[Federal Register Volume 64, Number 132 (Monday, July 12, 1999)]
[Proposed Rules]
[Pages 37454-37461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17445]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 64, No. 132 / Monday, July 12, 1999 /
Proposed Rules
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DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Chapter II, Subchapter C, and Parts 271, 273 and 276
RIN 0584-AC41
Food Stamp Program: Non-Discretionary Provisions of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
AGENCY: Food and Nutrition Service, USDA.
ACTION: Proposed rule.
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SUMMARY: On August 22, 1996, the President signed the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996. This
rule proposes to amend the Food Stamp Program Regulations to implement
the non-discretionary provisions of this law which affect the Food
Stamp Program. These provisions concern changes in the minimum and
maximum allotments, the standard and shelter deductions, household
composition, the fair market value of vehicles, the definition of
homeless, and expedited service. This rule also incorporates, where
possible, the principles of the President's Regulatory Reform
Initiative and removes overly prescriptive, outdated, and redundant
provisions and increases State agency flexibility.
DATES: Comments on this proposed rulemaking must be received on or
before September 10, 1999 to be assured of consideration.
ADDRESSES: Comments should be submitted to Margaret Werts Batko,
Certification Policy Branch, Program Development Division, Food and
Nutrition Service, USDA, 3101 Park Center Drive, Alexandria, Virginia,
22302. Comments may also be faxed to the attention of Ms. Batko at
(703) 305-2486 or e-mailed to [email protected] All written
comments will be open for public inspection at the office of the Food
and Nutrition Service during regular business hours (8:30 a.m. to 5
p.m., Monday through Friday) at 3101 Park Center Drive, Alexandria,
Virginia, Room 720.
FOR FURTHER INFORMATION CONTACT: Questions regarding this proposed
rulemaking should be addressed to Ms. Batko at the above address or by
telephone at (703) 305-2516.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be Economically Significant under
E.O. 12866, and Major under P.L. 104-121, and has therefore been
reviewed by the Office of Management and Budget.
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 in 7 CFR Part 3015, Subpart V and related Notice (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 rule has been reviewed with regard to the requirements of the
Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612). Shirley R.
Watkins, Under Secretary for Food, Nutrition, and Nutrition Services,
has certified that this rule will 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
administer the Program. Participants will be affected to the extent
that their benefits will not increase at the rate they would have under
the old law.
Paperwork Reduction Act
This proposed rule does not contain reporting or recordkeeping
requirements subject to approval by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act of 1980 (44 U.S.C. 3507).
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is intended to have preemptive effect with
respect to any State or local laws, regulations or policies that
conflict with its provisions or that would otherwise impede its full
implementation. This rule is not intended to have retroactive effect
unless so specified in the ``Effective Date'' paragraph of the final
rule. Prior to any judicial challenge to the provisions of this rule or
the application of its provisions, all applicable administrative
procedures must be exhausted. In 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)(1) 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) or Part 283 (for
rules related to QC liabilities); (3) for retailers and wholesalers--
administrative procedures issued pursuant to 7 U.S.C. 2023 set out at 7
CFR 278.8 and Part 279.
Regulatory Impact Analysis
Need for Action
This action is needed to implement 8 provisions of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L.
104-193. This rule proposes to remove the exception in current law that
allows persons age 21 and under who are themselves parents or married,
and who live with a parent, to participate in the Food Stamp Program as
a separate household; change the way the maximum allotments are
calculated by using 100% of the Thrifty Food Plan instead of 103%;
alter the definition of homeless by setting a time limit (where there
was none before) on people whose primary nighttime residence is a
temporary accommodation in the home of another; freeze the standard
deduction in food stamps for fiscal year 1997 and beyond at $134;
retain a cap on the excess shelter expense deduction; freeze the fair
market value of vehicle exemption at $4,650; freeze the minimum
allotment at $10 a month; increase the number of days in which States
have to provide expedited service from 5 to 7 calendar days; eliminate
households consisting entirely of homeless people from those categories
of households entitled to receive expedited service; and remove the
State agency option to exclude from unearned income up to $50 monthly
of title IV-D child support payments.
[[Page 37455]]
Effects on Administering Agencies
State food stamp offices are affected to the extent that they must
implement the provisions described in this action. However, State
agencies are not expected to change their personnel due to these
changes, so State agencies are expected to incur minimal costs.
Costs
The changes in the food stamp requirements made by the provisions
addressed in this rule would reduce Food Stamp Program costs for FY
1998 by approximately $1,930 million.
Definitions--7 CFR 271.2
Definition of Homeless: Current regulations at 7 CFR 271.2 define a
homeless individual as an individual lacking a fixed or regular
nighttime residence or whose primary nighttime residence is a shelter,
a residence intended for those to be institutionalized, a temporary
accommodation in the residence of another, or a public or private place
not designed to be a regular sleeping accommodation for humans. The
Food Stamp Act of 1977, as amended (7 U.S.C. 2011-2032) (the Act), did
not place a time limit on what constitutes a temporary accommodation in
the residence of another.
Section 805 of the Personal Responsibility and Work Opportunity
Reconciliation Act (PRWORA) of 1996 amends section 3(s)(2)(C) of the
Act by setting a time limit for people whose primary nighttime
residence is a temporary accommodation in the home of another. These
people will only be considered homeless if the temporary accommodation
is for not more than 90 days. This rule proposes to amend 7 CFR 271.2
accordingly.
Definition of Minimum Benefit: Prior to the PRWORA, section 8(a) of
the Act provided that the minimum benefit for one- and two-person
households shall be $10 per month, and shall be adjusted to the nearest
$5 each October 1 based upon the percentage change in the Thrifty Food
Plan for the twelve-month period ending the preceding June.
