94-21245. Food Stamp Program: Disqualification Penalties for Intentional Program Violations  

  • [Federal Register Volume 59, Number 166 (Monday, August 29, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-21245]
    
    
    [[Page Unknown]]
    
    [Federal Register: August 29, 1994]
    
    
                                                       VOL. 59, NO. 166
    
                                                Monday, August 29, 1994
    
    DEPARTMENT OF AGRICULTURE
    
    Food and Nutrition Service
    
    7 CFR Part 273
    
    [Amdt. No. 357]
    RIN 0584-AB77
    
     
    
    Food Stamp Program: Disqualification Penalties for Intentional 
    Program Violations
    
    AGENCY: Food and Nutrition Service (FNS), USDA.
    
    ACTION: Proposed rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: FNS is proposing to amend Food Stamp Program regulations by 
    increasing the disqualification penalties for individuals who are found 
    guilty in a Federal, State or local court of trading or receiving food 
    stamp coupons (coupons) for firearms, ammunition, explosives or 
    controlled substances. This proposal is aimed at deterring recipient 
    abuse in the Food Stamp Program. This rule also proposes changes to the 
    procedures for establishing intentional Program violations. These 
    changes are based on recommendations from State agencies and the 
    Department's Office of the General Counsel (OGC).
    
    DATES: Comments on this proposed rulemaking must be received by October 
    28, 1994 to be assured of consideration. Only written comments will be 
    accepted.
    
    ADDRESSES: Comments should be submitted to James I. Porter, Supervisor, 
    Issuance and Accountability Section, State Administration Branch, 
    Program Accountability Division, Food Stamp Program, Food and Nutrition 
    Service, USDA, 3101 Park Center Drive, Alexandria, Virginia 22302. All 
    written comments will be open for public inspection during regular 
    business hours (8:30 am to 5:00 pm, Monday through Friday) at 3101 Park 
    Center Drive, Alexandria, Virginia, Room 905.
    
    FOR FURTHER INFORMATION CONTACT: Questions regarding this proposed 
    rulemaking should be directed to Mr. Porter at the above address or by 
    telephone at (703)305-2385.
    
    SUPPLEMENTARY INFORMATION:
    
    Executive Order 12866
    
        This proposed rule has been determined to be not significant for 
    purposes of Executive Order 12866, and therefore has not been reviewed 
    by the Office of Management and Budget.
    
    Executive Order 12372
    
        The Food Stamp Program is listed in the Catalog of Federal Domestic 
    Assistance under No. 10.551. For the reasons set forth in the final 
    rule at 7 CFR 3015, Subpart V and related Notice (48 FR 29115, June 24, 
    1983), this Program is excluded from the scope of Executive Order 12372 
    which requires intergovernmental consultation with State and local 
    officials.
    
    Executive Order 12778
    
        This proposed rule has been reviewed under Executive Order 12778, 
    Civil Justice Reform. This rule is intended to have preemptive effect 
    with respect to any State or local laws, regulations or policies which 
    conflict with its provisions or which would otherwise impede its full 
    implementation. This rule is not intended to have retroactive effect 
    unless so specified in the ``Implementation'' section of this preamble. 
    Prior to any judicial challenge to the provisions of this proposed rule 
    or the application of its provisions, all applicable administrative 
    procedures must be exhausted. In the Food Stamp Program the 
    administrative procedures are as follows: (1) For program benefit 
    recipients--State administrative procedures issued pursuant to 7 U.S.C. 
    2020(e)(10) and 7 CFR 273.15; (2) for State agencies--administrative 
    procedures issued pursuant to 7 U.S.C. 2023 set out at 7 CFR 276.7 (for 
    rules related to non-QC liabilities) or 7 CFR 275.23 (for rules related 
    to QC liabilities); (3) for program retailers and wholesalers--
    administrative procedures issued pursuant to 7 U.S.C. 2023 set out at 7 
    CFR 278.8.
    
