80 FR 53240 - Supplemental Nutrition Assistance Program (SNAP): Agricultural Act of 2014 Nondiscretionary Provisions
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service Federal Register Volume 80, Issue 171 (September 3, 2015)
Food and Nutrition Service
Federal Register Volume 80, Issue 171 (September 3, 2015)
| Page Range | 53240-53243 | |
| FR Document | 2015-21906 |
[Federal Register Volume 80, Number 171 (Thursday, September 3, 2015)] [Rules and Regulations] [Pages 53240-53243] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-21906] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Food and Nutrition Service 7 CFR Parts 271, 273, 274, and 275 RIN 0584-AE48 Supplemental Nutrition Assistance Program (SNAP): Agricultural Act of 2014 Nondiscretionary Provisions AGENCY: Food and Nutrition Service (FNS), USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Food and Nutrition Service (FNS) of the Department of Agriculture (USDA) is amending Supplemental Nutrition Assistance Program (SNAP or Program) regulations to codify certain nondiscretionary provisions of the Agricultural Act of 2014 (the ``2014 Farm Bill''). This final rule excludes medical marijuana from being treated as an allowable medical expense for the purposes of determining the excess medical expense deduction under SNAP. This rule also amends multiple SNAP regulations pursuant to nondiscretionary changes under the 2014 Farm Bill related to Quality Control (QC). This rule updates the QC error tolerance threshold to no more than $37 for Fiscal Year (FY) 2014. For FY 2015 and thereafter, the QC tolerance level will be set annually based on an adjustment in the Thrifty Food Plan (TFP). In addition, this rule eliminates USDA's ability to waive any portion of a State's QC liability amount, except as provided in SNAP regulations that requires State agencies to use SNAP High Performance Bonus Payments only for SNAP administrative expenses including investments in technology, improvements in administration and distribution, and actions to prevent fraud, waste and abuse. Finally, this rule amends SNAP regulations pertaining to the use of SNAP benefits to pay for container deposit fees. The 2014 Farm Bill prohibits SNAP benefits from being used to pay for container deposit fees in excess of any State fee reimbursement required to purchase food in a returnable bottle or can. DATES: This rule will become effective on November 2, 2015. FOR FURTHER INFORMATION CONTACT: Vicky T. Robinson, FNS, 3101 Park Center Drive, Room #418, Alexandria, VA 22302, 703-305-2476. SUPPLEMENTARY INFORMATION: I. Background General On February 7, 2014, the President signed the 2014 Farm Bill. Amendments exclude medical marijuana from allowable medical expense deductions for SNAP purposes, update the QC error tolerance threshold for Fiscal Year (FY) 2014 and index this amount for FY 2015 and thereafter based on an adjustment in the Thrifty Food Plan (TFP), eliminate the Department's ability to waive any portion of a State's QC Liability amount except as provided in SNAP regulations at 7 CFR 275.23(f), ensure that State agencies may use High Performance Bonus Payments only for SNAP administrative expenses, and prohibit SNAP benefits from being used to pay for container deposit fees in excess of the State fee reimbursement. Medical Marijuana USDA is amending SNAP regulations at 7 CFR part 273 in accordance with Section 4005 of the 2014 Farm Bill. Under Section 4005, USDA is instructed to promulgate regulations to explicitly prohibit States from utilizing the excess medical deduction to deduct medical marijuana costs from a household's income for SNAP purposes. Under the Controlled Substances Act, 21 U.S.C. 801 et seq., marijuana is a Schedule I controlled substance that has no currently accepted medical use and cannot be prescribed for medicinal purposes. 21 U.S.C. 812(b)(1)(C). SNAP is a Federal program and must conform to Federal law regarding illegal substances. Therefore, marijuana and other Schedule I controlled substances are not allowable medical expenses under SNAP. USDA is incorporating this requirement into the regulations at new subsection 7 CFR 273.9(d)(3)(iii)(B). Error Tolerance Threshold Section 16 (c)(1)(A)(ii)(I) of the Food and Nutrition Act of 2008 was amended by Section 4019 of the 2014 Farm Bill to require that the Secretary set the tolerance level for excluding small errors for fiscal year 2014, at an amount not greater than $37. Until that point in time, the QC tolerance level was at $50, meaning only variances that exceed $50 were included in the calculation of the payment error rate. This threshold does not excuse a State from following correction or claims procedures for any over or under issuance that is under the tolerance level. Typically, changes that affect the QC review period are made effective the upcoming fiscal year so that State and Federal QC reviewers can prepare for the procedural and systematic changes required. However, since the QC review period for FY 2014 had already begun when the Act was signed, the Department was required to take immediate action at that point on announcement of a new threshold, and established the new $37 threshold through an implementing memorandum on March 21, 2014. This rule codifies what was put in place via that implementing memorandum. Section 4019 of the 2014 Farm Bill also requires USDA to