[Federal Register Volume 61, Number 229 (Tuesday, November 26, 1996)]
[Rules and Regulations]
[Pages 60009-60013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30133]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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Federal Register / Vol. 61, No. 229 / Tuesday, November 26, 1996 /
Rules and Regulations
[[Page 60009]]
DEPARTMENT OF AGRICULTURE
Food and Consumer Service
7 CFR Parts 271, 272, 282, 284, and 285
[Amdt. No. 371]
RIN: 0584-AC14
Food Stamp Program, Regulatory Review; Alaska, the Commonwealth
of the Northern Mariana Islands, Puerto Rico, and Demonstration
Projects
AGENCY: Food and Consumer Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule amends Food Stamp Program rules affecting Alaska,
the Commonwealth of the Northern Mariana Islands, Puerto Rico, and
demonstration projects. This action is a result of a comprehensive,
page-by-page review, of all existing Food Stamp Program regulations
which was conducted in response to the President's efforts to reform
the Federal regulatory system. This rule eliminates prescriptive
detailed processes and empowers States to set their own procedures for
case management and customer service; eliminates outdated and redundant
regulatory requirements; and emphasizes recipient responsibility for
applying and reporting their circumstances properly.
DATES: This final rule is effective December 26, 1996, and must be
implemented May 27, 1997.
FOR FURTHER INFORMATION CONTACT: Judith M. Seymour, Chief,
Certification Policy Branch, Program Development Division, Food and
Consumer Service, USDA, 3101 Park Center Drive, Alexandria, Virginia,
22302, (703) 305-2520.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not significant for the
purposes of Executive Order 12866 and therefore was not reviewed by the
Office of Management and Budget.
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),
this Program is excluded from the scope of Executive Order 12372 which
requires intergovernmental consultation with State and local officials.
Regulatory Flexibility Act
This rule has been reviewed with regard to the requirements of the
Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612). William E.
Ludwig, Administrator, Food and Consumer Service, has certified that
this final rule will not have a significant economic impact on a
substantial number of small entities. State and local welfare agencies
will be the most affected to the extent that they administer the
Program.
Paperwork Reduction Act
Sections 272.7(b) and (i) of this rulemaking require submission to
FCS of amendments to the Alaska State Plan of Operation. The
information collection burden associated with amendments to a State
agency's Plan of Operation is currently approved by the Office of
Management and Budget (OMB) under OMB Number 0584-00830. This
rulemaking does not alter the burden estimates as currently approved.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507), FCS solicited comments through an April 1, 1996 publication in
the Federal Register (61 FR 14287, 14288) of a notice on the current
information collection requirements related to the State Plan of
Operation. The comment period ended on May 31, 1996. There were no
comments received on that portion of the notice which describes the
burden associated with the State Plan of Operation. The proposed
collection will be submitted to OMB for review and at that time the
Department will publish a notice which will provide an additional
opportunity to comment. The reporting burden in Sec. 285.3 related to
the Puerto Rico State Plan of Operation affects only the Puerto Rico
State agency. Under the Paperwork Reduction Act, burden is not required
to be assessed and submitted to OMB for review if the number of
respondents is less than nine.
Executive Order 12778
This rule 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 rule is not intended to have retroactive effect
unless so specified in the ``Effective Date'' paragraph of this
preamble. Prior to any judicial challenge to the provisions of this
rule or the application of its provisions, all applicable
administrative procedures must be exhausted. 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 non-quality control (QC) liabilities) or Part 283 (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.
Background
This rule is the first revision of the regulations governing the
Food Stamp Program issued in response to the President's Regulatory
Reform Initiative. For a detailed description of the analysis of the
initiative and its application by this Department, readers are referred
to the proposed rule published on January 24, 1996 at 61 FR 1849.
In this rule, we are amending food stamp regulations affecting
Alaska, Puerto Rico, the Commonwealth of the Northern Mariana Islands,
and demonstration projects. The amendments streamline administration of
the program in these areas, offer greater flexibility to State agencies
in enacting policy, and improve customer service.
