[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