC Foods indicated on the Food Benefit that the Vendor has in stock. When the WIC Cardholder presents an Illinois eWIC card for WIC benefits, a pharmacy or drug store designated as a Pharmacy Vendor shall be exempt from providing foods that are not infant formula or medical food.

 

u)         Neither the Vendor, nor the Vendor's employee, shall require that a WIC Cardholder exchange the WIC cardholder's selection of WIC Foods because the WIC Foods selected exceed the Not-to-Exceed (NTE) price of the Food Benefit.  Nor shall the Vendor request or accept any remuneration for the difference between the WIC Cardholder selected WIC Foods and the NTE price of the Food Benefit.

 

v)         The Vendor shall allow WIC Cardholders freedom to select any WIC Foods in stock at the Vendor Site, except that, if the WIC Cardholder presents an Illinois eWIC card for WIC benefits at a pharmacy or drug store designated as a Pharmacy Vendor, then that pharmacy or drug store shall be exempt from providing foods that are not infant formula or medical food.

 

w)        The Vendor shall not maintain in shelf stock any WIC Foods that meet the definition of "Expired Food".  (See Section 672.100.)

 

x)         The Vendor shall not accept for payment or credit any Food Benefit without a valid PIN.

 

y)         A Vendor may not provide, in exchange for WIC Food Benefits to a WIC Cardholder, alcohol, an alcoholic beverage, a tobacco product or any other food other than the authorized food specified on the Food Benefit or provide any coupon or certificate for these items contingent upon spending the WIC Food Benefit or provided to a WIC Cardholder for a purchase made with WIC Benefits.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.430  Payment Obligation

 

Obligations of the Department shall cease immediately without penalty of further payment if the Illinois General Assembly or any federal funding source fails to appropriate or otherwise make available sufficient funds for this process.

 

Section 672.435  Conflict of Interest

 

The Vendor shall comply with the conflict of interest provisions of the Illinois Procurement Code.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.440  Unlawful Discrimination

 

The Vendor shall not engage in unlawful employment discrimination barred by Section 2-102 of the Illinois Human Rights Act  [775 ILCS 5/2-102] nor engage in discrimination practices barred by USDA (see 7 CFR 15, 15a, 15b and 15c).

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.445  Amendments Resulting From a Change in Statute or Regulation (Repealed)

 

(Source:  Repealed at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.450  Assignment or Transfer (Repealed)

 

(Source:  Repealed at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.455  Civil Law Suits (Repealed)

 

(Source:  Repealed at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.460  Voluntary Withdrawal from the WIC Vendor Contract (Repealed)

 

(Source:  Repealed at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.465  Notices (Repealed)

 

(Source:  Repealed at 46 Ill. Reg. 2073, effective January 21, 2022)

SUBPART E: WIC VENDOR COMPLIANCE AND SANCTIONS

 

Section 672.500  Compliance Monitoring Inspections

 

The Department shall develop a system for monitoring the operations of all WIC retail food vendors to ensure compliance with federal and State laws and rules governing the WIC program.  The Department shall review the alleged violations of the federal and State laws and rules promulgated thereunder. (Section 6(a) and (b) of the Act)

 

(Source:  Amended at 19 Ill. Reg. 16086, effective November 20, 1995)

 

Section 672.505  Federally Mandated Vendor Sanctions

 

Vendors shall receive the following sanctions for the following violations as mandated by 7 CFR 246.12:

 

a)         Permanent Disqualification

 

1)         The Department will permanently disqualify a Vendor convicted of:

 

A)        trafficking in Food Benefits; or

 

B)        selling firearms, ammunition, explosives, or controlled substances (as defined in section 802 of the Controlled Substances Act (21 USC 802), in exchange for Food Benefits.

 

2)         A Vendor shall not be entitled to receive any compensation for revenues lost as a result of a violation.

 

3)         The Department will impose a civil money penalty in lieu of a disqualification for a violation when it determines, in its sole discretion, and documents that:

 

A)        Disqualification of the Vendor would result in inadequate Participant access; or

 

B)        The Vendor had, at the time of the violation, a policy and program in effect to prevent trafficking, and the ownership of the Vendor was not aware of, did not approve of, and was not involved in the conduct of the violation.

 

b)         Six-Year Disqualification

The Department will disqualify a Vendor for 6 years for:

 

1)         one incident of buying or selling Food Benefits for cash (trafficking); or

 

2)         one incident of selling firearms, ammunition, explosives or controlled substances as defined in 21 U.S.C. 802, in exchange for Food Benefits.

