[Federal Register Volume 84, Number 72 (Monday, April 15, 2019)]
[Rules and Regulations]
[Pages 15083-15095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07194]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 84, No. 72 / Monday, April 15, 2019 / Rules
and Regulations
[[Page 15083]]
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Parts 271, 272 and 273
[FNS 2015-0038]
RIN 0584-AE41
Supplemental Nutrition Assistance Program: Student Eligibility,
Convicted Felons, Lottery and Gambling, and State Verification
Provisions of the Agricultural Act of 2014
AGENCY: Food and Nutrition Service (FNS), USDA.
ACTION: Final rule.
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SUMMARY: This final rule implements four sections of the Agricultural
Act of 2014 (2014 Farm Bill), affecting eligibility, benefits, and
program administration requirements for the Supplemental Nutrition
Assistance Program (SNAP). Section 4007 clarifies that participants in
a SNAP Employment & Training (E&T) program are eligible for benefits if
they enroll or participate in specific programs that will assist SNAP
recipients in obtaining the skills needed for the current job market.
Section 4008 prohibits anyone convicted of Federal aggravated sexual
abuse, murder, sexual exploitation and abuse of children, sexual
assault, or similar State laws, and who are also not in compliance with
the terms of their sentence or parole, or are a fleeing felon, from
receiving SNAP benefits. Section 4009 prohibits individuals with
substantial lottery and gambling winnings from receiving SNAP benefits.
Section 4015 requires all State agencies to have a system in place to
verify income, eligibility, and immigration status.
DATES: Effective dates: This final rule is effective June 14, 2019.
ADDRESSES: SNAP Program Development Division, Food and Nutrition
Service, USDA, 3101 Park Center Drive, Room 812, Alexandria, Virginia
22302.
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:
Background
Section 4007: Student Eligibility Disqualifications
Background
Section 6(e) of the Food and Nutrition Act of 2008 (the Act) (7
U.S.C. 2015(e)) generally prohibits students enrolled at least half-
time in an institute of higher education from receiving SNAP. There are
several exceptions to the general prohibition, and section 4007 of the
2014 Farm Bill amended the exception at section 6(e)(3)(B) of the Act
(7 U.S.C. 2015(e)(3)(B)) for students who are enrolled at least half-
time at an institution of higher education through a SNAP Employment
and Training (E&T) program. Under the new requirements, these students
can be eligible to participate in SNAP only if the E&T program is part
of a program of career and technical education (as defined by the Carl
D. Perkins Career and Technical Education Act of 2006 (Perkins Act))
that may not be completed in more than 4 years at an institute of
higher education (as defined in section 102 of the Higher Education Act
of 1965 (20 U.S.C. 1002)); or is limited to courses for remedial
education, basic adult education, literacy, or English as a second
language. This amendment does not affect the other exceptions in
section 6(e) of the Act. The U.S. Department of Agriculture (the
Department) proposed modifications in 7 CFR 273.5(b)(11)(ii) to
incorporate these changes in section 4007.
The proposed rule also revised the description of acceptable E&T
education components at 7 CFR 273.7(e)(1)(vi) to include courses or
programs of study that are part of a program of career and technical
education as defined in section 3 of the Perkins Act. The substance of
the other criteria at section 273.7(e)(1)(vi) remain unchanged, with
the exception of a technical correction. The proposed rule
inadvertently removed language clarifying that educational components
must directly enhance the employability of the participants and a
direct link between education and job-readiness must be established for
a component to be approved. The final rule restores this language.
Individuals participating in remedial courses, basic adult education,
or English as a second language continue to qualify for the student
exemption. These courses may be offered concurrently or contextually
with courses or programs of study that are part of a program of career
and technical education.
Defining Career and Technical Education Programs
Section 3 of the Perkins Act (20 U.S.C. 2302) offers a general
definition of the term ``career and technical education'' and the
proposed rule noted that the Department believes State agencies are in
the best position to determine what courses or programs of study meet
the definition. A program does not have to be receiving Perkins funding
for a State agency to consider it eligible; it would just need to meet
the general definition, as determined by the State agency. Commenters
were generally supportive of granting States this discretion in
identifying which programs meet the general definition.
Some commenters asked that the final rule be clear that all State
agencies must at least adopt the basic definition of career and
technical education, and then have State-specific criteria. The
Department believes the proposed language at section 273.5(b)(11)(ii)
is sufficient to ensure that States use Perkins Act criteria to
identify which programs meet the general definition and is adopting the
provisions as proposed.
Four-Year Programs
Section 4007 provides that eligible courses or programs of study
may be completed in not more than four years. The proposed rule
explained that students participating in qualifying courses or programs
of study that are designed to be completed in up to four years, but may
actually take longer than four years to complete, satisfy this
requirement. Commenters were unanimously supportive of this explanation
and the Department is adopting the provision as proposed.
[[Page 15084]]
Section 4008: Eligibility Disqualifications for Certain Convicted
Felons
Background
Section 4008 of the 2014 Farm Bill added a new section 6(r) to the
Act (7 U.S.C. 2015(r)) prohibiting any individual from receiving SNAP
benefits if the individual is convicted of certain crimes and not in
compliance with the terms of the sentence, is a fleeing felon, or is a
parole or probation violator (as described in section 6(k) of the Act)
from receiving SNAP benefits. The certain crimes in section 4008 are:
(i) Aggravated sexual abuse under section 2241 of title 18, United
States Code; (ii) murder under section 1111 of title 18, United States
Code; (iii) sexual exploitation and other abuse of children under
chapter 110 of title 18, United States Code; (iv) a Federal or State
offense involving sexual assault, as defined in section 40002(a) of the
Violence Against Women Act of 1994 (42 U.S.C. 13925(a)); and (v) an
offense under State law determined by the Attorney General to be
substantially similar to an offense in (i) through (iii) above. The
Department proposed to codify this change in a new section at 7 CFR
273.11(s).
Section 4008 requires an individual applying for SNAP benefits to
attest to whether the applicant or any other member of the household
was convicted of any of the enumerated offenses. In addition, although
those disqualified from receiving SNAP benefits under this provision
are not eligible members of a SNAP household, the statute requires that
their income and resources be included in the eligibility
determinations for the other eligible household members.
As provided for in section 4008(c), the amendments do not apply to
convictions for conduct occurring on or before February 7, 2014, the
date of enactment of the 2014 Farm Bill.
Disqualification
The proposed rule added a new section at 7 CFR 273.11(s) to include
the section 4008 provisions. Before passage of the 2014 Farm Bill,
section 6(k) of the Act and section 273.11(n) already prohibited
certain fleeing felons and probation and parole violators from
receiving SNAP benefits. Standards for determining whether someone is a
fleeing felon or probation or parole violator are addressed in section
273.11(n), finalized in the ``Clarification of Eligibility of Fleeing
Felons Final Rule,'' published on September 10, 2015 (80 FR 54410).
Standards for fleeing felons under section 273.11(n) should apply to
the new eligibility disqualifications for certain convicted felons.
Commenters were supportive of the Department's interpretation of
section 4008 in section 273.11(s). Some commenters, including State
agencies, requested that the Department provide additional
information--through either regulations or guidance--on what crimes
under State law may be determined by the Attorney General to be
substantially similar offenses. The Department agrees that additional
guidance from the Department of Justice will be needed for State
agencies to successfully implement section 273.11(s)(1)(v) of the final
rule and has requested assistance on this matter from the Department of
Justice. Information from the Department of Justice is still
forthcoming; therefore, the Department is adopting this provision as
proposed and will provide further guidance when available.
This final rule also makes a conforming change to include
individuals convicted of certain felonies not compliant with the terms
of their sentence as ineligible household members listed at 7 CFR
273.1. A reference to the newly recreated 7 CFR 273.11(s) has been
added to 273.1(b)(7).
Attestation
The proposed rule added section 273.2(o), which would require every
individual applying for SNAP benefits to attest to whether the
individual, or any member of the individual's household, has been
convicted of a crime covered by this section and whether the household
member is in compliance with the terms of their sentence. Section 4008
requires an attestation as to whether an individual has been convicted
of one of the enumerated offenses. The Department has made the decision
to also require an attestation as to whether the individual is in
compliance with the sentence. This section provided basic standards to
meet the attestation requirement to help ensure consistency across
State agencies, while allowing some State discretion.
