Section X. Authorization Selection Criteria

Federal Regulations require Illinois WIC to authorize a limited number of retail stores to ensure that WIC food funds are being spent most efficiently and cost-effectively, ensure adequate participant access, and allow for effective program management, oversight, and review of store performance. Authorized vendors comprise grocery stores, commissaries, pharmacies, grocery stores with pharmacies, and WIC Food Centers. The Department will review vendors' compliance with the authorization selection criteria throughout the agreement period. Failure to comply with these criteria may result in program sanctions or termination of the Vendor Agreement.

A. Criteria: All Vendor Types

Vendors must meet the following authorization selection criteria at the time of application and throughout the agreement period:

Location

Vendors authorized to participate in the WIC program.

Infant Formula

Vendors authorized to participate in the WIC program shall only purchase infant formula from wholesalers, distributors, and vendors authorized by the Department and follow state law and infant formula manufacturers registered with the FDA that provide infant formula. A listing of the current Authorized Formula Suppliers is available from the Department as Addendum 4 and published on the WIC Website. Vendors may be required to produce purchase invoices to document compliance.

Training

The vendor must accept training on WIC program regulations and processes and provide training to employees who will handle WIC transactions before accepting eWIC cards, at least annually, as required throughout the agreement period.

WIC redemptions less than 50%

New vendor applicants expected to derive more than 50% of their annual food sales revenue from WIC redemptions will not be authorized. If the Department finds a vendor is expected to be an above-fifty-percent vendor, authorization will be denied. Upon initial application, vendors must make sales data available and may be required to provide documentation of sales amounts. If not yet opened, estimates of expected sales are required. The Department will monitor the food transactions of newly authorized vendors to determine if WIC redemptions are above or below 50% of food sales revenue. Food Sales refers to sales of SNAP-eligible items unless otherwise noted. SNAP-eligible sales include all sales of food items that are eligible for purchase with SNAP. SNAP-eligible sales are not restricted to sales of foods purchased with SNAP as a form of payment. Any vendor that makes more than half of its SNAP-eligible sales from selling food items from the transaction of WIC Food Benefits, as defined in 7 CFR 246.2 (Above 50% Vendors), is included. This includes vendor applicants applying for initial authorization who estimate that they will make more than half of their SNAP-eligible sales from selling food items from the transaction of WIC Food Benefits.

Accuracy

True and correct information was submitted on the application.

No Discrimination

The store must not discriminate based on race, color, national origin, sex (including gender identity and sexual orientation), disability, age, or reprisal or retaliation for prior civil rights activity. It must make reasonable accommodations for WIC shoppers with disabilities.

No Current Disqualification

The owner must not currently be disqualified from the SNAP or WIC programs.

Financial Statements/Documents

Vendors agree to maintain and provide upon request the following information: monthly, quarterly, or annual total volume of business and/or gross edible food sales and purchase and inventory records of WIC foods purchased for a set period, such as invoices, receipts, and bank deposits, inventory/shelf price records of WIC food items and SNAP sales volume. The Department may request specific records to validate this information at any time during the agreement period, such as invoices for staple food items from a wholesaler, distributor, and/or manufacturer; financial statements, reports, tax forms, or other records sufficient in establishing SNAP-eligible food sales (for example Form 1065 for partnerships, Form 1040, Schedule C for sole proprietorships or Form 1120 for corporations). Acceptable purchase records or invoices shall legibly and reflect the following: name and address of the supplier or wholesaler; name and address of the purchaser (if receipt is from a wholesaler); date of purchase, including month, day and year; list of the items purchased including size, stock number (if available), UPC, quantity and unit price; method of payment and sales receipts for WIC approved foods purchased at retail grocer (for resale by the Vendor) must include the name and address of the store, date of purchase, description of the exact items purchased (e.g., 14 ounces Malt-O-Meal), the unit price of the items and total quantity purchased. The vendor is responsible for the validity of this information, and sanctions, up to disqualification, may be assigned if the information is proven inaccurate or records cannot be produced. Purchase records (e.g., invoices and receipts) must clearly describe the items or have computer codes that the seller can verify. Hand-dated documents are not acceptable.

Competitive Pricing

WIC item prices must be found at the application and remain competitive with other vendors in peer grouping (i.e., like stores in the same geographical type of area) within 120% of the peer group's mean price at the subcategory level.

No Conviction

Per 7CFR Part 3017 (Subpart A-6), the owner, officers, or managers must not have been convicted of or had a civil judgment entered against them for any activity indicating a lack of business integrity during the last six years-no history of business-related criminal convictions. Business integrity is the absence of conviction or a civil judgment for any activity indicating a lack of business integrity, including fraud, antitrust violations, embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims and obstruction of justice.

