Section 7CFR278.6

[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR278.6]

[Page 922-930]

TITLE 7--AGRICULTURE

CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

PART 278--PARTICIPATION OF RETAIL FOOD STORES, WHOLESALE FOOD CONCERNS AND INSURED FINANCIAL INSTITUTIONS--Table of Contents

Sec. 278.6 Disqualification of retail food stores and wholesale food concerns, and imposition of civil money penalties in lieu of disqualifications.

(a) Authority to disqualify or subject to a civil money penalty. FNS
may disqualify any authorized retail food store or authorized wholesale
food concern from further participation in the program if the firm fails
to comply with the Food Stamp Act of 1977, as amended, or this part.
Such disqualification shall result from a finding of a violation on the
basis of evidence that may include facts established through on-site
investigations, inconsistent redemption data, evidence obtained through
a transaction report under an electronic benefit transfer system, or the
disqualification of a firm from the

[[Page 923]]

Special Supplemental Nutrition Program for Women, Infants and Children
(WIC), as specified in paragraph (e)(8) of this section.
Disqualification shall be for a period of 6 months to 5 years for the
firm's first sanction; for period of 12 months to 10 years for a firm's
second sanction; and disqualification shall be permanent for a
disqualification based on paragraph (e)(1) of this section. Any firm
which has been disqualified and which wishes to be reinstated at the end
of the period of disqualification, or at any later time, shall file a
new application under Sec. 278.1 so that FNS may determine whether
reauthorization is appropriate. The application may be filed no earlier
than 10 days before the end of the period of disqualification. FNS may,
in lieu of a disqualification, subject a firm to a civil money penalty
of up to an amount specified in Sec. 3.91(b)(3)(i) of this title for
each violation if FNS determines that a disqualification would cause
hardship to participating households. FNS may impose a civil money
penalty of up to an amount specified in Sec. 3.91(b)(3)(ii) of this
title for each violation in lieu of a permanent disqualification for
trafficking, as defined in Sec. 271.2 of this chapter, in accordance
with the provisions of paragraphs (i) and (j) of this section.
(b) Charge letter--(1) General provisions. Any firm considered for
disqualification or imposition of a civil money penalty under paragraph
(a) of this section or a fine as specified under paragraph (l) or (m) of
this section shall have full opportunity to submit to FNS information,
explanation, or evidence concerning any instances of noncompliance
before FNS makes a final administrative determination. The FNS regional
office shall send the firm a letter of charges before making such
determination. The letter shall specify the violations or actions which
FNS believes constitute a basis for disqualification or imposition of a
civil money penalty or fine. The letter shall specify the violations or
actions which FNS believes constitute a basis for disqualification or
imposition of a civil money penalty. The letter shall inform the firm
that it may respond either orally or in writing to the charges contained
in the letter within 10 days of receiving the letter. The firm's
response shall set forth a statement of evidence, information, or
explanation concerning the specified violations or acts. The firm shall
make its response, if any, to the officer in charge of the FNS field
office which has responsibility for the project area in which the firm
is located. In the case of a firm for which action is taken in
accordance with paragraph (e)(8) of this section, the charge letter
shall inform such firm that the disqualification action is not subject
to administrative or judicial review, as specified in paragraph (e)(8)
of this section.
(2) Charge letter for trafficking. (i) The charge letter shall
advise a firm being considered for permanent disqualification based on
evidence of trafficking as defined in Sec. 271.2 that the firm must
notify FNS if the firm desires FNS to consider the sanction of a civil
money penalty in lieu of permanent disqualification. The charge letter
shall also advise the firm that the permanent disqualification shall be
effective immediately upon the date of receipt of the notice of
determination, regardless of whether a request for review is filed in
accordance with Sec. 279.5 of this chapter. If the disqualification is
reversed through administrative or judicial review, the Secretary shall
not be liable for the value of any sales lost during the
disqualification period. Firms that request and are determined eligible
for a civil money penalty in lieu of permanent disqualification for
trafficking may continue to participate in the program pending review
and shall not be required to pay the civil money penalty pending appeal
of the trafficking determination action.
(ii) Firms that request consideration of a civil money penalty in
lieu of a permanent disqualification for trafficking shall have the
opportunity to submit to FNS information and evidence as specified in
Sec. 278.6(i), that establishes the firm's eligibility for a civil money
penalty in lieu of a permanent disqualification in accordance with the
criteria included in Sec. 278.6(i). This information and evidence shall
be submitted within 10 days, as specified in Sec. 278.6(b)(1).
(iii) If a firm fails to request consideration for a civil money
penalty in

