Appendix A Published Final Rule

15083

Rules and Regulations

Federal Register
Vol. 84, No. 72
Monday, April 15, 2019

DEPARTMENT OF AGRICULTURE

Center Drive, Room 812, Alexandria,
Virginia 22302.
FOR FURTHER INFORMATION CONTACT:
Sasha Gersten-Paal, Branch Chief,
Certification Policy Branch, Program
Development Division, Food and
Nutrition Service (FNS), 3101 Park
Center Drive, Room 810, Alexandria,
Virginia 22302, (703) 305–2507,
[email protected].
SUPPLEMENTARY INFORMATION:

Food and Nutrition Service

Background

7 CFR Parts 271, 272 and 273

Section 4007: Student Eligibility
Disqualifications

[FNS 2015–0038]

Background
Section 6(e) of the Food and Nutrition
Act of 2008 (the Act) (7 U.S.C. 2015(e))
generally prohibits students enrolled at
least half-time in an institute of higher
education from receiving SNAP. There
are several exceptions to the general
prohibition, and section 4007 of the
2014 Farm Bill amended the exception
at section 6(e)(3)(B) of the Act (7 U.S.C.
2015(e)(3)(B)) for students who are
enrolled at least half-time at an
institution of higher education through
a SNAP Employment and Training
(E&T) program. Under the new
requirements, these students can be
eligible to participate in SNAP only if
the E&T program is part of a program of
career and technical education (as
defined by the Carl D. Perkins Career
and Technical Education Act of 2006
(Perkins Act)) that may not be
completed in more than 4 years at an
institute of higher education (as defined
in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002)); or is
limited to courses for remedial
education, basic adult education,
literacy, or English as a second
language. This amendment does not
affect the other exceptions in section
6(e) of the Act. The U.S. Department of
Agriculture (the Department) proposed
modifications in 7 CFR 273.5(b)(11)(ii)
to incorporate these changes in section
4007.
The proposed rule also revised the
description of acceptable E&T education
components at 7 CFR 273.7(e)(1)(vi) to
include courses or programs of study
that are part of a program of career and
technical education as defined in
section 3 of the Perkins Act. The
substance of the other criteria at section
273.7(e)(1)(vi) remain unchanged, with
the exception of a technical correction.

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.

RIN 0584–AE41

Supplemental Nutrition Assistance
Program: Student Eligibility, Convicted
Felons, Lottery and Gambling, and
State Verification Provisions of the
Agricultural Act of 2014
Food and Nutrition Service
(FNS), USDA.
ACTION: Final rule.
AGENCY:

This final rule implements
four sections of the Agricultural Act of
2014 (2014 Farm Bill), affecting
eligibility, benefits, and program
administration requirements for the
Supplemental Nutrition Assistance
Program (SNAP). Section 4007 clarifies
that participants in a SNAP
Employment & Training (E&T) program
are eligible for benefits if they enroll or
participate in specific programs that
will assist SNAP recipients in obtaining
the skills needed for the current job
market. Section 4008 prohibits anyone
convicted of Federal aggravated sexual
abuse, murder, sexual exploitation and
abuse of children, sexual assault, or
similar State laws, and who are also not
in compliance with the terms of their
sentence or parole, or are a fleeing felon,
from receiving SNAP benefits. Section
4009 prohibits individuals with
substantial lottery and gambling
winnings from receiving SNAP benefits.
Section 4015 requires all State agencies
to have a system in place to verify
income, eligibility, and immigration
status.

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SUMMARY:

Effective dates: This final rule is
effective June 14, 2019.
ADDRESSES: SNAP Program
Development Division, Food and
Nutrition Service, USDA, 3101 Park
DATES:

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The proposed rule inadvertently
removed language clarifying that
educational components must directly
enhance the employability of the
participants and a direct link between
education and job-readiness must be
established for a component to be
approved. The final rule restores this
language. Individuals participating in
remedial courses, basic adult education,
or English as a second language
continue to qualify for the student
exemption. These courses may be
offered concurrently or contextually
with courses or programs of study that
are part of a program of career and
technical education.
Defining Career and Technical
Education Programs
Section 3 of the Perkins Act (20 U.S.C.
2302) offers a general definition of the
term ‘‘career and technical education’’
and the proposed rule noted that the
Department believes State agencies are
in the best position to determine what
courses or programs of study meet the
definition. A program does not have to
be receiving Perkins funding for a State
agency to consider it eligible; it would
just need to meet the general definition,
as determined by the State agency.
Commenters were generally supportive
of granting States this discretion in
identifying which programs meet the
general definition.
Some commenters asked that the final
rule be clear that all State agencies must
at least adopt the basic definition of
career and technical education, and
then have State-specific criteria. The
Department believes the proposed
language at section 273.5(b)(11)(ii) is
sufficient to ensure that States use
Perkins Act criteria to identify which
programs meet the general definition
and is adopting the provisions as
proposed.
Four-Year Programs
Section 4007 provides that eligible
courses or programs of study may be
completed in not more than four years.
The proposed rule explained that
students participating in qualifying
courses or programs of study that are
designed to be completed in up to four
years, but may actually take longer than
four years to complete, satisfy this
requirement. Commenters were
unanimously supportive of this
explanation and the Department is
adopting the provision as proposed.

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Section 4008: Eligibility
Disqualifications for Certain Convicted
Felons

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Background
Section 4008 of the 2014 Farm Bill
added a new section 6(r) to the Act (7
U.S.C. 2015(r)) prohibiting any
individual from receiving SNAP
benefits if the individual is convicted of
certain crimes and not in compliance
with the terms of the sentence, is a
fleeing felon, or is a parole or probation
violator (as described in section 6(k) of
the Act) from receiving SNAP benefits.
The certain crimes in section 4008 are:
(i) Aggravated sexual abuse under
section 2241 of title 18, United States
Code; (ii) murder under section 1111 of
title 18, United States Code; (iii) sexual
exploitation and other abuse of children
under chapter 110 of title 18, United
States Code; (iv) a Federal or State
offense involving sexual assault, as
defined in section 40002(a) of the
Violence Against Women Act of 1994
(42 U.S.C. 13925(a)); and (v) an offense
under State law determined by the
Attorney General to be substantially
similar to an offense in (i) through (iii)
above. The Department proposed to
codify this change in a new section at
7 CFR 273.11(s).
Section 4008 requires an individual
applying for SNAP benefits to attest to
whether the applicant or any other
member of the household was convicted
of any of the enumerated offenses. In
addition, although those disqualified
from receiving SNAP benefits under this
provision are not eligible members of a
SNAP household, the statute requires
that their income and resources be
included in the eligibility
determinations for the other eligible
household members.
As provided for in section 4008(c), the
amendments do not apply to
convictions for conduct occurring on or
before February 7, 2014, the date of
enactment of the 2014 Farm Bill.
Disqualification
The proposed rule added a new
section at 7 CFR 273.11(s) to include the
section 4008 provisions. Before passage
of the 2014 Farm Bill, section 6(k) of the
Act and section 273.11(n) already
prohibited certain fleeing felons and
probation and parole violators from
receiving SNAP benefits. Standards for
determining whether someone is a
fleeing felon or probation or parole
violator are addressed in section
273.11(n), finalized in the ‘‘Clarification
of Eligibility of Fleeing Felons Final
Rule,’’ published on September 10, 2015
(80 FR 54410). Standards for fleeing
felons under section 273.11(n) should

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apply to the new eligibility
disqualifications for certain convicted
felons.
Commenters were supportive of the
Department’s interpretation of section
4008 in section 273.11(s). Some
commenters, including State agencies,
requested that the Department provide
additional information—through either
regulations or guidance—on what
crimes under State law may be
determined by the Attorney General to
be substantially similar offenses. The
Department agrees that additional
guidance from the Department of Justice
will be needed for State agencies to
successfully implement section
273.11(s)(1)(v) of the final rule and has
requested assistance on this matter from
the Department of Justice. Information
from the Department of Justice is still
forthcoming; therefore, the Department
is adopting this provision as proposed
and will provide further guidance when
available.
This final rule also makes a
conforming change to include
individuals convicted of certain felonies
not compliant with the terms of their
sentence as ineligible household
members listed at 7 CFR 273.1. A
reference to the newly recreated 7 CFR
273.11(s) has been added to 273.1(b)(7).
Attestation
The proposed rule added section
273.2(o), which would require every
individual applying for SNAP benefits
to attest to whether the individual, or
any member of the individual’s
household, has been convicted of a
crime covered by this section and
whether the household member is in
compliance with the terms of their
sentence. Section 4008 requires an
attestation as to whether an individual
has been convicted of one of the
enumerated offenses. The Department
has made the decision to also require an
attestation as to whether the individual
is in compliance with the sentence. This
section provided basic standards to
meet the attestation requirement to help
ensure consistency across State
agencies, while allowing some State
discretion.
Proposed language at section 273.2(o)
directed State agencies to update their
application processes to include the
attestation requirement. It allowed for
this to be done in writing, verbally, or
both, provided that the attestation is
legally binding in the law of the State,
and the method chosen is reasonable
and consistently applied. The proposed
rule also required State agencies to
verify the felon status when an
applicant affirmatively attested that the
applicant or a member of the household

