81 FR 4159 - SNAP Requirement for National Directory of New Hires Employment Verification and Annual Program Activity Reporting
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service Federal Register Volume 81, Issue 16 (January 26, 2016)
Food and Nutrition Service
Federal Register Volume 81, Issue 16 (January 26, 2016)
| Page Range | 4159-4163 | |
| FR Document | 2016-01402 |
[Federal Register Volume 81, Number 16 (Tuesday, January 26, 2016)] [Rules and Regulations] [Pages 4159-4163] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-01402] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. ======================================================================== Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Rules and Regulations [[Page 4159]] DEPARTMENT OF AGRICULTURE Food and Nutrition Service 7 CFR Part 272 [FNS-2015-0029] RIN 0584-AE36 SNAP Requirement for National Directory of New Hires Employment Verification and Annual Program Activity Reporting AGENCY: Food and Nutrition Service (FNS), USDA. ACTION: Interim final rule. ----------------------------------------------------------------------- SUMMARY: The Food and Nutrition Service is codifying the requirement for State agencies to verify applicant employment data through the National Directory of New Hires (NDNH) for the determination of Supplemental Nutrition Assistance Program (SNAP) eligibility and correct amount of benefits, pursuant to section 4013 of the Agricultural Act of 2014. This interim final rule requires that State agencies access employment data through the NDNH at the time of SNAP certification, including recertification, and aims to improve Program integrity by reducing the risk of improper payments due to unreported or misreported income. This rule further amends regulations to change the reporting frequency requirement for the ``Program and Budget Summary Statement Part B--Program Activity Statement'' from an annual submission based on the State fiscal year to a quarterly submission based on the Federal fiscal year. DATES: To be considered, written comments on this interim final rule must be received on or before March 28, 2016. This rule will become effective March 28, 2016. Implementation Date: State agencies have already been instructed through FNS directive to implement this provision as required by the Agricultural Act of 2014. ADDRESSES: Comments may be submitted in writing by one of the following methods:Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting comments. Mail: Send written comments to Jane Duffield, State Administration Branch, Program Accountability and Administration Division, Supplemental Nutrition Assistance Program, Food and Nutrition Service, USDA, 3101 Park Center Drive, Room 818, Alexandria, VA 22302. All written comments submitted in response to this interim final 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 http://www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Jane Duffield, Food and Nutrition Service, U.S. Department of Agriculture, 3101 Park Center Drive, Room 818, Alexandria, VA 22302, by phone at (703) 305-2425 or via email at [email protected]. SUPPLEMENTARY INFORMATION: I. Background With this interim final rule, the Food and Nutrition Service (FNS) amends the SNAP regulations at 7 CFR part 272 to require State agencies to access employment data through the National Directory of New Hires (NDNH) at the time of certification, including recertification, to determine the eligibility status and correct benefit amount for SNAP applicants and participants. This requirement codifies section 4013 of the Agricultural Act of 2014 (Pub. L. 113-79). The legislation was effective on February 7, 2014, and FNS implemented the mandated requirements, including that associated with the NDNH requirement, by directive to all SNAP State agencies on March 21, 2014. This interim rule also amends regulations at 7 CFR 272.2 to change the requirement for State agency submission of the ``Program and Budget Summary Statement Part B--Program Activity Statement'' (FNS-366B, OMB #0584- 0594, expiration date 6/30/2017) from an annual submission based on the State fiscal year to a quarterly submission based on the Federal fiscal year. Implement National Directory of New Hires Employment Verification Requirement Current regulations at Sec. 273.2(f)(1)(i) require State agencies to verify gross non-exempt income for all households prior to certification or, in instances where the State's attempts to verify the income with the employer have been unsuccessful, use the best available information to determine benefits. Additionally, regulations at Sec. 273.12(a) and Sec. 273.21 establish the SNAP household's responsibility to report applicable changes in income while participating in the Program. Thus, the accuracy of Program benefits issued to a household relies on the accuracy of reported and verified information. The NDNH is a repository of employment, unemployment insurance, and quarterly wage data maintained by the U.S. Department of Health and Human Services (HHS) Office of Child Support Enforcement (OCSE). The data residing in the NDNH includes W-4 (new hire) records from the State Directory of New Hires, quarterly wage and unemployment insurance data from the State workforce agencies, and new hire and quarterly wage data from Federal agencies. The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) mandated the establishment of the NDNH in 1996. A major component of the Federal Parent Locator Service (FPLS), the NDNH was originally established for State Child Support Enforcement (CSE) Agencies to locate non-custodial parents in order to establish and enforce child support orders. As of February 2015, there were 64,571 employers and 33,610 subsidiaries listed in the NDNH. The number of employers and their subsidiaries listed in the NDNH generally increase each year. In 2014, over 4,320 new employers were added to the database. The NDNH may only be accessed by authorized agencies with legislative authority. On July 27, 2006, Public Law 109-250 amended section 453(j) of Social Security