Food Distribution Program on Indian Reservations: Resource Limits and Exclusions, and Extended Certification Periods, 38155-38159 [E8-15003]

Agencies

• DEPARTMENT OF AGRICULTURE
• Food and Nutrition Service

[Federal Register Volume 73, Number 129 (Thursday, July 3, 2008)]
[Proposed Rules]
[Pages 38155-38159]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15003]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 73, No. 129 / Thursday, July 3, 2008 / 
Proposed Rules

[[Page 38155]]



DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Part 253

[FNS-2007-0042]
RIN 0584-AD12


Food Distribution Program on Indian Reservations: Resource Limits 
and Exclusions, and Extended Certification Periods

AGENCY: Food and Nutrition Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would amend regulations for the Food 
Distribution Program on Indian Reservations (FDPIR). The changes are 
intended to improve program service, ensure consistency between FDPIR 
and the Food Stamp Program, and respond to concerns expressed by the 
National Association of Food Distribution Programs on Indian 
Reservations (NAFDPIR) that the current FDPIR resource limit was 
insufficient for the target population and served as a barrier to 
participation. The proposed rule would increase the maximum level of 
allowable resources to the same level permitted under the Food Stamp 
Program (including annual adjustments for inflation in accordance with 
Section 4104 of the Food, Conservation, and Energy Act of 2008 (Pub. L. 
110-234)), allow a resource exclusion for the first $1,500 of the value 
of one pre-paid funeral arrangement per household member, and allow 
households in which all members are elderly and/or disabled to be 
certified for up to 24 months. The rule would also implement Section 
4107 of the Farm Security and Rural Investment Act of 2002 (Pub. L. 
107-171), which established a resource limit of $3,000 for Food Stamp 
Program households with a disabled member.

DATES: To be assured of consideration, comments must be received on or 
before September 2, 2008.

ADDRESSES: The Food and Nutrition Service (FNS) invites interested 
persons to submit comments on this proposed rule. You may submit 
comments identified by Regulatory Identifier Number (RIN) 0584-AD12, by 
any of the following methods:
     Fax: Submit comments by facsimile transmission to (703) 
305-2420.
     Disk or CD-ROM: Submit comments on disk to Lillie F. 
Ragan, Assistant Branch Chief, Policy Branch, Food Distribution 
Division, Food and Nutrition Service, U.S. Department of Agriculture, 
3101 Park Center Drive, Room 506, Alexandria, Virginia 22302-1594.
     Mail: Send comments to Lillie F. Ragan at the above 
address.
     Hand Delivery or Courier: Deliver comments to the above 
address.
     Federal eRulemaking Portal: Go to https://
www.regulations.gov, select ``Food and Nutrition Service'' from the 
agency drop-down menu, and click ``Submit.'' In the Docket ID column of 
the search results select ``FNS-2007-0042'' to submit or view public 
comments and to view supporting and related materials available 
electronically. Information on using Regulations.gov, including 
instructions for accessing documents, submitting comments, and viewing 
the docket after the close of the comment period, is available through 
the site's ``User Tips'' link.
    Comments submitted in response to this rule will be included in the 
record and will be made available to the public. Please be advised that 
the substance of the comments and the identity of the individuals or 
entities submitting the comments will be subject to public disclosure. 
The Department will make the comments publicly available on the 
Internet via https://www.regulations.gov. 
    All written submissions will be available for public inspection at 
the address above during regular business hours (8:30 a.m. to 5:30 
p.m.), Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Lillie F. Ragan at the above address, 
or telephone (703) 305-2662.

SUPPLEMENTARY INFORMATION:

I. Public Comment Procedures
II. Procedural Matters
III. Background and Discussion of the Proposed Rule

I. Public Comment Procedures

    Your written comments on this proposed rule should be specific, 
should be confined to issues pertinent to the proposed rule, and should 
explain the reason(s) for any change you recommend or proposal(s) you 
oppose. Where possible, you should reference the specific section or 
paragraph of the proposal you are addressing. Comments received after 
the close of the comment period (see DATES) will not be considered or 
included in the Administrative Record for the final rule.
    Executive Order 12866 requires each agency to write regulations 
that are simple and easy to understand. We invite your comments on how 
to make these regulations easier to understand, including answers to 
questions such as the following:
    (1) Are the requirements in the rule clearly stated?
    (2) Does the rule contain technical language or jargon that 
interferes with its clarity?
    (3) Does the format of the rule (e.g., grouping and order of 
sections, use of headings, and paragraphing) make it clearer or less 
clear?
    (4) Would the rule be easier to understand if it were divided into 
more (but shorter) sections?
    (5) Is the description of the rule in the preamble section entitled 
``Background and Discussion of the Proposed Rule'' helpful in 
understanding the rule? How could this description be more helpful in 
making the rule easier to understand?