[[Page 60010]]
We received a comment letter from the Alaska Department of Health
and Social Services (the State agency), addressing technical changes to
three of the provisions regarding the administration of the program in
the State of Alaska. With the exception of minor changes, to the
proposed regulations suggested by this comment, which are discussed in
the following paragraphs, the provisions of the proposed rule are being
adopted without change. For a detailed description of these provisions
readers are referred to the proposed rule.
Section 272.7, of the proposed rule described special procedures
for administration of the Food Stamp Program in Alaska. Section
272.7(a), the introductory paragraph to Sec. 272.7, specified that FCS
had developed additional regulations to accommodate the unique
demographic and climatic characteristics of certain areas in rural
Alaska. The paragraph further specified that, with the exception of
paragraph (f) which contains provisions regarding the treatment of
resources, the special procedures described in Sec. 272.7 would be
limited to the designated rural areas of Alaska.
Section 272.7(c) of the proposed rule defined ``fee agent'' and
described the duties of such agents. In its comment letter, the State
agency requested that we amend Sec. 273.7(a) so that fee agents may be
used in urban areas. Under section 11(m) of the Food Stamp Act of 1977,
as amended, (7 U.S.C. 2020(m)) the Secretary is directed to provide for
the use of fee agents in rural Alaska. In view of the explicit
statutory language limiting the use of fee agents to only rural areas
of Alaska, the Department does not have the authority to expand the use
of fee agents to urban areas. We would, however, consider granting
waivers allowing for the use of fee agents in urban areas of Alaska on
a limited basis.
Under the proposed rule at Sec. 272.7(b)(4), the State agency may,
in consultation with FCS, change the designation of any Alaska
subdivision to reflect changes in demographics or the cost of food
within the subdivision. The State agency requested clarification of how
it may initiate changes in the designation of areas as rural or urban.
Since the designation of which areas are urban or rural is included in
the State Plan of Operation, described at 7 CFR 272.2, changes in the
Plan would be made pursuant to the procedures at 7 CFR 272.2(f).
In response to the State agency's request, we are also changing the
title of proposed Sec. 272.7(f) from ``Resources'' to ``Vehicles''
since that section refers only to the treatment of vehicles as a
resource.
Implementation
The provisions of this rulemaking are effective no later than 30
days after publication of the final rule. State agencies shall
implement the provisions no later than 180 days after that date.
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 282
Food stamps, Governmental contracts, Grant programs--social
programs, Research.
7 CFR Part 284
Administrative practice and procedure, Food assistance programs,
Grant programs--social programs, Health, Nutrition.
7 CFR Part 285
Accounting, Food assistance programs, Grant programs--agricultural,
Grant programs--social programs, Intergovernmental relations, Puerto
Rico, Technical assistance, Reporting and recordkeeping requirements.
Accordingly, 7 CFR parts 271, 272, 282, 284, and 285 are amended as
follows:
1. The authority citation for 7 CFR parts 271, 272, 282, 284, and
285 continue to read as follows:
Authority: 7 U.S.C. 2011-2034.
PART 271--GENERAL INFORMATION AND DEFINITIONS
Sec. 271.2 [Amended]
2. In Sec. 271.2, the definition of ``State'' is amended by
removing the words ``the Northern Mariana Islands,''.
PART 272--REQUIREMENTS FOR PARTICIPATING STATE AGENCIES
3. In Sec. 272.1, paragraph (g)(152) is added to read as follows:
Sec. 272.1 General terms and conditions.
* * * * *
(g) Implementation * * *
(152) Amendment No. 361 The provisions of Amendment No. 361 are
effective December 26, 1996, and must be implemented May 27, 1997. Any
variances resulting from implementation of the provisions of this
amendment shall be excluded from error analysis for 120 days from this
required implementation date in accordance with 7 CFR
275.12(d)(2)(vii). The provision must be implemented for all households
that newly apply for Program benefits on or after the required
implementation date. 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 must provide restored benefits to such households back to the
required implementation date or the date of application whichever is
later.
