[Federal Register Volume 59, Number 66 (Wednesday, April 6, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8063]
Federal Register / Vol. 59, No. 66 / Wednesday, April 6, 1994 /
[[Page Unknown]]
[Federal Register: April 6, 1994]
VOL. 59, NO. 66
Wednesday, April 6, 1994
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Parts 271, 272, 273 and 277
[Amdt. No. 316]
RIN 0584-AB45
Food Stamp Program; Administrative Improvement and Simplification
Provisions From the Hunger Prevention Act of 1988
AGENCY: Food and Nutrition Service, USDA.
ACTION: Final rule.
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SUMMARY: This action places into final form an interim Food Stamp
Program rule published on June 7, 1989. The interim rulemaking
implemented Food Stamp Program provisions contained in the Hunger
Prevention Act of 1988. The provisions of that Act addressed in this
rule are: (1) Expanding the definition of disabled; (2) optional
training for volunteer and non-profit organizations; (3) program
information for low-income households; (4) expanding hardship criteria
for waiving of in-office interview; (5) simplified applications; (6)
joint applications; (7) verification; (8) federally authorized
demonstration projects which cash out benefits in other assistance
programs; (9) telephone access to certification offices in order to
receive program information or to report changes; (10) annualizing
self- employment income and expenses from farming; and (11) resource
exclusions for farm households in transition from farming.
DATES: The provisions of this final action are effective and shall be
implemented as follows: (i) Those provisions in Sec. 271.2(11),
Sec. 272.1(g), Sec. 273.2(b)(3), Sec. 273.2(c)(5),
Sec. 273.2(f)(8)(i)(A), and Sec. 273.2(f)(8)(ii), which adopt the
interim provisions of the June 7, 1989 interim rule as final with some
changes, are effective May 6, 1994 and must be implemented no later
than September 5, 1994; (ii) all other provisions, which adopt the
interim provisions as final with no changes, are effective as of July
1, 1989.
FOR FURTHER INFORMATION CONTACT: Judith M. Seymour, Eligibility and
Certification Rulemaking Section, Certification Policy Branch, Program
Development Division, Food and Nutrition Service, USDA, 3101 Park
Center Drive, Alexandria, Virginia 22302, (703) 305-2496.
SUPPLEMENTARY INFORMATION:
Classification
Executive Order 12866
The Food and Nutrition Service is issuing this proposed rule in
conformance with Executive Order 12866, and has determined that it is a
``significant regulatory action.'' Based on information compiled by the
Department, it has been determined that this action: (1) Would have an
effect on the economy of less than $100 million; (2) would not
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local or tribal governments or communities;
(3) would not create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency; (4) would not
materially alter the budgetary impact of entitlements, grants, user
fees, or loan programs or rights and obligations of recipients thereof;
and (5) would not raise novel legal or policy issues arising out of
legal mandates, the President's priorities, or principles set forth in
Executive Order 12866.
Executive Order 12372
The Food Stamp Program is listed in the Catalog of Federal Domestic
Assistance under No. 10.551. For the reasons set forth in the final
rule and related notice(s) to 7 CFR part 3015, subpart V (48 FR 29115,
June 24, 1983), this Program is excluded from the scope of Executive
Order 12372 which requires intergovernmental consultation with State
and local officials.
Regulatory Flexibility Act
This final rule has been reviewed with regard to the requirements
of the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.).
William E. Ludwig, the Administrator of the Food and Nutrition Service
(FNS), has certified that this final rule does not have a significant
economic impact on a substantial number of small entities. State and
local welfare agencies will be the most affected to the extent that
they may be required to modify application forms, add telephone access
information to their forms, and modify their verification procedures,
however the effect on these entities will be minimal. Participants and
applicants will be affected by changes to the application and to
procedures in reporting medical expenses.
Paperwork Reduction Act
The reporting and recordkeeping burden associated with the
certification and continued eligibility of food stamp households is
approved by the Office of Management and Budget (OMB) under OMB control
number 0584-0064.
The food stamp application, as approved under this OMB number,
already contains several important verification statements to the
household. The requirement in 7 CFR 273.2(c)(5) that State agencies
develop a separate written general ``Notice of Verification'' versus
including such information on the food stamp application or verbally
conveying such information to households does not alter or change the
methodologies used to determine the burden estimates approved under OMB
control No. 0584-0064.
The requirements in 7 CFR 272.2(a), 272.4(d), and 272.5 relative to
the submission and updating of an optional ``Program information
activities planning document'' as part of a State agency's Plan of
Operation have been submitted to OMB and have been approved under OMB
approval number 0584-0083. This rule amends the table at 7 CFR 271.8
``Information collection/recordkeeping--OMB assigned control numbers''
to reflect the OMB control number for the approval of burden associated
with 7 CFR 272.5 of this rule.
The remaining provisions of this rule do not contain any reporting
and/or recordkeeping requirements subject to approval by OMB under the
Paperwork Reduction Act of 1980 (44 U.S.C. 3507).
Executive Order 12778
This final 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 law, 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'' paragraph 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 Food Stamp Program,
the administrative procedures are as follows: (1) For program benefit
recipients--State administrative procedures issued pursuant to 7 U.S.C.
2020(e)(10) and 7 CFR 273.15; (2) for State agencies--administrative
procedures issued pursuant to 7 U.S.C. 2023 set out at 7 CFR 276.7 (for
rules related to non-quality control (QC) liabilities); (3) for program
retailers and wholesalers--administrative procedures issued pursuant to
7 U.S.C. 2023 set out at 7 CFR 278.8.
Background
On June 7, 1989 the Department published an interim rulemaking at
54 FR 24518, which implemented several of the food stamp provisions
contained in the Hunger Prevention Act of 1988 (Pub. L. 100-435).
