81_FR_19565 81 FR 19500 - Enhancing Retailer Standards in the Supplemental Nutrition Assistance Program (SNAP) Clarification of Proposed Rule and Extension of Comment Period

81 FR 19500 - Enhancing Retailer Standards in the Supplemental Nutrition Assistance Program (SNAP) Clarification of Proposed Rule and Extension of Comment Period

DEPARTMENT OF AGRICULTURE
Food and Nutrition Service

Federal Register Volume 81, Issue 65 (April 5, 2016)

Page Range19500-19502
FR Document2016-07793

This action extends the comment period and responds to questions posed by commenters about certain aspects of a proposed rule pertaining to the eligibility of Supplemental Nutrition Assistance Program (SNAP) retail food stores that was published in the Federal Register on February 17, 2016. The Agricultural Act of 2014 (2014 Farm Bill) amended the Food and Nutrition Act of 2008 (the Act) to increase the requirement that certain SNAP authorized retail food stores have available on a continual basis at least three varieties of items in each of four staple food categories, to a mandatory minimum of seven varieties. The 2014 Farm Bill also amended the Act to increase, for certain SNAP authorized retail food stores, the minimum number of categories in which perishable foods are required from two to three. The proposed rule would codify these mandatory requirements.

Federal Register, Volume 81 Issue 65 (Tuesday, April 5, 2016)
[Federal Register Volume 81, Number 65 (Tuesday, April 5, 2016)]
[Proposed Rules]
[Pages 19500-19502]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-07793]


========================================================================
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.

========================================================================


Federal Register / Vol. 81, No. 65 / Tuesday, April 5, 2016 / 
Proposed Rules

[[Page 19500]]



DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Parts 271 and 278

RIN 0584-AE27


Enhancing Retailer Standards in the Supplemental Nutrition 
Assistance Program (SNAP) Clarification of Proposed Rule and Extension 
of Comment Period

AGENCY: Food and Nutrition Service (FNS), U.S. Department of 
Agriculture (USDA).

ACTION: Clarification of proposed rule; extension of comment period.

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

SUMMARY: This action extends the comment period and responds to 
questions posed by commenters about certain aspects of a proposed rule 
pertaining to the eligibility of Supplemental Nutrition Assistance 
Program (SNAP) retail food stores that was published in the Federal 
Register on February 17, 2016. The Agricultural Act of 2014 (2014 Farm 
Bill) amended the Food and Nutrition Act of 2008 (the Act) to increase 
the requirement that certain SNAP authorized retail food stores have 
available on a continual basis at least three varieties of items in 
each of four staple food categories, to a mandatory minimum of seven 
varieties. The 2014 Farm Bill also amended the Act to increase, for 
certain SNAP authorized retail food stores, the minimum number of 
categories in which perishable foods are required from two to three. 
The proposed rule would codify these mandatory requirements.

DATES: The comment period for the proposed rule that was published on 
February 17, 2016 (81 FR 8015) has been extended from April 18, 2016 to 
May 18, 2016. To be assured of consideration, comments must be 
postmarked on or before May 18, 2016.

ADDRESSES: 
    The Food and Nutrition Service (FNS), USDA, invites interested 
persons to submit comments. In order to ensure proper receipt, comments 
may only be submitted through one of the following methods:
     Preferred method: Federal e-Rulemaking Portal: Go to 
http://www.regulations.gov and follow the online instructions for 
submitting comments on docket FNS-2016-0018.
     Mail: Written comments should be addressed to Vicky 
Robinson, Chief, Retailer Management and Issuance Branch, Retailer 
Policy and Management Division, Room 418, 3101 Park Center Drive, 
Alexandria, Virginia 22302.
    All comments submitted in response to this notice 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 comments publicly available on the 
Internet via: http://www.regulations.gov. All submissions will be 
available for public inspection at the address above during regular 
business hours (8:30 a.m. to 5:30 p.m.), Monday through Friday.

FOR FURTHER INFORMATION CONTACT: 
    Address any questions regarding this notice to Vicky Robinson, 
Chief, Retailer Management and Issuance Branch, Retailer Policy and 
Management Division at the Food and Nutrition Service (FNS), USDA, 3101 
Park Center Drive, Alexandria, Virginia 22302. Ms. Robinson can also be 
reached by telephone at (703)-305-2476 or by email at 
[email protected] during regular business hours (8:30 a.m. to 
5:30 p.m.) Monday through Friday.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Agricultural Act of 2014 (2014 Farm Bill) amended the Food and 
Nutrition Act of 2008 (the Act) to increase the requirement that 
certain SNAP authorized retail food stores have available on a 
continual basis at least three varieties of items in each of four 
staple food categories, to a mandatory minimum of seven varieties. The 
2014 Farm Bill also amended the Act to increase, for certain SNAP 
authorized retail food stores, the minimum number of categories in 
which perishable foods are required from two to three. The proposed 
rule would codify these mandatory requirements.
    Further, using existing authority in the Act and feedback from a 
Request for Information that was published in the Federal Register on 
August 20, 2013, and that included five listening sessions in urban and 
rural locations across the nation and generated 233 public comments, 
FNS proposed several additional changes. Among other items, these 
proposed changes would address depth of stock, amend the definition of 
staple foods, and amend the definition of ``retail food store'' to 
clarify when a retailer is a restaurant rather than a retail food 
store.
    Additionally, this action extends the comment period for the 
proposed rule. Since publication of the proposed rule, several entities 
have requested an extension of the comment period in order to allow 
ample time for all stakeholders to comment on the rulemaking process. 
The comment period, therefore, is being extended 30 days in order to 
provide additional time for interested parties to review and comment on 
this proposed rule. To be assured of consideration, comments on this 
proposed rule must be received by FNS on or before May 18, 2016.

