<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".16" citation="COMAR 10.54.03.16" title_num="10" subtitle_num="54" chapter_num="03" heading="Vendor Sanctions.">
  <paragraph num="A.">
    <text>The Program may sanction a vendor that fails to comply with a required practice in Regulation .15B(1)(a)—(l), (n)—(q), and (t) and (2)(b) and (e)—(i), C(1)(a)—(n), (2)(a), (b), (d)—(f), (j), and (k), and (3), and D(1)(a) and (e) and (2)(a) and (c) of this chapter as follows:</text>
    <paragraph num="(1)">
      <text>Written warning following each violation; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Disqualification for 1 year for a pattern of violations of the same provisions within a 12-month period.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>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.</text>
  </paragraph>
  <paragraph num="C.">
    <text>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.</text>
  </paragraph>
  <paragraph num="D.">
    <text>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.</text>
  </paragraph>
  <paragraph num="E.">
    <text>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:</text>
    <paragraph num="(1)">
      <text>A written warning if one violation is detected in any 12-month period; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Disqualifying the vendor for 3 years for two or more violations of the same provision in any 12-month period.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>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.</text>
  </paragraph>
  <paragraph num="G.">
    <text>Disqualification.</text>
    <paragraph num="(1)">
      <text>Except in circumstances described in §G(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 SNAP disqualification.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>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.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Except in circumstances described in §G(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.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>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:</text>
      <paragraph num="(a)">
        <text>Disqualify the vendor; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Impose a civil money penalty in lieu of disqualification.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="H.">
    <text>The Program may not accept a vendor's voluntary cancellation of the vendor's authorization in lieu of a disqualification.</text>
  </paragraph>
  <paragraph num="I.">
    <text>The Program shall sanction a vendor that fails to comply with a required practice in Regulation .15B(1)(r) or (s) or (2)(c), (d), or (j) or D(1)(d) of this chapter by terminating the vendor agreement.</text>
  </paragraph>
  <paragraph num="J.">
    <text>The State agency shall notify the USDA of a disqualification or money penalty:</text>
    <paragraph num="(1)">
      <text>Within 15 days after the vendor's opportunity to request an administrative appeal has expired; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>After the vendor's administrative appeals have been exhausted.</text>
    </paragraph>
  </paragraph>
  <paragraph num="K.">
    <text>If a vendor is disqualified or has been assessed a money penalty because of multiple violations in a single investigation, the Program shall:</text>
    <paragraph num="(1)">
      <text>Sanction the vendor for the single most serious violation; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Include the following in its notice to USDA:</text>
      <paragraph num="(a)">
        <text>The vendor's:</text>
        <paragraph num="(i)">
          <text>Name;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Address; and</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Identification number;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>The length of any disqualification;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>The specific violations charged; and</text>
      </paragraph>
      <paragraph num="(d)">
        <text>The amount of any money penalty.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="L.">
    <text>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.</text>
  </paragraph>
  <paragraph num="M.">
    <text>Military Commissaries. The Program:</text>
    <paragraph num="(1)">
      <text>May not sanction military commissaries for Program violations; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>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.</text>
    </paragraph>
  </paragraph>
  <paragraph num="N.">
    <text>Any adverse action taken by SNAP will be reciprocated by the Program to include disqualification and if applicable, imposing a civil money penalty.</text>
  </paragraph>
</regulation>