FOOD DELIVERY Table Of Contents SECTION SUBJECTS EFFECTIVE .

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FOOD DELIVERYTable of ContentsSECTION SUBJECTSEFFECTIVEDATE4.00Food Delivery DefinitionsOctober 1, 19964.01Conflict of InterestOctober 1, 20134.01A WIC Employee Conflict of Interest Statement4.01B Conflict of Interest Acknowledgement Form4.02Food Instrument SystemOctober 1, 2013February 1, 2015October 1, 19904.02A Maryland eWIC Food Instrument4.03Prorating Benefits4.04Has been removed4.05Voiding Benefits4.06Has been removed4.07Has been removed4.08Has been removed4.09Has been removed (see P&P 7.82)4.10Food Benefit Issuance, Replacement and Over-Issuance4.11Has been removed4.12Instructions to Participants, Guardians, and DesigneesOctober 1, 1994October 1, 1994October 1, 1994October 1, 19944.12A Welcome to WIC Brochure4.12B Has been removed4.13Vendor AuthorizationJuly 1,1997

4.13A Retail Vendor Onsite Review Form4.13B Retail Vendor Onsite Review Form Instructions4.13C Standard Vendor Agreement4.14Special Formula Distribution CenterJanuary 1, 20034.14A CAP Formula Tracking Log4.14B has been removed4.15Food Delivery System Training and GuidelinesOctober 1, 19964.16Vendor MonitoringOctober 1, 19964.16A Quarterly Vendor Monitoring Log4.16B Instructions for Vendor Monitoring4.16C Vendor Monitoring Report4.16D Vendor Educational Buy Report4.17High Risk VendorsOctober 1, 19964.18Compliance BuysOctober 1, 19974.18A Compliance Case Assignment Form4.18B Transaction Report4.18C Warning Letter4.18D Notice of Disqualification4.19Vendor Sanction PolicyOctober 1, 20114.20Participation Hardship and Civil Money PenaltiesOctober 1, 19964.21Vendor FilesOctober 1, 19964.22Dual ParticipationOctober 1, 19924.23Applicant, Parent, Guardian, or Proxy Program Abuseand SanctionsOctober 1, 19944.23A Warning Letter4.23B Verification of Employment Letter4.23C Release of Information Form4.23D Notice of Payment Due4.23E Has been removed4.23F Has been removed4.23G Vendor Retail Incident Report

4.23H Disqualification Notice4.23I Program Abuses and Sanction Schedule4.24Has been removed4.25Internal Investigations for Fraud and/or AbuseOctober 1, 19944.25A Chain of Custody Form4.26Vendor AppealsOctober 1, 19964.27Has been removed4.28Monitoring for Infant Food and Formula FraudOctober 1, 20124.29Compliance Inventory AuditsJanuary 8, 20164.29A Inventory Audit Monitoring Form - Formula4.29B Inventory Audit Monitoring Form - Foods4.29C Inventory Audit Monitoring Form Instructions4.29D Inventory Audit Analysis Form4.30Food Instrument Issuance and ReplacementNovember 8, 2017

MARYLAND DEPARTMENT OF HEALTHWIC PROGRAMPOLICY AND PROCEDURE MANUALPolicy and Procedure Number: 4.00Effective Date: October 1, 1996Revised Date: January 26, 2018SECTION:FOOD DELIVERY SYSTEMSUBJECT:Food Delivery DefinitionsA.PolicyFor the purpose of these procedures and all contracts, guidelines, instructions,forms and other documents related to the operation of the WIC Program, thefollowing definitions shall apply:Above-50 percent vendorA vendor that derives more than 50 percent of thevendor’s annual food sales revenue from theredemption of WIC food instruments.AppealWritten request made by a vendor through the StateWIC Office to the Office of Administrative Hearings forreview of a Program action.APL (Approved ProductList)A list of WIC authorized food items, identified with aPLU or UPC that participants can purchase with theireWIC benefits.AuthorizationApproval by the State Agency for a food store,pharmacy only, food store/pharmacy combination, ora military commissary to redeem WIC foodinstruments.Authorized FoodsThe types and brands of foods approved by the WICState agency for purchase by Program participants.Balance InquiryTo provide the eWIC cardholder with a shopping listand/or to retrieve the balance of the prescriptionbenefits prior to beginning a purchase.Cash Value BenefitA benefit with a fixed dollar value used by participantsto obtain authorized fruits and vegetables.Policy and Procedure 4.00Page 1 of 8

