---
kind: "section"
citation: "7 C.F.R. § 284.1"
title: "7"
number: "284.1"
heading: "Pandemic Electronic Benefits Transfer (P-EBT)."
url: "https://uscodex.org/cfr/7/284.1"
---

# §284.1. Pandemic Electronic Benefits Transfer (P-EBT).

- (a) **Overview.** Section 1101 of the Families First Coronavirus Response Act (FFCRA; Pub. L. 116-127), as amended, authorized supplemental allotments to certain households. These benefits shall be referred to as Pandemic Electronic Benefits Transfer (P-EBT) benefits throughout this section. This section establishes the retailer integrity regulations for P-EBT for retailers in any State as defined in [Section 3(r)](/cfr/7/3.md?p=r) of the Food and Nutrition Act.
- (b) **Definitions.** For this section:
  - (1) Trafficking means the activities described in the definition of trafficking at [§ 271.2](/cfr/7/271.2.md) of this chapter when such activities involve P-EBT benefits.
  - (2) Firm's practice means the activities described in the definition of firm's practice at [§ 271.2](/cfr/7/271.2.md) of this chapter when such activities involve P-EBT benefits.
  - (3) **Involving P-EBT benefits—** or involve P-EBT benefits means activities involving P-EBT benefits as well as supplemental nutrition assistance program (SNAP) benefits, or only P-EBT benefits.
- (c) **Participation of retail food stores and wholesale food concerns, and redemption of P-EBT benefits.** Requirements and restrictions on the participation of retail food stores and wholesale food concerns and the redemption of coupons described at §§ [278.2](/cfr/7/278.2.md), [278.3](/cfr/7/278.3.md) and [278.4](/cfr/7/278.4.md) of this chapter, including the acceptance of coupons for eligible food at authorized firms, also apply to activities involving P-EBT benefits.
- (d) **Firm eligibility standards.** A firm may be subject to the following actions described at [§ 278.1](/cfr/7/278.1.md) of this chapter for noncompliance or violations involving P-EBT benefits:
  - (1) The requirements described at [§ 278.1(b)(4)](/cfr/7/278.1.md?p=b-4) of this chapter regarding a collateral bond or irrevocable letter of credit for applicant firms with certain sanctions apply to applicant firms with sanctions imposed for violations involving P-EBT benefits. The amount of the collateral bond or irrevocable letter of credit shall be calculated in accordance with [§ 278.1(b)(4)(i)(D)](/cfr/7/278.1.md?p=b-4-i-D) and shall also include the amount of P-EBT benefit redemptions when calculating the average monthly benefit redemption volume.
  - (2) Authorization shall be denied or withdrawn based on a determination by the Food and Nutrition Service (FNS) that a firm lacks or fails to maintain necessary business integrity and reputation, in accordance with the standards and time periods described at § [278.1(b)(3)](/cfr/7/278.1.md?p=b-3), [(k)(3)](/cfr/7/278.1.md?p=k-3), and [(l)(1)(iv)](/cfr/7/278.1.md?p=l-1-iv) of this chapter. When making such determinations, FNS shall consider the criteria referred to in § [278.1(b)(3)](/cfr/7/278.1.md?p=b-3), [(k)(3)](/cfr/7/278.1.md?p=k-3), and [(l)(1)(iv)](/cfr/7/278.1.md?p=l-1-iv) where the underlying activities involve P-EBT benefits.
  - (3) Firm authorization shall be denied or withdrawn for failure to pay any claims, fines, or civil money penalties in the manner described at § [278.1(k)(7)](/cfr/7/278.1.md?p=k-7) and [(l)(1)(v)](/cfr/7/278.1.md?p=l-1-v) and [(vi)](/cfr/7/278.1.md?p=l-1-vi) of this chapter where such sanctions were imposed for violations involving P-EBT benefits.
- (e) **Penalties.** For firms that commit certain violations described at §§ [278.6](/cfr/7/278.6.md) and [278.2](/cfr/7/278.2.md) of this chapter where such violations involve P-EBT benefits, FNS shall take the corresponding action prescribed at [§ 278.6](/cfr/7/278.6.md) or [§ 278.2](/cfr/7/278.2.md) for that violation. For the purposes of assigning a period of disqualification, a warning letter shall not be considered to be a sanction. Specifically, FNS shall:
  - (1) Disqualify a firm permanently, as described at [§ 278.6(e)(1)(i)](/cfr/7/278.6.md?p=e-1-i) of this chapter, for trafficking, as defined at [§ 284.1(b)(1)](#b-1) of this chapter, or impose a civil money penalty in lieu of permanent disqualification, as described at [§ 278.6(i)](/cfr/7/278.6.md?p=i) of this chapter, where such compliance policy and program is designed to prevent violations of regulations of this section;