[[Page 924]]

lieu of a permanent disqualification for trafficking and submit
documentation and evidence of its eligibility within the 10 days
specified in Sec. 278.6(b)(1), the firm shall not be eligible for such a
penalty.
(c) Review of evidence. The letter of charges, the response, and any
other information available to FNS shall be reviewed and considered by
the appropriate FNS regional office, which shall then issue the
determination.In the case of a firm subject to permanent
disqualification under paragraph (e)(1) of this section, the
determination shall inform such a firm that action to permanently
disqualify the firm shall be effective immediately upon the date of
receipt of the notice of determination from FNS, regardless of whether a
request for review is filed in accordance with Sec. 279.5 of this
chapter. If the disqualification is reversed through administrative or
judicial review, the Secretary shall not be liable for the value of any
sales lost during the disqualification period. Firms that request and
are determined eligible to a civil money penalty in lieu of permanent
disqualification for trafficking may continue to participate in the
program pending review and shall not be required to pay the civil money
penalty pending appeal of the trafficking determination action. In the
case of a firm for which action is taken in accordance with paragraph
(e)(8) of this section, the determination notice shall inform such firm
that the disqualification action is not subject to administrative or
judicial review, as specified in paragraph (e)(8) of this section.
(d) Basis for determination. The FNS regional office making a
disqualification or penalty determination shall consider: (1) The nature
and scope of the violations committed by personnel of the firm, (2) any
prior action taken by FNS to warn the firm about the possibility that
violations are occurring, and (3) any other evidence that shows the
firm's intent to violate the regulations.
(e) Penalties. FNS shall take action as follows against any firm
determined to have violated the Act or regulations. For the purposes of
assigning a period of disqualification, a warning letter shall not be
considered to be a sanction. A civil money penalty and a
disqualification shall be considered sanctions for such purposes. The
FNS regional office shall:
(1) Disqualify a firm permanently if:
(i) Personnel of the firm have trafficked as defined in Sec. 271.2;
or
(ii) Violations such as, but not limited to, the sale of ineligible
items occurred and the firm had twice before been sanctioned.
(iii) It is determined that personnel of the firm knowingly
submitted information on the application that contains false information
of a substantive nature that could affect the eligibility of the firm
for authorization in the program, such as, but not limited to,
information related to:
(A) Eligibility requirements under Sec. 278.1(b), (c), (d), (e),
(f), (g) and (h);
(B) Staple food stock;
(C) Annual gross sales for firms seeking to qualify for
authorization under Criterion B as specified in the Food Stamp Act of
1977, as amended;
(D) Annual staple food sales;
(E) Total annual gross retail food sales for firms seeking
authorization as co-located wholesale/retail firms;
(F) Ownership of the firm;
(G) Employer Identification Numbers and Social Security Numbers;
(H) Food Stamp Program history, business practices, business ethics,
WIC disqualification or authorization status, when the store did (or
will) open for business under the current ownership, business, health or
other licenses, and whether or not the firm is a retail and wholesale
firm operating at the same location; or
(I) Any other information of a substantive nature that could affect
the eligibility of a firm.
(2) Disqualify the firm for 5 years if it is to be the firm's first
sanction, the firm had been previously advised of the possibility that
violations were occurring and of possible consequences of violating the
regulations, and the evidence shows that:
(i) It is the firm's practice to sell expensive or conspicuous
nonfood items, cartons of cigarettes, or alcoholic beverages in exchange
for food coupons; or
(ii) The firm's coupon redemptions for a specified period of time
exceed its

