7 USC 2018(c): Benefit redemption information of other retail stores

          
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

[[Page 1048]]

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 perma

[[Page 1049]]

nent 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.

[[Page 1050]]

                    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.