[Federal Register Volume 81, Number 16 (Tuesday, January 26, 2016)]
[Rules and Regulations]
[Pages 4159-4163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01402]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 /
Rules and Regulations
[[Page 4159]]
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Part 272
[FNS-2015-0029]
RIN 0584-AE36
SNAP Requirement for National Directory of New Hires Employment
Verification and Annual Program Activity Reporting
AGENCY: Food and Nutrition Service (FNS), USDA.
ACTION: Interim final rule.
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SUMMARY: The Food and Nutrition Service is codifying the requirement
for State agencies to verify applicant employment data through the
National Directory of New Hires (NDNH) for the determination of
Supplemental Nutrition Assistance Program (SNAP) eligibility and
correct amount of benefits, pursuant to section 4013 of the
Agricultural Act of 2014. This interim final rule requires that State
agencies access employment data through the NDNH at the time of SNAP
certification, including recertification, and aims to improve Program
integrity by reducing the risk of improper payments due to unreported
or misreported income. This rule further amends regulations to change
the reporting frequency requirement for the ``Program and Budget
Summary Statement Part B--Program Activity Statement'' from an annual
submission based on the State fiscal year to a quarterly submission
based on the Federal fiscal year.
DATES: To be considered, written comments on this interim final rule
must be received on or before March 28, 2016. This rule will become
effective March 28, 2016.
Implementation Date: State agencies have already been instructed
through FNS directive to implement this provision as required by the
Agricultural Act of 2014.
ADDRESSES: Comments may be submitted in writing by one of the following
methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
Mail: Send written comments to Jane Duffield, State
Administration Branch, Program Accountability and Administration
Division, Supplemental Nutrition Assistance Program, Food and Nutrition
Service, USDA, 3101 Park Center Drive, Room 818, Alexandria, VA 22302.
All written comments submitted in response to this interim
final 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 written
comments publicly available on the Internet via http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Jane Duffield, Food and Nutrition
Service, U.S. Department of Agriculture, 3101 Park Center Drive, Room
818, Alexandria, VA 22302, by phone at (703) 305-2425 or via email at
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
With this interim final rule, the Food and Nutrition Service (FNS)
amends the SNAP regulations at 7 CFR part 272 to require State agencies
to access employment data through the National Directory of New Hires
(NDNH) at the time of certification, including recertification, to
determine the eligibility status and correct benefit amount for SNAP
applicants and participants. This requirement codifies section 4013 of
the Agricultural Act of 2014 (Pub. L. 113-79). The legislation was
effective on February 7, 2014, and FNS implemented the mandated
requirements, including that associated with the NDNH requirement, by
directive to all SNAP State agencies on March 21, 2014. This interim
rule also amends regulations at 7 CFR 272.2 to change the requirement
for State agency submission of the ``Program and Budget Summary
Statement Part B--Program Activity Statement'' (FNS-366B, OMB #0584-
0594, expiration date 6/30/2017) from an annual submission based on the
State fiscal year to a quarterly submission based on the Federal fiscal
year.
Implement National Directory of New Hires Employment Verification
Requirement
Current regulations at Sec. 273.2(f)(1)(i) require State agencies
to verify gross non-exempt income for all households prior to
certification or, in instances where the State's attempts to verify the
income with the employer have been unsuccessful, use the best available
information to determine benefits. Additionally, regulations at Sec.
273.12(a) and Sec. 273.21 establish the SNAP household's
responsibility to report applicable changes in income while
participating in the Program. Thus, the accuracy of Program benefits
issued to a household relies on the accuracy of reported and verified
information.
