[Federal Register Volume 80, Number 135 (Wednesday, July 15, 2015)]
[Proposed Rules]
[Pages 41442-41447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17354]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / 
Proposed Rules  

[[Page 41442]]



DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Parts 271, 274 and 278

RIN 0584-AE40


Supplemental Nutrition Assistance Program: Implementation of the 
Agricultural Act of 2014 Purchasing and Delivery Services for the 
Elderly and Disabled

AGENCY: Food and Nutrition Service (FNS), USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This rule proposes to revise program regulations to implement 
changes made by the Agricultural Act of 2014 (the ``2014 Farm Bill''), 
which amends the definition of ``retail food store'' in the Food and 
Nutrition Act of 2008 (the FNA) to include governmental or private 
nonprofit food purchasing and delivery services (P&D Services) that 
purchase and deliver food to households in which the head of household 
is an individual who is unable to shop for food, and who is 60 years of 
age or older, or physically or mentally handicapped or otherwise 
disabled. Expansion of the definition of ``retail food store'' to allow 
P&D Services to become authorized Supplemental Nutrition Assistance 
Program (SNAP) retailers is expected to increase accessibility to the 
program for homebound elderly and disabled persons.

DATES: Written comments must be received on or before September 14, 
2015 to be assured of consideration.

ADDRESSES: FNS invites interested persons to submit written comments on 
this proposed rule. Comments may be submitted in writing by one of the 
following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
     Mail: Send comments to Vicky T. Robinson, Branch Chief, 
Retailer Management and Issuance Branch, Retailer Policy and Management 
Division, Rm. 418, 3101 Park Center Drive, Alexandria, Virginia 22302.
     All written comments submitted in response to this 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the substance of the comments and 
the identity of the individuals or entities submitting the comments 
will be subject to public disclosure. FNS will make the written 
comments publicly available on the Internet via http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Vicky T. Robinson, Branch Chief, 
Retailer Management and Issuance Branch, Retailer Policy and Management 
Division, Rm. 418, 3101 Park Center Drive, Alexandria, Virginia 22302, 
703-305-2476.

SUPPLEMENTARY INFORMATION: 

I. Background

    This rule proposes to implement a provision of the Agricultural Act 
of 2014 (Pub. L. 113-79; the ``2014 Farm Bill''), which amends the 
definition of ``retail food store'' in Section 3(o) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2011 note; the ``FNA'') to include P&D 
Services that purchase and deliver food to households in which the head 
of household is an individual who is unable to shop for food, and who 
is 60 years of age or older, or physically or mentally handicapped, or 
otherwise disabled. Today, retail food stores are authorized to accept 
SNAP benefits in exchange for eligible foods, as defined in program 
regulations at 7 CFR part 271, at Sec.  271.2. As a result of the 2014 
Farm Bill, approved P&D Services will also be permitted to accept SNAP 
benefits for the SNAP eligible foods that they purchase and deliver to 
qualifying households.
    Currently, a number of different types of firms may be authorized 
to accept SNAP benefits as retail food stores, including, but not 
limited to, public or private communal dining facilities, meal delivery 
services, private nonprofit cooperative food purchasing ventures and 
farmers' markets. All firms apply for authorization through FNS which 
may, or may not, authorize the firm as a SNAP retailer based upon the 
information provided in the application and a determination of whether 
the firm meets Program requirements and whether the firm's 
participation will further the purposes of the program. Accordingly, 
this rule proposes to amend and revise 7 CFR part 278 to include P&D 
Services as another type of firm which may be eligible for 
authorization as a retail food store, and to clarify and incorporate 
criteria for participation of P&D Services as SNAP retailers.
    Although FNS is proposing this rule to amend and revise regulations 
in accordance with the 2014 Farm Bill, the Farm Bill also permits the 
Secretary to authorize up to 20 P&D Services as retail food stores 
prior to issuance of rules. FNS plans to authorize these stores in the 
upcoming year for a one year trial period and will incorporate any 
lessons learned into additional guidance for P&D Services' 
participation. Proposed amendments and revisions to program regulations 
are discussed more fully in the next section of the preamble.

