[Federal Register Volume 59, Number 102 (Friday, May 27, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13055]
Federal Register / Vol. 59, No. 102 / Friday, May 27, 1994 /
[[Page Unknown]]
[Federal Register: May 27, 1994]
VOL. 59, NO. 102
Friday, May 27, 1994
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Parts 271 and 278
[Amendment No. 354]
Food Stamp Program: Modifying the Limit on Civil Money Penalties
for Trafficking in Benefit Redemption Instruments
AGENCY: Food and Nutrition Service, USDA.
ACTION: Final rule.
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SUMMARY: The Omnibus Budget Reconciliation Act of 1993 includes several
provisions which amend the Food Stamp Act of 1977, as amended (the
Act). This final rule implements those nondiscretionary provisions
pertaining to increased limits for civil money penalties for
trafficking in benefit redemption instruments and for selling firearms,
ammunition, explosives, or controlled substances for benefit redemption
instruments. The intended effect of this rule is to raise the amounts
of civil money penalties paid by authorized firms for the types of
violations specified.
DATES: The provisions of this final rule are effective on October 1,
1993.
FOR FURTHER INFORMATION CONTACT: Suzanne Fecteau, Coupon and Retailer
Branch, Benefit Redemption Division, Food and Nutrition Service,
Alexandria, Virginia, 22302, (703) 305-2419.
SUPPLEMENTARY INFORMATION:
Classification
Executive Order 12866
This final rule has been determined to be not significant for
purpose of Executive Order 12866 and therefore has not been reviewed by
OMB.
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 and related Notice(s) to 7 CFR part 3015, subpart V (48 FR 29115,
June 24, 1983, or 48 FR 54317, December 1, 1983, as appropriate, and
any subsequent notices that may apply), this program is excluded from
the scope of Executive Order 12372 which requires intergovernmental
consultation with State and local officials.
Regulatory Flexibility Act
This rule has been reviewed with regard to the requirements of the
Regulatory Flexibility Act of 1980 (Pub. L. No. 96-354). The
Administrator of the Food and Nutrition Service has certified that this
action does not have a significant economic impact on a substantial
number of small entities. The rule would have almost no impact on the
vast majority of authorized firms, most of which follow the program
rules carefully.
Paperwork Reduction Act
This rule does not contain recordkeeping or reporting requirements
subject to review by the Office of Management and Budget under the
Paperwork Reduction Act of 1980 (44 U.S.C. 3507).
Executive Order 12778
This final 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 ``Effective Date'' paragraph of this
preamble. Prior to any judicial challenge to the provisions of this
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-quality control (QC) liabilities) or Part 283 (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.
Public Participation and Justification for Less than a Thirty-day
Effective Date
This action is being finalized without prior notice or public
comment under authority of 5 U.S.C. 553(b)(3)(A) and (B). The matters
addressed by this rulemaking are nondiscretionary. The provisions in
this rule have already been implemented and were effective on October
1, 1993. Therefore, the Department has determined in accordance with 5
U.S.C. 553(b) that Notice of Proposed Rulemaking and Opportunity for
Public Comments is unnecessary and contrary to the public interest and,
in accordance with 5 U.S.C. 553(d), finds that good cause exists for
making this action effective prior to the date of publication.
Background
Section 344 of the Hunger Prevention Act of 1988, Pub. L. No. 100-
435, provided the Secretary with authority to impose a civil money
penalty (CMP) of up to $20,000 per violation in lieu of a permanent
disqualification of a firm for trafficking in food stamps or other
program benefit instruments, if the Secretary determines that there is
substantial evidence that the firm had an effective policy and program
in effect to prevent trafficking violations. Section 1743 of the Food,
Agriculture and Trade Act of 1990, Pub. L. No. 101-624, limited the CMP
authority to $40,000 over a two-year period, and extended the same
authority to firms which exchange firearms, ammunition, explosives or
controlled substances for coupons. Current regulations at 7 CFR
278.6(j) specify, in accordance with the Act, that such CMP's shall not
exceed $20,000 for each violation, and shall not exceed $40,000 during
a two-year period.
Section 13943 of the Omnibus Budget Reconciliation Act of 1993
(Pub. L. No. 103-66) further amends Section 12(b)(3)(B) of the Act 7
U.S.C. 2021(b)(3)(B) to modify the monetary cap on CMPs by applying the
$40,000 cap to each single investigation, rather than to a two-year
period of time. Further, Section 13944 of Pub. L. No. 103-66 amends
Section 12(b)(3)(C) of the Act to make the same modification to the
$40,000 cap on CMPs for the sale of firearms, ammunition, explosives,
or controlled substances for food stamps (or other benefit redemption
instruments).
Accordingly, this rulemaking provides at 7 CFR 278.6 that a CMP in
lieu of permanent disqualification for trafficking may not exceed
$40,000 for all violations occurring during a single investigation. The
$20,000 limit per trafficking violation in a single investigation
remains unchanged. This rulemaking also makes a conforming change in
the definition of trafficking at 7 CFR 271.2. by eliminating
unnecessary wording.
List of Subjects
7 CFR Part 271
Administrative practice and procedure, Food Stamps, Grant
programs--social programs.
7 CFR Part 278
Administrative practice and procedure, Banks, Banking, Claims, Food
stamps, Groceries--retail, Groceries, General line--wholesalers,
Penalties.
Accordingly, 7 CFR Parts 271 and 278 are amended as follows:
1. The authority citation for Parts 271 and 278 continues to read
as follows:
Authority: 7 U.S.C. 2011-2032
Sec. 271.2 [Amended]
2. In Sec. 271.2, the definition of ``Trafficking'' is amended by
removing the words ``the term is.''
PART 278--PARTICIPATION OF RETAIL FOOD STORES, WHOLESALE FOOD
CONCERNS AND INSURED FINANCIAL INSTITUTIONS
3. In Sec. 278.6, the first sentence of the introductory text of
paragraph (j) is revised to read as follows:
Sec. 278.6 Disqualification of retail food stores and wholesale food
concerns, and imposition of civil money penalties in lieu of
disqualifications.
* * * * *
(j) Amount of civil money penalty in lieu of permanent
disqualification for trafficking. A civil money penalty assessed in
accordance with Sec. 278.6(i) shall not exceed $20,000 for each
violation and shall not exceed $40,000 for all violations occurring
during a single investigation. * * *
* * * * *
4. In Sec. 278.9, a new paragraph (j) is added to read as follows:
Sec. 278.9 Implementation of amendments relating to the participation
of retail food stores, wholesale food concerns and insured financial
institutions.
* * * * *
(j) Amendment No. 354. The program changes made to Sec. 271.2 and
Sec. 278.6 by this amendment are effective October 1, 1993.
Dated: May 23, 1994.
William E. Ludwig,
Administrator Food and Nutrition Service.
[FR Doc. 94-13055 Filed 5-26-94; 8:45 am]
BILLING CODE 3410-30-U