[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR273.24]

[Page 760-764]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS--Table of Contents
 
Sec. 273.24  Time limit for able-bodied adults.

    (a) Definitions. For purposes of the food stamp time limit, the 
terms below have the following meanings:
    (1) Fulfilling the work requirement means:
    (i) Working 20 hours per week, averaged monthly; for purposes of 
this provision, 20 hours a week averaged monthly means 80 hours a month;
    (ii) Participating in and complying with the requirements of a work 
program 20 hours per week, as determined by the State agency;
    (iii) Any combination of working and participating in a work program 
for a total of 20 hours per week, as determined by the State agency; or
    (iv) Participating in and complying with a workfare program;
    (2) Working means:
    (i) Work in exchange for money;
    (ii) Work in exchange for goods or services (``in kind'' work); or
    (iii) Unpaid work, verified under standards established by the State 
agency.
    (iv) Any combination of paragraphs (a)(2)(i), (a)(2)(ii) and 
(a)(2)(iii) of this section.
    (3) Work Program means:
    (i) A program under the Workforce Investment Act (Pub. L. 105-220);
    (ii) A program under section 236 of the Trade Act of 1974 (19 U.S.C. 
2296); or
    (iii) An employment and training program, other than a job search or 
job search training program, operated or supervised by a State or 
political subdivision of a State that meets standards approved by the 
Governor of the State, including a program under Sec. 273.7(f). Such a 
program may contain job search or job search training as a subsidiary 
component as long as such component is less than half the requirement.
    (4) Workfare program means:
    (i) A program under Sec. 273.22; or
    (ii) A comparable program established by a State or political 
subdivision of a State.
    (5) Caseload means the average monthly number of individuals 
receiving food stamps during the 12-month period ending the preceding 
June 30.
    (6) 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. Individuals are not eligible to participate in the 
Food Stamp Program as a member of any household if the individual 
received food stamps for more than three countable months during any 
three-year period, except that individuals may be eligible for up to 
three additional countable months in accordance with paragraph (e) of 
this section.
    (1) Countable months. Countable months are months during which an 
individual receives food stamps for the full benefit month while not:
    (i) Exempt under paragraph (c) of this section;
    (ii) Covered by a waiver under paragraph (f) of this section;
    (iii) Fulfilling the work requirement as defined in paragraph (a)(1) 
of this section; or
    (iv) Receiving benefits that are prorated in accordance with 
Sec. 273.10.
    (2) Good cause. As determined by the State agency, if an individual 
would have worked an average of 20 hours per

[[Page 761]]