II. Discussion of the Rule's Provisions

7 CFR Part 271

    FNS is proposing three minor amendments or revisions to 7 CFR part 
271 to clarify the definition of ``retail food store'' and to 
distinguish and define P&D Services as retail food stores. All three 
changes are proposed for the definitions section located at Sec.  
271.2.
    First, FNS proposes to add to Sec.  271.2 a definition for ``food 
purchasing and delivery services'' which says that the term means 
governmental or private nonprofit food purchasing and delivery services 
that purchase eligible foods for, and delivers these foods to, 
households in which the head of household is an elderly or disabled 
member who is unable to shop for food. Second, FNS proposes to revise 
the definition of ``house-to-house trade route'' to clarify that it 
includes any retail food business operated by selling eligible foods in 
inventory from a truck bus, pushcart or other mobile vehicle. FNS 
proposes to add ``by selling eligible foods in inventory'' to this 
definition to distinguish P&D Services, which may also operate from a 
mobile vehicle, but which will not maintain an inventory of foods. 
Rather, P&D Services typically purchase eligible foods from another 
retailer and deliver these foods to SNAP households. Finally, FNS 
proposes to amend the definition of ``retail food store'' by adding 
paragraph (6) under

[[Page 41443]]

the term, to incorporate P&D services as part of the definition of 
``retail food store.''

7 CFR Part 274

    FNS proposes a few amendments to Sec.  274.7, to clarify which 
households may use SNAP benefits to purchase eligible foods through P&D 
Services and to clarify transaction limits for P&D services. 
Specifically, FNS proposes to amend paragraph (c) of this section 
regarding transaction limits. Currently, program regulations provide 
that no minimum dollar amount per transaction may be established. 
However, given that P&D services are providing a delivery service, it 
may not be economical or efficient for such services to make deliveries 
of small dollar values of eligible foods. Therefore, FNS proposes to 
amend this paragraph by allowing P&D Services to establish a minimum 
dollar amount per transaction. In proposed Sec.  278.2(m)(4), FNS 
specifies that P&D Services may require an order minimum of not more 
than $50.
    In Sec.  274.7, FNS inserts a new paragraph (i), which proposes to 
allow households in which the head of household is an elderly or 
disabled member who is unable to shop for food to use SNAP benefits to 
purchase eligible foods through a food purchasing and delivery service 
authorized in accordance with Sec.  278.1(j). FNS then moves current 
paragraph (i) to paragraph (j) and amends it. Currently, this paragraph 
says that State agencies must implement a method to ensure that access 
to prepared meals and hunting and fishing equipment is limited to 
eligible households. FNS proposes to amend this paragraph by adding the 
same implementation requirement of State agencies for households 
eligible for P&D Services.