Comments were solicited on the provisions of the interim rulemaking
through August 7, 1989. The Department received 13 comment letters from
State and local welfare agencies and public interest groups. All
comments received were reviewed and considered but comments which were
unclear or not pertinent to this rulemaking are not addressed in this
preamble. For a full understanding of the provisions of this final
rule, the reader should refer to the preamble of the interim rule. The
provisions of the interim rule addressing specified procedures for
claiming the medical deduction are not being finalized in this rule.
Those provisions will be addressed in a forthcoming proposed rule
entitled Simplification of Program Rules. Also, the provision of the
interim rule addressing the delivery of benefits to households which
apply after the fifteenth of the month is not finalized in this rule
but will be placed in final form in the forthcoming Benefit Delivery
final rule.
Definition of Elderly or Disabled--7 CFR 271.2
Section 350 of Public Law 100-435 added three categories to the
definition of elderly or disabled persons. These categories are: (1)
Recipients of interim assistance benefits pending the receipt of
supplemental security income (SSI); (2) recipients of disability-
related medical assistance benefits under title XIX of the Social
Security Act (SSA); and (3) recipients of disability-based State
general assistance benefits. Recipients of any of these benefits must
be treated as disabled persons for food stamp purposes provided the
eligibility to receive these benefits is based upon disability or
blindness criteria which are at least as stringent as those under title
XVI of the SSA. The Department amended paragraph (11) of the definition
of ``Elderly or disabled member'' in 7 CFR 271.2 in the interim
rulemaking to implement these provisions.
The Department received several comments suggesting changes to the
interim rule language. One commenter stated that it was unclear in the
rule language that receipt of interim assistance is involved in only
the first of the three new categories of disabled member. The
Department shares the commenter's concern and is amending paragraph
(11) of the definition of ``Elderly or disabled member'' in 7 CFR 271.2
in this rulemaking to more clearly indicate that receipt of interim
assistance as a condition of being defined as disabled for food stamp
purposes is only required for those persons who are interim recipients
of SSI.
Another commenter stated that it is unclear in the regulatory
language if it is only disability-based State general assistance (GA)
that must be based upon disability or blindness criteria at least as
stringent as title XVI of the SSA, or whether the ``at least as
stringent'' requirement applies to all three types of benefits. The
Department interprets the law to require that the ``at least as
stringent'' criteria apply to all three types of benefits. The
regulatory language at 7 CFR 271.2 is being amended to clarify this
point.
Another commenter pointed out that the definition of elderly or
disabled persons in 7 CFR 271.2 needs to be revised to clearly state
that it is State programs, not individual cases, which are to be
measured by the ``at least as stringent criteria as those under title
XVI of the Social Security Act'' requirement. The commenter argued that
the regulation, as it is written in the interim rule, appears to state
that the decision as to whether a GA program is based on criteria as
stringent as those under title XVI of the Social Security Act can be
made on a case-by-case basis. The commenter argued, however, that the
intent of Public Law 100-435 was for this decision to be made on a
State-by-State basis, not case-by-case. The Department agrees with the
commenter and is amending paragraph (11) of the definition to clarify
this point.
In order to further emphasize that State disability programs will
be measured by criteria at least as stringent as those under title XVI,
the Department has decided to further amend the definition of ``Elderly
or disabled member'' in this final rule to include in paragraph (11) of
the definition the specific citation to the SSA regulations
interpreting title XVI of the SSA. Including this citation will provide
State and local agencies with the information necessary to determine if
an individual applying for food stamps meets the definition of elderly/
disabled person as set forth in the Food Stamp Act.
Training--7 CFR 272.4(d)
Section 322(a) of Public Law 100-435 amended section 11(e)(6)(C) of
the Act (7 U.S.C. 2020(e)(6)(C)) to specifically require that training
for case workers provided by the State agency convey the goals of and
methods for promptly and accurately certifying eligible households. The
interim rule amended 7 CFR 272.4(d)(1)(i) to reflect this statutory
language. A commenter did not think it was necessary for the Department
to instruct State agencies to include this ``function'' of the Program
in their training programs. As the Department explained in the preamble
of the interim rule, this language was added to the regulations to
emphasize Congressional concern in this area as reflected by Public Law
100-435. The Department is adopting the interim provisions at 7 CFR
272.4(d)(1)(i) as final without change.
In addition, pursuant to section 322(b) of Public Law 100-435, the
interim rule added a new paragraph (d)(2) to 7 CFR 272.4 to allow State
agencies, at their option, to offer training and assistance to persons
working with certain volunteer or nonprofit organizations. In
conjunction with this new option, the interim rule added a new
paragraph (f) to 7 CFR 277.4 to provide that expenses (e.g., travel
costs, lodging, or meals) of the persons working with the volunteer or
nonprofit organization who receive this training and assistance would
not be reimbursed. A commenter was concerned that the interim rule
language appearing in 7 CFR 277.4(f) could be misinterpreted to mean
that travel expenses of State employees who work with organizations
that receive this training would not be allowable. The Department
agrees that the language could create this misinterpretation.
Accordingly, this final rule amends the interim provisions at 7 CFR
277.4(f) to clarify this distinction. The interim provision at 7 CFR
272.4(d)(2) is adopted as final without change.