 

c)         Three-Year Disqualification

 

1)         The Department shall disqualify a Vendor for 3 years for:

 

A)        One incident of the sale of alcohol or alcoholic beverages or tobacco products in exchange for Food Benefits;

 

B)        A pattern of claiming reimbursement for the sale of an amount of specific supplemental food item that exceeds the store's documented inventory of that supplemental food item for a specified period of time;

 

C)        A pattern of charging WIC Cardholders more for supplemental food than non-WIC customers and/or charging Participants more than the current shelf price, including any posted sale price or discount, and/or charging Participants more than what is permitted under the WIC Vendor Contract;

 

D)        A pattern of receiving, transacting and/or redeeming Food Benefits outside of authorized channels, including the use of an unauthorized Vendor and/or unauthorized person;

 

E)        A pattern of charging for supplemental food not received by the Participant; or

 

F)         A pattern of providing credit or non-food items, other than alcohol, alcoholic beverages, tobacco products, cash, firearms, ammunition, explosives, or controlled substances as defined in 21 USC 802, in exchange for Food Benefits.

 

2)         For the purpose of this Section, a "pattern" will be activity that is repeated a significant number of times.

 

3)         For the purpose of determining a "pattern" of overcharging violations as set forth in subsections (c)(1)(C) and (c)(1)(E), three or more instances of the activity described in those subsections alone, but not in combination with each other within a period of 18 months, shall be significant and constitute a pattern.

 

4)         With regard to subsection (c)(1)(C), overcharges of 40 cents or more, or overcharges which constitute 7% or more of the total amount of sale of WIC Foods to the overcharged Participant on that date, will be considered significant for the purpose of determining a pattern.  Charging for items not received, as set forth in subsection (c)(1)(E), will be significant for the purpose of determining a pattern, regardless what amount is charged for the food items not received.

 

d)         One-Year Disqualification

The Department will disqualify a Vendor for one year for a pattern of providing unauthorized food items in exchange for Food Benefits, including charging for supplemental food provided in excess of those listed on the Food Benefit.

 

e)         Second Sanction

When a Vendor who previously has been assessed a sanction for any of the violations in subsections (b) through (d) receives another sanction for any of these violations, the Department will double the second sanction.

 

f)         Third or Subsequent Sanction

When a Vendor who previously has been assessed two or more sanctions for violations in subsections (b) through (d) receives another sanction for any of these violations, the Department will double the third sanction and all subsequent sanctions for those violations.

 

g)         Disqualification Based on a SNAP Disqualification

The Department will disqualify a Vendor who has been disqualified from SNAP.  The disqualification will be for the same length of time as the SNAP disqualification, may begin at a later date than the SNAP disqualification, and will not be subject to administrative or judicial review under the WIC program.

 

h)         Voluntary Withdrawal or Non-Renewal of Agreement

The Department will not accept voluntary withdrawal of the Vendor from the program as an alternative to disqualification for violations listed in this Section, but will enter the disqualification on the record. In addition, the Department will not use non-renewal of the Vendor Agreement as an alternative to disqualification.

 

i)          Participant Access Determinations

 

1)         Prior to disqualifying a Vendor for a violation of subsections (b) through (d) or (g), the Department will determine if disqualification of the Vendor would result in inadequate Participant access as defined in Section 672.200(b).

 

2)         When making Participant access determinations, the Department will consider, at a minimum, the availability of other authorized Vendors within the same area as the violating Vendor and any geographical barriers to using those Vendors.

 

j)          Civil Money Penalty (CMP)

 

1)         The Department may impose a CMP in lieu of disqualification for violations in subsections (b) through (d) or (g) if the Department, in its sole discretion and based on documentation, determines that disqualification of the Vendor would result in inadequate Participant access as defined in Section 672.200(b).

 

2)         If a CMP is imposed in lieu of disqualification, it will be calculated for each violation subject to sanction under this Section, using the formula set forth in 7 CFR 246.12(l)(l)(x).

 

3)         If a Vendor does not pay, or only partially pays, the CMP, the Department will disqualify the Vendor for the length of the disqualification corresponding to the violation for which the CMP was assessed (for a period corresponding to the most serious violation in cases in which the federally mandated sanction includes the imposition of multiple CMPs as a result of a single investigation).

 

4)         CMPs may be doubled for second sanctions under this Section up to the limits set forth in 7 CFR 246.12(l)(l)(x).  CMPs will not be imposed in lieu of disqualification for third or subsequent violations under this Section.

