Sec. 4002. Retailer-funded incentives pilot
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The Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq.), as amended by section 4001, is amended by adding at the end the following: The Secretary shall establish a pilot project in accordance with subsection
(d)through which participating retail food stores provide bonuses to participating households based on household purchases of fruits, vegetables, and fluid milk. For purposes of this section— The term bonus means a financial incentive provided at the point of sale to a participating household that expends a portion of its allotment for the purchase of fruits, vegetables, or fluid milk. The term fluid milk means cow milk without flavoring or sweeteners and packaged in liquid form. The term fruits means minimally processed fruits. The term retail food store means a retail food store as defined in section 3(o)(1) that is authorized to accept and redeem benefits under the supplemental nutrition assistance program. The term vegetables means minimally processed vegetables. To participate in the pilot project established under subsection (a), a retail food store shall submit to the Secretary for approval a plan that includes— a method of quantifying the cost of fruits, vegetables, and fluid milk, that will earn households a bonus; a method of providing bonuses to participating households and adequately testing such method; a method of ensuring bonuses earned by households may be used only to purchase food eligible for purchase under the supplemental nutrition assistance program; a method of educating participating households about the availability and use of a bonus; a method of providing data and reports, as requested by the Secretary, for purposes of analyzing the impact of the pilot project established under subsection
(a)on household access, ease of bonus use, and program integrity; and such other criteria, including security criteria, as established by the Secretary. Retail food stores with plans approved under subsection
(c)to participate in the pilot project established under subsection
(a)shall— provide a bonus in a dollar amount not to exceed 10 percent of the price of the purchased fruits, vegetables, and fluid milk; fund the dollar amount of bonuses used by households, and pay for administrative costs, such as fees and system costs, associated with providing such bonuses; ensure that bonuses earned by households may be used only to purchase food eligible for purchase under the supplemental nutrition assistance program; and provide data and reports as requested by the Secretary for purposes of analyzing the impact of the pilot project established under subsection
(a)on household access, ease of bonus use, and program integrity. A retail food store participating in a project under section 4405 of the Food, Conservation, and Energy Act of 2008 ( 7 U.S.C. 7517 ) shall not be eligible to participate in the pilot project established under subsection (a). Not later than 18 months after the date of the enactment of Agriculture and Nutrition Act of 2018 , the Secretary shall solicit and approve plans submitted under subsection
(c)that satisfy the requirements of such subsection. Subject to paragraphs
(2)and (3), the Secretary shall reimburse retail food stores with plans approved under subsection
(f)in an amount not to exceed 25 percent of the dollar value of bonuses earned by households and used to purchase food eligible for purchase under the supplemental nutrition assistance program. The aggregate amount of reimbursements paid in a fiscal year to all retail food stores that participate in the pilot project established under subsection
(a)in such fiscal year shall not exceed $120,000,000. Not later than 1 year after the date of the enactment of the Agriculture and Nutrition Act of 2018 , the Secretary shall establish requirements to implement this section, including criteria for prioritizing reimbursements to such stores within the limit established in paragraph
(2)and subject to subparagraph (B). Reimbursements payable under this subsection shall be paid on a monthly basis. If funds made available under subsection
(h)are insufficient to pay in full reimbursements payable for a month because of the operation of paragraph (2), such reimbursements shall be paid on a pro rata basis to the extent funds remain available for payment. From funds made available under section 18(a)(1) for a fiscal year, the Secretary shall allocate not to exceed $120,000,000 for reimbursements payable under this section for such fiscal year. .
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