This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

64581

Vol. 65, No. 210

Monday, October 30, 2000

DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Parts 271, 273 and 276

[Amendment No. 381]

RIN 0584–AC41

Food Stamp Program: NonDiscretionary Provisions of the

Personal Responsibility and Work

Opportunity Reconciliation Act of 1996

AGENCY: Food and Nutrition Service,

USDA.

ACTION: Final rule.

SUMMARY: This rule finalizes a proposed

rule published July 12, 1999, by

amending the Food Stamp Program

Regulations to implement certain nondiscretionary provisions of the Personal

Responsibility and Work Opportunity

Reconciliation Act of 1996 (PRWORA)

that affect the Food Stamp Program. The

regulatory changes include 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. In

accordance with the proposal, 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prescriptive, outdated, and redundant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:

Effective Date: This final rule is

effective December 29, 2000.

Implementation Dates:

1. The following amendments were to

be implemented August 22, 1996: The

definition of ‘‘Homeless individual’’ in

§ 271.2, § 273.1(b)(1)(ii), § 273.2(i)(3)(i)

and (i)(3)(ii).

2. The amendments to § 273.8(f)(1)

and § 273.10(e)(4)(ii) were to be

implemented October 1, 1996.

3. The amendment to § 273.9(d)(8)

was to be implemented January 1, 1997.

4. The amendments to

§ 273.1(b)(1)(iii) and § 273.8(e)(3)(i)(A),

are to be implemented no later than

March 1, 2001.

5. All remaining amendments are to

be implemented no later than January 1,

2001.

FOR FURTHER INFORMATION CONTACT:

Margaret Werts Batko, Certification

Policy Branch, Program Development

Division, Food and Nutrition Service,

USDA, 3101 Park Center Drive,

Alexandria, Virginia, 22302, (703) 305–

2520, or e-mail at

Margaret.Batko@fns.usda.gov. A

regulatory impact analysis has been

prepared for this rule. You may request

a copy of the analysis by contacting us

at the above address.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be

economically significant under

Executive Order 12866, and major under

Pub. L. 104–121, and has, therefore,

been reviewed by the Office of

Management and Budget (OMB).

Executive Order 13132

Federalism Summary Impact Statement

Executive Order 13132 requires

Federal agencies to consider the impact

of their regulatory actions on State and

local governments. FNS has considered

the impact on State agencies. This rule

deals almost entirely with changes

required by law, and implemented by

law in 1996. The changes primarily

affect food stamp recipients. The effects

on State agencies are minimal and, to

the extent that they affect them, relieve

them of administrative burdens. This

rule is intended to have preemptive

effect on any State law that conflicts

with its provisions or that would

otherwise impede its full

implementation. PRWORA required all

but one of the changes made in this rule,

and made most of them effective on

enactment and all of them effective by

the beginning of FY 1997. FNS is not

aware of any case where the one

discretionary provision of the rule

would preempt State law.

Prior Consultation With State Officials

Before drafting this rule, we received

input from State agencies at various

times. Because the FSP is a State

administered, federally funded program,

our regional offices have formal and

informal discussions with State and

local officials on an ongoing basis.

These discussions involve

implementation and policy issues. This

arrangement allows State agencies to

provide feedback that forms the basis for

many discretionary decisions in this

and other FSP rules. In addition, FNS

officials attend regional, national, and

professional conferences to discuss

issues and receive feedback from State

officials at all levels. Lastly, the

comments on the proposed rule from

State officials were carefully considered

in drafting this final rule.

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 Consumer 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 record keeping

requirements subject to approval by

OMB under the Paperwork Reduction

Act of 1995 (44 U.S.C. 3507).

Executive Order 12988

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This final 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 final rule is not

intended to have retroactive effect

unless so specified in the ‘‘Dates’’

paragraph of this 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

64582 Federal Register / Vol. 65, No. 210 / Monday, October 30, 2000 / Rules and Regulations

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 nonquality control (QC) liabilities) or Part

283 (for rules related to QC liabilities);

(3) for retailers and wholesalers—

administrative procedures issued under

7 U.S.C. 2023 set out at 7 CFR 278.8 and

Part 279.

Unfunded Mandate Analysis

Title II of the Unfunded Mandate

Reform Act of 1995 (UMRA), Pub. L.

104–4, establishes requirements for

Federal agencies to assess the effects of

their regulatory actions on State, local,

and tribal governments and the private

sector. Under section 202 of the UMRA,

the Department generally must prepare

a written statement, including a costbenefit analysis, for proposed and final

rules with ‘‘Federal Mandates’’ that may

result in expenditures to State, local, or

tribal governments, in the aggregate, or

to the private sector, of $100 million or

more in any one year.

When such a statement is needed for

a rule, section 205 of the UMRA

generally requires the Department to

identify and consider a reasonable

number of regulatory alternatives and

adopt the least costly, more costeffective or least burdensome alternative

that achieves the objectives of the rule.

This rule contains no Federal

mandates (under the regulatory

provisions of Title II of the UMRA) that

impose costs on State, local, or tribal

governments or to the private sector of

$100 million or more in any one year.

Thus, this rule is not subject to the

requirements of sections 202 and 205 of

the UMRA.

