[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR274.8]

[Page 797]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 274_ISSUANCE AND USE OF COUPONS--Table of Contents
 
Sec.  274.8  Responsibilities of coupon issuers, and bulk storage and 
claims collection points.

    (a) Receipt of coupons. Coupon issuers, and bulk storage and claims 
collection points shall promptly verify and acknowledge, in writing, the 
content of each coupon shipment or coupon transfer delivered to them and 
shall be responsible for the custody, care, control, and storage of 
coupons.
    (b) Inventory levels. Coupon issuers and bulk storage points shall 
maintain a proper level of coupon inventory not in excess of reasonable 
needs, taking into consideration the ease and feasibility of resupplying 
such coupon inventories. Such inventory levels should not exceed the 
six-month supply provided for in Sec.  274.7(a).
    (c) Monthly reporting. Coupon issuers, and bulk storage and claims 
collection points shall report monthly to FNS, through the State agency, 
using Form FNS-250, as provided in Sec.  274.4.
    (d) Supporting documentation. Coupon issuers and bulk storage points 
shall submit to the State agency supporting documentation which will 
allow verification of the monthly report as provided in Sec.  274.4. At 
a minimum, such documentation shall include documents supporting coupon 
shipments, transfers, and issuances. In those States using issuance 
systems with authorization documents, coupon issuers shall submit 
transacted authorization documents batched according to each day's 
activity, in accordance with the schedule prescribed by the State agency 
but, in any case, not less often than monthly.
    (e) Handling of improperly manufactured or mutilated coupons. Coupon 
issuers, and bulk storage and claims collection points shall cancel 
improperly manufactured or mutilated coupons or coupon books by writing 
or stamping ``canceled'' across the face of the coupon(s) and coupon 
book(s). Depending upon State agency policy, the coupon issuer or bulk 
storage point shall forward the coupons with the appropriate 
documentation (determined by the State agency) to the State agency, or 
hold the coupons in secure storage, pending examination and destruction 
by the State agency at the coupon issuer, bulk storage point or claims 
collection location. The documentation is not required if the State 
agency inspects the coupons at the issuance, storage or collection 
point. Additional requirements pertaining to the handling of these types 
of coupons by the State agency are provided in Sec.  274.7(e).