[Federal Register: August 30, 2000 (Volume 65, Number 169)]
[Rules and Regulations]
[Page 52642-52644]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30au00-2]
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DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Part 278
[Amendment No. 383]
RIN 0584-AC05
Food Stamp Program: Retailer Application Processing
AGENCY: Food and Nutrition Service, USDA
ACTION: Final Rule.
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SUMMARY: This final rule implements a revised processing timeframe for
retail food stores and wholesale food concerns that apply for
authorization to accept and redeem food stamp benefits and clarifies
verification requirements. This rule lengthens the application
processing timeframe from the current period of 30 days to 45 days. In
addition to lengthening the time allowed for processing applications,
this rule requires specific documentation from an applicant to verify a
firm's eligibility.
This final rule also incorporates two provisions of the Personal
Responsibility and Work Opportunity Reconciliation Act of (PRWORA)
1996, related to the collection of tax information from firms applying
for authorization or from firms being reauthorized in the program and
the written permission for the Food and Nutrition Service (FNS) to
verify such information with appropriate agencies.
EFFECTIVE DATE: The amendments in this rule are effective September 29,
2000.
FOR FURTHER INFORMATION CONTACT: Questions regarding this final rule
[[Page 52643]]
should be addressed to Karen J. Walker, Chief, Redemption Management
Branch, Benefit Redemption Division, Food Stamp Program, Food and
Nutrition Service, USDA, 3101 Park Center Drive, Alexandria, Virginia
22302, or by telephone at (703) 305-2418.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be non-significant under
Executive Order 12866.
Executive Order 12372
The Food Stamp Program is listed in the Catalog of Federal Domestic
Assistance under No. 10.551. For the reasons set forth in the final
rule and related notice(s) to 7 CFR Part 3015, Subpart V (48 FR 29115,
June 24, 1983), this program is excluded from the scope of Executive
Order 12372, which requires intergovernmental consultation with State
and local officials.
Regulatory Flexibility Act
This rule has been reviewed with regard to the requirements of the
Regulatory Flexibility Act of 1980 (5 U.S.C. 601-602). Samuel Chambers,
Jr. the Administrator of the FNS, has certified that this final rule
will not have a significant economic impact on a substantial number of
small entities. The rule would have almost no impact on the majority of
applicant firms, since most applicants are legitimate food stores.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995, the
preamble of the proposed rule published on November 3, 1999 at 64 FR
59665 included a notice that announced our intent to submit revisions
to the Office of Management and Budget relative to the information
collection and associated burden hours imposed on retailers applying
for participation in the FSP.
There are currently 3 forms approved under Office of Management and
Budget No. 0584-0008. Each of these forms are used by retailers,
wholesalers and meal services, including certain group living
arrangements, shelters for battered women and treatment and
rehabilitation programs for drug addicts and alcoholics, to apply to
the FNS for authorization to accept and redeem food stamp benefits.
Form FNS-252; Food Stamp Application for Stores, Form 252-2;
Application to Participate in the FSP for Communal Dining Facility/
Others; and Form FNS-252R; Food Stamp Application for Stores-
Reauthorization. Section 9(c) of the Food Stamp Act of 1977, as
amended, (7 U.S.C. 2018 (c)) provides the necessary authorization(s) to
collect the information contained in these forms.
Comments were solicited for 60 days on the proposed increase in
burden hours. No comments were received on the information collection
proposal. The burden estimates as currently approved under OMB No.
0584-0008 through October 31, 2003 are shown on the following chart:
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Number of Responses per Total annual Burden hours Total annual
Title respondents respondents responses per response burden hours
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Form FNS-252.................... 20,580 1 20,580 .4583 9,432
Form FNS-252-2.................. 1,673 1 1,673 .2000 334
Form FNS-252R................... 40,368 1 40,368 .1250 5,046
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Totals...................... 62,149 62,149 14,812
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Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is intended to have a 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
implementation. This rule is not intended to have retroactive effect
unless so specified in the ``Effective Date'' paragraph of this
preamble. Prior to any judicial challenge to the provisions of this
rule or the application of its provisions, all applicable
administrative procedures must be exhausted. These provisions are as
follows: (1) For Program benefit recipients-State administrative
procedures issued pursuant to 7 U.S.C. 2020(e)(10) and 7 CFR 273.15;
(2) for State Agencies--administrative procedures issued pursuant to 7
U.S.C. 2023 set out as 7 CFR 276.7 (for rules related to non-quality
control liabilities) or part 284 (for rules related to quality control
liabilities: (3) for Program retailers and wholesalers--administrative
procedures issued pursuant to 7 U.S.C. 2023 set out at 7 CFR 278.8.
Unfunded Mandate Analysis
Title II of the Unfunded Mandated Reform Act of 1995 (UMRA) Pub. L.
104-04, 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 to State, local, or tribal
governments, in the aggregate, or to 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 least costly, more cost effective or least burdensome
alternative that achieves the objectives of the rule.
This final rule contains no Federal mandates under the regulatory
provision 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, this rule is not subject to the requirements of Sections
202 and 205 of the UMRA.
Executive Order 13132
FNS has analyzed this final in accordance with the principles set
forth in Executive Order 13132.
As such, FNS has determined that the rule does not contain policies
that have federalism implications as defined in the order and,
consequently, a federalism impact statement is not required.