[[Page 925]]

food sales for the same period of time; or
(iii) A wholesale food concern's redemptions of coupons for a
specified period of time exceed the redemptions of all the specified
authorized retail food stores, nonprofit cooperative food-purchasing
ventures, group living arrangements, drug addict and alcoholic treatment
programs, homeless meal providers, and shelters for battered women and
children which the wholesale food concern was authorized to serve during
that time; or
(iv) A wholesale food concern's stated redemptions of coupons for a
particular retail food store, nonprofit cooperative food-purchasing
venture, group living arrangement, drug addict and alcoholic treatment
program, homeless meal providers, or shelters for battered women and
children exceeded the actual amount of coupons which that firm or
organization redeemed through the wholesaler; or
(v) Personnel of the firm knowingly accepted coupons from an
unauthorized firm or an individual known not to be legally entitled to
possess coupons.
(3) Disqualify the firm for 3 years if it is to be the first
sanction for the firm and the evidence shows that:
(i) It is the firm's practice to commit violations such as the sale
of common nonfood items in amounts normally found in a shopping basket
and the firm was previously advised of the possibility that violations
were occurring and of the possible consequences of violating the
regulations; or
(ii) Any of the situations described in paragraph (e)(2) of this
section occurred and FNS had not previously advised the firm of the
possibility that violations were occurring and of the possible
consequences of violating the regulations; or
(iii) The firm is an authorized communal dining facility, drug
addiction or alcoholic treatment and rehabilitation program, group
living arrangement, homeless meal provider, meal delivery service, or
shelter for battered women and children and it is the firm's practice to
sell meals in exchange for food coupons to persons not eligible to
purchase meals with food coupons and the firm has been previously
advised of the possibility that violations were occurring and of the
possible consequences of violating the regulations; or
(iv) A wholesale food concern accepted coupons from an authorized
firm which it was not authorized to serve and the wholesale food concern
had been previously advised of the possibility that violations were
occurring and of possible consequences of violating the regulations; or
(v) The firm is an authorized retail food store and personnel of the
firm have engaged in food coupon transactions with other authorized
retail stores, not including treatment programs, group living
arrangements, homeless meal providers, or shelters for battered women
and children, and the firm had been previously advised of the
possibility that violations were occurring and of the possible
consequences of violating the regulations.
(vi) Personnel of the firm knowingly submitted information on the
application that contained false information of a substantive nature
related to the ability of FNS to monitor compliance of the firm with FSP
requirements, such as, but not limited to, information related to:
(A) Annual eligible retail food sales;
(B) Store location and store address and mailing address;
(C) Financial institution information; or
(D) Store name, type of ownership, number of cash registers, and
non-food inventory and services.
(4) Disqualify the firm for 1 year if it is to be the first sanction
for the firm and the ownership or management personnel of the firm have
committed violations such as the sale of common nonfood items in amounts
normally found in a shopping basket, and FNS had not previously advised
the firm of the possibility that violations were occurring and of the
possible consequences of violating the regulations.
(5) Disqualify the firm for 6 months if it is to be the first
sanction for the firm and the evidence shows that personnel of the firm
have committed violations such as but not limited to the sale of common
nonfood items due to carelessness or poor supervision by the firm's
ownership or management.

