[Federal Register Volume 61, Number 100 (Wednesday, May 22, 1996)]
[Rules and Regulations]
[Pages 25550-25555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12851]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Food and Consumer Service
7 CFR Parts 225 and 226
RIN 0584-AB17
Determination of Eligibility for Free Meals by Summer Food
Service Program Sponsors and Free and Reduced Price Meals by Child and
Adult Care Food Program Institutions
AGENCY: Food and Consumer Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the regulations governing the collection of
social security numbers and household income information on the
application for free meals under the Summer Food Service Program (SFSP)
for Children, and for free and reduced price meals under the Child and
Adult Care Food Program (CACFP). The rule removes the requirement that
households provide the social security numbers of all adult members of
the household and requires the household to provide only the social
security number of the adult household member who signs the
application. Finally, when reporting household income, the household
will no longer be required to indicate how often individual income
amounts are received, or to calculate its total current income. All of
the above provisions are intended to reduce paperwork and facilitate
eligibility determinations for free and reduced price meals by
simplifying the application requirements for both households and
approving officials, while maintaining program integrity.
EFFECTIVE DATE: June 21, 1996.
FOR FURTHER INFORMATION CONTACT: Robert M. Eadie or Edward Morawetz,
Policy and Program Development Branch, Child Nutrition Division, Food
and Consumer Service, Department of Agriculture, 3101 Park Center
Drive, Room 1007, Alexandria, Virginia 22302 or telephone 703-305-2620.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not significant for purposes of
Executive Order 12866, and, therefore, has not been reviewed by the
Office of Management and Budget.
Regulatory Flexibility Act
This rule has also been reviewed with regard to the requirements of
the Regulatory Flexibility Act (5 U.S.C. 601-612). The Administrator of
the Food and Consumer Service has certified that this rule will not
have a significant economic impact on a substantial number of small
entities. The effect of the provisions of this rule will be to reduce
paperwork and facilitate eligibility determinations for free and
reduced price meals by simplifying the application requirements for
both households and approving officials, while maintaining program
integrity.
Executive Order 12372
The CACFP and SFSP are listed in the Catalog of Federal Domestic
Assistance under No. 10.558 and 10.559, respectively, and are subject
to the provisions of Executive Order 12372, which requires
intergovernmental consultation with State and local officials (7 CFR
Part 3015, Subpart V, and final rule related notice published at 48 FR
29114, June 24, 1983).
Information Collection
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3520), the reporting and recordkeeping changes included in this
rule have been approved by the Office of Management and Budget (OMB)
under control numbers 0584-0055 and 0584-0280.
Executive Order 12778
This rule has been reviewed under Executive Order 12778, 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
implementation. This rule is not intended to have retroactive effect
unless so specified in the ``Effective Date'' section of this preamble.
Prior to any judicial challenge to the provisions of this rule or the
application of its provisions, all applicable administrative procedures
must be exhausted. In the SFSP, the administrative procedures are set
forth under the following regulations: (1) Program sponsors and food
service management companies must follow State agency hearing
procedures issued pursuant to 7 CFR Sec. 225.13; and (2) Disputes
involving procurement by State agencies and sponsors must follow
administrative appeal procedures to the extent required by 7 CFR
Sec. 225.17 and 7 CFR Part 3015. In the CACFP, the administrative
procedures are set forth under the following regulations: (1)
Institution appeal procedures in 7 CFR Sec. 226.6(k); and (2) Disputes
involving procurement by State agencies and institutions must follow
administrative appeal procedures to the extent required by 7 CFR
Sec. 226.22 and 7 CFR Part 3015.
This rule codifies the amendments set forth under sections
202(b)(2)(A) and (b)(2)(B)(i) of the Child Nutrition and WIC
Reauthorization Act of 1989 (Pub. L. 101-147) regarding the collection
of social security numbers and total income calculations for programs
under the National School Lunch Act (42 U.S.C. 1751 et seq.) and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.). Section 202(c) of
Pub. L. 101-147 required that final regulations be issued incorporating
these amendments by July 1, 1990. However, we were unable to issue
regulations on the collection of social security numbers and total
income calculation amendments before the statutory deadline. The
provisions were implemented by a policy memorandum issued on May 18,
1990.