adjust FY 2014's threshold by the percentage by which the Thrifty Food Plan (TFP) is adjusted under Section 3(u)(4) of the Food and Nutrition Act of 2008. The Department uses three TFPs to establish benefit levels, one for the 48 contiguous States and District of Columbia, one for Alaska, and one for Hawaii. Although there are different TFPs used in SNAP benefit calculation, the Department is required to have one national performance measure for State payment error rates. For that reason, the Department has concluded that it has no discretion in using a single TFP-related adjustment mechanism for all States. For FY 2015, the Department adjusted the threshold amount by using the TFP for the 48 contiguous States and District of Columbia as the TFP baseline for all 53 State agencies, resulting in a tolerance level of $38 for FY 2015. In this final rule, the Department is establishing that the threshold will be adjusted each year by using the TFP for the 48 contiguous States and District of Columbia. A policy memo will be issued to States notifying them of the adjustment to the threshold amount at the start of each QC review period. Liability Amount Determinations After each fiscal year, in accordance with regulatory requirements, a determination is made for each State agency as to whether or not that FY's QC Error Rate would lead to the State being assessed a liability amount. State agencies assessed liabilities are given the opportunity to pay their liabilities in full or designate 50 percent of the liability amount as at-risk for repayment if a liability amount for an excessive payment error rate is established for the following FY. State agencies must then designate the other 50 percent of the liability amount to be used for new investment in approved activities to [[Page 53241]] improve the administration of SNAP. In addition, States have the right to appeal their QC Liability amount in order to provide justification for why they were otherwise unable to effectively administer the program for that fiscal year. Previously USDA had the authority to waive all or a portion of the liability, regardless of whether or not a State chose to appeal their QC Liability amount. While the Department has not utilized this authority with the current sanction system, the 2014 Farm Bill has provided that no portion of a State agency's liability amount is allowed to be waived by the Department, thereby negating existing regulatory provisions at Sec. 275.23(f). Therefore, to comply with this change, the Department is removing the regulatory language which allowed USDA such authority at Sec. 275.23(e)(1)(i) and moving the language at Sec. 275.23(e)(1)(ii), Sec. 275.23(e)(1)(iii), and Sec. 275.23(e)(1)(iv) up to become Sec. 275.23(e)(1)(i) and Sec. 275.23(e)(1)(ii), and Sec. 275.23(e)(1)(iii). High Performance Bonuses Previously, although the Department encouraged States to invest performance bonus money into program improvements and preventing fraud, there were no restrictions on how States could spend the bonus money they received. However, section 4021 of the Act now requires State awardees to spend their bonus money exclusively on SNAP administrative expenses. Congress' intent, written in the Act, is for States to use this bonus money to ``carry out the program established under this Act (the Food and Nutrition Act of 2008), including investments in technology, improvements in administration and distribution; and actions to prevent fraud, waste, and abuse.'' Therefore, USDA is adding regulatory language that prohibits the use of bonus payments for household benefits, including incentive payments, and requires States awarded SNAP High Performance Bonuses to inform the Department of their intended plans for said bonus payments prior to expenditure in order to verify they will be used in a manner with which they were intended. Container Deposit Fees In accordance with Section 4001 of the 2014 Farm Bill, SNAP benefits may not be used to pay for container deposit fees in excess of the amount of any fee reimbursement established under State law. SNAP benefits may only be used to pay the amount required by the State and only for containers that meet the criteria covered in the State law. If an entity other than the State, such as the manufacturer, imposes a deposit fee in excess that must be paid to purchase a food product, the fee cannot be paid with SNAP benefits. Instead, the fee must be paid separately in cash or other form of payment. The prohibition applies regardless of whether the fee is included in the shelf price posted for the item. SNAP regulations already provide that clients who purchase, with SNAP benefits, products that have container deposits for the purpose of subsequently discarding the product and returning the container in exchange for a cash refund of the deposit may be disqualified from the Program for trafficking. This provision helps strengthen SNAP regulations to prevent fraud and abuse by limiting the ability of SNAP clients to use their benefits to pay for container deposit fees and, therefore, reducing the amount of the cash refund they would be able to obtain when returning the container. Currently the following ten States have some type of State container deposit fee requirement: California, Connecticut, Hawaii, Iowa, Massachusetts, Maine, Michigan, New York, Oregon, and Vermont. State law