    Regulatory Flexibility Act
    
        This proposed rule has been reviewed with regard to the 
    requirements of the Regulatory Flexibility Act of 1980 (Pub. L. 96-354, 
    94 Stat. 1164, September 19, 1980). William E. Ludwig, Administrator of 
    the Food and Nutrition Service, has certified that this rule does not 
    have a significant economic impact on a substantial number of small 
    entities. The requirements will affect State and local agencies that 
    administer the Food Stamp Program by simplifying the requirements for 
    giving advance notice of hearing to food stamp recipients. It will also 
    modify the penalties applicable to individuals who engage in Program 
    misconduct.
    
    Paperwork Reduction Act
    
        In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
    3507), the reporting and recordkeeping burden associated with this 
    proposed rule has been approved by the Office of Management and Budget 
    (OMB) under OMB number 0584-0064. The provisions of this rule do not 
    contain any additional reporting and/or recordkeeping requirements 
    subject to OMB approval.
    
    Background
    
        The Mickey Leland Childhood Hunger Relief Act (Pub. L. 103-66) 
    (Leland Act) amended the Food Stamp Act of 1977 (7 U.S.C. 2011-2021) 
    (the Act) in a number of ways. This rule proposes to implement the 
    nondiscretionary provisions of the Leland Act relating to 
    disqualification penalties for intentional Program violations. Other 
    provisions of the Leland Act are being addressed in separate rules.
        This rule proposes to implement the disqualification penalties for 
    individuals who are found guilty in a Federal, State or local court of 
    trading or receiving coupons for firearms, ammunition, explosives or 
    controlled substances. This rule also proposes regulatory changes with 
    regard to the delivery of administrative disqualification hearing 
    notices and the initiation of disqualification periods for intentional 
    Program violations. In addition, this rule proposes to eliminate two 
    model forms referred to under 7 CFR 273.16 of the current regulations.
    