This rule is being issued as a final rule, rather than a proposed
rule, because of the mandated implementation date. Further, this rule
is being issued as a final rule because of the need to formally
implement these changes to the application procedures. Although a
policy memorandum has already been distributed to give State agencies
guidance, the SFSP and CACFP regulations must be amended to codify the
changes mandated by sections 202(b)(2)(A) and 202(b)(2)(B)(i) of Pub.
L. 101-147. Final regulations have already been promulgated
incorporating these changes for the National School Lunch, School
Breakfast and Special Milk Programs (56 FR 33857, July 24, 1991). For
consistency and simplicity, it is important that the SFSP and CACFP
regulations be amended to conform with the National School Lunch,
School Breakfast, and Special Milk Program regulations. Finally, the
changes to the application being made by this rulemaking will simplify
the application procedures for households. For these reasons, the
Administrator of the Food and Consumer Service has determined, in
accordance with 5 U.S.C. 553(b)(3)(B), that it is impracticable and
[[Page 25551]]
contrary to public interest to take prior public comment and that good
cause therefore exists for publishing this rule without prior public
notice and comment.
Background
For the purpose of determining eligibility for free meals in the
SFSP and free and reduced price meals in the CACFP, sponsors/
institutions must distribute free meal or free and reduced price meal
applications to the families of enrolled participants. Prior to the
amendments made by Pub. L. 101-147, under both programs, households
applying for benefits were required to submit an application containing
complete documentation of eligibility, as defined in Sections 225.2,
``Documentation,'' and 225.15(f) of the SFSP regulations (7 CFR Part
225) and Sections 226.2, ``Documentation,'' and 226.23(e)(1) of the
CACFP regulations (7 CFR Part 226). Under current Sections 225.15(f)(3)
and 226.23(e)(1)(iv) of the SFSP and CACFP regulations, respectively,
``documentation'' for participating children who were members of Aid to
Families with Dependent Children (AFDC) assistance units or food stamp
households means the completion of the following information on the
application: the child's name; a current food stamp or AFDC case
number; and the signature of an adult household member. Under current
Section 226.23(e)(1)(v) of the CACFP regulations, for adult
participants who were members of food stamp households or who receive
assistance under the Supplemental Security Income (SSI) for the Aged,
Blind and Disabled Program or under the Grant to States for Medical
Assistance Programs (Medicaid), ``documentation'' of eligibility means
the completion of the following information on the application: the
name of the adult participant; his/her food stamp case number or SSI or
Medicaid identification number; and the signature of an adult household
member.
In all other cases, under current regulations, documentation for
all children in the SFSP and for all children and adults applying for
participation in the CACFP consists of a completed free meal or free
and reduced price meal application that, pursuant to Section
225.15(f)(2) of the SFSP regulations and Sections 226.23(e)(1)(ii) and
(iii) of the CACFP regulations includes: the names of the child or
adult for whom application is being made; the names of all other
household members; social security numbers for all adult household
members or an indication that an adult household member did not have a
social security number; the total current income and the income
received by each household member identified by source; and the
signature of an adult household member. The official responsible for
making eligibility determinations (the ``determining official'') for
free or reduced price benefits is required to review the application to
ensure that it is complete and, for households that submitted income
information, to compare the household size and income to the Income
Eligibility Guidelines issued annually by the Department. Households
that provide a food stamp, AFDC, Medicaid or SSI number on the
application are considered categorically eligible for free meals.
Social Security Numbers
Section 202(b)(2)(A) of Pub. L. 101-147, enacted on November 10,
1989, amended section 9(d)(1) of the National School Lunch Act (42
U.S.C. 1758(d)(1)) to eliminate the requirement for the collection of
the social security numbers of all adult household members as a
condition of eligibility for participants who are not categorically
eligible for benefits. Rather, the law now requires that the member of
the household who executes the application include the social security
number of the parent or guardian who is the primary wage earner
responsible for the care of the child for whom application is made, or
the number of another appropriate adult member of the child's
household, as determined by the Secretary. Additionally, section
9(d)(1), as further amended by section 202(b)(2)(A) of Pub. L. 101-147,
requires that the household provide the social security numbers of each
adult household member if the application is selected for verification
of eligibility.
