Fla. Admin. Code R. 5P-1.004
(1) Child Nutrition Programs and Supplemental Food Programs.
(a) Seriously Deficient.
1. A Sponsor or Recipient Agency, and its principals, including their board members, corporate officials, and the officials identified on the Sponsor or Recipient Agency’s application in the Florida Automated Nutrition System or other documentation available to the department, shall be declared by the department as Seriously Deficient if:
a. The Sponsor or Recipient Agency fails to comply with provisions outlined in the Child Nutrition Programs Agreement FDACS-01716, Rev. 09/25, which is hereby incorporated by reference and available online at HYPERLINK "http://www.flrules.org/Gateway/reference.asp?No=Ref-19049"http://www.flrules.org/Gateway/reference.asp?No=Ref-19049, and by email request to the department at InfoFNW@fdacs.gov;
b. The Sponsor or Recipient Agency has failed to submit or implement a Corrective Action included in a previously issued Administrative Review, Claim Review, Sponsor Review, Site Review, Site Visit, Technical Assistance, Recipient Agency Review, Inventory Reconciliation, or any other review or visit by the department;
c. The Sponsor or Recipient Agency is noncompliant with applicable procurement procedures and/or contract requirements of 2 CFR 200, incorporated by reference in Rule 5P-2.001, F.A.C., except where there is a conflict of interest, the Sponsor or Recipient Agency will be terminated as provided in subparagraph (1)(b)5. of this rule;
d. If the Sponsor failed to return to the department any start-up, advance, or improper payments which exceeded the amount earned for serving meals in accordance with Section 7 CFR 225.16, incorporated by reference in Rule 5P-3.001, F.A.C.;
e. Failure to submit two or more Claims for Reimbursement in any program year, provided these claims for reimbursement are not under dispute;
f. Noncompliance with the meal service time restrictions set forth in Sections 7 CFR 210.10(l)(1)-(2), incorporated by reference in Rule 5P-2.001, F.A.C., or 7 CFR 225.16(c), incorporated by reference in Rule 5P-3.001, F.A.C.;
g. Failure to maintain and/or provide to the department program records in accordance with Section 2 CFR 200, or Sections 7 CFR 210.15, 7 CFR 220.7(e)(13), 7 CFR 220.8(a)(3), 7 CFR 220.9(a), incorporated by reference in Rule 5P-2.001, F.A.C., or 7 CFR 225.15(c), incorporated by reference in Rule 5P-3.001, F.A.C., by the due date provided by the department;
h. Failure to adjust meal orders to conform to variations in the number of participants at fifty percent (50%) or more sites reviewed;
i. For congregate meal service operations, the simultaneous service of more than one meal to any participant;
j. The claiming of Program payments for meals not served to participants;
k. Service of fifty percent (50%) of meals or greater which did not include required quantities of all meal components;
l. For congregate meal service operations, off-site meal consumption occurs for fifty percent (50%) or greater of participants;
m. For non-congregate meal service operations, distributing more than the daily meal limit when multi-day service is used;
n. The Sponsor or Recipient Agency has notice of a Stop-Sale Order issued by the department, the Florida Department of Health, or the Department of Business and Professional Regulations to a Food Service Management Company that has yet to be lifted and the Sponsor or Recipient Agency continues to obtain foods from the Food Service Management Company;
o. The Recipient Agency distributes USDA Foods or related funds to a Sub-Distributing Agency without an executed agreement;
p. The Sponsor or Recipient Agency has failed to safely store and control ten percent (10%) or $10,000, whichever is greater, of USDA Foods including, but not limited to, improper distribution or foods lost, spoiled, stolen, sold or damaged as a result of improper storage, care, or handling;
q. The Recipient Agency failed to publicly notice dates of distribution at ten percent (10%) of sites or ten (10) sites, whichever is greater; or
r. The Sponsor’s or Recipient Agency’s tax exempt status is revoked by the Internal Revenue Service pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986 also resulting in immediate termination per subparagraph 5P-1.004(1)(b)4., F.A.C.
2. The department will notify the Sponsor or Recipient Agency in a Notice of Action via email that the Sponsor or Recipient Agency has been declared Seriously Deficient, the causes for Seriously Deficient status, and the required Corrective Actions to bring the Sponsor back into compliance with chapter 595, F.S., and the rules adopted thereunder. The Sponsor or Recipient Agency will have thirty (30) days from the date it receives the Notice of Action to submit a corrective action plan with supporting documentation to the department online at https://fans.FDACS.gov, or by mail to 600 S. Calhoun Street (H2), Tallahassee, FL 32399.
a. The corrective action plan must include:
I. Each identified program deficiency;
II. The corrective action required;
III. The timeframe by which the corrective action will be, or was completed; and
IV. Documentation to demonstrate corrective action was completed as prescribed in the Administrative Review Report.
b. Upon receipt of the Sponsor or Recipient Agency’s corrective action plan, the department shall determine if the corrective action plan permanently corrects all causes for being declared Seriously Deficient and implements the required Corrective Actions. If the corrective action plan permanently corrects all causes for being declared Seriously Deficient and implements the required Corrective Actions, the department will temporarily rescind the Sponsor’s or Recipient Agency’s Seriously Deficient status and the Sponsor or Recipient Agency may continue to operate the program.
c. If after thirty (30) days from the date of receipt for the Notice of Action, the Sponsor or Recipient Agency fails to submit the corrective action plan that permanently corrects all causes for being declared Seriously Deficient and implement the required Corrective Actions, the department shall move to terminate the Sponsor or Recipient Agency under paragraph (b) of this rule.