Change of OwnershipThe transfer of majority control or ownership of astore.COMARCode of Maryland Administrative Regulations found omplaintUnsolicited accusation or charge from a vendor orparticipant of alleged abuse or violations.Compliance BuyA covert, onsite investigation in which a representativeof the Program: (a) poses as a participant, parent orcaretaker of an infant or child participant or proxy; (b)presents one or more food instruments for thepurpose of redeeming food benefits and (c) does notreveal during the visit that he or she is a Programrepresentative.Contract Brand InfantFormulaInfant formulas produced by the manufacturer(s)awarded the infant formula cost containment contract.DayA calendar day.DesigneeA proxy who can bring an infant or child participant tothe WIC clinic for visits on behalf of a parent orcaregiver.Direct DistributionWIC food distributor of specialty formula and otherWIC authorized food items as defined in 7 CFR246.12 (n).DisqualificationA revocation of a vendor’s WIC authorization.Educational BuyThe same procedure as the compliance buy with theexception that upon completion of the WICtransaction, the buyer will identify him/herself, and theresults of the buy will be reviewed with the appropriatestore personnel.EBT (Electronic BenefitsTransfer)A method that permits electronic access to benefitsusing a card with a magnetic stripe.EBT CapableVendor system(s) that is able to support accurate WICEBT purchases and file transactions.eWICAn electronic benefits transfer system for WIC.Policy and Procedure 4.00Page 2 of 8

Exempt Infant FormulaAn infant formula that meets the requirementsfor an exempt infant formula under section421(h) of the Federal Food, Drug andCosmetic Act and under the regulations at 21CFR parts 106 an 107.FarmerAn individual authorized by the State agencyto sell eligible fruits and vegetables toparticipants at a farmers’ market or roadsidestand.Farmers’ MarketAn association of local farmers who assembleat a designated location for the purpose ofselling their produce directly to consumers.First Business DayThe first day of a month that is not a Saturday,Sunday, or State holiday.FNS (Food and Nutrition Service)Food and Nutrition Service of the USDepartment of Agriculture, the funding agencyfor the WIC Program.Food InstrumentAn electronic benefits card that is used by aparticipant to obtain supplemental foods.Food PackageA grouping of specified types and amounts offoods provided to a Program participant.Food SalesSales of all SNAP (FSP) eligible foodsintended for home preparation andconsumption. Food sales do not include salesof any items that cannot be purchased withSNAP benefits such as hot foods or food thatis eaten in the store.Food StoreA grocery or supermarket licensed underCOMAR 10.15.03 that ordinarily has, for saleto the public, authorized foods and does nothave a pharmacy under the same ownershipon its premises.Food Store/Pharmacy Combination A food store and a pharmacy under the sameownership on the same premises.FSP (Food Supplement Program)Policy and Procedure 4.00The Maryland designation for theSupplemental Nutrition Assistance Program,Page 3 of 8

