How can a retail store restore participation in the Food Stamp Act?
Full Question:
Answer:
Food stamp fraud is a crime under federal law as well as state law. Both the federal government and most states have active programs to prosecute offenders. In addition, in cases where the evidence is not sufficient to support a criminal prosecution, the Food Stamp Program holds administrative hearings. If a recipient is found to have committed an intentional program violation (IPV), he or she is disqualified from receiving food stamps for at least one or two years or, in cases of serious or repeated offenders, for life.
The Food Stamp Act provides severe criminal and civil penalties for stores that accept food stamps for anything but current purchases of food. For fraudulent transactions totaling $5,000 or more, the penalties are up to $250,000 in fines and up to twenty years in prison. Even lesser offenses are felonies punishable with $10,000 fines and five-year prison terms. In addition, retailers that violate food stamp law or regulations are disqualified from accepting food stamps in the future.
A store which violates the provisions of either the Food Stamp Act or the regulations may be disqualified from further participation in the Food Stamp Program. The Food Stamp Act provides that "(s)uch disqualification shall be for such period of time as may be determined in accordance with regulations issued pursuant to this chapter." 7 U.S.C.A. § 2020.1 The regulations provide the disqualification may be for a reasonable period of time, not to exceed three years. 7 C.F.R. § 272.6(a) (1975). The critical issue on this appeal is whether the judicial review provision of the Food Stamp Act precludes review of the sanction imposed under 7 C.F.R. § 272.6(a) (1975), once the underlying determination of violation is held to be valid. At least two Circuits have considered the identical issue and have reached differing decisions. A plain reading of § 2022 leads us to conclude that Congress granted the district courts full review of the agency's action when conducting a "de novo" proceeding, including review of the imposed sanction.
The administrative judicial review section of the Act, 7 U.S.C.A. § 2022,2 provides that whenever a store is disqualified under the provisions of § 2020, notice of the administrative action is issued, and the store aggrieved by such action may "file a written request for an opportunity to submit information in support of its position" to a Department of Agriculture review body, constituted in accordance with the Secretary's regulations. The Food and Nutrition Service, the currently designated agency review body, is empowered to review evidence which goes to the severity of the penalty, as well as evidence which establishes or refutes the violation itself. Goodman v. United States, 518 F.2d 505 (1975)
Therefore, if you have received a notice of administrative action, you would need to review it carefully and determine if you are able to continue with an administrative appeal.
