Supplemental Nutrition Assistance Program: Non-Discretionary Quality Control Provisions of the Agricultural Improvement Act of 2018
| Published date | 13 August 2021 |
| Citation | 86 FR 44575 |
| Record Number | 2021-17254 |
| Section | Rules and Regulations |
| Court | Food And Nutrition Service |
Federal Register, Volume 86 Issue 154 (Friday, August 13, 2021)
[Federal Register Volume 86, Number 154 (Friday, August 13, 2021)]
[Rules and Regulations]
[Pages 44575-44587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17254]
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DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Part 275
[FNS-2018-0043]
RIN 0584-AE64
Supplemental Nutrition Assistance Program: Non-Discretionary
Quality Control Provisions of the Agricultural Improvement Act of 2018
AGENCY: Food and Nutrition Service (FNS), USDA.
ACTION: Interim final rule.
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SUMMARY: The U. S. Department of Agriculture (the Department) is
issuing this interim final rule to strengthen and improve the integrity
and accuracy of the Food and Nutrition Service (FNS) Supplemental
Nutrition Assistance Program (SNAP) Quality Control (QC) system by
codifying statutory requirements enacted by the Agriculture Improvement
Act of 2018 (2018 Farm Bill) that was signed into law on December 20,
2018.
DATES:
Effective date: August 13, 2021.
Compliance date: August 13, 2021, except for the Paperwork
Reduction Act (PRA) provisions, which are delayed pending approval by
the Office of Management and Budget (OMB). The Food and Nutrition
Service will publish a document in the Federal Register announcing the
compliance date.
Comment dates: Written comments on this interim final rule must be
received on or before October 12, 2021 to be assured of consideration.
We will consider comments on the Paperwork Reduction Act that we
receive by October 12, 2021.
ADDRESSES: The Food and Nutrition Service, USDA, invites interested
persons to submit written comments on this interim final rule. 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 comments to Stephanie Proska, Branch Chief,
Quality Control Branch, Program Accountability and Administration
Division; Food and Nutrition Service; 1320 Braddock Place, 5th Floor;
Alexandria, Virginia 22314.
Email: Send comments to [email protected]. Include
Docket ID Number FNS-2018-0043, ``SNAP: Non-Discretionary QC provisions
of Title IV of PL 115-334'' in the subject line of the message.
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: Stephanie Proska, Food and Nutrition
Service, 1320 Braddock Place, 5th Floor; Alexandria, Virginia 22314,
[email protected].
SUPPLEMENTARY INFORMATION:
Background
Pursuant to Section 16 of the Food and Nutrition Act of 2008, as
amended (FNA), each State agency is responsible for monitoring and
improving its administration of SNAP and providing information from the
SNAP quality control (QC) system. For QC reviews, States conduct
monthly reviews of a statistically representative sample of households
participating in SNAP (active cases) and households for whom
participation was denied, terminated, or suspended (negative cases).
These reviews measure the accuracy of SNAP eligibility and benefit
determinations and ultimately serve as the basis for the SNAP payment
error rate (PER), as defined in Section 16(c)(2)(A) of the FNA, and
case and procedural error rate (CAPER),\1\ respectively. The results of
[[Page 44576]]
these reviews provide States with feedback on the State's
administration of the program, including how their chosen policy
options, waivers, and business processes affect the accuracy of their
eligibility determinations.
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\1\ In fiscal year 2012, the procedures for reviewing cases in
the negative frame, discussed later, changed to include the State's
procedural processes in determining a negative case's validity. FNS
has referred to the negative error rate since then as the case and
procedural error rate, or CAPER, to reflect this change.
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SNAP QC has four goals, identified at 7 CFR 275.10(b), which are to
provide: (1) A systematic method of measuring the accuracy of the SNAP
eligibility caseload; (2) a basis for determining all SNAP error rates;
(3) a timely, continuous flow of information on which to base
corrective action at all levels of administration; and (4) a basis for
establishing State agency liability for errors that exceed the National
performance measure pursuant to Section 16(c)(1)(C) of the FNA.
Every Federal fiscal year (October through September), State
agencies conduct QC reviews for two different sampling frames--the
active sampling frame and the negative sampling frame. For the active
frame, States review a sample of their overall participating SNAP
households (those receiving SNAP benefits). This QC review consists of
a detailed examination of household non-financial and financial
circumstances including income, resources, and deductions to determine
whether benefits were accurately authorized by State eligibility
offices for cases in the active frame. For the negative frame,
reviewers review a statistical sample of cases that were denied,
suspended, or terminated to determine not only their accuracy, but also
if the State agency followed the correct procedures according to SNAP
regulations.
After State agencies submit their completed QC reviews to the
Federal government, Federal staff select and review a sub-sample of
cases from the active and negative frames to verify the accuracy of the
States' QC review findings. A regression analysis is then performed
utilizing both the Federal and State data to calculate national and
State error rates. FNS also uses the data gathered through the QC
review process for program analysis.
Beginning in calendar year 2015, FNS conducted integrity reviews of
all 53 SNAP State agencies nationwide and USDA's Office of Inspector
General (OIG) conducted an audit on the SNAP QC review process.\2\ The
integrity reviews and the OIG audit found there were integrity issues
with the data submitted by State agencies. In short, the majority of
States (42 of 53) were underreporting QC errors in the active frame. In
response to these findings, FNS undertook significant measures,
explained in more detail later in this preamble, to improve training
and strengthen controls over the QC process. In some cases, the
Department of Justice (DOJ) entered into settlement agreements with
States for the underreporting of SNAP QC errors in violation of Federal
law.
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\2\ https://www.usda.gov/oig/webdocs/27601-0002-41.pdf.
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On December 20, 2018, the President signed into law the Agriculture
Improvement Act of 2018 (2018 Farm Bill). Section 4013 of the 2018 Farm
Bill included requirements to reform the SNAP QC system in order to
further improve the integrity of the system and accuracy of the data it
produces. These requirements build upon the Departmental and DOJ
actions taken to address integrity concerns raised by FNS and OIG
reviews.
The 2018 Farm Bill included changes in three sections of the
legislation that required SNAP to update its regulations accordingly.
Section 4013(a) of the 2018 Farm Bill requires ``All [State SNAP]
records, and the entire information systems in which records are
contained . . .'' be made available for inspection and audit by the
Secretary. Section 4013(b) of the 2018 Farm Bill required the
Department issue an interim final rule that: (1) Ensures the QC system
produces valid statistical results; (2) provides for the oversight of
contracts entered into by a State to improve payment accuracy; (3)
ensures the accuracy of data collected in the QC system; and (4)
provides for the evaluation of the integrity of the QC process for a
minimum of 2 State agencies per fiscal year, to the maximum extent
practicable. The regulations within this rule reflect those
requirements.
