Sec. 10.54.01.14. Action Affecting Participation During a Certification Period

A. A local agency may disqualify a participant in the middle of a certification period for Program abuse, which includes but is not limited to:

(1) The sale or exchange of food instruments or food obtained with a food instrument;

(2) Dual participation;

(3) Making false or misleading statements or intentionally misrepresenting, concealing, or withholding information in order to obtain benefits;

(4) Verbal or physical abuse of or threat of physical abuse to Program or vendor staff;

(5) Receipt from food vendors of cash or credit toward the purchase of unauthorized food or other items of value instead of authorized supplemental foods; and

(6) Failure to pick up food benefits for 2 consecutive issue months.

B. Funding Shortages.

(1) If the State agency experiences funding shortages, it may discontinue Program benefits to participants, but only after exploring alternative actions.

(2) The State agency may discontinue benefits by:

(a) Disqualifying a priority level of participants; or

(b) Withholding benefits to a priority level with the expectation of providing benefits again when funds are available.

(3) When the State agency elects to restrict benefits to a priority level of participants due to insufficient funds for a period of time:

(a) The State agency shall discontinue benefits for:

(i) The least possible number of participants;

(ii) Those participants whose nutritional and health status would be least impaired by the discontinuation of Program benefits; and

(b) A local agency may not enroll new participants in restricted priority levels during this period.

C. Ineligibility. A local agency shall disqualify a participant in the middle of a certification period if, on the basis of a reassessment of Program eligibility status, the individual is determined ineligible for Program benefits.