Supplemental Nutrition Assistance Program Quality Control Review Handbook Incorporation by Reference, 266-268 [2024-30578]

Agencies

• DEPARTMENT OF AGRICULTURE
• Food and Nutrition Service

[Federal Register Volume 90, Number 2 (Friday, January 3, 2025)]
[Proposed Rules]
[Pages 266-268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30578]


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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. 90, No. 2 / Friday, January 3, 2025 / 
Proposed Rules

[[Page 266]]



DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Part 275

[FNS-2024-0030]
RIN 0584-AF05


Supplemental Nutrition Assistance Program Quality Control Review 
Handbook Incorporation by Reference

AGENCY: Food and Nutrition Service (FNS), USDA.

ACTION: Notice of proposed rulemaking, incorporation by reference.

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SUMMARY: The U.S. Department of Agriculture (the Department) is issuing 
this proposed rule to formally incorporate by reference the FNS 
Handbook 310 into SNAP regulations. By doing so, the Department is 
ensuring that the public receives a notice and comment period prior to 
implementation of revisions to the Handbook, which is the standard 
operating procedure manual for conducting quality control (QC) reviews 
of SNAP cases. The Department also proposes to remove reference to FNS 
Handbook 311 until it can be incorporated by reference. The Department 
requests comment on these proposed provisions.

DATES: Written comments must be received on or before March 4, 2024 to 
ensure their consideration.

ADDRESSES: The Food and Nutrition Service, USDA, invites interested 
persons to submit written comments on this proposed rule. Comments may 
be submitted in writing by one of the following methods:

--Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow 
the online instructions for submitting comments.
--Mail: Send comments to John McCleskey, Branch Chief, Quality Control 
Branch, Program Administration and Nutrition Division; Food and 
Nutrition Service; 1320 Braddock Place, 5th Floor; Alexandria, Virginia 
22314.
--Email: Send comments to [email protected]. Include ``SNAP QC 
Review Handbook Incorporation by Reference'' in the subject line of the 
message.
--All written comments submitted in response to 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 written comments publicly 
available on the internet via https://www.regulations.gov.
--FNS Handbook 310, Supplemental Nutrition Assistance Program Quality 
Control Review Handbook, can be viewed online at https://www.fns.usda.gov/snap/qc.

FOR FURTHER INFORMATION CONTACT: John McCleskey, 703-457-7747, Food and 
Nutrition Service, 1320 Braddock Place, 5th Floor; Alexandria, Virginia 
22314, [email protected].

SUPPLEMENTARY INFORMATION:

Background

SNAP QC--In General

    The Supplemental Nutrition Assistance Program (SNAP) is the 
nation's largest domestic food assistance program for Americans, 
reaching about 42 million people per month during fiscal year 2023.\1\
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    \1\ https://www.fns.usda.gov/pd/supplemental-nutrition-assistance-program-snap.
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    Although the Federal government funds SNAP benefits per 7 U.S.C. 
2020(a)(1), State agencies are responsible for general program 
administration of SNAP within their States, including determining the 
eligibility of individuals and households to receive SNAP benefits and 
issuing monthly allotments of benefits.
    Pursuant to Section 16 of the Food and Nutrition Act of 2008 (FNA), 
as amended, each State agency is responsible for monitoring and 
improving its administration of SNAP. The Quality Control (QC) system 
is necessary to help ensure State agencies measure improper payments 
and improve their administration of SNAP. SNAP QC reviews have four 
goals, identified at 7 CFR 275.10(b), which are to provide: (1) a 
systematic method of measuring the validity of the SNAP eligibility 
caseload; (2) a basis for determining all SNAP error rates; (3) a 
timely, continuous flow of information on which to base corrective 
action at all levels of administration; and (4) a basis for 
establishing State agency liability for payment errors that exceed the 
National performance measure pursuant to Section 16(c)(1)(C) of the 
FNA.
    To comply with Section 16 of the FNA, State agencies conduct 
monthly reviews of a statistically representative sample of both 
participating SNAP households (active cases) and households for whom 
participation was denied, terminated, or suspended (negative cases). 
Once the State's review is complete, the case is submitted to FNS for 
possible Federal re-review. The role of the Federal reviewer is to 
validate the State reviews were done accurately and in accordance with 
Federal SNAP policies and procedures.
    QC reviews measure the accuracy of SNAP eligibility and allotment 
determinations and ultimately serve as the basis for the SNAP payment 
error rate (PER) and case and procedural error rate (CAPER).\2\ The 
results of these reviews provide feedback on State-by-State and 
national administration of the Program, including how State agencies' 
chosen policy options, waivers, and business processes affect the 
accuracy of their eligibility determinations. In short, the QC system 
allows FNS and the States to assess the integrity of SNAP and ensure 
effective stewardship of taxpayer dollars by determining the extent to 
which the program is operating as required by statute and regulations.
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    \2\ FNS refers to the negative case error rate as the case and 
procedural error rate, or CAPER.
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Background Information on FNS Handbook 310