Email Address

A valid email address that is checked regularly must be provided to receive notifications. Notification, including program and policy updates, authorization notices, notices of adverse action (e.g., denials, notice of sanctions), and results of compliance activities such as investigations, will be sent by the program via email. The vendor agrees to return an email delivery and/or read the receipt when requested and is responsible for providing updates and/or changes to the email address. Vendors may request a waiver to receive notifications via hard copy through the US mail and the emailed notification. Multiple email addresses are encouraged.

B. Additional Criteria: Grocer Stores, Commissaries, and Groceries with Pharmacies

Grocery stores, Commissaries, and Groceries with Pharmacies must also meet the following criteria at the time of application and throughout the agreement period:

Stocking Requirements

The store meets the Minimum WIC Food Stocking Requirements of Illinois WIC-approved food items (based on the current Food List) as outlined in Section IV, always in sufficient quantities and variety to meet the needs of WIC shoppers. Before authorization and throughout the agreement period, the Department reviews applicant stocking levels of WIC-approved items so that adequate amounts are available for WIC shopper redemption. Vendor stock is examined (typically by on-site monitoring) during the application process and reported to the Department.

Food Sales

The store is a grocery store that sells a variety of food products, and the primary function is to sell groceries. Vendors that are primarily convenience stores and/or gas stations will not be considered as grocery stores and will not be WIC Authorized. Vendors will be asked upon application - both at original authorization and at renewal - for retail sales, SNAP authorization, and stocking information. The information provided by the vendor will be compared to SNAP information as appropriate and available. Vendors that are found to be identified as not meeting the criteria below as a grocery store will be denied authorization or terminated. The store provides a variety of staple foods to include:

  • At least three different varieties of items in each of these staple food categories:
    • Fresh meat (e.g., chicken, tuna, ham, beef; prepackaged luncheon meats do not qualify).
    • Grains (e.g., bread, rice, cereal).
    • Dairy products (e.g., milk, cheese, butter).
  • At least two different types of items in each of these staple food produce categories:
    • Fresh fruits (e.g., apples, oranges, pears).
    • Fresh vegetables (e.g., squash, spinach, cabbage).
  • At least one of the following is true:
    • Annual food sales (i.e., food items eligible for purchase with SNAP benefits) are greater than or equal to 65% of total annual sales.
    • Annual food sales exceed $1 million.
  • The annual sale of hot and/or cold freshly prepared foods that are ready-to-eat does not exceed 50% of total sales.
  • The store must have a valid food service license as defined by the Illinois Food Code.

C. Additional Criteria: Pharmacies and Groceries with Pharmacies

Pharmacies and groceries with pharmacies meeting the definition of a pharmacy (please see Definitions and Additional Details) must meet the following criteria at the time of application and throughout the agreement period:

Licensed

The applicant is licensed as a pharmacy in Illinois through the Illinois Department of Financial and Professional Regulation.

Supply and Sales

The applicant agrees to be able to procure and sell all contract infant formula, exempt infant formula, and medical nutritionals listed on the Illinois WIC Formulary in the quantity requested by the WIC shopper within two (2) business days of request by the WIC shopper. This includes breaking cases of product if required to meet the amount requested.

D. Sale of Store to Circumvent Sanction

The Department may not authorize an applicant vendor if it determines the vendor's previous owner sold the store to circumvent a WIC sanction. The Department may consider factors such as whether the store was sold to a relative by blood or marriage of the previous owner(s) or sold to any individual or organization for less than its fair market value. Authorization will be denied or terminated if it is determined that the store has been sold to circumvent a WIC sanction.

E. eWIC Authorization Selection Criteria

In applying for WIC authorization, the vendor agrees to comply with Electronic Benefit Transfer (EBT) operating rules, the Illinois WIC Agreement, and the following stipulations:

  • Demonstrate its capability to accept WIC benefits electronically prior to authorization. If a vendor is necessary for participant access and cannot accept WIC benefits electronically, the Department may provide the vendor with or share in the cost of a stand-beside POS system.
  • Comply with EBT operating rules, standards, and technical requirements, as amended occasionally, including but not limited to WIC EBT Operating Rules, Specification for WIC EBT transactions, 7 CFR 246, and Implementation Guidelines.
  • Not ask the WIC shopper to pay cash for the sales tax amount that is applied to the manufacturer's coupons, but instead shall subtract the sales tax on the coupon from the face value of the coupon and then shall subtract the remaining value of the coupon from the retail price of the WIC food(s). 7 CFR 246.12(h)(3)(vii).
  • Allow the WIC shopper to purchase only those WIC-approved foods listed on the participant's benefit balance receipt and the Food List. Provide only the approved foods in the authorized quantities and specified sizes.
  • Not seek restitution from WIC shoppers for WIC supplemental foods purchased in an eWIC transaction that were not paid for or only partially paid for by Illinois WIC. Illinois WIC is not obligated to pay for EBT transactions that are improperly handled or voided. 7 CFR 246.12(h)(3)(x).
  • Not conduct WIC transactions in a separate liquor portion of the store.
  • Not conduct WIC transactions in self-checkout lines without pre-approval.
  • Not require a minimum eWIC purchase.
  • Not provide or allow change (i.e., cash) to a WIC customer for purchases less than the total value of the cash value benefit (CVB) for produce. 7 CFR 246.12(h)(3)(x).
  • Allow the WIC shopper to pay for produce with a form of payment other than eWIC during a transaction when the purchase price exceeds the WIC benefits amount available to the WIC shopper.
  • For items not ringing up as WIC as expected, provide the WIC shopper the option to either a) have non-WIC items voided or b) pay for them with a form of payment other than WIC.
  • Agree that WIC authorization is not a guarantee of sales.
  • Have a current, paid maintenance agreement in place with their system dealer / technical support personnel.
  • Reimburse the Department for claims submitted for payments already made by the program for charges of more than the actual purchase of the supplemental foods. The Department may adjust the purchase price on WIC transactions submitted by the vendor for redemption to ensure compliance with the price limitations applicable to the vendor. When the Department determines the vendor has committed a vendor violation that affects the vendor's payment, the Department will delay payment or establish a claim. The vendor must submit payment for the claim or an adequate justification for the excessive charge to the Department within 30 days of written notification. The department may offset the claim against current and subsequent amounts to be paid to the vendor. In addition to denying payments or assessing a claim, the department may sanction the vendor for vendor overcharges or other errors in accordance with the Illinois WIC sanction schedule. 7 CFR 246.12(h)(3)(viii)(ix).
  • Notify the Department of significant software and/or equipment adjustments or alterations made to the vendor's in-store ECR system (e.g., changes in purchase receipt, voiding, scanning, and payment processing).
  • Maintain an Illinois WIC-certified in-store Electronic Cash Register (ECR) system in a manner necessary to ensure system availability for WIC EBT redemption processing during all hours the vendor is open. The vendor agrees that its ECR system shall transact cash value for authorized fruits and vegetables. Executions of this Vendor Agreement are conditioned on the vendor maintaining its state-certified in-store ECR system that accommodates cash value. After execution of this Agreement, the vendor's failure to maintain a state-certified ECR system on an ongoing basis that ensures system compliance with WIC policies and procedures transacts cash value and/or ensures the accuracy of data shall result in termination of the Vendor agreement.
  • Ensure the certified in-store EBT redemption process allows a reasonable degree of security for protecting the PIN used by WIC shoppers. Only the WIC shopper may enter the PIN to initiate the transaction. The vendor must not enter the PIN for the WIC shopper.
  • Provide necessary receipts for the WIC shopper to accept/approve or reject the WIC transaction. Vendor personnel shall NOT accept/approve or reject/cancel the WIC transactions for the WIC shopper.
  • Scan or manually enter UPC or Price Look-Up (PLU) codes only for WIC-authorized items being redeemed. Never scan codes from UPC/PLU codebooks, reference sheets, or any product not purchased with the eWIC card.
  • Notify the Department and/or the eWIC Contractor of significant changes to the store's ECR system and/or processing of eWIC.
  • Request state re-certification of the vendor's in-store ECR system if the vendor alters/revises the system in any manner that impacts the WIC EBT redemption/claims processing after initial certification is completed. In the event an in-store ECR system is reconfigured or modified by the vendor and/or other parties in such a way that the ECR system no longer exhibits the required system accuracy, integrity, or performance required and under which requirements the ECR system was certified, the Department will not accept a claim file from the system. The vendor is liable for the costs of all recertification events needed to return the ECR system covered by this Agreement to full compliance with Illinois WIC's system requirements. Failure to seek re-certification when the vendor's ECR system is altered/revised shall subject the vendor to financial liabilities and/or disqualification.
  • Comply with Illinois WIC policies for creating and updating the in-store UPC/PLU category/subcategory table of WIC-authorized foods. Map only approved produce items (e.g., new, seasonal, random weight produce) to the appropriate corresponding PLU. Failure to comply shall result in the vendor's financial liability for WIC EBT sales transactions involving invalid or unauthorized UPC/PLU codes and other sanctions as appropriate.
  • Adhere to the International Federation for Produce Standards (IFPS) for PLU codes for WIC EBT claim submission. Any fruit/vegetable UPC/PLU reserved for store use must map back to an International Standard PLU for the same produce.
  • Submit information (e.g., UPC/PLU, description, picture, etc.) of new approved items to Illinois WIC. Send the information, including a picture of the product and nutrition information, to DHS.WICFoods@illinois.gov.
  • Reimburse the Department pro-rata for WIC EBT system costs, if applicable, if the vendor is disqualified, terminated, or closed.
  • Before accepting eWIC cards for purchase, the establishment must have an authorized Illinois WIC Vendor Agreement and operate a certified system implementation.
  • Notify the Department within three (3) days if eWIC transactions become inoperable.
  • Accept and assume payment for equipment, ongoing maintenance, and operational costs. Unless the vendor is identified as needed for participant access to WIC foods and/or pre-approved for the provision of a stand-beside device.