II. Clarification and Request For Comment

    Commenters have posed similar questions to FNS concerning 
provisions of the proposed rule, in some instances indicating possible 
misunderstandings of the proposal. FNS appreciates these comments and 
for this reason, as well as to help ensure that comments submitted are 
of most value to the Agency, FNS is providing the following additional 
clarifications and requests for comment regarding certain provisions 
proposed in this rule.
    FNS encourages commenters to review and comment on all of the 
issues raised in the proposed rulemaking, as well as on issues examined 
in the supporting Regulatory Impact Analysis and Interim Regulatory 
Flexibility Analysis prepared for the proposed rule and published as 
part of the docket in Supporting Documents on Regulations.gov.

1. Under the proposed rule, what would be the varieties of items 
retailers would need to stock?

    As required by Section 3(o)(1)(A) of the Food and Nutrition Act of 
2008 (the Act), as amended by the Agricultural Act of 2014 (2014 Farm 
Bill), retailers

[[Page 19501]]

would be required to stock at least 7 varieties in each of the 4 staple 
food categories. Section 3(q) of the Act defines the 4 staple food 
categories as dairy products; breads and cereals; meats, poultry, and 
fish; and fruits and vegetables. FNS does not have discretion to alter 
the statutory 7 variety requirement.
    However, FNS appreciates the questions it has received from 
commenters inquiring about the items that constitute variety under the 
proposed rule in the four staple food categories and encourages 
additional comments from the public on this point. FNS is particularly 
interested in comments from the public as to whether and how variety 
should take into account the differences between products within staple 
food categories (generally and individually), and what factors should 
be considered when making such distinctions.
    For example, for purposes of variety in the meat, poultry, and fish 
category, FNS would appreciate public comments on whether to consider 
food items that come from the same type of animal or species as 
separate varieties in this food category (e.g., raw chicken breast 
versus refrigerated grilled chicken breast; roast beef versus ground 
beef; sliced turkey versus turkey bacon; fresh bluefin tuna steaks 
versus canned albacore tuna). FNS would also appreciate public comments 
regarding the basis by which one could consider food items that come 
from the same type of animal or species as separate varieties, in this 
or other staple food categories. Finally, FNS would like to clarify its 
intent in the proposed rule for the meat, poultry, and fish staple food 
category to include other varieties, such as eggs and meat alternatives 
(e.g., tofu, gluten, or mycoprotein).
    Examples of how a retailer might stock 7 varieties in each of the 4 
staple food categories follow further below.

2. Under the proposed rule, how many perishable items would retailers 
need to stock?

    Section 3(o)(1)(A) of the Act, as amended by the 2014 Farm Bill, 
requires that retailers would be required to stock ``perishable foods 
in at least 3 of the [staple food] categories.'' Therefore, FNS has 
proposed to codify in regulation the statutory requirement that 
retailers stock at least one perishable variety in 3 of the 4 staple 
food categories.
    The proposed rule does not propose to change the meaning of 
``perishable'' in the current regulations. Currently, under 7 CFR 
278.1(b)(1)(ii)(B), perishable foods include items that are either 
frozen or refrigerated staple food items and as well as fresh, 
unrefrigerated staple food items that will spoil or suffer significant 
deterioration in quality within 2 to 3 weeks (e.g., bread).
    An example of how a retailer might meet the perishables requirement 
with one perishable variety in 3 of the 4 staple food categories 
follows further below.

3. Under the proposed rule, what would qualify as multiple ingredient 
foods?

    Currently, 7 CFR 271.2 provides that ``commercially processed foods 
and prepared mixtures with multiple ingredients shall only be counted 
in one staple food category'' for the purposes of determining 
eligibility of any firm.
    Under the proposed rule, commercially processed foods and prepared 
mixtures with multiple ingredients that do not represent a single 
staple food category (e.g., cold pizza, macaroni and cheese, 
sandwiches, TV dinners, mixed soup varieties, and pot pies), would not 
be counted (toward variety, perishables, or depth of stock) as staple 
foods for purposes of determining a firm's eligibility to participate 
in SNAP as a retail food store. Under the proposed rule, multiple 
ingredient foods would not include such items as yogurt, cheeses, and 
cereals, as the primary staple food ingredient is clearly represented 
and easily recognized.
    FNS appreciates the questions it has received from commenters on 
multiple ingredient foods under the proposed rule and encourages 
additional comments from the public on this provision of the proposed 
rule. FNS is particularly interested in comments from the public as to 
whether certain types of foods with multiple ingredients should 
continue to be counted as staple foods, including toward variety, 
perishables, or depth of stock requirements. For example, for the 
purposes of staple food categorization, FNS would appreciate public 
comments on whether and how to categorize certain foods with multiple 
staple food ingredients, such as prepared salads, pizzas, pot pies, 
macaroni and cheese, stuffed pastas, and others, as offered by 
commenters, for purposes of making a retailer eligibility determination 
for SNAP authorization.
    Examples of additional multiple ingredient foods that would and 
would not count as staple foods under the proposed rule follow.
    Multiple ingredient foods are currently eligible for purchase with 
SNAP benefits, and this proposed rule would not change the eligibility 
of these foods for purchase with SNAP benefits in authorized stores.

