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.

Proposed Rules Federal Register

2703

Vol. 60, No. 7

Wednesday, January 11, 1995

DEPARTMENT OF AGRICULTURE

Food and Consumer Service

7 CFR Parts 273 and 274

[Amendment No. 364]

RIN 0584–AB60

Food Stamp Program: Simplification of

Program Rules

AGENCY: Food and Consumer Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This action proposes several

changes in Food Stamp Program rules

relating to social security numbers,

combined allotments, residency,

excluded resources, contract income,

self-employment expenses, certification

periods, the notice of adverse action,

recertification, and suspension under

retrospective budgeting. The changes

are being proposed as means to simplify

regulatory requirements and to increase

consistency with requirements of the

Aid to Families with Dependent

Children Program.

DATES: Comments must be received on

or before March 13, 1995 to be assured

of consideration.

ADDRESSES: Comments should be

submitted to Judith M. Seymour,

Eligibility and Certification Regulation

Section, Certification Policy Branch,

Program Development Division, Food

and Consumer Service, USDA, 3101

Park Center Drive, Alexandria, Virginia

22302. Comments may also be datafaxed

to the attention of Ms. Seymour at (703)

305–2454. All written comments will be

open for public inspection at the office

of the Food and Consumer 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 the proposed

rulemaking should be addressed to Ms.

Seymour at the above address or by

telephone at (703) 305–2496.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be

significant and was reviewed by the

Office of Management and Budget under

Executive order 12866.

Executive Order 12372

The Food Stamp Program is listed in

the Catalog of Federal Domestic

Assistance under No. 10.551. For the

reasons set forth in the final rule in 7

CFR 3015, Subpart V and related Notice

(48 FR 29115), 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). Ellen Haas, Under

Secretary for Food, Nutrition, and

Consumer Services, has certified that

this proposed rule does not have a

significant economic impact on a

substantial number of small entities.

State and local welfare agencies will be

the most affected to the extent that they

administer the Program.

Paperwork Reduction Act

Pursuant to 7 CFR 273.14, State

welfare agencies must recertify eligible

households whose certification periods

have expired. Households are required

to submit a recertification form. This

rule authorizes State agencies to use a

shortened or modified form of the

application used for initial certification.

The reporting and recordkeeping burden

associated with the application,

certification and continued eligibility of

food stamp applicants is approved by

the Office of Management and Budget

under OMB No. 0584–0064. OMB

approval of the recertification

procedures contained in § 273.14 of this

proposed action is not necessary

because the procedures do not add new

or additional requirements on State

agencies. In fact, the proposal gives

State agencies more flexibility in

recertifying households.

The public reporting burden for the

collection of information associated

with the application, certification and

continued eligibility of food stamp

applicants is estimated to average .1561

hours per response, including the time

for reviewing instructions, searching

existing data sources, gathering and

maintaining the data needed, and

completing and reviewing the collection

of information. Send comments

regarding this burden estimate or any

aspect of the information collection

requirements, including suggestions for

reducing the burden, to the Certification

Policy Branch, Program Development

Division (address above) and to the

Office of Information and Regulatory

Affairs, OMB, Room 3208, New

Executive Office Building, Washington,

DC 20503, Attn: Laura Oliven, Desk

Officer for FCS.

Executive Order 12778

This rule has been reviewed under

Executive Order 12778, Civil Justice

Reform. This rule is intended to have

preemptive effect with respect to any

State or local laws, regulations or

policies which conflict with its

provisions or which would otherwise

impede its full implementation. This

rule is not intended to have retroactive

effect unless so specified in the

‘‘Effective Date’’ paragraph of this

preamble. Prior to any judicial challenge

to the provisions of this rule or the

application of its provisions, all

applicable administrative procedures

must be exhausted. In the Food Stamp

Program the administrative procedures

are as follows: (1) for Program benefit

recipients—State administrative

procedures issued pursuant to 7 U.S.C.

2020(e)(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 284 (for rules related

to QC liabilities); (3) for Program

retailers and wholesalers—

administrative procedures issued

pursuant to 7 U.S.C. 2023 set out at 7

CFR 278.8.

Background

In this rule, the Department proposes

to revise Food Stamp Program

regulations in response to State agency

requests for waivers of Program

requirements and suggestions for

simplification of rules. In some cases,

we are proposing to amend the

regulations to incorporate guidance we

have already provided to State agencies.

In other instances, we are proposing to

modify Program rules to provide more
2704 Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules

consistency with requirements in the

Aid to Families with Dependent

Children (AFDC) program. Each

proposal is discussed in detail below.

Social Security Numbers for

Newborns—7 CFR 273.2(f)(1)(v), 7 CFR

273.6(b)

Current regulations at 7 CFR 273.6(a)

require an applicant household to

provide the State agency with the social

security number (SSN) of each

household member. A household

member who does not have an SSN

must apply for one before he or she can

be certified, unless there is good cause

for such failure as provided in 7 CFR

273.6(d). If a household member refuses

or fails without good cause to apply for

an SSN, the individual is ineligible to

participate.

Under a program instituted by the

Social Security Administration (SSA)

called ‘‘Enumeration at Birth (EAB),’’ 45

CFR 205.52, parents of a newborn child

may apply for an SSN for the child

when the child is born if this service is

available at the hospital. When

providing information for the child’s

birth certificate, the parent may request

that the child be assigned an SSN and

issued an SSN card as part of the birth

registration process. The State records

that information and subsequently

provides enumeration data to SSA in

Baltimore via magnetic tape. The time it

takes for States to transmit data to SSA

varies. However, SSA generally prints

and mails cards within 3 days of receipt

of the required data.

Most hospitals give parents Form

SSA–2853, ‘‘Message From Social

Security.’’ This receipt form, which

describes the EAB process and how long

it will take to receive a card, contains

the child’s name and is signed and

dated by a hospital official. It is

accepted by State agencies for welfare or

other public assistance purposes.

Current program regulations do not

address the EAB system. Food and

Consumer Service (FCS) regional offices

were informed in a memorandum dated

July 28, 1989, to instruct State agencies

that the Form SSA–2853 (OP4) could be

used as verification of application for an

SSN if the State agency has other

documentation connecting the baby

named on the form to the household.

We are proposing an amendment to 7

CFR 273.2(f)(1)(v) to reflect that a

completed Form SSA–2853 is

acceptable as proof of SSN application

for an infant. However, the proposed

amendment would give State agencies

and households more flexibility in this

area than the 1989 policy memo

granted.

In cases in which a household is

unable to provide or apply for an SSN

for a newborn baby immediately after

the baby’s birth, Section 273.6(d)

currently allows for good cause

exceptions to the SSN requirement. The

regulations allow the member without

an SSN to participate for one month in

addition to the month of application.

However, good cause does not include

delays due to illness, lack of

transportation or temporary absences of

that household member from the

household, and good cause must be

shown monthly in order for the

household member to continue to

participate.

Several State agencies have requested

and been granted waivers to allow

households up to four months following

the month in which a baby is born to

apply for an SSN for a newborn. In

justifying the need for a waiver, the

State agencies cited the difficulty some

households experience in obtaining a

certified copy of the birth certificate

needed to apply for an SSN.

To avoid a delay in adding a new

member to the household, we propose

to amend 7 CFR 273.6(b) to provide that,

in cases in which a household is unable

to provide or apply for an SSN for a

newborn baby immediately after the

baby’s birth, a household may provide

proof of application for an SSN for a

newborn infant at its next

recertification. If the household is

unable to provide an SSN or proof of

application at its next recertification,

the State agency shall determine if the

good cause provisions of 7 CFR 273.6(d)

are applicable.

Combined Allotments—7 CFR 273.2(i)

and 274.2(b)

Current regulations at 7 CFR

274.2(b)(3) provide for the issuance of a

combined allotment (prorated benefits

for the application month and full

benefits for the subsequent month) for

eligible households applying after the

15th of the month that qualify for

expedited service. The regulations

require that to receive the combined

allotment, a household must supply all

required verification within the 5-day

expedited service timeframe. If the

household does not supply all required

verification within the expedited service

timeframe, the household receives a

prorated amount for the initial month

issued within 5 days of application

(with waived verification, if necessary,

to meet the expedited timeframe) and a

second allotment for the subsequent

month issued after all necessary

verification has been obtained.

On March 31, 1992, the U.S. District

Court for the Northern District of

Georgia ruled against USDA in Johnson

v. USDA and Madigan. This case

concerned combined allotments for

expedited service. The Court agreed

with the plaintiffs that Section 8(c)(3)(B)

of the Food Stamp Act, 7 U.S.C.

2017(c)(3)(B), requires that if an eligible

household applies for food stamps after

the fifteenth of the month and is entitled

to expedited service, it must receive the

prorated initial month’s allotment and

the full allotment for the second month

within the expedited timeframe. In such

a case, any additional requirements

would be postponed until the end of the

second month.

In light of the District Court’s

decision, the Department chose to alter

national food stamp policy regarding

combined allotments. On June 16, 1993,

the Department issued a policy

memorandum to its regional Food

Stamp Program directors informing

them of the change in policy. The

regional directors were instructed to

inform the State agencies in their

regions of the change. The Department

is proposing in this rule to incorporate

the provisions of the policy

memorandum into the Food Stamp

Program’s regulations.