7 CFR Part 278

    In this rule, FNS proposes to revise and amend 7 CFR part 278 to 
incorporate criteria for the authorization and participation of P&D 
Services throughout. Following is a discussion of the major changes to 
this part proposed in this rule. Additional minor conforming changes 
are also being made to Sec.  278.6, imposing the same penalty 
requirements of P&D Services as are required of other firms.
    As for major changes, FNS proposes to amend Sec.  278.1, which 
provides the process and criteria for authorization of various firms as 
retail food stores, by inserting paragraph (j), which adds P&D Services 
as a type of firm that may be authorized as a retail food store. FNS 
also proposes the requirements that P&D Services must meet in order to 
be authorized in this paragraph and clarifies that P&D Services may 
purchase and deliver to households foods or non-food items not eligible 
for purchase with SNAP benefits, as long as these purchases are not 
paid for using SNAP benefits.
    FNS then proposes to amend paragraph (k) of Sec.  278.1, as 
redesignated, which provides 5 years as the period of authorization for 
retail food stores. Because P&D Services do not maintain an inventory 
of eligible foods and must have third party sources of eligible foods, 
and because they work with particularly vulnerable SNAP households in 
their own homes, FNS finds it is prudent to require a shorter 
authorization period of 2 years. The shorter authorization period would 
allow FNS to have greater oversight of P&D Services, thereby ensuring 
stronger program integrity.
    FNS also proposes to amend Sec.  278.2(b) regarding equal treatment 
for SNAP customers. Specifically, one provision of this paragraph 
provides that FNS is not authorized to specify prices at which retail 
food stores may sell food. While this remains true, the 2014 Farm Bill 
specifies that food purchasing and delivery services must provide 
eligible foods to the participating household at the price paid by the 
service for the food, without any cost markup, as a condition of being 
authorized. Accordingly, FNS proposes to include this language in this 
paragraph (b). To note, this paragraph also prohibits retail food 
stores from charging tax on eligible foods. Likewise, P&D Services 
authorized as retail food stores would not be permitted to charge 
households tax on eligible foods.
    Finally, FNS proposes to add a new paragraph (m) to Sec.  278.2, 
which details the requirements of participation for retail food stores, 
by adding paragraphs (m)(1) through (7) which contain requirements 
specific to P&D Services. Paragraphs (m)(1) through (3) contain 
proposed requirements specifically articulated in the 2014 Farm Bill, 
while paragraphs (4) through (7) contain proposed requirements either 
necessary to ensure the legitimate use of SNAP benefits or to help 
ensure that the participation of P&D Services will further the purposes 
of the program.
    In paragraph (m)(1), FNS proposes to require that P&D Services 
notify the participating household, at the time the household places a 
food order, of any delivery fee that will be charged for the purchase 
and delivery of foods. FNS also proposes that, at the same time, P&D 
Services notify the household that a delivery fee cannot be paid with 
SNAP benefits. This ensures that the household can consider the cost of 
the delivery fee when making decisions regarding the use of the service 
and the purchase of foods, and that the household is aware that it must 
use another form of payment besides SNAP benefits for delivery fees. A 
clear understanding of the delivery fee and its payment method is 
important for both the household and the P&D Service to have a 
successful transaction.
    In paragraph (m)(2), FNS would require P&D Services to provide its 
food purchasing and delivery services at low or no cost, as required by 
the 2014 Farm Bill. Although the Farm Bill does not specify any limit 
on the amount of the delivery fee, FNS believes that, given the 
vulnerable population being served, it is important to propose a 
required limitation on the amount of the delivery fee to ensure that 
the cost of the delivery service is not excessive. Accordingly, FNS 
proposes that the delivery fee charged cannot exceed 25 percent of the 
order total, up to a maximum of $20 per delivery for all items 
purchased for delivery, including items not eligible for payment with 
SNAP benefits and which are paid for using another form of payment. 
However, FNS would encourage P&D Services to base any delivery fee, 
within these parameters, on a sliding scale taking into account factors 
such as the household's income.
    In paragraph (m)(3), FNS proposes to require P&D Services to sell 
eligible foods purchased for the household at the price paid by the 
service for the food without any additional cost markup. Again, this 
requirement is specified in the 2014 Farm Bill. P&D Services should 
also be aware that 278.2(b) prohibits retail food stores from charging 
tax on eligible foods purchased with SNAP benefits. Therefore, P&D 
Services would not be permitted to charge any tax paid for these foods 
to the households they serve.
    In paragraph (m)(4), FNS proposes to allow P&D Services, at their 
option, to impose a total order minimum of up to $50 per delivery for 
all items purchased for delivery, including items not eligible for 
payment with SNAP benefits and which are paid for using another form of 
payment. This provision recognizes that it may be difficult for P&D 
Services to provide their services for very small order amounts. 
However, a larger limit may make the service inaccessible to many 
eligible SNAP participants. The Agency would be very interested in 
receiving comments on this proposed provision.
    In paragraph (m)(5), FNS proposes to require P&D Services to be 
able to accept orders for eligible foods, and deliver these foods, at 
least monthly.