II. Procedural Matters

A. Executive Order 12866

    This proposed rule has been determined to be significant, and was 
reviewed by the Office of Management and Budget (OMB) under Executive 
Order 12866.

B. Regulatory Impact Analysis

1. Need for Action
    This action is needed to ensure that regulations pertaining to 
certification period assignments for elderly and/or disabled households 
and resource standards are consistent between FDPIR and the Food Stamp 
Program and to reflect provisions contained in the Farm Security and 
Rural Investment Act of 2002 (Pub. L. 107-171), which established a 
resource limit of $3,000 for Food Stamp Program households with a

[[Page 38156]]

disabled member, and in Section 4104 of the Food, Conservation, and 
Energy Act of 2008 (Pub. L. 110-234), which established an annual 
inflation adjustment to the Food Stamp Program resource limits starting 
in fiscal year 2009.
2. Benefits
    This rule would amend FDPIR regulations by aligning several 
provisions with their counterparts in the Food Stamp Program. These 
regulatory changes are designed to help ensure that FDPIR benefits are 
provided to low-income households living on or near Indian reservations 
that are in need of nutrition assistance. Because FDPIR regulations 
regarding resource limits and exclusions would be altered by this rule, 
participation could potentially increase, thus expanding access to 
those eligible for the program and increasing nutritional benefits to 
the targeted population.
    FNS has projected the impact of each proposed change on FDPIR 
participation. However, we are unable to determine the total number of 
individuals that might be added as a result of this rule. An individual 
might benefit from more than one provision and the effect of the 
overlap could not be determined.
3. Cost
    This action is not expected to significantly increase costs of 
State and local agencies, or their commercial contractors, in using 
donated foods. The combined impact of the proposed changes in this 
rulemaking is projected to increase program costs by $90,000 in FY 2009 
and $473,000 over a five-year period (FY 2009-2013). These increased 
costs are attributable to potential increases in participation.

C. Regulatory Flexibility Act

    This proposed rule has been reviewed with regard to the 
requirements of the Regulatory Flexibility Act of 1980 (5 U.S.C. 601-
612). The Under Secretary for Food, Nutrition and Consumer Services has 
certified that this action will not have a significant impact on a 
substantial number of small entities. While program participants and 
Indian Tribal Organizations (ITOs) and State agencies that administer 
the FDPIR and the Food Distribution Program for Indian Households in 
Oklahoma (FDPIHO) will be affected by this rulemaking, the economic 
effect will not be significant.

D. Public Law 104-4

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and Tribal 
governments and the private sector. Under section 202 of the UMRA, the 
Department generally must prepare a written statement, including a 
cost/benefit analysis, for proposed and final rules with Federal 
mandates that may result in expenditures to State, local, or Tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any one year. When such a statement is needed for a 
rule, section 205 of the UMRA generally requires the Department to 
identify and consider a reasonable number of regulatory alternatives 
and adopt the least costly, more cost-effective or least burdensome 
alternative that achieves the objectives of the rule.
    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) that impose on State, local or 
Tribal governments or the private sector of $100 million or more in any 
one year. This rule is, therefore, not subject to the requirements of 
sections 202 and 205 of the UMRA.

E. Executive Order 12372

    The program addressed in this action is listed in the Catalog of 
Federal Domestic Assistance under No. 10.567. For the reasons set forth 
in the final rule in 7 CFR part 3015, subpart V and related Notice 
published at 48 FR 29114, June 24, 1983, the donation of foods in such 
programs is included in the scope of Executive Order 12372, which 
requires intergovernmental consultation with State and local officials.

