Current through Register Vol. 47, No. 6, September 18, 2024
Food delivery refers to all aspects of the method by which WIC
participants receive food benefits, including but not limited to the issuing,
distribution, and processing of personal food instruments redeemable through
retail food markets and the statewide banking system. Food delivery shall be
uniform throughout the state as provided for by these rules.
(1)
Responsibilities of WIC
participants.
a.
Prompt
redemption of food instruments. A WIC participant must redeem WIC
benefits within the validated date of use.
b.
Claiming food instruments and
benefits. Enrolled participants are required to appear in person to
claim food instruments and benefits when they have appointments to certify or
have face-to-face, scheduled nutrition education contacts. Enrolled
participants who complete their nutrition education contacts via a
state-approved Internet nutrition education platform are not required to appear
in person to claim food instruments and benefits. A proxy may pick up food
instruments as described in the Iowa WIC Policy and Procedure Manual.
c.
Adherence to standards for use of
the food instrument. The WIC participant in using the WIC food
instrument to obtain the specified foods shall:
(1) At the time of receipt of food benefits
in the clinic, electronically sign that food benefits were received.
(2) Swipe the eWIC card at the vendor's ECR
and enter the participant's PIN at point of purchase.
(3) Not accept money in exchange for unused
food benefits or portions of the food allotment.
(4) Attempt to redeem food benefits only with
a WIC-contracted vendor.
(2)
Responsibilities of contract
agencies.
a.
Loss or theft
of food instruments. The contract agency is responsible for any
financial loss due to theft or other loss of food instruments from clinics.
Steps for minimizing the chances of theft or loss are followed in accord with
the Iowa WIC Policy and Procedure Manual.
b.
Mailing of WIC food
instruments. Mailing of food instruments to participants is allowed
only in specific situations as described in the Iowa WIC Policy and Procedure
Manual. Any mailing of WIC food instruments must have prior approval from the
state.
c.
Training/monitoring of WIC vendors. The contract agency shall
communicate information regarding the Iowa WIC program to vendors, as
instructed by the department. Monitoring and training of vendors and securement
of contracts shall be carried out in accordance with department directives
outlined in the Iowa WIC Policy and Procedure Manual.
d.
Food instrument/benefits
distribution on non-clinic days. It is the policy of the Iowa WIC
program to ensure maximum accessibility to program benefits by establishing
alternate procedures for distributing WIC food instruments to participants on
days other than regularly scheduled clinic days when the participant notified
the contract agency on or before the clinic day of the participant's inability
to appear at the clinic. Each contract agency shall establish written
guidelines for assessing the adequacy of reasons presented for inability to
appear and shall establish written procedures for alternative means of food
instrument/benefits distribution when a participant timely presents adequate
reasons for inability to appear on a regularly scheduled clinic day. These
written guidelines and procedures shall be subject to review and approval by
the department.
(3)
Responsibilities of department. Provision of foods through
retail grocers and special purpose vendors is an integral part of the WIC
program's function. It is the responsibility of the department to ensure that
there are a sufficient number of vendors authorized to provide reasonable
access for WIC participants. The department also has an obligation to ensure
that both food and administrative funds are expended in the most efficient
manner possible. As with all other purchases made by state government, this
means that all vendors must meet minimum criteria for approval. The Iowa WIC
program does not limit the number of vendors that may participate in the agency
service area. A retailer that intends to derive more than 50 percent of annual
revenue of the sale of food items from the redemption of WIC food instruments
will not be allowed. The department shall be responsible for the following:
a. Approving or denying vendor applications.
The department shall determine if applications meet the mandatory
specifications in 73.7(4) and meet the minimum review points in 73.7(4) for a
subsequent agreement.
b. Compiling
the statewide or local area composite data against which vendor applications
are reviewed, determining if applications meet the selection criteria which
require use of that data, providing training, and signing the initial
authorization agreement if a vendor is determined eligible.
c. Developing procedures, forms, and
standards for agencies to use in conducting on-site review of vendor
applications, monitoring, compliance buys, educational buy monitoring, or
compliance investigations as defined in 73.7(5).
d. Determining when compliance investigation
activities are necessary to verify WIC program violations, developing or
approving standards and procedures to be used in conducting the activities, and
arranging for an appropriate state or private agency to conduct the compliance
buying investigation as required.
e. Providing to vendors written notice of WIC
program violations and sanctions.
f. Ensuring that activities related to eWIC
follow information provided by FNS's WIC EBT operating rules, WIC EBT Technical
Implementation Guide and FNS Handbook 901.
