[Federal Register Volume 82, Number 4 (Friday, January 6, 2017)]
[Rules and Regulations]
[Pages 2010-2044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30663]
[[Page 2009]]
Vol. 82
Friday,
No. 4
January 6, 2017
Part IV
Department of Agriculture
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Food and Nutrition Service
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7 CFR Parts 271, 272, 273, et al.
Supplemental Nutrition Assistance Program (SNAP): Eligibility,
Certification, and Employment and Training Provisions of the Food,
Conservation and Energy Act of 2008; Final Rule and Interim Final Rule
Federal Register / Vol. 82 , No. 4 / Friday, January 6, 2017 / Rules
and Regulations
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DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Parts 271, 272, 273, 274, 275, 276, 277, 278, 279, 280, 281,
282, 283, and 285
[FNS 2011-0008]
RIN 0584-AD87
Supplemental Nutrition Assistance Program (SNAP): Eligibility,
Certification, and Employment and Training Provisions of the Food,
Conservation and Energy Act of 2008
AGENCY: Food and Nutrition Service, USDA.
ACTION: Final rule and interim final rule.
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SUMMARY: This final rule implements provisions of the Food,
Conservation and Energy Act of 2008 (FCEA) affecting the eligibility,
benefits, certification, and employment and training (E&T) requirements
for applicant or participant households in the Supplemental Nutrition
Assistance Program (SNAP). The rule amends the SNAP regulations to:
Exclude military combat pay from the income of SNAP households; raise
the minimum standard deduction and the minimum benefit for small
households; eliminate the cap on the deduction for dependent care
expenses; index resource limits to inflation; exclude retirement and
education accounts from countable resources; clarify reporting
requirements under simplified reporting; permit States to provide
transitional benefits to households leaving State-funded cash
assistance programs; allow States to establish telephonic and gestured
signature systems; permit States to use E&T funds to provide job
retention services; and update requirements regarding the E&T funding
cycle. These provisions are intended to more accurately reflect needs,
reduce barriers to participation, and improve efficiency in the
administration of the program. This rule also replaces outdated
language in SNAP certification regulations with the new program name
and updates procedures for accessing SNAP benefits in drug and alcohol
treatment centers and group living arrangements with use of electronic
benefit transfer (EBT) cards. This rule provides States with regulatory
options for conducting telephone interviews in lieu of face-to-face
interviews and for averaging student work hours.
Finally, the Department is issuing an interim final rule (with a
request for additional comment) that will require that drug and alcohol
treatment and group living arrangements (GLA) centers to: Submit
completed change report forms to the State agency when a resident
leaves the center; notify the State agency within 5 days when the
center is not able to provide the resident with their EBT card at
departure; and return EBT cards to residents with pro-rated benefits
based up on the date of their departure.
DATES: Effective dates: This final rule is effective March 7, 2017. The
amendments to 7 CFR 273.11(e) and 273.11(f) are being issued as an
interim final rule and are effective April 6, 2017. The amendments to 7
CFR 273.2(c)(1)(v) are effective January 8, 2018.
Comment date: FNS will consider comments from the public on the
amendments to 7 CFR 273.11(e) and 273.11(f). Comments must be received
at one of the addresses provided below on or before March 7, 2017.
ADDRESSES: FNS invites interested persons to submit comments on the
interim rule provisions at 7 CFR 273.11(e) and 273.11(f). Comments may
be submitted by one of the following methods:
Federal e-Rulemaking Portal: Go to http://www.regulations.gov. Preferred method; follow the online instructions
for submitting comments on docket FNS 2011-0008.
Fax: Submit comments by facsimile transmission to: Sasha
Gersten-Paal, Certification Policy Branch, Fax number 703-305-2486.
Mail: Comments should be addressed to Sasha Gersten-Paal,
Certification Policy Branch, 3101 Park Center Drive, Alexandria, VA
22302.
Hand Delivery or Courier: Deliver comments to Sasha
Gersten-Paal, Certification Policy Branch, 3101 Park Center Drive,
Alexandria, VA 22302, Monday-Friday, 8:30 a.m.-5:00 p.m.
All comments submitted in response to the interim rule provision
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 comments publicly
available on the Internet via http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Sasha Gersten-Paal, Branch Chief,
Certification Policy Branch, Program Development Division, Food and
Nutrition Service (FNS), 3101 Park Center Drive, Room 810, Alexandria,
Virginia 22302, (703) 305-2507, [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
What acronyms or abbreviations are used in this discussion?
In the discussion of this final rule, we use the following acronyms
or other abbreviations to stand in for certain words or phrases:
------------------------------------------------------------------------
Phrase Acronym, abbreviation, or symbol
------------------------------------------------------------------------
Code of Federal Regulations.... CFR.
Electronic Benefit Transfer EBT Card.
Card.
Federal Register............... FR.
Federal Fiscal Year............ FY.
Food and Nutrition Act of 2008. Act.
Food and Nutrition Service..... FNS.
Food, Conservation and Energy FCEA.
Act of 2008 (Pub. L. 110-246).
Food, Security and Rural FSRIA.
Investment Act of 2002 (Pub.
L. 107-171).
Office of Management and Budget OMB.
Secretary of the U.S. Secretary.
Department of Agriculture.
Section (when referring to Sec. or Sec. Sec. .
Federal regulations).
State Funded Cash Assistance SFCA Program.
Program.
Supplemental Nutrition SNAP.
Assistance Program.
Temporary Assistance for Needy TANF.
Families.
United States Code............. U.S.C.
U.S. Department of Agriculture. the Department or USDA.
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[[Page 2011]]
What changes in the law triggered the need for this final rule?
The Food, Conservation and Energy Act of 2008 (Pub. L. 110-246)
(FCEA), enacted on June 18, 2008, amended and renamed the Food Stamp
Act of 1977, 7 U.S.C. 2011, et seq., as the Food and Nutrition Act of
2008 (the Act). This final rule implements FCEA provisions affecting
the eligibility, benefits, and certification of program participants,
as well as E&T requirements of the program. This rule also codifies
into the SNAP regulations the FCEA's nomenclature changes from ``Food
Stamp Program'' to ``Supplemental Nutrition Assistance Program'' (SNAP)
throughout Part 273 of the SNAP regulations.
What were the FCEA mandatory provisions and when did States have to
implement them?
The statutory provisions covered in this rule were effective on
October 1, 2008. Many of the eligibility, certification and E&T
provisions included in this final rule were mandated by the FCEA to be
implemented by State agencies on October 1, 2008. These provisions,
addressed in an implementing memo issued on July 3, 2008, describing
both mandatory and optional provisions, with corresponding FCEA
sections include:
Section 4001--Changing the program name;
Section 4101--Excluding military combat pay;
Section 4102--Raising the standard deduction for small
households;
Section 4103--Eliminating the dependent care deduction
caps;
Section 4104(a)--Indexing the resource limits;
Section 4104(b)--Excluding retirement accounts from
resources;
Section 4104(c)--Excluding education accounts from
resources;
Section 4107--Increasing the minimum benefit for small
households; and
Section 4122--Funding cycles for E&T programs.
What were the optional provisions in the FCEA?
The FCEA also created new program options that State agencies may
include in their administration of the program, which State agencies
were permitted to implement on October 1, 2008. These provisions, which
are addressed in this rule, with corresponding FCEA sections include:
Section 4105--Expanding simplified reporting;
Section 4106--Expanding transitional benefits option;
Section 4108--E&T funding of job retention services; and
Section 4119--Telephonic signature systems.
FNS informed State agencies of implementation timeframes for all
SNAP provisions in the July 3, 2008, FCEA memorandum. The memo is
available on the FNS Web site at http://www.fns.usda.gov/sites/default/files/070308_0.pdf.
When did the Department publish the proposed rule and how did
commenters respond?
On May 4, 2011, the Department published a proposed rule (76 FR
25414) that would codify certain provisions of the FCEA as well as two
discretionary provisions into SNAP's certification, eligibility, and
E&T rules. The 60-day comment period ended on July 5, 2011. A total of
118 commenters submitted comments. These commenters included the
following: 59 advocacy groups, 18 food banks, 15 individuals, 13 non-
profit organizations, seven associations and six State agencies. The
Department greatly appreciates the comments received on the proposed
rule as they have been essential in developing the final rule. The
Department received generally favorable feedback from the public on the
proposed rule. Where commenters expressed concerns or questions, the
Department has considered these issues, and where appropriate,
incorporated these comments into the regulatory text.
In this final rule, the Department discusses each statutory and
discretionary provision in the proposed rule and the comments made,
with some general exceptions. Although the Department considered all
comments, the preamble discussion focuses primarily on the most
frequent comments and/or those that influenced revisions to the
proposed rule, and modifications made to the proposed rule in response
to public input. Comments supporting proposed provisions are generally
not discussed in detail. The Department also does not discuss comments
that only address technical corrections or inadvertent omissions in
detail; however, the appropriate corrections are made. For provisions
on which no comments were received, the Department is adopting those
provisions as proposed. Other comments added value and clarity to the
regulations and we incorporate those suggested revisions into the
relevant regulatory provisions.
The Department also received comments on several provisions that
were outside the scope of the proposed rulemaking. By outside the
scope, the Department means that commenters provided substantive
feedback on provisions that were not proposed for revisions as part of
this rulemaking. Most of the comments that are outside the scope of the
proposed rulemaking will generally be identified but not fully
discussed in this final rule. Nevertheless, the Department appreciates
the feedback on those issues and will consider incorporating some of
those perspectives and suggestions in future guidance, rulemaking and/
or policy discussions.
To view all public comments on the proposed rule go to
www.regulations.gov and search for public submissions under docket
number FNS-2011-0008.
Discussion of Specific Provisions and Comments
1. Program name change and Other Conforming Nomenclature Changes, Part
273
What changes are made to the program's name by this final rule?
This rule incorporates the nomenclature revisions proposed in the
May 4, 2011 proposed rule. These changes are based on Section 4001 of
the FCEA, which changed the name of the program as well as the name of
the statute that governs the program. The Department is updating
nomenclature in sections where substantial changes are being made or
the necessary changes have already been identified. This is a long-term
and incremental process. The nomenclature changes made in this final
rule throughout part 273 include the following:
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Previous name New name
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Food Stamp Program..................... Supplemental Nutrition
Assistance Program (SNAP).
Food Stamp Act of 1977................. Food and Nutrition Act of 2008.
food stamp............................. SNAP.
food coupons........................... SNAP benefits.
[[Page 2012]]
food stamps............................ SNAP benefits.
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In addition, this rule incorporates a change at 7 CFR 273.25 to
update references to SFSP (Simplified Food Stamp Program) to S-SNAP
wherever it occurs and FSP to SNAP.
Do State agencies have to use the new program name, SNAP?
No. Although the official name of the program changed on October 1,
2008, State agencies may continue to use State-specific names for SNAP.
One commenter (State agency) asked whether States may exhaust existing
inventory of materials prior to transitioning to a new program name. It
has been a longstanding policy of the Department to allow States to use
State-specific names. Therefore, it is also a State agency's discretion
to deplete materials using the old name prior to changing to a new
program name, whether it is SNAP or some other State-specific name. As
mentioned in the preamble to the May 4, 2011 proposed rule, FNS
continues to request that State agencies discontinue the use of the
name, ``Food Stamp Program''. In addition, FNS recommends that States
that have yet to move to a name other than ``Food Stamp Program''
should consider adopting the official name, Supplemental Nutrition
Assistance Program, or SNAP. Several commenters opposed the use of any
other name than SNAP, and another commenter stressed the importance of
having a national name for a national program. While we understand the
reasoning behind this comment, because the Department has permitted
States to use State-specific names for many years, it would be
inappropriate and costly to require States to transition to the
official Federal program name at this time. However, in recognition of
commenters' support of the use of the updated program name exclusively,
and in order to support consistency across the program, the Department
is updating the final rule to include most of the above-mentioned
nomenclature changes throughout Parts 271 through 285, not just in Part
273 as in the proposed rule. These sections include all Department SNAP
and Food Distribution program regulations.
The proposed rule changed ``food stamps'' and ``food coupons'' to
``benefits.'' On further review after publication of the proposed rule,
the Department determined that the reference to ``benefits'' is not
specific enough in many instances throughout Parts 271 through 285. In
this final rule, the Department will change references to ``food
stamps'' to ``SNAP benefits'' through Parts 271 through 285 and ``food
coupons'' to ``SNAP benefits'' through Part 273.
2. What changes were proposed to provisions on drug addiction and
alcoholic (DAA) treatment centers and in group living arrangements
(GLAs) in the proposed rule?
The Department proposed revising Sec. 273.11(e) and Sec.
273.11(f) to remove references to food coupons and to update the
procedures for providing benefits via EBT cards to residents of DAA
centers, and residents of GLAs. The purpose of this proposed provision
was to update nomenclature to reflect the electronic issuance of
benefits through EBT. Since these procedures are already in use by
these types of centers, only the regulatory description of the
procedures was proposed to be updated. The proposed regulation would
have required that the center advise the State agency of the center's
inability to refund the departing resident's benefits, but did not
provide a time frame for this requirement.
What comments were received on the proposed revisions?
The Department received 11 comments that addressed client rights as
related to residents of these DAA centers and GLAs. In particular,
commenters believed that both DAA treatment centers and GLAs should be
required to return a pro-rata share of benefits to residents who leave
in the middle of the month, return EBT cards to departing residents,
and report when residents leave the center. Commenters also said that
these centers should not be allowed to act as an authorized
representative for the SNAP recipient. Prior to EBT, such centers were
required to redeem residents' paper coupons through authorized food
stores. Under EBT, both DAA treatment centers and GLAs centers are
allowed to be authorized as retailers in order to redeem benefits
directly through a financial institution. Both DAA treatment centers
and GLAs then use the cash to purchase food for their residents.
One commenter suggested that the Department strengthen the
procedures used when residents leave these centers and enhance
protections for these vulnerable SNAP participants. The comment
included the following specific recommendations: (1) Require both DAA
centers and GLAs to submit a completed change report form to the State
when the residents depart; (2) require centers to provide EBT cards to
departing residents; (3) and require that the EBT cards returned to the
departing residents include pro-rated benefits. The commenter pointed
out that the current and proposed regulations raise concerns because
residents of both DAA treatment centers and GLAs may not be receiving
the full amount of benefits they are entitled to when they leave the
center. The commenter pointed out that prorating by day is a basic rule
in SNAP and recommended pro-rating by day for substance use disorder
treatment centers whose residents have departed. FNS believes that
these concerns and recommendations are important to ensure that
residents of DAA treatment centers and GLAs do not lose SNAP benefits
when they leave.
What is required by current regulations regarding GLAs and DAA
treatment centers when a resident receiving SNAP befits leaves the
center?
Current regulations require the State to ensure that its procedures
prohibit DAA treatment centers from obtaining more than one-half of the
household's (typically a single individual) allotment prior to the 16th
of the month unless the center permits the return of the benefits to
the household's EBT account through a refund, transfer, or other means.
The EBT procedures for residents in GLAs vary depending on whether all
the residents are certified together as one household or are certified
individually.
The current regulations require that the DAA treatment center must
provide the household with its EBT card if the center has possession of
card when a resident leaves. In the case where the household has
already left and the treatment center is unable to return the benefits,
the center must promptly inform the State agency and the State agency
must provide the household with the EBT card.
The current regulations provide that the day of the month that the
resident leaves the treatment center determines how the resident will
receive their unspent benefits once they leave the center. Generally,
if the household leaves prior to the 16th of the month, the State must
ensure that its
[[Page 2013]]
procedures prohibit the DAA treatment center from obtaining more than
one-half of the household's allotment and return of one-half of the
allotment to the household's EBT account through a refund, transfer, or
other means if the household leaves prior to the 16th of the month. If
the household leaves on or after the 16th day of the month, the State
agency, at its option, may require the DAA treatment center to give the
household a portion of its allotment, but this is not required. If no
benefits have been spent on behalf of the individual household, the
center must return the full value, including any benefits already
debited from the household's current monthly allotment but not yet
spent. In situations where benefits have already been debited from the
EBT account and any portion spent on behalf of household, the DAA
treatment center has several options to ensure clients receive the
balance of their benefits for that month.
Are the rights of clients residing in DAA treatment centers and in GLAs
also changed by the final rule?
Yes. Even though the Department did not propose any changes to the
rights of clients at these centers, the comments received on this topic
convinced the Department of the need for changes to these provisions to
better protect these vulnerable participants. Consequently, the
Department has decided to issue several changes to provisions in Sec.
273.11(e) and Sec. 273.11(f) as an interim final rule to ensure that
this vulnerable population receives the benefits they are entitled to
as soon as possible. The Department has determined that these changes
to the current rules are necessary to ensure that this vulnerable
population begins receiving all the benefits to which they are entitled
as soon as possible. Therefore, the Department has determined pursuant
to 5 U.S.C. 553(b)(B) that there is good cause to forego the notice of
proposed rulemaking procedure since, in this instance, it is contrary
to the public interest. The Department will accept and consider
comments on these provisions prior to issuing a final rule. The
Department will accept and consider comments on these provisions prior
to issuing a final rule.
Most significantly, the rule requires that both DAA treatment
centers and GLAs (referred to below as ``centers'') must now return a
prorated amount of the household's monthly allotment back to the EBT
account based on the number of days in the month that the household
resided at the center regardless of whether the household leaves
before, on, or after the 16th day. No matter the method used by the
center to redeem a household's benefits, the household, not the center,
will now have sole access to the prorated benefits in the EBT account
if the household leaves the center. States' automated systems and EBT
make the precise, day-by-day, prorating of benefits easy.
In addition, the interim final rule requires that centers notify
the State agency of the household's change in address, and new address
if available, and that the center is no longer the household's
authorized representative. The center must provide the household with a
change report form as soon as it has knowledge the household plans to
leave the facility and advise the household to report to the State
agency any changes that the household is required to report within 10
days of the change. After the household leaves the center, the center
can no longer act as the household's authorized representative for
certification purposes or for obtaining or using benefits.
If the household has already left the center, and as a result, the
center is unable to refund the benefits to the household, the center is
required to notify the State agency within five days of the of the
household's departure that the center was unsuccessful in its effort to
refund the prorated share. Once notified, the State agency must effect
the refund from the center's bank account to the household's EBT
account within a reasonable period of time. These procedures are
applicable at any time during the month. Five days is a reasonable and
necessary amount of time given that the household will have no access
to these funds during the time and may be unable to purchase food.
The center is also required to provide the household with its EBT
card within 5 days of the household's departure and to return any EBT
card not provided to departing residents to the State agency within 5
days.
If the center completed any part of its monthly shopping by the
time a household departs, the food purchased on behalf of the departed
resident will remain in the center and will be used to feed other
residents.
The Department will also consider changing the terminology used in
SNAP rules from DAA treatment centers to the more medically correct
``Substance Use Disorder'' treatment centers. Any such action would be
made in future rulemaking, and not for purposes of this interim final
rule, to ensure the terminology is changed throughout the SNAP
regulations.
Finally, the Department revises outdated references to Sec.
273.1(e)(2) in this final rule. Section 273.1(e)(2) previously
discussed the allowability of certain residents of public institutions
to apply for SNAP benefits jointly with their SSI application. This
language is now contained at 273.11(i). The Department replaces the
references to Sec. 273.1(e)(2) with Sec. 273.11(i) in the two
sections of the regulations where the old reference is contained, at
Sec. Sec. 273.2 and 273.10.
3. Military Combat-Related Pay Exclusion Sec. 273.9(c)(20)
What changes did the FCEA make regarding the exclusion of military
combat-related pay from income in SNAP eligibility determinations?
Section 4101 of FCEA added Section 5(d)(19) of the Act (7 U.S.C.
2014(d)(19)) to exclude special pay to United States Armed Forces
members that is received in addition to basic pay as a result of a
member's deployment or service in a designated combat zone. The
exclusion includes any special pay received pursuant to Chapter 5 of
Title 37 of the United States Code and any other payment that is
authorized by the Secretary as appropriate to be excluded under Section
5(d)(19) of the Act. To qualify for the exclusion, the pay must be
received as a result of deployment to or service in a combat zone and
must not have been received immediately prior to the service or
deployment in the combat zone.
How did FNS propose to implement this exclusion in the SNAP
regulations?
FNS proposed to add a new paragraph (20) to Sec. 273.9(c) to
exclude special combat-related pay received by a household from a
person who is serving in the U.S. Armed Forces and is deployed to or
serving in a Federally-designated combat zone. This special pay must be
received in addition to basic pay and must not be received immediately
prior to the service or deployment in the combat zone.
What types of pay must be excluded from the eligibility determination
under this requirement?
A total of 59 commenters provided feedback on this provision.
Forty-nine of those commenters requested guidance to assist State and
local agencies identify what constitutes the special pay that is to be
excluded from household income. Eleven commenters further requested
that the Department explicitly identify what pay is excluded from the
service member's leave and earnings statements (LES), for example,
hostile fire pay and hazardous duty incentive pay. They requested that
the Department expand specific guidance
[[Page 2014]]
issued in 2005 on the exclusion of military combat pay and provide a
link to the Department of Defense (DoD) Defense Finance and Accounting
Service (DFAS) Web site at http://www.dfas.mil/dfas/militarymembers.html. That being said, nine of those 11 commenters also
acknowledged that listing this link in the regulation could require
more frequent regulation updates, and that guidance may be more
helpful. One commenter requested that the Department periodically
update guidance to reflect changes in designated combat zones. Eleven
commenters recommended that the Department clarify that only money made
available to the household should be counted as income, and one
commenter recommended specific procedures for calculating the amount of
money that is available to household members when the service member
keeps some of the special pay.
In considering these comments, FNS consulted with staff at DoD's
DFAS. DFAS explained that there are complexities with combat pay; for
example, combat zones change and some people may receive special pay
when they are not deployed to a combat zone. DFAS recommended issuing
guidance, which the Department intends to do shortly after publication
of this rule. A combat zone is any area that the President of the
United States designates by Executive Order as an area in which the
U.S. Armed Forces are engaging or have engaged in combat. DFAS
recommended that eligibility workers review a service member's LES to
determine what additional pay categories he or she received as a result
of the deployment to the combat zone. In most cases, the amount to be
excluded should be identifiable by comparing the LES reflecting pay
immediately prior to deployment to the LES after deployment. When
questions arise as to specific issues or payment codes, DFAS
recommended that State agency staff contact the service members'
supporting finance office.
The Department is not the Federal agency charged with determining
combat zone designations. DoD, and in particular DFAS, has the
expertise on specific types of pay a service member receives during a
deployment to a combat zone and an understanding of the various issues
that can arise in combat-related pay issues. The language in the
proposed rule reflects the broader language of Section 5(d)(19) of the
Act in that the pay is limited to those special pays listed at Chapter
5 of Title 37 of the United States Code. In addition, the pay must be
received in addition to basic pay, received as a result of deployment,
and not received before the deployment or service in a combat zone. The
Department also wishes to reiterate that only income made available to
the household is considered for the purposes of determining a
household's eligibility and benefit level. The Department believes that
these criteria are sufficiently clear for State agencies to make a
determination on the appropriate income exclusion. For these reasons,
the Department adopts the proposed provision at Sec. 273.9(c)(20)
without change as final and is committed to providing additional
guidance shortly after publication of this rulemaking.