Currently, the regulations regarding

combined allotments are contained at 7

CFR 274.2(b) (2), (3), and (4). In order

to simplify these regulations, the

Department is proposing to move the

combined allotments requirements out

of 7 CFR 274.2(b) and into 7 CFR

273.2(i). In 7 CFR 274.2, the Department

is proposing to delete paragraphs (b) (2),

(3), and (4), and redesignate paragraphs

(b)(1), (c), (d), and (e) as paragraphs (b),

(d), (e), and (f), respectively. The

Department is proposing to add two

sentences to the end of redesignated

paragraph (b) which will contain the

requirements for issuing benefits to

expedited service households. The

Department is also proposing to add a

new paragraph (c) which will reference

the combined allotment regulations at 7

CFR 273.2(i). In 7 CFR 273.2(i)(4)(iii),

the Department is proposing to revise

paragraph (C), and to add two new

paragraphs, (D) and (E). 7 CFR

273.2(i)(4)(iii)(C) will include the

requirements currently contained at 7

CFR 274.2(b)(2), which concern

combined issuance for households

certified under normal processing

timeframes. 7 CFR 273.2(i)(4)(iii)(D)

shall contain the new requirement that

a household which applies after the

15th of the month and is processed

under expedited service procedures

shall be issued a combined allotment

consisting of prorated benefits for the

initial month of application and benefits

for the first full month of participation.
Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules 2705

In these cases, any unsatisfied

verification requirement would be

postponed until the end of the second

month. 7 CFR 273.2(i)(4)(iii)(E) shall

include the requirements currently

contained at 7 CFR 274.2(b)(4), which

concern households not entitled to

combined allotments.

The regulations at 7 CFR

273.2(i)(4)(iii)(B) currently require that

households which apply after the

fifteenth of the month and are assigned

certification periods of longer than one

month, must have all postponed

verification completed before it can be

issued its second month’s benefits.

Migrant households which apply after

the fifteenth of the month and are

assigned certification periods of longer

than one month must provide all

postponed verification from withinState sources before the second month’s

benefits can be issued, and must

provide all postponed verification from

out-of-State sources before the third

month’s benefits are issued. Because of

the change in policy regarding

combined allotments, eligible

households that are entitled to

expedited service and apply after the

15th of the month must now receive a

combined allotment which includes

their first and second month’s benefits.

Since these households will have

already received their second month’s

benefits, postponed verification must

now be completed prior to the third

month of benefits. As noted above, this

is current policy for migrants in regard

to completing out-of-State verification,

and the Department is proposing to

broaden the requirement to make it

mandatory for all households which

apply after the fifteenth of the month

and are assigned certification periods of

longer than one month. Therefore, the

Department is proposing to amend 7

CFR 273.2(i)(4)(iii)(B) accordingly. The

Department is also proposing to make a

conforming amendment to 7 CFR

273.10(a)(1)(iv), which contains a

similar verification requirement to that

currently contained in 7 CFR

273.2(i)(4)(iii)(B).

Current regulations at 7 CFR

273.2(i)(4)(iii)(B) require that when

households which apply for benefits

after the 15th of the month provide the

required postponed verification, the

State agency shall issue the second

month’s benefits within five working

days from receipt of the verification or

the first day of the second calendar

month, whichever is later. The

Department is proposing to remove this

requirement.

Current regulations at 7 CFR

273.2(i)(4)(iii)(C) require that

households which are eligible for

expedited service and that apply after

the fifteenth of the month must be

issued their second month’s benefits on

the first working day of the second

calendar month, not the day benefits

would normally be issued in a State

using staggered issuance. Because of the

potentially lengthy period of time

between issuance of the combined

allotment for the month of expedited

service and the first full month of

participation and issuance of a second

allotment for the third month of

participation if benefits are issued to the

household in a State using staggered

issuance, the Department has decided to

retain the issuance requirement of 7

CFR 273.2(i)(4)(iii)(C) for the third

month of benefits. Therefore, the

Department is proposing to add a new

paragraph 7 CFR 273.2(i)(4)(iii)(F)

which will require that in States with

staggered issuance, households be

issued their third allotment by the first

working day of the third calendar

month. For allotments in subsequent

months, State agencies will employ

their normal issuance mechanisms.

Current regulations at 7 CFR

273.2(i)(4)(i)(B) require that households

entitled to expedited service furnish a

social security number (SSN) for each

household member before the first full

month of participation. Households that

are unable to provide the required SSNs

or who do not have one prior to the first

full month of participation can only

participate if they satisfy the good cause

requirements with respect to SSNs

specified in 7 CFR 273.6(d).

Because of the change in combined

allotment policy, eligible households

that apply after the fifteenth of the

month and are entitled to expedited

service can receive their second month’s

benefits without having to furnish an

SSN. The Department is proposing to

revise the regulations at 7 CFR

273.2(i)(4)(i)(B) to require that

households entitled to expedited service

that apply after the fifteenth of the

month furnish an SSN for each person

prior to the third month of participation.

Current regulations at 7 CFR

273.2(i)(4)(iii) provide that households

that are certified for expedited service

and have postponed verification

requirements may be certified for either

the month of application or for longer

periods, at the State agency’s option. 7

CFR 273.2(i)(4)(iii)(A) currently

addresses verification requirements for

households that are certified only for

the month of application, and 7 CFR

273.2(i)(4)(iii)(B) currently addresses

verification requirements for

households that are certified for longer

than the month of application. Neither

section of the regulations addresses

verification requirements for

households that apply before the 15th of

the month. The Department is proposing

to eliminate this deficiency by

amending 7 CFR 273.2(i)(4)(iii)(A) to

address verification requirements for

households that apply on or before the

15th of the month and to amend 7 CFR

273.2(i)(4)(iii)(B) to address verification

requirements for households that apply

after the 15th of the month.

Current regulations at 7 CFR

273.2(i)(4)(iii) give State agencies the

option of requesting any household

eligible for expedited service which

applies after the 15th of the month to

submit a second application (at the time

of initial certification) if the household’s

verification requirements have been

postponed. Under current policy, that

second application would be denied for

the first month and acted on for the

second month. However, now that

expedited service households will be

receiving a combined allotment of their

first and second month’s benefits, under

our proposal, the second application

would be denied for both the first and

second months and acted on for the

third month. The Department believes

that current regulations do not allow for

this procedure and is, therefore,

proposing to amend the regulations at 7

CFR 273.10(a)(2)(i) to require that if a

household files an application for

recertification in any month in which it

is receiving food stamp benefits, the

State agency shall act on that

application for eligibility and benefit

purposes starting with the first month

after the current certification period

expires.

Residency—7 CFR 273.3

Current rules at 7 CFR 273.3 require

food stamp households to live in the

project area in which they apply unless

the State agency has made arrangements

for particular households to apply in

nearby specified project areas. A

proposed rule on Consistency for Food

Stamp Program, Aid to Families with

Dependent Children, and Adult

Assistance Programs (the Consistency

rule), published September 29, 1987, at

52 FR 36549, would have permitted

State agencies to allow Statewide

residency. The change was proposed to

increase consistency with requirements

of the AFDC and the Adult Assistance

programs under Titles I, X, XIV, and

XVI of the Social Security Act, which

require that applicants reside in the

State, but have no project area

requirement. Under that proposed rule,

State agencies would still have been

able to designate limited project areas

and restrict where a given household

could apply. That proposed rule was not
2706 Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules

published as a final rulemaking because

of the initiation of a broader AFDC/food

stamp consistency effort. However, in

the interest of Program simplification,

the Department has decided to

repropose the provision. We are

proposing, therefore, to amend 7 CFR

273.3 to give State agencies the option

of permitting households to live

anywhere in the State rather than in the

project area in which they apply for

benefits.

Comments received on this provision

of the proposed Consistency rule were

favorable. One commenter did ask,

however, that State agencies which

continue to require an applicant to

apply in a particular project area office

be required to forward the application

from an ‘‘incorrect’’ office to a ‘‘correct’’

receiving office. The regulations at 7

CFR 273.2(c)(2)(ii) provide that if a

household files an application at the

incorrect office within a project area, the

State agency shall forward the

application to the correct office the

same day. The application processing

timeframes begin when the correct

office receives the application. This

provision of 273.2(c)(2)(ii) would

continue to apply to State agencies

which require applicants to apply in a

particular project area. We are

proposing, however, to add a new

paragraph (iii) to 7 CFR 273.2(c)(2) to

address application processing

timeframes in States which opt to allow

Statewide residency. If a State agency

does not require that households apply

in specified project areas, the

application processing timeframes

would begin the day the application is

received by any office.

The Department is also proposing to

make a second amendment to 7 CFR

273.3 to clarify the requirements for

transferring food stamp cases between

project areas. Several commenters on

the Consistency rule requested this

clarification. The Department is

proposing to amend 7 CFR 273.3 to state

that when a household moves within a

State, the State agency may either

require the household to reapply in the

new project area or transfer the case

from the previous project area to the

new one and continue the household’s

certification without requiring a new

application. If the State agency chooses

to transfer the case, it must act on

changes in the household circumstances

resulting from the move in accordance

with 7 CFR 273.12(c) or 7 CFR 273.21.

The State agency must also ensure that

potential client abuse of case transfers

from project area to project area is

identifiable through the State agency’s

system of duplicate participation checks

required by 7 CFR 272.4(f). Finally, the

State agency must develop transfer

procedures to guarantee that the transfer

of a case from one project area to

another does not affect the household

adversely. These proposed requirements

are consistent with the requirements for

transferring cases between project areas

stated in Policy Interpretation Response

System (PIRS) Category 3 Policy Memo

3–91–03 issued December 17, 1990.

Funeral Agreements—7 CFR 273.8(e)(2)

Regulations at 7 CFR 273.8(e)(2)

exclude the value of one burial plot per

household member from resource

consideration. Questions have arisen

concerning the treatment of pre-paid

funeral agreements. In the Consistency

rule, we proposed to adopt a funeral

agreement policy similar to that of the

AFDC program. AFDC regulations at 45

CFR 233.20(a)(3)(i)(4) exclude from

resource consideration ‘‘bona fide

funeral agreements (as defined and

within limits specified in the State plan)

of up to a total of $1,500 of equity value

or a lower limit specified in the State

plan for each member of the assistance

unit.’’ We proposed in the Consistency

rule to amend 7 CFR 273.8(e) to allow

for an exemption from resource

consideration of up to $1,500 for bona

fide, pre-paid funeral agreements that

are accessible to the household. Funeral

agreements that are inaccessible to a

household were not affected by the

proposed rule, as they are excluded

from resource consideration under the

provisions of 7 CFR 273.8(e)(8).

There were 26 comments on the

funeral agreement provision in the

proposed rule. Many commenters

mistakenly thought that the proposed

provision would limit the exclusion of

inaccessible funeral agreements to a

maximum of $1,500. Others believed the

$1,500 limit on the exclusion of funds

in accessible funeral agreements should

be either raised or removed.

