Sec. 10.54.03.16. Vendor Sanctions

A. The Program may sanction a vendor that fails to comply with a required practice in Regulation .15B(1)(a)-(k) and (p) and (2)(b) and (e)-(g), C(1)(a)-(n), (2)(a), (b), (d), (e), (j), and (k), and (3), and D(1)(a) and (d) of this chapter as follows:

(1) Written warning following each violation; and

(2) Disqualification for 1 year for a pattern of violations of the same provisions within a 12-month period.

B. The Program may sanction a vendor that fails to comply with a required practice in Regulation .15B(1)(l), (n), (o), and (q) and (2)(c) and (i), C(1)(l), and D(1)(d) and (2)(a) of this chapter by disqualifying the vendor for 1 year.

C. The Program shall sanction a vendor that fails to comply with a required practice in Regulation .15C(2)(h) of this chapter by disqualifying the vendor for 3 years.

D. The Program shall sanction a vendor that fails to comply with a required practice in Regulation .15C(2)(g) or (i) of this chapter by disqualifying the vendor for 6 years.

E. The Program shall sanction a vendor that fails to comply with a required practice in Regulation .15C(2)(g) or (i) of this chapter by permanent disqualification if the vendor is convicted in a criminal court of charges stemming from those violations.

F. The Program shall sanction a vendor that fails to comply with a required practice in Regulation .15B(2)(a), C(2)(c) or (f), or D(1)(b) or (c) or (2)(b) of this chapter by:

(1) A written warning if one violation is detected in any 12-month period; or

(2) Disqualifying the vendor for 3 years for two or more violations of the same provision in any 12-month period.

G. When a vendor that has previously received a sanction for violation of the provisions of Regulation .15B(2)(a), C(2)(c) or (f), or D(1)(b) or (c) or (2)(b) of this chapter, the Program shall impose a 6-year disqualification for violation of the same provision.

H. Disqualification.

(1) Except in circumstances described in §H(2) of this regulation, the Program shall disqualify a vendor that has been disqualified by SNAP in violation of Regulation .15B(1)(m) of this chapter for the same length of time as the SNAP disqualification.

(2) If disqualification of the vendor will result in inadequate participant access in accordance with Regulation .19 of this chapter, the State agency shall impose a civil money penalty in lieu of disqualification.

(3) Except in circumstances described in §H(4) of this regulation, the Program shall disqualify a vendor that has been assessed a civil money penalty for hardship by SNAP instead of disqualification by SNAP in violation of Regulation .15B(1)(m) of this chapter, for the same period for which the vendor would otherwise have been disqualified by SNAP.

(4) If disqualification of a vendor that has been assessed a civil money penalty for hardship by SNAP instead of disqualification by SNAP would result in inadequate participant access in accordance with Regulation .19 of this chapter, the Department may not:

(a) Disqualify the vendor; or

(b) Impose a civil money penalty in lieu of disqualification.

I. The Program may not accept a vendor's voluntary cancellation of the vendor's authorization in lieu of a disqualification.

J. The Program shall sanction a vendor that fails to comply with a required practice in Regulation .15B(1)(s) or (2)(d) of this chapter by terminating the vendor agreement.

K. The State agency shall notify the USDA of a disqualification or money penalty:

(1) Within 15 days after the vendor's opportunity to request an administrative appeal has expired; or

(2) After the vendor's administrative appeals have been exhausted.

L. If a vendor is disqualified or has been assessed a money penalty because of multiple violations in a single investigation, the Program shall:

(1) Sanction the vendor for the single most serious violation; and

(2) Include the following in its notice to USDA:

(a) The vendor's:

(i) Name;

(ii) Address; and

(iii) Identification number;

(b) The length of any disqualification;

(c) The specific violations charged; and

(d) The amount of any money penalty.

M. Upon completion of the period of disqualification a vendor shall regain authorization after successfully completing the authorization process as set forth in Regulation .04 of this chapter.

N. Military Commissaries. The Program:

(1) May not sanction military commissaries for Program violations; and

(2) Shall report a sanctionable offense committed by a military commissary to the commanding officer of the installation and, if the commanding officer takes no action to ensure the violation does not recur, to the USDA.

O. Any adverse action taken by the SNAP will be reciprocated by the Program to include disqualification and if applicable, imposing a civil money penalty.