Good Cause Analysis
Pursuant to the Administrative Procedure Act (APA), notice and
comment are not required prior to the issuance of a rule if an agency,
for good cause, finds that ``notice and public procedure thereon are
impracticable, unnecessary, or contrary to the public interest.'' (5
U.S.C. 553(b)(B)). USDA recognizes that courts have held that the good
cause exception to notice and comment rulemaking is to be narrowly
construed and only reluctantly countenanced.
As a result of the statutory requirement for the Department to
promulgate an interim final rule addressing these issues, the
Department finds for good cause that notice and public comment is
unnecessary and contrary to the public interest for this rule. This
interim final rule and the regulatory amendments described below
address provisions of Sections 4013(a), as well as Section 4013(b) of
the 2018 Farm Bill that USDA was directed by Congress to promulgate via
interim final rule.
Subpart A--Administration
Use of Third-Party Contractors
Upholding the integrity of the QC system is critical to the
Department's responsibility for improper payment reporting and proper
stewardship of taxpayer funds. Evaluation of the SNAP caseload and the
benefits issued must be reliable in order to accurately measure SNAP
payment errors. In their respective reviews, FNS, OIG, and DOJ found
that a majority of States used third-party contractors at various times
over the preceding 10 years to provide regulatory and policy advice on
how to conduct SNAP QC reviews in their State. It was also found that
States following the advice of contractors often underreported errors
in active QC case reviews. Advice that contributed to the
underreporting of errors included training State QC reviewers to
document cases inappropriately, organizing committees that focused on
developing methods to mitigate errors and underreport existing payment
errors to FNS, and withholding information or disposing of cases
contrary to SNAP regulations and established policy.
On January 20, 2016, FNS issued a policy memorandum \3\ on the use
of third-party contractors for QC purposes to address these issues. FNS
issued this memorandum based the understanding that it is within the
agency's regulatory authority to clarify policy. While the memorandum
provided timely and clear guidance to States in response to a critical
integrity issue, this interim final rule will ensure that the
expectations are explicit. The memorandum clarified the appropriate use
of contractors in the QC process and established procedures regarding
the use of contractors to help ensure that activities performed under
the contract are in accordance with Federal regulations and policies.
The memorandum required a State to notify FNS of its intent to enter
into a contract for the purposes of training State QC reviewers on SNAP
regulations, policies, or manuals to improve payment accuracy, and to
provide a copy of its contract and all deliverables to FNS. The
memorandum emphasized that any activities or deliverables not complying
with Federal regulations and policy would not be eligible for Federal
reimbursement, as provided by Section
[[Page 44577]]
16(a) of the FNA, which authorizes the Secretary of Agriculture to pay
each State agency 50 percent of all administrative costs involved in
each State agency's operation of SNAP. The memorandum also stipulated
that FNS be allowed attend any training sessions or meetings that
discussed individual QC cases and required that the State document any
discussions about individually sampled cases within the QC record for
subsequent review and auditing purposes.
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\3\ https://www.fns.usda.gov/snap/integrity-snap-quality-control-system.
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Subsequent to the issuance of this guidance, the 2018 Farm Bill
directed the Department to issue interim final regulations to provide
for the oversight of contracts entered into by a State agency for the
purpose of improving payment accuracy. As a result, the Department is
codifying at Sec. 275.2(c) the requirements on the oversight of
contracts previously set forth by FNS in the 2016 policy memorandum.
This paragraph at Sec. 275.2(c) will also codify the 2018 Farm Bill
requirement at Section 4013(b) that any person who knowingly submits,
or causes submittal of, false information in carrying out the QC system
be debarred in accordance with procedures outlined in 2 CFR part 417.
This particular provision regarding debarment, codified through this
interim final rule, was self-executing upon enactment of the 2018 Farm
Bill.
These provisions associated with third party contractors under 7
CFR 275.2(c)(1) will be effective upon OMB's approval of the
information collection associated with this activity.
State Systems Access
Section 4013(a) of the 2018 Farm Bill required that all State
agency records and the systems in which those records are contained be
made available to the Department for QC purposes. To ensure the
accuracy of data collected in SNAP QC and to allow for independent
oversight of program administration, FNS must have access to State
agency records and the systems in which those records are contained;
this includes remote access. While mandatory FNS access to State
computer systems for QC purposes has existed since the current QC
system was implemented, it is necessary to specifically include remote
access in this requirement to ensure Federal staff has the tools
necessary to conduct thorough QC re-reviews from their duty stations.
While some State agencies have already provided remote access to their
systems, it has been difficult to gain access in some states due to
technological and security challenges. These challenges include issues
concerning equipment and firewalls as well as the fact that some State
systems do not include a user role that allows access only to SNAP
information.\4\ A new paragraph at Sec. 275.2(d) will require FNS have
access, including remote access, to all State agency records and
systems in which those records are contained. The Department believes
this provision will enable State agencies to make the necessary changes
to allow remote access to State computer systems for SNAP QC purposes,
and therefore help ensure the accuracy of the collected data through
the QC system. FNS will continue to work with States collaboratively to
establish data sharing and system integrity agreements to facilitate
the required systems access. This provision is effective upon
publication of this rule.
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\4\ State systems contain information on participants in a
multitude of different programs, each of which can have (as some
currently do) statutory and regulatory language prohibiting the
disclosure of such information outside of said program. As such, the
State systems must be able to limit user access to SNAP information
only before sharing the system with FNS for SNAP QC purposes to
ensure compliance with federal law.
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Federal Monitoring--Reviews of State Agency's Quality Control System
The 2018 Farm Bill further requires FNS to ensure that the
integrity of the QC system is reviewed in at least two State agencies
per fiscal year to the maximum extent practicable. As a result, the
Department is adding a new paragraph at Sec. 275.3(c) to use the
existing management evaluation process to provide for the review of at
least two State agency QC systems per year. The paragraphs currently
located at Sec. 275.3(c) and (d) are being appropriately re-designated
as Sec. 275.3(d) and (e), respectively. This provision is effective
upon publication of this rule.