  - (2) Disqualify a firm permanently, as described at [§ 278.6(e)(1)(ii)](/cfr/7/278.6.md?p=e-1-ii) of this chapter, for any violation involving P-EBT benefits committed by a firm that had already been sanctioned at least twice before under this section or [part 278](/cfr/7/part278.md) of this chapter;
  - (3) Disqualify the firm for 5 years, as described at [§ 278.6(e)(2)(v)](/cfr/7/278.6.md?p=e-2-v) of this chapter, or for 3 years, as described at [§ 278.6(e)(3)(iv)](/cfr/7/278.6.md?p=e-3-iv) of this chapter, for unauthorized acceptance violations involving P-EBT benefits, and impose fines, as described at [§ 278.6(m)](/cfr/7/278.6.md?p=m) of this chapter, for unauthorized acceptance violations involving P-EBT benefits;
  - (4) Disqualify the firm for 5 years in circumstances described at [§ 278.6(e)(2)](/cfr/7/278.6.md?p=e-2) of this chapter when the amount of redemptions, which shall also include the amount of P-EBT redemptions, exceed food sales for the same period of time, as described at § [278.6(e)(2)(ii)](/cfr/7/278.6.md?p=e-2-ii), [(iii)](/cfr/7/278.6.md?p=e-2-iii), and [(iv)](/cfr/7/278.6.md?p=e-2-iv);
  - (5) Disqualify the firm for 3 years as described at [§ 278.6(e)(3)(ii)](/cfr/7/278.6.md?p=e-3-ii) of this chapter for situations described at [§ 278.6(e)(2)](/cfr/7/278.6.md?p=e-2) of this chapter involving P-EBT benefits;
  - (6) Disqualify the firm for 1 year for credit account violations as described at §§ [278.6(e)(4)(ii)](/cfr/7/278.6.md?p=e-4-ii) and [278.2(f)](/cfr/7/278.2.md?p=f) of this chapter, where such violations involve P-EBT benefits;
  - (7) Disqualify the firm for ineligibles violations for such circumstances and corresponding time periods as described at § [278.6(e)(2)(i)](/cfr/7/278.6.md?p=e-2-i), [(e)(3)(i)](/cfr/7/278.6.md?p=e-3-i), [(e)(4)(i)](/cfr/7/278.6.md?p=e-4-i), and [(e)(5)](/cfr/7/278.6.md?p=e-e-5) of this chapter, where such violations involve P-EBT benefits;
  - (8) Double the appropriate period of disqualification for a violation, as described at [§ 278.6(e)(6)](/cfr/7/278.6.md?p=e-6) of this chapter, where such violation involves P-EBT benefits, when the firm has once before been assigned a sanction under this section or [part 278](/cfr/7/part278.md) of this chapter;
  - (9) Issue a warning letter to the violative firm when violations are too limited to warrant a period of disqualification, as described at [§ 278.6(e)(7)](/cfr/7/278.6.md?p=e-7) of this chapter, where such violations involve P-EBT benefits;
  - (10) Impose a civil money penalty for hardship or transfer of ownership, as described at [§ 278.6(g)](/cfr/7/278.6.md?p=g) of this chapter, in amounts calculated using the described formula at [§ 278.6(g)](/cfr/7/278.6.md?p=g), which shall also include the relevant amount of P-EBT redemptions when calculating the average monthly benefit redemptions; and
  - (11) Impose a civil money penalty in lieu of permanent disqualification for trafficking as described at [§ 278.6(j)](/cfr/7/278.6.md?p=j) of this chapter in an amount calculated using the described formula at [§ 278.6(j)](/cfr/7/278.6.md?p=j), which shall also include the relevant amount of P-EBT redemptions when calculating the average monthly benefit redemptions.
- (f) **Claims.** The standards for determination and disposition of claims described at [§ 278.7](/cfr/7/278.7.md) of this chapter apply to P-EBT benefits.
- (g) **Administrative and Judicial review.** Firms aggrieved by administrative action under paragraphs [(d)](#d), [(e)](#e), and [(f)](#f) of this section may request administrative review of the administrative action with FNS in accordance with [part 279](/cfr/7/part279.md), [subpart A](/cfr/7/subpartA.md), of this chapter. Firms aggrieved by the determination of such an administrative review may seek judicial review of the determination under [5 U.S.C. 702 through 706](/usc/5/702..706.md).

## Notes

### Authority

Authority: Pub. L. 116-127, 134 Stat. 178.

### Source

Source: 85 FR 70049, Nov. 4, 2020, unless otherwise noted.