25550 Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Rules and Regulations

§ 52.50 [Amended]

3. In § 52.50, the figure ‘‘$39.50’’ is

revised to read ‘‘$41.00’’.

§ 52.51 [Amended]

4. In § 52.51, paragraph (c)(2) is

amended by removing the figure

‘‘$39.50’’ and adding in its place

‘‘$42.00’’ and paragraph (d)(1)is

amended by removing the figure

‘‘$39.50’’ and adding in its place

‘‘$42.00’’.

Dated: May 16, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96–12835 Filed 5–21–96; 8:45 am]

BILLING CODE 3410–02–P

Food and Consumer Service

7 CFR Parts 225 and 226

RIN 0584–AB17

Determination of Eligibility for Free

Meals by Summer Food Service

Program Sponsors and Free and

Reduced Price Meals by Child and

Adult Care Food Program Institutions

AGENCY: Food and Consumer Service,

USDA.

ACTION: Final rule.

SUMMARY: This rule amends the

regulations governing the collection of

social security numbers and household

income information on the application

for free meals under the Summer Food

Service Program (SFSP) for Children,

and for free and reduced price meals

under the Child and Adult Care Food

Program (CACFP). The rule removes the

requirement that households provide

the social security numbers of all adult

members of the household and requires

the household to provide only the social

security number of the adult household

member who signs the application.

Finally, when reporting household

income, the household will no longer be

required to indicate how often

individual income amounts are

received, or to calculate its total current

income. All of the above provisions are

intended to reduce paperwork and

facilitate eligibility determinations for

free and reduced price meals by

simplifying the application

requirements for both households and

approving officials, while maintaining

program integrity.

EFFECTIVE DATE: June 21, 1996.

FOR FURTHER INFORMATION CONTACT:

Robert M. Eadie or Edward Morawetz,

Policy and Program Development

Branch, Child Nutrition Division, Food

and Consumer Service, Department of

Agriculture, 3101 Park Center Drive,

Room 1007, Alexandria, Virginia 22302

or telephone 703–305–2620.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be

not significant for purposes of Executive

Order 12866, and, therefore, has not

been reviewed by the Office of

Management and Budget.

Regulatory Flexibility Act

This rule has also been reviewed with

regard to the requirements of the

Regulatory Flexibility Act (5 U.S.C.

601–612). The Administrator of the

Food and Consumer Service has

certified that this rule will not have a

significant economic impact on a

substantial number of small entities.

The effect of the provisions of this rule

will be to reduce paperwork and

facilitate eligibility determinations for

free and reduced price meals by

simplifying the application

requirements for both households and

approving officials, while maintaining

program integrity.

Executive Order 12372

The CACFP and SFSP are listed in the

Catalog of Federal Domestic Assistance

under No. 10.558 and 10.559,

respectively, and are subject to the

provisions of Executive Order 12372,

which requires intergovernmental

consultation with State and local

officials (7 CFR Part 3015, Subpart V,

and final rule related notice published

at 48 FR 29114, June 24, 1983).

Information Collection

In accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501–

3520), the reporting and recordkeeping

changes included in this rule have been

approved by the Office of Management

and Budget (OMB) under control

numbers 0584–0055 and 0584–0280.

Executive Order 12778

This rule has been reviewed under

Executive Order 12778, Civil Justice

Reform. This rule is intended to have

preemptive effect with respect to any

State or local laws, regulations or

policies which conflict with its

provisions or which would otherwise

impede its full implementation. This

rule is not intended to have retroactive

effect unless so specified in the

‘‘Effective Date’’ section of this

preamble. Prior to any judicial challenge

to the provisions of this rule or the

application of its provisions, all

applicable administrative procedures

must be exhausted. In the SFSP, the

administrative procedures are set forth

under the following regulations: (1)

Program sponsors and food service

management companies must follow

State agency hearing procedures issued

pursuant to 7 CFR § 225.13; and (2)

Disputes involving procurement by

State agencies and sponsors must follow

administrative appeal procedures to the

extent required by 7 CFR § 225.17 and

7 CFR Part 3015. In the CACFP, the

administrative procedures are set forth

under the following regulations: (1)

Institution appeal procedures in 7 CFR

§ 226.6(k); and (2) Disputes involving

procurement by State agencies and

institutions must follow administrative

appeal procedures to the extent required

by 7 CFR § 226.22 and 7 CFR Part 3015.

