Sec. 60-1.9. Local agency violation of the WIC program

(a) A local agency shall be considered in violation of the WIC program if it:

(1) fails to submit to the department, obtain approval for, or fully implement a nutrition education plan;

(2) diverts money budgeted for administrative expenses to nonbudgeted administrative items;

(3) fails to monitor food vendors under contract at a frequency prescribed by the department;

(4) fails to submit reports as required by the department;

(5) fails to contract with a food vendor when directed to do so by the department; or

(6) otherwise does not comply with the terms of its agreement with the department.

(b) When a local agency is found in violation of the WIC program, it may be subject to one or more of the following penalties:

(1) reduction of reimbursement by 1/6 of the administrative budget for failure to fulfill its contractual responsibilities for nutrition education;

(2) reduction of reimbursement for costs of activities which were not authorized under the terms of the agreement with the State agency;

(3) a civil penalty of up to $1,000 per violation, pursuant to section 12 of the Public Health Law;

(4) termination of the agreement with the department; or

(5) any other penalty prescribed by the Public Health Law.

(c) No local agency may be disqualified from participation except on 60 days' written notice of the disqualification.