4. Standard Deduction Increase Sec. 273.9(d)(1)(iii)
How did the law change the SNAP standard deduction?
Section 4102 of the FCEA amended Section 5(e) of the Act (7 U.S.C.
2014(e)) to raise the minimum standard deduction from $134 to $144,
effective in FY 2009 for the 48 contiguous States and the District of
Columbia. In addition, it changed the minimum standard deduction
amounts for Alaska, Hawaii, the U.S. Virgin Islands and Guam to $246,
$203, $127 and $289, respectively. Beginning in FY 2010 and each fiscal
year thereafter, FCEA mandated that the minimum standard deduction must
be indexed to inflation. FNS calculates this amount and releases it
annually to State agencies.
How did the Department propose to incorporate this change in the
regulations?
The Department proposed amending the regulations at Sec.
273.9(d)(1)(iii) to incorporate the FCEA changes to the minimum
standard deduction. In addition, the Department proposed a technical
revision to correct the citation at Sec. 273.12(e)(1)(B) from Sec.
273.9(d)(7) to Sec. 273.9(d)(1).
Will the Department adopt the provision as proposed?
Yes. Sixty-two commenters indicated their general approval of the
proposals regarding the standard deduction. No commenters shared
concerns with the proposal.
Does the Department intend to provide any additional guidance on the
standard deduction provision?
Not at this time. While only eight commenters requested guidance on
the standard deduction, 59 commenters noted a problem with timely
updating of standard deduction increases for households participating
under demonstration projects. These commenters requested that the
Department ensure that States with combined application projects (CAPs)
and other demonstration projects make annual updates to the standard
deduction on a timely basis. States are already required to comply with
the terms and conditions of demonstration projects such as CAPs and
make annual updates according to existing SNAP policy.
5. Eliminating the Cap on Dependent Care Expenses Sec. 273.9(d)(4)
What changes did the law make to the dependent care deduction?
Section 4103 of the FCEA amended section 5(e)(3) of the Act (7
U.S.C. 2014(e)(3)) to eliminate the caps on the deduction for dependent
care expenses, thereby allowing eligible households to deduct the full
amount of their dependent care costs. The change was effective October
1, 2008. The law required State agencies to implement the provision for
new households applying for benefits as of that date. For ongoing
households already on the program, the Department encouraged State
agencies to implement the change in the deduction amount as soon as
possible on or after October 1, 2008, on a case-by-case basis, at the
first opportunity to enter the household's case file. Prior to this
change in the law, the caps on the dependent care deduction had not
been adjusted for many years, and the caps no longer reflected the
actual dependent care costs that low-income households pay. Eliminating
the caps enables households to deduct the full costs of dependent care
that are allowable and not already reimbursed by another program, and
results in a benefit increase for some families with high dependent
care costs.
How did the Department propose to revise the deduction for dependent
care costs?
The Department proposed to amend Sec. Sec. 273.9(d)(4) and
273.10(e)(1)(i)(E) to eliminate the caps on dependent care. In
addition, the Department proposed to clarify that expenses for
transporting dependents to and from care, and separate activity fees
charged by the care provider that are required for the care
arrangement, are also deductible as part of the actual costs of care.
The Department also proposed to incorporate into Sec. 273.9(d)(4)
longstanding guidance that limits dependent care to include care for
children through the age of 15 as well
[[Page 2015]]
as incapacitated persons of any age that are in need of dependent care.
The Department invited comments on whether the definition of ``elderly
or disabled'' in 7 CFR 271.2 should be used to define an incapacitated
person. Finally, the Department proposed to restore language that
permits households to deduct dependent care costs if a household member
needs care for a dependent in order to seek employment. A 1989
technical amendment to the regulations had removed the previously
codified provision.
What dependent care issues did commenters focus on?
Overall, commenters supported the Department's proposal to remove
the dependent care caps from the SNAP regulations. Commenters from the
advocacy community strongly supported the proposals to include
transportation costs and activity fees as part of dependent care
expenses, but these commenters opposed the proposed limits based on age
or incapacitation.
What concerns did commenters express about transportation-related
dependent care costs?
Most of the 81 commenters that addressed dependent care changes
enthusiastically supported the proposal to allow households to deduct
transportation costs to and from dependent care facilities. Only one
commenter opposed the proposal. However, some commenters, including
several State agencies, expressed concern about the error-prone nature
of determining transportation costs specifically related to dependent
care and provided several suggestions to help reduce potential errors.
Their suggestions included making transportation costs optional,
permitting the use of standard transportation allowances (either
developed by the Department or by individual States), and allowing
States additional time to implement this provision since it will be new
policy for some States. Concerning the potential that transportation
costs associated with dependent care may be more error-prone, the
Department notes that a number of State agencies have been allowing
households to deduct dependent care related transportation costs for
years and this has not been identified as a major source of quality
control errors.
What is Federal policy on verifying child care costs?
Current regulations do not require verification of dependent care
costs unless the amount being claimed is considered questionable, per
Sec. 273.2(f)(2). However, SNAP regulations at Sec. 273.2(f)(3) also
permit State agencies to verify on a project level basis or a statewide
basis certain eligibility factors that are not otherwise required to be
verified under Federal regulations.
Should State agencies require verification of transportation-related
dependent care costs?
A number of commenters, representing both State agencies and
advocates, argued that States should not have to verify transportation
costs unless questionable. In particular, commenters noted the
difficulty of verifying transportation costs related to dependent care.
Many commenters from the advocacy community urged the Department to
restrict States' use of the optional verification provision at Sec.
273.2(f)(3) for transportation-related dependent care costs. While the
Department understands the concern of these commenters, the Department
declines the request to impose such a restriction. That is, State
agencies have the option to verify transportation costs if
questionable. This option allows States to be responsive to current
information, such as QC data, which may indicate a need for
verification of certain information, whether it be statewide or just in
certain project areas. The provisions of Sec. 273.2(f)(2) require that
questionable items be verified on a case-by-case basis, but States must
establish guidelines for determining what is questionable.
What are activity fees?
As discussed in the preamble to the proposed rule, an activity fee
is an expense associated with a structured care program. The activity
should both be necessary for the dependent to experience the typical
daily activities offered in the care and enable a household member to
be employed, seek employment, or pursue training or education to
prepare for employment. We define activity fees in the final regulatory
text as an activity or other fee associated with the care provided to
the dependent that are necessary for the household to participate in
the care. An activity fee does not have to be mandatory to be
deductible under this provision, but it does need to be specific and
identifiable as with all deductible dependent care costs. Examples of
activity fees that may be deductible as dependent care costs include
the cost of an art class for an after-school program or an adult day
care program, additional equipment fees charged for attending a sports
camp, or the cost of field trips sponsored by summer camps. Activity
fees that are necessary for the dependent to experience the typical
daily activities offered in care should be allowed.
What feedback did commenters provide on activity fees?
In the proposed rule, the Department requested that commenters
provide feedback on the proposal to allow households to deduct
separately identifiable activity fees that are necessary for the
household to participate in or maintain care. The Department stressed
its interest in receiving commenter input on activity fees since State
agencies will be responsible for determining whether specific costs
qualify as allowable activity fees. In particular, we asked commenters
to address whether activity fees are identifiable additional charges
paid by households that can be verified, if more detailed guidance was
needed to determine allowable costs, and what specific conditions
commenters would wish to see in a final rule.
Commenters generally approved of the proposal to allow activity
fees. Some commenters addressed the preamble request for feedback on
whether activity fees are easily identified and verified and whether
more information or guidance is needed on activity fees. Generally,
commenters requested clarification on activity fees without giving
particular feedback. Eight commenters, mostly advocates, responded that
FNS needs to clarify what is meant by activity fees; one State agency
disagreed. Other commenters requested guidance on specific issues, such
as whether activity fees for a home day care are allowable deductions
and when an activity fee is required. One commenter writing on behalf
of a group of eligibility workers indicated that identifying and
verifying activity fees is dependent on State or local dependent care
licensing requirements, and that unregulated or informal dependent care
facilities are unlikely to have documented costs such as activity fees.
The Department did not make any substantive changes due to the overall
general nature of the comments. One technical correction was made. In
the final regulatory text, the Department includes an activity or other
fee associated with dependent care as an allowable dependent care cost.
[[Page 2016]]
What particular other costs may be deducted in caring for a dependent
under the final rule?
Commenters, mostly from the advocacy community, requested
clarification on other allowable costs related to dependent care, such
as subsidy copays (70), payments made to individuals, related or
unrelated, residing with the household but not receiving SNAP benefits
(62), payments for the care of non-household members such as a relative
that the household is responsible for (3), and payments made for
reasonable fees including late fees (14). One commenter suggested there
be a standard deduction for the costs.
Such dependent care costs are allowable if they are necessary for a
household member to search for employment, or to accept or continue
employment, training, or education in preparation for a job (see
Section 5(e)(3) of the Act). For example, although the Department will
not address other specific additional allowable costs in the regulatory
language beyond transportation and activity fees, subsidy co-pays and
late fees or application fees would meet the statutory definition at
section 5(e)(3) of the Act. However, whether other dependent care costs
mentioned by commenters involving household members or non-household
members are allowed requires a closer examination of the specific
situations to determine whether the costs would meet the statutory
definition. If State agencies have questions about specific or complex
situations, we recommend that they work with their FNS Regional Office
to determine whether these costs qualify for the dependent care
deduction.
Commenters also suggested that in order to address a persistent
source of confusion, the final rule should specify that care is
deductible even if provided by a relative as long as that person is not
receiving SNAP benefits as part of the same household as the dependent
receiving care. The Department agrees with this suggestion and has
included it in the final rule.
Are dependent care costs incurred due to job search deductible?
Sixty-nine commenters requested that the final rule explicitly
allow a deduction for dependent care costs incurred by households with
individuals looking for work. The preamble to the proposed rule stated
that the Department intended to reinsert language about the
deductibility of dependent care costs incurred by job seekers into
Sec. 273.9(d)(4), which had been inadvertently dropped in a rulemaking
in 1989. However, despite this stated intention, the proposed
regulatory language at Sec. 273.9(d)(4) did not actually include this
language. We appreciate this observation from commenters and, to
address this oversight, the Department is revising the proposed
provision at Sec. 273.9(d)(4) to allow household members who are
seeking work to deduct dependent care costs.
How did commenters react to the age and incapacitation criteria for
allowable dependent care costs?
Most commenters who addressed the provision (66) opposed both
criteria and did not want to use the regulatory definition of ``elderly
or disabled member'' to define ``incapacitation''; one State agency
disagreed. In particular, commenters from the advocacy community
opposed any restrictions on the dependent care deduction as long as the
household is able to provide documentation if questioned by the State
agency. We received conflicting comments as to the age restriction,
with suggestions that the age be limited to children until their
sixteenth birthday and that the deduction be permitted to children
through their eighteenth birthday.
One commenter noted that households with older teens (16 years of
age and older) may have legitimate dependent care needs not related to
incapacitation, such as enrollment in outside-school care for safety,
truancy, foster care or court-ordered supervision requirements. The
commenter pointed out that 16-year-olds are required to register for
work unless in school half-time or otherwise exempt from registering,
but being required to register for work does not necessarily mean a 16
or 17 year old does not need supervision. The comment went on to argue
that adolescents may need to be enrolled in after-school or summer
programs due to an incapacity or disability. Parents may not have a
government-funded option, or may have to private pay a fee for older
children to participate in adult supervised activities.
Commenters also questioned what the Department meant by
``incapacitation'', which was not defined in the proposed rule.
What does the final rule require relative to limiting dependent care
costs based on age or incapacitation?
While the limit on the use of the dependent care deduction with
regard to age reflects longstanding guidance from 1987, the Department
agrees that there are circumstances where a child 16 or older may still
be in need of supervision and has revised this restriction in the final
rule to include all children under the age of 18.
The other proposed criterion, incapacitation, accounts for persons
who have some physical or mental limitation that requires them to
receive dependent care. This also reflects longstanding guidance,
although it does not appear to have been widely disseminated. The
regulatory definition of disabled is stringent and the proposed
definition would not necessarily capture the breadth of situations. The
Department wishes to clarify that, for the purpose of this provision
only, incapacitation refers to any permanent or temporary condition
that prevents an individual from participating fully in normal
activities, including but not limited to work or school, without
supervision and that requires the care of another person to ensure the
health and safety of the individual, or a condition or situation that
makes a lack of supervision risky to the health and safety of that
individual. By extending dependent care to those who are incapacitated,
the dependent care needs of any SNAP household member expected to
comply with work requirements, or who is working, in training or
education programs, or seeking work, would be allowable as a deduction.
The Department believes that this clarification provides both a
reasonable consideration of the dependent care expenses of older youth
and adults and a measure of protection to the program from abuse.
Allowable medical expenses may be deducted under the excess medical
deduction or the dependent care deduction but not both provisions.
Prior to the removal of the dependent care caps by Section 4103 of the
FCEA, adult dependent care needs were still an allowable deduction
under 273.9(d) as medical expenses. Individuals who meet the specific
legal definition of ``elderly or disabled persons'' at Sec. 271.2 have
been able to deduct dependent care monthly costs over the $35 threshold
of the excess medical deduction as described in Sec. 273.9(d)(3)(x).
This provision allows for the costs of ``maintaining an attendant,
homemaker, home health aide, or child care services, housekeeper,
necessary due to age, infirmity, or illness.'' Allowing a household
with an elderly or adult member with a disability to deduct the entire
monthly dependent care costs under the dependent care deduction
provision rather than the excess medical deduction provides these
households with an additional $35 per month in
[[Page 2017]]
dependent care deductions. The Department is revising the language at
Sec. Sec. 273.9(d)(3)(x) and 273.9(d)(4) to ensure that dependent care
costs are not double counted under both the dependent care deduction
provision and the excess medical deduction provision.
Accordingly, for the reasons noted above, the Department is
revising the provision from the proposed language at Sec. 273.9(d)(4)
to instead specify that dependent care expenses incurred during a job
search are deductible, provided the costs are not already paid by
another source on behalf of the household, and to clarify that the
costs of care provided by a relative may be deducted so long as the
relative providing care is not part of the same household as the child
or dependent adult receiving care. The Department is also revising
proposed Sec. 273.9(d)(4) and current Sec. 273.9(d)(3)(x) to state
that the same dependent care costs for a qualifying household member
who is elderly or has a disability may be deducted under Sec.
273.9(d)(4) or Sec. 273.9(d)(3)(x) but not both.
6. Asset Indexation Sec. 273.8(b)
How did the law change SNAP asset limits?
Section 4104(a) of the FCEA amended Section 5(g) of the Act (7
U.S.C. 2014(g)) to mandate that current asset limits be indexed to
inflation, rounding down to the nearest $250, beginning October 1,
2008.
How did the Department propose to implement this change in SNAP
regulations?
The Department proposed to amend Sec. 273.8(b) to specify that the
asset limits are indexed to inflation as of October 1, 2008, and
adjusted on October 1 of each following year. As mandated by the Act,
the maximum allowable financial resources shall be adjusted and rounded
down to the nearest $250 to reflect changes in the Consumer Price Index
for the All Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor for the 12-month period ending the preceding
June. Each adjustment shall be based on the unrounded amount for the
prior 12-month period.
What comments did the Department receive on this proposal?
Five commenters addressed this provision. Three commenters approved
of the methodology in the proposed rule. One State agency argued that
the provision would be difficult to administer as it only affects
applicants, and suggested that the Department issue guidance to explain
how to handle asset increases for new and ongoing cases. One member of
the public stated that the asset limit for a person with a disability
should be raised to $5,700.
As stated in the proposed rule, the provision will not adversely
affect those currently participating. Participating households have
already met a lower resource limit. For example, when the resource
limit for the elderly or those with a disability increased to $3,250,
effective October 2012, no action was required for ongoing cases of
elderly participants because they already met the existing $3,000
limit. Changes to households' resources will be captured on
recertification consistent with existing program requirements. The
Department has considered the comments and has determined that
additional guidance is not necessary to implement this provision
successfully.
For the reasons noted above, FNS will adopt in this final rule the
provision at Sec. 273.8(b) as proposed, with one technical correction
revising the reference to the inflation adjustment procedure at Sec.
273.8(b)(1) for both households with a member who is elderly or has a
disability and all other households.
7. Exclusion of Retirement Accounts From Resources Sec. 273.8(e)(2)
How did the law change the handling of retirement accounts as a SNAP
resource?
Section 4104(b) amended Section 5(g)(7) of the Act (7 U.S.C.
2014(g)(7)) to exclude from resources any funds in a plan, contract, or
account, described in sections 401(a), 403(a), 403(b), 408, 408A,
457(b), and 501(c)(18) of the Internal Revenue Code (IRC) of 1986 and
the value of funds in a Federal Thrift Savings Plan account as provided
for in 5 U.S.C. 8439.
How did the Department propose to codify this provision in the SNAP
regulations?
The Department proposed to amend SNAP regulations at Sec.
273.8(e)(2) to exclude funds from countable resources if they are in
accounts that fall under any of the sections of the IRC as noted above.
How did commenters react to the proposed provision?
The Department received 85 comments generally approving the
proposed provision; 81 commenters requested that the Department provide
detailed guidance on identifying tax-exempted accounts. Nine of these
commenters recommended that we should work with the IRS to develop
guidelines for identifying the tax-exempted accounts that are
excludable. One commenter believes the Department's generic use of the
term plans such as ``408A plans'' implies that other 408A accounts or
contracts are not excluded. The commenter recommended the Department
amend the regulations to consistently refer to all retirement accounts
excluded under this provision. Two commenters recommended that the
language be more open-ended, allowing for new programs to be added as
Congress approves without the need to do a new rule. The Department
believes that the proposed language regarding 408A accounts is clear
and will adopt the provision as proposed.
Eleven commenters recommended increasing the $1,500 limit on the
value of funeral agreements specified in Sec. 273.8(e)(2), arguing
that the $1,500 limit is outdated and unrealistic. Commenters also
suggested that the Department adjust the limit for inflation by using
the Consumer Price Index for all Urban Consumers. The Department agrees
with the commenters that the value of funeral agreements is out of
date. However, because the original intent of this limit was to conform
SNAP to Aid to Families with Dependent Children policy, which no longer
exists, continuing to have a limit is unnecessary. The final rule
excludes the value of funeral arrangements from SNAP resources
altogether.
While most commenters supported the retirement account provisions
of the proposed rule, several urged the Department to issue guidance on
how to identify the types of retirement accounts on the source
documents that are excludable. One commenter acknowledged the chart the
Department included in August 29, 2008 guidance as an important first
step in helping identify the type of retirement accounts excluded under
this provision (see http://www.fns.usda.gov/snap/questions-and-answers-certification-issues-2008-farm-bill-2). This commenter concluded that
households would need to provide verification that a particular
retirement account is excluded. The Department notes that Federal
regulations do not require the verification of resources. Information
on resources must be verified only if the State agency has opted to
require verification (see Sec. Sec. 273.2(f)(2) and 273.2(f)(3)).
The Department has considered these comments and believes the
policy guidance on exclusion of retirement accounts from resources
provides sufficient guidance in this area and
[[Page 2018]]
detailed and accurate information on which plans are excluded. In view
of this, any additional guidance that the Department may issue in the
future will address new questions or issues as they arise.
In this final rule the Department also made minor technical changes
to streamline the language from the proposed Sec. 273.8(e)(2)(v) on
tax-preferred accounts. Finally, legislation subsequent to this
proposed rule added funds in Achieving a Better Life Experience (ABLE)
program accounts as tax-favored savings accounts for people with
disabilities under IRC Section 529A through the Tax Increase Prevention
Act of 2014, Public Law 113-295. The Department is adding qualified
ABLE programs as excludable resources at Sec. 273.8(e)(2)(ii),
consistent with Department policy issued on April 4, 2016.
8. Exclusion of Education Accounts From Resources Sec. 273.8(e)(20)
How did the law change the handling of education accounts as a SNAP
resource?
Section 4104(c) of the FCEA, which amended Section 5(g)(8) of the
Act (7 U.S.C. 2014(g)(8)), excluded education savings accounts
described in Sections 529 and 520 of the IRC from resources in SNAP
eligibility determinations. The FCEA provided the Secretary with
discretion to exclude other education savings accounts.
How did the Department propose to codify this provision in the SNAP
regulations?
The Department proposed to add a new paragraph Sec. 273.8(e)(20)
to exclude all funds in education savings accounts from resources if
the funds are described in section 529 or section 530 of the IRC.
(Section 529 of the IRC describes qualified tuition programs that allow
a contributor to contribute funds or purchase tuition credits for
qualified education expenses for a designated beneficiary. Section 530
of the IRC describes Coverdell Education Savings Accounts, which are
trusts created to pay the education expenses of the designated
beneficiary.) The Department would also maintain discretion to exclude
other tax-preferred education savings accounts in the future.
How did commenters react to the proposed provision?
Virtually the same number of commenters that provided comments on
the proposed exclusion of qualifying retirement accounts also provided
comments on the exclusion of qualifying education accounts, the only
difference being that one hunger advocate commented only on the
retirement account provision and one nonprofit commented only on the
education account provision. As with the retirement account provision,
all commenters generally approved of the proposal.
Several commenters urged the Department to exercise its discretion
by excluding any future education accounts if the fund is described in
section 529 or section 530 of the IRC, as provided in the FCEA. The
Department cannot anticipate changes in the tax law or predict how
future education savings accounts will be structured. Therefore, the
Department will not amend the regulatory language from the proposed
rule to accommodate this comment.
Commenters urged the Department to issue guidance on how to
identify the type of education accounts excluded under this provision.
The Department appreciates the commenters' recommendation and may
develop guidance outside this rulemaking to assist State agencies
identify qualified tuition programs described in sections 529 and 530
of the IRC.
One commenter suggested the location of the exclusion of retirement
accounts at 7 CFR 273.8(e)(2) while educational accounts are excluded
at 7 CFR 273.8(e)(20) may cause some readers to miss the educational
accounts exclusion. The Department considered the comment but decided
the location of the provisions was not sufficiently critical to
relocate the educational accounts exclusion.
In this final rule the Department also made minor technical changes
to streamline the language from the proposed Sec. 273.8(e)(20)(iii) on
education savings accounts.
9. Expansion and clarification of simplified reporting provisions,
Sec. 273.12(a)
How did the law expand simplified reporting?
Section 4105 of the FCEA removed a restriction in section
6(c)(1)(A) of the Act (7 U.S.C. 2015(c)(1)(A)) that prohibited periodic
reporting for certain households, including homeless, migrant and
seasonal farm workers, and adults who are elderly or have a disability
in households with no earnings. The previous statutory restriction
discouraged State agencies from including these households in their
simplified reporting systems. As amended by the FCEA, Section
6(c)(1)(A) of the Act now limits the frequency of periodic reporting
for homeless and migrant or seasonal farm worker households to every 4
months and for households in which all adult members are elderly or
have disabilities with no earned income to once a year. To be
consistent with current law, regulations published on January 29, 2010
(75 FR 4912), extended simplified reporting to all households that are
certified for at least 4 months.