[[Page 926]]

(6) Double the appropriate period of disqualification prescribed in
paragraphs (e) (2) through (5) of this section as warranted by the
evidence of violations if the same firm has once before been assigned a
sanction.
(7) Send the firm a warning letter if violations are too limited to
warrant a disqualification.
(8) FNS shall disqualify from the Food Stamp Program any firm which
is disqualified from the WIC Program:
(i) Based in whole or in part on any act which constitutes a
violation of that program's regulation and which is shown to constitute
a misdemeanor or felony violation of law, or for any of the following
specific program violations:
(A) A pattern of claiming reimbursement for the sale of an amount of
a specific food item which exceeds the store's documented inventory of
that food item for a specified period of time;
(B) Exchanging WIC food instruments for cash, credit or
consideration other than eligible food; or the exchange of firearms,
ammunition, explosives or controlled substances, as defined in section
802 of title 21 of the United States Code, for food instruments;
(C) A pattern of receiving, transacting and/or redeeming WIC food
instruments outside of authorized channels;
(D) A pattern of exchanging non-food items for a WIC food
instrument;
(E) A pattern of charging WIC customers more for food than non-WIC
customers or charging WIC customers more than the current shelf price;
or
(F) A pattern of charging for food items not received by the WIC
customer or for foods provided in excess of those listed on the food
instrument.
(ii) FNS shall not disqualify a firm from the Food Stamp Program on
the basis of a WIC disqualification unless:
(A) Prior to the time prescribed for securing administrative review
of the WIC disqualification action, the firm was provided individual and
specific notice that it could be disqualified from the Food Stamp
Program based on the WIC violations committed by the firm;
(B) A signed and dated copy of such notice is provided to FNS by the
WIC administering agency; and
(C) A determination is made in accordance with paragraph (a) of this
section that such action will not cause a hardship for participating
Food Stamp households.
(iii) Such a Food Stamp disqualification:
(A) Shall be for the same length of time as the WIC
disqualification;
(B) May begin at a later date than the WIC disqualification; and
(C) Shall not be subject to administrative or judicial review under
the Food Stamp Program.
(f) Criteria for civil money penalties for hardship and transfer of
ownership. (1) FNS may impose a civil money penalty as a sanction in
lieu of disqualification when the firm subject to a disqualification is
selling a substantial variety of staple food items, and the firm's
disqualification would cause hardship to food stamp households because
there is no other authorized retail food store in the area selling as
large a variety of staple food items at comparable prices. FNS may
disqualify a store which meets the criteria for a civil money penalty if
the store had previously been assigned a sanction. A civil money penalty
for hardship to food stamp households may not be imposed in lieu of a
permanent disqualification.
(2) In the event any retail food store or wholesale food concern
which has been disqualified is sold or the ownership thereof is
otherwise transferred to a purchaser or transferee, the person or other
legal entity who sells or otherwise transfers ownership of the retail
food store or wholesale food concern shall be subjected to and liable
for a civil money penalty in an amount to reflect that portion of the
disqualification period that has not expired, to be calculated using the
method found at Sec. 278.6(g). If the retail food store or wholesale
food concern has been permanently disqualified, the civil money penalty
shall be double the penalty for a ten year disqualification period. The
disqualification shall continue in effect at the disqualified location
for the person or other legal entity who transfers ownership of the
retail food store or wholesale food concern notwithstanding the
imposition of a civil money penalty under this paragraph.

[[Page 927]]

