7 U.S.C. § 2018
Regulations issued pursuant to this chapter shall require an applicant retail food store or wholesale food concern to submit information, which may include relevant income and sales tax filing documents, purchase invoices, records relating to electronic benefit transfer equipment and related services, transaction and redemption data provided through the electronic benefit transfer system, or program-related records, which will permit a determination to be made as to whether such applicant qualifies, or continues to qualify, for approval under the provisions of this chapter or the regulations issued pursuant to this chapter. The regulations may require retail food stores and wholesale food concerns to provide written authorization for the Secretary to verify all relevant tax filings with appropriate agencies and to obtain corroborating documentation from other sources so that the accuracy of information provided by the stores and concerns may be verified. Regulations issued pursuant to this chapter shall provide for safeguards which limit the use or disclosure of information obtained under the authority granted by this subsection to purposes directly connected with administration and enforcement of the provisions of this chapter or the regulations issued pursuant to this chapter, except that such information may be disclosed to and used by Federal law enforcement and investigative agencies and law enforcement and investigative agencies of a State government for the purposes of administering or enforcing this chapter or any other Federal or State law and the regulations issued under this chapter or such law, and State agencies that administer the special supplemental nutrition program for women, infants and children, authorized under section 17 of the Child Nutrition Act of 1966 [42 U.S.C. 1786], for purposes of administering the provisions of that Act [42 U.S.C. 1771 et seq.] and the regulations issued under that Act. Any person who publishes, divulges, discloses, or makes known in any manner or to any extent not authorized by Federal law (including a regulation) any information obtained under this subsection shall be fined not more than $1,000 or imprisoned not more than 1 year, or both. The regulations shall establish the criteria to be used by the Secretary to determine whether the information is needed. The regulations shall not prohibit the audit and examination of such information by the Comptroller General of the United States authorized by any other provision of law.
Any retail food store or wholesale food concern which has failed upon application to receive approval to participate in the supplemental nutrition assistance program may obtain a hearing on such refusal as provided in section 2023 of this title. A retail food store or wholesale food concern that is denied approval to accept and redeem benefits because the store or concern does not meet criteria for approval established by the Secretary may not, for at least 6 months, submit a new application to participate in the program. The Secretary may establish a longer time period under the preceding sentence, including permanent disqualification, that reflects the severity of the basis of the denial.
Approved retail food stores shall display a sign providing information on how persons may report abuses they have observed in the operation of the supplemental nutrition assistance program.
In those areas in which the Secretary, in consultation with the Inspector General of the Department of Agriculture, finds evidence that the operation of house-to-house trade routes damages the program's integrity, the Secretary shall limit the participation of house-to-house trade routes to those routes that are reasonably necessary to provide adequate access to households.
An approved retail food store shall provide adequate EBT service as described in section 2016(h)(3)(B) of this title.
Subject to paragraph (2), no private establishment that contracts with a State agency to offer meals at concessional prices as described in paragraphs (3), (4), and (9) of section 2012(k) of this title may be authorized to accept and redeem benefits unless the Secretary determines that the participation of the private establishment is required to meet a documented need in accordance with section 2020(e)(25) of this title.
If, on the day before February 7, 2014, a State has entered into a contract with a private establishment described in paragraph (1) and the Secretary has not determined that the participation of the private establishment is necessary to meet a documented need in accordance with section 2020(e)(25) of this title, the Secretary shall allow the operation of the private establishment to continue without that determination of need for a period not to exceed 180 days from the date on which the Secretary establishes determination criteria, by regulation, under section 2020(e)(25) of this title.
If the Secretary determines to terminate a contract with a private establishment that is in effect on February 7, 2014, the Secretary shall provide justification to the State in which the private establishment is located for that termination.
Not later than 90 days after September 30, 2014, and 90 days after the last day of each fiscal year thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the effectiveness of a program under this subsection using any information received from States under section 2020(e)(25) of this title as well as any other information the Secretary may have relating to the manner in which benefits are used.
The Secretary-
Nothing in this subsection shall authorize the Secretary to deny any application for continued authorization, any application for authorization, or any request to withdraw the authorization of any such facility, program, or arrangement based on a determination that residents of any such facility or entity are residents of an institution prior to December 31, 2022.
In this subsection, the term "eligible incentive food" means-
The Secretary shall issue guidance to clarify the process by which an approved retail food store may seek a waiver to offer an incentive, which may be used only for the purchase of an eligible incentive food at the point of purchase, to a household purchasing food with benefits issued under this chapter.
