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The proposed rule would modernize vendor integrity requirements by reflecting the WIC program’s nationwide implementation of electronic benefits transfer (EBT) and its move away from paper-based processes. It would advance security requirements to protect WIC participants’ personal information and taxpayers in a modern marketplace. Further, it would enhance requirements regarding State agency vendor selection criteria and investigation techniques to reduce vendor fraud, abuse, and waste. The rule would also strengthen vendor investigation, violation, and sanction regulatory requirements.

Statement of Need:

To strengthen program integrity in the WIC program, this proposed rule modernizes vendor integrity requirements by shifting from paper-based to electronic benefits transfer (EBT) processes nationwide. The regulations will protect WIC participants’ personal information and taxpayer funds. Furthermore, the rule enhances state agency vendor selection criteria and investigation techniques to reduce vendor fraud, abuse, and waste. Stronger regulatory requirements for vendor investigations, violations, and sanctions will significantly improve oversight.

Summary of the Legal Basis:

The legal basis for this proposed rule can be found in Public Law 89-642.

Alternatives:

There are no known alternatives that prevent program abuse and enhance integrity in the modern electronic benefits transfer operational environment as effectively as the proposed rule.

Anticipated Costs and Benefits:

Anticipated costs and benefits will be discussed in the Regulatory Impact Analysis which will accompany the rule.

Risks:

Any associated risks will be discussed in the proposed rule.