Information for Low-Income Households--7 CFR 272.5(c)
Section 204(a) and (b) of Public Law 100-435 and 7 CFR 272.5(c) of
the interim rule allow State agencies, at their option, to inform low-
income households about the availability, eligibility requirements,
application procedures and benefits of the Food Stamp Program. Pursuant
to section 204(b) of Public Law 100-435, the interim rule also amended
7 CFR 272.5(c) to specify that State agencies, at their option, may
request reimbursement under 7 CFR part 277 for these outreach
activities. The interim rule contained a number of conforming
amendments necessitated by the addition of these outreach activity
provisions. 7 CFR 272.5(c) was amended to specify that if a State
agency elects to request reimbursement for Program informational
materials directed at low-income households, those materials must meet
any applicable bilingual requirements. 7 CFR 272.5(c) was further
amended to require that prior to claiming such outreach costs, State
agencies must receive approval from the Food and Nutrition Service
(FNS) of an appropriate amendment to their State Plan of Operations. In
addition, 7 CFR 272.2(a)(2) was amended to add a reference to the
optional ``Program informational activities plan'' as a component of
the State Plan of Operation, and 7 CFR 272.2(d)(1) was amended to add
the requirement that State agencies submit the optional ``Program
informational activity'' planning document to FNS for inclusion in
their State Plan of Operation. Lastly, the interim rule added a
conforming amendment to 7 CFR part 277, appendix A, to remove paragraph
C(14) which was made obsolete.
One commenter felt the requirement of 7 CFR 272.2(a)(2) which
mandates that State agencies submit a Program informational activities
plan is burdensome. The commenter suggested that the budget
justification contained on the form FNS-366A should be sufficient to
obtain the prediction of expenditures. The Department disagrees. As
State agencies begin to implement outreach under Public Law 100-435,
the Department wishes to make sure that controls are in place that
ensure cost-effective spending. The plans provide important information
on the kinds of activities and services being planned as well as the
sub-populations at which State agencies are targeting their efforts.
Having this information and the budget projection data will enable the
Department to assist State agencies in developing the most cost-
effective outreach programs possible. Therefore, this final rule adopts
the interim provisions pertaining to information for low income
households as final without change.
Waiver of the In-Office Interview--7 CFR 273.2(e)
In accordance with section 330 of Public Law 100-435, the interim
rule amended 7 CFR 273.2(e) to explicitly specify the circumstances
under which the in-office interview for an applicant household must be
waived. Consequently, current rules at 7 CFR 273.2(e) require that in-
office interviews be waived if requested by households which are unable
to send a household member to the food stamp office because they: (1)
Are elderly or disabled as defined in 7 CFR 271.2; (2) live in a
location which is not served by a certification office; (3) are
experiencing transportation difficulties as determined by the State
agency on a case-by-case basis; or (4) are experiencing other hardships
that the State agency determines warrants a waiver of the in-office
interview such as illness, care of a household member, hardships due to
residing in a rural area, prolonged severe weather or work hours. If
the in-office interview is waived, the State agency has the option to
conduct a telephone interview or a home visit.
The Department received one comment criticizing the interim rule
provision, stating that the provision made ``the obvious and thoroughly
unnecessary statement that granting waivers to in-office interviews
applied in rural areas''. The commenter felt that adding emphasis to
the regulations is not a decisive way to act when the Program has
operational problems. Furthermore, the commenter felt that problems
State agencies may have in applying the requirement to grant waivers of
in-office interviews should be dealt with by FNS regional office staff.
The Department understands the commenter's concerns, but the language
in the interim rule was not added to address operational concerns, but
rather was required by law. Public Law 100-435 clearly states that
waiving in-office interviews for households in rural areas is sometimes
necessary, and State agencies must do so when a household meets
specific criteria. The interim rule amended 7 CFR 273.2(e) specifically
to address Congressional concern that residency in a rural area not be
a barrier to participation in the Food Stamp Program. Therefore this
action adopts the interim provisions at 7 CFR 273.2(e) as final without
change.
The Food Stamp Application Form--7 CFR 273.2(b)
Pursuant to section 310 of Public Law 100-435, the June 7, 1989
interim rule amended several provisions of the regulations pertaining
to the food stamp application form. Prior to publication of the interim
rule, the regulations at 7 CFR 273.2(b) permitted State agencies to
deviate from the FNS-designed food stamp application in order to
process joint applications with other assistance programs, meet the
requirements of a State agency computer system or accommodate State
agency needs that are determined to be justifiable. The first provision
of section 310 of Public Law 100-435 amended section 11(e)(2) of the
Food Stamp Act to mandate that, in addition to its current criteria for
approving State agency application forms, FNS must also ensure that the
application is brief. Accordingly, the June 7, 1989 interim rule
amended 7 CFR 273.2(b) to include brevity as a condition for approving
deviations from the FNS food stamp application form.
The majority of comments received about the food stamp application
form concerned this provision. Commenters, while supporting the interim
rule's intent to shorten the food stamp application, wondered how the
Department intends to judge whether an application form is ``brief''
enough to meet the requirements of Public Law 100-435.
Senate Report No. 100-397 (p. 24) expressed Congressional dismay
over the length of multi-program application forms, i.e. application
forms for food stamps and Aid to Families with Dependent Children
(AFDC) benefits. The Department concurs with Congress on this issue.
The purpose of an application form is to obtain basic eligibility
information from the client (such as name, address, income, expenses,
etc.). Such information requires only a few pages of questions for
applicant households to complete. The Department also understands,
however, that limiting the length of applications can be a problem for
State agencies trying to administer a variety of programs. In December
1990, the Department completed a review of all State-designed
application forms. The review had been initiated because of the passage
of Public Law 100-435 and the ongoing concern that the food stamp
application not be a barrier to participation in the Program. The
reviewers found length to be the most disturbing problem with State-
designed multi-program application forms. The length of the forms
ranged from 3 to 44 pages, and the number of programs covered by the
forms ranged from 3 to 9. Of the multi-program applications reviewed, 8
forms were 1-10 pages long, 21 were 11-20 pages, 7 were 21-30 pages,
and 12 forms were over 30 pages long.
