WASHINGTON – The Department of Agriculture (USDA) has sent to the White House for review a proposed rule that would impose additional obligations on retailers that redeem Supplemental Nutrition Assistance Program (SNAP) benefits. This is generally the final stage of the regulatory process before a rule is formally published. USDA’s proposed rule will likely be published later this summer, at which time stakeholders will have the opportunity to provide comments to USDA before the agency issues a final rule. That final ruling is not likely to occur until late 2015 or 2016.

Under the Farm Bill that was passed in early 2014, SNAP retailers will be required to stock at least seven different “varieties” of food items in each of the four “staple food” categories on a continuous basis. The Farm Bill also requires SNAP retailers to stock at least one “perishable” food item in at least three of the four staple food categories.  USDA’s rule will formally adopt these requirements into law. It is unclear whether the proposed rule will contain additional requirements for SNAP retailers. Until the rule is finalized, however, retailers will not be subject to the Farm Bill’s augmented SNAP retailer standards.

The Farm Bill also contained provisions requiring retailers to implement point-of-sale technology systems that will (i) not redeem SNAP benefits for the purchase of ineligible items and (ii) further preclude cashiers from manually overriding this prohibition.  USDA will implement this provision in a separate rulemaking at a later date.