The NDNH is a repository of employment, unemployment insurance, and
quarterly wage data maintained by the U.S. Department of Health and
Human Services (HHS) Office of Child Support Enforcement (OCSE). The
data residing in the NDNH includes W-4 (new hire) records from the
State Directory of New Hires, quarterly wage and unemployment insurance
data from the State workforce agencies, and new hire and quarterly wage
data from Federal agencies. The Personal Responsibility and Work
Opportunity Reconciliation Act (PRWORA) mandated the establishment of
the NDNH in 1996. A major component of the Federal Parent Locator
Service (FPLS), the NDNH was originally established for State Child
Support Enforcement (CSE) Agencies to locate non-custodial parents in
order to establish and enforce child support orders. As of February
2015, there were 64,571 employers and 33,610 subsidiaries listed in the
NDNH. The number of employers and their subsidiaries listed in the NDNH
generally increase each year. In 2014, over 4,320 new employers were
added to the database.
The NDNH may only be accessed by authorized agencies with
legislative authority. On July 27, 2006, Public Law 109-250 amended
section 453(j) of Social Security Act (42 U.S.C. 653(j)) by the adding
a new paragraph (10), which
[[Page 4160]]
authorized State agencies administering SNAP under the Food and
Nutrition Act of 2008 [7 U.S.C. 2011 et seq.] to access NDNH data for
carrying out Program responsibilities. Prior to the amendment, State
SNAP agencies could only access employment data made available through
their own State Directory of New Hires for the determination of SNAP
eligibility. Public Law 109-250 gave State SNAP agencies the option to
access NDNH, thus providing an opportunity to receive employment data
from other States, multi-State employers, and Federal agencies. Despite
this change in legislation, few State agencies exercised the option to
use it. Most State agencies instead opted to access employment data via
their respective State Directory of New Hires, State Workforce Agency,
and other data sources. By now requiring State agencies to access NDNH
data for SNAP, FNS believes States will benefit from a reduction in
improper payments due to unreported income.
This rule codifies in Sec. 272.16 the requirement that each State
agency must establish a system to compare identifiable information
about each adult household member against data from the NDNH. Section
4013 of the Agricultural Act of 2014 mandates that States use NDNH to
verify applicant and participant employment data and enter into a
computer matching agreement with HHS pursuant to the authority in 42
U.S.C. 653(j)(10). State agencies must enter into a computer matching
agreement with HHS in order to access the NDNH. States must continue to
adhere to requirements Sec. 272.12 addressing the use of information
obtained from computer matching programs. The State agency may only use
the required data matching to verify that the employment status of
adult household members is accurately reported on the SNAP application.
Because the NDNH does not include employment data on individuals under
the age of 18, this verification requirement is limited to adult
household members. The law further mandates the State agency to conduct
matches against NDNH new hire data at the time of certification. FNS
believes that conducting the match at both initial application and
recertification will meet the intent of section 4013, and is therefore
codifying the requirement for both certification and recertification.
The NDNH maintains three data sets. While this rule addresses the
requirement for State agency matching against the NDNH new hire data
set, States have the option to match against the quarterly wage and
unemployment insurance data sets at their own discretion. Because the
timeliness of quarterly wage and quarterly unemployment insurance data
may not provide a true benefit to the State agency in determining
eligibility and benefit levels, this rule only requires that States
match against NDNH new hire data at minimum.
Data matching has provided many positive results for the efficient
and effective administration of the program. However, it has come to
the attention of FNS that there has been some confusion regarding
reporting systems and integrity provisions for SNAP, specifically with
regard to simplified reporting. Therefore, FNS wishes to clarify that
in addition to the requirements of these integrity provisions, State
agencies are also expected to comply with the requirements of the
reporting system applicable to SNAP households provided at 7 CFR
273.12. State options for action on reported changes during the
certification period must be followed, even for required data matches.
Data received through NDNH is not considered verified upon receipt.
Consistent with requirements set forth in the Privacy Act (5 U.S.C.
