Supplemental Nutrition Assistance Program (SNAP): Eligibility, Certification, and Employment and Training Provisions, 25414-25458 [2011-10151]

Agencies

• DEPARTMENT OF AGRICULTURE
• Food and Nutrition Service

[Federal Register Volume 76, Number 86 (Wednesday, May 4, 2011)]
[Proposed Rules]
[Pages 25414-25458]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-10151]



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Vol. 76

Wednesday,

No. 86

May 4, 2011

Part II





Department of Agriculture





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Food and Nutrition Service



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7 CFR Parts 271, 272 and 273



Supplemental Nutrition Assistance Program (SNAP): Eligibility, 
Certification, and Employment and Training Provisions; Proposed Rule

Federal Register / Vol. 76 , No. 86 / Wednesday, May 4, 2011 / 
Proposed Rules

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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Parts 271, 272, and 273

RIN 0584-AD87


Supplemental Nutrition Assistance Program (SNAP): Eligibility, 
Certification, and Employment and Training Provisions

AGENCY: Food and Nutrition Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would implement provisions of the Food, 
Conservation and Energy Act of 2008 (FCEA) affecting the eligibility, 
benefits, certification, and employment and training (E&T) requirements 
for applicant or participant households in the Supplemental Nutrition 
Assistance Program (SNAP). The rule would amend the SNAP regulations 
to: Exclude military combat pay from the income of SNAP households; 
raise the minimum standard deduction and the minimum benefit for small 
households; eliminate the cap on the deduction for dependent care 
expenses; index resource limits to inflation; exclude retirement and 
education accounts from countable resources; permit States to expand 
the use of simplified reporting; permit States to provide transitional 
benefits to households leaving State-funded cash assistance programs; 
allow States to establish telephonic signature systems; permit States 
to use E&T funds to provide post-employment job retention services; and 
limit the E&T funding cycle to 15 months. These provisions are intended 
to increase SNAP benefit levels for certain participants, reduce 
barriers to participation, and promote efficiency in the administration 
of the program.

DATES: Comments must be received on or before July 5, 2011.

ADDRESSES: The Food and Nutrition Service (FNS) invites interested 
persons to submit comments on this proposed rule. Comments may be 
submitted by any of the following methods:
    Federal eRulemaking Portal: Preferred method. Go to https://www.regulations.gov; follow the online instructions for submitting 
comments on Docket FNS-2011-0008.
    FAX: Submit comments by facsimile transmission to (703) 305-2486, 
attention: Lizbeth Silbermann.
    Mail: Send comments to Lizbeth Silbermann, Director, Program 
Development Division, FNS, 3101 Park Center Drive, Room 810, 
Alexandria, Virginia, 22302, (703) 305-2494.
    Hand delivery or Courier: Deliver comments to Ms. Silbermann at the 
above address.
    All comments on this proposed 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. 
FNS will make the comments publicly available on the Internet via 
https://www.regulations.gov. All submissions will be available for 
public inspection at FNS during regular business hours (8:30 a.m. to 5 
p.m., Monday through Friday) at 3101 Park Center Drive, Room 810, 
Alexandria, Virginia 22302-1594.

FOR FURTHER INFORMATION CONTACT: Angela Kline, Chief, Certification 
Policy Branch, Program Development Division, FNS, USDA, at the above 
address or by telephone at (703) 305-2495.

SUPPLEMENTARY INFORMATION:

I. Background

What acronyms or abbreviations are used in this supplementary 
discussion of the proposed provisions?

    In the discussion of the proposed provisions in this rule, we use 
the following acronyms or other abbreviations to stand in for certain 
words or phrases:


------------------------------------------------------------------------
                                             Acronym,  Abbreviation,  or
                  Phrase                               Symbol
------------------------------------------------------------------------
Code of Federal Regulations...............  CFR
Federal Register..........................  FR
Federal Fiscal Year.......................  FY
Food and Nutrition Act of 2008............  Act
Food and Nutrition Service................  FNS or we
Food, Conservation and Energy Act of 2008   FCEA
 (Pub. L. 110-246).
Food, Security and Rural Investment Act of  FSRIA
 2002 (Pub. L. 107-171).
Secretary of the U.S. Department of         Secretary
 Agriculture.
Section (when referring to Federal          Sec.
 regulations).
Supplemental Nutrition Assistance Program.  SNAP
Temporary Assistance for Needy Families...  TANF
United States Code........................  U.S.C.
U.S. Department of Agriculture............  the Department or we
------------------------------------------------------------------------

What changes in the law triggered the need for this proposed rule?

    The Food, Conservation and Energy Act of 2008 (Pub. L. 110-246) 
(FCEA), which was enacted on June 18, 2008, amended and renamed the 
Food Stamp Act of 1977, 7 U.S.C. 2011, et seq., as the Food and 
Nutrition Act of 2008 (the Act). The FCEA also renamed the ``Food Stamp 
Program'' as the ``Supplemental Nutrition Assistance Program'' (SNAP) 
and made numerous amendments to the benefits and operation of the 
program. This rule proposes to codify into the SNAP regulations 12 
provisions from the FCEA and also to make conforming nomenclature 
changes throughout part 273 of the SNAP regulations, including the 
change to the program's name. In addition, this rule proposes two 
changes to the SNAP certification and eligibility regulations to 
provide State options that are currently available to State agencies 
only through waiver requests. Finally, in Sec.  273.12, this rule 
proposes to clarify the applicability of various provisions to 
different client reporting systems. The provisions included in this 
rule affect the eligibility, benefits, and certification of program 
participants as well as the E&T portion of the program.

When were States required to implement the statutorily-based provisions 
covered in this rulemaking?

    The statutory provisions covered in this rule were effective on 
October 1, 2008. Many of the eligibility, certification and E&T 
provisions included in this proposed rule were mandated by the FCEA to 
be implemented by State agencies on October 1, 2008. These provisions 
with corresponding FCEA sections include:
     Section 4001--Changing the program name;
     Section 4101--Excluding military combat pay;
     Section 4102--Raising the standard deduction for small 
households;
     Section 4103--Eliminating the dependent care deduction 
caps;
     Section 4104(a)--Indexing the resource limits;
     Section 4104(b)--Excluding retirement accounts from 
resources;
     Section 4104(c)--Excluding education accounts from 
resources;
     Section 4107--Increasing the minimum benefit for small 
households; and
     Section 4122--Funding cycles for E&T programs.
    The FCEA created new program options that State agencies may 
include in their administration of the program. State agencies were 
also permitted to implement these provisions on October 1, 2008. These 
provisions, which are addressed in this rule, are identified below with 
the corresponding FCEA section:
     Section 4105--Expanding simplified reporting;

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     Section 4106--Expanding transitional benefits option;
     Section 4108--E&T funding of job retention services; and
     Section 4119--Telephonic signature systems.
    Still other FCEA provisions, which are not addressed in this 
proposed rule, cannot be implemented by State agencies until the final 
regulations are issued by the Department. FNS informed State agencies 
of implementation timeframes for all SNAP provisions in the FCEA in a 
memorandum dated July 3, 2008. The information also included a basic 
description of the statutory provisions and can be found on the FNS Web 
site at: https://www.fns.usda.gov/snap/whats_new.htm.