In this rule, the Department is again

proposing the funeral agreement

exclusion. We are retaining the $1,500

limit on the exclusion in order to

remain consistent with AFDC and to

lessen the likelihood of abuse of the

exemption. Therefore, the Department is

proposing to amend 7 CFR 273.8(e)(2) to

exclude as a resource the value of one

bona fide funeral agreement up to

$1,500 in equity value per household

member.

Determining Income—7 CFR

273.10(c)(2)

Current regulations at 7 CFR

273.10(c)(2)(iii) provide that households

receiving Federal assistance payments

(PA) or State general assistance (GA),

Supplemental Security Income (SSI), or

Old-Age, Survivors, and Disability

Insurance (OASDI) benefits on a

recurring monthly basis shall not have

their monthly income from these

sources varied merely because mailing

cycles may cause two payments to be

received in one month and none in the

next month.

There are other instances in which a

household may receive a

disproportionate share of a regular

stream of income in a particular month.

For example, an employer may issue

checks early because the normal payday

falls on a weekend or holiday. We have

granted waivers to several State agencies

to allow income such as State

employment checks received monthly

or twice a month to be counted in the

month the income is intended to cover

rather than the month in which it is

received.

We are proposing to amend 7 CFR

273.10(c)(2)(iii) to specify that income

received monthly or semimonthly

(twice a month, not every two weeks)

shall be counted in the month it is

intended to cover rather than the month

in which it is received when an extra

check is received in one month because

of changes in pay dates for reasons such

as weekends or holidays.

Contract Income—7 CFR 273.10(c)(3)(ii)

Section 5(f)(1)(A) of the Food Stamp

Act, 7 U.S.C. 2014(f)(1)(A), provides that

households which derive their annual

income (income intended to meet the

household’s needs for the whole year)

from contract or self-employment shall

have the income averaged over 12

months. Current regulations at

273.10(c)(3)(ii) implement this

provision of the Act, stating that

‘‘[h]ouseholds which, by contract or

self-employment, derive their annual

income in a period of time shorter than

1 year shall have that income averaged

over a 12-month period, provided the

income from the contract is not received

on an hourly or piecework basis.’’ The

regulations at 7 CFR 273.11(a)(1)(iii)

address how self-employment income

which is not a household’s annual

income and is intended to meet the

household’s needs for only part of the

year should be handled. 7 CFR

273.11(a)(1)(iii) provides that ‘‘[s]elfemployment income which is intended

to meet the household’s needs for only

part of the year shall be averaged over

the period of time the income is

intended to cover.’’ The regulations,

however, fail to specify how contract

income which is not a household’s

annual income and is intended to meet

the household’s needs for only part of

the year should be handled. This

omission in the regulations has been
Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules 2707

brought to our attention in several

waiver requests from State agencies. We

are taking action to rectify this

deficiency in the regulations by

proposing to amend 7 CFR

273.10(c)(3)(ii) to clarify that contract

income which is not the household’s

annual income and is not paid on an

hourly or piecework basis shall be

averaged over the period the income is

intended to cover.

Certification Periods—7 CFR 273.10(f)

In October 1991, the Department

solicited suggestions from State agencies

for simplifying the recertification

process. Several State agencies

recommended changes in the

requirements for certification periods to

allow more flexibility in aligning the

food stamp recertification and the PA/

GA redetermination in joint cases. We

have granted waivers to State agencies

to facilitate matching the PA/GA and

food stamp periods, including extension

of food stamp certification periods for

up to 16 months.

Alignment of the food stamp

recertification with the PA/GA

redetermination has long been a

problem for State agencies. Section 3(c)

of the Food Stamp Act, 7 U.S.C. 2012(c),

requires that the food stamp

certification period of a GA or PA

household coincide with the period for

which the household is certified for GA

or PA. However, because PA/GA and

Food Stamp Program processing

standards and the period for which

benefits must be provided are not the

same, it is often difficult to get the

certification periods for the programs to

coincide.

Some State agencies have requested

that the Food Stamp Program return to

the policy of open-ended certification

periods which existed prior to the Food

Stamp Act of 1977 so that the food

stamp portion of the case may be

recertified at the same time as the PA/

GA redetermination. Section 11(e)(4) of

the Act, 7 U.S.C. 2020(e)(4), however,

requires that households be assigned

definite certification periods and thus

precludes the use of open-ended

certification periods. It is also clear in

the legislative history of the Act that

Congress intended for households

participating in the Food Stamp

Program to be subject to distinct

certification periods. The House of

Representatives Report No. 464, 95th

Cong., 1st Sess. (August 10, 1977), states

on page 277 that ‘‘* * * in no event

should [the mandate that the food stamp

certification period be identical to the

PA eligibility period] lead to food stamp

eligibility for public assistance

recipients being a perpetual entitlement

as their assistance might be instead of

being subject to distinct entitlements

marked off by certification period[s]

* * *’’ We feel, therefore, that the

intent of the Act clearly prohibits us

from returning to open-ended

certification periods.

We are proposing, however, three

alternative means of assisting State

agencies in aligning PA/GA and food

stamp certification periods. First, we are

proposing to amend 7 CFR 273.10(f)(3)

to allow the following procedure: When

a household is certified for food stamp

eligibility prior to an initial

determination of eligibility for PA/GA,

the State agency shall assign the

household a food stamp certification

period consistent with the household’s

circumstances. When the PA/GA is

approved, the State agency shall

reevaluate the household’s food stamp

eligibility. The household will not be

required to submit a new application or

undergo another face-to-face interview.

If eligibility factors remain the same, the

food stamp certification period can be

extended up to an additional 12 months

to align the household’s food stamp

recertification with its PA/GA

redetermination. The State agency

would be required to send a notice

informing a household of any such

changes in its certification period. At

the end of the extended certification

period the household must be sent a

Notice of Expiration and must be

recertified before being determined

eligible for further food stamp

assistance, even if the PA/GA

redetermination has not been

completed. In the event that a

household’s PA/GA redetermination is

not completed at the end of the food

stamp certification period and, as a

result, the household’s food stamp and

PA/GA certification periods are no

longer aligned, the State agency may

employ the procedure described above

to once again align those certification

periods.

Our second proposal for aiding State

agencies in aligning PA/GA and food

stamp certification periods is to allow

State agencies to recertify a household

currently receiving food stamps when

the household comes into a State office

to report a change in circumstances for

PA/GA purposes. At that time, the State

agency would require the household to

fill out an application for food stamps

and to undergo a face-to-face interview.

If the household is determined eligible

to continue receiving food stamps, its

current certification period would end

and a new one would be assigned.

Our third proposal for aiding State

agencies in aligning PA/GA and food

stamp certification periods would allow

State agencies to assign indeterminate

certification periods to households

certified for both food stamps and PA/

GA. Under this proposal, a household’s

food stamp certification period would

be set to expire one month after the

household’s scheduled PA/GA

redetermination, so long as the period of

food stamp certification did not exceed

12 months. Therefore, if a food stamp

certification were set to expire in seven

months, that being the month after the

month the PA redetermination was due,

but the PA redetermination was not

done on time, the food stamp

certification period could be postponed

up to an additional five months to align

food stamp recertification and PA/GA

redetermination. In the twelfth month,

the household would have to be

recertified for food stamp purposes,

even if the PA redetermination had not

yet been completed.

The Department is proposing to

amend 7 CFR 273.10(f)(3) to permit

State agencies to implement the three

above-described procedures.

Calculating Boarder Income—7 CFR

273.11(b)

Current rules at 7 CFR 273.11(b)

provide that State agencies must use the

maximum food stamp allotment as a

basis of establishing the cost of doing

business for income received from

boarders when the household does not

own a commercial boardinghouse.

Boarders are not included as members

of the household to which they are

paying room and board. The households

receiving the room and board payments

must include those payments as selfemployment income, but can exclude

that portion of the payments equal to

the cost of doing business. The rules

provide that the cost of doing business

is either (1) the maximum food stamp

allotment for a household size equal to

the number of boarders; or (2) the actual

documented cost of providing room and

meals, if that cost exceeds the maximum

allotment. The Department is proposing

to revise current regulations to provide

State agencies with an additional option

for calculating border income.

The Consistency rule included a

provision that would have required

State agencies to use, in place of the

maximum allotment method, a flat

percentage equal to 75 percent of the

boarder-generated income as the means

of establishing the cost of doing

business for income received from

boarders. The proposal allowed the

household to use actual expenses if it

could verify that its actual expenses

were higher than the flat percentage.

This is currently the policy of the AFDC
2708 Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules

program as indicated in 45 CFR

233.20(a)(6)(v)(B).

There were only a few comments

received on this proposal in the

Consistency rule. The majority opposed

the proposal, arguing that use of the

fixed percentage would further burden

households by requiring them to

document all their actual expenses or

face the possibility of overstating the

income they receive from boarders.

Several State agencies have obtained

waivers to allow use of a flat percentage

to calculate allowable costs of doing

business for households with boarders.

It is our understanding that other State

agencies prefer the maximum allotment

method.

In this rule, we are proposing to add

a new paragraph, 7 CFR

273.11(b)(1)(ii)(C), to give State agencies

the option of using actual costs, the

maximum allotment for a household

size equal to the number of boarders, a

flat amount, or a percentage of income

from boarders to determine the cost of

doing business of households with

boarders. Households must be given the

opportunity to claim actual costs. We

are not proposing a percentage limit at

this time. Current waivers specify 75

percent, 60 percent, or the limit used in

the State’s AFDC program. We are

seeking comments concerning an

appropriate percentage.

Day Care Providers—§ 273.11(b)(2)

The Department is also proposing to

allow households who are day care

providers to use a standard per

individual amount as a cost of doing

business. Under current regulations, at 7

CFR 273.11(a)(4)(i), households which

provide in-home day care can claim the

cost of meals fed to individuals in their

care as a cost of doing business,

provided they can document the cost of

each meal. Several State agencies have

obtained waivers to use a flat dollar

amount, such as $5 a day, or to use the

FCS Child and Adult Care Food

Program reimbursement rates, which are

updated annually to reflect the cost of

meals as specified in 7 CFR 26.4(g).

