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The Agricultural Act of 2014 amended the Food and Nutrition Act of 2008 to increase the requirement that certain Supplemental Nutrition Assistance Program (SNAP) authorized retail food stores have available on a continuous basis at least three varieties of items in each of four staple food categories, to a mandatory minimum of seven varieties.  The Food and Nutrition Service (FNS) codified these mandatory requirements.  This change will provide some retailers participating in SNAP as authorized food stores with more flexibility in meeting the the enhanced SNAP eligibility requirements.

Statement of Need:

The United States Department of Agriculture (USDA, or the Department) Food and Nutrition Service (FNS, or the Agency) is proposing changes to regulations in Sections 271 and 278 which modify the definition of variety as it pertains to the stocking requirements that certain retail food stores must meet to be eligible to participate in the Supplemental Nutrition Assistance Program (SNAP). On December 15, 2016, FNS published a final rule that amended SNAP regulations at 7 CFR parts 271 and 278 to clarify and enhance current SNAP regulations governing the eligibility of certain firms to participate in SNAP. On May 5, 2017, appropriations legislation (the Consolidated Appropriation Act of 2017, or the Omnibus) suspended implementation of two provisions in the 2016 final rule: (1) the Definition of ‘Staple Food’ Acceptable Varieties in the Four Staple Food Categories provision and (2) the Definition of ‘Retail Food Store’ Breadth of Stock provision (known as the Definition of "Variety" provision and the Breadth of Stock provision, respectively). In order to move forward with implementing these provisions of the 2016 final rule, the Omnibus required USDA to first amend the Definition of Variety provision so that the number of qualifying food varieties in each staple food category increased.

Summary of the Legal Basis:

On May 5, 2017, the Consolidated Appropriation Act of 2017 (the Omnibus) was signed into law.  Section 765 of the Omnibus prohibited the USDA from implementing the Definition of "Staple Food" Acceptable Varieties in the Four Staple Food Categories provision (7 CFR 271.2 and 7 CFR 278.1(b)(1)(ii)(C)) and variety as applied in the definition of the term staple food as defined at 7 CFR 271.2 to increase the number of items that qualify as acceptable varieties in each staple food category from the number of items that qualified as acceptable varieties under the 2016 final rule.

Alternatives:

Currently unavailable.

Anticipated Costs and Benefits:

The Department has estimated that the proposed rule will save approximately $16.1 million in fiscal year (FY) 2018 and approximately $22.5 million over five years, FY 2018 through FY 2022. Under the 2016 final rule, the cost to currently authorized small retailers was estimated to average approximately $245 per store in the first year and about $620 over five years (including ongoing costs of less than $100 per year for years after the first). The proposed rule would reduce those costs to about $160 per store in the first year and $500 over five years.

Risks:

NA