Section 60-1.11 - Fair hearings involving vendor applicants and vendors due to application denial or contract termination
Effective Date
60-1.11 Fair hearings involving vendor applicants and vendors due to application denial or contract termination.
(a) A vendor applicant or vendor, upon request, shall be entitled to a fair hearing under this section if its application to supply supplemental foods to WIC program participants is denied, or if it is terminated during the contract period from the WIC program for violation of its contract with the vendor management agency or for high prices or low volume as defined in the vendor's contract. A fair hearing shall not be required when a vendor contract has expired and has not been renewed.
(b) If a vendor applicant or vendor is denied authorization to redeem WIC benefits by, or is terminated from the WIC program, such vendor applicant or vendor shall be given written notice promptly of such action, the reasons therefore, the rules and regulations governing vendor authorization by the WIC program, and the right to a fair hearing, and that such hearing may be obtained by the vendor by following the procedure indicated in the notice of agency action within 15 days from the date of the notice. Failure to request a hearing within the required 15-day period will result in a waiver of the vendor applicant’s or vendor’s right to a hearing.
(c) Once a timely request for hearing is received, a written notice of hearing shall be sent by certified mail to the petitioner and other parties involved at least 10 days prior to the scheduled date of the hearing. Such notice shall:
(1) specify the date, time and place of the hearing;
(2) state briefly the issues which are to be the subject of the hearing;
(3) explain the manner in which the fair hearing will be conducted;
(4) apprise the petitioner of its right to be represented by an attorney, to testify, present documentary evidence, produce witnesses, cross-examine adverse witnesses, and to examine prior to and during the hearing the documents and records supporting the action under appeal; and
(5) state that failure to appear at the fair hearing shall constitute waiver of the petitioner's right to a hearing and that an order will be issued denying or terminating the petitioner's authorization to redeem WIC benefits.
(d) The administrative law judge, in rendering a decision on the vendor applicant's application for authorization by the WIC program to redeem WIC benefits shall be bound by section 60-1.12 of this Subpart.
(e) Under this section, the burden of proof to become or remain authorized by the WIC program to redeem WIC benefits shall be borne by the petitioner.
(f) The provisions of section 60-1.6(d) and (h) of this Subpart concerning hearings, hearing officers, and record of hearings shall apply to fair hearings for vendor applicants and vendors conducted pursuant to this section.
(g) A copy of the fair hearing decision shall be sent to the petitioner, their attorney, if any, and any other parties involved, within 60 days following the date on which the State agency received the request for a hearing.
(h) Nothing in this section shall prevent the department from immediately denying authorization to redeem WIC benefits to any vendor applicant or terminating any vendor from the WIC program provided that, in the case of termination, written notice of termination is given to the vendor at least 15 days before the effective date of the termination. A denial of authorization shall take effect upon written notice of the vendor applicant. The denial of authorization or termination may not be stayed during the pendency of the hearing by the administrative law judge without the consent of the department’s representative at the hearing. The denial of authorization or termination shall remain in effect unless an order is issued at the conclusion of the hearing which authorizes the vendor applicant or reinstates the vendor.
(i) This section shall not preclude the department from commencing a subsequent proceeding to assess an administrative fine or civil money penalty against the vendor pursuant to section 60-1.10 of this Subpart.
(j) This section shall not preclude the department from ordering a vendor to immediately cease and desist from conducting WIC transactions of any kind. If the department takes such action, it shall immediately notify the vendor. The vendor may request a hearing in the manner set forth in subdivision (b) of this section. This section shall govern the conduct of such a hearing.