The Department realizes that the length of application forms is due
to a great extent to such demands as automation and the need to
administer a variety of programs. The Food Stamp Act, however, requires
the Department to ensure that application forms are easy to use,
readable, brief and written in simple terms. Therefore, the Department,
in reviewing State agency applications, attempts to balance the need to
reduce the burden on applicants and each State agency's need to
administer the many programs under its jurisdiction. The Department is
making no changes to the interim provision and is adopting that
provision as final.
The second provision of section 310 of Public Law 100-435 requires
that the Department, in consultation with the Department of Health and
Human Services (HHS), provide guidance to those State agencies
requesting assistance in the development of brief, simply-written
application forms, including forms that allow for simultaneous
application to participate in the Food Stamp, AFDC, and Medicaid
Programs. Accordingly, the June 7, 1989 interim rule amended 7 CFR
273.2(b) to advise State agencies of their option to request assistance
from FNS when developing their applications.
A commenter suggested that the Department reevaluate the FNS
application form and work with the Department of Health and Human
Services (HHS) to design a simpler, shorter form to be used for all
assistance programs. The Department has completed drafting a revised
version of the FNS Food Stamp Application Form (FNS Form 385), which is
available to State agencies. The Department believes, however, that
since many public assistance programs are administered by State
agencies and funded by a combination of Federal and State monies, State
agencies are better able to design a short, multi-program application
form that will enhance the administration of their public assistance
programs while lessening barriers to participation for food stamp
applicants.
Another commenter objected that there is no clear procedure to
request assistance from FNS in developing a new application form. The
Department disagrees. In the preamble to the June 7, 1989 interim rule
(54 FR 24521), the Department describes the procedure necessary to
request assistance. The procedure, which has not changed, is for State
agencies to request assistance through the Deputy Administrator for the
Food Stamp Program. The Deputy administrator, or the Deputy
Administrator's designee, would be responsible for overseeing the
review of an application form by FNS officials at the Regional level
and would coordinate the review of the application with HHS. Regional
officials will be responsible for coordinating between the State agency
and the National office.
Section 310 of Public Law 100-435 also requires that all
applications for food stamp benefits contain certain statements on the
front cover which advise the household of important information about
the application process. These required statements include: (1) A place
on the front cover where applicants can write their names, addresses,
and signatures; (2) instructions that advise the households of their
right to file the application without finishing all parts; (3) a
statement describing the expedited service procedures; and (4) a
statement that informs the household that benefits are provided only
from the date of application. Accordingly, the interim rule amended 7
CFR 273.2(b) to require that the food stamp application form contain
the above information.
Subsequent to publication of the interim rule, section 1736 of the
Mickey Leland Memorial Domestic Hunger Relief Act, Title XVII, Public
Law 101-624, 104 Stat. 3359, enacted November 28, 1990 (hereafter
referred to as the Leland Act) amended section 11(e) of the Food Stamp
Act to require that certain information previously mandated to be
displayed on the front cover of the application form must now be placed
``on or near'' the front page of the application form. There must
continue to appear on the front page of the application a place where
applicants can write their names, addresses, and signatures. However,
the instructions that advise the households of their right to file the
application without finishing all parts, the statement describing the
expedited service procedures, and the statement that informs the
household that benefits are provided only from the date of application
must now appear ``on or near'' the front page. The Department
implemented this provision in a final regulation implementing
categorical eligibility and application provisions of the Leland Act,
published at 56 FR 63611 on December 4, 1991, which amended 7 CFR
273.2(b)(1)(v), (b)(1)(vi), and (b)(1)(vii).
The changes mandated by the Leland Act and implemented in the final
rule published on December 4, 1991 have superseded the provisions of
Public Law 100-435 pertaining to mandatory information appearing on the
front page of the application form. For this reason, the Department is
not addressing any comments which discuss this provision of Public Law
100-435. Individuals with any questions about this provision should
refer to the December 4, 1991 final rule.
Section 310 of Public Law 100-435 and the interim rule mandate that
households be informed on the application of their right to file for
food stamp benefits with only their name, address and signature. This
is reflected in 7 CFR 273.2(b)(1)(iv) of the interim rule. A commenter
felt this requirement did not consider the impact on on-line
application systems which satisfy the intent of this provision in a
more sophisticated manner. Usually, an on-line application system does
not require applicants to complete any handwritten information on an
application form. The eligibility worker completes the on-line
application at the certification interview. When an applicant is unable
to complete the on-line application process, usually some sort of
``Intent to Apply'' application form is submitted to protect the filing
date. The applicant then returns to complete the on-line application
process at a later date.
The Department does not believe the interim rule conflicts with any
on-line system presently in operation. In the final rulemaking
implementing categorical eligibility and application provisions of the
Leland Act, published at 56 FR 63611 on December 4, 1991, the
Department amended 7 CFR 273.2(b)(3) to give FNS authority to review
and approve deviations from the FNS-designed application form,
including the use of on-line application forms. The Department believes
this oversight authority will ensure that on-line application forms
contain the mandatory information required by law. The Department is
therefore adopting the interim provision in 7 CFR 273.2(b)(1)(iv) as
final without change.
The Department also received a general comment which recommended
the final rule specifically indicate when the term ``applications''
refers to the applicant's initial request for certification only, and
when it refers to recertification. For food stamp purposes, the
Department does not differentiate between certification and
recertification. In both situations, a household must complete and
submit a food stamp application form, provide verification of
information and participate in an interview with an eligibility worker.
Therefore, the term ``applications'' in the interim rule and in this
final rule refers to both initial certification and subsequent
recertifications. The Department is, however, considering
differentiating between initial certification and subsequent
recertification. The Department is currently developing a proposed rule
to consider means to simplify program requirements, including
simplifying recertification procedures. In that rule, the Department
may propose introducing differences in processing initial applications
for certification and applications for recertification.