4. Under the proposed rule, how many total items would retailers be 
required to stock?

    Currently SNAP regulations require that SNAP authorized stores have 
available on a continuous basis at least 3 varieties of items in each 
of the 4 staple food categories with perishable varieties in at least 2 
of the 4 staple food categories. Under current SNAP regulations, 
retailers may be SNAP authorized with a minimum stock of at least 12 
food items, including at least 2 perishable items. As noted in the 
proposed rule, these requirements have been changed by the Food and 
Nutrition Act of 2008 (the Act), as amended by the Agricultural Act of 
2014 (2014 Farm Bill).
    Section 3(o)(1)(A) of the Act now requires that retailers stock at 
least 7 varieties in each of the 4 staple food categories and 
perishable foods in at least 3 of the 4 staple food categories. That 
means that retailers are required to stock 28 items on a continuous 
basis. At least 3 of these items must be perishable.
    Under the proposed rule, which would require a depth of stock 
defined as 6 stocking units, SNAP-authorized retailers would be 
required to stock a new minimum inventory requirement of 168 staple 
food items.
    Based on the statutory requirement that at least 1 perishable 
variety be stocked in 3 of the 4 staple food categories, and with depth 
of stock discretionarily defined as 6 stock keeping units, this 
proposed rule would require that a store stock at least 18 perishable 
staple food items (within the 168 staple food item total).
    According to Department analysis, contained in the Interim 
Regulatory Flexibility Analysis prepared for the proposed rule and 
published as part of the docket in Supporting Documents on 
Regulations.gov, the average small store would need to add an 
additional 54 additional staple food items, at a cost of around $140, 
in order to meet the proposed eligibility criteria. As set forth in the 
Interim Regulatory Flexibility Analysis for the proposed rulemaking, 
FNS estimates that purchasing all 168 staple food items would cost a 
store approximately $400, including a one-time inventory carrying cost 
of 25% to account for storage costs and potential spoilage. FNS 
believes that adding new inventory would be a one-time cost, a cost 
that would be recouped as inventory is sold.
    See the full Regulatory Impact Analysis and Interim Regulatory

[[Page 19502]]

Flexibility Analysis for further details. https://www.regulations.gov/#!documentDetail;D=FNS-2016-0018-0006.
    More generally, FNS appreciates the questions it has received from 
commenters on the number of total food items that retailers would be 
required to stock under the proposed rule and encourages additional 
comments from the public on this provision of the proposed rule, 
including comments on the impacts (such as benefits, costs, or small 
business impacts) associated with proposals that would alter the total 
food items that retailers would be required to stock.
    FNS also appreciates the questions from commenters it has received 
regarding how the proposed requirements would affect different types of 
retail food stores and encourages additional comments from the public 
on potential retail food store impacts.

EXAMPLES of Acceptable Variety, Perishables, and Depth of Stock Under 
the Proposed Rule

    Meat, Poultry, and Fish--the proposed rule would require stocking 
at least 7 varieties in this staple food category; below are ten 
examples of what FNS would consider different varieties. This is an 
illustrative list and not an exhaustive list of items that FNS proposes 
to be acceptable varieties in this staple food category.
    Perishable:

1. Sliced turkey breast--6 packages
2. Shrimp--6 packages
3. Sliced ham--6 packages
4. Fresh or frozen ground beef- 6 packages
5. Fresh or frozen catfish--6 packages
6. Eggs--6 cartons (any size)
7. Frozen lamb chops--6 packages
8. Tofu (meat substitute)--6 packages
    Non-perishable:

9. Canned tuna--6 cans
10. Canned chicken--6 cans
    Fruits, Vegetables--the proposed rule would require stocking at 
least 7 varieties in this category; below are ten examples of what FNS 
would consider different varieties. This is not an exhaustive list of 
acceptable varieties in this staple food category. Under the proposed 
rule, the first 7 varieties listed below would be considered perishable 
varieties in this staple food group, provided that they will spoil or 
suffer significant deterioration in quality within 2 to 3 weeks.
    Perishable:

1. Fresh bananas--6 bananas
2. Fresh oranges--6 oranges
3. Fresh pears--6 pears
4. Frozen raspberries--6 packages
5. Frozen spinach--6 packages
6. Fresh baby carrots--6 packages
7. Fresh celery sticks--6 packages
    Non-Perishable:

8. Apple sauce--6 jars
9. Canned corn--6 cans
10. Canned peas--6 cans
    Dairy--the proposed rule would require stocking at least 7 
varieties in this category; below are ten examples of what FNS would 
consider different varieties This is not an exhaustive list of 
acceptable varieties in this staple food category. Under the proposed 
rule, the first 8 varieties listed below would likely be considered 
perishable varieties in this staple food group, provided that they will 
spoil or suffer significant deterioration in quality within 2 to 3 
weeks.
    Perishable:

1. Fresh cow's milk--6 containers
2. Fresh goat's milk--6 containers
3. Fresh yogurt--6 containers
4. Fresh sour cream--6 packages
5. Fresh cheddar cheese (hard)--6 packages
6. Fresh cream cheese (soft)--6 packages
7. Frozen butter--6 packages
8. Margarine--6 containers
    Non-Perishable:

9. Infant Formula--6 containers
10. Almond Milk--6 containers
    Breads or Cereals--the proposed rule would require stocking at 
least 7 varieties in this category; below are ten examples of what FNS 
would consider different varieties. This is not an exhaustive list of 
acceptable varieties in this staple food category. Under the proposed 
rule, the first 5 varieties listed below would likely be considered 
perishable varieties in this staple food group, provided that they will 
spoil or suffer significant deterioration in quality within 2 to 3 
weeks.
    Perishable:

1. Bread--any combination (wheat, white, rye)--6 packages
2. Tortillas (flour, corn)--6 packages
3. Bagels (white, wheat, other)--6 items
4. Pitas--6 packages
5. Frozen dinner rolls--6 packages
    Non-Perishable:

6. Rice--any combination (long-grain, brown)--6 packages
7. Pasta--any combination (spaghetti, lasagna noodles, rice noodles)--6 
packages
8. Cereal- any combination (wheat, rice, chex, granola, etc)--6 
packages
9. Flour (white, wholegrain, any combination)--6 packages
10. Infant Cereal--6 packages

EXAMPLES of Multiple Ingredient Foods That Would be Excluded for 
Purposes of Retailer Eligibility Decisions Under the Proposed Rule

[cir] Pizzas (contains dough, cheese, and tomato)
[cir] Multiple ingredient soups, e.g. minestrone (contains vegetables 
and pasta)
[cir] Multiple ingredient canned foods, e.g. ravioli (contains 
vegetables, cheese, and pasta)
[cir] Chicken pot pies (contains dough, vegetables, and chicken)
[cir] Frozen TV dinners, e.g. chicken dinner (contains chicken, 
potatoes, and vegetables)
[cir] Sandwiches (contains meat, cheese, bread, and vegetables)
[cir] Lunch-snack trays (contains meat, cheese, and crackers)

EXAMPLES of Multiple Ingredient Foods That Would Continue to Count as 
Staple Foods (i.e., the Primary Staple Food Category Ingredient is 
Clearly Represented and Easily Recognized)

[cir] Mixed vegetables (frozen or canned; contains a variety of 
vegetables)
[cir] Boxed breakfast cereals (intended to served heated or cold; 
contains a variety of grains)

III. Comment Period Extension

    Since publication of the proposed rule, several entities, including 
SNAP retail trade groups, have requested an extension of the comment 
period in order to allow ample time for all stakeholders to comment on 
the rulemaking process. The comment period, therefore, is being 
extended 30 days in order to provide additional time for interested 
parties to review the proposed rule. To be assured of consideration, 
comments on the proposed rule must be received by FNS on or before May 
18, 2016.

    Dated: March 31, 2016.
Audrey Rowe,
Administrator, Food and Nutrition Service.
[FR Doc. 2016-07793 Filed 4-4-16; 8:45 am]
 BILLING CODE 3410-30-P



                                               19500

                                               Proposed Rules                                                                                                 Federal Register
                                                                                                                                                              Vol. 81, No. 65