On May 9, 1990, the Department issued an interim rule at 55 FR
19237 which implemented sections 202(b)(2)(A) and (B) of Pub. L. 101-
147 in the National School Lunch, School Breakfast and Special Milk
Programs. That interim rule gave households the option of providing
either the social security number of the primary wage earner or that of
the household member signing the application. This option was provided
in the interim rule because the Department wished to provide households
with flexibility in complying with the social security number
requirement. In order to provide guidance to SFSP and CACFP
administrators and beneficiaries prior to the July 1, 1990, legislative
deadline, and in the interest of maintaining as much consistency as
possible in the free and reduced price meal application process among
the Child Nutrition Programs, an identical policy was established for
the SFSP and the CACFP in a policy memorandum issued by the Department
on May 18, 1990.
Commenters on the interim rule for the school programs, as well as
other State and local school officials who have informally advised the
Department of their experiences with the application process, believe
that providing households with this option would actually result in
complicating, rather than simplifying, the application process and
would add to paperwork and administrative burdens. In response to those
comments, the final rule governing free and reduced price applications
in the National School Lunch, School Breakfast and Special Milk
Programs requires only that the social security number of the adult
household member who signs the application be provided (56 FR 33857,
July 24, 1991). In lieu of providing a social security number, the
adult household member signing the application may indicate that he or
she does not possess one. In making this change from the interim rule,
the Department believed that the final School Programs rule further
simplified the application process, while maintaining program
integrity, since the adult who signs the application must also certify
that the information on the application is true and correct. Based on
the foregoing, and in an effort to maintain consistency among the Child
Nutrition Programs, this interim rule adopts the same application
requirements for the SFSP and the CACFP.
Accordingly, this rule amends Sections 225.2, ``Documentation,''
and 225.15(f)(2)(iii) of the SFSP regulations and Sections 226.2,
``Documentation,'' and 226.23(e)(1)(ii)(C) and (iii)(C) of the CACFP
regulations to require a completed application to include the social
security number of the adult household member who signs the
application. As permitted in current regulations, if the adult
household member signing the application does not have a social
security number, the household may indicate this fact in lieu of
providing a social security number.
In a related area, section 7(b) of the Privacy Act of 1974 (5
U.S.C. 552a note) requires agencies to give advance notice and
disclosure to the public of any requirement to provide social security
numbers and of the uses to be made of those social security numbers. In
accordance with this law, the Department requires that any individual
[[Page 25552]]
required to disclose his/her social security number must be informed:
(1) whether that disclosure is mandatory or voluntary; (2) by what
statutory authority or other authority each number is solicited; and
(3) what uses will be made of the number. The current SFSP and CACFP
regulations at Section 225.15(f)(2)(vi), and Sections
226.23(e)(1)(ii)(F) and (iii)(E) contain the Department's prototype
Privacy Act Statements for free and reduced price applications. They
reflect the statutory requirement in effect prior to the enactment of
Pub. L. 101-147 that the application contain the social security number
of each adult household member. These prototype Privacy Act Statements
must also be modified to include the requirement that only the social
security number of the adult household member signing the application
need be provided (or an indication that he or she does not possess
one). In addition, a new Section 225.15(f)(4) must be added and Section
226.23(h)(2)(iii) must be revised to require that households selected
for verification provide the social security number for each adult
household member (or an indication that the member does not possess a
number) and that the notice of selection for verification also include
a statement which meets the requirements of section 7(b) of the Privacy
Act of 1974 (5 U.S.C. 552a note). State agencies and institutions
should contact their own legal counsel to ensure that their notices
comply with the Privacy Act requirements.