Regulatory Impact Analysis

Need for Action

This action is needed to implement

several provisions of the Personal

Responsibility and Work Opportunity

Reconciliation Act of 1996, Pub. L. 104–

193. This rule removes the exception in

current rules 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;

changes the way the maximum

allotments are calculated by using 100%

of the Thrifty Food Plan instead of

103%; alters 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;

freezes the standard deduction in food

stamps for fiscal year 1997 and beyond

at $134; retains a cap on the excess

shelter expense deduction; freezes the

fair market value of vehicle exemption

at $4,650; freezes the minimum

allotment at $10 a month; increases the

number of days which States have to

provide expedited service from 5 to 7

calendar days; eliminates households

consisting entirely of homeless people

from those categories of households

entitled to receive expedited service;

and removes the State agency option to

exclude from unearned income up to

$50 monthly of title IV–D child support

payments.

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 final rule does not make any

economically significant changes to the

proposed rule. However, food stamp

participation has decreased more than

expected since we published the

proposed rule. Current estimates of

participation are about 20 percent less

than previous estimates. Accordingly,

total savings in food stamps issued from

this rule for the 5 years from fiscal year

1998 to 2002 are $9,039 million—down

from the previous estimate of $11,195

million.

Plain Language

We have written this final rule under

the plain language guidelines to make it

easier to read and clearer. We have

edited wording that we preserved from

the proposed rule to conform to those

guidelines, using simpler words and

phrases where appropriate, and

changing sentences from passive to

active voice. We did not change the

meaning of any of the language brought

from the proposed rule.

Background

The President signed the Personal

Responsibility and Work Opportunity

Reconciliation Act of 1996, Pub. L. 104–

193 (PRWORA) on August 22, 1996.

PRWORA contained several provisions

that amended the Food Stamp Act of

1977 (the Act), 7 U.S.C. 2011, et seq.,

but allowed us (the Food and Nutrition

Service of the Department of

Agriculture) no discretion in

implementing them. We published

proposed rules on July 12, 1999, in the

Federal Register at 64 FR 37454 to

implement those provisions. The

provisions:

• Require that a person 21 years old

or younger who lives with a parent be

considered part of the parent’s

household, even if married and living

with a spouse, living with a child, or

both;

• Set the maximum allotment at

100% of the Thrifty Food Plan, rather

than at 103%;

• Allow a person living in another

person’s house to be considered

homeless for only 90 days;

• Freeze the standard deduction at

$134;

• Retain the cap on the excess shelter

expense deduction;

• Freeze the exemption of the fair

market value of a vehicle as a household

asset at $4,650;

• Freeze the minimum allotment for

1- and 2-person households at $10;

• Increase from 5 to 7 the number of

days State agencies have to provide

expedited service;

• Eliminate households consisting

entirely of homeless persons from the

kinds of households automatically

allowed to receive expedited service;

and

• Remove the State agency option to

exclude up to $50 a month of the title

IV–D child support payments from

unearned income.

The period for comment on the

proposed rules ended September 10,

1999. We received comments on the

proposed rules from ten State agencies

and an advocacy group. (In addition, the

Acting General Counsel of a State

agency commented on our failure to

treat a number of discretionary

provisions of PRWORA in this

rulemaking. Those provisions will be

covered in other rules that are currently

in clearance or which have recently

been published. We will not deal with

them here.) In analyzing the comments

received, we will not address comments

on provisions that are required by the

law and on which we have no

discretion. A number of comments

supported our proposals. We will not

discuss those in detail here, either.

Finally, a number of the comments

concerned technical corrections for

inadvertent omissions. We have made

the corrections where appropriate, but

will not discuss the comments. For a

full understanding of the background of

the provisions in this rule see the

proposed rulemaking. In response to

those comments that need discussion,

and for ease of reading, we will discuss

each provision touched on by those

comments, and the comments, in the

order in which they appear in the Code

of Federal Regulations.

Definition of Parental Control:

Although not contemplated by

Federal Register / Vol. 65, No. 210 / Monday, October 30, 2000 / Rules and Regulations 64583

PRWORA, to provide the same

treatment for a child living with a nonparent adult that is provided for a child

living with a natural or adoptive parent

or stepparent, we proposed to change

the definition of parental control,

amending 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. A State agency commented that

under its State law a married person

under 18 has attained majority and no

other person is responsible for that

person. We have amended the language

of the final rule to accommodate such a

situation. Another State agency noted

our removal of the exception, and stated

its understanding that it could choose to

retain the old policy if it applied it

consistently across the State. This is

incorrect. Our view is that a child who

is under parental control must be a

member of the household that exercises

parental control, even if the child has

children of his or her own. However,

State agencies will have substantial

authority to determine parental control.

Reorganization of 7 CFR 273.1—

Household Concept: In the spirit of the

President’s Regulatory Reform Initiative,

we proposed to reorganize § 273.1

(which deals with the important

programmatic concept of ‘‘household’’),

with the exception of 7 CFR 273.1(d)

and (f), which we left unchanged. We

did not propose significant changes to

§ 273.1, as nearly every provision is set

forth in the Act and can be changed

only through legislative action.

