Sec. 10.54.03.19. Participant Hardship

A. Except for the sanction prescribed in Regulation .16E of this chapter, the State agency may determine that a participant hardship would exist if a vendor is disqualified and one of the following conditions would result:

(1) At least ten participants have to travel more than 2 miles to reach a vendor;

(2) A physical barrier or condition exists that would make normal travel to another vendor impossible; or

(3) Ten or more participants can only be served properly by a particular vendor because of a language barrier, religious dietary needs, access to exempt infant formula, or access to WIC-eligible medical foods.

B. If the State agency determines that a participant hardship would exist if a vendor is disqualified, the State agency, in its sole discretion, may impose a money penalty instead of disqualification if the vendor:

(1) Provides to the State agency documentation that the violations that led to the sanction have been corrected; and

(2) Owes no payments to the State agency.

C. If the State agency determines to impose a money penalty, the State agency shall calculate the amount of the money penalty for each violation by multiplying 10 percent of the vendor's average monthly food instrument redemptions by the number of months the disqualification would have been in effect.

D. The State agency shall calculate the average monthly redemption by using:

(1) The 6 months immediately preceding notice to the vendor of the disqualification; or

(2) Up to 6 months' data if the vendor has not redeemed food instruments for a full 6 months before notice of the disqualification.

E. The maximum money penalty for each:

(1) Violation that would have resulted in a disqualification is $11,000; and

(2) Investigation that detected violations that would have resulted in disqualification is $49,000.

F. Vendor Money Payment.

(1) A vendor that owes a money penalty pursuant to §C of this regulation shall pay the money penalty either in a lump sum within 1 month from the date of billing by the State agency, or in installments.

(2) The State agency shall calculate the number of installment payments by dividing the amount due by 1/2 the number of months the disqualification would have been in effect.

(3) The vendor shall pay the:

(a) First installment not later than the date the disqualification would have been effective had there been no participant hardship; and

(b) Remaining payments on the first day of each succeeding month.

G. If a vendor fails to pay the money penalty in accordance with the payment schedule as provided in §F of this regulation, the State agency shall disqualify the vendor's authorization for the full period of the sanction and may not refund any partial payments.