Providing Regulatory Flexibility for Retailers in the Supplemental Nutrition Assistance Program (SNAP), 13555-13562 [2019-06597]
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13555
Proposed Rules
Federal Register
Vol. 84, No. 66
Friday, April 5, 2019
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.
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Parts 271 and 278
[FNS–2019–0003]
RIN 0584–AE61
Providing Regulatory Flexibility for
Retailers in the Supplemental Nutrition
Assistance Program (SNAP)
Food and Nutrition Service
(FNS), USDA.
ACTION: Proposed rule.
AGENCY:
The Food and Nutrition
Service (FNS, or the Agency) proposes
to make changes to the Supplemental
Nutrition Assistance Program (SNAP)
regulations pertaining to the eligibility
of certain SNAP retail food stores. These
proposed changes are in response to the
Consolidated Appropriations Acts of
2017 and 2018, which prohibited the
U.S. Department of Agriculture (USDA)
from implementing two retailer stocking
provisions (the ‘‘Breadth of Stock’’
provision and the ‘‘Definition of
‘Variety’ ’’ provision) of the 2016 final
rule titled, ‘‘Enhancing Retailer
Standards in the Supplemental
Nutrition Assistance Program (SNAP)’’,
until such a time as regulatory
modifications to the definition of
‘‘variety’’ are made that would increase
the number of food items that count as
acceptable staple food varieties for
purposes of SNAP retailer eligibility.
Using existing authority in the Food and
Nutrition Act of 2008, the Agency
proposes to modify the definition of the
term ‘‘variety’’ as it pertains to the
stocking requirements for SNAP
authorized retail food stores. These
proposed changes would provide
retailers with more flexibility in meeting
the enhanced stocking requirements of
the 2016 final rule which were
mandated by the Agricultural Act of
2014 (the 2014 Farm Bill), and align
SNAP regulations with the requirements
expressed in the Consolidated
Appropriations Acts of 2017 and 2018.
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SUMMARY:
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This proposed rule does not modify any
other provisions or components of the
2016 final rule, ‘‘Enhancing Retailer
Standards in the Supplemental
Nutrition Assistance Program (SNAP).’’
DATES: To be assured of consideration,
comments on this proposed rule must
be received by FNS on or before June 4,
2019.
ADDRESSES: USDA FNS invites
interested persons to submit comments
on this proposed rule. Comments may
be submitted by one of the following
methods:
• Federal e-Rulemaking Portal: This
is the preferred method for comment
submission. Go to https://
www.regulations.gov and follow the
online instructions for submitting
comments.
• Mail: Mailed 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 written comments submitted in
response to this proposed rule 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: https://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
rulemaking to Vicky Robinson, Chief,
Retailer Management and Issuance
Branch, Retailer Policy and
Management Division, at USDA FNS,
3101 Park Center Drive, Alexandria,
Virginia 22302. Ms. Robinson can also
be reached by telephone at (703) 305–
2476 or by email at Vicky.Robinson@
fns.usda.gov during regular business
hours (8:30 a.m. to 5:30 p.m.) Monday
through Friday.
SUPPLEMENTARY INFORMATION:
Background: Final Rulemaking Action
Establishing SNAP Criterion A
In order to be eligible to participate in
SNAP, a store must meet either
Criterion A (staple food stock) or
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Criterion B (staple food sales). These
requirements were formalized by the
final rule titled ‘‘Food Stamp Program:
Revisions to the Retail Food Store
Definition and Program Authorization
Guidance’’ which was published on
January 12, 2001 (66 FR 2795). This
2001 final rule implemented changes
required by the Food Stamp Program
Improvements Act of 1994.
Under this 2001 final rule, Criterion A
eligibility was established to require
that certain stores carry at least three (3)
varieties of staple foods in each of the
four (4) staple food categories as well as
at least one (1) perishable variety in at
least two (2) staple food categories. The
staple food categories are: Meat, poultry,
or fish; dairy products; bread or cereals;
and vegetables or fruits. This 2001 final
rule defined the term ‘‘variety’’, as used
with respect to SNAP Criterion A, at 7
CFR 278.1(b)(1)(ii)(C).
This definition of ‘‘variety’’ was
further clarified by Agency guidance in
the Benefits Redemption Division Policy
Memorandum 01–04, titled,
‘‘Implementation of Final Retail Store
Eligibility Rule’’ which was issued on
August 14, 2001. This 2001
memorandum states that: ‘‘Examples of
unacceptable varieties includes tomato
juice, fresh tomatoes and canned stewed
tomatoes in the vegetables or fruits
category.’’
Since the establishment of SNAP
Criterion A, Agency policy has not
considered multiple formats of a
product (e.g., raw chicken, canned
chicken, and frozen chicken) to
constitute discrete staple food varieties.
Variety has been traditionally defined
by the Agency based on the essential
composition of the food product (i.e.,
main ingredient), especially in the meat,
poultry, or fish and vegetables or fruits
staple food categories. Main ingredient
has generally been determined by a
product’s first listed ingredient in the
ingredients list on the product’s
Nutrition Facts label, as ingredients on
the label are required to be listed from
highest to lowest quantity by weight.
For example, a can of tomato soup with
a first listed ingredient of ‘‘tomatoes’’ in
its ingredients list has a main ingredient
of tomatoes, as that is the ingredient
which occurs in the highest quantity in
the soup, by weight; such a product has
historically been considered a ‘‘tomato’’
variety in the vegetables or fruits staple
food category. In the dairy products and
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bread or cereals staple food category,
most staple foods share the same main
ingredients (e.g., cow milk for dairy and
wheat for bread or cereals); therefore,
product kind (e.g., yogurt for dairy and
bagels for bread or cereals) is used to
define variety in conjunction with main
ingredient. When determining variety in
these two categories, FNS first considers
main ingredient and then product kind.
For example, a package of butter has a
main ingredient of ‘‘cow milk’’ and is
therefore a dairy product. However, FNS
classifies this product as a ‘‘cow milkbased butter’’ staple food variety
according to its identifiable product
kind (butter). Products that share the
same primary component (e.g., sliced
turkey and ground turkey—turkey) and
very similar kinds of products (e.g.,
McIntosh apples and Empire apples—
apples; mozzarella cheese and cheddar
cheese—cheeses) were not generally
considered to represent discrete
varieties in their respective staple food
categories under the 2001 final rule.
Main ingredient and product kind have,
therefore, been recognized in Agency
policy as the primary determinants of
variety since the implementation of the
2001 final rule.
Background: Proposed Rulemaking
Action Modifying SNAP Criterion A
FNS proposed to modify Criterion A
eligibility requirements in a Notice of
Proposed Rulemaking (NPRM) titled
‘‘Enhancing Retailer Standards in the
SNAP’’ which was published on
February 17, 2016 (81 FR 8015). This
2016 NPRM sought to implement
changes required by the 2014 Farm Bill
and codify discretionary provisions
under existing authority in the Food and
Nutrition Act.
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Breadth of Stock
The ‘‘Definition of ‘Retail Food
Store’—Breadth of Stock’’ provision of
the 2016 NPRM proposed to increase
the number of varieties required in each
staple food category from three (3) to
seven (7) and to increase the number of
categories required to contain at least
one (1) variety of perishable staple foods
from two (2) to three (3). These
increases were statutorily mandated by
the 2014 Farm Bill, and were supported
by a majority of commenters.
Definition of ‘‘Variety’’
The ‘‘Definition of ‘Staple Food’—
Acceptable Varieties in the Four Staple
Food Categories’’ provision of the 2016
NPRM proposed to further clarify
existing language at 7 CFR
278.1(b)(1)(ii)(C) that defines ‘‘variety’’
for the purposes of SNAP Criterion A
eligibility by adding additional
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examples of food items considered to be
acceptable staple food varieties. After
the publication of the 2016 NPRM, FNS
received a high volume of questions and
interest from a wide range of
stakeholders. Some of these questions
centered on the definition of ‘‘variety’’
and inquired about other food items
considered to be staple food varieties.
On April 5, 2016, FNS published a
clarification of the proposed rule and
30-day extension of the comment period
at 81 FR 19500. In this 2016 clarification
and extension, FNS indicated a specific
interest in public feedback on the
subject of the definition of ‘‘variety’’,
stating that: ‘‘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.’’
Of the total 1,260 germane and nonduplicative public comments received
on both the 2016 NPRM and the
subsequent clarification, 168 comments,
or approximately 13% of all public
comments, specifically addressed this
provision. About 16% of total retailer
commenters specifically opposed this
provision. Food industry groups largely
opposed this provision and other
commenter types, such as advocacy,
medical, and governmental entities,
were generally divided and/or
expressed mixed opinions. Of those that
opposed the provision, some indicated
that small format stores would struggle
to reach seven (7) varieties in the meat,
poultry, or fish and dairy products
staple food categories and such
commenters suggested increasing
flexibility for stores in these categories.
Such commenters suggested including
plant-based proteins in the meat,
poultry, or fish staple food category and
plant-based dairy alternatives in the
dairy products staple food category.
Background: Final Rulemaking Action
Modifying SNAP Criterion A
After carefully considering the public
comments that were received, FNS
published the final rule titled
‘‘Enhancing Retailer Standards in the
SNAP’’ on December 15, 2016 (81 FR
90675). The ‘‘Definition of ‘Retail Food
Store’—Breadth of Stock’’ provision was
published in this 2016 final rule as
proposed as this was a change mandated
by the 2014 Farm Bill.
The ‘‘Definition of ‘Staple Food’—
Acceptable Varieties in the Four Staple
Food Categories’’ provision, however,
was published with substantial
modifications in the 2016 final rule.
These modifications were made in
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response to public feedback received
and were intended to provide retail food
stores with a greater degree of flexibility
in reaching the new breadth of stock
required of certain retailers under SNAP
Criterion A, especially in the meat,
poultry, or fish and dairy products
staple food categories.
Commenters who responded
adversely to the definition of ‘‘variety’’
as it appeared in the 2016 NPRM
generally focused on the difficulties
small format retailers would have in
reaching seven (7) varieties in the meat,
poultry or fish and the dairy products
staple food category. This concern was
born out by the Agency’s final
Regulatory Flexibility Analysis which
analyzed data from a nationallyrepresentative sample of 1,392 SNAP
authorized small format retail food
stores and indicated that about 93% of
currently SNAP authorized small stores
already stocked enough varieties of
vegetables or fruits and about 78% of
these stores already stocked enough
bread or cereals, while only about 46%
of these stores already stocked enough
meat, poultry, or fish and only about
27% of these stores already stocked
enough dairy products. For this reason,
FNS focused on providing more
flexibility in the latter two staple food
categories through the inclusion of
plant-based protein sources in the meat,
poultry, or fish staple food category, and
the inclusion of plant-based dairy
alternatives as well as additional dairy
flexibilities in the dairy products staple
food category.
Plant-Based Protein Sources
The 2016 final rule allowed for the
counting of plant-based protein sources
as varieties in the meat, poultry, or fish
staple food category. Specifically, this
meant that beans, peas, and nuts/seeds
could each individually be counted
once in either the vegetables or fruits
staple food category, or once in the
meat, poultry, or fish staple food
category. In addition, plant-based meat
analogues, such as tofu and seitan, were
added to the meat, poultry, or fish staple
food category. These changes were
made, consistent with USDA’s MyPlate
nutrition guidelines, to allow retailers
more flexibility in stocking a sufficient
number of varieties in the meat, poultry,
or fish staple food category, and to help
to ensure that SNAP households would
have access to an array of healthy food
options that meet diverse dietary needs
and preferences. FNS is not proposing
to modify or affect this change in this
proposed rule and it will remain in
place as it appeared in the 2016 final
rule.