                                                                                                                                                              Tuesday, April 5, 2016



                                               This section of the FEDERAL REGISTER                    to submit comments. In order to ensure                   Further, using existing authority in
                                               contains notices to the public of the proposed          proper receipt, comments may only be                   the Act and feedback from a Request for
                                               issuance of rules and regulations. The                  submitted through one of the following                 Information that was published in the
                                               purpose of these notices is to give interested          methods:                                               Federal Register on August 20, 2013,
                                               persons an opportunity to participate in the               • Preferred method: Federal e-                      and that included five listening sessions
                                               rule making prior to the adoption of the final
                                                                                                       Rulemaking Portal: Go to http://                       in urban and rural locations across the
                                               rules.
                                                                                                       www.regulations.gov and follow the                     nation and generated 233 public
                                                                                                       online instructions for submitting                     comments, FNS proposed several
                                               DEPARTMENT OF AGRICULTURE                               comments on docket FNS–2016–0018.                      additional changes. Among other items,
                                                                                                          • Mail: Written comments should be                  these proposed changes would address
                                               Food and Nutrition Service                              addressed to Vicky Robinson, Chief,                    depth of stock, amend the definition of
                                                                                                       Retailer Management and Issuance                       staple foods, and amend the definition
                                               7 CFR Parts 271 and 278                                 Branch, Retailer Policy and                            of ‘‘retail food store’’ to clarify when a
                                                                                                       Management Division, Room 418, 3101                    retailer is a restaurant rather than a
                                               RIN 0584–AE27
                                                                                                       Park Center Drive, Alexandria, Virginia                retail food store.
                                                                                                       22302.                                                   Additionally, this action extends the
                                               Enhancing Retailer Standards in the
                                                                                                          All comments submitted in response                  comment period for the proposed rule.
                                               Supplemental Nutrition Assistance
                                                                                                       to this notice will be included in the                 Since publication of the proposed rule,
                                               Program (SNAP) Clarification of
                                                                                                       record and will be made available to the               several entities have requested an
                                               Proposed Rule and Extension of
                                                                                                       public. Please be advised that the                     extension of the comment period in
                                               Comment Period
                                                                                                       substance of the comments and the                      order to allow ample time for all
                                               AGENCY:  Food and Nutrition Service                     identity of the individuals or entities                stakeholders to comment on the
                                               (FNS), U.S. Department of Agriculture                   submitting the comments will be subject                rulemaking process. The comment
                                               (USDA).                                                 to public disclosure. FNS will make the                period, therefore, is being extended 30
                                               ACTION: Clarification of proposed rule;                 comments publicly available on the                     days in order to provide additional time
                                               extension of comment period.                            Internet via: http://www.regulations.gov.              for interested parties to review and
                                                                                                       All submissions will be available for                  comment on this proposed rule. To be
                                               SUMMARY:   This action extends the                      public inspection at the address above                 assured of consideration, comments on
                                               comment period and responds to                          during regular business hours (8:30 a.m.               this proposed rule must be received by
                                               questions posed by commenters about                     to 5:30 p.m.), Monday through Friday.                  FNS on or before May 18, 2016.
                                               certain aspects of a proposed rule                      FOR FURTHER INFORMATION CONTACT:                       II. Clarification and Request For
                                               pertaining to the eligibility of                           Address any questions regarding this                Comment
                                               Supplemental Nutrition Assistance                       notice to Vicky Robinson, Chief, Retailer
                                               Program (SNAP) retail food stores that                                                                            Commenters have posed similar
                                                                                                       Management and Issuance Branch,                        questions to FNS concerning provisions
                                               was published in the Federal Register                   Retailer Policy and Management
                                               on February 17, 2016. The Agricultural                                                                         of the proposed rule, in some instances
                                                                                                       Division at the Food and Nutrition                     indicating possible misunderstandings
                                               Act of 2014 (2014 Farm Bill) amended                    Service (FNS), USDA, 3101 Park Center
                                               the Food and Nutrition Act of 2008 (the                                                                        of the proposal. FNS appreciates these
                                                                                                       Drive, Alexandria, Virginia 22302. Ms.                 comments and for this reason, as well as
                                               Act) to increase the requirement that                   Robinson can also be reached by
                                               certain SNAP authorized retail food                                                                            to help ensure that comments submitted
                                                                                                       telephone at (703)-305–2476 or by email                are of most value to the Agency, FNS is
                                               stores have available on a continual                    at Vicky.Robinson@fns.usda.gov during
                                               basis at least three varieties of items in                                                                     providing the following additional
                                                                                                       regular business hours (8:30 a.m. to 5:30              clarifications and requests for comment
                                               each of four staple food categories, to a               p.m.) Monday through Friday.
                                               mandatory minimum of seven varieties.                                                                          regarding certain provisions proposed in
                                                                                                       SUPPLEMENTARY INFORMATION:                             this rule.
                                               The 2014 Farm Bill also amended the
                                               Act to increase, for certain SNAP                       I. Background                                             FNS encourages commenters to
                                               authorized retail food stores, the                                                                             review and comment on all of the issues
                                                                                                         The Agricultural Act of 2014 (2014                   raised in the proposed rulemaking, as
                                               minimum number of categories in                         Farm Bill) amended the Food and
                                               which perishable foods are required                                                                            well as on issues examined in the
                                                                                                       Nutrition Act of 2008 (the Act) to                     supporting Regulatory Impact Analysis
                                               from two to three. The proposed rule                    increase the requirement that certain
                                               would codify these mandatory                                                                                   and Interim Regulatory Flexibility
                                                                                                       SNAP authorized retail food stores have                Analysis prepared for the proposed rule
                                               requirements.                                           available on a continual basis at least                and published as part of the docket in
                                               DATES: The comment period for the                       three varieties of items in each of four               Supporting Documents on
                                               proposed rule that was published on                     staple food categories, to a mandatory                 Regulations.gov.
Lhorne on DSK5TPTVN1PROD with PROPOSALS




                                               February 17, 2016 (81 FR 8015) has been                 minimum of seven varieties. The 2014
                                               extended from April 18, 2016 to May 18,                 Farm Bill also amended the Act to                      1. Under the proposed rule, what would
                                               2016. To be assured of consideration,                   increase, for certain SNAP authorized                  be the varieties of items retailers would
                                               comments must be postmarked on or                       retail food stores, the minimum number                 need to stock?
                                               before May 18, 2016.                                    of categories in which perishable foods                   As required by Section 3(o)(1)(A) of
                                               ADDRESSES:                                              are required from two to three. The                    the Food and Nutrition Act of 2008 (the
                                                 The Food and Nutrition Service                        proposed rule would codify these                       Act), as amended by the Agricultural
                                               (FNS), USDA, invites interested persons                 mandatory requirements.                                Act of 2014 (2014 Farm Bill), retailers


