(a) A local agency shall be considered in violation of the WIC program if it:

1. (1) fails to submit to the department, obtain approval for, or fully implement a nutrition education plan;
2. (2) diverts money budgeted for administrative expenses to nonbudgeted administrative items;
3. (3) fails to monitor food vendors under contract at a frequency prescribed by the department;
4. (4) fails to submit reports as required by the department;
5. (5) fails to contract with a food vendor when directed to do so by the department; or
6. (6) otherwise does not comply with the terms of its agreement with the department.

(b) When a local agency is found in violation of the WIC program, it may be subject to one or more of the following penalties:

1. (1) reduction of reimbursement by 1/6 of the administrative budget for failure to fulfill its contractual responsibilities for nutrition education;
2. (2) reduction of reimbursement for costs of activities which were not authorized under the terms of the agreement with the State agency;
3. (3) a civil penalty of up to $1,000 per violation, pursuant to section 12 of the Public Health Law;
4. (4) termination of the agreement with the department; or
5. (5) any other penalty prescribed by the Public Health Law.