Did commenters address these proposed changes to simplified reporting?
Yes, the Department received several comments on the proposed
language at Sec. 273.12(d)(6)(iii)(B) pertaining to the due dates for
periodic reports. One commenter suggested using language similar to
that provided for filing monthly reports at Sec. 273.21(h)(1)(i).
Another commenter stated that requiring the periodic report between 4
months and 6 months after certification was too rigid a time period and
risked the possibility of case closure due to procedural reasons. This
commenter also noted that the proposed language on due dates for
receipt of periodic reports is too vague and needs to specify the
period of time for which changes must be reported.
Although these comments are directed to a paragraph about
simplified reporting that the Department had proposed to clarify, the
commenters focused on language that had not actually been updated but
had been included only as part of a proposed reorganization of Sec.
273.12. For this reason, the Department considers many of these
comments to be outside the scope of the proposed rule and will not
amend the proposed text to incorporate these comments. However, the
Department appreciates the feedback and encourages commenters to
resubmit these comments in any future rulemaking that addresses
substantive changes to client reporting systems. As discussed below,
the Department decided to make certain changes in this rule that were
recommended by a commenter that will clarify the regulations.
How did the Department propose to reorganize Sec. 273.12?
The Department proposed to reorganize Sec. 273.12 to improve the
readability of the section and to clarify aspects of current reporting
requirements applicable to the reporting systems covered in this
section of the SNAP regulations. Currently, there are four SNAP client
reporting systems authorized in SNAP regulations. Three of these client
reporting systems--change reporting (also known as incident reporting),
quarterly reporting,
[[Page 2019]]
and simplified reporting--are covered in Sec. 273.12. Monthly
reporting is covered in Sec. 273.21.
The proposed change would have reorganized Sec. 273.12 so that all
provisions applicable to each of the three reporting systems contained
in this section of the regulations (change, quarterly, and simplified)
would be located together for ease of reference.
What comments did the Department receive on the proposed reorganization
of Sec. 273.12?
The Department received comments from 66 individuals and groups
about the proposed changes to this section of SNAP regulations.
Commenters opposed specific provisions within Sec. 273.12, most of
which have been part of codified regulations for years and were not
proposed to be revised. Three commenters addressed the proposed
reorganization, and they were generally critical of the proposal.
Several commenters pointed out that our proposed reorganization was
duplicative because the same provisions that applied to all three
reporting systems were repeated three times in the reorganized text.
They recommended an alternate approach to reorganizing reporting system
provisions and also noted numerous technical errors in the proposed
reorganized text. They recommended that the Department combine all
periodic reporting systems--quarterly, simplified and monthly reporting
systems--into a single subsection and extend the client protections
that they believe to be part of the monthly reporting system to
quarterly and simplified reporting.
Does this final rule include a reorganization of Sec. 273.12?
No. In view of the negative response from commenters, the
Department has decided to exclude the proposed reorganization of client
reporting systems in the final rule. The number and specificity of
comments about codified regulations on client reporting systems
indicates that this is an area of program operations that needs a more
detailed approach to improve clarity over and above a reorganization of
text. Indeed, the complexity of the issues as well as the continuing
evolution of client reporting systems, particularly as State agencies
modernize their eligibility and certification systems, indicate such a
revision warrants a separate rulemaking. Thus, although we believe that
regulations on client reporting systems would benefit from
reorganization, we agree that more substantive changes should be
considered beyond the proposed reorganization.
What changes to Sec. 273.12 are made in the final rule?
The Department will adopt the proposed changes that clarify the
timeframes for periodic reporting by certain households under
simplified reporting in Sec. 273.12(a)(5)(iii)(A) and Sec.
273.12(a)(5)(iii)(B). The Department is also making edits to the
requirement to report changes in vehicle assets at Sec.
273.12(a)(1)(iv) and in liquid resources at Sec. 273.12(a)(1)(v).
These changes are made to clarify that households need not report
changes in vehicles and liquid resources, if those resources are
excluded from the SNAP eligibility determination per Sec. 273.8. In
addition, based on comments, the Department is clarifying the provision
dealing with State action on ``unclear'' information at Sec.
273.12(c)(3), and the requirement regarding the timeframe during which
households must report changes in income at Sec. 273.12(a)(2).
The comments regarding State action on unclear information obtained
by a State focused on data matches, but also apply to any information
that is not considered to be verified upon receipt. The commenter
pointed out that the information obtained may be old, outdated, or
otherwise inaccurate. The commenter suggested that States be prohibited
from requiring households to provide verification as a result of a data
match unless the information is current and suggests the household is
ineligible.
The Department agrees that many data matches that deal with income
are ``old'' because income data is typically reported by quarter and is
not available until a month or two after the end of a quarter. Data
from new hire, employer, and unearned income data bases are generally
more current, but not all data matches will be made prior to the
household's current participation. This is why both the current and
proposed rules treat such information as unclear.
Some income matches may show minor discrepancies with the income
reported by the household, may be based upon data that may be several
months old, and may not have been required to be reported. When this
occurs, State agencies sometimes follow up using a Request for Contact
(RFC). Households that struggle to understand and respond timely to the
State's inquiries can inadvertently lose eligibility, even if the
unclear information was not accurate or would not have affected
eligibility. If a household does not respond to a Request for Contact,
they could ultimately be terminated, have to reapply and experience a
loss of benefits in the process; even if the matching information was
outdated or generally consistent with the information that the
household had already reported to the State. This can clearly create an
access issue for eligible households. It also contributes to
``churning'' where households go on and off the program, losing
benefits in the process and adding to the States' administrative
burdens.
Some data (usually from governmental sources) that provide current
information directly from the specific source may be considered to be
verified upon receipt and can be acted upon without requiring contact
with the household. If a State receives current information that is
verified upon receipt--for example, because it is from a highly
reliable government source--the State must act on that change using the
other information it has in the case file, such as removing income for
an individual no longer in the household. If that action results in a
reduction in benefits, the State must issue a notice of adverse action
that explains why the change was made, so that if a household disagrees
with the underlying data that resulted in the change, the household has
the ability to provide evidence to the State.
In response to comments, under the final rule, States may not
follow up on unclear information with an RFC unless the information the
State receives: (1) Is less than 60 days old; and (2) reflects
information that, if true, was required to be reported under the
applicable reporting requirements in 7 CFR 273.12 for the reporting
system to which the household has been assigned. For example, in the
case of households assigned to simplified reporting, the unclear
information would, if true, place the household's income above 130
percent of the federal poverty line. Or, in the case of households
assigned to change reporting, the information, if true, would result in
an income change that was above the $100 reporting threshold or reflect
a change in household composition.
Under simplified reporting, households are not required to report
changes in income outside of the periodic report or a recertification
action unless the change would result in an income level above the
household's gross income limit as specified at Sec. 273.12(a)(5)(v).
It is inconsistent to tell households they are not required to report
changes in income below this limit and then, based upon a data match,
require that they respond to information (and potentially lose benefits
if they fail to respond) that does
[[Page 2020]]
not appear to exceed their income limit. Therefore, this rule prohibits
States from following up on unclear information that does not meet the
reporting criteria for simplified reporting described in 273.12(a)(5)
until the next recertification action or periodic report.
Likewise, a similar policy will be applied to households assigned
to change reporting. For these households, a State would only follow up
on current, unclear information if the information would have been
required to be reported if correct. It is also inconsistent to tell
households they are not required to report changes in income below $100
and then, based upon a data match, require that they respond to a
request for information (and potentially lose benefits if they fail to
respond) that does not appear to exceed this threshold. Thus, unclear
information that suggests income changed by less than the $100 income
change reporting threshold would not be followed up on. Therefore for
households subject to change reporting, this rule prohibits States from
following up on unclear information that does not meet the criteria for
what must be reported in 272.12(a)(1) until the next recertification
action or periodic report.
For example, at application a household reports that it has earned
income based upon working between 25 and 32 hours a week at $12 an
hour. The State verifies the most recent 30 days of income and
correctly projects about $1,400 a month in earned income over the
certification period based upon working about 27 hours per week. Six
months into the certification, an automated data match indicates that
the income averaged $1,600 per month for a three-month period. Under
the final rule, for a household subject to simplified reporting, a
State may not pursue the matter until the household applies for
recertification since the income does not exceed the gross income limit
and was not required to be reported. For a household subject to change
reporting, a State would pursue the matter with an RFC because this
discrepancy exceeds the $100 reporting threshold.
Under any reporting system, unclear information that indicates that
the information that the State used at the time of certification may
have been incorrect is a different matter. States should consistently
follow up on new information that indicates differences with the
information used at the time of certification as this new information
is not a ``change'' in circumstances subject to reporting and can
represent integrity issues. For example, if a work number data match
shows earnings in the month of certification that a household member
failed to report during the certification process, the State should
follow up with an RFC and potentially file a claim against the
household for any resulting over-issuance if the household does not
provide evidence that the data are incorrect. If the earnings occurred
after certification (and was thus a change in circumstances) and did
not appear to bring the households eligibility into question, in the
case of a household assigned to simplified reporting, the State would
follow up on the information at the next certification action or
periodic report, but not before.
In the case of household composition changes, if the information is
verified upon receipt, the State must take action, regardless of the
household's reporting system. Furthermore, a State may not issue an RFC
based on unclear information that is not current, or is about a change
in household composition that a household would not have been required
to report, if accurate.
There are two types of household composition changes that follow
different procedures. Under the final rule, if a State receives match
information pursuant to a match described in Sec. 272.13 or Sec.
272.14, the State will follow up with a notice of match results and use
the procedures in Sec. 273.12(c)(3)(iii). The Department makes
conforming changes at Sec. 272.13(b)(4) and Sec. 272.14(c)(4) to
reference the verification process in Sec. 273.12(c)(3)(iii).
For households subject to change reporting, if the household fails
to respond to the notice of match results or does respond but fails to
provide sufficient information to clarify its circumstances, the State
agency must issue a notice of adverse action as described in Sec.
273.13 that terminates the case.
For any households subject to reporting requirements other than
change reporting, if the household fails to respond to the notice of
match results or does respond but refuses to provide sufficient
information to clarify its circumstances, the State agency must act on
that change using only the other information it has in the case file,
such as removing an individual that is no longer in the household and
removing his or her income. If benefits are decreased or the household
is to be terminated from program participation, the State agency must
issue a notice of adverse action as described in Sec. 273.13.
The notices of match results must clearly explain what information
is needed from the household and the consequences of failing to respond
to the notice as explained above.
For information that does not meet the above criteria related to
when a State must follow up on unclear information, the State agency
shall not act or follow up on the unclear information until the
household's next recertification action or when its next periodic
report is due. However, a State may follow up with a household to
provide information on a voluntary basis if the information would
result in an increase in benefits, but the State may not take adverse
action if the household does not respond. The final rule also clarifies
that unclear information is information that is not verified or
verified information where the effect on the household's certification
is not apparent. These provisions are in this final rule at Sec.
273.12(c)(3).
FNS will be updating Quality Control (QC) materials as necessary to
ensure that if States follows the requirements laid out in the final
rule and households reports any changes in accordance with their
reporting system's requirements, there is no household or agency error.
Comments were also received regarding some important differences
between the regulatory requirements governing the procedures for
monthly reporting at Sec. 273.21 and periodic reporting in Sec.
273.12(a)(5). The comments pointed out that the monthly reporting
provisions offered certain protections to households that failed to
file required reports on time that were absent from the periodic
reporting provisions. The Department examined these differences and
included changes in this final rule that would better conform the
provisions of the two reporting systems. The additions to the periodic
reporting provisions include a requirement to provide household with a
notice reminding them of the need to submit a periodic report and the
option of reinstating households that provide reports before the end of
the issuance month. The final rule also includes language that codifies
current policy and practice regarding using a combined report form for
SNAP and TANF or Medicaid and that non-applicant household or family
members need not provide SSNs or information about citizenship or
immigration status on periodic report forms.
In addition, based on a comment received, the Department has made a
clarification by referencing the asset limits as indexed to inflation
as described in Sec. 273.8(b). Therefore, with this modification, we
will adopt the proposed clarification on household requirements for
reporting changes of
[[Page 2021]]
the value of liquid assets. This provision is found in this final rule
at Sec. 273.12(a)(1)(v). This final rule also adopts the Department's
proposed language on reporting the acquisition of licensed vehicles at
Sec. 273.12(a)(1)(iv).
The Department also received a comment regarding the need to index
the amounts of change to income that trigger a report for households
assigned to change reporting and the need to make the amount for
general assistance (GA) consistent with unearned income generally. The
Department agrees with this comment and has increased the amount of
change in GA benefits that will require a household to report (in cases
that are not jointly processed.) from $50 to $100. The Department has
also indexed the $100 amounts that trigger household's reporting
requirements to the Consumer Price Index (CPI).
Beginning in FY 2018, and for every fiscal year thereafter, the
dollar amounts will be adjusted and rounded to the nearest $25 to
reflect changes in the CPI for the All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor (for the 12-month
period ending the preceding June).
Finally, based upon a comment received, the Department has
clarified the requirement regarding the timeframe in which State
agencies shall require households to report changes in income. Current
regulations say that the State agency has the flexibility to require
the change in income to be reported as early as 10 days from the date
that the household becomes aware of the change or as late as 10 days
from the date that the household receives the first payment
attributable to the change. This flexibility has created confusion when
a household reports a change in income, but cannot verify the new
amount. If the household waits to report until it has a paycheck in
hand, the time spent waiting for the verification may be beyond the
required timeframe. Therefore, to improve consistency with reportable
changes in income, Sec. 273.12(a)(2) has been modified to require
reporting within 10 days of receipt of the first payment attributable
to the change. Additionally, Sec. 273.12(a)(2) of the final rule
retains language that appeared in the proposed rule at 273.12(b)(6)(ii)
that provides States with the option to require that households report
changes within 10 days of the end of the month in which the change
occurred.
10. Transitional Benefits Alternative (TBA) Sec. Sec. 272.2, 273.26,
273.27, 273.29, 273.32
How did the FCEA change the TBA option?
Section 4106 of the FCEA amended Section 11(s)(1) of the Act to
permit State agencies to provide transitional SNAP benefits to
households with children that cease to receive cash assistance under a
State-funded cash assistance program (SFCA). Prior to this change in
the law, States had the option to provide transitional SNAP benefits
only to households that stopped receiving Federally-funded TANF
assistance.
How did the Department propose to implement this provision?
The Department proposed to amend State plan requirements at Sec.
272.2(d)(1)(xvi)(H) and Subpart H in part 273 of the SNAP regulations,
to specify that a household's eligibility for TBA may be based on the
termination of SFCA in addition to the termination of TANF. The
Department proposed to specify that a household may qualify for an
additional TBA period if the household participates in a SFCA program
that continues after TANF has ended, and then the household
subsequently stops participating in the SFCA. The Department also
proposed that, in administering TBA based on the termination of SFCA,
State agencies would follow the same procedures they currently use to
administer TBA based on termination of TANF. In making this change, we
proposed to add SFCA to the following provisions in Subpart H of part
273:
Sec. 273.26--introductory paragraph and paragraph (a);
Sec. 273.27(a) and (c);
Sec. 273.29(c) and (d); and
Sec. 273.32.
What types of cash assistance are covered under TBA?
Sixty-two commenters requested clarification on the eligibility of
households receiving cash assistance, TANF or State Maintenance of
Effort (MOE) funded assistance, or SFCA. Specifically, they requested
clarification that the exit must be from cash assistance for both TANF
and State-funded benefits programs. One commenter requested examples of
what would be considered a SFCA program.
Section 11(s)(1)(A) of the Act authorizes States to provide TBA for
a household that ceases to receive cash assistance under a State
program funded under Part A of Title IV of the Social Security Act.
TANF is authorized under part A of Title IV of the Social Security Act,
and the cash assistance that eligible low-income households receive may
be funded in part by the TANF Federal grant or by State MOE funds. The
Department is clarifying the description of TANF at Sec. 273.26(a)(1)
as the program authorized under Part A of Title IV of the Social
Security Act, and that Federal cash assistance may include both TANF
and State MOE funds.
Based on the language in Section 11(s)(1)(B) of the Act, the
Department is clarifying in Sec. 273.26(a)(2) that SFCA programs
include State-funded programs that provide cash assistance to families
with children. These SFCA programs are separate and distinct from
State-level programs funded by TANF. An example of an eligible SFCA
program would be a State general assistance program that provides cash
assistance to families with children. Programs that are not intended
for families with children or do not provide a cash benefit are
ineligible under this provision. TBA ensures that households with
children that are leaving cash assistance for either TANF or State-
funded benefits programs can continue to meet their nutritional needs
as they transition from these cash assistance programs to the
workforce.
What about programs funded by local governments?
Ten commenters requested clarification on whether SFCA programs
that rely on local funds would qualify under this provision. Several
commenters noted that some States require local governments to
contribute funding to statewide SFCA programs. FNS guidance issued on
August 29, 2008, (see http://www.fns.usda.gov/questions-and-answers-certification-issues-2008-farm-bill-2) stated that county-funded
programs were not eligible SFCA programs for TBA. While we continue to
hold to this guidance, we agree with commenters that SFCA programs may
include local level funds as part of the funding stream. Thus, the
Department will amend proposed Sec. 273.26(a)(2) to clarify that
eligible SFCA programs that are funded by both State and local funds
provided that the programs are intended to be statewide.
What is the relationship between participation in TANF and SFCA and
receipt of TBA?
Two commenters requested clarification on eligibility for TBA when
participation in the SFCA program is concurrent, sequential or provided
as an alternative to TANF. They also requested that the regulatory
language clarify that State agencies may provide
[[Page 2022]]
TBA for households leaving TANF for SFCA and again when leaving SFCA.
In the August 29, 2008, guidance previously identified, the Department
indicated that a household may receive TBA when leaving TANF and again
when leaving SFCA, resulting in an additional period of TBA eligibility
for the household. If participation in a SFCA program is ending,
whether concurrently with TANF or as an alternative to TANF, the
household would be eligible for one period of TBA up to 5 months, as
described in the State's plan of operation. The Department amended the
proposed Sec. 273.26(b)(3) to reflect that the SFCA program may be
concurrent, sequential, or alternative to TANF.
What issues raised by commenters on TBA are considered outside of the
scope of the rule?
Commenters raised a number of questions or asked for clarifications
on issues that were not addressed in the proposed rule. Such comments
addressed aspects of TBA that the Department did not propose to revise.
The Department included the existing TBA regulations in the proposed
rule in order to incorporate the change in the law with regard to SFCA
programs. The Department did not propose amendments to the basic
provisions of TBA that are codified in the SNAP regulations. The more
frequently mentioned comments included requests for clarification that
households with partial sanctions in TANF or SFCA may still receive TBA
(63 commenters) and requests for further explanation on the issue of
TBA being a frozen benefit that may not be changed except in two
instances (62 commenters). For this reason, we consider such comments
to be outside the scope of the proposed rule because they did not
specifically address issues related to the proposal to add of SFCA
programs to the TBA regulations.
We appreciate the effort that commenters put into providing these
comments. As with the comments received on client reporting systems, it
appears that commenters, particularly those in the advocacy community,
have noted a number of TBA-related issues that could benefit from
additional guidance. The Department appreciates the thoughts and
feedback on TBA issues, and encourages commenters to re-submit these
suggestions in future rulemakings.
Were any additional changes made based upon the comments received on
TBA?
Yes, one commenter pointed out that the regulations should be
revised to clarify that SNAP households should be able to shift from
the transitional benefit period back to the regular SNAP program based
on a joint TANF/SNAP application. The commenter believed that the TANF
application should be treated as a joint TANF/SNAP application,
consistent with current 7 CFR 273.2(j). As required for all SNAP non-
expedited applications, the State would have 30 days to determine the
household's SNAP eligibility using information from the new
application. Consistent with these changes, the commenter suggested
that the TBA notice be revised to state that households that reapply
for TANF cash assistance will be asked to reapply for SNAP at the same
time. The commenter also recommended revising the regulations to
acknowledge that the State agency may adjust the SNAP benefit to
account for automatic annual changes in benefit rules, such as the
annual cost of living, standard deduction adjustments and excess
shelter deduction cap adjustments. The Department agrees that a
revision to the final regulation is needed to clarify this process and
made the necessary changes.
The Department is also making minor changes to clarify 273.26(b)
and (d) to add MOE and clarify that SFCA may be received concurrently,
sequentially or alternatively to TANF, based upon comments. In
addition, the Department is amending Sec. 273.27 to again include the
State MOE funds and clarify that States need not obtain additional
information from household prior to their participation in TBA.
Finally, based on a comment that the Department is amending Sec.
273.29 and Sec. 273.32 to clarify that TBA households applying for
TANF or SFCA benefits shall be jointly processed for SNAP benefits.
One commenter noted that while 40 States have sanction policies
that terminate cash assistance because of noncompliance, it is also
common for States to reduce the cash assistance benefit amount by
removing the individually sanctioned household member. The Department
appreciates this insight and is altering the regulatory language to
clarify that when a household has a member who has been sanctioned, the
remaining eligible household members may receive transitional SNAP
benefits if the cash assistance ends for another reason.
11. Increasing Benefits for Small Households: Minimum Benefit Increase
Sec. Sec. 271.2 and 273.10(e)(2)(ii)(C)
What is the legal basis for raising the minimum benefit?
The Food Stamp Act of 1977 established a monthly minimum benefit of
$10 per month for one-person and two-person households, and the amount
has not been adjusted since that time. Section 4107 of the FCEA amended
section 8(a) of the Act (7 U.S.C. 2017(a)) to increase the minimum
benefit amount for one-person and two-person households from $10 to
eight percent of the maximum allotment for a one-person household,
rounded to the nearest whole dollar.
What did the Department propose regarding the minimum benefit?
The Department proposed to amend the regulations at Sec.
273.10(e)(2)(ii)(C) to incorporate the FCEA provision indexing the
minimum benefit amount to eight percent of the maximum allotment for a
one-person household, rounded to the nearest whole dollar. In addition,
the Department proposed to update the definition of minimum benefit in
Sec. 271.2 to remove the reference to the former minimum benefit
amount of $10 and specify that the minimum benefit shall be based on
the provisions of Sec. 273.10.
How did the public respond to the minimum benefit proposal?
Sixty-one commenters generally approved of the proposal regarding
the minimum benefit. Fifty-eight commenters suggested that the
Department ensure that States with combined application projects (CAPs)
and other demonstration projects make annual updates on a timely basis.
Eight commenters requested general guidance. One individual generally
agreed with the proposal, but suggested that the minimum benefit amount
should be $50.