Social Security Administration (SSA) Processed Cases
This rule will also ensure statistically valid results and improve
the accuracy of QC data collected by State agencies by requiring that
cases processed by the Social Security Administration (SSA) are
included in the error rate. Currently, SSA processes applications for
around 50,000 SNAP cases a year. Less than one-tenth of a percent of
cases sampled for QC review are processed by SSA. Current regulations
require SNAP cases that are processed by SSA to be reviewed according
to standard procedures; longstanding FNS policy exempts these cases
from inclusion in the error rates. SNAP regulations at 273.2(k)(l)
provide two options for SSA involvement in the certification process
for SNAP beneficiaries, which are designed to simplify the SNAP
application process for households applying for and receiving
Supplemental Security Income. The first option is for the SSA office
itself to complete and forward applications to the local SNAP office,
and the second is for the local SNAP agency to outstation a worker at
the SSA office. Both processes require the SNAP agency to make the
final determination on the application, meaning that even when SSA
participates in completing the application, the State agency must
clarify unclear information and ensure the benefit determination and
allotment amount are correct. Since the SNAP agency is responsible for
finalizing and processing applications received at SSA offices,
including these cases in the error rate would ensure this population of
households is part of the improper payment measurement. This would
improve the accuracy of QC data collection and reporting methods. FNS
believes that excluding these cases from the error rate is inconsistent
with current Federal improper payment requirements and intends to
correct this inconsistency by requiring SSA processed cases be included
in the SNAP error rate. For these reasons, the Department is amending
the following sections in 7 CFR to clarify that SSA processed cases
shall be treated in the same manner as other SNAP cases for QC
purposes: newly redesignated 275.11(g); and 275.12(h), 275.13(f),
275.21(d), and 275.23(b)(1). This provision is effective upon
publication of this rule.
Record Retention
To further ensure the accuracy of QC data collected by State
agencies, this interim final rule will also provide more detail on what
records must be retained for QC case files. Past QC integrity
management evaluation reviews conducted by FNS found that many State
agencies misunderstood SNAP QC record retention requirements, including
the essential document types that must be reported and retained. In
addition to these FNS reviews, the OIG audit of the QC error rate
process and the FNS completion rate study \5\ each discovered
intentional and unintentional instances of State agencies leaving
documentary evidence out of the case file. As a result, Federal QC
reviewers had insufficient information to review such cases and
determine whether the information used
[[Page 44578]]
in the State case determinations was accurate. When State agencies do
not properly retain such documentary records, FNS cannot adequately
confirm data accuracy and integrity.
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\5\ On January 11, 2016, FNS published a study, Enhancing SNAP
Quality Control Completion Rates, that examined the factors
contributing to incomplete reviews of cases and described best
practices associated with high SNAP QC completion rates.
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The Department has concluded that the existing regulations lack
sufficient specificity for States to determine which QC-related records
must be maintained for the required duration of three years post fiscal
closure, which is when the error rate is issued for most States; for
States in liability status, three years post fiscal closure begins on
the date the State fulfills all requirements to close its liability. In
an effort to strengthen the understanding of which records States must
maintain and to increase the integrity of the QC system and quality of
data, the Department is amending the regulatory language at Sec.
275.4(c) to provide more comprehensive detail, including specifying
that all correspondence with the household and all case notes, digital
or otherwise, be included in the QC case file, among other
requirements. This will help ensure the accuracy of QC data collected
by State agencies. This provision is effective upon publication of this
rule.
Subpart F--Responsibilities for Reporting on Program Performance
Quality Control Review Reports--Individual Cases
In the course of conducting a QC review, FNS requires State
agencies to accurately record, document, summarize, and code household
circumstances, which includes completing the review forms associated
with active and negative QC reviews, to ensure the accuracy of the data
collected. Current regulations at Sec. 275.21(b) require States to
submit ``edited'' findings for both Form FNS-380-1 and Form FNS-245.
When these QC rules were originally written, the ``edits'' were related
to the capability of computer systems to communicate with one another.
Until computers were able to communicate more directly, without a dial
up connection, it was common practice for States to review the files
uploaded to FNS to ensure the data they submitted was consistent with
data received on the other end. When the received data did not match
what was sent, the State had to ``edit'' those mismatched fields to
ensure the data was accurate.
As computer technology has dramatically improved since this
provision was written and communication errors are now the exception
rather than the norm, it is necessary to remove this reference to
``edited'' data to ensure FNS is clear that States are expected to
submit thorough and final versions of the required QC forms to FNS.
FNS, OIG and DOJ found that, in some cases, States interpreted
Sec. 275.21(b) to allow significant editing of the facts of cases
under review before submission to FNS and used that interpretation to
misrepresent cases that contained payment errors and to artificially
lower the reported State error rate. Since ``editing'' findings is an
integrity concern and the original intent is no longer of concern due
to advancements in technology, the Department is amending the language
in Sec. 275.21(b) by removing the term, ``edited'' from regulatory
text to better ensure the accuracy of the data collected. FNS will
continue to provide a process for States to correct typos and data
entry errors in their submissions. This provision is effective upon
publication of this rule.
In addition, the regulation at Sec. 275.21(b) does not currently
require States to include Form FNS-380, Worksheet for QC reviews, upon
submission of QC cases to FNS. Currently, States are required to use
the Form FNS-380 to record their notes and observations over the course
of completing their review, but are only required to submit the form in
the event that a case is selected for Federal sub-sample. Requiring the
Form FNS-380 be submitted for all cases, regardless of whether the case
was included in the Federal sub-sample, will provide greater
information about SNAP households to FNS for program analysis purposes
and improve the consistency of documentation across cases by ensuring
States submit all pertinent information before knowing a case has been
selected for Federal review. The Department believes requiring that the
form be thoroughly documented and submitted will enable case reviewers
to fully understand the circumstances of the case, final finding, and
disposition, and the quality of the State QC reviewers' submitted
reviews will be improved. These changes will help to ensure more
statistically valid results and will help to ensure the accuracy of QC
data collected. As a result, Sec. 275.21(b) is modified accordingly.
This provision is effective upon publication of this rule.
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. The Department has developed this rule in accordance with
these orders.
Executive Order 12866 provides that the Office of Information and
Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB)
will review all significant rules. OIRA has determined that this
interim final rule is significant and was accordingly reviewed by the
Office of Management and Budget (OMB).
Regulatory Impact Analysis
A regulatory impact analysis (RIA) must be prepared for major rules
with economically significant effects ($100 million or more in any one
year). USDA does not anticipate this interim final rule is likely to
have an economic impact of $100 million or more in any one year, and
therefore, does not meet the definition of ``economically significant''
under Executive Order 12866.
The provisions in this rule are not anticipated to have any impacts
on SNAP participation or benefit issuance (transfers) and most are not
expected to have measurable impacts on State Agencies or the Federal
Government. For example, the cost estimate for the burden associated
with the new reporting provisions do not exceed a total of $110
combined for all State agencies per year. The interim final provisions
implement statutory changes included in the 2018 Farm Bill; most of
these statutory changes reflect policies and practices that are already
in place and thus are not a substantive change from current practice.
For example, requiring access to State computer systems for QC purposes
is existing policy that has been in place since the current QC system
was implemented. While this interim final regulation would clarify that
FNS must have remote access to State computer systems, this requirement
is expected to have minimal impact on State administrative expenses.