Act (42 U.S.C. 653(j)) by the adding a new paragraph (10), which [[Page 4160]] authorized State agencies administering SNAP under the Food and Nutrition Act of 2008 [7 U.S.C. 2011 et seq.] to access NDNH data for carrying out Program responsibilities. Prior to the amendment, State SNAP agencies could only access employment data made available through their own State Directory of New Hires for the determination of SNAP eligibility. Public Law 109-250 gave State SNAP agencies the option to access NDNH, thus providing an opportunity to receive employment data from other States, multi-State employers, and Federal agencies. Despite this change in legislation, few State agencies exercised the option to use it. Most State agencies instead opted to access employment data via their respective State Directory of New Hires, State Workforce Agency, and other data sources. By now requiring State agencies to access NDNH data for SNAP, FNS believes States will benefit from a reduction in improper payments due to unreported income. This rule codifies in Sec. 272.16 the requirement that each State agency must establish a system to compare identifiable information about each adult household member against data from the NDNH. Section 4013 of the Agricultural Act of 2014 mandates that States use NDNH to verify applicant and participant employment data and enter into a computer matching agreement with HHS pursuant to the authority in 42 U.S.C. 653(j)(10). State agencies must enter into a computer matching agreement with HHS in order to access the NDNH. States must continue to adhere to requirements Sec. 272.12 addressing the use of information obtained from computer matching programs. The State agency may only use the required data matching to verify that the employment status of adult household members is accurately reported on the SNAP application. Because the NDNH does not include employment data on individuals under the age of 18, this verification requirement is limited to adult household members. The law further mandates the State agency to conduct matches against NDNH new hire data at the time of certification. FNS believes that conducting the match at both initial application and recertification will meet the intent of section 4013, and is therefore codifying the requirement for both certification and recertification. The NDNH maintains three data sets. While this rule addresses the requirement for State agency matching against the NDNH new hire data set, States have the option to match against the quarterly wage and unemployment insurance data sets at their own discretion. Because the timeliness of quarterly wage and quarterly unemployment insurance data may not provide a true benefit to the State agency in determining eligibility and benefit levels, this rule only requires that States match against NDNH new hire data at minimum. Data matching has provided many positive results for the efficient and effective administration of the program. However, it has come to the attention of FNS that there has been some confusion regarding reporting systems and integrity provisions for SNAP, specifically with regard to simplified reporting. Therefore, FNS wishes to clarify that in addition to the requirements of these integrity provisions, State agencies are also expected to comply with the requirements of the reporting system applicable to SNAP households provided at 7 CFR 273.12. State options for action on reported changes during the certification period must be followed, even for required data matches. Data received through NDNH is not considered verified upon receipt. Consistent with requirements set forth in the Privacy Act (5 U.S.C. 552a(p)) and in SNAP regulation at 7 CFR 272.12(c), the State agency may not take any adverse action to terminate, deny, suspend, or reduce benefits to an applicant or SNAP recipient based on information provided by the NDNH unless the match information has been independently verified and a Notice of Adverse Action or Notice of Denial has been sent to the household. The Privacy Act defines independent verification as the investigation and confirmation of specific information relating to an individual used as a basis for an adverse action against the individual. Should there be a delay in the State agency's ability to verify the NDNH new hire match results within the required application processing timeline, the State agency is expected to continue processing the application without the requested documentation verifying the information. If, after either certification or recertification is completed, the State agency receives verification of information obtained through the NDNH match indicating that the household is ineligible or was approved for the incorrect benefit amount, the State should deny, reduce or terminate benefits, as applicable, and establish a claim to collect any benefits that were overpaid, in accordance with regulations at Sec. 273.18. Change the Reporting Frequency of Program Activity Statement (FNS-366B) With this rule, FNS is also modifying a reporting requirement of Stte agencies by increasing the frequency of submitting a Program Activity Statement from an annual submission based on the State fiscal year to a quarterly submission based on the Federal fiscal year. Section 16(a) of the Food and Nutrition Act of 2008 authorizes 50 percent Federal reimbursement for State agency costs to administer SNAP. SNAP regulations at 7 CFR 272.2(a) require that State agencies plan and budget Program operations and establish objectives for the next year. The basic components of the State Plan of Operation are the Federal/State Agreement, the Budget Projection Statement and the Program Activity Statement (7 CFR 272.2(a)(2)). Under current regulations at 7 CFR 272.2(c), the State agency is required to submit to FNS for approval a Budget Projection Statement (FNS-366A) which projects total Federal administrative costs for the upcoming fiscal year and a Program Activity Statement (FNS-366B) which provides Program activity data for the preceding fiscal year. Current regulations at 