establishes the deposit amount and the types and sizes of containers covered by the law. When purchasing a container with a State deposit requirement, the consumer pays the deposit to the retailer and receives a refund when an empty container is returned to a retailer or redemption center. If a SNAP eligible product has a State deposit fee associated with it, the product remains eligible for purchase with SNAP benefits. In addition, the State deposit fee may be paid with SNAP benefits; however, any additional deposit fee amount in excess of the State deposit fee must be paid in cash or another form of payment other than SNAP benefits. In order to codify this provision of the 2014 Farm Bill, the Department is modifying the definition of ``Eligible Foods'' at 7 CFR 271.2 to exclude any deposit fees in excess of the amount of the State deposit fee, regardless of whether the fee is included in the shelf price of the food or food product. USDA is also amending SNAP regulations at 7 CFR 274.7, so that program benefits may not be used to pay for deposit fees in excess of the amount of the State fee reimbursement required to purchase any SNAP-eligible food item contained in a returnable bottle or can. II. Procedural Matters Issuance of a Final Rule The Department has determined that this rule is appropriate for final rulemaking because we believe these amendments to be noncontroversial and because these provisions are nondiscretionary as they are required by the Act. Regulatory Impact Analysis This final rule has been designated as not significant by OMB. Executive Order 12866 and 13563 Executive Orders 12866 and 13563 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). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This final 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 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. Pursuant to that review, it has been certified that this final rule would not have a significant impact on a substantial number of small entities. 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 [[Page 53242]] effective or least burdensome alternative that achieves the objectives of the rule. This final 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 The Supplemental Nutrition Assistance Program (SNAP) is listed in the Catalog of Federal Domestic Assistance Programs under 10.551. For the reasons set forth in the final rule in 7 CFR part 3015, subpart V, and related Notice (48 FR 29115, June 24, 1983), this program is excluded in the scope of Executive Order 12372 which requires intergovernmental consultation with State and local officials. Executive Order 13175 This rule has been reviewed in accordance with the requirements of Executive Order 13175, ``Consultation and Coordination with Indian Tribal Governments.'' 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. FNS has assessed the impact of this rule on Indian tribes and determined that this rule does not, to our knowledge, have tribal implications that require tribal consultation under EO 13175. On February 18, 2015, the agency held a webinar for tribal participation and comments. If a Tribe requests consultation, FNS will work with the Office of Tribal Relations to ensure meaningful consultation is provided where changes, additions and modifications identified herein are not expressly mandated by Congress. 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. USDA has considered this rule's impact on State and local agencies and has determined that it does not have Federalism implications. Executive Order 12988 This rule has been reviewed under Executive Order 12988, Civil Justice Reform. This rule is not 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. State agencies were required to apply the threshold changes in this rule to all cases as of the FY 2014 QC review period. All other changes in this rule were effective immediately upon enactment of the Act, except the medical marijuana and container deposit fees changes which are not intended to have retroactive effect unless so specified in the Effective Dates section. Prior to any judicial challenge to the provisions of the final rule, all applicable administrative procedures must be exhausted. 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 protected classes of individuals to participate in SNAP. USDA has no data pertaining to the medical marijuana change. The change to container deposit fees does not apply to the certification determinations made on the intended beneficiaries of the SNAP. Quality Control procedures are designed to evaluate the accuracy of the application of SNAP certification policy and therefore, the evaluation procedures do not impact protected classes or individuals. Paperwork Reduction Act Information collections associated with the changes to the Quality Control error tolerance threshold have been approved under following OMB control numbers: 0584-0074, Worksheet for SNAP Quality Control Reviews (expiration date May 31, 2016), and 0584-0299 Form FNS-380-1, Quality Control Review Schedule, Form FNS-380-1 (February 29, 2016). Other changes in this rule do not contain information collection requirements subject to approval by the Office of Management and Budget under the Paperwork Reduction Act of 1994. E-Government Act Compliance USDA 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 7 CFR Part 271 Food stamps, Grant programs--social programs, Reporting and recordkeeping requirements. 