    I. Disqualification Penalties for Intentional Program Violations
    
        An intentional Program violation is defined in 7 CFR 273.16(c) as, 
    ``having intentionally (1) Made a false or misleading statement or 
    misrepresented, concealed or withheld facts or, (2) committed any act 
    that constitutes a violation of the Food Stamp Act, the Food Stamp 
    Program Regulations, or any State statute relating to the use, 
    presentation, transfer, acquisition, receipt, or possession of food 
    stamp coupons or ATP's [Authorization to Participate cards].'' As 
    reflected by current regulations at 7 CFR 273.16(b), Section 6(b)(1) of 
    the Act (7 U.S.C. Sec. 2015 (b)(1)) establishes a graduated system of 
    intentional Program violation disqualification penalties. Under this 
    system, individuals receive a mandatory disqualification of 6 months 
    for the first offense or 12 months for the second offense, and a 
    permanent disqualification for the third offense. Under the current 
    regulations, there is no distinction in penalties for different types 
    of conduct which result in an intentional Program violation finding.
        The Leland Act changes this. It amends Section 6(b)(1) of the Act 
    to increase the penalties for intentional Program violations which 
    involve certain egregious conduct. Specifically, the Leland Act 
    requires that an individual be disqualified for 12 months for a first 
    finding by a court, and permanently for a second finding by a court 
    that the person has either traded or received controlled substances 
    using coupons. The Leland Act also requires that an individual be 
    permanently disqualified for the first finding by a court that the 
    individual has either traded or received firearms, ammunition, or 
    explosives using coupons. Accordingly, the Department proposes to amend 
    7 CFR 273.16 by revising paragraph (b) to include the new penalties. 
    The Department is also proposing to make conforming amendments to 7 CFR 
    273.16(e)(3)(i)(F) and 7 CFR 273.16(h)(1)(ii)(c). The applicability of 
    the new penalties to the Disqualified Recipient Subsystem under 7 CFR 
    273.16(i) will be addressed in a different rulemaking.
        The language being proposed in Sec. 273.16(b) states that the new 
    penalties will apply to applicable violations involving the use of 
    ``coupons.'' In addition to violations involving traditional paper 
    coupons, the Department believes that the increased penalties also 
    apply to violations involving trafficking in alternative benefit 
    issuance systems such as electronic benefit transfer (EBT). Current 
    regulations at 7 CFR 271.2 define a ``coupon'' as ``any coupon, stamp, 
    access device or type of certification provided * * * for the purchase 
    of eligible food.'' Since alternative forms of benefit issuance 
    systems, such as EBT, are included in this definition, providing 
    additional language in Sec. 273.16(b) of the proposed rule regarding 
    this issue and the extent of applicability is unnecessary.
        Current regulations at 7 CFR 273.2(b)(ii) and 7 CFR 273.16(d) 
    require that the disqualification penalties be included on the Food 
    Stamp Program application form. In order to satisfy this requirement, 
    the Department issued an implementation memorandum on March 16, 1994, 
    requiring that State agencies are to modify the application to reflect 
    the new penalties by the September 1, 1994 implementation date.
        In preparing this proposed rule, the Department considered whether 
    the increased penalties apply to violations settled by deferred 
    adjudications. A deferred adjudication, as specified in 7 CFR 273.16(h) 
    of the current regulations, is when a determination of guilt by a court 
    is deferred subject to the accused individual meeting the terms of an 
    agreement with a prosecutor or of a court order. The statutory language 
    provides for the increased penalties to take effect where there is an 
    actual court finding that the intentional Program violation involved 
    trading firearms, ammunition, explosives or controlled substances for 
    coupons. Accordingly, the increased penalties will be applied under 
    this rule in cases of deferred adjudication where the court makes such 
    a finding. We note that the statute does not speak of a ``conviction'' 
    but rather of a ``finding by a Federal, State or local court.'' Since 
    court rules generally require a finding of culpability in jurisdictions 
    where deferred adjudication procedures are used, the Department 
    believes the increased penalties would apply if such a finding has been 
    made, even though the final adjudication is deferred. If, for any 
    reason, final adjudication is deferred and no finding of culpability is 
    made by the court, the increased administrative penalties would not 
    apply until such a finding is made or final adjudication is reached.
        It is the Department's intent in this proposed rule to allow the 
    inclusion of the increased penalties in signed deferred adjudication 
    agreements in exactly the same manner that the existing penalties are 
    currently included in such agreements. Accordingly, the Department 
    proposes to amend 7 CFR 273.16 by revising paragraph (b) to specify 
    that the increased penalties shall also apply to signed deferred 
    adjudication agreements. We encourage comments on this proposed 
    amendment. The Department is also proposing to make a conforming 
    amendment to 7 CFR 273.16(h)(1)(ii)(C).
        As opposed to deferred adjudication, since there is no formal 
    involvement or inclusion of a Federal, state or local court process in 
    the administrative disqualification hearing system, the Department is 
    proposing that the increased penalties not apply to intentional Program 
    violations determined as a result of an administrative disqualification 
    hearing or a signed waiver of the right to an administrative 
    disqualification hearing.
        The second sentence in paragraph (b) of 7 CFR 273.16 in the current 
    regulations concerns the treatment of disqualifications which occurred 
    prior to the implementation of the current disqualification penalties. 
    The Department is proposing to amend paragraph (b) by breaking this 
    sentence out into its own paragraph, paragraph (6) in Sec. 273.16(b) of 
    the proposed rule, and specifying which penalties apply to this policy. 
    The Department is also proposing to make a conforming amendment to 7 
    CFR 273.16(i)(5). There is no intent on the part of the Department to 
    change the effect of this provision as it applies to the existing 
    penalties. This specific revision is being proposed solely to provide 
    clarification.
        Regarding the application of the new penalties for trading or 
    receiving coupons for firearms, ammunition, explosives or controlled 
    substances, the increased penalties apply to court findings which occur 
    subsequent to the effective date of Section 13942 of the Leland Act--
    September 1, 1994--as reflected in a new paragraph Sec. 273.16(b)(7) in 
    the proposed rule.
        The third sentence in 7 CFR 273.16(b) in the current regulations 
    discusses the disqualification procedure if a disqualification period 
    is not imposed by the court. The current procedure requires the State 
    agency to impose the appropriate penalty unless it is contrary to the 
    court order. The Department is proposing to retain this policy and to 
    apply it to the proposed increased penalties. Accordingly, the 
    Department is proposing to amend the existing provision to include the 
    increased penalties. In keeping with the proposed reorganization of 7 
    CFR 273.16(b), the provision is also being separated into its own 
    paragraph, Sec. 273.16(b)(5).
        In addition, the Department is proposing to retain its current 
    policy in 7 CFR 273.16(b) regarding the disqualification of the 
    individual as opposed to the entire household. The Department is also 
    proposing to retain its current policy in 7 CFR 273.16(b) that the 
    household, and not just the individual, is responsible for repayment of 
    the debt. However, the Department is proposing to break these policies 
    out into their own respective paragraphs, Sec. 273.16(b)(8) and (9) of 
    the proposed rule.
        The current regulations at 7 CFR 273.16(b) include some of the 
    claim establishment and collection procedures for intentional Program 
    violations. As this subject is covered in greater detail in 7 CFR 
    273.18 of the current regulations, the Department is proposing to 
    eliminate repetition by amending 7 CFR 273.16(b) to remove the specific 
    procedures and replace it with Sec. 273.16(b)(9) which states that all 
    claims should be established and collected in accordance with the 
    procedures set forth in 7 CFR 273.18 in the current regulations. The 
    procedures for establishing and collecting intentional Program 
    violations found in 7 CFR 273.18 of the current regulations are not 
    affected by this proposed rule.
    