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had been convicted of a felony
identified in section 4008 and was not
in compliance with the sentence, or
when attestations were questionable. In
conducting verifications, the rule
proposed that State agencies were also
responsible for establishing reasonable,
consistent standards, evaluating each
case separately, and documenting the
case file accordingly.
The Department received nine
comments on the proposed
implementation of section 4008. Though
commenters were largely supportive or
silent on how the disqualifications
under this section were to be codified
under 7 CFR 273.11(s), they shared
some concerns for how the proposed
language at section 273.2(o) addressed
the application process and verifying
attestations.
In updating the application process,
commenters urged the Department to
prohibit States from requiring
individuals and/or household members
to come into the office solely to
complete an attestation. Commenters
also recommended that State agencies
be required to explain the attestation to
clients to ensure the disqualification is
understood prior to attestation—
particularly that this disqualification
only applies to those who are out of
compliance with the terms of their
sentence. The Department agrees that
clear communication with households
is vital to the application process.
Similarly, completing the attestation
requirement alone should not create a
need for a household to visit their local
office as this is not a prudent use of
administrative resources. Therefore, the
final rule is adopting additional
language at section 273.2(o)(1) to ensure
State agencies explain the attestation
requirement to applicant households
during the application process and to
prevent State agencies from compelling
applicants to come to the office solely
to complete or discuss an attestation. As
with all other program materials, this
explanation must meet bilingual
requirements at 272.4(b).
Comments received from State
agencies as well as advocacy groups
raised concerns with how to verify
attestations. State agencies shared that
verifying this new component of the
application process may be challenging
as there is no national database
available that would allow States to
conduct the verification. They also cited
the associated staff resources needed to
complete this requirement as evidence
that meeting the requirement as
proposed would be burdensome and
overly difficult. Advocates agreed with
the Department that the State agency,
not the individual, is best suited to

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verify a household member attestation
that there is a convicted felon in the
household who is complying with the
terms of their sentence. They also
agreed that verifying this information
should not delay application processing
beyond the required processing
timeframes. The Department maintains
this is a responsibility of the State
agency but recognizes the concerns that
the proposed requirements for verifying
attestations would be onerous.
Therefore, in response to these
comments, the Department is revising
the proposed language at section
273.2(o)(3) and adding new paragraph
273.2(o)(4). Under the revised section
273.2(o)(3), State agency verification of
attestations shall be limited to
attestations that are considered
questionable. The State agency shall
follow the standards established under
section 273.2(f)(2) to determine whether
an attestation is questionable. This
language is also incorporated into
section 273.2(b)(5)(i). The revised
section 273.2(o)(3) also explains that,
when verifying an attestation, the State
agency must verify both that the
individual has been convicted of one of
these crimes and that the individual is
out of compliance with the terms of the
sentence. Section 273.2(o)(4) maintains
that application processing shall not be
delayed beyond required processing
timeframes solely because the State
agency has not obtained verification of
an attestation. The State agency shall
continue to process the application
while awaiting verification. If the State
agency is required to act on the case
without being able to verify an
attestation in order to meet the time
standards in sections 273.2(g) or
273.2(i)(3), the State agency shall
process the application without
consideration of the individual’s felony
and compliance status.

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Section 4009: Lottery and Gambling
Winners
Background
Section 4009 of the 2014 Farm Bill
provides that any household that
receives substantial lottery or gambling
winnings, as determined by the
Secretary, must lose eligibility for
benefits immediately upon receipt of
winnings. It also requires that those
households remain ineligible until they
meet the allowable financial resources
and income eligibility requirements of
the Act. Section 4009 also requires the
Secretary to set standards for each State
agency to establish agreements, to the
maximum extent practicable, with
entities responsible for the regulation or
sponsorship of gaming in the State

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(gaming entities) to identify SNAP
individuals with substantial winnings.
The proposed rule added provisions
regarding the disqualification based on
receipt of substantial winnings in
section 273.11(r), agreements between
State agencies and gaming entities in
section 272.17, and requirements for
households to report substantial
winnings in section 273.12. The final
rule adopts the proposed provisions
with changes discussed below.
Disqualification for Substantial Lottery
or Gambling Winnings
Section 4009 gives the Secretary
authority to define what amount
constitutes substantial lottery and
gambling winnings, that when received
by a household, results in an immediate
disqualification for SNAP benefits. The
proposed rule defined substantial
winnings as $25,000 or more, before
taxes or other amounts are withheld,
won in a single game.
Of the 19 comments received
regarding the lottery provision, only 10
commenters discussed the $25,000
proposed threshold, the definition of
substantial based on gross versus net
winnings, and the disqualification to the
entire household. Three of the 10
commenters agreed with the definition
of substantial winnings as defined in the
proposed rule. Five commenters
expressed concern about the definition
of substantial winnings being based on
gross, not net, winnings. These five
commenters noted that if substantial
taxes are withheld or intercepted for
debt collection, this would result in the
household receiving less than $25,000.
One of the five comments addressing
net winnings suggested that the
Department change the threshold to
$50,000 after taxes and other amounts
withheld and requested that the
Department distinguish between the
definitions of lottery and gambling
winnings. While the Department
appreciates the comments on
considering net versus gross winnings,
it is impractical for a State agency to
collect information on net winnings and
would result in undue State burden. In
addition, if an individual’s net winnings
cause the household to fall below the
allowable SNAP income and resource
requirements, the household may
reapply for SNAP benefits.
One commenter questioned why the
entire household must be disqualified
for substantial winnings. The
Department does not have discretion to
limit the disqualification for substantial
lottery and gambling winnings to only
the individual that receives the
winnings, and not the entire household.
Section 4009 specifically imposes

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ineligibility for the household in which
a member receives substantial lottery or
gambling winnings, not just the
individual.
As to the comment suggesting that
disqualification be based on either
lottery or gambling winnings, but not
both, the statute also bases the
disqualification on ‘‘lottery or gambling
winnings.’’ Therefore, either substantial
lottery or gambling winnings result in
disqualification. The Department does
not see a rationale for differentiating
between lottery and gambling winnings.
Three comments suggested that the
$25,000 threshold for substantial
winnings in the proposed rule was too
high. One of these comments suggested
that the Department change the
threshold to $2,250 because it aligns
with the non-elderly/disabled resource
limit in section 5(g) of the Act, and is
already programmed in State eligibility
systems, thereby easing State
administrative application of this
provision. Another commenter
suggested lowering the threshold to
$5,000. The last of the three comments
requested that the threshold be optional
to account for States with lower, more
restrictive resource limits. Taking into
consideration the varied comments, the
Department has decided to align the
definition of substantial lottery and
gambling winnings with the statutory
resource limit for elderly or disabled
households in the final rule. The
Department believes this change will
simplify administration of the provision
and enhance program integrity. Aligning
the threshold with the non-elderly/
disabled resource limit would restrict
eligibility for elderly or disabled
households whose winnings exceed the
lower resource limit but may not meet
or exceed the higher, elderly or disabled
resource limit. Imposing a limit for all
households linked to the resource limit
for elderly or disabled households
balances the intent to enhance program
integrity with ensuring that households
with small winnings can continue to
participate in the program up to the
statutory resource limit.
Consequently, the Department is
modifying the final rule regulatory text
regarding the threshold for substantial
winnings. In the final rule, substantial
lottery or gambling winnings are
defined as a cash prize won in a single
game, before taxes or other amounts are
withheld, which is equal to or greater
than the resource limit for elderly or
disabled households as defined in 7
CFR 273.8(b). For administrative
simplicity, all households certified to
receive SNAP benefits will be subject to
this definition of substantial winnings,
regardless of whether they contain an

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elderly or disabled member. This rule
creates a new section 273.11(r) to codify
the disqualification and definition.