F. Executive Order 13132

    Executive Order 13132 requires Federal agencies to consider the 
impact of their regulatory actions on State and local governments. 
Where such actions have federalism implications, agencies are directed 
to provide a statement for inclusion in the preamble to the regulations 
describing the agency's considerations in terms of the three categories 
called for under section (6)(b)(2)(B) of Executive Order 13132.
1. Prior Consultation With Tribal/State Officials
    The programs affected by the regulatory proposals in this rule are 
all Tribal or State-administered, federally funded programs. FNS' 
national headquarters and regional offices have formal and informal 
discussions with State officials on an ongoing basis regarding program 
issues relating to the distribution of donated foods. FNS meets 
annually with the National Association of Food Distribution Programs on 
Indian Reservations (NAFDPIR), a national group of State agencies, to 
discuss issues relating to food distribution.
2. Nature of Concerns and the Need To Issue This Rule
    This rule is intended to provide consistency between FDPIR and the 
Food Stamp Program in regard to certification period assignments for 
elderly and/or disabled households and resource standards. The rule was 
prompted, in part, by a resolution passed by NAFDPIR in fiscal year 
2000. NAFDPIR expressed concern that the current FDPIR resource limit 
was insufficient for the target population and served as a barrier to 
participation. The rule was also prompted, in part, by a provision 
contained in the Farm Security and Rural Investment Act of 2002 (Pub. 
L. 107-171), enacted on May 13, 2002. Section 4107 of Public Law 107-
171 established a Food Stamp Program resource limit of $3,000 for 
households with a disabled member. Section 4104 of the Food, 
Conservation, and Energy Act of 2008 (Pub. L. 110-234), enacted on May 
22, 2008, established an annual inflation factor adjustment to the Food 
Stamp Program resource limits. This provision is effective October 1, 
2008. The other regulatory provisions proposed in this rule are also 
consistent with Food Stamp Program provisions.
3. Extent to Which We Meet Those Concerns
    The Department has considered the impact of the proposed rule on 
State agencies. The Department does not expect the provisions of this 
rule to conflict with any State or local law, regulations or policies. 
The overall effect of this rule is to ensure that low-income households 
living on or near Indian reservations receive nutrition assistance. 
This rule would ensure consistency between FDPIR and the Food Stamp 
Program in regard to certification period assignments for elderly and/
or disabled households and resource standards.

G. Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Although the provisions of this rule are not 
expected to conflict with any State or local law, regulations, or 
policies, the rule is intended to have preemptive effect with respect 
to any State or local laws, regulations or policies that conflict with 
its provisions or that would otherwise impede its full

[[Page 38157]]

implementation. This rule is not intended to have retroactive effect. 
Prior to any judicial challenge to the provisions of this rule or the 
application of its provisions all applicable administrative procedures 
must be exhausted.

H. Civil Rights Impact Analysis

    The Department has reviewed this rule in accordance with the 
Department Regulation 4300-4, ``Civil Rights Impact Analysis,'' to 
identify and address any major civil rights impacts the rule might have 
on minorities, women, and persons with disabilities. After a careful 
review of the rule's intent and provisions, the Department has 
determined that this rule will not in any way limit or reduce the 
ability of participants to receive the benefits of donated foods in 
food distribution programs on the basis of an individual's or group's 
race, color, national origin, sex, age, political beliefs, religious 
creed, or disability. The Department found no factors that would 
negatively and disproportionately affect any group of individuals.

I. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35; see 5 
CFR part 1320) requires that OMB approve all collections of information 
by a Federal agency from the public before they can be implemented. 
Respondents are not required to respond to any collection of 
information unless it displays a current valid OMB control number. This 
proposed rule does not contain any new information collection 
requirements subject to review and approval by OMB.

J. E-Government Act Compliance

    The Department is committed to complying with the E-Government Act 
to promote the use of the Internet and other information technologies 
to provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

III. Background and Discussion of the Proposed Rule

    The Department is proposing to amend the regulations for FDPIR at 7 
CFR part 253. The changes would improve program service by: (1) 
Bringing the maximum level of allowable resources in line with the Food 
Stamp Program, including the establishment of a resource limit of 
$3,000 for households with a disabled member and an annual inflation 
adjustment to the resource limits starting in fiscal year 2009; (2) 
allowing a resource exclusion for the first $1,500 of the value of one 
pre-paid funeral arrangement per household member; and (3) allowing 
households in which all members are elderly and/or disabled to be 
certified for up to 24 months. These changes would also impact the 
operation of the Food Distribution Program for Indian Households in 
Oklahoma (FDPIHO), 7 CFR part 254, under which the eligibility and 
certification provisions of 7 CFR part 253 are adopted by reference at 
7 CFR 254.5(a).
    In the following discussion and regulatory text, the term ``State 
agency,'' as defined at 7 CFR 253.2, is used to include ITOs authorized 
to operate FDPIR and FDPIHO in accordance with 7 CFR parts 253 and 254. 
The term ``FDPIR'' is used in this proposed rule to refer collectively 
to FDPIR and FDPIHO.