What changes are proposed in this rule?

1. Program Name Change and Other Conforming Nomenclature Changes, 
Section 4001
    Why did the law change the program's name?
    Section 4001 of the FCEA changed the name of the program from the 
``Food Stamp Program'' to the ``Supplemental Nutrition Assistance 
Program'' or ``SNAP''. This change in name reflects the fact that 
participants no longer receive stamps or coupons to make food 
purchases. The process of changing from paper coupons to electronic 
benefit transfer (EBT) cards began as a pilot project in 1984; the EBT 
system became available nationwide in June 2004. The FCEA de-obligated 
all remaining food coupons as legal tender for SNAP purchases on June 
18, 2009.
    Additionally, the new name reflects a focus on the nutritional 
aspect of the program. SNAP not only provides food assistance to low-
income people, but also promotes nutrition to improve their health and 
well-being.
    Do State agencies have to use the new program name, SNAP?
    No. Although the official name of the program was changed on 
October 1, 2008, State agencies may continue to use State-specific 
names for SNAP. The Department has encouraged State agencies, however, 
to discontinue the use of the name, ``Food Stamp Program''.
    Did the law make other name changes?
    Yes. Section 4001 of the FCEA also changed the name of the statute 
that governs the program from the Food Stamp Act of 1977 to the Food 
and Nutrition Act of 2008. This change was also effective on October 1, 
2008.
    What name changes does this rule propose to make?
    This rule proposes to make the following name changes in 7 CFR part 
273 of the SNAP regulations:

------------------------------------------------------------------------
             Previous name                           New name
------------------------------------------------------------------------
Food Stamp Program.....................  Supplemental Nutrition
                                          Assistance Program (SNAP).
Food Stamp Act of 1977.................  Food and Nutrition Act of 2008.
food stamp.............................  SNAP.
food coupons...........................  SNAP benefits or benefits.
food stamps............................  SNAP benefits or benefits.
------------------------------------------------------------------------

    Will these changes be made to the other Parts of the SNAP 
regulations?
    Yes. We will publish other proposed or final rulemakings that will 
make these changes in other parts of the SNAP regulations.
    Are there extensive revisions in part 273 resulting from these 
nomenclature changes?
    Yes. This rule proposes to revise Sec. Sec.  273.11(e) and 
273.11(f) to update the procedures for providing benefits via EBT cards 
to residents of drug and alcohol treatment and rehabilitation centers 
and residents of group living arrangements. These procedures are 
already in use by these types of centers; only the regulatory 
description of the procedures is being updated.
2. Income Exclusions and Deductions: Military Combat-Related Pay 
Exclusion, Section 4101
    What is the Combat-Related Pay Exclusion?
    Section 4101 of FCEA amended section 5(d) of the Act (7 U.S.C. 
2014(d)) to exclude special pay to United States Armed Services members 
that is received in addition to basic pay as a result of the member's 
deployment or service in a designated combat zone. The exclusion 
includes any special pay received pursuant to 37 U.S.C., Chapter 5 and 
any other payment that is authorized by the Secretary. To qualify for 
the exclusion, the pay must be received as a result of deployment to or 
service in a combat zone and must not have been received prior to 
deployment. Combat-related pay was first authorized as a SNAP exclusion 
in 2005 under the Consolidated Appropriations Act of 2005 (Pub. L. 108-
447). The exclusion was subsequently renewed annually through 
appropriation legislation.
    What is a Combat Zone?
    A combat zone is any area that the President of the United States 
designates by Executive Order as an area in which the U.S. Armed Forces 
are engaging or have engaged in combat.
    How is FNS proposing to implement this exclusion in the SNAP 
regulations?
    We propose to add a new paragraph (20) to Sec.  273.9(c) to exclude 
combat-related pay received by a household from a person who is serving 
in the U.S. Armed Forces who is deployed to or serving in a Federally-
designated combat zone. We propose to define combat-related pay as 
income received by the household member under 37 U.S.C., Chapter 5 or 
as otherwise designated by the Secretary. Combat-related income is 
excluded if it is:
     Received in addition to the service member's basic pay;
     Received as a result of the service member's deployment to 
or service in an area that has been designated as a combat zone; and
     Not received by the service member prior to his/her 
deployment to or service in the designated combat zone.
    How would combat-related pay be verified?
    For individuals deployed to or serving in a combat zone, the amount 
of income received by or from the individual that is combat-related 
must be determined. This includes itemized combat-related payments 
authorized under 37 U.S.C., Chapter 5 in addition to any other combat-
related payments authorized by the Secretary which were not received 
immediately prior to the deployment to or service in the combat zone. 
Although the specific means of verifying this information may vary by 
U.S. military service and by local area, a number of sources may be 
considered. Information regarding deployment to or service in a combat 
zone may be available via earnings and leave statements, military 
orders or public records on deployment of military units.
    Does all income received by the service member in a combat zone 
qualify for the exclusion?
    No. Only those funds authorized pursuant to 37 U.S.C., Chapter 5 or 
otherwise authorized by the Secretary that are provided as a result of 
deployment to or service in a combat zone qualify for the exclusion. 
Funds received by a household prior to the service member's deployment 
are included as household income requiring the State agency to 
differentiate between the service member's ``regular'' pay and combat-
related pay to determine the excluded amount. For example, consider a 
service member who typically provides a household with $500 a month 
prior to deployment; however, after deployment the service member 
receives an additional $200 in combat-related pay and makes that pay 
available to the household. As a result, the family receives a total of 
$700 a month, but only $500 is counted as income because the additional 
$200 is combat-related.