This rule codifies the amendments set

forth under sections 202(b)(2)(A) and

(b)(2)(B)(i) of the Child Nutrition and

WIC Reauthorization Act of 1989 (Pub.

L. 101–147) regarding the collection of

social security numbers and total

income calculations for programs under

the National School Lunch Act (42

U.S.C. 1751 et seq.) and the Child

Nutrition Act of 1966 (42 U.S.C. 1771 et

seq.). Section 202(c) of Pub. L. 101–147

required that final regulations be issued

incorporating these amendments by July

1, 1990. However, we were unable to

issue regulations on the collection of

social security numbers and total

income calculation amendments before

the statutory deadline. The provisions

were implemented by a policy

memorandum issued on May 18, 1990.

This rule is being issued as a final

rule, rather than a proposed rule,

because of the mandated

implementation date. Further, this rule

is being issued as a final rule because of

the need to formally implement these

changes to the application procedures.

Although a policy memorandum has

already been distributed to give State

agencies guidance, the SFSP and CACFP

regulations must be amended to codify

the changes mandated by sections

202(b)(2)(A) and 202(b)(2)(B)(i) of Pub.

L. 101–147. Final regulations have

already been promulgated incorporating

these changes for the National School

Lunch, School Breakfast and Special

Milk Programs (56 FR 33857, July 24,

1991). For consistency and simplicity, it

is important that the SFSP and CACFP

regulations be amended to conform with

the National School Lunch, School

Breakfast, and Special Milk Program

regulations. Finally, the changes to the

application being made by this

rulemaking will simplify the application

procedures for households. For these

reasons, the Administrator of the Food

and Consumer Service has determined,

in accordance with 5 U.S.C.

553(b)(3)(B), that it is impracticable and
Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Rules and Regulations 25551

contrary to public interest to take prior

public comment and that good cause

therefore exists for publishing this rule

without prior public notice and

comment.

Background

For the purpose of determining

eligibility for free meals in the SFSP and

free and reduced price meals in the

CACFP, sponsors/institutions must

distribute free meal or free and reduced

price meal applications to the families

of enrolled participants. Prior to the

amendments made by Pub. L. 101–147,

under both programs, households

applying for benefits were required to

submit an application containing

complete documentation of eligibility,

as defined in Sections 225.2,

‘‘Documentation,’’ and 225.15(f) of the

SFSP regulations (7 CFR Part 225) and

Sections 226.2, ‘‘Documentation,’’ and

226.23(e)(1) of the CACFP regulations (7

CFR Part 226). Under current Sections

225.15(f)(3) and 226.23(e)(1)(iv) of the

SFSP and CACFP regulations,

respectively, ‘‘documentation’’ for

participating children who were

members of Aid to Families with

Dependent Children (AFDC) assistance

units or food stamp households means

the completion of the following

information on the application: the

child’s name; a current food stamp or

AFDC case number; and the signature of

an adult household member. Under

current Section 226.23(e)(1)(v) of the

CACFP regulations, for adult

participants who were members of food

stamp households or who receive

assistance under the Supplemental

Security Income (SSI) for the Aged,

Blind and Disabled Program or under

the Grant to States for Medical

Assistance Programs (Medicaid),

‘‘documentation’’ of eligibility means

the completion of the following

information on the application: the

name of the adult participant; his/her

food stamp case number or SSI or

Medicaid identification number; and the

signature of an adult household

member.

In all other cases, under current

regulations, documentation for all

children in the SFSP and for all

children and adults applying for

participation in the CACFP consists of

a completed free meal or free and

reduced price meal application that,

pursuant to Section 225.15(f)(2) of the

SFSP regulations and Sections

226.23(e)(1)(ii) and (iii) of the CACFP

regulations includes: the names of the

child or adult for whom application is

being made; the names of all other

household members; social security

numbers for all adult household

members or an indication that an adult

household member did not have a social

security number; the total current

income and the income received by

each household member identified by

source; and the signature of an adult

household member. The official

responsible for making eligibility

determinations (the ‘‘determining

official’’) for free or reduced price

benefits is required to review the

application to ensure that it is complete

and, for households that submitted

income information, to compare the

household size and income to the

Income Eligibility Guidelines issued

annually by the Department.

Households that provide a food stamp,

AFDC, Medicaid or SSI number on the

application are considered categorically

eligible for free meals.

