[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR247.20]

[Page 417-418]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 247_COMMODITY SUPPLEMENTAL FOOD PROGRAM--Table of Contents
 
Sec.  247.20  Program violations.

    (a) What are program violations in CSFP? Program violations are 
actions taken by CSFP applicants or participants, or the parents or 
caretakers of applicants or participants, to obtain or use CSFP benefits 
improperly. Program violations include the following actions:
    (1) Intentionally making false or misleading statements, orally or 
in writing;

[[Page 418]]

    (2) Intentionally withholding information pertaining to eligibility 
in CSFP;
    (3) Selling commodities obtained in the program, or exchanging them 
for non-food items;
    (4) Physical abuse, or threat of physical abuse, of program staff; 
or
    (5) Committing dual participation.
    (b) What are the penalties for committing program violations? If 
applicants or participants, or the parents or caretakers of applicants 
or participants, commit program violations, the State agency may require 
local agencies to disqualify the applicants or participants for a period 
of up to one year. However, if the local agency determines that 
disqualification would result in a serious health risk, the 
disqualification may be waived. For program violations that involve 
fraud, the State agency must require local agencies to disqualify the 
participant from CSFP for a period of up to one year, unless the local 
agency determines that disqualification would result in a serious health 
risk. The State agency must require local agencies to permanently 
disqualify a participant who commits three program violations that 
involve fraud. For purposes of this program, fraud includes:
    (1) Intentionally making false or misleading statements to obtain 
CSFP commodities;
    (2) Intentionally withholding information to obtain CSFP 
commodities; or
    (3) Selling CSFP commodities, or exchanging them for non-food items.
    (c) What must the local agency do to notify the individual of 
disqualification from CSFP? The local agency must provide the individual 
with written notification of disqualification from CSFP at least 15 days 
before the effective date of disqualification. The notification must 
include the effective date and period of disqualification, the reason 
for the disqualification, and a statement that the individual may appeal 
the disqualification through the fair hearing process, in accordance 
with Sec.  247.33(a).