[Federal Register Volume 60, Number 183 (Thursday, September 21, 1995)]
[Rules and Regulations]
[Pages 48865-48870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23404]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 60, No. 183 / Thursday, September 21, 1995 / 
Rules and Regulations

[[Page 48865]]


DEPARTMENT OF AGRICULTURE

Food and Consumer Service

7 CFR Parts 271, 272, and 273

[Amendment No. 370]


Food Stamp Program: Student Eligibility

AGENCY: Food and Consumer Service, USDA.

ACTION: Final rule.

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SUMMARY: On November 1, 1993, the Department published a proposed rule 
regarding the eligibility of students for the Food Stamp Program and 
the treatment of educational and training assistance for food stamp 
purposes. Public comments were solicited and considered. This rule 
finalizes the student eligibility provisions with the changes specified 
herein and makes a technical change to the resource section. The 
provisions regarding the handling of educational and training 
assistance will be finalized in a separate rule.

DATES: Sections 273.5 (b)(1), (b)(4), and (b)(9) are effective February 
1, 1992. The introductory paragraph of Sec. 273.5(b)(6) is effective 
February 1, 1992. The introductory paragraph of Sec. 273.5(b)(10) is 
effective February 1, 1992. Sections 273.5(b)(11)(ii), (b)(11)(iii), 
and (b)(11)(iv) are effective February 1, 1992.
    Sections 273.5 (b)(6)(i) and (b)(6)(ii) and sections 273.5 
(b)(10)(i) and (b)(10)(ii) and the remaining provisions of this 
regulation are effective November 1, 1995 and must be implemented no 
later than February 1, 1996.

FOR FURTHER INFORMATION CONTACT: Judith M. Seymour, Chief, 
Certification Policy Branch, Program Development Division, Food Stamp 
Program, Food and Consumer Service, USDA, 3101 Park Center Drive, 
Alexandria, Virginia 22302; Telephone: (703) 305-2520.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be significant and was reviewed by 
the Office of Management and Budget under Executive Order 12866.

Executive Order 12372

    The Food Stamp Program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.551. For the reasons set forth in the Final 
rule in 7 CFR part 3015, subpart V and related Notice (48 FR 29115, 
June 24, 1983), this Program is excluded from the scope of Executive 
Order 12372 which requires intergovernmental consultation with State 
and local officials.

Regulatory Flexibility Act

    This action has been reviewed with regard to the requirements of 
the Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612). The 
Administrator of the Food and Consumer Service has certified that this 
action does not have a significant economic impact on a substantial 
number of small entities. State welfare agencies are affected to the 
extent that they must implement the provisions described in this 
action. Households are affected to the extent that some currently 
ineligible students will become eligible for program benefits.

Executive Order 12778

    This proposed rulemaking has been reviewed under Executive Order 
12778, Civil Justice Reform. This rule is intended to have preemptive 
effect with respect to any State or local laws, regulations or policies 
which conflict with its provisions or which would otherwise impede its 
full implementation. This is not intended to have retroactive effective 
dates unless so specified in the Dates section of this preamble. Prior 
to any judicial challenge to the provisions of this rule or the 
application of its provisions all applicable administrative procedures 
must be exhausted. In the Food Stamp Program the administrative 
procedures are as follows: (1) For program benefit recipients--state 
administrative procedures issued pursuant to 7 U.S.C. 2020(e)(1)) and 7 
CFR 273.15; (2) for State agencies--administrative procedures issued 
pursuant to 7 U.S.C. 2023 set out at 7 CFR 276.7 (for rules related to 
nonquality control (QC) liabilities) or part 284 (for rules related to 
QC liabilities); (3) for program retailers and wholesalers-- 
administrative procedures issued pursuant to 7 U.S.C. 2023 set out at 7 
CFR 278.8.