The current regulations at 7 CFR 271.2 define minimum benefit as
the minimum monthly amount of food stamps that one- and two-person
households received. Section 271.2 also provides that the amount of the
minimum benefit will be reviewed annually and adjusted to the nearest
$5 each October 1 based on the percentage change in the Thrifty Food
Plan for the twelve-month period ending the preceding June.
Section 826 of the PRWORA amends section 8(a) of the Act by
removing the annual adjustment provision, thus freezing the minimum
benefit at $10. This rule proposes to amend 7 CFR 271.2 accordingly.
Household Concept--7 CFR 273.1
7 CFR 273.1(a)(2)--Special Definition--Treatment of Children Living
at Home: Section 3(i)(2) of the Act provides specific definitions for
what constitutes a household when a child is living with his or her
parents. The Mickey Leland Childhood Hunger Relief Act, Title XIII,
Chapter 3 of the Omnibus Budget Reconciliation Act of 1993, Pub. L.
103-66 (Leland Act), amended section 3(i) of the Act with the intention
of simplifying the household definition provisions and supporting
families that live together and share housing expenses but who do not
necessarily purchase and prepare meals together. With certain
enumerated exceptions, the simplified household definition allowed
persons who live together and who purchase food and prepare meals
separately to participate in the Program as separate food stamp
households. Specifically, it provided that a child under 22 years of
age who is living with his or her natural or adoptive parent or
stepparent, is presumed to purchase and prepare meals together with the
parent even if he does not, unless the child is also living with his or
her own child(ren) or spouse. The ``Certification Provisions of the
Mickey Leland Childhood Hunger Relief Act'' rule published October 17,
1996 (61 FR 54279), amended 7 CFR 273.1 accordingly. Currently, 7 CFR
273.1(a)(2)(B) provides that a child under 22 years of age who is
living with his or her natural or adoptive parents or stepparents, is
considered to be purchasing and preparing meals with his or her
parents, unless the child is also living with his or her own child(ren)
or spouse.
Section 803 of the PRWORA amended section 3(i) of the Act by
eliminating this exception to the household definition. This rule
proposes to make a corresponding change to the regulations at 7 CFR
273.1 to provide that a child under 22 years of age who is living with
his or her natural or adoptive parents or stepparents is considered to
be purchasing and preparing meals with his or her parents and,
therefore, is part of the parents' household.
Definition of Parental Control: To provide the same treatment for a
child living with a non-parent adult that is provided for a child
living with a natural or adoptive parent or stepparent, the Department
is proposing to change the definition of parental control. This rule
proposes to amend 7 CFR 273.1 by removing the exception that a child
who is living with his or her own child(ren) or spouse is not
considered to be under parental control.
Reorganization of 7 CFR 273.1--Household Concept: In the spirit of
the President's Regulatory Reform Initiative, we are proposing to
reorganize section 273.1, with the exception of 7 CFR 273.1(d) and (f),
which remain unchanged. We are not proposing significant changes to
section 273.1 as nearly every provision is set forth in the Act and can
be changed only through legislative action. However, we are condensing
several sections into a single section; removing unnecessary verbiage
and provisions covered elsewhere in the regulations; and providing
State agency flexibility where possible. This proposed rule sets out
the entire revised text for the convenience of the reader. The specific
changes are detailed in the following paragraphs of this section of
preamble.
Eligibility for the Food Stamp Program is based on a ``household''
concept. Current regulations at 7 CFR 273.1(a)(1) define what
constitutes a ``household'' for Food Stamp Program purposes. Generally,
a household means an individual living alone or group of individuals
living together and purchasing food and preparing meals in common.
There are exceptions to this general household concept policy for
certain types of living arrangements which are set forth in 7 CFR
273.1(a)(2), (b), (c), and (e).
This rule proposes to combine the current provisions at 7 CFR
273.1(a)(2), (b), (c)(1), (c)(3), and (e) governing the inclusion or
exclusion from a household of certain individuals living with others in
a single section designated as paragraph (b). These individuals include
spouses, children, elderly and disabled persons, roomers, live-in
attendants, boarders, residents of institutions, and other individuals
who share living quarters with the household but who do not customarily
purchase food and prepare meals with the household. There has been
confusion in the past as to when such individuals are included or
excluded as household members. We believe including the provisions in
separate paragraphs under a single regulatory section rather than
addressing each inclusion/exclusion provision in a separate regulatory
section will help to clarify the household concept.
Furthermore, this rule would remove the definition of ``spouse'' at
7 CFR 271.2. Most States have laws governing who is considered a
spouse. Allowing State agencies to use a State definition of spouse
provides flexibility while
[[Page 37456]]
ensuring a uniform policy throughout the State.
To ensure uniformity among all States, we are proposing to retain
in new paragraph (b)(3) the language currently appearing in 7 CFR
273.1(c)(1) which defines a boarder. Boarders are individuals or groups
of individuals residing with others and paying reasonable compensation
to the others for meals or meals and lodging. Persons paying less than
reasonable compensation for meals are not boarders and, thus, are
required to be members of the household providing the services. We are
also proposing to retain the language appearing in current rules at 7
CFR 273.1(c)(3)(i) and (ii) that provides that an individual qualifies
as a boarder paying reasonable compensation for board when the board
payment is for more than two meals a day for which the individual pays
an amount equal to or in excess of the maximum food stamp allotment for
the appropriate size of the boarder household, or is for less than two
meals a day and the individual pays an amount equal to or in excess of
two-thirds of the maximum food stamp allotment for the appropriate size
of the boarder household.