formerly known as Food Stamps, anassistance program under the Food StampAct of 1977, as amended.High-Risk VendorA vendor identified as having a potentialviolation in need of follow-up or who presentsthe potential for abuse of the Program or avendor with significant scores on theProgram’s computerized high risk vendorreport.In ComplianceTo follow the rules, regulations, policies andprocedures of the WIC Program.Local AgencyA public or private, non-profit health, orhuman service agency which provides WICservices, either directly or through contract, inaccordance with Section 246.5 of the FederalRegulations (Selection of local agencies).Maximum Payable PriceThe maximum amount of money the Programwill pay a vendor for a WIC approved fooditem.Exempt formulas authorized for children andwomen with special dietary needs.Medical FoodsMilitary CommissaryA food store located on a military installationand/or operated by the Department ofDefense.Minimum Required StockThe specific types and amounts of WICauthorized foods that must be in a vendor’sstore during business hours.Minor ViolationState-established sanctions listed in theState’s sanction schedule that are in additionto the federally mandated sanctions listed in§246.12(l) (1).Mixed BasketThe ability for a cardholder to purchase bothWIC and non-WIC foods without separatingthe food items prior to checkout into twoseparate transactions, WIC and non-WIC.Not to Exceed (NTE) PriceSame as Maximum Payable Price.Policy and Procedure 4.00Page 4 of 8

ParticipantA pregnant woman, breastfeeding woman,postpartum woman, infant, or child receivingsupplemental foods or a food instrument fromthe Program.Peer GroupThe classification of authorized vendors intogroups based on size within designatedgeographic regions that affect food prices, forthe purpose of applying appropriate competitiveprice criteria to vendors.Peer Group AverageThe arithmetic mean of prices charged byvendors within a peer group for food items.Pharmacy OnlyAn establishment that has been issued a permitto operate by the State Board of Pharmacy,does not have a food store under the sameownership on its premises, and only redeemsWIC food instruments that prescribe infantformula.PIN (Personal IdentificationNumber)A four digit number, selected by the eWICcardholder that is associated with theparticipant’s eWIC card and serves as anelectronic signature when purchasing WICbenefits.PLU (Product Look-Up Code)A four or five digit number affixed to producethat identifies what the product is.Positive BuyA compliance buy in which any violations(serious or minor) occur.ProgramThe Special Supplemental Nutrition Programfor Women, Infants, and Children (WIC)authorized by 42 U.S.C. § 1786, the ChildNutrition Act of 1966, as amended, includingthe local, state, and federal entities thatadminister it.Policy and Procedure 4.00Page 5 of 8

ProrationThe process of issuing the appropriate amountof benefits to a participant that correspondswith the period of eligibility and participation.ProxyAn individual who is designated by a participantor an infant or child participant’s parent,guardian, or caretaker to receive foodinstruments and to redeem benefits for theparticipant and whose name is on file at a WIClocal agency.PurchaseTo authorize and complete a sale.RegionA designated area of the State, set forth inCOMAR 10.54.03.03B for administration of theWIC Program.Routine MonitoringOvert, onsite monitoring of a vendor’s storeduring which Program representatives identifythemselves to vendor personnel.SanctionThe penalty for violating Maryland WICProgram rules, regulations, policies and/orprocedures.Serious ViolationFederally-mandated sanctions listed in§246.12(l) (1); also included on the State’ssanction schedule.SNAP (Supplemental NutritionAssistance Program)Supplemental Nutrition Assistance Program,formerly known as Food Stamps, an assistanceprogram under the Food Stamp Act of 1977, asamended.Split TenderA single CVB food item being redeemed in partusing CVB and in part using one or moreadditional methods of payment.State AgencyThe Maryland Department of Health WICProgram.State Provided EquipmentAlso referred to as “single function,” or “WIConly,” equipment provided by the WICProgram, used in addition to a store’s existingcash register system. It works independentlyfrom other store equipment and can be usedPolicy and Procedure 4.00Page 6 of 8

