Can My SNAP Authorization Be Revoked? Legal Options

Can My SNAP Authorization Be Revoked? Legal Options

Losing your SNAP (Supplemental Nutrition Assistance Program) authorization can be devastating for low-income families who rely on these benefits to put food on the table. Unfortunately, violations of SNAP rules can result in penalties like temporary or permanent disqualification from the program. So what happens if you receive notice that your SNAP benefits are being revoked? What are your options for fighting it?

Reasons SNAP Authorization Can Be Revoked

There are a few key reasons a retailer or recipient may face SNAP sanctions like revocation of benefits:

• Trafficking – This refers to illegally exchanging SNAP benefits for cash. Both retailers and recipients can be penalized for trafficking.
• Retailer application fraud – Falsifying information on a retailer’s application to get approved for SNAP when they are not eligible.
• Recipient application errors or fraud – Unintentionally or intentionally providing incorrect information on a SNAP application.
• Failure to comply with SNAP rules – Not following program rules around what can be purchased with benefits, how benefits are handled, etc.

SNAP benefits are administered by the U.S. Department of Agriculture (USDA). They monitor for violations through undercover investigations, transaction data, and tips. If they find evidence of violations, they can impose sanctions like revocation of benefits.

Penalties for SNAP Violations

There are a few main penalties the USDA can impose for SNAP violations:

• Permanent disqualification – For the most serious offenses like trafficking, falsifying an application, or multiple violations, the USDA can permanently revoke a retailer or recipient’s SNAP authorization.
• Temporary disqualification – For less serious first-time offenses, the USDA may suspend a retailer or recipient’s SNAP benefits for 6 months to 5 years.
• Fines – Civil monetary penalties may be imposed instead of disqualification in some cases.
• Criminal charges – Trafficking SNAP benefits for cash or falsifying applications can potentially lead to criminal prosecution.

Losing the ability to accept SNAP/EBT is devastating for retailers who depend on low-income shoppers. Even temporary disqualification can destroy a business. For recipients, losing benefits means losing access to food assistance.

Responding to Notice of SNAP Revocation

If you receive notice that your SNAP authorization is being revoked, you have the right to respond and appeal. Here are some tips:

• Carefully review the notice and allegations. Get written documentation of the claims against you.
• Respond within 10 days contesting the allegations. Explain why you disagree with the USDA’s findings.
• Provide evidence refuting the claims. This may include records, documentation, etc.
• For retailers, describe the hardship disqualification would cause your business and customers.
• Note any mitigating circumstances like health issues, disability, language barriers, etc.

This response will be considered by the USDA in determining the final penalty. In some cases, they may overturn the revocation or reduce the disqualification period.

Requesting an Administrative Review

If the USDA moves forward with revoking your SNAP authorization, you have the right to an administrative appeal. This is your chance to present evidence and make legal arguments before an administrative review officer outside the local USDA office. According to 7 CFR 279.5, you must file your appeal request within 10 days of receiving the notice of action. Key steps include:

• Submit a written request for review including your store name/address, name of person requesting review, and the date you received notice.
• Explain why you disagree with the action and believe it should be reversed. Cite relevant evidence.
• Provide supporting documentation like sales records, inventory purchase invoices, training materials, etc.
• Describe how disqualification would economically harm your business and SNAP customers.
• You may retain legal counsel to help formulate your arguments and gather evidence.

Except in trafficking cases, your revocation will be put on hold during the appeals process so you can continue accepting SNAP benefits. The review officer will issue a final agency decision determining whether violations occurred and if the sanctions were appropriate. This decision can uphold, modify, or reverse the USDA’s action. Make sure to meet all deadlines for submitting your appeal request and evidence.

Pursuing a Reversal in Court

If your administrative appeal is denied, you can pursue the matter in federal district court under 7 USC 2023. This involves filing a writ of mandamus asking the court to compel the USDA to reverse its decision. Key steps include:

• Filing a complaint and request for injunctive relief within 30 days of receiving the administrative review decision.
• Providing evidence the USDA’s decision was invalid or contrary to SNAP statutes/regulations.
• Requesting the court issue an injunction to stop the disqualification until the case is decided.
• Making legal arguments about how your due process rights were violated.
• Having an attorney represent you and argue before the judge.

The court will determine if the USDA acted in an “arbitrary and capricious” manner in revoking your SNAP authorization. If so, the court can issue an order reversing the USDA’s decision and reinstating your SNAP eligibility. However, court cases can be complex, lengthy and expensive.

Strategies for Restoring Eligibility

If you lose your SNAP authorization, whether temporarily or permanently, there may still be options for restoring your eligibility:

• Complete disqualification period – If penalized with a set disqualification period, you may reapply after it ends.
• Change ownership – For retailers, selling or transferring the business may allow the new owner to apply.
• Settle claim – Repaying any fraudulent overissuance claims can help restore eligibility.
• Improve compliance – Implementing staff training and inventory systems may convince the USDA you’ve fixed issues.
• Seek settlement – Negotiating an agreement with the USDA’s counsel may shorten or avoid disqualification.

It’s recommended to consult with a lawyer experienced in SNAP cases to discuss the best options for your situation. Don’t assume revocation is necessarily permanent without exploring ways to either fight, reverse or negotiate the penalties.

Avoiding Problems that Lead to SNAP Revocation

The best protection against losing your SNAP authorization is taking proactive steps to maintain compliance and prevent violations:

• Carefully review SNAP rules and train staff on proper handling of EBT transactions.
• Implement inventory tracking and reconciliation procedures.
• Conduct self-audits and mystery shopping to identify potential issues.
• Post the USDA hotline for reporting trafficking and promptly investigate any alleged violations.
• Establish an internal compliance program with safeguards and oversight.
• Consult with an attorney experienced in SNAP cases to ensure your policies and procedures meet all regulatory requirements.

Documenting and demonstrating to the USDA that you take compliance seriously can help avoid or mitigate any penalties if errors occur despite your best efforts.

Losing SNAP authorization can be catastrophic for retailers and recipients. But with prompt action and legal advocacy, you may be able to overturn, reduce or negotiate penalties. Consulting experienced counsel provides the best opportunity for preserving your SNAP eligibility.