    II. Advance Notice of Administrative Disqualification Hearings
    
        Under the current regulations at 7 CFR 273.16(e)(3), ``proof of 
    receipt'' of a written advance notice must be obtained prior to 
    conducting a scheduled administrative disqualification hearing. State 
    agencies have found this requirement to be burdensome, costly and 
    inconsistent with other Federal programs they administer. Regular mail 
    service is an inexpensive and efficient mechanism to provide notice 
    that an individual's rights are being affected. In addition, the Texas 
    Department of Human Services is currently operating under a 
    Departmental waiver which allows the State agency to conduct 
    disqualification hearings without obtaining proof of receipt of the 
    advance notice. Data collected from the State agency revealed that only 
    four recipients, out of a total of 3,931 administrative 
    disqualification hearing notices mailed from November 1992 to September 
    1993, subsequently claimed that their respective notices were never 
    received. Therefore, in an effort to increase Program efficiency while 
    lowering administrative costs, the Department is proposing to amend 7 
    CFR 273.16(e)(3) to allow State agencies the option of delivering these 
    advance notices via first class mail. In addition, the Department is 
    proposing to eliminate the proof of receipt requirement where the State 
    agency elects an alternative method of delivery.
        In order to safeguard the rights of recipients who may be affected 
    by this proposed rule, the Department is proposing to make a claim of 
    non-receipt of an advance notice, unless proof of receipt was obtained 
    by the State agency, a good cause criterion under 7 CFR 273.16(e)(4). 
    If the household member shows non-receipt of the notice in a timely 
    fashion, any previous decision determined in absentia would no longer 
    remain valid and the State agency would conduct a new hearing. We are 
    especially interested in receiving comments on this proposal.
    