If for any reason a State agency fails to implement on the required
implementation date, restored benefits shall be provided, if
appropriate, back to the required implementation date or the date of
application whichever is later, but for no more than 12 months in
accordance with Sec. 273.17(a) of this chapter.
Sec. 272.4 [Amended]
4. In Sec. 272.4, the third sentence of paragraph (a)(2) is amended
by adding the words ``, Sec. 272.7(d) for households residing in rural
Alaska,'' before the words ``and part 280 for disaster victims.''
5. Section 272.7 is revised to read as follows:
Sec. 272.7 Procedures for program administration in Alaska.
(a) Purpose. To achieve the efficient and effective administration
of the Food Stamp Program in rural areas of Alaska, FCS has determined
that it is necessary to develop additional regulations which are
specifically designed to accommodate the unique demographic and
climatic characteristics which exist in these rural areas. The
regulations established in this section, except for paragraph (f) of
this section, shall apply only in those areas of Alaska designated as
``rural'' in paragraph (b) of this section. All regulations not
specifically modified by this section shall remain in effect.
(b) Area Designations. (1) Rural I Alaska TFP refers to a Thrifty
Food Plan (TFP) that is the higher of the TFP that was in effect in
each area on October 1, 1985, or 28.52 percent higher than the
Anchorage TFP, as calculated by FCS, with rounding and other reductions
that are appropriate. It is to be used in the following areas: In all
places in Kodiak Island Borough with the exception of Kodiak; in all
places in the Kenai Peninsula Borough that are west of Cook
[[Page 60011]]
Inlet (including Tyonek, Kustatan, Kalgin Island, Iliamna, Chenik, and
Augustine Island) and Chugach Island, English Bay, Port Graham,
Portlock, Pt. Gore, Pye Island, and Seldovia. In the Yukon-Koyukuk
Census Area, the city of Nenana; and Skwentna in the Matanuska-Susitna
Borough. In the Valdez-Cordova Census Area, all places except Dayville
and Valdez; and in the Southeast Fairbanks Census Area all places
except Big Delta, Delta Junction, and Fort Greely. In the Skagway-
Yakutat-Angoon Census Area, all places except Skagway; in Sitka Borough
all places except Sitka; in the Wrangell-Petersburg Census Area, all
places except Wrangell and Petersburg; in the Ketchikan Gateway
Borough, all places except Ketchikan, Saxman, and Ward Cove; in the
Prince of Wales-Outer Ketchikan Census Area, all places except Craig,
Hyder, and Metlakatla.
(2) Rural II Alaska TFP refers to a TFP that is 56.42 percent
higher than the Anchorage TFP, as calculated by FCS, with rounding and
other reductions that are appropriate. It is to be used in the
following areas: North Slope Borough; Kobuk Census Area; Nome Census
Area; Yukon-Koyukuk Census Area except for the city of Nenana; Wade
Hampton Census Area; Bethel Census Area; Denali in the Matanuska-
Susitna Borough; Dillingham-Bristol Bay Borough; and in all places in
the Aleutian Islands except for Cold Bay and Adak.
(3) Urban Alaska TFP refers to a TFP that is the higher of the TFP
that was in effect in each area on October 1, 1985, or .79 percent
higher than the Anchorage TFP, as calculated by FCS, with rounding and
other reductions that are appropriate. It is to be used in the
following areas: Cold Bay and Adak in the Aleutian Islands; Kodiak in
Kodiak Island Borough; Valdez and Dayville in the Valdez-Cordova Census
Area; all places in Kenai Peninsula Borough that are on the Kenai
Peninsula except for those specifically designated as Rural I; the
entire Anchorage Borough; the entire Matanuska-Susitna Borough except
for Denali and Skwentna; the entire Fairbanks-North Star Borough; the
entire Juneau Borough; the entire Haines Borough; Sitka in the Sitka
Borough; Skagway in the Skagway-Yakutat-Angoon Census Area; Wrangell
and Petersburg in the Wrangell-Petersburg Census Area; Ketchikan,
Saxman, and Ward Cove in the Ketchikan-Gateway Borough; Craig, Hyder,
and Metlakatla in the Prince of Wales-Outer Ketchikan Census Area; and
Big Delta, Delta Junction, and Fort Greely in the Southeast-Fairbanks
Census Area.