[[Page 41444]]

This allows the homebound elderly and disabled persons served by P&D 
Services to have access to eligible foods with some regularity, and it 
allows them the opportunity to plan their collective food purchases 
during any given month.
    In paragraph (m)(6), FNS proposes to require P&D Services to obtain 
the agreement of the household, at the time of the food order, of the 
date and timeframe of delivery. This proposed requirement, that both 
the P&D Service and the household agree to a specific date and 
timeframe of delivery, is intended to benefit both the service and the 
household. It is important that the household provides input and 
agreement as to the time that the delivery will take place. At the same 
time, it helps to ensure for the P&D Service that someone will be 
available to accept the delivery. While the proposed rule would not 
dictate the maximum window of delivery allowed, it is recommended that 
any delivery timeframe does not exceed two hours.
    In paragraph (m)(7), FNS proposes that P&D Services may not impose 
any conditions on the use of the food purchase and delivery service 
which place a hardship on the SNAP household, or which are unrelated to 
the purchase and delivery of foods. Such additional conditions would 
include a requirement to tip the delivery driver or to participate in 
religious or affiliate activities. The eligible SNAP participants 
served by P&D Services are particularly vulnerable and will be 
accepting deliveries in their own homes. Conditions placed on delivery 
of eligible foods to these households may be perceived as being 
coercive, even if not intended as such. Therefore, FNS believes it is 
important that any conditions imposed on food purchase and delivery 
services be limited to those strictly necessary, and related to the 
purchase and delivery of foods.
    Although FNS is proposing specific criteria related to the 
authorization and participation of P&D Services in SNAP, these 
retailers will be expected to meet all other existing program 
requirements for retailers, as appropriate. For example, in accordance 
with current 278.2(e), P&D Services may not redeem SNAP benefits before 
delivery of foods.

III. Procedural Matters

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. FNS considers that the benefits of this regulation justify 
its costs. Although governmental or private nonprofit food purchasing 
and delivery services may incur additional operational costs should the 
proposals in this rule become final, most SNAP retailers also incur 
such costs. These costs are outweighed by the benefit of the greater 
program flexibility of allowing food purchasing and delivery services 
to serve the homebound elderly and disabled.
    This proposed rule has been determined to be not significant and 
was not reviewed by the Office of Management and Budget (OMB) in 
conformance with Executive Order 12866.

Regulatory Impact Analysis

    This proposed rule has been designated as not significant by OMB. 
Therefore, no Regulatory Impact Analysis is required.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612) requires agencies 
to analyze the impact of rulemaking on small entities and consider 
alternatives that would minimize any significant impacts on a 
substantial number of small entities. Pursuant to that review, it has 
been certified that this proposed rule would not have a significant 
impact on a substantial number of small entities. Although the 
rulemaking proposes to allow additional small not-for-profit 
organizations to accept SNAP benefits, it is not anticipated that a 
substantial number of small entities will begin accepting SNAP benefits 
as a result of the rulemaking, nor will the impact on these small 
entities be significant given that some of these entities already use 
another process to accept SNAP benefits and because SNAP benefits are 
just one of the forms of payment accepted by these entities.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local and tribal 
governments and the private sector. Under section 202 of the UMRA, the 
Department generally must prepare a written statement, including a 
cost-benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures by State, local or Tribal 
governments, in the aggregate, or the private sector, of $100 million 
or more in any one year. When such a statement is needed for a rule, 
section 205 of the UMRA generally requires the Department to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the most cost effective or least burdensome alternative that achieves 
the objectives of the rule.
    This proposed rule contains no Federal mandates (under the 
regulatory provisions of Title II of the UMRA) for State, local and 
Tribal governments or the private sector of $100 million or more in any 
one year. Thus, the rule is not subject to the requirements of sections 
202 and 205 of the UMRA.