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Plant-Based Dairy Alternatives
The 2016 final rule allowed for the
counting of plant-based dairy
alternatives as varieties in the dairy
products staple food category.
Specifically this meant that plant-based
dairy products would be considered a
variety in the dairy products staple food
category based on their main ingredient
and the traditional dairy product for
which they are a substitute. So, for
example, soy-based milk substitute,
almond-based milk substitute, ricebased milk substitute, soy-based cheese
substitute, almond-based cheese
substitute, rice-based cheese substitute,
soy-based yogurt substitute, almondbased yogurt substitute, and rice-based
yogurt substitute would each be
considered a discrete variety in the
dairy products staple food category
under the 2016 final rule. Though these
items are plant-based, they are
recognized as dairy equivalents and,
therefore, would not count as varieties
in the remaining staple food categories
under the 2016 final rule. These changes
were made in keeping with USDA’s
MyPlate nutrition guidelines, to allow
retailers more flexibility in stocking a
sufficient number of varieties in the
Additional Dairy Flexibilities
The 2016 final rule modified existing
Agency policy to subdivide certain
traditional, cow milk-based dairy
varieties into more than one variety. For
example, under the 2001 final rule,
cheese was considered one variety
while under the 2016 final rule, cow
milk-based soft cheese and cow milkbased firm/hard cheese each were
considered discrete varieties.
Additionally, under the 2016 final rule,
shelf-stable liquid cow milk (e.g.,
evaporated or condensed milk),
perishable liquid cow milk, and shelfstable powdered cow milk would each
be considered discrete varieties in the
dairy products staple food category.
Finally, under the 2016 final rule, cow
milk-based yogurt and cow milk-based
kefir (a yogurt drink) would each be
considered discrete varieties in the
dairy products staple food category.
These changes were made in order to
allow retailers more flexibility in
stocking a sufficient number of
traditional varieties in the dairy
products category. This proposed rule
would modify these changes, as
discussed later in this document, in
order to provide further flexibility in the
dairy products staple food category.
Sufficient Breadth of Stock Under the
2016 Final Rule
Included below are two (2) tables that
demonstrate completely different ways a
retail food store could reach the
required seven (7) varieties in each of
the four staple food categories using the
definition of ‘‘variety’’ as it appeared in
the 2016 final rule. These are just
examples of two (2) combinations that
would satisfy the requirements in the
2016 final rule. These charts do not
include all of the acceptable varieties or
possible combinations of varieties.
Additional examples of acceptable
varieties in the four staple food
categories are available in the ‘‘List of
Examples’’ section of the 2016 final
rule.
Meat, poultry, or fish
Dairy products
Vegetables or fruits
Bread or cereals
1. nuts/seeds .................................
2. chicken .......................................
3. tuna fish .....................................
1. liquid, perishable cow milk .......
2. cow milk-based yogurt .............
3. soy-based milk substitute .........
1. apples .......................................
2. oranges .....................................
3. plums ........................................
4. beef ............................................
5. eggs ...........................................
4. cow milk-based infant formula
5. cow milk-based hard cheese ...
4. peaches ....................................
5. lettuce .......................................
6. catfish ........................................
6.
6. celery ........................................
7. beans .........................................
powdered, shelf-stable cow
milk.
7. cow milk-based soft cheese .....
1. wheat-based tortillas.
2. wheat-based pitas.
3. corn-based cold breakfast cereal.
4. rice.
5. oats-based hot breakfast cereal.
6. wheat-based bread.
7. pumpkin ....................................
7. wheat-based buns/rolls.
Meat, poultry, or fish
Dairy products
Vegetables or fruits
1.
2.
3.
4.
5.
6.
7.
salmon .......................................
turkey .........................................
sardines .....................................
pork ............................................
clams .........................................
peas ...........................................
tilapia .........................................
1.
2.
3.
4.
5.
6.
7.
cow milk-based butter ..............
oil-based butter substitute ........
cow milk-based sour cream .....
rice-based milk substitute .........
liquid, shelf-stable cow milk .....
cow milk-based kefir .................
soy-based infant formula ..........
Proposed Changes to the Definition of
‘‘Variety’’
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dairy products category, and to help to
ensure that SNAP households will have
access to an array of healthy food
options that meet diverse dietary needs
and preferences. FNS is not proposing
to modify or affect this change in this
proposed rule and it will remain in
place as it appeared in the 2016 final
rule.
13557
On May 5, 2017, the Consolidated
Appropriations Act of 2017 was signed
into law. Sec. 765 of the Consolidated
Appropriations Acts of 2017 and
thereafter the Consolidated
Appropriations Act of 2018, prohibit the
USDA from implementing the
‘‘Definition of ‘Staple Food’—
Acceptable Varieties in the Four Staple
Food Categories’’ provision (7 CFR
271.2 and 7 CFR 278.1(b)(1)(ii)(C)) and
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1.
2.
3.
4.
5.
6.
7.
tomatoes ...................................
bananas ....................................
grapes .......................................
onions .......................................
pineapple ..................................
cucumbers ................................
carrots .......................................
the ‘‘Definition of ‘Retail Food Store’—
Breadth of Stock’’ provision (7 CFR
271.2 and 7 CFR 278.1(b)(1)(ii)(A)) of
the 2016 final rule until the USDA
promulgates regulatory amendments
that modify the ‘‘Definition of ‘Staple
Food’—Acceptable Varieties in the Four
Staple Food Categories’’ provision of the
2016 final rule. Such regulatory
amendments, moreover, must increase
the number of items that qualify as
acceptable varieties in each staple food
category.
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Bread or cereals
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1.
2.
3.
4.
5.
6.
7.
wheat-based flour.
wheat-based baking mixes.
rye-based bread.
rice-based pasta.
wheat-based bagels.
rice-based infant cereal.
wheat-based English muffins.
Using existing authority in the Food
and Nutrition Act of 2008, as amended,
FNS proposes to make changes to
regulations at 7 CFR 271.2 and 7 CFR
278.1(b)(1)(ii)(C) to modify the
definition of the term ‘‘variety’’ as it
pertains to the stocking requirements for
certain SNAP authorized retail food
stores in order to increase the number
of items that qualify as acceptable
varieties in the four staple food
categories, especially in the meat,
poultry or fish, dairy, and breads or
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cereals staple food categories. These
changes would provide retailers with
more flexibility in meeting the
enhanced SNAP eligibility requirements
and meet the requirements expressed in
the Consolidated Appropriations Acts of
2017 and 2018.
Together the changes proposed below
add five (5) or more additional, discrete
varieties in the meat, poultry, or fish,
dairy, and bread or cereals staple food
category, and provide five (5) more
illustrative examples in the vegetables
or fruits staple food category.
Additionally, the current proposed rule
will retain the changes in the 2016 final
rule that provided flexibility regarding
plant-based protein sources and plantbased dairy alternatives. Those
flexibilities would remain in place as
they appeared in the 2016 final rule. In
conjunction with the twenty (20)
discrete varieties identified in the ‘‘List
of Examples’’ in the 2016 final rule, the
proposed changes to the definition of
‘‘variety’’ would provide stores with a
wide range of options in meeting
stocking requirements in all four staple
food categories.
FNS is also proposing to add an
official definition of ‘‘variety’’ to the
General Information and Definitions
section of SNAP regulations found at 7
CFR 271.2 in order to convey that
variety is intended to signify main
ingredient or product kind. The
inclusion of this definition codifies
existing Agency practice which dictates
which food items are considered to be
staple food varieties. FNS considers the
inclusion of this definition to be
paramount to a clear understanding of
the term ‘‘variety’’ in the context of
SNAP retailer eligibility and the
proposed changes in this rulemaking.
This proposed rule would not modify
any other provisions or components of
the 2016 final rule.
Proposed changes made to the
definition of ‘‘variety’’ are expected to
have significant effects upon the SNAP
retailer authorization process. Below are
the strategies FNS is proposing to
modify the definition of ‘‘variety’’ and
provide retail food stores with more
flexibility. FNS welcomes comments
that specifically address these proposed
changes as well as comments that offer
other possible strategies for providing
retailers with more flexibility while
ensuring SNAP recipients have access to
a range of healthful options at SNAP
authorized retail food stores. FNS
encourages commenters to include
comments discussing the practicality
and rationality of any suggested
changes, as well as the nutritional and
industry impact of these changes.
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I. Flexibility for Perishable and ShelfStable Meat, Poultry, and Fish Products
II. Additional Flexibilities for Common
Cow Milk-Based Dairy Products
Under the 2016 final rule, ‘‘variety’’
was generally defined by product kind
or main ingredient in the meat, poultry,
or fish staple food category. This meant
that chicken, pork, and beef were each
considered discrete varieties. This also
meant that, under the 2016 final rule,
canned chicken and frozen chicken
were not each considered discrete
varieties. The Department is proposing
a change with this rule that would allow
any species of meat, poultry, or fish to
be counted once as a discrete variety, if
perishable, and once as a discrete
variety, if shelf-stable.
Per SNAP regulations at 7 CFR
278.1(b)(1)(ii)(B), ‘‘perishable foods’’ are
items which are frozen, refrigerated, or
fresh staple food items that would spoil
or suffer significant deterioration in
quality within three weeks if stored at
room temperature. An example of a
perishable food in the meat, poultry, or
fish staple food category is a raw salmon
filet. ‘‘Shelf-stable foods’’ are items
which are dried, pickled, smoked, or
otherwise preserved, and stored in cans,
jars, or other packaging that do not
require refrigeration and would not
spoil or suffer significant deterioration
in quality within three weeks if the
packaging remains unopened. An
example of a shelf-stable food in the
meat, poultry, or fish staple food
category is a tin of sardines that requires
no refrigeration.
To reach the required seven (7)
varieties in the meat, poultry, or fish
staple food category under this change,
for example, a store could stock the
following:
A. Cheese
Under the 2016 final rule, one specific
traditional dairy product (cow milkbased cheese) was subdivided into two
varieties (i.e., soft cheese and hard/firm
cheese) in order to provide more
flexibility for stores in meeting the
required seven (7) varieties in the dairy
staple food category. The Department is
proposing a change with this rule that
would further subdivide cow milkbased cheese into four discrete varieties
in the dairy products staple food
category. The proposed subdivision of
cow milk-based cheese would include
the following four varieties and would
be mirrored for other animal milk-based
cheeses (e.g., goat milk-based cheese):
1. Fresh cow milk-based cheeses (e.g.,
cream cheese, cottage cheese, and
ricotta cheese) are creamy, spreadable,
and perishable dairy products.
2. Soft and semi-soft cow milk-based
cheeses (e.g., mozzarella cheese,
Munster cheese, and brie cheese) are
moist, slightly cured, and perishable
dairy products.
3. Hard, firm, semi-hard, or mediumhard cow milk-based cheeses (e.g.,
cheddar cheese, Swiss cheese, and
Parmesan cheese) are less moist and
more cured dairy products.
4. Cow milk-based cheese products
and cow milk-based cheese- or dairybased sauces, spreads, or dips (e.g.,
canned spray cheese sauce, canned
cheese dipping sauce, jarred Alfredo
pasta sauce, and American cheese
slices) are processed, often shelf-stable
dairy products that have a dairy main
ingredient (e.g., milk or whey).
With this change, a store could stock
four discrete varieties of cow milk-based
cheese (fresh cheese, soft cheese, hard
cheese, and cheese product). This
change to the definition of ‘‘variety’’
would, therefore, provide an additional
two cheese varieties for each type of
animal milk-based cheese in the dairy
products staple food category.