 

k)         Notification to Federal Food and Nutrition Service

The Department will provide the appropriate FNS office with a copy of the notice of administrative action, and information on Vendors it has disqualified or on whom it has imposed a CMP in lieu of disqualification for any of the violations of this Section.  The notice will be provided within 15 days after the Vendor's opportunity to file for a WIC administrative review has expired or all the Vendor's WIC administrative reviews have been completed in accordance with Sections 672.515 and 672.600.

 

l)          Multiple Violations During a Single Investigation

 

1)         When, during the course of a single investigation, the Department determines a Vendor has committed multiple violations (which may include violations subject to State agency sanctions), the Department will disqualify the Vendor for the period corresponding to the most serious federally mandated violation.  However, the Department will include all violations in the notice of administrative action as outlined in Section 672.510. 

 

2)         An investigation will be considered complete when, in the judgement of the Department, sufficient evidence exists to determine whether the Vendor is complying with program requirements.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.510  State Agency Vendor Sanctions

 

a)         State Major Violations

State major violations are violations that, in the determination of the Department, could result in harm to WIC Participants or the WIC Program.  The following will be considered major violations:

 

1)         Failure to maintain the minimum required quantity, size and type of foods of at least three WIC Foods identified in the minimum supply of WIC Foods and specified in the WIC Vendor Contract.  (See definition of "Minimum Supply of WIC Foods" in Section 672.100.)

 

2)         Accepting any remuneration for the difference between the Not-to-Exceed price of the Food Benefit and the shelf price of the WIC Foods.

 

3)         Having expired WIC Foods on the shelf.  (See Section 672.100, "Expired Food".)

 

4)         Submission of a Federal Employers Identification Number (FEIN) for the business entity operating as a Vendor that differs from the FEIN filed for the same business entity with SNAP or with the Illinois Department of Revenue.

 

5)         Submission of false, erroneous or inaccurate information in the business or financial information provided to the Department, on the Retail Vendor price survey, or during the course of inspections of the Vendor Site.

 

6)         Refusing to allow the Department access to investigate the Vendor Site during normal business hours.

 

7)         Violation of a term of the WIC Vendor Contract.

 

8)         Use of WIC authorization by an unauthorized individual, corporation, partnership, limited partnership, unincorporated association, limited liability company or former Vendor (if an individual), or the voluntary or involuntary dissolution of a Vendor corporation, partnership, limited partnership, limited liability company or unincorporated association.

 

9)         Failure to pay the Department the amount of any reimbursement or fine due.

 

10)         Submitting false, erroneous, or inaccurate information on the application for a WIC Retail Vendor Contract.

 

11)         Violation of the WIC Vendor Management Act or this Part, or of the federal statutes and regulations governing the WIC Vendor program.

 

12)         Purchasing infant formula from a source that is not an approved source under this Part.

 

13)         Failure to maintain prices for WIC Participants at levels competitive to prices for non-WIC Participants.

 

14)         Charging for supplemental food not received by the Participant.

 

15)         Altering or submitting for payment altered Food Benefits.

 

16)         The possession, the display on the shelf in the Vendor Site, or the attempted sale or actual sale of food products that originated from WIC Food Centers or the Commodity Supplemental Food Program.

 

b)         State Minor Violations

State minor violations are violations that are administrative in nature and may impose less harm to Participants or the program.  The following will be considered minor violations:

 

1)         Failure to maintain the minimum required quantity, size and type of WIC infant formula, as identified in the minimum supply of WIC Foods and specified in the WIC Vendor Contract. (See definition of "Minimum Supply of WIC Foods" in Section 672.100.)

 

2)         Requiring a Participant to select a different type or brand of WIC Foods when not specified on the Food Benefits.

 

3)         Failure to complete a WIC EBT sale according to specified requirements of the current WIC Vendor Contract.

 

4)         Not posting the shelf price for WIC Foods.

 

c)         Sanctions/Administrative Warnings

 

1)         For each major violation, except those set forth in subsection (c)(2), a Vendor will receive:

 

A)        A fine assessment of $1000 or 10% of the Vendor's monthly average redemptions for the 12 months preceding the advance notification regarding the sanction, whichever is more; and

 

B)        Either:

 

i)          Disqualification from the WIC Program for up to 1 year; or

 

ii)         Probationary status within the WIC Program.

 

2)         For each minor violation a Vendor will receive:

 

A)        A fine assessment of $500 or 5% of the Vendor's monthly average redemptions for the 12 months preceding the advance notification regarding the sanction, whichever is more; and

 

B)        Probationary status within the WIC Program.

 

3)         For all violations, the Department will give the Vendor a written administrative warning. Once a pattern of these violations is established, a sanction will be imposed pursuant to Section 672.505.