7 CFR Part 273 Administrative practice and procedures, Aliens, Claims, Supplemental Nutrition Assistance Program, Fraud, Grant programs-- social programs, Penalties, Reporting and recordkeeping requirements, Social Security, Students. 7 CFR Part 274 Food stamps, Grant programs--social programs, Reporting and recordkeeping requirements. 7 CFR Part 275 Administrative practice and procedure, Supplemental Nutrition Assistance Program, Reporting, and recordkeeping requirements. For the reasons set forth in the preamble, 7 CFR parts 271, 273, 274, and 275 are amended as follows: PART 271--GENERAL INFORMATION AND DEFINITIONS 0 1. The authority citation for part 271 continues to read as follows: Authority: 7 U.S.C. 2011-2036. Sec. 271.2 [Amended] 0 2. In Sec. 271.2, amend the definition of Eligible foods by adding, at the end of paragraph (1), the words ``and any deposit fee in excess of the amount of the State fee reimbursement (if any) required to purchase any food or food product contained in a returnable bottle, can, or other container, regardless of whether the fee is included in the shelf price posted for the food or food product'': PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS 0 3. The authority citation for part 273 continues to read as follows: Authority: 7 U.S.C. 2011-2036. [[Page 53243]] 0 4. In Sec. 273.9, revise paragraph (d)(3)(iii) to read as follows: Sec. 273.9 Income and deductions. * * * * * (d) * * * (3) * * * (iii) Prescription drugs, when prescribed by a licensed practitioner authorized under State law, and other over-the-counter medication (including insulin), when approved by a licensed practitioner or other qualified health professional. (A) Medical supplies and equipment. Costs of medical supplies, sick-room equipment (including rental) or other prescribed equipment are deductible; (B) Exclusions. The cost of any Schedule I controlled substance under The Controlled Substances Act, 21 U.S.C. 801 et seq., and any expenses associated with its use, are not deductible. * * * * * PART 274--ISSUANCE AND USE OF PROGRAM BENEFITS 0 5. The authority citation for part 274 continues to read as follows: Authority: 7 U.S.C. 2011-2036. 0 6. In Sec. 274.7, add paragraph (j) to read as follows: Sec. 274.7 Benefits redemption by eligible households. * * * * * (j) Container deposit fees. Program benefits may not be used to pay for deposit fees in excess of the amount of the State fee reimbursement required to purchase any food or food product contained in a returnable bottle or can, regardless of whether the fee is included in the shelf price posted for item. The returnable container type and fee must be included in State law in order for the customer to be able to pay for the upfront deposit with SNAP benefits. If a SNAP eligible product has a State deposit fee associated with it, the product remains eligible for purchase with SNAP benefits, and the State deposit fee may be paid with SNAP as well; however, any fee in excess of the State deposit fee must be paid in cash or other form of payment other than with SNAP benefits. PART 275--PERFORMANCE REPORTING SYSTEM 0 7. The authority citation for part 275 continues to read as follows: Authority: 7 U.S.C. 2011-2036. 0 8. In Sec. 275.12, revise paragraph (f)(2) to read as follows: Sec. 275.12 Review of active cases. * * * * * (f) * * * (2) Basis of issuance of errors. If the reviewer determines that SNAP allotments were either overissued or underissued to eligible households in the sample month, the State agency shall code and report any variances that directly contributed to the error determination that were discovered and verified during the course of the review. For fiscal year 2014, only variances that exceed $37.00 (the threshold) shall be included in the calculation of the underissuance error rate, overissuance error rate, and payment error. For fiscal years 2015 and thereafter, this QC tolerance level shall be adjusted annually by the percentage by which the Thrifty Food Plan (TFP) for the 48 contiguous States and the District of Columbia is adjusted. If the State agency has chosen to report information on all variances in elements of eligibility and basis of issuance, the reviewer shall code and report any other such variances that were discovered and verified during the course of the review. * * * * * 0 9. In Sec. 275.23: 0 a. Revise paragraphs (e)(1)(i) through (iii). 0 b. Remove paragraph (e)(1)(iv). The revisions read as follows: Sec. 275.23 Determination of State agency program performance. * * * * * (e) * * * (1) * * * (i) Require the State agency to invest up to 50 percent of the liability in activities to improve program administration (new investment money shall not be matched by Federal funds) and (ii) Designate up to 50 percent of the liability as ``at-risk'' for repayment if a liability is established based on the State agency's payment error rate for the subsequent fiscal year, or (iii) Choose any combination of these options. * * * * * 0 10. In Sec. 275.24, add paragraph (a)(8) to read as follows: Sec. 275.24 High performance bonuses. (a) * * * (8) Bonus award money shall be used only on SNAP-related expenses including, but not limited to, investments in technology; improvements in administration and distribution; and actions to prevent fraud, waste and abuse. (i) Bonus payments shall not be used for household benefits, including incentive payments. (ii) State agency awardees shall submit their intended spending plans of bonus payments to FNS to verify appropriate use. * * * * * Dated: August 27, 2015. Audrey Rowe, Administrator, Food and Nutrition Service. [FR Doc. 2015-21906 Filed 9-2-15; 8:45 am] BILLING CODE 3410-30-P
