§ 2019. —  Redemption of coupons.


[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 7USC2019]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 51--FOOD STAMP PROGRAM
 
Sec. 2019. Redemption of coupons

    Regulations issued pursuant to this chapter shall provide for the 
redemption of coupons accepted by retail food stores through approved 
wholesale food concerns or through financial institutions which are 
insured by the Federal Deposit Insurance Corporation or the Federal 
Savings and Loan Insurance Corporation, or which are insured under the 
Federal Credit Union Act [12 U.S.C. 1751 et seq.] and have retail food 
stores or wholesale food concerns in their field of membership, with the 
cooperation of the Treasury Department, except that retail food stores 
defined in section 2012(k)(4) of this title shall be authorized to 
redeem their members' food coupons prior to receipt by the members of 
the food so purchased, and publicly operated community mental health 
centers or private nonprofit organizations or institutions which serve 
meals to narcotics addicts or alcoholics in drug addiction or alcoholic 
treatment and rehabilitation programs, public and private nonprofit 
shelters that prepare and serve meals for battered women and children, 
and public or private nonprofit group living arrangements that serve 
meals to disabled or blind residents, shall not be authorized to redeem 
coupons through financial institutions which are insured by the Federal 
Deposit Insurance Corporation or the Federal Savings and Loan Insurance 
Corporation or the Federal Credit Union Act. Notwithstanding the 
preceding sentence, a center, organization, institution, shelter, group 
living arrangement, or establishment described in that sentence may be 
authorized to redeem coupons through a financial institution described 
in that sentence if the center, organization, institution, shelter, 
group living arrangement, or establishment is equipped with 1 or more 
point-of-sale devices and is operating in an area in which an electronic 
benefit transfer system described in section 2016(i) of this title has 
been implemented. No financial institution may impose on or collect from 
a retail food store a fee or other charge for the redemption of coupons 
that are submitted to the financial institution in a manner consistent 
with the requirements, other than any requirements relating to 
cancellation of coupons, for the presentation of coupons by financial 
institutions to the Federal Reserve banks.

(Pub. L. 88-525, Sec. 10, Aug. 31, 1964, 78 Stat. 706; Pub. L. 91-671, 
Sec. 6, Jan. 11, 1971, 84 Stat. 2051; Pub. L. 92-603, title IV, 
Sec. 411(c)-(e), Oct. 30, 1972, 86 Stat. 1491; Pub. L. 93-86, Sec. 3(f), 
(i), (k), Aug. 10, 1973, 87 Stat. 247, 248; Pub. L. 93-125, Sec. 1(j), 
Oct. 18, 1973, 87 Stat. 450; Pub. L. 95-113, title XIII, Sec. 1301, 
Sept. 29, 1977, 91 Stat. 969; Pub. L. 96-58, Sec. 8, Aug. 14, 1979, 93 
Stat. 392; Pub. L. 96-249, title I, Sec. 101(b), May 26, 1980, 94 Stat. 
357; Pub. L. 97-98, title XIII, Sec. 1315, Dec. 22, 1981, 95 Stat. 1285; 
Pub. L. 99-198, title XV, Secs. 1501(b), 1522, 1523(a), Dec. 23, 1985, 
99 Stat. 1566, 1580; Pub. L. 99-570, title XI, Sec. 11002(e), Oct. 27, 
1986, 100 Stat. 3207-168; Pub. L. 107-171, title IV, Sec. 4113(a), May 
13, 2002, 116 Stat. 313.)

                       References in Text

    The Federal Credit Union Act, referred to in text, is act June 26, 
1934, ch. 750, 48 Stat. 1216, as amended, which is classified generally 
to chapter 14 (Sec. 1751 et seq.) of Title 12, Banks and Banking. For 
complete classification of this Act to the Code, see section 1751 of 
Title 12 and Tables.


