7 U.S.C. § 2021
An approved retail food store or wholesale food concern that violates a provision of this chapter or a regulation under this chapter may be-
Regulations promulgated under this chapter shall provide criteria for the finding of a violation of, the suspension or disqualification of and the assessment of a civil penalty against a retail food store or wholesale food concern on the basis of evidence that may include facts established through on-site investigations, inconsistent redemption data, or evidence obtained through a transaction report under an electronic benefit transfer system.
Subject to subsection (c), a disqualification under subsection (a) shall be-
In addition to a disqualification under this section, the Secretary may assess a civil penalty in an amount not to exceed $100,000 for each violation.
The action of disqualification or the imposition of a civil penalty shall be subject to review as provided in section 2023 of this title.
As a condition of authorization to accept and redeem benefits, the Secretary may require a retail food store or wholesale food concern that, pursuant to subsection (a), has been disqualified for more than 180 days, or has been subjected to a civil penalty in lieu of a disqualification period of more than 180 days, to furnish a collateral bond or irrevocable letter of credit for a period of not more than 5 years to cover the value of benefits that the store or concern may in the future accept and redeem in violation of this chapter.
The Secretary also may require a retail food store or wholesale food concern that has been sanctioned for a violation and incurs a subsequent sanction regardless of the length of the disqualification period to submit a collateral bond or irrevocable letter of credit.
The Secretary shall, by regulation, prescribe the amount, terms, and conditions of such bond.
If the Secretary finds that such store or concern has accepted and redeemed coupons in violation of this chapter after furnishing such bond, such store or concern shall forfeit to the Secretary an amount of such bond which is equal to the value of coupons accepted and redeemed by such store or concern in violation of this chapter.
A store or concern described in paragraph (4) may obtain a hearing on such forfeiture pursuant to section 2023 of this title.
The Secretary may impose a fine against any person not approved by the Secretary to accept and redeem food coupons who violates any provision of this chapter or a regulation issued under this chapter, including violations concerning the acceptance of food coupons. The amount of any such fine shall be established by the Secretary and may be assessed and collected in accordance with regulations issued under this chapter separately or in combination with any fiscal claim established by the Secretary. The Attorney General of the United States may institute judicial action in any court of competent jurisdiction against the person to collect the fine.
The Secretary shall issue regulations providing criteria for the disqualification under this chapter of an approved retail food store or a wholesale food concern that is disqualified from accepting benefits under the special supplemental nutrition program for women, infants, and children established under section 1786 of title 42.
A disqualification under paragraph (1)-
The Secretary, in consultation with the Inspector General of the Department of Agriculture, shall establish procedures under which the processing of program benefit redemptions for a retail food store or wholesale food concern may be immediately suspended pending administrative action to disqualify the retail food store or wholesale food concern.
Under the procedures described in paragraph (1), if the Secretary, in consultation with the Inspector General, determines that a retail food store or wholesale food concern is engaged in flagrant violations of this chapter (including regulations promulgated under this chapter), unsettled program benefits that have been redeemed by the retail food store or wholesale food concern-
The Secretary shall not be liable for the value of any interest on funds suspended under this subsection.
The Secretary shall carry out, under such terms and conditions as are determined by the Secretary, pilot projects to test innovative Federal-State partnerships to identify, investigate, and reduce fraud by retail food stores and wholesale food concerns in the supplemental nutrition assistance program, including allowing States to operate programs to investigate that fraud.
At least 1 pilot project described in subparagraph (A) shall be carried out in an urban area that is among the 10 largest urban areas in the United States (based on population), if-
Pilot projects shall be selected based on criteria the Secretary establishes, which shall include-
The Secretary shall evaluate the pilot projects selected under this subsection to measure the impact of the pilot projects.
The evaluation shall include-
Not later than September 30, 2017, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report that includes a description of the results of each pilot project, including-
Any costs incurred by a State to operate pilot projects under this subsection that are in excess of the amount expended under this chapter to identify, investigate, and reduce fraud described in paragraph (1)(A) in the respective State in the previous fiscal year shall not be eligible for Federal reimbursement under this chapter.
7 U.S.C. § 2021
EDITORIAL NOTES
CODIFICATION Pub. L. 110-234 and Pub. L. 110-246 made identical amendments to this section. The amendments by Pub. L. 110-234 were repealed by section 4(a) of Pub. L. 110-246.