week but missed some work for good cause, the individual shall be 
considered to have met the work requirement if the absence from work is 
temporary and the individual retains his or her job. Good cause shall 
include circumstances beyond the individual's control, such as, but not 
limited to, illness, illness of another household member requiring the 
presence of the member, a household emergency, or the unavailability of 
transportation.
    (3) Measuring the three-year period. The State agency may measure 
and track the three-year period as it deems appropriate. The State 
agency may use either a ``fixed'' or ``rolling'' clock. If the State 
agency chooses to switch tracking methods it must inform FNS in writing. 
With respect to a State, the three-year period:
    (i) Shall be measured and tracked consistently so that individuals 
who are similarly situated are treated the same; and
    (ii) Shall not include any period before the earlier of November 22, 
1996, or the date the State notified food stamp recipients of the 
application of Section 824 of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Pub. L. 104-193).
    (4) Treatment of income and resources. The income and resources of 
an individual made ineligible under this paragraph (b) shall be handled 
in accordance with Sec. 273.11(c)(2).
    (5) Benefits received erroneously. If an individual subject to this 
section receives food stamp benefits erroneously, the State agency shall 
consider the benefits to have been received for purposes of this 
provision unless or until the individual pays it back in full.
    (6) Verification. Verification shall be in accordance with 
Sec. 273.2(f)(1) and (f)(8).
    (7) Reporting. A change in work hours below 20 hours per week, 
averaged monthly, is a reportable change in accordance with 
Sec. 273.12(a)(1)(viii). Regardless of the type of reporting system the 
State agency assigns to potential ABAWDs, the State agency must adhere 
to the statutory requirements of time-limited benefits for individuals 
who are subject to the work requirement. The State agency may opt to 
consider work performed in a job that was not reported according to the 
requirements of Sec. 273.12 ``work.''
    (8) Applicability of Food Stamp Act. Nothing in this paragraph (b) 
shall make an individual eligible for food stamp benefits if the 
individual is not otherwise eligible for benefits under the other 
provisions of these regulations and the Food Stamp Act of 1977, as 
amended.
    (c) Exemptions. An individual is exempt from the time limit if he or 
she is;
    (1) Under 18 or 50 years of age or older;
    (2) Determined by the State agency to be medically certified as 
physically or mentally unfit for employment. An individual is medically 
certified as physically or mentally unfit for employment if he or she:
    (i) Is receiving temporary or permanent disability benefits issued 
by governmental or private sources;
    (ii) Is obviously mentally or physically unfit for employment as 
determined by the State agency; or
    (iii) If the unfitness is not obvious, provides a statement from a 
physician, physician's assistant, nurse, nurse practitioner, designated 
representative of the physician's office, a licensed or certified 
psychologist, a social worker, or any other medical personnel the State 
agency determines appropriate, that he or she is physically or mentally 
unfit for employment.
    (3) Is a parent (natural, adoptive, or step) of a household member 
under age 18, even if the household member who is under 18 is not 
himself eligible for food stamps;
    (4) Is residing in a household where a household member is under age 
18, even if the household member who is under 18 is not himself eligible 
for food stamps;
    (5) Is otherwise exempt from work requirements under section 6(d)(2) 
of the Food Stamp Act, as implemented in regulations at Sec. 273.7(b); 
or
    (6) Is pregnant.
    (d) Regaining eligibility. (1) An individual denied eligibility 
under paragraph (b) of this section, or who did not reapply for benefits 
because he was not meeting the work requirements under paragraph (b) of 
this section, shall regain eligibility to participate in the

[[Page 762]]