    The FNS Handbook 310, the ``SNAP QC Review Handbook'', is the 
standard operating procedure manual for conducting QC reviews of SNAP 
cases.\3\ The FNS Handbook 310 provides both State and Federal QC 
reviewers with procedures for the QC review process for active and 
negative cases. This procedural manual aligns with SNAP's statutory and 
Federal regulatory program rules to ensure its process for

[[Page 267]]

evaluating SNAP eligibility and allotments delivers accurate results.
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    \3\ https://fns-prod.azureedge.net/sites/default/files/snap/FNS_310_Handbook.pdf.
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    The FNS Handbook 310 was first introduced into regulation in the 
July 29, 1983, proposed rule titled, Food Stamp Program; Technical 
Amendments to the Quality Control Review Process.\4\ Following 
publication of the proposed rule, the Department received comments 
indicating State agencies needed a consistent, complete, national 
handbook for conducting QC reviews of SNAP cases that would also be 
continually updated as SNAP policies are updated and changed. The 
handbook provisions were implemented with the February 17, 1984, final 
rule titled, Food Stamp Program, Quality Control Reviews.\5\ The 
provisions in the final rule require State agencies to use FNS-designed 
handbooks, worksheets, and coding forms in the QC review process to 
ensure consistency of reviews nationwide.
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    \4\ https://www.govinfo.gov/content/pkg/FR-1983-07-29/pdf/FR-1983-07-29.pdf.
    \5\ https://archives.federalregister.gov/issue_slice/1984/2/17/6278-6313.pdf.
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Incorporation by Reference

    The Department proposes, at 7 CFR 275.14(b), to incorporate by 
reference the FNS Handbook 310, ``SNAP QC Review Handbook'', dated 
October 2024, and add a centralized IBR paragraph at 7 CFR 275.14(f). 
In the 1984 final rule, the Department included the FNS Handbook 310 in 
the code of Federal regulations but did not specifically undertake the 
incorporation by reference (IBR) process. This rule addresses that 
oversight.
    The FNS Handbook 310 is readily available to all interested 
parties. The FNS Handbook 310 is publicly available as listed in the 
ADDRESSES section of this proposed rule. Additionally, the FNS Handbook 
310 has been consistently available on the FNS public website since 
2003 and on the USDA Partner Web since 2008. The Partner Web is a web-
based SharePoint site accessible with Federal e-authentication.
    The FNS Handbook 310 does not detract from the legal or practical 
attributes of the Federal Register since it does not introduce new 
program requirements, but rather details operational procedures for the 
QC review process to evaluate compliance with existing SNAP laws and 
regulations. Publishing the entire FNS Handbook 310 in the Federal 
Register is impractical due not only due to its extensive 300-page 
length, but also for readability. The Federal Register is limited to 
strict formatting capabilities and a procedural manual requires 
examples using bullets, indentions, text boxes, side by side 
comparisons, as well as flow charts, etc. and many times on the same 
pages as one another, which is why incorporation by reference is most 
appropriate.
    The Department also proposes to remove reference to the FNS 
Handbook 311 until it can be incorporated by reference. The Department 
proposes to reserve new paragraphs (e) and (f)(2) in anticipation of 
incorporating FNS Handbook 311 in the future.

Procedural Matters

Executive Order 12866, 13563, and 14094

    Executive Orders 12866, 13563, and 14094 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Under 
Executive Order 12866, as amended, OMB's Office of Information and 
Regulatory Affairs (OIRA) determines whether a regulatory action is 
significant and, therefore, subject to OMB review. Executive Order 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
Executive Order 14094 focuses on modernizing regulatory review and 
updates the definition of a significant regulation.
    This proposed rule has been determined to be not significant and 
was not reviewed by the Office of Management and Budget (OMB) in 
conformance with Executive Order 12866.

Regulatory Impact Analysis

    This rule has been designated as not significant by the Office of 
Management and Budget, therefore, no Regulatory Impact Analysis is 
required.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612) requires Agencies 
to analyze the impact of rulemaking on small entities and consider 
alternatives that would minimize any significant impacts on a 
substantial number of small entities. The entities impacted by this 
rule are State SNAP agencies that conduct QC reviews, which are not 
considered small entities for purposes of this analysis.
    Pursuant to our review, the Department certifies that this rule 
will not have a significant impact on a substantial number of small 
entities.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a `major rule', as defined by 5 U.S.C. 804(2).

Unfunded Mandates Reform Act

    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 by State, local or Tribal 
governments, in the aggregate, or 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 most cost effective or least burdensome alternative that achieves 
the objectives of the rule.
    This rule does not contain Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local and Tribal 
governments, or the private sector of $100 million or more in any one 
year. Thus, the rule is not subject to the requirements of sections 202 
and 205 of the UMRA.

Executive Order 12372

    SNAP is listed in the sam.gov Assistance Listings under Number 
10.551. For the reasons set forth in the Final Rule codified in 7 CFR 
part 3015, subpart V and the related Notice (48 FR 29115), this Program 
is excluded from the scope of Executive Order 12372, which requires 
intergovernmental consultation with State and local officials.

Federalism Summary Impact Statement

    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 13121.
    The Department has considered the impact of this proposed rule, 
with comment, on State and local governments and has determined that 
this rule does not have federalism implications. Therefore, under 
Section

[[Page 268]]

6(b) of the Executive Order, a federalism summary is not required.