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(1) Has not conformed to the terms DATES: This rule will become effective not excuse a State from following
and conditions of a previous award; on November 2, 2015. correction or claims procedures for any
(2) Has a change of control as defined FOR FURTHER INFORMATION CONTACT: over or under issuance that is under the
in § 910.368; Vicky T. Robinson, FNS, 3101 Park tolerance level. Typically, changes that
(3) Fails to comply with real property Center Drive, Room #418, Alexandria, affect the QC review period are made
and equipment requirements at VA 22302, 703–305–2476. effective the upcoming fiscal year so
§ 910.360; or that State and Federal QC reviewers can
SUPPLEMENTARY INFORMATION:
(4) Is not otherwise responsible. prepare for the procedural and
[FR Doc. 2015–21693 Filed 9–2–15; 8:45 am] I. Background systematic changes required. However,
BILLING CODE 6450–01–P General since the QC review period for FY 2014
had already begun when the Act was
On February 7, 2014, the President signed, the Department was required to
signed the 2014 Farm Bill. Amendments take immediate action at that point on
DEPARTMENT OF AGRICULTURE
exclude medical marijuana from announcement of a new threshold, and
Food and Nutrition Service allowable medical expense deductions established the new $37 threshold
for SNAP purposes, update the QC error through an implementing memorandum
7 CFR Parts 271, 273, 274, and 275 tolerance threshold for Fiscal Year (FY) on March 21, 2014. This rule codifies
2014 and index this amount for FY 2015 what was put in place via that
RIN 0584–AE48 and thereafter based on an adjustment implementing memorandum.
in the Thrifty Food Plan (TFP), Section 4019 of the 2014 Farm Bill
Supplemental Nutrition Assistance
eliminate the Department’s ability to also requires USDA to adjust FY 2014’s
Program (SNAP): Agricultural Act of
2014 Nondiscretionary Provisions waive any portion of a State’s QC threshold by the percentage by which
Liability amount except as provided in the Thrifty Food Plan (TFP) is adjusted
AGENCY: Food and Nutrition Service SNAP regulations at 7 CFR 275.23(f), under Section 3(u)(4) of the Food and
(FNS), USDA. ensure that State agencies may use High Nutrition Act of 2008. The Department
ACTION: Final rule. Performance Bonus Payments only for uses three TFPs to establish benefit
SNAP administrative expenses, and levels, one for the 48 contiguous States
SUMMARY: The Food and Nutrition prohibit SNAP benefits from being used and District of Columbia, one for
Service (FNS) of the Department of to pay for container deposit fees in Alaska, and one for Hawaii. Although
Agriculture (USDA) is amending excess of the State fee reimbursement. there are different TFPs used in SNAP
Supplemental Nutrition Assistance benefit calculation, the Department is
Program (SNAP or Program) regulations Medical Marijuana
required to have one national
to codify certain nondiscretionary USDA is amending SNAP regulations performance measure for State payment
provisions of the Agricultural Act of at 7 CFR part 273 in accordance with error rates. For that reason, the
2014 (the ‘‘2014 Farm Bill’’). Section 4005 of the 2014 Farm Bill. Department has concluded that it has no
This final rule excludes medical Under Section 4005, USDA is instructed discretion in using a single TFP-related
marijuana from being treated as an to promulgate regulations to explicitly adjustment mechanism for all States.
allowable medical expense for the prohibit States from utilizing the excess For FY 2015, the Department adjusted
purposes of determining the excess medical deduction to deduct medical the threshold amount by using the TFP
medical expense deduction under marijuana costs from a household’s for the 48 contiguous States and District
SNAP. This rule also amends multiple income for SNAP purposes. of Columbia as the TFP baseline for all
SNAP regulations pursuant to Under the Controlled Substances Act, 53 State agencies, resulting in a
nondiscretionary changes under the 21 U.S.C. 801 et seq., marijuana is a tolerance level of $38 for FY 2015. In
2014 Farm Bill related to Quality Schedule I controlled substance that has this final rule, the Department is
Control (QC). This rule updates the QC no currently accepted medical use and establishing that the threshold will be
error tolerance threshold to no more cannot be prescribed for medicinal adjusted each year by using the TFP for
than $37 for Fiscal Year (FY) 2014. For purposes. 21 U.S.C. 812(b)(1)(C). SNAP the 48 contiguous States and District of
FY 2015 and thereafter, the QC is a Federal program and must conform Columbia. A policy memo will be
tolerance level will be set annually to Federal law regarding illegal issued to States notifying them of the
based on an adjustment in the Thrifty substances. Therefore, marijuana and adjustment to the threshold amount at
Food Plan (TFP). In addition, this rule other Schedule I controlled substances the start of each QC review period.
