<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".04" citation="COMAR 10.54.03.04" title_num="10" subtitle_num="54" chapter_num="03" heading="Authorization Requirements.">
  <paragraph num="A.">
    <text>A store shall obtain authorization to operate as a WIC vendor from the State agency before redeeming food benefits.</text>
  </paragraph>
  <paragraph num="B.">
    <text>A store:</text>
    <paragraph num="(1)">
      <text>May not redeem WIC food benefits unless the store is authorized as a WIC vendor by the State agency;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Constitutes a separate vendor and shall be authorized separately from other stores operated by the same business entity; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Shall have a single, fixed location.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>In order to receive authorization from the State agency, a vendor shall:</text>
    <paragraph num="(1)">
      <text>Submit a completed vendor application package as set forth in Regulation .07 of this chapter to the State agency;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Have in its store from the time of application the minimum required stock as set forth in Regulation .14 of this chapter;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Post shelf prices for all WIC-approved foods at, on, or near the food items;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Comply with applicable federal and State laws and regulations;</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Maintain the store premises in a sanitary condition with no evidence of:</text>
      <paragraph num="(a)">
        <text>Excess trash;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Vermin; or</text>
      </paragraph>
      <paragraph num="(c)">
        <text>General lack of cleanliness;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(6)">
      <text>Be accessible to persons with disabilities;</text>
    </paragraph>
    <paragraph num="(7)">
      <text>Successfully complete an on-site review as set forth in Regulation .08 of this chapter;</text>
    </paragraph>
    <paragraph num="(8)">
      <text>Have a management representative attend a training session offered by the State agency;</text>
    </paragraph>
    <paragraph num="(9)">
      <text>Be authorized by SNAP; and</text>
    </paragraph>
    <paragraph num="(10)">
      <text>Be in good standing with SNAP and have not:</text>
      <paragraph num="(a)">
        <text>Been disqualified;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Been suspended;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Been issued a charge or adverse action letter;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Filed an appeal; or</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Been assessed a civil money penalty within the 24 months prior to the date of application.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>In order to receive authorization from the State agency, a vendor applicant may not:</text>
    <paragraph num="(1)">
      <text>Have owners, officers, or managers that have been indicted for, convicted of, or have had a civil judgment entered against them for any activity indicating a lack of business integrity;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Currently be under disqualification by the State agency;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Owe money to the State agency; or</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Derive or derive after commencement of business more than 50 percent of the vendor’s or applicant’s annual eligible food sales revenue from food purchased with WIC food instruments, with the exception of:</text>
      <paragraph num="(a)">
        <text>A nonprofit entity; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>An above 50 percent vendor the State agency has authorized for participant access reasons.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>Pursuant to Regulation .19 of this chapter, if the State agency determines that a participant hardship exists, where access to special infant formula and WIC-eligible medical foods are not available through a food/pharmacy combination store, the State agency, at its sole discretion, may authorize a pharmacy only vendor that shall:</text>
    <paragraph num="(1)">
      <text>Adhere to the requirements set forth in §C(1) and (3)—(8) of this regulation;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Hold a current permit to operate as a pharmacy issued by the State Board of Pharmacy;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Only accept WIC food instruments prescribing exempt infant formula and WIC-eligible medical foods; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Upon request by a participant, provide exempt infant formulas and WIC-eligible medical foods within 48 hours, excluding weekends and holidays.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Except for a pharmacy only or military commissary, a vendor applicant shall have actual lowest current shelf prices that are less than or equal to 125 percent of the peer group average in the vendor applicant’s region during the month of application, as determined by the State agency for each of the food packages set forth in Regulation .06A of this chapter.</text>
  </paragraph>
  <paragraph num="G.">
    <text>A vendor applicant may not apply for authorization in order to circumvent sanctions imposed by SNAP or the State agency on a previous vendor.</text>
  </paragraph>
  <paragraph num="H.">
    <text>The vendor applicant shall provide to the State agency documents that demonstrate the vendor applicant has submitted the application in good faith including but not limited to:</text>
    <paragraph num="(1)">
      <text>A copy of the sales agreement including but not limited to the sales price;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Names and addresses of the owners, directors, managers, and other decision makers of the store, including whether any of these people are related to the vendor who has been sanctioned; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>A copy of the lease or deed for the store.</text>
    </paragraph>
  </paragraph>
  <paragraph num="I.">
    <text>In order to determine whether the vendor applicant seeks authorization in order to circumvent sanctions imposed on a vendor by the State agency, the State agency shall review the totality of the circumstances and may consider whether the:</text>
    <paragraph num="(1)">
      <text>Vendor applicant is related to the former vendor;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Former vendor or a relative of the former vendor is involved in the operation of the store;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Former vendor or a relative of the former vendor is a director, officer, or otherwise part of the entity that will own the store; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Business was sold for fair market value.</text>
    </paragraph>
  </paragraph>
  <paragraph num="J.">
    <text>A store can be reassessed at any time during the authorization period to ensure that it meets the current vendor authorization requirements as set forth in this regulation.</text>
  </paragraph>
  <paragraph num="K.">
    <text>A vendor applicant denied authorization three times in a 12-month period may not reapply until after 12 months have passed since the last denial date.</text>
  </paragraph>
</regulation>