We contemplated removing these computation provisions from the
rules and allowing State agencies the flexibility to establish a means
for computing reasonable compensation. This computation method has been
in existence since 1982. Upon researching our files, we found no
evidence that these provisions have been a problem for the State
agencies or clients. This is not an area of the Program where State
agencies have specifically asked for flexibility. We believe the
provision as written is simple to administer, equitable to clients, and
adaptable to each State's automated certification system. However, we
specifically solicit comments from interested parties on this matter.
With the proposed combining of 7 CFR 273.1(a)(2), (b), (c)(1),
(c)(3), and (e) in new paragraph (b), 7 CFR 273.1(c) of current
regulations would be eliminated. We are adding a new paragraph (c).
There has been some confusion by State agencies as to when the policy
on ``purchasing food and preparing meals'' overrides policy prohibiting
the separation of spouses and children, or prohibiting the
participation of boarders. In the new paragraph (c) we would
specifically allow State agencies to apply discretion when the rule
does not lend itself to a simple and direct answer to certain living
situations. We cannot cover all living situations by regulation. We
intend that State agencies use prudent judgment in determining when to
allow individuals to be certified as separate households from others
with whom they reside and to protect Program integrity by not allowing
great numbers of households to fragment into smaller households. The
language also clarifies that any State policy adopted under this
provision must be applied consistently throughout the State.
This rule proposes to remove the language currently appearing at 7
CFR 273.1(c)(2) and (c)(4). The provision at 7 CFR 273.1(c)(2) reminds
the State agency that the household with whom the boarder resides can
participate in the Program if otherwise eligible. The provision at 7
CFR 273.1(c)(4) reminds the State agency that an individual furnished
both meals and lodging and paying less than reasonable compensation for
these services is not a boarder, but is a member of the household
providing the services pursuant to 7 CFR 273.1(a). We consider these
two provisions to be redundant.
We are not proposing any changes in 7 CFR 273.1(d) Head of
Household, and (f) Authorized Representative because we believe the
current regulations are appropriate. Requirements in current
regulations at 7 CFR 273.1(g) for determining the eligibility and
benefits of households containing members on strike are redesignated as
paragraph (e), with minor editorial changes for clarity.
Application Processing--7 CFR 273.2
Expedited Service: Current regulations at 7 CFR 273.2(i) provide
for expedited service to migrant or seasonal farm workers who are
destitute and households with less than $150 in combined monthly gross
income. Both of these types of households must also have liquid
resources of $100 or less to qualify for expedited service. Households
in which all members are homeless individuals and eligible households
whose combined monthly gross income and liquid resources are less than
the household's monthly rent or mortgage and utilities are also
eligible to receive expedited service. Prior to the PRWORA, section
11(e)(9) of the Act required that benefits be provided not later than
five calendar days following a household's date of application for all
eligible households.
Section 838 of the PRWORA amends section 11(e)(9) of the Act by
increasing the amount of days in which States have to provide expedited
service from five to seven calendar days, and eliminating households
consisting entirely of homeless people from those categories of
households entitled to receive expedited service.
Accordingly, this rule proposes to amend 7 CFR 273.2(i)(3)(i) by
striking ``fifth'' calendar day and inserting ``seventh''. This rule
also would amend 7 CFR 273.2(i)(3)(ii) by striking ``5 calendar days''
and inserting ``7 calendar days.'' In addition, the rule would remove 7
CFR 273.2(i)(1)(iii) which provides that households in which all
members are homeless individuals are entitled to expedited service and
redesignates 2(i)(1)(iv) as 2(i)(1)(iii). Homeless individuals may
continue to qualify for expedited service under the financial criteria.
Resource Eligibility Standards--7 CFR 273.8
Fair Market Value: The Leland Act amended section 5(g) of the Act
to provide that on October 1, 1996, and each October 1 thereafter, the
fair market value resource exclusion limit for licensed vehicles shall
be adjusted, using a base of $5,000, to reflect changes in the new car
component of the Consumer Price Index for All Urban Consumers (CPI-U)
published by the Bureau of Labor Statistics for the 12-month period
ending on June 30 preceding the date of such adjustment and rounded to
the nearest $50. The ``Certification Provisions of the Mickey Leland
Hunger Relief Act'' rule, published October 17, 1996 (61 FR 54279),
amended 7 CFR 273.8(h)(3) accordingly.
Section 810 of the PRWORA amended section 5(g) of the Act to
provide that any licensed vehicle that is used for household
transportation or to obtain or continue employment to the extent that
the fair market value of the vehicle exceeds $4,600 through September
30, 1996, and $4,650 beginning October 1, 1996 shall be included in
financial resources. Section 810 also freezes the fair market value
exclusion limit used in determining the countable value of the included
vehicle at $4,650. Accordingly, this rule proposes to amend 7 CFR 273.8
to include the new resource exclusion level which is effective October
1, 1996.
We are proposing to modify the definition in 7 CFR 273.8(c)(i)(C)
of a vehicle that can be excluded from a household's assets because it
is used for income-producing purposes to include vehicles needed for
performing a job, although they may also be used for commuting and for
normal household errands. Examples would be a car used for a job as a
delivery person, a motor vehicle used by a courier, a car used by a
household member to call on customers, even though the vehicle is not
used for long-distance travel, or any vehicle used to perform a job
that was advertised as requiring a personally-
[[Page 37457]]
owned motor vehicle. This will ensure that State agencies will not have
to verify the relative amount of mileage traveled for income-producing
purposes. Accordingly, this rule proposes to amend 7 CFR 273.8 to
remove the requirement that a vehicle used for income-producing
purposes be used primarily for those purposes in order to be excluded
from a household's assets. FNS is seeking comments on the effect this
proposal will have on State agencies and on food stamp applicants and
recipients.