552a(p)) and in SNAP regulation at 7 CFR 272.12(c), the State agency
may not take any adverse action to terminate, deny, suspend, or reduce
benefits to an applicant or SNAP recipient based on information
provided by the NDNH unless the match information has been
independently verified and a Notice of Adverse Action or Notice of
Denial has been sent to the household. The Privacy Act defines
independent verification as the investigation and confirmation of
specific information relating to an individual used as a basis for an
adverse action against the individual. Should there be a delay in the
State agency's ability to verify the NDNH new hire match results within
the required application processing timeline, the State agency is
expected to continue processing the application without the requested
documentation verifying the information. If, after either certification
or recertification is completed, the State agency receives verification
of information obtained through the NDNH match indicating that the
household is ineligible or was approved for the incorrect benefit
amount, the State should deny, reduce or terminate benefits, as
applicable, and establish a claim to collect any benefits that were
overpaid, in accordance with regulations at Sec. 273.18.
Change the Reporting Frequency of Program Activity Statement (FNS-366B)
With this rule, FNS is also modifying a reporting requirement of
Stte agencies by increasing the frequency of submitting a Program
Activity Statement from an annual submission based on the State fiscal
year to a quarterly submission based on the Federal fiscal year.
Section 16(a) of the Food and Nutrition Act of 2008 authorizes 50
percent Federal reimbursement for State agency costs to administer
SNAP. SNAP regulations at 7 CFR 272.2(a) require that State agencies
plan and budget Program operations and establish objectives for the
next year. The basic components of the State Plan of Operation are the
Federal/State Agreement, the Budget Projection Statement and the
Program Activity Statement (7 CFR 272.2(a)(2)). Under current
regulations at 7 CFR 272.2(c), the State agency is required to submit
to FNS for approval a Budget Projection Statement (FNS-366A) which
projects total Federal administrative costs for the upcoming fiscal
year and a Program Activity Statement (FNS-366B) which provides Program
activity data for the preceding fiscal year. Current regulations at 7
CFR 272.2(e)(2)(ii) require State agencies to submit the Program
Activity Statement to FNS no later than 45 days after the end of the
State agency's fiscal year, which is typically August 15 for most
States. The Program Activity Statement was created to substantiate the
costs the State agency expects to incur during the next fiscal year. It
currently provides data on the number of SNAP applications the State
agency processed, the number of fair hearings the State agency
conducted, and the fraud control activities in which the State agency
was engaged in the preceding year. FNS uses the data to monitor State
agency activity levels and performance.
While originally intended only to support the States' annual SNAP
budget request by providing a summary of State SNAP activities in the
previous State fiscal year, the data reported on the Program Activity
Statement has also become a vital tool for monitoring State operations
related to application processing, fair hearings, and fraud prevention
activities. The data reported on the Program Activity Statement enables
FNS to identify areas that may need improvement and to provide more
effective technical assistance to State agencies. The Agency believes
an increase in reporting frequency will allow for greater and more
timely access to Program data. It will help States, FNS, and other
stakeholders identify
[[Page 4161]]
trends, inconsistencies and inefficiencies earlier in each fiscal year.
A 2014 U.S. Government Accountability Office (GAO) performance audit of
FNS (GAO-14-641, Enhanced Detection Tools and Reporting Could Improve
Efforts to Combat Recipient Fraud) concluded that State-reported data
on anti-fraud activities are not reliable for ensuring Program
integrity and assessing States' performance. Additionally, the study
warned that data inconsistencies could limit FNS' ability to identify
more effective and efficient practices for State anti-fraud efforts.
With more current data, States and other interested parties will be
able to identify gaps and areas in need of greater attention, and allow
States to respond more quickly to those gaps. This increased
responsiveness, along with a concurrent FNS effort to update and
improve the reliability of the data collected in the Program Activity
Statement, will help to address directly the concerns raised by GAO.
With this regulation, FNS is also aligning the new quarterly
requirement to the Federal fiscal year. As most SNAP data is reported
monthly, quarterly or annually based on the Federal fiscal year, this
change will improve FNS' ability to conduct data analysis by using data
collected over consistent periods of time.