Proposed language at section 273.2(o) directed State agencies to
update their application processes to include the attestation
requirement. It allowed for this to be done in writing, verbally, or
both, provided that the attestation is legally binding in the law of
the State, and the method chosen is reasonable and consistently
applied. The proposed rule also required State agencies to verify the
felon status when an applicant affirmatively attested that the
applicant or a member of the household had been convicted of a felony
identified in section 4008 and was not in compliance with the sentence,
or when attestations were questionable. In conducting verifications,
the rule proposed that State agencies were also responsible for
establishing reasonable, consistent standards, evaluating each case
separately, and documenting the case file accordingly.
The Department received nine comments on the proposed
implementation of section 4008. Though commenters were largely
supportive or silent on how the disqualifications under this section
were to be codified under 7 CFR 273.11(s), they shared some concerns
for how the proposed language at section 273.2(o) addressed the
application process and verifying attestations.
In updating the application process, commenters urged the
Department to prohibit States from requiring individuals and/or
household members to come into the office solely to complete an
attestation. Commenters also recommended that State agencies be
required to explain the attestation to clients to ensure the
disqualification is understood prior to attestation--particularly that
this disqualification only applies to those who are out of compliance
with the terms of their sentence. The Department agrees that clear
communication with households is vital to the application process.
Similarly, completing the attestation requirement alone should not
create a need for a household to visit their local office as this is
not a prudent use of administrative resources. Therefore, the final
rule is adopting additional language at section 273.2(o)(1) to ensure
State agencies explain the attestation requirement to applicant
households during the application process and to prevent State agencies
from compelling applicants to come to the office solely to complete or
discuss an attestation. As with all other program materials, this
explanation must meet bilingual requirements at 272.4(b).
Comments received from State agencies as well as advocacy groups
raised concerns with how to verify attestations. State agencies shared
that verifying this new component of the application process may be
challenging as there is no national database available that would allow
States to conduct the verification. They also cited the associated
staff resources needed to complete this requirement as evidence that
meeting the requirement as proposed would be burdensome and overly
difficult. Advocates agreed with the Department that the State agency,
not the individual, is best suited to
[[Page 15085]]
verify a household member attestation that there is a convicted felon
in the household who is complying with the terms of their sentence.
They also agreed that verifying this information should not delay
application processing beyond the required processing timeframes. The
Department maintains this is a responsibility of the State agency but
recognizes the concerns that the proposed requirements for verifying
attestations would be onerous.
Therefore, in response to these comments, the Department is
revising the proposed language at section 273.2(o)(3) and adding new
paragraph 273.2(o)(4). Under the revised section 273.2(o)(3), State
agency verification of attestations shall be limited to attestations
that are considered questionable. The State agency shall follow the
standards established under section 273.2(f)(2) to determine whether an
attestation is questionable. This language is also incorporated into
section 273.2(b)(5)(i). The revised section 273.2(o)(3) also explains
that, when verifying an attestation, the State agency must verify both
that the individual has been convicted of one of these crimes and that
the individual is out of compliance with the terms of the sentence.
Section 273.2(o)(4) maintains that application processing shall not be
delayed beyond required processing timeframes solely because the State
agency has not obtained verification of an attestation. The State
agency shall continue to process the application while awaiting
verification. If the State agency is required to act on the case
without being able to verify an attestation in order to meet the time
standards in sections 273.2(g) or 273.2(i)(3), the State agency shall
process the application without consideration of the individual's
felony and compliance status.
Section 4009: Lottery and Gambling Winners
Background
Section 4009 of the 2014 Farm Bill provides that any household that
receives substantial lottery or gambling winnings, as determined by the
Secretary, must lose eligibility for benefits immediately upon receipt
of winnings. It also requires that those households remain ineligible
until they meet the allowable financial resources and income
eligibility requirements of the Act. Section 4009 also requires the
Secretary to set standards for each State agency to establish
agreements, to the maximum extent practicable, with entities
responsible for the regulation or sponsorship of gaming in the State
(gaming entities) to identify SNAP individuals with substantial
winnings. The proposed rule added provisions regarding the
disqualification based on receipt of substantial winnings in section
273.11(r), agreements between State agencies and gaming entities in
section 272.17, and requirements for households to report substantial
winnings in section 273.12. The final rule adopts the proposed
provisions with changes discussed below.
Disqualification for Substantial Lottery or Gambling Winnings
Section 4009 gives the Secretary authority to define what amount
constitutes substantial lottery and gambling winnings, that when
received by a household, results in an immediate disqualification for
SNAP benefits. The proposed rule defined substantial winnings as
$25,000 or more, before taxes or other amounts are withheld, won in a
single game.
Of the 19 comments received regarding the lottery provision, only
10 commenters discussed the $25,000 proposed threshold, the definition
of substantial based on gross versus net winnings, and the
disqualification to the entire household. Three of the 10 commenters
agreed with the definition of substantial winnings as defined in the
proposed rule. Five commenters expressed concern about the definition
of substantial winnings being based on gross, not net, winnings. These
five commenters noted that if substantial taxes are withheld or
intercepted for debt collection, this would result in the household
receiving less than $25,000. One of the five comments addressing net
winnings suggested that the Department change the threshold to $50,000
after taxes and other amounts withheld and requested that the
Department distinguish between the definitions of lottery and gambling
winnings. While the Department appreciates the comments on considering
net versus gross winnings, it is impractical for a State agency to
collect information on net winnings and would result in undue State
burden. In addition, if an individual's net winnings cause the
household to fall below the allowable SNAP income and resource
requirements, the household may reapply for SNAP benefits.
One commenter questioned why the entire household must be
disqualified for substantial winnings. The Department does not have
discretion to limit the disqualification for substantial lottery and
gambling winnings to only the individual that receives the winnings,
and not the entire household. Section 4009 specifically imposes
ineligibility for the household in which a member receives substantial
lottery or gambling winnings, not just the individual.
As to the comment suggesting that disqualification be based on
either lottery or gambling winnings, but not both, the statute also
bases the disqualification on ``lottery or gambling winnings.''
Therefore, either substantial lottery or gambling winnings result in
disqualification. The Department does not see a rationale for
differentiating between lottery and gambling winnings.
Three comments suggested that the $25,000 threshold for substantial
winnings in the proposed rule was too high. One of these comments
suggested that the Department change the threshold to $2,250 because it
aligns with the non-elderly/disabled resource limit in section 5(g) of
the Act, and is already programmed in State eligibility systems,
thereby easing State administrative application of this provision.
Another commenter suggested lowering the threshold to $5,000. The last
of the three comments requested that the threshold be optional to
account for States with lower, more restrictive resource limits. Taking
into consideration the varied comments, the Department has decided to
align the definition of substantial lottery and gambling winnings with
the statutory resource limit for elderly or disabled households in the
final rule. The Department believes this change will simplify
administration of the provision and enhance program integrity. Aligning
the threshold with the non-elderly/disabled resource limit would
restrict eligibility for elderly or disabled households whose winnings
exceed the lower resource limit but may not meet or exceed the higher,
elderly or disabled resource limit. Imposing a limit for all households
linked to the resource limit for elderly or disabled households
balances the intent to enhance program integrity with ensuring that
households with small winnings can continue to participate in the
program up to the statutory resource limit.
Consequently, the Department is modifying the final rule regulatory
text regarding the threshold for substantial winnings. In the final
rule, substantial lottery or gambling winnings are defined as a cash
prize won in a single game, before taxes or other amounts are withheld,
which is equal to or greater than the resource limit for elderly or
disabled households as defined in 7 CFR 273.8(b). For administrative
simplicity, all households certified to receive SNAP benefits will be
subject to this definition of substantial winnings, regardless of
whether they contain an
[[Page 15086]]
elderly or disabled member. This rule creates a new section 273.11(r)
to codify the disqualification and definition.
Adjustment for Inflation
In the proposed rule, the Department intended to adjust the $25,000
lottery and gambling threshold for inflation by recalculating the
threshold each fiscal year and rounding the amount to the nearest
$5,000. The Department received four comments regarding annually
adjusting the lottery and gambling threshold for inflation. One
commenter supported adjusting the threshold for inflation, while three
commenters disagreed with adjusting for inflation annually. These three
commenters noted that adjusting the threshold annually would increase
State administrative burden.
Since the lottery and gambling threshold for this provision now
aligns with the resource limit for elderly or disabled households, the
threshold shall be adjusted for inflation in accordance with 7 CFR
273.8(b)(1) and (2). The threshold shall be rounded down to the nearest
$250 increment to reflect the changes for the 12-month period ending
the preceding June in the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the Department of Labor.
