HOUSE BILL No. 5764

 

January 21, 2010, Introduced by Reps. Switalski, Liss, Cushingberry, Tlaib and Haugh and referred to the Committee on Urban Policy.

 

     A bill to amend 1939 PA 280, entitled

 

"The social welfare act,"

 

(MCL 400.1 to 400.119b) by adding section 14k.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 14k. (1) A merchant or vendor who has been approved by

 

the United States department of agriculture to participate in the

 

food administration program shall be granted a contract as a

 

special supplemental nutrition program for women, infants, and

 

children (WIC) provider if the merchant or vendor meets all of the

 

WIC pricing requirements.

 

     (2) If the department determines that a merchant or vendor has

 

overcharged the state for a food or nutrition education product

 

under the WIC program, the merchant or vendor shall be subject to


 

the following penalties:

 

     (a) For the first overcharge, a fine of not more than $500.00

 

and an opportunity to correct the overcharge.

 

     (b) For the second instance of overcharge, a fine of not more

 

than $1,000.00 and an opportunity to correct the overcharge.

 

     (c) For the third instance of overcharge, a fine of not more

 

than $2,000.00, revocation of the WIC contract, and revocation of

 

authorization to participate in the food administration program.