The purpose of this memorandum is to provide guidance on the vendor-related WIC provision reflected in PL 109-97, which provides WIC funding for FY 2006.

This proposed rule would amend the regulations governing the WIC program to clarify issues that have arisen subsequent to the publication of the WIC Food Delivery Systems Final Rule on Dec. 29, 2000, and to strengthen further the requirements for state vendor management and infant formula cost-containment systems.

This policy memorandum clarifies and updates current policy on price adjustments, vendor, participant, and local agency collections, fines, civil money penalties, and program income to reflect amendments to WIC program legislation and regulations since the issuance of WIC Policy Memorandum #96-3.