Paperwork Reduction Act

    Pursuant to 7 CFR 273.2(f), State welfare agencies must verify 
certain information which affects household eligibility and benefits. 
Applicant households are required to provide the necessary information 
to the State agency. The reporting and recordkeeping burden associated 
with the application, certification, and continued eligibility of food 
stamp applicants has been approved by the Office of Management and 
Budget under OMB No. 0584-0064. OMB approval includes the burden 
associated with verification of information provided on the food stamp 
application. OMB approval of the verification requirements in 
Sec. 273.2(f)(xi) of this rule is not necessary because the statements 
do not add new or additional verification responsibilities on State 
agencies, but simply relocate existing verification requirements from 
Sec. 273.5(a).

Background

    On November 1, 1993, the Department proposed procedures to 
implement amendments to the Food Stamp Act of 1977, as amended (7 
U.S.C. 2011 et seq.), as set forth in sections 1715 and 1727 of the 
Food, Agriculture, Conservation, and Trade Act of 1990, Public Law 101-
624, enacted November 28, 1990, and section 903 of Title IX of the 
Food, Agriculture, Conservation, and Trade Act Amendments of 1991, 
Public Law 102-237, enacted December 13, 1991. section 1715 of Public 
Law 101-624, as amended by Section 903 of Public Law 102-237, 
established procedures for determining an income exclusion for certain 
educational and training assistance received by eligible students. 
Section 1727 of Public Law 101-624 amended the Food Stamp Act to grant 
eligibility for participation in the Food Stamp Program (``Program'') 
to certain students currently considered ineligible to participate.
    Procedures were also proposed for implementing amendments to the 
Higher Education Act of 1965 as set forth in sections 471 and 1345 of 
the Higher Education Amendments of 1992, 

[[Page 48866]]
Public Law 102-325, enacted July 23, 1992. Those sections prohibit 
certain Federal educational assistance from being considered as income 
and resources for food stamp purposes.
    Lastly, procedures were proposed for implementing a provision of 
the Carl D. Perkins Vocational and Applied Technology Education Act 
Amendments of 1990, Pub. L. 101-392, enacted September 25, 1990, which 
prohibits counting certain educational assistance received by students 
from a program funded by the Perkins Act as income or resources when 
determining the eligibility and benefits of households containing 
students.
    The Department accepted comments on this rulemaking through January 
2, 1994. Comments were received from eight State agencies, one public 
interest group, and one advocate.
    The proposed rule contained provisions on both student eligibility 
and the treatment of educational and training assistance. This rule 
finalizes only the provisions concerning student eligibility. The 
comments pertaining to the student eligibility provisions are discussed 
below. The provisions regarding the treatment of educational and 
training assistance contain issues which are, as yet, unresolved, and 
the Department has decided to finalize those provisions in a separate 
rulemaking so as not to further delay publication of the student 
eligibility provisions.
    A full explanation of the rule was contained in the preamble of the 
proposed rule published November 1, 1993 (``November 1 rule'') (58 FR 
58463). The reader should refer to the preamble of that rule for a full 
understanding of the provisions of this final rule.
    In the proposed rule under Supplementary Information, Executive 
Order 12778, the Department stated that prior to any judicial challenge 
to the provisions of this rule or the application of its provisions all 
applicable administrative procedures must be exhausted. One commenter 
said that administrative procedures do not have to be exhausted before 
judicial challenge and that the Department should correct this 
misstatement and avoid making such statements in future rulemakings. 
While we believe that it would have been fully within the Secretary's 
discretionary authority, as granted in section 4(c) of the Food Stamp 
Act (7 U.S.C. 2013(c)), to establish an exhaustion requirement, this 
matter has now been specifically addressed by statute. Section 212(e) 
of the Federal Crop Insurance Reform and Department of Agriculture 
Reorganization Act of 1994, Public Law 103-354, requires persons to 
exhaust all administrative appeal procedures established by the 
Secretary or required by law before the person may bring an action in a 
court of competent jurisdiction against the Secretary, the Department 
or an agency, office, officer, or employee of the Department.