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Adjustment for Inflation
In the proposed rule, the Department
intended to adjust the $25,000 lottery
and gambling threshold for inflation by
recalculating the threshold each fiscal
year and rounding the amount to the
nearest $5,000. The Department
received four comments regarding
annually adjusting the lottery and
gambling threshold for inflation. One
commenter supported adjusting the
threshold for inflation, while three
commenters disagreed with adjusting
for inflation annually. These three
commenters noted that adjusting the
threshold annually would increase State
administrative burden.
Since the lottery and gambling
threshold for this provision now aligns
with the resource limit for elderly or
disabled households, the threshold shall
be adjusted for inflation in accordance
with 7 CFR 273.8(b)(1) and (2). The
threshold shall be rounded down to the
nearest $250 increment to reflect the
changes for the 12-month period ending
the preceding June in the Consumer
Price Index for All Urban Consumers
published by the Bureau of Labor
Statistics of the Department of Labor.
State agencies will continue to receive
an updated resource limit annually in
the Cost of Living Adjustment
Memorandum, which will indicate the
lottery and gambling substantial
winnings threshold amount. In Fiscal
Year 2019, the Federal resource limit for
elderly or disabled households is
$3,500. The Department believes that
aligning the threshold with the statutory
resource limit and the current procedure
for adjustment for inflation, will
minimize State administrative burden.
This change is codified in the final rule
regulatory text at 273.11(r)(2)(ii).
Cooperative Agreements
The Department proposed to add new
section 272.17 to codify the section
4009 requirement that State agencies, to
the maximum extent practicable,
establish agreements with gaming
entities in order to identify individuals
within the state with substantial
winnings who are members of a SNAP
household. The Department received
five comments addressing this
requirement. One comment noted that
the match is critical, effective, and
reduces burden on SNAP households.
Four comments expressed concern
regarding State agencies establishing
cooperative agreements with gambling
and lottery entities, noting that
establishing the agreements will be

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problematic, burdensome, and increase
costs to the State. Of these four
comments, one comment asked for
clarity on what would be considered a
good faith effort and a practical number
of gaming entities with which to
establish agreements.
The Department appreciates the
concerns expressed about establishing
agreements with gaming entities;
however, section 4009 requires the
establishment of these agreements to the
maximum extent practicable. In
implementing this requirement, the
Department understands that the types
of lottery and gambling activities
allowed within a State, and the
administration and oversight of these
games, vary from State to State. For
example, some States may have a large
number of small entities that pay out
only minimal winnings, and it may not
be feasible to enter into agreements with
all of these entities. State agencies are
expected to make a good faith effort to
include as many gaming entities in their
implementation of this rule as
practicable. While households must
always report substantial lottery or
gambling winnings as proposed in
section 273.12(a)(5)(iii)(G) (discussed
below), if a State agency and gaming
entity cannot come to an agreement after
the State agency made a good faith
effort, then the State agency would not
need to continue to pursue an
agreement with that gaming entity at
that time. If there are no gaming entities
in the State, the State agency is not
expected to establish cooperative
agreements.
One commenter requested clarity on
how States should detect out-of-State
winners. Section 4009 does not
differentiate the disqualification for
receipt of substantial lottery and
gambling winnings based on in-State or
out-of-State winnings. States are not
required to enter into cooperative
agreements with out-of-State gaming
entities. However, households are
required to report substantial winnings,
regardless if they are won in-State or
out-of-State. If a State agency becomes
aware of a household member winning
substantial winnings from a gaming
entity outside of the State, then the State
would follow procedures under
273.12(c)(3) for unclear information if
that information is not verified and
clear. The Department believes the
proposed rule was sufficiently clear on
the requirement for State agencies to
establish cooperative agreements with
gaming entities, and is not making
changes in the final rule, but will clarify
as needed with additional guidance as
States implement the provision.

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One commenter questioned whether
gaming entities would be compensated
for costs associated with establishing
cooperative agreements and suggested
that the costs included in the proposed
information collection appeared to be
minimal. The Department is not
authorized to reimburse gaming entities
for their business costs, but the
associated allowable State agency costs
of cooperative agreements would be
reimbursed at 50 percent in accordance
with 277.4(b). The Department will
clarify as needed with additional
guidance as States implement the
provision.
In the final rule, the Department is
revising the requirements for the State
Plan of Operation in 272.2(d)(1) to
include information about cooperative
agreements into which the State has
entered with gaming entities.
Privacy Concerns
The Department proposed that a
cooperative agreement established
between the State agency and a gaming
entity would specify that the gaming
entity would share information about
individuals with substantial winnings
with the State agency as frequently as is
feasible to identify SNAP recipients
with substantial winnings. The
Department received four comments
that expressed concern about
safeguarding confidential information of
SNAP applicants and recipients. As
noted in the proposed rule, cooperative
agreements are to solely allow for the
gaming entities to transmit information
to State agencies; State agencies are
prohibited from sharing any information
about SNAP households with gaming
entities. Cooperative agreements shall
specify the type of information shared
by the gaming entity and include
safeguards limiting the release and
disclosure of personally identifiable
information to parties outside of those
included in the agreement. The
Department has incorporated a reference
to 272.1(c), which protects privacy
concerns, at 272.17(b) in the final rule
and believes this adequately addresses
the concerns.
Self-Reporting
The Department proposed to add
paragraph 273.12(a)(1)(viii) and revise
paragraphs 273.12(a)(5)(iii)(E) and
273.12(a)(5)(vi)(B) to require households
to self-report substantial winnings to the
State agency administering the
household’s SNAP benefits, in
accordance with the reporting
timeframes outlined in section
273.12(a)(2). The Department received
five comments about SNAP recipients
self-reporting substantial winnings to

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State agencies. Of the five comments,
one comment suggested that State
agencies should rely on self-reporting,
the media, and Internal Revenue Service
(IRS) yearly tax reports to identify SNAP
recipients who win a substantial
amount of lottery and gambling
winnings. Another of the five comments
noted that gambling winnings are
already tracked by the IRS and easy to
find. One commenter disagreed with
adding the reporting requirement, while
another comment encouraged the
Department to ensure that reporting
requirements do not unduly burden
SNAP households. The last of the five
comments supported the self-reporting
requirement and suggested that the
disqualification for not reporting
substantial lottery and gambling
winnings should not extend to the
entire household, but only to the
individual who did not report.
The Department appreciates the
comments received concerning the
burden to SNAP households that must
self-report substantial winnings.
However, households certified to
receive SNAP must report substantial
winnings so that the State agency may
immediately act on household changes,
as required by section 4009.
The Department is adopting the
regulatory text from the proposed rule
as final, and is making two clarifications
due to the previous publication of the
‘‘Supplemental Nutrition Assistance
Program (SNAP): Eligibility,
Certification, and Employment and
Training Provisions of the Food,
Conservation and Energy Act of 2008’’
final rule on January 6, 2017 (82 FR
2010) (FCEA final rule), which made
changes to section 273.12(a)(2). The
Department is clarifying that, in
accordance with section 273.12(a)(2),
certified SNAP households must report
substantial lottery and gambling
winnings, as defined by this final rule,
within 10 days of the date the
household receives the substantial
winnings or, at the State agency’s
option, within 10 days of the end of the
month in which the household received
the winnings. Additionally,
273.12(a)(5)(iii)(E) was re-designated as
273.12(a)(5)(iii)(G) in the FCEA final
rule, and, therefore, the Department is
codifying the requirement for
households to self-report substantial
winnings at section 273.12(a)(5)(iii)(G)
in the final rule.
Informing SNAP Households of the
Disqualification for Substantial Lottery
and Gambling Winnings
The Department received four
comments addressing the proposed
requirement in section 272.17(c)(4) for

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State agencies to provide households
with a notice of adverse action as
described in section 273.13 before
terminating benefits based on receipt of
substantial lottery and gambling
winnings. One of the four comments
requested clarity on how States may
inform SNAP households of the new
lottery and gambling disqualification,
and the rules for re-establishing
eligibility for SNAP. Two of the four
comments agreed with the Department’s
position that it is not necessary to
include a question on the initial SNAP
application asking applicants if anyone
in the household has ever received
substantial lottery or gambling winnings
as section 4009 is aimed at households
already participating in SNAP. The last
of the four comments requested clarity
on notices informing households of its
ineligibility for SNAP.
As noted in the preamble to the
proposed rule, this disqualification
applies to participating SNAP
households. Current regulations at 7
CFR 273.2(e)(1) require the State agency
to inform households during the
interview of their rights and
responsibilities, including the
households’ responsibility to report
changes. Therefore, at the time a
household is certified to receive SNAP,
the State agency is required to inform
the household that it may lose eligibility
for SNAP if a household member
receives substantial lottery and
gambling winnings.
States have flexibility in determining
how to best inform households that
have been disqualified due to receipt of
substantial lottery or gambling winnings
of the requirements for re-establishing
eligibility. Such information may be
provided in various ways, including at
the time of case closure and/or the
notice of adverse action. Including
information in the notice of adverse
action about how households may
regain eligibility is a best practice for
informing households that have been
disqualified due to significant lottery or
gambling winnings. The Department is
making no changes in the final rule
because it believes that the rule as
proposed sufficiently addressed the
above issues.
Verification of Data Matches
In new section 272.17(c), the
Department proposed to give State
agencies discretion to determine
whether information about a SNAP
household member’s receipt of
substantial lottery or gambling winnings
received through data matches with
gaming entities is verified upon receipt.
The Department received three
comments addressing verification of