 

4)         Multiple violations in a single investigation will result in a cumulative fine assessment.

 

A)        The cumulative sanction imposed will be determined based on the nature and seriousness of the combined violations, the extent of potential harm to WIC clients and the program, and the deterrent effect for the Vendor and other Vendors.

 

B)        An investigation will be considered complete when, in the judgement of the Department, sufficient evidence exists to determine whether the Vendor is complying with program requirements.  

 

C)        The maximum fine and maximum disqualification term will be no more than the limits set forth in 7 CFR 246.12(l)(2)(i).

 

5)         All fine assessments shall be paid within 30 calendar days from the date of the Secretary's advance notification of administrative action or order, by cashier's check or certified money order in United States currency.  If the Vendor fails to pay any fine assessed within 30 calendar days after the date of the Secretary's advance notification or order, the Department will disqualify the Vendor from participation in the WIC Program until the fine is paid, and an additional fee of $1500 will be required to reinstate Vendor authorization.

 

d)         A Vendor remaining in the program after a finding of violations shall provide certification that the situation giving rise to the violations has been corrected, with documentation regarding the correction as requested by the Department.

 

e)         If the Department has reasonable grounds for believing that a participating Vendor has committed an abuse or violation of the WIC Program, the Department may send written notice to the Vendor citing the specific grounds and warning the Vendor that abuse or violations should not continue or recur. The Department, however, is not required to provide a vendor with administrative warning prior to imposing sanctions or repudiating a Vendor Contract.

 

(Source:  Amended at 48 Ill. Reg. 2491, effective January 30, 2024)

 

Section 672.515  Vendor Rights Regarding Notice and Appeal

 

a)         Prior Warning

The Department is not required to provide the Vendor with prior warning that violations were occurring before initiating the process of repudiating the Vendor Contract pursuant to Section 672.520.

 

b)         Advance Notification

 

1)         The Department may take adverse action against a Vendor after providing 15-day advance notification, except that permanent disqualifications under Section 672.505(a) will be effective on the date of receipt of notice of the administrative action.

 

2)         The written notification shall state the cause for the administrative action, its effective date, and the procedures to file for an appeal of the action.

 

3)         The written notification will be signed by the Secretary of the Department or designee. The Secretary's decision stated in the written notification may only be reversed by a subsequent decision or order by the Secretary or designee pursuant to a hearing or settlement agreement.

 

4)         The appeal of an appealable action as set forth in subsection (c) does not delay the sanction, the date of disqualification or date of termination of the Vendor Contract except that, upon showing of good cause, the Vendor may be allowed to continue operating during the pending appeal for no more than 90 days from the date of request of an appeal, or until the expiration of the WIC Vendor Contract, whichever comes first.  Good cause may be established by presenting compelling evidence that irreparable harm to the vendor would outweigh the potential harm to the public and that violations of this Part would not occur during continued operation.

 

c)         Appealable Actions

The Vendor may appeal the Department decision to disqualify or otherwise sanction a Vendor during the course of its Vendor Contract with the Department, or to deny a Vendor's application.  The following are not appealable by way of the administrative hearing procedures set forth in Section 672.600 and the Vendor has no right to a hearing regarding:

 

1)         expiration of a Vendor Contract;

 

2)         the Department's determinations regarding Participant access;

 

3)         disqualification of a Vendor as a result of disqualification from SNAP ; or

 

4)         receipt of an administrative warning.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.520   Breach of Contract

 

a)         Upon determination by the Department that a substantial breach of a WIC Vendor Contract has been committed by a Vendor, the Department will repudiate that Contract and terminate the Vendor Authorization.

 

b)         Any repudiation of the Vendor Contract by the Department and resultant termination of the WIC Retail Vendor Contract will take effect only after the Vendor receives 15-day advance written notification of the adverse action and the causes for, and effective date of, that action.

 

c)         The sale, lease, or cessation of a business authorized by the WIC Vendor Contract will void the Vendor Contract.  Any change in location of the business authorized by the WIC Vendor Contract may be subject to review and approval by the Department in accordance with the Vendor Contract.