Institution of Higher Education--Sec. 271.2 and Sec. 273.5(a)

    An institution of higher education is currently defined in 7 CFR 
271.2 of the regulations as any institution which normally requires a 
high school diploma or equivalency certificate for enrollment, 
including, but not limited to, colleges, universities and vocational or 
technical schools at the post-high school level. The November 1 rule 
did not propose to change this definition.
    One commenter requested that the regulations be changed to specify 
that community colleges that do not routinely require high school 
diplomas are not institutions of higher education.
    The Department has become aware that some colleges no longer 
require a high school diploma due to declining enrollment. It is the 
Department's intent that persons enrolled in a regular curriculum at a 
college be considered enrolled in an institution of higher education 
even if a diploma is no longer required. The Department has also become 
aware that some colleges that normally require a high school diploma or 
equivalency certificate may not require them for special programs such 
as courses for English as a second language or for courses which are 
not part of the regular curriculum. The Department does not intend that 
such persons be considered enrolled in an institution of higher 
education. Therefore, the Department has decided to revise the language 
so that a student will be considered enrolled in an institution of 
higher education if the person is enrolled in a regular curriculum at a 
college or university that offers degree programs regardless of whether 
a diploma is required. A college includes a junior, community, two-
year, or four-year college or a university. A person who is attending a 
business, technical, trade, or vocational school that normally requires 
a high school diploma or equivalency certification for enrollment in 
the curriculum would also be considered enrolled in an institution of 
higher education.
    The Department is also taking this opportunity to move the 
provision regarding enrollment in an institution of higher education 
from the definition section to the student eligibility section to 
facilitate a better understanding of the student provisions. 
Accordingly, the Department has removed the definition of an 
institution of higher education from 7 CFR 271.2 and has added a new 
sentence to 7 CFR 273.5(a).

Student Eligibility--Sec. 273.5

Age Limit

    Current regulations provide that students age 60 or over do not 
have to meet one of the student eligibility criteria to qualify for the 
program. In accordance with section 1727 of the Food, Agriculture, 
Conservation, and Trade Act of 1990, the proposed rule lowered the age 
exemption from 60 to 50. Two commenters supported this change. Because 
this is a nondiscretionary change, it is being adopted as proposed at 7 
CFR 273.5(a).
    The Department is taking this opportunity to move the student 
exemptions contained in 7 CFR 273.5(a) to 7 CFR 273.5(b) to consolidate 
them at one place.

On-the-Job Training

    The Department proposed to incorporate current policy that a person 
is exempt from the student ineligibility provisions during the period 
of time the person is being trained by an employer under an on-the-job 
training program. However, during the period of time that the person is 
only attending classes, he or she would be considered a student subject 
to the provisions of 7 CFR 273.5.
    One commenter supported the provision. Another commenter suggested 
that student status should coincide with the period of time educational 
income is prorated. A third commenter said all participants in on-the-
job training should be exempt if their employer requires class 
attendance; alternatively they should be exempt if they are enrolled in 
non-degree programs or for periods too short, e.g., one semester or 
quarter, to obtain a degree.
    There is no basis in the Food Stamp Act for extending the exemption 
to other participants in on-the-job training programs. Therefore, the 
Department is adopting the proposal without change at 7 CFR 273.5(a). A 
student would have to meet one of the other student exemptions to 
qualify when enrolled and only attending classes in an institution of 
higher education at least half time.

Work Study

    The proposed regulations expanded the list of eligible students to 
include students participating in a State (as well as a Federal) work 
study program during the regular school year. 