7 CFR 272.2(e)(2)(ii) require State agencies to submit the Program Activity Statement to FNS no later than 45 days after the end of the State agency's fiscal year, which is typically August 15 for most States. The Program Activity Statement was created to substantiate the costs the State agency expects to incur during the next fiscal year. It currently provides data on the number of SNAP applications the State agency processed, the number of fair hearings the State agency conducted, and the fraud control activities in which the State agency was engaged in the preceding year. FNS uses the data to monitor State agency activity levels and performance. While originally intended only to support the States' annual SNAP budget request by providing a summary of State SNAP activities in the previous State fiscal year, the data reported on the Program Activity Statement has also become a vital tool for monitoring State operations related to application processing, fair hearings, and fraud prevention activities. The data reported on the Program Activity Statement enables FNS to identify areas that may need improvement and to provide more effective technical assistance to State agencies. The Agency believes an increase in reporting frequency will allow for greater and more timely access to Program data. It will help States, FNS, and other stakeholders identify [[Page 4161]] trends, inconsistencies and inefficiencies earlier in each fiscal year. A 2014 U.S. Government Accountability Office (GAO) performance audit of FNS (GAO-14-641, Enhanced Detection Tools and Reporting Could Improve Efforts to Combat Recipient Fraud) concluded that State-reported data on anti-fraud activities are not reliable for ensuring Program integrity and assessing States' performance. Additionally, the study warned that data inconsistencies could limit FNS' ability to identify more effective and efficient practices for State anti-fraud efforts. With more current data, States and other interested parties will be able to identify gaps and areas in need of greater attention, and allow States to respond more quickly to those gaps. This increased responsiveness, along with a concurrent FNS effort to update and improve the reliability of the data collected in the Program Activity Statement, will help to address directly the concerns raised by GAO. With this regulation, FNS is also aligning the new quarterly requirement to the Federal fiscal year. As most SNAP data is reported monthly, quarterly or annually based on the Federal fiscal year, this change will improve FNS' ability to conduct data analysis by using data collected over consistent periods of time. II. Procedural Matters 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 interim 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 Impact Analysis This interim final 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. Pursuant to that review, it has been certified that this interim final rule would not have a significant impact on a substantial number of small entities. While there may be some impact on the State and local agencies that administer the Program in implementing this provision, the impact is not expected to be significant. Applicants and recipients may also be impacted to the extent that matching client information with records in the National Directory of New Hires may identify a client as ineligible for the Program, thus preventing them from Program participation. 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 interim 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 is listed in the Catalog of Federal Domestic Assistance under No. 10.551. For the reasons set forth in the Final Rule codified in 7 CFR part 3015, subpart V and related Notice (48 FR 29115, June 24, 1983), 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 13132. The Department has considered the impact of this interim final rule on State and local governments and has determined that this rule does not have federalism implications. Therefore, under section 6(b) of the Executive Order, a federalism summary is not required. Executive Order 12988, Civil Justice Reform This interim final 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 interim final rule in accordance with USDA Regulation 4300-4, ``Civil Rights Impact Analysis,'' to identify any major civil rights impacts the rule might have on Program participants on the basis of age, race, color, national origin, sex or disability. After a careful review of the rule's intent and provisions, FNS has determined that this rule is not expected to affect the participation of protected individuals in SNAP. 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 [[Page 4162]] 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 E.O. 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. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; 5 CFR part 1320) requires the Office of Management and Budget (OMB) approve all collections of information by a Federal agency before they can be implemented. Respondents are not required to respond to any collection of information unless it displays a current valid OMB control number. In accordance with the Paperwork Reduction Act of 1995, this interim final rule contains information collections that are subject to review and approval by the Office of Management and Budget; therefore, FNS is submitting an information collection under 0584-NEW, which contains the burden information in the rule for OMB's review and approval. These changes are contingent upon OMB approval under the Paperwork Reduction Act of 1995. When the information collection requirements have been approved, the Department will publish a separate action in the Federal Register announcing OMB's approval. Once approved the new provisions in this rule and the burden requirement associated with the National Directory of New Hires will be merged into the existing information collection for Supplemental Nutrition Assistance Program (SNAP) Forms: Applications, Periodic Reporting, Notices, OMB Control Number #0584-0064, expiration date 4/30/2016, which is currently under revision. New provisions and burden requirements in this rule associated with the Program Activity Statement (FNS-366B) will be merged into the existing information collection for the Food and Nutrition Service Food Programs Reporting System (FPRS), OMB Control Number #0584-0594, expiration date 6/30/2017, which is currently under revision. Comments on this interim final rule must be received by March 28, 2016. Send comments to Office of Information and Regulatory Affairs, OMB, Attention: Desk Officer for FNS, Washington, DC 20403. Please also send a copy of your comments to Jane Duffield, Food and Nutrition Service, U.S. Department of Agriculture, 3101 Park Center Drive, Alexandria, VA 22302. For further information, or for copies of the information collection, please contact Jane Duffield at the above address. Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on those who are to respond, including use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology. All responses to this notice will be summarized and included in the request for OMB approval. All comments will also become a matter of public record. Title: Supplemental Nutrition Assistance Program: Requirement for National Directory of New Hires Employment Verification and Annual Program Activity Reporting. OMB Number: 0584--NEW. Expiration Date: N/A. Type of Request: New Collection. Abstract: This rule codifies section 4013 of the Agricultural Act of 2014, requiring State agencies to access employment data through the National Directory of New Hires (NDNH) at the time of certification, including recertification, to determine eligibility status and correct benefit amount for SNAP applicants. This rule also amends regulations at 7 CFR 272.2 to increase the frequency of the requirement for State agency submission of the Program Activity Statement from an annual requirement based on the State fiscal year to a quarterly requirement, unless otherwise directed by FNS, based on the Federal fiscal year. 272.2--Program Activity Statement (FNS-366B) State agencies are required to submit (quarterly) to FNS a Program Activity Statement (FNS-366B) providing a summary of Program activity for the State agency's operations during the previous reporting period. The activity report provides data on the number of applications processed, number of fair hearings and fraud control activity. FNS uses the data to monitor State agency activity levels and performance. 272.16--National Directory of New Hires Applicant and Recipient Screening: The State agency must compare identifiable information about each adult household member against information from the NDNH. States must make the comparison of matched data at the time of application and recertification and must independently verify any positive match results. Verification of Match: The State agency must independently verify the information prior to taking any adverse action against an individual. Should the State agency receive employment information via the NDNH that was previously unreported by the household, the State agency may issue a Request for Contact to the household to verify the information or contact the employer directly, depending upon applicable reporting requirements as defined at 7 CFR 273.12. Notice: The Notice of Adverse Action or Notice of Denial is issued by State agencies to participating households whose benefits will be reduced or terminated as the result of a change in household circumstances. Should the State agency independently verify unreported or underreported income discovered through NDNH, and that income results in a reduction of benefits or change in eligibility, the State agency must take action by issuing the household a Notice of Adverse Action or Notice of Denial and adjusting benefits accordingly. Burden Estimates: Out of the 251,482.35 hours requested for this new information collection request and after OMB's approval, FNS will merge the total reporting burden estimates into 0584-0064 are 249,252.64 burden hours & 12,276,992 total annual responses; and, the total reporting burden into 0584-0594 is 2,229.71 burden hours and 159 total annual responses. After approval into these existing collection packages and there are no recordkeeping requirements with these new or changing provisions. See the burden breakdown by affected public below. After OMB approval of this information collection request, the program plans to publish another notice in the Federal Register announcing OMB's approval. Respondents: State and local agencies, households. Estimated Number of Respondents: 891,125. [[Page 4163]] Estimated Number of Responses per Respondent: 13.78. Estimated Total Annual Burden on Respondents: 252,432.64 hours. See the table below for estimated total annual burden for each type of respondent. State Agencies -------------------------------------------------------------------------------------------------------------------------------------------------------- Difference Number of Frequency Total Burden hours Total Previous due to Difference CFR Action respondents per annual per response burden submission program due to respondent responses hours total hours changes adjustments -------------------------------------------------------------------------------------------------------------------------------------------------------- 272.2............... Program Activity 53 4 212 15 3,180 950.29 2,229.71 0.00 Statement (FNS 366B). 272.16.............. NDNH--Applicant/ 53 1 9,158,240 0.017 155,690.08 0.00 155,690.08 0.00 Recipient Screening. 272.16.............. NDNH--Verification of 53 1 1,237,600 0.03 37,128 0.00 37,128.00 0.00 Match. 272.16.............. NDNH--Notice of 53 1 495,040 0.03 14,851.20 0.00 14,851.20 0.00 Adverse Action or Notice of Denial. ----------------------------------------------------------------------------------------------------------- Total........... ...................... 53 ........... 