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data matches. One commenter
supported this discretion; two
commenters recommended requiring
States to send a notice to households to
verify lottery or gambling winnings
information received from data matches
with gaming entities before
disqualifying households. As noted in
the proposed rule, data received through
cooperative agreements with gaming
entities may come from a wide variety
of gaming entities (e.g. public or private
entities; local, statewide or national
entities) with varying degrees of
reliability.
Based upon the comments and further
review, the Department has determined
that information from data matches
regarding lottery or gambling winnings
does not fall within the definition in
273.2(f)(9)(iii) of information that is
‘‘verified upon receipt.’’ However, State
agencies have existing discretion in
273.2(f)(2) and (3) to determine what
information is questionable and requires
verification, so long as the criteria used
is consistent. In this final rule, the
Department is clarifying that the
standards regarding verification in
273.2(f)(2) and (3) apply to information
from data matches regarding lottery and
gambling winnings.
In section 272.17(c)(4), the
Department proposed requiring State
agencies to send households a notice of
adverse action, in accordance with
section 273.13 and prior to termination,
when the household receives substantial
winnings during their certification
period. For households found to have
received substantial winnings at the
time of their case’s recertification, the
proposed rule stated that the State
agency would provide these households
with a notice of denial, per section
273.10(g)(2).
Additionally, since the publication of
the proposed rule, the FCEA final rule
was published on January 6, 2017. The
FCEA final rule updated procedures at
section 273.12(c)(3) on how to treat
unclear information, including when
the State must send households a
Request for Contact (RFC) to resolve
unclear information. When information
about a household’s receipt of
substantial winnings during the
certification period is unclear, the State
would follow the procedures outlined at
section 273.12(c)(3).
One of these commenters also
suggested that State agencies request
information on deductions withheld
from the household’s winnings when
contacting a household after the State
has learned that the household has
received substantial winnings. As
previously discussed, basing the
disqualification on net, instead of gross,

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winnings would be overly burdensome.
Therefore, the Department will not
require States agencies to request
information about deductions from
winnings.
The Department believes that the
procedures established in the proposed
rule and those updated in the FCEA
final rule give households sufficient
notice when action is taken on their
case due to receipt of substantial
winnings and, therefore, is adopting the
provisions as proposed.
Eligibility for Previously Disqualified
SNAP Households
Section 4009 requires that households
disqualified for substantial winnings
remain ineligible until they again meet
the allowable financial resources and
income eligibility requirements of the
Act. The Department received one
comment that suggested adding a
timeframe for when an applicant may
re-apply for SNAP benefits under
program income and resource
requirements and to include an appeals
process when a household is
disqualified under this rule. Since
section 4009 provides that a household
remain ineligible ‘‘until the household
meets the allowable financial resources
and income eligibility requirements,’’
specifying a timeframe is not
appropriate since any set timeframe may
not reflect the circumstances under
which a disqualified household does
become eligible again. This final rule
adopts the proposed rule’s language that
previously disqualified households
remain ineligible until they meet the
income and eligibility requirements
outlined in sections 273.8 and 273.9. In
addition, the right to request a fair
hearing under section 273.15 for an
action that affects a household’s
participation in the program applies to
households disqualified under this rule
for substantial lottery and gambling
winnings without need for an explicit
statement.
The Department received three
comments requesting guidance on how
the new lottery and gambling
disqualification in this rule applies to
households certified for SNAP under
categorical eligibility requirements
defined at 7 CFR 273.2(j). Under this
rule, households certified to receive
SNAP benefits under section 273.2(j)
that lose eligibility because an
individual member received substantial
lottery or gambling winnings, as defined
by this rule, will remain ineligible until
they meet the income and eligibility
requirements in the Act detailed in
sections 273.8 and 273.9, as required by
section 4009. The Department will make
no changes to the final rule.

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Section 4015: Mandating Certain
Verification Systems
Section 4015 of the 2014 Farm Bill
amended section 11(p) of the Act (7
U.S.C. 2020(p)) to require State agencies
to use an immigration status verification
system established under section 1137
of the Social Security Act (SSA) (42
U.S.C. 1320b–7) and an income and
eligibility verification system, in
accordance with standards set by the
Secretary. Before the 2014 Farm Bill,
State agencies were not required to use
either of these verification systems.
Immigration Status and Verification
Systems
Background
Current regulations at 7 CFR
273.2(f)(1)(ii) require that State agencies
verify the eligible immigration status of
all non-citizens applying for SNAP
benefits but do not specify the system
that State agencies must use. The
amendments made by the 2014 Farm
Bill mandate that State agencies use an
immigration status verification system
established under section 1137 of the
SSA. Section 1137(d)(3) of the SSA (42
U.S.C. 1320b–7(d)(3)) requires
verification of immigration status
‘‘through an automated or other system’’
designated by the Immigration and
Naturalization Service (INS) for use by
the States. The only immigration status
verification system currently designated
under section 1137 of the SSA is the
Systematic Alien Verification for
Entitlements (SAVE) Program.
SAVE is an inter-governmental
service accessible by Federal, State, and
local benefit-granting agencies and
licensing bureaus that are authorized by
law to verify immigration status. State
agencies use the SAVE system to verify
the immigration status of SNAP
applicants, ensuring benefits are only
provided to individuals whose
citizenship or immigration status allows
them to receive SNAP. As discussed in
the preamble to the proposed rule,
under the Homeland Security Act of
2002 (Pub. L. 107–296), INS functions
transferred from the Department of
Justice to the newly created Department
of Homeland Security (DHS). Within
DHS, the U.S. Citizenship and
Immigration Services (USCIS)
administers the SAVE program.
USCIS has confirmed that the only
two ways a SNAP State agency can
currently verify immigration status with
USCIS are both through the SAVE
system. Under electronic verification, a
State agency submits a request
electronically and the SAVE system
either confirms the applicant’s status or
requests submission of additional

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information. Under paper-based
verification, a State agency mails a
completed Form G–845, Verification
Request, with a copy of the applicant’s
documentation, to a USCIS State
Verification Office. A State agency may
also attach a Form G–845 Supplement,
Document Verification Request
Supplement, to request more detailed
information on an applicant’s
immigration status, citizenship, and
sponsorship. To conduct either
electronic or paper-based verification
through the SAVE system, the State
agency must first sign a memorandum of
agreement with USCIS.
Mandatory Use of SAVE
The Department proposed to amend
regulations at 7 CFR 272.11(a) and
273.2(f)(1)(ii)(A) to require States to use
an immigration status verification
system established under section 1137
of the SSA (42 U.S.C. 1320b–7) when
verifying immigration status of SNAP
applicants. The Department also
proposed to clarify in section
273.2(f)(1)(ii) and (f)(10) that, even
though households are still required to
submit documentation to verify the
immigration status of household
members who are non-citizens, State
agencies must also verify the validity of
that status with USCIS.
As discussed in the preamble to the
proposed rule, all 53 State agencies
(including the District of Columbia,
Guam, and the Virgin Islands) have
indicated to FNS that they already use
the SAVE system to verify immigration
status. Commenters were, therefore,
generally supportive of the proposed
changes, with one noting that SAVE is
a system that States are already using
and requiring its use ensures
compliance with statutory and
regulatory requirements without
imposing new burdens or costs on
States. Three commenters made requests
for clarification.
One commenter asked the Department
to clarify that the use of SAVE is limited
to verifying the status of any non-citizen
household member applying for SNAP,
but not for any non-applicant household
members, including individuals
applying on behalf of a household. As
per current regulations, the status of
non-applicant household members does
not need to be verified. The Department
believes the proposed language at
section 273.2(f)(10) requiring
documentation and verification ‘‘for
each alien applying for SNAP benefits’’
is sufficiently clear and is therefore not
adopting additional clarifications for
non-applicant households in the final
rule.