(3) At any time after a civil money penalty imposed under paragraph
(f) (2) of this section has become final under the provisions of part
279, the Food and Consumer Service may request the Attorney General
institute a civil action to collect the penalty from the person or
persons subject to the penalty in a district court of the United States
for any district in which such person or persons are found, reside, or
transact business.
(4) A bona fide transferee of a retail food store shall not be
required to pay a civil money penalty imposed on the firm prior to its
transfer. A buyer or transferee (other than a bona fide buyer or
transferee) may not be authorized to accept or redeem coupons and may
not accept or redeem coupons until the Secretary receives full payment
of any penalty imposed on such store or concern.
(g) Amount of civil money penalties for hardship and transfer of
ownership. FNS shall determine the amount of the civil money penalty as
follows:
(1) Determine the firm's average monthly redemptions of coupons for
the 12-month period ending with the month immediately preceding that
month during which the firm was charged with violations.
(2) Multiply the average monthly redemption figure by 10 percent.
(3) Multiply the product arrived at in paragraph (g)(2) by the
number of months for which the firm would have been disqualified under
paragraph (e) of this section. The civil money penalty may not exceed an
amount specified in Sec. 3.91(b)(3)(i) of this title for each violation.
(h) Notifying the firm of civil money penalties for hardship and
transfer of ownership. A firm has 15 days from the date the FNS regional
office notifies the firm in writing in which to pay the civil money
penalty, or to notify the regional office in writing of its intent to
pay in installments as specified by the regional office. The firm must
present to FNS a collateral bond as specified in Sec. 278.1(b)(4),
within the same 15-day period. The civil money penalty must be paid in
full by the end of the period for which the firm would have been
disqualified. FNS shall:
(1) Disqualify the firm for the period determined to be appropriate
under paragraph (e) of this section if the firm refuses to pay any of
the civil money penalty;
(2) Disqualify the firm for a period corresponding to the unpaid
part of the civil money penalty if the firm does not pay the civil money
penalty in full or in installments as specified by the FNS regional
office; or
(3) Disqualify the firm for the prescribed period if the firm does
not present a collateral bond within the required 15 days. Any payment
on a civil money penalty which have been received by FNS shall be
returned to the firm. If the firm presents the required bond during the
disqualification period, the civil money penalty may be reinstated for
the duration of the disqualification period.
(i) Criteria for eligibility for a civil money penalty in lieu of
permanent disqualification for trafficking. FNS may impose a civil money
penalty in lieu of a permanent disqualification for trafficking as
defined in Sec. 271.2 if the firm timely submits to FNS substantial
evidence which demonstrates that the firm had established and
implemented an effective compliance policy and program to prevent
violations of the Program. Firms assessed a CMP under this paragraph
shall be subject to the applicable penalties included in Secs. 278.6(e)
(2) through (6) for the sale of ineligible items. Only those firms for
which a permanent disqualification for trafficking took effect on or
after October 1, 1988, are eligible for a civil money penalty in lieu of
permanent disqualification for trafficking, except that firms that have
been disqualified but are awaiting a judicial review decision are
eligible for a civil money penalty in lieu of a permanent
disqualification. In determining the minimum standards of eligibility of
a firm for a civil money penalty in lieu of a permanent disqualification
for trafficking, the firm shall, at a minimum, establish by substantial
evidence its fulfillment of each of the following criteria:

Criterion 1. The firm shall have developed an effective compliance
policy as specified in Sec. 278.6(i)(1); and
Criterion 2. The firm shall establish that both its compliance
policy and program were

[[Page 928]]

in operation at the location where the violation(s) occurred prior to
the occurrence of violations cited in the charge letter sent to the
firm; and
Criterion 3. The firm had developed and instituted an effective
personnel training program as specified in Sec. 278.6(i)(2); and
Criterion 4. Firm ownership was not aware of, did not approve, did
not benefit from, or was not in any way involved in the conduct or
approval of trafficking violations; or it is only the first occasion in
which a member of firm management was aware of, approved, benefited
from, or was involved in the conduct of any trafficking violations by
the firm. Upon the second occasion of trafficking involvement by any
member of firm management uncovered during a subsequent investigation, a
firm shall not be eligible for a civil money penalty in lieu of
permanent disqualification. Notwithstanding the above provision, if
trafficking violations consisted of the sale of firearms, ammunition,
explosives or controlled substances, as defined in 21 U.S.C. Sec. 802,
and such trafficking was conducted by the ownership or management of the
firm, the firm shall not be eligible for a civil money penalty in lieu
of permanent disqualification. For purposes of this section, a person is
considered to be part of firm management if that individual has
substantial supervisory responsibilities with regard to directing the
activities and work assignments of store employees. Such supervisory
responsibilities shall include the authority to hire employees for the
store or to terminate the employment of individuals working for the
store.