Currently 21 States already provide remote access to their systems. In
17 of these States there was no cost associated with allowing FNS
access (other than Federal staff time to resolve firewall issues). In
the remaining 4 States there was a small cost for enabling remote
access ($200 for licensing in one State and $3000 for a dedicated
laptop used to access all 3 of the other States, or an average of $800
[[Page 44579]]
per State). At $800 per State, the remote access requirement is
expected to result in one-time costs of about $25,600 for the remaining
32 States.
Similarly, existing policy requires a State to notify FNS of its
intent to enter into a contract for the purposes of training State QC
Reviewers (SQCRs), to provide a copy of its contract and all
deliverables to FNS, and any contractor activities or deliverables not
complying with Federal regulations and policy are not eligible for
Federal reimbursement. Current policy also requires that the State
document any discussions about individually sampled cases within the QC
record for subsequent review and auditing purposes.
In addition to codifying the existing requirement to document
discussion about individually sampled cases, this rule places
additional requirements if the State discusses individual sampled cases
with a contractor. If the discussion occurs orally, FNS must be given
notice 24 hours in advance of the discussion and must be allowed to
participate in the discussion. If the discussion occurs in writing, the
State must ensure that FNS is copied on all written correspondence
discussing individual sampled cases. FNS estimates this new
notification requirement will affect 5 State agency respondents once
per year.
Costs:
The Department anticipates minimal costs associated with this rule.
As noted above, the rule provisions primarily implement activities that
are current policies and practice.
FNS does anticipate a small increase in reporting burden for State
agencies associated with the requirement that States notify FNS in
advance or copy FNS on written correspondence when the State discusses
individual sampled cases with a contractor. As described in the
Paperwork Reduction Act section of this rule, FNS anticipates that 5
States will be required to submit such notification once per year, for
an additional 0.4 hours in reporting burden annually. Because FNS has
already addressed situations where States used contractors improperly,
we expect States to discuss individual cases with contractors only on
rare occasions.
No additional Federal costs are anticipated; any staff time devoted
to these activities will be part of the normal duties of Federal staff.
Benefits:
The Department anticipates that these interim final provisions will
improve Federal oversight of State QC systems and improve the integrity
of State-reported QC data used to determine SNAP error rates.
Transfers:
The Department does not anticipate any changes in transfers
associated with this rule.
Alternatives:
The 2018 Farm Bill required that the Department implement specific
changes to current QC operations and eliminated performance bonus
payments to States. Therefore, no alternatives were considered.
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. Rules that are exempt from notice
and comment are also exempt from the Regulatory Flexibility Act
requirements, including conducting a regulatory flexibility analysis,
when among other things the agency for good cause finds that notice and
public procedure are impracticable, unnecessary, and contrary to the
public interest.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as `not major', as defined by 5 U.S.C. 804(2).
Executive Order 12372
SNAP is listed in the Catalog of Federal Domestic Assistance under
Number 10.551. For the reasons set forth in the Final Rule codified in
7 CFR part 3015, subpart V and the related Notice (48 FR 29115), this
Program is excluded from the scope of Executive Order 12372, which
requires intergovernmental consultation with State and local officials.
Federalism Summary Impact Statement
Executive Order 13132 requires Federal agencies to consider the
impact of their regulatory actions on State and local governments.
Where such actions have federalism implications, agencies are directed
to provide a statement for inclusion in the preamble to the regulations
describing the agency's considerations in terms of the three categories
called for under Section (6)(b)(2)(B) of Executive Order 13121.
The Department has considered the impact of this interim 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 the interim final rule, in accordance with the
Department Regulation 4300-004, Civil Rights Impact Analysis, to
identify and address any major civil rights impacts the interim final
rule might have on minorities, women, and persons with disabilities. A
comprehensive Civil Rights Impact Analysis (CRIA) was conducted on the
interim final rule, including an analysis of data and provisions
contained in the interim final rule. The CRIA outlines outreach and
mitigation strategies to lessen any possible civil rights impacts. The
CRIA concludes the interim final rule will impact State agencies by
including cases processed by SSA in the error rate determination;
however, this will not change the rate at which these households are
selected for review. The Department finds that the implementation of
mitigation strategies and monitoring by the FNS Civil Rights Division
and FNS SNAP may lessen any impacts. SNAP has procedures in place to
provide special accommodations for the QC review should elderly persons
and individuals with disabilities request accommodation. These
accommodations are described at 7 CFR 275.12(c)(1), which provides that
if there is a hardship to the household in attending the QC interview,
the reviewer must interview the household's authorized representative
if they have one or go to the household's home. Additionally, FNS SNAP
will continue to work with State agencies to ensure they are aware of
their responsibility to provide special accommodation for the elderly
and disabled persons during QC reviews. If necessary, the FNS Civil
Rights Division will propose further mitigation and outreach strategies
to alleviate impacts that may result from the implementation of the
interim final rule.
[[Page 44580]]
Executive Order 13175
Executive Order 13175 requires Federal agencies to consult and
coordinate with Tribes on a government-to-government basis on policies
that have Tribal implications, including regulations, legislative
comments, or proposed legislation. Additionally, other policy
statements or actions that have substantial direct effects on one or
more Indian Tribes, the relationship between the Federal Government and
Indian Tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes also require
consultation. This regulation discloses there are no tribal
implications associated with this rule. FNS attended a tribal
consultation meeting on May 1, 2019, in Washington, DC where the
changes to this rule were explained. No questions or concerns were
brought to FNS's attention about this rule by any tribal leaders at the
meeting. If a tribe requests consultation in the future, FNS will work
with the Office of Tribal Relations to ensure meaningful consultation
is provided.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; see 5 CFR
1320), requires that the Office of Management and Budget (OMB) approve
all collections of information by a Federal agency from the public
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 for public comment the changes in the information
collection burden that would result from adoption of the proposals in
the rule. The agency is seeking a three-year renewal date for both OMB
control numbers. Once OMB approves these burden requirements associated
with OMB Control Numbers: 0584-0074 and 0584-0303, the agency plans to
publish separate notices in the Federal Register announcing OMB's
approval.
We are revising two existing burden inventories for this
rulemaking. The current burden inventories affected are Worksheet for
the Supplemental Nutrition Assistance Program Quality Control Reviews
(FNS-380) OMB Control Number: 0584-0074, expiration date 04/30/2023 and
Supplemental Nutrition Assistance Program 275 QC Regulations OMB
Control Number: 0584-0303, expiration date 1/31/2024 respectively.
These changes are contingent upon OMB approval under the Paperwork
Reduction Act of 1995 and as such are including two 60 day notices for
comment on the affected collections.