Joint Processing of Applications--7 CFR 273.2(j)
Section 352 of Public Law 100-435 reinstated joint application
practices that were previously required under the Food Stamp Act of
1977, as originally enacted, but subsequently were made optional by the
Omnibus Budget Reconciliation Act of 1982 (Pub. L. 97-253, 96 Stat.
763, Sept. 8, 1982). Accordingly, the interim rule, published June 7,
1989, amended 7 CFR 273.2 (j) and (j)(1)(i) to require State agencies
to join the application for food stamps with the application for public
assistance (PA) and general assistance (GA) and to notify AFDC
applicants of their right to file a joint application. The interim rule
also amended 7 CFR 273.2(j)(1) to add a new paragraph (j)(1)(v) which
specified that households whose PA/GA eligibility was terminated shall
not be required to file a new application, but shall have their food
stamp eligibility and benefits determined by available information from
the PA/GA casefile provided the information is sufficient for food
stamp purposes.
Comments on the mandate for joint processing of applications were
nearly evenly split between opponents and proponents. One commenter
recommended the final rule mandate development of a single, universal
application for all needs-based assistance programs. Another commenter
focused on the issue of whether the interim rule exceeded the
legislative intent of section 352 by requiring a single ``application''
for both food stamps and AFDC when only a single ``interview'' is
necessary. The commenter felt the interim rule should be amended to
mandate only a joint interview for food stamp/AFDC applicants, not a
joint application. Another commenter disagreed with the requirement to
include the application for food stamps in the application for GA
benefits because GA is a State-run program.
In regard to the first comment recommending the development of a
single, universal application, the Department has found that many State
agencies have already developed ``multi-program'' forms, i.e., one form
is used for food stamps, PA and GA, and medical assistance. The
Department feels State agencies are in a better position to design
application forms that enhance the administration of their benefit
assistance programs. For this reason, the Department believes mandating
a single, universal application form is unnecessary.
The Department disagrees with the premise of the second comment,
which stated that the interim rule exceeded legislative intent by
mandating a joint application for both food stamps and AFDC rather than
just a joint interview. Section 11(i) of the Food Stamp Act (7 U.S.C.
2020(i)), as amended by section 352 of Public Law 100-435, requires
that households in which all members are included in a federally aided
public assistance grant (such as AFDC) have their application for food
stamps contained in the public assistance application form. The
Department believes the law is clear in requiring a joint application
for food stamps and PA (as used here, PA is defined at 7 CFR 271.2).
In regard to the third comment, legislation passed subsequent to
Public Law 100-435 further defined the requirements regarding joint
applications for GA and food stamps. Section 1740 of the Leland Act
modified the combined application form requirement in section 11(i)(3)
of the Food Stamp Act to require a combined GA and food stamp
application form only in States that have a single statewide GA
application form. The Department implemented this provision in the
December 4, 1991, final rule (56 FR 63597) which implemented the
categorical eligibility and application provisions of the Leland Act.
A fourth commenter recommended that the Department withhold
approval of joint applications which require clients to answer
questions irrelevant to the Food Stamp Program if they are applying for
food stamps only. The commenter felt that clients must be informed that
answers to those questions are optional. The Department agrees that any
joint application must be clear enough to afford applicants the option
of answering only those questions relevant to the program or programs
for which they are applying. The Department is amending the regulatory
language at 7 CFR 273.2(b)(3) to add this requirement.
Application Process--Verification--7 CFR 273.2(f) and 273.21(j)
Section 311 of Public Law 100-435 and the interim rule published
June 7, 1989, implemented five provisions pertaining to verification of
application information supplied by the household. The interim
provisions required that State agencies: (1) Provide all applicant
households with a clear written statement explaining what the household
must do to cooperate in obtaining verification and completing the
application; (2) assist each applicant household in obtaining
verification and completing the application process; (3) not require
households to provide multiple sources of verification when the
household has already provided verification which adequately supports
statements on the application (although a State agency may require
households to provide additional verification when the State agency
determines that existing verification is incomplete, inaccurate or
inconsistent); (4) not deny an application solely because a person
outside of the household (who is not a person outside of the household
because of a specific disqualification action or ineligible status)
fails to cooperate with the State agency's processing of the
application; and (5) process applications, if a household cooperates by
providing information, by taking appropriate steps to verify
information otherwise required to be verified under the Food Stamp Act.
One commenter felt that clarification is needed regarding whether a
State agency must provide applicants with a general verification
statement or a specific verification statement tailored to each
applicant household (7 CFR 273.2(c)(5)). The Department believes the
preamble to the interim rule was quite clear in encouraging State
agencies to develop a general statement that could be given to all
applicant households, rather than a written statement which would need
to be tailored to each applicant household.
While the interim rule provided guidelines that must be used in
developing the general verification notice, the Department wishes to
promote greater conformity among State agency-designed notices to
ensure that applicant households are consistently informed of the
necessary documents needed for verification of information. Therefore,
this final action amends 7 CFR 273.2(c)(5) to add a requirement that
the State agency, at a minimum, include in the general verification
notice examples of the types of documents the household should provide
and an explanation of the period of time the documents should cover.
Another commenter correctly pointed out that the preamble of the
interim rule was incorrect in stating that current regulations require
that social security numbers must be verified prior to certifying any
applicant household for benefits. Current rules at Sec. 273.2(f)(1)(v)
state that the State agency shall not delay the certification for or
issuance of benefits to an otherwise eligible household solely to
verify the social security number (SSN) of a household member.