only for eWIC transactions.StoreA food store, pharmacy-only, foodstore/pharmacy combination, or militarycommissary.Supplemental FoodsFoods containing nutrients determined to bebeneficial for pregnant, breastfeeding, andpostpartum women, infants and children, asrequired by Federal Regulations (246.10) andthe Maryland WIC Program. Supplementalfoods are also called WIC foods, or WICauthorized or WIC approved foods and areconsidered supplemental because they are notintended to meet all the nutritional needs ofparticipants.TraffickingBuying, selling, submitting for reimbursement,redeeming, or exchanging WIC benefits withthe intent to defraud the WIC Program.UPC (Universal Product Code)The barcode unique to an item that identifieswhat that item is.USDA (United States Departmentof Agriculture)The federal agency that provides the fundingand federal oversight for the WIC Program.VendorA sole proprietorship, partnership, cooperativeassociation, corporation, or other businessentity operating one or more stores authorizedby the State agency to provide approvedsupplemental foods to participants under aretail food delivery system.Vendor AuthorizationThe process by which the State agencyassesses, and enters into a signed agreementwith retail food stores or pharmacies that applyor subsequently reapply to be authorized asWIC vendors.Vendor AgreementA written agreement between the State Agencyand a vendor concerning the duties andresponsibilities of the vendor and the StateAgency with respect to a vendor’s participationin the WIC Program.Policy and Procedure 4.00Page 7 of 8

WOWWIC on the Web – The Maryland Program’smanagement information system softwareapplication.References:Federal Regulations 7 CFR 246.2Federal Regulations 7 CFR 246.5COMAR 10.54.03Revisions:8/05 to add definition of 50% Vendor.2/07 to amend the definition of 50% Vendor.10/09 to add the definition of SNAP.10/13 to add additional definitions and to modify existing definitions.10/14 added definition of a positive buy1/2018 edited current definitions and also added new eWIC definitionsPolicy and Procedure 4.00Page 8 of 8

MARYLAND DEPARTMENT OF HEALTHWIC PROGRAMPOLICY AND PROCEDURE MANUALPolicy and Procedure Number: 4.01Effective Date: October 1, 2013Revised Date: August 22, 2018EffectSECTION:FOOD DELIVERY SYSTEMSUBJECT:Conflict of InterestA.PolicyThe State Agency and local agencies are required to take measures to ensurethat State Agency or local agency staff who are participants, proxies, have familymembers, relatives or close friends who are participants, or have a relationshipwith WIC authorized vendors do not pose a conflict of interest.B.PROCEDURE:1.Local WIC Agencies shall:a.Ensure that local agency employees are aware of the requirementto report possible conflicts of interest which include but are notlimited to:i. participation in the WIC Program;ii.serving as a proxy of a WIC participant;iii.having a family member, relative or close friends(s) who is aWIC participant;iv. employment at a WIC authorized vendor; andv.ownership or relationship to an owner of a WIC authorizedstore.b.Ensure that local agency employees do not certify or issue foodinstruments or benefits to any individual reported as a potentialconflict of interest based on criteria 1.a.i-iii above.c.Ensure that local agency employees reporting a potential conflict ofinterest based on criteria 1.a.iv-v above are not responsible forroutine monitoring of that vendor.d.Obtain a signed WIC Employee Conflict of Interest Statement(Attachment 4.01A) annually and when an employee’s status inrelation to 1.a.i-v changes to warrant documentation of a conflict ofinterest.Policy and Procedure 4.01Page 1 of 2

