Sec. 4108. Retail food stores

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Section 3(o)(1) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012(o)(1) ) is amended by striking subparagraph

(A)and inserting the following: offers and displays for sale, on a continuous basis, at least 25 stockkeeping units of foods in each of the 4 categories of staple foods described in subsection (q)(1)— including— perishable foods in at least 3 of those categories; and 7 varieties in the category described in subparagraph

(C)of that subsection; and of which not less than 12 of the stockkeeping units in each of those 4 categories of staple foods are identified for increased consumption for any age group, consistent with the most recent Dietary Guidelines for Americans published under section 301 of the National Nutrition Monitoring and Related Research Act of 1990 ( 7 U.S.C. 5341 ), as determined by the Secretary; or . Not later than 18 months after the date of enactment of this Act, the Secretary shall promulgate regulations to implement the amendment made by paragraph (1), which shall take effect not later than 180 days after publication of the regulation in the Federal Register. In promulgating regulations pursuant to subparagraph (A), the Secretary shall conduct 2 or more public listening sessions that shall— engage the full range of interested groups, including, to the maximum extent practicable— households participating in the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. ); and different types of retail food stores authorized to participate in that program under section 9 of that Act ( 7 U.S.C. 2018 ); and be included in the rulemaking record. Not later than 2 years after the date on which regulations promulgated pursuant to paragraph (2)(A) take effect, the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report that assesses the compliance by retail food stores (as defined in section 3 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012 )), including small grocery stores and convenience stores, with those regulations, which shall include— a description of any challenges retail food stores face with respect to meeting the requirements in those regulations; and recommendations for additional approaches that small-scale retail food stores may take to stock and promote healthy food options. Section 3(o)(1) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012(o)(1) ) is amended, in the matter preceding subparagraph (A), by striking sells food and inserting owns food inventory and sells that food . Section 9 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2018 ) is amended— in subsection (a)— in paragraph (2)— by striking

(2)The Secretary and inserting the following: The Secretary ; and by indenting subparagraphs

(A)and

(B)appropriately; and by conforming the margin of paragraph

(3)with the margin of paragraph (4); in subsection (c), in the third sentence, by inserting ( after 42 U.S.C. 1786 ) Act of 1966 ; and by striking subsection

(f)and inserting the following: The Secretary shall limit participation in the supplemental nutrition assistance program of house-to-house trade routes and entities that operate solely online (referred to in this paragraph as online-only entities ) to include only such routes and online-only entities that support the purposes of the supplemental nutrition assistance program. The Secretary shall establish terms and conditions for participation of house-to-house trade routes and online-only entities in the supplemental nutrition assistance program, which shall include, at a minimum— a requirement to be fully operational with respect to sales to the public for not less than 1 year before receiving authorization under this section, including, for online-only entities, operation in e-commerce for not less than that 1-year period; a requirement to provide to the Secretary, on request— documentation to establish inventory ownership, such as business records; and evidence of sufficient and consistent minimum inventory levels, such as business records, inventory storage facility visit reports, and other means, including, for online-only entities, documentation matching owned inventory with online offerings, as the Secretary determines to be sufficient to qualify continuously as a retail food store; and a requirement to demonstrate sales consistent with inventory, as determined by the Secretary, for not less than 1 year before receiving authorization under this section and periodically thereafter, as the Secretary determines to be appropriate. An entity (including a product aggregator) that does not qualify as a retail food store described in section 3(o)(1) because the entity does not own food inventory may not participate in the supplemental nutrition assistance program. An entity that is not an approved retail food store may not offer food for sale in exchange for benefits through an approved retail food store. An approved retail food store may not offer inventory for sale in exchange for benefits if that inventory is owned by an entity that is not an approved retail food store. . Section 17 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2026 ) is amended by adding at the end the following: The Secretary shall conduct, and make publicly available a report describing the results of, a study that assesses— the types of entities that sell food but do not own their own food inventory (referred to in this subsection as covered entities ); vulnerabilities that covered entities may pose to the supplemental nutrition assistance program if covered entities are authorized to accept and redeem benefits under that program; opportunities that covered entities may provide to participants of the supplemental nutrition assistance program if covered entities are authorized to accept and redeem benefits under that program; recommendations for additional oversight of covered entities under the supplemental nutrition assistance program if covered entities are authorized to accept and redeem benefits under that program; standards that may be established to ensure the integrity of the supplemental nutrition assistance program with respect to covered entities if covered entities are authorized to accept and redeem benefits under that program, including— ensuring that covered entities are able— to provide to the customer the food purchased using benefits by customers in a timely manner; and to continuously meet the requirements described in subparagraph

(A)or

(B)of section 3(o)(1); and ensuring that the Department of Agriculture has sufficient information to conduct appropriate oversight over covered entities; and any other considerations, as determined by the Secretary. After the Secretary makes publicly available the report described in paragraph (1), the Secretary— may conduct a pilot project to authorize entities that sell food but do not own their own food inventory, but otherwise meet the definition of the term retail food store under section 3(o) and meet the standards described in paragraph (1)(E), to accept and redeem benefits to test the effectiveness of those standards— in protecting and increasing healthy food access for households participating in the supplemental nutrition assistance program; and in providing sufficient information for the Secretary to conduct appropriate oversight over those entities; and shall make publicly available a report describing the results of the pilot project conducted under subparagraph (A). . Section 7(k) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2016(k) ) is amended— by striking on-line each place it appears and inserting online ; in paragraph (2)— in subparagraph (D), by striking and at the end; by redesignating subparagraph

(E)as subparagraph (F); and by inserting after subparagraph

(D)the following: meet the delivery and data submission standards established under paragraph (5); and ; in paragraph (4), in the paragraph heading, by striking and inserting on-line ; and online by adding at the end the following: The Secretary, acting through the Administrator of the Food and Nutrition Service, in consultation with the Administrator of the Food Safety and Inspection Service, shall promulgate regulations that, for any retail food store that accepts benefits through an online transaction and offers delivery services for the food purchased using those benefits— establish standards for delivery conditions and practices that ensure the preservation of the quality of the food, including perishable food, to prevent contamination and food-borne illnesses; and describe the manner in which data, and the type of data that, should be submitted by retail food stores so that the Secretary may verify compliance with the standards described in clause (i). In promulgating regulations pursuant to subparagraph (A), the Secretary, acting through the Administrator of the Food and Nutrition Service, shall conduct 2 or more public listening sessions that— engage the full range of interested groups; and shall be included in the rulemaking record. Not later than 1 year after regulations are promulgated pursuant to subparagraph (A), the Secretary shall ensure compliance with those regulations. .

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Sec. 4108

Retail food stores

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