The same commenter correctly identified an inconsistency in the
interim regulation language at 7 CFR 273.2(f)(8)(i)(A) with respect to
the requirement for verification where the source of a household's
income has changed. The first sentence of that section correctly states
that ``the State agency shall verify a change in income or actual
expenses if the source has changed or the amount has changed by more
than $25.'' The final sentence inadvertently omits the requirement for
verification anytime the source of income changes, even if the amount
has changed by $25 or less. The same inconsistency exists at 7 CFR
273.2(f)(8)(ii). This final action amends 7 CFR 273.2(f)(8)(i)(A) and
(ii) to correct the inconsistencies.
Another commenter criticized the interim rule's interpretation of
section 311(D) of Public Law 100-435. Section 311(D) provides that a
State agency may not deny any application for participation solely
because of the failure of a person outside of the household to
cooperate with a request for providing verification. This provision
would not apply when the person refusing to cooperate would otherwise
be a household member but for the operation of any of the individual
disqualification provisions of subsections (b), (d), (e), (f), and (g)
of section 6 of the Food Stamp Act. These subsections require
disqualification for any person intentionally making a false or
misleading statement or committing any act which violates the Food
Stamp Act (section 6(b)); any non-exempt person who is physically and
mentally fit and is between the ages of 16 and 60 who refuses to
register to work (section 6(d)); any person who is a student enrolled
at least half-time in an institution of higher education (section
6(e)); any person who is not a resident of the United States, and is
not either a citizen or a lawful alien (section 6(f)); and any
individual who receives SSI benefits in a ``cash-out'' State (section
6(g)).
When amending 7 CFR 273.2(d)(1) to incorporate the mandate of
section 311(D) of Public Law 100-435, the Department added two more
categories to the list of persons outside the household who cause the
denial of an application for participation if they fail to cooperate
with a request for providing verification. These two new categories
were: Individuals disqualified for failure to provide an SSN, and
persons who fail to attest to their citizenship or alien status.
The commenter who criticized this provision felt that the
Department had exceeded its authority in excluding two new categories
of non-household members from the third-party verification rule.
The commenters correctly point out that the Department has
broadened the third party verification rule to include two additional
categories of persons who will cause the denial of an application to
participate if they failed to cooperate with a request to provide
verification. This was done to make this provision consistent with
other provisions in the regulations where ineligible or disqualified
persons are, in effect, deemed by program regulations to be a household
member for purposes of determining eligibility and benefit levels. FNS
believes this is appropriate as it is consistent with the desire to
simplify program requirements that was expressed by Congress in
adopting the Hunger Prevention Act (See, e.g., Senate Report No. 100-
397, p.25).
The interim rule also amended verification standards for households
subject to monthly reporting and retrospective budgeting (MRRB) at 7
CFR 273.21(i) (1) and (3). Those provisions are not being finalized in
this final rule, however, because they have been superseded by
amendments made in the final rule on Monthly Reporting and
Retrospective Budgeting Amendments and Mass Changes, published on
December 4, 1991, at 56 FR 63597. Individuals with questions about
verification standards for MRRB households should refer to this
December 4, 1991 final rule.
Demonstration Projects/Cash-Outs in Other Benefit Programs--7 CFR
273.9(c)(1) and 273.10(d)(1)
In accordance with section 340 of Public Law 100-435, the interim
rule amended 7 CFR 273.9(c)(1) to specify that in-kind or vendor
payments which would normally be excluded as income but are converted
in whole, or in part, to a direct cash payment under the approval of a
federally authorized demonstration project shall continue to be
excluded from income. These federally authorized demonstration projects
include demonstration projects created by waiver of the provisions of
Federal law.
However, conversion to direct cash payment does not change the non-
deductibility of the expenses paid with these funds. Accordingly, in
order to ensure that an excluded vendor payment which has been
converted to a direct cash payment is not excluded twice (once as
income and once as expenses) the interim rule amended 7 CFR
273.10(d)(1)(i) to specify that an expense covered by an excluded
vendor payment which has been converted to a direct cash payment under
the approval of a federally authorized demonstration project remains
non-deductible as a household expense.
The Department received no comments regarding these provisions of
the interim rule. Therefore, this action adopts the interim provisions
as final with no changes.
Reporting Responsibilities--7 CFR 273.12 and 273.21
Under section 323 of Public Law 100-435 and the interim rule, State
agencies are required to provide a household, at the time of
certification and recertification, with a statement describing the
household's reporting responsibilities. Moreover, State agencies must
provide all households with a toll-free telephone number or a number
where collect calls will be accepted in order for the household to
reach an appropriate representative of the State agency. The interim
rule amended 7 CFR 273.12(b)(1) to specifically require that the
``change report'' form include a statement describing the household's
reporting responsibilities. In addition, 7 CFR 273.12(b)(1) was amended
to specify that the ``change report'' form must contain the number of
the food stamp office and a toll-free number or a number where collect
calls will be accepted. (Reporting requirements remained unchanged for
households subject to MRRB provisions of 7 CFR 273.21.)
The interim rule also amended the provisions relative to the Notice
of Eligibility, the Notice of Denial, the Notice of Adverse Action, and
the requirements for bilingual notices. The regulations at 7 CFR
272.4(b)(3)(ii)(B), 7 CFR 273.10(g)(1)(i)(A), 7 CFR 273.10(g)(1)(ii)
and 7 CFR 273.13(a)(2), respectively, were amended to specify that
these notices must also include either a toll-free number or a number
where collect calls will be accepted for households living outside the
local calling area.
The Department received one comment on these provisions of the
interim rule. The commenter pointed out that the legislative intent of
the toll-free or collect telephone number was to increase households'
access to the State agency in order to obtain information or report
changes. The commenter felt this statement of purpose should be
incorporated into the rule itself to help guide State agencies'
implementation efforts.
