[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: 7CFR283.4]

[Page 945-946]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 283--APPEALS OF QUALITY CONTROL (``QC'') CLAIMS--Table of Contents
 
           Subpart B--Appeals of QC Claims of $50,000 or More
 
Sec. 283.4  Filing appeals for QC claims of $50,000 or more.


    (a) Time. A State agency may appeal the bill for collection from FNS 
for a QC claim of $50,000 or more for a food stamp QC error rate in 
excess of the tolerance level. A State agency shall file a written 
notice of appeal, in accordance with this subpart, within 10 days of 
receipt of the bill for collection from FNS for a QC claim of $50,000 or 
more. The State agency may request an extension to the 10-day filing 
requirement in accordance with Sec. 283.22(f). FNS shall issue the bill 
for collection by certified mail or personal service.
    (b) Exhaustion of administrative remedies. The State agency must 
appeal the bill for collection to the ALJ, pursuant to this subpart, and 
exhaust the

[[Page 946]]

available administrative remedies before filing suit in the Federal 
District Courts.
    (c) Filing. The notice of appeal shall be filed with the Hearing 
Clerk in accordance with Sec. 283.22(b).
    (d) Content of the notice. (1) A notice of appeal, in order to be 
considered acceptable, must contain the following information:
    (i) A brief and clear statement that it is an appeal from a QC claim 
of $50,000 or more identifying the period the claim covers, the date and 
amount of the bill for collection, and the date of receipt of the bill 
for collection;
    (ii) Identification of the State agency as the appellant and FNS as 
the appellee;
    (iii) A statement that the notice of appeal is filed pursuant to 
section 14(a) of the Food Stamp Act;
    (iv) A copy of the bill for collection which constitutes the basis 
for the filing of the notice of appeal shall be attached to the notice.
    (2) Failure to file an acceptable notice of appeal may result in a 
challenge by FNS to the notice, dismissal of the notice by the ALJ and a 
waiver of the opportunity for further appeal or review by the Judicial 
Officer unless the State agency pursues the options as discussed in 
Secs. 283.17(d) and 283.20.
    (e) Receipt of notice of appeal and assignment of docket number. 
Upon receipt of a notice of appeal, the Hearing Clerk shall assign the 
appeal a docket number. The Hearing Clerk shall:
    (1) Send the State agency a letter which shall include the following 
information:
    (i) Advice that the notice of appeal has been received and the date 
of receipt;
    (ii) The docket number assigned to the appeal and instructions that 
all future communications related to the appeal shall reference the 
docket number, and;
    (iii) Advice that the State agency must file and serve its appeal 
petition, as set forth in Sec. 283.22, not later than 60 days after 
receiving a notice of the claim. Failure to file a timely appeal 
petition may result in a waiver of further appeal rights.
    (2) Send FNS a copy of the notice of appeal and a copy of the letter 
to the State agency.
    (f) Stay of collection. The filing of a timely notice of appeal 
shall automatically stay the action of FNS to collect the QC claim 
asserted against the State agency until a decision is reached on the 
acceptability of the appeal, and in the case of an acceptable appeal, 
until a final administrative determination has been issued. However, 
interest will accrue on the outstanding claim amount during the stay as 
provided in section 13(a)(1) of the Food Stamp Act of 1977, as amended 
(7 U.S.C. 2022(a)(1)).
    (g) Content of the appeal petition. The appeal petition shall 
include:
    (1) A brief statement of the allegations of fact and provisions of 
law that constitute the basis for the appeal including a statement as to 
whether a factual basis for good cause relief exists;
    (2) The nature of the relief sought, and;
    (3) A request for an oral hearing, if desired by the State agency. 
Failure to request an oral hearing will result in a forfeiture of the 
opportunity for such a hearing, except as provided in Sec. 283.15(a).
    (h) FNS answer. Upon service of the State agency appeal petition, 
FNS shall:
    (1) File an answer, in accordance with Sec. 283.6, not later than 60 
days after the State agency submits its appeal petition and;
    (2) Advise the Hearing Clerk if FNS wishes to have an oral hearing.
    (i) Oral hearing not requested. If no oral hearing has been 
requested, the appeal shall proceed in accordance with the procedures 
set forth under subpart C of this part.