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This proposed rule would implement statutory provisions of the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill), the Agriculture Improvement Act of 2018 (the 2018 Farm Bill), and other language intended to deter retailer fraud, abuse, and non-compliance in the Supplemental Nutrition Assistance Program (SNAP). Stakeholders are SNAP retailers and communities in which SNAP retailers provide SNAP participants access to food, other Programs that require SNAP authorization or where reciprocal actions impact participation, and SNAP participants.

Statement of Need:

Current USDA SNAP regulations do not allow for the assessment of financial penalties in conjunction with periods of disqualification for SNAP violations.  Additionally, existing regulatory requirements do not directly address a number of retailer integrity concerns, such as firms that fail to report changes of ownership, firms that conspire to commit unauthorized redemptions, and firms that violate SNAP equal treatment provisions.

Summary of the Legal Basis:

This would implement statutory provisions of the Food, Conservation, and Energy Act of 2008, and the Federal Civil Penalties Inflation Adjustment of 2015.

Alternatives:

Unavailable

Anticipated Costs and Benefits:

The proposed rule is expected to increase the penalties assessed against firms found committing violations by FNS and, as a result, deter violations in SNAP.  FNS expects that the administrative costs associated with this proposed rule are minimal.

Risks:

N/A