Reorganization of 7 CFR 273.8: We are taking this opportunity to
propose a reorganization of 7 CFR 273.8 and the removal of redundant or
unnecessary verbiage.
Section 5(g)(2) of the Act requires that the Secretary prescribe
inclusions and exclusions from financial resources following the
regulations in force as of June 1, 1982. The law provided an exception
for the provisions governing vehicles and inaccessible resources. All
other resource inclusion and exclusion provisions described in the
regulations as of June 1, 1982 became law by reference and can only be
changed through legislative action. Nonetheless, there are some
provisions we are able to change and some areas where we can remove
redundant or unnecessary verbiage. Those provisions relate to the fair
market value test for vehicles, inaccessible resources, and the
transfer of resources. This rule would revise 7 CFR 273.8(e), (g), (h),
(i) and remove (j).
Currently, paragraph (e)(3) provides that licensed vehicles shall
be excluded from resources pursuant to the current provisions under
paragraph (h). A list of vehicles excluded from resources without
regard to the fair market value or equity value of the vehicle appears
in paragraphs (h)(1) and (h)(2). Paragraphs (h)(3) through (h)(6) state
that vehicles not excluded under paragraphs (h)(1) or (h)(2) must be
evaluated for their fair market value and/or equity value to determine
what portion of the value of the vehicle would be counted as a
resource, unless the vehicle is exempt from such tests. Regulations
governing the determination of the fair market value of a vehicle are
set forth in paragraph (g). We believe that this organization is
confusing and difficult to follow.
This rule proposes to remove all the provisions from paragraph (h)
and transfers them to either (e) or (g). The list of vehicles excluded
from resource consideration currently contained in paragraphs
(h)(1)(i)-(v) and (h)(2) are incorporated into 7 CFR 273.8(e)(3). The
remaining provisions of paragraph 5(h)(3), (h)(4) and (h)(5) concerning
the treatment of non-excluded vehicles are rewritten and combined with
the provisions in paragraph (g) to improve readability. As a result of
transferring the text of paragraph (h), that section would no longer
exist and paragraph (i) would be re-designated as paragraph (h). A
conforming amendment would also be made to paragraphs (e)(16) and
(e)(18) to reference the relocation of the vehicle exclusion
provisions. Furthermore, the current 7 CFR 273.8(j), which provides
that the resources of certain non-household members shall be treated in
accordance with 7 CFR 273.11, would be removed. We believe this
reference is unnecessary.
In keeping with the principles of the President's Regulatory Reform
Initiative of increasing State flexibility, this interim rule removes
the proscriptive regulations in paragraph (g) for determining the fair
market value of a vehicle and allows State agencies to establish their
own methodologies. However, to ensure client protection, we are
proposing to retain the prohibition against increasing the basic value
of a vehicle because of low mileage, optional equipment, or special
apparatus for the handicapped as State variations may affect
eligibility and costs.
This proposed rule would also revise paragraph (e)(11) which
excludes from countable resources any resource that is specifically
excluded by any other Federal statute and lists such excluded
resources. This rule proposes to remove the specific list of resources
excluded by other Federal laws. We periodically provide State agencies
with a list of such excluded resources through agency memoranda because
the list changes frequently and quickly becomes outdated. Doing this by
regulations results in incomplete regulations, thereby causing
confusion. We believe it is sufficient to have the regulation simply
provide an exclusion for any resource specifically excluded by another
Federal statute and continue to notify State agencies through agency
memoranda when such laws are enacted.
Income and Deductions--7 CFR 273.9
Standard Deduction: Current regulations at 7 CFR 273.9(d)(7)
provide that effective October 1, 1987, and each October 1 thereafter,
the standard deduction shall be adjusted to reflect change in the CPI-U
for items other than food for the twelve months ending the preceding
June 30. Section 809 of the PRWORA amends section 5(e) of the Act to
provide that the Secretary shall allow a standard deduction for each
household in the 48 contiguous States and the District of Columbia,
Alaska, Hawaii, Guam, and the Virgin Islands of the United States of
$134, $229, $189, $269, and $118, respectively. The annual adjustment
is eliminated. This rule would amend the regulations at 7 CFR
273.9(d)(7) accordingly.
Excess Shelter Expense Deduction: The current regulations at 7 CFR
273.9(d)(5) provide that households are entitled to a deduction from
income for excess shelter expenses that exceed 50 percent of the
household's net income remaining after all other deductions. For
households with an elderly or disabled member (as defined in 7 CFR
271.2), the amount of the deduction is not limited. For other
households, the deduction is limited. This limit, usually referred to
as the ``shelter cap,'' has been changed several times due to
legislation. The current regulations at 7 CFR 273.9(d)(8) were last
updated in 1987 and provide that effective October 1, 1988, and each
October 1 thereafter, the maximum limit for the excess shelter expense
deduction shall be adjusted to reflect changes in the shelter, fuel,
and utilities components of housing costs in the
CPI-U for the 12 months ending the preceding June 30.
The Leland Act amended section 5(e) of the Act to gradually
increase and then remove the limit on the amount of excess shelter
expenses these households could deduct from their income to determine
eligibility and benefits. The Leland Act provided that effective
October 1, 1995 through December 31, 1996, the excess shelter expense
deduction in the 48 contiguous States and the District of Columbia,
Alaska, Hawaii, Guam and the Virgin Islands of the United States, shall
not exceed $247, $429, $353, $300, and $182, respectively, and that the
cap be removed January 1, 1997.
The ``Excess Shelter Expense Limit and Standard Utility
Allowances'' rule, published on November 22, 1994 (59 FR 60098),
proposed to make the corresponding change in the regulations at 7 CFR
273.9(d)(8). This rule has been overtaken by more recent statutory
changes and will not be published in final form.