Executive Order 12372

    SNAP is listed in the Catalog of Federal Domestic Assistance 
Programs under 10.551. For the reasons set forth in the final rule in 7 
CFR part 3015, subpart V, and related notice (48 FR 29115, June 24, 
1983), this program is included in the scope of Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials.

Federalism Summary Impact Statement

    Executive Order 13132 requires Federal agencies to consider the 
impact of their regulatory actions on State and local governments. 
Where such actions have federalism implications, agencies are directed 
to provide a statement for inclusion in the preamble to the regulations 
describing the agency's considerations in terms of the three categories 
called for under section (6)(b)(2)(B) of Executive Order 13121.
    The Department has considered the impact of this proposed rule on 
State and local governments and has determined that this rule does not 
have federalism implications. Therefore, under section 6(b) of the 
Executive Order, a federalism summary is not required.

Executive Order 12988, Civil Justice Reform

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposed rule is intended to have preemptive 
effect with respect to any State or local laws, regulations or policies 
which conflict with its provisions or which would otherwise impede its 
full and timely implementation. This proposed rule is not intended to 
have retroactive effect unless so specified in the Effective Dates 
section of the final rule. Prior to any judicial challenge to the 
provisions of

[[Page 41445]]

the final rule, all applicable administrative procedures must be 
exhausted.

Civil Rights Impact Analysis

    FNS has reviewed this proposed rule in accordance with USDA 
Regulation 4300-4, ``Civil Rights Impact Analysis,'' to identify any 
major civil rights impacts the rule might have on program participants 
on the basis of religion, age, race, color, national origin, sex, 
political beliefs or disability. After a careful review of the rule's 
intent and provisions, FNS has determined that this proposed rule is 
not expected to negatively affect the participation of protected 
individuals in the Supplemental Nutrition Assistance Program.

Executive Order 13175

    Executive Order 13175 requires Federal agencies to consult and 
coordinate with Tribes on a government-to-government basis on policies 
that have Tribal implications, including regulations, legislative 
comments or proposed legislation, and other policy statements or 
actions that have substantial direct effects on one or more Indian 
Tribes, on the relationship between the Federal Government and Indian 
Tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian Tribes. On February 18, 2015, as part 
of its regular quarterly Tribal consultation schedule, USDA engaged in 
a consultative session to obtain input by Tribal officials, or their 
designees, and Tribal members concerning the effect of this and other 
rules on the Tribes or Indian Tribal governments. No concerns regarding 
the provisions of this proposed rule were expressed.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. chap. 35; 5 CFR part 
1320) requires the Office of Management and Budget (OMB) approve all 
collections of information by a Federal agency before they can be 
implemented. Respondents are not required to respond to any collection 
of information unless it displays a current valid OMB control number. 
This rule does not contain information collection requirements subject 
to approval by the Office of Management and Budget under the Paperwork 
Reduction Act of 1994.

E-Government Act Compliance

    The Department is committed to complying with the E-Government Act, 
to promote the use of the Internet and other information technologies 
to provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

List of Subjects

7 CFR Part 271

    Food stamps, Grant programs-social programs, Reporting and 
recordkeeping requirements.

7 CFR Part 274

    Food stamps, Grant programs-social programs, Reporting and 
recordkeeping requirements.

7 CFR Part 278

    Banks, banking, Food stamps, Grant programs-social programs, 
Penalties, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, 7 CFR parts 271, 274, and 
278 are proposed to be amended as follows:

PART 271--GENERAL INFORMATION AND DEFINITIONS

0
1. The authority citation for part 271 continues to read as follows:

    Authority: 7 U.S.C. 2011-2036.

