12VAC5-195-550: High-risk retailers

A. A high-risk retailer is a retailer who has a high probability of committing a vendor violation due to meeting specific high-risk indicators. The state agency shall classify each authorized retailer as either high-risk, probationary, or non-high-risk.

B. The state agency will identify high-risk retailers at least once a year using criteria developed by FNS or other FNS-approved, statistically-based criteria developed by the state agency.

C. Any retailer receiving a WIC program civil monetary penalty and that is being retained in lieu of disqualification may be designated as high-risk.

D. Retailers are designated high-risk for a minimum one-year period and will have their status periodically evaluated by the state agency. Retailers found to meet high-risk indicators during the course of a year after the state conducts its annual high-risk vendor analysis may be identified as high-risk at the discretion of the state agency. Authorized retailers designated as high-risk may be selected for more frequent onsite and covert monitoring investigations.

E. If a retailer is retained in lieu of disqualification, a written assurance letter must be submitted to the state agency within 30 calendar days after being notified of this requirement or another mutually agreed upon timeframe made in writing. The retailer's assurance letter must detail the actions the retailer will take to improve performance.