Section 809 of the PRWORA once again amended section 5(e) of the
Act in regard to the excess shelter limit. Section 809 provides that a
household shall be entitled to an excess shelter expense deduction to
the extent that the monthly amount expended by a household for shelter
exceeds an amount equal to 50 percent of monthly household income after
all other applicable deductions have been allowed. In the case of a
household that does not contain an elderly or disabled individual, in
the 48 contiguous States
[[Page 37458]]
and the District of Columbia, Alaska, Hawaii, Guam and the Virgin
Islands of the United States, the excess shelter expense deduction
shall not exceed:
(i) for the period beginning on the date of enactment of the law
and ending on December 31, 1996, $247, $429, $353, $300, and $182 per
month, respectively;
(ii) for the period beginning on January 1, 1997, and ending on
September 30, 1998, $250, $434, $357, $304, and $184 per month,
respectively;
(iii) for fiscal years 1999 and 2000, $275, $478, $393, $334, and
$203 per month, respectively; and
(iv) for fiscal year 2001 and each subsequent fiscal year, $300,
$521, $429, $364, and $221 per month, respectively.
This proposed rule would make a corresponding change to the
regulations at 7 CFR 273.9(d)(8).
Determining Household Eligibility and Benefit Levels--7 CFR 273.10
Maximum Allotments: As required by section 3(o) of the Act prior to
the PRWORA, the current regulations at 7 CFR 273.10(e)(4)(ii)(F)
provide that effective October 1, 1990 and each October 1 thereafter,
maximum food stamp allotments shall be based on 103 percent of the cost
of the Thrifty Food Plan (TFP) for the four-person reference family for
the preceding June, rounded to the nearest lower dollar increment.
Section 804 of the PRWORA amends section 3(o) of the Act by
providing that on October 1, 1996, and each October 1 thereafter, the
Department shall adjust the cost of the maximum allotment to reflect
the cost of the Thrifty Food Plan in the preceding June, and round the
result to the nearest lower dollar increment for each household size,
except that on October 1, 1996, the Sectretary may not reduce the cost
of the maximum allotment in effect on September 30, 1996.
Accordingly, this proposed rule would amend 7 CFR 273.10(e)(4)(ii)
to provide that effective October 1, 1996, the maximum food stamp
allotments shall be based on 100% of the cost of the TFP, as defined in
section 271.2, for the preceding June, rounded to the nearest lower
dollar increment, except that on October 1, 1996, the allotments may
not fall below those in effect on September 30, 1996.
In addition, the Department is proposing to remove 7 CFR
273.10(e)(4)(ii)(A) through (F) as these paragraphs, which provide for
the adjustment of the TFP for the years 1983 through 1995, are
outdated.
Conforming Amendments
Aid to Families with Dependent Children: The current food stamp
regulations contain the terms, ``Aid to Families with Dependent
Children,'' ``AFDC,'' and ``Aid to Families with Dependent Children
(AFDC).'' The PRWORA block granted this program to the States and
renamed it the Temporary Assistance for Needy Families (TANF) program.
Therefore, these terms are obsolete. Section 109 of the PRWORA made
conforming amendments to the Food Stamp Act by replacing those terms
with a reference to assistance under a State program funded under part
A of title IV of the Social Security Act.
Accordingly, this rule proposes to amend Subchapter C by replacing
the words ``Aid to Families with Dependent Children'' with ``Temporary
Assistance for Needy Families'', by replacing ``AFDC'' with ``TANF'',
and by replacing ``Aid to Families with Dependent Children (AFDC)''
with the phrase ``Temporary Assistance for Needy Families (TANF)''.
Child support payments: As required by section 5 of the Act prior
to the PRWORA, the current regulations at 7 CFR 273.9(c)(12) provide
that the State agency has the option to exclude from unearned income,
up to $50 monthly of title IV-D child support payments in cases where
such payments are received by the households from the title IV-D
support agency responsible for collecting such child support payments
on behalf of AFDC recipients. The exclusion must be uniformly applied
to all affected households. Section 109 of the PRWORA amends section 5
of the Act by removing this exclusion. This rule proposes to remove 7
CFR 273.9(c)(12) and renumber (c)(13) through (c)(17) accordingly.
As required by section 5 of the Act prior to the PRWORA, current
regulations at 7 CFR 276.2(e)(1) provide that the State agency shall be
liable to FCS for the increased dollar value of coupon allotments
resulting from providing households with an income exclusion for child
support payments as described in section 273.9(c)(12). Section 109 of
the PRWORA amends section 5 of the Act by removing the payback.
Accordingly, this rule would remove 7 CFR 276.2(e) in its entirety.
Implementation
State welfare agencies have been instructed through agency
directive to implement the provisions of the PRWORA without waiting for
formal regulations. Sections 803 (Treatment of Children Living at
Home), 805 (Definition of Homeless), and 838 (Expedited Service) were
required to be implemented as of August 22, 1996. Sections 804
(Adjustment of the Thrifty Food Plan) and 810 (Vehicle Allowance) were
required to be implemented as of October 1, 1996. Section 809 (Excess
Shelter Cap) required no change until January 1, 1997. Sections 809
(Standard Deduction), 826 (Minimum Allotment), and 109 (Conforming
Amendments) required no immediate action by the State agencies. The
Department is proposing that the changes in this rule be effective and
must be implemented the first day of the month 60 days from date of
publication of the final rule. State agencies shall implement the
provisions no later than the required implementation date. State
agencies would be required to adjust the cases of ongoing households at
the next recertification, at household request, or when the case is
next reviewed, whichever comes first. If implementation of the above
Act or this rule is delayed, benefits shall be restored, as
appropriate, in accordance with the Food Stamp Act. Any variances
resulting from implementation of the provisions of the final rule would
be excluded from error analysis for 120 days from the first day of the
month 60 days from date of publication of the final rule.