2.e.Request guidance from the State Agency should it not beimmediately clear if an employee’s status represents a conflict ofinterest.f.Ensure that the signed 4.01A forms are available for review duringthe local agency management evaluation or upon request by theState Agency.g.Submit to the State Agency, annually, in conjunction with the newstate fiscal year, a signed Conflict of Interest AcknowledgementForm (4.01B) confirming that that the local agency is incompliance with Local Agency Policy and Procedure 4.01.The State Agency shall:a.Ensure that a State Agency employee reporting a potential conflictof interest based on criteria in 1.a.iv-v are not responsible forroutine monitoring, compliance Investigation, or authorization ofthat vendor.b.Obtain a signed WIC Employee Conflict of Interest Statement(Attachment 4.01A) for all State Agency employees annually andwhen an employee’s status changes in relation to 1.a.i-v to warrantdocumentation of a potential conflict of interest.c.Provide guidance to the local agency if the local agency is not ableto ascertain if a possible conflict of interest exists.d.Maintain, on file, a copy of all local agencies’ 4.01B forms.e.Verify local agency compliance with this procedure through themanagement evaluation process.Attachment: 4.01A Employee Conflict of Interest Statement4.02B Conflict of Interest Acknowledgement FormRevisions:1.2.3.4.5.4/13 Changed the policy from Local Agency Responsibilities toConflict of Interest and added Attachment 4.01A (EmployeeConflict of Interest Statement)5/15 Added Attachment 4.02B6/16 Added relative or close friend and edited policy to simplifylanguage; modified 4.01A to document participant conflicts.6/17 revised to change language for eWIC and add date to 4.01A8/18 Updated State Director on attachment 4.01BPolicy and Procedure 4.01Page 2 of 2

Attachment 4.01AWIC Employee Conflict of Interest StatementI certify that I am an employee of the WIC Program and that I also (check all of the following that apply): am a WIC Participant am a WIC Proxy (write participant name/ID below) have a family member, relative, or close friend who is a WIC participant (write participantname/ID and relationship below) work for a Maryland WIC authorized vendor (write vendor name below) own or have relatives that own a WIC authorized grocery store or have a family member orrelative that works at a WIC authorized grocery store (write vendor name and relationshipbelow). (This statement should be selected even if the store is authorized in another state.) None of the above applies to meEmployee Name (Please Print)Employee SignatureDateAttachment 4.01APage 1 of 1

Attachment 4.01BMEMORANDUMTO:Director, Maryland WIC ProgramFROM:DATE:RE:Compliance with Conflict of Interest Policy 4.01This memorandum is to advise that my local agency is in compliance with Local AgencyPolicy and Procedures:4.014.01AConflict of InterestWIC Employee Conflict of Interest StatementCompliance includes completion of the WIC Employee Conflict of Interest Statement(4.01A) for all WIC employees. Submission of this memorandum also confirms that allstaff in my Local Agency who are participants, proxies, or employed by WIC authorizedvendors do not pose a conflict of interest, as described in Policy and Procedure 4.01.This form (4.01B) shall be signed annually in conjunction with the new state fiscal yearand sent to the State Agency by July 30th to be maintained on file. This form will besubject to review during local agency management evaluations.cc:Chief, Vendor Operations UnitRevised 8/22/2018

MARYLAND DEPARTMENT OF HEALTHWIC PROGRAMPOLICY AND PROCEDURE MANUALPolicy and Procedure Number: 4.02Effective Date: October 1, 1990Revised Date: November 8, 2017EffectSECTION:FOOD DELIVERY SYSTEMSUBJECT:Food Instrument SystemA.PolicyTo ensure a uniform and efficient method by which participants, caregivers, ordesignees obtain prescribed WIC foods:1. The State Agency shall ensure a supply of food instruments (eWIC cards)are stored at the WIC Distribution Center.2. The local agency shall order cards from the WIC Distribution Center toensure a sufficient supply for distribution to WIC participants, caregivers,proxies or designees.3. The State Agency shall ensure that only authorized vendors redeem WICbenefits and that redemption is carried out in the manner prescribed bythe Program.B.Procedure1. The local agency shall issue a food instrument in the form of an eWICcard to each family according to Policy and Procedure 4.30.2. The local agency shall ensure that each WIC cardholder is instructed onthe use of the eWIC card as outlined in Policy and Procedure 4.12.3. The State agency shall ensure that WIC vendors are instructed on theprocess of redeeming WIC ben

participant of alleged abuse or violations. Compliance Buy A covert, onsite investigation in which a representative of the Program: (a) poses as a participant, parent or caretaker of an infant or child participant or proxy; (b) presents one or more food instruments for the purpose of redeeming food benefits and (c) does not

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