Food Stamp Program if, as determined by the State agency, during any 30 
consecutive days, he or she:
    (i) Worked 80 or more hours;
    (ii) Participated in and complied with the requirements of a work 
program for 80 or more hours;
    (iii) Any combination of work and participation in a work program 
for a total of 80 hours; or participated in and complied with a workfare 
program; or
    (iv) At State agency option, verifies that the he or she will meet 
one of the requirements in paragraphs (d)(1)(i), (d)(1)(ii), 
(d)(1)(iii), or (d)(1)(v) of this section, within the 30 days subsequent 
to application; or
    (v) Becomes exempt.
    (2) An individual regaining eligibility under paragraph (d)(1) of 
this section shall have benefits calculated as follows:
    (i) For individuals regaining eligibility by working, participating 
in a work program, or combining hours worked and hours participating in 
a work program, the State agency may either prorate benefits from the 
day the 80 hours are completed or from the date of application, or
    (ii) For individuals regaining eligibility by participating in a 
workfare program, and the workfare obligation is based on an estimated 
monthly allotment prorated back to the date of application, then the 
allotment issued must be prorated back to this date.
    (3) There is no limit on how many times an individual may regain 
eligibility and subsequently maintain eligibility by meeting the work 
requirement.
    (e) Additional three-month eligibility. An individual who regained 
eligibility under paragraph (d) of this section and who is no longer 
fulfilling the work requirement as defined in paragraph (a) of this 
section is eligible for a period of three consecutive countable months 
(as defined in paragraph (b) of this section), starting on the date the 
individual first notifies the State agency that he or she is no longer 
fulfilling the work requirement, unless the individual has been 
satisfying the work requirement by participating in a work or workfare 
program, in which case the period starts on the date the State agency 
notifies the individual that he or she is no longer meeting the work 
requirement. An individual shall not receive benefits under this 
paragraph (e) more than once in any three-year period.
    (f) Waivers.
    (1) General. On the request of a State agency, FNS may waive the 
time limit for a group of individuals in the State if we determine that 
the area in which the individuals reside:
    (i) Has an unemployment rate of over 10 percent; or
    (ii) Does not have a sufficient number of jobs to provide employment 
for the individuals.
    (2) Required data. The State agency may submit whatever data it 
deems appropriate to support its request. However, to support waiver 
requests based on unemployment rates or labor force data, States must 
submit data that relies on standard Bureau of Labor Statistics (BLS) 
data or methods. A non-exhaustive list of the kinds of data a State 
agency may submit follows:
    (i) To support a claim of unemployment over 10 percent, a State 
agency may submit evidence that an area has a recent 12 month average 
unemployment rate over 10 percent; a recent three month average 
unemployment rate over 10 percent; or an historical seasonal 
unemployment rate over 10 percent; or
    (ii) To support a claim of lack of sufficient jobs, a State may 
submit evidence that an area: is designated as a Labor Surplus Area 
(LSA) by the Department of Labor's Employment and Training 
Administration (ETA); is determined by the Department of Labor's 
Unemployment Insurance Service as qualifying for extended unemployment 
benefits; has a low and declining employment-to-population ratio; has a 
lack of jobs in declining occupations or industries; is described in an 
academic study or other publications as an area where there are lack of 
jobs; has a 24-month average unemployment rate 20 percent above the 
national average for the same 24-month period. This 24-month period may 
not be any earlier than the same 24-month period the ETA uses to 
designate LSAs for the current fiscal year.

[[Page 763]]

    (3) Waivers that are readily approvable. FNS will approve State 
agency waivers where FNS confirms:
    (i) Data from the BLS or the BLS cooperating agency that shows an 
area has a most recent 12 month average unemployment rate over 10 
percent;
    (ii) Evidence that the area has been designated a Labor Surplus Area 
by the ETA for the current fiscal year; or
    (iii) Data from the BLS or the BLS cooperating agency that an area 
has a 24 month average unemployment rate that exceeds the national 
average by 20 percent for any 24-month period no earlier than the same 
period the ETA uses to designate LSAs for the current fiscal year.
    (4) Effective date of certain waivers. In areas for which the State 
certifies that data from the BLS or the BLS cooperating agency show a 
most recent 12 month average unemployment rate over 10 percent; or the 
area has been designated as a Labor Surplus Area by the Department of 
Labor's Employment and Training Administration for the current fiscal 
year, the State may begin to operate the waiver at the time the waiver 
request is submitted. FNS will contact the State if the waiver must be 
modified.
    (5) Duration of waiver. In general, waivers will be approved for one 
year. The duration of a waiver should bear some relationship to the 
documentation provided in support of the waiver request. FNS will 
consider approving waivers for up to one year based on documentation 
covering a shorter period, but the State agency must show that the basis 
for the waiver is not a seasonal or short term aberration. We reserve 
the right to approve waivers for a shorter period at the State agency's 
request or if the data is insufficient. We reserve the right to approve 
a waiver for a longer period if the reasons are compelling.
    (6) Areas covered by waivers. States may define areas to be covered 
by waivers. We encourage State agencies to submit data and analyses that 
correspond to the defined area. If corresponding data does not exist, 
State agencies should submit data that corresponds as closely to the 
area as possible.
    (g) 15 percent exemptions. 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.
    (h) 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

[[Page 764]]

year, FNS shall reduce the estimated number of exemptions allocated to 
the State agency for the subsequent fiscal year by the corresponding 
number.
    (i) 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).
    (j) 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, Sept. 3, 1999, as amended at 66 FR 4469, Jan. 
17, 2001]