eliminates USDA’s ability to waive any are not allowable medical expenses
portion of a State’s QC liability amount, Liability Amount Determinations
under SNAP. USDA is incorporating
except as provided in SNAP regulations this requirement into the regulations at After each fiscal year, in accordance
that requires State agencies to use SNAP new subsection 7 CFR with regulatory requirements, a
High Performance Bonus Payments only 273.9(d)(3)(iii)(B). determination is made for each State
for SNAP administrative expenses agency as to whether or not that FY’s
including investments in technology, Error Tolerance Threshold QC Error Rate would lead to the State
improvements in administration and Section 16 (c)(1)(A)(ii)(I) of the Food being assessed a liability amount. State
distribution, and actions to prevent and Nutrition Act of 2008 was amended agencies assessed liabilities are given
fraud, waste and abuse. Finally, this by Section 4019 of the 2014 Farm Bill the opportunity to pay their liabilities in
rule amends SNAP regulations to require that the Secretary set the full or designate 50 percent of the
pertaining to the use of SNAP benefits tolerance level for excluding small liability amount as at-risk for repayment
rmajette on DSK7SPTVN1PROD with RULES
to pay for container deposit fees. The errors for fiscal year 2014, at an amount if a liability amount for an excessive
2014 Farm Bill prohibits SNAP benefits not greater than $37. Until that point in payment error rate is established for the
from being used to pay for container time, the QC tolerance level was at $50, following FY. State agencies must then
deposit fees in excess of any State fee meaning only variances that exceed $50 designate the other 50 percent of the
reimbursement required to purchase were included in the calculation of the liability amount to be used for new
food in a returnable bottle or can. payment error rate. This threshold does investment in approved activities to
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effective or least burdensome alternative (6)(b)(2)(B) of Executive Order 13132. Management and Budget under the
that achieves the objectives of the rule. USDA has considered this rule’s impact Paperwork Reduction Act of 1994.
This final rule does not contain on State and local agencies and has
Federal mandates (under the regulatory E-Government Act Compliance
determined that it does not have
provisions of Title II of the UMRA) for Federalism implications. USDA is committed to complying
State, local and Tribal governments or with the E-Government Act, 2002, to
the private sector of $100 million or Executive Order 12988
promote the use of the Internet and
more in any one year. Thus, the rule is This rule has been reviewed under other information technologies to
not subject to the requirements of Executive Order 12988, Civil Justice provide increased opportunities for
sections 202 and 205 of the UMRA. Reform. This rule is not intended to citizen access to Government
have preemptive effect with respect to information and services, and for other
Executive Order 12372 any State or local laws, regulations or purposes.
The Supplemental Nutrition policies which conflict with its
Assistance Program (SNAP) is listed in provisions or which would otherwise List of Subjects
the Catalog of Federal Domestic impede its full and timely 7 CFR Part 271
Assistance Programs under 10.551. For implementation. State agencies were
the reasons set forth in the final rule in required to apply the threshold changes Food stamps, Grant programs—social
7 CFR part 3015, subpart V, and related in this rule to all cases as of the FY 2014 programs, Reporting and recordkeeping
Notice (48 FR 29115, June 24, 1983), QC review period. All other changes in requirements.
this program is excluded in the scope of this rule were effective immediately 7 CFR Part 273
Executive Order 12372 which requires upon enactment of the Act, except the
intergovernmental consultation with medical marijuana and container Administrative practice and
State and local officials. deposit fees changes which are not procedures, Aliens, Claims,
intended to have retroactive effect Supplemental Nutrition Assistance
Executive Order 13175 unless so specified in the Effective Dates Program, Fraud, Grant programs—social
This rule has been reviewed in section. Prior to any judicial challenge programs, Penalties, Reporting and
accordance with the requirements of to the provisions of the final rule, all recordkeeping requirements, Social
Executive Order 13175, ‘‘Consultation applicable administrative procedures Security, Students.
and Coordination with Indian Tribal must be exhausted. 7 CFR Part 274
Governments.’’ Executive Order 13175
requires Federal agencies to consult and Civil Rights Impact Analysis Food stamps, Grant programs—social
coordinate with tribes on a government- The Department has reviewed this programs, Reporting and recordkeeping
to-government basis on policies that rule in accordance with the Department requirements.
have tribal implications, including Regulation 4300–4, ‘‘Civil Rights Impact 7 CFR Part 275
regulations, legislative comments or Analysis,’’ to identify and address any
proposed legislation, and other policy major civil rights impacts the rule might Administrative practice and
statements or actions that have have on minorities, women, and persons procedure, Supplemental Nutrition
substantial direct effects on one or more with disabilities. After a careful review Assistance Program, Reporting, and
Indian tribes, on the relationship of the rule’s intent and provisions, the recordkeeping requirements.
between the Federal Government and Department has determined that this For the reasons set forth in the
Indian tribes or on the distribution of rule will not in any way limit or reduce preamble, 7 CFR parts 271, 273, 274,
power and responsibilities between the the ability of protected classes of and 275 are amended as follows:
Federal Government and Indian tribes. individuals to participate in SNAP.