Social Security Numbers

Section 202(b)(2)(A) of Pub. L. 101–

147, enacted on November 10, 1989,

amended section 9(d)(1) of the National

School Lunch Act (42 U.S.C. 1758(d)(1))

to eliminate the requirement for the

collection of the social security numbers

of all adult household members as a

condition of eligibility for participants

who are not categorically eligible for

benefits. Rather, the law now requires

that the member of the household who

executes the application include the

social security number of the parent or

guardian who is the primary wage

earner responsible for the care of the

child for whom application is made, or

the number of another appropriate adult

member of the child’s household, as

determined by the Secretary.

Additionally, section 9(d)(1), as further

amended by section 202(b)(2)(A) of Pub.

L. 101–147, requires that the household

provide the social security numbers of

each adult household member if the

application is selected for verification of

eligibility.

On May 9, 1990, the Department

issued an interim rule at 55 FR 19237

which implemented sections

202(b)(2)(A) and (B) of Pub. L. 101–147

in the National School Lunch, School

Breakfast and Special Milk Programs.

That interim rule gave households the

option of providing either the social

security number of the primary wage

earner or that of the household member

signing the application. This option was

provided in the interim rule because the

Department wished to provide

households with flexibility in

complying with the social security

number requirement. In order to provide

guidance to SFSP and CACFP

administrators and beneficiaries prior to

the July 1, 1990, legislative deadline,

and in the interest of maintaining as

much consistency as possible in the free

and reduced price meal application

process among the Child Nutrition

Programs, an identical policy was

established for the SFSP and the CACFP

in a policy memorandum issued by the

Department on May 18, 1990.

Commenters on the interim rule for

the school programs, as well as other

State and local school officials who

have informally advised the Department

of their experiences with the application

process, believe that providing

households with this option would

actually result in complicating, rather

than simplifying, the application

process and would add to paperwork

and administrative burdens. In response

to those comments, the final rule

governing free and reduced price

applications in the National School

Lunch, School Breakfast and Special

Milk Programs requires only that the

social security number of the adult

household member who signs the

application be provided (56 FR 33857,

July 24, 1991). In lieu of providing a

social security number, the adult

household member signing the

application may indicate that he or she

does not possess one. In making this

change from the interim rule, the

Department believed that the final

School Programs rule further simplified

the application process, while

maintaining program integrity, since the

adult who signs the application must

also certify that the information on the

application is true and correct. Based on

the foregoing, and in an effort to

maintain consistency among the Child

Nutrition Programs, this interim rule

adopts the same application

requirements for the SFSP and the

CACFP.

Accordingly, this rule amends

Sections 225.2, ‘‘Documentation,’’ and

225.15(f)(2)(iii) of the SFSP regulations

and Sections 226.2, ‘‘Documentation,’’

and 226.23(e)(1)(ii)(C) and (iii)(C) of the

CACFP regulations to require a

completed application to include the

social security number of the adult

household member who signs the

application. As permitted in current

regulations, if the adult household

member signing the application does

not have a social security number, the

household may indicate this fact in lieu

of providing a social security number.

In a related area, section 7(b) of the

Privacy Act of 1974 (5 U.S.C. 552a note)

requires agencies to give advance notice

and disclosure to the public of any

requirement to provide social security

numbers and of the uses to be made of

those social security numbers. In

accordance with this law, the

Department requires that any individual
25552 Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Rules and Regulations

required to disclose his/her social

security number must be informed: (1)

whether that disclosure is mandatory or

voluntary; (2) by what statutory

authority or other authority each

number is solicited; and (3) what uses

will be made of the number. The current

SFSP and CACFP regulations at Section

225.15(f)(2)(vi), and Sections

226.23(e)(1)(ii)(F) and (iii)(E) contain

the Department’s prototype Privacy Act

Statements for free and reduced price

applications. They reflect the statutory

requirement in effect prior to the

enactment of Pub. L. 101–147 that the

application contain the social security

number of each adult household

member. These prototype Privacy Act

Statements must also be modified to

include the requirement that only the

social security number of the adult

household member signing the

application need be provided (or an

indication that he or she does not

possess one). In addition, a new Section

225.15(f)(4) must be added and Section

226.23(h)(2)(iii) must be revised to

require that households selected for

verification provide the social security

number for each adult household

member (or an indication that the

member does not possess a number) and

that the notice of selection for

verification also include a statement

which meets the requirements of section

7(b) of the Privacy Act of 1974 (5 U.S.C.