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Another commenter asked the
Department to follow a State agency’s
policy and clarify that a delay in receipt
of data from the SAVE system is not a
basis for a delay in application
processing timelines. Under the State
policy, if all other factors of eligibility
have been established and the noncitizen applicant is otherwise eligible,
benefits must be granted while awaiting
a SAVE response. This policy is
consistent with existing regulations at
section 273.2(f)(1)(ii)(B) and no change
in the final rule is necessary.
A third commenter noted the SAVE
system can only verify that the
information provided by an applicant is
accurate at one point in time; if
immigration status has recently
changed, SAVE may not always be
updated to reflect the current status.
The commenter requested the
Department clarify that, if an applicant
provides paper documentation
indicating a new status, State agencies
should be allowed to use prudent
judgment to determine the status of the
applicant. As the Department believes
the regulatory requirements around
immigration status verification are
already consistent with other
verification practices for questionable
information, no additional clarifying
language has been added to the final
rule. The Department believes current
verification procedures for questionable
information are sufficient for these rare
occurrences.
The Department also proposed in
section 273.2(f)(10)(vi) to allow, but not
require, State agencies to use SAVE to
confirm whether an affidavit of support
has been executed for a sponsored noncitizen. No comments were submitted
on this issue, and the Department
adopts the provision with technical
edits to ensure consistent terminology.

(IEVS), in accordance with standards set
by the Secretary. As discussed in the
preamble to the proposed rule,
standards for the optional use of IEVS
already exist at sections 272.8(a)(1),
273.2(b)(2), and 273.2(f)(9). In
accordance with the statutory changes,
the Department proposed amending
these regulations to change the use of
IEVS from an option to a requirement.
State agencies must follow standard
verification procedures for IEVS
matches. As there were no substantive
comments on these proposed changes,
the final rule adopts the changes as
proposed.
III. 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 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 rule has been designated as not
significant by the Office of Management
and Budget, therefore, no Regulatory
Impact Analysis is required.

Technical Corrections
When INS ceased to exist on March 1,
2003, its functions transferred from the
Department of Justice to the DHS.
Within DHS, USCIS administers the
SAVE program, as well as overseeing
lawful immigration to the United States
and naturalization of new American
citizens. The proposed rule updated
references from INS to USCIS
throughout parts 271, 272, and 273
accordingly. Commenters were either
supportive of or silent on these changes,
and the final rule adopts the changes as
proposed.

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 rule would
not have a significant impact on a
substantial number of small entities.
While there may be some burden/
impact on State agencies and small
entities involved in the gaming
industries, the impact is not significant
as the burden would be on State
agencies to enter into appropriate
cooperative agreements.

Income and Eligibility Verification
System (IEVS)
Section 4015 of the 2014 Farm Bill
requires State agencies to use an income
and eligibility verification system

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

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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 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
SNAP is listed in the Catalog of
Federal Domestic Assistance Programs
under 10.551. For the reasons set forth
in the Federal Register notice published
June 24, 1983 (48 FR 29115), this
program is included in 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 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 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

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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
The Department has reviewed this
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, the
Department has determined that the
changes to SNAP regulations in this
proposed rule are driven by legislation
and therefore required. The Department
specifically prohibits the State and local
government agencies that administer the
program from engaging in
discriminatory actions. Discrimination
in any aspect of program administration
is prohibited by SNAP regulations, the
Food and Nutrition Act of 2008, the Age
Discrimination Act of 1975, section 504
of the Rehabilitation Act of 1973, the
Americans with Disabilities Act of 1990
and Title VI of the Civil Rights Act of
1964. State agencies that participate in
SNAP must take reasonable steps to
ensure that persons with Limited
English Proficiency (LEP) have
meaningful access to programs, services,
and benefits. This includes the
requirement to provide bilingual
program information and certification
materials and interpretation services to
single-language minorities in certain
project areas. SNAP State agencies that
do not provide meaningful access for
LEP individuals risk violating
prohibitions against discrimination
based on National Origin in the Food
and Nutrition Act of 2008, as amended,
Title VI of the Civil Rights Act of 1964
(Title VI), and SNAP program
regulations. SNAP State agencies must
also ensure equal opportunity access for
persons with disabilities. This includes
ensuring that communications with
applicants, participants, members of the
public, and companions with
disabilities are as effective as
communications with people without
disabilities. State Agencies that do not
provide persons with disabilities equal
opportunity access to programs may risk
violating prohibitions against disability
discrimination in the Rehabilitation Act
of 1978, the American with Disabilities
Act (ADA), and SNAP program
regulations. Where State agencies have
options, and they choose to implement
a certain provision, they must

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implement it in such a way that it
complies with non-discrimination
requirements and the regulations at 7
CFR 272.6.
Executive Order 13175
Executive Order 13175 requires
Federal agencies to consult and
coordinate with Indian 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.
On August 15, 2018, the Department
participated in a Tribal Consultation on
the Lottery provisions of this rule. There
were no significant comments. Tribal
organizations with gaming facilities may
be approached by the State(s) in which
they are located to enter into
cooperative agreements to identify
individuals with significant lottery or
gambling winnings. The Department
also briefed Indian Tribes on the
provisions of this rule at a listening
session on February 14, 2019. Indian
Tribes were subsequently provided the
opportunity to consultation on this rule
but the Department received no
feedback. If an Indian Tribe requests
future consultation, the Department will
work to ensure meaningful consultation
is provided.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. Chap. 35; 5 CFR 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 final rule
will contain information collections that
are subject to review and approval by
the OMB; therefore, the Department
submitted the proposed rule for public
comment regarding changes in the
information collection burden resulting
from the provisions in this final rule.
In accordance with the Paperwork
Reduction Act of 1995, the notice
included in the proposed rule invited
the general public and other public
agencies to comment on the proposed
information collection. This is a new
collection for final rule, Supplemental
Nutrition Assistance Program: Student

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Eligibility, Convicted Felons, Lottery
and Gambling, and State Verification
Provisions of the Agricultural Act of
2014 (RIN 0584–AE41). Section 4009 of
the Agricultural Act of 2014 (the Act)
makes SNAP participants with
substantial lottery and gambling
winnings ineligible for SNAP benefits.
Section 4009 of the Act also provides
that State SNAP agencies are required to
the maximum extent practicable to
establish cooperative agreements with
gaming entities within the State to
identify SNAP recipients with
substantial winnings. USDA is
implementing section 4009 through
final rulemaking.
State SNAP agencies are required, to
the maximum extent practicable, to
establish cooperative agreements with
gaming entities within the State to
identify SNAP recipients with
substantial winnings. Gaming entities
(both State public agency and private
business gaming entities) that enter into
the cooperative agreements will share
information with the State SNAP agency
on individuals within their gaming
establishment who win amounts equal
to or greater than the maximum
allowable resource limit for elderly or
disabled SNAP households, as defined
in 7 CFR 273.8(b).
The provisions regarding students,
felon disqualification and State
eligibility verification systems in this
final rule do not contain information
collection requirements subject to
approval by OMB under the Paperwork
Reduction Act of 1995. State agencies
will be required to make minimal, onetime changes to their application
process in order to comply with the
provisions of the felon disqualification
attestation requirement. Since State
agencies are already required to verify
the immigration status of non-citizens
applying for the program, the impact of
this provision is negligible. Other
minimal burdens imposed on State
agencies by this final rule are usual and
customary within the course of their
normal business activities.
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
approval.
Requests for additional information or
copies of this information collection
should be directed to Mary Rose Conroy
at 703–305–2803.
Title: Supplemental Nutrition
Assistance Program: Student Eligibility,
Convicted Felons, Lottery and
Gambling, and State Verification

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Provisions of the Agricultural Act of
2014.
Form Number: [N/A].
OMB Number: [0584–NEW].
Expiration Date: [Not Yet
Determined.]
Type of Request: New collection.
Abstract: This final rule will
implement section 4009 of the
Agricultural Act of 2014 (Ending
Supplemental Nutrition Assistance
Program Benefits for Lottery or
Gambling Winners), which provides
that a household in which a member
receives substantial lottery or gambling
winnings shall lose eligibility for SNAP
until the household meets normal
income and resource standards. This
rule defines lottery or gambling
winnings equal to or greater than the
resource limit for elderly or disabled
households as defined in 7 CFR 273.8(b)
as substantial. The provision also
requires States to establish cooperative
agreements, to the maximum extent
practicable, with entities responsible for
regulating or sponsoring gaming
activities (gaming entities) in their State
in order to identify individuals with
substantial winnings.
This rule does not carry any
recordkeeping burden. Reporting
burden details are provided below.
Affected public: State agencies, State
gambling entities, gaming entities.
Regulation Section: 7 CFR 272.17.
Respondent Type: State agency and
gaming entities.
Estimated number of respondents:
250.
Total annual responses: First year
1,561,350; Ongoing 1,560,800.
Estimated annual burden hours: First
year 561,920 hrs; Ongoing 193,920 hrs.
Estimated cost to respondents: First
year $23,317,573; Ongoing $3,874,373.
Description of Costs and Assumptions
In the proposed rule’s information
collection burden, the Department
assumed that all 53 State agencies
would establish cooperative agreements
despite large variation in gaming
activities among States. The final rule’s
information collection estimates are
based on 50 of the 53 State agencies
implementing this provision to establish
cooperative agreements. The