State agencies will continue to receive an updated resource limit
annually in the Cost of Living Adjustment Memorandum, which will
indicate the lottery and gambling substantial winnings threshold
amount. In Fiscal Year 2019, the Federal resource limit for elderly or
disabled households is $3,500. The Department believes that aligning
the threshold with the statutory resource limit and the current
procedure for adjustment for inflation, will minimize State
administrative burden. This change is codified in the final rule
regulatory text at 273.11(r)(2)(ii).
Cooperative Agreements
The Department proposed to add new section 272.17 to codify the
section 4009 requirement that State agencies, to the maximum extent
practicable, establish agreements with gaming entities in order to
identify individuals within the state with substantial winnings who are
members of a SNAP household. The Department received five comments
addressing this requirement. One comment noted that the match is
critical, effective, and reduces burden on SNAP households. Four
comments expressed concern regarding State agencies establishing
cooperative agreements with gambling and lottery entities, noting that
establishing the agreements will be problematic, burdensome, and
increase costs to the State. Of these four comments, one comment asked
for clarity on what would be considered a good faith effort and a
practical number of gaming entities with which to establish agreements.
The Department appreciates the concerns expressed about
establishing agreements with gaming entities; however, section 4009
requires the establishment of these agreements to the maximum extent
practicable. In implementing this requirement, the Department
understands that the types of lottery and gambling activities allowed
within a State, and the administration and oversight of these games,
vary from State to State. For example, some States may have a large
number of small entities that pay out only minimal winnings, and it may
not be feasible to enter into agreements with all of these entities.
State agencies are expected to make a good faith effort to include as
many gaming entities in their implementation of this rule as
practicable. While households must always report substantial lottery or
gambling winnings as proposed in section 273.12(a)(5)(iii)(G)
(discussed below), if a State agency and gaming entity cannot come to
an agreement after the State agency made a good faith effort, then the
State agency would not need to continue to pursue an agreement with
that gaming entity at that time. If there are no gaming entities in the
State, the State agency is not expected to establish cooperative
agreements.
One commenter requested clarity on how States should detect out-of-
State winners. Section 4009 does not differentiate the disqualification
for receipt of substantial lottery and gambling winnings based on in-
State or out-of-State winnings. States are not required to enter into
cooperative agreements with out-of-State gaming entities. However,
households are required to report substantial winnings, regardless if
they are won in-State or out-of-State. If a State agency becomes aware
of a household member winning substantial winnings from a gaming entity
outside of the State, then the State would follow procedures under
273.12(c)(3) for unclear information if that information is not
verified and clear. The Department believes the proposed rule was
sufficiently clear on the requirement for State agencies to establish
cooperative agreements with gaming entities, and is not making changes
in the final rule, but will clarify as needed with additional guidance
as States implement the provision.
One commenter questioned whether gaming entities would be
compensated for costs associated with establishing cooperative
agreements and suggested that the costs included in the proposed
information collection appeared to be minimal. The Department is not
authorized to reimburse gaming entities for their business costs, but
the associated allowable State agency costs of cooperative agreements
would be reimbursed at 50 percent in accordance with 277.4(b). The
Department will clarify as needed with additional guidance as States
implement the provision.
In the final rule, the Department is revising the requirements for
the State Plan of Operation in 272.2(d)(1) to include information about
cooperative agreements into which the State has entered with gaming
entities.
Privacy Concerns
The Department proposed that a cooperative agreement established
between the State agency and a gaming entity would specify that the
gaming entity would share information about individuals with
substantial winnings with the State agency as frequently as is feasible
to identify SNAP recipients with substantial winnings. The Department
received four comments that expressed concern about safeguarding
confidential information of SNAP applicants and recipients. As noted in
the proposed rule, cooperative agreements are to solely allow for the
gaming entities to transmit information to State agencies; State
agencies are prohibited from sharing any information about SNAP
households with gaming entities. Cooperative agreements shall specify
the type of information shared by the gaming entity and include
safeguards limiting the release and disclosure of personally
identifiable information to parties outside of those included in the
agreement. The Department has incorporated a reference to 272.1(c),
which protects privacy concerns, at 272.17(b) in the final rule and
believes this adequately addresses the concerns.
Self-Reporting
The Department proposed to add paragraph 273.12(a)(1)(viii) and
revise paragraphs 273.12(a)(5)(iii)(E) and 273.12(a)(5)(vi)(B) to
require households to self-report substantial winnings to the State
agency administering the household's SNAP benefits, in accordance with
the reporting timeframes outlined in section 273.12(a)(2). The
Department received five comments about SNAP recipients self-reporting
substantial winnings to
[[Page 15087]]
State agencies. Of the five comments, one comment suggested that State
agencies should rely on self-reporting, the media, and Internal Revenue
Service (IRS) yearly tax reports to identify SNAP recipients who win a
substantial amount of lottery and gambling winnings. Another of the
five comments noted that gambling winnings are already tracked by the
IRS and easy to find. One commenter disagreed with adding the reporting
requirement, while another comment encouraged the Department to ensure
that reporting requirements do not unduly burden SNAP households. The
last of the five comments supported the self-reporting requirement and
suggested that the disqualification for not reporting substantial
lottery and gambling winnings should not extend to the entire
household, but only to the individual who did not report.
The Department appreciates the comments received concerning the
burden to SNAP households that must self-report substantial winnings.
However, households certified to receive SNAP must report substantial
winnings so that the State agency may immediately act on household
changes, as required by section 4009.
The Department is adopting the regulatory text from the proposed
rule as final, and is making two clarifications due to the previous
publication of the ``Supplemental Nutrition Assistance Program (SNAP):
Eligibility, Certification, and Employment and Training Provisions of
the Food, Conservation and Energy Act of 2008'' final rule on January
6, 2017 (82 FR 2010) (FCEA final rule), which made changes to section
273.12(a)(2). The Department is clarifying that, in accordance with
section 273.12(a)(2), certified SNAP households must report substantial
lottery and gambling winnings, as defined by this final rule, within 10
days of the date the household receives the substantial winnings or, at
the State agency's option, within 10 days of the end of the month in
which the household received the winnings. Additionally,
273.12(a)(5)(iii)(E) was re-designated as 273.12(a)(5)(iii)(G) in the
FCEA final rule, and, therefore, the Department is codifying the
requirement for households to self-report substantial winnings at
section 273.12(a)(5)(iii)(G) in the final rule.
Informing SNAP Households of the Disqualification for Substantial
Lottery and Gambling Winnings
The Department received four comments addressing the proposed
requirement in section 272.17(c)(4) for State agencies to provide
households with a notice of adverse action as described in section
273.13 before terminating benefits based on receipt of substantial
lottery and gambling winnings. One of the four comments requested
clarity on how States may inform SNAP households of the new lottery and
gambling disqualification, and the rules for re-establishing
eligibility for SNAP. Two of the four comments agreed with the
Department's position that it is not necessary to include a question on
the initial SNAP application asking applicants if anyone in the
household has ever received substantial lottery or gambling winnings as
section 4009 is aimed at households already participating in SNAP. The
last of the four comments requested clarity on notices informing
households of its ineligibility for SNAP.
As noted in the preamble to the proposed rule, this
disqualification applies to participating SNAP households. Current
regulations at 7 CFR 273.2(e)(1) require the State agency to inform
households during the interview of their rights and responsibilities,
including the households' responsibility to report changes. Therefore,
at the time a household is certified to receive SNAP, the State agency
is required to inform the household that it may lose eligibility for
SNAP if a household member receives substantial lottery and gambling
winnings.
States have flexibility in determining how to best inform
households that have been disqualified due to receipt of substantial
lottery or gambling winnings of the requirements for re-establishing
eligibility. Such information may be provided in various ways,
including at the time of case closure and/or the notice of adverse
action. Including information in the notice of adverse action about how
households may regain eligibility is a best practice for informing
households that have been disqualified due to significant lottery or
gambling winnings. The Department is making no changes in the final
rule because it believes that the rule as proposed sufficiently
addressed the above issues.
Verification of Data Matches
In new section 272.17(c), the Department proposed to give State
agencies discretion to determine whether information about a SNAP
household member's receipt of substantial lottery or gambling winnings
received through data matches with gaming entities is verified upon
receipt. The Department received three comments addressing verification
of data matches. One commenter supported this discretion; two
commenters recommended requiring States to send a notice to households
to verify lottery or gambling winnings information received from data
matches with gaming entities before disqualifying households. As noted
in the proposed rule, data received through cooperative agreements with
gaming entities may come from a wide variety of gaming entities (e.g.
public or private entities; local, statewide or national entities) with
varying degrees of reliability.
