[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]



 ========================================================================
 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. 
 
 ========================================================================
 

  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.

-----------------------------------------------------------------------

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