(4) The State agency may, in consultation with FCS, change the
designation of any Alaska subdivision contained in the Plan of
Operation to reflect changes in demographics or the cost of food within
the subdivision.
(c) Fee agents. ``Fee agent'' means a paid agent who, on behalf of
the State, is authorized to make applications available to low-income
households, assist in the completion of applications, conduct required
interviews, secure required verification, forward completed
applications and supporting documentation to the State agency, and
provide other services as required by the State agency. Such services
shall not include making final decisions on household eligibility or
benefit levels.
(d) Application processing. The State agency may modify the
application processing requirements in Sec. 273.2 of this chapter as
necessary to insure prompt delivery of services to eligible households.
The following restrictions apply:
(1) Fee agent processing. If the signed application is first
submitted by a household to a fee agent, the fee agent shall mail the
application to the State agency within 5 days of receipt. The fee agent
shall give the household the maximum amount of time to provide needed
verification as long as the five-day processing period is met.
(2) Application filing date. An application is considered filed for
purposes of timely processing when it is received by an office of the
State agency.
(3) Application processing timeframes. Eligible households must be
provided an opportunity to participate as soon as possible but no later
than 30 days after the application is received by an office of the
State agency.
(4) Expedited service. (i) If the signed application is first
submitted by a household to a fee agent, the fee agent shall mail the
application to the State agency within 5 days of receipt. If the
household is eligible for expedited service, the State agency will mail
the coupons no later than the close of business of the second working
day following the date the application was received by the State
agency.
(ii) If the signed application is submitted directly to the State
agency in person by a rural resident or its authorized representative
or by mail, the State agency shall process the application and issue
coupons to households eligible for expedited service in accordance with
the time standards contained in Sec. 273.2(i)(3) of this chapter.
(iii) If an incomplete application is submitted directly to the
State agency by mail, the State agency shall conduct the interview by
the first working day following the date the application was received
if the fee agent can contact the household or the household can be
reached by telephone or radio-phone and does not object to this method
of interviewing on grounds of privacy. Based on information obtained
during the interview, the State agency shall complete the application
and process the case. Because of the mailing time in rural areas, the
State agency shall not return the completed application to the
household for signature. The processing standard shall be calculated
from the date the application was filed.
(5) SSI Joint Processing. SSA workers shall mail all jointly
processed applications to the appropriate State agency office within 5
days of receipt of the application. A jointly processed application
shall be considered filed for purposes of timely processing when it is
received by an office of the State agency. The household, if determined
eligible, shall receive benefits retroactive to the first day of the
month in which the jointly processed application was received by the
SSA worker.
(6) Interviews. The State agency shall interview applicant
households in the most efficient manner possible, either by face-to-
face contact, telephone, radiophone, or other means of correspondence
including written correspondence. In instances in which an interview
cannot be conducted, the State agency may postpone the interview until
after the household is certified.
(e) Determining household eligibility and benefit level. If a
household submits its application to a fee agent, it shall, if
eligible, receive benefits retroactive to the date the application is
received by the fee agent. If a household submits its application
directly to a State agency office, it shall, if determined eligible,
receive benefits retroactive to the date the application is received by
the State agency.
(f) Vehicles. In areas of the State where there are no licensing
requirements, snowmobiles and boats used by the household for basic
transportation shall be evaluated in accordance with Sec. 273.8(h) of
this chapter even though they are unlicensed. Vehicles necessary for
subsistence hunting and fishing shall not be counted as a household
resource.