List of Subjects
7 CFR Part 271
Administrative practice and procedure, Food stamps, Grant
programs--social programs.
7 CFR Part 273
Administrative practice and procedures, Aliens, Claims, Food
stamps, Fraud, Grant programs-social programs, Penalties, Reporting and
recordkeeping requirements, Social Security, Students.
7 CFR Part 276
Administrative practice and procedure, Food stamps, Reporting and
recordkeeping requirements.
Accordingly, 7 CFR chapter II, subchapter C, and parts 271, 273,
276 are proposed to be amended as follows:
SUBCHAPTER C--FOOD STAMP AND FOOD DISTRIBUTION PROGRAM--[AMENDED]
1. In Subchapter C:
a. The words ``Aid to Families with Dependent Children'' are
removed wherever they appear and the words ``Temporary Assistance for
Needy Families'' are added in their place.
[[Page 37459]]
b. The references to ``AFDC'' are removed wherever they appear and
``TANF'' is added in their place.
c. The references to ``Aid to Families with Dependent Children
(AFDC)'' are removed wherever they appear, and the words ``Temporary
Assistance for Needy Families (TANF)'' are added in their place.
2. The authority citation for parts 271, 273, and 276 is revised to
read as follows:
Authority: 7 U.S.C. 2011-2036.
PART 271--GENERAL INFORMATION AND DEFINITIONS
Sec. 271.2 [Amended]
3. In Sec. 271.2:
a. Paragraph (3) of the definition of ``Homeless individual'' is
amended by adding the words ``for not more than 90 days'' after the
word ``accommodation''.
b. The definition of ``Minimum benefit'' is amended by removing all
text after the word ``benefit'' in the second sentence and adding in
its place ``shall be $10.''
c. The definition of ``Spouse'' is removed.
PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS
4. In Sec. 273.1, paragraphs (a), (b), (c) and (e) are revised to
read as follows:
Sec. 273.1 Household concept.
(a) General household definition. A household is composed of one of
the following individuals or groups of individuals, unless otherwise
specified in paragraph (b) of this section:
(1) An individual living alone;
(2) An individual living with others, but customarily purchasing
food and preparing meals for home consumption separate and apart from
others; or
(3) A group of individuals who live together and customarily
purchase food and prepare meals together for home consumption.
(b) Special household requirements. (1) Required household
combinations. The following individuals who live with others shall be
considered as customarily purchasing food and preparing meals with the
others, even if they do not do so, and thus must be included in the
same household, unless otherwise specified.
(i) Spouses;
(ii) A child under 22 years of age who is living with his or her
natural or adoptive parent(s) or step-parent(s); and
(iii) A child (other than a foster child) under 18 years of age who
lives with and is under the parental control of a household member
other than his or her parent. A child shall be considered to be under
parental control for purposes of this provision if he or she is
financially or otherwise dependent on a member of the household.
(2) Elderly and disabled persons. Notwithstanding the provisions of
paragraph (a) of this section, an otherwise eligible member of a
household who is 60 years of age or older and is unable to purchase and
prepare meals because he or she suffers from a disability considered
permanent under the Social Security Act or a non disease-related,
severe, permanent disability may be considered, together with his or
her spouse (if living there), a separate household from the others with
whom the individual lives. Separate household status under this
provision shall not be granted when the income of the others with whom
the elderly disabled individual resides (excluding the income of the
elderly and disabled individual and his or her spouse) exceeds 165
percent of the poverty line.
(3) Boarders. (i) Residents of a commercial boarding house,
regardless of the number of residents, are not eligible to participate
in the Program. A commercial boarding house is an establishment
licensed as an enterprise that offers meals and lodging for
compensation. In project areas without licensing requirements, a
commercial boarding house is a commercial establishment which offers
meals and lodging for compensation with the intent of making a profit.
(ii) All other individuals or groups of individuals paying a
reasonable amount for meals or meals and lodging shall be considered
boarders and are not eligible to participate in the Program
independently of the household providing the board. Such individuals or
groups of individuals may participate, along with a spouse or children
living with them, as members of the household providing the boarder
services, only at the request of the household providing the boarder
service. An individual paying less than a reasonable amount for board
shall not be considered a boarder but shall be considered, along with a
spouse or children living with them, as a member of the household
providing the board.
(A) For individuals whose board arrangement is for more than two
meals per day, ``reasonable compensation'' shall be an amount that
equals or exceeds the maximum food stamp allotment for the appropriate
size of the boarder household.
(B) For individuals whose board arrangement is for two meals or
less per day, ``reasonable compensation'' shall be an amount that
equals or exceeds two-thirds of the maximum food stamp allotment for
the appropriate size of the boarder household.
(iii) Boarders shall not be considered to be residents of an
institution for the purposes of paragraph (b)(7)(vii) of this section.
(4) Foster care individuals. Individuals placed in the home of
relatives or other individuals or families by a Federal, State, or
local governmental foster care program shall be considered to be
boarders and cannot participate in the Program independently of the
household providing the foster care services. Such foster care
individuals may participate, along with a spouse or children living
with them, as members of the household providing the foster care
services, only at the request of the household providing the foster
care.
(5) Roomers. Individuals to whom a household furnishes lodging for
compensation, but not meals, may participate as separate households.
Persons described in paragraph (b)(1) of this section shall not be
considered roomers.
(6) Live-in attendants. Live-in attendants may participate as a
separate household. Persons described in paragraph (b)(1) of this
section shall not be considered live-in attendants.