(1) Compliance policy standards. As specified in Criterion 1 above,
in determining whether a firm has established an effective policy to
prevent violations, FNS shall consider written and dated statements of
firm policy which reflect a commitment to ensure that the firm is
operated in a manner consistent with this part 278 of current FSP
regulations and current FSP policy on the proper acceptance and handling
of food coupons. As required by Criterion 2, such policy statements
shall be considered only if documentation is supplied which establishes
that the policy statements were provided to the violating employee(s)
prior to the commission of the violation. In addition, in evaluating the
effectiveness of the firm's policy and program to ensure FSP compliance
and to prevent FSP violations, FNS may consider the following:
(i) Documentation reflecting the development and/or operation of a
policy to terminate the employment of any firm employee found violating
FSP regulations;
(ii) Documentation of the development and/or continued operation of
firm policy and procedures resulting in appropriate corrective action
following complaints of FSP violations or irregularities committed by
firm personnel;
(iii) Documentation of the development and/or continued operation of
procedures for internal review of firm employees' compliance with FSP
regulations;
(iv) The nature and scope of the violations charged against the
firm;
(v) Any record of previous firm violations under the same ownership;
and
(vi) Any other information the firm may present to FNS for
consideration.
(2) Compliance training program standards. As prescribed in
Criterion 3 above, the firm shall have developed and implemented an
effective training program for all managers and employees on the
acceptance and handling of food coupons in accordance with this part
278. A firm which seeks a civil money penalty in lieu of a permanent
disqualification shall document its training activity by submitting to
FNS its dated training curricula and records of dates training sessions
were conducted; a record of dates of employment of firm personnel; and
contemporaneous documentation of the participation of the violating
employee(s) in initial and any follow-up training held prior to the
violation(s). FNS shall consider a training program effective if it
meets or is otherwise equivalent to the following standards:
(i) Training for all managers and employees whose work brings them
into contact with food stamps or who are assigned to a location where
food stamps are accepted, handled or processed shall be conducted within
one month of the institution of the compliance policy under Criterion 1
above. Employees hired subsequent to the institution of the compliance
policy shall be trained within one month of employment. All employees
shall be trained periodically thereafter;
(ii) Training shall be designed to establish a level of competence
that assures compliance with Program requirements as included in this
part 278;

[[Page 929]]