However, we condensed several

sections into a single section, removing

unnecessary language and provisions

covered elsewhere in the regulations,

and providing State agency flexibility

where possible. The proposed rule set

out the entire suggested revised text for

the convenience of the reader.

Boarders: To ensure uniformity

among all States, we proposed to retain

in new paragraph (b)(3) the language

appearing in 7 CFR 273.1(c)(1), which

defines a boarder. Whether a person is

considered to be a boarder, and

whether, if deemed a boarder, a person

may participate in the Food Stamp

Program, is in part determined by

whether the person pays reasonable

compensation for lodging and meals. A

State agency, in its comments, asked

why not, in the interest of State

flexibility, allow States to define what

constitutes ‘‘reasonable’’ compensation.

However, the State agency did not give

any further reason to change the existing

regulation, and another State agency

noted that it had no objection to the

purely cosmetic change to the provision.

This provision as written is easy to

administer, equitable to clients, and

adaptable to each State’s automated

certification system. Moreover, it has

not been a problem for State agencies or

clients in the past. For these reasons,

and because the Thrifty Food Plan base

is a practicable way to determine

whether a person is paying reasonable

compensation in order to decide boarder

status, and was previously subject to

public comments, we do not think the

definition should be changed based on

a single comment in this rule.

An advocate organization commented

that we should make it clear that the

definition of a commercial boarding

house does not include group homes for

disabled, homeless shelters, or other

such entities that may be licensed under

the same State laws as commercial

boarding houses. Group homes for

disabled (group living arrangements),

for example, are defined in 7 CFR 271.2

as public or private nonprofit entities,

and proposed 7 CFR 273.1(b)(7)(vii)(E)

specified public or private nonprofit

homeless shelters. We have modified

the language of the rule to make it clear

that the entities excepted from the rule

barring residents of institutions must

not be confused with commercial

boarding houses.

When we combined 7 CFR 273.1(a)(2),

(b), (c)(1), (c)(3), and (e) in new

paragraph (b), we eliminated 7 CFR

273.1(c) of current regulations. We

added a new paragraph (c). There has

been some confusion among 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. The new paragraph (c)

specifically allows 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

states that any State policy adopted

under this provision must be applied

consistently throughout the State.

A State agency commented that the

‘‘Administrative Procedures Act’’

requires it to develop rules for any

options allowed by Food Stamp

Program regulations (we presume the

State agency was referring to its own

State Administrative Procedures Act,

since States are not subject to the

Federal Administrative Procedure Act, 5

U.S.C. 500, et seq.). It added that if

USDA cannot cover all living situations

by regulations, a State agency cannot be

expected to do so and ensure that they

are handled consistently throughout the

State. We recognize that it may be

difficult for States to spell out clear

policies in this area and ensure that they

are applied across the State, but we are

reluctant to impose such exacting rules

that States cannot adapt the rules to

local situations. We have, however,

added the words ‘‘fairly’’ and

‘‘equitably’’ to the rule to ensure that a

State agency’s policy must be not only

consistent, but also fair. Moreover, we

stand ready to work with State agencies

on a case-by-case basis to determine

whether individual cases fit a pattern

that should be applied across the State,

or are unique cases.

Strikers. We did not propose any

changes in 7 CFR 273.1(d), Head of

Household, and (f), Authorized

Representative, because we believe the

current regulations are appropriate. We

have redesignated the requirements in

current regulations at 7 CFR 273.1(g) for

determining the eligibility and benefits

of households containing members on

strike as paragraph (e), with minor

editorial changes for clarity. We

received no comments on our decisions

with regard to these provisions.

Application Processing—7 CFR 273.2

Expedited Service: Current

regulations at 7 CFR 273.2(i) provide for

expedited service to certain categories of

households with very low income and

resources, including households in

which all members are homeless. Prior

to PRWORA, section 11(e)(9) of the Act

(7 U.S.C. 2020(e)(9)) required that

benefits be provided not later than five

calendar days following a household’s

date of application for all eligible

households that were also eligible for

expedited service. Section 838 of

PRWORA amended section 11(e)(9) of

the Act by increasing the time that

States may take 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. We received

no comments on the proposal to

implement these changes, as outlined in

the proposed rule.

Accordingly, consistent with our

proposals, this rule amends 7 CFR

273.2(i)(3)(i) by striking ‘‘fifth’’ calendar

day and inserting ‘‘seventh’’. This rule

also amends 7 CFR 273.2(i)(3)(ii) by

striking ‘‘5 calendar days’’ and inserting

‘‘7 calendar days’’. In addition, the rule

removes 7 CFR 273.2(i)(1)(iii) which

provides that households in which all

64584 Federal Register / Vol. 65, No. 210 / Monday, October 30, 2000 / Rules and Regulations

members are homeless individuals are

entitled to expedited service and

redesignates (i)(1)(iv) as (i)(1)(iii).

Homeless individuals may continue to

qualify for expedited service under the

financial criteria set forth in 7 CFR

273.2(i).

Resource Eligibility Standards—7 CFR

273.8

Fair Market Value: Section 810 of

PRWORA amended section 5(g) of the

Act (7 U.S.C. 2014(g)) to provide that

any licensed vehicle that is not subject

to other exclusions and 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, must 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 amends 7 CFR 273.8 to include

the new resource exclusion level, which

was implemented October 1, 1996.