Accordingly, this rule amends Section 225.15(f)(2)(vi) of the SFSP
regulations and Sections 226.23(e)(1)(ii)(F) and (iii)(E) of the CACFP
regulations to make the aforementioned changes to each Program's
prototype Privacy Act statement. In addition, Section 225.15(f)(4) has
been added to the SFSP regulations and Section 226.23(h)(2)(iii) of the
CACFP regulations has been revised to require that households selected
for verification must provide the social security number of each adult
member, or an indication that a household member does not possess one.
This rule also makes several technical changes to Part 226 to
conform with the requirement that only the social security number of
the adult household member signing the application for free and reduced
price meals must be provided. Specifically, this rule amends the
provisions found at Sections 226.15(e)(2), 226.15(e)(3), 226.17(b)(7),
226.18(f), 226.19(b)(8)(i), and 226.19a(b)(8) which govern various
documentation and record retention requirements for participation in
the CACFP. This rulemaking amends these sections to require that the
documentation for eligibility and retention of information conform with
Section 226.23(e)(1). As mentioned above, as a result of this rule,
Section 226.23(e)(1) will now require only the social security number
of the adult household member signing the application. In lieu of
providing a social security number, the adult household member signing
the application may indicate that he or she does not possess one.
Income Information
Section 202(b)(2)(B)(i) of Pub. L. 101-147 amended section
9(d)(2)(A) of the National School Lunch Act (42 U.S.C. 1758(d)(2)(A))
to require that households provide appropriate documentation relating
to their income so that individuals responsible for approving free and
reduced price applications may calculate the total current income for
use in determining eligibility for benefits. The current regulations at
Sections 225.2, ``Documentation,'' and 225.15(f)(2) and Sections 226.2,
``Documentation,'' and 226.23(e)(1)(ii)(D) and (iii)(D), require that
households provide the total household income on the application, as
well as the income received by each household member, identified by
source and amount. Based on the language of Pub. L. 101-147, this rule
eliminates the requirement that the applicant household calculate total
income. The elimination of this requirement will further simplify the
application process and will reduce the burden on determining
officials, who previously had to contact the household when there were
inconsistencies between the sum of the income received by each
household member identified by source and the total income figure for
the household. As a result of this interim rule, the determining
official will now use the income information provided by households to
calculate the household's total current income. Households will still
be required to indicate the amount of income received by each household
member, identified by source.
A technical change is also being made to Sections 225.2,
``Documentation,'' and 225.15(f)(2) of the SFSP regulations and
Sections 226.2, ``Documentation,'' and 226.23(e)(1)(ii)(D) and (iii)(D)
of the CACFP regulations to add, as necessary, the phrase ``other cash
income'' to the examples of sources of income (i.e., earnings, wages,
welfare, pensions, support payments, unemployment compensation, and
social security). This technical change is being made to bring about
consistency within each Part, as well as with the other child nutrition
programs covered by 7 CFR Part 245 (Determining Eligibility for Free
and Reduced Price Meals and Free Milk in Schools). No change is being
made regarding the type of income to be reported on free and reduced
price meal applications. Further, a technical amendment is being made
to Section 225.15(f)(2)(iv) to make the language describing the sources
of income conform with the examples of sources of income found in
Section 225.2, ``Documentation,'' and with the sources of income
regulations under the National School Lunch, School Breakfast, and
Special Milk Programs. A technical change is also being made to
incorporate the undesignated paragraph into the introductory paragraph
in Section 225.15(f)(3).
Accordingly, the Department is amending Section 225.2,
``Documentation,'' and Section 225.15(f)(2) of the SFSP regulations and
Sections 226.2, ``Documentation,'' and 226.23(e)(1)(ii)(D) and (iii)(D)
of the CACFP regulations to eliminate the requirement that households
provide their total income on the application and to make the other
technical changes discussed above.
Definition of Income
To simplify the application process, the Department is amending the
definition of ``Current income'' at Section 226.2 of the CACFP
regulations and adding a definition of ``Current income'' at Section
225.2 of the SFSP regulations to reflect the actual treatment of income
by households submitting income information on the application and by
determining officials reviewing that information. Currently, in Section
226.2, ``Current income'' is defined as ``income received during the
month prior to application for free or reduced-price meals and
multiplied by 12.'' The definition further requires that, if this
income does not accurately reflect the household's annual income, the
income determination must be based on the household's projected annual
income. In practice, however, most determining officials do not convert
the income amounts listed for each household member to an annual income
figure. Rather, if any income is reported as other than a monthly
amount, most determining officials convert these income amounts to a
monthly income figure and base eligibility on total monthly household
income.