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    Is the deployed military member considered a household member?
    Military personnel who have been deployed are not included as 
household members for purposes of determining SNAP benefits as they are 
not living with the remaining eligible members of the household. 
However, income made available to the household by the deployed 
military member is considered household income, unless it is otherwise 
excluded under program rules.
3. Income Exclusions and Deductions: Standard Deduction Increase, 
Section 4102
    What is the standard deduction?
    The standard deduction was established under the Food Stamp Act of 
1977, which eliminated certain deductions and created a single standard 
deduction available to all households. The standard deduction is 
subtracted from a household's gross monthly income to determine a SNAP 
household's net income and to calculate the benefit amount, if 
eligible.
    How has the standard deduction changed over the years?
    The Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996 (PRWORA) (Pub. L. 104-193), froze the standard deduction at 
$134 for all households residing in the 48 States and the District of 
Columbia. The Food, Security and Rural Investment Act of 2002 (Pub. L. 
107-171) (FSRIA) replaced the $134 standard deduction with a deduction 
that varied according to household size and was adjusted annually for 
cost-of-living increases. For households in the 48 contiguous States 
and the District of Columbia, Alaska, Hawaii, and the U.S. Virgin 
Islands, FSRIA set the deduction at 8.31 percent of the applicable net 
income limit based on household size and stipulated that no SNAP 
household may receive an amount less than the 2002 deduction amount 
($134 for most households) or more than the current standard deduction 
for a six-person household. Households residing in Guam receive a 
somewhat higher deduction.
    What changes did the FCEA make to the standard deduction?
    Section 4102 of the FCEA amended section 5(e) of the Act (7 U.S.C. 
2014(e)) to raise the minimum standard deduction for one, two, or three 
person households from $134 to $144. This change was effective in FY 
2009 for the 48 contiguous States and the District of Columbia. In 
addition, it changed the minimum standard deduction amounts for Alaska, 
Hawaii, the U.S. Virgin Islands, and Guam to $246, $203, $127, and 
$289, respectively. Beginning in FY 2010 and each fiscal year 
thereafter, FCEA indexed the minimum standard deduction to inflation.
    How is the minimum standard deduction indexed to inflation?
    Beginning FY 2010, the amount of the minimum standard deduction is 
adjusted each year on October 1 to reflect changes in the Consumer 
Price Index for All Urban Consumers (CPI-U) published by the Bureau of 
Labor Statistics of the Department of Labor, for items other than food. 
The amount is calculated based on the previous fiscal year amount 
adjusted for changes in the CPI-U for the 12-month period ending on the 
preceding June 30, rounded down to the nearest dollar.
    How does FNS plan to incorporate this change in the regulations?
    FNS is proposing to amend the regulations at Sec.  273.9(d)(1)(iii) 
to incorporate the FCEA changes in the minimum standard deduction. In 
addition, FNS plans to correct the citation at Sec.  273.12(e)(1)(B) 
from Sec.  273.9(d)(7) to Sec.  273.9(d)(1).
    How does increasing the minimum standard deduction affect eligible 
SNAP households?
    Increasing the minimum standard deduction strengthens the food 
purchasing power of low-income households, including working families 
with children, the elderly and disabled on fixed incomes, and 
individuals who have lost jobs due to economic conditions. This change 
will be of significant impact to smaller households of three or fewer 
people, primarily in the 48 contiguous States and DC, who would 
otherwise qualify for a smaller deduction and lower benefit amounts 
without the minimum standard. Adjusting the minimum standard deduction 
each fiscal year also protects eligible SNAP households from any future 
erosion in benefits due to inflation.
4. Income Exclusions and Deductions: Eliminating the cap on Dependent 
Care Expenses, Section 4103
    How does this change affect SNAP households?
    A deduction for dependent care costs is currently available when a 
SNAP household member must work, perform job seeking activities, attend 
required employment and training activities, or attend college or 
training in order to get a job. The deduction amount had been capped 
since 1993 at $200 per month for children under the age of 2 years and 
$175 for other dependents. Section 4103 of the FCEA amended section 
5(e)(3) of the Act (7 U.S.C. 2014(e)(3)) by eliminating the caps on the 
deduction for dependent care expenses and allowing eligible households 
to deduct the full amount of their dependent care costs.
    When was this change effective?
    The change was effective October 1, 2008. State agencies were 
required to implement the provision for new households applying for 
benefits as of that date. For ongoing households already on the 
program, the Department encouraged State agencies to implement the 
change in the deduction amount as soon as possible on or after October 
1, 2008, on a case-by-case basis, at the first opportunity to enter the 
household's case file.
    Why was this change made?
    Prior to the FCEA, the caps on the dependent care deduction had not 
been adjusted for many years and no longer reflected the actual 
dependent care costs that low-income households pay. Eliminating the 
caps ties the deduction to actual expenses and reflects these costs in 
determining assistance to working families.
    How is the Department proposing to revise the deduction for 
dependent care costs?
    We propose to amend Sec. Sec.  273.9(d)(4) and 273.10(e)(1)(i)(E) 
to eliminate the caps. We propose to clarify that in addition to direct 
payments made to the care provider for the actual cost of care, the 
expenses of transporting dependents to and from care and separate 
activity fees charged by the care provider that are required for the 
care arrangement are also deductible. We also propose to incorporate at 
Sec.  273.9(d)(4) longstanding guidance that defines dependent care to 
include children through the age of 15 as well as incapacitated persons 
of any age that are in need of dependent care. Finally, we propose to 
restore language to that section that permits households to deduct 
dependent care costs if a household member needs care for a dependent 
in order to seek employment. This provision was inadvertently removed 
from the regulations as part of a 1989 technical amendment to the 
regulations. Dependent care costs would be deductible for job seeking 
household members who are either complying with E&T requirements or an 
equivalent State agency job search requirement.
    What are actual costs of care?
    Section 5(e)(3) of the Act specifies that the actual costs that are 
necessary for the care of a dependent may be deducted if the care 
enables a household member to accept or continue employment, or to 
participate in training or education in preparation for employment. In 
the preamble to the proposed rule to implement the provisions of the 
Food Stamp Act of 1977 (43 FR 18890), published on May

[[Page 25417]]

