[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: 7CFR276.1]



[Page 877]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 276_STATE AGENCY LIABILITIES AND FEDERAL SANCTIONS--Table of Contents

 

Sec. 276.1  Responsibilities and rights.









Sec.

276.1 Responsibilities and rights.

276.2 State agency liabilities.

276.3 Negligence or fraud.

276.4 Suspension/disallowance of administrative funds.

276.5 Injunctive relief.

276.6 Good cause.

276.7 Administrative review process.



    Authority: 7 U.S.C. 2011-2036.



    Editorial Note: OMB control numbers relating to this part 276 are 

contained in Sec. 271.8.





    (a) Responsibilities. (1) State agencies shall be responsible for 

establishing and maintaining secure control over coupons and cash for 

which the regulations designate them accountable. Except as otherwise 

provided in these regulations, any shortages or losses of coupons and 

cash shall strictly be a State agency liability and the State agency 

shall pay to FNS, upon demand, the amount of the lost or stolen coupons 

or cash, regardless of the circumstances.

    (2) State agencies shall be responsible for preventing losses or 

shortages of Federal funds in the issuance of benefits to households 

participating in the Program. FNS shall strictly hold State agencies 

liable for all losses, thefts and unaccounted shortages that occur 

during issuance, unless otherwise specified. Issuance functions begin 

with the State agency's creation of a record-for-issuance to generate 

each month's issuances from the master issuance file. Shortages or 

losses which result from any functions that occur prior to the creation 

of the record-for-issuance are subject to either paragraph (a)(3) of 

this section or subpart C--Quality Control (QC) Reviews, of part 275--

Performance Reporting System.

    (3) State agencies shall be responsible for preventing losses of 

Federal funds in the certification of households for participation in 

the Program. If FNS makes a determination that there has been negligence 

or fraud on the part of a State agency in the certification of 

households for participation in the Program, FNS is authorized to bill 

the State agency for an amount equal to the amount of coupons issued as 

a result of the negligence or fraud.

    (4) State agencies shall be responsible for efficiently and 

effectively administering the Program by complying with the provisions 

of the Act, the regulations issued pursuant to the Act, and the FNS-

approved State Plan of Operation. A determination by FNS that a State 

agency has failed to comply with any of these provisions may result in 

FNS seeking injunctive relief to compel compliance and/or a suspension 

or disallowance of the Federal share of the State agency's 

administrative funds. FNS has the discretion to determine in each 

instance of noncompliance, whether to seek injunctive relief or to 

suspend or disallow administrative funds. FNS may seek injunctive relief 

and suspend or disallow funds simultaneously or in sequence.

    (b) Rights. State agencies may appeal all claims brought against 

them by FNS and shall be afforded an administrative review by a designee 

of the Secretary as provided in Sec. 276.7. State agencies may seek 

judicial review of any final administrative determination made by the 

Secretary's designee, as provided in Sec. 276.7(j).



[54 FR 7016, Feb. 15, 1989]