We proposed to modify the definition

of a vehicle that can be excluded from

a household’s assets because it is used

for income-producing purposes in the

current rules at 7 CFR 273.8(h)(1)(i)

(redesignated 273.8(e)(3)(i)(A)).

Examples of such vehicles 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

clients or 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-owned motor vehicle. The

current rule requires that the vehicle be

used primarily for producing income.

We proposed to remove the word

‘‘primarily’’ to ensure that State

agencies would not have to verify the

relative amount of mileage traveled for

income-producing purposes. Two State

agencies commented that our proposal

did not go far enough. They proposed

that we exclude any vehicle used to go

to work. Section 5(g)(1)(C) of the Act

does not allow us to change the rules to

that extent. Specifically, it excludes

from a household’s financial resources a

vehicle ‘‘used to produce earned

income.’’ This language allows us to

make the change we proposed, since a

vehicle used for deliveries is clearly

being used to produce earned income.

We do not believe that a reasonable

view of the clear language of the Act

allows us to exclude all vehicles used to

commute to work. Accordingly, this rule

amends 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.

A State agency commented that the

language on vehicles necessary to

transport a physically disabled

household member at § 273.8(e)(3)(i)(E)

seems somewhat contradictory because

it talks about special vehicles and

specially equipped vehicles being

considered necessary, but then goes on

to state that the vehicle need not have

special equipment. We agree. We have

removed the examples and have

simplified the provision, relying on the

basic statement that a vehicle necessary

to transport a physically disabled

household member is excluded.

Reorganization of 7 CFR 273.8

In the proposed rule, we took the

opportunity to reorganize 7 CFR 273.8

and to remove redundant or

unnecessary language. Section 5(g)(2) of

the Act requires that the Secretary

prescribe inclusions in, and exclusions

from, financial resources following the

regulations in force as of June 1, 1982.

The law provides an exception for the

regulations 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 were some provisions we were

able to change and some areas where we

could remove redundant or unnecessary

language. This rule revises 7 CFR

273.8(e), (g), (h), and (i), and removes (j).

We proposed to remove all the

provisions from paragraph (h) and

transfer some of them to (e) and the

others to (g). We have taken the list of

vehicles excluded from resource

consideration currently contained in

paragraphs (h)(1)(i)–(v) and (h)(2) and

incorporated it into 7 CFR 273.8(e)(3).

We rewrote the remaining provisions of

paragraphs (h)(3), (h)(4) and (h)(5)

concerning the treatment of nonexcluded vehicles and combined them

with the provisions in paragraph (g) to

improve readability. As a result of

transferring the text of paragraph (h),

that paragraph no longer exists, and we

have redesignated paragraph (i) as

paragraph (h). We have made a

conforming amendment to paragraphs

(e)(16) and (e)(18) to note the relocation

of the vehicle exclusion provisions. We

also, in the proposed rule, removed the

current 7 CFR 273.8(j), which provides

that the resources of certain nonhousehold members must be treated in

accordance with 7 CFR 273.11. We

believed the reference was unnecessary.

After reviewing comments, and

reconsidering the rule, we have decided

to retain the reference as a useful guide

to policy.

In keeping with the principles of the

President’s Regulatory Reform Initiative

of increasing State flexibility, this 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 have decided 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.

We proposed also to 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. We proposed 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 through the

regulatory amendment process often

results in incomplete or obsolete

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 to

continue to notify State agencies

through agency memoranda when such

laws are enacted. We received no

comments on this provision (other than

one urging us to inform State agencies

promptly in writing of all exclusions,

which we currently do). Therefore, we

are amending the rule accordingly.

Income and Deductions—7 CFR 273.9

Annual adjustments of gross and net

income standards, and maximum

allotments. FNS currently publishes

Notices in the Federal Register every

year to announce the amounts of the

monthly gross and net income eligibility

standards, and of the maximum

allotments, for the contiguous 48 States

and the District of Columbia, Alaska,

Hawaii, Guam and the U.S. Virgin

Islands. This process is cumbersome.

The regulatory clearance process

precludes publishing the numbers in

time for State agencies to use them.

Therefore, we send the numbers to the

State agencies by memorandum—

customarily in August, so the State

agencies can program their computers in

time for the new numbers to take effect

on the October 1 deadline each year. We

have started posting the new numbers

on the FNS web site shortly after we

Federal Register / Vol. 65, No. 210 / Monday, October 30, 2000 / Rules and Regulations 64585

officially notify State agencies of them.

This accomplishes the same thing as

publishing Notices in the Federal

Register. And it does it on time, and

more economically. Therefore, we will

no longer publish these numbers in

Federal Register Notices. You can find

them on our web site at

www.fns.usda.gov/fsp. We are making a

technical change to delete references to

publication of these numbers in Federal

Register Notices from our rules.

Income exclusions: Current

regulations at 7 CFR 273.9(c)(1)(i)

prescribe whether to exclude from

income a number of kinds of public

assistance (PA) vendor payments

(payments made by a third party on

behalf of a household). A commenter

pointed out that a number of State

agencies are now using Temporary

Assistance for Needy Families (TANF)

funds to supplement housing assistance

from the Department of Housing and

Urban Development (HUD), and are

channeling those payments through

State or local housing authorities.

