A local agency shall implement participant and proxy sanctions and notify the State agency of the action taken. The State agency may also initiate participant and proxy sanctions and other acts based on information available to the State agency. Except for a participant the State agency disqualifies for failure to pick up food benefits, the State agency shall, not less than 15 days before disqualification, advise the participant in writing of the reasons for the disqualification and of the right to a fair hearing on the disqualification. When the State agency pursues collection of a claim against a participant who has been improperly issued food benefits, it shall advise the participant in writing of: The reasons for the claim; The value of the improperly issued benefits to be repaid to the Program; That the participant shall pay to the State agency, in cash, the value of the improperly issued benefits; and The participant's right to a fair hearing on the claim.