(g) Reporting changes. The State agency shall allow the household
to choose to report changes either directly to the State agency or to
the fee agent. If the household reports the change to the fee agent,
the fee agent will mail the change report to the State agency office
within two working days of the date of
[[Page 60012]]
receipt. The household's obligation to report the change will have been
met if it submits the change to the fee agent within 10 days of the
date the change becomes known to the household. However, for purposes
of State agency action for increasing or decreasing benefits, the
change will be considered to have been reported when it is received by
a State agency office.
(h) Fair hearings, fraud hearings, and agency conferences. The
State agency shall conduct fair hearings, administrative fraud
hearings, and agency conferences with households that wish to contest
denial of expedited service in the most efficient manner possible,
either by face-to-face contact, telephone, radiophone, or other means
of correspondence including written correspondence, in order to meet
the respective time standards contained in Sec. 273.15 and Sec. 273.16
of this chapter.
(i) Issuance services. With the approval of FCS, coupons may be
mailed on a quarterly or semiannual basis to certain rural areas of
Alaska when provisions are not available on a monthly basis. The
decision to allow the distribution of coupons in this manner will be
made on an annual basis. These areas shall be listed in the State's
Plan of Operation. The State agency shall advise households that live
in rural areas where quarterly or semiannual allotments are authorized.
If, as the result of the issuance of quarterly or semiannual
allotments, food coupons are overissued or underissued, the State
agency shall process claim determinations and restore lost benefits.
PART 282--DEMONSTRATION, RESEARCH, AND EVALUATION PROJECTS
6. Section 282.1 is revised to read as follows:
Sec. 282.1 Legislative authority and notice requirements.
(a) Legislative authority. Section 17 of the Act authorizes the
Secretary to conduct demonstration, research, and evaluation projects.
In conducting such projects, the Secretary may waive all or part of the
requirements of the Act and implementing regulations necessary to
conduct such projects, except that no project, other than a project
involving the payment of the average value of allotments by household
size in the form of cash to eligible households or a project conducted
to test improved consistency or coordination between the food stamp
employment and training program and the Job Opportunities and Basic
Skills program under Title IV of the Social Security Act, may be
undertaken which would lower or further restrict the established income
and resource standards or benefit levels.
(b) Notices. At least 30 days prior to the initiation of a
demonstration project, FCS shall publish a General Notice in the
Federal Register if the demonstration project will likely have a
significant impact on the public. The notice shall set forth the
specific operational procedures and shall explain the basis and purpose
of the demonstration project. If significant comments are received in
response to this General Notice, the Department will take such action
as may be appropriate prior to implementing the project. If the
operational procedures contained in the General Notice described above
are significantly changed because of comments, an amended General
Notice will be published in the Federal Register at least 30 days prior
to the initiation of the demonstration project, except where good cause
exists supporting a shorter effective date. The explanation for the
determination of good cause will be published with the amended General
Notice. The amended General Notice will also explain the basis and
purpose of the change.
Secs. 282.2 through 282.19 [Removed]
7. Sections 282.2 through 282.19 are removed.
8. A new Sec. 282.2 is added to read as follows:
Sec. 282.2 Funding.
Federal financial participation may be made available to
demonstration, research, and evaluation projects awarded by FCS through
grants and contracts. Funds may not be transferred from one project to
another. FCS will pay all costs incurred during the project, up to the
level established in the grant, or in the terms and conditions of the
contract. FCS may grant time extensions of the project upon approval.
Funding for additional costs is subject to existing Federal grant and
contract procedures.