The Department appreciates commenters' feedback. The FCEA required
the increase of the minimum benefit and the Department made a
straightforward update to the regulations to implement it. Existing
procedures and requirements surrounding the minimum benefit remain. The
Department is adopting the provisions as proposed. Any additional
guidance will be provided outside of the rulemaking process.
[[Page 2023]]
12. Employment and Training (E&T): Funding for Job Retention Services,
Sec. 273.7(e)(1)
What changes did the Department propose to make to the E&T program?
The Department proposed to implement Section 4108 of the FCEA,
which amended Section 6(d)(4) of the Act, to add job retention services
of up to 90 days as an allowable E&T component. The Department proposed
to revise the SNAP regulations at Sec. 273.7(e)(1) to incorporate this
change. We received 64 comments in total on this provision.
Will the Department permit State agencies to determine when the 90 days
of services start?
The Department received 61 comments requesting that the rule
specify State agency discretion on the start date of job retention
services. The Department agrees that individual circumstances may
warrant job retention services that begin at various times, such as on
the day a job offer is accepted, the day the individual reports the
information to his or her E&T case manager, the first day of the job,
or other time based on the availability and type of services.
Therefore, the Department will permit State agencies to identify when
the 90 days of job retention services start.
The Department also received one comment requesting that job
retention services be available to an E&T participant for each new job
the individual obtains. The Act provides for a period of not more than
90 days of job retention services after an individual who received E&T
services gains employment. For example, if an individual gains
employment through a new job, receives 90 days of job retention
services, and then later finds a different job, he or she would
generally not be eligible for a new 90-day period of job retention
services. However, if the individual re-engaged in E&T services and
then gains new employment, he or she would be eligible for additional
job retention services. For example, there may be circumstances where
an individual participates in job search, gains employment and receives
90 days of job retention services. This individual may later reengage
with E&T after a job loss to search for work or obtain career or
technical training to find a better job and could qualify for an
additional 90 days of job retention services. The Department does not
want to limit State agencies in helping clients obtain regular
employment with good wages and career progression. We understand that
State agencies are in a better position to determine when job retention
services might be appropriate for a new hire and the Department is
allowing for State agency flexibility for this issue in Sec.
273.7(e)(1)(viii).
Because job retention services are an E&T component, they need to
be connected to receipt of SNAP even as we recognize that they may not
begin until after a job commences and, in some cases, a household has
left the SNAP program. The Department is taking this opportunity to
clarify that an individual must be receiving SNAP benefits in the month
of or the month prior to beginning job retention services. The
Department is amending Sec. 273.7(e)(1)(viii) in this final rule to
this effect.
Are job retention services available to those who previously received
E&T services, whether or not it led to employment?
The Department received one comment asking whether job retention
services would be available to E&T participants if the components they
participated in did not lead directly to employment. The Act provides
that these services intend to ensure job retention after an individual
who received E&T services gains employment. The Act does not require a
link between the E&T activity and employment itself. Additionally, we
recognize that it may be difficult to establish a link between
participation in an E&T component and gained employment when there is a
gap in services or a component does not have a direct link to a job.
Therefore, the Department is not requiring evidence of a link between
an E&T component and job entry in order for the State agency to provide
job retention services. State agencies have discretion on the amount of
time that may pass between an E&T component and start of job retention
services. However, this rule does require that the household must have
been receiving SNAP in the month of or the month prior to beginning job
retention services.
Are job retention services limited to those who leave the program due
to increased earnings?
The Department received 62 comments stating that the proposed rule
unnecessarily limited job retention services to individuals losing SNAP
benefits as a result of increased earnings. The comments pointed out
that there may be circumstances such as where someone leaving SNAP
would not have increased earnings but would need job retention
services, such as an individual who took a job with reduced hours at a
good wage with the hope that hours would increase or a lower-paying job
with the opportunity for quick promotion.
The Department agrees that there may be circumstances where job
retention services are appropriate for households leaving SNAP.
However, there may also be circumstances where an individual or
household is leaving SNAP due to an intentional program violation or
failure to comply with SNAP work requirements without good cause.
Therefore, the Department is clarifying in Sec. 273.7(e)(1)(viii) that
State agencies may extend job retention services to individuals who
participated in another E&T component and are leaving SNAP for any
reason other than a disqualification. As provided in this rule, the
State agency may not disqualify an individual who refuses or fails to
comply with job retention services.
The Department is taking this opportunity to clarify that an
individual need not complete an E&T component in order to start
receiving job retention services. For example, an individual assigned
to two months of job search may find a job after two weeks and would
then be eligible for job retention services.
Does the 90-day limit apply to case management?
The Department received one comment asking for clarification on the
limits of case management. State agencies may provide E&T case
management to participants as long as a participant is engaged in an
E&T program or component. Since job retention is an E&T component,
individuals receiving job retention services are eligible for case
management up to the 90-day limit.
Are child care and transportation allowable participant reimbursements
under a job retention component?
The Department received 60 comments requesting that child care and
transportation be included as allowable participant reimbursements
under a job retention component. The Department omitted transportation
and dependent care from the list of allowable services and reimbursable
participation costs in the preamble to the proposed rule because
Section (6)(d)(4)(I) of the Act specifically provides for
transportation and dependent care as allowable E&T participant
reimbursements. The Department is clarifying that transportation and
dependent care are allowable participant reimbursements under the job
retention component,
[[Page 2024]]
including for individuals no longer receiving SNAP.
13. Application Signature Systems Sec. Sec. 273.2(c)(1), 273.2(c)(3)
and 273.2(c)(7)
What is the statutory authority for the proposed changes regarding
signatures?
Section 11(e)(2)(C)(i) of the Act allows for various types of
signatures. Section 4119 of FCEA amended section 11(e) of the Act (7
U.S.C. 2020(e)) to permit a State agency to accept telephonic
signatures, subject to certain conditions. These conditions, described
at Section 11(e)(1)(C)(ii) of the Act, require that a State agency:
Record for future reference the verbal assent of the
household member and the information to which assent was given;
Include effective safeguards against impersonation,
identity theft and invasions of privacy;
Not deny or interfere with the household's right to apply
in writing;
Promptly provide to the applicant a written copy of the
complete application with instructions for a simple procedure to allow
correction of any errors or omission;
Comply with all statutory provisions for processing
applications described at Section 11(e)(1)(B) of the Act;
Satisfy all requirements in the Act and other laws
applicable to SNAP and that the date of the verbal assent is considered
to be the date the application is signed; and
Comply with all other standards established by the
Secretary.
In the proposed rule, the Department used the term ``spoken
signature'' to include means of assenting to information other than
written or electronic signatures, with the most obvious example being
an interactive interview with a SNAP household over the telephone.
However, the term ``spoken signature'' has resulted in confusion and
questions as to whether a ``spoken signature'' and a ``telephonic
signature'' is interchangeable.
To clarify this confusion, the Department uses the term
``telephonic signature'' in this final rule, which more directly
reflects the statutory language. The language in Section 4119 refers to
the option for a ``telephonic signature'', and lays out requirements
for a system to capture telephonic signatures allowing households to
sign an application through a recorded verbal assent over the
telephone. Although the Department no longer uses the term ``spoken
signature'' in this final rule, an in-office spoken signature may be
necessary in some circumstances, for example, as a reasonable
accommodation for an applicant with disabilities.
How did the Department propose to implement the telephonic signature
option?
To implement the statutory provisions for telephonic signatures,
the Department proposed new Sec. 273.2(c)(7), which addressed specific
types of application signatures. As proposed at Sec.
273.2(c)(7)(viii), a State agency opting to accept telephonic
signatures must:
Specify in its State plan that it has chosen this option;
Use terms that clearly indicate to the household how to
provide assent or agreement during an interview, such as ``yes'',
``no'', ``I agree'' or ``I do not agree'';
Promptly provide to the applicant a written copy of the
completed application, with instructions for a simple procedure for
correcting any errors or omissions;
Allow the household at least 10 calendar days to return
the corrections; and
Use the date of the telephonic signature as the date of
the application.
What other changes were proposed for application signature systems?
The Department proposed a number of requirements for application
signature systems described in proposed Sec. 273.2(c)(7), both to
implement the FCEA and to clarify additional standards for such
systems. First, the Department proposed to extend certain statutory
criteria for telephonic signatures to all types of application
signatures, namely the requirements to: Record for future reference the
information and the assent to the information on the application;
include effective safeguards against impersonation identity theft, and
invasions of privacy; not interfere with a household's right to apply
in writing; provide applicants a written copy of the completed
application with instructions for a simple procedure to correct errors
or omissions (excluding applications with a written signature); comply
with SNAP regulations for bilingual requirements; and satisfy all
applicable statutory requirements for SNAP applications with the date
of verbal consent by the household considered to be the date of the
application for all purposes.
Second, the Department proposed to specify unique criteria relevant
to certain types of signatures. The signature types identified in the
proposed rule were handwritten signatures (which may include signing
with a mark or ``X''), electronic signatures, telephonic signatures,
and gestured signatures. As explained in the preamble to the proposed
rule, the Department included gestured signatures to provide those with
hearing disabilities equal access to SNAP. As a State option under SNAP
regulations, a gestured or visual signature may provide an alternative
to a handwritten signature and may be an efficient means of giving
assent as part of an interactive interview. Gestured signatures to
indicate ``yes'' or ``I agree'' would include those in American Sign
Language, Manually Coded English, or similar language or method during
an interview. Except for handwritten signatures, the Department
proposed that applicants have at least 10 calendar days to review and
correct any errors or omissions to applications with electronic,
telephonic or gestured signatures. The Department proposed that States
have the option to accept unwritten signatures and written signatures
using a mark or ``X'', but are not required to do so.
Third, the Department proposed amendments to the regulations so
that the provisions would also apply to applications submitted at
recertification (Sec. 273.14(b)(2)) and to monthly, quarterly, and
simplified periodic reports (Sec. Sec. 273.21(h)(2)(vi),
273.12(c)(5)(ii)(F), and 273.12(d)(5)(ii)(F), respectively) required to
be submitted under the client periodic reporting systems. Periodic
reporting forms are functionally equivalent to applications in that
they are clients' signed statements of circumstances. Since unwritten
signatures suffice for applications and reapplications, the Department
proposed that unwritten signatures should also suffice for periodic
reporting forms. However, as with applications, a State agency is not
required to accept unwritten signatures. The Department did not propose
to extend this option to change reporting forms, since there is no
Federal requirement that a household assigned to a change reporting
system must sign the report form.
Did the Department propose any other changes to the application
process?
Yes. As part of a general updating of application submission
procedures and availability of application provisions, we proposed to
reorganize Sec. Sec. 273.2(c)(1) and 273.2(c)(3). In doing so, the
Department reaffirmed certain fundamental aspects to the SNAP
application process, including the household's right to file an
application
[[Page 2025]]
the same day it contacts the SNAP office during office hours without an
interview, and with only a name of a responsible member of the
household or the authorized representative, address and signature. The
Department also proposed to specify that households have a right to
apply or reapply in writing, and the State agency must not interfere
with this right. The Department also proposed at Sec. 273.2(c)(1)(v)
that the State agency must give all households who file non-paper
applications a copy of the information provided and that these
households must have 10 days to review the information that has been
recorded electronically. Under proposed Sec. 273.2(c)(3)(ii), the
Department specified that the State agency must make paper application
forms readily accessible and available even if the State agency also
accepts application through electronic means.
The Department also proposed to add a new provision for application
forms at Sec. 273.2(b)(1)(x) to specify that an application form may
be an on-line document, a recorded telephonic conversation, or a
recorded visually signed conversation.
What did commenters say about gestured signatures?
Many commenters (55) approved of the Department's proposal to add
gestured signatures as an optional type of signature for SNAP
applications. The Department received no negative comments on this
proposal, and the final rule retains the provision, with some
modifications, as an optional signature type, described at Sec.
273.2(c)(7)(ix). Those modifications include specifying that a State
agency that chooses to accept gestured signatures must specify it has
taken this option in its State plan of operation, and eliminating the
ten-day period for households to return corrections to the State
agency.
How did commenters respond to the State option to establish telephonic
signature systems?
Most commenters supported the Department's inclusion of non-
traditional signatures for applications, including telephonic
signatures, but several requested clarifications with regard to
telephonic signature systems. One commenter considered the proposed
rule unclear on how to submit applications as recorded oral
conversations, and requested that the Department clearly specify that
applications may be made by telephone.
The Department wishes to distinguish between applying for SNAP
benefits by telephone and providing a telephonic signature to complete
an application. Telephonic signatures are not limited to telephonic
applications and can be used to sign any application regardless of the
means by which the application is completed (e.g., online,
telephonically, paper).
The FCEA requires that these systems record ``the verbal assent of
the household member and the information to which assent was given.''
For a signature to be considered a telephonic signature, the system
must make an audio recording over the telephone of the household's
verbal assent as well as a summary of what the household is agreeing
to, but not the entire telephone conversation. The Department envisions
that an acceptable summary could include an eligibility worker's
reiteration of the information the household provided during the call,
such as updates to income, household composition, or deductions. This
definition is not met if State or local office staff attest to securing
the verbal assent over the telephone without actually making an audio
recording over the telephone of the household member's attestation. The
Department encourages States to consult with their legal counsel to
ensure that the captured telephonic signature meets the State's legal
definition of a signature and the recorded portion constitutes
``assent'' under that definition. In the final rule, the Department
clarifies this requirement at Sec. 273.2(c)(7)(viii)(B).
To be a valid telephonic signature, the recorded verbal assent must
be linked to the application itself. This is to ensure the State agency
has ready access to the audio file containing the recorded verbal
assent. Telephonic signature files must be retrievable and must also
comply with Federal records retention requirements in 7 CFR 272.1(f).
The Department is revising the proposed regulations at Sec.
273.2(c)(7)(viii)(C) to make this clear. The Department notes that it
is also revising the proposed regulations for handwritten, gestured and
telephonic signatures, for clarity and consistency, to indicate that
the date of application is the date the application is received by the
State agency, and that if the application is received outside normal
business hours the State agency will consider the date of application
the next business day.
Two commenters noted that an application should be treated as filed
whenever a household leaves it with a community partner or similar
entity charged by the State agency to assist with application
processing. These commenters emphasized that households submitting
applications at locations other than traditional local SNAP offices
should not have their benefits delayed, and treating the application as
filed when it is submitted to the community partner would help to
address this problem.
In accordance with 273.2(c)(1), the date of the application is the
date it is received by the State agency. However, a State may enter
into a formal agreement, such as a contract or Memorandum of
Understanding (MOU), in which a third-party accepts applications on
behalf of the State agency. Such an agreement may stipulate that the
date the application is received by the third-party is the date of the
application. FNS does not have the authority to enforce program time
requirements on entities other than State SNAP agencies. Organizations
that fail to deliver the applications on the same date they receive
them from a household are delaying the household's filing date and,
potentially, the timeframe in which they will begin to receive
assistance. Organizations or entities informally engaged in application
assistance who do not have a contract or MOU with the State should make
every effort to submit applications timely to the State agency so that
the filing date will be as early as possible and benefits will not be
delayed.
State agencies that choose to implement a telephonic signature
process with a contracted third-party, or a third-party acting on
behalf of the State agency through a MOU, such as a community-based
organization, must ensure the records in the contractor's possession
are readily accessible. Also, the State must ensure that the electronic
signature files are readily accessible.
In addition, State agencies using a third party should be aware of
the following:
State agencies must follow the appropriate merit system
personnel policy.
Regardless of where the telephonic signature file is
stored, the State owns the signature and any other data produced under
contract by a third-party entity using Federal funding.
Telephonic signature files and related data stored on
third-party hardware must be transferred to the State agency in a
usable format should the third party relationship with the State agency
terminate. The third-party cannot retain these records.
FNS recommends that the State agency include appropriate
language in their memorandums of understanding or contractual
agreements to ensure the third-party is in compliance with program
requirements.
[[Page 2026]]
Commenters also requested various clarifications as to the filing
date. These include requests to require the automatic recording of the
date for applications filed electronically, that the filing date should
be the day received by the office during business hours, to allow
States to use a statewide definition of receipt of applications, and to
allow applications for pre-released institutionalized applicants to be
the actual date submitted (not when released). FNS finds that existing
program requirements in the regulations and policy memos provide
sufficient guidance on these matters.
One commenter spoke to the proposed criteria for effective
safeguards against impersonation, identity theft and invasions of
privacy for telephonic signature systems, and requested more
information on the nature of these safeguards and how states might
implement them. As discussed further below, FNS expects States to
develop a telephonic signature process that includes necessary
safeguards against impersonation, identity theft, and invasions of
privacy, as is required by the Act. States have discretion to determine
those safeguards and implement them effectively.
What did commenters say about the optional nature of unwritten
signatures?
Four commenters disagreed with the Department's proposal at Sec.
273.2(c)(7)(iii) that it be optional for States to accept unwritten
signatures, arguing that States should be required to accept unwritten
signatures unless an alternative exists that provides comparable access
to program for people with disabilities.
Relatedly, one commenter stressed that the Department should
emphasize that handwritten signatures should always be counted as a
signature. The Department agrees. Handwritten signatures transmitted
electronically must still be considered a signature for program
purposes. For example, signatures received by facsimile are not
unwritten signatures.
Section 11(e) of the Act allows telephonic signatures as an option,
not a requirement. As stated in the preamble to the proposed rule, the
Department has consistently recommended that State agencies consult
legal counsel to verify that verbal assent constitutes a valid
signature pursuant to State law. Following the statutory option for
telephonic signatures, the Department also proposed to give States the
option to accept or not accept other types of unwritten signatures,
such as gestured or electronic signatures. We also note that for those
States choosing not to take the option, unwritten or alternative
signatures may still be required for some applicants with disabilities
as a reasonable accommodation under Section 504 of the Rehabilitation
Act or in compliance with other civil rights laws. These unwritten or
alternative signatures that are not part of a formal State option must
still meet the requirements of the final rule. For these reasons, the
Department will adopt the provision proposed at Sec. 273.2(c)(7)(iii)
without change except for a revision to remove the reference including
faxed signatures as unwritten signatures at 273.2(c)(7)(iii)(A), and to
add clarifying language regarding compliance with civil rights laws.
What did commenters say about giving households 10 days to review and
correct non-paper applications?
A total of 13 commenters, including advocates, State agencies, and
related associations, opposed the 10-day review period for non-paper
applications (i.e., electronically submitted applications and
applications with telephonic or gestured signatures). One State agency
commented that the 10-day review period makes no sense for online
applications, and stated that a regulation already exists for handling
changes between application filing and certification. Another State
agency objected to extending the opportunity to review and change
information on a signed application for households who complete the
application themselves, such as an online application that the
households signs electronically and submits, and that for applications
submitted by households (either electronic or paper), the interview is
the point when information on the application can be corrected or
clarified. This commenter recommended that the Department keep the
post-signature review opportunity only for households that are signing
by voice or gesture, and allow State agencies to determine the process
by which these households will be able to review and provide
corrections to their applications.
Sixty-two commenters requested clarification on the 10-day review
period, stressing that the application process must not be delayed
during the time period and that all applications must meet normal/
expedited processing times. Most of these commenters said failure to
return the form should not result in an intentional program violation
(IPV), other sanctions or termination. Four commenters asked for
clarification that one signature is sufficient.
Does the final rule keep the 10-day review period?
No. The Department finds commenters' objections to the proposed 10-
day review period persuasive. The Department agrees that the 10-day
review proposal would have caused unnecessary action and delay, both
for State agencies and applicants. Accordingly, we have dropped
proposed language at Sec. Sec. 273.2(c)(1)(v)(A), 273.2(c)(7)(vii)(D),
273.2(c)(7)(viii)(D), and 273.2(c)(7)(ix)(D).
What types of applications retain the post-signature review and
correction process?
The final rule retains the post-signature review and correction
process for applications with telephonic or gestured signatures. It is
statutorily required for applications with telephonic signatures per
Section 11(e)(2)(C)(iii)(IV) of the Act, and the Department continues
to believe that this process is also appropriate for applications with
gestured signatures because these applications are anticipated to be
completed initially by a SNAP eligibility worker who will record
information provided by the household during an interactive interview.
The Department agrees that a post-signature review and correction
process is unnecessary for households that have independently entered
information on the application and submitted an electronically-signed
application. Accordingly, this language is removed from Sec. Sec.
273.2(c)(1)(v)(A) and 273.2(c)(7)(vii)(D) is removed entirely.
In response to other commenter requests for clarification, the
Department wishes to clarify that the application process must not be
delayed as a result of the State procedure for household review and
correction of information on applications, and that all applications
must meet normal/expedited processing times. In addition, only one
signature is necessary to be considered a complete application,
provided that the signature is provided in a form that is accepted by
the State agency. Finally, the household's failure to return the copy
of the application or the summarized information used by the State
agency to determine eligibility and benefit levels must not result in
an IPV, other sanction, or termination.
Additionally, the Department is making technical corrections to
this section. First, the Department is removing several references in
this section to ``paper or electronic'' and combining all references to
the filing date of the application in
[[Page 2027]]
Sec. 273.2(c)(1)(iv). Next, the Department has reorganized sections
Sec. 273.2(e)(2)(i) and Sec. 273.2(e)(2)(ii) and added Sec.
273.2(e)(2)(iii) and Sec. 273.2(e)(2)(iv). The paragraphs have been
renumbered accordingly.
What did commenters say about the availability of paper applications?
Eight commenters agreed with the Department's proposal that paper
application forms must always be available and that States must not
interfere with a household's right to file a written application. These
commenters further stated that States should affirmatively encourage
the filing of paper applications and that the regulations should
prohibit States from suggesting to households disadvantages of filing a
paper application. The Department understands the concern of commenters
that certain low-income populations, such as the elderly, those with a
disability and individuals with limited English proficiency, may be
discouraged from applying for benefits as States move to an
increasingly electronic environment for applying for SNAP benefits, but
the Department also believes that the proposed rule language strongly
supports household access to paper application and the right to apply
in writing. Accordingly, the final rule retains the language proposed
at Sec. Sec. 273.2(c)(1)(ii) and 273.2(c)(3)(ii).
The Department notes a clarification in this final rule at Sec.
273.2(c)(3) that, when filing an application, an applicant must be able
to file the application with only a name, address and signature. The
existing language had suggested that the process begins with name,
address and signature. Technological advances have led to more States
using methods other than traditional paper applications for SNAP. We
want to emphasize that, regardless of the method used, an applicant's
filing date is preserved when name, address and signature is received
by the State agency and that all State application procedures--
including, but not limited to, paper, online, and telephone processes--
must afford applicants the ability to submit an application with just
these elements and must make it readily apparent to applicants that
this option is available to them. The Department believes it is
important to make clear, consistent with longstanding policy, that once
a household submits an application with name, address and signature,
that application is filed as of the date it is received by the State
agency.
Which applicants should receive a copy of their non-paper application?
The Department proposed at Sec. 273.2(b)(1) and Sec.
