Mar 21, 2024

Transfer of Ownership Civil Money Penalty – TOCMP

The Consequences of Selling or Transferring a Store Disqualified from SNAP

Civil Money Penalties for Disqualified SNAP Retailers

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).

Payment Options and Requirements

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**

Critical Payment Deadlines

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

When a retailer is disqualified or sanctioned, the USDA reserves the right to disclose information about the retailer to the public. This includes using the retailer’s information, social security numbers, and EINs to collect and report additional information.

Information Sharing with Other Agencies

The USDA can disclose information to: – Other federal and state agencies – Private collection companies, in order to collect debts owed – The Treasury Department for administrative or tax offsets – The Department of Justice for litigation – Consumer reporting agencies in accordance with the Fair Credit Reporting Act

Requesting a Review

If a retailer wishes to contest the penalty, they can submit a written request for review to the Chief Administrative Review Branch of the USDA in Alexandria, Virginia. The request must be submitted and postmarked by the 10th calendar day after receiving the notification letter. If the 10th day falls on a weekend or holiday, the due date is the next business day.

Payment Plan and Interest

The USDA is willing to work with retailers to establish a payment plan, but they have limited discretion and must adhere to the regulations.

Transfer of Ownership Civil Money Penalty – TOCMP