Comments on both the information collections in this interim final
rule must be received by October 12, 2021.
Send comments to the Office of Information and Regulatory Affairs,
OMB, Attention: Desk Officer for FNS, Washington, DC 20503, Fax 202-
395-7285, or email to [email protected]. Please also send a
copy of your comments to any of the following: via mail to Stephanie
Proska, Branch Chief, Quality Control Branch, Program Accountability
and Administration Division, 1320 Braddock Place, 5th Floor;
Alexandria, Virginia 22314; via fax to the attention of Stephanie
Proska at 703-305-0928; or via email to [email protected].
Comments will also be accepted through the Federal eRulemaking Portal.
Go to http://www.regulations.gov, and follow the online instructions
for submitting comments electronically. All responses to this notice
will be summarized and included in the request for Office of Management
and Budget approval. All comments will be a matter of public record.
For further information, or for copies of the information collection
requirements, please contact Stephanie Proska at the address indicated
above or email [email protected].
Comments are invited on: (1) Whether the proposed collection of
information is necessary for the proper performance of the Agency's
functions, including whether the information will have practical
utility; (2) the accuracy of the Agency's estimate of the proposed
information collection burden, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility and clarity of the information to be collected; and (4) 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 these requests for comment will be summarized and
included in the request for OMB approval. All comments will also become
a matter of public record.
Title: Worksheet for the Supplemental Nutrition Assistance
Program's Quality Control Reviews.
Form Number: FNS 380.
OMB Control Number: 0584-0074.
Expiration Date: April 30, 2023.
Type of Request: Revision of a currently approved collection due to
rulemaking.
Abstract: Section 16 of the Food and Nutrition Act of 2008 provides
the legislative basis for the operation of the Quality Control (QC)
system. Part 275, Subpart C, of SNAP regulations implements the
legislative mandates found in Section 16. Regulations at 7 CFR 275.1,
275.14(d) and 275.21(a) and (b)(1) provide the regulatory basis for the
QC reporting requirements.
Section 11(a) of the Food and Nutrition Act of 2008 provides the
legislative basis for the recordkeeping requirements. SNAP regulations,
at 7 CFR 272.1(f), specify that program records must be retained for
three years from the month of origin. Regulations at 7 CFR 275.4
specifically address record retention requirements for form FNS-380.
Form FNS-380, is a SNAP worksheet used to determine eligibility and
benefits for households selected for review in the QC sample of active
SNAP cases. This form provides a systematic means of aiding the State's
Quality Control Reviewer in analyzing the case record, planning and
doing field investigation and gathering, comparing, analyzing and
evaluating data.
Due to this interim-final rulemaking, the FNS 380 form must include
a new State agency respondent burden for a new requirement at 7 CFR
275.2(c)(1)(v). The Department will require that if the State discusses
individual sampled cases with a contractor, the State must document,
within the case file, the contents of the discussion and any action
taken by the State as a result of the discussion. If the discussion
occurs orally, FNS must be given notice 24 hours in advance of the
discussion and must be allowed to participate in the discussion. If the
discussion occurs in writing, the State must ensure that FNS is copied
on all written correspondence discussing individual sampled cases. FNS
estimates this new notification requirement will affect 5 State agency
respondents at least one time per year for a total burden of 5 minutes
(0.0835 hour) per response, estimating an additional 25 minutes (0.40
hour) to the current information collection. No additional
recordkeeping requirements are necessary.
We estimate the total reporting burden for the collection of
information to support SNAP QC as 405,995.67 hours. This includes
approximately 8.48 hours for State Agencies to analyze each household
case record including planning and carrying out the field
investigation; gathering, comparing,
[[Page 44581]]
analyzing and evaluating the review data and forwarding selected cases
to the Food and Nutrition Service for Federal validation, totaling
approximately 382,173.44 hours for the entire caseload. We also include
an average interview burden of 30 minutes (0.5 hours) for each
household, creating a reporting burden for them for 22,748.50 hours.
The total reporting burden for the affected public is 404,921.94 hours.
Additionally, we estimate the recordkeeping burden per record for the
State Agencies to be 1.4 minutes (0.0236 hours), thereby making the
recordkeeping burden associated with this information collection to be
1,073.73 hours. There is no recordkeeping requirement for households.
The total estimated reporting and recordkeeping burden for this
collection is 405,995.67 hours.
Reporting Burden Annual Estimates for OMB Control Number 0584-0074
Affected Public: State, Local and Tribal Government and Individuals
and Households.
Estimated Number of Respondents: 45,550 (53 State Agencies and
45,497 Individuals/households).
Estimated Number of Responses per Respondent: 4,293.24 (4,292.24
for State agencies and 1 per individual/household).
Estimated Total Annual Responses: 272,985.95 (227,488.95 for State
agencies and 45,497 from individuals and households).
Estimated Time per Response: 8.98 hours (8.48 hours for State
agencies and .5 hour for individuals and households).
Estimated Total Burden Response Hours: 404,921.94 (382,173.44 from
State agencies and 22,748.50 from individuals/households).
Recordkeeping Burden Annual Estimates for OMB Control Number 0584-0074
Number of Record Keepers: 53.
Number of Records per Record Keeper: 858.43 Records.
Estimated Number of Records/Response to Keep: 45,497 Records.
Recordkeeping time per Response: .0236 hours.
Total Estimated Recordkeeping Burden Hours: 1,073.73 hours.
Estimated Total Annual Reporting and Recordkeeping Burden on
Respondents: 405,995 hours.
This information collection request associated with OMB Control
Number: 0584-0074 reflects a difference of +0.40 hour due to program
changes for rulemaking.
[[Page 44582]]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revised number Revised
Description of Estimated Estimated Revised total of burden estimated Previous Difference due Difference due
Reg. section Affected public activity number of responses per annual hours per total burden submission to program to adjustments
respondents respondent responses response hours total hours changes
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Reporting Burden for State Agencies FNS 380, OMB 0584-0074
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
275.2(c)(1)(v).......... SA................ Notification to 5 1 5 0.08 0.4 n/a 0.40 n/a
discuss
individual cases.
275.12 (b).............. SA................ Household Case 53 858.43 45,496.79 3 136,490.37 136,490.37 0.00 0.00
Record Review.
275.12 (c).............. SA................ Field 53 858.43 45,496.79 3.5 159,238.77 159,238.77 0.00 0.00
investigation.
275.12 (c)(1)........... SA................ Personal 53 858.43 45,496.79 0.5 22,748.40 22,748.40 0.00 0.00
interviews.
275.12 (b).............. SA................ Variance 53 858.43 45,496.79 0.9 40,947.11 40,947.11 0.00 0.00
identification.