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Department assumes that at least three
of the 53 State agencies do not have
gambling or lottery in the State. These
three State agencies would not be
subject to this information collection
because the rule does not require States
to establish agreements with gaming
entities outside of the State. These three
State agencies are required to act when
a household self-reports substantial
lottery or gambling winnings, or the
State learns of a household’s winnings.
Nevertheless, the Department does not
anticipate that these States will
experience an increased burden for
action on this information, as it is
estimated that States without gaming
entities will have significantly fewer
households that receive substantial
winnings. Therefore, the estimates in
this final information collection are
based on 50 State agencies establishing
cooperative agreements as required by
section 4009.
First Year (One-Time Occurring Costs)
It is estimated that establishing the
cooperative agreements between the
State Agency and the gaming entities
will take approximately 320 hours per
response (80,000 hours total). This
includes time for the State agency to
reach out to gaming entities in the State,
negotiate terms for sharing identifying
information of winners, establish secure
connections for sharing information,
and complete all necessary reviews of
agreements by legal counsel and State
leadership. Our estimate assumes that
50 of the 53 State Agencies receiving
SNAP funding will implement this rule
despite large variations in gaming
activities among States.
It is estimated that creating a
computerized system to match
information on winners from gaming
entities with State SNAP participation
lists will take approximately 4,160
hours per response (208,000 hours
total). All States currently make use of
other computerized data matching
systems (e.g., SAVE for immigration
verification), so costs assume States will
re-program existing systems.
Ongoing Yearly Costs
Once the computerized matching
system is in place, the matches between

Respondent type

Description of activity

7 CFR 272.17 ............

State SNAP Agency
Managers.

7 CFR 272.17 ............

State Public Agency
Gaming Entity Managers.

** Establish cooperative agreements
with State public
agency and gaming
entities.
** Establish cooperative agreements
with State SNAP
agency.

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Estimated
number of
respondents

Frm 00009

Annual report
or record filed

Total annual
responses

the winner list and SNAP participation
list should occur automatically and with
negligible cost. There is no national
database of how many people win large
amounts of money in State lotteries or
through other gaming activities. For this
estimate, it is assumed that
approximately 36,000 SNAP
participants (average 720 per State
Agency) nationally will be identified
every year through the above matches,
but, of these, approximately 23,000
(average 460 per State agency) will be
found to have actual substantial lottery
or gambling winnings (the others may
be simply misidentified because of a
similar name, inaccurate reporting, etc.).
For each match, an eligibility worker
will:
• Generate a notice to an identified
match requesting more information (10
minutes).
• Review the returned information
from the participant and engage in any
additional verification (20 minutes).
• If the matched participant is not a
winner—Update the case file (10
minutes).
• If the matched participant is a
winner—Un-enroll the household and
send notice of adverse action (30
minutes).
Lottery or gambling winners who lose
eligibility for SNAP will need to be reevaluated according to normal program
rules if they again decide to apply for
SNAP benefits. This process will vary
by State depending on the categorical
eligibility policy options in place.
Eligibility workers will need to identify
if a current SNAP applicant previously
lost eligibility due to substantial
winnings.
Due to the change in the final rule,
lowering the threshold for substantial
lottery and gambling winnings to the
$3,500 resource limit for elderly or
disabled households under 7 CFR
273.8(b), the Department anticipates
that State agencies will need to
reevaluate significantly more
households than estimated in the
proposed information collection. This
will increase the estimated cost and
burden for States.
Number of
burden hours
per response

Estimated
total burden
hours

Hourly wage
rate *

Estimate
cost to
respondents

50

5

250

320

80,000

$59.35

$4,748,000

50

1

50

320

16,000

59.35

949,600

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Reg. section

Respondent type

Description of activity

7 CFR 272.17 ............

State SNAP IT Staff ..

272.17 and 273.11(r)

State SNAP Agency
Eligibility Worker.

7 CFR 272.17 and 7
CFR 273.11(r).

State SNAP Agency
Eligibility Worker.

7 CFR 272.17 and 7
CFR 273.11(r).

State SNAP Agency
Eligibility Worker.

7 CFR 272.17 ............

State Public Agency
Gaming Entity Staff
Member.

7 CFR 272.17 ............

State SNAP IT Staff ..

** Create a data
matching system
with State public
agency and gaming
entities.
Eligibility worker follow-up—
misidentified winners.
Eligibility worker follow-up—true winners.
Eligibility worker work
new applications
(churn).
Input data into data
matching system
for use by State
SNAP agency.
Maintain a data
matching system
with State public
agency and gaming
entities.

Estimated
number of
respondents

State Agency Subtotal Reporting .......................................................
7 CFR 272.17 ............

Gaming Entity Managers.

7 CFR 272.17 ............

Gaming Entity Staff
Member.

** Establish cooperative agreements
with State SNAP
agency.
Input data into data
matching system
for use by State
SNAP agency.

Business Subtotal Reporting ..............................................................
States and Business Reporting Grand Total Burden Estimates

Annual report
or record filed

Total annual
responses

Number of
burden hours
per response

Estimated
total burden
hours

Estimate
cost to
respondents

Hourly wage
rate *

50

1

50

4,160

208,000

53.74

11,177,920

50

260

13,000

0.667

8,671

21.45

185,993

50

460

23,000

1

23,000

21.45

493,350

50

411

20,550

1

20,550

21.45

440,798

50

6,000

300,000

0.08

24,000

19.56

469,440

50

1

50

320

16,000

53.74

859,840

50

........................

........................

........................

........................

........................

19,324,940

200

1

200

320

64,000

40.12

2,567,680

200

6,000

1,200,000

0.08

96,000

13.57

1,302,720

200

101

16,059

........................

52,152

........................

3,870,400

250

........................

........................

........................

........................

........................

23,195,340

* Based on the Bureau of Labor Statistics May 2017 Occupational and Wage Statistics. The salaries of State SNAP agency managers and public gaming entity managers are considered to be
‘‘General and Operations Managers (11–1021).’’ The salaries of gaming entity managers are considered to be ‘‘Gaming Managers (11–9071).’’ The salaries of State SNAP IT Staff are considered to be ‘‘Software Developers, Systems Software (15–1133).’’ The salaries of the eligibility workers are considered to be ‘‘Eligibility Interviewers, Government Programs (43–4061).’’ The salaries of public gaming entity staff member are considered to be ‘‘Information and Record Clerks, All Other (43–4199).’’ The salaries of gaming entity staff member are considered to be ‘‘Gaming
Cage Workers (43–3041).’’ (http://www.bls.gov/oes/home.htm).
** These are only first year costs and are next expected to re-occur annually.

Summary of burden

Est. number
of respondents

Number of
responses per
respondent

Total annual
responses

Est. total
hours per
response

Est. total
burden

Cost to
respondents

Reporting ..................................................
Recordkeeping .........................................

250
........................

13,224
........................

1,557,150
........................

........................
........................

561,920
........................

$23,195,340
........................

Total ..................................................

250

........................

1,557,150

........................

561,920

23,195,340

E-Government Act Compliance

7 CFR Part 273

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

Administrative practice and
procedure, Aliens, Claims, Employment,
Food stamps, Fraud, Government
employees, Grant programs—social
programs, Income taxes, Reporting and
recordkeeping requirements, Students,
Supplemental Security Income, Wages.
For the reasons set forth in the
preamble, 7 CFR parts 271, 272 and 273
are amended as follows:
■ 1. The authority citation for Parts 271,
272 and 273 continues to read as
follows:

List of Subjects
7 CFR Part 271

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Food stamps, Grant programs—social
programs, Reporting and recordkeeping
requirements.

PART 271—GENERAL INFORMATION
AND DEFINITIONS

7 CFR Part 272
Alaska, Civil rights, Claims, Food
stamps, Grant programs—social
programs, Reporting and recordkeeping
requirements, Unemployment
compensation, Wages.

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Authority: 7 U.S.C. 2011–2036.

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2. In § 271.2:
a. In the definition of ‘‘Alien Status
Verification Index (ASVI)’’, remove the
words ‘‘Immigration and Naturalization

■
■

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Service’’ and add, in their place, the
words ‘‘United States Citizenship and
Immigration Services (USCIS)’’.
■ b. Remove the definition of
‘‘Immigration and Naturalization
Service (INS).’’
■ c. Add a definition of ‘‘United States
Citizenship and Immigration Services
(USCIS)’’ in alphabetical order.
The addition to read as follows:
§ 271.2

Definitions.

*

*
*
*
*
United States Citizenship and
Immigration Services (USCIS) means the
U.S. Citizenship and Immigration
Services, U.S. Department of Homeland
Security.
*
*
*
*
*

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PART 272—REQUIREMENTS FOR
PARTICIPATING STATE AGENCIES
3. Add § 272.2(d)(1)(xviii) to read as
follows:

■

§ 272.2

Plan of operation.