    III. Imposition of Disqualification Penalties
    
        Section 6(b)(1) of the Act (7 U.S.C. 2015(b)(1)) states that an 
    individual who has been found to have committed an intentional Program 
    violation shall ``immediately'' become ineligible for further 
    participation in the Food Stamp Program for the length of the 
    disqualification period. However, the language currently used in 
    paragraphs (a), (e), (f), (g) and (h) of 7 CFR 273.16 specifies that, 
    if the individual is not participating in the Program at the time the 
    disqualification is to begin, the disqualification period is to be 
    ``postponed'' until the individual applies for and is determined 
    eligible to receive Program benefits. The Department found that the use 
    of the word ``postponed'' in the current regulations, when compared to 
    ``immediately'' in the Act, may be the cause of confusion which has 
    recently led to some court suits. There is concern because an exacting 
    interpretation of ``immediately'' would result in the disqualification 
    period beginning at once for the specified length of time regardless of 
    whether the individual is eligible to participate in the Program. Under 
    this interpretation, the worst offenders, those who concealed steady 
    employment and large amounts of income in order to obtain food stamps, 
    are unlikely to be penalized at all since their level of income and/or 
    resources, once discovered, would prevent them from participating in 
    the Program during the period of time covered by the disqualification 
    penalty. Since the legislative intent (Senate Report No. 128, 97th 
    Congress, 1st Session, pages 54 and 55) is to strengthen the laws 
    applying to Program violators, the Department strongly believes that 
    allowing individuals to escape without penalty is contrary to this 
    intent. In addition, the Department feels that the concept expressed in 
    the Act of becoming ineligible for further participation, to which an 
    immediate disqualification period applies, implies that an individual 
    is either participating or has been determined eligible to participate. 
    It simply defies common sense to have periods of disqualification run 
    concurrently with periods of ineligibility.
        Therefore, the Department is proposing to clarify existing 
    regulations at 7 CFR 273.16(a), (e), (f), (g) and (h) by stating that 
    an individual disqualified while not currently participating in the 
    Program would have his/her disqualification period begin immediately 
    after applying for and becoming eligible to receive benefits.
        The Department is also proposing to make an additional revision to 
    paragraphs (a), (e), (f), (g) and (h) in 7 CFR 273.16 by replacing 
    ``participating'' with ``certified to participate'' where reference is 
    made to the imposition of the disqualification period. This is being 
    proposed to clarify the Department's position regarding the timing of 
    the imposition of disqualification penalties in instances such as when 
    an individual is found eligible for the Program but technically does 
    not ``participate'' by failing to redeem an intermediary document such 
    as an authorization to participate card (ATP). The proposed rule makes 
    clear the Department's position that the State agency should begin the 
    disqualification period against an individual provided that 
    individual's household is certified to participate in the Program 
    regardless of whether an ATP or similar document has been redeemed.
    
    IV. Model Forms
    
        The current regulations at 7 CFR 273.16(e) make two references to 
    FNS providing model forms for adaptation by State agencies. The first 
    model form, referred to in 7 CFR 273.16(e)(3)(iii), is for providing 
    advance notice of an administrative disqualification hearing. The 
    second form, referred to in 7 CFR 273.16(e)(9)(iii), provides a model 
    for notifying individuals of administrative action taken in their 
    administrative disqualification hearing. The primary purpose for 
    furnishing these forms was to assist State agencies with the initial 
    implementation of the current regulations when they were originally 
    published in 1983. Since that time, most State agencies have designed 
    their own State-specific forms based on regulatory requirements, thus 
    reducing the effectiveness of and need for these models. As part of an 
    ongoing effort to do away with unnecessary Federal forms while 
    affording State agencies maximum flexibility, the Department is 
    proposing to eliminate these model forms by deleting the sentences in 7 
    CFR 273.16(e)(3)(iii) and 7 CFR 273.16(e)(9)(iii) which make reference 
    to the forms. However, FNS will continue to provide State agencies with 
    guidance and assistance for form development or changes to forms 
    necessitated by revisions to the regulations.
    
    Implementation
    
        Section 13971 of the Leland Act sets effective dates for the 
    various provisions of the law. Section 13971(6)(4) provides that the 
    provision in Section 13942, which amends Section 6(b) of the Act (7 
    U.S.C. 2015(b)(1)) to enhance certain intentional Program violation 
    disqualification penalties, is effective and shall be implemented on 
    September 1, 1994. Current regulations at 7 CFR 273.2(b)(ii) and 7 CFR 
    273.16(d) require that the notice of disqualification penalties be 
    included on the Food Stamp application form. Therefore, the Department, 
    on March 16, 1994, issued an implementation memorandum stating that 
    notice of the enhanced intentional Program violation disqualification 
    penalties is to be included on the Food Stamp application form by 
    September 1, 1994.
    
