Owning or running a retail business is means dealing with lots of little but extremely important decisions. Over time, officials in the American government have made it possible for American families to get access to programs that intended to help ensure they are getting enough daily calories. This program is known as SNAP. The Supplemental Nutrition Assistance Program is aimed at needy families in the United States. It is a partnership with the public, retailers and the taxpayers. While the program is much loved, it is also one that has a great many rules and regulations. Many retailers choose to participate. Doing so has many advantages but it can also have certain drawbacks. Retailers must be conscious of the way the program is intended to be used. Many seemingly basic products are not allowed to be purchased. Retailers who allow for such purchases can get in trouble with the program’s supervisors.

Legal Violations

This program is highly monitored by officials on a frequent basis. Those retailers who are found to be in violation of the rules of the program are typically notified via what is known as a charging letter. The letter lays out any violations that the retailer has broken. This is usually a very detailed letter. In many instances, the language used is very unclear. One of the most common terms typically seen in a charging letter is what is known as a Civil Money Penalty or CMP. The CMP is important. A Civil Money Payment is a means of discharging your obligations under the law and moving past any potential violations. In other words, it’s a way out that allows the retailer to continue to access the right to offer the program to their clients even if they have been found in violation of certain SNAP rules.

SNAP Civil Money Penalties

Members of Congress are well aware that it is possible for businesses accepting SNAP payments to make mistakes. They are also well aware that many businesses are a lifeline for many impoverished communities. Community members may only have a handful of choices when it comes to buying the food they need. Therefore, the government has provided retailers with a method of avoiding being disqualified from the program. This is where the CMP comes into play. Basically, it states that a retailer may choose to pay a fine and still remain in the program. The fine is considered a warning that the retailer needs to take steps to make sure they are compliance with the full scope of all SNAP regulations. The penalty imposed by the government for misuse of SNAP, can be no more than $59,000 in total. The fine can be calculated via the use of the USDA’s regulations. They will look at a store owner’s EBT transaction data and come up with an a fine. This must be paid if you are to continue participating in this program.

How Can You Qualify?

Accepting a CMP has many advantages for retailers. It allows them to continue to serve their clients by accepting SNAP payments. Keep in mind that violating SNAP laws can result in fines up to $100,000. It is also important to keep in mind that certain conditions apply. Not every violation can be waved away by agreeing to the CMP. Any retailer should know what options they have and why. Accepting the CMP may mean making all sorts of changes in how the retailer does business. However, the results can be quite useful. They can also serve as a reminder to be more mindful of the rules of the program.

For example, in order to qualify for this program, the retailer must have a SNAP compliance on hand and in writing. Any employee handbook should have a detailed list of SNAP requirements that the employee can review as needed during business hours. This information should also be updated as needed. Rules governing SNAP may change from time to time. All retailers need to stay on top of them. They also need to make sure their employees are aware of such changes. That means paying close attention to the world of SNAP regulations and how the program is governed.

Before the Allegations

Store owners who wish to qualify for the CMP must also be able to demonstrate that they had a compliance policy in effect before any SNAP violations were noted. This can take many forms. For example, a store owner or manager can point to written records kept on hand. These records should ideally be extremely detailed. This includes names and dates as well as other data indicating an awareness of all SNAP regulations. An investigator will expect permission to examine these records before making any CMP decisions.

The employer should also be able to demonstrate they have a training program in place. The employer should have taken detailed steps to ensure that all those who work with SNAP recipients are aware of the regulations they need to follow. Employees are required to sign documents indicating they are aware of such procedures and how to carry them out.

Any store owner must also be able to show they did not personally benefit from any SNAP violations. For example, if SNAP payments were accepted in return for prohibited items, they need to illustrate they did not gain monetary from this act.

If a store owner can successfully meet all of these requirements, they can agree to pay the fines imposed and continue to accept SNAP payments. A CMP can be a lifesaver but it can also require a lot of effort. That is why having legal counsel during this process is a vitally important step.