(4)
Responsibilities of WIC
vendors. A potential vendor shall make application to the Iowa
department of public health WIC program and shall accept the obligations
imposed by the signing of a WIC vendor agreement prior to acceptance of any WIC
food instrument. The two categories for which any potential vendor may apply
are grocery vendors and special purpose vendors. A retailer that intends to
derive more than 50 percent of annual revenue of the sale of food items, for
grocery vendors, or of infant and special medical formula, for special purpose
vendors, from the redemption of WIC food instruments will not be approved.
a.
WIC vendor agreement. To
qualify for a WIC vendor agreement with the Iowa WIC program, a retail outlet
shall meet all of the following criteria:
(1)
The vendor must stock all of the following categories of items to be defined as
a grocery vendor: a minimum of 5 linear feet of raw fruits and vegetables; a
minimum of 12 linear feet of unbreaded fresh or frozen meats and poultry
(prepackaged luncheon meats do not qualify); canned and frozen vegetables;
dairy products; cereals; and breads.
(2) No more than 20 percent of the vendor's
gross retail sales may be from the sale of gasoline or other automotive
supplies.
(3) No more than 20
percent of the vendor's gross retail sales may be from the sale of alcoholic
beverages and tobacco products.
(4)
The vendor must maintain regular business hours. This shall include a minimum
of two 4-hour blocks of time on each of five days per week. Daily operating
hours shall be consistent from week to week and shall be posted.
(5) The vendor must stock the minimum variety
and quantity of WIC-approved foods as defined in the latest revised version of
the Iowa WIC vendor application.
1. The
specific brands of products that are included on the WIC-approved food list
shall be made available to the vendor at the time of application and prior to
renewal of each agreement.
2. The
variety and quantity in stock are defined as including both inventory on
display and in on-premises storage, but not inventory on order from
suppliers.
(6) The
vendor must purchase formula only from state-licensed wholesalers,
distributors, retailers, and infant formula manufacturers registered with the
Food and Drug Administration (FDA) through a list maintained by the WIC
program.
(7) A vendor shall charge
a price to WIC participants that is equal to or less than the price charged to
all other customers. The vendor's average price for any category of WIC items,
as reported on the application, at the time of the on-site review, and
throughout the agreement period, shall not exceed 115 percent of the average
price charged for the same category by all other WIC vendors in the same peer
group. Categories refer to the broad groupings of items rather than specific
brands. For purposes of making the price comparisons, the average price for all
other WIC vendors in the peer group shall be computed from the most recent
Price Assessment Reports on file from those vendors. If a vendor intends to
comply with this provision by charging WIC participants a lower price than the
price charged to other customers, the WIC price for each approved item must be
identified on the package or shelf front.
(8) Vendors will also be selected based on
access to WIC participants. If at all possible, at least one vendor contract
will be maintained in rural counties where a WIC clinic is located. The Iowa
WIC program does not limit the number of vendors that may participate in the
agency service area.
(9) The vendor
must have a current state of Iowa food establishment license.
(10) The vendor must consistently identify
WIC products by using shelf labels that meet specific criteria and price points
as described in the WIC Vendor Instructions and Agreement Booklet as found in
the Iowa WIC Policy and Procedure Manual.
(11) The vendor must not have had a
Supplemental Nutrition Assistance Program (SNAP) disqualification or civil
monetary penalty imposed within the 12 months preceding the date of the
application or reauthorization.
(12) The vendor must not have had a WIC
program suspension imposed or a WIC application denied within the six-month
period preceding the date of the application.