We believe use of a standard

reimbursement rate for the cost of

providing day care would eliminate the

burden on day care providers to

document itemized costs incurred for

producing the income and would

increase the benefits for households that

fail to adequately document business

costs. Use of a standard would also

decrease the amount of time needed to

process these self-employment cases

and reduce payment errors. Therefore,

we are proposing to amend 7 CFR

273.11(b) to add a new paragraph, (2),

to allow use of a standard amount for

determining the self-employment

expenses of households providing day

care. State agencies would be required

to inform households of their

opportunity to verify actual meal

expenses and use actual costs if higher

than the fixed amount. When

establishing a standard amount, State

agencies should take into account the

differences in cost for full-day and partday care. Households that are

reimbursed for the cost of meals fed to

individuals in their care, for example

through the FCS Child and Adult Care

Food Program, cannot claim the

standard but may claim actual expenses

that exceed the amount of their

reimbursement.

Exemption From Providing a Notice of

Adverse Action—7 CFR 273.13(b)

Current regulations at 7 CFR 273.13(a)

require State agencies to send a notice

of adverse action (NOAA) to a

household prior to any action to reduce

or terminate the household’s benefits,

except as provided in 7 CFR 273.13(b).

That section does not include an

exception to the NOAA requirements

when mail sent to a household is

returned with no known forwarding

address. The AFDC regulations at 45

CFR 205.10(a)(4)(ii) do not require a

notice of adverse action in this

situation. In the Consistency rule, the

Department proposed to add an

exemption from sending an NOAA if

agency mail is returned with no known

forwarding address. Since it is unlikely

that the Postal Service can deliver a

NOAA mailed to an address which is no

longer correct, it is reasonable to specify

in regulations that no notice is required

if delivery cannot be reasonably

expected.

Few comments were received on this

proposal and most were favorable.

Therefore, the Department is

reproposing the amendment to 7 CFR

273.13(b) to provide that no NOAA is

required if the household’s mail has

been returned with no known

forwarding address.

Recertification—7 CFR 273.14

Background. Over the years, the

Department has become aware, through

State agency waiver requests and other

means, of the need to simplify the food

stamp recertification process. The need

for simplification has become especially

important in this time of tight budgetary

constraints and of increased demand on

the time of State eligibility workers. In

this rule, the Department is proposing to

simplify recertification procedures in

several areas.

State agencies have requested more

flexibility in developing recertification

procedures. We understand the need of

State agencies to be able to adopt

procedures that are consistent with

those of other programs and which can

be administered in conjunction with

computerized systems. However, the

Department is limited in the extent to

which it can give State agencies more

flexibility because of the provisions of

the Food Stamp Act. There are two main

provisions in the Act that govern the

timeframes for recertification. Section

11(e)(4), 7 U.S.C. 2020(e)(4), provides

that each participating household must

receive a notice of expiration of its

certification prior to the start of the last

month of its certification period. That

section of the Act also provides that a

household which files an application no

later than 15 days prior to the end of the

certification period shall, if found to be

still eligible, receive its allotment no

later than one month after the receipt of

the last allotment. Section 11(e)(4)

allows modification of the timeframes

for monthly reporting households.

We are proposing changes to the

recertification process that will provide

State agencies with more flexibility and

at the same time retain the right of a

household to receive uninterrupted

benefits if it applies by the filing

deadline and meets interview and

verification requirements within the

required timeframes. In exchange for the

increased flexibility, State agencies

would be responsible for providing

households sufficient notice and time to

comply with application, interview, and

verification requirements. The proposed

changes are discussed below.

In accordance with § 273.14(a) of the

current regulations, households that

meet all eligibility requirements must

have their recertifications approved or

denied by the end of their current

certification period and, if recertified, be

provided uninterrupted benefits. The

regulations give State agencies two

options for handling the cases of

households who do not provide

verification or attend an interview as

required for recertification. The State

agency may either deny the household’s

application at the end of the current

certification period or within 30 days

after the date the application was filed.

State agencies also have the option of

establishing verification timeframes. A

household which does not meet all the

verification requirements within

required timeframes loses its right to

uninterrupted benefits but can receive

benefits within 30 days after the date

the application was filed. These

requirements are stated in 7 CFR 273.14

(c) and (d). State agencies have found

these procedures confusing and have

requested that they be simplified.
Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules 2709

In this rulemaking we are proposing

to reorganize the recertification section

in an attempt to provide a clearer

expression of the requirements. The

proposed revision of 7 CFR 273.14(a)

contains general introductory

statements regarding actions the

household and the State agency must

take to ensure that eligible households

receive uninterrupted benefits. We

propose to include in revised 7 CFR

273.14(b) requirements for the notice of

expiration, the recertification form, the

interview and verification. In revised 7

CFR 273.14(c), we propose to include

the filing deadlines for timely

applications for recertification. These

and other revisions are discussed below.

1. Recertification Process

a. Notice of expiration (NOE). Several

State agencies have requested that we

reduce the mandated content of the

NOE. Under current regulations at 7

CFR 273.14(b)(3), the following

information is required in the NOE:

(1) The date the current certification period

ends;

(2) The date by which the household must

file an application for recertification to

receive uninterrupted benefits;

(3) Notice that the household must appear

for an interview, which will be scheduled on

or after the date the application is timely

filed in order to receive uninterrupted

benefits;

(4) Notice that the household is responsible

for rescheduling a missed interview;

(5) Notice that the household must

complete the interview and provide all

required verification in order to receive

uninterrupted benefits;

(6) Notice of the number of days the

household has for submitting missing

verification;

(7) Notice of the household’s right to

request an application and have the State

agency accept an application as long as it is

signed and contains a legible name and

address;

(8) The address of the office where the

application must be filed;

(9) Notice of the consequences of failure to

comply with the notice of expiration;

(10) Notice of the household’s right to file

the application by mail or through an

authorized representative;

(11) Notice of the household’s right to

request a fair hearing; and

(12) Notice of the fact that any household

consisting only of Supplemental Security

Income (SSI) applicants or recipients is

entitled to apply for food stamp

recertification at an office of the Social

Security Administration.

We have reviewed the requirements

for the NOE and have determined that

none of the requirements in the current

rule can be eliminated because they are

required either by the provisions of the

Act or judicial orders. Therefore, we

have retained all of the current

recertification requirements in the

proposed revised section 273.14(b)(1).

b. Recertification form. In response to

our request for ideas for simplifying the

recertification process, several State

agencies suggested that we develop a

short recertification form to be used in

conjunction with current case file

information. Several State agencies have

requested and been granted waivers to

allow use of a modified application

form for recertification. The forms

developed by the State agencies do not

require households to provide

information which is already available

in the case file.

This rule proposes to revise 7 CFR

273.14(b)(2) to allow State agencies to

use a modified application form for

recertifying households. This form

could only be used for those households

which apply for recertification before

the end of their current certification

period. FCS does not plan to develop a

model recertification form, so

individual State agencies must devise

this form themselves. However, because

Section 11(e)(2) of the Act, 7 U.S.C.

2020(e)(2), requires that the Department

approve all deviations from the uniform

national food stamp application, all

State agency-designed recertification

applications must be approved by FCS

before the forms can be used.

To allow State agencies as much

flexibility as possible in the design of

their modified recertification forms, we

are not specifying the exact questions

that must be asked. The State agency

should design an application that suits

its own needs, whether it be a short

form on which the household notes

changes since its last certification, or a

computer printout of household

circumstances annotated by the

caseworker, or some other type of form.

Whichever type of form the State agency

chooses to use, it must be able to obtain

from that form, or have available in the

case record, all information concerning

household composition, income and

resources needed to redetermine

eligibility and the correct benefit

amount for the first month of the new

certification period. However, while we

are not specifying questions that must

be on the forms, we would require that

all recertification forms include the

information required by 7 CFR

273.2(b)(1) (i), (ii), (iii), (iv) and (v). This

information is required by Section

11(e)(2) of the Act, 7 U.S.C. 2020(e)(2),

and apprises applicants of their rights

and responsibilities under the Program.

The information regarding the Income

and Eligibility Verification System in 7

CFR 273.2(b)(2) may be provided on a

separate form.

c. Interviews. Under current

regulations, State agencies are required

to conduct face-to-face interviews with

households applying for recertification.

Several State agencies suggested that we

modify the requirement that all

households have face-to-face interviews.

Some State agencies suggested

eliminating the face-to-face interview

entirely or reserve the office interview

for those households that do not have

telephones. Other State agencies

indicated that case workers should be

allowed to decide on a case-by-case

basis which households should be

interviewed. Other suggestions included

eliminating the interview requirement

entirely for households that are not

error-prone, eliminating recertification

interviews unless there is questionable

information that cannot be resolved in

any other manner, and giving State

agencies the option of not interviewing

households receiving AFDC if they are

not due for an AFDC redetermination.

We consider the face-to-face interview

to be an important source of information

about household circumstances.

However, we have granted waivers on a

State-by-State basis to substitute a

telephone interview for the face-to-face

interview for households with very

stable circumstances, such as

households in which all members are

elderly or disabled and have no earned

income. In an effort to be responsive to

State agency requests for simplification

and flexibility, we are proposing to

revise 7 CFR 273.14(b)(3) to allow

telephone interviews in place of face-toface interviews at recertification for

some categories of households. We are

not allowing State agencies to substitute

telephone interviews for face-to-face

interviews on a case-by-case basis.

Section 11(e)(2), 7 U.S.C. 2020(e)(2),

currently provides for the waiver of the

face-to-face interview on a case-by-case

basis for those households for whom a

visit to the food stamp office would be

a hardship. We feel, however, that to

allow caseworkers the option of waiving

a face-to-face interview for any

household based only on that

caseworker’s personal determination

that a face-to-face interview is not

needed may compromise the right to

equal treatment guaranteed all food

stamp recipients under Section 11(c) of

the Act, 7 U.S.C. 2020(c).