10,891,092 0.019359792 210,849.28 950.29 209,898.99 0.00 -------------------------------------------------------------------------------------------------------------------------------------------------------- Households -------------------------------------------------------------------------------------------------------------------------------------------------------- Difference Number of Frequency Total annual Burden Total Previous due to Difference CFR Action respondents per responses hours per burden submission program due to respondent response hours total hours changes adjustments -------------------------------------------------------------------------------------------------------------------------------------------------------- 272.16.............. NDNH--Request for 891,072 1 891,072 0.03 26,732.16 0.00 26,732.16 0.00 Contact. 272.16.............. NDNH--Notice of 495,040 1 495,040 0.03 14,851.20 0.00 14,851.20 0.00 Adverse Action or Notice of Denial. ----------------------------------------------------------------------------------------------------------- Total........... ...................... 891,072 ........... 1,386,112 0.03 41,583.36 0.00 41,583.36 0.00 -------------------------------------------------------------------------------------------------------------------------------------------------------- E-Government Act Compliance The Department is committed to complying with the E-Government Act of 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 272 Civil rights, Supplemental Nutrition Assistance Program, Grant programs--social programs, Reporting and recordkeeping requirements. Accordingly, 7 CFR part 272 is amended as follows: PART 272--REQUIREMENTS FOR PARTICIPATING STATE AGENCIES 0 1. The authority citation for part 272 continues to read as follows: Authority: 7 U.S.C. 2011-2036. 0 2. In Sec. 272.2, revise paragraphs (c)(1)(ii) and (e)(2)(ii) to read as follows: Sec. 272.2 Plan of operation. * * * * * (c) * * * (1) * * * (ii) The Program Activity Statement, to be submitted quarterly (unless otherwise directed by FNS), solicits a summary of Program activity for the State agency's operations during the preceding reporting period. * * * * * (e) * * * (2) * * * (ii) The Program Activity Statement shall be submitted quarterly (unless otherwise directed by FNS) based on the Federal fiscal year. * * * * * 0 3. Add Sec. 272.16 to read as follows: Sec. 272.16 National Directory of New Hires. (a) General. Each State agency shall establish a system to verify applicant employment data for the determination of SNAP eligibility and correct benefit amount. (b) Data source. States shall use the U.S. Department of Health and Human Service (HHS) National Directory of New Hires (NDNH) and enter into a computer matching agreement with HHS pursuant to the authority in 42 U.S.C. 653(j)(10). (c) Use of match data. In accordance with the procedural requirements and privacy protections required for computer data matching at 5 U.S.C. 552a(p), States shall provide a system for: (1) Comparing identifiable information about each adult household member against data from the NDNH. States must, at minimum, match household members against new hire data available in the database. States shall make the comparison of matched data at the time of application and recertification. (2) The reporting of instances where there is a match; (3) The independent verification of match hits to determine their accuracy; (4) Notice to the household of match results; (5) An opportunity for the household to respond to the match prior to an adverse action to deny, reduce, or terminate benefits; and (6) The establishment and collection of claims as appropriate. Dated: January 14, 2016. Audrey Rowe, Administrator, Food and Nutrition Service. [FR Doc. 2016-01402 Filed 1-25-16; 8:45 am] BILLING CODE 3410-30-P
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Rules and Regulations Federal Register
Vol. 81, No. 16
Tuesday, January 26, 2016
This section of the FEDERAL REGISTER provision as required by the #0584–0594, expiration date 6/30/2017)
contains regulatory documents having general Agricultural Act of 2014. from an annual submission based on the
applicability and legal effect, most of which ADDRESSES: Comments may be State fiscal year to a quarterly
are keyed to and codified in the Code of submission based on the Federal fiscal
submitted in writing by one of the
Federal Regulations, which is published under year.
50 titles pursuant to 44 U.S.C. 1510. following methods:
• Federal eRulemaking Portal: Go to Implement National Directory of New
The Code of Federal Regulations is sold by http://www.regulations.gov. Follow the Hires Employment Verification
the Superintendent of Documents. Prices of online instructions for submitting Requirement
new books are listed in the first FEDERAL comments.
REGISTER issue of each week. • Mail: Send written comments to Current regulations at § 273.2(f)(1)(i)
Jane Duffield, State Administration require State agencies to verify gross
Branch, Program Accountability and non-exempt income for all households
DEPARTMENT OF AGRICULTURE Administration Division, Supplemental prior to certification or, in instances
Nutrition Assistance Program, Food and where the State’s attempts to verify the
Food and Nutrition Service Nutrition Service, USDA, 3101 Park income with the employer have been
Center Drive, Room 818, Alexandria, VA unsuccessful, use the best available
7 CFR Part 272 22302. information to determine benefits.
[FNS–2015–0029] • All written comments submitted in Additionally, regulations at § 273.12(a)
response to this interim final rule will and § 273.21 establish the SNAP
RIN 0584–AE36
be included in the record and will be household’s responsibility to report
SNAP Requirement for National made available to the public. Please be applicable changes in income while
Directory of New Hires Employment advised that the substance of the participating in the Program. Thus, the
Verification and Annual Program comments and the identity of the accuracy of Program benefits issued to
Activity Reporting individuals or entities submitting the a household relies on the accuracy of
comments will be subject to public reported and verified information.