II. Procedural Matters
Executive Order 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 costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This interim final rule has been determined to be not
significant and was not reviewed by the Office of Management and Budget
(OMB) in conformance with Executive Order 12866.
Regulatory Impact Analysis
This interim final rule has been designated as not significant by
the Office of Management and Budget; therefore, no Regulatory Impact
Analysis is required.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612) requires Agencies
to analyze the impact of rulemaking on small entities and consider
alternatives that would minimize any significant impacts on a
substantial number of small entities. Pursuant to that review, it has
been certified that this interim final rule would not have a
significant impact on a substantial number of small entities. While
there may be some impact on the State and local agencies that
administer the Program in implementing this provision, the impact is
not expected to be significant. Applicants and recipients may also be
impacted to the extent that matching client information with records in
the National Directory of New Hires may identify a client as ineligible
for the Program, thus preventing them from Program participation.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates 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
Department generally must prepare a written statement, including a cost
benefit analysis, for proposed and final rules with Federal mandates
that may result in expenditures by State, local or Tribal governments,
in the aggregate, or 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 Department to identify and consider a
reasonable number of regulatory alternatives and adopt the most cost
effective or least burdensome alternative that achieves the objectives
of the rule.
This interim final rule does not contain 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. Thus, the rule is not subject to the requirements of sections
202 and 205 of the UMRA.
Executive Order 12372
The Supplemental Nutrition Assistance Program is listed in the
Catalog of Federal Domestic Assistance under No. 10.551. For the
reasons set forth in the Final Rule codified 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.
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 agency's considerations in terms of the three categories
called for under section (6)(b)(2)(B) of Executive Order 13132. The
Department has considered the impact of this interim final rule on
State and local governments and has determined that this rule does not
have federalism implications. Therefore, under section 6(b) of the
Executive Order, a federalism summary is not required.
Executive Order 12988, Civil Justice Reform
This interim final rule has been reviewed under Executive Order
12988, 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 and timely implementation. This rule is not intended to have
retroactive effect unless so specified in the Effective Dates section
of the final rule. Prior to any judicial challenge to the provisions of
the final rule, all applicable administrative procedures must be
exhausted.
Civil Rights Impact Analysis
FNS has reviewed this interim final rule in accordance with USDA
Regulation 4300-4, ``Civil Rights Impact Analysis,'' to identify any
major civil rights impacts the rule might have on Program participants
on the basis of age, race, color, national origin, sex or disability.
After a careful review of the rule's intent and provisions, FNS has
determined that this rule is not expected to affect the participation
of protected individuals in SNAP.
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
[[Page 4162]]
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. On
February 18, 2015, the agency held a webinar for tribal participation
and comments. If a Tribe requests consultation, 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.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; 5 CFR part
1320) requires the Office of Management and Budget (OMB) approve all
collections of information by a Federal agency 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.
In accordance with the Paperwork Reduction Act of 1995, this
interim final rule contains information collections that are subject to
review and approval by the Office of Management and Budget; therefore,
FNS is submitting an information collection under 0584-NEW, which
contains the burden information in the rule for OMB's review and
approval. These changes are contingent upon OMB approval under the
Paperwork Reduction Act of 1995. When the information collection
requirements have been approved, the Department will publish a separate
action in the Federal Register announcing OMB's approval. Once approved
the new provisions in this rule and the burden requirement associated
with the National Directory of New Hires will be merged into the
existing information collection for Supplemental Nutrition Assistance
Program (SNAP) Forms: Applications, Periodic Reporting, Notices, OMB
Control Number #0584-0064, expiration date 4/30/2016, which is
currently under revision. New provisions and burden requirements in
this rule associated with the Program Activity Statement (FNS-366B)
will be merged into the existing information collection for the Food
and Nutrition Service Food Programs Reporting System (FPRS), OMB
Control Number #0584-0594, expiration date 6/30/2017, which is
currently under revision.