1. Canned ham (shelf-stable pork)
2. refrigerated bacon (perishable pork)
3. beef jerky (shelf-stable beef)
4. refrigerated deli-sliced roast beef
(perishable beef)
5. frozen chicken breasts (perishable
chicken)
6. canned chicken (shelf-stable chicken)
7. canned tuna fish (shelf-stable tuna
fish)
This is just an illustrative list and not
meant to be exhaustive. This proposed
change to the definition of ‘‘variety’’
would provide considerable additional
flexibility in the meat, poultry, or fish
staple food category, as this change
would effectively double the number of
available varieties in this category,
where a staple food is available in both
perishable and non-perishable forms.
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B. Milk
Under the 2016 final rule, one specific
traditional dairy product (cow milk) was
subdivided into three varieties
(perishable cow milk, liquid shelf-stable
cow milk, and powdered cow milk) in
order to provide more flexibility for
stores in meeting the required seven (7)
varieties in the dairy staple food
category. The Department is proposing a
change with this rule that would further
subdivide traditional dairy milk (cow
milk) into four discrete varieties in the
dairy products staple food category. The
proposed subdivision of cow milk
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would include the following four
varieties and would be mirrored for
other animal milks (e.g., goat milk):
1. Full-fat cow milks (e.g., whole
milk, cream, and half-and-half) are
liquid, perishable cow milk products
with 3% or greater fat content.
2. Fat-reduced cow milks (e.g., 2%
milk, 1% milk, skim milk, and other
low-fat and non-fat milks) are liquid,
perishable cow milk products with less
than 3% fat content.
3. Liquid shelf-stable cow milks (e.g.,
long-life milk, evaporated milk, and
condensed milk) are cow milk products
that have been processed and sealed in
cans or cartons to render them shelfstable.
4. Powdered cow milks (e.g., dried
milk, whey powder, and casein powder)
are cow milk products that have been
processed and dehydrated to render
them shelf-stable.
With this change, a store could stock
four discrete varieties of cow milk
products (full-fat cow milk, fat-reduced
cow milk, liquid shelf-stable cow milk,
and powdered cow milk). This change
to the definition of ‘‘variety’’ would,
therefore, provide an additional variety
in the dairy products staple food
category for each type of animal milk in
the dairy products staple food category.
As noted earlier, the plant-based dairy
alternatives proposed in the 2016 final
rule—such as almond-based and soybased milk substitutes—would remain
unchanged in this proposed rule, and
thus would also provide retailers with
additional stocking options in this
category.
C. Yogurt
Under the 2016 final rule one specific
traditional dairy product (cow milkbased yogurt) was subdivided into two
varieties (cow milk-based yogurt and
perishable cow milk-based kefir) in
order to provide more flexibility for
stores in meeting the required seven (7)
varieties in the dairy staple food
category. The Department is proposing a
change with this rule that would replace
‘‘perishable cow milk-based kefir’’ with
cow milk-based yogurt drinks, to
include other general yogurt-based
drinks such as lassi and probiotic
cultured milk smoothies. In addition,
the Department is proposing to further
subdivide ‘‘cow milk-based yogurt’’ into
two distinct varieties and to mirror this
subdivision in other animal milk-based
yogurts (e.g., goat milk-based yogurt).
Thus, these proposed changes to the
definition of variety would provide an
additional variety in the dairy products
staple food category for each type of
animal milk-based yogurt. The proposed
subdivision of cow milk-based yogurt
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would include the following three
varieties:
1. Cow milk-based yogurt drinks (e.g.,
lassi, kefir, and probiotic cultured milk
smoothie) are liquid cow milk-based
yogurt beverages that have cultured
milk or yogurt as a main ingredient.
2. Full-fat cow milk-based yogurts
(e.g., strawberry full-fat yogurt, vanilla
full-fat yogurt, and plain full-fat yogurt)
are fermented semi-solid food products
made from cow milk with 3% or greater
fat content.
3. Fat-reduced cow milk-based
yogurts (e.g., strawberry low-fat yogurt,
vanilla non-fat yogurt, and plain non-fat
yogurt) are fermented semi-solid food
products made from cow milk with less
than 3% fat content.
To reach the required seven (7)
varieties in the dairy products food
category under this change, for example,
a store could stock the following:
1. 2% milk (fat-reduced cow milk)
2. nacho cheese dip (cow milk-based
cheese-based sauce)
3. parmesan cheese (cow milk-based
hard cheese)
4. evaporated milk (liquid shelf-stable
cow milk)
5. peach full-fat yogurt cup (cow milkbased full-fat yogurt)
6. ricotta cheese (cow milk-based fresh
cheese)
7. whole milk (full-fat cow milk)
additional edible vegetable or fruit
which was not already considered to be
a discrete staple food variety under the
2016 final rule. Further, all attempts to
subdivide existing vegetable or fruit
staple food varieties were problematic
in that they clearly favored those
vegetables or fruits which are more
distinctly divisible.
That said, FNS recognizes that
additional guidance on the numerous
stocking options available in this
category may be necessary. Thus, in
addition to the further explanation
provided above, included below are an
additional five (5) varieties that are also
considered acceptable varieties in the
vegetables or fruits staple food category.
These five (5) examples of acceptable
varieties did not appear in the 2016
final rule ‘‘List of Examples’’ section:
1. Lemons (e.g., 100% lemon juice and
fresh lemons)
2. Beets (e.g., canned beets and fresh
beets)
3. Spinach (e.g., fresh spinach and
frozen spinach)
4. Cauliflower (e.g., fresh cauliflower
and packaged cauliflower rice)
5. Olives (e.g., canned black olives and
jarred pimiento stuffed olives)
III. Additional Examples of Staple Food
Varieties in the Vegetables or Fruits
Staple Food Category
Under the 2016 final rule, FNS
generally considered each distinct
vegetable or fruit plant (e.g., lettuce,
collard greens, kale, etc.) to be a discrete
staple food variety. As such, twenty (20)
examples of fruits or vegetables, all
considered to be acceptable varieties in
the vegetables or fruits staple food
category, were provided in the ‘‘List of
Examples’’ section. This list was not
intended to be comprehensive, as the
number of distinct vegetable and fruit
plants is considerable. Accordingly, the
2016 final rule provided numerous
stocking options in meeting
requirements in the vegetables or fruits
staple food category, as evidenced by
the 93% of currently authorized small
format retailers who already meet
requirements under the definition of
variety provided in the 2016 final rule.
This proposed rule would maintain
the definition of variety as outlined in
the 2016 final rule as it pertains to
acceptable varieties in the fruits or
vegetables staple food category, with no
proposed changes at this time. In
attempting to identify additional, new
staple food varieties in the category,
FNS was unable to identify any
A. Bread
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IV. Additional Flexibilities for Common
Wheat-Based Bread and Cereal Products
Under the 2016 final rule, the staple
food variety ‘‘wheat-based bread’’ was
subdivided into five discrete staple food
varieties in the bread or cereals staple
food category (wheat-based bread,
wheat-based bagels, wheat-based buns/
rolls, wheat-based English muffins, and
wheat-based pitas) in order to provide
more flexibility for stores in meeting the
required seven (7) varieties in the bread
or cereals staple food category. The
Department is proposing a change with
this rule that would further subdivide
the ‘‘wheat-based bread’’ staple food
variety by adding the following three
discrete staple food varieties in addition
to the five varieties listed above: Wheatbased Indian flatbread, wheat-based
crescent bread, and wheat-based
matzah. This subdivision would be
mirrored for other grain-based breads
such as oats-based breads and rice-based
breads. Thus, the proposed change to
the definition of ‘‘variety’’ would
provide three additional staple food
varieties in the bread or cereals products
staple food category for each type of
grain-based bread. Under the proposed
changes, the following eight would be
considered discrete staple food varieties
in the bread or cereals staple food
category:
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1. Wheat-based breads (e.g., loaves of
sliced bread and whole baguettes)
2. Wheat-based pitas (e.g., plain pitas)
3. Wheat-based bagels (e.g., cinnamon
raisin bagels and blueberry bagels)
4. Wheat-based English muffins (e.g.,
plain English muffins and mapleinfused English muffins)
5. Wheat-based buns/rolls (e.g.,
hamburger buns and frozen dinner
rolls)
6. Wheat-based Indian flatbreads (e.g.,
roti and Naan)
7. Wheat-based matzah (e.g., egg matzah
and wheat matzah)
8. Wheat-based crescent breads (e.g.,
plain croissants and refrigerated,
ready-to-bake crescent breads)
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B. Flour
Under the 2016 final rule, wheat flour
was considered to be a ‘‘general wheatbased product’’ staple food variety, such
that a bag of wheat flour and a wheatbased frozen pizza were both considered
to be a ‘‘general wheat-based product’’
staple food variety in the bread or
cereals staple food category. The
Department is proposing a change with
this rule that would add ‘‘wheat-based
flour’’ as a discrete staple food variety
in the bread or cereals staple food
category. This change would be
mirrored for other grain-based flours
such as rice-based flour and cornmeal.
Thus, the proposed change to the
definition of ‘‘variety’’ would, therefore,
provide an additional staple food
variety in the bread or cereals products
staple food category for each type of
grain-based flour. Under the proposed
changes, the following two would be
considered discrete staple food varieties
in the bread or cereals staple food
category:
1. General wheat-based product (e.g., a
wheat-based frozen pizza and a
wheat-based pre-packaged
sandwich)
2. Wheat-based flour (e.g., a bag of
wheat flour)
V. Flexibility for 100% Whole Grain
Products
Under the 2016 final rule, 100%
whole grain products, such as 100%
whole grain rye-based bread, were not
considered to be discrete varieties in the
bread or cereals staple food category.
This meant that if a store stocked both
wheat-based bagels and 100% whole
grain wheat-based bagels, the store
would have only one staple food
variety: Wheat-based bagels. The
Department is proposing a change with
this rule that would allow any bread or
cereal staple food to be counted once if
it is a 100% whole grain product, and
once if less than a 100% whole grain
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product. The proposed change to the
definition of ‘‘variety’’ would provide
considerable additional flexibility in the
bread or cereals staple food category, as
this change would effectively double the
number of available varieties in this
category, where a staple food is
available in both 100% whole grain and
less than 100% whole grain forms.
To reach the required seven (7)
varieties in the bread or cereals staple
food category under the proposed
changes, for example, a store could
stock the following:
1. Spaghetti (wheat-based pasta)
2. frozen pre-made burritos (general
wheat-based product)
3. wheat flour (wheat-based flour)
4. whole wheat bagels (100% whole
grain wheat-based bagels)
5. roti (wheat-based Indian flatbreads)
6. plain croissants (wheat-based
crescent breads)
7. cinnamon raisin bagels (wheat-based
bagels)
Comments Requested on the Definition
of ‘‘Variety’’
FNS requests comments that address
logical and implementable ways to
modify the definition of ‘‘variety’’ so
that it provides more flexibility to
stores, while also ensuring that SNAP
recipients are assured access to a range
of healthful food options.
The word ‘‘variety’’ denotes diversity
and difference. FNS depends primarily
upon a product’s main ingredient or
product kind to define ‘‘variety.’’
Several other defining elements of food
products (brands, nutrient values,
flavorings, packaging types or styles, or
package sizes) are generally excluded
from consideration, as they have the
potential to render the term ‘‘variety’’
meaningless in effect. For example, if
FNS were to consider different brands
and packaging types as discrete staple
food varieties, a store could meet the
vegetables or fruits staple food category
requirement with seven (7) kinds of
tomatoes (e.g., Brand A tomato sauce,
Brand B tomato sauce, 100% tomato
juice, raw Roma tomato, raw beefsteak
tomato, canned tomato paste, and
sundried tomatoes). Such a result would
seem to run counter to the purpose of
Criterion A, namely ensuring that SNAP
authorized retail food stores offer for
sale to SNAP recipients a range of
different food products in all four staple
food categories.