AMENDMENTS2014-Subsec. (b)(3)(C). Pub. L. 113-79, §4030(g)(1), substituted "civil penalties" for "civil money penalties".Subsec. (g)(1). Pub. L. 113-79, §4030(g)(2), made technical amendment to reference in original act which appears in text as reference to section 1786 of title 42. Subsec. (i). Pub. L. 113-79, §4017, added subsec. (i). 2008- Pub. L. 110-246, §4132(1), substituted "Civil penalties" for "Civil money penalties" in section catchline. Subsec. (a). Pub. L. 110-246, §4132(1), added subsec. (a) and struck out former subsec. (a) which read as follows: "Any approved retail food store or wholesale food concern may be disqualified for a specified period of time from further participation in the food stamp program, or subjected to a civil money penalty of up to $10,000 for each violation if the Secretary determines that its disqualification would cause hardship to food stamp households, on a finding, made as specified in the regulations, that such store or concern has violated any of the provisions of this chapter or the regulations issued pursuant to this chapter. Regulations issued pursuant to this chapter shall provide criteria for the finding of a violation and the suspension or disqualification of a retail food store or wholesale food concern on the basis of evidence that may include facts established through on-site investigations, inconsistent redemption data, or evidence obtained through a transaction report under an electronic benefit transfer system." Subsec. (b). Pub. L. 110-246, §4132(2)(A), inserted heading and substituted "Subject to subsection (c), a disqualification" for "Disqualification" in introductory provisions.Subsec. (b)(1). Pub. L. 110-246, §4132(2)(B), substituted "not to exceed 5 years" for "of no less than six months nor more than five years". Subsec. (b)(2). Pub. L. 110-246, §4132(2)(C), substituted "not to exceed 10 years" for "of no less than twelve months nor more than ten years".Subsec. (b)(3)(B). Pub. L. 110-246, §4132(2)(D), (E), in introductory provisions, inserted "or a finding of the unauthorized redemption, use, transfer, acquisition, alteration, or possession of EBT cards" after "wholesale food concern" and substituted "civil penalty" for "civil money penalty" and "civil penalties" for "civil money penalties". Subsec. (b)(3)(C). Pub. L. 110-246, §4132(2)(E), substituted "civil penalty" for "civil money penalty". Subsec. (c). Pub. L. 110-246, §4132(3), inserted subsec. heading, added par. (1), designated existing provisions as par. (2), inserted par. heading, and substituted "civil penalty" for "civil money penalty" in text.Subsec. (d). Pub. L. 110-246, §4132(4), inserted subsec. heading, added pars. (1) and (2), designated part of existing provisions as pars. (3) to (5), inserted par. headings, in par. (5), substituted "A store or concern described in paragraph (4)" for "Such store or concern", and struck out after subsec. designation "As a condition of authorization to accept and redeem coupons, the Secretary may require a retail food store or wholesale food concern which has been disqualified or subjected to a civil penalty pursuant to subsection (a) of this section to furnish a bond to cover the value of coupons which such store or concern may in the future accept and redeem in violation of this chapter."Subsec. (e). Pub. L. 110-246, §4132(5), substituted "civil penalty" for "civil money penalty" wherever appearing.Subsec. (h). Pub. L. 110-246, §4132(6), added subsec. (h).1996-Subsec. (a). Pub. L. 104-193, §841, inserted at end "Regulations issued pursuant to this chapter shall provide criteria for the finding of a violation and the suspension or disqualification of a retail food store or wholesale food concern on the basis of evidence that may include facts established through on-site investigations, inconsistent redemption data, or evidence obtained through a transaction report under an electronic benefit transfer system." Subsec. (b)(3)(B). Pub. L. 104-127, §401(a), struck out "(including evidence that neither the ownership nor management of the store or food concern was aware of, approved, benefited from, or was involved in the conduct or approval of the violation)" after "substantial evidence" and substituted ",including evidence that-" and cls. (i) and (ii) for ";or". Subsec. (b)(4). Pub. L. 104-193, §842, added par. (4). Subsec. (g). Pub. L. 104-193, §843, added subsec. (g). 1993-Subsec. (b)(3)(B). Pub. L. 103-66, §13943, substituted "for violations occurring during a single investigation" for "during a 2-year period".Subsec. (b)(3)(C). Pub. L. 103-66, §13944, substituted "substance (as" for "substances (as the term is" and "for violations occurring during a single investigation" for "during a 2-year period".1990-Subsec. (b)(3). Pub. L. 101-624, §1743, in subpar. (A) struck out "or" after "disqualification;", in subpar. (B) inserted "for each violation (except that the amount of civil money penalties imposed during a 2-year period may not exceed $40,000)" after "$20,000" and "(including evidence that neither the ownership nor management of the store or food concern was aware of, approved, benefited from, or was involved in the conduct or approval of the violation)" after "evidence", and substituted ";or" for period at end, and added subpar. (C). Subsec. (e)(3). Pub. L. 101-624, §1744, added par. (3). Subsec. (f). Pub. L. 101-624, §1745, added subsec. (f). 1988-Subsec. (b)(3). Pub. L. 100-435 amended par. (3) generally. Prior to amendment, par. (3) read as follows: "permanent upon the third occasion of disqualification or the first occasion of a disqualification based on the purchase of coupons or trafficking in coupons or authorization cards by a retail food store or wholesale food concern." 1985-Subsec. (e). Pub. L. 99-198 added subsec. (e).1982-Subsec. (a). Pub. L. 97-253, §175(1)-(3), redesignated first sentence as subsec. (a), substituted "$10,000" for "$5,000", and struck out second sentence relating to disqualification.Subsec. (b). Pub. L. 97-253, §175(3), added subsec. (b) relating to disqualification.Subsec. (c). Pub. L. 97-253, §175(4), redesignated last sentence as subsec. (c). Subsec. (d). Pub. L. 97-253, §176(a), added subsec. (d). 1977- Pub. L. 95-113 substituted revised provisions covering civil money penalties and disqualification of retail food stores and wholesale food concerns for provisions relating to the determination and disposition of claims which are now covered by section 2022 of this title.