2, 1978, FNS stated that the dependent care deduction applies only to 
the direct compensation to the care provider. Since then, FNS has 
provided guidance on specific situations to determine ``actual costs of 
care'' or whether care was needed for employment or to prepare for 
employment. In some instances, this limited guidance defined these 
costs more broadly than the 1978 interpretation, particularly 
concerning the transportation of dependents to and from care.
    What are other dependent care expenses?
    In addition to direct payments to the care provider, we propose to 
permit households to deduct other out-of-pocket costs that are part of 
the total cost of dependent care incurred by SNAP households and 
necessary for the household to participate in or maintain the care 
arrangement. The following types of dependent care expenses would be 
deductible under this proposal:
     Transportation costs to and from the care facility; and
     Activity fees associated with structured care programs.
    Only those expenses that are separately identified, necessary to 
participate in the care arrangement, and not already paid by another 
source on behalf of the household would be deductible. Under current 
SNAP regulations at Sec.  273.2(f)(2) and Sec.  273.2(f)(3), State 
agencies may require households to verify any dependent care expenses 
and must verify any questionable information.
    Why include transportation?
    The Department has three reasons for including the expenses of 
transportation as part of the actual costs of dependent care. First, 
the removal of the dependent care caps by the FCEA indicates an 
important shift by Congress in recognizing that associated costs 
represent a major expense for working households. Second, a consistent 
national policy on this issue is needed. Despite FNS' initial 
interpretation (in the preamble to the 1978 proposed rule) limiting 
dependent care deductible expenses to direct payments to a dependent 
care provider, subsequent interpretations indicated that the cost of 
transporting dependents to and from care facilities were allowable. In 
the absence of a consistent national policy, some State agencies 
developed policies that permit the deduction of transportation costs 
and other dependent care costs. Third, during the floor discussions in 
both houses of Congress prior to the passage of the FCEA, members of 
Congress expressed support for allowing the deduction of transportation 
costs.
    What are activity fees and why include them?
    An activity fee is an expense associated with a structured care 
program. Examples of activity fees that may be deductible under this 
proposal include:
     The cost of an art class for an after school program or an 
adult day care program;
     Additional fees charged for attending a sports camp; and
     The cost of field trips sponsored by summer camps.
    The Department views the elimination of the dependent care caps as 
an indication of Congress' recognition of the importance of affordable, 
reliable, and safe care for the children or other dependents of SNAP 
households. Dependent care involves many different types of costs, 
including fees charged for activities that are part of structured 
dependent care programs, such as before and after school care, summer 
camps, or adult day care. For older children, dependent care expenses 
are more likely to include costs for participating in recreational or 
educational enrichment activities. As with other dependent care costs, 
a key to allowability of an activity fee is whether the activity 
enables a household member to be employed or pursue training or 
education to prepare for employment. To count toward the household's 
dependent care expenses, activity fees would have to be specific and 
identifiable additional costs.
    Since State agencies would be responsible for determining the 
allowability of specific costs claimed as activity fees, we encourage 
States and local agencies to provide comments on this proposal. 
Commenters might consider addressing the following questions: Are 
activity fees identifiable additional charges paid by households that 
can be verified? Is more detailed guidance needed to determine 
allowable costs, and what specific conditions would commenters wish to 
see in a final rule?
    Why set the upper age limit for child care at 15 years of age?
    As previously mentioned, FNS' longstanding policy permits dependent 
care expenses for children from birth through age 15 to be deductible. 
This upper age limit for children stems from requirements at section 
6(d)(1)(A)of the Act (7 U.S.C. 2015(d)(1)(A)) and Sec.  273.7(a) of the 
regulations that SNAP household members who turn 16 must register for 
work unless they are attending school at least half-time or are 
otherwise exempt from work registration. Although we have consistently 
indicated age 15 as the upper age limit for allowable dependent care 
expenses in response to specific situations, a formal nationwide policy 
has not been issued. Since questions about the upper age limit for 
deductible child care expenses continue to arise occasionally, this 
rule provides an opportunity to propose to codify FNS policy.
    Are there any age restrictions on dependent care expenses for 
disabled persons?
    No. Since a person can become incapacitated at any age and thus 
require dependent care, we propose to specify that dependent care costs 
for an incapacitated person of any age would be deductible. Although 
this proposal does not tie the allowability of dependent care expenses 
for incapacitated adults to the SNAP regulatory definition of ``elderly 
or disabled member'', we think that any adult requiring dependent care 
would be either disabled or elderly. The SNAP regulations at Sec.  
271.2 of this chapter define ``elderly or disabled member'' as someone 
who is 60 years of age or older or is determined to be disabled based 
on receipt of specific payments such as SSI, veterans' disability 
benefits, or other disability or retirement payments. Disability must 
be verified per Sec.  273.2(f)(1)(viii). We welcome comments on whether 
adult dependent care expenses should be limited only to adults that 
meet the regulatory definition of ``elderly or disabled member''.
5. Resources: Asset Indexation, Section 4104
    What changes did the law make to resource limits for SNAP 
households?
    Section 4104(a) of the FCEA amended Section 5(g) of the Act (7 
U.S.C. 2014(g)) to mandate that the current asset limits be indexed to 
inflation, rounding down to the nearest $250 beginning October 1, 2008.
    How does the Department propose to index assets?
    Current regulations at Sec.  273.8(b) limit SNAP households without 
disabled or elderly members to a maximum of $2,000 in resources and 
SNAP households with disabled or elderly members to a maximum of $3,000 
in resources. This rule proposes to revise Sec.  273.8(b) by indexing 
the current asset limits to inflation. Section 4104(a) of the FCEA 
mandated that the Department use the CPI-U published by the Bureau of 
Labor Statistics of the Department of Labor. Starting October 1, 2008, 
and each October 1 thereafter, the maximum allowable resources would be 
adjusted based on the previous year's rate of inflation. The value of a 
household's

[[Page 25418]]