We are proposing to revise 7 CFR

273.14(b)(3) to allow State agencies to

interview by telephone any household

that has no earned income and whose

members are all elderly or disabled. We

are also proposing to give State agencies

the option of conducting a face-to-face

interview only once a year with a food

stamp household that receives PA or
2710 Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules

GA. The interview could be conducted

at the same time the household is

scheduled for its PA or GA face-to-face

interview. At any other recertification

during that time period, the State

agency may choose to interview the

household by telephone. However, the

State agency would be required to grant

a face-to-face interview to any

household that requests one.

Several State agencies suggested that

group interviews or videotapes be used

whenever possible to cover areas of the

recertification process common to all

recipients. Current regulations do not

prohibit the use of group interviews for

informing households about the

Program and Program rights and

responsibilities. However, a certification

worker must obtain information about

specific household circumstances in a

setting which guarantees confidentiality

and privacy, as required by 7 CFR

273.2(e)(1).

d. Verification. Current regulations at

7 CFR 273.14(c)(3) give State agencies

the option of establishing timeframes for

submission of verification information.

To increase consistency with

procedures for initial applications and

provide sufficient time for households

to obtain the required verification

information, we are proposing to revise

7 CFR 273.14(b) to add a new paragraph

(4) to require State agencies to allow

households a minimum of 10 days in

which to satisfy verification

requirements.

Current regulations at 7 CFR

273.2(f)(8)(i) require State agencies to

verify at recertification a change in

income or actual utility expenses if the

source has changed or the amount has

changed by more than $25, and

previously unreported medical expenses

and total recurring medical expenses

which have changed by $25 or more. 7

CFR 273.2(f)(8)(i) also requires that State

agencies not verify income, total

medical expenses, or actual utility

expenses which are unchanged or have

changed by $25 or less, unless the

information is ‘‘incomplete, inaccurate,

inconsistent, or outdated.’’ Several State

agencies have requested that we

simplify verification requirements at

recertification by requiring them to only

reverify information that is

questionable, rather than information

that is ‘‘incomplete, inaccurate,

inconsistent or outdated.’’ The

Department does not see that there is

any substantive difference between the

terms ‘‘incomplete, inaccurate,

inconsistent or outdated’’ and the term

‘‘questionable.’’ Presumably, State

agency caseworkers would consider

questionable any information that is

incomplete, inaccurate, inconsistent, or

outdated. Therefore, if replacing the

words ‘‘incomplete, inaccurate,

inconsistent, or outdated’’ with the

word ‘‘questionable’’ will simplify

Program administration for State

agencies, we see no objection to doing

so. We are proposing, therefore, to

amend 7 CFR 273.2(f)(8)(i)(A) and (C),

and (ii) to replace the terms

‘‘incomplete, inaccurate, inconsistent or

outdated’’ with the term ‘‘questionable.’’

e. Filing deadline. Currently, 7 CFR

273.14(c)(1) provides that for monthly

reporting households the deadline for

filing an application for recertification is

the normal date for filing a monthly

report. Several State agencies have

requested that, for the purpose of

administrative efficiency and flexibility,

the Department make the filing deadline

for monthly reporters the 15th of the last

month of the household’s certification

period (recertification month), the same

as it is for nonmonthly reporting

households.

We are proposing to revise 7 CFR

273.14(c) to give State agencies the

option of making the filing deadline for

monthly reporters either the 15th of the

recertification month or the household’s

normal date for filing a monthly report.

2. Timely Processing

Current regulations at 7 CFR 273.14(d)

provide that the State agency shall act

to provide uninterrupted benefits to any

household determined eligible after the

household timely filed an application,

attended an interview, and submitted all

necessary verification information.

Action to approve or deny a

recertification application must be taken

by the end of the certification period if

the household has met all required

application procedures. Households

which are certified for one month or are

in the second month of a two-month

certification period must receive

benefits within 30 days of their last

issuance. Other households must

receive benefits in their normal issuance

cycle if they have met all processing

requirements. If verification

requirements are unsatisfied at the end

of the recertification month, the State

agency must provide benefits within

five working days after the household

supplies the missing verification

information. If the State agency is at

fault for delaying the household’s

benefits, it must provide benefits as

soon as the household is determined

eligible. Current regulations at 7 CFR

273.14(e) provide that eligible

households which have complied with

all requirements are entitled to restored

benefits if the State agency does not

provide benefits in the first month of the

new certification period.

7 CFR 273.14(f)(1) currently addresses

failure of the household to appear for an

interview or provide verification

information as required. 7 CFR

273.14(f)(2) provides requirements for

households that do not file a timely

application.

To clarify recertification requirements

that address a variety of situations that

may occur in application processing, we

are proposing to reorganize sections 7

CFR 273.14(d), (e), and (f) into two new

sections 7 CFR 273.14(d) and (e). New

section 7 CFR 273.14(d) would combine

all of the provisions of the previous

sections relating to timeframes for

providing benefits when all processing

deadlines are met. New section 7 CFR

273.14(e) would address situations in

which the household or the State agency

fail to meet processing deadlines.

3. Delayed Processing

We are proposing to include in new

section 273.14(e) requirements for

providing benefits when delays in

application processing occur. Section

273.14(e)(1) will address delays caused

by the State agency, and section

273.14(e)(2) will address delays caused

by the household.

We are also proposing a change in

provisions for handling the

recertification of households which do

not comply with the requirements for

interviews or verification. Under current

regulations at 7 CFR 273.14(a)(3), a State

agency may deny a household’s

application for recertification at the time

a household’s certification period

expires or within 30 days after the date

the application was filed as long as the

household has had adequate time to

satisfy verification requirements. Under

current regulations at 7 CFR

273.14(a)(2), a household that fails to

attend a scheduled interview or to

provide required verification

information within required timeframes

loses its right to uninterrupted benefits

but cannot be denied eligibility at that

time, unless the household fails to

cooperate or the household’s

certification period has elapsed.

To increase consistency with AFDC

procedures and provide maximum

flexibility to State agencies, we are

proposing to include in revised section

7 CFR 273.14(e) a provision to allow

State agencies the option of denying

eligibility to households as soon as a

failure to comply with the interview or

verification requirement occurs. The

State agency would be required to send

the household a denial notice informing

it that its application for recertification

has been denied. The notice would have

to contain the reason for the denial, the

action required to continue
Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules 2711

participation, the date by which it must

be accomplished, the consequences of

failure to comply, notification that the

household’s participation will be

reinstated if it complies within 30 days

after its application for recertification

was filed and is found eligible, and that

the household has a right to a fair

hearing. If the household subsequently

requests an interview or provides the

required verification information within

30 days of the date of its recertification

application and is found eligible, the

State agency must reinstate the

household. Under this option, benefits

must be provided within 30 days after

the application for recertification was

filed or within 10 days of the date the

household provided the required

verification information or completed

the interview, whichever is later.

Current regulations at 273.14(f)(2)

provide that any application not

submitted in a timely manner shall be

treated as an application for initial

certification, except for verification

requirements. If the household does not

submit a recertification form before its

certification period expires, the

household’s benefits for the first month

of the new certification period are

prorated in accordance with 7 CFR

273.10(a)(2). However, Section 13916 of

the 1993 Leland Act amended Section

8(c)(2)(B) of the Act, 7 U.S.C.

2017(c)(2)(B), to eliminate proration of

first month’s benefits if a household is

recertified for food stamps after a break

in participation of less than one month.

Therefore, if a household submits an

application for recertification after its

certification period has expired, but

before the end of the month after

expiration, the application is not

considered an initial application and

the household’s benefits for that first

month are not prorated. We are

proposing to include this new provision

in revised section 7 CFR 273.14(e)(2)(ii).

4. Expedited Service

Section 11(e)(2) of the Act, 7 U.S.C.

2020(e)(2), states that when a household

contacts a food stamp office to make a

request for food stamp assistance, it

shall be permitted to file an application

form. There is no distinction made in

the law between an application for

initial certification and an application

for recertification. Section 11(e)(9) of the

Act, 7 U.S.C. 2020(e)(9), requires State

agencies to provide coupons within five

days after the date of application to

destitute migrant or seasonal

farmworkers, households with gross

incomes less than $150 a month and

liquid resources that do not exceed

$100; homeless households; and

households whose combined gross

income and liquid resources are less

than their monthly rent, mortgage and

utilities. Since implementation of the

expedited service provision of the Act,

questions have arisen concerning

whether expedited service requirements

apply at recertification.

Nothing in the legislative history of

the Act gives any indication as to

whether Congress intended households

eligible for expedited service to receive

such service every time they are

certified for the Program, only at initial

certification, or when there has been a

break in benefits. We originally

interpreted the Act and regulations to

require that expedited service screening

requirements apply only at initial

certification. Since the law makes no

distinction between applications for

initial certification and recertification,

we have concluded that expedited

service provisions should apply to all

households at recertification. This

policy was prompted by the realization

that some households that move

between the last time they were certified

and the date of their required

recertification might not receive

uninterrupted benefits. We believe it

was the intent of Congress to provide

expedited service when a household

would not receive its next allotment by

its next normal issuance cycle.

Many State agencies have argued that

expedited service at recertification is

detrimental to recipient households

because it interferes with their normal

issuance cycle. Instead of receiving their

benefits at the usual time each month,

households recertified for expedited

service often receive their benefits for

the first month of the new certification

period much earlier than normal. The

next month they have to wait longer to

receive benefits. In addition, to obtain

expedited benefits, some households

have to pick up their coupons at their

local assistance office instead of having

them mailed, which is an inconvenience

to the household. We have determined

that because of the requirements of

Section 11(e)(2) of the Act, households

may not be asked to waive their right to

expedited service. Therefore, State

agencies are not allowed to mail

expedited issuance coupons, even at the

household’s request if such action

would result in failure to meet the fiveday requirement for delivery of benefits.