Based upon the comments and further review, the Department has
determined that information from data matches regarding lottery or
gambling winnings does not fall within the definition in
273.2(f)(9)(iii) of information that is ``verified upon receipt.''
However, State agencies have existing discretion in 273.2(f)(2) and (3)
to determine what information is questionable and requires
verification, so long as the criteria used is consistent. In this final
rule, the Department is clarifying that the standards regarding
verification in 273.2(f)(2) and (3) apply to information from data
matches regarding lottery and gambling winnings.
In section 272.17(c)(4), the Department proposed requiring State
agencies to send households a notice of adverse action, in accordance
with section 273.13 and prior to termination, when the household
receives substantial winnings during their certification period. For
households found to have received substantial winnings at the time of
their case's recertification, the proposed rule stated that the State
agency would provide these households with a notice of denial, per
section 273.10(g)(2).
Additionally, since the publication of the proposed rule, the FCEA
final rule was published on January 6, 2017. The FCEA final rule
updated procedures at section 273.12(c)(3) on how to treat unclear
information, including when the State must send households a Request
for Contact (RFC) to resolve unclear information. When information
about a household's receipt of substantial winnings during the
certification period is unclear, the State would follow the procedures
outlined at section 273.12(c)(3).
One of these commenters also suggested that State agencies request
information on deductions withheld from the household's winnings when
contacting a household after the State has learned that the household
has received substantial winnings. As previously discussed, basing the
disqualification on net, instead of gross,
[[Page 15088]]
winnings would be overly burdensome. Therefore, the Department will not
require States agencies to request information about deductions from
winnings.
The Department believes that the procedures established in the
proposed rule and those updated in the FCEA final rule give households
sufficient notice when action is taken on their case due to receipt of
substantial winnings and, therefore, is adopting the provisions as
proposed.
Eligibility for Previously Disqualified SNAP Households
Section 4009 requires that households disqualified for substantial
winnings remain ineligible until they again meet the allowable
financial resources and income eligibility requirements of the Act. The
Department received one comment that suggested adding a timeframe for
when an applicant may re-apply for SNAP benefits under program income
and resource requirements and to include an appeals process when a
household is disqualified under this rule. Since section 4009 provides
that a household remain ineligible ``until the household meets the
allowable financial resources and income eligibility requirements,''
specifying a timeframe is not appropriate since any set timeframe may
not reflect the circumstances under which a disqualified household does
become eligible again. This final rule adopts the proposed rule's
language that previously disqualified households remain ineligible
until they meet the income and eligibility requirements outlined in
sections 273.8 and 273.9. In addition, the right to request a fair
hearing under section 273.15 for an action that affects a household's
participation in the program applies to households disqualified under
this rule for substantial lottery and gambling winnings without need
for an explicit statement.
The Department received three comments requesting guidance on how
the new lottery and gambling disqualification in this rule applies to
households certified for SNAP under categorical eligibility
requirements defined at 7 CFR 273.2(j). Under this rule, households
certified to receive SNAP benefits under section 273.2(j) that lose
eligibility because an individual member received substantial lottery
or gambling winnings, as defined by this rule, will remain ineligible
until they meet the income and eligibility requirements in the Act
detailed in sections 273.8 and 273.9, as required by section 4009. The
Department will make no changes to the final rule.
Section 4015: Mandating Certain Verification Systems
Section 4015 of the 2014 Farm Bill amended section 11(p) of the Act
(7 U.S.C. 2020(p)) to require State agencies to use an immigration
status verification system established under section 1137 of the Social
Security Act (SSA) (42 U.S.C. 1320b-7) and an income and eligibility
verification system, in accordance with standards set by the Secretary.
Before the 2014 Farm Bill, State agencies were not required to use
either of these verification systems.
Immigration Status and Verification Systems
Background
Current regulations at 7 CFR 273.2(f)(1)(ii) require that State
agencies verify the eligible immigration status of all non-citizens
applying for SNAP benefits but do not specify the system that State
agencies must use. The amendments made by the 2014 Farm Bill mandate
that State agencies use an immigration status verification system
established under section 1137 of the SSA. Section 1137(d)(3) of the
SSA (42 U.S.C. 1320b-7(d)(3)) requires verification of immigration
status ``through an automated or other system'' designated by the
Immigration and Naturalization Service (INS) for use by the States. The
only immigration status verification system currently designated under
section 1137 of the SSA is the Systematic Alien Verification for
Entitlements (SAVE) Program.
SAVE is an inter-governmental service accessible by Federal, State,
and local benefit-granting agencies and licensing bureaus that are
authorized by law to verify immigration status. State agencies use the
SAVE system to verify the immigration status of SNAP applicants,
ensuring benefits are only provided to individuals whose citizenship or
immigration status allows them to receive SNAP. As discussed in the
preamble to the proposed rule, under the Homeland Security Act of 2002
(Pub. L. 107-296), INS functions transferred from the Department of
Justice to the newly created Department of Homeland Security (DHS).
Within DHS, the U.S. Citizenship and Immigration Services (USCIS)
administers the SAVE program.
USCIS has confirmed that the only two ways a SNAP State agency can
currently verify immigration status with USCIS are both through the
SAVE system. Under electronic verification, a State agency submits a
request electronically and the SAVE system either confirms the
applicant's status or requests submission of additional information.
Under paper-based verification, a State agency mails a completed Form
G-845, Verification Request, with a copy of the applicant's
documentation, to a USCIS State Verification Office. A State agency may
also attach a Form G-845 Supplement, Document Verification Request
Supplement, to request more detailed information on an applicant's
immigration status, citizenship, and sponsorship. To conduct either
electronic or paper-based verification through the SAVE system, the
State agency must first sign a memorandum of agreement with USCIS.
Mandatory Use of SAVE
The Department proposed to amend regulations at 7 CFR 272.11(a) and
273.2(f)(1)(ii)(A) to require States to use an immigration status
verification system established under section 1137 of the SSA (42
U.S.C. 1320b-7) when verifying immigration status of SNAP applicants.
The Department also proposed to clarify in section 273.2(f)(1)(ii) and
(f)(10) that, even though households are still required to submit
documentation to verify the immigration status of household members who
are non-citizens, State agencies must also verify the validity of that
status with USCIS.
As discussed in the preamble to the proposed rule, all 53 State
agencies (including the District of Columbia, Guam, and the Virgin
Islands) have indicated to FNS that they already use the SAVE system to
verify immigration status. Commenters were, therefore, generally
supportive of the proposed changes, with one noting that SAVE is a
system that States are already using and requiring its use ensures
compliance with statutory and regulatory requirements without imposing
new burdens or costs on States. Three commenters made requests for
clarification.
One commenter asked the Department to clarify that the use of SAVE
is limited to verifying the status of any non-citizen household member
applying for SNAP, but not for any non-applicant household members,
including individuals applying on behalf of a household. As per current
regulations, the status of non-applicant household members does not
need to be verified. The Department believes the proposed language at
section 273.2(f)(10) requiring documentation and verification ``for
each alien applying for SNAP benefits'' is sufficiently clear and is
therefore not adopting additional clarifications for non-applicant
households in the final rule.
[[Page 15089]]
Another commenter asked the Department to follow a State agency's
policy and clarify that a delay in receipt of data from the SAVE system
is not a basis for a delay in application processing timelines. Under
the State policy, if all other factors of eligibility have been
established and the non-citizen applicant is otherwise eligible,
benefits must be granted while awaiting a SAVE response. This policy is
consistent with existing regulations at section 273.2(f)(1)(ii)(B) and
no change in the final rule is necessary.
A third commenter noted the SAVE system can only verify that the
information provided by an applicant is accurate at one point in time;
if immigration status has recently changed, SAVE may not always be
updated to reflect the current status. The commenter requested the
Department clarify that, if an applicant provides paper documentation
indicating a new status, State agencies should be allowed to use
prudent judgment to determine the status of the applicant. As the
Department believes the regulatory requirements around immigration
status verification are already consistent with other verification
practices for questionable information, no additional clarifying
language has been added to the final rule. The Department believes
current verification procedures for questionable information are
sufficient for these rare occurrences.
The Department also proposed in section 273.2(f)(10)(vi) to allow,
but not require, State agencies to use SAVE to confirm whether an
affidavit of support has been executed for a sponsored non-citizen. No
comments were submitted on this issue, and the Department adopts the
provision with technical edits to ensure consistent terminology.