                               Amendments

    2002--Pub. L. 107-171 inserted after first sentence 
``Notwithstanding the preceding sentence, a center, organization, 
institution, shelter, group living arrangement, or establishment 
described in that sentence may be authorized to redeem coupons through a 
financial institution described in that sentence if the center, 
organization, institution, shelter, group living arrangement, or 
establishment is equipped with 1 or more point-of-sale devices and is 
operating in an area in which an electronic benefit transfer system 
described in section 2016(i) of this title has been implemented.''
    1986--Pub. L. 99-570, Sec. 11002(e), (f), temporarily struck out 
``and'' after ``battered women and children,'' and inserted ``, and 
public or private nonprofit establishments, or public or private 
nonprofit shelters that feed individuals who do not reside in permanent 
dwellings and individuals who have no fixed mailing addresses''. See 
Effective and Termination Dates of 1986 Amendment note below.
    1985--Pub. L. 99-198, Sec. 1501(b), inserted reference to publicly 
operated community mental health centers.
    Pub. L. 99-198, Sec. 1522, inserted ``, or which are insured under 
the Federal Credit Union Act and have retail food stores or wholesale 
food concerns in their field of membership'' and ``or the Federal Credit 
Union Act''.
    Pub. L. 99-198, Sec. 1523(a), inserted sentence providing that no 
financial institution may impose on or collect from a retail food store 
a fee or other charge for the redemption of coupons that are submitted 
to the financial institution in a manner consistent with the 
requirements, other than any requirements relating to cancellation of 
coupons, for the presentation of coupons by financial institutions to 
the Federal Reserve banks.
    1981--Pub. L. 97-98 substituted ``financial institutions which are 
insured by the Federal Deposit Insurance Corporation or the Federal 
Savings and Loan Insurance Corporation'' for ``banks'' wherever 
appearing.
    1980--Pub. L. 96-249 substituted ``purchased,'' for ``purchased'' 
and ``residents'' for ``residents,'' and inserted ``, public and private 
nonprofit shelters that prepare and serve meals for battered women and 
children'' after ``programs''.
    1979--Pub. L. 96-58 inserted provisions relating to public and 
private nonprofit group living arrangements that serve meals to disabled 
or blind residents.
    1977--Pub. L. 95-113 substituted revised provisions covering 
redemption of coupons for provisions relating to administration of 
program which are now covered by section 2020 of this title.
    1973--Subsec. (e). Pub. L. 93-86, Sec. 3(i), inserted cls. (6) and 
(7), designated former cl. (6) as (8), and inserted provision relating 
to time for submission of plan of operation to Secretary for approval 
and time for Secretary to make a determination of approval or 
disapproval of such plan.
    Subsec. (h). Pub. L. 93-125 inserted ``members of'' after ``the 
Secretary shall permit''.
    Pub. L. 93-86, Sec. 3(k), inserted provisions authorizing meal 
purchases from senior citizens' centers, apartment buildings occupied 
primarily by elderly persons, any public or nonprofit private school 
which prepares meals especially for elderly persons, any public or 
nonprofit private eating establishment which prepares meals especially 
for elderly persons during special hours, and any other public or 
nonprofit private establishment approved for such purpose by the 
Secretary.
    Subsec. (i). Pub. L. 93-86, Sec. 3(f), added subsec. (i).
    1972--Subsec. (c). Pub. L. 92-603, Sec. 411(c), struck out 
provisions relating to filing of an affidavit by household for 
certification of eligibility for public assistance.
    Subsec. (e). Pub. L. 92-603, Sec. 411(d), (e), substituted 
``prescribed by the Secretary in the regulations issued pursuant to this 
chapter'' for ``used by them in the certification of applicants for 
benefits under the federally aided public assistance programs'' in cl. 
(2), and struck out provisions requiring the State agency to institute 
procedures under which any household participating in the food stamp 
program shall be entitled to have the charges for its coupon allotment 
deducted from grants or payments such household is entitled to receive 
and have its coupon allotment distributed to it with such grant or 
payment.
    1971--Subsec. (c). Pub. L. 91-671, Sec. 6(a), inserted provisions 
respecting certification of eligibility for benefits by execution of an 
affidavit and duration of validity of a certification upon removal of a 
household from one political subdivision to another.
    Subsec. (e). Pub. L. 91-671, Sec. 6(b), substituted ``regulations'' 
for ``regulation'' in second sentence preceding cl. (1) and ``from time 
to time may'' for ``may from time to time'', and added cls. (5) and (6) 
and provision for withholding in the State plan.
    Subsec. (h). Pub. L. 91-671, Sec. 6(c), added subsec. (h).


                    Effective Date of 2002 Amendment

    Pub. L. 107-171, title IV, Sec. 4113(b), May 13, 2002, 116 Stat. 
314, provided that: ``The amendment made by this section [amending this 
section] takes effect on the date of enactment of this Act [May 13, 
2002].''


            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 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 1979 Amendment

    Amendment by Pub. L. 96-58 to be implemented in all States by July 
1, 1980, but not to affect the rights or liabilities of Secretary, 
States, and applicant or participant households under provisions of this 
chapter as in effect on July 1, 1979, until implemented, see section 
10(c) of Pub. L. 96-58, 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.


                    Effective Date of 1972 Amendment

    Amendment by Pub. L. 92-603 effective Jan. 1, 1973, see section 
411(h) of Pub. L. 92-603, set out as a note under section 2012 of this 
title.

                          Transfer of Functions

    Federal Savings and Loan Insurance Corporation abolished and 
functions transferred, see Pub. L. 101-73, title IV, Secs. 401-406, Aug. 
9, 1989, 103 Stat. 354-363, set out as a note under section 1437 of 
Title 12, Banks and Banking.


 Promulgation of Regulations Regarding Charges for Redemption of Coupons

    Section 1523(b) of Pub. L. 99-198 provided that: ``The Secretary of 
Agriculture, in consultation with the Board of Governors of the Federal 
Reserve System, shall issue regulations implementing the amendment made 
by subsection (a) [amending this section].''


               Publicly Operated Community Health Centers

    Provisions of this section concerning private, nonprofit drug 
addiction or alcoholic treatment and rehabilitation programs to be 
applicable to publicly operated community health centers, see section 
101(b) of Pub. L. 98-107, set out in part as a note under section 2012 
of this title.


   Extension Until October 1, 1976, of Final Date for Compliance With 
        Regulations Governing Use of Food Stamps by AFDC Families

    Pub. L. 94-182, title II, Sec. 201, Dec. 31, 1975, 89 Stat. 1056, 
permitted the final date for compliance with regulations implementing 
former subsec. (e)(7) of this section to be extended until Oct. 1, 1976.

                  Section Referred to in Other Sections

    This section is referred to in sections 2012, 2012a of this title; 
title 42 section 4728.






























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