7 U.S.C. § 2018 : US Code - Section 2018: Approval of retail food stores and wholesale food concerns

Search 7 U.S.C. § 2018 : US Code - Section 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.