275.12 (b).............. SA................ Error analysis.... 53 858.43 45,496.79 0.5 22,748.40 22,748.40 0.00 0.00
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
State Agencies (SA) Reporting Burden--Subtotals.............
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
53...................... 4,292.24.......... 227,488.95........ 8.48 382,173.44 382,173.04 0.40 0.00
Reporting Burden for Individuals/Households FNS 380, OMB 0584-0074
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
275.12 (c)(1)........... Individual/ Personal 45,497 1 45,497 0.5 22,748.50 22,748.50 0.00 0.00
Households. interviews.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Individuals/Households (I/H) Reporting Burden--Subtotals....
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
45,497.................. 1................. 45,497............ 0.5 22,748.50 22,748.50 0.00 0.00
Grand Totals 45,550.00......... 4,293.24.......... 272,985.95 8.98 404,921.94 404,921.54 0.40 0.00
Reporting
Burden.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping Burden for State Agencies FNS 380, OMB 0584-0074
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revised number Revised
Description of Estimated Estimated Revised total of burden estimated Previous Difference due Difference due
Reg. section Affected public activity number of responses per annual hours per total burden submission to program to adjustments
respondents respondent responses response hours total hours changes
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
275.4................... State Agencies.... Record Retention.. 53 858.43 45,497 0.0236 1,073.73 1,073.73 0.00 0.00
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Overall Grand Total Reporting SA & I/H and Recordkeeping for
SA.
45,550.00............... 6.99.............. 318,482.95........ 9.00 405,995.67 405,995.27 0.40 0.00
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 44583]]
* * * * *
Action: 60 day Notice.
Summary: In accordance with the Paperwork Reduction Act of 1995,
this notice invites the general public and other public agencies to
comment on this information collection in this interim final rule. This
collection is a revision of a currently approved information collection
request.
Dates: Written comments must be received on or before October 12,
2021.
Send Comments to: The Office of Information and Regulatory Affairs,
OMB, Attention: Desk Officer for FNS, Washington, DC 20503, Fax 202-
395-7285, or email to [email protected]. Please also send a
copy of your comments to one of the following: via mail to Stephanie
Proska, Branch Chief, Quality Control Branch, Program Accountability
and Administration Division, 1320 Braddock Place, 5th Floor;
Alexandria, Virginia 22314; via fax to the attention of Stephanie
Proska at 703-305-0928; or via email to [email protected].
Comments will also be accepted through the Federal eRulemaking Portal.
Go to http://www.regulations.gov, and follow the online instructions
for submitting comments electronically. All responses to this notice
will be summarized and included in the request for Office of Management
and Budget approval. All comments will be a matter of public record.
For further information, or for copies of the information collection
requirements, please contact Stephanie Proska at the address indicated
above or email [email protected].
Supplementary Information
Comments are invited on: (1) 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; (2) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions that were used; (3) ways to enhance the
quality, utility, and clarity of the information to be collected; and
(4) 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.
Title: Supplemental Nutrition Assistance Program (SNAP).
Form Number: FNS 74 A and FNS 74B.
OMB Number: 0584-0303.
Expiration Date: January 31, 2024.
Type of Request: Revision of a currently approved collection.
Abstract: Section 16 of the Food and Nutrition Act of 2008, as
amended, provides the legislative basis for the operation of the SNAP
QC system. Part 275, Subpart C, of SNAP regulations implements the
legislative mandates found in Section 16. Section 11(d) of the Food and
Nutrition Act of 2008, as amended (the Act), requires each State agency
administering SNAP to submit a plan of operation specifying the manner
in which the program is conducted and Section 11(e) of the Act
authorizes the inclusion of other provisions as required by regulation.
In Part 275, due to this interim final rulemaking there will now be
five components of the Quality Control (QC) system that are covered in
this required information collection. They are: (1) The sampling plan;
(2) Third party contractors (new requirement); (3) the arbitration
process; (4) the good cause process; and (5) QC-related New
Investments.
Each State agency is required to develop a sampling plan that
demonstrates the integrity of its case selection process. The QC system
is designed to measure each State agency's payment error rate and case
and procedural error rate based on a statistically valid sample of SNAP
cases. A State agency's payment error rate represents the proportion of
cases that were reported through a QC review as being ineligible, as
well as the proportion of SNAP benefits that were either overissued or
under-issued to SNAP households. A State agency's case and procedural
error rate represents the correctness of a proportion of cases that
were measured in a QC review in which the State agency took an action
to deny an application or suspend or terminate the benefits of a
participating household. It also includes the accuracy of measuring a
State's compliance with Federal procedural requirements for those
actions, which include the timeliness of the action and adherence to
notice requirements.
Due to this interim-final rulemaking, the QC system will require
States to notify FNS about its intent to hire third party contractors
for QC purposes, send FNS the signed contracts that are awarded, send
FNS information on the third party contractor's completed deliverables
to FNS, and notify FNS of training sessions that will be hosted by 3rd
party contractors in the event the State agency intends to request
federal reimbursement for administrative expenses associated with the
third party contract.
The QC system also contains procedures for resolving differences in
review findings between State Agencies and FNS. This is referred to as
the arbitration process. As part of the arbitration process, State
agencies must defend, in writing, their disagreement with the Federal
re-reviewer's finding or disposition of a case and submit their defense
to the arbitrator for a decision to be made on their disagreement. Due
to this interim-final rulemaking, the regulatory reference is being
updated to the revised designation of 7 CFR 275.2(d)(4).
The QC system also contains procedures that provide relief for
State agencies from all or a part of a QC liability when a State agency
can demonstrate that a part or all of an excessive error rate was due
to an unusual event that had an uncontrollable impact on the State
agency's payment error rate. This is referred to as the good cause
process.
Finally, when a State agency is unable to demonstrate that a part
or all of an excessive error rate was due to an unusual event that had
an uncontrollable impact on the State agency's payment error rate and
chooses to settle with FNS by investing fifty percent of their total QC
liability using new State agency funds into the SNAP program to target
the root causes of their errors, the State agency must submit a new
investment plan and, after approval, new investment progress reports
every six months until the plan is complete.
Note: The ability for a State agency to settle its error rate
related liability is described in Section 16(c) of the Food and
Nutrition Act of 2008, as amended.
Burden for the QC system includes reporting and recordkeeping
burden for State agencies to create a QC sampling plan, notify and
submit the required information regarding the use of third party
contractors to FNS, and participate in the arbitration, good cause, new
investment plan and new investment progress report processes.