That said, some of the changes to the
definition of ‘‘variety’’ already
discussed in this proposed rule consider
nutrient values and packaging styles in
a limited fashion, especially in the meat,
poultry, or fish and dairy products
staple food categories. In providing
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these additional flexibilities, FNS
acknowledges these were the two (2)
main categories in which small format
retailers were likely to experience
stocking challenges under the 2016 final
rule. Nevertheless, FNS welcomes
comments that address feasible ways to
modify the definition of ‘‘variety’’ in
each staple food category to provide
more flexibility to stores.
Procedural Matters
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health, and safety
effects, distributive impacts, and
equity). Executive Order 13563
emphasizes the importance of
quantifying both cost and benefits,
reducing cost, harmonizing rules, and
promoting flexibility. This proposed
rule has been determined to be
significant and was reviewed by the
Office of Management and Budget. The
Regulatory Impact Analysis (RIA) for
this rulemaking was published as part of
the docket in Supporting Documents on
www.regulations.gov. A summary of the
RIA follows.
Regulatory Impact Analysis
Need for Action
The proposed rule is in response to
Sec. 765 of the Consolidated
Appropriations Act of 2017 and Sec.
728 of the Consolidated Appropriations
Act of 2018, which prohibit USDA from
implementing two retailer stocking
provisions (‘‘Breadth of Stock’’ and
‘‘Definition of ‘Variety’’’) of the final
rule, ‘‘Enhancing Retailer Standards in
the Supplemental Nutrition Assistance
Program (SNAP)’’ (the 2016 final rule),
until such a time as regulatory
modifications to the definition of
‘‘variety’’ are made that would increase
the number of food items considered to
be staple food varieties for purposes of
SNAP retailer eligibility. The proposed
rulemaking would modify the definition
of ‘‘variety’’ in order to align SNAP
regulations with the requirements
expressed in the Consolidated
Appropriations Acts of 2017 and 2018,
thus allowing FNS to move forward
with implementation of the ‘‘Breadth of
Stock’’ requirements of the final rule,
which were mandated by the
Agricultural Act of 2014.
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Benefits
This rulemaking would provide
regulatory flexibility to 187,000 smaller
authorized retailers (e.g. convenience
stores, small grocery stores, combination
stores, etc.) in meeting the enhanced
stocking requirements of the 2016 final
rule. As discussed below, the proposed
changes would require the average small
store to add six (6) fewer items to their
stock in order to meet the new stocking
requirements of the 2016 final rule,
providing a savings of $16.1 million to
retailers in fiscal year (FY) 2018 and
approximately $22.5 million over five
years, FY 2018 through FY 2022,
relative to the costs of the 2016 final
rule.
Costs
The proposed rule is not expected to
impact costs to the Federal government.
While FNS anticipates that the need to
conduct store visits to verify that stores
are compliant with the new
requirements, those costs were fully
captured in the 2016 final rule analysis.
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Regulatory Flexibility Act
This proposed rule has been reviewed
with regard to the requirements of the
Regulatory Flexibility Act of 1980 (5
U.S.C. 601–612). Pursuant to that
review, FNS believes that the
rulemaking would not present a
significant impact to a substantial
number of small businesses. It provides
greater regulatory flexibility to SNAP
retailers, particularly small entities, in
meeting the enhanced stocking
requirements of the 2016 final rule,
‘‘Enhancing Retailer Standards in the
Supplemental Nutrition Assistance
Program (SNAP).’’ FNS estimates
average costs to those small businesses
for meeting enhanced stocking
requirements, would be $86 less per
store in the first year and $120 less over
five years, for a decreased average cost
of $160 per store in the first year and
$500 over five years. However, FNS has
prepared this Regulatory Flexibility
Analysis to provide the opportunity for
comment and input from the public.
The complete Regulatory Flexibility
Analysis for this rule was published as
part of the docket in Supporting
Documents on www.regulations.gov.
Unfunded Mandate Reform Act
Title II of the Unfunded Mandate
Reform Act of 1995 (UMRA), Public
Law 104–4, 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 Agency generally must prepare a
written statement, including a cost
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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
Agency 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 proposed rule contains no
Federal mandates (under the regulatory
provisions 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. This rulemaking
is, therefore, not subject to the
requirements of Sections 202 and 205 of
the UMRA.
Executive Order 12372
Executive Order 12372 requires
Federal agencies to engage in
intergovernmental consultation with
State and local officials when involved
in Federal financial assistance programs
and direct Federal development. SNAP
is listed in the Catalog of Federal
Domestic Assistance under No. 10.551.
For the reasons set forth in this
proposed rule, Department of
Agriculture Programs and Activities
Excluded from Executive Order 12372
(48 FR 29115, June 24, 1983), this
Program is excluded from the scope of
Executive Order 12372.
Federalism Summary Impact Statement
Executive Order 13132 requires
Federal agencies to consider the impact
of their regulatory actions on State and
local governments. Where such actions
have federalism implications, agencies
are directed to provide a statement for
inclusion in the preamble to the
regulations describing the agencies’
considerations in terms of the three
categories called for under Section
6(b)(2)(B) of the Executive Order 13132.
FNS has determined that this proposed
rulemaking does not have federalism
implications. Therefore, under Section
6(b) of the Executive Order, a federalism
summary impact statement is not
required.
Executive Order 13771
This proposed rule is expected to be
an Executive Order 13771 deregulatory
action that seeks to ease the staple food
stocking requirements for SNAP
authorized retailers. In particular, the
proposed changes would aid small
format retailers in meeting the enhanced
stocking requirements of the 2016 final
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13561
rule, ‘‘Enhancing Retailer Standards in
the Supplemental Nutrition Assistance
Program (SNAP),’’ by expanding the
definition of ‘‘variety’’ in the four staple
food categories. These changes would
provide retailers with additional options
of acceptable staple food varieties in
each of the four staple food categories,
which will aid them in meeting the
enhanced SNAP retailer eligibility
requirements of Criterion A and save
them an average of $86 in meeting
stocking requirements.
Executive Order 12988, Civil Justice
Reform
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. This rule is intended to
have preemptive effects with respect to
any State or local laws, regulations, or
policies that conflict with its provisions
or that would otherwise impede its full
implementation. This rule is not
intended to have retroactive effects.
Prior to any judicial challenge to the
provisions of the final rule or the
application of its provisions, all
applicable administrative procedures
must be exhausted.
Executive Order 13175
This rule has been reviewed in
accordance with the requirements of
Executive Order 13175, ‘‘Consultation
and Coordination with Indian Tribal
Governments.’’ Executive Order 13175
requires Federal agencies to consult and
coordinate with tribes on a governmentto-government basis on policies that
have tribal implications, including
regulations, legislative comments or
proposed legislation, and other policy
statements or actions that have
substantial direct effects on one or more
Indian tribes, on the relationship
between the Federal Government and
Indian tribes or on the distribution of
power and responsibilities between the
Federal Government and Indian tribes.
FNS has assessed the impact of this
rule on Indian tribes and determined
that this rule does not, to our
knowledge, have tribal implications that
require tribal consultation under E.O.
13175. If a Tribe requests consultation,
the FNS will work with the Office of
Tribal Relations to ensure meaningful
consultation is provided where changes,
additions and modifications identified
herein are not expressly mandated by
Congress.
It should be noted that, currently,
FNS provides regularly scheduled
quarterly information sessions as a
venue for collaborative conversations
with Tribal officials or their designees.
Reports from these information sessions
are part of the USDA annual reporting
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on Tribal consultation and
collaboration.
Civil Rights Impact Analysis
FNS has reviewed this proposed rule
in accordance with Departmental
Regulations 4300–4, ‘‘Civil Rights
Impact Analysis’’ and 1512–1,
‘‘Regulatory Decision Making
Requirements’’ to identify and address
any major civil rights impacts the
proposed rule might have on minorities,
women, persons with disabilities, or
other protected classes. FNS has
determined that this proposed rule will
not have an adverse impact on any retail
food store owners or SNAP recipients
belonging to protected classes. The
regulation only concerns those retail
food stores participating in SNAP that
would not meet the increased staple
food stocking requirements necessary
for SNAP authorization that were
mandated by the 2014 Farm Bill and
codified in the 2016 final rule,
‘‘Enhancing Retailer Standards in the
Supplemental Nutrition Assistance
Program (SNAP).’’ The proposed
regulatory changes would aid those
retail stores, which are primarily small
format retailers, in meeting the
enhanced stocking requirements of the
2016 final rule. This proposed rule
would not change any requirements
related to the eligibility or participation
of protected classes or individuals,
minority owned or operated business
entities, or woman owned or operated
business entities in SNAP. As a result,
this rulemaking would have no
differential impact on protected classes
of individuals, minority owned or
operated business entities, or woman
owned or operated business entities.
Relatedly, FNS does not collect data
from retail food stores regarding any of
the protected classes under Title VI of
the Civil Rights Act of 1964, and FNS
specifically prohibits retailers that
participate in SNAP to engage in actions
that discriminate based on race, color,
national origin, sex, age, disability,
religion or political belief.
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16:17 Apr 04, 2019
List of Subjects
7 CFR Part 271
Food stamps, Grant programs—Social
programs, Reporting and recordkeeping
requirements.
7 CFR Part 278
Banks, banking, Food stamps, Grant
programs—social programs, Penalties,
Reporting and recordkeeping
requirements, Surety bonds.
Accordingly, 7 CFR parts 271 and 278
are proposed to be amended as follows:
■ 1. The authority citation for parts 271
and 278 continue to read as follows:
Authority: 7 U.S.C. 2011–2036.
PART 271—GENERAL INFORMATION
AND DEFINITIONS
2. In § 271.2, add a definition for
Variety in alphabetical order to read as
follows:
■
§ 271.2
Definitions.
*
*
*
*
*
Variety, in evaluating a firm’s stock of
staple foods for purposes of determining
eligibility to participate in SNAP, means
foods that differ from each other by
distinct main ingredient or product kind
as determined by the Secretary. See 7
CFR 278.1(b)(1)(ii)(C).
*
*
*
*
*
PART 278—PARTICIPATION OF
RETAIL FOOD STORES, WHOLESALE
FOOD CONCERNS AND INSURED
FINANCIAL INSTITUTIONS
Jkt 247001
grapes in the vegetables or fruits
category; or fat-reduced cow milk,
almond-based milk substitute, soy-based
yogurt substitute, soft goat milk-based
cheese, cow milk-based butter, cow
milk-based sour cream, and cow milkbased full-fat yogurt in the dairy
products category; or rice, wheat-based
bagels, 100% whole grain wheat-based
bagels, wheat-based pitas, rye-based
bread, rice-based pasta, oatmeal, and
wheat-based matzah in the bread or
cereals category; or shelf-stable chicken,
beans, nuts/seeds, perishable beef,
perishable pork, chicken eggs, and
perishable chicken in the meat, poultry,
or fish category.
(2) Variety of foods is not to be
interpreted as different brands, nutrient
values (e.g., low sodium and lite),
flavorings (e.g., vanilla and chocolate),
packaging types or styles (e.g. boxed and
bagged, or fresh and frozen), meat cuts,
product shapes, textures, or package
sizes of the same or similar foods except
where explicitly specified in Agency
guidance. Similar food items such as,
but not limited to, tomatoes and tomato
juice, brown rice and white rice, 1%
milk and skim milk, perishable ground
beef and perishable beefsteak, or
different types of apples (e.g., Empire,
Jonagold, and McIntosh), shall count as
depth of stock but shall not each be
counted as more than one staple food
variety for the purpose of determining
the number of varieties in any staple
food category except where explicitly
specified in Agency guidance.
Accessory foods shall not be counted as
staple foods for purposes of determining
eligibility to participate in SNAP as a
retail food store.
*
*
*
*
*
Dated: March 28, 2019.