552a note). State agencies and

institutions should contact their own

legal counsel to ensure that their notices

comply with the Privacy Act

requirements.

Accordingly, this rule amends Section

225.15(f)(2)(vi) of the SFSP regulations

and Sections 226.23(e)(1)(ii)(F) and

(iii)(E) of the CACFP regulations to

make the aforementioned changes to

each Program’s prototype Privacy Act

statement. In addition, Section

225.15(f)(4) has been added to the SFSP

regulations and Section 226.23(h)(2)(iii)

of the CACFP regulations has been

revised to require that households

selected for verification must provide

the social security number of each adult

member, or an indication that a

household member does not possess

one.

This rule also makes several technical

changes to Part 226 to conform with the

requirement that only the social security

number of the adult household member

signing the application for free and

reduced price meals must be provided.

Specifically, this rule amends the

provisions found at Sections

226.15(e)(2), 226.15(e)(3), 226.17(b)(7),

226.18(f), 226.19(b)(8)(i), and

226.19a(b)(8) which govern various

documentation and record retention

requirements for participation in the

CACFP. This rulemaking amends these

sections to require that the

documentation for eligibility and

retention of information conform with

Section 226.23(e)(1). As mentioned

above, as a result of this rule, Section

226.23(e)(1) will now require only the

social security number of the adult

household member signing the

application. In lieu of providing a social

security number, the adult household

member signing the application may

indicate that he or she does not possess

one.

Income Information

Section 202(b)(2)(B)(i) of Pub. L. 101–

147 amended section 9(d)(2)(A) of the

National School Lunch Act (42 U.S.C.

1758(d)(2)(A)) to require that

households provide appropriate

documentation relating to their income

so that individuals responsible for

approving free and reduced price

applications may calculate the total

current income for use in determining

eligibility for benefits. The current

regulations at Sections 225.2,

‘‘Documentation,’’ and 225.15(f)(2) and

Sections 226.2, ‘‘Documentation,’’ and

226.23(e)(1)(ii)(D) and (iii)(D), require

that households provide the total

household income on the application, as

well as the income received by each

household member, identified by source

and amount. Based on the language of

Pub. L. 101–147, this rule eliminates the

requirement that the applicant

household calculate total income. The

elimination of this requirement will

further simplify the application process

and will reduce the burden on

determining officials, who previously

had to contact the household when

there were inconsistencies between the

sum of the income received by each

household member identified by source

and the total income figure for the

household. As a result of this interim

rule, the determining official will now

use the income information provided by

households to calculate the household’s

total current income. Households will

still be required to indicate the amount

of income received by each household

member, identified by source.

A technical change is also being made

to Sections 225.2, ‘‘Documentation,’’

and 225.15(f)(2) of the SFSP regulations

and Sections 226.2, ‘‘Documentation,’’

and 226.23(e)(1)(ii)(D) and (iii)(D) of the

CACFP regulations to add, as necessary,

the phrase ‘‘other cash income’’ to the

examples of sources of income (i.e.,

earnings, wages, welfare, pensions,

support payments, unemployment

compensation, and social security). This

technical change is being made to bring

about consistency within each Part, as

well as with the other child nutrition

programs covered by 7 CFR Part 245

(Determining Eligibility for Free and

Reduced Price Meals and Free Milk in

Schools). No change is being made

regarding the type of income to be

reported on free and reduced price meal

applications. Further, a technical

amendment is being made to Section

225.15(f)(2)(iv) to make the language

describing the sources of income

conform with the examples of sources of

income found in Section 225.2,

‘‘Documentation,’’ and with the sources

of income regulations under the

National School Lunch, School

Breakfast, and Special Milk Programs. A

technical change is also being made to

incorporate the undesignated paragraph

into the introductory paragraph in

Section 225.15(f)(3).

Accordingly, the Department is

amending Section 225.2,

‘‘Documentation,’’ and Section

225.15(f)(2) of the SFSP regulations and

Sections 226.2, ‘‘Documentation,’’ and

226.23(e)(1)(ii)(D) and (iii)(D) of the

CACFP regulations to eliminate the

requirement that households provide

their total income on the application

and to make the other technical changes

discussed above.