                                          VerDate Sep<11>2014   13:17 Apr 04, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\05APP1.SGM   05APP1


                                                                         Federal Register / Vol. 81, No. 65 / Tuesday, April 5, 2016 / Proposed Rules                                             19501

                                               would be required to stock at least 7                   either frozen or refrigerated staple food              foods for purchase with SNAP benefits
                                               varieties in each of the 4 staple food                  items and as well as fresh,                            in authorized stores.
                                               categories. Section 3(q) of the Act                     unrefrigerated staple food items that
                                                                                                                                                              4. Under the proposed rule, how many
                                               defines the 4 staple food categories as                 will spoil or suffer significant
                                                                                                                                                              total items would retailers be required to
                                               dairy products; breads and cereals;                     deterioration in quality within 2 to 3
                                                                                                                                                              stock?
                                               meats, poultry, and fish; and fruits and                weeks (e.g., bread).
                                               vegetables. FNS does not have                              An example of how a retailer might                     Currently SNAP regulations require
                                               discretion to alter the statutory 7 variety             meet the perishables requirement with                  that SNAP authorized stores have
                                               requirement.                                            one perishable variety in 3 of the 4                   available on a continuous basis at least
                                                  However, FNS appreciates the                         staple food categories follows further                 3 varieties of items in each of the 4
                                               questions it has received from                          below.                                                 staple food categories with perishable
                                               commenters inquiring about the items                                                                           varieties in at least 2 of the 4 staple food
                                                                                                       3. Under the proposed rule, what would                 categories. Under current SNAP
                                               that constitute variety under the
                                                                                                       qualify as multiple ingredient foods?                  regulations, retailers may be SNAP
                                               proposed rule in the four staple food
                                               categories and encourages additional                       Currently, 7 CFR 271.2 provides that                authorized with a minimum stock of at
                                               comments from the public on this point.                 ‘‘commercially processed foods and                     least 12 food items, including at least 2
                                               FNS is particularly interested in                       prepared mixtures with multiple                        perishable items. As noted in the
                                               comments from the public as to whether                  ingredients shall only be counted in one               proposed rule, these requirements have
                                               and how variety should take into                        staple food category’’ for the purposes of             been changed by the Food and Nutrition
                                               account the differences between                         determining eligibility of any firm.                   Act of 2008 (the Act), as amended by the
                                               products within staple food categories                     Under the proposed rule,                            Agricultural Act of 2014 (2014 Farm
                                               (generally and individually), and what                  commercially processed foods and                       Bill).
                                               factors should be considered when                       prepared mixtures with multiple                           Section 3(o)(1)(A) of the Act now
                                               making such distinctions.                               ingredients that do not represent a                    requires that retailers stock at least 7
                                                  For example, for purposes of variety                 single staple food category (e.g., cold                varieties in each of the 4 staple food
                                               in the meat, poultry, and fish category,                pizza, macaroni and cheese,                            categories and perishable foods in at
                                               FNS would appreciate public comments                    sandwiches, TV dinners, mixed soup                     least 3 of the 4 staple food categories.
                                               on whether to consider food items that                  varieties, and pot pies), would not be                 That means that retailers are required to
                                               come from the same type of animal or                    counted (toward variety, perishables, or               stock 28 items on a continuous basis. At
                                               species as separate varieties in this food              depth of stock) as staple foods for                    least 3 of these items must be
                                               category (e.g., raw chicken breast versus               purposes of determining a firm’s                       perishable.
                                               refrigerated grilled chicken breast; roast              eligibility to participate in SNAP as a                   Under the proposed rule, which
                                               beef versus ground beef; sliced turkey                  retail food store. Under the proposed                  would require a depth of stock defined
                                               versus turkey bacon; fresh bluefin tuna                 rule, multiple ingredient foods would                  as 6 stocking units, SNAP-authorized
                                               steaks versus canned albacore tuna).                    not include such items as yogurt,                      retailers would be required to stock a
                                               FNS would also appreciate public                        cheeses, and cereals, as the primary                   new minimum inventory requirement of
                                               comments regarding the basis by which                   staple food ingredient is clearly                      168 staple food items.
                                               one could consider food items that come                 represented and easily recognized.                        Based on the statutory requirement
                                               from the same type of animal or species                    FNS appreciates the questions it has                that at least 1 perishable variety be
                                               as separate varieties, in this or other                 received from commenters on multiple                   stocked in 3 of the 4 staple food
                                               staple food categories. Finally, FNS                    ingredient foods under the proposed                    categories, and with depth of stock
                                               would like to clarify its intent in the                 rule and encourages additional                         discretionarily defined as 6 stock
                                               proposed rule for the meat, poultry, and                comments from the public on this                       keeping units, this proposed rule would
                                               fish staple food category to include                    provision of the proposed rule. FNS is                 require that a store stock at least 18
                                               other varieties, such as eggs and meat                  particularly interested in comments                    perishable staple food items (within the
                                               alternatives (e.g., tofu, gluten, or                    from the public as to whether certain                  168 staple food item total).
                                               mycoprotein).                                           types of foods with multiple ingredients                  According to Department analysis,
                                                  Examples of how a retailer might                     should continue to be counted as staple                contained in the Interim Regulatory
                                               stock 7 varieties in each of the 4 staple               foods, including toward variety,                       Flexibility Analysis prepared for the
                                               food categories follow further below.                   perishables, or depth of stock                         proposed rule and published as part of
                                                                                                       requirements. For example, for the                     the docket in Supporting Documents on
                                               2. Under the proposed rule, how many                    purposes of staple food categorization,                Regulations.gov, the average small store
                                               perishable items would retailers need to                FNS would appreciate public comments                   would need to add an additional 54
                                               stock?                                                  on whether and how to categorize                       additional staple food items, at a cost of
                                                  Section 3(o)(1)(A) of the Act, as                    certain foods with multiple staple food                around $140, in order to meet the
                                               amended by the 2014 Farm Bill,                          ingredients, such as prepared salads,                  proposed eligibility criteria. As set forth
                                               requires that retailers would be required               pizzas, pot pies, macaroni and cheese,                 in the Interim Regulatory Flexibility
                                               to stock ‘‘perishable foods in at least 3               stuffed pastas, and others, as offered by              Analysis for the proposed rulemaking,
                                               of the [staple food] categories.’’                      commenters, for purposes of making a                   FNS estimates that purchasing all 168
                                               Therefore, FNS has proposed to codify                   retailer eligibility determination for                 staple food items would cost a store
                                               in regulation the statutory requirement                 SNAP authorization.                                    approximately $400, including a one-
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                                               that retailers stock at least one                          Examples of additional multiple                     time inventory carrying cost of 25% to
                                               perishable variety in 3 of the 4 staple                 ingredient foods that would and would                  account for storage costs and potential
                                               food categories.                                        not count as staple foods under the                    spoilage. FNS believes that adding new
                                                  The proposed rule does not propose                   proposed rule follow.                                  inventory would be a one-time cost, a
                                               to change the meaning of ‘‘perishable’’                    Multiple ingredient foods are                       cost that would be recouped as
                                               in the current regulations. Currently,                  currently eligible for purchase with                   inventory is sold.
                                               under 7 CFR 278.1(b)(1)(ii)(B),                         SNAP benefits, and this proposed rule                     See the full Regulatory Impact
                                               perishable foods include items that are                 would not change the eligibility of these              Analysis and Interim Regulatory