Brandon Lipps,
Acting Deputy Under Secretary, Food,
Nutrition, and Consumer Services.
[FR Doc. 2019–06597 Filed 4–4–19; 8:45 am]
BILLING CODE 3410–30–P
DEPARTMENT OF AGRICULTURE
3. Revise § 278.1(b)(1)(ii)(C) to read as
follows:
Commodity Credit Corporation
§ 278.1 Approval of retail food stores and
wholesale food concerns.
7 CFR Part 1423
■
The Paperwork Reduction Act of 1995
(44 U.S.C. Chap. 35; see 5 CFR part
1320) requires that the Office of
Management and Budget (OMB)
approve all collections of information
by a Federal agency from the public
before they can be implemented.
Respondents are not required to respond
to any collection of information unless
it displays a current valid OMB control
number. There is no information
collection burden associated with this
proposed rule.
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E-Government Act Compliance
FNS is committed to complying with
the E-Government Act of 2002, Public
Law 107–347, to promote the use of the
internet and other information
technologies to provide increased
opportunities for citizen access to
government information and services,
and for other purposes. FNS intends to
provide Program stakeholders with
guidance and technical assistance
materials related to this proposed rule
using online media.
*
*
*
*
*
(b) * * *
(1) * * *
(ii) * * *
(C)(1) Offer a variety of staple foods
within each staple food category that
differ from each other by distinct main
ingredient or product kind. For
example: Apples, cabbage, tomatoes,
bananas, pumpkins, broccoli, and
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[Doc. No. AMS–FTPP–18–0085]
Delivery and Shipping Standards for
Cotton Warehouses
Commodity Credit Corporation,
USDA.
ACTION: Proposed rule.
AGENCY:
The U.S. Department of
Agriculture’s (USDA) Commodity Credit
SUMMARY:
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05APP1
Agencies
[Federal Register Volume 84, Number 66 (Friday, April 5, 2019)]
[Proposed Rules]
[Pages 13555-13562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06597]
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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.
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Federal Register / Vol. 84, No. 66 / Friday, April 5, 2019 / Proposed
Rules
[[Page 13555]]
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Parts 271 and 278
[FNS-2019-0003]
RIN 0584-AE61
Providing Regulatory Flexibility for Retailers in the
Supplemental Nutrition Assistance Program (SNAP)
AGENCY: Food and Nutrition Service (FNS), USDA.
ACTION: Proposed rule.
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SUMMARY: The Food and Nutrition Service (FNS, or the Agency) proposes
to make changes to the Supplemental Nutrition Assistance Program (SNAP)
regulations pertaining to the eligibility of certain SNAP retail food
stores. These proposed changes are in response to the Consolidated
Appropriations Acts of 2017 and 2018, which prohibited the U.S.
Department of Agriculture (USDA) from implementing two retailer
stocking provisions (the ``Breadth of Stock'' provision and the
``Definition of `Variety' '' provision) of the 2016 final rule titled,
``Enhancing Retailer Standards in the Supplemental Nutrition Assistance
Program (SNAP)'', until such a time as regulatory modifications to the
definition of ``variety'' are made that would increase the number of
food items that count as acceptable staple food varieties for purposes
of SNAP retailer eligibility. Using existing authority in the Food and
Nutrition Act of 2008, the Agency proposes to modify the definition of
the term ``variety'' as it pertains to the stocking requirements for
SNAP authorized retail food stores. These proposed changes would
provide retailers with more flexibility in meeting the enhanced
stocking requirements of the 2016 final rule which were mandated by the
Agricultural Act of 2014 (the 2014 Farm Bill), and align SNAP
regulations with the requirements expressed in the Consolidated
Appropriations Acts of 2017 and 2018. This proposed rule does not
modify any other provisions or components of the 2016 final rule,
``Enhancing Retailer Standards in the Supplemental Nutrition Assistance
Program (SNAP).''
DATES: To be assured of consideration, comments on this proposed rule
must be received by FNS on or before June 4, 2019.
ADDRESSES: USDA FNS invites interested persons to submit comments on
this proposed rule. Comments may be submitted by one of the following
methods:
Federal e-Rulemaking Portal: This is the preferred method
for comment submission. Go to https://www.regulations.gov and follow the
online instructions for submitting comments.
Mail: Mailed 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 written comments submitted in response to this proposed rule
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: https://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
rulemaking to Vicky Robinson, Chief, Retailer Management and Issuance
Branch, Retailer Policy and Management Division, at USDA FNS, 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:
Background: Final Rulemaking Action Establishing SNAP Criterion A
In order to be eligible to participate in SNAP, a store must meet
either Criterion A (staple food stock) or Criterion B (staple food
sales). These requirements were formalized by the final rule titled
``Food Stamp Program: Revisions to the Retail Food Store Definition and
Program Authorization Guidance'' which was published on January 12,
2001 (66 FR 2795). This 2001 final rule implemented changes required by
the Food Stamp Program Improvements Act of 1994.
Under this 2001 final rule, Criterion A eligibility was established
to require that certain stores carry at least three (3) varieties of
staple foods in each of the four (4) staple food categories as well as
at least one (1) perishable variety in at least two (2) staple food
categories. The staple food categories are: Meat, poultry, or fish;
dairy products; bread or cereals; and vegetables or fruits. This 2001
final rule defined the term ``variety'', as used with respect to SNAP
Criterion A, at 7 CFR 278.1(b)(1)(ii)(C).
This definition of ``variety'' was further clarified by Agency
guidance in the Benefits Redemption Division Policy Memorandum 01-04,
titled, ``Implementation of Final Retail Store Eligibility Rule'' which
was issued on August 14, 2001. This 2001 memorandum states that:
``Examples of unacceptable varieties includes tomato juice, fresh
tomatoes and canned stewed tomatoes in the vegetables or fruits
category.''
Since the establishment of SNAP Criterion A, Agency policy has not
considered multiple formats of a product (e.g., raw chicken, canned
chicken, and frozen chicken) to constitute discrete staple food
varieties. Variety has been traditionally defined by the Agency based
on the essential composition of the food product (i.e., main
ingredient), especially in the meat, poultry, or fish and vegetables or
fruits staple food categories. Main ingredient has generally been
determined by a product's first listed ingredient in the ingredients
list on the product's Nutrition Facts label, as ingredients on the
label are required to be listed from highest to lowest quantity by
weight. For example, a can of tomato soup with a first listed
ingredient of ``tomatoes'' in its ingredients list has a main
ingredient of tomatoes, as that is the ingredient which occurs in the
highest quantity in the soup, by weight; such a product has
historically been considered a ``tomato'' variety in the vegetables or
fruits staple food category. In the dairy products and
[[Page 13556]]
bread or cereals staple food category, most staple foods share the same
main ingredients (e.g., cow milk for dairy and wheat for bread or
cereals); therefore, product kind (e.g., yogurt for dairy and bagels
for bread or cereals) is used to define variety in conjunction with
main ingredient. When determining variety in these two categories, FNS
first considers main ingredient and then product kind. For example, a
package of butter has a main ingredient of ``cow milk'' and is
therefore a dairy product. However, FNS classifies this product as a
``cow milk-based butter'' staple food variety according to its
identifiable product kind (butter). Products that share the same
primary component (e.g., sliced turkey and ground turkey--turkey) and
very similar kinds of products (e.g., McIntosh apples and Empire
apples--apples; mozzarella cheese and cheddar cheese--cheeses) were not
generally considered to represent discrete varieties in their
respective staple food categories under the 2001 final rule. Main
ingredient and product kind have, therefore, been recognized in Agency
policy as the primary determinants of variety since the implementation
of the 2001 final rule.
Background: Proposed Rulemaking Action Modifying SNAP Criterion A
FNS proposed to modify Criterion A eligibility requirements in a
Notice of Proposed Rulemaking (NPRM) titled ``Enhancing Retailer
Standards in the SNAP'' which was published on February 17, 2016 (81 FR
8015). This 2016 NPRM sought to implement changes required by the 2014
Farm Bill and codify discretionary provisions under existing authority
in the Food and Nutrition Act.
Breadth of Stock
The ``Definition of `Retail Food Store'--Breadth of Stock''
provision of the 2016 NPRM proposed to increase the number of varieties
required in each staple food category from three (3) to seven (7) and
to increase the number of categories required to contain at least one
(1) variety of perishable staple foods from two (2) to three (3). These
increases were statutorily mandated by the 2014 Farm Bill, and were
supported by a majority of commenters.
Definition of ``Variety''
The ``Definition of `Staple Food'--Acceptable Varieties in the Four
Staple Food Categories'' provision of the 2016 NPRM proposed to further
clarify existing language at 7 CFR 278.1(b)(1)(ii)(C) that defines
``variety'' for the purposes of SNAP Criterion A eligibility by adding
additional examples of food items considered to be acceptable staple
food varieties. After the publication of the 2016 NPRM, FNS received a
high volume of questions and interest from a wide range of
stakeholders. Some of these questions centered on the definition of
``variety'' and inquired about other food items considered to be staple
food varieties. On April 5, 2016, FNS published a clarification of the
proposed rule and 30-day extension of the comment period at 81 FR
19500. In this 2016 clarification and extension, FNS indicated a
specific interest in public feedback on the subject of the definition
of ``variety'', stating that: ``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.''
Of the total 1,260 germane and non-duplicative public comments
received on both the 2016 NPRM and the subsequent clarification, 168
comments, or approximately 13% of all public comments, specifically
addressed this provision. About 16% of total retailer commenters
specifically opposed this provision. Food industry groups largely
opposed this provision and other commenter types, such as advocacy,
medical, and governmental entities, were generally divided and/or
expressed mixed opinions. Of those that opposed the provision, some
indicated that small format stores would struggle to reach seven (7)
varieties in the meat, poultry, or fish and dairy products staple food
categories and such commenters suggested increasing flexibility for
stores in these categories. Such commenters suggested including plant-
based proteins in the meat, poultry, or fish staple food category and
plant-based dairy alternatives in the dairy products staple food
category.
Background: Final Rulemaking Action Modifying SNAP Criterion A
After carefully considering the public comments that were received,
FNS published the final rule titled ``Enhancing Retailer Standards in
the SNAP'' on December 15, 2016 (81 FR 90675). The ``Definition of
`Retail Food Store'--Breadth of Stock'' provision was published in this
2016 final rule as proposed as this was a change mandated by the 2014
Farm Bill.
The ``Definition of `Staple Food'--Acceptable Varieties in the Four
Staple Food Categories'' provision, however, was published with
substantial modifications in the 2016 final rule. These modifications
were made in response to public feedback received and were intended to
provide retail food stores with a greater degree of flexibility in
reaching the new breadth of stock required of certain retailers under
SNAP Criterion A, especially in the meat, poultry, or fish and dairy
products staple food categories.
Commenters who responded adversely to the definition of ``variety''
as it appeared in the 2016 NPRM generally focused on the difficulties
small format retailers would have in reaching seven (7) varieties in
the meat, poultry or fish and the dairy products staple food category.
This concern was born out by the Agency's final Regulatory Flexibility
Analysis which analyzed data from a nationally-representative sample of
1,392 SNAP authorized small format retail food stores and indicated
that about 93% of currently SNAP authorized small stores already
stocked enough varieties of vegetables or fruits and about 78% of these
stores already stocked enough bread or cereals, while only about 46% of
these stores already stocked enough meat, poultry, or fish and only
about 27% of these stores already stocked enough dairy products. For
this reason, FNS focused on providing more flexibility in the latter
two staple food categories through the inclusion of plant-based protein
sources in the meat, poultry, or fish staple food category, and the
inclusion of plant-based dairy alternatives as well as additional dairy
flexibilities in the dairy products staple food category.
