[Federal Register Volume 75, Number 249 (Wednesday, December 29, 2010)]
[Rules and Regulations]
[Page 81831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32686]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Part 274

RIN 0584-AD48


Supplemental Nutrition Assistance Program, Regulation 
Restructuring: Issuance Regulation Update and Reorganization To Reflect 
the End of Coupon Issuance Systems

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

ACTION: Affirmation of direct final rule as final rule.

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SUMMARY: The Food and Nutrition Service (FNS) is adopting as a final 
rule, without change, a direct final rule that made changes to the 
Supplemental Nutrition Assistance Program (SNAP) regulations to account 
for the replacement of the paper coupon issuance system with the 
Electronic Benefits Transfer (EBT) system as the nationwide method of 
distributing benefits to program participants. This action is in 
accordance with the Food, Conservation, and Energy Act of 2008, Public 
Law 110-246, (the 2008 Farm Bill) which prohibited State agencies from 
issuing paper food stamp coupons and made EBT cards the sole method of 
benefit delivery. The 2008 Farm Bill also de-obligated paper coupons as 
legal tender as of June 18, 2009. Therefore, paper coupons no longer 
have any value and can no longer be redeemed at any store.
    In line with EBT implementation and the elimination of coupons, 
these changes remove coupon issuance and EBT pilot regulations that are 
no longer applicable, revise regulatory language to more appropriately 
reflect the new EBT issuance system and the Program's new name, and 
reorganize sections to develop a more cohesive set of issuance 
regulations.

DATES: Effective December 29, 2010, the Food and Nutrition Service 
adopted as a final rule the direct final rule published at 75 FR 18377 
on April 12, 2010. The effective date of that direct final rule was 
June 11, 2010.

FOR FURTHER INFORMATION CONTACT: Andrea Gold, Chief, Retailer 
Management and Issuance Branch, Benefit Redemption Division (703) 305-
2456.

SUPPLEMENTARY INFORMATION:

Background

    On April 12, 2010, the Food and Nutrition Service (FNS) published a 
direct final rule entitled, Supplemental Nutrition Assistance Program, 
Regulation Restructuring: Issuance Regulation Update and Reorganization 
To Reflect the End of Coupon Issuance Systems, that made changes to the 
SNAP regulations to account for the replacement of the paper coupon 
issuance system with the EBT system as the nationwide method of 
distributing benefits to program recipients. FNS published a direct 
final rule to expedite implementation of the rule's provision, while 
allowing public input. Comments were invited on the rule and the 
comment period ended on May 12, 2010.
    FNS received one comment in response to the direct Final Rule that 
misinterpreted the intent of the rule. The comment addressed the new 
citation at 7 CFR 274.6(a)(3)(i) regarding replacement issuances for 
food lost in a household misfortune. The commenter believed that the 
regulation was changed to only allow benefits used for food purchased 
10 days prior to the misfortune to be replaced. To the contrary, the 
new language merely removed obsolete coupon and authorization document 
references and now reads, ``the report will be considered timely if it 
is made to the State agency within 10 days of the date food purchased 
with Program benefits is destroyed in a household misfortune.'' The 
focus of this statement is on when households must report the food 
loss, not on the date the food was purchased. Therefore, as required by 
the previous language, households must report the food loss within 10 
days after the date the food was destroyed. The food must be food that 
was purchased with SNAP benefits. The date when the food was actually 
purchased has no bearing on the amount of the issuance replacement.
    The Department's Office of the General Counsel reviewed the comment 
and clarification and determined that because the comment was based on 
a misreading of the language, it would not have to be considered a 
material comment that would prevent FNS from adopting the direct final 
rule as a final rule.

 List of Subjects in 7 CFR Part 274

    SNAP, Grant programs-social programs, Reporting and recordkeeping 
requirements.

Supplemental Nutrition Assistance Program, Regulation Restructuring: 
Issuance Regulation Update and Reorganization to Reflect the End of 
Coupon Issuance Systems

0
Accordingly, FNS is adopting as a final rule, without change, the 
direct final rule that amended 7 CFR part 274 and was published at 75 
FR 18377 on April 12, 2010.

    Dated: November 24, 2010.
Julia Paradis,
Administrator, Food and Nutrition Service.
[FR Doc. 2010-32686 Filed 12-28-10; 8:45 am]
BILLING CODE 3410-30-P