Transfer of Ownership Civil Money Penalty - TOCMP.

The United States Department of Agriculture (USDA) has the authority to impose civil money penalties on retailers who sell or transfer a store that has been permanently disqualified from the Supplemental Nutrition Assistance Program (SNAP). This means that if a store owner is permanently disqualified from participating in SNAP, they will be fined a civil money penalty when they sell or transfer the store.

Legal Basis for Civil Money Penalties

The Food and Nutrition Act of 2008, as amended in 7 USC Section 2021 and Section 278 of Title 7 of the Code of Federal Regulations (CFR), grants the USDA the power to impose civil money penalties. According to Section 278.6(f)(2) of the CFR, if a retail food store that has been disqualified is sold or ownership is transferred, the person or legal entity selling or transferring ownership will be subject to and liable for a civil money penalty.

Calculation and Payment of Civil Money Penalties

If you sell or transfer ownership of your store after disqualification, you will be liable for a civil money penalty as outlined in SNAP regulations Sections 278.6(f)(2), (3), and (4). The amount of the penalty will be calculated based on SNAP regulations at 278.6(g).

You have the option to pay the penalty in one lump sum or in installments. To arrange a payment plan, you can contact the Centralized Receivables Service at the USDA by calling 1-855-549-4285. Payments can be made online using credit cards, bank checking or savings accounts. Alternatively, you can mail a check to USDA - FNS, SNAP - RETAILER/WHOLESALER, P.O. Box 2411, Oshkosh, WI, 54903.

The penalty must be paid in full or a payment plan must be established within 15 calendar days of receiving the notification letter. If the penalty is not paid, the USDA may disclose information about the retailer to the public.

Disclosure of Retailer Information