[[Page 48867]]

    One commenter suggested that any needs-based subsidized employment 
program that a State supports be defined as a work study program.
    Section 6(e) of the Food Stamp Act, as amended, specifically 
provides that the program must be a work study program. Since many 
employment programs do not have a study component, the Department is 
not adopting this suggestion. The Department is adopting the proposal 
without change at 7 CFR 273.5(b)(1)(ii).
    The Department further proposed that a student who was approved for 
work study at the time of application for food stamps, and anticipated 
starting a job within two months after the date of application for food 
stamps, would qualify for this exemption until the student stopped 
working. However, if a student stopped working because work study 
funding had run out, the student would continue to qualify for this 
exemption for no more than two months. The Department specifically 
asked for comments on whether or not the two-month grace periods would 
result in making affluent students eligible.
    Three of the commenters indicated that affluent students would not 
become eligible. One commenter thought that the student should actually 
be participating in work study to be eligible. Another commenter 
supported the provision but suggested that students remain on the 
program when work study runs out for two months or until the end of the 
school term, whichever is later. Five commenters were opposed to the 
two-month provisions--four of them thought the procedures would be too 
administratively complex and error prone. (The following are some 
examples of administrative problems foreseen by commenters. The first 
two-month period would be tied to the date of application whereas 
eligibility for the food stamp program is determined for full months. A 
person could quit work study and reapply for food stamps during the 
two-month period. ``No more than two additional months'' could have 
been interpreted as giving the State agency an option. It may be 
difficult to anticipate when a student will actually begin work. 
Numerous contacts with the institutions could be required to keep track 
of when a student qualifies for the food stamp exemption.) Another 
commenter suggested that student eligibility status based on work study 
should continue through the term over which the work study is prorated. 
The only exception should be for students who refuse to participate in 
a work study assignment. Two commenters advised that most work study is 
approved for a given term or semester and the proposed procedure is 
unfair to students who receive the same amount of work study but whose 
work assignments can be completed in a shorter period of time.
    After carefully reviewing the comments, the Department has decided 
to make some changes to the provisions as proposed. The Department has 
decided to provide an exemption for the school term if a student has 
been approved for work study during the school term and anticipates 
actually working during that time. The student must be approved for 
work study at the time she or he applies for food stamps. The student 
exemption will begin with the month in which the school term begins or 
the month work study is approved, whichever is later. Once begun, the 
exemption will continue until the end of the month in which the school 
term ends, or it becomes known that the student has refused an 
assignment. The Department believes that this will simplify the 
procedure and be in compliance with the Act which requires 
participation in work study during the regular school year. The 
Department has incorporated this change in the final regulations at 7 
CFR 273.5(b)(1)(ii).
    One commenter suggested that anyone accepted for work study by a 
school should be considered participating in a work study program. The 
Department has not adopted this suggestion because students may be 
determined eligible for work study based on need but frequently funding 
or work is not available.
    One commenter suggested that the regulations mandate use of the 
verified amount of work study approved by the school. While this would 
simplify administration of the provision, the Department has not 
adopted this suggestion because the actual anticipated amount may be 
less than the approved amount.
    One commenter asked if a claim would be required if a student 
intended to begin work within two months but does not actually work. 
Another commenter suggested that recoupment be pursued if a student 
refuses to participate in a work study assignment.
    Under the Department's revised procedure, the two-month time frame 
is not an issue, but a student could anticipate work study during the 
school term and it may not materialize. If the work study is 
questionable, the school could be contacted to determine if funding and 
a job will be available. A claim would not be required unless a 
determination is made that the student deliberately gave wrong or 
misleading information.
    One commenter asked if student eligibility based on work study 
would be retained through scheduled breaks and vacations. In accordance 
with the Department's changes to the final regulation, the student work 
study exemption will not continue between terms when there are breaks 
of a full month or longer for which work study has not been approved. 
The exemption only applies to months in which the student is approved 
for work study.