Plant-Based Protein Sources
The 2016 final rule allowed for the counting of plant-based protein
sources as varieties in the meat, poultry, or fish staple food
category. Specifically, this meant that beans, peas, and nuts/seeds
could each individually be counted once in either the vegetables or
fruits staple food category, or once in the meat, poultry, or fish
staple food category. In addition, plant-based meat analogues, such as
tofu and seitan, were added to the meat, poultry, or fish staple food
category. These changes were made, consistent with USDA's MyPlate
nutrition guidelines, to allow retailers more flexibility in stocking a
sufficient number of varieties in the meat, poultry, or fish staple
food category, and to help to ensure that SNAP households would have
access to an array of healthy food options that meet diverse dietary
needs and preferences. FNS is not proposing to modify or affect this
change in this proposed rule and it will remain in place as it appeared
in the 2016 final rule.
[[Page 13557]]
Plant-Based Dairy Alternatives
The 2016 final rule allowed for the counting of plant-based dairy
alternatives as varieties in the dairy products staple food category.
Specifically this meant that plant-based dairy products would be
considered a variety in the dairy products staple food category based
on their main ingredient and the traditional dairy product for which
they are a substitute. So, for example, soy-based milk substitute,
almond-based milk substitute, rice-based milk substitute, soy-based
cheese substitute, almond-based cheese substitute, rice-based cheese
substitute, soy-based yogurt substitute, almond-based yogurt
substitute, and rice-based yogurt substitute would each be considered a
discrete variety in the dairy products staple food category under the
2016 final rule. Though these items are plant-based, they are
recognized as dairy equivalents and, therefore, would not count as
varieties in the remaining staple food categories under the 2016 final
rule. These changes were made in keeping with USDA's MyPlate nutrition
guidelines, to allow retailers more flexibility in stocking a
sufficient number of varieties in the dairy products category, and to
help to ensure that SNAP households will have access to an array of
healthy food options that meet diverse dietary needs and preferences.
FNS is not proposing to modify or affect this change in this proposed
rule and it will remain in place as it appeared in the 2016 final rule.
Additional Dairy Flexibilities
The 2016 final rule modified existing Agency policy to subdivide
certain traditional, cow milk-based dairy varieties into more than one
variety. For example, under the 2001 final rule, cheese was considered
one variety while under the 2016 final rule, cow milk-based soft cheese
and cow milk-based firm/hard cheese each were considered discrete
varieties. Additionally, under the 2016 final rule, shelf-stable liquid
cow milk (e.g., evaporated or condensed milk), perishable liquid cow
milk, and shelf-stable powdered cow milk would each be considered
discrete varieties in the dairy products staple food category. Finally,
under the 2016 final rule, cow milk-based yogurt and cow milk-based
kefir (a yogurt drink) would each be considered discrete varieties in
the dairy products staple food category. These changes were made in
order to allow retailers more flexibility in stocking a sufficient
number of traditional varieties in the dairy products category. This
proposed rule would modify these changes, as discussed later in this
document, in order to provide further flexibility in the dairy products
staple food category.
Sufficient Breadth of Stock Under the 2016 Final Rule
Included below are two (2) tables that demonstrate completely
different ways a retail food store could reach the required seven (7)
varieties in each of the four staple food categories using the
definition of ``variety'' as it appeared in the 2016 final rule. These
are just examples of two (2) combinations that would satisfy the
requirements in the 2016 final rule. These charts do not include all of
the acceptable varieties or possible combinations of varieties.
Additional examples of acceptable varieties in the four staple food
categories are available in the ``List of Examples'' section of the
2016 final rule.
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Meat, poultry, or fish Dairy products Vegetables or fruits Bread or cereals
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1. nuts/seeds........................ 1. liquid, perishable 1. apples.............. 1. wheat-based
cow milk. tortillas.
2. chicken........................... 2. cow milk-based 2. oranges............. 2. wheat-based pitas.
yogurt.
3. tuna fish......................... 3. soy-based milk 3. plums............... 3. corn-based cold
substitute. breakfast cereal.
4. beef.............................. 4. cow milk-based 4. peaches............. 4. rice.
infant formula.
5. eggs.............................. 5. cow milk-based hard 5. lettuce............. 5. oats-based hot
cheese. breakfast cereal.
6. catfish........................... 6. powdered, shelf- 6. celery.............. 6. wheat-based bread.
stable cow milk.
7. beans............................. 7. cow milk-based soft 7. pumpkin............. 7. wheat-based buns/
cheese. rolls.
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Meat, poultry, or fish Dairy products Vegetables or fruits Bread or cereals
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1. salmon............................ 1. cow milk-based 1. tomatoes............ 1. wheat-based flour.
butter.
2. turkey............................ 2. oil-based butter 2. bananas............. 2. wheat-based baking
substitute. mixes.
3. sardines.......................... 3. cow milk-based sour 3. grapes.............. 3. rye-based bread.
cream.
4. pork.............................. 4. rice-based milk 4. onions.............. 4. rice-based pasta.
substitute.
5. clams............................. 5. liquid, shelf-stable 5. pineapple........... 5. wheat-based bagels.
cow milk.
6. peas.............................. 6. cow milk-based kefir 6. cucumbers........... 6. rice-based infant
cereal.
7. tilapia........................... 7. soy-based infant 7. carrots............. 7. wheat-based English
formula. muffins.
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Proposed Changes to the Definition of ``Variety''
On May 5, 2017, the Consolidated Appropriations Act of 2017 was
signed into law. Sec. 765 of the Consolidated Appropriations Acts of
2017 and thereafter the Consolidated Appropriations Act of 2018,
prohibit the USDA from implementing the ``Definition of `Staple Food'--
Acceptable Varieties in the Four Staple Food Categories'' provision (7
CFR 271.2 and 7 CFR 278.1(b)(1)(ii)(C)) and the ``Definition of `Retail
Food Store'--Breadth of Stock'' provision (7 CFR 271.2 and 7 CFR
278.1(b)(1)(ii)(A)) of the 2016 final rule until the USDA promulgates
regulatory amendments that modify the ``Definition of `Staple Food'--
Acceptable Varieties in the Four Staple Food Categories'' provision of
the 2016 final rule. Such regulatory amendments, moreover, must
increase the number of items that qualify as acceptable varieties in
each staple food category.
Using existing authority in the Food and Nutrition Act of 2008, as
amended, FNS proposes to make changes to regulations at 7 CFR 271.2 and
7 CFR 278.1(b)(1)(ii)(C) to modify the definition of the term
``variety'' as it pertains to the stocking requirements for certain
SNAP authorized retail food stores in order to increase the number of
items that qualify as acceptable varieties in the four staple food
categories, especially in the meat, poultry or fish, dairy, and breads
or
[[Page 13558]]
cereals staple food categories. These changes would provide retailers
with more flexibility in meeting the enhanced SNAP eligibility
requirements and meet the requirements expressed in the Consolidated
Appropriations Acts of 2017 and 2018.
Together the changes proposed below add five (5) or more
additional, discrete varieties in the meat, poultry, or fish, dairy,
and bread or cereals staple food category, and provide five (5) more
illustrative examples in the vegetables or fruits staple food category.
Additionally, the current proposed rule will retain the changes in the
2016 final rule that provided flexibility regarding plant-based protein
sources and plant-based dairy alternatives. Those flexibilities would
remain in place as they appeared in the 2016 final rule. In conjunction
with the twenty (20) discrete varieties identified in the ``List of
Examples'' in the 2016 final rule, the proposed changes to the
definition of ``variety'' would provide stores with a wide range of
options in meeting stocking requirements in all four staple food
categories.
FNS is also proposing to add an official definition of ``variety''
to the General Information and Definitions section of SNAP regulations
found at 7 CFR 271.2 in order to convey that variety is intended to
signify main ingredient or product kind. The inclusion of this
definition codifies existing Agency practice which dictates which food
items are considered to be staple food varieties. FNS considers the
inclusion of this definition to be paramount to a clear understanding
of the term ``variety'' in the context of SNAP retailer eligibility and
the proposed changes in this rulemaking. This proposed rule would not
modify any other provisions or components of the 2016 final rule.
Proposed changes made to the definition of ``variety'' are expected
to have significant effects upon the SNAP retailer authorization
process. Below are the strategies FNS is proposing to modify the
definition of ``variety'' and provide retail food stores with more
flexibility. FNS welcomes comments that specifically address these
proposed changes as well as comments that offer other possible
strategies for providing retailers with more flexibility while ensuring
SNAP recipients have access to a range of healthful options at SNAP
authorized retail food stores. FNS encourages commenters to include
comments discussing the practicality and rationality of any suggested
changes, as well as the nutritional and industry impact of these
changes.
I. Flexibility for Perishable and Shelf-Stable Meat, Poultry, and Fish
Products
Under the 2016 final rule, ``variety'' was generally defined by
product kind or main ingredient in the meat, poultry, or fish staple
food category. This meant that chicken, pork, and beef were each
considered discrete varieties. This also meant that, under the 2016
final rule, canned chicken and frozen chicken were not each considered
discrete varieties. The Department is proposing a change with this rule
that would allow any species of meat, poultry, or fish to be counted
once as a discrete variety, if perishable, and once as a discrete
variety, if shelf-stable.
Per SNAP regulations at 7 CFR 278.1(b)(1)(ii)(B), ``perishable
foods'' are items which are frozen, refrigerated, or fresh staple food
items that would spoil or suffer significant deterioration in quality
within three weeks if stored at room temperature. An example of a
perishable food in the meat, poultry, or fish staple food category is a
raw salmon filet. ``Shelf-stable foods'' are items which are dried,
pickled, smoked, or otherwise preserved, and stored in cans, jars, or
other packaging that do not require refrigeration and would not spoil
or suffer significant deterioration in quality within three weeks if
the packaging remains unopened. An example of a shelf-stable food in
the meat, poultry, or fish staple food category is a tin of sardines
that requires no refrigeration.
To reach the required seven (7) varieties in the meat, poultry, or
fish staple food category under this change, for example, a store could
stock the following:
1. Canned ham (shelf-stable pork)
2. refrigerated bacon (perishable pork)
3. beef jerky (shelf-stable beef)
4. refrigerated deli-sliced roast beef (perishable beef)
5. frozen chicken breasts (perishable chicken)
6. canned chicken (shelf-stable chicken)
7. canned tuna fish (shelf-stable tuna fish)
This is just an illustrative list and not meant to be exhaustive.
This proposed change to the definition of ``variety'' would provide
considerable additional flexibility in the meat, poultry, or fish
staple food category, as this change would effectively double the
number of available varieties in this category, where a staple food is
available in both perishable and non-perishable forms.
II. Additional Flexibilities for Common Cow Milk-Based Dairy Products
A. Cheese
Under the 2016 final rule, one specific traditional dairy product
(cow milk-based cheese) was subdivided into two varieties (i.e., soft
cheese and hard/firm cheese) in order to provide more flexibility for
stores in meeting the required seven (7) varieties in the dairy staple
food category. The Department is proposing a change with this rule that
would further subdivide cow milk-based cheese into four discrete
varieties in the dairy products staple food category. The proposed
subdivision of cow milk-based cheese would include the following four
varieties and would be mirrored for other animal milk-based cheeses
(e.g., goat milk-based cheese):
1. Fresh cow milk-based cheeses (e.g., cream cheese, cottage
cheese, and ricotta cheese) are creamy, spreadable, and perishable
dairy products.
2. Soft and semi-soft cow milk-based cheeses (e.g., mozzarella
cheese, Munster cheese, and brie cheese) are moist, slightly cured, and
perishable dairy products.
3. Hard, firm, semi-hard, or medium-hard cow milk-based cheeses
(e.g., cheddar cheese, Swiss cheese, and Parmesan cheese) are less
moist and more cured dairy products.
