Request for Information: Supplemental Nutrition Assistance Program (SNAP); Retailer Transaction Data, 45175-45176 [2014-18288]

Agencies

• DEPARTMENT OF AGRICULTURE
• Food and Nutrition Service

[Federal Register Volume 79, Number 149 (Monday, August 4, 2014)]
[Notices]
[Pages 45175-45176]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-18288]


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Federal Register / Vol. 79, No. 149 / Monday, August 4, 2014 / 
Notices

[[Page 45175]]



DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Request for Information: Supplemental Nutrition Assistance 
Program (SNAP); Retailer Transaction Data

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

ACTION: Notice.

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SUMMARY: In light of a recent court decision regarding the availability 
of Supplemental Nutrition Assistance Program (SNAP) retailer 
transaction data to the public, the USDA Food and Nutrition Service 
(FNS) is issuing this Request for Information to help inform FNS' 
response to the recent court decision and any future policy changes 
regarding the release of SNAP retailer transaction data. In moving 
forward, USDA is interested in providing greater transparency. However, 
the Department also recognizes that any movement in this arena needs to 
be done carefully, after considering potential consequences and the 
views of the variety of stakeholders. As a result, this notice requests 
information from any and all interested parties, with a particular 
focus on current and former SNAP authorized retailers, as to whether 
the disclosure of aggregated SNAP redemption data at the individual 
store level would improve the administration and enforcement of the 
Food and Nutrition Act of 2008 (the Act) and whether such data is 
confidential business information.
    Background: Section 9(c) of the Act, 7 U.S.C. 2018(c), limits the 
use or disclosure of information received from applicant and 
participating SNAP retailers. Use and disclosure of such information is 
limited to purposes directly connected with the administration and 
enforcement of the Act, or the regulations issued pursuant to the Act, 
with limited exceptions for law enforcement and use by the Special 
Supplemental Nutrition Program for Women, Infants, and Children. 
Section 9(c) imposes criminal penalties for disclosure of such 
information in a manner not authorized by Federal law or regulation.
    Throughout the history of the Program, Section 9(c) of the Act has 
been interpreted as a withholding statute that includes SNAP retailer 
redemption information. On September 22, 1978, FNS published a final 
rule codifying the interpretation that Section 9(c) prohibited the use 
or disclosure of ``information furnished by firms, including . . . 
their redemptions of coupons, . . . except for purposes directly 
connected with the administration and enforcement of Food Stamp Act and 
these regulations.'' 43 FR. 43,272, 43,275 (Sept. 22, 1978) (currently 
codified at 7 CFR 278.1(q)). FNS has operated in accordance with its 
interpretation of the Act and FNS regulations that the Secretary did 
not have authority to release this information.
    However, South Dakota's Argus Leader newspaper challenged this 
interpretation of the Act. In February of 2011, through the Freedom of 
Information Act (FOIA), the Argus Leader requested annual SNAP retailer 
redemption data for all SNAP authorized retailers for the six-year 
period spanning from 2005 through 2010. Though the initial FNS decision 
to withhold this data was upheld by the U.S. District Court for the 
District of South Dakota, on January 28, 2014, the U.S. Court of 
Appeals for the Eighth Circuit issued an opinion in favor of Argus 
Leader. The appeals court opinion contended that SNAP retailer 
redemption information did not fall within the withholding contemplated 
by Section 9(c) of the Act and therefore such information was not 
exempt from disclosure under Exemption 3 of FOIA.
    The Eighth Circuit decision did not address Exemption 4 of FOIA, 5 
U.S.C. 552(b)(4), which exempts ``trade secrets and commercial or 
financial information obtained from a person and privileged or 
confidential'' from release under FOIA. FNS recognizes that, despite 
the decision on Section 9(c) of the Act, the Agency must also consider 
whether this redemption data constitutes confidential business 
information. To make a determination in this regard, FNS is required to 
solicit feedback from the submitters of the retailer transaction data.
    Request for Information: FNS' objective is twofold: (1) To meet 
FNS' obligations to solicit feedback from the submitters of retailer 
transaction data which is the subject of the litigation described 
above; and (2) to determine how to provide greater transparency, while 
remaining consistent with our legal obligations and reflecting input 
from the public. FNS will use this public input to inform FNS' response 
to the court decision and consideration of what, if any, adjustments 
should be made to SNAP regulations in the future. It is FNS' intent 
that any regulatory changes would govern the availability of data after 
the effective date of those regulations, and not be retroactive. FNS is 
seeking public input on the following questions:
    1. Are aggregated annual SNAP redemption data at the individual 
store level confidential business information? If yes, please explain 
why the disclosure is likely to cause substantial competitive harm and 
fully explain all other grounds upon which you oppose the disclosure of 
such information. Also, please indicate whether the size of the 
retailer affects any identified competitive harm.
    2. Are aggregated monthly SNAP redemption data at the individual 
store level confidential business information? If yes, please explain 
why the disclosure is likely to cause substantial competitive harm and 
fully explain all other grounds upon which you oppose the disclosure of 
such information. Also, please indicate whether the size of the 
retailer affects any identified competitive harm.
    3. Should aggregated annual SNAP redemption data at the individual 
store level be released for transparency purposes?
     If yes, describe in detail why this data should be 
released for the purposes of transparency and public accountability, 
and specifically how this data would assist in the administration of 
the Food and Nutrition Act.
     If no, please provide details as to how release of this 
data would be counter to the administration and enforcement provisions 
of the Act.
     When considering the impact of the release of this data on 
the administration and enforcement provisions of the Act, please 
consider the effect, if any, on SNAP recipients.
    4. Should aggregated monthly SNAP redemption data at the individual 
store