resources would be rounded down to the nearest $250 increment.
    Why change the asset limits?
    These changes allow the resource limits to keep pace with 
inflation. Without this indexation, the maximum allowable resources 
would remain constant even as the prices of goods and services rise.
    When does the Department estimate that the maximum allowable 
resources will increase?
    The Department estimates that the maximum allowable resources will 
not increase until FY 2013.
6. Resources: Exclusion of Retirement Accounts From Resources, Section 
4104
    How would the proposed rule affect retirement accounts?
    Consistent with Section 4104(b) of the FCEA (Section 5(g)(7) of the 
Act), we propose to exclude all funds that are in tax-preferred 
retirement accounts from countable resources when determining 
eligibility for SNAP. This proposed revision would amend the SNAP 
regulations at Sec.  273.8(e)(2)(i).
    Which retirement accounts would be excluded?
    The proposed rule would exclude funds from countable resources if 
they are in accounts that fall under any of the following sections of 
the Internal Revenue Code of 1986 (Title 26 of the United States Code) 
(IRC): 401(a), 403(a), 403(b), 408, 408A plans, 457(b), 501(c)(18).
    IRC Section 401(a) plans include simple 401(k) plans and 
traditional 401(k) plans. Simple 401(k) plans are for small businesses, 
are subject to some limitations on employer contributions, and are 
exempt from some restrictions. Other 401(k) plans, also referred to as 
``cash or deferred arrangement'' (CODA) plans, allow employees to defer 
compensation in the plan.
    IRC section 403(a) plans are funded through annuity insurance. 
Section 403(b) plans are also called ``tax sheltered annuities'' or 
``custodial account plans'', are available to tax exempt nonprofit 
organizations and public schools, and are often funded through employee 
contributions.
    Section 408 of the IRC describes Individual Retirement Accounts and 
Annuities (IRAs), including simple retirement accounts and Simplified 
Employee Pension Plans (SEPs). IRAs are controlled by individuals 
rather than employers. Simple retirement account IRAs are only 
available to small businesses. SEPs are sponsored by small business 
employers and allow the employer to add funds to the account and 
function like IRAs.
    Roth IRAs are described in Section 408A of IRC. Qualified 
distributions to Roth IRAs are tax-free.
    Section 457 of IRC describes funded plans provided by State or 
local governments and unfunded plans offered by nonprofit 
organizations.
    The proposed rule would also exclude all funds in a Federal Thrift 
Savings Plan (5 U.S.C. 8439). Federal Thrift Savings Plans are plans 
offered by the Federal government to its employees.
    Why is the Department proposing to maintain discretion over future 
retirement accounts?
    The FCEA provides the Secretary with discretion to exclude future 
retirement accounts should new types of retirement accounts develop. 
Thus, the proposed rule would allow the Department to exclude any 
subsequently created retirement accounts that are exempt from Federal 
taxes. This would allow the Department to maintain consistency with 
regard to its treatment of retirement accounts.
7. Resources: Exclusion of Education Accounts From Resources, Section 
4104
    How does the proposed rule affect the treatment of education 
savings accounts?
    Consistent with Section 4104(c) of the FCEA, which amended Section 
5(g)(8) of the Act (7 U.S.C. 2014(g)(8)), the proposed rule would 
exclude all tax-preferred education savings accounts from resources 
when determining SNAP eligibility. This proposed provision would amend 
the SNAP regulations by adding a new paragraph at Sec.  273.8(e)(20).
    Which education savings accounts would be excluded?
    We propose to exclude all funds in education savings accounts from 
resources if the fund is described in section 529 or section 530 of the 
IRC. Section 529 of the IRC describes qualified tuition programs that 
allow a contributor to contribute funds or purchase tuition credits for 
qualified education expenses for a designated beneficiary. Section 529 
plans can only be used for qualified higher education expenses for 
tuition, fees, books, supplies, and equipment.
    Section 530 of the IRC describes Coverdell Education Savings 
Accounts, formerly known as ``Education Individual Retirement 
Accounts''. Coverdell Education Savings Accounts are trusts created to 
pay the education expenses of the designated beneficiary. The funds in 
a Coverdell Education Savings Account can be used for any qualified 
higher education expense or any qualified elementary and secondary 
education expense. These expenses could be for tuition, fees, tutoring, 
books, uniforms, room and board, transportation, supplies, and other 
equipment.
    How does the Department propose to handle future changes to 
education savings accounts?
    As with the retirement accounts, the FCEA provides the Secretary 
with discretion to exclude subsequent education savings accounts. Thus, 
this rule proposes that the Department maintain discretion over future 
tax-preferred education savings accounts. This would permit the 
Department to maintain consistent policy concerning education saving 
accounts should the IRC develop new types of tax-preferred education 
savings accounts.
8. State Options From the FCEA: Expansion of Simplified Reporting, 
Section 4105
    What is simplified reporting?
    Simplified reporting is an option available to State agencies under 
SNAP regulations at Sec.  273.12(a)(5) that requires minimal household 
reporting in comparison to the other types of household reporting 
systems that are available to State agencies under the SNAP 
regulations. During the certification period in a simplified reporting 
system, a household must only report when the following occurs:
     Gross monthly income exceeds the SNAP gross monthly income 
standard, which is set at 130 percent of the Federal income poverty 
guidelines; or
     The work hours of an able-bodied adult without dependents 
(ABAWD) falls below the minimum average of 20 hours.
    In addition, a household may also be required to submit a periodic 
report, generally about halfway through the certification period, for 
which certain changes that have occurred since certification must be 
reported. The reporting requirements for the periodic reports are 
limited in number and scope by Federal regulations, which have 
benefitted SNAP households as well as State agencies. Because of the 
reduced reporting burden, simplified reporting has afforded relatively 
stable benefit levels for households. In addition, with fewer periodic 
reports to process, simplified reporting has reduced State agencies' 
administrative workload as well as error rates. The popularity of 
simplified reporting has grown steadily since its addition to the 
regulations in November 2000; today, almost all State agencies place 
most households certified for at least 4 months on simplified 
reporting.
    How did the law expand simplified reporting?

[[Page 25419]]