A. Bring the Maximum Level of Allowable Resources in Line With the Food 
Stamp Program

    This proposed rule would amend 7 CFR 253.6(d)(1) to bring the 
maximum level of allowable resources in FDPIR in line with those 
established for the Food Stamp Program under Section 5(g) of the Food 
Stamp Act of 1977 (7 U.S.C. 2014(g)). This would mean: (1) Establishing 
a new resource limit of $3,000 for households with a disabled member; 
(2) increasing the resource limit from $1,750 to $2,000 for households 
without elderly or disabled members; and (3) adjusting the above 
resource limits for inflation on an annual basis starting in fiscal 
year 2009, in accordance with Section 4104 of Public Law 110-234.
    The Department is proposing an additional change to ensure 
consistency with the Food Stamp Program in the treatment of the 
resources of elderly households. The Food Stamp Program allows all 
households that include one or more elderly members to have a resource 
limit of $3,000. Under FDPIR, only households with two or more elderly 
members are allowed a resource limit of $3,000. This rule proposes to 
amend 7 CFR 253.6(d)(1) to allow one-person elderly households to have 
a resource limit of $3,000.
    As indicated above, the resource limits would be adjusted for 
inflation on an annual basis starting in fiscal year 2009, in 
accordance with Section 4104 of Public Law 110-234. That section of the 
Act requires the annual adjustment of the Food Stamp Program resource 
standards to reflect changes in the Consumer Price Index for All Urban 
Consumers for the 12-month period ending the preceding June. The 
Consumer Price Index is published by the Bureau of Labor Statistics of 
the U.S. Department of Labor. This rule proposes to amend 7 CFR 
253.6(d) to ensure that the FDPIR resource standards reflect the annual 
adjustments made to the Food Stamp Program resources standards.
    This rule also proposes to amend 7 CFR 253.7(c)(1), which contains 
the requirement that households report within 10 days when their 
countable resources exceed $1,750. This provision would be revised to 
specify that households must report within 10 days when their countable 
resources exceed the applicable maximum allowable limit. Also, this 
rule proposes to clarify 7 CFR 253.7(c)(1) to specify that the 
referenced 10-day period means 10 calendar days.
    The current regulations for FDPIR do not define ``elderly'' or 
``disabled''. Since FDPIR serves as an alternative nutrition assistance 
program to the Food Stamp Program, this rule proposes the adoption of 
the definitions used under the Food Stamp Program at 7 CFR 271.2. 
Accordingly, this rule proposes to amend 7 CFR 253.2 to include the 
definitions for elderly and disabled used under the Food Stamp Program.

B. Resource Exclusion for the First $1,500 of the Value of One Pre-Paid 
Funeral Arrangement per Household Member

    The National Association of Food Distribution Programs on Indian 
Reservations has expressed concerns, in the form of a resolution passed 
by that Association, regarding households that are determined 
ineligible for FDPIR because of resources earmarked for funeral 
expenses. Families commonly commingle funds earmarked for funeral 
expenses with other household savings. Generally, there is no 
verifiable way to distinguish the funds held for funeral expenses from 
a household's general savings, which are considered available to the 
household for normal living expenses. To resolve this issue, Food Stamp 
Program regulations (7 CFR 273.8(e)(2)) allow a resource exclusion for 
``the value of one bona fide funeral agreement per household member, 
provided that the agreement does not exceed $1,500 in equity value, in 
which event the value above $1,500 is counted.'' This provision allows 
each household member to ensure that the cost of their funeral will be 
covered, without jeopardizing the household's eligibility for food 
stamp benefits.
    This rule proposes to amend the regulations at 7 CFR 253.6(d)(2)(i) 
to ensure consistent treatment of pre-paid funeral agreements between 
FDPIR and the Food Stamp Program by allowing a resource exclusion for 
the first $1,500 of

[[Page 38158]]

the equity value of one pre-paid funeral agreement per household 
member. A pre-paid funeral agreement is a pre-need agreement, or 
contract, with a bona fide funeral home, cemeterian, burial planner, 
etc., for funeral and/or burial services. As with other excluded 
resources, verification would not be required unless the information 
provided by the household is questionable (see 7 CFR 253.7(a)(6)(ii)).