The guidance under subparagraph (A) shall establish a process under which an approved retail food store, prior to carrying out an incentive program under this subsection, shall provide to the Secretary information describing the incentive program, including-
A waiver granted under this subsection shall not be used to carry out any activity that limits the use of benefits under this chapter or any other Federal nutrition law.
Guidance provided under this subsection shall not affect any requirements under section 7517 of this title, including the eligibility of a retail food store to participate in a project funded under such section.
The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report describing the types of incentives approved under this subsection.
7 U.S.C. § 2018
EDITORIAL NOTES
REFERENCES IN TEXTThat Act, meaning the Child Nutrition Act of 1966, referred to in subsec. (c), is Pub. L. 89-642, Oct. 11, 1966, 80 Stat. 885, which is classified generally to chapter 13A (§1771 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 1771 of Title 42 and Tables.
CODIFICATION Pub. L. 110-234 and Pub. L. 110-246 made identical amendments to this section. The amendments by Pub. L. 110-234 were repealed by section 4(a) of Pub. L. 110-246.
AMENDMENTS2022-Subsec. (i)(2). Pub. L. 117-103 substituted "December 31, 2022" for "December 31, 2021".2020-Subsec. (i)(2). Pub. L. 116-260 substituted "December 31, 2021" for "December 31, 2020". 2019-Subsec. (i)(2). Pub. L. 116-94 substituted "prior to December 31, 2020" for "for a period of 18 months from December 20, 2018".2018-Subsec. (a)(1). Pub. L. 115-334, §4006(f)(1), inserted subsec. heading, designated existing provisions, comprised of four sentences, as par. (1), inserted par. heading, designated first through fourth sentences as subpars. (A) to (D), respectively, inserted subpar. headings, redesignated former cls. (A) to (D) of second sentence as cls. (i) to (iii) and (v) of subpar. (B), respectively, and added cl. (iv) of subpar. (B).Subsec. (a)(4). Pub. L. 115-334, §4006(f)(2), added par. (4).Subsec. (c). Pub. L. 115-334, §4006(f)(3), inserted "records relating to electronic benefit transfer equipment and related services, transaction and redemption data provided through the electronic benefit transfer system," after "purchase invoices,".Subsec. (i). Pub. L. 115-334, §4007, added subsec. (i).Subsec. (j). Pub. L. 115-334, §4008, added subsec. (j). 2014-Subsec. (a)(1). Pub. L. 113-79, §4002(e)(1), substituted ";(C) whether the applicant is located in an area with significantly limited access to food; and (D)" for ";and (C)". Subsec. (a)(3). Pub. L. 113-79, §4030(f), realigned margins. Subsec. (c). Pub. L. 113-79, §4002(e)(2), inserted "purchase invoices, or program-related records," after "relevant income and sales tax filing documents,". Subsec. (g). Pub. L. 113-79, §4002(e)(3), added subsec. (g).Subsec. (h). Pub. L. 113-79, §4014(b), added subsec. (h).2008-Subsec. (a)(1). Pub. L. 110-246, §4115(b)(6)(A), (B) (i), substituted "benefit transactions" for "coupon business" and "benefits" for "coupons". Pub. L. 110-246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program" wherever appearing.Subsec. (a)(3). Pub. L. 110-246, §4115(b)(6)(B)(ii), added par. (3) and struck out former par. (3). Prior to amendment, text read as follows: "The Secretary shall establish specific time periods during which authorization to accept and redeem coupons, or to redeem benefits through an electronic benefit transfer system, shall be valid under the food stamp program."Subsec. (b)(1). Pub. L. 110-246, §4115(b)(6)(A), substituted "benefits" for "coupons" wherever appearing. Pub. L. 110-246, §4002(a)(5), substituted "households that receive supplemental nutrition assistance program benefits" for "food stamp households". Pub. L. 110-246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program".Subsec. (b)(2)(A). Pub. L. 110-246, §4115(b)(6)(A), substituted "benefits" for "coupons". Subsec. (d). Pub. L. 110-246, §4115(b)(6)(A), substituted "benefits" for "coupons". Pub. L. 110-246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program".Subsec. (e). Pub. L. 110-246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program".Subsec. (g). Pub. L. 110-246, §4115(b)(6)(C), which directed substitution of "section 2012(k)(9)" for "section 2012(g)(9)" in subsec. (g), could not be executed because subsec. (g) did not appear in text subsequent to its termination. See 1986 Amendment note and Effective and Termination Dates of 1986 Amendment note below. 