Definition of Income

To simplify the application process,

the Department is amending the

definition of ‘‘Current income’’ at

Section 226.2 of the CACFP regulations

and adding a definition of ‘‘Current

income’’ at Section 225.2 of the SFSP

regulations to reflect the actual

treatment of income by households

submitting income information on the

application and by determining officials

reviewing that information. Currently,

in Section 226.2, ‘‘Current income’’ is

defined as ‘‘income received during the

month prior to application for free or

reduced-price meals and multiplied by

12.’’ The definition further requires that,

if this income does not accurately reflect

the household’s annual income, the

income determination must be based on

the household’s projected annual

income. In practice, however, most

determining officials do not convert the

income amounts listed for each

household member to an annual income

figure. Rather, if any income is reported

as other than a monthly amount, most

determining officials convert these

income amounts to a monthly income

figure and base eligibility on total

monthly household income.

Therefore, the definition of ‘‘Current

income’’ added to Section 225.2 and the

definition of ‘‘Current income’’ at

Section 226.2, as amended by this rule,
Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Rules and Regulations 25553

define ‘‘Current income’’ simply as

income received during the month prior

to application, and the reference to

annualization is being deleted. If the

prior month’s income is not

representative of the household’s annual

rate of income, the household must still

report its projected annual income.

Accordingly, Section 226.2 of the

CACFP regulations is amended, and a

definition of ‘‘Current income’’ is added

to Section 225.2 of the SFSP regulations,

to define ‘‘Current income’’ as income

received during the month prior to

application for free or reduced-price

meals.

Technical Changes to OMB Control

Numbers

The OMB Control Number table found

at Section 225.20 is revised to reflect

current OMB control numbers for

information collection/recordkeeping

requirements for the following Sections:

225.3–225.4; 225.6–225.10; 225.12–

224.13; and 225.15–225.18.

Request for Comments

Since the Department has exercised

some discretion in the implementation

of these provisions, comments and

suggestions are particularly encouraged

on the following amendments: (1) the

requirement that only the social security

number of the adult household member

who executes the application be

provided; and (2) the requirement that

households report only monthly income

for each member. The Department

reminds commenters that the changes to

the application requirements are

intended to reduce paperwork by

simplifying the application

requirements while maintaining

program integrity.

List of Subjects

7 CFR Part 225

Food assistance programs, Grant

programs—health, infants and children.

7 CFR Part 226

Day care, Food assistance programs,

Grant programs—health, infants and

children, Reporting and recordkeeping

requirements, Surplus agricultural

commodities.

Accordingly, 7 CFR Parts 225 and 226

are amended as follows:

PART 225—SUMMER FOOD SERVICE

PROGRAM

1. The authority citation for Part 225

continues to read as follows:

Authority: Secs. 9, 13 and 14, National

School Lunch Act, as amended (42 U.S.C.

1758, 1761 and 1762a).

2. In Section 225.2:

a. A new definition of Current income

is added in alphabetical order.

b. Paragraph (a) of the definition of

Documentation is revised.

The addition and revision specified

above read as follows:

§ 225.2 Definitions.

* * * * *

Current income means income, as

defined in Section 225.15(f)(2)(iv),

received during the month prior to

application for free meals. If such

income does not accurately reflect the

household’s annual income, income

shall be based on the projected annual

household income. If the prior year’s

income provides an accurate reflection

of the household’s current annual

income, the prior year may be used as

a base for the projected annual income.

* * * * *

Documentation means (a) the

completion of the following information

on a free meal application:

(1) names of all household members;

(2) income received by each

household member, identified by source

of income (such as earnings, wages,

welfare, pensions, support payments,

unemployment compensation, social

security and other cash income);

(3) the signature of an adult

household member; and

(4) the social security number of the

adult household member who signs the

application, or an indication that the he/

she does not possess a social security

number; or,

* * * * *

3. In Section 225.15:

a. Paragraphs (f)(2)(iii) and (f)(2)(iv)

are revised;

b. Paragraph (f)(2)(vi) is amended by

removing the first four sentences and by

adding four new sentences in their place

and by adding a new sentence before the

word ‘‘and’’ at the end of the paragraph;

c. Paragraph (f)(3) is amended by

removing the undesignated text

following paragraph (f)(3)(ii) and by

revising the introductory text of

paragraph (f)(3); and

d. A new paragraph (f)(4) is added.