 

d)         Should the vendor qualify as a 50% Vendor during the period of the contract, the Vendor Contract will become void.  If the Department determines that a vendor qualifies as a 50% Vendor during the contract, it will give the vendor 15 days' notice of the determination and declare the contract void.  The vendor may reapply for WIC approval 90 days after the notice by showing that the business model has changed and that it will not be a 50% Vendor.  Upon approval by the Department, the contract may be reinstated.  The Vendor may appeal a determination made during the contract that it is a 50% Vendor pursuant to Section 672.600, but the appeal will not delay voiding of the contract.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.525  Notice of Violation (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

SUBPART F: RULES OF PRACTICE AND PROCEDURES IN ILLINOIS WIC RETAIL VENDOR ADMINISTRATIVE HEARINGS

 

Section 672.600  Hearings

 

To appeal an appealable action as set forth in Section 672.515(c), the adversely affected party shall request a hearing within 15 calendar days after receipt of the advance notification. The hearing shall be conducted in accordance with 89 Ill. Adm. Code 508, with the addition of the following provisions:

 

a)         An administrative hearing must be requested within 15 calendar days after receipt of the advance notification. Failure to request a hearing within this time frame shall constitute a waiver of the person's right to an administrative hearing.

 

b)         The burden of proof rests with the Department in relation to all administrative actions initiated by the Department pursuant to Section 672.510.

 

c)         The burden of proof rests with the applicant as to all administrative actions initiated upon a petition for hearing filed by an applicant after the denial of authorization under Section 672.225, and with the Vendor in requests for hearing upon repudiation of contracts under Section 672.520.

 

d)         The Secretary or designee shall be the final decision maker in the administrative hearing.

 

e)         The advance written notification set forth in Section 672.515(b) is not an "emergency action" for purposes of 89 Ill. Adm. Code 508.40.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.605  Parties to Hearings (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.610  Appearance and Representation of a Party

 

a)         A party may be represented by an attorney who is licensed to practice law in Illinois. Attorneys who appear in a representative capacity must file a written notice of appearance setting forth:

 

1)         the name, address and telephone number of the attorney;

 

2)         the name and address of the party represented; and

 

3)         an affirmative statement indicating that the attorney is licensed to practice law in Illinois.

 

b)         An attorney may withdraw from representation only upon written notice to the Department stating the reasons for withdrawal and consistent with the Code of Civil Procedure [735 ILCS 5].  The withdrawal will require an appropriate ruling by the Administrative Law Judge.

 

c)         A sole proprietor who is authorized as a WIC Retail Vendor or former Vendor, or any person or entity engaged in the activity of a WIC Vendor may appear and be heard on his or her own behalf.

 

d)         A corporation or association that is authorized as a WIC Retail Vendor or was authorized as a former Vendor, or any person or entity engaged in the activity of a WIC Vendor, shall appear and be heard only by an attorney licensed to practice in the State of Illinois.

 

e)         A partnership or limited partnership authorized as a WIC Retail Vendor or that was authorized as a former Vendor, or any person or entity engaged in the activity of a WIC Vendor, may appear and be heard by any partner, upon presentation to the Department of written authorization from all partners authorizing that person to act in a representative capacity.

 

f)         A limited liability company authorized as a WIC Retail Vendor or that was authorized as a former Vendor, or any persons or entity engaged in the activity of a WIC Vendor, shall appear and be heard only by an attorney licensed to practice in the State of Illinois.

 

g)         Special appearances are not recognized.  The initial appearance, regardless of form, is deemed a general appearance.

 

h)         Each party to a proceeding who appears before the Department, either in person or by counsel, shall inform the Department in writing or upon the record of the address at which any notice or other document may be served upon the party in that proceeding.  All further service may be made by regular mail unless otherwise required by statute or rule.  Service shall be presumed unless disputed in the record.

 

i)          Attorneys appearing before the Department shall conform their conduct to the Illinois Code of Professional Responsibility.  Any failure to behave in a manner that permits the efficient functioning of the hearing will authorize the Administrative Law Judge to take any of the following actions:  

 

1)         limitation of evidence;

 

2)         substitution of written argument in place of oral argument; or

 

3)         exclusion of an attorney from the proceeding.

 

(Source:  Amended at 46 Ill. Reg. 2073, effective January 21, 2022)

 

Section 672.615  Commencement of an Action (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.620  Motions (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.625  Discovery (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.630  Form of Papers (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.635  Service (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.640  Pre-Hearing Conferences (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.645  Conduct of Hearings (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.650  Subpoenas (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.655  Burden of Proof (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.660  Administrative Law Judge's Report and Final Decision (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.665  Records of Proceedings (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)

 

Section 672.670  Miscellaneous (Repealed)

 

(Source:  Repealed at 19 Ill. Reg. 606, effective January 9, 1995)




 

Section 672.APPENDIX A   Illinois Regional Map (Repealed)

 

(Source:  Repealed at 46 Ill. Reg. 2073, effective January 21, 2022)