State agencies have also argued that

expediting issuance for households at

recertification leads to an increased

administrative burden. In some States,

more than 50 percent of participating

households now meet the criteria for

expedited service. This has placed a

tremendous burden on State agencies

experiencing severe budgetary

constraints, making it difficult for them

to meet the 30-day and 5-day

requirements for initial applications.

State agencies argue that applying

expedited screening requirements at

recertification only increases the

application processing problem without

providing a substantial benefit to most

households.

In light of the issues discussed above,

we have again reexamined our policy

and have concluded that not all

households must receive expedited

service at recertification. Section

11(e)(4) of the Act, 7 U.S.C. 2020(e)(4),

states that households that apply in a

timely fashion must receive their

benefits no later than one month after

the receipt of their last allotment. We

believe that this provision of the law,

which ensures that a household that

punctually applies for recertification

will continue to receive its benefits in

its normal issuance cycle, should take

precedence over the requirement for

expedited service.

We are proposing, therefore, to amend

the regulations by including a new

section, 7 CFR 273.14(f), which will

clarify that households which

punctually apply for recertification, or

who apply late but within the

certification period, are not entitled to

expedited service. However, households

which do not apply for recertification

until the month after their certification

period ends are entitled to expedited

service if they are otherwise eligible for

such service. A conforming amendment

to 7 CFR 273.2(i)(4)(iv) is also proposed.

Retrospective Suspension—7 CFR

273.21(n)

Current regulations at 7 CFR 273.21(n)

allow State agencies the option of

suspending issuance of benefits to a

household that becomes ineligible for

one month. State agencies that do not

choose suspension must terminate a

household’s certification when it

becomes ineligible, and the household

must reapply to reestablish its eligibility

for the Program. Current regulations at

7 CFR 273.21(o) provide that when a

household is suspended based on

prospective ineligibility, the State

agency shall not count any

noncontinuing circumstances which

caused the prospective ineligibility

when calculating the household’s

benefits retrospectively in a subsequent

month.

The need for suspension typically

occurs when a household paid weekly

(or biweekly) receives an extra check in

a month with five (or three) paydays.

Under current policy, State agencies

which opt to suspend rather than

terminate a household’s participation
2712 Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules

must anticipate prospectively which

month the household will be ineligible

and suspend the household’s

participation for that month. Many State

agencies have received waivers that

allow them to suspend the household

for the issuance month corresponding to

the budget month in which the

household receives the extra check. This

is the method used for suspension in the

AFDC program. In an effort to achieve

consistency between the AFDC and

Food Stamp Programs, we are proposing

to amend 7 CFR 273.21(n) to allow State

agencies the option of prospective or

retrospective suspension. The option to

suspend and the method of suspending

must be applied Statewide.

Implementation

The Department is proposing that the

provisions of this rulemaking must be

implemented no later than 180 days

after publication of the final rule. The

Department also proposes to allow

variances resulting from

implementation of the provisions of the

final rule to be excluded from error

analysis for 90 days from the required

implementation date, in accordance

with 7 CFR 275.12(d)(2)(vii).

List of Subjects

7 CFR Part 273

Administrative practice and

procedure, Aliens, Claims, Food

Stamps, Fraud, Grant programs—social

programs, Penalties, Records, Reporting

and recordkeeping requirements, Social

Security.

7 CFR Part 274

Administrative practice and

procedure, Food Stamps, Fraud, Grant

programs—social programs, Reporting

and recordkeeping requirements, State

liabilities.

Accordingly, 7 CFR parts 273 and 274

are proposed to be amended as follows:

1. The authority citation of parts 273

and 274 continues to read as follows:

Authority: 7 U.S.C. 2011–2032.

PART 273—CERTIFICATION OF

ELIGIBLE HOUSEHOLDS

2. In § 273.2:

a. A new paragraph (c)(2)(iii) is

added.

b. A new sentence is added to the end

of paragraph (f)(1)(v).

c. The last sentence of paragraph

(f)(8)(i)(A) is amended by removing the

words ‘‘incomplete, inaccurate,

inconsistent, or outdated’’ and adding in

their place the word ‘‘questionable’’.

d. The second sentence of paragraph

(f)(8)(i)(C) is amended by removing the

words ‘‘incomplete, inaccurate,

inconsistent, or outdated’’ and adding in

their place the word ‘‘questionable’’.

e. Paragraph (f)(8)(ii) is amended by

removing the words ‘‘incomplete,

inaccurate, inconsistent, or outdated’’

and adding in their place the word

‘‘questionable’’.

f. Paragraphs (i)(4)(iii)(A), (i)(4)(iii)(B),

and (i)(4)(iii)(C) are revised.

g. New paragraphs (i)(4)(iii)(D),

(i)(4)(iii)(E), and (i)(4)(iii)(F) are added.

h. A new sentence is added at the end

of paragraph (i)(4)(iv).

The additions and revisions read as

follows:

§ 273.2. Application processing.

* * * * *

(c) Filing an application. * * *

(2) Contacting the food stamp office.

* * *

(iii) In State agencies that elect to

have Statewide residency, as provided

in § 273.3, the application processing

timeframes begin when the application

is filed in any food stamp office in the

State.

* * * * *

(f) Verification. * * *

(1) Mandatory verification. * * *

(v) Social security numbers. * * * A

completed SSA Form 2853 shall be

considered proof of application for an

SSN for a newborn infant.

* * * * *

(i) Expedited Service. * * *

(4) Special procedures for expediting

service. * * *

(iii) * * *

(A) For households applying on or

before the 15th of the month, the State

agency may assign a one-month

certification period or assign a normal

certification period. Satisfaction of the

verification requirements may be

postponed until the second month of

participation. If a one-month

certification period is assigned, the

notice of eligibility may be combined

with the notice of expiration or a

separate notice may be sent. The notice

of eligibility must explain that the

household has to satisfy any verification

requirements that were postponed. For

subsequent months, the household must

reapply and satisfy any verification

requirements which were postponed or

be certified under normal processing

standards. During the interview, the

State agency should give the household

a recertification form and schedule an

appointment for a recertification

interview. If the household does not

satisfy the postponed verification

requirements and does not appear for

the interview, the State agency does not

need to contact the household again.

(B) For households applying after the

15th of the month, the State agency may

assign a 2-month certification period or

a normal certification period of no more

than 12 months. Verification may be

postponed until the third month of

participation, if necessary, to meet the

expedited timeframe. If a two-month

certification period is assigned, the

notice of eligibility may be combined

with the notice of expiration or a

separate notice may be sent. The notice

of eligibility must explain that the

household is obligated to satisfy the

verification requirements that were

postponed. For subsequent months, the

household must reapply and satisfy the

verification requirements which were

postponed or be certified under normal

processing standards. During the

interview, the State agency should give

the household a recertification form and

schedule an appointment for a

recertification interview. If the

household does not satisfy the

postponed verification requirements

and does not attend the interview, the

State agency does not need to contact

the household again. When a

certification period of longer than 2

months is assigned and verification is

postponed, households must be sent a

notice of eligibility advising that no

benefits for the third month will be

issued until the postponed verification

requirements are satisfied. The notice

must also advise the household that if

the verification process results in

changes in the household’s eligibility or

level of benefits, the State agency will

act on those changes without advance

notice of adverse action. If the State

agency chooses to exercise the option to

require a second application in

accordance with the introductory text of

paragraph (i)(4)(iii) of this section, it

shall act on that application starting

with the first month after the current

certification period expires. If the

household is eligible, the State agency

shall issue benefits within five working

days of the receipt of the necessary

verification. When the postponed

verification requirements are not

completed within 30 days after the end

of the household’s last certification

period, the State agency shall terminate

the household’s participation and shall

issue no further benefits.

(C) Households which apply for

initial month benefits (as described in

§ 273.10(a)) after the 15th of the month,

are processed under standard processing

timeframes, have completed the

application and have satisfied all

verification requirements within 30

days of the date of application, and have

been determined eligible to receive
Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules 2713

benefits for the initial month of

application and the next subsequent

month, shall be issued a combined

allotment which includes prorated

benefits for the month of application

and benefits for the first full month of

participation. The benefits shall be

issued in accordance with § 274.2(c) of

this chapter.

(D) Households which apply for

initial benefits (as described in

§ 273.10(a)) after the 15th of the month,

are processed under expedited service

procedures, have completed the

application, and have been determined

eligible to receive benefits for the initial

month and the next subsequent month,

shall receive a combined allotment

consisting of prorated benefits for the

initial month of application and benefits

for the first full month of participation

within the expedited service timeframe.

If necessary, verification will be

postponed to meet the expedited

timeframe. The benefits shall be issued

in accordance with § 274.2(c) of this

chapter.

(E) The provisions of paragraphs

(i)(4)(iii)(C) and (i)(4)(iii)(D) of this

section do not apply to households

which have been determined ineligible

to receive benefits for the month of

application or the following month, or

to households who have not satisfied

the postponed verification

requirements. Households eligible for

expedited service may, however, receive

benefits for the initial month and next

subsequent month under the

verification standards of paragraph (i)(4)

of this section. Benefits of less than ten

dollars ($10) shall not be issued to a

household under the provisions of

paragraphs (i)(4)(iii)(C) and (i)(4)(iii)(D)

of this section.

(F) In a State with staggered issuance,

if a household applies after the 15th of

the month and is certified for more than

two months, it shall be issued its third

month’s benefits on the first working

day of the third calendar month, not the

staggered issuance date. If the State

agency chooses to exercise the option to

require a second application in

accordance with paragraph (i)(4)(iii) of

this section and receives the application

before the third month, it shall not deny

the application but hold it pending until

the third month. The State agency will

issue the third month’s benefits within

five working days from receipt of the

necessary verification information but

not before the first day of the month. If

the postponed verification requirements

are not completed within 45 days of the

date of application, the State agency

shall terminate the household’s

participation and shall issue no further

benefits.

(iv) * * * State agencies shall apply

the provisions of this section at

recertification if a household does not

apply for recertification until the month

after its certification period ends.

* * * * *

3. In § 273.3:

a. The existing undesignated

paragraph is designated as paragraph

(a), and is further amended by removing

the first sentence and adding two

sentences in its place.

b. Paragraph (b) is added.