The additions and revisions specified

above read as follows:

§ 225.15 Management responsibilities of

sponsors.

* * * * *

(f) * * *

(2) * * *

(iii) the social security number of the

adult household member who signs the

application, or an indication that he/she

does not possess a social security

number;

(iv) the income received by each

household member, identified by source

of income (such as earnings, wages,

welfare, pensions, support payments,

unemployment compensation, social

security, and other cash income);

* * * * *

(vi) a statement which includes

substantially the following information:

‘‘Section 9 of the National School Lunch

Act requires that, unless a food stamp or

AFDC case number is provided for your

child, you must include the social

security number of the adult household

member signing the application, or

indicate that the household member

does not have a social security number.

Provision of a social security number is

not mandatory, but if a social security

number is not provided or an indication

is not made that the signer does not

have a social security number, the

application cannot be approved. This

notice must be brought to the attention

of the household member whose social

security number is disclosed. The social

security number may be used to identify

the household member in carrying out

efforts to verify the correctness of

information stated on the application.

* * * The sponsor shall take the

income information provided by the

household on the application and

calculate the household’s total current

income;

* * * * *

(3) If they so desire, households

applying on behalf of children who are

members of food stamp households or

AFDC assistance units may apply for

free meal benefits using the procedures

described in this paragraph rather than

the procedures described in paragraph

(f)(2) of this section. In accordance with

paragraph (f)(2)(vi) of this section, if a

food stamp or AFDC case number is

provided, it may be used to verify the

current food stamp or AFDC

certification for the child(ren) for whom

free meal benefits are being claimed.

Whenever households applying for

benefits for children not receiving food

stamp or AFDC benefits, they must

apply for those children in accordance

with the requirements set forth in

paragraph (f)(2) of this section.

Households applying on behalf of

children who are members of food

stamp households or AFDC assistance

units shall be required to provide:

* * * * *

(4) Households selected to provide

verification shall provide a social

security number for each adult

household member or an indication that

such member does not have one. The

notice to households of selection for

verification shall include the following:

(i) Section 9 of the National School

Lunch requires that unless the child’s
25554 Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Rules and Regulations

food stamp or AFDC case number is

provided, households selected for

verification must provide the social

security number of each adult

household member;

(ii) In lieu of providing a social

security number, an adult household

member may indicate that he/she does

not possess one;

(iii) Provision of a social security

number is not mandatory but if a social

security number is not provided for

each adult household member or an

indication is not made that he/she does

not possess one, benefits will be

terminated;

(iv) The social security number may

be used to identify household members

in carrying out efforts to verify the

correctness of information stated on the

application and continued eligibility for

the program. These verification efforts

may be carried out through program

reviews, audits, and investigations and

may include contacting employers to

determine income, contacting a food

stamp or welfare office to determine

current certification for receipt of food

stamps or AFDC benefits, contacting the

State employment security office to

determine the amount of benefits

received and checking the

documentation produced by household

members to prove the amount of income

received. These efforts may result in

loss or reduction of benefits,

administrative claims or legal actions if

incorrect information was reported; and

(v) This information must be provided

to the attention of each adult household

member disclosing his/her social

security number. State agencies shall

ensure that the notice complies with

section 7 of Pub. L. 93–579 (Privacy Act

of 1974). These households shall be

provided with the name and phone

number of an official who can assist in

the verification effort. Selected

households shall also be informed that,

in lieu of any information that would

otherwise be required, they can submit

proof of current food stamp or AFDC

Program certification as described in

paragraph (f)(3) of this section to verify

the free meal eligibility of a child who

is a member of a food stamp household

or AFDC assistance unit. All households

selected for verification shall be advised

that failure to cooperate with

verification efforts will result in the

termination of benefits.

* * * * *

4. In Section 225.20, the OMB Control

Number table is revised to read as

follows:

§ 225.20 Information collection/

recordkeeping—OMB assigned control

numbers.

7 CFR section where requirements are described

Current

OMB control No.

225.3–225.4. ............................. 0584–0280

225.6–225.10 ............................ 0584–0280

225.12–225.13 .......................... 0584–0280

225.15–225.18 .......................... 0584–0280

PART 226—CHILD AND ADULT CARE

FOOD PROGRAM

5. The authority citation for Part 226

continues to read as follows:

Authority: Secs. 9, 11, 14, 16, and 17,

National School Lunch Act, as amended (42

U.S.C. 1758, 1759a, 1762a, 1765 and 1766).