Technical Corrections
When INS ceased to exist on March 1, 2003, its functions
transferred from the Department of Justice to the DHS. Within DHS,
USCIS administers the SAVE program, as well as overseeing lawful
immigration to the United States and naturalization of new American
citizens. The proposed rule updated references from INS to USCIS
throughout parts 271, 272, and 273 accordingly. Commenters were either
supportive of or silent on these changes, and the final rule adopts the
changes as proposed.
Income and Eligibility Verification System (IEVS)
Section 4015 of the 2014 Farm Bill requires State agencies to use
an income and eligibility verification system (IEVS), in accordance
with standards set by the Secretary. As discussed in the preamble to
the proposed rule, standards for the optional use of IEVS already exist
at sections 272.8(a)(1), 273.2(b)(2), and 273.2(f)(9). In accordance
with the statutory changes, the Department proposed amending these
regulations to change the use of IEVS from an option to a requirement.
State agencies must follow standard verification procedures for IEVS
matches. As there were no substantive comments on these proposed
changes, the final rule adopts the changes as proposed.
III. Procedural Matters
Executive Order 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility.
This final rule has been determined to be not significant and was
not reviewed by the Office of Management and Budget (OMB) in
conformance with Executive Order 12866.
Regulatory Impact Analysis
This rule has been designated as not significant by the Office of
Management and Budget, therefore, no Regulatory Impact Analysis is
required.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612) requires Agencies
to analyze the impact of rulemaking on small entities and consider
alternatives that would minimize any significant impacts on a
substantial number of small entities. Pursuant to that review, it has
been certified that this rule would not have a significant impact on a
substantial number of small entities. While there may be some burden/
impact on State agencies and small entities involved in the gaming
industries, the impact is not significant as the burden would be on
State agencies to enter into appropriate cooperative agreements.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local and tribal
governments and the private sector. Under section 202 of the UMRA, the
Department generally must prepare a written statement, including a cost
benefit analysis, for proposed and final rules with ``Federal
mandates'' that may result in expenditures by State, local or tribal
governments, in the aggregate, or the private sector, of $100 million
or more in any one year. When such a statement is needed for a rule,
section 205 of the UMRA generally requires the Department to identify
and consider a reasonable number of regulatory alternatives and adopt
the most cost effective or least burdensome alternative that achieves
the objectives of the rule.
This final rule does not contain Federal mandates (under the
regulatory provisions of Title II of the UMRA) for State, local and
tribal governments or the private sector of $100 million or more in any
one year. Thus, the rule is not subject to the requirements of sections
202 and 205 of the UMRA.
Executive Order 12372
SNAP is listed in the Catalog of Federal Domestic Assistance
Programs under 10.551. For the reasons set forth in the Federal
Register notice published June 24, 1983 (48 FR 29115), this program is
included in the scope of Executive Order 12372 which requires
intergovernmental consultation with State and local officials.
Federalism Summary Impact Statement
Executive Order 13132 requires Federal agencies to consider the
impact of their regulatory actions on State and local governments.
Where such actions have federalism implications, agencies are directed
to provide a statement for inclusion in the preamble to the regulations
describing the agency's considerations in terms of the three categories
called for under section (6)(b)(2)(B) of Executive Order 13132. The
Department has considered the impact of this rule on State and local
governments and has determined that this rule does not have federalism
implications. Therefore, under section 6(b) of the Executive Order, a
federalism summary is not required.
Executive Order 12988, Civil Justice Reform
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is intended to have preemptive effect
with respect to any State or local laws, regulations or policies which
conflict with its provisions or which would otherwise impede its full
and timely implementation. This rule is not
[[Page 15090]]
intended to have retroactive effect unless so specified in the
Effective Dates section of the final rule. Prior to any judicial
challenge to the provisions of the final rule, all applicable
administrative procedures must be exhausted.
Civil Rights Impact Analysis
The Department has reviewed this final rule in accordance with USDA
Regulation 4300-4, ``Civil Rights Impact Analysis,'' to identify any
major civil rights impacts the rule might have on program participants
on the basis of age, race, color, national origin, sex or disability.
After a careful review of the rule's intent and provisions, the
Department has determined that the changes to SNAP regulations in this
proposed rule are driven by legislation and therefore required. The
Department specifically prohibits the State and local government
agencies that administer the program from engaging in discriminatory
actions. Discrimination in any aspect of program administration is
prohibited by SNAP regulations, the Food and Nutrition Act of 2008, the
Age Discrimination Act of 1975, section 504 of the Rehabilitation Act
of 1973, the Americans with Disabilities Act of 1990 and Title VI of
the Civil Rights Act of 1964. State agencies that participate in SNAP
must take reasonable steps to ensure that persons with Limited English
Proficiency (LEP) have meaningful access to programs, services, and
benefits. This includes the requirement to provide bilingual program
information and certification materials and interpretation services to
single-language minorities in certain project areas. SNAP State
agencies that do not provide meaningful access for LEP individuals risk
violating prohibitions against discrimination based on National Origin
in the Food and Nutrition Act of 2008, as amended, Title VI of the
Civil Rights Act of 1964 (Title VI), and SNAP program regulations. SNAP
State agencies must also ensure equal opportunity access for persons
with disabilities. This includes ensuring that communications with
applicants, participants, members of the public, and companions with
disabilities are as effective as communications with people without
disabilities. State Agencies that do not provide persons with
disabilities equal opportunity access to programs may risk violating
prohibitions against disability discrimination in the Rehabilitation
Act of 1978, the American with Disabilities Act (ADA), and SNAP program
regulations. 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 non-discrimination requirements and the
regulations at 7 CFR 272.6.
Executive Order 13175
Executive Order 13175 requires Federal agencies to consult and
coordinate with Indian 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. On August 15, 2018,
the Department participated in a Tribal Consultation on the Lottery
provisions of this rule. There were no significant comments. Tribal
organizations with gaming facilities may be approached by the State(s)
in which they are located to enter into cooperative agreements to
identify individuals with significant lottery or gambling winnings. The
Department also briefed Indian Tribes on the provisions of this rule at
a listening session on February 14, 2019. Indian Tribes were
subsequently provided the opportunity to consultation on this rule but
the Department received no feedback. If an Indian Tribe requests future
consultation, the Department will work to ensure meaningful
consultation is provided.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; 5 CFR
1320) requires the Office of Management and Budget (OMB) approve all
collections of information by a Federal agency before they can be
implemented. Respondents are not required to respond to any collection
of information unless it displays a current valid OMB control number.
In accordance with the Paperwork Reduction Act of 1995, this final
rule will contain information collections that are subject to review
and approval by the OMB; therefore, the Department submitted the
proposed rule for public comment regarding changes in the information
collection burden resulting from the provisions in this final rule.
In accordance with the Paperwork Reduction Act of 1995, the notice
included in the proposed rule invited the general public and other
public agencies to comment on the proposed information collection. This
is a new collection for final rule, Supplemental Nutrition Assistance
Program: Student Eligibility, Convicted Felons, Lottery and Gambling,
and State Verification Provisions of the Agricultural Act of 2014 (RIN
0584-AE41). Section 4009 of the Agricultural Act of 2014 (the Act)
makes SNAP participants with substantial lottery and gambling winnings
ineligible for SNAP benefits. Section 4009 of the Act also provides
that State SNAP agencies are required to the maximum extent practicable
to establish cooperative agreements with gaming entities within the
State to identify SNAP recipients with substantial winnings. USDA is
implementing section 4009 through final rulemaking.
State SNAP agencies are required, to the maximum extent
practicable, to establish cooperative agreements with gaming entities
within the State to identify SNAP recipients with substantial winnings.
Gaming entities (both State public agency and private business gaming
entities) that enter into the cooperative agreements will share
information with the State SNAP agency on individuals within their
gaming establishment who win amounts equal to or greater than the
maximum allowable resource limit for elderly or disabled SNAP
households, as defined in 7 CFR 273.8(b).
The provisions regarding students, felon disqualification and State
eligibility verification systems in this final rule do not contain
information collection requirements subject to approval by OMB under
the Paperwork Reduction Act of 1995. State agencies will be required to
make minimal, one-time changes to their application process in order to
comply with the provisions of the felon disqualification attestation
requirement. Since State agencies are already required to verify the
immigration status of non-citizens applying for the program, the impact
of this provision is negligible. Other minimal burdens imposed on State
agencies by this final rule are usual and customary within the course
of their normal business activities.