*

*
*
*
*
(d) * * *
(1) * * *
(xviii) A list indicating the names of
gaming entities with which the State
agency has entered into cooperative
agreements and the frequency of data
matches with such entities.
*
*
*
*
*
■ 4. In § 272.8(a)(1), revise the first
sentence to read as follows:
§ 272.8 State Income and Eligibility
Verification System.

(a) * * *
(1) State agencies shall maintain and
use an income and eligibility
verification system (IEVS), as specified
in this section. * * *
*
*
*
*
*
■ 5. Amend § 272.11 by revising
paragraph (a) and in paragraphs (b) and
(d), remove the word ‘‘INS’’ and add in
its place the word ‘‘USCIS’’.
§ 272.11 Systematic Alien Verification for
Entitlements (SAVE) Program.

(a) General. A State agency shall use
an immigration status verification
system established under section 1137
of the Social Security Act (42 U.S.C.
1320b–7) to verify the eligible status of
all aliens applying for SNAP benefits.
USCIS maintains the Systematic Alien
Verification for Entitlements (SAVE)
Program to conduct such verification.
*
*
*
*
*
■ 6. Add § 272.17, to read as follows:

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§ 272.17 Substantial Lottery or Gambling
Winnings.

(a) General. Each State agency, to the
maximum extent practicable, shall
establish cooperative agreements with
gaming entities within their State to
identify members of certified
households who have won substantial
lottery or gambling winnings as defined
in § 273.11(r).
(b) Cooperative Agreements. State
agencies, to the maximum extent
practicable, shall enter into cooperative
agreements with the gaming entities
responsible for the regulation or
sponsorship of gaming in the State.
Cooperative agreements should specify
the type of information to be shared by
the gaming entity, the procedures used
to share information, the frequency of
sharing information, and the job titles of
individuals who will have access to the
data. Cooperative agreements shall also

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include safeguards to prevent release or
disclosure of personally identifiable
information of SNAP recipients who are
the subject of data matches in
accordance with 272.1(c).
(c) Use of information on winnings.
States shall provide a system for:
(1) Comparing information obtained
from gaming entities about individuals
with substantial winnings with
databases of currently certified
households within the State;
(2) The reporting of instances where
there is a match;
(3) The verification of matches to
determine their accuracy in accordance
with § 273.2(f);
(4) If during a household’s
certification period, as defined in
§ 273.11(r), prior to any action to
terminate the household’s benefits, the
State agency shall provide the
household notice in accordance with
the provisions on notices of adverse
action appearing in § 273.13. If the
information received is unclear, the
State agency shall follow procedures at
§ 273.12(c)(3). For households that are
found to have received substantial
winnings at the time of the household’s
recertification, the State agency shall
notify such households, in accordance
with the provisions on notices of denial
appearing in § 273.10(g)(2); and
(5) The establishment and collection
of claims as appropriate.
(d) Frequency of data matches. The
State agency shall perform data matches
as frequently as is feasibly possible to
identify SNAP recipients with
substantial winnings, as defined in
§ 273.11(r); however, at a minimum the
State agency shall conduct data matches
when a household files a periodic report
and at the time of the household’s
recertification.
(e) State Plan of Operation. The State
agency shall include as an attachment to
the annual State Plan of Operation, as
required in accordance with § 272.2, the
names of gaming entities with which the
State agency has entered into
cooperative agreements, the frequency
of data matches with such entities.
PART 273—CERTIFICATION OF
ELIGIBLE HOUSEHOLDS
7. In Part 273 remove the word ‘‘INS’’
each place it appears and add, in its
place, ‘‘USCIS’’.
■ 8. Add § 273.1(b)(7)(xii) to read as
follows:
■

§ 273.1

Household concept.

*

*
*
*
*
(b) * * *
(7) * * *
(xii) Individuals convicted of certain
crimes and who are out of compliance

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15093

with the terms of their sentence and
ineligible under § 273.11(s).
*
*
*
*
*
■ 9. In § 273.2:
■ a. Amend paragraph (b)(2) by revising
the first sentence;
■ b. Amend paragraph (f)(1)(ii)(A) by
revising the first sentence and adding a
new second sentence;
■ c. Amend paragraph (f)(5)(i) by adding
four sentences at the end of the
paragraph;
■ d. Amend paragraph (f)(9) by revising
the paragraph heading and paragraphs
(f)(9)(i) and (ii);
■ e. Amend paragraph (f)(10), by
revising the introductory text and
adding paragraph (f)(10)(vi);
■ f. Revise (j)(2)(vii)(D);
■ g. Add new paragraph (o).
The revisions and additions to read as
follows:
§ 273.2 Office operations and application
processing.

*

*
*
*
*
(b) * * *
(2) * * * In using IEVS in accordance
with paragraph (f)(9) of this section, a
State agency must notify all applicants
for SNAP benefits at the time of
application and at each recertification
through a written statement on, or
provided with, the application form that
information available through IEVS will
be requested, used, and may be verified
through collateral contact when
discrepancies are found by the State
agency, and that such information may
affect the household’s eligibility and
level of benefits. * * *
*
*
*
*
*
(f) * * *
(1) * * *
(ii) * * *
(A) The State agency shall verify the
eligible status of all aliens applying for
SNAP benefits by using an immigration
status verification system established
under section 1137 of the Social
Security Act (42 U.S.C. 1320b–7). FNS
may require State agencies to provide
written confirmation from USCIS that
the system used by the State is an
immigration status verification system
established under section 1137 of the
Social Security Act. * * *
*
*
*
*
*
(5) * * *
(i) * * * If a SNAP applicant’s
attestation regarding disqualified felon
status described in § 273.2(o) is
questionable, the State agency shall
verify the attestation. Each element of a
questionable attestation—that the
individual has been convicted of a
crime listed at § 273.11(s), and that the
individual is not in compliance with the

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terms of their sentence—shall be
verified by the State agency. The State
agency shall determine whether an
attestation is questionable based on the
standards established under
§ 273.2(f)(2)(i). In conducting
verifications of questionable attestations
under this paragraph, the State agency
shall establish reasonable, consistent
standards, evaluate each case separately,
and document the case file accordingly.
*
*
*
*
*
(9) Mandatory use of IEVS. (i) The
State agency must obtain information
through IEVS in accordance with
procedures specified in § 272.8 of this
chapter and use it to verify the
eligibility and benefit levels of
applicants and participating
households.
(ii) The State agency must access data
through the IEVS in accordance with the
disclosure safeguards and data exchange
agreements required by part 272.
*
*
*
*
*
(10) Mandatory use of SAVE.
Households are required to submit
documentation for each alien applying
for SNAP benefits in order for the State
agency to verify their immigration
statuses. State agencies shall verify the
validity of such documents through an
immigration status verification system
established under section 1137 of the
Social Security Act (42 U.S.C. 1320b–7)
in accordance with § 272.11 of this
chapter. USCIS maintains the SAVE
system to conduct this verification.
When using SAVE to verify immigration
status, State agencies shall use the
following procedures: * * *
*
*
*
*
*
(vi) State agencies may use
information contained in SAVE search
results to confirm whether an alien has
a sponsor who has signed a legally
binding affidavit of support when
evaluating the alien’s application for
SNAP benefits in accordance with the
deeming requirements described in
§ 273.4(c)(2).
*
*
*
*
*
(j) * * *
(2) * * *
(vii) * * *
(D) Any member of that household is
ineligible under § 273.11(m) by virtue of
a conviction for a drug-related felony,
under § 273.11(n) for being a fleeing
felon or a probation or parole violator,
or under § 273.11(s) for having a
conviction of certain crimes and not
being in compliance with the sentence.
*
*
*
*
*
(o) Each State agency shall require the
individual applying for SNAP benefits
to attest to whether the individual or
any other member of the household has

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been convicted of a crime as an adult as
described in § 273.11(s) and whether the
convicted member is complying with
the terms of the sentence.
(1) The State agency shall update its
application process, including
certification and recertification
procedures, to include the attestation
requirement. Attestations may be done
in writing, verbally, or both, provided
that the attestation requirement shall be
explained to the applicant household
during the interview and the attestation
is legally binding in the law of the State.
Whatever procedure a State chooses to
implement must be reasonable and
consistent for all households applying
for SNAP benefits. However, no
individual shall be required to come to
the SNAP office solely for an attestation.
(2) The State agency shall document
this attestation in the case file.
(3) The State agency shall establish
standards for verification of only those
attestations that are questionable, as
described in § 273.2(f)(2). When
verifying an attestation, the State agency
must verify any conviction for a crime
described in § 273.11(s) and that the
individual is not in compliance with the
terms of the sentence.
(4) Application processing shall not
be delayed beyond required processing
timeframes solely because the State
agency has not obtained verification of
an attestation. The State agency shall
continue to process the application
while awaiting verification. If the State
agency is required to act on the case
without being able to verify an
attestation in order to meet the time
standards in § 273.2(g) or § 273.2(i)(3),
the State agency shall process the
application without consideration of the
individual’s felony and compliance
status.
■ 10. Revise § 273.5(b)(11)(ii), to read as
follows:
§ 273.5

Students.