4. Cow milk-based cheese products and cow milk-based cheese- or
dairy-based sauces, spreads, or dips (e.g., canned spray cheese sauce,
canned cheese dipping sauce, jarred Alfredo pasta sauce, and American
cheese slices) are processed, often shelf-stable dairy products that
have a dairy main ingredient (e.g., milk or whey).
With this change, a store could stock four discrete varieties of
cow milk-based cheese (fresh cheese, soft cheese, hard cheese, and
cheese product). This change to the definition of ``variety'' would,
therefore, provide an additional two cheese varieties for each type of
animal milk-based cheese in the dairy products staple food category.
B. Milk
Under the 2016 final rule, one specific traditional dairy product
(cow milk) was subdivided into three varieties (perishable cow milk,
liquid shelf-stable cow milk, and powdered cow milk) in order to
provide more flexibility for stores in meeting the required seven (7)
varieties in the dairy staple food category. The Department is
proposing a change with this rule that would further subdivide
traditional dairy milk (cow milk) into four discrete varieties in the
dairy products staple food category. The proposed subdivision of cow
milk
[[Page 13559]]
would include the following four varieties and would be mirrored for
other animal milks (e.g., goat milk):
1. Full-fat cow milks (e.g., whole milk, cream, and half-and-half)
are liquid, perishable cow milk products with 3% or greater fat
content.
2. Fat-reduced cow milks (e.g., 2% milk, 1% milk, skim milk, and
other low-fat and non-fat milks) are liquid, perishable cow milk
products with less than 3% fat content.
3. Liquid shelf-stable cow milks (e.g., long-life milk, evaporated
milk, and condensed milk) are cow milk products that have been
processed and sealed in cans or cartons to render them shelf-stable.
4. Powdered cow milks (e.g., dried milk, whey powder, and casein
powder) are cow milk products that have been processed and dehydrated
to render them shelf-stable.
With this change, a store could stock four discrete varieties of
cow milk products (full-fat cow milk, fat-reduced cow milk, liquid
shelf-stable cow milk, and powdered cow milk). This change to the
definition of ``variety'' would, therefore, provide an additional
variety in the dairy products staple food category for each type of
animal milk in the dairy products staple food category. As noted
earlier, the plant-based dairy alternatives proposed in the 2016 final
rule--such as almond-based and soy-based milk substitutes--would remain
unchanged in this proposed rule, and thus would also provide retailers
with additional stocking options in this category.
C. Yogurt
Under the 2016 final rule one specific traditional dairy product
(cow milk-based yogurt) was subdivided into two varieties (cow milk-
based yogurt and perishable cow milk-based kefir) in order to provide
more flexibility for stores in meeting the required seven (7) varieties
in the dairy staple food category. The Department is proposing a change
with this rule that would replace ``perishable cow milk-based kefir''
with cow milk-based yogurt drinks, to include other general yogurt-
based drinks such as lassi and probiotic cultured milk smoothies. In
addition, the Department is proposing to further subdivide ``cow milk-
based yogurt'' into two distinct varieties and to mirror this
subdivision in other animal milk-based yogurts (e.g., goat milk-based
yogurt). Thus, these proposed changes to the definition of variety
would provide an additional variety in the dairy products staple food
category for each type of animal milk-based yogurt. The proposed
subdivision of cow milk-based yogurt would include the following three
varieties:
1. Cow milk-based yogurt drinks (e.g., lassi, kefir, and probiotic
cultured milk smoothie) are liquid cow milk-based yogurt beverages that
have cultured milk or yogurt as a main ingredient.
2. Full-fat cow milk-based yogurts (e.g., strawberry full-fat
yogurt, vanilla full-fat yogurt, and plain full-fat yogurt) are
fermented semi-solid food products made from cow milk with 3% or
greater fat content.
3. Fat-reduced cow milk-based yogurts (e.g., strawberry low-fat
yogurt, vanilla non-fat yogurt, and plain non-fat yogurt) are fermented
semi-solid food products made from cow milk with less than 3% fat
content.
To reach the required seven (7) varieties in the dairy products
food category under this change, for example, a store could stock the
following:
1. 2% milk (fat-reduced cow milk)
2. nacho cheese dip (cow milk-based cheese-based sauce)
3. parmesan cheese (cow milk-based hard cheese)
4. evaporated milk (liquid shelf-stable cow milk)
5. peach full-fat yogurt cup (cow milk-based full-fat yogurt)
6. ricotta cheese (cow milk-based fresh cheese)
7. whole milk (full-fat cow milk)
III. Additional Examples of Staple Food Varieties in the Vegetables or
Fruits Staple Food Category
Under the 2016 final rule, FNS generally considered each distinct
vegetable or fruit plant (e.g., lettuce, collard greens, kale, etc.) to
be a discrete staple food variety. As such, twenty (20) examples of
fruits or vegetables, all considered to be acceptable varieties in the
vegetables or fruits staple food category, were provided in the ``List
of Examples'' section. This list was not intended to be comprehensive,
as the number of distinct vegetable and fruit plants is considerable.
Accordingly, the 2016 final rule provided numerous stocking options in
meeting requirements in the vegetables or fruits staple food category,
as evidenced by the 93% of currently authorized small format retailers
who already meet requirements under the definition of variety provided
in the 2016 final rule.
This proposed rule would maintain the definition of variety as
outlined in the 2016 final rule as it pertains to acceptable varieties
in the fruits or vegetables staple food category, with no proposed
changes at this time. In attempting to identify additional, new staple
food varieties in the category, FNS was unable to identify any
additional edible vegetable or fruit which was not already considered
to be a discrete staple food variety under the 2016 final rule.
Further, all attempts to subdivide existing vegetable or fruit staple
food varieties were problematic in that they clearly favored those
vegetables or fruits which are more distinctly divisible.
That said, FNS recognizes that additional guidance on the numerous
stocking options available in this category may be necessary. Thus, in
addition to the further explanation provided above, included below are
an additional five (5) varieties that are also considered acceptable
varieties in the vegetables or fruits staple food category. These five
(5) examples of acceptable varieties did not appear in the 2016 final
rule ``List of Examples'' section:
1. Lemons (e.g., 100% lemon juice and fresh lemons)
2. Beets (e.g., canned beets and fresh beets)
3. Spinach (e.g., fresh spinach and frozen spinach)
4. Cauliflower (e.g., fresh cauliflower and packaged cauliflower rice)
5. Olives (e.g., canned black olives and jarred pimiento stuffed
olives)
IV. Additional Flexibilities for Common Wheat-Based Bread and Cereal
Products
A. Bread
Under the 2016 final rule, the staple food variety ``wheat-based
bread'' was subdivided into five discrete staple food varieties in the
bread or cereals staple food category (wheat-based bread, wheat-based
bagels, wheat-based buns/rolls, wheat-based English muffins, and wheat-
based pitas) in order to provide more flexibility for stores in meeting
the required seven (7) varieties in the bread or cereals staple food
category. The Department is proposing a change with this rule that
would further subdivide the ``wheat-based bread'' staple food variety
by adding the following three discrete staple food varieties in
addition to the five varieties listed above: Wheat-based Indian
flatbread, wheat-based crescent bread, and wheat-based matzah. This
subdivision would be mirrored for other grain-based breads such as
oats-based breads and rice-based breads. Thus, the proposed change to
the definition of ``variety'' would provide three additional staple
food varieties in the bread or cereals products staple food category
for each type of grain-based bread. Under the proposed changes, the
following eight would be considered discrete staple food varieties in
the bread or cereals staple food category:
[[Page 13560]]
1. Wheat-based breads (e.g., loaves of sliced bread and whole
baguettes)
2. Wheat-based pitas (e.g., plain pitas)
3. Wheat-based bagels (e.g., cinnamon raisin bagels and blueberry
bagels)
4. Wheat-based English muffins (e.g., plain English muffins and maple-
infused English muffins)
5. Wheat-based buns/rolls (e.g., hamburger buns and frozen dinner
rolls)
6. Wheat-based Indian flatbreads (e.g., roti and Naan)
7. Wheat-based matzah (e.g., egg matzah and wheat matzah)
8. Wheat-based crescent breads (e.g., plain croissants and
refrigerated, ready-to-bake crescent breads)
B. Flour
Under the 2016 final rule, wheat flour was considered to be a
``general wheat-based product'' staple food variety, such that a bag of
wheat flour and a wheat-based frozen pizza were both considered to be a
``general wheat-based product'' staple food variety in the bread or
cereals staple food category. The Department is proposing a change with
this rule that would add ``wheat-based flour'' as a discrete staple
food variety in the bread or cereals staple food category. This change
would be mirrored for other grain-based flours such as rice-based flour
and cornmeal. Thus, the proposed change to the definition of
``variety'' would, therefore, provide an additional staple food variety
in the bread or cereals products staple food category for each type of
grain-based flour. Under the proposed changes, the following two would
be considered discrete staple food varieties in the bread or cereals
staple food category:
1. General wheat-based product (e.g., a wheat-based frozen pizza and a
wheat-based pre-packaged sandwich)
2. Wheat-based flour (e.g., a bag of wheat flour)
V. Flexibility for 100% Whole Grain Products
Under the 2016 final rule, 100% whole grain products, such as 100%
whole grain rye-based bread, were not considered to be discrete
varieties in the bread or cereals staple food category. This meant that
if a store stocked both wheat-based bagels and 100% whole grain wheat-
based bagels, the store would have only one staple food variety: Wheat-
based bagels. The Department is proposing a change with this rule that
would allow any bread or cereal staple food to be counted once if it is
a 100% whole grain product, and once if less than a 100% whole grain
product. The proposed change to the definition of ``variety'' would
provide considerable additional flexibility in the bread or cereals
staple food category, as this change would effectively double the
number of available varieties in this category, where a staple food is
available in both 100% whole grain and less than 100% whole grain
forms.
To reach the required seven (7) varieties in the bread or cereals
staple food category under the proposed changes, for example, a store
could stock the following:
1. Spaghetti (wheat-based pasta)
2. frozen pre-made burritos (general wheat-based product)
3. wheat flour (wheat-based flour)
4. whole wheat bagels (100% whole grain wheat-based bagels)
5. roti (wheat-based Indian flatbreads)
6. plain croissants (wheat-based crescent breads)
7. cinnamon raisin bagels (wheat-based bagels)
Comments Requested on the Definition of ``Variety''
FNS requests comments that address logical and implementable ways
to modify the definition of ``variety'' so that it provides more
flexibility to stores, while also ensuring that SNAP recipients are
assured access to a range of healthful food options.
The word ``variety'' denotes diversity and difference. FNS depends
primarily upon a product's main ingredient or product kind to define
``variety.'' Several other defining elements of food products (brands,
nutrient values, flavorings, packaging types or styles, or package
sizes) are generally excluded from consideration, as they have the
potential to render the term ``variety'' meaningless in effect. For
example, if FNS were to consider different brands and packaging types
as discrete staple food varieties, a store could meet the vegetables or
fruits staple food category requirement with seven (7) kinds of
tomatoes (e.g., Brand A tomato sauce, Brand B tomato sauce, 100% tomato
juice, raw Roma tomato, raw beefsteak tomato, canned tomato paste, and
sundried tomatoes). Such a result would seem to run counter to the
purpose of Criterion A, namely ensuring that SNAP authorized retail
food stores offer for sale to SNAP recipients a range of different food
products in all four staple food categories.
That said, some of the changes to the definition of ``variety''
already discussed in this proposed rule consider nutrient values and
packaging styles in a limited fashion, especially in the meat, poultry,
or fish and dairy products staple food categories. In providing these
additional flexibilities, FNS acknowledges these were the two (2) main
categories in which small format retailers were likely to experience
stocking challenges under the 2016 final rule. Nevertheless, FNS
welcomes comments that address feasible ways to modify the definition
of ``variety'' in each staple food category to provide more flexibility
to stores.