These changes are contingent upon OMB approval under the Paperwork
Reduction Act of 1995. When the information collection requirements
have been approved, the Department will publish a separate action in
the Federal Register announcing OMB approval.
Requests for additional information or copies of this information
collection should be directed to Mary Rose Conroy at 703-305-2803.
Title: Supplemental Nutrition Assistance Program: Student
Eligibility, Convicted Felons, Lottery and Gambling, and State
Verification
[[Page 15091]]
Provisions of the Agricultural Act of 2014.
Form Number: [N/A].
OMB Number: [0584-NEW].
Expiration Date: [Not Yet Determined.]
Type of Request: New collection.
Abstract: This final rule will implement section 4009 of the
Agricultural Act of 2014 (Ending Supplemental Nutrition Assistance
Program Benefits for Lottery or Gambling Winners), which provides that
a household in which a member receives substantial lottery or gambling
winnings shall lose eligibility for SNAP until the household meets
normal income and resource standards. This rule defines lottery or
gambling winnings equal to or greater than the resource limit for
elderly or disabled households as defined in 7 CFR 273.8(b) as
substantial. The provision also requires States to establish
cooperative agreements, to the maximum extent practicable, with
entities responsible for regulating or sponsoring gaming activities
(gaming entities) in their State in order to identify individuals with
substantial winnings.
This rule does not carry any recordkeeping burden. Reporting burden
details are provided below.
Affected public: State agencies, State gambling entities, gaming
entities.
Regulation Section: 7 CFR 272.17.
Respondent Type: State agency and gaming entities.
Estimated number of respondents: 250.
Total annual responses: First year 1,561,350; Ongoing 1,560,800.
Estimated annual burden hours: First year 561,920 hrs; Ongoing
193,920 hrs.
Estimated cost to respondents: First year $23,317,573; Ongoing
$3,874,373.
Description of Costs and Assumptions
In the proposed rule's information collection burden, the
Department assumed that all 53 State agencies would establish
cooperative agreements despite large variation in gaming activities
among States. The final rule's information collection estimates are
based on 50 of the 53 State agencies implementing this provision to
establish cooperative agreements. The Department assumes that at least
three of the 53 State agencies do not have gambling or lottery in the
State. These three State agencies would not be subject to this
information collection because the rule does not require States to
establish agreements with gaming entities outside of the State. These
three State agencies are required to act when a household self-reports
substantial lottery or gambling winnings, or the State learns of a
household's winnings. Nevertheless, the Department does not anticipate
that these States will experience an increased burden for action on
this information, as it is estimated that States without gaming
entities will have significantly fewer households that receive
substantial winnings. Therefore, the estimates in this final
information collection are based on 50 State agencies establishing
cooperative agreements as required by section 4009.
First Year (One-Time Occurring Costs)
It is estimated that establishing the cooperative agreements
between the State Agency and the gaming entities will take
approximately 320 hours per response (80,000 hours total). This
includes time for the State agency to reach out to gaming entities in
the State, negotiate terms for sharing identifying information of
winners, establish secure connections for sharing information, and
complete all necessary reviews of agreements by legal counsel and State
leadership. Our estimate assumes that 50 of the 53 State Agencies
receiving SNAP funding will implement this rule despite large
variations in gaming activities among States.
It is estimated that creating a computerized system to match
information on winners from gaming entities with State SNAP
participation lists will take approximately 4,160 hours per response
(208,000 hours total). All States currently make use of other
computerized data matching systems (e.g., SAVE for immigration
verification), so costs assume States will re-program existing systems.
Ongoing Yearly Costs
Once the computerized matching system is in place, the matches
between the winner list and SNAP participation list should occur
automatically and with negligible cost. There is no national database
of how many people win large amounts of money in State lotteries or
through other gaming activities. For this estimate, it is assumed that
approximately 36,000 SNAP participants (average 720 per State Agency)
nationally will be identified every year through the above matches,
but, of these, approximately 23,000 (average 460 per State agency) will
be found to have actual substantial lottery or gambling winnings (the
others may be simply misidentified because of a similar name,
inaccurate reporting, etc.). For each match, an eligibility worker
will:
Generate a notice to an identified match requesting more
information (10 minutes).
Review the returned information from the participant and
engage in any additional verification (20 minutes).
If the matched participant is not a winner--Update the
case file (10 minutes).
If the matched participant is a winner--Un-enroll the
household and send notice of adverse action (30 minutes).
Lottery or gambling winners who lose eligibility for SNAP will need
to be re-evaluated according to normal program rules if they again
decide to apply for SNAP benefits. This process will vary by State
depending on the categorical eligibility policy options in place.
Eligibility workers will need to identify if a current SNAP applicant
previously lost eligibility due to substantial winnings.
Due to the change in the final rule, lowering the threshold for
substantial lottery and gambling winnings to the $3,500 resource limit
for elderly or disabled households under 7 CFR 273.8(b), the Department
anticipates that State agencies will need to reevaluate significantly
more households than estimated in the proposed information collection.
This will increase the estimated cost and burden for States.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated Annual report Number of Estimated
Reg. section Respondent type Description of number of or record Total annual burden hours total burden Hourly wage Estimate cost
activity respondents filed responses per response hours rate * to respondents
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
7 CFR 272.17...................... State SNAP Agency ** Establish 50 5 250 320 80,000 $59.35 $4,748,000
Managers. cooperative
agreements with
State public agency
and gaming entities.
7 CFR 272.17...................... State Public Agency ** Establish 50 1 50 320 16,000 59.35 949,600
Gaming Entity cooperative
Managers. agreements with
State SNAP agency.
[[Page 15092]]
7 CFR 272.17...................... State SNAP IT Staff.. ** Create a data 50 1 50 4,160 208,000 53.74 11,177,920
matching system with
State public agency
and gaming entities.
272.17 and 273.11(r).............. State SNAP Agency Eligibility worker 50 260 13,000 0.667 8,671 21.45 185,993
Eligibility Worker. follow-up--
misidentified
winners.
7 CFR 272.17 and 7 CFR 273.11(r).. State SNAP Agency Eligibility worker 50 460 23,000 1 23,000 21.45 493,350
Eligibility Worker. follow-up--true
winners.
7 CFR 272.17 and 7 CFR 273.11(r).. State SNAP Agency Eligibility worker 50 411 20,550 1 20,550 21.45 440,798
Eligibility Worker. work new
applications (churn).
7 CFR 272.17...................... State Public Agency Input data into data 50 6,000 300,000 0.08 24,000 19.56 469,440
Gaming Entity Staff matching system for
Member. use by State SNAP
agency.
7 CFR 272.17...................... State SNAP IT Staff.. Maintain a data 50 1 50 320 16,000 53.74 859,840
matching system with
State public agency
and gaming entities.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
State Agency Subtotal Reporting............................................. 50 .............. .............. .............. .............. .............. 19,324,940
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
7 CFR 272.17...................... Gaming Entity ** Establish 200 1 200 320 64,000 40.12 2,567,680
Managers. cooperative
agreements with
State SNAP agency.
7 CFR 272.17...................... Gaming Entity Staff Input data into data 200 6,000 1,200,000 0.08 96,000 13.57 1,302,720
Member. matching system for
use by State SNAP
agency.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Business Subtotal Reporting................................................. 200 101 16,059 .............. 52,152 .............. 3,870,400
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
States and Business Reporting Grand Total Burden Estimates.............. 250 .............. .............. .............. .............. .............. 23,195,340
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* Based on the Bureau of Labor Statistics May 2017 Occupational and Wage Statistics. The salaries of State SNAP agency managers and public gaming entity managers are considered to be ``General
and Operations Managers (11-1021).'' The salaries of gaming entity managers are considered to be ``Gaming Managers (11-9071).'' The salaries of State SNAP IT Staff are considered to be
``Software Developers, Systems Software (15-1133).'' The salaries of the eligibility workers are considered to be ``Eligibility Interviewers, Government Programs (43-4061).'' The salaries of
public gaming entity staff member are considered to be ``Information and Record Clerks, All Other (43-4199).'' The salaries of gaming entity staff member are considered to be ``Gaming Cage
Workers (43-3041).'' (http://www.bls.gov/oes/home.htm).
** These are only first year costs and are next expected to re-occur annually.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of Est. total
Summary of burden Est. number of responses per Total annual hours per Est. total Cost to
respondents respondent responses response burden respondents
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reporting............................................... 250 13,224 1,557,150 .............. 561,920 $23,195,340
Recordkeeping........................................... .............. .............. .............. .............. .............. ..............