[[Page 45176]]

level be released for transparency purposes?
     If yes, describe in detail why this data should be 
released for the purposes of transparency and public accountability, 
and specifically how this data would assist in the administration of 
the Food and Nutrition Act.
     If no, please provide details as to how release of this 
data would be counter to the administration and enforcement provisions 
of the Act.
     When considering the impact of the release of this data on 
the administration and enforcement provisions of the Act, please 
consider the effect, if any, on SNAP recipients.
    5. For each of the above questions, how would answers differ if the 
monthly or annual aggregated data were for a retailer's aggregated 
sales at all stores within a state or nationally, as opposed to per-
store data? Should any other aggregations be considered?
    Commenters who were SNAP-authorized retailers from 2005 through 
2010 should make that fact clear in their comments.

DATES: To be assured of consideration, written comments must be 
submitted on or before September 8, 2014.

ADDRESSES: Comments must be submitted through the Federal eRulemaking 
Portal at www.regulations.gov. Follow the online instructions for 
submitting comments electronically.
    All comments submitted in response to this notice will be included 
in the record and will be made available to the public at 
www.regulations.gov. Please be advised that the substance of the 
comments, including any personal or confidential business information, 
and the identity of the individuals or entities commenting will be 
subject to public disclosure.

FOR FURTHER INFORMATION CONTACT: Vicky T. Robinson, Acting Chief, 
Retailer Management and Issuance Branch, Food and Nutrition Service, 
(703) 305-2476.

SUPPLEMENTARY INFORMATION: At the end of fiscal year (FY) 2013, over 
250,000 retailers were authorized to redeem SNAP benefits. According to 
the FY 2013 data, 82 percent of all benefits redeemed were redeemed at 
supermarkets, large grocers and superstores. Approximately 18 percent 
of benefits were redeemed at smaller stores, including convenience 
stores, small grocers and farmers' markets. Less than one percent were 
redeemed by authorized treatment programs, group homes, homeless meal 
providers, communal dining facilities and shelters as provided for in 
statute. A 2009 FNS study on benefit use indicates that 96.3 percent of 
all SNAP beneficiaries shopped at supermarkets or superstores at least 
once each month.

    Dated: July 28, 2014.
Audrey Rowe,
Administrator, Food and Nutrition Service.
[FR Doc. 2014-18288 Filed 8-1-14; 8:45 am]
BILLING CODE 3410-30-P