Therefore, the definition of ``Current income'' added to Section
225.2 and the definition of ``Current income'' at Section 226.2, as
amended by this rule,
[[Page 25553]]
define ``Current income'' simply as income received during the month
prior to application, and the reference to annualization is being
deleted. If the prior month's income is not representative of the
household's annual rate of income, the household must still report its
projected annual income.
Accordingly, Section 226.2 of the CACFP regulations is amended, and
a definition of ``Current income'' is added to Section 225.2 of the
SFSP regulations, to define ``Current income'' as income received
during the month prior to application for free or reduced-price meals.
Technical Changes to OMB Control Numbers
The OMB Control Number table found at Section 225.20 is revised to
reflect current OMB control numbers for information collection/
recordkeeping requirements for the following Sections: 225.3-225.4;
225.6-225.10; 225.12- 224.13; and 225.15-225.18.
Request for Comments
Since the Department has exercised some discretion in the
implementation of these provisions, comments and suggestions are
particularly encouraged on the following amendments: (1) the
requirement that only the social security number of the adult household
member who executes the application be provided; and (2) the
requirement that households report only monthly income for each member.
The Department reminds commenters that the changes to the application
requirements are intended to reduce paperwork by simplifying the
application requirements while maintaining program integrity.
List of Subjects
7 CFR Part 225
Food assistance programs, Grant programs--health, infants and
children.
7 CFR Part 226
Day care, Food assistance programs, Grant programs--health, infants
and children, Reporting and recordkeeping requirements, Surplus
agricultural commodities.
Accordingly, 7 CFR Parts 225 and 226 are amended as follows:
PART 225--SUMMER FOOD SERVICE PROGRAM
1. The authority citation for Part 225 continues to read as
follows:
Authority: Secs. 9, 13 and 14, National School Lunch Act, as
amended (42 U.S.C. 1758, 1761 and 1762a).
2. In Section 225.2:
a. A new definition of Current income is added in alphabetical
order.
b. Paragraph (a) of the definition of Documentation is revised.
The addition and revision specified above read as follows:
Sec. 225.2 Definitions.
* * * * *
Current income means income, as defined in Section
225.15(f)(2)(iv), received during the month prior to application for
free meals. If such income does not accurately reflect the household's
annual income, income shall be based on the projected annual household
income. If the prior year's income provides an accurate reflection of
the household's current annual income, the prior year may be used as a
base for the projected annual income.
* * * * *
Documentation means (a) the completion of the following information
on a free meal application:
(1) names of all household members;
(2) income received by each household member, identified by source
of income (such as earnings, wages, welfare, pensions, support
payments, unemployment compensation, social security and other cash
income);
(3) the signature of an adult household member; and
(4) the social security number of the adult household member who
signs the application, or an indication that the he/she does not
possess a social security number; or,
* * * * *
3. In Section 225.15:
a. Paragraphs (f)(2)(iii) and (f)(2)(iv) are revised;
b. Paragraph (f)(2)(vi) is amended by removing the first four
sentences and by adding four new sentences in their place and by adding
a new sentence before the word ``and'' at the end of the paragraph;
c. Paragraph (f)(3) is amended by removing the undesignated text
following paragraph (f)(3)(ii) and by revising the introductory text of
paragraph (f)(3); and
d. A new paragraph (f)(4) is added.
The additions and revisions specified above read as follows:
Sec. 225.15 Management responsibilities of sponsors.