(13) The vendor must not have had a
conviction or civil judgment for any activity that indicates a lack of business
integrity against any of the officers or owners during the previous six
years.
(14) The vendor must accept
training on WIC program regulations prior to signing an agreement and must
agree to provide training to all employees who will handle WIC food instruments
prior to accepting any food instruments.
(15) The vendor must agree to adhere to all
provisions of the WIC Vendor Instructions and Agreement Booklet as found in the
Iowa WIC Policy and Procedure Manual.
b.
Special purpose vendor.
To qualify as a special purpose vendor, a retail outlet shall meet all of the
following criteria:
(1) The vendor may be
primarily a retailer of any type of merchandise but shall be authorized to
provide only specified infant formula in exchange for WIC food
instruments.
(2) The vendor must be
able to provide the specified formula within 48 hours; 72 hours if a weekend or
holiday is involved.
(3) The prices
charged to WIC participants must be equal to or less than the prices charged to
all other customers. The average price of each brand of infant formula sold to
WIC participants as reported must not exceed the average price of the same
brands of infant formula charged by all authorized WIC grocery vendors in the
same peer group.
(4) The vendor
shall meet the criteria in paragraph 73.7(4) "a,"
subparagraphs (2) through (4), (6) through (8), and (10) through (15), for
grocery vendors.
(5) The vendor
must agree to adhere to applicable provisions of the WIC Vendor Instructions
and Agreement Booklet as found in the Iowa WIC Policy and Procedure
Manual.
c.
Application review. The department shall review each vendor
application within five working days of receipt and determine if the
information provided indicates that the retail outlet meets the selection
criteria. If the application shows that the vendor does not meet one or more of
the criteria, the department shall deny the application. If the vendor's
application indicates that the vendor would qualify, the department or contract
agency shall make an on-site visit to verify that the information provided in
the application is correct, to provide training, and sign the agreement. If the
department or contract agency finds that the vendor has two or more types of
out-of-date, stale, or moldy WIC foods in stock during the on-site visit, the
vendor's application may be denied. If the contract agency or department
determines during the on-site visit that the vendor does not qualify, the
contract agency or department shall not sign the agreement. Within five working
days of disapproving an application or agreement, the department will advise
the vendor in writing of the reasons for denial of the application and the
procedure for appeal. During the on-site visit, the contract agency
representative is acting as an agent of the department and has the authority to
approve or deny an application.
A vendor that is denied an agreement, either at the application
review level or at the on-site review, is required to wait six months prior to
submitting a new application. Prior to completing its review, the department
may, at its discretion, request a vendor to resubmit an application if the
application has not been completed to the extent that a determination of
eligibility can be made.
d.
Reauthorization. If ownership of an authorized vendor changes
during the agreement period, the agreement becomes void. The new owner must
file an application and be approved prior to accepting WIC food instruments.
The WIC vendor agreement is valid only for the period of time specified, and a
vendor may not continue accepting food instruments past the expiration date
unless a new agreement is signed. When a currently authorized vendor makes
application for a subsequent agreement, an agreement shall be signed only if
the vendor has been assessed less than 60 violation points under paragraph
73.19(2)
"b" during a contract period.
Vendors must complete a new application and sign a new WIC
vendor agreement at least every three years to continue accepting WIC food
instruments.
The department shall send the vendor written notice at least 30
days prior to the expiration of the agreement that it does not intend to offer
the vendor a new agreement if the vendor has been assessed 60 or more violation
points under paragraph 73.19(2) "b" during a contract period
or if any of the following conditions are in effect:
(1) The vendor has failed to submit any of
the preceding year's Price Assessment Reports by the specified dates.
(2) Any of the selection criteria listed in
73.7(4) "a" and "b" above are no longer met.
Expiration of a WIC vendor agreement is not subject to appeal. A vendor who is
not offered a new agreement by the department has the right to file a new
application. If that application is denied, the vendor has the right to
appeal.
e.