The requested extension of unchanged estimates and revisions for
the reporting burdens due to new requirements for each component are as
follows: (1) The estimated annual reporting burden associated with the
QC sampling plan is 1,060 hours, no change from the current collection;
(2) the four new annual collection estimates for reporting burden
associated with the notifications and submissions activities of third
party contractors combined estimates is 3.99 hours; (3) the estimated
annual reporting burden associated with arbitration is 1,224 hours, no
change from the current collection; (4) The estimated annual reporting
burden associated with the good cause process
[[Page 44584]]
is 160 hours, no change from the current collection; (5) The estimated
annual reporting burden associated with the new investment plan is 288
hours, no change from the current collection-no 74A form changes
either; and finally (6) The estimated annual reporting burden
associated with the new investment progress report is 90 hours, no
change from the current collection-no 74B form changes, either.
We are requesting 2,825.99 estimate annual reporting burden hours.
This total includes the current estimate for this requested total
estimated reporting burden for the QC system is 2,822.00, plus an
increase of 3.99 hours due to program changes for this rulemaking.
The requested annual recordkeeping burden associated with the QC
sampling plan remains at 1.25 hours per year. No recordkeeping is
required for the third party contractor provisions, since states have
their own rules for recordkeeping State contracts. The annual
recordkeeping burden associated with arbitration is 0.8496 and the good
cause process burden is 0.0236 hour, both remain the same as the
current collection. The estimated recordkeeping burden for the QC-
related new investment plans remains at 0.0214 hours and the estimated
recordkeeping burden for the QC-related new investment progress reports
remains at 0.4248 hours.
The burden for recordkeeping has remained at 2.7612 hours. As a
result, the overall annual reporting and recordkeeping burden for the
QC system, as proposed by this notice, increased from 2135.76 hours to
2,828.75 hours due to the interim-final rule provisions adding
reporting requirements related to State agency use of third party
contractors.
Affected Public: 53 State, Local and Tribal Government.
Reporting Burden Annual Estimates for OMB Control Number 0584-0303
Affected Public: State, Local and Tribal Government.
Estimated Number of Respondents: 53 State Agencies.
Estimated Number of Responses per Respondent: 2.4339.
Estimated Total Annual Responses: 129.
Estimated Time per Response: 21.906899 hours.
Estimated Total Burden Hours: 2,825.99 hours.
Recordkeeping Burden Annual Estimates for OMB Control Number 0584-0303
Number of Record Keepers: 53.
Number of Records per Record Keeper: 117 Records.
Estimated Number of Records/Response to Keep: 2.2075 Records.
Recordkeeping Time per Response: 0.118 hours.
Total Estimated Recordkeeping Burden Hours: 2.7612 hours.
Estimated Total Annual Reporting and Recordkeeping Burden on
Respondents: 2,828.75 hours.
This information collection request associated with OMB Control
Number: 0584-0303 reflects an increase of 3.99 hours due to program
changes for rulemaking.
[[Page 44585]]
275 Regs Reporting OMB 0584-0303
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revised number Revised
Description of Estimated Estimated Revised total of burden estimated Previous Difference due Difference due
Reg. section Affected public activity number of responses per annual hours per total burden submission to program to adjustments
respondents respondent responses response hours total hours changes
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
275.11(a)(1)-(a)(2)..... State Agencies.... Sampling Plan..... 53 1 53 20 1,060 1,060 0 0
275.2(c)(1)(i).......... State Agencies.... Use of 3rd Party 3 1 3 0.25 0.75 0 0.75 0
Contractors-
Notification of
intent to hire.
275.2(c)(1)(ii)......... State Agencies.... Use of 3rd Party 3 1 3 0.5 1.5 0 1.5 0
Contractors-
Submission of
signed contract
and tasks.
275.2(c)(1)(iii)........ State Agencies.... Use of 3rd Party 3 1 3 0.5 1.5 0 1.5 0
Contractors-
Submission of
completed
deliverables.
275.2(c)(1)(iv)......... State Agencies.... Use of 3rd Party 3 1 3 0.08 0.24 0 0.24 0
Contractors-
Notification of
training sessions.
275.2(d)(4)............. State Agencies.... Arbitration 12 3 36 34 1,224 1,224 0 0
Process.
273.23(f)............... State Agencies.... Good Cause Process 1 1 1 160 160 160 0 0
275.23(h)............... State Agencies.... New Investment 9 1 9 32 288 288 0 0
Plan Template
Form FNS 74 A.
275.23(h)(4)............ State Agencies.... New Investment 9 2 18 5 90 90 0 0
Progress Report
Template Form FNS
74 B.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL REPORTING BURDEN..................................
53...................... 2.433962264....... 129............... 21.90689922 2,825.99 2,822 3.99 0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
275 Recordkeeping OMB 0584-0303
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revised number Revised
Description of Estimated Estimated Revised total of burden estimated Previous Difference due Difference due
Reg. section Affected public activity number of responses per annual hours per total burden submission to program to adjustments
respondents respondent responses response hours total hours changes
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
275.4................... State Agencies.... Sampling Plan 53 1 53 0.0236 1.2508 1.2508 0 0
Record Retention.
275.4................... State Agencies.... Arbitration 12 3 36 0.0236 0.8496 0.8496 0 0
Process Record
Retention.
275.4................... State Agencies.... Good Cause Process 1 1 1 0.0236 0.0236 0.0236 0 0
Record Retention.
275.4................... State Agencies.... New Investment 9 1 9 0.0236 0.2124 0.2124 0 0
Plan Template
Form FNS 74 A
Record Retention.
275.4................... State Agencies.... New Investment 9 2 18 0.0236 0.4248 0.4248 0 0
Progress Report
Template Form FNS
74 B Record
Retention.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sub Total RECORDKEEPING.....................................
53...................... 2.20754717........ 117............... 0.118 2.7612 2.7612 0 0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Number of
Description of Estimated reports Number of total Estimated time Estimated total Previous Difference due Difference due
Reg. section Affected public activity number of annually by annual records per record record keeping submission to program to adjustments
respondents state hours total hours changes
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Grand Total REPORTING & RECORDKEEPING...............
53................... 4.41509434...... 234............ 12.08868034 2,828.7512 2,824.7612 3.99 0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 44586]]
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 275
Grant programs-social programs, Reporting and recordkeeping
requirements.
Accordingly, 7 CFR part 275 is amended as follows:
PART 275--PERFORMANCE REPORTING SYSTEM
0
1. The authority citation for part 275 continues to read as follows:
Authority: 7 U.S.C. 2011-2036.
0
2. Amend Sec. 275.2 by adding paragraphs (c) and (d) to read as
follows.
Sec. 275.2 State agency responsibilities.
