(a) A person who applies for or is receiving WIC benefits shall be considered in violation of the WIC program if that person or any individual acting on his or her behalf:

1. (1) knowingly and deliberately misrepresents circumstances to obtain benefits;
2. (2) sells supplemental foods or food instruments to, or exchanges them with, other individuals or entities;
3. (3) receives from food vendors unauthorized food, cash or credit towards purchase of unauthorized food or other items of value in lieu of authorized supplemental foods;
4. (4) physically or verbally abuses or threatens physical abuse of State, local agency, food vendor staff or other participants;
5. (5) uses WIC food instruments outside of valid dates;
6. (6) participates in the WIC program with more than one local agency;
7. (7) alters the food package quantity or period of issue on the check;
8. (8) falsely reports food instruments lost or stolen;
9. (9) steals WIC food instruments;
10. (10) redeems WIC food instruments at non-WIC food vendors; or
11. (11) countersigns the check before the food price is entered on the check.

(b) When a participant or an individual acting on the participant's behalf is found in violation of the WIC program, the department or local agency shall determine what penalty, if any shall be imposed, depending on the severity of the violation. One or more of the following penalties may be imposed:

1. (1) a warning to discontinue the violation;
2. (2) disqualification for up to three months;
3. (3) a requirement to reimburse the State agency for the amount of food instruments which were used as described in subdivision (a) of this section; and/or
4. (4) other sanctions as may be defined by the department.