Assigned Students

    The proposed regulation expanded the list of eligible students to 
include students who are assigned to, or placed in, an institution of 
higher education through, or in compliance with, an employment and 
training (E&T) program operated by a State or local government which 
contains components which are at least equivalent to the acceptable 
components of the food stamp E&T program.
    One commenter supported this provision. A second commenter opposed 
requiring standards comparable to food stamp E&T components; stated 
that the Department does not have the authority to and should not 
regulate the content of E&T programs; persons attending community 
colleges should be considered participating in a State or local 
government's E&T program, and E&T programs should not serve exclusively 
food stamp recipients.
    Section 6(e)(3)(D) of the Food Stamp Act, as amended by section 
1727 of the Food, Agriculture, Conservation, and Trade Act of 1990, 
clearly provides the Department with the authority for determining 
which State and local E&T programs are appropriate. All persons 
attending community colleges cannot be considered participating in a 
state or local government's E&T program because attendance at a 
community college does not necessarily indicate participation in an 
employment program. The Department agrees that E&T programs need not 
serve food stamp recipients exclusively in order to qualify, but they 
must be for low-income households. Consequently, the Department is 
revising the final regulations at 7 CFR 273.5(b)(11)(iv) to this 
effect.
    A third commenter on this provision suggested that the Department 
clarify that an appropriate program does not have to have all the 
components, or any combination of components, required in the food 
stamp E&T program and that State agencies should make the general 
equivalency determinations but that 

[[Page 48868]]
students should be permitted to provide evidence of the appropriateness 
of a program.
    The Department agrees that the E&T program should have to meet only 
one of the acceptable food stamp E&T components. Since the guidelines 
for the food stamp E&T components are specified in the regulations, the 
Department also agrees that State agencies may make the equivalency 
determinations. The Department has changed the final regulations at 7 
CFR 273.5(b)(11)(iv) accordingly. The Department does not believe that 
it would be administratively feasible to require eligibility workers to 
make a determination on the appropriateness of a program based on 
information submitted by an individual student.
    One commenter thought that self-placements in connection with any 
of the E&T programs listed should exempt the student. The Department 
agrees that placements that are initiated by a person while the person 
is enrolled in an approved E&T program should be considered to be in 
compliance with the requirements of that program provided that the E&T 
program the person is enrolled in has a component for enrollment in an 
institution of higher education and that program accepts the placement. 
Other self-placements would not qualify. The Department has changed the 
final regulations at 7 CFR 273.5(b)(11) accordingly.
    One commenter thought that participants who voluntarily participate 
in one of the listed E&T programs should be entitled to an exemption. 
Section 6(e)(3) of the Food Stamp Act does not limit the exclusion to 
persons who are required to participate in an approved E&T program. 
Therefore, the Department agrees that all persons, regardless of 
whether they are volunteers, who are placed in an institution of higher 
education by or in accordance with the requirements of an approved 
program, qualify for the student exemption. The Department has made 
this change in the final regulations at 7 CFR 273.5(b)(11).

Job Opportunities and Basic Skills (JOBS) Program

    The proposed regulations expanded the list of eligible students to 
include students participating in the work incentive program under part 
A of title IV of the Social Security Act or its successor program 
(currently the JOBS program). One commenter supported this change. 
Since this is a nondiscretionary provision that is required by the Food 
Stamp Act, as amended, the Department is adopting the proposed language 
without change at 7 CFR 273.5(b)(1)(vii).

Single Parents

    The proposed regulations provided that a single parent enrolled 
full time in an institution of higher education who is responsible for 
the care of a child under age 12 is exempt from the student provisions. 
This provision would apply where only one natural, adoptive, or 
stepparent, regardless of martial status, is in the same food stamp 
household as the child. For example, if one natural parent and a 
stepparent are living with the child, neither the natural parent nor 
the stepparent could qualify for the student exemption. If no natural, 
adoptive, or stepparent is in the same food stamp household as the 
child, another full-time student in the same food stamp household as 
the child could qualify for eligible student status if he or she has 
parental control over the child and is not living with his or her 
spouse.
    One commenter requested that the definition used for the Aid to 
Families with Dependent Children (AFDC) program be used instead. The 
commenter stated that the definition is a parent who is singly 
responsible for a child because of the death, absence, or incapacity of 
the child's other parent.
    AFDC does not have a definition of a single parent. It appears that 
the commenter is referring to the AFDC definition of deprivation. For 
AFDC purposes, one category of needy children is those deprived of 
parental support or of care by reason of the death, continued absence 
from the home, or physical or mental incapacity of the parent, or 
unemployment of a principal earner. There is no basis in the Food Stamp 
Act for limiting the exclusion to cases of deprivation. Therefore, the 
Department is not adopting this recommendation.
    The Department would, however, like to clarify that ``regardless of 
marital status'' means that the parent could be single (meaning never 
married), a widow or widower, separated, divorced, or married and 
living in a separate household from the other parent. For example, if 
the natural parents are still legally married but only one parent is 
living with the child, that parent would be considered a single parent 
for purposes of this provision.