(7) Ineligible household members. The following persons are not
eligible to participate as separate households or as a member of any
household:
(i) Ineligible aliens and students as specified in Sec. 273.4 and
Sec. 273.5, respectively;
(ii) SSI recipients in ``cash-out'' States as specified in
Sec. 273.20;
(iii) Individuals disqualified for noncompliance with the work
requirements of Sec. 273.7;
(iv) Individuals against whom a sanction was imposed for failure to
comply with a workfare requirement as specified in Sec. 273.22;
(v) Individuals disqualified for failure to provide an SSN as
specified in Sec. 273.6;
(vi) Individuals disqualified for an intentional Program violation
as specified in Sec. 273.16; and
(vii) Residents of an institution, with some exceptions.
Individuals shall be considered residents of an institution when the
institution provides them with the majority of their meals (over 50
percent of three meals daily) as part of the institution's normal
services. Exceptions to this requirement include only the individuals
listed in paragraphs (b)(7) (vii)(A) through (b)(7)(vii)(E) of this
section. The individuals listed in paragraphs (b)(7)(vii)(A) through
(b)(7)(vii)(E) can
[[Page 37460]]
participate in the Program and shall be treated as separate households
from the others with whom they reside pursuant to the mandatory
household combination requirements of paragraph (b)(1) of this section,
unless otherwise stated:
(A) Individuals who are residents of federally subsidized housing
for the elderly;
(B) Individuals who are narcotic addicts or alcoholics who reside
at a facility or treatment center for the purpose of regular
participation in a drug or alcohol treatment and rehabilitation
program, and their children but not the spouse of such persons who live
with them at the treatment center or facility;
(C) Individuals who are disabled or blind who are residents of
group living arrangements;
(D) Individual women or women with their children who are
temporarily residing in a shelter for battered women and children; and
(E) Individuals who are residents of public or private nonprofit
shelters for homeless persons.
(c) Unregulated situations. For situations that are not clearly
addressed by the provisions of paragraphs (a) and (b) of this section,
the State agency may apply its own policy for determining when an
individual is a separate household or a member of another household if
the policy is applied consistently throughout the State.
* * * * *
(e) Strikers. Households with a striking member are not eligible to
participate in the Program, unless the household was eligible for
benefits the day prior to the strike and is otherwise eligible at the
time of application. A striker shall be anyone involved in a strike or
concerted stoppage of work by employees (including a stoppage by reason
of the expiration of a collective-bargaining agreement) and any
concerted slowdown or other concerted interruption of operations by
employees. Any employee affected by a lockout, however, shall not be
deemed to be a striker. Further, an individual who goes on strike who
is exempt from work registration, in accordance with Sec. 273.7(b), the
day prior to the strike, other than those exempt solely on the grounds
that they are employed, shall not be deemed to be a striker.
(1) Pre-strike eligibility shall be determined by considering the
day prior to the strike as the day of application and assuming the
strike did not occur.
(2) Eligibility at the time of application shall be determined by
comparing the striking member's income before the strike to the
striker's current income and adding the higher of the two to the
current income of non-striking members during the month of application.
If the household is eligible, the higher income figure shall also be
used in determining the household's benefits.
* * * * *
Sec. 273.2 [Amended]
5. In Sec. 273.2:
a. Paragraph (i)(1)(iii) is removed.
b. Paragraph (i)(1) (iv) is redesignated as paragraph (i)(1)(iii).
c. Paragraph (i)(3)(i) is amended by removing the word ``fifth''
wherever it appears and adding the word ``seventh'' in its place.
d. Paragraph (i)(3)(ii) is amended by removing the words ``5
calendar days'' and adding the words ``7 calendar days'' in its place.
6. In Sec. 273.8:
a. Paragraph (c)(2) is amended by removing the regulatory reference
to ``paragraph (h)'' and adding in its place a regulatory reference to
``paragraph (g)''.
b. Paragraph (e)(3) is revised.
c. Paragraph (e)(11) is amended by removing the second sentence of
the introductory text and by removing paragraphs (e)(11)(i) through
(e)(11)(ix).
d. Paragraph (e)(16) is amended by removing the regulatory
reference to ``paragraphs (h)(1)(i), (h)(1)(ii) or (h)(1)(v)'' and
adding in its place the regulatory reference to ``paragraphs
(e)(3)(i)(A), (e)(3)(i)(B) or (e)(3)(i)(E)'', respectively.
e. Paragraph (e)(18) is amended by removing the regulatory
reference to ``paragraph (h)'' and adding in its place a regulatory
reference to ``paragraph (g)''.
f. Paragraph (g) is revised.
g. Paragraphs (h) and (j) are removed and paragraph (i) is
redesignated as paragraph (h).
The revisions read as follows:
Sec. 273.8 Resource eligibility standards.
* * * * *
(e) Exclusions from resources. * * *
(3)(i) Licensed vehicles that meet the following conditions:
(A) Used for income-producing purposes such as, but not limited to,
a taxi, truck, or fishing boat, or a vehicle used for deliveries, to
call on customers, or required by the terms of employment. Licensed
vehicles that have previously been used by a self-employed household
member engaged in farming but are no longer used over 50 percent of the
time in farming because the household member has terminated his/her
self-employment from farming shall continue to be excluded as a
resource for one year from the date the household member terminated
his/her self-employment farming;
(B) Annually producing income consistent with its fair market
value, even if used only on a seasonal basis;
(C) Necessary for long-distance travel, other than daily commuting,
that is essential to the employment of a household member (or
ineligible alien or disqualified person whose resources are being
considered available to the household), for example, the vehicle of a
traveling sales person or a migrant farm worker following the work
stream;
(D) Used as the household's home and, therefore, excluded under
paragraph (e)(1) of this section;
(E) Necessary to transport a physically disabled household member
(or ineligible alien or disqualified person whose resources are being
considered available to the household) regardless of the purpose of
such transportation (limited to one vehicle per physically disabled
household member). A vehicle shall be considered necessary for the
transportation of a physically disabled household member if the vehicle
is specially equipped to meet the special needs of the disabled person
or if the vehicle is a special type of vehicle that makes it possible
to transport the disabled person. The vehicle need not have special
equipment or be used primarily by or for the transportation of the
physically disabled household member; or
(F) Necessary to carry fuel for heating or water for home use when
such transported fuel or water is anticipated to be the primary source
of fuel or water for the household during the certification period.