STATUTORY NOTES AND RELATED SUBSIDIARIES
CHANGE OF NAMEReferences to a "coupon", "authorization card", or other access device provided under the Food and Nutrition Act of 2008 considered to refer to a "benefit" under that Act, see section 4115(d) of Pub. L. 110-246 set out as a note under section 2012 of this title.
EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110-234 by Pub. L. 110-246 effective May 22, 2008, the date of enactment of Pub. L. 110-234 except as otherwise provided, see section 4 of Pub. L. 110-246 set out as an Effective Date note under section 8701 of this title. Amendment by section 4132 of Pub. L. 110-246 effective Oct. 1, 2008, see section 4407 of Pub. L. 110-246 set out as a note under section 1161 of Title 2, The Congress.
EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103-66 effective, and to be implemented beginning on, Oct. 1, 1993, see section 13971(a) of Pub. L. 103-66 set out as a note under section 2025 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-624 effective and implemented first day of month beginning 120 days after publication of implementing regulations to be promulgated not later than Oct. 1, 1991, see section 1781(a) of Pub. L. 101-624 set out as a note under section 2012 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100-435 to be effective and implemented on Oct. 1, 1988, see section 701(a) of Pub. L. 100-435 set out as a note under section 2012 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97-253 effective Sept. 8, 1982, see section 193(a) of Pub. L. 97-253 set out as a note under section 2012 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT Pub. L. 95-113, title XIII, §1301, Sept. 29, 1977, 91 Stat. 958, provided that the amendment made by section 1301 is effective Oct. 1, 1977.
- Access device
- "Access device" means any card, plate, code, account number, or other means of access, including point of sale devices, that can be used, alone or in conjunction with another access device, to obtain payments, allotments, benefits, money, goods, or other things of value, or that can be used to initiate a transfer of funds under this chapter.
- Coupon
- "Coupon" means any coupon, stamp, type of certificate, authorization card, cash or check issued in lieu of a coupon.
- Retail food store
- "Retail food store" means-(1) an establishment, house-to-house trade route, or online entity that sells food for home preparation and consumption and-(A) offers for sale, on a continuous basis, a variety of at least 7 foods in each of the 4 categories of staple foods specified in subsection (q)(1), including perishable foods in at least 3 of the categories; or(B) has over 50 percent of the total sales of the establishment or route in staple foods,as determined by visual inspection, sales records, purchase records, counting of stockkeeping units, or other inventory or accounting recordkeeping methods that are customary or reasonable in the retail food industry;(2) an establishment, organization, program, or group living arrangement referred to in paragraphs (3), (4), (5), (7), (8), and (9) of subsection (k);(3) a store purveying the hunting and fishing equipment described in subsection (k)(6);(4) any private nonprofit cooperative food purchasing venture, including those in which the members pay for food purchased prior to the receipt of such food, or agricultural producers who market agricultural products directly to consumers; and(5) a governmental or private nonprofit food purchasing and delivery service that-(A) purchases food for, and delivers the food to, individuals who are-(i) unable to shop for food; and(ii)(I) not less than 60 years of age; or(II) physically or mentally handicapped or otherwise disabled;(B) clearly notifies the participating household at the time the household places a food order-(i) of any delivery fee associated with the food purchase and delivery provided to the household by the service; and(ii) that a delivery fee cannot be paid with benefits provided under supplemental nutrition assistance program; and(C) sells food purchased for the household at the price paid by the service for the food and without any additional cost markup.
- Secretary
- "Secretary" means the Secretary of Agriculture.
- State agency
- "State agency" means (1) the agency of State government, including the local offices thereof, which has the responsibility for the administration of the federally aided public assistance programs within such State, and in those States where such assistance programs are operated on a decentralized basis, the term shall include the counterpart local agencies administering such programs, and (2) the tribal organization of an Indian tribe determined by the Secretary to be capable of effectively administering a food distribution program under section 2013(b) of this title or a supplemental nutrition assistance program under section 2020(d) of this title.
- State
- "State" means the fifty States, the District of Columbia, Guam, the Virgin Islands of the United States, and the reservations of an Indian tribe whose tribal organization meets the requirements of this chapter for participation as a State agency.
- Supplemental nutrition assistance program
- "Supplemental nutrition assistance program" means the program operated pursuant to this chapter.