63-105 COUPONS AS OBLIGATIONS OF THE UNITED STATES, CRIMES 63-105

AND OFFENSES

.1 Coupons as Obligations

Pursuant to Section 15(d) of the Food Stamp Act, as amended, coupons are an obligation of the United States within the meaning of Section 8, Title 18 of the United States Code, "Crimes and Criminal Procedure," relative to counterfeiting, misuse and alteration of obligations of the United States are applicable to coupons.

.2 Penalties

Any unauthorized issuance, use, transfer, acquisition, alteration, possession, or presentation of coupons, authorization documents, or access devices may subject any individual, partnership, corporation, or other legal entity to prosecution under Sections 15(b) and (c) of the Food Stamp Act or under any other applicable federal, state or local law, regulation or ordinance.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-98-01 Effective 2/1/98

Page 72

FOOD STAMP REGULATIONS

63-105 (Cont.) GENERAL PROVISIONS Regulations

63-105 COUPONS AS OBLIGATIONS OF THE UNITED STATES, CRIMES 63-105

AND OFFENSES (Continued)

.21 Coupon Issuers

.211 Any coupon issuer or any officer, employee or agent, thereof convicted of failing to provide the monthly reports required in Section 63-702 or convicted of violating Sections 63-600 or 63-700 shall be subject to a fine of up to $1,000, or imprisoned for up to one year, or both.

.212 Any coupon issuer or any officer, employee or agent, thereof convicted of knowingly providing false information in the reports required under Section 63-702 shall be subject to a fine of up to $10,000, or imprisoned up to five years, or both.

.3 Security for Coupons, Authorization Documents and Access Devices

All individuals, partnerships, corporations or other legal entities, including CWDs and their delegatees, having custody, care and control of coupons, authorization documents and access devices shall, at all times, take all precautions necessary to avoid the following:

.31 The acceptance, transfer, negotiation, or use of spurious, altered, or counterfeit coupons, authorization documents and access devices;

.32 The unauthorized use, transfer, acquisition, alteration or possession of coupons, authorization documents and access devices; and

.33 The theft, embezzlement, loss, damage or destruction of coupons, authorization documents and access devices as specified in Sections 63-601.3 and 63-701.2.

NOTE: Authority cited: Sections 10554 and 18904, Welfare and Institutions Code. Reference: 7 CFR 271.2 and Sections 10554 and 18904, Welfare and Institutions Code.