    List of Subjects in 7 CFR Part 273
    
        Administrative practice and procedure, Aliens, Claims, Food Stamps, 
    Fraud, Grant programs--social programs, Penalties, Reporting and 
    recordkeeping requirements, Social security, Students.
    
        For the reasons set out in the preamble, 7 CFR Part 273 is proposed 
    to be amended as follows:
        1. The authority citation for Part 273 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 2011-2032.
    
    PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS
    
        2. In Sec. 273.16:
        a. The last sentence of paragraph (a)(1) is revised;
        b. Paragraph (b) is revised;
        c. The second sentence of the introductory text of paragraph 
    (e)(3)(i) is removed, and four new sentences are added in its place;
        d. Paragraph (e)(3)(i)(F) is revised;
        e. The last sentence of paragraph (e)(3)(iii) is removed;
        f. Paragraph (e)(8)(iii) is revised;
        g. The last sentence of paragraph (e)(9)(iii) is removed;
        h. Paragraph (f)(2)(iii) is revised;
        i. Paragraph (g)(2)(ii) is revised;
        j. Paragraph (h)(1)(ii)(C) is revised;
        k. Paragraph (h)(2)(ii) is revised; and
        l. The second sentence of paragraph (i)(5) is revised.
        The revisions and additions read as follows:
    
    
    Sec. 273.16  Disqualification for intentional Program violation.
    