Section 5(k)(2)(D) of the Act, 7 U.S.C.

2014(k)(2)(D), requires us to exclude

such payments from income. The

commenter inferred that we had

overlooked this requirement of the Act

in a previous revision of the rules. Since

the Act requires us to exclude this new

category of TANF-funded vendor

payments from income, we are making

a technical correction to the rules at 7

CFR 273.9(c)(1)(i) to make this

requirement clear. (We received the

comment after the end of the comment

period, but we believe it is important to

correct the rule in any case.)

Standard Deduction: Current

regulations at 7 CFR 273.9(d)(8) provide

that, effective October 1, 1987, and each

October 1 thereafter, the standard

deduction from gross income must be

adjusted to reflect changes in the CPI–

U for items other than food for the

twelve months ending the preceding

June 30. Section 809 of PRWORA

amended section 5(e) of the Act to

provide that the Secretary must allow

and maintain the 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. In effect, PRWORA

eliminated the annual adjustment to the

various standard deductions. This rule

amends the regulations at 7 CFR

273.9(d)(1) accordingly.

Excess Shelter Expense Deduction:

Section 809 of PRWORA amended

section 5(e) of the Act to change the

excess shelter limit. Section 5(e), 7

U.S.C. 2014(e), now provides that a

household is 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

and the District of Columbia, Alaska,

Hawaii, Guam and the Virgin Islands of

the United States, the excess shelter

expense deduction must 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 final rule makes corresponding

changes to the regulations at 7 CFR

273.9(d)(8).

Determining Household Eligibility and

Benefit Levels—7 CFR 273.10

Maximum Allotments: Section 804 of

PRWORA amended section 3(o) of the

Act (7 U.S.C. 2012(o)) by providing that

on October 1, 1996, and each October 1

thereafter, the Department must 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

Secretary was not allowed to reduce the

cost of the maximum allotment in effect

on September 30, 1996.

Accordingly, this final rule amends 7

CFR 273.10(e)(4)(ii) to provide that

effective October 1, 1996, the maximum

food stamp allotments must 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, we are removing 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: Section 101 of PRWORA block

granted this program to the States and

renamed it the Temporary Assistance

for Needy Families (TANF) program.

Therefore, the terms ‘‘Aid to Families

With Dependent Children’’ and its

acronym, ‘‘AFDC’’, are obsolete. Section

109 of PRWORA made conforming

amendments to the Act by replacing the

obsolete terms with a reference to

assistance under a State program funded

under part A of title IV of the Social

Security Act, the provision that

authorizes TANF.

Accordingly, this rule amends

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 the words ‘‘Aid to Families

with Dependent Children (AFDC)’’ with

‘‘Temporary Assistance for Needy

Families (TANF)’’.

Child support payments: As required

by section 5 of the Act prior to

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. Section

109 of PRWORA amended section 5 of

the Act by removing this exclusion. This

rule removes 7 CFR 273.9(c)(12) and

renumbers (c)(13) through (c)(17)

accordingly.

As required by section 5 of the Act

prior to PRWORA, current regulations at

7 CFR 276.2(e)(1) provide that the State

agency must pay FNS for the increased

dollar value of coupon allotments

resulting from providing households

with an income exclusion for child

support payments as described in

§ 273.9(c)(12). Section 109 of PRWORA

amended section 5 of the Act by

removing the payback. Accordingly, this

rule removes 7 CFR 276.2(e) in its

entirety and removes the last two

sentences of paragraph (2).

Implementation

As stated in the preamble to the

proposed rules, we instructed State

agencies through agency directive to

implement the provisions of PRWORA

without waiting for formal regulations.

The amendments to the definition of

‘‘Homeless individual’’ in § 271.2, and

the amendments to § 273.1(b)(1)(ii) and

§ 273.2(i)(3)(i) and (i)(3)(ii) were to be

implemented August 22, 1996. The

amendments to § 273.8(f)(1) and

§ 273.10(e)(4)(ii) were to be

implemented October 1, 1996. The

64586 Federal Register / Vol. 65, No. 210 / Monday, October 30, 2000 / Rules and Regulations

amendment to § 273.9(d)(8) was to be

implemented January 1, 1997. The

remaining amendments in this rule,

with two exceptions, must be

implemented no later than January 1,

2001. The amendments to

§ 273.1(b)(1)(iii), and § 273.8(e)(3)(i)(A),

must be implemented no later than

March 1, 2001. After implementation,

State agencies must 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 must be

restored, as appropriate, in accordance

with the Food Stamp Act.

Quality Control. Variances resulting

from implementation of the provisions

of this final rule will be excluded from

error analysis for 120 days from the

required implementation date. State

agencies that implement the provisions

before the required implementation date

must notify the appropriate FNS

regional office before implementing that

they wish the variance exclusion period

to begin with the actual

implementation, as provided in 7 CFR

275.12(d)(2)(vii)(A). The exclusionary

period will begin with the required

implementation date, if the State agency

does not notify the appropriate regional

office.

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

record keeping requirements, Social

Security, Students.