6. In Section 226.2:

a. The definition of Current income is

amended by removing the words ‘‘and

multiplied by 12’’; and

b. The definition of Documentation is

revised to read as follows:

§ 226.2 Definitions.

* * * * *

Documentation means (a) the

completion of the following information

on a free and reduced-price application:

(1) names of all household members;

(2) income received by each

household member, identified by source

of income (such as earnings, wages,

welfare, pensions, support payments,

unemployment compensation, social

security and other cash income);

(3) the signature of an adult

household member; and

(4) the social security number of the

adult household member who signs the

application, or an indication that he/she

does not possess a social security

number; or

(b) For a child who is a member of a

food stamp household or an AFDC

assistance unit, ‘‘documentation’’ means

the completion of only the following

information on a free and reduced-price

application:

(1) the name(s) and appropriate food

stamp or AFDC case number(s) for the

child(ren); and

(2) the signature of an adult member

of the household; or

(c) For an adult participant who is a

member of a food stamp household or

is an SSI or Medicaid participant, as

defined in this section,

‘‘documentation’’ means the completion

of only the following information on a

free and reduced- price application:

(1) the name(s) and appropriate food

stamp case number(s) for the

participant(s) or the adult participant’s

SSI or Medicaid identification number,

as defined in this section; and

(2) the signature of an adult member

of the household.

* * * * *

7. In Section 226.15, paragraphs (e)(2)

and (e)(3) are revised to read as follows:

§ 226.15 Institution Provisions.

* * * * *

(e) * * *

(2) Documentation of the enrollment

of each participant at child care centers,

adult day care centers and outsideschool-hours care centers including

information used to determine

eligibility for free or reduced price

meals in accordance with § 226.23(e)(1).

(3) Documentation of the enrollment

of each child at day care homes and

information used to determine the

eligibility of enrolled providers’

children for free or reduced price meals

in accordance with § 226.23(e)(1).

* * * * *

8. In Section 226.17, paragraph (b)(7)

is revised to read as follows:

§ 226.17 Child Care Center Provisions.

* * * * *

(b) * * *

(7) Child care centers shall collect and

maintain documentation of the

enrollment of each child, including

information used to determine

eligibility for free and reduced price

meals in accordance with § 226.23(e)(1).

* * * * *

§ 226.18 [Amended]

9. In Section 226.18, paragraph (f) is

amended by adding the words ‘‘, in

which case the day care home must

maintain documentation of the

information used to determine the

eligibility of enrolled providers’

children for free or reduced price meals

in accordance with § 226.23(e)(1)’’ at the

end of the paragraph.

10. In Section 226.19, paragraph

(b)(8)(i) is revised to read as follows:

§ 226.19 Outside-school-hours care center

provisions.

* * * * *

(b) * * *

(8) * * *

(i) Documentation of enrollment for

all children, including information used

to determine eligibility for free or

reduced price meals in accordance with

§ 226.23(e)(1);

* * * * *

11. In Section 226.19a, paragraph

(b)(8) is revised to read as follows:

§ 226.19a Adult day care center

provisions.

* * * * *

(b) * * *

(8) Adult day care centers shall collect

and maintain documentation of the
Federal Register / Vol. 61, No. 100 / Wednesday, May 22, 1996 / Rules and Regulations 25555

enrollment of each adult participant

including information used to

determine eligibility for free and

reduced price meals in accordance with

§ 226.23(e)(1).

* * * * *

12. In Section 226.23:

a. Paragraph (e)(1)(ii)(C) is revised;

b. Paragraph (e)(1)(ii)(D) is amended

by removing the words ‘‘total current

household income, and the’’;

c. Paragraph (e)(1)(ii)(F) is amended

by removing the first four sentences and

by adding six new sentences in their

place.

d. Paragraph (e)(1)(iii)(C) is revised;

e. Paragraph (e)(1)(iii)(D) is amended

by removing the words ‘‘total current

household income, and the’’;

f. Paragraph (e)(1)(iii)(E) is amended

by removing the first four sentences and

by adding six new sentences in their

place;

g. Paragraph (e)(4) is amended by

adding a new sentence at the beginning

of the paragraph;

h. Paragraphs (h)(2)(iv) through

(h)(2)(viii) are redesignated as

paragraphs (h)(2)(v) through (h)(2)(ix);

and

i. Paragraph (h)(2)(iii) is amended by

redesignating all text after the second

sentence as paragraph (h)(2)(iv), and by

revising the remaining text in paragraph

(h)(2)(iii).