C. Extend Certification Periods Up to 24 Months for Households in Which 
All Members Are Elderly or Disabled

    This rule proposes to amend the regulations at 7 CFR 253.7(b)(2) to 
allow households in which all members are elderly and/or disabled to be 
certified for up to 24 months. Under current policy, certification 
periods are assigned according to the stability of a household's 
circumstances. Households consisting entirely of persons who only 
receive unearned income, such as Supplemental Security Income or Social 
Security payments, may be certified for up to 12 months, provided other 
household circumstances are expected to remain stable.
    In accordance with Section 801 of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (Pub. L. 193-104), which 
amended Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)), 
the Department published a final rulemaking (65 FR 70134) on November 
21, 2000, that implemented the above provision under the Food Stamp 
Program. This provision would also benefit the elderly and disabled 
participants of FDPIR. The elderly and/or disabled households often 
have stable incomes, and their other household circumstances change 
infrequently. Also, because of health and transportation problems, 
these households often have difficulty in attending face-to-face 
interviews.
    Accordingly, this rule proposes to amend 7 CFR 253.7(b)(2) to state 
that FDPIR certification periods cannot exceed 12 months, except that 
households in which all adult members are elderly and/or disabled, as 
defined in the proposed definition at 7 CFR 253.2, may be certified for 
up to 24 months. This rule also proposes to require that the State 
agency must contact the household every 12 months. This means that if a 
household in which all adult members are elderly and/or disabled is 
certified for 24 months, the State agency would be required to have at 
least one direct contact with the household by the end of the first 12 
months. The purpose of the contact is to determine: (1) That the 
household wishes to continue to participate in FDPIR; and (2) whether 
there are any changes in household circumstances that would warrant a 
redetermination of eligibility or a change in benefit level. In most 
cases, this contact could be made when the household receives its 
monthly distribution at the warehouse or tailgate site. However, some 
elderly and/or disabled households may rely on authorized 
representatives to pick up their commodities each month. In these 
instances, the State agency would be required to employ another method 
to contact the household. The State agency may use any method(s) it 
chooses for this contact, such as a telephone call or home visit. 
Contact with the authorized representative would not satisfy this 
requirement--a household member must be contacted. As with all actions 
taken by the State agency, the contact with the household must be 
documented in the case file to include the date of contact, method of 
contact, name of person contacted, whether the household wishes to 
continue to participate, and whether changes in household circumstances 
would warrant a redetermination of eligibility or a change in benefit 
level.

List of Subjects in 7 CFR Part 253

    Administrative practice and procedure, Food assistance programs, 
Grant programs, Social programs, Indians, Reporting and recordkeeping 
requirements, Surplus agricultural commodities.

    Accordingly, 7 CFR part 253 is proposed to be amended as follows:

PART 253--ADMINISTRATION OF THE FOOD DISTRIBUTION PROGRAM FOR 
HOUSEHOLDS ON INDIAN RESERVATIONS

    1. The authority citation for 7 CFR part 253 is revised to read as 
follows:

    Authority: 91 Stat. 958 (7 U.S.C. 2011-2036).

    2. In Sec.  253.2:
    a. Remove paragraph designations (a) through (j) and list the 
definitions in alphabetical order.
    b. Add new definitions entitled ``Disabled member'' and ``Elderly 
member'' in alphabetical order to read as follows:


Sec.  253.2  Definitions.