        (a) Administrative responsibility. (1) * * * The disqualification 
    period for nonparticipants at the time of the administrative 
    disqualification or court decision shall take effect immediately after 
    the individual applies for and is determined eligible for Program 
    benefits.
    * * * * *
        (b) Disqualification penalties. (1) Individuals found to have 
    committed an intentional Program violation either through an 
    administrative disqualification hearing or by a Federal, State or local 
    court, or who have signed either a waiver of right to an administrative 
    disqualification hearing or a disqualification consent agreement in 
    cases referred for prosecution, shall be ineligible to participate in 
    the Program:
        (i) For a period of six months for the first intentional Program 
    violation, except as provided under paragraphs (b)(2) and (b)(3) of 
    this section;
        (ii) For a period of twelve months upon the second occasion of any 
    intentional Program violation, except as provided in paragraphs (b)(2) 
    and (b)(3) of this section; and
        (iii) Permanently for the third occasion of any intentional Program 
    violation.
        (2) Individuals found by a Federal, State or local court to have 
    used or received coupons in a transaction involving the sale of a 
    controlled substance (as defined in section 102 of the Controlled 
    Substances Act (21 U.S.C. 802)) shall be ineligible to participate in 
    the Program:
        (i) For a period of twelve months upon the first occasion of such 
    violation; and
        (ii) Permanently upon the second occasion of such violation.
        (3) Individuals found by a Federal, State or local court to have 
    used or received coupons in a transaction involving the sale of 
    firearms, ammunition or explosives shall be permanently ineligible to 
    participate in the Program upon the first occasion of such violation.
        (4) The penalties in paragraphs (b)(2) and (b)(3) of this section 
    shall also apply in cases of deferred adjudication as described in 
    paragraph (h) of this section where the court makes a finding that the 
    individual engaged in the conduct described in paragraph (b)(2) or 
    (b)(3) of this section.
        (5) If a court fails to impose a disqualification period for any 
    intentional Program violation, the State agency shall impose the 
    appropriate disqualification penalty specified in paragraph (b)(1), 
    (b)(2) or (b)(3) of this section unless it is contrary to the court 
    order.
        (6) One or more intentional Program violations which occurred prior 
    to the State agency's implementation of the disqualification periods 
    specified in paragraphs (b)(1)(i), (b)(1)(ii) or (b)(1)(iii) of this 
    section shall be considered as only one previous disqualification when 
    determining the appropriate penalty to impose in a case under 
    consideration.
        (7) Regardless of when an action taken by an individual which 
    caused an intentional Program violation occurred, the disqualification 
    periods specified in paragraphs (b)(2) and (b)(3) of this section shall 
    apply to any case in which the court makes the requisite finding on or 
    after September 1, 1994.
        (8) State agencies shall disqualify only the individual found to 
    have committed the intentional Program violation, or who signed the 
    waiver of the right to an administrative disqualification hearing or 
    disqualification consent agreement in cases referred for prosecution, 
    and not the entire household.
        (9) Even though only the individual is disqualified, the household, 
    as defined in Sec. 273.1, is responsible for making restitution for the 
    amount of any overpayment. All intentional Program violation claims 
    shall be established and collected in accordance with the procedures 
    set forth in Sec. 273.18.
    * * * * *
        (e) Disqualification hearings. * * *
        (3) Advance notice of hearing. (i) * * * If mailed, the notice 
    shall be sent either first class mail or certified mail- return receipt 
    requested. The notice may also be provided by any other reliable 
    method. If no proof of receipt is obtained, a showing of non-receipt by 
    the household member shall be considered good cause for not appearing 
    at the hearing. The notice shall contain at a minimum:
    * * * * *
        (F) A warning that a determination of intentional Program violation 
    will result in disqualification periods as determined by paragraph (b) 
    of this section, and a statement of which penalty the State agency 
    believes is applicable to the case scheduled for a hearing;
    * * * * *
        (8) Imposition of disqualification penalties. * * *
        (iii) If the individual is not certified to participate in the 
    Program at the time the disqualification period is to begin, the period 
    shall take effect immediately after the individual applies for and is 
    determined eligible for benefits.
    * * * * *
        (f) Waived hearings. * * *
        (2) Imposition of disqualification penalties. * * *
        (iii) If the individual is not certified to participate in the 
    Program at the time the disqualification period is to begin, the period 
    shall take effect immediately after the individual applies for and is 
    determined eligible for benefits.
    * * * * *
        (g) Court Referrals. * * *
        (2) Imposition of disqualification penalties. * * *
        (ii) If the individual is not certified to participate in the 
    Program at the time the disqualification period is to begin, the period 
    shall take effect immediately after the individual applies for and is 
    determined eligible for benefits.
    * * * * *
        (h) Deferred adjudication. * * *
        (1) Advance notification. * * *
        (ii) * * *
        (C) A warning that the disqualification periods for intentional 
    Program violations under the Food Stamp Program are as specified in 
    paragraph (b) of this section, and a statement of which penalty will be 
    imposed as a result of the accused individual having consented to 
    disqualification.
    * * * * *
        (2) Imposition of disqualification penalties. * * *
        (ii) If the individual is not certified to participate in the 
    Program at the time the disqualification period is to begin, the period 
    shall take effect immediately after the individual applies for and is 
    determined eligible for benefits.
    * * * * *
        (i) Reporting requirements. * * *
        (5) * * * However, one or more intentional Program violations which 
    occurred prior to the State agency's implementation of the 
    disqualification periods specified in paragraph (b)(1) of this section 
    shall be considered as only one previous disqualification when 
    determining the appropriate penalty to impose in a case under 
    consideration, regardless of where the disqualification(s) took place. 
    * * *
    * * * * *
        Dated: August 24, 1994.
    William E. Ludwig,
    Administrator, Food and Nutrition Service.
    [FR Doc. 94-21245 Filed 8-26-94; 8:45 am]
    BILLING CODE 3410-30-U
    
    
    

Document Information

Published:
08/29/1994
Department:
Food and Nutrition Service
Entry Type:
Uncategorized Document
Action:
Proposed rule.
Document Number:
94-21245
Dates:
Comments on this proposed rulemaking must be received by October 28, 1994 to be assured of consideration. Only written comments will be accepted.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: August 29, 1994, Amdt. No. 357
RINs:
0584-AB77
CFR: (1)
7 CFR 273.16