    Section 4105 of the FCEA removed a restriction in section 
6(c)(1)(A) of the Act (7 U.S.C. 2015(c)(1)(A)) that prohibited periodic 
reporting for certain households. The households included homeless, 
migrant and seasonal farm workers, and disabled or elderly adults in 
households with no earnings. This restriction discouraged State 
agencies from including these households in their simplified reporting 
systems. The FCEA eliminated the ban on periodic reporting by these 
households but limited the frequency with which State agencies may 
require these households to file periodic reports. As a result, 
effective October 1, 2008, State agencies may place all households on 
simplified reporting, allowing elderly, disabled, homeless, and migrant 
and seasonal farm worker households to participate with only minimal 
change reporting requirements.
    What is the statutory limit for periodic reports for elderly, 
disabled, homeless and migrant or seasonal farm worker households?
    As amended by the FCEA, Section 6(c)(1)(A) of the Act limits the 
frequency of periodic reporting for homeless and migrant or seasonal 
farm worker households to every 4 months and for households in which 
all adult members are elderly or disabled with no earned income to once 
a year. The 4-month limitation on reporting frequency for homeless and 
migrant or seasonal farm worker households is consistent with current 
periodic reporting requirements. To be consistent with current law, 
regulations published on January 29, 2010 (75 FR 4912), specified the 
periodic reporting limitation of once per year for the elderly or 
disabled households with no earned income.
    How does this rule propose to implement the statutory change to 
simplified reporting?
    We propose to clarify in Sec.  273.12 the periodic reporting 
requirements and frequency of required periodic reporting for all 
households that are placed under the State agency's simplified 
reporting system. These revised provisions are located at proposed 
paragraphs (d)(6)(iii)(A) and (d)(6)(iii)(B), respectively.
    What other changes are proposed for Sec.  273.12?
    We are proposing to reorganize Sec.  273.12 to improve the 
readability of the section and to clarify aspects of current reporting 
requirements applicable under each reporting system. Currently, there 
are four SNAP client reporting systems. Three of these client reporting 
systems are covered in Sec.  273.12, as noted below:
     Change reporting--Sec.  273.12(a), (b), (c), and (d);
     Quarterly reporting--Sec.  273.12(a)(4), (b), and (c);
     Simplified reporting--Sec.  273.12(a)(5), (b), and (c); 
and
     Monthly reporting--Sec.  273.21.
    We propose to reorganize and clarify the requirements for the 
reporting systems currently covered under Sec.  273.12, as noted above. 
The reason for this is that all State agencies are currently using one 
or more of the reporting systems that are currently contained in Sec.  
273.12 for the majority of their SNAP households. States' use of 
monthly reporting, located in Sec.  273.21, is now negligible. We 
recognize that further reorganizations will probably be needed in 
future years to keep pace with the continuing evolution of client 
reporting requirements in SNAP. A future issue may be whether to remove 
regulations concerning a reporting system that is no longer utilized by 
any State agency.
    What is the rationale for revising Sec.  273.12?
    Like most sections in part 273, which covers the certification and 
eligibility requirements for SNAP households, Sec.  273.12 was 
initially written in the late 1970's to incorporate the provisions of 
the Food Stamp Act of 1977. At that time, client reporting requirements 
were contained under a single ``change reporting'' system. Later, Sec.  
273.12 was amended to add other client reporting options in addition to 
change reporting, without always completely identifying which of the 
required change reporting provisions also applied to the other 
reporting systems. Other incremental changes were made to reporting 
requirements over time as well. As a result, the regulations on 
specific provisions of various reporting systems are unclear. This lack 
of clarity is particularly noticeable in paragraphs (b), (c), and (d) 
of the current Sec.  273.12, which cover requirements for report forms, 
State agency action on changes, and household failure to report, 
respectively.
    How is FNS proposing to reorganize the section?
    We propose the following paragraphs for Sec.  273.12:
    Paragraph (a) General requirements;
    Paragraph (b) Change reporting;
    Paragraph (c) Quarterly reporting;
    Paragraph (d) Simplified reporting;
    Paragraph (e); Mass changes; and
    Paragraph (f) Optional reporting requirements for public assistance 
(PA) and general assistance (GA) households.
    Paragraph (a) would describe the general requirement for household 
reporting, identify the reporting systems currently permitted under the 
regulations, and list the location in the regulations for the client 
reporting systems.
    Paragraphs (b), (c), and (d) would describe the requirements 
appropriate to change, quarterly, and simplified reporting systems, 
respectively, addressing the following topics:
     Features;
     Included households;
     What households must report;
     Special procedures for child support payments;
     How households must report;
     When households must report;
     When households fail to report; and
     State agency action on changes.
    The provisions for State agency implementation of mass changes and 
reporting options for PA and GA households, currently located at 
paragraphs (e) and (f) of this section would remain unchanged other 
than nomenclature changes.
    FNS is interested in commenters' thoughts on this proposed 
revision. We think that there are positive aspects to using a 
systematic approach to describe the requirements for each respective 
reporting system. The most important advantage will be the ease in 
locating all requirements pertinent to each reporting system. In 
addition, we think that this revision will enable State agencies to 
compare the relative advantages and disadvantages of each reporting 
system more easily. The drawback to this approach is a certain amount 
of redundancy that will increase the overall length of the section.
    Is FNS proposing any clarification of reporting requirements beyond 
just a reorganization of Sec.  273.12?
    Yes. Although our primary intention is to explain the requirements 
of each reporting system covered in Sec.  273.12 in a more logical and 
consistent manner, we are also proposing to clarify aspects of certain 
reporting requirements. These clarifications include:
     Household requirement to report changes in liquid 
resources.
    We are proposing three clarifications that would apply to 
households subject to change, quarterly, and simplified reporting. 
First, we propose to clarify that elderly and disabled households would 
only report changes when liquid resources (i.e., cash, money in 
checking or savings accounts, saving certificates, stocks or bonds, and 
lump sum payments) reach or exceed the maximum amount permitted for 
these households under the Act. Second, we propose to specify that the 
maximum resource levels for elderly and disabled households and for all 
other households (currently set at $3,000 and $2,000,

[[Page 25420]]