0
2. Amend Sec.  271.2 as follows:
0
a. Add the definition, in alphabetical order, for ``Food purchasing and 
delivery services''; and
0
b. Revise the definitions of ``House-to-house trade route'' and 
``Retail food store.''
    The addition and revisions read as follows:


Sec.  271.2  Definitions.

* * * * *
    Food purchasing and delivery services means governmental or private 
nonprofit food purchasing and delivery services that purchase eligible 
foods for, and delivers these foods to, households in which the head of 
household is an elderly or disabled member who is unable to shop for 
food.
* * * * *
    House-to-house trade route means any retail food business operated 
by selling eligible foods in inventory from a truck, a bus, a pushcart, 
or other mobile vehicle.
* * * * *
    Retail food store means:
    (1) An establishment or house-to-house trade route that sells food 
for home preparation and consumption normally displayed in a public 
area, and either offers for sale, on a continuous basis, a variety of 
foods in sufficient quantities in each of the four categories of staple 
foods including perishable foods in at least two such categories 
(Criterion A) as set forth in Sec.  278.1(b)(1) of this chapter, or has 
more than 50 percent of its total gross retail sales in staple foods 
(Criterion B) as set forth in Sec.  278.1(b)(1) of this chapter as 
determined by visual inspection, marketing structure, business 
licenses, accessibility of food items offered for sale, purchase and 
sales records, counting of stockkeeping units, or other inventory or 
accounting recordkeeping methods that are customary or reasonable in 
the retail food industry as set forth in Sec.  278.1(b)(1) of this 
chapter. Entities that have more than 50 percent of their total gross 
retail sales in hot and/or cold prepared, ready-to-eat foods that are 
intended for immediate consumption either for carry-out or on-premises 
consumption, and require no additional preparation, are not eligible 
for SNAP participation as retail food stores under Sec.  278.1(b)(1) of 
this chapter.
    (2) Public or private communal dining facilities and meal delivery 
services; private nonprofit drug addict or alcoholic treatment and 
rehabilitation programs; publicly operated community mental health 
centers which conduct residential programs for drug addicts and/or 
alcoholics; public or private nonprofit group living arrangements; 
public or private nonprofit shelters for battered women and children; 
public or private nonprofit establishments, approved by an appropriate 
State or local agency, that feed homeless persons; or a restaurant that 
contracts with an appropriate State agency to provide meals at 
concessional (low or reduced) prices to homeless SNAP households;
    (3) Any stores selling equipment for procuring food by hunting and 
fishing to eligible households in Alaska, as specified in the 
definition of eligible foods;
    (4) Any private nonprofit cooperative food purchasing venture, 
including those whose members pay for food prior to receipt of the 
food;
    (5) A farmers' market; and
    (6) A governmental or private nonprofit food purchasing and 
delivery service that purchases eligible foods for, and delivers these 
foods to, households in which the head of household is an elderly or 
disabled member who is unable to shop for food.
* * * * *

PART 274--ISSUANCE AND USE OF PROGRAM BENEFITS

0
3. The authority citation for part 274 continues to read as follows:

    Authority: 7 U.S.C. 2011-2036.

0
4. In Sec.  274.7:
0
a. Revise paragraph (c); and

[[Page 41446]]

0
b. Redesignate paragraph (i) as paragraph (j) and revise it, and add a 
new paragraph (i).
    The revisions and addition read as follows:


Sec.  274.7  Benefit redemption by eligible households.

* * * * *
    (c) Transaction limits. No minimum dollar amount per transaction or 
maximum limit on the number of transactions shall be established, 
except that food purchasing and delivery services authorized under 
Sec.  278.1(j) may establish a minimum dollar amount per transaction in 
accordance with Sec.  278.2(m)(4). In addition, no transaction fees 
shall be imposed on SNAP households utilizing the EBT system to access 
their benefits.
* * * * *
    (i) Eligible households in which the head of household is an 
elderly or disabled member who is unable to shop for food may use 
Program benefits to purchase eligible foods through a food purchasing 
and delivery service authorized in accordance with Sec.  278.1.(j) of 
this chapter.
    (j) State agencies shall implement a method to ensure that access 
to prepared meals, hunting and fishing equipment, or delivered foods is 
limited to eligible households as described in paragraphs (g) through 
(i) of this section.