7 CFR Part 276

Administrative practice and

procedure, Food stamps, Reporting and

record keeping requirements.

Accordingly, 7 CFR chapter II,

subchapter C, and parts 271, 273, and

276 are amended as follows:

SUBCHAPTER C—FOOD STAMP AND

FOOD DISTRIBUTION PROGRAM

1. In Subchapter C:

a. Remove the words ‘‘Aid to Families

with Dependent Children’’ wherever

they appear and add the words

‘‘Temporary Assistance for Needy

Families’’ in their place.

b. Remove the word ‘‘AFDC’’

wherever it appears and add ‘‘TANF’’ in

its place.

c. Remove the words ‘‘Aid to Families

with Dependent Children (AFDC)’’

wherever they appear, and add the

words ‘‘Temporary Assistance for Needy

Families (TANF)’’ in their place.

2. The authority citation for parts 271,

273, and 276 continues to read as

follows:

Authority: 7 U.S.C. 2011–2036.

PART 271—GENERAL INFORMATION

AND DEFINITIONS

§ 271.2 [Amended]

3. In § 271.2:

a. Amend paragraph (3) of the

definition of ‘‘Homeless individual’’ by

adding the words ‘‘for not more than 90

days’’ after the word ‘‘accommodation’’.

b. Amend the definition of ‘‘Minimum

benefit’’ by removing all text after the

word ‘‘benefit’’ in the second sentence

and adding in its place ‘‘shall be $10.’’

c. Remove the definition of ‘‘Spouse’’.

PART 272—REQUIREMENTS FOR

PARTICIPATING STATE AGENCIES

4. In § 272.1, add paragraph (g)(157) to

read as follows:

§ 272.1 General terms and conditions.

* * * * *

(g) Implementation. ***

(157) Amendment No. 381. The

provisions of Amendment 381 are

implemented as follows:

(i) The definition of ‘‘Homeless

individual’’ in § 271.2, and the

amendments to § 273.1(b)(1)(ii),

§ 273.2(i)(3)(i) and (i)(3)(ii) were to be

implemented August 22, 1996;

(ii) The amendments to § 273.8(f)(1)

and § 273.10(e)(4)(ii) were to be

implemented October 1, 1996;

(iii) The amendment to § 273.9(d)(8)

was to be implemented January 1, 1997;

(iv) The amendments to

§ 273.1(b)(1)(iii) and § 273.8(e)(3)(i)(A)

must be implemented no later than

March 1, 2001; and

(v) All remaining amendments must

be implemented no later than January 1,

2001.

* * * * *

PART 273—CERTIFICATION OF

ELIGIBLE HOUSEHOLDS

5. In § 273.1, remove paragraph (g),

and revise paragraphs (a), (b), (c) and (e)

to read as follows:

§ 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 must 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 person 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 must 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, unless State law defines

such a person as an adult.

(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 must 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 to offer meals

and lodging for compensation. It does

not include any of the entities listed in

paragraph (b)(7)(vii) of this section. In

project areas without licensing

requirements, a commercial boarding

house is a commercial establishment

that offers meals and lodging for

compensation with the intent of making

a profit.

Federal Register / Vol. 65, No. 210 / Monday, October 30, 2000 / Rules and Regulations 64587

(ii) All other individuals or groups of

individuals paying a reasonable amount

for meals or meals and lodging must 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

services. An individual paying less than

a reasonable amount for board must not

be considered a boarder but must be

considered, along with a spouse or

children living with him or her, 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’’

must 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’’ must

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 must not be considered

to be residents of an institution as

outlined in 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 must

be considered to be boarders. They

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 must not be considered

roomers.

(6) Live-in attendants. A live-in

attendant may participate as a separate

household. Persons described in

paragraph (b)(1) of this section must 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 § 273.4 and § 273.5,

respectively;

(ii) SSI recipients in ‘‘cash-out’’ States

as specified in § 273.20;

(iii) Individuals disqualified for

noncompliance with the work

requirements of § 273.7;

(iv) Individuals against whom a

sanction was imposed for failure to

comply with a workfare requirement as

specified in § 273.22;

(v) Individuals disqualified for failure

to provide an SSN as specified in

§ 273.6;

(vi) Individuals disqualified for an

intentional Program violation as

specified in § 273.16; and

(vii) Residents of an institution, with

some exceptions. Individuals must 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

participate in the Program and must be

treated as separate households from the

others with whom they reside, subject 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 and reside at a

facility or treatment center for the

purpose of regular participation in a

drug or alcohol treatment and

rehabilitation program. This includes

the children but not the spouses of such

persons who live with them at the

treatment center or facility;

(C) Individuals who are disabled or

blind and 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 fairly,

equitably and 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 before the strike and is otherwise

eligible at the time of application. A

striker must be anyone involved in a

strike or concerted stoppage of work by

employees (including a stoppage by

reason of the expiration of a collectivebargaining agreement) and any

concerted slowdown or other concerted

interruption of operations by

employees. Any employee affected by a

lockout, however, must not be deemed

to be a striker. Further, an individual

who goes on strike but is exempt from

work registration under § 273.7(b) the

day before the strike, other than those

exempt solely on the grounds that they

are employed, must not be deemed to be

a striker. Also, persons such as truck

drivers who cannot do their jobs

because the strike has left them with

nothing to deliver, and employees who

are not part of the bargaining unit and

do not want to cross the picket line for

fear of personal injury or death, must

not be deemed to be strikers.