Comments on this interim final rule must be received by March 28,
2016.
Send comments to Office of Information and Regulatory Affairs, OMB,
Attention: Desk Officer for FNS, Washington, DC 20403. Please also send
a copy of your comments to Jane Duffield, Food and Nutrition Service,
U.S. Department of Agriculture, 3101 Park Center Drive, Alexandria, VA
22302. For further information, or for copies of the information
collection, please contact Jane Duffield at the above address.
Comments are invited on: (a) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information shall have practical
utility; (b) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (c) ways to enhance the quality,
utility, and clarity of the information to be collected; and (d) ways
to minimize the burden of the collection of information on those who
are to respond, including use of appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology.
All responses to this notice will be summarized and included in the
request for OMB approval. All comments will also become a matter of
public record.
Title: Supplemental Nutrition Assistance Program: Requirement for
National Directory of New Hires Employment Verification and Annual
Program Activity Reporting.
OMB Number: 0584--NEW.
Expiration Date: N/A.
Type of Request: New Collection.
Abstract: This rule codifies section 4013 of the Agricultural Act
of 2014, requiring State agencies to access employment data through the
National Directory of New Hires (NDNH) at the time of certification,
including recertification, to determine eligibility status and correct
benefit amount for SNAP applicants. This rule also amends regulations
at 7 CFR 272.2 to increase the frequency of the requirement for State
agency submission of the Program Activity Statement from an annual
requirement based on the State fiscal year to a quarterly requirement,
unless otherwise directed by FNS, based on the Federal fiscal year.
272.2--Program Activity Statement (FNS-366B)
State agencies are required to submit (quarterly) to FNS a Program
Activity Statement (FNS-366B) providing a summary of Program activity
for the State agency's operations during the previous reporting period.
The activity report provides data on the number of applications
processed, number of fair hearings and fraud control activity. FNS uses
the data to monitor State agency activity levels and performance.
272.16--National Directory of New Hires
Applicant and Recipient Screening: The State agency must compare
identifiable information about each adult household member against
information from the NDNH. States must make the comparison of matched
data at the time of application and recertification and must
independently verify any positive match results.
Verification of Match: The State agency must independently verify
the information prior to taking any adverse action against an
individual. Should the State agency receive employment information via
the NDNH that was previously unreported by the household, the State
agency may issue a Request for Contact to the household to verify the
information or contact the employer directly, depending upon applicable
reporting requirements as defined at 7 CFR 273.12.
Notice: The Notice of Adverse Action or Notice of Denial is issued
by State agencies to participating households whose benefits will be
reduced or terminated as the result of a change in household
circumstances. Should the State agency independently verify unreported
or underreported income discovered through NDNH, and that income
results in a reduction of benefits or change in eligibility, the State
agency must take action by issuing the household a Notice of Adverse
Action or Notice of Denial and adjusting benefits accordingly.
Burden Estimates: Out of the 251,482.35 hours requested for this
new information collection request and after OMB's approval, FNS will
merge the total reporting burden estimates into 0584-0064 are
249,252.64 burden hours & 12,276,992 total annual responses; and, the
total reporting burden into 0584-0594 is 2,229.71 burden hours and 159
total annual responses. After approval into these existing collection
packages and there are no recordkeeping requirements with these new or
changing provisions.
See the burden breakdown by affected public below. After OMB
approval of this information collection request, the program plans to
publish another notice in the Federal Register announcing OMB's
approval.
Respondents: State and local agencies, households.
Estimated Number of Respondents: 891,125.
[[Page 4163]]
Estimated Number of Responses per Respondent: 13.78.
Estimated Total Annual Burden on Respondents: 252,432.64 hours. See
the table below for estimated total annual burden for each type of
respondent.