    Disabled member means a member of a household who:
    (1) Receives supplemental security income benefits under title XVI 
of the Social Security Act or disability or blindness payments under 
titles I, II, X, XIV, or XVI of the Social Security Act;
    (2) Receives federally- or State-administered supplemental benefits 
under section 1616(a) of the Social Security Act provided that the 
eligibility to receive the benefits is based upon the disability or 
blindness criteria used under title XVI of the Social Security Act;
    (3) Receives federally- or State-administered supplemental benefits 
under section 212(a) of Public Law 93-66;
    (4) Receives disability retirement benefits from a governmental 
agency because of a disability considered permanent under section 
221(i) of the Social Security Act;
    (5) Is a veteran with a service-connected or non-service-connected 
disability rated by the Veteran's Administration (VA) as total or paid 
as total by the VA under title 38 of the United States Code;
    (6) Is a veteran considered by the VA to be in need of regular aid 
and attendance or permanently housebound under title 38 of the United 
States Code;
    (7) Is a surviving spouse of a veteran and considered by the VA to 
be in need of regular aid and attendance or permanently housebound or a 
surviving child of a veteran and considered by the VA to be permanently 
incapable of self-support under title 38 of the United States Code;
    (8) Is a surviving spouse or surviving child of a veteran and 
considered by the VA to be entitled to compensation for a service-
connected death or pension benefits for a non-service-connected death 
under title 38 of the United States Code and has a disability 
considered permanent under section 221(i) of the Social Security Act. 
``Entitled'' as used in this definition refers to those veterans' 
surviving spouses and surviving children who are receiving the 
compensation or pension benefits stated or have been approved for such 
payments, but are not yet receiving them;
    (9) Receives an annuity payment under: Section 2(a)(1)(iv) of the 
Railroad Retirement Act of 1974 and is determined to be eligible to 
receive Medicare by the Railroad Retirement Board; or section 
2(a)(1)(v) of the Railroad Retirement Act of 1974 and is determined to 
be disabled based upon the criteria used under title XVI of the Social 
Security Act; or
    (10) Is a recipient of interim assistance benefits pending the 
receipt of Supplemented Security Income, a recipient of disability 
related medical assistance under title XIX of the Social Security Act, 
or a recipient of disability-based State general assistance benefits 
provided that the eligibility to receive any of these benefits is based 
upon disability or blindness criteria

[[Page 38159]]

established by the State agency, which are at least as stringent as 
those used under title XVI of the Social Security Act (as set forth at 
20 CFR Part 416, Subpart I, Determining Disability and Blindness as 
defined in Title XVI).
    Elderly member means a member of a household who is sixty years of 
age or older.
* * * * *
    3. In Sec.  253.6:
    a. Amend paragraph (d)(1) by revising the second sentence;
    b. Revise paragraph (d)(2)(i).
    The revisions and addition read as follows:


Sec.  253.6  Eligibility of households.

* * * * *
    (d) * * *
    (1) * * * The household's maximum allowable resources shall not 
exceed the limits established for the Food Stamp Program.
    (2) * * *
    (i) The cash value of life insurance polices; pension funds, 
including funds in pension plans with interest penalties for early 
withdrawals, such as a Keogh plan or an Individual Retirement Account, 
as long as the funds remain in the pension plans; and the first $1,500 
of the equity value of one bona fide pre-paid funeral agreement per 
household member.
* * * * *
    4. In Sec.  253.7:
    a. Amend paragraph (b)(2)(iii) by removing the last sentence;
    b. Add new paragraph (b)(2)(iv);
    c. Amend paragraph (c)(1) by revising the third sentence;
    The revision and addition read as follows:


Sec.  253.7  Certification of households.

* * * * *
    (b) * * *
    (2) * * *
    (iv) In no event may a certification period exceed 12 months, 
except that households in which all adult members are elderly and/or 
disabled may be certified for up to 24 months. Households assigned 
certification periods that are longer than 12 months must be contacted 
by the State agency at least once every 12 months to determine if the 
household wishes to continue to participate in the program and whether 
there are any changes in household circumstances that would warrant a 
redetermination of eligibility or a change in benefit level. The State 
agency may use any method it chooses for this contact, including a 
face-to-face interview, telephone call or a home visit. Contact with 
the household's authorized representative would not satisfy this 
requirement; the State agency must contact a household member. The case 
file must document the contact with the household and include the date 
of contact, method of contact, name of person contacted, whether the 
household wishes to continue to participate, and whether changes in 
household circumstances would warrant a redetermination of eligibility 
or a change in benefit level.
* * * * *
    (c) * * *
    (1) * * * Households must also report within 10 calendar days when 
countable resources, which are identified in Sec.  253.6(d)(2), exceed 
the maximum allowable limits as described at Sec.  253.6(d)(1). * * *
* * * * *

    Dated: June 25, 2008.
Nancy Montanez Johner,
Under Secretary, Food, Nutrition, and Consumer Services.
[FR Doc. E8-15003 Filed 7-2-08; 8:45 am]
BILLING CODE 3410-30-P