AGENCY: Food and Nutrition Service disclosure. FNS will make the written The NDNH is a repository of
(FNS), USDA. comments publicly available on the employment, unemployment insurance,
ACTION: Interim final rule. Internet via http://www.regulations.gov. and quarterly wage data maintained by
FOR FURTHER INFORMATION CONTACT: Jane the U.S. Department of Health and
SUMMARY: The Food and Nutrition Duffield, Food and Nutrition Service, Human Services (HHS) Office of Child
Service is codifying the requirement for U.S. Department of Agriculture, 3101 Support Enforcement (OCSE). The data
State agencies to verify applicant Park Center Drive, Room 818, residing in the NDNH includes W–4
employment data through the National Alexandria, VA 22302, by phone at (new hire) records from the State
Directory of New Hires (NDNH) for the (703) 305–2425 or via email at Directory of New Hires, quarterly wage
determination of Supplemental Jane.Duffield@fns.usda.gov. and unemployment insurance data from
Nutrition Assistance Program (SNAP) SUPPLEMENTARY INFORMATION: the State workforce agencies, and new
eligibility and correct amount of hire and quarterly wage data from
benefits, pursuant to section 4013 of the I. Background Federal agencies. The Personal
Agricultural Act of 2014. This interim With this interim final rule, the Food Responsibility and Work Opportunity
final rule requires that State agencies and Nutrition Service (FNS) amends the Reconciliation Act (PRWORA)
access employment data through the SNAP regulations at 7 CFR part 272 to mandated the establishment of the
NDNH at the time of SNAP certification, require State agencies to access NDNH in 1996. A major component of
including recertification, and aims to employment data through the National the Federal Parent Locator Service
improve Program integrity by reducing Directory of New Hires (NDNH) at the (FPLS), the NDNH was originally
the risk of improper payments due to time of certification, including established for State Child Support
unreported or misreported income. This recertification, to determine the Enforcement (CSE) Agencies to locate
rule further amends regulations to eligibility status and correct benefit non-custodial parents in order to
change the reporting frequency amount for SNAP applicants and establish and enforce child support
requirement for the ‘‘Program and participants. This requirement codifies orders. As of February 2015, there were
Budget Summary Statement Part B— section 4013 of the Agricultural Act of 64,571 employers and 33,610
Program Activity Statement’’ from an 2014 (Pub. L. 113–79). The legislation subsidiaries listed in the NDNH. The
annual submission based on the State was effective on February 7, 2014, and number of employers and their
fiscal year to a quarterly submission FNS implemented the mandated subsidiaries listed in the NDNH
based on the Federal fiscal year. requirements, including that associated generally increase each year. In 2014,
DATES: To be considered, written with the NDNH requirement, by over 4,320 new employers were added
mstockstill on DSK4VPTVN1PROD with RULES
comments on this interim final rule directive to all SNAP State agencies on to the database.
must be received on or before March 28, March 21, 2014. This interim rule also The NDNH may only be accessed by
2016. This rule will become effective amends regulations at 7 CFR 272.2 to authorized agencies with legislative
March 28, 2016. change the requirement for State agency authority. On July 27, 2006, Public Law
Implementation Date: State agencies submission of the ‘‘Program and Budget 109–250 amended section 453(j) of
have already been instructed through Summary Statement Part B—Program Social Security Act (42 U.S.C. 653(j)) by
FNS directive to implement this Activity Statement’’ (FNS–366B, OMB the adding a new paragraph (10), which
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![4160 Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Rules and Regulations
authorized State agencies administering discretion. Because the timeliness of Change the Reporting Frequency of
SNAP under the Food and Nutrition Act quarterly wage and quarterly Program Activity Statement (FNS–366B)
of 2008 [7 U.S.C. 2011 et seq.] to access unemployment insurance data may not With this rule, FNS is also modifying
NDNH data for carrying out Program provide a true benefit to the State a reporting requirement of Stte agencies
responsibilities. Prior to the agency in determining eligibility and by increasing the frequency of
amendment, State SNAP agencies could benefit levels, this rule only requires submitting a Program Activity
only access employment data made that States match against NDNH new Statement from an annual submission
available through their own State hire data at minimum. based on the State fiscal year to a
Directory of New Hires for the quarterly submission based on the
determination of SNAP eligibility. Data matching has provided many
positive results for the efficient and Federal fiscal year. Section 16(a) of the
Public Law 109–250 gave State SNAP Food and Nutrition Act of 2008
agencies the option to access NDNH, effective administration of the program.
However, it has come to the attention of authorizes 50 percent Federal
thus providing an opportunity to receive reimbursement for State agency costs to
employment data from other States, FNS that there has been some confusion
regarding reporting systems and administer SNAP. SNAP regulations at
multi-State employers, and Federal 7 CFR 272.2(a) require that State
agencies. Despite this change in integrity provisions for SNAP,
agencies plan and budget Program
legislation, few State agencies exercised specifically with regard to simplified
operations and establish objectives for
the option to use it. Most State agencies reporting. Therefore, FNS wishes to
the next year. The basic components of
instead opted to access employment clarify that in addition to the
the State Plan of Operation are the
data via their respective State Directory requirements of these integrity Federal/State Agreement, the Budget
of New Hires, State Workforce Agency, provisions, State agencies are also Projection Statement and the Program
and other data sources. By now expected to comply with the Activity Statement (7 CFR 272.2(a)(2)).