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                                               19502                     Federal Register / Vol. 81, No. 65 / Tuesday, April 5, 2016 / Proposed Rules

                                               Flexibility Analysis for further details.               4. Frozen raspberries—6 packages                       EXAMPLES of Multiple Ingredient
                                               https://www.regulations.gov/                            5. Frozen spinach—6 packages                           Foods That Would be Excluded for
                                               #!documentDetail;D=FNS-2016-0018-                       6. Fresh baby carrots—6 packages                       Purposes of Retailer Eligibility Decisions
                                               0006.                                                   7. Fresh celery sticks—6 packages                      Under the Proposed Rule
                                                  More generally, FNS appreciates the                     Non-Perishable:                                     Æ Pizzas (contains dough, cheese, and
                                               questions it has received from                                                                                     tomato)
                                               commenters on the number of total food                  8. Apple sauce—6 jars
                                                                                                       9. Canned corn—6 cans                                  Æ Multiple ingredient soups, e.g.
                                               items that retailers would be required to                                                                          minestrone (contains vegetables and
                                               stock under the proposed rule and                       10. Canned peas—6 cans
                                                                                                          Dairy—the proposed rule would                           pasta)
                                               encourages additional comments from                                                                            Æ Multiple ingredient canned foods, e.g.
                                               the public on this provision of the                     require stocking at least 7 varieties in
                                                                                                                                                                  ravioli (contains vegetables, cheese,
                                               proposed rule, including comments on                    this category; below are ten examples of
                                                                                                                                                                  and pasta)
                                               the impacts (such as benefits, costs, or                what FNS would consider different
                                                                                                                                                              Æ Chicken pot pies (contains dough,
                                               small business impacts) associated with                 varieties This is not an exhaustive list
                                                                                                                                                                  vegetables, and chicken)
                                               proposals that would alter the total food               of acceptable varieties in this staple
                                                                                                                                                              Æ Frozen TV dinners, e.g. chicken
                                               items that retailers would be required to               food category. Under the proposed rule,
                                                                                                                                                                  dinner (contains chicken, potatoes,
                                               stock.                                                  the first 8 varieties listed below would
                                                                                                                                                                  and vegetables)
                                                  FNS also appreciates the questions                   likely be considered perishable varieties
                                                                                                                                                              Æ Sandwiches (contains meat, cheese,
                                               from commenters it has received                         in this staple food group, provided that
                                                                                                                                                                  bread, and vegetables)
                                               regarding how the proposed                              they will spoil or suffer significant                  Æ Lunch-snack trays (contains meat,
                                               requirements would affect different                     deterioration in quality within 2 to 3                     cheese, and crackers)
                                               types of retail food stores and                         weeks.
                                               encourages additional comments from                        Perishable:                                         EXAMPLES of Multiple Ingredient
                                               the public on potential retail food store               1. Fresh cow’s milk—6 containers                       Foods That Would Continue to Count as
                                               impacts.                                                                                                       Staple Foods (i.e., the Primary Staple
                                                                                                       2. Fresh goat’s milk—6 containers
                                                                                                                                                              Food Category Ingredient is Clearly
                                               EXAMPLES of Acceptable Variety,                         3. Fresh yogurt—6 containers                           Represented and Easily Recognized)
                                               Perishables, and Depth of Stock Under                   4. Fresh sour cream—6 packages
                                               the Proposed Rule                                       5. Fresh cheddar cheese (hard)—6                       Æ Mixed vegetables (frozen or canned;
                                                                                                            packages                                             contains a variety of vegetables)
                                                  Meat, Poultry, and Fish—the                                                                                 Æ Boxed breakfast cereals (intended to
                                               proposed rule would require stocking at                 6. Fresh cream cheese (soft)—6 packages
                                                                                                                                                                 served heated or cold; contains a