*

*
*
*
*
(b) * * *
(11) * * *
(ii) An employment and training
program under § 273.7, subject to the
condition that the course or program of
study, as determined by the State
agency:
(A) Is part of a program of career and
technical education as defined in
section 3 of the Carl D. Perkins Career
and Technical Education Act of 2006
(20 U.S.C. 2302) designed to be
completed in not more than 4 years at
an institution of higher education as
defined in section 102 of the Higher
Education Act of 1965 (20 U.S.C. 2296);
or

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(B) is limited to remedial courses,
basic adult education, literacy, or
English as a second language.
*
*
*
*
*
■ 11. Revise § 273.7(e)(1)(vi), to read as
follows:
§ 273.7

Work provisions.

*

*
*
*
*
(e) * * *
(1) * * *
(vi) Educational programs or activities
to improve basic skills or otherwise
improve employability including
educational programs determined by the
State agency to expand the job search
abilities or employability of those
subject to the program.
(A) Allowable educational programs
or activities may include, but are not
limited to, courses or programs of study
that are part of a program of career and
technical education (as defined in
section 3 of the Carl D. Perkins Act of
2006), high school or equivalent
educational programs, remedial
education programs to achieve a basic
literacy level, and instructional
programs in English as a second
language.
(B) Only educational components that
directly enhance the employability of
the participants are allowable. A direct
link between the education and jobreadiness must be established for a
component to be approved.
■ 12. In § 273.11:
■ a. Amend paragraph (c)(1)
introductory text by revising the
sentence after the paragraph heading;
and
■ b. Add paragraphs (r) and (s).
The revisions and additions to read as
follows:
§ 273.11 Action on households with
special circumstances.

*

*
*
*
*
(c) * * *
(1) * * * The eligibility and benefit
level of any remaining household
members of a household containing
individuals determined ineligible
because of a disqualification for an
intentional Program violation, a felony
drug conviction, their fleeing felon
status, noncompliance with a work
requirement of § 273.7, imposition of a
sanction while they were participating
in a household disqualified because of
failure to comply with workfare
requirements, or certain convicted
felons as provided at § 273.11(s) shall be
determined as follows: * * *
*
*
*
*
*
(r) Disqualification for Substantial
Lottery or Gambling Winnings. Any
household certified to receive benefits

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shall lose eligibility for benefits
immediately upon receipt by any
individual in the household of
substantial lottery or gambling
winnings, as defined in paragraph (r)(2)
of this section. The household shall
report the receipt of substantial
winnings to the State agency in
accordance with the reporting
requirements contained in
§ 273.12(a)(5)(iii)(G)(3) and within the
time-frames described in § 273.12(a)(2).
The State agency shall also take action
to disqualify any household identified
as including a member with substantial
winnings in accordance with § 272.17.
(1) Regaining Eligibility. Such
households shall remain ineligible until
they meet the allowable resources and
income eligibility requirements
described in §§ 273.8 and 273.9,
respectively.
(2) Substantial Winnings—(i) In
General. Substantial lottery or gambling
winnings are defined as a cash prize
equal to or greater than the maximum
allowable financial resource limit for
elderly or disabled households as
defined in § 273.8(b) won in a single
game before taxes or other withholdings.
For the purposes of this provision, the
resource limit defined in § 273.8(b)
applies to all households, including
non-elderly/disabled households, with
substantial lottery and gambling
winnings. If multiple individuals shared
in the purchase of a ticket, hand, or
similar bet, then only the portion of the
winnings allocated to the member of the
SNAP household would be counted in
the eligibility determination.
(ii) Adjustment. The value of
substantial winnings shall be adjusted
annually in accordance with
§ 273.8(b)(1) and (2).
(s) Disqualification for certain
convicted felons. An individual shall
not be eligible for SNAP benefits if:
(1) The individual is convicted as an
adult of:
(i) Aggravated sexual abuse under
section 2241 of title 18, United States
Code;
(ii) Murder under section 1111 of title
18, United States Code;
(iii) An offense under chapter 110 of
title 18, United States Code;
(iv) A Federal or State offense
involving sexual assault, as defined in
section 40002(a) of the Violence Against
Women Act of 1994 (42 U.S.C.
13925(a)); or
(v) An offense under State law
determined by the Attorney General to
be substantially similar to an offense
described in clause (i), (ii), or (iii); and
(2) The individual is not in
compliance with the terms of the

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sentence of the individual or the
restrictions under § 273.11(n).
(3) The disqualification contained in
this paragraph (s) shall not apply to a
conviction if the conviction is for
conduct occurring on or before February
7, 2014.
■ 13. In § 273.12, add paragraph
(a)(1)(viii) and revise paragraphs
(a)(4)(iv), (a)(5)(iii)(G) and (a)(5)(vi)(B).
The addition and revisions read as
follows:
§ 273.12

Reporting requirements.

(a) * * *
(1) * * *
(viii) Whenever a member of the
household wins substantial lottery or
gambling winnings in accordance with
§ 273.11(r).
(4) * * *
(iv) Content of the quarterly report
form. The State agency may include all
of the items subject to reporting under
paragraph (a)(1) of this section in the
quarterly report, except changes
reportable under paragraphs (a)(1)(vii)
and (a)(1)(viii) of this section, or may
limit the report to specific items while
requiring that households report other
items through the use of the change
report form.
(5) * * *
(iii) * * *
(G) The periodic report form shall be
the sole reporting requirement for any
information that is required to be
reported on the form, except that a
household required to report less
frequently than quarterly shall report:
(1) When the household monthly
gross income exceeds the monthly gross
income limit for its household size in
accordance with paragraph (a)(5)(v) of
this section;
(2) Whenever able-bodied adults
subject to the time limit of § 273.24
have their work hours fall below 20
hours per week, averaged monthly; and
(3) Whenever a member of the
household wins substantial lottery or
gambling winnings in accordance with
§ 273.11(r).
*
*
*
*
*
(vi) * * *
(B) The State agency must not act on
changes that would result in a decrease
in the household’s benefits unless one
of the following occurs:
(1) The household has voluntarily
requested that its case be closed in
accordance with § 273.13(b)(12).
(2) The State agency has information
about the household’s circumstances
considered verified upon receipt.
(3) A household member has been
identified as a fleeing felon or probation
or parole violator in accordance with
§ 273.11(n).

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(4) There has been a change in the
household’s PA grant, or GA grant in
project areas where GA and food stamp
cases are jointly processed in
accordance with § 273.2(j)(2).
(5) The State agency has verified
information that a member of a SNAP
household has won substantial lottery
or gambling winnings in accordance
with § 273.11(r).
*
*
*
*
*
Dated: April 8, 2019.
Brandon Lipps,
Administrator, Food and Nutrition Service.
[FR Doc. 2019–07194 Filed 4–12–19; 8:45 am]
BILLING CODE 3410–30–P

FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 327 and 337
RIN 3064–AE89

Limited Exception for a Capped
Amount of Reciprocal Deposits From
Treatment as Brokered Deposits;
Technical Amendment
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule; technical amendment
to preamble.
AGENCY:

The FDIC is making technical
amendments to the preamble of a final
rule published in the Federal Register
on February 4, 2019. The final rule
relates to a limited exception for a
capped amount of reciprocal deposits
from treatment as brokered deposits. As
published, several industry participants
raised concerns about the meaning of a
sentence in the preamble of the final
rule. To avoid potential confusion, the
FDIC is amending the language, as
explained below.
DATES: The technical amendments are
effective April 15, 2019.
FOR FURTHER INFORMATION CONTACT:
Legal Division: Vivek V. Khare, Counsel,
(202) 898–6847, [email protected];
Thomas Hearn, Counsel, (202) 898–
6967, [email protected]. Division of
Risk Management Supervision: Thomas
F. Lyons, Chief, Policy and Program
Development, (202) 898–6850, tlyons@
fdic.gov.
SUMMARY:

SUPPLEMENTARY INFORMATION:

Technical Amendments
On December 18, 2018, the FDIC
adopted a final rule relating to the
treatment of reciprocal deposits. The
final rule was published in the Federal
Register on February 4, 2019 (84 FR
1346). Several industry participants

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