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USDA/FNS

RIN: 0584-AD47

Publication ID: Spring 2009

Title: Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): Discretionary WIC Vendor Provisions in the Child Nutrition and WIC Reauthorization Act of 2004, Public Law 108-265
Abstract: This final rule amends regulations for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) by adding three requirements mandated by the Child Nutrition and WIC Reauthorization Act of 2004 (Pub. L. 108-265), concerning retail vendors authorized by WIC State agencies to provide supplemental foods to WIC participants in exchange for WIC food instruments. First, this rulemaking requires WIC State agencies to notify WIC-authorized retail vendors of an initial violation, for violations requiring a pattern of occurrences in order to impose a sanction, before documenting a subsequent violation unless such notification would compromise an investigation. Second, State agencies are required to maintain a list of State-licensed wholesalers, distributors, and retailers, as well as infant formula manufacturers registered with the Food and Drug Administration; WIC-authorized retail vendors are required to purchase infant formula only from sources on the list. Third, State agencies are prohibited from authorizing or making payments to WIC-authorized vendors that derive more than 50 percent of their annual food sales revenue (above-50-percent vendors) and that provide incentive items or other free merchandise except food or merchandise of nominal value to program participant customers unless the vendor provides the State agency with proof that the vendor obtained the incentive items or merchandise at no cost. The intent of these provisions is, respectively, to enhance the due process for vendors, to prevent defective infant formula from being consumed by infant WIC participants, and to prevent increased WIC food costs caused by above-50-percent vendors who provide incentive items to participants which ultimately are derived from the proceeds of WIC purchases. Unrelated to Public Law 108-265, this final rule will also provide inflation adjustments for vendor civil money penalties. (04-007)
Agency: Department of Agriculture(USDA)	Priority: Other Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Completed Actions
Major: No	Unfunded Mandates: No
CFR Citation: 7 CFR 246
Legal Authority: 42 USC 1786

Legal Deadline:

Action	Source	Description	Date
Final	Statutory		06/30/2006

Overall Description of Deadline: Public Law 108-265 required a final rule by the end of June 2006 to mandate that all WIC State agencies notify WIC-authorized retail vendors of an initial violation before a sanction can be imposed based on a pattern of violation occurrences.

Timetable:

Action	Date	FR Cite
NPRM	08/01/2006	71 FR 43371
NPRM Comment Period End	10/02/2006
Final Action	01/06/2009	74 FR 544
Final Action Effective	03/09/2009

Regulatory Flexibility Analysis Required: No	Government Levels Affected: Federal, Local, State, Tribal
Small Entities Affected: Businesses, Governmental Jurisdictions	Federalism: No
Included in the Regulatory Plan: No
RIN Information URL: http://www.fns.usda.gov/wic
RIN Data Printed in the FR: No
Agency Contact: James F Herbert Regulatory Review Specialist Department of Agriculture Food and Nutrition Service 3101 Park Center Drive, Alexandria, VA 22302 Phone:703 305-2572 Email: james.herbert@fns.usda.gov