273.2(c)(1)(v)(B) to require State agencies to provide households with
a paper copy of a non-paper application. This is an extension of the
current provision at Sec. 273.2(c)(1), which requires that State
agencies must provide applicants with a copy of their applications
filed on-line at the SNAP local office. Three State agencies disagreed
with the proposed extension of the application copy requirement.
However, 64 commenters approved of the Department's proposal and
recommended that States be required to provide households with a copy
of their filed applications, whether paper or non-paper. Commenters
also requested clarification on what is meant by ``completed
application''. A large number of commenters (65) suggested that in lieu
of sending the actual completed application, it would be acceptable for
the State agency to send the household a list of information provided
by the client and recorded by the State agency.
Commenters also expressed some confusion about the timing of
receipt of the completed application. Some commenters suggested that,
in addition to the post-signature review and correction process, State
agencies should also provide a copy of the information that the State
agency used to determine eligibility and benefits. This second copy of
the ``completed application'' would be sent with the notice of
eligibility or denial.
Since the 2008 publication of the proposed rule, the Department has
learned from multiple State agencies that the previously existing
requirement to give households a copy of a completed application filed
on-line at SNAP local office has resulted in a significant waste of
paper because applicants often leave those copies, which include
confidential personal information, at the local office. In response to
these concerns, the Department has approved a waiver since 2011 to
allow the State agency to offer households a copy of an application
completed on-line at the local office. Under this waiver, the local
office is obligated to provide a paper copy of an application only if
the applicant indicates a desire to receive it after it is offered to
them. Currently, almost one third of the State agencies are approved to
operate this waiver.
In the proposed rule, the Department intended that the copy of the
completed application would be part of the post-signature review and
correction process that had been proposed for all non-paper
applications. In order to ensure that all applicants have an
opportunity to review the information submitted in their application
for benefits, and based on the comments received, in the final rule the
Department requires State agencies to offer all households a copy of
the completed application. At the option of the household, the copy of
the completed application may be in electronic form. The State agency
will have the discretion to determine the most efficient means to offer
this option, for example, by adding a question on the application as to
the applicant's preference. This procedure will make the need for the
above-mentioned waiver obsolete.
In view of the above considerations, the Department will not adopt
the proposed provisions at Sec. 273.2(b)(1)(x) and Sec.
273.2(c)(1)(v)(B) to require State agencies to provide households a
copy of completed non-paper applications. Instead, the Department is
revising and redesignating the regulations at Sec. 273.2(c)(1)(v) to
require that State agencies must offer to provide copies of all
applications completed by households regardless of the method by which
the applicant submitted the application. The regulation will also
specify that the household will have the option to receive the copy of
their completed application in electronic format. Because State
agencies may have logistical updates to their application process to
implement this provision, State agencies will have one year from the
date this rule is published to implement this requirement.
The Department is also clarifying that State agencies opting to
accept telephonic or gestured signatures may determine the form of the
completed application that is sent to these households. As stated in
the preamble to the proposed rule, the State agency need not provide a
transcript of the recorded application, but it must include the
information that the State agency will use to determine eligibility and
benefits. Thus, a completed application may be a list of information
provided by the household or an exact copy of the application
submitted. States will have the flexibility to provide information to
households in a way most efficient for them. As with other information
forwarded to households by State agencies, State agencies must be in
compliance with all Federal laws regarding accessibility for people
with disabilities. Since utilizing telephonic or gestured signatures is
optional, the Department believes that State agencies taking this
option are in the best position to determine the form
[[Page 2028]]
of the completed application that is sent to households. The Department
anticipates that information will likely be digitized, and that it will
likely not be that difficult to generate the information in a format
understandable to the household.
What did commenters say about the proposal to allow telephonic and
gestured signatures for periodic reports?
Most commenters (63 out of 66) who addressed this issue opposed
this proposal, and several indicated a desire for the removal of the
signature requirement on periodic reports. Their opposition reflects a
misunderstanding, however, about the current requirements for periodic
reports. The signature requirement for periodic reports is not a new
requirement. As stated in the preamble to the proposed rule, the
periodic report is similar to an application in that it includes a
household's statement of its circumstances. The signature requirement
for periodic reports is found in current regulations at Sec.
273.12(b)(2)(vii) for quarterly and simplified reporting systems, and
at Sec. 273.21(h)(2)(vi) for monthly periodic reports. The household's
signature on the periodic reports acknowledges an understanding that
the information provided in the report may result in the termination or
reduction of benefits. The proposed revisions to these paragraphs
simply extended to State agencies the option to allow households filing
periodic reports to provide a telephonic or gestured signature if the
State has opted to accept these types of signatures. This final rule
retains these proposed revisions. That is, State agencies electing to
use telephonic or gestured signatures may also allow the use of these
signatures for periodic reports.
How do States safeguard signature systems?
Five commenters, including three State agencies, requested guidance
on how States can safeguard all signature systems against
impersonation, identity theft and invasions of privacy. States must
ensure privacy is maintained according to current requirements. As
stated in the preamble to the proposed rule, the Department does not
think that this requirement will be a significant burden to State
agencies. State agencies already protect households' privacy by
following the regulations on the confidentiality of households'
records, per Sec. 272.1(c), and by prudent administrative practices.
If the Department obtains or develops any more information on technical
or other means of compliance, we will issue guidance outside of the
rulemaking process.
Will the Department add additional language regarding compliance with
civil rights laws?
Five commenters stated that application processing regulations
should be in compliance with legislation protecting people with
disabilities, including Section 504 of the Rehabilitation Act and the
Americans with Disabilities Act (ADA). Existing regulations already
require such compliance. Nondiscrimination regulations exist at 7 CFR
272.6, and prohibit discrimination against applicants in any aspect of
program administration in accordance with those laws. Regulations
requiring compliance with Section 504 of the Rehabilitation Act exist
at current Sec. 273.2(c)(3) and at proposed Sec. 273.2(c)(3)(i).
Also, regulations require that State agencies provide applications in
other languages as required in Sec. 272.4(b).
14. Employment and Training (E&T): Funding Cycle Sec. 273.7(d)(3)(ix)
How did the FCEA change the E&T funding cycle?
Section 4122 of the FCEA amended Section 16(h)(1)(A) of the Act (7
U.S.C. 2025(h)(a)(A)) to place a 15-month limit on the availability of
unobligated, unexpended E&T funds. The Department proposed to implement
Section 4122 of FCEA by removing the reference in Sec. 273.7(d)(3)(ix)
stating that funds allocated in accordance with paragraph Sec.
273.7(d)(1) will remain available until obligated or expended. The
Department received two comments on this provision. These comments did
not address the rule itself, but asked for guidance and technical
assistance on the availability of additional E&T funds. The
Agricultural Act of 2014 (Pub. L. 113-79) changed the E&T funding cycle
to a two-year period. The Department has already issued subsequent
guidance on this issue. Because the Agricultural Act of 2014 superseded
the provision contained in the proposed rule, the Department is not
adopting this provision as proposed.
Will the Department remind State agencies of available E&T funds?
Yes. Commenters suggested that the Department remind State agencies
of the status of unobligated, unexpended funds. The Department
currently informs State agencies of available funds and will continue
to do so. State agencies may request additional 100 percent Federal
funds at any time provided that the State agency can amend its E&T plan
and obligate additional funds before the end of the Federal fiscal
year.
Will the Department provide technical assistance to States on how to
request, plan and manage E&T funds?
The Department received one comment recommending that the
Department offer technical assistance in planning and managing E&T
funds. The Department appreciates this suggestion and will take it into
consideration when developing future guidance and designing E&T tools.
15. Telephone Interviews at Initial Certification and Recertification
Sec. Sec. 273.2(e)(2) and 273.14(b)(3)
What is the current requirement concerning interviews at initial
application and recertification?
Current regulations at Sec. 273.2(e)(1) require a face-to-face
interview at initial application and at least every 12 months after
that, except for certain households certified for more than 12 months.
Under Sec. 273.2(e)(2), the State agency may waive the face-to-face
interview and hold a telephone interview if requested by the household
based on a hardship such as disability, inadequate transportation or an
employment conflict. If the State agency waives the face-to-face
interview based on such a household hardship, it must document the
waiver in the household's case file. Under Sec. 273.14(b)(3), State
agencies must meet the same interview requirements for households at
recertification, including a face-to-face interview, and may also waive
the face-to-face interview for hardship reasons as provided in Sec.
273.2(e).
How did the Department propose to change the regulations regarding
face-to-face interviews?
The Department proposed to amend Sec. Sec. 273.2(e)(2) and
273.14(b)(3) to allow State agencies to use a telephone interview
rather than a face-to-face interview without the need for the State to
ascertain hardship. State agencies would be required to provide a face-
to-face interview if requested by the household or if the State agency
determines that one is necessary. However, if a household that meets
the State agency's hardship criteria requests to waive the in-office
interview, the State agency would be required to conduct the interview
by telephone or a home visit. The proposal incorporated policy issued
by the Department in a June 25, 2009, memorandum, which can be found on
the FNS Web site at: http://
[[Page 2029]]
origin.www.fns.usda.gov/snap/rules/Memo/2009/062509.pdf. The Department
also proposed to require that State agencies that opt to provide
telephone interviews in lieu of face-to-face interviews must specify
this in their State plan of operation and describe the type of
households that will be routinely offered a telephone interview.
Did commenters support the proposed change?
Forty-five commenters supported the proposal to make the telephone
interview an option under the regulations. Seventy-one commenters
suggested updating the regulatory language to remove reference to
``waivers'', ensure that clients retain the right to have a face-to-
face interview, and ensure clients continue to have the right to
request a telephone interview due to hardship.
Did the Department modify the provisions of the proposed rules?
Language requiring that households have a face-to-face interview if
requested will be retained in the final rule. However, in Sec.
273.2(e)(2), the final rule has been modified from the proposed based
upon suggestions made by commenters. The final rule has been modified
to: remove references to waivers; clarify requirements for providing
face-to-face interviews and that such interviews can be conducted at an
applicant's residence; and reiterate that State agencies must provide
Limited English Proficient (LEP) households with bilingual personnel
during the interview (as already required under Sec. 272.4(b)).
Nine commenters took this opportunity to emphasize their strong
support of the SNAP interview, and they requested that clear interview
priorities in terms of client rights be established for interviews.
They suggested the regulations on interviews be revised to indicate
that the face-to-face interview and in-person assistance is the
preferred approach for conducting interviews, with the second preferred
approach being State agency or client requested telephone interviews,
and the last preferred approach being home interviews agreed upon by
agency and client. Interestingly, 53 other commenters suggested
reducing the requirement for interviews where other methods of contact
suffice and the client's benefits will be approved or continued as a
result of approved waivers.
Commenters also suggested requiring State agencies to provide
households with a toll-free number where households can call for an
interview when a scheduled interview did not occur, that State agencies
encourage households that missed an interview to reschedule the
interview before denying the household for a missed interview, and to
permit wider use of interactive voice response system interviews and
allow more States to test certification of certain types of households
without interview. One commenter disagreed with the automated interview
suggestion.
The Department appreciates the unique benefits that accrue to
households and program integrity as a result of required interviews.
The Department agrees that the interview is a fundamental aspect to
this program, and does not intend to eliminate the interview.
Therefore, the final regulatory text incorporates the requirement that
State agencies must inform each applicant of the opportunity for a
face-to-face interview at the time of application and recertification
and grant a face-to-face interview to any household that requests one
at any time, even if the State chooses the option to make telephone
interviews generally available. The final rule also makes clear that if
a State does not adopt the option to make telephone interviews
generally available, it must provide for such an interview for
individuals who meet the hardship criteria, at the household's option.
Also, the State agency may provide a home-based interview only if the
household meets the hardship criteria and requests one. However, the
Department does not believe it is prudent to establish preferred
interview methods in the regulations. The Department believes that
State agencies should have flexibility to determine the preferred
approach for conducting interviews.
Again, the Department emphasizes that State agencies must provide a
face-to-face interview if requested by the household or its authorized
representative at initial application or recertification; that is, any
time during the application process. To ensure consistency and fairness
across the caseload, State agencies must establish reasonable standards
for which households will be offered a telephone interview. State
agencies must also ensure that all households meeting the hardship
criteria are offered a telephone interview. Again, the State agency may
provide a home-based interview only if a household meets the hardship
criteria and requests a home-based interview. The Department will
continue to work with State agencies that request waivers of certain
aspects of interviews to improve efficiency while preserving client
rights and access to the program.
Are telephone interviews compliant with civil rights laws?
Sixty-three commenters requested clarification that telephone
interviews, if used, must be available to all types of households, not
only those with limited English proficiency and people with
disabilities. SNAP regulations at Sec. 272.6 prohibit discrimination
against any applicant or participant in any aspect of SNAP
administration, including, but not limited to the certification of
households, the issuance of coupons, the conduct of fair hearings or
the conduct of any other program service for reasons of age, race,
color, sex, disability, religious creed, national origin, or political
beliefs. On May 12, 2011, the Department published its final rule,
``Civil Rights Protections for SNAP Households'', which implements the
provisions of Section 11(c) of the Act, as amended by Section 4117 of
the FCEA. In this final rule, the Department amended Sec. 272.6(a) to
specifically provide that State agency administration of the program
must be consistent with the ADA. The Department also made a change in
terminology to update the reference to ``handicap'' to ``disability''
in Sec. 272.6 in conformance with the ADA.
In addition, 50 commenters requested assurance that households
needing extra assistance in completing the interview process get it.
The Department agrees that this is a reasonable expectation for
individuals applying for SNAP benefits. However, this issue involves
the customer service aspect of the interview process, as opposed to the
straightforward goal of eliminating the need for a waiver of the
regulations to conduct telephonic interviews. The efficiency and
effectiveness of the waiver has already been long-established, and the
Department requires that State agencies provide households with
assistance in the interview process by requiring State agencies to
provide an in-person interview whenever requested. For these reasons,
the Department will not revise regulatory language to adopt this
suggestion. Nevertheless, it is important to note that the Department
examines customer service issues at the State and local offices as part
of the Management Evaluation (ME) process, as well as other reviews
that target program access requirements. Further, the Department
conducts civil rights reviews and examines the State agency complaint
system, which is required in Sec. 272.6(d). State agencies are
required to develop and implement corrective action to
[[Page 2030]]
address deficiencies identified during ME, program access, and civil
rights reviews.
16. Averaging student work hours, Sec. 273.5(b)
What does the law require for student work hours?
Under Section 6(e) of the Act (7 U.S.C. 2015(e)) and Sec.
273.5(b), students enrolled at least half-time in an institution of
higher education are ineligible to participate in SNAP unless they meet
at least one of several criteria. One criterion allows students to
participate if they are employed for a minimum of 20 hours a week.
Section 6(e)(4) of the Act describes the student work requirement and
provides that a student may be eligible for SNAP is if he or she ``is
employed a minimum of 20 hours per week . . . during the regular school
year.'' Since there is no methodology for applying this rule in the
Act, the Department interpreted the provision as requiring full-time
college students to work a minimum of 20 hours every week to be
eligible for SNAP.
How did the Department propose to change the work requirement?
The Department proposed to amend Sec. 273.5(b)(5) to give State
agencies the option, without needing to request a waiver, to determine
compliance with the 20-hour minimum work requirement by averaging the
number of hours worked over the month, using an 80-hour monthly
minimum.
Did commenters support the proposed provision?
Yes. Sixty commenters, including advocates, food banks and
associations, supported the proposal to average student work hours as
an option in the regulation. Most of these commenters also suggested
that States be permitted to average work hours over a longer period of
time to reflect the variable nature of student work schedules, such as
a quarter, semester or trimester.
The Department agrees that the option suggested by commenters has
merit for students and State agencies, and is adding this option to
revised Sec. 273.5(b)(5) in this final rule. The final rule language
specifies that work hours performed during academic breaks greater than
one month must not be averaged with other months. The Department
believes that this will enable students to manage their employment and
school workloads efficiently while still requiring students receiving
SNAP to work while in school.
In addition to the revision noted above, the Department has
eliminated the 80-hour per month language from the proposed rule in the
final rule. This language is contained in the Act for work requirements
for able-bodied adults without dependents, but it does not appear in
the Act with regard to student hours.
Accordingly, the Department will adopt the proposed revision to
Sec. 273.5(b)(5) with modifications for the reasons noted above.
II. Procedural Matters
Executive Orders 12866 and 13563
We have examined the impacts of this final rule as required by
Executive Order 12866 on Regulatory Planning and Review (September 30,
1993) and Executive Order 13563 on Improving Regulation and Regulatory
Review (January 18, 2011). 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 rule has been designated an
``economically'' significant rule, under section 3(f)(1) of Executive
Order 12866. Accordingly, the rule has been reviewed by the Office of
Management and Budget (OMB). Consistent with the requirements of
Executive Orders 12866 and 13563, a Regulatory Impact Analysis (RIA)
was developed for this final rule. The RIA is included in the docket
for this rule at www.regulations.gov. The docket number is FNS-2011-
0008. A summary of the analysis follows:
Regulatory Impact Analysis
The provisions in this final rule are intended to increase SNAP
benefit levels for certain participants, reduce barriers to
participation and promote efficiency in the administration of the
program. The Department has estimated the total SNAP costs to the
Government of the FCEA statutory provisions implemented in this rule as
$831 million in fiscal year (FY) 2010 and $5.619 billion over the 5
years FY 2010 through FY 2014. The changes to the rule provisions
between the proposed rule and the final rule do not have any
significant impacts on the cost estimates. As many of the provisions
are self-implementing upon the date specified in FCEA, the impacts are
already fully incorporated into the President's budget baseline. In
addition to the SNAP costs discussed above, the provisions of this rule
also result in a major reduction in reporting burden for SNAP clients.
We estimate that this reduction in burden yields an overall annual cost
savings of $286 million.
Statement of Need: This final rulemaking is necessary to amend SNAP
regulations to implement provisions of the FCEA that establish new
eligibility and certification requirements for the receipt of SNAP
benefits. These provisions are intended to increase SNAP benefit levels
for certain participants, reduce barriers to participation, and promote
efficiency in the administration of the program.
Benefits: As noted above, provisions of this rule increase SNAP
benefits for certain households and reduce participant burden by
streamlining program administration.
Costs: As noted above, we estimate that the provisions contained in
this rule will reduce household-level burden by over 40 million hours,
resulting in an annualized cost savings of approximately $286 million.
Transfers: As noted above, the Department has estimated the total
SNAP costs to the Federal Government at $831 million in FY 2010 and
$5.619 billion over the 5 years FY 2010 through FY 2014.
Executive Order 13175
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 between the Federal Government and Indian
Tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian Tribes.
USDA has conducted a series of Tribal consultation sessions to gain
input by elected Tribal officials or their designees concerning the
impact of this rule on Tribal governments, communities and individuals.
These sessions took place in the months of October, November and
December of 2010 and January 2011 at locations around the country.
These sessions established a baseline of consultation for future
actions regarding this rule. Reports from these sessions for
consultation were included in the USDA annual reporting on Tribal
Consultation and Collaboration. No
[[Page 2031]]
comments were received on this specific rule during these
consultations. The policies contained in this rule would not have
Tribal implications that preempt Tribal law. USDA will offer future
opportunities, such as webinars and teleconferences, for collaborative
conversations with Tribal leaders and their representatives concerning
ways to improve rules with regard to their effect on Indian country.
We are unaware of any current Tribal laws that could be in conflict
with the final rule. However, should a Tribe request consultation, the
Food and Nutrition Service 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.
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 small
entities. Pursuant to that review, the Administrator certifies that
this final rule does not have a significant impact on small entities.
State and local human service agencies will be the most affected to
the extent that they administer SNAP. The provisions of this final
rule, affecting the eligibility, benefits, certification and employment
and training requirements for applicant or participant households in
SNAP, are implemented through State agencies, which are not small
entities as defined by the Regulatory Flexibility Act. In addition, the
majority of this rule's provisions were implemented as required by the
FCEA on October 1, 2008. This rule amends the SNAP regulations to be
consistent with the requirements of the FCEA.
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 $146 million
or more (when adjusted for 2015 inflation; GDP deflator source: Table
1.1.9 at http://www.bea.gov/iTable) in any one year. This rule contains
no Federal mandates (under the regulatory provisions of Title II of the
UMRA) that impose costs on State, local, or Tribal governments or to
the private sector of $146 million or more in any one year. This rule
is, therefore, not subject to the requirements of sections 202 and 205
of the UMRA.
Executive Order 12372
SNAP 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 3015,
Subpart V and related Notice (48 FR 29115), the Program is included in
the scope of Executive Order 12372, which requires intergovernmental
consultation with State and local officials.
Federalism Impact Statement
Executive Order 13132 requires Federal agencies to consider the
impact of their regulatory actions. 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 the Executive Order 13132.
Prior Consultation With State Officials
After the FCEA was enacted on June 18, 2008, FNS held a series of
conference calls with State agencies and FNS regional offices to
explain the SNAP provisions included in the public law and to answer
questions that State agencies had about implementing the changes to the
program. On July 3, 2008, FNS issued an implementation memorandum that
described each SNAP-related provision in the FCEA and provided basic
information to assist State agencies in meeting statutorily-mandated
implementation timeframes. FNS responded to additional questions that
State agencies submitted and posted the answers on the FNS Web site.
Another forum for consultation with State officials on implementation
of the FCEA provisions included various conferences hosted by FNS
regional offices, State agency professional organizations, and program
advocacy organizations. During these conferences, held in the latter
part of 2008 and early months of 2009, FNS officials responded to a
range of questions posed by State agency officials related to
implementation of FCEA provisions.
Nature of Concerns and the Need To Issue This Rule
This rule implements changes required by the FCEA. State agencies
were generally interested in understanding the timeframes for
implementing the various provisions and the implications of the
statutory provisions on State agency administration workload and on
applicants and participants. FNS was able to answer questions that
directly related to the mandatory or optional nature of the provisions
and to confirm the statutorily-mandated timeframes for implementation.
FNS was also able to respond to questions that involved current
regulations or written policy. An example of such an issue was whether
uncapped dependent care claimed by an applicant or participant must be
verified. FNS was able to answer this question by drawing on current
policy at Sec. 273.2(f), which requires that dependent care expenses,
like other household costs, must only be verified if questionable or if
the State agency opts to require verification of such costs. However,
State agencies raised a number of questions that required policy
development and could not be answered without promulgation of a new
rulemaking. These types of questions raised by State agencies or
program advocacy organizations contributed directly to the development
of policy in this rule. For example, State agencies asked whether
transportation costs associated with getting a dependent to and from
care could be counted as part of dependent care expenses and thus be
deducted. In this rulemaking, we have clarified specific SNAP policy on
this issue that had not been sufficiently developed prior to this rule.
Extent to Which We Met Those Concerns
FNS has considered the impact of the final rule on State and local
agencies. This rule makes changes that are required by law. Most
provisions in this rule implement provisions of the FCEA, which were
effective on October 1, 2008. Two additional provisions are
discretionary in nature and give State agencies regulatory options that
currently may only be waived through SNAP's administrative waiver
request procedures, which are outlined in Sec. 272.3(c) of this
chapter.