The Department believes including a statement of purpose in 7 CFR
273.12(b) is unnecessary. Congress was clear that its intent in passing
the Hunger Prevention Act was to make it easier for eligible households
to apply and obtain benefits (Senate Report No. 100-397, p.25). On its
face, the implementation of this provision demonstrates its purpose
without additional explanation. The interim provisions are adopted as
final without change.
Special Provisions for Farm Households--7 CFR 273.8, 273.11, and 273.21
Pursuant to two provisions of Public Law 100-435, the interim rule
amended Program regulations to extend eligibility to farm households
which are in need of program assistance. Section 341 of Public Law 100-
435 specified that self-employed farm households which are subject to
MRRB have the option to annualize their self-employment income and
expenses over a 12-month period. This provision was implemented in the
interim rule by amending 7 CFR 273.21(f)(2)(i) and 273.11.
Section 342 of Public Law 100-435 affected farm households which
quit farming. Accordingly, 7 CFR 273.8(e)(5) was amended by the interim
rule to specify that property essential to self- employment of a
household member engaged in farming is excluded as a resource for one
year from the date the household member terminates self-employment from
farming. A conforming amendment to 7 CFR 273.8(h)(1)(i) specified that
any licensed vehicle which had been used over 50 percent of the time in
the self-employment of a household member engaged in farming continues
to be excluded as a resource for one year from the date the household
member terminates his/her self-employment from farming.
The Department received only one comment on the interim rule which
supported the one-year extension of the above exclusion. Therefore,
this action adopts the interim provisions as final without change.
Implementation--7 CFR 272.1(g)
Under the interim rule, the provisions addressed in this final rule
were retroactively implemented effective July 1, 1989. The Department
received several comments complaining about the short implementation
time for the interim rule. While we sympathize about the short lead
time given to State agencies to implement the interim rule, the
Department had no discretion in this matter and had to implement the
time frames mandated by Public Law 100-435.
The provisions of this final action which adopt as final without
change provisions of the interim rule or modify a provision of the
interim rule for clarity only are retroactively effective to July 1,
1989. The clarifications do not represent any change in policy and,
thus, do not require any special implementation efforts by State
agencies.
The provisions of this final action which require the alteration of
State procedures, are to be effective May 6, 1994. State agencies must
complete implementation efforts of new provisions no later than
September 5, 1994.
Any variance resulting from the implementation of the provisions of
this amendment shall be excluded from quality control error analysis
for 120 days from the required implementation date in accordance with 7
CFR 275.12(d)(2)(vii).
List of Subjects
7 CFR Part 271
Administrative practice and procedure, Food stamps, Grants
programs-social programs.
7 CFR Part 272
Alaska, Civil rights, Food stamps, Grant programs-social programs,
Reporting and recordkeeping requirements.
7 CFR Part 273
Administrative practice and procedure, Aliens, Claims, Food stamps,
Fraud, Grant programs-social programs, Penalties, Records, Reporting
and recordkeeping requirements, Social security, Students.
7 CFR Part 277
Food stamps, Government procedures, Grant programs-social programs,
Investigations, Records, Reporting and recordkeeping requirements.
Accordingly, 7 CFR parts 271, 272, 273, and 277 are amended as
follows:
1. The authority citation of parts 271, 272, 273, and 277 continues
to read as follows:
Authority: 7 U.S.C. 2011-2032.
PART 271--GENERAL INFORMATION AND DEFINITIONS
Sec. 271.2 [Amended]
2. The amendment to 7 CFR 271.2, as published at 54 FR 24527, June
7, 1989, which amended the definition of Elderly or Disabled Member by
adding a new paragraph (11) is adopted final with the following
changes:
a. Paragraph (11) is amended by adding the words ``a recipient of''
before the words ``disability related medical assistance'', and before
the words ``disability-based State general assistance''. Paragraph (11)
is also amended by removing the word ``those'' after the words
``eligibility to receive'', and replacing it with the words ``any of
these''. Paragraph (11) is further amended by adding the words
``established by the State agency'' before the words ``which are at
least as stringent as those'' Paragraph (11) is also amended by adding
the words ``(as set forth at 20 CFR part 416, subpart I, Determining
Disability and Blindness as defined in Title XVI)'' to the end of the
paragraph.
Sec. 271.8 [Amended]
3. The amendment to 7 CFR 271.8, as published at 54 FR 24527, June
7, 1989, to add an OMB Control Number for Sec. 272.5, paragraph (c), is
adopted final.
PART 272--REQUIREMENTS FOR PARTICIPATING STATE AGENCIES
4. The amendment to 7 CFR 272.1, as published at 54 FR 24527, June
7, 1989, to add paragraph (g)(110) is adopted final.
5. In Sec. 272.1, a new paragraph (g)(132) is added to read as
follows:
Sec. 272.1 General terms and conditions.
* * * * *
(g) Implementation. * * *
(132) Amendment No. 316. The provisions of this final rule that
amend 7 CFR 273.2(b)(3), 273.2(c)(5), 273.2(f)(8) (i)(A) and (ii), and
paragraph (11) of the ``Elderly or disabled member'' definition in 7
CFR 271.2 are effective as of May 6, 1994. The State agency shall
implement the provisions not later than September 5, 1994 for all
households newly applying for Program benefits on or after such
implementation date. The current caseload shall be converted to these
provisions at household request, at the time of recertification, or
when the case is next reviewed, whichever occurs first, and the State
agency must provide restored benefits back to the required
implementation date. If for any reason a State agency fails to
implement on the required implementation date, restored benefits shall
be provided, if appropriate, back to the required implementation date
or the date of application whichever is later. Any variances resulting
from implementation of the provisions of this amendment shall be
excluded from error analysis for 90 days from this required
implementation date in accordance with 7 CFR 275.12(d)(2)(vii).
