[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR274.8]



[Page 811]

 

                          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).