(1) Pre-strike eligibility must 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 must 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 nonstriking members during the month of

application. If the household is eligible,

the higher income figure must also be

used in determining the household’s

benefits.

* * * * *

§ 273.2 [Amended]

6. In § 273.2:

a. Remove paragraph (i)(1)(iii).

b. Redesignate paragraph (i)(1) (iv) as

paragraph (i)(1)(iii).

c. Amend paragraph (i)(3)(i) by

removing the word ‘‘fifth’’ wherever it

appears and adding the word ‘‘seventh’’

in its place.

d. Amend paragraph (i)(3)(ii) by

removing the words ‘‘5 calendar days’’

and adding the words ‘‘7 calendar days’’

in its place.

§ 273.8 [Amended]

7. In § 273.8:

a. Amend paragraph (c)(2) by

removing the regulatory reference to

‘‘paragraph (h)’’ and adding in its place

a regulatory reference to ‘‘paragraph (f)’’.

64588 Federal Register / Vol. 65, No. 210 / Monday, October 30, 2000 / Rules and Regulations

b. Revise paragraph (e)(3).

c. Amend paragraph (e)(11) by

removing the second sentence of the

introductory text and by removing

paragraphs (e)(11)(i) through (e)(11)(ix).

d. Amend paragraph (e)(16) 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)(C)’’,

respectively.

e. Amend paragraph (e)(18) by

removing the regulatory reference to

‘‘paragraph (h)’’ and adding in its place

a regulatory reference to ‘‘paragraph (f)’’.

f. Redesignate paragraphs (g) and (f) as

paragraphs (f) and (g), respectively, and

revise newly redesignated paragraph (f).

g. Remove paragraph (h) and

redesignate paragraphs (i) and (j) as

paragraphs (h) and (i) and revise newly

redesignated paragraph (i).

The revisions read as follows:

§ 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 clients or

customers, or required by the terms of

employment. Licensed vehicles that

have previously been used by a selfemployed household member engaged

in farming but are no longer used in

farming because the household member

has terminated his/her self-employment

from farming must 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

physically disabled ineligible alien or

physically disabled 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). 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 the

transported fuel or water is anticipated

to be the primary source of fuel or water

for the household during the

certification period. Households must

receive this resource exclusion without

having to meet any additional tests

concerning the nature, capabilities, or

other uses of the vehicle. Households

must not be required to furnish

documentation, as mandated by

§ 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 § 273.2(f)(4).

(ii) On those Indian reservations that

do not require vehicles driven by tribal

members to be licensed, such vehicles

must be treated as licensed vehicles for

the purpose of this exclusion.

(iii) The exclusions in paragraphs

(e)(3)(i)(A) through (e)(3)(i)(C) 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

a fishing boat is frozen in and cannot be

used.

* * * * *

(f) Determining the value of nonexcluded vehicles. (1) The State agency

must:

(i) Individually evaluate the fair

market value of each licensed vehicle

that is not excluded under paragraph

(e)(3) of this section;

(ii) Count in full toward the

household’s resource level, regardless of

any encumbrances on the vehicle, that

portion of the fair market value that

exceeds $4,650 beginning October 1,

1996;

(iii) Evaluate such licensed vehicles

as well as all unlicensed vehicles for

their equity value (fair market value less

encumbrances), unless specifically

exempt from the equity value test; and

(iv) Count as a resource only the

greater of the two amounts 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.

(2) Only the following vehicles are

exempt from the equity value test

outlined in paragraph (f)(1)(iii) of this

section:

(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 (or an

ineligible alien or disqualified

household member whose resources are

considered available to the household)

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 § 273.7.

(3) State agencies will be responsible

for establishing methodologies for

determining the fair market value of

vehicles. In establishing such

methodologies, the State agency must

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. Any household that

claims that the State agency’s

determination of the value of its

vehicle(s) is not accurate must be given

the opportunity to acquire verification

of the true value of the vehicle from a

reliable source.

* * * * *

(i) Resources of non-household

members.

(1) The resources of non-household

members, as defined in § 273.1(b)(7)(i)

and (ii), must be handled as outlined in

§ 273.11(d).

(2) The resources of non-household

members, as defined in § 273.1(b)(7)(iii)

through (vi), must be handled as

outlined in § 273.11(c) and (d), as

appropriate.

8. In § 273.9:

a. Revise paragraph (a)(4).

b. Redesignate paragraph (c)(1)(i)(F) as

paragraph (c)(1)(i)(G), and add a new

paragraph (c)(1)(i)(F).

c. Remove paragraph (c)(12) and

redesignate paragraphs (c)(13), (c)(14),

(c)(15), (c)(16) and (c)(17) as paragraphs

(c)(12), (c)(13), (c)(14), (c)(15) and (c)(16)

respectively.

d. Revise paragraph (d)(1), remove

paragraph (d)(8), and redesignate

paragraph (d)(9) as paragraph (d)(8).

e. Revise newly redesignated

paragraph (d)(8).