Executive Order 12988
This 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 that
conflict with its provisions or that would otherwise impede its full
implementation. This rule is not intended to have retroactive effect
unless so specified in the ``Effective
[[Page 2032]]
Date'' paragraph of this rule. 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 SNAP, the
administrative procedures are as follows: (1) For program benefit
recipients--State administrative procedures issued pursuant to Section
11(e) of the Act (7 U.S.C. 2020(e)(1)) and regulations at Sec. 273.15;
(2) for State agencies--administrative procedures issued pursuant to
Section 14 of the Act (7 U.S.C. 2023) and regulations at Sec. 276.7
(for rules related to non-Quality Control liabilities) or Part 283 (for
rules related to Quality Control liabilities); (3) for Program
retailers and wholesalers--administrative procedures issued pursuant to
Section 14 of the Act (7 U.S.C. 2023) and 7 CFR 279.
Civil Rights Impact Analysis
FNS has reviewed this final rule in accordance with the Department
Regulation 4300-4, ``Civil Rights Impact Analysis,'' to identify and
address any major civil rights impacts the rule might have on
minorities, women and persons with disabilities. After a careful review
of the rule's intent and provisions, and of the characteristics of SNAP
households and individual participants, we have determined that this
rule would not have a disproportionate impact on any of these groups.
We have no discretion in implementing many of these changes. The
changes that are required to be implemented by law have already been
implemented as of October 1, 2008. FNS expects that the discretionary
provisions included in this final rule will benefit applicants and
participants that are among the protected classes of individuals. All
data available to FNS indicate that protected individuals have the same
opportunity to participate in SNAP as non-protected individuals. FNS
specifically prohibits the State and local government agencies that
administer the Program from engaging in actions that discriminate based
on race, color, national origin, sex, religion, age, disability,
marital or family status (SNAP's nondiscrimination policy can be found
at Sec. 272.6(a)). Where State agencies have options, and they choose
to implement a certain provision, they must implement it in such a way
that it complies with the regulations at Sec. 272.6.
Paperwork Reduction Act
The Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. Chapter 35;
see 5 CFR part 1320) requires that OMB approve all collections of
information by a Federal agency from the public 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.
The proposed rule outlined the provisions of this rule that will affect
reporting and recordkeeping requirements and the associated information
collection burden maintained approved collections OMB No. 0584-0064 and
0584-0083. Of the provisions in this rule that have been amended in
response to public comments, none of these amendments revise the
proposed reporting and recordkeeping requirements. Thus, the reporting
and recordkeeping requirements will be adopted as final. Section 271.8,
Information collection/recordkeeping--OMB assigned control numbers, is
revised accordingly.
Since the publication of the proposed rule, the existing
information collections in which the PRA burden will be merged have
changed. Changes to those collections result in adjustments to the
total burden calculation. Due to changes in participation levels and
other mathematical corrections \1\ to 0584-0064, the adjusted burden
estimate for reporting requirements associated with this rule appear in
the table below. As indicated in the proposed rule, the estimated
burden impact to recordkeeping is zero. Revisions to 0584-0083 since
2010 have not resulted in adjustments associated with this rulemaking
and therefore the burden table for 0584-0083 has not been set out
below.
---------------------------------------------------------------------------
\1\ The proposed rule estimated small reductions in reporting
burden for certain administrative requirements. These reductions
were removed as burden associated with these requirements had not
been previously accounted for in the OMB-cleared information
collection. These estimates were small and inconsequential to the
net burden impact.
---------------------------------------------------------------------------
The changes in burden that result from the provisions in this final
rule are subject to review and approval by OMB. We have indicated in
the Notes column of the table below where ``no changes'' have been made
from the proposed rule. When the information collection requirements
have been approved, FNS will publish a separate action in the Federal
Register announcing OMB's approval.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reporting
---------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated
Estimated Reports filed average number Estimated
Section of regulation Title number of annually per Total annual of burden total burden Notes
respondents respondent responses hours per hours
response
--------------------------------------------------------------------------------------------------------------------------------------------------------
State Agency Level
--------------------------------------------------------------------------------------------------------------------------------------------------------
Part 273........................ Change of Program 44.00 1.00 44.00 8.00 352.00 No change.
Name.
273.9(c)........................ Exclusion of .............. .............. .............. .............. .............. No change.
combat-related
pay.
273.9(d)(1)(iii)................ Increase of .............. .............. .............. .............. .............. No change.
minimum standard
deduction.
Sec. Sec. 273.9(d)(4) & Elimination of cap 53.00 1.00 53.00 8.00 424.00 No change.
273.10(e)(1)(i)(E). on dependent care
expenses--SA
Operation Manual
update.
``.............................. Newly certified 53.00 9,517.26 504,415.04 0.08 42,034.59 Adjusted for
households w/ change in
dependent care. participation
level.
``.............................. Existing 53.00 12,412.90 657,883.89 0.03 21,929.46 Adjusted for
households w/ change in
dependent care. participation
level.
273.10(e)(2)(ii)(C)............. Minimum benefit 53.00 1.00 53.00 0.50 26.5 No change.
increase.
273.8(b)........................ Asset indexation.. 53.00 16.98 900 0.02 15.03 No change.
[[Page 2033]]
273.8(e)(2)(i).................. Exclusion of .............. .............. .............. .............. .............. ..................
retirement
accounts from
resources.
``.............................. Newly certified .............. .............. .............. .............. .............. Burden removed due
households. to duplication
with total
application
burden.
``.............................. New and Existing .............. .............. .............. .............. .............. Burden reduction
households. removed. Due to
mathematical
correction.
273.8(e)........................ Exclusion of .............. .............. .............. .............. .............. ..................
education
accounts from
resources.
``.............................. Newly certified .............. .............. .............. .............. .............. Burden removed due
households. to duplication
with total
application
burden.
``.............................. New households .............. .............. .............. .............. .............. Burden reduction
(existing removed. Due to
households not mathematical
included, already correction.
captured in
respondents under
retirement
accounts
provision).
Sec. Sec. 273.12(a)(5), (b), Expansion of .............. .............. .............. .............. .............. ..................
and (c). simplified
reporting.
``.............................. Newly added 47.00 53,000.00 2,491,000 0.18 457,596.70 No change.
elderly or
disabled
households.
Sec. 272.2(d)(1)(H) and 273 Transitional .............. .............. .............. .............. 0.00 No change.
Subpart H. benefits
alternative.
Sec. Sec. 273.2(b) & (c), Telephonic 3.00 1.00 3 120.00 360.00 No change.
273.12(c) and (d), 273.14(b), signature.
and 273.21(h).
Sec. Sec. 273.2(e)(2) & Telephonic 40.00 1.00 40.00 2.00 (80.00) No change.
273.14(b)(3). interviews.
273.5(b)(5)..................... Averaging student .............. .............. .............. .............. .............. Burden reduction
work hours. removed. Due to
mathematical
correction.
Sec. Sec. 273.7(e)(1)(viii) & Employment and .............. .............. .............. .............. .............. No change.
273.7(e)(4)(iii). Training: Job
retention
services.
State Agency Burden Total 53 .............. 3,654,392 .............. 522,658 ..................
--------------------------------------------------------------------------------------------------------------------------------------------------------
Household Level
--------------------------------------------------------------------------------------------------------------------------------------------------------
Part 273........................ Change of Program .............. .............. .............. .............. .............. No change.
Name.
273.9(c)........................ Exclusion of .............. .............. .............. .............. .............. No change.
combat-related
pay.
273.9(d)(1)(iii)................ Increase of .............. .............. .............. .............. .............. No change.
minimum standard
deduction.
Sec. Sec. 273.9(d)(4) & Elimination of cap .............. .............. .............. .............. .............. ..................
273.10(e)(1)(i)(E). on dependent care
expenses.
``.............................. Newly certified 504,415.04 1.00 504,415.04 0.08 42,118.66 Adjusted for
households w/ change in
dependent care. participation
level.
``.............................. Existing 657,884 1.00 657,883.89 0.03 21,973.32 Adjusted for
households w/ change in
dependent care. participation
level.
273.10(e)(2)(ii)(C)............. Minimum benefit .............. .............. .............. .............. .............. No change.
increase.
273.8(b)........................ Asset indexation.. .............. .............. .............. .............. .............. No change.
273.8(e)(2)(i).................. Exclusion of .............. .............. .............. .............. .............. ..................
retirement
accounts from
resources.
``.............................. New and existing .............. .............. .............. .............. .............. Burden reduction
households. removed. Due to
mathematical
correction.
273.8(e)........................ Exclusion of .............. .............. .............. .............. .............. ..................
education
accounts from
resources.
``.............................. New households .............. .............. .............. .............. .............. Burden reduction
(existing removed. Due to
households not mathematical
included, already correction.
captured in
respondents under
retirement
accounts
provision).
Sec. Sec. 273.12(a)(5), (b), Expansion of 2,491,000 1 2,491,000.00 0.0835 207,998.50 No change.
and (c). simplified
reporting.
[[Page 2034]]
Sec. 272.2(d)(1)(H) and 273 Transitional .............. .............. .............. .............. .............. No change.
Subpart H. benefits
alternative.
Sec. Sec. 273.2(b) & (c), Telephonic .............. .............. .............. .............. .............. No change.
273.12(c) and (d), 273.14 (b) signature.
and 273.21(h).
Sec. Sec. 273.2(e)(2) & Telephonic 20,663,092 1 20,663,092.00 -2 (41,326,184) Adjusted for
273.14(b)(3). interviews. change in
participation
level.
273.5(b)(5)..................... Averaging student .............. .............. .............. .............. .............. No change.
work hours.
Sec. Sec. 273.7(e)(1)(viii) & Employment and .............. .............. .............. .............. .............. No change.
273.7(e)(4)(iii). Training: Job
retention
services.
Household burden total 24,316,391 .............. 24,316,390.93 .............. (41,054,094) ..................
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Reporting burden of Eligibility, Certification 24,316,444 .............. 27,970,782.79 .............. (40,531,435.24 ..................
and E&T Rule )
Total Reporting Burden for OMB No. 0584-0064 per .............. .............. .............. .............. 114,211,604 ..................
revision (In clearance at OMB)
Net Reporting Burden for 0584-0064 with Eligibility, .............. .............. .............. .............. 73,680,169 ..................
Certification and E&T Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Figures in table rounded to two decimals.
E-Government Act Compliance
FNS is committed to complying with the E--Government Act, 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
7 CFR Part 271
Food stamps, Grant programs-social programs. Reporting and
recordkeeping requirements.
7 CFR Part 272
Alaska, Civil rights, Food stamps, Grant programs-social programs,
Penalties, Reporting and recordkeeping requirements, Unemployment
compensation, Wages.
7 CFR Part 273
Administrative practice and procedure, Aliens, Claims, Employment,
Food stamps, Fraud, Government employees, Grant programs-social
programs, Income taxes, Reporting and recordkeeping requirements,
Students, Supplemental Security Income, Wages.
0
Accordingly, 7 CFR parts 271 through 283 and 285 are amended as
follows:
0
1. The authority citation for 7 CFR parts 271 through 283 and 285
continues to read as follows:
Authority: 7 U.S.C. 2011-2036.
PARTS 271 THROUGH 283 AND 285--[AMENDED]
0
2. Parts 271 through 283 and 285 are amended as follows:
0
a. Remove the words ``the Food Stamp Program'' and ``Food Stamp
Program'' and add in their place the word ``SNAP'' each time they
appear in these parts;
0
b. Remove the words ``Food Stamp Act'' and ``Food Stamp Act of 1977''
and add in their place the words ``Food and Nutrition Act of 2008''
each time they appear in these parts;
0
c. Remove the words ``food stamp'' and add in their place the word
``SNAP'' each time they appear in these parts; and
0
d. Remove the words ``food stamps'' wherever they appear and add in
their place the words ``SNAP benefits'' each time they appear in these
parts.
PART 271--GENERAL INFORMATION AND DEFINITIONS
0
3. In Sec. 271.2, revise the definition of Minimum benefit to read as
follows:
Sec. 271.2 Definitions.
* * * * *
Minimum benefit means the minimum monthly amount of SNAP benefits
that one- and two-person households receive. The amount of the minimum
benefit shall be determined according to the provisions of Sec. 273.10
of this chapter.
* * * * *
0
4. Revise Sec. 271.8 to read as follows:
Sec. 271.8 Information collection/recordkeeping--OMB assigned
control numbers.
------------------------------------------------------------------------
Current OMB
7 CFR section where requirements are described control No.
------------------------------------------------------------------------
272.1(f)................................................ 0584-0010
0584-0025
0584-0034
0584-0037
0584-0064
0584-0069
0584-0074
0584-0080
0584-0081
0584-0083
0584-0299
0584-0303
0584-0336
0584-0339
272.2(d)................................................ 0584-0064
272.2(a), (c), (d), (e), (f)............................ 0584-0083
272.5(c)................................................ 0584-0083
272.3(a), (b), (c)...................................... 0584-0083
272.6(g), (h)........................................... 0584-0025
273.2(a), (b), (c), (e), (f), (h)....................... 0584-0064
273.5(b)................................................ 0584-0064
273.7(a), (d), (e)...................................... 0584-0339
273.7(c )............................................... 0584-0083
0584-0339
273.8(b), (e ).......................................... 0584-0064
273.9(d)................................................ 0584-0496
273.9(d) (c)............................................ 0584-0064
273.10(e), (g)(1)....................................... 0584-0064
273.11(b)............................................... 0584-0496
273.11(i) (1)-(4)....................................... 0584-0080
0584-0081
273.11(i)(5)............................................ 0584-0081
273.11(i)(6)............................................ 0584-0080
0584-0081
273.12(a), (b), (c), (d)................................ 0584-0064
273.13(a), (b).......................................... 0584-0064
273.14(b)............................................... 0584-0064
273.16(a), (b), (d), (e), (f), (g), (h), (i)............ 0584-0064
273.18(h)............................................... 0584-0069
273.21(h)............................................... 0584-0064
[[Page 2035]]
273.24(f)............................................... 0584-0479
274.3(d)................................................ 0584-0069
0584-0080
274.4(a)................................................ 0584-0080
274.4(b)................................................ 0584-0080
0584-0081
274.6(a), (b) and (e)................................... 0584-0080
0584-0081
275.2(a)................................................ 0584-0010
0584-0303
275.4(a)................................................ 0584-0010
0584-0303
275.4(b)................................................ 0584-0010
275.4(c)................................................ 0584-0034
0584-0074
0584-0299
275.5(a), (b)........................................... 0584-0010
275.6(b)................................................ 0584-0010
275.8(a)................................................ 0584-0010
275.9(b), (g)........................................... 0584-0010
275.10(a)............................................... 0584-0074
0584-0299
0584-0303
275.11(a)............................................... 0584-0303
275.12(b), (c), (d), (e)................................ 0584-0074
275.12(f), (g).......................................... 0584-0299
275.13(b), (d), (e)..................................... 0584-0034
275.14(c), (d).......................................... 0584-0034
0584-0074
0584-0299
275.16(b), (c), (d)..................................... 0584-0010
275.17(a), (b).......................................... 0584-0010
275.18(a), (b).......................................... 0584-0010
275.19(a), (b), (c)..................................... 0584-0010
275.20(a)............................................... 0584-0010
275.21(b)............................................... 0584-0034
0584-0074
0584-0299
275.21(c), (d), (e)..................................... 0584-0034
275.22(a), (b).......................................... 0584-0010
275.23.................................................. 0584-0010
0584-0034
0584-0074
0584-0299
277.18(a), (c), (d), (f), (i)........................... 0584-0083
278.1(a), (b), (l)...................................... 0584-0008
278.5(c), (d), (f)...................................... 0584-0008
278.6(b)................................................ 0584-0008
278.7(b), (c)........................................... 0584-0008
278.8(a)................................................ 0584-0008
280.7(c), (d), (g)...................................... 0584-0336
280.9(b)................................................ 0584-0037
280.10(a)............................................... 0584-0336
------------------------------------------------------------------------
PART 272--REQUIREMENTS FOR PARTICIPATING STATE AGENCIES
0
5. In Sec. 272.2, revise paragraphs (d)(1)(xvi)(A) through (H) and add
paragraphs (d)(1)(xvi)(I) and (J) to read as follows:
Sec. 272.2 Plan of operation.
* * * * *
(d) * * *
(1) * * *
(xvi) * * *
(A) Section 273.2(c)(7)(viii) and 273.2(c)(7)(ix) of this chapter,
it must include in the Plan's attachment the option to accept
telephonic signatures and gestured signatures on the application and
reapplication forms (other than for households the State may be
required to accept such signatures as a reasonable accommodation under
Section 504 of the Rehabilitation Act or in compliance with other civil
rights laws) and a description of the procedures being pursued under
the provision;
(B) Sections 273.2(e)(2) and 273.14(b)(3) of this chapter, it must
include in the Plan's attachment the option to provide telephone
interviews in lieu of face-to-face interviews at initial application
and reapplication for households other than those that meet the
hardship criteria and a description of the procedures being pursued
under the provision;
(C) Sections 273.2(f)(1)(xii), 273.2(f)(8)(i)(A), 273.9(d)(5),
273.9(d)(6)(i) and 273.12(a)(4) of this chapter, it must include in the
Plan's attachment the options it has selected;
(D) Section 273.5(b)(5) of this chapter, it must include in the
Plan's attachment the option to average student work hours and a
description of how student work hours will be calculated;
(E) Section 273.8(e)(19) of this chapter, it must include in the
Plan's attachment a statement that the option has been selected and a
description of the resources being excluded under the provision;
(F) Section 273.9(c)(3) of this chapter, it must include in the
Plan's attachment a statement that the option has been selected and a
description of the types of educational assistance being excluded under
the provision;
(G) Sections 273.9(c)(18) and 273.9(c)(19) of this chapter, it must
include in the Plan's attachment a statement of the options selected
and a description of the types of payments or the types of income being
excluded under the provisions;
(H) Section 273.12(a)(5) of this chapter, it must include in the
Plan's attachment a statement that the option has been selected and a
description of the types of households to whom the option applies;
(I) Section 273.12(c) of this chapter, it must include in the
Plan's attachment a statement that the option has been selected and a
description of the deductions affected; and
(J) Section 273.26 of this chapter, it must include in the Plan's
attachment a statement that transitional SNAP benefits are available
and a description of the eligible cash-assistance programs by which
households may qualify for transitional benefits; if one of the
eligible programs includes a State-funded cash assistance program;
whether household participation in that program runs concurrently,
sequentially, or alternatively to TANF; the categories of households
eligible for such benefits; the maximum number of months for which
transitional benefits will be provided.
* * * * *
0
6. In Sec. 272.3, remove paragraph (c)(5) and redesignate paragraphs
(c)(6) and (c)(7) as paragraphs (c)(5) and (c)(6), respectively, and
revise redesignated paragraphs (c)(5) and (c)(6). The revisions read as
follows:
Sec. 272.3 Operating guidelines and forms.
* * * * *
(c) * * *
(5) Notwithstanding the preceding paragraphs, waivers may be
granted by the Food and Nutrition Service as provided in section 5(f)
of the Act. Waivers authorized by this paragraph are not subject to the
public comment provisions of paragraph (d) of this section.
(6) Notwithstanding the preceding paragraphs, waivers may be
granted by the Food and Nutrition Service as provided in section 6(c)
of the Act. Waivers authorized by this paragraph are not subject to the
public comment provisions of paragraph (d) of this section.
0
7. In Sec. 272.13, revise paragraph (b)(4) to read as follows:
Sec. 272.13 Prisoner verification system (PVS).
* * * * *
(b) * * *
(4) Notice to the household of match results. The State must use
the procedures laid forth in Sec. 273.12(c)(3)(iii) of this chapter;
* * * * *
0
8. In Sec. 272.14, revise paragraph (c)(4) to read as follows:
Sec. 272.14 Deceased matching system.
* * * * *
(c) * * *
(4) Notice to the household of match results. The State must use
the procedures laid forth in Sec. 273.12(c)(3)(iii) of this chapter;
* * * * *
PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS
0
9. In part 273, remove the words ``food coupons'' wherever they appear
and add in their place the words ``SNAP benefits.''
0
10. Effective March 7, 2017, in Sec. 273.2:
0
a. Revise paragraph (b)(1);
0
b. Revise paragraphs (c)(1) and (c)(3);
[[Page 2036]]
0
c. Add new paragraph (c)(7);
0
d. Revise paragraph (e)(2);
0
e. Revise the first and last sentences of paragraph (i)(3)(i);
0
f. Revise paragraph (i)(3)(ii);
0
g. Revise the last sentence of paragraph (k)(1)(i)(O);
0
h. Amend the first sentence of paragraph (n)(4)(i)(C) by removing the
word ``coupons'' and adding in its place the word ``benefits'';
0
i. Amend paragraph (n)(4)(iii) by removing the words ``authorization
documents or coupons'' and adding in its place the words ``EBT
accounts''; and
0
j. Remove references to ``Sec. 273.1(e)(2)'' wherever they appear and
add in their place ``Sec. 273.11(i)''.
The additions and revisions read as follows:
Sec. 273.2 Office operations and application processing.
* * * * *
(b)(1) A State agency may consider an application form to be a
paper document, on-line document or a recorded conversation. Each
application form shall contain:
* * * * *
(c) * * *
(1) Household's right to file--(i) Where to file. Households must
file SNAP applications by submitting the forms to the SNAP office
either in person, through an authorized representative, by mail, by
completing an on-line electronic application, or, if available, by fax,
telephone, or other electronic transmission.
(ii) Right to file in writing. All households have the right to
apply or to re-apply for SNAP in writing. The State agency shall
neither deny nor interfere with a household's right to apply or to re-
apply in writing.
(iii) Right to same-day filing. Each household has the right to
file an application form on the same day it contacts the SNAP office
during office hours. The household shall be advised that it does not
have to be interviewed before filing the application and may file an
incomplete application form as long as the form contains the
applicant's name and address, and is signed by a responsible member of
the household or the household's authorized representative. Regardless
of the type of application system used, the State agency must provide a
means for all applicants applying through any mechanism to immediately
begin the application process by filing an application with only the
name, address and signature.
(iv) Recording the filing date. The date of application is the date
the application is received by the State agency. State agencies must
document the application date on the application. If the application is
received outside normal business hours the State agency will consider
the date of application the next business day. For online applications,
the date of application is the date the application is submitted, or
the next business day if it is submitted after business hours. For
telephonic applications, the date of application is the date on which
the household member provides verbal assent.
(v) [Reserved]
(vi) Residents of institutions. The following special provisions
apply to residents of institutions.
(A) Filing date. When a resident of an institution is jointly
applying for SSI and SNAP benefits prior to leaving the institution,
the filing date of the application that the State agency must record is
the date of release of the applicant from the institution.
(B) Processing deadline. The length of time a State agency has to
deliver benefits is calculated from the date the application is filed
in the SNAP office designated by the State agency to accept the
household's application, except when a resident of a public institution
is jointly applying for SSI and SNAP benefits prior to his/her release
from an institution in accordance with Sec. 273.11(i).