Training. Vendors shall accept training in WIC program
policies and procedures at the on-site review prior to becoming an authorized
vendor and shall be responsible for training all employees who will be handling
WIC food instruments. The manager and person responsible for staff training
must allow time at this visit for training; the agreement will not be signed
until training is completed. Vendors shall be responsible for all actions of
their employees in conducting WIC transactions.
If violations of WIC program policies and procedures are
documented, either through on-site monitoring or other indirect means, the
vendor shall implement a corrective action training plan developed jointly by
the vendor and the department or contract agency.
f.
Cooperation during
monitorings. Contracted WIC vendors shall cooperate with department
and contract agency staff who are present on site to monitor the vendor's WIC
activities.
g.
Reimbursement to the WIC program. Vendors determined by the
department to have collected more moneys than the true value of food items
received shall make reimbursement to the department.
(5)
Vendor monitoring. To
maintain WIC program integrity and accountability for federal or state program
funds, the department and contract agencies shall conduct ongoing monitoring of
authorized vendors, both through on-site visits and through indirect means. A
sample of 10 percent of currently authorized vendors receives on-site
monitoring every year. Vendors that change ownership during the year or that
apply during the contract period receive an on-site visit prior to signing an
agreement. The types of on-site monitoring are defined as follows:
a. Routine or representative monitoring is
used for vendors for which there is no record of violations or complaints or
other indication of problems. It may include any or all of the following: use
of a food instrument or observation of a participant, educational buys, review
of inventory levels, review of vendor policies on return items, and review of
employee training procedures. The results of the monitoring are reviewed with
the owner or manager on duty, and a follow-up letter confirming the findings is
sent from the department. Routine monitoring may be performed by the department
or by contract agency staff under the direction of the department. Depending on
the nature and severity of violations noted, the department may schedule
additional visits, initiate a compliance investigation, or apply sanctions.
Educational buy monitoring is a specialized type of routine
monitoring. Department or contract agency staff attempt to use a WIC food
instrument to purchase unauthorized types or brands of foods to test the level
of training of vendor employees. At the conclusion of the transaction, the
results of the buy are discussed with the vendor owner or manager on duty.
After an educational buy is conducted, the purchased food may be donated.
Educational buys are used on authorized vendors selected by the department. If
unauthorized items are allowed to be purchased, the vendor shall agree to a
corrective action training plan. A follow-up educational buy is scheduled
within 30 to 90 days. A letter is sent from the department documenting the
violation. By signing a WIC vendor agreement, a vendor gives consent for
educational buys by the department or contract agency. Vendors are not notified
in advance that an educational buy is scheduled. The protocol for educational
buys, including procedures, appropriate items to purchase, and forms to be
used, is specified in the Iowa WIC Policy and Procedure Manual.
b. Electronic monitoring is
examination of indicators tracked in the vendor computer database. It allows
the analysis of data collected via computer from the contract agencies and the
state's bank, from which patterns indicating compliance with or deviation from
established patterns for Iowa WIC vendors emerge. Data is collected daily and
reviewed on an ongoing basis. Trends identified can necessitate another type of
monitoring, depending on the nature of each exception.
c. Compliance investigations may be used for
any vendors. Compliance investigations will be conducted annually in a minimum
percentage of vendors as mandated in federal regulations. A compliance
investigation includes a sufficient number of compliance buys to provide
evidence of WIC program noncompliance, two compliance buys in which no WIC
program violations are found, or when an inventory audit has been completed. A
compliance buy means a covert, on-site investigation in which a representative
of the WIC program poses as a participant, parent or caretaker, or proxy,
transacts one or more food instruments and does not reveal during the visit
that he or she is a WIC representative. Compliance buys may be performed by the
department or another state agency or private company under contract with the
department. The department is responsible for identifying the vendors to be
investigated and for approving the protocol to be used during the
investigation. Upon completion of a compliance buy documenting WIC program
violations, the department shall issue the vendor a notice of violation points
assessed unless such notification would hinder an investigation.
The department also monitors vendor performance through
in-office review of information. Such information, specifically the total
amount of WIC redemptions, is confidential as provided for in Iowa Code section
22.7(6). This business information could provide an advantage to competitors
and would serve no public purpose if made available.
