CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS.

SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS. Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) is amended—(1) by striking the section designation and heading and all that follows through the end of subsection (a) and inserting the following:“SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS.“(a) Disqualification.—“(1) In general.—An approved retail food store or wholesale food concern that violates a provision of this Act or a regulation under this Act may be—122 STAT. 1876“(A) disqualified for a specified period of time from further participation in the supplemental nutrition assistance program;“(B) assessed a civil penalty of up to $100,000 for each violation; or“(C) both.“(2) Regulations.—Regulations promulgated under this Act shall provide criteria for the finding of a violation of, the suspension or disqualification of and the assessment of a civil penalty against a retail food store or wholesale food concern on the basis of evidence that may include facts established through on-site investigations, inconsistent redemption data, or evidence obtained through a transaction report under an electronic benefit transfer system.” ;(2) in subsection (b)—(A) by striking “(b) Disqualification” and inserting the following:“(b) Period of Disqualification.—Subject to subsection (c), a disqualification”;(B) in paragraph (1), by striking “of no less than six months nor more than five years” and inserting “not to exceed 5 years”;(C) in paragraph (2), by striking “of no less than twelve months nor more than ten years” and inserting “not to exceed 10 years”;(D) in paragraph (3)(B)—(i) by inserting “or a finding of the unauthorized redemption, use, transfer, acquisition, alteration, or possession of EBT cards” after “concern” the first place it appears; and(ii) by striking “civil money penalties” and inserting “civil penalties”; and(E) by striking “civil money penalty” each place it appears and inserting “civil penalty”;(3) in subsection (c)—(A) by striking “(c) The action” and inserting the following:“(c) Civil Penalty and Review of Disqualification and Penalty Determinations.—“(1) Civil penalty.—In addition to a disqualification under this section, the Secretary may assess a civil penalty in an amount not to exceed $100,000 for each violation.“(2) Review.—The action”; and(B) in paragraph (2) (as designated by subparagraph (A)), by striking “civil money penalty” and inserting “civil penalty”;(4) in subsection (d)—(A) by striking “(d)” and all that follows through “. The Secretary shall” and inserting the following:“(d) Conditions of Authorization.—“(1) In general.—As a condition of authorization to accept and redeem benefits, the Secretary may require a retail food store or wholesale food concern that, pursuant to subsection (a), has been disqualified for more than 180 days, or has been subjected to a civil penalty in lieu of a disqualification period of more than 180 days, to furnish a collateral bond or irrevocable letter of credit for a period of not more than 5 years 122 STAT. 1877 to cover the value of benefits that the store or concern may in the future accept and redeem in violation of this Act.“(2) Collateral.—The Secretary also may require a retail food store or wholesale food concern that has been sanctioned for a violation and incurs a subsequent sanction regardless of the length of the disqualification period to submit a collateral bond or irrevocable letter of credit.“(3) Bond requirements.—The Secretary shall”;(B) by striking “If the Secretary finds” and inserting the following“(4) Forfeiture.—If the Secretary finds”; and(C) by striking “Such store or concern” and inserting the following:“(5) Hearing.—A store or concern described in paragraph (4)”;(5) in subsection (e), by striking “civil money penalty” each place it appears and inserting “civil penalty”; and(6) by adding at the end the following:“(h) Flagrant Violations.—“(1) In general.—The Secretary, in consultation with the Inspector General of the Department of Agriculture, shall establish procedures under which the processing of program benefit redemptions for a retail food store or wholesale food concern may be immediately suspended pending administrative action to disqualify the retail food store or wholesale food concern.“(2) Requirements.—Under the procedures described in paragraph (1), if the Secretary, in consultation with the Inspector General, determines that a retail food store or wholesale food concern is engaged in flagrant violations of this Act (including regulations promulgated under this Act), unsettled program benefits that have been redeemed by the retail food store or wholesale food concern—“(A) may be suspended; and“(B)(i) if the program disqualification is upheld, may be subject to forfeiture pursuant to section 15(g); or“(ii) if the program disqualification is not upheld, shall be released to the retail food store or wholesale food concern.“(3) No liability for interest.—The Secretary shall not be liable for the value of any interest on funds suspended under this subsection.”.