(C) Certification procedures. Residents of public institutions who
apply for SNAP prior to their release from the institution shall be
certified in accordance with Sec. 273.2 paragraph (g)(1) or Sec.
273.2(i)(3)(i) of this section, as appropriate.
* * * * *
(3) Availability of the application form. (i) General availability.
The State agency shall make application forms readily accessible to
potentially eligible households. The State agency shall also provide an
application form to anyone who requests the form. Regardless of the
type of system the State agency uses, the State agency must provide a
means for applicants to immediately file an application that includes
only name, address and signature. If the State agency maintains a Web
page, it must make the application available on the Web page in each
language in which the State agency makes a printed application
available. The State agency must provide on the Web page the addresses
and phone numbers of all State SNAP offices and a statement that the
household should return the application form to its nearest local
office. The applications must be accessible to persons with
disabilities in accordance with Section 504 of the Rehabilitation Act
of 1973, Public Law 93-112, as amended by the Rehabilitation Act
Amendments of 1974, Public Law 93-516, 29 U.S.C. 794, and the Americans
with Disabilities Act of 1990, 42 U.S.C. 12101.
(ii) Paper forms. The State agency must make paper application
forms readily accessible and available even if the State agency also
accepts application forms through other means.
* * * * *
(7) Signing an application or reapplication form. In this
paragraph, the word ``form'' refers to applications and reapplications.
(i) Requirement for a signature. A form must be signed to establish
a filing date and to determine the State agency's deadline for acting
on the form. The State agency shall not certify a household without a
signed form.
(ii) Right to provide written signature. All households have the
right to sign a SNAP form in writing.
(iii) Unwritten signatures. The State agency shall decide whether
unwritten signatures are generally acceptable. The State agency may
decide to accept unwritten signatures. A State agency that does not
select this option must accept unwritten signatures when necessary to
comply with civil rights laws.
(A) These may include electronic signature techniques, recorded
telephonic signatures, or recorded gestured signatures.
(B) A State agency is not required to obtain a written signature in
addition to an unwritten signature.
(iv) Who may sign the form.
(A) An adult member of the household.
(B) An authorized representative, as described in paragraph (n)(1)
of this section.
(v) Criteria for all signatures. All systems for signatures must
meet all of the following criteria:
(A) Record for future reference the assent of the household member
and the information to which assent was given;
(B) Include effective safeguards against impersonation, identity
theft, and invasions of privacy;
(C) Not deny or interfere with the right of the household to apply
in writing;
(D) Comply with the SNAP regulations regarding bilingual
requirements at Sec. 272.4(b) of this chapter; and
(E) Satisfy all requirements for a signature on an application
under all laws and guidance applicable to SNAP, including civil rights
laws.
(vi) Handwritten signatures. These provisions apply specifically to
[[Page 2037]]
handwritten signatures, including handwritten signatures that the
household transmits by facsimile or other electronic transmission.
(A) If the signatory cannot sign with a name, an X is a valid
signature.
(B) The State agency may require a witness to attest to an X
signature.
(C) An employee of the State agency may serve as a witness.
(vii) Electronic signatures. These provisions apply specifically to
electronic signatures.
(A) The State agency may accept an electronic signature but is not
required to do so.
(B) Some examples of electronic signature are the use of a Personal
Identification Number (PIN), a computer password, clicking on an ``I
accept these conditions'' button on a screen, or clicking on a
``Submit'' button on a screen.
(viii) Telephonic signatures. These provisions apply specifically
to telephonic signatures.
(A) A State agency that chooses to accept telephonic signatures
under this paragraph (c)(7)(viii) must specify in its State plan of
operation that it has selected this option.
(B) To constitute a valid telephonic signature, the State agency's
telephonic signature system must make an audio recording of the
household's verbal assent and a summary of the information to which the
household assents. An example of a telephonic signature is a recording
of ``Yes'' or ``No'', ``I agree'' or ``I do not agree'', or otherwise
clearly indicating agreement or disagreement during an interview over
the telephone. An example of a summary of the information to which the
household assents is a recording of a reiteration of the household's
details agreed to during the telephone conversation.
(C) A telephonic signature system must provide for linkage from the
audio file of the recorded verbal assent to the application so that the
State agency has ready access to the household's entire case file.
(D) The State agency shall promptly provide to the household member
a written copy of the completed application, with instructions for a
simple procedure for correcting any errors or omissions.
(ix) Gestured signatures. These provisions apply specifically to
gestured signatures.
(A) A State agency that chooses to accept gestured signatures under
this paragraph (c)(7)(ix) must specify in its State plan of operation
that it has selected this option.
(B) Gestured signatures include the use of signs and expressions to
communicate ``Yes'' or ``I agree'' in American Sign Language (ASL),
Manually Coded English (MCE) or another similar language or method
during an interview, in person or over a video link.
(C) The State agency shall promptly provide to the household member
a written copy of the completed application, with instructions for a
simple procedure for correcting any errors or omissions.
* * * * *
(e) * * *
(2) The State agency may use a telephone interview instead of the
face-to-face interview required in paragraph (e)(1) of this section for
all applicant households, for specified categories of households, or on
a case-by-case basis because of household hardship situations as
determined by the State agency. The hardship conditions must include,
but are not limited to, illness, transportation difficulties, care of a
household member, hardships due to residency in a rural area, prolonged
severe weather, or work or training hours that prevent the household
from participating in an in-office interview. If a State agency has not
already provided that a telephone interview will be used for a
household, and that household meets the State agency's hardship
criteria and requests to not have an in-office interview, the State
agency must offer to the household to conduct the interview by
telephone. The State agency may provide a home-based interview only if
a household meets the hardship criteria and requests one. A State
agency that chooses to routinely interview households by telephone in
lieu of the face-to-face interview must specify this choice in its
State plan of operation and describe the types of households that will
be routinely offered a telephone interview in lieu of a face-to-face
interview. The State agency must grant a face-to-face interview to any
household that requests one.
(i) State agencies must inform each applicant of the opportunity
for a face-to-face interview at the time of application and
recertification and grant a face-to-face interview to any household
that requests one at any time, even if the State agency has elected the
option to routinely provide telephone interviews.
(ii) Like households participating in face-to-face interviews,
households interviewed by any means other than the face-to-face
interview are not exempt from verification requirements. However, the
State agency may use special procedures to permit the household to
provide verification and thus obtain its benefits in a timely manner,
such as substituting a collateral contact in cases where documentary
verification would normally be provided.
(iii) The use of non-face-to-face interviews may not affect the
length of a household's certification period.
(iv) State agencies must provide Limited English Proficient (LEP)
households with bilingual personnel during the interview as required
under Sec. 272.4(b) of this chapter.
* * * * *
(i) * * *
(3) * * *
(i) * * * For households entitled to expedited service, the State
agency shall post benefits to the household's EBT card and make them
available to the household not later than the seventh calendar day
following the date an application was filed. * * * Whatever systems a
State agency uses to ensure meeting this delivery standard shall be
designed to provide the household with an EBT card and PIN no later
than the seventh calendar day following the day the application was
filed.
(ii) Drug addicts and alcoholics, group living arrangement
facilities. For residents of drug addiction or alcoholic treatment and
rehabilitation centers and residents of group living arrangements who
are entitled to expedited service, the State agency shall make benefits
available to the recipient not later than the 7 calendar days following
the date an application was filed.
* * * * *
(k) * * *
(1) * * *
(i) * * *
(O) * * * It shall also include the client's rights and
responsibilities (including fair hearings, authorized representatives,
out-of-office interviews, reporting changes and timely reapplication),
information on how and where to obtain an EBT card and PIN and how to
use an EBT card and PIN (including the commodities clients may purchase
with SNAP benefits.
* * * * *
0
11. Effective January 8, 2018, in Sec. 273.2, add paragraph (c)(1)(v)
to read as follow:
Sec. 273.2 Office operations and application processing.
* * * * *
(c) * * *
(1) * * *
(v) Application copies. When a household member completes an
[[Page 2038]]
application, the State agency must offer to provide a copy of the
completed application. For purposes of this subsection, a copy of the
completed application is a copy of the information provided by the
client that the State agency has used or will use to determine a
household's eligibility and benefit allotment. At the option of the
household, the State may provide the copy in an electronic format.
* * * * *
0
12. In Sec. 273.5, revise paragraph (b)(5) to read as follows:
Sec. 273.5 Students.
* * * * *
(b) * * *
(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. The State agency may
choose to determine compliance with this requirement by calculating
whether the student worked an average of 20 hours per week over the
period of a month, quarter, trimester or semester. State agencies may
choose to exclude hours accrued during academic breaks that do not
exceed one month. A State agency that chooses to average student work
hours must specify this choice and specify the time period over which
the work hours will be averaged in its State plan of operation;
* * * * *
0
13. In Sec. 273.7:
0
a. Add paragraph (e)(1)(viii);
0
b. Add a sentence to the beginning of paragraph (e)(4)(iii);
0
c. Amend the introductory text of paragraph (k)(1) by removing the word
``coupon'' and adding in its place the word ``benefit'';
0
d. Amend the introductory text of paragraph (k)(4) by removing the word
``coupon'' and adding in its place the word ``benefit'';
0
e. Amend paragraph (k)(6) by removing the word ``coupon'' and adding in
its place the word ``benefit'';
0
f. Amend the introductory text of paragraph (m)(1) by removing the word
``coupon'' and adding in its place the word ``benefit''; and
0
g. Amend paragraph (m)(5)(ii) by removing the word ``coupon'' and
adding in its place the word ``benefit''.
The addition and revision read as follows:
Sec. 273.7 Work provisions.
* * * * *
(e) * * *
(1) * * *
(viii) Job retention services that are designed to help achieve
satisfactory performance, retain employment and to increase earnings
over time. The State agency may offer job retention services, such as
case management, job coaching, dependent care assistance and
transportation assistance, for up to 90 days to an individual who has
secured employment. The State agency may determine the start date for
job retention services provided that the individual is participating in
SNAP in the month of or the month prior to beginning job retention
services. The State agency may provide job retention services to
households leaving SNAP up to the 90-day limit unless the individual is
leaving SNAP due to a disqualification in accordance with 273.7(f) or
273.16. The participant must have secured employment after or while
receiving other employment/training services under the E&T program
offered by the State agency. There is no limit to the number of times
an individual may receive job retention services as long as the
individual has re-engaged with E&T prior to obtaining new employment.
An otherwise eligible individual who refuses or fails to accept or
comply with job retention services offered by the State agency may not
be disqualified as specified in paragraph (f)(2) of this section.
* * * * *
(4) * * *
(iii) Voluntary participants are not subject to the 120-hour cap on
monthly participation.
* * * * *
0
14. In Sec. 273.8:
0
a. Revise paragraphs (b), (c)(1), and (e)(2); and
0
b. Add a new paragraph (e)(20).
The revisions and addition should read as follows:
Sec. 273.8 Resource eligibility standards.
* * * * *
(b) Maximum allowable financial resources. The maximum allowable
liquid and non-liquid financial resources of all members of a household
without members who are elderly or have a disability shall not exceed
$2,000, as adjusted for inflation in accordance with paragraph (b)(1)
and (b)(2) of this section. For households including one or more member
who is elderly or has a disability, such financial resources shall not
exceed $3,000, as adjusted for inflation in accordance with paragraph
(b)(1) and (b)(2) of this section.
(1) Beginning October 1, 2008, and each October 1 thereafter, the
maximum allowable financial resources shall be adjusted and rounded
down to the nearest $250 to reflect changes in the Consumer Price Index
for the All Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor (for the 12-month period ending the
preceding June).
(2) Each adjustment shall be based on the unrounded amount for the
prior 12-month period.
(c) * * *
(1) Liquid resources, such as cash on hand, money in checking and
savings accounts, saving certificates, stocks or bonds, and lump sum
payments as specified in Sec. 273.9(c)(8); and
* * * * *
(e) * * *
(2) Household goods, personal effects, the cash value of life
insurance policies, one burial plot per household member, and the value
of one funeral agreement per household member. The cash value of
pension plans or funds shall be excluded. The following retirement
accounts shall be excluded:
(i) Funds in a plan, contract, or account that meets the
requirements that is described in one of the following sections of the
Internal Revenue Code of 1986:
(A) Section 401(a), which includes funds commonly known as ``tax
qualified retirement plans,'' including ``401(k) plans'';
(B) Section 403(a), which includes funds that are similar to 401(a)
plans but are funded through annuity contracts;
(C) Section 403(b), which includes tax-sheltered annuities,
custodial accounts, and retirement income accounts retirement plans for
some employees of public schools and tax exempt organizations;
(D) Section 408, which includes traditional Individual Retirement
Accounts and traditional Individual Retirement Annuities (IRAs);
(E) Section 408A, which includes plans commonly known as ``Roth
IRAs'' (including the ``myRA'');
(F) Section 457(b), which includes plans commonly known as
``eligible deferred compensation plans'' for employees of state or
local government or tax-exempt entities; or
(G) Section 501(c)(18), which includes plans funded by employee
contributions.
(ii) Funds in a Section 529A, which includes funds in a qualified
ABLE program.
(iii) Funds in the Federal Thrift Savings Fund within the meaning
of that term as used in section 7701(j) of the Internal Revenue Code of
1986. as defined by 5 U.S.C. 8439.
(iv) Any other retirement plan or arrangement that is designated as
tax-
[[Page 2039]]
exempt under a successor or similar provision of the Internal Revenue
Code of 1986.
(iv) Any other retirement account determined by FNS to be
appropriate for exclusion.
* * * * *
(20) The following education accounts are excluded from allowable
financial resources:
(i) Funds in a qualified tuition program, as defined by section 529
of the Internal Revenue Code of 1986; (ii) Funds in a Coverdell
education savings account, as defined by section 530 of the Internal
Revenue Code of 1986; and
(iii) Funds in any other education savings account determined by
FNS to be appropriate for exclusion.
* * * * *
0
15. In Sec. 273.9:
0
a. Amend paragraph (a)(4) by removing the Web site ``www.fns.usda.gov/
fsp'' and adding in its place the Web site ``www.fns.usda.gov/snap'';
0
b. Amend the second sentence of paragraph (b)(1)(iii) by removing the
words ``Job Training Partnership Act'' and adding in their place the
words ``Workforce Investment Act of 1998'';
0
c. Amend the first sentence of paragraph (b)(1)(v) by removing the
words ``section 204(b)(1)(C) or section 264(c)(1)(A) of the Workforce
Investment Act'' and adding in their place the words ``Title 1 of the
Workforce Investment Act of 1998'';
0
d. Amend paragraph (c)(10)(v) by removing the words ``Job Training
Partnership Act (Pub. L. 90-300)'' and adding in their place the words
``Workforce Investment Act of 1998'';
0
e. Add new paragraph (c)(20);
0
f. Revise paragraph (d)(1)(iii);
0
g. Amend the second sentence of paragraph (d)(3)(x), by removing the
word ``coupon'' and adding in its place the word ``benefit''; and
0
h. Revise the last sentence of paragraph (d)(3)(x); and
0
i. Revise paragraph (d)(4).
The addition and revisions read as follows:
Sec. 273.9 Income and deductions.
* * * * *
(c) * * *
(20) Income received by a member of the United States Armed Forces
under Chapter 5 of Title 37 of the United States Code that is:
(i) Received in addition to the service member's basic pay;
(ii) Received as a result of the service member's deployment to or
service in an area designated as a combat zone as determined pursuant
to Executive Order or Public Law; and
(iii) Not received by the service member prior to the service
member's deployment to or service in a Federally-designated combat
zone.
(d) * * *
(1) * * *
(iii) Minimum deduction levels. Notwithstanding paragraphs
(d)(1)(i) and (d)(1)(ii) of this section, the standard deduction for FY
2009 for each household in the 48 States and the District of Columbia,
Alaska, Hawaii, Guam and the U.S. Virgin Islands shall not be less than
$144, $246, $203, $289, and $127, respectively. Beginning FY 2010 and
each fiscal year thereafter, the amount of the minimum standard
deduction is equal to the unrounded amount from the previous fiscal
year adjusted to the nearest lower dollar increment to reflect changes
for the 12-month period ending on the preceding June 30 in the Consumer
Price Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor, for items other than food.
* * * * *
(3) * * *
(x) * * * If a household incurs attendant care costs that could
qualify under both the medical deduction of Sec. 273.9(d)(3)(x) and
the dependent care deduction of Sec. 273.9(d)(4), the costs may be
deducted as a medical expense or a dependent care expense, but not
both.
(4) Dependent care. Payments for dependent care when necessary for
a household member to search for, accept or continue employment, comply
with the employment and training requirements as specified under Sec.
273.7(e), or attend training or pursue education that is preparatory to
employment, except as provided in Sec. 273.10(d)(1)(i). Costs that may
be deducted are limited to the care of an individual for whom the
household provides dependent care, including care of a child under the
age of 18 or an incapacitated person of any age in need of care. The
costs of care provided by a relative may be deducted so long as the
relative providing care is not part of the same SNAP household as the
child or dependent adult receiving care. Dependent care expenses must
be separately identified, necessary to participate in the care
arrangement, and not already paid by another source on behalf of the
household. If a household incurs attendant care costs that could
qualify under both the medical deduction of Sec. 273.9(d)(3)(x) and
dependent care deduction of Sec. 273.9(d)(4), the costs may be
deducted as a medical expense or a dependent care expense, but not
both. Allowable dependent care costs include:
(i) The costs of care given by an individual care provider or care
facility;
(ii) Transportation costs to and from the care facility; and
(iii) Activity or other fees associated with the care provided to
the dependent that are necessary for the household to participate in
the care.
* * * * *
0
16. In Sec. 273.10:
0
a. Amend paragraph (e)(1)(i)(E) by removing the words ``up to a maximum
amount'';
0
b. Revise paragraph (e)(2)(ii)(C);
0
c. Amend paragraph (e)(2)(vi) introductory text by removing the word
``housholds'' and adding in its place the word ``households''; and
0
d. Remove references to ``Sec. 273.1(e)(2)'' wherever they appear and
add in their place ``Sec. 273.11(i)''.
The revision reads as follows:
Sec. 273.10 Determining household eligibility and benefit levels.
* * * * *
(e) * * *
(2) * * *
(ii) * * *
(C) Except during an initial month, all eligible one-person and
two-person households shall receive minimum monthly allotments equal to
the minimum benefit. The minimum benefit is 8 percent of the maximum
allotment for a household of one, rounded to the nearest whole dollar.
* * * * *
0
17. In Sec. 273.11:
0
a. Remove paragraph (e)(2)(iii) and redesignate paragraph (e)(2)(iv) as
new paragraph (e)(2)(iii);
0
b. Redesignate paragraphs (e)(5), (e)(6), and (e)(7) as paragraphs
(e)(6), (e)(7), and (e)(8);
0
c. Add a new paragraph (e)(5);
0
d. Revise newly redesignated paragraph (e)(6);
0
e. Revise the last sentence of newly redesignated paragraph (e)(7);
0
f. Revise the second and fourth sentences of newly redesignated
paragraph (e)(8);
0
g. Revise paragraph (f)(4);
0
h. Revise paragraph (f)(5);
0
i. Revise the first sentence of paragraph (f)(6); and
0
j. Revise the first sentence of paragraph (f)(7).
The additions and revisions read as follows:
Sec. 273.11 Action on households with special circumstances.
* * * * *
(e) * * *
(5) DAA treatment centers may redeem benefits in various ways
depending on the State's system design.
[[Page 2040]]
The designs may include DAA treatment center use of individual
household EBT cards at authorized stores, authorization of DAA
treatment centers as retailers with EBT access via POS at the treatment
center, DAA treatment center use of a treatment center EBT card that is
an aggregate of individual household benefits, and other designs. The
State agency must ensure that the selected design permits the return of
benefits to the household's EBT account through a refund, transfer or
other means. Guidelines for approval of EBT systems are contained in
part 274 of this chapter.
(6) When a household leaves the DAA treatment center, the DAA
treatment center must perform the following:
(i) Notify the State agency by sending a completed change report
form to the agency informing the agency of the household's change in
address, new address if available, and that the DAA treatment center is
no longer the household's authorized representative. Also the DAA
treatment center must provide the household with a change report form
as soon as it has knowledge the households plans to leave the facility
and advise the household to return the form to the appropriate office
of the State agency within 10 days of any change the household is
required to report. After the household leaves the treatment center,
the treatment center can no longer act as the household's authorized
representative for certification purposes or for obtaining or using
benefits.
(ii) Provide the household with its EBT card within 5 days of the
household's departure if it was in the possession of the DAA treatment
center. The DAA treatment center must return any EBT card not provided
to departing residents to the State agency within 5 calendar days.
(iii) Return a prorated amount of the household's monthly allotment
back to the household's EBT account based on the number of days in the
month that the household resided at the DAA treatment center. If the
DAA treatment center is authorized as a retailer, the State agency must
require the DAA treatment center to process the refund back to the
household's EBT account. Under an EBT system where the treatment center
has an aggregate EBT card or uses individual cards as the authorized
representative, the State agency must transfer the prorated portion of
the household's monthly allotment from a DAA treatment center's bank
account back to the household's EBT account. In either case, the
household, not the DAA treatment center, must be allowed to have sole
access to the household's EBT account at the time the household leaves
the DAA treatment center.
(iv) If the household has already left the DAA treatment center,
and as a result, the treatment center is unable to refund the benefits
in accordance with this paragraph, the DAA treatment center must notify
the State agency within 5 days of the household's departure that the
DAA treatment center was unsuccessful in its effort to refund the
prorated share of its benefits and the State agency must effect the
refund from the treatment center's bank account to the household's EBT
account within 5 days after receiving notification from the center.
These procedures are applicable at any time during the month.
(7) * * * The DAA treatment center shall be strictly liable for all
losses or misuse of benefits and/or EBT cards held on behalf of
resident households and for all overissuances which occur while the
households are residents of the DAA treatment center.
(8) * * * The State agency shall promptly notify FNS when it has
reason to believe that a DAA treatment center is misusing benefits and/
or EBT cards in its possession. * * * The State agency shall establish
a claim for overissuances of benefits held on behalf of resident
clients as stipulated in paragraph (e)(7) of this section if any
overissuances are discovered during an investigation or hearing
procedure for redemption violations. * * *
* * * * *
(f) * * *
(4) If the resident has made application on his/her own behalf, the
household is responsible for reporting changes to the State agency as
provided in Sec. 273.12(a). If the GLA is acting in the capacity of an
authorized representative, the GLA shall notify the State agency, as
provided in Sec. 273.12(a), of changes in the household's income or
other household circumstances and when the household leaves the GLA.
The GLA shall return any household's benefits to the State agency if
they are received after the household has left the group living
arrangement.
(5) When the household leaves the facility and the GLA acts as an
authorized representative for purposes of redeeming benefits using
individual household cards or an aggregate card on behalf of the
residents (regardless of the method of application), the same
provisions applicable to drug and alcoholic treatment centers in
paragraphs (e)(5) and (e)(6) of this section also apply to GLAs.