Sec. 272.2 [Amended]
6. The amendment to 7 CFR 272.2, as published at 54 FR 24527, June
7, 1989, which added text to the seventh sentence of paragraph (a)(2),
and a new paragraph (d)(1)(ix) is adopted final.
Sec. 272.4 [Amended]
7. The amendment to 7 CFR 272.4, as published at 54 FR 24527, June
7, 1989, which amended paragraph (b)(3)(ii)(B), added a sentence to
paragraph (d)(1)(i), redesignated paragraph (d)(2) as paragraph (d)(3),
and added a new paragraph (d)(2) is adopted final.
Sec. 272.5 [Amended]
8. The amendment to 7 CFR 272.5, published at 54 FR 24527, to
revise paragraph (c) in its entirety is adopted final.
PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS
9. The amendment to 7 CFR 273.2, published at 54 FR 24528, June 7,
1989, which revised paragraph (b) in its entirety, redesignated
paragraph (c)(5) as paragraph (c)(6) and added a new paragraph (c)(5),
added two new sentences to the end of paragraph (d)(1), revised the
fourth sentence of paragraph (e)(2), added a new paragraph
(f)(1)(viii)(A)(6), revised paragraphs (f)(5)(i), (f)(8)(i)(A) and
(f)(8)(ii) in their entirety, revised the first two sentences of
paragraph (f)(8)(i)(C), amended the last sentence of paragraph (g)(2),
revised the first sentence of paragraph (h)(1)(i)(C), revised the first
and last sentences of paragraph (j) introductory text, removed the
first two sentences of paragraph (j)(1)(i) and added three new
sentences in their place, and added a new paragraph (j)(1)(v) is
adopted final with the following changes:
a. The second sentence of paragraph (b)(3) is amended by removing
the word ``and'' after the words ``understandable to applicants'' and
replacing it with a comma, and adding after the phrase ``easy to use''
the words ``, and, for multi-program applications, clear enough to
afford applicants the option of answering only those questions relevant
to the program or programs for which they are applying''.
b. The last sentence in paragraph (f)(8)(i)(A) is amended by
removing the comma after the words ``The State agency shall not verify
income'' and adding after that the words ``if the source has not
changed and if the amount is unchanged or has changed by $25 or less,
unless the information is incomplete, inaccurate, inconsistent or
outdated. The State agency shall also not verify''. Paragraph
(f)(8)(ii) is amended by removing the comma after the words ``the State
agency shall not verify changes in income'' and adding after that the
words ``if the source has not changed and if the amount has changed by
$25 or less, unless the information is incomplete, inaccurate,
inconsistent or outdated. The State agency shall also not verify''.
c. Paragraph (c)(5) is amended by adding one sentence to the end of
the paragraph to read as follows:
Sec. 273.2 Application processing.
* * * * *
(c) Filing an Application * * *
(5) * * * At a minimum, the notice shall contain examples of the
types of documents the household should provide and explain the period
of time the documents should cover.
* * * * *
Sec. 273.8 [Amended]
10. The amendment to 7 CFR 273.8, published at 54 FR 24529, June 7,
1989, which amended paragraphs (e)(5) and (h)(1)(i) is adopted final.
Sec. 273.9 [Amended]
11. The amendment to 7 CFR 273.9, published at 54 FR 24529, June 7,
1989, which added a new sentence to paragraph (c)(1) is adopted final.
Sec. 273.10 [Amended]
12. The amendment to 7 CFR 273.10, published at 54 FR 24529, June
7, 1989, which added a new sentence to paragraph (d)(1)(i), amended the
fourth sentence of paragraph (g)(1)(i)(A), and amended the first
sentence of paragraph (g)(1)(ii) is adopted final.
Sec. 273.11 [Amended]
13. The amendment to 7 CFR 273.11, published at 54 FR 24530, June
7, 1989, which added a new paragraph (a)(1)(v) is adopted final.
Sec. 273.12 [Amended]
14. The amendment to 7 CFR 273.12, published at 54 FR 24530, June
7, 1989, which amended paragraphs (b)(1)(ii) and (b)(1)(iii), and added
new paragraphs (b)(1)(iv) and (b)(1)(v) is adopted final.
Sec. 273.13 [Amended]
15. The amendment to 7 CFR 273.13(a)(2), published at 54 FR 24530,
June 7, 1989, is adopted final.
Sec. 273.21 [Amended]
16. The amendment to 7 CFR 273.21 published at 54 FR 24530, June 7,
1989 which revised the introductory text of paragraph (c) and paragraph
(c)(5), added a new sentence to the end of paragraph (f)(2)(i),
redesignated paragraph (h)(3)(iii) as paragraph (h)(4), amended newly
redesignated paragraph (h)(4), amended paragraph (j)(3)(iii)(B) is
adopted final.
PART 277--PAYMENTS OF CERTAIN ADMINISTRATIVE COSTS OF STATE
AGENCIES
Sec. 277.4 [Amended]
17. The amendment to 7 CFR 277.4, published at 54 FR 24531, June 7,
1989, which added a new paragraph (f) is adopted final with the
following changes:
a. Paragraph (f) is amended by removing the word ``the'' after the
words ``persons working with'' and replacing it with the words
``volunteer or nonprofit.''
Appendix A to Part 277--[Amended]
18. The amendment to Appendix A, published at 54 FR 24531, June 7,
1989, which removed paragraph C.(14) is adopted final.
Dated: March 24, 1994.
William E. Ludwig,
Administrator.
[FR Doc. 94-8063 Filed 4-5-94; 8:45 am]
BILLING CODE 3410-30-U