Households shall receive this resource exclusion without having to meet
any additional tests concerning the nature, capabilities, or other uses
of the vehicle. Households shall not be required to furnish
documentation, as mandated by Sec. 273.2(f)(4), unless the exclusion of
the vehicle is questionable. If the basis for exclusion of the vehicle
is questionable, the State agency may require documentation from the
household, in accordance with Sec. 273.2(f)(4).
(ii) On those Indian reservations that do not require vehicles
driven by tribal members to be licensed, such vehicles shall be treated
as licensed vehicles for the purpose of this exclusion.
(iii) The exclusion in paragraphs (e)(3)(i)(A) through (e)(3)(i)(F)
of this section will apply when the vehicle is not in use because of
temporary unemployment, such as when a taxi driver is ill and cannot
work, or when
[[Page 37461]]
a fishing boat is frozen in and cannot be used.
* * * * *
(g) Determining the value of non-excluded vehicles. (1) The State
agency shall individually evaluate the fair market value of each
licensed vehicle that is not excluded under paragraph (e)(3) of this
section. That portion of the fair market value that exceeds $4,650
beginning October 1, 1996, shall be counted in full toward the
household's resource level, regardless of any encumbrances on the
vehicle. Such licensed vehicles as well as all unlicensed vehicles
shall also be evaluated for their equity value (fair market value less
encumbrances), unless specifically exempt from the equity value test.
If the vehicle has a countable fair market value of more than $4,650
after October 1, 1996, and also has a countable equity value, only the
greater of the two amounts shall be counted as a resource. Only the
following vehicles are exempt from the equity value test:
(i) Vehicles excluded under paragraph (e)(3)(i) of this section;
(ii) One licensed vehicle per household; and
(iii) Any other vehicle used to transport household members to and
from employment (including times during temporary periods of
unemployment), or to and from training or education that is preparatory
to employment, or to seek employment in compliance with the employment
and training criteria specified in Sec. 273.7.
(2) State agencies shall be responsible for establishing
methodologies for determining the fair market value of vehicles. In
establishing such methodologies, the State agency shall not increase
the basic value of a vehicle by adding the value of low mileage or
other factors such as optional equipment or special apparatus for the
handicapped. Households which claim that the State agency's
determination of the value of its vehicle(s) does not apply shall be
given the opportunity to acquire verification of the true value of the
vehicle from a reliable source.
* * * * *
7. In Sec. 273.9:
a. Paragraph (c)(12) is removed and paragraphs (c)(13), (c)(14),
(c)(15), (c)(16) and (c)(17) are redesignated as paragraphs (c)(12),
(c)(13), (c)(14), (c)(15) and (c)(16) respectively.
b. Paragraphs (d)(7) and (d)(8) are revised to read as follows:
Sec. 273.9 Income and deductions.
* * * * *
(d) * * *
(7) Adjustment of standard deduction. Effective October 1, 1996,
for each household in the 48 contiguous States and the District of
Columbia, Alaska, Hawaii, Guam and the Virgin Islands of the United
States, the standard deduction shall be $134, $229, $189, $269, and
$118, respectively.
(8) Adjustment of shelter deduction. In the case of a household
that does not contain an elderly or disabled individual, in the 48
contiguous States and the District of Columbia, Alaska, Hawaii, Guam
and the Virgin Islands of the United States, the excess shelter expense
deduction shall not exceed
(i) For the period beginning August 22, 1996, and ending on
December 31, 1996, $247, $429, $353, $300, and $182 per month,
respectively;
(ii) For the period beginning on January 1, 1997, and ending on
September 30, 1998, $250, $434, $357, $304, and $184 per month,
respectively;
(iii) For the period beginning on October 1, 1998 and ending on
September 30, 2000, $275, $478, $393, $334, and $203 per month,
respectively; and
(iv) For the period beginning on October 1, 2000 and thereafter,
$300, $521, $429, $364, and $221 per month, respectively.
* * * * *
8. In Sec. 273.10 paragraph (e)(4)(ii) is revised to read as
follows.
Sec. 273.10 Determining household eligibility and benefit levels.
* * * * *
(e) Calculating net income and benefit levels. * * *
(4) Thrifty Food Plan (TFP) and Maximum Food Stamp Allotments. * *
*
(ii) Adjustment. Effective October 1, 1996, the maximum food stamp
allotments shall be based on 100% of the cost of the TFP as defined in
section 271.2 for the preceding June, rounded to the nearest lower
dollar increment, except that on October 1, 1996, the allotments may
not fall below those in effect on September 30, 1996.
* * * * *
Sec. 276.2 [Amended]
9. In Sec. 276.2, paragraph (e) is removed.
Dated: June 29, 1999.
Shirley R. Watkins,
Under Secretary, Food, Nutrition, and Consumer Services.
[FR Doc. 99-17445 Filed 7-9-99; 8:45 am]
BILLING CODE 3410-30-U