* * * * *
(f) * * *
(2) * * *
(iii) the social security number of the adult household member who
signs the application, or an indication that he/she does not possess a
social security number;
(iv) the income received by each household member, identified by
source of income (such as earnings, wages, welfare, pensions, support
payments, unemployment compensation, social security, and other cash
income);
* * * * *
(vi) a statement which includes substantially the following
information: ``Section 9 of the National School Lunch Act requires
that, unless a food stamp or AFDC case number is provided for your
child, you must include the social security number of the adult
household member signing the application, or indicate that the
household member does not have a social security number. Provision of a
social security number is not mandatory, but if a social security
number is not provided or an indication is not made that the signer
does not have a social security number, the application cannot be
approved. This notice must be brought to the attention of the household
member whose social security number is disclosed. The social security
number may be used to identify the household member in carrying out
efforts to verify the correctness of information stated on the
application. * * * The sponsor shall take the income information
provided by the household on the application and calculate the
household's total current income;
* * * * *
(3) If they so desire, households applying on behalf of children
who are members of food stamp households or AFDC assistance units may
apply for free meal benefits using the procedures described in this
paragraph rather than the procedures described in paragraph (f)(2) of
this section. In accordance with paragraph (f)(2)(vi) of this section,
if a food stamp or AFDC case number is provided, it may be used to
verify the current food stamp or AFDC certification for the child(ren)
for whom free meal benefits are being claimed. Whenever households
applying for benefits for children not receiving food stamp or AFDC
benefits, they must apply for those children in accordance with the
requirements set forth in paragraph (f)(2) of this section. Households
applying on behalf of children who are members of food stamp households
or AFDC assistance units shall be required to provide:
* * * * *
(4) Households selected to provide verification shall provide a
social security number for each adult household member or an indication
that such member does not have one. The notice to households of
selection for verification shall include the following:
(i) Section 9 of the National School Lunch requires that unless the
child's
[[Page 25554]]
food stamp or AFDC case number is provided, households selected for
verification must provide the social security number of each adult
household member;
(ii) In lieu of providing a social security number, an adult
household member may indicate that he/she does not possess one;
(iii) Provision of a social security number is not mandatory but if
a social security number is not provided for each adult household
member or an indication is not made that he/she does not possess one,
benefits will be terminated;
(iv) The social security number may be used to identify household
members in carrying out efforts to verify the correctness of
information stated on the application and continued eligibility for the
program. These verification efforts may be carried out through program
reviews, audits, and investigations and may include contacting
employers to determine income, contacting a food stamp or welfare
office to determine current certification for receipt of food stamps or
AFDC benefits, contacting the State employment security office to
determine the amount of benefits received and checking the
documentation produced by household members to prove the amount of
income received. These efforts may result in loss or reduction of
benefits, administrative claims or legal actions if incorrect
information was reported; and
(v) This information must be provided to the attention of each
adult household member disclosing his/her social security number. State
agencies shall ensure that the notice complies with section 7 of Pub.
L. 93-579 (Privacy Act of 1974). These households shall be provided
with the name and phone number of an official who can assist in the
verification effort. Selected households shall also be informed that,
in lieu of any information that would otherwise be required, they can
submit proof of current food stamp or AFDC Program certification as
described in paragraph (f)(3) of this section to verify the free meal
eligibility of a child who is a member of a food stamp household or
AFDC assistance unit. All households selected for verification shall be
advised that failure to cooperate with verification efforts will result
in the termination of benefits.
* * * * *
4. In Section 225.20, the OMB Control Number table is revised to
read as follows:
Sec. 225.20 Information collection/recordkeeping--OMB assigned control
numbers.
------------------------------------------------------------------------
Current OMB
7 CFR section where requirements are described control No.
------------------------------------------------------------------------
225.3-225.4................................................ 0584-0280
225.6-225.10............................................... 0584-0280
225.12-225.13.............................................. 0584-0280
225.15-225.18.............................................. 0584-0280
------------------------------------------------------------------------
PART 226--CHILD AND ADULT CARE FOOD PROGRAM
5. The authority citation for Part 226 continues to read as
follows:
Authority: Secs. 9, 11, 14, 16, and 17, National School Lunch
Act, as amended (42 U.S.C. 1758, 1759a, 1762a, 1765 and 1766).
