(a) When a State agency has failed to comply with provisions of the Act, the regulations issued pursuant to the Act, or the FNS-approved State Plan of Operation, and, thus, is subject to the suspension/disallowance and injunctive relief provisions in §§ 276.4 and 276.5, FNS may determine that the State had good cause for the noncompliance. FNS shall evaluate good cause in these situations on a case-by-case basis, based on any one of the following criteria:
(1) Natural disasters or civil disorders that adversely affect Program operations;
(2) Strikes by State agency staff;
(3) Change in SNAP or other Federal or State programs that result in a substantial adverse impact upon a State agency's management of the Program; and
(4) Any other circumstances in which FNS determines good cause to exist.
(b) If FNS determines that food cause existed for a State agency's failure to comply with required provisions and standards, FNS shall not suspend or disallow administrative funds nor seek injunctive relief to compel compliance with the provisions and standards.
[Amdt. 168, 45 FR 77263, Nov. 21, 1980]