-----------------------------------------------------------------------------------------------
Total............................................... 250 .............. 1,557,150 .............. 561,920 23,195,340
--------------------------------------------------------------------------------------------------------------------------------------------------------
E-Government Act Compliance
The Department is committed to complying with the E-Government Act,
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, Claims, Food stamps, Grant programs--social
programs, 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.
For the reasons set forth in the preamble, 7 CFR parts 271, 272 and
273 are amended as follows:
0
1. The authority citation for Parts 271, 272 and 273 continues to read
as follows:
Authority: 7 U.S.C. 2011-2036.
PART 271--GENERAL INFORMATION AND DEFINITIONS
0
2. In Sec. 271.2:
0
a. In the definition of ``Alien Status Verification Index (ASVI)'',
remove the words ``Immigration and Naturalization Service'' and add, in
their place, the words ``United States Citizenship and Immigration
Services (USCIS)''.
0
b. Remove the definition of ``Immigration and Naturalization Service
(INS).''
0
c. Add a definition of ``United States Citizenship and Immigration
Services (USCIS)'' in alphabetical order.
The addition to read as follows:
Sec. 271.2 Definitions.
* * * * *
United States Citizenship and Immigration Services (USCIS) means
the U.S. Citizenship and Immigration Services, U.S. Department of
Homeland Security.
* * * * *
[[Page 15093]]
PART 272--REQUIREMENTS FOR PARTICIPATING STATE AGENCIES
0
3. Add Sec. 272.2(d)(1)(xviii) to read as follows:
Sec. 272.2 Plan of operation.
* * * * *
(d) * * *
(1) * * *
(xviii) A list indicating the names of gaming entities with which
the State agency has entered into cooperative agreements and the
frequency of data matches with such entities.
* * * * *
0
4. In Sec. 272.8(a)(1), revise the first sentence to read as follows:
Sec. 272.8 State Income and Eligibility Verification System.
(a) * * *
(1) State agencies shall maintain and use an income and eligibility
verification system (IEVS), as specified in this section. * * *
* * * * *
0
5. Amend Sec. 272.11 by revising paragraph (a) and in paragraphs (b)
and (d), remove the word ``INS'' and add in its place the word
``USCIS''.
Sec. 272.11 Systematic Alien Verification for Entitlements (SAVE)
Program.
(a) General. A State agency shall use an immigration status
verification system established under section 1137 of the Social
Security Act (42 U.S.C. 1320b-7) to verify the eligible status of all
aliens applying for SNAP benefits. USCIS maintains the Systematic Alien
Verification for Entitlements (SAVE) Program to conduct such
verification.
* * * * *
0
6. Add Sec. 272.17, to read as follows:
Sec. 272.17 Substantial Lottery or Gambling Winnings.
(a) General. Each State agency, to the maximum extent practicable,
shall establish cooperative agreements with gaming entities within
their State to identify members of certified households who have won
substantial lottery or gambling winnings as defined in Sec. 273.11(r).
(b) Cooperative Agreements. State agencies, to the maximum extent
practicable, shall enter into cooperative agreements with the gaming
entities responsible for the regulation or sponsorship of gaming in the
State. Cooperative agreements should specify the type of information to
be shared by the gaming entity, the procedures used to share
information, the frequency of sharing information, and the job titles
of individuals who will have access to the data. Cooperative agreements
shall also include safeguards to prevent release or disclosure of
personally identifiable information of SNAP recipients who are the
subject of data matches in accordance with 272.1(c).
(c) Use of information on winnings. States shall provide a system
for:
(1) Comparing information obtained from gaming entities about
individuals with substantial winnings with databases of currently
certified households within the State;
(2) The reporting of instances where there is a match;
(3) The verification of matches to determine their accuracy in
accordance with Sec. [thinsp]273.2(f);
(4) If during a household's certification period, as defined in
Sec. [thinsp]273.11(r), prior to any action to terminate the
household's benefits, the State agency shall provide the household
notice in accordance with the provisions on notices of adverse action
appearing in Sec. [thinsp]273.13. If the information received is
unclear, the State agency shall follow procedures at Sec.
273.12(c)(3). For households that are found to have received
substantial winnings at the time of the household's recertification,
the State agency shall notify such households, in accordance with the
provisions on notices of denial appearing in Sec.
[thinsp]273.10(g)(2); and
(5) The establishment and collection of claims as appropriate.
(d) Frequency of data matches. The State agency shall perform data
matches as frequently as is feasibly possible to identify SNAP
recipients with substantial winnings, as defined in Sec.
[thinsp]273.11(r); however, at a minimum the State agency shall conduct
data matches when a household files a periodic report and at the time
of the household's recertification.
(e) State Plan of Operation. The State agency shall include as an
attachment to the annual State Plan of Operation, as required in
accordance with Sec. [thinsp]272.2, the names of gaming entities with
which the State agency has entered into cooperative agreements, the
frequency of data matches with such entities.
PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS
0
7. In Part 273 remove the word ``INS'' each place it appears and add,
in its place, ``USCIS''.
0
8. Add Sec. 273.1(b)(7)(xii) to read as follows:
Sec. 273.1 Household concept.
* * * * *
(b) * * *
(7) * * *
(xii) Individuals convicted of certain crimes and who are out of
compliance with the terms of their sentence and ineligible under Sec.
273.11(s).
* * * * *
0
9. In Sec. 273.2:
0
a. Amend paragraph (b)(2) by revising the first sentence;
0
b. Amend paragraph (f)(1)(ii)(A) by revising the first sentence and
adding a new second sentence;
0
c. Amend paragraph (f)(5)(i) by adding four sentences at the end of the
paragraph;
0
d. Amend paragraph (f)(9) by revising the paragraph heading and
paragraphs (f)(9)(i) and (ii);
0
e. Amend paragraph (f)(10), by revising the introductory text and
adding paragraph (f)(10)(vi);
0
f. Revise (j)(2)(vii)(D);
0
g. Add new paragraph (o).
The revisions and additions to read as follows:
Sec. 273.2 Office operations and application processing.
* * * * *
(b) * * *
(2) * * * In using IEVS in accordance with paragraph (f)(9) of this
section, a State agency must notify all applicants for SNAP benefits at
the time of application and at each recertification through a written
statement on, or provided with, the application form that information
available through IEVS will be requested, used, and may be verified
through collateral contact when discrepancies are found by the State
agency, and that such information may affect the household's
eligibility and level of benefits. * * *
* * * * *
(f) * * *
(1) * * *
(ii) * * *
(A) The State agency shall verify the eligible status of all aliens
applying for SNAP benefits by using an immigration status verification
system established under section 1137 of the Social Security Act (42
U.S.C. 1320b-7). FNS may require State agencies to provide written
confirmation from USCIS that the system used by the State is an
immigration status verification system established under section 1137
of the Social Security Act. * * *
* * * * *
(5) * * *
(i) * * * If a SNAP applicant's attestation regarding disqualified
felon status described in Sec. 273.2(o) is questionable, the State
agency shall verify the attestation. Each element of a questionable
attestation--that the individual has been convicted of a crime listed
at Sec. 273.11(s), and that the individual is not in compliance with
the
[[Page 15094]]
terms of their sentence--shall be verified by the State agency. The
State agency shall determine whether an attestation is questionable
based on the standards established under Sec. 273.2(f)(2)(i). In
conducting verifications of questionable attestations under this
paragraph, the State agency shall establish reasonable, consistent
standards, evaluate each case separately, and document the case file
accordingly.
* * * * *
(9) Mandatory use of IEVS. (i) The State agency must obtain
information through IEVS in accordance with procedures specified in
Sec. 272.8 of this chapter and use it to verify the eligibility and
benefit levels of applicants and participating households.
(ii) The State agency must access data through the IEVS in
accordance with the disclosure safeguards and data exchange agreements
required by part 272.
* * * * *
(10) Mandatory use of SAVE. Households are required to submit
documentation for each alien applying for SNAP benefits in order for
the State agency to verify their immigration statuses. State agencies
shall verify the validity of such documents through an immigration
status verification system established under section 1137 of the Social
Security Act (42 U.S.C. 1320b-7) in accordance with Sec. 272.11 of
this chapter. USCIS maintains the SAVE system to conduct this
verification. When using SAVE to verify immigration status, State
agencies shall use the following procedures: * * *
* * * * *
(vi) State agencies may use information contained in SAVE search
results to confirm whether an alien has a sponsor who has signed a
legally binding affidavit of support when evaluating the alien's
application for SNAP benefits in accordance with the deeming
requirements described in Sec. 273.4(c)(2).