(6) The same provisions applicable to drug and alcoholic treatment
centers in paragraphs (e)(7) and (e)(8) of this section also apply to
GLAs when acting as an authorized representative. * * *
(7) If the residents are certified on their own behalf, the GLA may
either act as the household's authorized representative for purposes of
redeeming benefits to be used to purchase meals served either
communally or individually to eligible residents or allow eligible
residents to retain their EBT card and benefits to purchase and prepare
food for their own consumption. * * *
* * * * *
0
18. In Sec. 273.12:
0
a. Revise the section heading and paragraphs (a)(1)(i) through
(a)(1)(v);
0
b. Revise paragraph (a)(2);
0
c. Revise paragraph (a)(5)(ii)(B);
0
d. Revise paragraph (a)(5)(iii);
0
e. Revise paragraph (a)(5)(iv);
0
f. Revise paragraph (b)(2)(vii) and (b)(2)(x);
0
g. Revise paragraph (c)(3);
0
h. Amend paragraph (e)(1)(B) by removing the reference ``273.9(d)(7)''
and replacing it with the reference ``273.9(d)(1)''; and
0
i. Amend paragraph (e)(1)(C) by removing the reference ``273.9(d)(8)''
and replacing it with the reference ``273.9(d)(6)''.
The revisions read as follows:
Sec. 273.12 Reporting requirements.
(a) * * *
(1) * * *
(i) (A) A change of more than $100 in the amount of unearned
income, except changes relating to public assistance (PA) or general
assistance (GA) in project areas in which GA and food stamp cases are
jointly processed. The State agency is responsible for identifying
changes during the certification period in the amount of PA, or GA in
jointly processed cases. If GA and food stamp cases are not jointly
processed, the household is responsible for reporting changes in GA of
more than $100.
(B) A change in the source of income, including starting or
stopping a job or changing jobs, if the change in employment is
accompanied by a change in income.
(C) One of the following, as determined by the State agency
(different options may be used for different categories of households
as long as no household is required to report under more than one
option; the State may also utilize different options in different
project areas within the State):
(1) A change in the wage rate or salary or a change in full-time or
part-time employment status (as determined by
[[Page 2041]]
the employer or as defined in the State's PA program), provided that
the household is certified for no more than 6 months; or
(2) A change in the amount earned of more than $100 a month from
the amount last used to calculate the household's allotment, provided
that the household is certified for no more than 6 months.
(D) Beginning FY 2018, and for every fiscal year thereafter, the
dollar amounts in paragraphs (a)(1)(i)(A) and (C) of this section shall
be adjusted and rounded to the nearest $25 to reflect changes in the
Consumer Price Index for the All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor (for the 12-month
period ending the preceding June).
(ii) All changes in household composition, such as the addition or
loss of a household member.
(iii) Changes in residence and the resulting change in shelter
costs.
(iv) Acquisition of a licensed vehicle that is not fully excludable
under Sec. 273.8.
(v) A change in liquid resources, such as cash, stocks, bonds, and
bank accounts that reach or exceed the resource limits as described in
Sec. 273.8(b) for elderly or disabled households and for all other
households, unless these assets are excluded under Sec. 273.8.
* * * * *
(2) Certified households must report changes within 10 days of the
date the change becomes known to the household, or at the State
agency's option, the household must report changes within 10 days of
the end of the month in which the change occurred. For reportable
changes of income, the State agency shall require that change to be
reported within 10 days of the date that the household receives the
first payment attributable to the change. For households subject to
simplified reporting, the household must report changes no later than
10 days from the end of the calendar month in which the change
occurred, provided that the household receives the payment with at
least 10 days remaining in the month. If there are not 10 days
remaining in the month, the household must report within 10 days from
receipt of the payment. Optional procedures for reporting changes are
contained in paragraph (f) of this section for households in States
with forms for jointly reporting SNAP and public assistance changes and
SNAP and general assistance changes.
* * * * *
(5) * * *
(ii) * * *
(B) For households required to submit a periodic report, a written
and oral explanation of the reporting requirements including:
(1) The additional changes that must be addressed in the periodic
report and verified;
(2) When the report is due;
(3) How to obtain assistance in filing the periodic report; and
(4) The consequences of failing to file a report.
* * * * *
(iii) Periodic report. (A) Exempt households. The State agency must
not require the submission of periodic reports by households certified
for 12 months or less in which all adult members are elderly or have a
disability with no earned income.
(B) Submission of periodic reports by non-exempt households.
Households that are certified for longer than 6 months, except those
households described in Sec. 273.12(a)(5)(iii)(A), must file a
periodic report between 4 months and 6 months, as required by the State
agency. Households in which all adult members are elderly or have a
disability with no earned income and are certified for periods lasting
between 13 months and 24 months must file a periodic report once a
year. In selecting a due date for the periodic report, the State agency
must provide itself sufficient time to process reports so that
households that have reported changes that will reduce or terminate
benefits will receive adequate notice of action on the report in the
first month of the new reporting period.
(C) The periodic report form must request from the household
information on any changes in circumstances in accordance with
paragraphs (a)(1)(i) through (a)(1)(vii) of this section and conform to
the requirements of paragraph (b)(2) of this section.
(D) If the household files a complete report resulting in reduction
or termination of benefits, the State agency shall send an adequate
notice, as defined in Sec. 271.2 of this chapter. The notice must be
issued so that the household will receive it no later than the time
that its benefits are normally received. If the household fails to
provide sufficient information or verification regarding a deductible
expense, the State agency will not terminate the household, but will
instead determine the household's benefits without regard to the
deduction.
(E) If a household fails to file a complete report by the specified
filing date, the State agency shall provide the household with a
reminder notice advising the household that it has 10 days from the
date the State agency mails the notice to file a complete report. If an
eligible household files a complete periodic report during this 10 day
period, the State agency shall provide it with an opportunity to
participate no later than ten days after its normal issuance date If
the household does not respond to the reminder notice, the household's
participation shall be terminated and the State agency must send an
adequate notice of termination described in paragraph (a)(5)(iii)(C) of
this section.
(F) If an eligible household that has been terminated for failure
to file a complete report files a complete report after its extended
filing date under (E), but before the end of the issuance month, the
State agency may choose to reinstate the household. If the household
has requested a fair hearing on the basis that a complete periodic
report was filed, but the State does not have it, the State agency
shall reinstate the household if a completed periodic report is filed
before the end of the issuance month.
(G) The periodic report form shall be the sole reporting
requirement for any information that is required to be reported on the
form, except that a household required to report less frequently than
quarterly shall report when its monthly gross income exceeds the
monthly gross income limit for its household size in accordance with
paragraph (a)(5)(v) of this section, and able-bodied adults subject to
the time limit of Sec. 273.24 shall report whenever their work hours
fall below 20 hours per week, averaged monthly.
(H) If the State agency uses a combined periodic report for SNAP
and TANF or Medicaid, the State agency shall clearly indicate on the
form that SNAP-only households need not provide information required by
another program. Non-applicant household or family members need not
provide SSNs or information about citizenship or immigration status.
(iv) Processing periodic reports. In selecting a due date for the
periodic report, the State agency must provide itself sufficient time
to process reports so that households will receive adequate notice of
action on the report in the first month of the new reporting period.
The State agency shall provide the household a reasonable period after
the end of the last month covered by the report in which to return the
report. The State agency shall provide the household a reasonable
period after the end of the last month covered by the report in which
to return the report.
[[Page 2042]]
Benefits should be issued in accordance with the normal issuance cycle
if a complete report was filed timely.
* * * * *
(b) * * *
(2) * * *
(vii) Include a statement to be signed by a member of the household
(in accordance with Sec. 273.2(c)(7) regarding acceptable methods of
signature) indicating his or her understanding that the information
provided may result in reduction or termination of benefits;
* * * * *
(x) If the form requests Social Security numbers, include a
statement of the State agency's authority to require Social Security
numbers (including the statutory citation, the title of the statute,
and the fact that providing Social Security numbers is mandatory except
that non-participating household or family members need not provide
SSNs or information about citizenship or immigration status), the
purpose of requiring Social Security numbers, the routine uses for
Social Security numbers, and the effect of not providing Social
Security numbers. This statement may be on the form itself or included
as an attachment to the form.
* * * * *
(c) * * *
(3) Unclear information. During the certification period, the State
agency might obtain unclear information about a household's
circumstances from which the State agency cannot readily determine the
effect on the household's continued eligibility for SNAP, or in certain
cases benefit amounts. The State agency may receive such unclear
information from a third party. Unclear information is information that
is not verified, or information that is verified but the State needs
additional information to act on the change.
(i) The State agency must pursue clarification and verification (if
applicable) of household circumstances using the following procedure if
unclear information received outside the periodic report is: Fewer than
60 days old relative to the current month of participation; and would,
if accurate, have been required to be reported under the requirements
that apply to the household under 273.12 based on the reporting system
to which they have been assigned. Additionally, the State agency must
pursue clarification and verification (if applicable) of household
circumstances using the following procedure for any unclear information
that appears to present significantly conflicting information from that
used by the State agency at the time of certification. The procedures
for unclear information regarding matches described in Sec. 272.13 or
Sec. 272.14 are found in paragraph (iii) of this section.
(A) The State agency shall issue a written request for contact
(RFC) which clearly advises the household of the verification it must
provide or the actions it must take to clarify its circumstances, which
affords the household at least 10 days to respond and to clarify its
circumstances, either by telephone or by correspondence, as the State
agency directs, and which states the consequences if the household
fails to respond to the RFC.
(B) If the household does not respond to the RFC, or does respond
but refuses to provide sufficient information to clarify its
circumstances, the State agency must issue a notice of adverse action
as described in Sec. 273.13. The State has two options:
(1) The State agency may elect to send a notice of adverse action
that terminates the case, explains the reasons for the action, and
advises the household of the need to submit a new application if it
wishes to continue participating in the program; or
(2) Alternatively, the State agency may elect to issue a notice of
adverse action that suspends the household for 1 month before the
termination becomes effective, explains the reasons for the action, and
advises the household of the need to submit new information if it
wishes to continue participating. If the household responds
satisfactorily to the RFC during the period of suspension, the State
agency must reinstate the household without requiring a new
application, issue the allotment for the month of suspension and, if
necessary, adjust the household's participation with a new notice of
adverse action.
(C) If the household responds to the RFC and provides sufficient
information, the State agency must act on the new circumstances in
accordance with paragraphs (c)(1) or (c)(2) of this section, as
appropriate.
(ii) If the unclear information does not meet the criteria in
paragraph (c)(3)(i) of this section and does not relate to the matches
described in paragraph (c)(3)(iii) of this section, then the State
agency shall not act on the information or require the household to
provide information until the household's next certification action or
periodic report is due. A State may follow up with a household to
provide information on a voluntary basis if that information would
result in an increase in benefits but may not take adverse action if
the household does not respond.
(iii) Unclear information resulting from certain data matches. If a
State receives match information from a match described in Sec. 272.13
or Sec. 272.14, the State shall follow up with a notice of match
results as described in Sec. 272.13(b)(4) and Sec. 272.14 (c)(4). The
notices must clearly explain what information is needed from the
household and the consequences of failing to respond to the notice as
explained in paragraphs (c)(3)(iii)(A) and (B) this section.
(A) For households subject to change reporting, if the household
fails to respond to the notice of match results or does respond but
refuses to provide sufficient information to clarify its circumstances,
the State agency shall issue a notice of adverse action as described in
Sec. 273.13 that terminates the case.
(B) For all households not subject to change reporting, if the
household fails to respond to the notice of match results or does
respond but refuses to provide sufficient information to clarify its
circumstances, the State agency shall remove the subject individual and
the individual's income from the household and adjust benefits
accordingly. As appropriate the State agency shall issue a notice of
adverse action as described in Sec. 273.13.
* * * * *
Sec. 273.13 [Amended]
0
19. In Sec. 273.13, amend paragraph (b)(10) by removing the word
``coupon'' and adding in its place the word ``benefit''.
0
20. In Sec. 273.14:
0
a. Amend paragraph (b)(2) by adding a new fourth sentence; and
0
b. Amend the first sentence of paragraph (b)(3) by removing the words
``a face-to-face interview'' and adding in their place the words ``an
interview''.
The addition reads as follows:
Sec. 273.14 Recertification.
* * * * *
(b) * * *
(2) * * * The provisions of Sec. 273.2(c)(7) regarding acceptable
signatures on applications also apply to applications used at
recertification. * * *
* * * * *
0
21. In Sec. 273.15:
0
a. Revise the second sentence of paragraph (c)(1);
0
b. Amend paragraph (c)(2) by removing the word ``coupon'' and adding in
its place the words ``SNAP benefit'';
0
c. Amend paragraph (c)(3) by removing the word ``coupon'' and adding in
its place the words ``SNAP benefit'';
0
d. Amend paragraph (q)(4) by removing the word ``coupon'' and
[[Page 2043]]
adding in its place the words ``SNAP benefit''; and
0
e. Amend paragraph (s) introductory text by removing the word
``coupon'' and adding in its place the words ``SNAP benefit''.
The revision reads as follows:
Sec. 273.15 Fair hearings.
* * * * *
(c) * * *
(1) * * * Decisions that result in an increase in household
benefits shall be reflected in the household's EBT account within 10
days of the receipt of the hearing decision even if the State agency
must provide supplementary benefits or otherwise provide the household
with an opportunity to obtain the benefits outside of the normal
issuance cycle. * * *
* * * * *
0
22. In Sec. 273.16, revise paragraph (c)(2) to read as follows:
Sec. 273.16 Disqualification for intentional Program violation.
* * * * *
(c) * * *
(2) Committed any act that constitutes a violation of SNAP, SNAP
regulations, or any State statute for the purpose of using, presenting,
transferring, acquiring, receiving, possessing or trafficking of SNAP
benefits or EBT cards.
* * * * *
Sec. 273.18 [Amended]
0
23. In Sec. 273.18, remove paragraph (f)(4) and redesignate paragraphs
(f)(5), (f)(6), and (f)(7) as paragraphs (f)(4), (f)(5), and (f)(6).
0
24. In Sec. 273.21, revise paragraph (h)(2)(vi) to read as follows:
Sec. 273.21 Monthly Reporting and Retrospective Budgeting (MRRB).
* * * * *
(h) * * *
(2) * * *
(vi) Include a statement to be signed by a member of the household
(in accordance with Sec. 273.2(c)(7) regarding acceptable methods of
signature), indicating his or her understanding that the provided
information may result in changes in the level of benefits, including
reduction and termination;
* * * * *
0
25. In Sec. 273.25:
0
a. Revise the heading of the section and paragraph (a)(1);
0
b. Amend the heading and introductory text of paragraph (b) by removing
the word ``SFSP'' and adding in its place the word ``S-SNAP'' wherever
it occurs;
0
c. Amend paragraph (b)(1) by removing the word ``SFSP'' and adding in
its place the word ``S-SNAP'' and by removing the word ``FSP'' wherever
it occurs and adding in its place the word ``SNAP'';
0
d. Amend paragraphs (b)(2) and (b)(3) by removing the word ``SFSP''
wherever it occurs and adding in its place the word ``S-SNAP'';
0
e. Amend paragraph (c) by removing the word ``SFSP'' in the first
sentence and adding in its place the word ``S-SNAP'' and by revising
the second and third sentences; and
0
f. Amend paragraphs (d) and (e) by removing the word ``SFSP'' wherever
it occurs and adding in its place the word ``S-SNAP''.
The revisions read as follows:
Sec. 273.25 Simplified SNAP.
(a) * * *
(1) Simplified SNAP (S-SNAP) means a program authorized under 7
U.S.C. 2035.
* * * * *
(c) * * * If a household is not receiving TANF assistance (payments
have not been authorized) at the time of its application for S-SNAP,
the State agency must process the application using the regular SNAP
requirements of Sec. 273.2, including processing within the 30-day
time frame, and screening for and provision of expedited service if
eligible. The State agency must determine under regular SNAP rules the
eligibility and benefits of any household that it has found ineligible
for TANF assistance because of time limits, more restrictive resource
standards, or other rules that do not apply to SNAP.
* * * * *
0
26. Revise Sec. 273.26 to read as follows:
Sec. 273.26 General eligibility guidelines.
(a) Eligible programs. The State agency may elect to provide
transitional SNAP benefits to households whose participation in the
following programs is ending:
(1) TANF or State Maintenance of Effort (MOE) funded cash
assistance programs, as authorized under part A of Title IV of the
Social Security Act; or
(2) A State-funded cash assistance (SFCA) program that provides
assistance to families with children. Eligible SFCA programs may
include programs funded by both state and local funds provided the
programs are intended to be statewide.
(b) Description of State transitional benefits. A State agency that
chooses to provide transitional benefits must describe features of its
transitional SNAP benefits alternative in its plan of operation, as
specified in Sec. 272.2(d)(1)(xvi)(H) of this chapter and as described
in Sec. 273.26(b)(1) through (b)(6).
(1) A statement that transitional benefits are available;
(2) The eligible programs by which households may qualify for
transitional benefits;
(3) If the State agency is offering transitional benefits through a
SFCA program, in addition to TANF or MOE, whether the SFCA program
participation runs concurrently, sequentially, or alternatively to the
TANF or MOE program;
(4) The categories of households eligible for such benefits;
(5) The maximum number of months for which transitional benefits
will be provided; and
(6) Any other items required to be included under this subpart H.
(c) Eligible households. The State agency may limit transitional
benefits to households in which all members had been receiving TANF,
MOE, or SFCA, or it may provide such benefits to any household in which
at least one member had been receiving TANF, MOE, or SFCA. If a member
of a household has been sanctioned but the household is still receiving
benefits, the remaining eligible household members may receive
transitional SNAP benefits if the cash assistance ends for another
reason.
(d) Ineligible households. The State agency may not provide
transitional benefits to a household that is leaving TANF, MOE, or SFCA
when:
(1) The household is leaving TANF or MOE due to a full-family TANF
sanction or the household is leaving the SFCA program due to a full-
family SFCA program sanction;
(2) The household is a member of a category of households
designated by the State agency as ineligible for transitional benefits;
(3) All household members are ineligible to receive SNAP benefits
because they are:
(i) Disqualified for an intentional program violation in accordance
with Sec. 273.16;
(ii) Ineligible for failure to comply with a work requirement in
accordance with Sec. 273.7;
(iii) Receiving SSI in a cash-out State in accordance with Sec.
273.20;
(iv) Ineligible students in accordance with Sec. 273.5;
(v) Ineligible aliens in accordance with Sec. 273.4;
(vi) Disqualified for failing to provide information necessary for
making a determination of eligibility or for completing any subsequent
review of its eligibility in accordance with Sec. 273.2(d) and Sec.
273.21(m)(1)(ii);
(vii) Disqualified for knowingly transferring resources for the
purpose of
[[Page 2044]]
qualifying or attempting to qualify for the program as provided at
Sec. 273.8(h);
(viii) Disqualified for receipt of multiple SNAP benefits;
(ix) Disqualified for being a fleeing felon in accordance with
Sec. 273.11(n); or
(x) ABAWD who fail to comply with the requirements of Sec. 273.24.
(e) Optional household exclusions. The State agency has the option
to exclude households where all household members are ineligible to
receive SNAP benefits because they are:
(1) Disqualified for failure to perform an action under Federal,
State or local law relating to a means-tested public assistance program
in accordance with Sec. 273.11(k);
(2) Ineligible for failing to cooperate with child support agencies
in accordance with Sec. 273.11(o) and (p); or
(3) Ineligible for being delinquent in court-ordered child support
in accordance with Sec. 273.11(q).
(f) Recalculating eligibility for denied households. The State
agency must use procedures at Sec. 273.12(f)(3) to determine the
continued eligibility and benefit level of households denied
transitional benefits under Sec. 273.26.
0
27. In Sec. 273.27:
0
a. Revise the first, fourth, and fifth sentences of paragraph (a)
introductory text;
0
b. Revise paragraphs (a)(1) and (a)(2); and
0
c. Revise the first and third sentences of paragraph (c).
The revisions read as follows:
Sec. 273.27 General administrative guidelines.
(a) When a household leaves TANF, MOE, or a SFCA program, a State
agency that has elected this option shall freeze the household's
benefit allotment for up to 5 months after making an adjustment for the
loss of TANF, MOE, or the SFCA. * * * Before initiating the
transitional period, the State agency, without requiring additional
information or verification from the household, must recalculate the
household's SNAP benefit amount by removing the TANF payment, MOE
payment, or the SFCA payment from the household's SNAP income.
At its option, the State agency may also adjust the benefit to
account for:
(1) Changes in household income that it learns about from another
State or
Federal means-tested assistance program in which the household
participates; or
(2) Automatic annual changes in the SNAP benefit rules, such as the
annual cost of living adjustment, the standard deduction adjustment,
and the adjustment to the cap on the excess shelter deduction.
* * * * *
(c) When a household leaves TANF, MOE, or SFCA program, the State
agency at its option may end the household's existing certification
period and assign the household a new certification period that
conforms to the transitional period. * * * If the transitional period
results in a shortening of the household's certification period, the
State agency shall not issue a household a notice of adverse action
under Sec. 273.10(f)(4) but shall specify in the transitional notice
required under Sec. 273.29 that the household must be recertified when
it reaches the end of the transitional benefit period or if it returns
to TANF, MOE, or SFCA program during the transitional period.
0
28. In Sec. 273.29, revise paragraphs (c) and (d) to read as follows:
Sec. 273.29 Transitional notice requirements.
* * * * *
(c) A statement that if the household returns to TANF, MOE, or SFCA
program during its transitional benefit period, it will be asked to
reapply for SNAP at the same time. However, if the household has been
assigned a new certification period in accordance with Sec. 273.27(c),
the notice must inform the household that it must be recertified if it
returns to TANF, MOE, or SFCA program during its transitional period;
(d) A statement explaining any changes in the household's benefit
amount due to the loss of TANF income, MOE income, or SFCA program
income and/or changes in household circumstances learned from another
State or Federal means-tested assistance program;
* * * * *
0
29. Revise Sec. 273.32 to read as follows:
Sec. 273.32 Households that return to TANF, MOE, or SFCA program
during the transitional period.
If a household receiving transitional benefits starts to receive
TANF, MOE, or SFCA program during the transitional period, the State
agency shall use the information from the TANF, MOE, or SFCA
application to re-determine continued SNAP eligibility and benefits, at
the same time that the TANF, MOE, or SFCA application is being
processed and follow procedures in Sec. 273.2(j) for joint processing
of SNAP/TANF applications. This includes processing the application
within 30 days. However, for a household assigned a new certification
period in accordance with Sec. 273.27(c), the household must be
recertified if it returns to TANF, MOE, or the SFCA program during its
transitional period.
Dated: December 15, 2016.
Kevin Concannon,
Under Secretary, Food, Nutrition and Consumer Services.
[FR Doc. 2016-30663 Filed 1-5-17; 8:45 am]
BILLING CODE 3410-30-P