(b) Termination.
1. If the Sponsor or Recipient Agency has failed to submit a corrective action plan with supporting documentation that permanently corrects all causes for being declared Seriously Deficient and implement the required Corrective Actions, or meet all requirements of its repayment schedule agreement, the Sponsor or Recipient Agency will be terminated from the program for seven (7) years.
2. If any Sponsor or Recipient Agency commits a Child Nutrition Programs or Supplemental Food Programs violation involving fraud, the Sponsor or Recipient Agency will be immediately terminated for seven (7) years. For purposes of this rule, fraud includes:
a. Intentionally making false or misleading statements, orally or in writing or the intentional submission of false or misleading information to the department;
b. Withholding information pertaining to eligibility;
c. Selling commodities obtained in Supplemental Food Programs, or exchanging them for non-food items; or
d. Distributing or permitting the distribution of unrelated program materials or conducting unrelated activities at a food distribution site in a manner inconsistent with the provisions of 7 CFR 251.12, revised as of January 1, 2025, and which is hereby adopted and incorporated by reference and available online at HYPERLINK "http://www.flrules.org/Gateway/reference.asp?No=Ref-19050"http://www.flrules.org/Gateway/reference.asp?No=Ref-19050, and by email request to the department at InfoFNW@fdacs.gov.
3. After seven (7) years, the Sponsor or Recipient Agency may reapply for any Child Nutrition or Supplemental Food Programs. When reapplying, the Sponsor or Recipient Agency must meet all federal and state requirements.
4. A Sponsor whose tax-exempt status is revoked by the Internal Revenue Service (IRS) pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986 shall be terminated from a Child Nutrition Program until such time as the Sponsor’s tax-exempt status is reinstated by the IRS and documentation is provided by the Sponsor showing the effective date of exemption.
5. A Sponsor or Recipient Agency that has an organizational conflict of interest or is unable, or appears to be unable, to be impartial in conducting a procurement action involving a related organization, or a Sponsor or Recipient Agency or an employee, officer, or agent of the Sponsor or Recipient Agency that has a real or apparent conflict of interest in the selection, award, or administration of a purchase or contract shall be terminated.
6. Any Sponsor, including employees, officers, or agents of the Sponsor, terminated from any other State or federal program shall also be terminated from Child Nutrition Programs.
7. While terminated, Sponsors or Recipient Agencies, and its principals, including their board members, corporate officials, and the officials identified on the Sponsor or Recipient Agency’s application in the Florida Automated Nutrition System at the time of the conduct resulting in the termination shall not participate in any Child Nutrition or Supplemental Food Programs, to include receiving USDA Foods, conducting business as a contractor, providing consulting services, or obtaining program related funds by any other means.
(2) Farmers’ Market Nutrition Programs.
(b) Penalties. Farmers identified by the department as having violated FMNP requirements will be sanctioned in accordance with the following guidelines:
1. Class I violations shall result in technical assistance from the department. Class I violations include failure to display the “We gladly accept e-FMNP here” sign; failure to clearly mark or post current prices, including sale prices, either on the authorized food items or on a sign immediately next to or in front of the items; failure to use the appropriate market for each transaction; failure to clearly identify produce which is eligible to be paid for with e-FMNP benefits.
2. Class II violations shall result in a notice of non-compliance. Class II violations include accepting e-FMNP benefits after the valid redemption period indicated on the e-FMNP benefits; charging for food items not received, such as the issuance of a rain check; accepting e-FMNP benefits at an unauthorized location; failure to provide only local grown, authorized produce in exchange for e-FMNP benefits; failure to accept valid e-FMNP benefits for the purchase of eligible produce; and two or more Class I violations.
3. Class III violations shall result in a one-year suspension from FMNP. Class III violations include accepting e-FMNP benefits on which the recipient’s name or valid redemption period has been changed; failure to provide e-FMNP authorized produce to recipients at the same price posted or charged to other recipients; returning cash or currency to a recipient in an e-FMNP benefits transaction; collecting sales tax for authorized produce purchased with e-FMNP benefits; exchanging e-FMNP benefits for cash or anything of value other than e-FMNP authorized produce, including e-FMNP benefits that were accepted by an unauthorized, suspended, or disqualified farmer; failure to adhere to monitoring and compliance requirements; knowingly providing false information or claiming a false status to the department to obtain a program agreement; verified findings of civil rights discrimination; and two or more Class II violations.
4. Class IV violations shall result in a three-year suspension from the FMNP. Class IV violations include seeking restitution from a recipient, co-caretaker or proxy for e-FMNP benefits not paid for by the department; harassment of, or hostile conduct towards, a WIC recipient, FMNP authorized farmers, or FMNP or department employees; and two or more Class III violations.
Rulemaking Authority 570.07(23), 595.404(4), (10), (11) FS. Law Implemented 595.404, 595.501, 570.971, 1001.42(16) FS. History–New 9-5-77, Amended 9-6-78, 10-17-78, 10-23-79, 1-7-81, 8-12-81, 4-27-82, 6-28-83, Formerly 6A-7.421, 6A-7.0421, Amended 6-21-18, 12-16-18, 9-5-23, 6-16-26.