Disqualification of vendors convicted of trafficking or illegal sales
(1) In general
(1)In general#
Except as provided in paragraph (4), a State agency shall permanently disqualify from participation in the program authorized under this section a vendor convicted of—
(A) trafficking in food instruments (including any voucher, draft, check, or access device (including an electronic benefit transfer card or personal identification number) issued in lieu of a food instrument under this section); or
(B) selling firearms, ammunition, explosives, or controlled substances (as defined in section 802 of title 21 ) in exchange for food instruments (including any item described in subparagraph (A) issued in lieu of a food instrument under this section).
(1)(A)#
trafficking in food instruments (including any voucher, draft, check, or access device (including an electronic benefit transfer card or personal identification number) issued in lieu of a food instrument under this section); or
(1)(B)#
selling firearms, ammunition, explosives, or controlled substances (as defined in section 802 of title 21 ) in exchange for food instruments (including any item described in subparagraph (A) issued in lieu of a food instrument under this section).
(2)Notice of disqualification#
The State agency shall—
(A) provide the vendor with notification of the disqualification; and
(B) make the disqualification effective on the date of receipt of the notice of disqualification.
(2)(A)#
provide the vendor with notification of the disqualification; and
(2)(B)#
make the disqualification effective on the date of receipt of the notice of disqualification.
(3)Prohibition of receipt of lost revenues#
A vendor shall not be entitled to receive any compensation for revenues lost as a result of disqualification under this subsection.
(4)Exceptions in lieu of disqualification#
(A) In general A State agency may permit a vendor that, but for this paragraph, would be disqualified under paragraph (1), to continue to participate in the program if the State agency determines, in its sole discretion according to criteria established by the Secretary, that— (i) disqualification of the vendor would cause hardship to participants in the program authorized under this section; or (ii) (I) the vendor had, at the time of the violation under paragraph (1), an effective policy and program in effect to prevent violations described in paragraph (1); and (II) the ownership of the vendor was not aware of, did not approve of, and was not involved in the conduct of the violation.
(B) Civil penalty If a State agency under subparagraph (A) permits a vendor to continue to participate in the program in lieu of disqualification, the State agency shall assess the vendor a civil penalty in an amount determined by the State agency, in accordance with criteria established by the Secretary, except that— (i) the amount of the civil penalty shall not exceed $10,000 for each violation; and (ii) the amount of civil penalties imposed for violations investigated as part of a single investigation may not exceed $40,000.
(4)(A)In general#
A State agency may permit a vendor that, but for this paragraph, would be disqualified under paragraph (1), to continue to participate in the program if the State agency determines, in its sole discretion according to criteria established by the Secretary, that—
(i) disqualification of the vendor would cause hardship to participants in the program authorized under this section; or
(ii) (I) the vendor had, at the time of the violation under paragraph (1), an effective policy and program in effect to prevent violations described in paragraph (1); and (II) the ownership of the vendor was not aware of, did not approve of, and was not involved in the conduct of the violation.