Resource Exclusions--Sec. 273.8(e)(11)

    In the proposed regulations under the list of resources required to 
be excluded by other Federal laws, the Department listed payments 
received under the Job Training Partnership Act (Pub. L. 97-300). It 
has come to the Department's attention that Public Law 97-300 only 
requires that the payments be excluded from income for food stamp 
purposes. Educational assistance is excluded from resources for the 
period of time for which it is provided. Allowing an indefinite 
resource exclusion would create an unnecessary administrative burden to 
keep track of the payments in subsequent months. For these reasons, the 
Department is not adopting the proposed change.

Technical Changes

    The Department is taking this opportunity to make the following two 
technical changes.

Verification--Sec. 273.2(f)

    In order to consolidate the verification requirements, the 
Department is moving the verification requirement for a determination 
that a person is unfit from the student eligibility section at 7 CFR 
273.5(a) to the verification section at 7 CFR 273.2(f)(1).

Resource Exclusions--Sec. 273.8(e)(11)(vi)

    The Job Training Partnership Act of 1982 replaced the Comprehensive 
Employment and Training Act (CETA) (Pub. L. 97-300, section 183). 
Because CETA payments have not been made for over ten years, the 
Department is deleting the reference to CETA payments in the resource 
section at 7 CFR 273.8(e)(11)(vi).

Implementation--Sec. 272.1(g)

    As stated in the preamble to the proposed regulations, State 
welfare agencies were instructed through agency directive to implement 
on February 1, 1992, the provisions of section 1727 of the Food, 
Agriculture, Conservation, and Trade Act of 1990, which extended 
eligibility to students attending institutions of higher education on 
at least a half-time basis if the student is between 50 and 60 years of 
age; a student with responsibility for a child between the ages of 5 
and 12 if adequate child care is not available to enable the individual 
to attend class and work a minimum of 20 hours per week or participate 
in a work study program during the regular school year; a student 
participating in a State financed work study program during the regular 
school year; enrolled as a result of participation in the Job 
Opportunities and Basic Skills (JOBS) program; assigned to an 
institution of higher education by the food stamp employment and 
training program, a program under section 236 of the Trade Act of 1974, 
or certain State or local employment and training programs; or a full-
time student who is a single parent responsible for the care 

[[Page 48869]]
of a child under 12. The corresponding provisions in this regulation 
are effective on that date.
    The remaining provisions are effective November 1, 1995 and must be 
implemented no later than February 1, 1996.
    The provisions of the final rule must be implemented no later than 
the dates specified for all affected households that newly apply for 
Food Stamp Program benefits on or after the implementation dates. If 
for any reason a State agency fails to implement, restored benefits 
must be provided, as appropriate, back to the effective date of the 
provision, or the date of application, whichever is later.
    The current caseload must be converted to the requirements of the 
final regulations at a household's request, at the time of 
recertification, or when the case is next reviewed, whichever occurs 
first, and the State agency is required to provide restored benefits 
back to the effective date of the provision or the date of application, 
whichever is later.
    The preamble to the proposed rule provided that any variance 
resulting from implementation of the provisions of the subsequent final 
rule would be excluded from error analysis for 90 days from the 
specified implementation dates of such final rule.
    One commenter pointed out that the grace period should be 120 days. 
Section 13951 of the Mickey Leland Childhood Hunger Relief Act, enacted 
August 10, 1993, excludes from the payment error rate any errors 
resulting in the application of new procedures for 120 days from the 
required implementation dates. Accordingly, the Department has provided 
for a 120-day grace period at 7 CFR 272.1(g).