Procedural Matters
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health, and safety effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the importance of quantifying both
cost and benefits, reducing cost, harmonizing rules, and promoting
flexibility. This proposed rule has been determined to be significant
and was reviewed by the Office of Management and Budget. The Regulatory
Impact Analysis (RIA) for this rulemaking was published as part of the
docket in Supporting Documents on www.regulations.gov. A summary of the
RIA follows.
Regulatory Impact Analysis
Need for Action
The proposed rule is in response to Sec. 765 of the Consolidated
Appropriations Act of 2017 and Sec. 728 of the Consolidated
Appropriations Act of 2018, which prohibit USDA from implementing two
retailer stocking provisions (``Breadth of Stock'' and ``Definition of
`Variety''') of the final rule, ``Enhancing Retailer Standards in the
Supplemental Nutrition Assistance Program (SNAP)'' (the 2016 final
rule), until such a time as regulatory modifications to the definition
of ``variety'' are made that would increase the number of food items
considered to be staple food varieties for purposes of SNAP retailer
eligibility. The proposed rulemaking would modify the definition of
``variety'' in order to align SNAP regulations with the requirements
expressed in the Consolidated Appropriations Acts of 2017 and 2018,
thus allowing FNS to move forward with implementation of the ``Breadth
of Stock'' requirements of the final rule, which were mandated by the
Agricultural Act of 2014.
[[Page 13561]]
Benefits
This rulemaking would provide regulatory flexibility to 187,000
smaller authorized retailers (e.g. convenience stores, small grocery
stores, combination stores, etc.) in meeting the enhanced stocking
requirements of the 2016 final rule. As discussed below, the proposed
changes would require the average small store to add six (6) fewer
items to their stock in order to meet the new stocking requirements of
the 2016 final rule, providing a savings of $16.1 million to retailers
in fiscal year (FY) 2018 and approximately $22.5 million over five
years, FY 2018 through FY 2022, relative to the costs of the 2016 final
rule.
Costs
The proposed rule is not expected to impact costs to the Federal
government. While FNS anticipates that the need to conduct store visits
to verify that stores are compliant with the new requirements, those
costs were fully captured in the 2016 final rule analysis.
Regulatory Flexibility Act
This proposed rule has been reviewed with regard to the
requirements of the Regulatory Flexibility Act of 1980 (5 U.S.C. 601-
612). Pursuant to that review, FNS believes that the rulemaking would
not present a significant impact to a substantial number of small
businesses. It provides greater regulatory flexibility to SNAP
retailers, particularly small entities, in meeting the enhanced
stocking requirements of the 2016 final rule, ``Enhancing Retailer
Standards in the Supplemental Nutrition Assistance Program (SNAP).''
FNS estimates average costs to those small businesses for meeting
enhanced stocking requirements, would be $86 less per store in the
first year and $120 less over five years, for a decreased average cost
of $160 per store in the first year and $500 over five years. However,
FNS has prepared this Regulatory Flexibility Analysis to provide the
opportunity for comment and input from the public. The complete
Regulatory Flexibility Analysis for this rule was published as part of
the docket in Supporting Documents on www.regulations.gov.
Unfunded Mandate Reform Act
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public
Law 104-4, 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
Agency 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 Agency 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 proposed rule contains no Federal mandates (under the
regulatory provisions 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. This rulemaking is, therefore, not subject to the
requirements of Sections 202 and 205 of the UMRA.
Executive Order 12372
Executive Order 12372 requires Federal agencies to engage in
intergovernmental consultation with State and local officials when
involved in Federal financial assistance programs and direct Federal
development. SNAP is listed in the Catalog of Federal Domestic
Assistance under No. 10.551. For the reasons set forth in this proposed
rule, Department of Agriculture Programs and Activities Excluded from
Executive Order 12372 (48 FR 29115, June 24, 1983), this Program is
excluded from the scope of Executive Order 12372.
Federalism Summary Impact Statement
Executive Order 13132 requires Federal agencies to consider the
impact of their regulatory actions on State and local governments.
Where such actions have federalism implications, agencies are directed
to provide a statement for inclusion in the preamble to the regulations
describing the agencies' considerations in terms of the three
categories called for under Section 6(b)(2)(B) of the Executive Order
13132. FNS has determined that this proposed rulemaking does not have
federalism implications. Therefore, under Section 6(b) of the Executive
Order, a federalism summary impact statement is not required.
Executive Order 13771
This proposed rule is expected to be an Executive Order 13771
deregulatory action that seeks to ease the staple food stocking
requirements for SNAP authorized retailers. In particular, the proposed
changes would aid small format retailers in meeting the enhanced
stocking requirements of the 2016 final rule, ``Enhancing Retailer
Standards in the Supplemental Nutrition Assistance Program (SNAP),'' by
expanding the definition of ``variety'' in the four staple food
categories. These changes would provide retailers with additional
options of acceptable staple food varieties in each of the four staple
food categories, which will aid them in meeting the enhanced SNAP
retailer eligibility requirements of Criterion A and save them an
average of $86 in meeting stocking requirements.
Executive Order 12988, Civil Justice Reform
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is intended to have preemptive effects
with respect to any State or local laws, regulations, or policies that
conflict with its provisions or that would otherwise impede its full
implementation. This rule is not intended to have retroactive effects.
Prior to any judicial challenge to the provisions of the final rule or
the application of its provisions, all applicable administrative
procedures must be exhausted.
Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' Executive Order 13175 requires Federal agencies
to consult and coordinate with tribes on a government-to-government
basis on policies that have tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have substantial direct effects on one or
more Indian tribes, on the relationship between the Federal Government
and Indian tribes or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.
FNS has assessed the impact of this rule on Indian tribes and
determined that this rule does not, to our knowledge, have tribal
implications that require tribal consultation under E.O. 13175. If a
Tribe requests consultation, the FNS will work with the Office of
Tribal Relations to ensure meaningful consultation is provided where
changes, additions and modifications identified herein are not
expressly mandated by Congress.
It should be noted that, currently, FNS provides regularly
scheduled quarterly information sessions as a venue for collaborative
conversations with Tribal officials or their designees. Reports from
these information sessions are part of the USDA annual reporting
[[Page 13562]]
on Tribal consultation and collaboration.
Civil Rights Impact Analysis
FNS has reviewed this proposed rule in accordance with Departmental
Regulations 4300-4, ``Civil Rights Impact Analysis'' and 1512-1,
``Regulatory Decision Making Requirements'' to identify and address any
major civil rights impacts the proposed rule might have on minorities,
women, persons with disabilities, or other protected classes. FNS has
determined that this proposed rule will not have an adverse impact on
any retail food store owners or SNAP recipients belonging to protected
classes. The regulation only concerns those retail food stores
participating in SNAP that would not meet the increased staple food
stocking requirements necessary for SNAP authorization that were
mandated by the 2014 Farm Bill and codified in the 2016 final rule,
``Enhancing Retailer Standards in the Supplemental Nutrition Assistance
Program (SNAP).'' The proposed regulatory changes would aid those
retail stores, which are primarily small format retailers, in meeting
the enhanced stocking requirements of the 2016 final rule. This
proposed rule would not change any requirements related to the
eligibility or participation of protected classes or individuals,
minority owned or operated business entities, or woman owned or
operated business entities in SNAP. As a result, this rulemaking would
have no differential impact on protected classes of individuals,
minority owned or operated business entities, or woman owned or
operated business entities. Relatedly, FNS does not collect data from
retail food stores regarding any of the protected classes under Title
VI of the Civil Rights Act of 1964, and FNS specifically prohibits
retailers that participate in SNAP to engage in actions that
discriminate based on race, color, national origin, sex, age,
disability, religion or political belief.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; see 5 CFR
part 1320) requires that the Office of Management and Budget (OMB)
approve all collections of information by a Federal agency from the
public before they can be implemented. Respondents are not required to
respond to any collection of information unless it displays a current
valid OMB control number. There is no information collection burden
associated with this proposed rule.
E-Government Act Compliance
FNS is committed to complying with the E-Government Act of 2002,
Public Law 107-347, to promote the use of the internet and other
information technologies to provide increased opportunities for citizen
access to government information and services, and for other purposes.
FNS intends to provide Program stakeholders with guidance and technical
assistance materials related to this proposed rule using online media.
List of Subjects
7 CFR Part 271
Food stamps, Grant programs--Social programs, Reporting and
recordkeeping requirements.
7 CFR Part 278
Banks, banking, Food stamps, Grant programs--social programs,
Penalties, Reporting and recordkeeping requirements, Surety bonds.
Accordingly, 7 CFR parts 271 and 278 are proposed to be amended as
follows:
0
1. The authority citation for parts 271 and 278 continue to read as
follows:
Authority: 7 U.S.C. 2011-2036.
PART 271--GENERAL INFORMATION AND DEFINITIONS
0
2. In Sec. 271.2, add a definition for Variety in alphabetical order
to read as follows:
Sec. 271.2 Definitions.
* * * * *
Variety, in evaluating a firm's stock of staple foods for purposes
of determining eligibility to participate in SNAP, means foods that
differ from each other by distinct main ingredient or product kind as
determined by the Secretary. See 7 CFR 278.1(b)(1)(ii)(C).
* * * * *
PART 278--PARTICIPATION OF RETAIL FOOD STORES, WHOLESALE FOOD
CONCERNS AND INSURED FINANCIAL INSTITUTIONS
0
3. Revise Sec. 278.1(b)(1)(ii)(C) to read as follows:
Sec. 278.1 Approval of retail food stores and wholesale food
concerns.
* * * * *
(b) * * *
(1) * * *
(ii) * * *
(C)(1) Offer a variety of staple foods within each staple food
category that differ from each other by distinct main ingredient or
product kind. For example: Apples, cabbage, tomatoes, bananas,
pumpkins, broccoli, and grapes in the vegetables or fruits category; or
fat-reduced cow milk, almond-based milk substitute, soy-based yogurt
substitute, soft goat milk-based cheese, cow milk-based butter, cow
milk-based sour cream, and cow milk-based full-fat yogurt in the dairy
products category; or rice, wheat-based bagels, 100% whole grain wheat-
based bagels, wheat-based pitas, rye-based bread, rice-based pasta,
oatmeal, and wheat-based matzah in the bread or cereals category; or
shelf-stable chicken, beans, nuts/seeds, perishable beef, perishable
pork, chicken eggs, and perishable chicken in the meat, poultry, or
fish category.
(2) Variety of foods is not to be interpreted as different brands,
nutrient values (e.g., low sodium and lite), flavorings (e.g., vanilla
and chocolate), packaging types or styles (e.g. boxed and bagged, or
fresh and frozen), meat cuts, product shapes, textures, or package
sizes of the same or similar foods except where explicitly specified in
Agency guidance. Similar food items such as, but not limited to,
tomatoes and tomato juice, brown rice and white rice, 1% milk and skim
milk, perishable ground beef and perishable beefsteak, or different
types of apples (e.g., Empire, Jonagold, and McIntosh), shall count as
depth of stock but shall not each be counted as more than one staple
food variety for the purpose of determining the number of varieties in
any staple food category except where explicitly specified in Agency
guidance. Accessory foods shall not be counted as staple foods for
purposes of determining eligibility to participate in SNAP as a retail
food store.
* * * * *
Dated: March 28, 2019.
Brandon Lipps,
Acting Deputy Under Secretary, Food, Nutrition, and Consumer Services.
[FR Doc. 2019-06597 Filed 4-4-19; 8:45 am]
BILLING CODE 3410-30-P