* * * * *
(j) * * *
(2) * * *
(vii) * * *
(D) Any member of that household is ineligible under Sec.
273.11(m) by virtue of a conviction for a drug-related felony, under
Sec. 273.11(n) for being a fleeing felon or a probation or parole
violator, or under Sec. 273.11(s) for having a conviction of certain
crimes and not being in compliance with the sentence.
* * * * *
(o) Each State agency shall require the individual applying for
SNAP benefits to attest to whether the individual or any other member
of the household has been convicted of a crime as an adult as described
in Sec. 273.11(s) and whether the convicted member is complying with
the terms of the sentence.
(1) The State agency shall update its application process,
including certification and recertification procedures, to include the
attestation requirement. Attestations may be done in writing, verbally,
or both, provided that the attestation requirement shall be explained
to the applicant household during the interview and the attestation is
legally binding in the law of the State. Whatever procedure a State
chooses to implement must be reasonable and consistent for all
households applying for SNAP benefits. However, no individual shall be
required to come to the SNAP office solely for an attestation.
(2) The State agency shall document this attestation in the case
file.
(3) The State agency shall establish standards for verification of
only those attestations that are questionable, as described in Sec.
273.2(f)(2). When verifying an attestation, the State agency must
verify any conviction for a crime described in Sec. 273.11(s) and that
the individual is not in compliance with the terms of the sentence.
(4) Application processing shall not be delayed beyond required
processing timeframes solely because the State agency has not obtained
verification of an attestation. The State agency shall continue to
process the application while awaiting verification. If the State
agency is required to act on the case without being able to verify an
attestation in order to meet the time standards in Sec. 273.2(g) or
Sec. 273.2(i)(3), the State agency shall process the application
without consideration of the individual's felony and compliance status.
0
10. Revise Sec. 273.5(b)(11)(ii), to read as follows:
Sec. 273.5 Students.
* * * * *
(b) * * *
(11) * * *
(ii) An employment and training program under Sec. 273.7, subject
to the condition that the course or program of study, as determined by
the State agency:
(A) Is part of a program of career and technical education as
defined in section 3 of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2302) designed to be completed in not
more than 4 years at an institution of higher education as defined in
section 102 of the Higher Education Act of 1965 (20 U.S.C. 2296); or
(B) is limited to remedial courses, basic adult education,
literacy, or English as a second language.
* * * * *
0
11. Revise Sec. 273.7(e)(1)(vi), to read as follows:
Sec. 273.7 Work provisions.
* * * * *
(e) * * *
(1) * * *
(vi) Educational programs or activities to improve basic skills or
otherwise improve employability including educational programs
determined by the State agency to expand the job search abilities or
employability of those subject to the program.
(A) Allowable educational programs or activities may include, but
are not limited to, courses or programs of study that are part of a
program of career and technical education (as defined in section 3 of
the Carl D. Perkins Act of 2006), high school or equivalent educational
programs, remedial education programs to achieve a basic literacy
level, and instructional programs in English as a second language.
(B) Only educational components that directly enhance the
employability of the participants are allowable. A direct link between
the education and job-readiness must be established for a component to
be approved.
0
12. In Sec. 273.11:
0
a. Amend paragraph (c)(1) introductory text by revising the sentence
after the paragraph heading; and
0
b. Add paragraphs (r) and (s).
The revisions and additions to read as follows:
Sec. 273.11 Action on households with special circumstances.
* * * * *
(c) * * *
(1) * * * The eligibility and benefit level of any remaining
household members of a household containing individuals determined
ineligible because of a disqualification for an intentional Program
violation, a felony drug conviction, their fleeing felon status,
noncompliance with a work requirement of Sec. 273.7, imposition of a
sanction while they were participating in a household disqualified
because of failure to comply with workfare requirements, or certain
convicted felons as provided at Sec. 273.11(s) shall be determined as
follows: * * *
* * * * *
(r) Disqualification for Substantial Lottery or Gambling Winnings.
Any household certified to receive benefits
[[Page 15095]]
shall lose eligibility for benefits immediately upon receipt by any
individual in the household of substantial lottery or gambling
winnings, as defined in paragraph (r)(2) of this section. The household
shall report the receipt of substantial winnings to the State agency in
accordance with the reporting requirements contained in Sec.
273.12(a)(5)(iii)(G)(3) and within the time-frames described in Sec.
273.12(a)(2). The State agency shall also take action to disqualify any
household identified as including a member with substantial winnings in
accordance with Sec. 272.17.
(1) Regaining Eligibility. Such households shall remain ineligible
until they meet the allowable resources and income eligibility
requirements described in Sec. Sec. 273.8 and 273.9, respectively.
(2) Substantial Winnings--(i) In General. Substantial lottery or
gambling winnings are defined as a cash prize equal to or greater than
the maximum allowable financial resource limit for elderly or disabled
households as defined in Sec. 273.8(b) won in a single game before
taxes or other withholdings. For the purposes of this provision, the
resource limit defined in Sec. 273.8(b) applies to all households,
including non-elderly/disabled households, with substantial lottery and
gambling winnings. If multiple individuals shared in the purchase of a
ticket, hand, or similar bet, then only the portion of the winnings
allocated to the member of the SNAP household would be counted in the
eligibility determination.
(ii) Adjustment. The value of substantial winnings shall be
adjusted annually in accordance with Sec. 273.8(b)(1) and (2).
(s) Disqualification for certain convicted felons. An individual
shall not be eligible for SNAP benefits if:
(1) The individual is convicted as an adult of:
(i) Aggravated sexual abuse under section 2241 of title 18, United
States Code;
(ii) Murder under section 1111 of title 18, United States Code;
(iii) An offense under chapter 110 of title 18, United States Code;
(iv) A Federal or State offense involving sexual assault, as
defined in section 40002(a) of the Violence Against Women Act of 1994
(42 U.S.C. 13925(a)); or
(v) An offense under State law determined by the Attorney General
to be substantially similar to an offense described in clause (i),
(ii), or (iii); and
(2) The individual is not in compliance with the terms of the
sentence of the individual or the restrictions under Sec. 273.11(n).
(3) The disqualification contained in this paragraph (s) shall not
apply to a conviction if the conviction is for conduct occurring on or
before February 7, 2014.
0
13. In Sec. 273.12, add paragraph (a)(1)(viii) and revise paragraphs
(a)(4)(iv), (a)(5)(iii)(G) and (a)(5)(vi)(B).
The addition and revisions read as follows:
Sec. 273.12 Reporting requirements.
(a) * * *
(1) * * *
(viii) Whenever a member of the household wins substantial lottery
or gambling winnings in accordance with Sec. [thinsp]273.11(r).
(4) * * *
(iv) Content of the quarterly report form. The State agency may
include all of the items subject to reporting under paragraph (a)(1) of
this section in the quarterly report, except changes reportable under
paragraphs (a)(1)(vii) and (a)(1)(viii) of this section, or may limit
the report to specific items while requiring that households report
other items through the use of the change report form.
(5) * * *
(iii) * * *
(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:
(1) When the household monthly gross income exceeds the monthly
gross income limit for its household size in accordance with paragraph
(a)(5)(v) of this section;
(2) Whenever able-bodied adults subject to the time limit of Sec.
[thinsp]273.24 have their work hours fall below 20 hours per week,
averaged monthly; and
(3) Whenever a member of the household wins substantial lottery or
gambling winnings in accordance with Sec. [thinsp]273.11(r).
* * * * *
(vi) * * *
(B) The State agency must not act on changes that would result in a
decrease in the household's benefits unless one of the following
occurs:
(1) The household has voluntarily requested that its case be closed
in accordance with Sec. 273.13(b)(12).
(2) The State agency has information about the household's
circumstances considered verified upon receipt.
(3) A household member has been identified as a fleeing felon or
probation or parole violator in accordance with Sec.
[thinsp]273.11(n).
(4) There has been a change in the household's PA grant, or GA
grant in project areas where GA and food stamp cases are jointly
processed in accordance with Sec. [thinsp]273.2(j)(2).
(5) The State agency has verified information that a member of a
SNAP household has won substantial lottery or gambling winnings in
accordance with Sec. [thinsp]273.11(r).
* * * * *
Dated: April 8, 2019.
Brandon Lipps,
Administrator, Food and Nutrition Service.
[FR Doc. 2019-07194 Filed 4-12-19; 8:45 am]
BILLING CODE 3410-30-P