The additions read as follows:

§ 273.3 Residency.

(a) A household shall live in the State

in which it files an application for

participation. The State agency may also

require a household to file an

application for participation in a

specified project area (as defined in

§ 271.2 of this chapter) or office within

the State. * * *

(b) When a household moves within

the State, the State agency may require

the household to reapply in the new

project area or it may transfer the

household’s casefile to the new project

area and continue the household’s

certification without reapplication. If

the State agency chooses to transfer the

case, it shall act on changes in

household circumstances resulting from

the move in accordance with § 273.12(c)

or § 273.21. It shall also ensure that

duplicate participation does not occur

in accordance with § 272.4(f) of this

chapter, and that the transfer of a

household’s case shall not adversely

affect the household.

4. In § 273.6, a new paragraph (b)(4)

is added to read as follows:

§ 273.6 Social security numbers.

* * * * *

(b) Obtaining SSNs for food stamp

household members. * * *

(4) If the household is unable to

provide proof of application for an SSN

for a newborn, the household must

provide the SSN or proof of application

at the next recertification. If the

household is unable at the next

recertification to provide proof of

application, the State agency shall

determine if the good cause provisions

of paragraph (d) of this section are

applicable.

* * * * *

5. In § 273.8, the first sentence of

paragraph (e)(2) is revised to read as

follows:

§ 273.8 Resource eligibility standards.

* * * * *

(e) Exclusions from resources. * * *

(2) Household goods, personal effects,

the cash value of life insurance policies,

one burial plot per household member,

and the value of one bona fide funeral

agreement per household member,

provided that the agreement does not

exceed $1500 in equity value, in which

event the value above $1500 is counted.

* * *

* * * * *

7. In § 273.10:

a. The second sentence of paragraph

(a)(1)(iv) is amended by adding the

words ‘‘second full’’ after the words

‘‘benefits for the’’.

b. Paragraph (a)(1)(iv) is further

amended by removing the third and

fourth sentences.

c. Paragraph (c)(2)(iii) is revised.

d. A new sentence is added at the end

of paragraph (c)(3)(ii);

e. A new sentence is added to the end

of paragraph (f)(3), and four new

paragraphs, (f)(3)(i), (f)(3)(ii), (f)(3)(iii),

and (f)(3)(iv) are added; and

f. The first sentence of paragraph

(g)(2) is amended by adding the words

‘‘if the household has complied with all

recertification requirements’’ after

‘‘current certification period.’’

The additions and revision read as

follows:

§ 273.10 Determining household eligibility

and benefit levels.

* * * * *

(c) Determining income. * * *

(2) Income only in month received.

* * *

(iii) Households receiving income on

a recurring monthly or semimonthly

basis shall not have their monthly

income varied merely because of

changes in mailing cycles or pay dates

or because weekends or holidays cause

additional payments to be received in a

month.

(3) Income averaging. * * *

(ii) * * * Contract income which is

not the household’s annual income and

is not paid on an hourly or piecework

basis shall be prorated over the period

the income is intended to cover.

* * * * *

(f) Certification periods. * * *

(3) * * * To align the PA or GA and

food stamp recertification, the State

agency may do the following:

(i) When the household’s eligibility

for PA or GA has been determined, the

State agency may review the

household’s food stamp eligibility. If

eligibility factors remain the same, the

household’s certification period can be

extended up to an additional 12 months

to align the household’s food stamp

recertification with its PA/GA

redetermination. The State agency

would be required to send a notice

informing the household of changes in

its certification period. At the end of the
2714 Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules

extended certification period the

household must be sent a Notice of

Expiration and must be recertified

before being eligible for further food

stamp assistance, even if the PA/GA

redetermination is not set to expire.

This procedure may also be used to

align a household’s PA/GA and food

stamp certification periods if those

certification periods are no longer

aligned as a result of the household’s

failure to comply with the PA/GA

redetermination requirements.

(ii) Except as specified in paragraph

(f)(3)(iii) of this section, State agencies

may assign households food stamp

certification periods that expire the

month following the household’s

required PA/GA redetermination,

provided the food stamp certification

period does not exceed 1 year. If a PA/

GA household has not had its PA/GA

redetermination by the end of the 11th

month following its initial certification

or its last redetermination for food

stamps, the State agency shall send the

household a notice of expiration of its

food stamp certification period and

recertify the household in accordance

with the provisions of § 274.14 of this

chapter.

(iii) State agencies which have a

monthly reporting system and,

therefore, allow more than 1 year to

elapse before redetermining their PA/

GA cases, but which can predict with

certainty in which month the PA/GA

redetermination will take place, may

assign PA/GA food stamp households

definite food stamp certification periods

that expire at the end of the month

following the month in which the PA/

GA redetermination is scheduled. If for

any reason the PA/GA redetermination

is not made by the end of the month for

which it was scheduled, the State

agency shall send the household a

notice of expiration of its food stamp

certification period and recertify the

household in accordance with the

provisions of § 274.14 of this chapter.

(iv) If a household reports a change in

circumstance for PA/GA, the State

agency may review the household’s food

stamp eligibility at the same time. The

household will be required to submit a

recertification form for food stamps and

to undergo a face-to-face interview. If

the household is determined eligible, its

old certification period shall be

terminated and a new period not to

exceed 12 months shall be assigned.

* * * * *

8. In § 273.11.

a. The heading of paragraph (b) is

revised;

b. The introductory text of paragraph

(b)(1)(ii) is revised.

c. Paragraph (b)(1)(ii)(B) is amended

by removing the period at the end of the

paragraph and adding in its place a

semicolon and the word ‘‘or’’.

d. A new paragraph (b)(1)(ii)(C) is

added;

e. A new paragraph (b)(2) is added.

The revisions and additions are as

follows:

§ 273.11 Action on Households with

Special Circumstances.

* * * * *

(b) Households with income from

boarders and day care. (1) Household

with boarders. * * *

(ii) Cost of doing business. In

determining the income received from

boarders, the State agency shall exclude

the portion of the boarder payment that

is a cost of doing business. Provided

that the amount allowed as a cost of

doing business shall not exceed the

payment the household receives from

the boarder for lodging and meals, the

cost of doing business shall be equal to

one of the following:

* * * * *

(C) a flat amount or fixed percentage

of the gross income, provided that the

method used to determine the flat

amount or fixed percentage is objective

and justifiable and is stated in the

State’s food stamp manual. However, if

the applicant or recipient requests use

of the verified actual amount, the State

agency shall use the actual amount.

* * * * *

(2) Income from day care. Households

deriving income from day care may

elect one of the following methods of

determining the cost of meals provided

to the individuals:

(i) Actual documented costs of meals;

(ii) A standard per day amount based

on estimated per meal costs; or

(iii) Current reimbursement amounts

used in the Child and Adult Care Food

Program.

* * * * *

9. In § 273.13, a new paragraph (b)(15)

is added to read as follows:

§ 273.13 Notice of adverse action.

* * * * *

(b) Exemptions from notice. * * *

(15) The household’s address is

unknown and mail directed to it has

been returned by the post office

indicating no known forwarding

address. The household’s benefits must,

however, be made available to it within

five working days if the household

contacts the State agency during the

payment period covered by a returned

benefit.

10. § 273.14 is revised to read as

follows:

§ 273.14 Recertification

(a) General. No household may

participate beyond the expiration of the

certification period assigned in

accordance with § 273.10(f) without a

determination of eligibility for a new

period. The State agency must establish

procedures for notifying households of

expiration dates, providing

recertification forms, scheduling

interviews, and recertifying eligible

households prior to the expiration of

certification periods. Households must

apply for recertification and comply

with interview and verification

requirements.

(b) Recertification process.

(1) Notice of expiration.

(i) The State agency shall provide

households certified for one month or

certified in the second month of a twomonth certification period a notice of

expiration (NOE) at the time of

certification. The State agency shall

provide other households the NOE

before the first day of the last month of

the certification period, but not before

the first day of the next- to-the-last

month. Jointly processed PA and GA

households need not receive a separate

food stamp notice if they are recertified

for food stamps at the same time as their

PA or GA redetermination.

(ii) Each State agency shall develop a

NOE. A model form (Form FCS–439) is

available from FCS. The NOE must

contain the following:

(A) the date the certification period

expires;

(B) the date by which a household

must submit an application for

recertification in order to receive

uninterrupted benefits;

(C) the consequences of failure to

apply for recertification in a timely

manner;

(D) notice of the right to receive an

application form upon request and to

have it accepted as long as it contains

a signature and a legible name and

address;

(E) information on alternative

submission methods available to

households which cannot come into the

certification office or do not have an

authorized representative and how to

exercise these options;

(F) the address of the office where the

application must be filed;

(G) the household’s right to request a

fair hearing if the recertification is

denied or if the household objects to the

benefit issuance;

(H) notice that any household

consisting only of Supplemental

Security Income (SSI) applicants or

recipients is entitled to apply for food

stamp recertification at an office of the

Social Security Administration;
Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules 2715

(I) notice that failure to attend an

interview may result in delay or denial

of benefits; and

(J) notice that the household is

responsible for rescheduling a missed

interview and for providing required

verification information.

(iii) To expedite the recertification

process, State agencies are encouraged

to send a recertification form, an

interview appointment letter, and a

statement of needed verification

required by § 273.2(c)(5) with the NOE.

(2) Recertification form.

(i) The State agency shall provide

each household with a recertification

form to obtain all information needed to

determine eligibility and benefits for a

new certification period. This form can

only be used by households which are

applying for recertification before the

end of their current certification period.

Recertification forms must be approved

by FCS as required by § 273.2(b)(3). The

recertification form must elicit from the

household sufficient information

regarding household composition,

income and resources that, when added

to information already contained in the

casefile, will ensure an accurate

determination of eligibility and benefits.

The information required by

§ 273.2(b)(1) (i), (ii), (iii), (iv) and (v)

must be included on the recertification

form. The information regarding the

Income and Eligibility Verification

System in § 273.2(b)(2) may be provided

on a separate form. A combined form for

PA and GA households may be used in

accordance with § 273.2(j). Monthly

reporting households shall be recertified

as provided in § 273.21(q). State

agencies may use the same form for

households required to report changes

in circumstances and monthly reporting

households.