State Agencies
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Difference
Number of Frequency Total Burden hours Total Previous due to Difference
CFR Action respondents per annual per response burden submission program due to
respondent responses hours total hours changes adjustments
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272.2............... Program Activity 53 4 212 15 3,180 950.29 2,229.71 0.00
Statement (FNS 366B).
272.16.............. NDNH--Applicant/ 53 1 9,158,240 0.017 155,690.08 0.00 155,690.08 0.00
Recipient Screening.
272.16.............. NDNH--Verification of 53 1 1,237,600 0.03 37,128 0.00 37,128.00 0.00
Match.
272.16.............. NDNH--Notice of 53 1 495,040 0.03 14,851.20 0.00 14,851.20 0.00
Adverse Action or
Notice of Denial.
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Total........... ...................... 53 ........... 10,891,092 0.019359792 210,849.28 950.29 209,898.99 0.00
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Households
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Difference
Number of Frequency Total annual Burden Total Previous due to Difference
CFR Action respondents per responses hours per burden submission program due to
respondent response hours total hours changes adjustments
--------------------------------------------------------------------------------------------------------------------------------------------------------
272.16.............. NDNH--Request for 891,072 1 891,072 0.03 26,732.16 0.00 26,732.16 0.00
Contact.
272.16.............. NDNH--Notice of 495,040 1 495,040 0.03 14,851.20 0.00 14,851.20 0.00
Adverse Action or
Notice of Denial.
-----------------------------------------------------------------------------------------------------------
Total........... ...................... 891,072 ........... 1,386,112 0.03 41,583.36 0.00 41,583.36 0.00
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E-Government Act Compliance
The Department is committed to complying with the E-Government Act
of 2002 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.
List of Subjects in 7 CFR Part 272
Civil rights, Supplemental Nutrition Assistance Program, Grant
programs--social programs, Reporting and recordkeeping requirements.
Accordingly, 7 CFR part 272 is amended as follows:
PART 272--REQUIREMENTS FOR PARTICIPATING STATE AGENCIES
0
1. The authority citation for part 272 continues to read as follows:
Authority: 7 U.S.C. 2011-2036.
0
2. In Sec. 272.2, revise paragraphs (c)(1)(ii) and (e)(2)(ii) to read
as follows:
Sec. 272.2 Plan of operation.
* * * * *
(c) * * *
(1) * * *
(ii) The Program Activity Statement, to be submitted quarterly
(unless otherwise directed by FNS), solicits a summary of Program
activity for the State agency's operations during the preceding
reporting period.
* * * * *
(e) * * *
(2) * * *
(ii) The Program Activity Statement shall be submitted quarterly
(unless otherwise directed by FNS) based on the Federal fiscal year.
* * * * *
0
3. Add Sec. 272.16 to read as follows:
Sec. 272.16 National Directory of New Hires.
(a) General. Each State agency shall establish a system to verify
applicant employment data for the determination of SNAP eligibility and
correct benefit amount.
(b) Data source. States shall use the U.S. Department of Health and
Human Service (HHS) National Directory of New Hires (NDNH) and enter
into a computer matching agreement with HHS pursuant to the authority
in 42 U.S.C. 653(j)(10).
(c) Use of match data. In accordance with the procedural
requirements and privacy protections required for computer data
matching at 5 U.S.C. 552a(p), States shall provide a system for:
(1) Comparing identifiable information about each adult household
member against data from the NDNH. States must, at minimum, match
household members against new hire data available in the database.
States shall make the comparison of matched data at the time of
application and recertification.
(2) The reporting of instances where there is a match;
(3) The independent verification of match hits to determine their
accuracy;
(4) Notice to the household of match results;
(5) An opportunity for the household to respond to the match prior
to an adverse action to deny, reduce, or terminate benefits; and
(6) The establishment and collection of claims as appropriate.
Dated: January 14, 2016.
Audrey Rowe,
Administrator, Food and Nutrition Service.
[FR Doc. 2016-01402 Filed 1-25-16; 8:45 am]
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