* * * * *
(c) Use of third party contractors. Any State agency procuring
services of a contractor for quality control related services,
including any project or training that involves the interpretation of
SNAP regulations, policies, or handbooks for quality control or payment
accuracy purpose, must ensure that all activities and deliverables
performed by the contractor within the scope of the contract adhere to
Federal law, regulations, and policies. Activities performed or
deliverables provided by a contractor that are not in accordance with
Federal law, regulations, or policies are unallowable SNAP
administrative costs and are not eligible for Federal reimbursement.
(1) For expenses related to the hiring of a contractor for any
quality control related work to qualify for SNAP administrative cost
reimbursement under Sec. 277.4(b), FNS requires the following:
(i) The State must notify FNS in writing of its intent to hire a
contractor at least 30 days prior to entering into the contract to do
so. The notification must include a copy of the selected contractor's
complete proposal, which must receive FNS approval before the State may
proceed with the procuring the contract.
(ii) Once the contract is procured, the State must submit to FNS a
copy of the signed contract and documentation that outlines all tasks
and deliverables to be performed or produced by the contractor.
(iii) The State must submit to FNS a copy of all deliverables,
including any training materials, provided by the contractor.
(iv) The State must notify FNS of the date, time, and location of
any training sessions led by the contractor at least 10 days in advance
of the training. FNS shall be allowed to attend any such training
session with or without providing prior notice to the State agency or
the contractor.
(v) If the State discusses individual sampled cases with the
contractor, the State must document, within the case file, the contents
of the discussion and any action taken by the State as a result of the
discussion. If the discussion occurs orally, FNS shall be given notice
24 hours in advance of the discussion and shall be allowed to
participate in the discussion. If the discussion occurs in writing, the
State must ensure that FNS is copied on all written correspondence
discussing individual sampled cases.
(2) Copies of documentation and notices required in paragraph
(c)(1) of this section must be provided to the appropriate FNS Regional
SNAP Director.
(3) In accordance with the non-procurement debarment procedures
under 2 CFR part 417, or successor regulations, FNS shall debar any
person that, in carrying out the quality control system, knowingly
submits or causes to be submitted false information to FNS.
(4) Compliance date: Paragraph (c)(1) of this section contains
information-collection requirements. Compliance with paragraph (c)(1)
will not be required until this paragraph (c)(4) is removed or contains
a compliance date, after review of such requirements by the Office of
Management and Budget pursuant to the Paperwork Reduction Act.
(d) FNS Access to State Systems. Subject to data and security
protocols agreed to by FNS and a State agency administering SNAP, each
State agency shall ensure that FNS has complete access, including
remote access for QC purposes, to both the records that are used in the
administration of SNAP, including but not limited to the records
contained within certification and EBT systems, and the information
systems in which such records are contained.
0
3. In Sec. 275.3:
0
a. Redesignate paragraphs (c) and (d) as paragraphs (d) and (e); and
0
b. Add a new paragraph (c).
The addition reads as follows:
Sec. 275.3 Federal Monitoring.
* * * * *
(c) Reviews of State Agency's Quality Control System. FNS will
conduct a management evaluation (ME) of at least two State Quality
Control systems annually, to the maximum extent practicable. The ME
will include, but not be limited to, a determination of whether the
State agency is complying with FNS regulations; an assessment of the
State agency's methods and procedures for conducting and managing the
Quality Control system; and an assessment of the data collected by the
State agency and submitted to the FNS Regional Office for conducting
reviews.
* * * * *
0
4. Amend Sec. 275.4 by revising paragraph (c) to read as follows:
Sec. 275.4 Record retention.
* * * * *
(c) QC review records consist of Forms FNS-380, Worksheet for
Supplemental Nutrition Assistance Program, FNS-380-1, Quality Control
Review Schedule, FNS-245, Negative Quality Control Review Schedule;
other materials supporting the review decision, including all
correspondence with the household and all case notes, digital or
otherwise, taken or used by the eligibility worker that are applicable
to the review period; sample lists; sampling frames; tabulation sheets;
and reports of the results of all quality control reviews during each
review period.
0
5. In Sec. 275.11 amend paragraph (g) by:
0
a. Revising the paragraph heading;
0
b. In the first sentence, removing the phrase, ``, and households
participating based upon an application processed by Social Security
Administration personnel'';
0
c. In the third sentence, removing the term ``Sec. 275.21(e)'' and
adding, in its place, the term ``Sec. 275.21(d)'';
0
d. In the third sentence removing the term ``Sec. 275.23(b)(2)'' and
adding, in its place, the term ``Sec. 275.23(b)(1)''; and
0
e. Removing the sixth and seventh sentences.
The revision reads as follows:
Sec. 275.11 Sampling.
* * * * *
(g) Demonstration projects. * * *
0
6. In Sec. 275.12 amend paragraph (h) by:
0
a. Revising the paragraph heading; and
0
b. Removing the third and fourth sentences.
The revision reads as follows:
Sec. 275.12 Review of active cases.
* * * * *
(h) Demonstration projects. * * *
[[Page 44587]]
0
7. In Sec. 275.13 amend paragraph (f) by:
0
a. Revising the paragraph heading; and
0
b. Removing the last sentence.
The revision reads as follows:
Sec. 275.13 Review of negative cases.
* * * * *
(f) Demonstration projects. * * *
0
8. In Sec. 275.21:
0
a. Revise paragraph (b); and
0
b. In paragraph (d):
0
i. Revise the paragraph heading; and
0
ii. Removing the phrase ``/SSA processed cases'' from the first
sentence.
The revisions read as follows:
Sec. 275.21 Quality control review reports.
* * * * *
(b) Individual cases. The State agency shall report the review
findings on each case selected for review during the sample month. For
active cases, the State agency shall thoroughly document the Quality
Control Review Schedule, Form FNS-380, to ensure any subsequent case
reviewers fully understand household circumstances pertaining to the QC
review as well as the reasons for the individual case finding and
disposition. The State agency shall also code the findings on the Form
FNS-380-1. For negative cases, the State agency shall submit a summary
report, coded and documented on the Negative Quality Control Review
Schedule, Form FNS-245, in enough detail to ensure subsequent case
reviewers fully understand the reasons for the individual finding and
disposition. The review findings shall be reported as follows:
* * * * *
(d) Demonstration projects. * * *
0
9. In Sec. 275.23 amend paragraph (b)(1) by:
0
a. Revising the paragraph heading; and
0
b. Removing the second and third sentences of the paragraph.
The revision reads as follows:
Sec. 275.23 Determination of State agency program performance.
* * * * *
(b) * * *
(1) Demonstration projects. * * *
* * * * *
Stacy Dean,
Deputy Under Secretary, Food, Nutrition and Consumer Services.
[FR Doc. 2021-17254 Filed 8-12-21; 8:45 am]
BILLING CODE 3410-30-P