(iii) Written materials, which may include FNS publications and
program regulations that are available to all authorized firms, are used
in the training program. Training materials shall clearly state that the
following acts are prohibited and are in violation of the Food Stamp Act
and regulations: the exchange of food coupons, ATP cards or other
program access devices for cash; and, in exchange for coupons, the sale
of firearms, ammunition, explosives or controlled substances, as the
term is defined in section 802 of title 21, United States Code.
(j) Amount of civil money penalty in lieu of permanent
disqualification for trafficking. A civil money penalty assessed in
accordance with Sec. 278.6(i) shall not exceed $20,000 for each
violation and shall not exceed $40,000 for all violations occurring
during a single investigation. FNS shall determine the amount of the
civil money penalty as follows:
(1) Determine the firm's average monthly redemptions for the 12-
month period ending with the month immediately preceding the month
during which the firm was charged with violations;
(2) Multiply the average monthly redemption figure by 10 percent;
(3) For the first trafficking offense by a firm, multiply the
product obtained in Sec. 278.6(j)(2) by 60 if the largest amount of food
coupons, ATP cards, or other benefit instruments involved in a single
trafficking transaction had a face value of $99 or less. If the face
value of coupons, ATP cards or other benefit instruments involved in the
largest single trafficking transaction was $100 or more, the amount of
the product obtained in this paragraph shall be doubled;
(4) For a second trafficking offense by a firm, multiply the product
obtained in Sec. 278.6(j)(2) by 120 if the largest amount of food
coupons, ATP cards, or other benefit instruments involved in a single
trafficking transaction had a face value of $99 or less and the same
firm has once before been sanctioned for trafficking in food coupons,
ATP cards, or other benefit instruments. If the face value of food
coupons, ATP cards, or other benefit instruments involved in the largest
single trafficking transaction was $100 or more, the amount of the
product obtained in this paragraph shall be doubled; and
(5) If a third trafficking offense is committed by the firm, the
firm shall not be eligible for a civil money penalty in lieu of
disqualification.
(k) Payment of civil money penalty in lieu of a permanent
disqualification for trafficking. Payment of the full amount of the
civil money penalty in lieu of permanent disqualification for
trafficking shall be made within 30 days of the date the final
determination was received by the firm. If payment is not made within
the prescribed period, the right to the civil money penalty in lieu of a
permanent disqualification is forfeited and disqualification shall
become effective immediately.
(l) Fines for the acceptance of loose coupons. FNS may impose a fine
against any retail food store or wholesale food concern that accepts
coupons that are not accompanied by the corresponding book cover, other
than the denomination of coupons used for making change as specified in
Sec. 278.2(d) or coupons accepted from homeless meal providers as
specified in Sec. 278.2(c). The fine to be assessed against a firm found
to be accepting loose coupons shall be $500 per investigation plus an
amount equal to double the face value of each loose coupon accepted, and
may be assessed and collected in addition to any fiscal claim
established by FNS. The fine shall be paid in full within 30 days of the
firm's receipt of FNS' notification to pay the fine. The Attorney
General of the United States may institute judicial action in any court
of competent jurisdiction against the store or concern to collect the
fine. FNS may withdraw the authorization of the store, as well as other
authorized locations of a multi-unit firm which are under the same
ownership, for failure to pay such a fine as specified under
Sec. 278.1(k). FNS may deny the authorization of any firm that has
failed to pay such fines as specified under Sec. 278.1(j).
(m) Fines for unauthorized third parties that accept food stamps.
FNS may impose a fine against any individual, sole proprietorship,
partnership, corporation or other legal entity not approved by FNS to
accept and redeem food coupons for any violation of the provisions

[[Page 930]]

of the Food Stamp Act or the program regulations, including violations
involving the acceptance of coupons. The fine shall be $1,000 for each
violation plus an amount equal to three times the face value of the
illegally accepted food coupons. The fine shall be paid in full within
30 days of the individual's or legal entity's receipt of FNS'
notification to pay the fine. The Attorney General of the United States
may institute judicial action in any court of competent jurisdiction
against the person to collect the fine. FNS may withdraw the
authorization of any firm that is under the same ownership as an
unauthorized firm that has failed to pay such a fine, as specified under
Sec. 278.1(k). FNS may deny authorization to any firm that has failed to
pay such a fine, as specified under Sec. 278.1(j).
(n) Review of determination. The determination of FNS shall be final
and not subject to further administrative or judicial review unless a
written request for review is filed within the period stated in
Sec. 279.5 of this chapter.
Notwithstanding the above, any FNS determination made on the basis
of paragraph (e)(8) of this section shall not be subject to further
administrative or judicial review.
(o) Delivery of notice. The delivery by certified mail or personal
service of any notice required of FNS by this part will constitute
notice to the addressee of its contents.

[Amdt. 136, 43 FR 43274, Sept. 22, 1978, as amended by Amdt. 236, 47 FR
56471, Dec. 17, 1982; Amdt. 236, 49 FR 22057, May 25, 1984; Amdt. 258,
49 FR 28393, July 12, 1984; Amdt. 286, 52 FR 7558, Mar. 11, 1987; Amdt.
280, 52 FR 13222, Apr. 22, 1987; Amdt. 311, 54 FR 18645, May 2, 1989;
Amdt. 323, 55 FR 31812, Aug. 6, 1990; Amdt. 344, 56 FR 54778, Oct. 23,
1991; Amdt. 334, 57 FR 3912, Feb. 3, 1992; Amdt. 354, 59 FR 27434, May
27, 1994; 62 FR 40928, July 31, 1997; 64 FR 23172, Apr. 30, 1999; Amdt.
391, 66 FR 2800, Jan. 12, 2001]