The additions and revisions specified

above read as follows:

§ 226.23 Free and reduced-price meals.

* * * * *

(e)(1) * * *

(ii) * * *

(C) The social security number of the

adult household member who signs the

application, or an indication that he/she

does not possess a social security

number;

* * * * *

(F) A statement which includes

substantially the following information:

‘‘Section 9 of the National School Lunch

Act requires that, unless a food stamp or

AFDC case number is provided for your

child, you must include a social security

number on the application. This must

be the social security number of the

adult household member signing the

application. If the adult household

member signing the application does

not possess a social security number,

he/she must indicate so on the

application. Provision of a social

security number is not mandatory, but

if a social security number is not

provided or an indication is not made

that the adult household member

signing the application does not have

one, the application cannot be

approved. This notice must be brought

to the attention of the household

member whose social security number

is disclosed. The social security number

may be used to identify the household

member in carrying out efforts to verify

the correctness of information stated on

the application. * * *

* * * * *

(iii) * * *

(C) The social security number of the

adult household member who signs the

application, or an indication that he/she

does not possess a social security

number;

* * * * *

(E) A statement which includes

substantially the following information:

‘‘Section 9 of the National School Lunch

Act requires that, unless a food stamp

case number or SSI or Medicaid

assistance identification number is

provided for the adult for whom

benefits are sought, you must include a

social security number on the

application. This must be the social

security number of the adult household

member signing the application. If the

adult household member signing the

application does not possess a social

security number, he/she must indicate

so on the application. Provision of a

social security number is not

mandatory, but if a social security

number is not provided or an indication

is not made that the adult household

member signing the application does

not have one, the application cannot be

approved. This notice must be brought

to the attention of the household

member whose social security number

is disclosed. The social security number

may be used to identify the household

member in carrying out efforts to verify

the correctness of information stated on

the application. * * *

* * * * *

(4) * * * The institution shall take

the income information provided by the

household on the application and

calculate the household’s total current

income. * * *

* * * * *

(h) * * *

(2) * * *

(iii) Households shall be informed in

writing that they have been selected for

verification and they are required to

submit the requested verification

information to confirm their eligibility

for free or reduced-price benefits by

such date as determined by the State

agency. Those households shall be

informed of the type or types of

information and/or documents

acceptable to the State agency and the

name and phone number of an official

who can answer questions and assist the

household in the verification effort. This

information must include a social

security number for each adult

household member or an indication that

he/she does not have one. State agencies

shall inform selected households that:

(A) Section 9 of the National School

Lunch Act requires that, unless

households provide the child’s food

stamp or AFDC case number, or the

adult participant’s food stamp case

number or SSI or Medicaid assistance

identification number, those selected for

verification must provide the social

security number of each adult

household member;

(B) In lieu of providing a social

security number, an adult household

member may indicate that he/she does

not possess one;

(C) Provision of a social security

number is not mandatory, but if a social

security number is not provided for

each adult household member or an

indication is not made that he/she does

not possess one, benefits will be

terminated;

(D) The social security number may

be used to identify household members

in carrying out efforts to verify the

correctness of information stated on the

application and continued eligibility for

the program. These verification efforts

may be carried out through program

reviews, audits, and investigations and

may include contacting employers to

determine income, contacting Federal,

State or local agencies to determine

current certification for receipt of food

stamps or AFDC, SSI or Medicaid

benefits, contacting the State

employment security office to determine

the amount of benefits received, and

checking the documentation produced

by household members to prove the

amount of income received. These

efforts may result in loss or reduction of

benefits, administrative claims or legal

actions if incorrect information was

reported; and

(E) This information must be provided

to the attention of each adult household

member disclosing his/her social

security number. State agencies shall

ensure that the notice complies with

section 7 of Pub. L. 93–579 (Privacy Act

of 1974). These households shall be

provided with the name and phone

number of an official who can assist in

the verification effort.

* * * * *

Dated: April 30, 1996.

William E. Ludwig,

Administrator.

[FR Doc. 96–12851 Filed 5–21–96; 8:45 am]

BILLING CODE 3410–30–U