requiring State agencies to access NDNH requirements of the reporting system Under current regulations at 7 CFR
data for SNAP, FNS believes States will applicable to SNAP households 272.2(c), the State agency is required to
benefit from a reduction in improper provided at 7 CFR 273.12. State options submit to FNS for approval a Budget
payments due to unreported income. for action on reported changes during
This rule codifies in § 272.16 the Projection Statement (FNS–366A) which
the certification period must be projects total Federal administrative
requirement that each State agency must followed, even for required data
establish a system to compare costs for the upcoming fiscal year and
matches. a Program Activity Statement (FNS–
identifiable information about each
adult household member against data Data received through NDNH is not 366B) which provides Program activity
from the NDNH. Section 4013 of the considered verified upon receipt. data for the preceding fiscal year.
Agricultural Act of 2014 mandates that Consistent with requirements set forth Current regulations at 7 CFR
States use NDNH to verify applicant and in the Privacy Act (5 U.S.C. 552a(p)) and 272.2(e)(2)(ii) require State agencies to
participant employment data and enter in SNAP regulation at 7 CFR 272.12(c), submit the Program Activity Statement
into a computer matching agreement the State agency may not take any to FNS no later than 45 days after the
with HHS pursuant to the authority in adverse action to terminate, deny, end of the State agency’s fiscal year,
42 U.S.C. 653(j)(10). State agencies must suspend, or reduce benefits to an which is typically August 15 for most
enter into a computer matching applicant or SNAP recipient based on States. The Program Activity Statement
agreement with HHS in order to access information provided by the NDNH was created to substantiate the costs the
the NDNH. States must continue to unless the match information has been State agency expects to incur during the
adhere to requirements § 272.12 independently verified and a Notice of next fiscal year. It currently provides
addressing the use of information Adverse Action or Notice of Denial has data on the number of SNAP
obtained from computer matching applications the State agency processed,
been sent to the household. The Privacy
programs. The State agency may only the number of fair hearings the State
Act defines independent verification as
use the required data matching to verify agency conducted, and the fraud control
the investigation and confirmation of
that the employment status of adult activities in which the State agency was
specific information relating to an
household members is accurately engaged in the preceding year. FNS uses
individual used as a basis for an adverse
reported on the SNAP application. the data to monitor State agency activity
action against the individual. Should levels and performance.
Because the NDNH does not include there be a delay in the State agency’s
employment data on individuals under While originally intended only to
ability to verify the NDNH new hire support the States’ annual SNAP budget
the age of 18, this verification match results within the required
requirement is limited to adult request by providing a summary of State
application processing timeline, the SNAP activities in the previous State
household members. The law further
State agency is expected to continue fiscal year, the data reported on the
mandates the State agency to conduct
processing the application without the Program Activity Statement has also
matches against NDNH new hire data at
the time of certification. FNS believes requested documentation verifying the become a vital tool for monitoring State
that conducting the match at both initial information. If, after either certification operations related to application
application and recertification will meet or recertification is completed, the State processing, fair hearings, and fraud
the intent of section 4013, and is agency receives verification of prevention activities. The data reported
therefore codifying the requirement for information obtained through the NDNH on the Program Activity Statement
both certification and recertification. match indicating that the household is enables FNS to identify areas that may
mstockstill on DSK4VPTVN1PROD with RULES
The NDNH maintains three data sets. ineligible or was approved for the need improvement and to provide more
While this rule addresses the incorrect benefit amount, the State effective technical assistance to State
requirement for State agency matching should deny, reduce or terminate agencies. The Agency believes an
against the NDNH new hire data set, benefits, as applicable, and establish a increase in reporting frequency will
States have the option to match against claim to collect any benefits that were allow for greater and more timely access
the quarterly wage and unemployment overpaid, in accordance with to Program data. It will help States,
insurance data sets at their own regulations at § 273.18. FNS, and other stakeholders identify
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![Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Rules and Regulations 4163
Estimated Number of Responses per Estimated Total Annual Burden on table below for estimated total annual
Respondent: 13.78. Respondents: 252,432.64 hours. See the burden for each type of respondent.
STATE AGENCIES
Difference
Frequency Total Previous Difference
Number of Total annual Burden hours due to
CFR Action per burden submission due to
respondents responses per response program
respondent hours total hours adjustments
changes
272.2 ......... Program Activity Statement 53 4 212 15 3,180 950.29 2,229.71 0.00
(FNS 366B).
272.16 ....... NDNH—Applicant/Recipient 53 1 9,158,240 0.017 155,690.08 0.00 155,690.08 0.00
Screening.
272.16 ....... NDNH—Verification of Match 53 1 1,237,600 0.03 37,128 0.00 37,128.00 0.00
272.16 ....... NDNH—Notice of Adverse 53 1 495,040 0.03 14,851.20 0.00 14,851.20 0.00
Action or Notice of Denial.