List of Subjects

7 CFR Part 271

    Administrative practice and procedure, Food stamps, Grant programs-
social programs.

7 CFR Part 272

    Alaska, Civil rights, Food stamps, Grant programs-social programs, 
Reporting and recordkeeping requirements.

7 CFR Part 273

    Administrative practice and procedures, Aliens, Claims, Food 
Stamps, Fraud, Grant programs-social programs, Penalties, Reporting and 
recordkeeping requirements, Social Security, Students.

    Accordingly, 7 CFR parts 271, 272, and 273 are amended as follows:
    1. The authority citation for parts 271, 272, and 273 continues to 
read as follows:

    Authority: 7 U.S.C. 2011-2032

PART 271--GENERAL INFORMATION AND DEFINITIONS


Sec. 271.2  [Amended]

    2. In Sec. 271.2, the definition of an ``Institution of higher 
education'' is removed.

PART 272--REQUIREMENTS FOR PARTICIPATING STATE AGENCIES

    3. In Sec. 272.1, a new paragraph (g)(144) is added to read as 
follows:


Sec. 272.1  General terms and conditions.

* * * * *
    (g) Implementation. * * *
    (144) Amendment No. (370). The provisions of Amendment No. (370) 
are effective and must be implemented as follows:
    (i) Sections 273.5(b)(1), (b)(4), and (b)(9) are effective February 
1, 1992. The introductory paragraph of 273.5(b)(6) is effective 
February 1, 1992. The introductory paragraph of 273.5(b)(10) is 
effective February 1, 1992. Sections 273.5(b)(11)(ii), (b)(11)(iii), 
and (b)(11)(iv) are effective February 1, 1992.
    (ii) Sections 273.5(b)(6)(i) and (b)(6)(ii) and sections 
273.5(b)(10)(i) and (b)(10)(ii) and the remaining provisions of this 
regulation are effective November 1, 1995 and shall be implemented no 
later than February 1, 1996.
    (iii) The current caseload shall be converted to these provisions 
at the household's request, at the time of recertification, or when the 
case is next reviewed, whichever occurs first. The State agency shall 
provide restored benefits back to the effective date.
    (iv) Any variance resulting from implementation of a provision in 
this rule shall be excluded from error analysis for 120 days from the 
required implementation date of that provision.

PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS

    4. In Sec. 273.2, a new paragraph (f)(1)(xii) is added to read as 
follows:


Sec. 273.2  Application processing.

* * * * *
    (f) Verification. * * *
    (1) Mandatory verification. * * *
    (xii) Students. If a person claims to be physically or mentally 
unfit for purposes of the student exemption contained in 
Sec. 273.5(b)(2) and the unfitness is not evident to the State agency, 
verification may be required. Appropriate verification may consist of 
receipt of temporary or permanent disability benefits issued by 
governmental or private sources, or of a statement from a physician or 
licensed or certified psychologist.
* * * * *
    5. In Sec. 273.5:
    a. paragraph (a) is revised;
    b. paragraphs (b)(2) and (b)(3) are redesignated as paragraphs (c) 
and (d); and
    c. the heading of paragraph (b) and paragraph (b)(1) are 
redesignated as paragraph (b) and revised. The revisions read as 
follows:


Sec. 273.5  Students.