6. In Section 226.2:
a. The definition of Current income is amended by removing the
words ``and multiplied by 12''; and
b. The definition of Documentation is revised to read as follows:
Sec. 226.2 Definitions.
* * * * *
Documentation means (a) the completion of the following information
on a free and reduced-price application:
(1) names of all household members;
(2) income received by each household member, identified by source
of income (such as earnings, wages, welfare, pensions, support
payments, unemployment compensation, social security and other cash
income);
(3) the signature of an adult household member; and
(4) the social security number of the adult household member who
signs the application, or an indication that he/she does not possess a
social security number; or
(b) For a child who is a member of a food stamp household or an
AFDC assistance unit, ``documentation'' means the completion of only
the following information on a free and reduced-price application:
(1) the name(s) and appropriate food stamp or AFDC case number(s)
for the child(ren); and
(2) the signature of an adult member of the household; or
(c) For an adult participant who is a member of a food stamp
household or is an SSI or Medicaid participant, as defined in this
section, ``documentation'' means the completion of only the following
information on a free and reduced- price application:
(1) the name(s) and appropriate food stamp case number(s) for the
participant(s) or the adult participant's SSI or Medicaid
identification number, as defined in this section; and
(2) the signature of an adult member of the household.
* * * * *
7. In Section 226.15, paragraphs (e)(2) and (e)(3) are revised to
read as follows:
Sec. 226.15 Institution Provisions.
* * * * *
(e) * * *
(2) Documentation of the enrollment of each participant at child
care centers, adult day care centers and outside-school-hours care
centers including information used to determine eligibility for free or
reduced price meals in accordance with Sec. 226.23(e)(1).
(3) Documentation of the enrollment of each child at day care homes
and information used to determine the eligibility of enrolled
providers' children for free or reduced price meals in accordance with
Sec. 226.23(e)(1).
* * * * *
8. In Section 226.17, paragraph (b)(7) is revised to read as
follows:
Sec. 226.17 Child Care Center Provisions.
* * * * *
(b) * * *
(7) Child care centers shall collect and maintain documentation of
the enrollment of each child, including information used to determine
eligibility for free and reduced price meals in accordance with
Sec. 226.23(e)(1).
* * * * *
Sec. 226.18 [Amended]
9. In Section 226.18, paragraph (f) is amended by adding the words
``, in which case the day care home must maintain documentation of the
information used to determine the eligibility of enrolled providers'
children for free or reduced price meals in accordance with
Sec. 226.23(e)(1)'' at the end of the paragraph.
10. In Section 226.19, paragraph (b)(8)(i) is revised to read as
follows:
Sec. 226.19 Outside-school-hours care center provisions.
* * * * *
(b) * * *
(8) * * *
(i) Documentation of enrollment for all children, including
information used to determine eligibility for free or reduced price
meals in accordance with Sec. 226.23(e)(1);
* * * * *
11. In Section 226.19a, paragraph (b)(8) is revised to read as
follows:
Sec. 226.19a Adult day care center provisions.
* * * * *
(b) * * *
(8) Adult day care centers shall collect and maintain documentation
of the
[[Page 25555]]
enrollment of each adult participant including information used to
determine eligibility for free and reduced price meals in accordance
with Sec. 226.23(e)(1).
* * * * *
12. In Section 226.23:
a. Paragraph (e)(1)(ii)(C) is revised;
b. Paragraph (e)(1)(ii)(D) is amended by removing the words ``total
current household income, and the'';
c. Paragraph (e)(1)(ii)(F) is amended by removing the first four
sentences and by adding six new sentences in their place.
d. Paragraph (e)(1)(iii)(C) is revised;
e. Paragraph (e)(1)(iii)(D) is amended by removing the words
``total current household income, and the'';
f. Paragraph (e)(1)(iii)(E) is amended by removing the first four
sentences and by adding six new sentences in their place;
g. Paragraph (e)(4) is amended by adding a new sentence at the
beginning of the paragraph;
h. Paragraphs (h)(2)(iv) through (h)(2)(viii) are redesignated as
paragraphs (h)(2)(v) through (h)(2)(ix); and
i. Paragraph (h)(2)(iii) is amended by redesignating all text after
the second sentence as paragraph (h)(2)(iv), and by revising the
remaining text in paragraph (h)(2)(iii).