respectively) will reflect adjustments for inflation under proposed 
Sec.  273.8(b)(1). Third, we propose language that would exempt 
households from reporting changes in liquid resources if the State 
agency excludes resources for categorically eligible households. 
Current FNS guidance provides a blanket waiver from the resource 
limitation reporting requirements for categorically eligible 
households, as provided under Sec.  273.2(j)(2)(v).
     Household requirement to report changes in vehicle 
acquisition. We propose to clarify that households will not have to 
report changes in vehicle acquisitions that are not fully excludable 
under SNAP regulations if the State agency uses TANF vehicle rules, as 
provided under Sec.  273.8(f)(4). Current FNS guidance provides for a 
blanket waiver of this reporting requirement if the State agency is 
using TANF vehicle rules in lieu of SNAP vehicle rules.
     Standardization of certain reporting requirement features. 
We are proposing to clarify that certain basic features currently 
applicable to one or more reporting systems are applicable to all three 
reporting systems covered in Sec.  273.12. These features include 
permitting households under a change reporting system to report changes 
by fax, e-mail, or through a State agency's Web site; specifying that 
the change report form must be written in clear, simple language and 
must meet SNAP bilingual requirements; and specifying that reporting 
requirements for applicants (currently located at Sec.  273.12(a)(3)) 
and provisions describing permissible claim action by State agencies 
when households fail to report (currently located at Sec.  273.12(d)) 
apply to quarterly and simplified reporting systems as well as change 
reporting systems.
9. State Options From the FCEA: Transitional Benefits Alternative, 
Section 4106
    What is the transitional benefit alternative (TBA)?
    TBA is an option provided at Section 11(s) in the Act (7 U.S.C. 
2020(s)) that permits State agencies to offer transitional SNAP 
benefits to households leaving certain public assistance programs. TBA 
was incorporated into the SNAP regulations at Sec.  273.12(f)(4) by a 
final rule, ``Noncitizen Eligibility and Certification Provisions of 
Pub. L. 104-193'', published on November 21, 2000 (65 FR 70183). TBA 
ensures that households that are leaving public assistance programs can 
continue to meet their nutritional needs as they transition from public 
assistance to the workforce. TBA guarantees a fixed SNAP benefit amount 
and eliminates reporting requirements during the transition period, 
which is up to five months. During this time, households receive SNAP 
benefits that equal the amount received immediately prior to the 
termination of TANF benefits, with adjustments made for the loss of 
TANF.
    How did the FCEA change this option?
    Section 4106 of the FCEA amended Section 11(s)(1) of the Act to 
permit State agencies to provide transitional SNAP benefits to 
households with children that cease to receive cash assistance under a 
State-funded public assistance program. Prior to this change in the 
law, States were able to provide transitional SNAP benefits only to 
households that stopped receiving Federally-funded TANF assistance. 
FCEA sought to provide similar treatment of State-funded programs, 
similar in purpose to TANF assistance.
    How will this change affect SNAP households?
    This provision enables State agencies to extend TBA to additional 
households with children that are being terminated from State-funded 
public assistance that is similar to TANF but not funded through TANF. 
For some households, this could mean an additional period of TBA 
eligibility if the State has a cash benefit program that follows after 
TANF ends. For other households that did not receive TANF, it provides 
an opportunity for stabilized SNAP benefits after the State-funded 
assistance program ends.
    What types of assistance programs would qualify under this 
provision?
    As specified in the Act at Section 11(s)(1)(B), eligible programs 
are those funded by States that provide cash assistance to families 
with children. These state-funded cash assistance programs would be 
separate from State-level TANF funding streams. An example of an 
eligible program would be a State general assistance program that 
provides cash assistance to families with children. Programs that would 
not be eligible under this provision include programs that are funded 
by local level governments and programs that do not provide a cash 
benefit.
    Is it possible for a household to receive TBA more than once--
first, when the TANF benefits end and again, when the State-funded cash 
assistance (SFCA) ends?
    Yes, provided that certain conditions exist. First, the household 
must be qualified to receive transitional benefits based on State 
agency criteria, which must be described in the State plan of 
operation, per Sec.  273.26. Second, the SFCA must meet the criteria in 
Section 11(s)(1)(B) of the Act as described above--that is, it must 
provide SFCA to families with children. Third, the SFCA must be 
provided after the family is terminated from TANF.
    How does the Department propose to implement this provision?
    We propose to amend State plan requirements at Sec.  272.2(d)(1)(H) 
and subpart H in part 273 of the SNAP regulations, to specify that 
household's eligibility for TBA may be based on SFCA in addition to 
TANF. We propose to specify that a household may qualify for an 
additional TBA period if it participates in a SFCA program that 
continues after TANF has ended. We also propose that in administering 
TBA based on SFCA, State agencies would follow the same procedures they 
currently use to administer TBA based on TANF. In making this change, 
we propose to add SFCA to numerous provisions in subpart H of part 273, 
which include:
     Sec.  273.26--introductory paragraph and paragraph (a);
     Sec.  273.27--paragraphs (a) and (c);
     Sec.  273.29--paragraphs (c) and (d); and
     Sec.  273.32.
10. Increasing Benefits for Small Households: Minimum Benefit Increase, 
Section 4107
    How did the FCEA increase minimum benefit amounts?
    Section 4107 of the FCEA amended section 8(a) of the Act (7 U.S.C. 
2017(a)) to increase the minimum benefit amount for one and two-person 
households from $10 to 8 percent of the maximum allotment for a one-
person household, rounded to the nearest whole dollar. The maximum 
allotment is based on the Thrifty Food Plan (TFP) (Section 4(u) of the 
Act (7 U.S.C. 2013(u) and 7 CFR 271.2). For FY 2009, this change 
effectively increased the minimum allotment from $10 to $14 for 
households in the 48 contiguous States and the District of Columbia 
(.08 x the one-person TFP of $176 = $14, rounded to the nearest whole 
dollar). The American Recovery and Reinvestment Act of 2009 (ARRA) 
(Pub. L. 111-5) further increased the minimum monthly benefit amount 
for these households from $14 to $16 by raising the maximum allotment, 
which is used in the minimum benefit calculation (.08 x the increased 
one-person TFP of $200, rounded to the nearest whole dollar), effective 
April 1, 2009. SNAP households residing in Alaska, Hawaii, Guam, and 
the U.S. Virgin Islands receive somewhat higher minimum

[[Page 25421]]

benefit amounts since these geographic areas have higher TFP amounts, 
reflecting higher food prices in these areas.
    How does FNS propose to incorporate this change in the regulations?
    We propose to amend the regulations at Sec.  273.10(e)(2)(ii)(C) to 
incorporate the FCEA provision indexing the minimum benefit amount to 8 
percent of the maximum allotment for a one-person household, rounded to 
the nearest whole dollar. In addition, FNS proposes to update the 
definition of ``minimum benefit'' in Sec.  271.2 to remove the 
reference to the former minimum benefit amount of $10 and specify that 
the minimum benefit shall be based on the provisions of Sec.  273.10.
    How does increasing the minimum benefit affect SNAP households?
    The Food Stamp Act of 1977 established a monthly minimum benefit of 
$10 per month for one- and two-person households, and the amount has 
not been adjusted since that time. As a result, this minimum benefit no 
longer purchases the same amount of food today as it did more than 30 
years ago. Since the TFP is adjusted each fiscal year to reflect price 
changes, tying the minimum benefit amount to the TFP maintains the 
purchasing power for smaller households and ensures that future minimum 
benefit amounts reflect increases in food prices.
11. Employment and Training (E&T): Funding for Job Retention Services, 
Section 4108
    What changes did the law make in E&T program components?
    Section 6(d)(4) of the Act (7 U.S.C. 2015(d)(4)) specifies 
components that State agencies must include as part of E&T programs. 
Current regulations at Sec.  273.7(e)(1) provide that a State agency 
must include one or more of the following components:
     A job search program;
     A job search training program;
     A workfare program;
     A work experience and/or training program;
     A project, program or experiment aimed at accomplishing 
the purpose of the E&T program;
     Educational programs or activities; and
     A program to improve the self-sufficiency of recipients 
through self-employment.
    Section 4108 of the FCEA amended Section 6(d)(4) of the Act to add 
a new E&T component. Under the amendment, State agencies are allowed to 
provide job retention services for up to 90 days to an individual who 
secured employment after receiving other employment/training services 
under the E&T program offered by the State agency.
    What are job retention services?
    The Department proposes to amend Sec.  273.7(e)(1)(viii) of the 
SNAP regulations to define job retention as services provided to 
individuals who have secured employment to help achieve satisfactory 
performance, keep the job, and to increase earnings over time. Such 
services and reimbursable participant costs may include but are not 
limited to:
     Counseling;
     Coaching;
     Support services;
     Life skill classes;
     Referrals to other services;
     Clothing required for the job;
     Equipment or tools required for the job;
     Test fees;
     Union dues; and
     Licensing and bonding fees.
    Can job retention services be provided to individuals after their 
benefits have ended?
    State agencies electing to provide job retention services may 
extend these services to households leaving SNAP up to the 90 day 
limit. Job retention services are a time-limited training and support 
process that assist the individual in assessing job needs and provides 
assistance and resources as needed. As the individual gains job 
independence, less assistance is required and the goal of self-
sufficiency is achieved. Therefore, the State agency may provide job 
retention services to individuals losing benefits as a result of 
increased earnings, consequently, keeping households on track to 
independence and reducing the possibility of returning to the program.
    Would an individual who refuses to accept job retention services be 
considered an ineligible household member?
    Under current regulations at Sec.  273.7(f)(1), a non-exempt 
individual who fails to comply without good cause is ineligible. Under 
a strict interpretation of Section 6(d)(1) of the Act (7 U.S.C. 
2015(d)(1)), an E&T participant who obtains suitable employment, 
remains eligible, and fails to accept job retention services may be 
considered non-compliant. Imposing a penalty on an employed, otherwise 
eligible individual for choosing not to accept job retention services 
would place an undue burden on the household and would only serve to 
block the path to self sufficiency.
    Current rules at Sec.  273.7(e)(4) allow voluntary participation in 
program components without penalty for failure to comply with E&T 
requirements. The Department proposes that otherwise eligible 
individuals be treated the same as a volunteer if the individual elects 
not to accept job retention services offered by the State agency. Such 
individuals would not be subject to E&T program participation 
requirements imposed by the State agency. Failure to participate in a 
job retention program would not result in disqualification.
    How did the changes in the law affect voluntary participants?
    Section 4108 of the FCEA also modified Section 6(d)(4) of the Act 
(7 U.S.C. 2015(d)(4)) to permit individuals voluntarily participating 
in employment and training programs to participate beyond the required 
maximum of a number of hours based on their benefit divided by the 
minimum wage. The Department is proposing to amend current rules at 
Sec.  273.7(e)(4)(iii) to indicate that voluntary participants are not 
subject to the limitations specified in Sec.  273.7(e)(3) which limit 
the number of hours spent in an E&T component. Under current 
regulations the total amount of time spent each month by a participant 
in an E&T work program, combined with hours worked in a workfare 
program, and hours worked for compensation must not exceed 120 hours. 
The total number of hours, which the State agency can mandate (120 
hours), would be unaffected.
12. State Options From the FCEA: Telephonic Signature Systems, Section 
4119
    What is the statutory authority for these proposed changes?
    Section 4119 of FCEA amended section 11(e) of the Act (7 U.S.C. 
2020(e)) to permit a State agency to accept spoken signatures, subject 
to certain conditions. Congress used the term ``recorded verbal 
assent'' in the statute. In this proposed rule, the Department uses the 
term ``spoken signature'' to reflect the range of changes regarding 
signatures for households' SNAP documents.
    What are SNAP's current regulations regarding signatures?
    SNAP's current regulations at Sec.  273.2(c)(1) provide for 
handwritten and electronic signatures. There is no mention of spoken 
signatures, or of gestured signatures, for those individuals unable to 
provide spoken assent. By gestured signatures, the Department means a 
household's attestation or assent through a purely visual language, 
like American Sign Language (ASL).
    The Department's current policy, which would remain in place under 
this proposed rule, is two-fold:

[[Page 25422]]

     A State agency must accept handwritten signatures from 
applying households, and
     No State agency must accept unwritten signatures if it 
chooses not to do so.
    In particular, the Department has consistently recommended that 
every State agency consult legal counsel to verify that the verbal 
assent constitutes a valid signature pursuant to State law.
    What is the Department proposing about signatures for SNAP 
applications?
    Essentially, the Department is proposing four changes regarding 
signatures for SNAP applications:
     To implement Section 4119 of the FCEA by stating clearly 
that a State agency may accept spoken signatures;
     To implement that statute's restrictions on spoken 
signatures;
     To apply those restrictions to other signatures, both 
written and unwritten; and
     To permit gestured, or visual signatures, as an 
alternative for those individuals who are unable to provide spoken 
verbal assent.
    These proposed changes would apply to applications submitted at 
initial certification and recertification and to reports required to be 
submitted under the client periodic reporting systems allowed by SNAP 
regulations (monthly, quarterly, or simplified reporting systems).
    What is a spoken signature?
    A spoken signature is intended to include means of assenting to 
information other than written or electronic. An obvious example would 
involve an interactive interview with a SNAP household over the 
telephone. The State agency would elicit responses from the household. 
At the end of the interview the household would agree that the 
information is correct and that the household understands its rights 
and responsibilities. An audio recording of the agreement would be made 
and linked to the case. That spoken agreement is one example of a 
spoken signature. The interactive interview and the signature then 
become part of the household's permanent case record.
    May a State agency accept spoken signatures?
    Yes, subject to certain requirements, which are discussed later.
    Must a State agency accept spoken signatures?
    No. This would be a matter for each State agency to decide. 
However, the Department encourages State agencies to explore this 
format because of the benefit that it provides to households. For 
example, people with less acute vision or limited mobility would be 
able to apply more easily and State agencies could accept applications 
and conduct interviews over the telephone with less administrative 
burden.
    What are the specific conditions for spoken signatures?
    The Department is proposing three conditions that the Act contains 
and one additional condition. First, section 11(e)(2)(C)(iii)(IV) of 
the Act (7 U.S.C. 2020(e)(2)(C)(iii)(IV)) requires a State agency to 
give a household a written copy of the completed application, along 
with simple instructions for correcting errors or omissions. Although 
the copy need not be a transcript of the conversation, the copy must 
contain the information that the State agency uses to determine the 
household's eligibility and to calculate its SNAP benefit. Since the 
State agency wants to provide the household with a correct 
determination, it is in the State agency's interest to ensure that the 
information in its possession is accurate and complete. The interests 
of the State agency, the household, and the Department conform exactly 
on this point.
    Second, the Act (at Section 11(c)(iii)(VI), 7 U.S.C. 
2020(c)(iii)(VI)) requires the State agency to treat the date of the 
spoken signature as the date of application. Section 11(e)(2)(B)(iv) of 
the Act (7 U.S.C. 2020(e)(2)(B)(iv)) requires that the date of 
application is the date on which a signed application with the 
applicant's name and address arrives at the State agency's office. In 
the case of a spoken signature, that signature would arrive at the 
State agency's office as it is being transmitted, in other words, on 
that very day. This would eliminate the delay in the filing date that 
occurs when submitting a paper application via mail, thereby improving 
client access.
    Third, under the Department's proposal, a State agency's system for 
accepting spoken signatures would have to comply with SNAP's bilingual 
requirements for the use of appropriate bilingual personnel and printed 
material in the administration of the program. Section 11(e)(1)(B) of 
the Act requires a State agency to ``comply with regulations of the 
Secretary requiring the use of appropriate bilingual personnel and 
printed material in the administration of the program in those portions 
of political subdivisions in the State in which a substantial number of 
members of low-income households speak a language other than English''. 
These bilingual regulations are found at Sec.  272.4(b) of this 
chapter.
    Fourth, the Department is also proposing that the State agency give 
the household at least ten days to return any corrections. This is 
SNAP's current standard for providing verification; a consistent 
standard would simplify the situation for both the household and the 
State agency.
    May a State agency accept electronic signatures?
    Yes. Current program rules at Sec.  273.2(c)(1) allow an agency to 
accept electronic signatures. This proposed rule clarifies that this 
provision is subject to the same restrictions and conditions the 
Department is proposing for spoken signatures that were discussed