[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR281.3]

[Page 948-949]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 281_ADMINISTRATION OF THE FOOD STAMP PROGRAM ON INDIAN RESERVATIONS
--Table of Contents
 
Sec. 281.3  Determination of failure.

    (a) Request for determination of State government agency failure. 
FNS shall examine State agency adminstration of the Food Stamp Program 
on all or part of a reservation when requested by the ITO, the State 
agency or at FNS' discretion. When FNS determines that a deficiency in a 
State agency operation of the Food Stamp Program on all or part of an 
Indian reservation may be serious enough to warrant a review, FNS shall 
advise the State agency and the ITO in writing of the alleged 
deficiencies and of its plans to conduct the review and document 
deficiencies, if any are found. Subsequent to October 1, 1979 FNS shall 
complete these reviews within 90 days from receipt of an ITO's or State 
agency's request except under unusual circumstances such as the receipt 
of a large number of simultaneous requests.
    (b) Review--(1) Content of the review for State agency performance. 
The review shall be designed to determine whether or not the State 
agency is properly administering the Food Stamp Program on a specific 
reservation. When an agency of State government is administering the 
Program on a reservation, FNS shall as a part of the review consult with 
the ITO about the operation of the Program on the reservation. The 
review should, depending on the nature of the complaint, include but not 
be limited to, an analysis of some or all of the following data:
    (i) The records of State agency consultation with the ITO required 
under Sec. 281.2(a);
    (ii) The estimated percentage of all eligible Indians on the 
reservation who are participating the Program;
    (iii) The nature and extent of violations, if any, of the 30-day and 
other processing standards for Indians;
    (iv) The percentage of errors made in determining eligibility and/or 
the amount of benefits overissued or underissued;
    (v) Compliance with standards for location and hours of 
certification and issuance offices as required in Sec. 272.5;
    (vi) Compliance with bilingual requirements of this regulation, 
where appropriate;
    (vii) Compliance with nondiscrimination requirements of this 
regulation;
    (viii) Compliance with other significant program requirements;
    (ix) Comparison with services provided in all other areas of the 
State; and
    (x) Any other relevant information that becomes available during the 
course of reviews including information received through contacts with 
the Indian tribe.
    (2) Finding of no or of minor deficiencies. If after the review FNS 
determines either that deficiencies do not exist or that only minor 
deficiencies exist, FNS shall issue a report documenting its findings to 
both the State agency and the ITO and shall work closely with the State 
agency to achieve corrective action.
    (c) Formal warning. After the review is completed, if FNS determines 
that major deficiencies exist, a formal warning shall be issued to the 
State, with a copy to the ITO. At a minimum, such warning shall indicate 
the State agency deficiencies and shall detail the basis upon which 
deficiencies were determined. The State shall have 30 days to respond 
with evidence that it is in compliance or to submit a corrective action 
proposal under part 276. If satisfactory compliance is achieved by the 
State agency on deficiencies cited in a formal warning, FNS shall notify 
the State, with a copy to the ITO, that the warning for those 
deficiences is satisfied.

[[Page 949]]

    (d) Determination of failure and sanctions. If at any time after the 
formal warning period, or during or after the corrective action period, 
FNS determines that major deficiencies still exist which the State 
agency has not satisfactorily addressed or is not satisfactorily 
addressing, FNS shall determine State failure and may impose appropriate 
Federal sanctions on the State agency as specified in part 276.
    (e) ITO operations. If FNS has determined State failure and FNS has 
also determined that the ITO is capable of administering a Food Stamp 
Program in accordance with the terms and requirements for participating 
State agencies as established in the Act and regulations, then the ITO 
shall assume adminstration of the Food Stamp Program on the reservation. 
The State agency shall continue to administer the Food Stamp Program on 
the reservation until an effective termination and transition 
arrangement has been completed in accordance with Sec. 281.8.