FNS has assessed the impact of this USDA has no data pertaining to the PART 271—GENERAL INFORMATION
rule on Indian tribes and determined medical marijuana change. The change AND DEFINITIONS
that this rule does not, to our to container deposit fees does not apply
knowledge, have tribal implications that to the certification determinations made ■ 1. The authority citation for part 271
require tribal consultation under EO on the intended beneficiaries of the continues to read as follows:
13175. On February 18, 2015, the SNAP. Quality Control procedures are Authority: 7 U.S.C. 2011–2036.
agency held a webinar for tribal designed to evaluate the accuracy of the
§ 271.2 [Amended]
participation and comments. If a Tribe application of SNAP certification policy
requests consultation, FNS will work and therefore, the evaluation procedures ■ 2. In § 271.2, amend the definition of
with the Office of Tribal Relations to do not impact protected classes or Eligible foods by adding, at the end of
ensure meaningful consultation is individuals. paragraph (1), the words ‘‘and any
provided where changes, additions and deposit fee in excess of the amount of
Paperwork Reduction Act the State fee reimbursement (if any)
modifications identified herein are not
expressly mandated by Congress. Information collections associated required to purchase any food or food
with the changes to the Quality Control product contained in a returnable bottle,
Executive Order 13132 error tolerance threshold have been can, or other container, regardless of
Executive Order 13132 requires approved under following OMB control whether the fee is included in the shelf
Federal agencies to consider the impact numbers: 0584–0074, Worksheet for price posted for the food or food
of their regulatory actions on State and SNAP Quality Control Reviews product’’:
local governments. Where such actions (expiration date May 31, 2016), and
rmajette on DSK7SPTVN1PROD with RULES
have federalism implications, agencies 0584–0299 Form FNS–380–1, Quality PART 273—CERTIFICATION OF
are directed to provide a statement for Control Review Schedule, Form FNS– ELIGIBLE HOUSEHOLDS
inclusion in the preamble to the 380–1 (February 29, 2016). Other
regulations describing the agency’s changes in this rule do not contain ■ 3. The authority citation for part 273
considerations in terms of the three information collection requirements continues to read as follows:
categories called for under Section subject to approval by the Office of Authority: 7 U.S.C. 2011–2036.
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![Federal Register / Vol. 80, No. 171 / Thursday, September 3, 2015 / Rules and Regulations 53243
■ 4. In § 273.9, revise paragraph § 275.12 Review of active cases. (i) Bonus payments shall not be used
(d)(3)(iii) to read as follows: * * * * * for household benefits, including
(f) * * * incentive payments.
§ 273.9 Income and deductions. (ii) State agency awardees shall
(2) Basis of issuance of errors. If the
* * * * * reviewer determines that SNAP submit their intended spending plans of
(d) * * * allotments were either overissued or bonus payments to FNS to verify
(3) * * * underissued to eligible households in appropriate use.
(iii) Prescription drugs, when * * * * *
the sample month, the State agency
prescribed by a licensed practitioner shall code and report any variances that Dated: August 27, 2015.
authorized under State law, and other directly contributed to the error Audrey Rowe,
over-the-counter medication (including determination that were discovered and Administrator, Food and Nutrition Service.
insulin), when approved by a licensed verified during the course of the review.
practitioner or other qualified health [FR Doc. 2015–21906 Filed 9–2–15; 8:45 am]
For fiscal year 2014, only variances that
professional. BILLING CODE 3410–30–P
exceed $37.00 (the threshold) shall be
(A) Medical supplies and equipment.
included in the calculation of the
Costs of medical supplies, sick-room
underissuance error rate, overissuance DEPARTMENT OF AGRICULTURE
equipment (including rental) or other
error rate, and payment error. For fiscal
prescribed equipment are deductible;
years 2015 and thereafter, this QC Agricultural Marketing Service
(B) Exclusions. The cost of any
tolerance level shall be adjusted
Schedule I controlled substance under
annually by the percentage by which the 7 CFR Part 1205
The Controlled Substances Act, 21
Thrifty Food Plan (TFP) for the 48
U.S.C. 801 et seq., and any expenses [Doc. # AMS–CN–14–0098]
contiguous States and the District of
associated with its use, are not
Columbia is adjusted. If the State agency Cotton Board Rules and Regulations:
deductible.