    (a) Applicability. An individual who is enrolled at least half-time 
in an institution of higher education shall be ineligible to 
participate in the Food Stamp Program unless the individual qualifies 
for one of the exemptions contained in paragraph (b) of this section. 
An individual is considered to be enrolled in an institution of higher 
education if the individual is enrolled in a business, technical, 
trade, or vocational school that normally requires a high school 
diploma or equivalency certificate for enrollment in the curriculum or 
if the individual is enrolled in a regular curriculum at a college or 
university that offers degree programs regardless of whether a high 
school diploma is required.
    (b) Student Exemptions. To be eligible for the program, a student 
as defined in paragraph (a) of the section must meet at least one of 
the following criteria.
    (1) Be age 17 or younger or age 50 or older;
    (2) Be physically or mentally unfit;
    (3) Be receiving Aid to Families with Dependent Children under 
Title IV of the Social Security Act;
    (4) Be enrolled as a result of participation in the Job 
Opportunities and Basic Skills program under Title IV of the Social 
Security Act or its successor program;
    (5) Be employed for a minimum of 20 hours per week and be paid for 
such employment or, if self-employed, be employed for a minimum of 20 
hours per week and receiving weekly earnings at least equal to the 
Federal minimum wage multiplied by 20 hours;
    (6) Be participating in a State or federally financed work study 
program during the regular school year.
    (i) To qualify under this provision, the student must be approved 
for work study at the time of application for food stamps, the work 
study must be approved for the school term, and the student must 
anticipate actually working during that time. The exemption shall begin 
with the month 

[[Page 48870]]
in which the school term begins or the month work study is approved, 
whichever is later. Once begun, the exemption shall continue until the 
end of the month in which the school term ends, or it becomes known 
that the student has refused an assignment.
    (ii) The exemption shall not continue between terms when there is a 
break of a full month or longer unless the student is participating in 
work study during the break.
    (7) Be participating in an on-the-job training program. A person is 
considered to be participating in an on-the-job training program only 
during the period of time the person is being trained by the employer;
    (8) Be responsible for the care of a dependent household member 
under the age of 6;
    (9) Be responsible for the care of a dependent household member who 
has reached the age of 6 but is under age 12 when the State agency has 
determined that adequate child care is not available to enable the 
student to attend class and comply with the work requirements of 
paragraph (b)(5) or (b)(6) of this section;
    (10) Be a single parent enrolled in an institution of higher 
education on a full-time basis (as determined by the institution) and 
be responsible for the care of a dependent child under age 12.
    (i) This provision applies in those situations where only one 
natural, adoptive or stepparent (regardless of marital status) is in 
the same food stamp household as the child.
    (ii) If no natural, adoptive or stepparent is in the same food 
stamp household as the child, another full-time student in the same 
food stamp household as the child may qualify for eligible student 
status under this provision if he or she has parental control over the 
child and is not living with his or her spouse.
    (11) Be assigned to or placed in an institution of higher education 
through or in compliance with the requirements of one of the programs 
identified in paragraphs (b)(11)(i) through (b)(11)(iv) of this 
section. Self-initiated placements during the period of time the person 
is enrolled in one of these employment and training programs shall be 
considered to be in compliance with the requirements of the employment 
and training program in which the person is enrolled provided that the 
program has a component for enrollment in an institution of higher 
education and that program accepts the placement. Persons who 
voluntarily participate in one of these employment and training 
programs and are placed in an institution of higher education through 
or in compliance with the requirements of the program shall also 
qualify for the exemption. The programs are:
    (i) a program under the Job Training Partnership Act of 1974 (29 
U.S.C. 1501, et seq.);
    (ii) an employment and training program under Sec. 273.7;
    (iii) a program under section 236 of the Trade Act of 1974 (19 
U.S.C. 2296); or
    (iv) an employment and training program for low-income households 
that is operated by a State or local government where one or more of 
the components of such program is at least equivalent to an acceptable 
food stamp employment and training program component as specified in 
Sec. 273.7(f)(1). Using the criteria in Sec. 273.7(f)(1), State 
agencies shall make the determinations as to whether or not the 
programs qualify.


Sec. 273.8  [Amended]

    6. In Sec. 273.8, paragraph (e)(11)(vi) is removed, and paragraphs 
(e)(11)(vii) through (e)(11)(xi) are redesignated as paragraphs 
(e)(11)(vi) through (e)(11)(x).

    Dated: September 15, 1995.
Ellen Haas,
Under Secretary for Food, Nutrition, and Consumer Services.
[FR Doc. 95-23404 Filed 9-21-95; 8:45 am]
BILLING CODE 3410-30-P