The revisions and addition read as

follows:

§ 273.9 Income and deductions.

(a) * * *

(4) The monthly gross and net income

eligibility standards for all areas will be

prescribed in tables posted on the FNS

web site, at www.fns.usda.gov/fsp.

* * * * *

(c) * * *

(1) * * *

(i) * * *

Federal Register / Vol. 65, No. 210 / Monday, October 30, 2000 / Rules and Regulations 64589

(F) Housing assistance payments

made through a State or local housing

authority;

* * * * *

(d) * * *

(1) 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 must 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 must 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.

* * * * *

9. In § 273.10:

a. Amend the last sentence of

paragraph (e)(4)(i) by removing the

words ‘‘a General Notice published in

the Federal Register’’ and adding in

their place the words ‘‘a table posted on

the FNS web site, at www.fns.usda.gov/

fsp.’’

b. Revise paragraph (e)(4)(ii) to read as

follows:

§ 273.10 Determining household eligibility

and benefit levels.

* * * * *

(e) * * *

(4) * * *

(ii) Adjustment. Effective October 1,

1996, the maximum food stamp

allotments must be based on 100% of

the cost of the TFP as defined in § 271.2

of this chapter 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.

* * * * *

§ 276.2 [Amended]

10. Remove the last two sentences of

paragraph (a) and paragraph (e) in its

entirety in § 276.2.

Dated: October 13, 2000.

Shirley R. Watkins,

Under Secretary, Food, Nutrition, and

Consumer Services.

[FR Doc. 00–27483 Filed 10–27–00; 8:45 am]

BILLING CODE 3410–30–U

DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

Commodity Credit Corporation

7 CFR Part 1464

RIN 0560–AF86

2000 Marketing Quotas and Price

Support Levels for Fire-Cured (Type

21), Fire-Cured (Types 22–23), Dark

Air-Cured (Types 35–36), Virginia SunCured (Type 37), and Cigar-Filler and

Binder (Types 42–44 and 53–55)

Tobacco

AGENCIES: Farm Service Agency and

Commodity Credit Corporation, USDA.

ACTION: Final rule.

SUMMARY: The purpose of this rule is to

codify the national marketing quotas

and price support levels for the 2000

crops for several kinds of tobacco

announced by press release on March 1,

2000.

Quotas are necessary to adjust the

production levels of certain tobaccos to

more fully reflect supply and demand

conditions, as provided in the 1938 Act.

EFFECTIVE DATE: March 1, 2000.

FOR FURTHER INFORMATION CONTACT:

Robert L. Tarczy, Tobacco and Peanuts

Division, FSA, USDA, STOP 0514, 1400

Independence Avenue, SW,

Washington, DC 20250–0514, telephone

202–720–5346, e-mail address Robert

Tarczy@wdc.fsa.usda. Copies of the

cost-benefit assessment prepared for this

rule can be obtained from Mr. Tarczy.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be

significant and was reviewed by OMB

under Executive Order 12866.

Federal Assistance Program

The title and number of the Federal

Assistance Program, as found in the

Catalog of Federal Domestic Assistance,

to which this rule applies, are

Commodity Loans and Purchases—

10.051.

Executive Order 12988

This final rule has been reviewed in

accordance with Executive Order 12988.

The provisions of this rule do not

preempt State laws, are not retroactive,

and do not involve administrative

appeals.

Regulatory Flexibility Act

It has been determined that the

Regulatory Flexibility Act is not

applicable to this final rule since neither

the Farm Service Agency (FSA) nor the

Commodity Credit Corporation (CCC) is

required by 5 U.S.C. 553 or any other

provision of law to publish a notice of

proposed rulemaking with respect to the

subject of these determinations.

Paperwork Reduction Act

The amendments to 7 CFR parts 723

and 1464 set forth in this final rule do

not contain information collections that

require clearance by the Office of

Management and Budget under the

provisions of 44 U.S.C. chapter 35.

Unfunded Federal Mandates

This rule contains no Federal

mandates under the regulatory

provisions of Title II of the Unfunded

Mandate Reform Act of 1995 (UMRA),

for State, local, and tribal governments

or the private sector. Thus, this rule is

not subject to the requirements of

sections 202 and 205 of the UMRA.

Statutory Background

This final rule is issued pursuant to

the provisions of the 1938 Act and the

1949 Act.

In accordance with section 312 of the

1938 Act, for tobaccos other than fluecured tobacco and burley tobacco, the

Secretary of Agriculture is required to

proclaim not later than March 1 of any

marketing year (MY) a national

marketing quota for those tobaccos for

which marketing quotas have been

approved in the prior 3 years. A

referendum on quotas for each kind is

held every 3 years.

On March 1, 2000, the Secretary

determined and announced the national

marketing quotas and price support

levels for the 2000 crops of fire-cured

(type 21), fire-cured (types 22–23), dark

air-cured (types 35–36), Virginia suncured (type 37), and cigar-filler and

binder (types 42–44 and 53–55)

tobaccos. A number of related

determinations were made at the same

time which this final rule affirms. And,

because the 1999 MY was the last of 3

consecutive years of quota for fire-cured

(types 22–23) and dark air-cured (types