3701-42-11 Farmer contract.

(A) An applicant is not authorized to act as a WIC farmer without a valid contract executed pursuant to paragraph (A) of rule 3701-42-10 of the Administrative Code. Farmers whose contract has expired and applicants who have not yet received authorization from the director shall not accept fruit and vegetable vouchers from participants or alternate shoppers. The department shall not reimburse a farmer for transactions that occurred after the contract expires or before a contract becomes effective.

(B) A farmer contract shall conform with the provisions of 7 C.F.R. 246.12(v) (in effect on July 1, 2010) and the applicable provisions of this chapter of the Administrative Code. The contract shall list all sites in which the farmer is authorized to accept vouchers.

(C) The director may amend the contract at any time to include or incorporate additional provisions that are required because of changes in federal or state statute, regulation, or rule or to improve the administration, operation, or evaluation of the program. The director shall notify farmers of any amendment at least thirty days prior to the effective date. A farmer may accept the amendment or may terminate the contract voluntarily as provided in paragraph (F) of this rule. A farmer that does not voluntarily terminate the amended contract after receiving notification under this paragraph is deemed to have accepted the amendment. A farmer may not appeal an amendment to the contract.

(D) A contract is not assignable or transferable. A farmer shall not sell, assign, or transfer in any manner his or her rights under the contract. A sale, assignment, or transfer of a contract shall render the contract void.

(E) A farmer or farmer's authorized representative, which may include the purchaser or operator of the farmer, shall notify the department in writing, prior to any scheduled change of ownership or operation, including, but not limited to a sale, lease, transfer, bankruptcy, dissolution, or cessation of business, or within thirty days after such event, if not scheduled. A "change of ownership or operation" also includes the death of a sole proprietor or the transfer of a controlling interest in, or voluntary or involuntary dissolution of, a farmer that is a corporation. The farmer shall cease accepting vouchers immediately upon the effective date of a change of ownership or operation unless otherwise authorized by the director in writing. Upon notice or other information that an authorized site is the subject of a change of ownership or operation, the director shall terminate the farmer contract and shall not reimburse farmer for transactions that occurred on or after the date of change of ownership or operation.

(F) A farmer may voluntarily terminate the contract for any reason. The farmer shall notify the department in writing, at least fifteen days prior to the effective date of termination.

(1) If the farmer owes the department any outstanding payment, he or she shall pay the amount due in full before the effective date of termination. The department may obtain the amount due by withholding current or future payments that otherwise would be due to the farmer.

(2) Voluntary termination by a farmer shall not affect any action by the director to disqualify or otherwise sanction the farmer pursuant to rule 3701-42-14 of the Administrative Code, or to deny authorization pursuant to rule 3701-42-10 of the Administrative Code.

(G) The director may terminate the contract if state or federal funds are not appropriated or otherwise become unavailable. The director shall notify the farmer in writing, by certified mail, return receipt requested, prior to the effective date of the termination.

(H) The director may terminate a contract if he or she determines that the farmer provided false information in connection with an application for authorization.

Effective: 04/01/2011
R.C. 119.032 review dates: 10/18/2010 and 04/01/2016
Promulgated Under: 119.03
Statutory Authority: 3701.132
Rule Amplifies: 3701.132
Prior Effective Dates: 10/1/2009