(ii) The State agency may request that

the household bring the recertification

form to the interview or return the form

by a specified date (not less than 15

days after receipt of the form).

(3) Interview. (i) As part of the

recertification process, the State agency

shall conduct a face-to-face interview

with a member of each household. The

face-to-face interview may be waived in

accordance with § 273.2(e). The State

agency may also waive the face-to-face

interview for a household that has no

earned income if all of its members are

elderly or disabled. The State agency

has the option of conducting a

telephone interview or a home visit for

those households for whom the office

interview is waived. However, a

household that requests a face-to-face

interview must be granted one.

(ii) If a household receives PA/GA

and will be recertified more than once

in a 12-month period, the State agency

may choose to conduct a face-to-face

interview with that household only

once during that period. The face-to-face

interview shall be conducted at the

same time that the household receives a

face-to-face interview for PA/GA

purposes. At any other recertification

during that year period, the State agency

may interview the household by

telephone or conduct a home visit.

However, a household that requests a

face-to-face interview must be granted

one.

(iii) If a household does not appear for

an interview scheduled before it has

submitted a recertification form, the

State agency must reschedule the

interview. State agencies shall schedule

interviews so that the household has at

least 10 days after the interview in

which to provide verification before the

certification period expires.

(4) Verification. Information provided

by the household shall be verified in

accordance with § 273.2(f)(8)(i). The

State agency shall provide the

household a notice of required

verification as provided in 273.2(c)(5)

and notify the household of the date by

which the verification requirements

must be satisfied. The household must

be allowed a minimum of 10 days to

provide required verification

information.

(c) Timely application for

recertification.

(1) Households reporting required

changes in circumstances that are

certified for one month or certified in

the second month of a two-month

certification period shall have 15 days

from the date the NOE is received to file

a timely application for recertification.

(2) Other households reporting

required changes in circumstances that

submit applications by the 15th day of

the last month of the certification period

shall be considered to have made a

timely application for recertification.

(3) For monthly reporting households,

the filing deadline shall be either the

15th of the last month of the

certification period or the normal date

for filing a monthly report, at the State

agency’s option. The option chosen

must be uniformly applied to the State

agency’s entire monthly reporting

caseload.

(4) For households consisting of

applicants or recipients of SSI who

apply for food stamp recertification at

offices of the SSA in accordance with

§ 273.2(k)(1), an application shall be

considered filed for normal processing

purposes when the signed application is

received by the SSA.

(d) Timely processing.

(1) Households that were certified for

one month or certified for two months

who are in the second month of the

certification period and have met all

required application procedures shall be

notified of their eligibility or

ineligibility. Eligible households shall

be provided an opportunity to receive

benefits no later than 30 calendar days

after the date the household received its

last allotment.

(2) Other households that have met all

application requirements shall be

notified of their eligibility or

ineligibility by the end of their current

certification period. In addition, the

State agency shall provide households

that are determined eligible an

opportunity to participate by the

household’s normal issuance cycle in

the month following the end of its

current certification period.

(e) Delayed processing.

(1) Delays caused by the State agency.

Households which have submitted an

application for recertification in a

timely manner but, due to State agency

error, are not determined eligible in

sufficient time to provide for issuance of

benefits by the household’s next normal

issuance date shall receive an

immediate opportunity to participate

upon being determined eligible, and the

allotment shall not be prorated. If the

household was unable to participate for

the month following the expiration of

the certification period because of State

agency error, the household is entitled

to restored benefits.

(2) Delays caused by the household.

(i) If a household does not submit a

new application by the end of the

certification period, the State agency

must close the case without further

action.

(ii) If a recertification form is

submitted more than one month after

the filing deadline, it shall be treated the

same as an application for initial

certification. In accordance with

§ 273.10(a)(1)(ii), the household’s

benefits shall not be prorated unless

there has been a break of more than one

month in the household’s certification.

(iii) A household which submits an

application by the filing deadline but

does not appear for an interview

scheduled after the application has been

filed, or does not submit verification

within the required timeframe, loses its

right to uninterrupted benefits. The

State agency has three options for

handling such cases:

(A) Send the household a denial

notice as soon as the household fails to

appear for an interview or submit

required verification information. If the

interview is completed, or the

household provides the required
2716 Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Proposed Rules

verification information within 30 days

of the date of application and is

determined eligible, the household must

be reinstated and receive benefits within

30 calendar days after the application

was filed or within 10 days of the date

the interview is completed or required

verification information is provided,

whichever is later. In no event shall a

subsequent period’s benefits be

provided before the end of the current

certification period.

(B) Deny the household’s

recertification application at the end of

the last month of the current

certification period. The State agency

may on a Statewide basis either require

households to submit new applications

to continue benefits or reinstate the

households without requiring new

applications if the households have

been interviewed and have provided the

required verification information within

30 days after the applications have been

denied.

(C) Deny the household’s

recertification request 30 days after

application. The State agency may on a

Statewide basis either require

households to submit new applications

to continue benefits or reinstate

households without requiring new

applications if such households have

been interviewed and have provided the

required verification within 30 days

after the applications have been denied.

(f) Expedited service. A State agency

is not required to apply the expedited

service provisions of § 273.2(i) at

recertification if the household applies

in a timely manner for recertification or

applies late but within the certification

period.

11. In § 273.21, paragraph (n)(1) is

amended by adding a sentence to the

end of the paragraph to read as follows:

§ 273.21 Monthly Reporting and

Retrospective Budgeting (MRRB).

* * * * *

(n) Suspension. * * *

(1) * * * The State agency may on a

Statewide basis either suspend the

household’s certification prospectively

for the issuance month or

retrospectively for the issuance month

corresponding to the budget month in

which the noncontinuing circumstance

occurs.

* * * * *

PART 274—ISSUANCE AND USE OF

COUPONS

12. In § 274.2:

a. Paragraphs (b)(2), (b)(3), and (b)(4)

are removed.

b. Paragraphs (b)(1), (c), (d), and (e)

are redesignated paragraphs (b), (d), (e),

and (f), respectively.

c. Two sentences are added to the end

of newly redesignated paragraph (b).

d. A new paragraph (c) is added.

The additions read as follows:

§ 274.2 Providing benefits to participants.

* * * * *

(b) * * * For households entitled to

expedited service, the State agency shall

make available to the household

coupons or an ATP card, not later than

the fifth calendar day following the date

the application was filed. Whatever

system a State agency uses to ensure

meeting this delivery standard shall be

designed to allow a reasonable

opportunity for redemption of ATPs no

later than the fifth calendar day

following the day the application was

filed.

(c) Combined allotments. For those

households which are to receive a

combined allotment, the State agency

shall provide the benefits for both

months as an aggregate (one) allotment,

or as two separate allotments made

available at the same time, in

accordance with the timeframes

specified in S273.2(i) of this chapter.

* * * * *

Dated: January 4, 1995.

Ellen Haas,

Under Secretary for Food, Nutrition, and

Consumer Services.

[FR Doc. 95–635 Filed 1–10–95; 8:45 am]

BILLING CODE 3410–30–U

CONSUMER PRODUCT SAFETY

COMMISSION

16 CFR Part 1700

Proposed Requirements for ChildResistant Packaging; Packages

Containing 250 mg or More of

Naproxen: Extension of Comment

Period

AGENCY: Consumer Product Safety

Commission.

ACTION: Notice of extension of comment

period.

SUMMARY: On November 14, 1994, the

Commission issued a proposed rule

under the Poison Prevention Packaging

Act to require child-resistant packaging

for naproxen preparations containing

250 mg or more of naproxen per

package. The Commission had specified

that comments should be submitted by

January 30, 1995. After receiving a

request to extend the comment period,

the Commission has decided to do so,

and it will permit comments until

March 1, 1995.

DATES: Comments on the proposal

should be submitted not later than

March 1, 1995.

ADDRESSES: Comments should be

mailed to the Office of the Secretary,

Consumer Product Safety Commission,

Washington, DC 20207–0001, or

delivered to the Office of the Secretary,

Consumer Product Safety Commission,

room 502, 4330 East West Highway,

Bethesda, Maryland 20814, telephone

(301) 504–0800.

FOR FURTHER INFORMATION CONTACT:

Jacqueline Ferrante, Ph.D., Directorate

for Health Sciences, Consumer Product

Safety Commission, Washington, DC

20207; telephone (301) 504–0477 ext.

1199.

SUPPLEMENTARY INFORMATION: The

Commission recently published in the

Federal Register proposed requirements

for special packaging (also known as

child resistant packaging) for naproxen

preparations containing 250 mg or more

of naproxen per package. 59 FR 56445.

These proposed requirements were

issued under the authority of the Poison

Prevention Packaging Act (PPPA), 15

U.S.C. 1471–1476. The PPPA authorizes

the Commission to establish standards

for the special packaging of any

household substance if (1) the degree or

nature of the hazard to children in the

availability of such substance, by reason

of its packaging, is such that special

packaging is required to protect children

from serious personal injury or serious

illness resulting from handling, using,

or ingesting such substance and (2) the

special packaging is technically feasible,

practicable, and appropriate for the

substance. 15 U.S.C. 1472(a).

The November 14, 1994, Federal

Register notice provides details

concerning toxicity, dosage, and

packaging of naproxen. The notice also

discusses findings that the PPPA

requires the Commission to make

concerning (1) the hazard to children

presented by the substances; (2) the

technical feasibility, practicability, and

appropriateness of special packaging;

and (3) the reasonableness of the

proposed standard.

The Commission received a request

from the Syntex Corporation (‘‘Syntex’’)

asking for an extension of the comment

period allowed for the proposed

requirements. Syntex and Proctor &

Gamble jointly have three years

exclusivity to manufacture and market

the only over-the-counter naproxen

product. Syntex stated that since it has

recently been acquired by Hoffmann-La

Roche, Ltd., additional time is necessary

for preparation and review of comments

by the new management. Syntex