Background
On November 3, 1999, the FNS published a proposed rule (64 FR
59665) to improve the processing of applications from firms desiring to
become authorized to accept and redeem food stamp benefits. The
proposed rule sets forth four changes, two discretionary and two
reflecting additional authorities provided under the Act, PRWORA Pub.
L. 104-193. The
[[Page 52644]]
discretionary changes increase the timeframe within which FNS must
approve or reject a firm's application from 30 days to 45 days and
specify the types of documents firms might be asked to provide. Such
documentation may include, but is not limited to, State and local
business licenses, photographic identification cards, bills of sale,
deeds, leases, sales contracts, State certificates of incorporation and
invoice records. Section 833 of PRWORA authorized the Department to
require that applicant firms sign a release form allowing FNS to verify
the accuracy of information submitted by firms. This section also
provided that FNS may request the submission of tax records. These
changes to existing food stamp law were intended to prevent the
authorization of firms which do not qualify for participation in the
FSP. Additionally, as provided for in another final rule published on
April 30, 1999 at 64 FR 23165, FNS has the authority to require that a
retail food store or wholesale food concern be visited to confirm
eligibility prior to authorization or reauthorization of such firm. The
Department wishes to emphasize that applicant firms or firms applying
for reauthorization must cooperate with the store visit requirements.
The public was provided a 60-day period to submit comments on the
proposed provisions. One commentor, a major nonprofit retail trade
association, submitted comments. The major concerns raised by the
commentor are discussed below.
Application Processing Timeframes
The two major comments provided by the commentor relate to the
subject of application processing. The first comment suggested that,
when on-site visits are not required, the application process should be
continued and completed within 30 days instead of the extended period
of 45 days. Although this rule provides FNS with the authority to use
the full 45-day time period when it is needed, authorizations of
qualified firms are completed more quickly whenever possible to avoid
or minimize delay. Therefore, determinations on stores not requiring an
on-site visit will likely be completed in less than 45 days.
The second comment suggested that no on-site visits should be
necessary for reputable retailers. The commentor defines ``reputable''
retailers as those that are well-known and familiar to the Agency.
Further, the commentor states that authorization of well-known,
reputable retailers within 30 days will ensure the broadest selection
of retailers as quickly as possible. The Department expects that most
applicant retailers are honest, reputable business persons or entities.
Applications from such individuals (or business entities) applicants
will continue to be processed in a timely fashion. Visits to stores
will be made as circumstances require in the best interests of the FSP.
List of Subjects in 7 CFR Part 278
Administrative practice and procedure, Banks, Banking, Claims, Food
stamps, Groceries--retail, Groceries, General line-wholesalers,
Penalties.
Accordingly, 7 CFR Part 278 is amended as follows:
PART 278--PARTICIPATION OF RETAIL FOOD STORES, WHOLESALE FOOD
CONCERNS AND INSURED FINANCIAL INSTITUTIONS
1. The authority citation for Part 278 continues to read as
follows:
Authority: 7 U.S.C. 2011-2036.
2. In Sec. 278.1:
a. Paragraph (a) is amended by removing the last sentence and
adding three new sentences in its place; and
b. The introductory text of paragraph (b) is revised.
The revisions read as follows:
Sec. 278.1 Approval of retail food stores and wholesale food concerns.
(a) Application. * * * FNS shall approve or deny the application
within 45 days of receipt of a completed application. A completed
application means that all information (other than an on-site visit)
that FNS deems necessary in order to make a determination on the firm's
application has been received. This information includes, but is not
limited to, a completed application form, all information and
documentation from the applicant, as well as any needed third-party
verification and documentation.
(b) Determination of authorization. An applicant shall provide
sufficient data and information on the nature and scope of the firm's
business for FNS to determine whether the applicant's participation
will further the purposes of the program. Upon request, an applicant
shall provide documentation to FNS to verify information on the
application. Such information may include, but is not limited to, State
and local business licenses, Social Security cards, drivers' licenses,
photographic identification cards, bills of sale, deeds, leases, sales
contracts, State certificates of incorporation, sales records, invoice
records and business-related tax records. Retail food stores and
wholesale food concerns and other entities eligible for authorization
also shall be required to sign a release form which will authorize FNS
to verify all relevant business related tax filings with appropriate
agencies. In addition, they must obtain corroborating documentation
from other sources as deemed necessary to ensure the legitimacy of
applicant firms, as well as the accuracy of information provided by the
stores and concerns. Failure to comply with any request for information
or failure to sign a written release form shall result in denial of the
application for authorization or withdrawal of a firm or concern from
the program. In determining whether a firm qualifies for authorization,
FNS shall consider all of the following:
* * * * *
3. In Sec. 278.9, a new paragraph (m) is added to read as follows:
Sec. 278.9 Implementation of amendments relating to the participation
of retail food stores, wholesale food concerns and insured financial
institutions.
* * * * *
(m) Amendment No. 383. The program changes made to Sec. 278.1 by
this amendment are effective September 29, 2000.
Dated: July 26, 2000.
Samuel Chambers, Jr.,
Administrator, Food and Nutrition Service.
[FR Doc. 00-21905 Filed 8-29-00; 8:45 am]
BILLING CODE 3410-30-U
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