1996-Subsec. (a)(1). Pub. L. 104-193, §831, inserted at end "No retail food store or wholesale food concern of a type determined by the Secretary, based on factors that include size, location, and type of items sold, shall be approved to be authorized or reauthorized for participation in the food stamp program unless an authorized employee of the Department of Agriculture, a designee of the Secretary, or, if practicable, an official of the State or local government designated by the Secretary has visited the store or concern for the purpose of determining whether the store or concern should be approved or reauthorized, as appropriate." Subsec. (a)(3). Pub. L. 104-193, §832, added par. (3). Subsec. (c). Pub. L. 104-193, §833, in first sentence, inserted ",which may include relevant income and sales tax filing documents," after "submit information" and inserted after first sentence "The regulations may require retail food stores and wholesale food concerns to provide written authorization for the Secretary to verify all relevant tax filings with appropriate agencies and to obtain corroborating documentation from other sources so that the accuracy of information provided by the stores and concerns may be verified."Subsec. (d). Pub. L. 104-193, §834, inserted at end "A retail food store or wholesale food concern that is denied approval to accept and redeem coupons because the store or concern does not meet criteria for approval established by the Secretary may not, for at least 6 months, submit a new application to participate in the program. The Secretary may establish a longer time period under the preceding sentence, including permanent disqualification, that reflects the severity of the basis of the denial."1994-Subsec. (a)(2). Pub. L. 103-225, §202, amended par. (2) generally. Prior to amendment, par. (2) read as follows: "The Secretary is authorized to issue regulations providing for a periodic reauthorization of retail food stores and wholesale food concerns." Subsec. (c). Pub. L. 103-448 in second sentence substituted "special supplemental nutrition program" for "special supplemental food program". Pub. L. 103-225, §203, in second sentence inserted "Federal law enforcement and investigative agencies and law enforcement and investigative agencies of a State government for the purposes of administering or enforcing this chapter or any other Federal or State law and the regulations issued under this chapter or such law, and" after "disclosed to and used by", inserted after second sentence "Any person who publishes, divulges, discloses, or makes known in any manner or to any extent not authorized by Federal law (including a regulation) any information obtained under this subsection shall be fined not more than $1,000 or imprisoned not more than 1 year, or both.", and in last sentence substituted "The regulations shall establish the criteria to be used by the Secretary to determine whether the information is needed. The regulations shall not prohibit" for "Such purposes shall not exclude".1991-Subsec. (a)(1). Pub. L. 102-237 redesignated cls. (1) to (3) as (A) to (C), respectively. 1990-Subsec. (a). Pub. L. 101-624, §1733, designated existing provisions as par. (1) and added par. (2).Subsec. (b)(1). Pub. L. 101-624, §1734, inserted after first sentence "No co-located wholesale-retail food concern may be authorized to accept and redeem coupons as a retail food store, unless (A) the concern does a substantial level of retail food business, or (B) the Secretary determines that failure to authorize such a food concern as a retail food store would cause hardship to food stamp households." 1986-Subsec. (g). Pub. L. 99-570, §1102(d), (f) (3), temporarily added subsec. (g) which read as follows: "In an area in which the Secretary, in consultation with the Inspector General of the Department of Agriculture, finds evidence that the participation of an establishment or shelter described in section 2012(g)(9) of this title damages the program's integrity, the Secretary shall limit the participation of such establishment or shelter in the food stamp program, unless the establishment or shelter is the only establishment or shelter serving the area." See Effective and Termination Dates of 1986 Amendment note below. 1985-Subsec. (b). Pub. L. 99-198, §1532(b), designated existing provisions as par. (1) and added par. (2). Subsec. (c). Pub. L. 99-198, §1521, inserted provisions relating to disclosure of information to, and the use by, State agencies which administer the special supplemental food program for women, infants, and children, authorized under section 17 of the Child Nutrition Act of 1966. 1982-Subsec. (f). Pub. L. 97-253 added subsec. (f).1981-Subsec. (c). Pub. L. 97-98, §1313, inserted provision that such purposes not exclude the audit and examination of such information by the Comptroller General of the United States authorized by any other provision of law.Subsec. (e). Pub. L. 97-98, §1314, added subsec. (e). 1977- Pub. L. 95-113 substituted revised provisions covering approval of retail food stores and wholesale food concerns for provisions relating to redemption of coupons which are now covered by section 2019 of this title.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110-234 by Pub. L. 110-246 effective May 22, 2008, the date of enactment of Pub. L. 110-234 except as otherwise provided, see section 4 of Pub. L. 110-246 set out as an Effective Date note under section 8701 of this title. Amendment by sections 4001(b), 4002(a)(5), and 4115(b)(6) of Pub. L. 110-246 effective Oct. 1, 2008, see section 4407 of Pub. L. 110-246 set out as a note under section 1161 of Title 2, The Congress.
EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103-448 effective Oct. 1, 1994, see section 401 of Pub. L. 103-448 set out as a note under section 1755 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1991 AMENDMENT Amendment by Pub. L. 102-237 effective and to be implemented no later than Feb. 1, 1992, see section 1101(d)(1) of Pub. L. 102-237 set out as a note under section 1421 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-624 effective and implemented first day of month beginning 120 days after publication of implementing regulations to be promulgated not later than Oct. 1, 1991, see section 1781(a) of Pub. L. 101-624 set out as a note under section 2012 of this title.
EFFECTIVE AND TERMINATION DATES OF 1986 AMENDMENTAmendment by Pub. L. 99-570 effective, and to be implemented by issuance of final regulations, not later than Apr. 1, 1987, and cease to be effective after Sept. 30, 1990, see section 11002(f)(1), (2) of Pub. L. 99-570 set out as a note under section 2012 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97-253 effective Sept. 8, 1982, see section 193(a) of Pub. L. 97-253 set out as a note under section 2012 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97-98 effective on earlier of Sept. 8, 1982, or date such amendment became effective pursuant to section 1338 of Pub. L. 97-98 set out as a note under section 2012 of this title, see section 192(b) of Pub. L. 97-253 set out as a note under section 2012 of this title. Amendment by Pub. L. 97-98 effective upon such date as Secretary of Agriculture may prescribe, taking into account need for orderly implementation, see section 1338 of Pub. L. 97-98 set out as a note under section 2012 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT Pub. L. 95-113, title XIII, §1301, Sept. 29, 1977, 91 Stat. 958, provided that the amendment made by section 1301 is effective Oct. 1, 1977.
- Coupon
- "Coupon" means any coupon, stamp, type of certificate, authorization card, cash or check issued in lieu of a coupon.
- Household
- "Household" means-(A) an individual who lives alone or who, while living with others, customarily purchases food and prepares meals for home consumption separate and apart from the others; or(B) a group of individuals who live together and customarily purchase food and prepare meals together for home consumption.
- Retail food store
- "Retail food store" means-(1) an establishment, house-to-house trade route, or online entity that sells food for home preparation and consumption and-(A) offers for sale, on a continuous basis, a variety of at least 7 foods in each of the 4 categories of staple foods specified in subsection (q)(1), including perishable foods in at least 3 of the categories; or(B) has over 50 percent of the total sales of the establishment or route in staple foods,as determined by visual inspection, sales records, purchase records, counting of stockkeeping units, or other inventory or accounting recordkeeping methods that are customary or reasonable in the retail food industry;(2) an establishment, organization, program, or group living arrangement referred to in paragraphs (3), (4), (5), (7), (8), and (9) of subsection (k);(3) a store purveying the hunting and fishing equipment described in subsection (k)(6);(4) any private nonprofit cooperative food purchasing venture, including those in which the members pay for food purchased prior to the receipt of such food, or agricultural producers who market agricultural products directly to consumers; and(5) a governmental or private nonprofit food purchasing and delivery service that-(A) purchases food for, and delivers the food to, individuals who are-(i) unable to shop for food; and(ii)(I) not less than 60 years of age; or(II) physically or mentally handicapped or otherwise disabled;(B) clearly notifies the participating household at the time the household places a food order-(i) of any delivery fee associated with the food purchase and delivery provided to the household by the service; and(ii) that a delivery fee cannot be paid with benefits provided under supplemental nutrition assistance program; and(C) sells food purchased for the household at the price paid by the service for the food and without any additional cost markup.
- Secretary
- "Secretary" means the Secretary of Agriculture.
- State agency
- "State agency" means (1) the agency of State government, including the local offices thereof, which has the responsibility for the administration of the federally aided public assistance programs within such State, and in those States where such assistance programs are operated on a decentralized basis, the term shall include the counterpart local agencies administering such programs, and (2) the tribal organization of an Indian tribe determined by the Secretary to be capable of effectively administering a food distribution program under section 2013(b) of this title or a supplemental nutrition assistance program under section 2020(d) of this title.
- State
- "State" means the fifty States, the District of Columbia, Guam, the Virgin Islands of the United States, and the reservations of an Indian tribe whose tribal organization meets the requirements of this chapter for participation as a State agency.
- Supplemental nutrition assistance program
- "Supplemental nutrition assistance program" means the program operated pursuant to this chapter.