Total .. ............................................... 53 .................... 10,891,092 0.019359792 210,849.28 950.29 209,898.99 0.00
HOUSEHOLDS
Difference
Frequency Burden Total Previous Difference
Number of Total annual due to
CFR Action per hours per burden submission due to
respondents responses program
respondent response hours total hours adjustments
changes
272.16 ....... NDNH—Request for Contact 891,072 1 891,072 0.03 26,732.16 0.00 26,732.16 0.00
272.16 ....... NDNH—Notice of Adverse 495,040 1 495,040 0.03 14,851.20 0.00 14,851.20 0.00
Action or Notice of Denial.
Total .. ............................................... 891,072 .................... 1,386,112 0.03 41,583.36 0.00 41,583.36 0.00
E-Government Act Compliance (2) * * * (4) Notice to the household of match
(ii) The Program Activity Statement results;
The Department is committed to
shall be submitted quarterly (unless (5) An opportunity for the household
complying with the E-Government Act
otherwise directed by FNS) based on the to respond to the match prior to an
of 2002 to promote the use of the
Federal fiscal year. adverse action to deny, reduce, or
Internet and other information
technologies to provide increased * * * * * terminate benefits; and
opportunities for citizen access to ■ 3. Add § 272.16 to read as follows: (6) The establishment and collection
Government information and services, of claims as appropriate.
§ 272.16 National Directory of New Hires.
and for other purposes. Dated: January 14, 2016.
(a) General. Each State agency shall Audrey Rowe,
List of Subjects in 7 CFR Part 272 establish a system to verify applicant
Administrator, Food and Nutrition Service.
Civil rights, Supplemental Nutrition employment data for the determination
[FR Doc. 2016–01402 Filed 1–25–16; 8:45 am]
Assistance Program, Grant programs— of SNAP eligibility and correct benefit
amount. BILLING CODE 3410–30–P
social programs, Reporting and
recordkeeping requirements. (b) Data source. States shall use the
U.S. Department of Health and Human
Accordingly, 7 CFR part 272 is DEPARTMENT OF TRANSPORTATION
Service (HHS) National Directory of
amended as follows:
New Hires (NDNH) and enter into a
computer matching agreement with Federal Aviation Administration
PART 272—REQUIREMENTS FOR
PARTICIPATING STATE AGENCIES HHS pursuant to the authority in 42
U.S.C. 653(j)(10). 14 CFR Part 39
■ 1. The authority citation for part 272 (c) Use of match data. In accordance [Docket No. FAA–2015–1281; Directorate
continues to read as follows: with the procedural requirements and Identifier 2014–NM–241–AD; Amendment
privacy protections required for 39–18346; AD 2015–25–08]
Authority: 7 U.S.C. 2011–2036.
computer data matching at 5 U.S.C.
■ 2. In § 272.2, revise paragraphs RIN 2120–AA64
552a(p), States shall provide a system
(c)(1)(ii) and (e)(2)(ii) to read as follows: for: Airworthiness Directives; The Boeing
(1) Comparing identifiable Company Airplanes
§ 272.2 Plan of operation.
information about each adult household
* * * * * member against data from the NDNH. AGENCY: Federal Aviation
(c) * * * States must, at minimum, match Administration (FAA), DOT.
(1) * * * household members against new hire ACTION: Final rule; correction.
(ii) The Program Activity Statement, data available in the database. States
mstockstill on DSK4VPTVN1PROD with RULES
to be submitted quarterly (unless shall make the comparison of matched SUMMARY: The FAA is correcting an
otherwise directed by FNS), solicits a data at the time of application and airworthiness directive (AD) that
summary of Program activity for the recertification. published in the Federal Register. That
State agency’s operations during the (2) The reporting of instances where AD applies to all The Boeing Company
preceding reporting period. there is a match; Model 777 airplanes. Paragraph (i)(4) of
* * * * * (3) The independent verification of the regulatory text contains a reference
(e) * * * match hits to determine their accuracy; to a nonexistent paragraph. This
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Document Created: 2018-02-02 12:38:27
Document Modified: 2018-02-02 12:38:27
| 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 | Interim final rule. | |
| Dates | To be considered, written comments on this interim final rule must be received on or before March 28, 2016. This rule will become effective March 28, 2016. | |
| Contact | Jane Duffield, Food and Nutrition Service, U.S. Department of Agriculture, 3101 Park Center Drive, Room 818, Alexandria, VA 22302, by phone at (703) 305-2425 or via email at [email protected] | |
| FR Citation | 81 FR 4159 | |
| RIN Number | 0584-AE36 | |
| CFR Associated | Civil Rights; Supplemental Nutrition Assistance Program; Grant Programs-Social Programs and Reporting and Recordkeeping Requirements |
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