PART 278--PARTICIPATION OF RETAIL FOOD STORES, WHOLESALE FOOD 
CONCERNS AND INSURED FINANCIAL INSTITUTIONS

0
5. The authority citation for part 278 continues to read as follows:

    Authority: 7 U.S.C. 2011-2036.

0
6. In Sec.  278.1:
0
a. Redesignate paragraphs (j) through (t) as paragraphs (k) through 
(u), respectively, and add new paragraph (j);
0
b. Revise newly redesignated paragraph (k);
0
c. Amend newly redesignated paragraph (l)(1) by removing the words, 
``or (i)'' and adding in their place the words, ``,(i) or (j)'';
0
d. Amend newly redesignated paragraph (m)(1)(ii) by removing the words, 
``or (i)'' and adding in their place the words, ``(i) or (j)'';
0
e. Amend newly redesignated paragraph (m)(1)(iii) by removing the 
words, ``paragraph (k)(2)'' and adding in their place the words, 
``paragraph (l)(2)'';
0
f. Amend newly redesignated paragraph (m)(1)(iv) by removing the words, 
``paragraph (k)(3)'' and adding in their place the words, ``paragraph 
(l)(3)'';
0
g. Amend newly redesignated paragraph (p) by removing the words, 
``paragraph (k)'' and adding in their place the words, ``paragraph 
(l)'';
0
h. Amend newly redesignated paragraph (r) by removing the words, 
``paragraph (q)(2)'' and ``paragraph (q)(3)'' and adding in their 
places the words, ``paragraph (r)(2)'' and ``paragraph (r)(3)'', 
respectively;
0
i. Amend newly redesignated paragraph (r)(1)(i) by removing the words, 
``paragraph (q)(1)(ii)'' and adding in their place the words, 
``paragraph (r)(1)(ii)'';
0
j. Amend newly redesignated paragraph (r)(1)(ii) by removing the words, 
``paragraph (q)(1)(i)'' and adding in their place the words, 
``paragraph (r)(1)(i)'';
0
k. Amend newly redesignated paragraph (r)(1)(v) by removing the words, 
``paragraph (q)(1)(iv)'' and adding in their place the words, 
``paragraph (r)(1)(iv)'';
0
l. Amend newly redesignated paragraph (r)(2)(iv) by removing the words, 
``paragraph (q)(2)(ii)'' and adding in their place the words, 
``paragraph (r)(2)(ii)'', and by removing the words, ``paragraph 
(q)(2)(iv) and adding in their place the words, ``paragraph 
(r)(2)(iv)''; and
0
m. Remove the Effective Date Note.
    The revisions and additions read as follows:


Sec.  278.1  Approval of retail food stores and wholesale food 
concerns.