Executive Order 12988, Civil Justice Reform

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is intended to have preemptive effect 
with respect to any State or local laws, regulations, or policies which 
conflict with its provisions or which would otherwise impede its full 
and timely implementation. This rule is not intended to have 
retroactive effect unless so specified in the Effective Dates section 
of the final rule. Prior to any judicial challenge to the provisions of 
the final rule, all applicable administrative procedures must be 
exhausted.

Civil Rights Impact Analysis

    FNS has reviewed this rule in accordance with the Department 
Regulation 4300-004, ``Civil Rights Impact Analysis,'' to identify and 
address any major civil rights impacts that the rule might have on 
minorities, women, and persons with disabilities. After a careful 
review of the rule's intent and provisions, FNS has determined that 
this rule has no likely impact on any of the protected classes. These 
changes primarily affect the QC review process and not individuals' 
eligibility for or participation in SNAP.

Executive Order 13175

    Executive Order 13175 requires Federal agencies to consult and 
coordinate with Tribes on a government-to-government basis on policies 
that have Tribal implications, including regulations, legislative 
comments or proposed legislation, and other policy statements or 
actions that have substantial direct effects on one or more Indian 
Tribes, on the relationship between the Federal Government and Indian 
Tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian Tribes. After a careful review of the 
rule's intent, FNS has determined that this rule has no intended impact 
on Tribal implications.

Paperwork Reduction Act

    Reporting and recordkeeping requirements associated with the use of 
the FNS Handbook 310 are already permitted by the Office of Management 
and Budget (OMB) under four separate, approved information collections 
under the Paperwork Reduction Act of 1995. Those collections are: 0584-
0074, FNS-380, Worksheet for the Supplemental Nutrition Assistance 
Program Quality Control Reviews (expires 7/31/2025); 0584-0299, FNS-
380-1 Supplemental Nutrition Assistance Program's Quality Control 
Review Schedule (expires 9/30/2026); 0584-0034, FNS-245: SNAP Negative 
Case Action Review Schedule (expires 12/31/2024); and 0584-0303, 
Supplemental Nutrition Assistance Program Regulations, Part 275--
Quality Control (expires 7/31/2025).

E-Government Act Compliance

    The Department is committed to complying with the E-Government Act, 
2002 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.

List of Subjects in 7 CFR Part 275

    Grant programs--social programs, Incorporation by reference, 
Reporting and recordkeeping requirements.

    Accordingly, the Food and Nutrition Service proposes to amend 7 CFR 
part 275 as follows:

PART 275--PERFORMANCE REPORTING SYSTEM

0
1. The authority citation for part 275 continues to read as follows:

    Authority:  7 U.S.C. 2011-2036.

0
2. In Sec.  275.14:
0
a. Revise paragraphs (a) and (b);
0
b. Amend paragraph (c) introductory text by removing the word ``the'' 
at the beginning of the text and adding in its place ``OMB 0584-
0074,'';
0
c. Amend paragraph (d) introductory text by adding at the end of the 
sentence the phrase ``, OMB 0584-0299'', adding at the end of the 
second sentence the phrase ``, OMB 0584-0074'', and in the last 
sentence remove the phrase ``Negative Quality Control Review Schedule, 
Form FNS-245'' and adding in its place the phrase ``OMB 0584-0034, Form 
FNS-245: SNAP Negative Case Action Review Schedule'';
0
d. Reserve paragraph (e); and
0
e. Add paragraph (f).
    The revisions and additions read as follows:


Sec.  275.14  Review Processing.

    (a) General. Each State agency shall use FNS handbooks, OMB 
approved quality control information collection forms, and SNAP QC 
policy memos in the quality control review process. QC reviews are 
consistent with SNAP's statutory and regulatory requirements.
    (b) Review Handbook. The reviewer shall follow the procedures 
outlined in the Quality Control Review Handbook, the FNS Handbook 310, 
to conduct quality control reviews.
* * * * *
    (e) [Reserved]
    (f) Incorporation by Reference. The material listed in this 
paragraph (f) is incorporated by reference into this section with the 
approval of the Director of the Federal Register under 5 U.S.C. 552(a) 
and 1 CFR part 51. All approved material is available for inspection at 
the Food and Nutrition Service (FNS) and at the National Archives and 
Records Administration (NARA). Contact the FNS at: 1320 Braddock Place, 
5th Floor; Alexandria, Virginia 22314; email: [email protected], website: https://www.fns.usda.gov/snap/qc. For 
information on the availability of this material at NARA, visit 
www.archives.gov/federal-register/cfr/ibr-locations or email 
[email protected].
    (1) FNS Handbook 310, SNAP QC Review Handbook, dated October 2024, 
through PM 25-01. (Available at: https://www.fns.usda.gov/snap/qc under 
the ``Policy and Guidance Documents'' section.)
    (2) Reserved.

Tameka Owens,
Acting Administrator and Assistant Administrator, Food and Nutrition 
Service.
[FR Doc. 2024-30578 Filed 1-2-25; 8:45 am]
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