                                               least 7 varieties in this staple food                   7. Frozen butter—6 packages
                                                                                                                                                                 variety of grains)
                                               category; below are ten examples of                     8. Margarine—6 containers
                                               what FNS would consider different                          Non-Perishable:                                     III. Comment Period Extension
                                               varieties. This is an illustrative list and             9. Infant Formula—6 containers                           Since publication of the proposed
                                               not an exhaustive list of items that FNS                10. Almond Milk—6 containers                           rule, several entities, including SNAP
                                               proposes to be acceptable varieties in                     Breads or Cereals—the proposed rule                 retail trade groups, have requested an
                                               this staple food category.                              would require stocking at least 7                      extension of the comment period in
                                                  Perishable:                                          varieties in this category; below are ten              order to allow ample time for all
                                               1. Sliced turkey breast—6 packages                      examples of what FNS would consider                    stakeholders to comment on the
                                               2. Shrimp—6 packages                                    different varieties. This is not an                    rulemaking process. The comment
                                               3. Sliced ham—6 packages                                exhaustive list of acceptable varieties in             period, therefore, is being extended 30
                                               4. Fresh or frozen ground beef– 6                       this staple food category. Under the                   days in order to provide additional time
                                                    packages                                           proposed rule, the first 5 varieties listed            for interested parties to review the
                                               5. Fresh or frozen catfish—6 packages                   below would likely be considered                       proposed rule. To be assured of
                                               6. Eggs—6 cartons (any size)                            perishable varieties in this staple food               consideration, comments on the
                                               7. Frozen lamb chops—6 packages                         group, provided that they will spoil or                proposed rule must be received by FNS
                                               8. Tofu (meat substitute)—6 packages                    suffer significant deterioration in quality            on or before May 18, 2016.
                                                  Non-perishable:                                      within 2 to 3 weeks.                                    Dated: March 31, 2016.
                                               9. Canned tuna—6 cans                                      Perishable:                                         Audrey Rowe,
                                               10. Canned chicken—6 cans                               1. Bread—any combination (wheat,                       Administrator, Food and Nutrition Service.
                                                  Fruits, Vegetables—the proposed rule                      white, rye)—6 packages                            [FR Doc. 2016–07793 Filed 4–4–16; 8:45 am]
                                               would require stocking at least 7                       2. Tortillas (flour, corn)—6 packages                  BILLING CODE 3410–30–P
                                               varieties in this category; below are ten
                                                                                                       3. Bagels (white, wheat, other)—6 items
                                               examples of what FNS would consider
                                                                                                       4. Pitas—6 packages
                                               different varieties. This is not an
                                               exhaustive list of acceptable varieties in              5. Frozen dinner rolls—6 packages                      DEPARTMENT OF TRANSPORTATION
                                               this staple food category. Under the                       Non-Perishable:
                                                                                                                                                              Federal Aviation Administration
                                               proposed rule, the first 7 varieties listed             6. Rice—any combination (long-grain,
                                               below would be considered perishable                         brown)—6 packages
                                                                                                                                                              14 CFR Part 31
                                               varieties in this staple food group,                    7. Pasta—any combination (spaghetti,
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                                               provided that they will spoil or suffer                      lasagna noodles, rice noodles)—6                  [Docket No. FAA–2016–5424; Notice No. 31–
                                               significant deterioration in quality                         packages                                          16–01–SC]
                                               within 2 to 3 weeks.                                    8. Cereal– any combination (wheat, rice,
                                                  Perishable:                                               chex, granola, etc)—6 packages                    Special Conditions: Ultramagic, S.A.,
                                                                                                                                                              Mark-32 Burner Series
                                               1. Fresh bananas—6 bananas                              9. Flour (white, wholegrain, any
                                               2. Fresh oranges—6 oranges                                   combination)—6 packages                           AGENCY:Federal Aviation
                                               3. Fresh pears—6 pears                                  10. Infant Cereal—6 packages                           Administration (FAA), DOT.


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Document Created: 2018-02-07 13:53:17
Document Modified: 2018-02-07 13:53:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionClarification of proposed rule; extension of comment period.
DatesThe comment period for the proposed rule that was published on February 17, 2016 (81 FR 8015) has been extended from April 18, 2016 to May 18, 2016. To be assured of consideration, comments must be postmarked on or before May 18, 2016.
FR Citation81 FR 19500 
RIN Number0584-AE27
CFR Citation7 CFR 271
7 CFR 278

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