PART 284--PROVISION OF A NUTRITION ASSISTANCE PROGRAM FOR THE
COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS (CNMI) [REMOVED AND
RESERVED]
9. Part 284 is removed and reserved.
PART 285--PROVISION OF A NUTRITION ASSISTANCE GRANT FOR THE
COMMONWEALTH OF PUERTO RICO
Sec. 285.2 [Amended]
10. In Sec. 285.2, the first sentence of paragraph (b) is amended
by removing the citations ``Secs. 285.4 and 285.7 in this part'' and
adding ``Secs. 285.3 and 285.5'' in their place.
11. In Sec. 285.3:
a. The second sentence of paragraph (a) is removed.
b. The third sentence of paragraph (a) is amended by removing the
word ``subsequent''.
c. Paragraph (b)(3)(iii) is removed.
d. New paragraphs (d), (e), (f), (g), and (h) are added.
The additions read as follows:
Sec. 285.3 Plan of operation.
* * * * *
(d) FCS shall approve or disapprove any plan of operation no later
than August 1 of the year of its submission. FCS approval of the plan
of operation shall be based on an assessment that the nutrition
assistance program, as defined in the plan of operation, is:
(1) Sufficient to permit analysis and review;
(2) Reasonably targeted to the most needy persons as defined in the
plan of operation;
(3) Supported by an assessment of the food and nutrition needs of
needy persons;
(4) Reasonable in terms of the funds requested;
(5) Structured to include safeguards to prevent fraud, waste, and
abuse in the use of grant funds; and
(6) Consistent with all applicable Federal laws.
(e) FCS shall approve or disapprove any amendments to those
provisions of the plan of operation specified in paragraph (b) of this
section. If FCS fails either to approve or deny the amendment, or to
request additional information within 30 days, the amendment to the
plan of operation is approved. If additional information is requested,
the Commonwealth of Puerto Rico shall provide this as soon as possible,
and FCS shall approve or deny the amendment to the plan of operation.
Payment schedules and other program operations may not be altered until
an amendment to the plan of operation is approved. The Commonwealth of
Puerto Rico shall, for informational purposes, submit to FCS any
amendments to those provisions of the plan of operation not specified
in paragraph (b) of this section. Such submittal shall be made at least
30 days prior to the effective date of the amendment. If circumstances
warrant a waiver of the 30-day requirement, the Commonwealth of Puerto
Rico shall submit a waiver request to FCS for consideration. Should FCS
determine that such an amendment relates to the provisions of paragraph
(b) of this section, FCS approval as established above will be
necessary for the amendment to be implemented.
[[Page 60013]]
(f) FCS may approve part of any plan of operation or amendment
submitted by the Commonwealth of Puerto Rico contingent on appropriate
action by the Commonwealth of Puerto Rico with respect to the problem
areas in the plan of operation.
(g) If all or part of the plan of operation is disapproved, FCS
shall notify the appropriate agency in the Commonwealth of Puerto Rico
of the problem area(s) in the plan of operation and the actions
necessary to secure approval.
(h) In accordance with the provisions of Sec. 285.5, funds may be
withheld or denied when all or part of a plan of operation is
disapproved.
Secs. 285.4 and 285.5 [Removed]
12. Sections 285.4 and 285.5 are removed.
Sec. 285.6 [Redesignated as Sec. 285.4]
13. Section 285.6 is redesignated Sec. 285.4.
Sec. 285.7 [Redesignated as Sec. 285.5 and amended]
14. In Sec. 285.7:
a. The section is redesignated Sec. 285.5.
b. The first sentence of paragraph (a) is amended by removing the
citation ``Sec. 285.6'' and adding ``Sec. 285.4'' in its place.
c. The first sentence of paragraph (b) is amended by removing the
citation ``Sec. 285.6'' and adding ``Sec. 285.4'' in its place.
Secs. 285.8 through 285.10 [Removed]
15. Sections 285.8 through 285.10 are removed.
Dated: October 4, 1996.
William E. Ludwig,
Administrator, Food and Consumer Service.
[FR Doc. 96-30133 Filed 11-25-96; 8:45 am]
BILLING CODE 3410-30-P