§ 2018. — Approval of retail food stores and wholesale food concerns.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 7USC2018]
TITLE 7--AGRICULTURE
CHAPTER 51--FOOD STAMP PROGRAM
Sec. 2018. Approval of retail food stores and wholesale food
concerns
(a) Applications; qualifications; certificate of approval; periodic
reauthorization
(1) Regulations issued pursuant to this chapter shall provide for
the submission of applications for approval by retail food stores and
wholesale food concerns which desire to be authorized to accept and
redeem coupons under the food stamp program and for the approval of
those applicants whose participation will effectuate the purposes of the
food stamp program. In determining the qualifications of applicants,
there shall be considered among such other factors as may be
appropriate, the following: (A) the nature and extent of the food
business conducted by the applicant; (B) the volume of coupon business
which may reasonably be expected to be conducted by the applicant food
store or wholesale food concern; and (C) the business integrity and
reputation of the applicant. Approval of an applicant shall be evidenced
by the issuance to such applicant of a nontransferable certificate of
approval. 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.
(2) The Secretary shall issue regulations providing for--
(A) the periodic reauthorization of retail food stores and
wholesale food concerns; and
(B) periodic notice to participating retail food stores and
wholesale food concerns of the definitions of ``retail food store'',
``staple foods'', ``eligible foods'', and ``perishable foods''.
(3) Authorization periods.--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.
(b) Effective and efficient operation of program; effect of
disqualification; posting of bond
(1) No wholesale food concern may be authorized to accept and redeem
coupons unless the Secretary determines that its participation is
required for the effective and efficient operation of the food stamp
program. 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. In
addition, no firm may be authorized to accept and redeem coupons as both
a retail food store and as a wholesale food concern at the same time.
(2)(A) A buyer or transferee (other than a bona fide buyer or
transferee) of a retail food store or wholesale food concern that has
been disqualified under section 2021(a) of this title may not accept or
redeem coupons until the Secretary receives full payment of any penalty
imposed on such store or concern.
(B) A buyer or transferee may not, as a result of the sale or
transfer of such store or concern, be required to furnish a bond under
section 2021(d) of this title.
(c) Information submitted by applicants; safeguards; disclosure to and
use by State agencies
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, 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.
(d) Hearing upon failure of applicant to receive approval; waiting
period for new application
Any retail food store or wholesale food concern which has failed
upon application to receive approval to participate in the food stamp
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 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.
(e) Reporting of abuses by public
Approved retail food stores shall display a sign providing
information on how persons may report abuses they have observed in the
operation of the food stamp program.
(f) Limitation on participation of house-to-house trade routes
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.
(Pub. L. 88-525, Sec. 9, Aug. 31, 1964, 78 Stat. 705; Pub. L. 95-113,
title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 968; Pub. L. 97-98,
title XIII, Secs. 1313, 1314, Dec. 22, 1981, 95 Stat. 1285; Pub. L. 97-
253, title I, Sec. 165, Sept. 8, 1982, 96 Stat. 779; Pub. L. 99-198,
title XV, Secs. 1521, 1532(b), Dec. 23, 1985, 99 Stat. 1579, 1583; Pub.
L. 99-570, title XI, Sec. 11002(d), Oct. 27, 1986, 100 Stat. 3207-168;
Pub. L. 101-624, title XVII, Secs. 1733, 1734, Nov. 28, 1990, 104 Stat.
3791; Pub. L. 102-237, title IX, Sec. 941(4), Dec. 13, 1991, 105 Stat.
1892; Pub. L. 103-225, title II, Secs. 202, 203, Mar. 25, 1994, 108
Stat. 108; Pub. L. 103-448, title II, Sec. 204(w)(2)(A), Nov. 2, 1994,
108 Stat. 4746; Pub. L. 104-193, title VIII, Secs. 831-834, Aug. 22,
1996, 110 Stat. 2328.)
References in Text
That Act, meaning the Child Nutrition Act of 1966, referred to in
subsec. (c), is Pub. L. 89-642, Oct. 11, 1966, 80 Stat. 885, as amended,
which is classified generally to chapter 13A (Sec. 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.
Amendments
1996--Subsec. (a)(1). Pub. L. 104-193, Sec. 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, Sec. 832, added par. (3).
Subsec. (c). Pub. L. 104-193, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 1733, designated existing
provisions as par. (1) and added par. (2).
Subsec. (b)(1). Pub. L. 101-624, Sec. 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, Sec. 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, Sec. 1532(b), designated existing
provisions as par. (1) and added par. (2).
Subsec. (c). Pub. L. 99-198, Sec. 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, Sec. 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, Sec. 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.
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 Amendment
Amendment 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
Section 1301 of Pub. L. 95-113 provided that the amendment made by
that section is effective Oct. 1, 1977.
Section Referred to in Other Sections
This section is referred to in sections 2023, 2024 of this title;
title 26 section 6109; title 42 sections 405, 8011.
