[Code of Federal Regulations]
[Title 7 Volume 4]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR273.24]

[Page 792-793]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS--Table of Contents
 
Sec. 273.24  15 Percent exemption authority for able-bodied adults.

    (a) Definitions. For purposes of the food stamp time limit, the 
terms below have the following meanings:
    (1) Caseload means the average monthly number of individuals 
receiving food stamps during the 12-month period ending the preceding 
June 30.
    (2) Covered individual means a food stamp recipient, or an 
individual denied eligibility for food stamp benefits solely due to 
paragraph 6(o)(2) of the Food Stamp Act who:
    (i) Is not exempt from the work requirements under paragraph 6(o)(3) 
of the Food Stamp Act,
    (ii) Does not reside in an area covered by a waiver granted under 
paragraph 6(o)(4) of the Food Stamp Act,
    (iii) Is not fulfilling the work requirements of 6(o)(2) of the Food 
Stamp Act by working 20 hours a week averaged monthly, participating and 
complying with the requirements of a work program for 20 hours or more 
per week, participating in and complying with the requirements of a 
program under section 20 or a comparative program established by a State 
or political subdivision of a State,
    (iv) Is not receiving food stamp benefits during the 3 months of 
eligibility provided under paragraph 6(o)(2) of the Food Stamp Act, and
    (v) Is not receiving food stamp benefits under paragraph 6(o)(5) of 
the Food Stamp Act.
    (b) General rule. Subject to paragraphs (c) through (e) of this 
section, a State agency may provide an exemption from the time limits of 
paragraph 6(o)(2) of the Food Stamp Act for covered individuals. 
Exemptions do not count towards a State's allocation if they are 
provided to an individual who is otherwise exempt from the time limit 
during that month.
    (1) Fiscal year 1998. A State agency may provide a number of 
exemptions such that the average monthly number of exemptions in effect 
during FY 1998 does not exceed 15 percent of the number of covered 
individuals in the State in FY 1998, as estimated by FNS, based on FY 
1996 quality control data, and other factors FNS deems appropriate.
    (2) Subsequent fiscal years. For FY 1999 and each subsequent fiscal 
year, a State agency may provide a number of exemptions such that the 
average monthly number of exemptions in effect during the fiscal year 
does not exceed 15 percent of the number of covered individuals in the 
State, as estimated by FNS, and adjusted by FNS to reflect changes in:
    (i) The State's caseload, and
    (ii) FNS' estimate of changes in the proportion of food stamp 
recipients covered by waivers granted under paragraph 6(o)(4) of the 
Food Stamp Act.
    (c) Adjustments will be made as follows:
    (1) Caseload adjustments. FNS shall adjust the number of covered 
individuals estimated for a State under paragraphs (c) and (d) of this 
section during a fiscal year if the number of food stamp recipients in 
the State varies from the State's caseload by more than 10 percent, as 
estimated by FNS.
    (2) Exemption adjustments. During FY 1999 and each subsequent fiscal 
year, FNS shall adjust the number of exemptions allocated to a State 
agency based on the number of exemptions in effect in the State for the 
preceding fiscal year.
    (i) If the State agency does not use all of its exemptions by the 
end of the fiscal year, FNS shall increase the estimated number of 
exemptions allocated to the State agency for the subsequent fiscal year 
by the remaining balance.
    (ii) If the State agency exceeds its exemptions by the end of the 
fiscal year, FNS shall reduce the estimated number of exemptions 
allocated to the State agency for the subsequent fiscal year by the 
corresponding number.

[[Page 793]]

    (d) Reporting requirement. The State agency shall track the number 
of exemptions used each month and report this number to the regional 
office on a quarterly basis as an addendum to the quarterly employment 
and training report (Form FNS-583) required by Sec. 273.7(c)(6).
    (e) Other Program rules. Nothing in this section shall make an 
individual eligible for benefits under the Food Stamp Act if the 
individual is not otherwise eligible for benefits under the other 
provisions of the Food Stamp Act.

[Amdt. 379, 64 FR 48257]