has chosen to report information on all Adjusting Supplemental Assessment
* * * * * variances in elements of eligibility and on Imports (2015 Amendments)
basis of issuance, the reviewer shall
PART 274—ISSUANCE AND USE OF AGENCY: Agricultural Marketing Service,
code and report any other such
PROGRAM BENEFITS USDA.
variances that were discovered and
■ 5. The authority citation for part 274 verified during the course of the review. ACTION: Direct final rule.
continues to read as follows: * * * * * SUMMARY: The Agricultural Marketing
Authority: 7 U.S.C. 2011–2036. ■ 9. In § 275.23: Service (AMS) is amending the Cotton
■ a. Revise paragraphs (e)(1)(i) through Board Rules and Regulations, decreasing
■ 6. In § 274.7, add paragraph (j) to read
(iii). the value assigned to imported cotton
as follows:
■ b. Remove paragraph (e)(1)(iv). for the purposes of calculating
§ 274.7 Benefits redemption by eligible The revisions read as follows: supplemental assessments collected for
households. use by the Cotton Research and
§ 275.23 Determination of State agency Promotion Program. This amendment is
* * * * * program performance.
(j) Container deposit fees. Program required each year to ensure that
benefits may not be used to pay for * * * * * assessments collected on imported
deposit fees in excess of the amount of (e) * * * cotton and the cotton content of
the State fee reimbursement required to (1) * * * imported products will be the same as
purchase any food or food product (i) Require the State agency to invest those paid on domestically produced
contained in a returnable bottle or can, up to 50 percent of the liability in cotton.
regardless of whether the fee is included activities to improve program DATES: This direct rule is effective
in the shelf price posted for item. The administration (new investment money November 2, 2015, without further
returnable container type and fee must shall not be matched by Federal funds) action or notice, unless significant
be included in State law in order for the and adverse comment is received by October
customer to be able to pay for the (ii) Designate up to 50 percent of the 5, 2015. If significant adverse comment
upfront deposit with SNAP benefits. If liability as ‘‘at-risk’’ for repayment if a is received, AMS will publish a timely
a SNAP eligible product has a State liability is established based on the withdrawal of the amendment in the
deposit fee associated with it, the State agency’s payment error rate for the Federal Register.
product remains eligible for purchase subsequent fiscal year, or
ADDRESSES: Written comments may be
with SNAP benefits, and the State (iii) Choose any combination of these submitted to the addresses specified
deposit fee may be paid with SNAP as options. below. All comments will be made
well; however, any fee in excess of the * * * * * available to the public. Please do not
State deposit fee must be paid in cash ■ 10. In § 275.24, add paragraph (a)(8) to include personally identifiable
or other form of payment other than read as follows: information (such as name, address, or
with SNAP benefits. other contact information) or
§ 275.24 High performance bonuses. confidential business information that
PART 275—PERFORMANCE (a) * * *
REPORTING SYSTEM you do not want publically disclosed.
rmajette on DSK7SPTVN1PROD with RULES
(8) Bonus award money shall be used All comments may be posted on the
■ 7. The authority citation for part 275 only on SNAP-related expenses Internet and can be retrieved by most
continues to read as follows: including, but not limited to, Internet search engines. Comments may
investments in technology; be submitted anonymously.
Authority: 7 U.S.C. 2011–2036. improvements in administration and Comments, identified by AMS–CN–
■ 8. In § 275.12, revise paragraph (f)(2) distribution; and actions to prevent 14–0098, may be submitted
to read as follows: fraud, waste and abuse. electronically through the Federal
VerDate Sep<11>2014 13:52 Sep 02, 2015 Jkt 235001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\03SER1.SGM 03SER1](https://thefederalregister.org/doc/80_FR_53411/page/4.svg)
Document Created: 2015-12-15 09:56:50
Document Modified: 2015-12-15 09:56:50
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule will become effective on November 2, 2015. | |
| Contact | Vicky T. Robinson, FNS, 3101 Park Center Drive, Room #418, Alexandria, VA 22302, 703-305-2476. | |
| FR Citation | 80 FR 53240 | |
| RIN Number | 0584-AE48 | |
| CFR Citation | 7
CFR
271 7 CFR 273 7 CFR 274 7 CFR 275 | |
| CFR Associated | Food Stamps; Grant Programs-Social Programs; Reporting and Recordkeeping Requirements; Administrative Practice and Procedures; Aliens; Claims; Supplemental Nutrition Assistance Program; Fraud; Penalties; Social Security; Students; Administrative Practice and Procedure; Reporting and Recordkeeping Requirements |
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