This final rule, published in the Federal Register on
January 6, 2009, amends the WIC regulations by adding three
vendor-related requirements mandated by the Child Nutrition and WIC
Reauthorization Act of 2004. This final rule requires WIC State agencies
to:
• notify WIC-authorized retail vendors of an initial
violation in writing, for violations requiring a pattern of occurrences
in order to impose a sanction, before documenting a subsequent
violation, unless notification would compromise an investigation;
• maintain a list of State-licensed wholesalers,
distributors, and retailers, and infant formula manufacturers registered
with the Food and Drug Administration, and require WIC-authorized retail
vendors to purchase infant formula only from sources on the list; and
• prohibit the authorization of or payments to
WIC-authorized vendors that derive more than 50 percent of their annual
food sales revenue from WIC food instruments (“above-50-percent
vendors”) and which provide incentive items or other free merchandise,
except food or merchandise of nominal value, to program participants or
customers unless the vendor provides the State agency with proof that
the vendor obtained the incentive items or merchandise at no cost.
This rule also adjusts vendor civil money penalty (CMP)
levels to reflect inflation.
Effective Date: March 9, 2009.
