1. (a) Whoever embezzles, willfully misapplies, steals or obtains by fraud any funds, assets or property provided under Section 17 of the Child Nutrition Act of 1966, as amended, whether received directly or indirectly from USDA, or whoever receives, conceals or retains such funds, assets or property for his or her own interest, knowing such funds, assets or property have been embezzled, willfully misapplied, stolen, or obtained by fraud shall:

   1. (1) If the funds, assets, or property have a value of $100 or more, be fined not more than $10,000 or imprisoned not more than five years, or both.
   2. (2) If the funds, assets, or property have a value less than $100, shall be fined not more than $1,000 or imprisoned not more than one year, or both.
   3. (3) Be suspended from receiving supplemental foods for up to three months, or until the Department has received repayment for financial loss.
   4. (4) Return any funds or property so obtained.
2. (b) The local agency shall refer food vendors and participants who abuse the Program to state or local authorities.

Note: Authority cited: Sections 311 and 312, Health and Safety Code. Reference: Sections 315.5 and 316, Health and Safety Code.

History

1. New section filed 8-23-89; operative 8-23-89 (Register 89, No. 38). Article 12. Records and Reports