* * * * *
    (j) Food purchasing and delivery services for households with an 
elderly or disabled member. FNS shall authorize as retail food stores 
governmental or private nonprofit food purchasing and delivery services 
that purchase eligible food for, and deliver the food to, households in 
which the head of household, as defined in Sec.  273.1(d) of this 
chapter, is an elderly or disabled member, as defined in Sec.  271.2 of 
this chapter, who is unable to shop for food. Such services must meet 
the requirements of paragraphs (a) and (b) of this section. Purchasing 
and delivery services may purchase and deliver foods or non-food items 
not eligible for purchase with SNAP benefits, as long as these items 
are not paid for with SNAP benefits. Private nonprofit food purchasing 
and delivery services eligible for authorization include only those 
which meet the requirements of paragraph (d)(1) of this section.
    (k) Authorization. Upon approval, FNS shall issue a nontransferable 
authorization card to the firm. The authorization card shall be valid 
only for the time period for which the firm is authorized to accept and 
redeem SNAP benefits. The authorization card shall be retained by the 
firm until such time as the authorization period has ended, 
authorization in the program is superseded, or the card is surrendered 
or revoked as provided in this part. All firms, except those authorized 
under paragraph (j) of this section, will be authorized in the program 
for a period of 5 years. Firms authorized under paragraph (j) of this 
section will be authorized for a maximum period of 2 years. The 
specification of an authorization period in no way precludes FNS from 
periodically requesting information from a firm for purposes of 
reauthorization in the program or from withdrawing or terminating the 
authorization of a firm in accordance with this part.
* * * * *
0
7. In Sec.  278.2 revise the second and third sentences of paragraph 
(b) and add paragraph (m) to read as follows:


Sec.  278.2  Participation of retail food stores.

* * * * *
    (b) * * * Although nothing in this part may be construed as 
authorizing FNS to specify the prices at which retail food stores may 
sell food, food purchasing and delivery services must provide eligible 
foods to the participating household at the price paid by the service 
for the food, without any cost markup. Further, public or private 
nonprofit homeless meal providers may only request voluntary use of 
SNAP benefits from homeless SNAP recipients and may not request such 
households using SNAP benefits to pay more than the average cost of the 
food purchased by the public or private nonprofit homeless meal 
provider contained in a meal served to the patrons of the meal service. 
* * *
* * * * *
    (m) Food purchasing and delivery services authorized under Sec.  
278.1(j) must:
    (1) Notify the participating household, at the time the household 
places a food order, the amount of any delivery fee that will be 
charged for the purchase and delivery of foods, and that the delivery 
fee cannot be paid for with SNAP benefits;
    (2) Ensure that the food purchasing and delivery service is 
provided at low or no cost, and that any delivery fee charged will not 
exceed 25 percent of the order total, up to a maximum of $20 per 
delivery for all items purchased, including eligible foods purchased 
with SNAP benefits and items purchased with other tender, combined;

[[Page 41447]]

    (3) Sell eligible foods purchased for the household at the price 
paid by the service for the food without any additional cost markup;
    (4) Not impose a total order minimum of more than $50 per delivery 
for all items purchased, including eligible foods purchased with SNAP 
benefits and items purchased with other tender, combined;
    (5) Offer to accept orders and be able to deliver foods at least 
monthly;
    (6) Obtain the agreement of the participant, at the time of the 
food order, of the date and timeframe of delivery; and
    (7) Not impose any conditions on the use of the food purchase and 
delivery service which place a hardship on the SNAP household or which 
are unrelated to the purchase and delivery of foods, such as tipping of 
the delivery driver or participation in religious or other affiliate 
activities.


Sec.  278.6  [Amended]

0
8. In Sec.  278.6:
0
a. Amend paragraph (e)(1)(iii)(A) by removing the words, ``and (h)'' 
and adding in their place the words, ``,(h) and (i)''.
0
b. Amend paragraph (l) by removing the references, ``Sec.  278.1(k)'' 
and ``Sec.  278.1(j)'' and adding in their place the references, 
``Sec.  278.1(l)'' and ``Sec.  278.1(k)'', wherever they occur, 
respectively.
0
c. Amend paragraph (m) by removing the references, ``Sec.  278.1(k)'' 
and ``Sec.  278.1(j)'' and adding in their place the references, 
``Sec.  278.1(l)'' and ``Sec.  278.1(k)'', respectively.

    Dated: June 21, 2015.
Jeffrey J. Tribiano,
Acting Administrator, Food and Nutrition Service.
[FR Doc. 2015-17354 Filed 7-14-15; 8:45 am]
BILLING CODE 3410-30-P