The additions and revisions specified above read as follows:
Sec. 226.23 Free and reduced-price meals.
* * * * *
(e)(1) * * *
(ii) * * *
(C) The social security number of the adult household member who
signs the application, or an indication that he/she does not possess a
social security number;
* * * * *
(F) A statement which includes substantially the following
information: ``Section 9 of the National School Lunch Act requires
that, unless a food stamp or AFDC case number is provided for your
child, you must include a social security number on the application.
This must be the social security number of the adult household member
signing the application. If the adult household member signing the
application does not possess a social security number, he/she must
indicate so on the application. Provision of a social security number
is not mandatory, but if a social security number is not provided or an
indication is not made that the adult household member signing the
application does not have one, the application cannot be approved. This
notice must be brought to the attention of the household member whose
social security number is disclosed. The social security number may be
used to identify the household member in carrying out efforts to verify
the correctness of information stated on the application. * * *
* * * * *
(iii) * * *
(C) The social security number of the adult household member who
signs the application, or an indication that he/she does not possess a
social security number;
* * * * *
(E) A statement which includes substantially the following
information: ``Section 9 of the National School Lunch Act requires
that, unless a food stamp case number or SSI or Medicaid assistance
identification number is provided for the adult for whom benefits are
sought, you must include a social security number on the application.
This must be the social security number of the adult household member
signing the application. If the adult household member signing the
application does not possess a social security number, he/she must
indicate so on the application. Provision of a social security number
is not mandatory, but if a social security number is not provided or an
indication is not made that the adult household member signing the
application does not have one, the application cannot be approved. This
notice must be brought to the attention of the household member whose
social security number is disclosed. The social security number may be
used to identify the household member in carrying out efforts to verify
the correctness of information stated on the application. * * *
* * * * *
(4) * * * The institution shall take the income information
provided by the household on the application and calculate the
household's total current income. * * *
* * * * *
(h) * * *
(2) * * *
(iii) Households shall be informed in writing that they have been
selected for verification and they are required to submit the requested
verification information to confirm their eligibility for free or
reduced-price benefits by such date as determined by the State agency.
Those households shall be informed of the type or types of information
and/or documents acceptable to the State agency and the name and phone
number of an official who can answer questions and assist the household
in the verification effort. This information must include a social
security number for each adult household member or an indication that
he/she does not have one. State agencies shall inform selected
households that:
(A) Section 9 of the National School Lunch Act requires that,
unless households provide the child's food stamp or AFDC case number,
or the adult participant's food stamp case number or SSI or Medicaid
assistance identification number, those selected for verification must
provide the social security number of each adult household member;
(B) In lieu of providing a social security number, an adult
household member may indicate that he/she does not possess one;
(C) Provision of a social security number is not mandatory, but if
a social security number is not provided for each adult household
member or an indication is not made that he/she does not possess one,
benefits will be terminated;
(D) The social security number may be used to identify household
members in carrying out efforts to verify the correctness of
information stated on the application and continued eligibility for the
program. These verification efforts may be carried out through program
reviews, audits, and investigations and may include contacting
employers to determine income, contacting Federal, State or local
agencies to determine current certification for receipt of food stamps
or AFDC, SSI or Medicaid benefits, contacting the State employment
security office to determine the amount of benefits received, and
checking the documentation produced by household members to prove the
amount of income received. These efforts may result in loss or
reduction of benefits, administrative claims or legal actions if
incorrect information was reported; and
(E) This information must be provided to the attention of each
adult household member disclosing his/her social security number. State
agencies shall ensure that the notice complies with section 7 of Pub.
L. 93-579 (Privacy Act of 1974). These households shall be provided
with the name and phone number of an official who can assist in the
verification effort.
* * * * *
Dated: April 30, 1996.
William E. Ludwig,
Administrator.
[FR Doc. 96-12851 Filed 5-21-96; 8:45 am]
BILLING CODE 3410-30-U
