[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR271.2]

[Page 538-547]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 271--GENERAL INFORMATION AND DEFINITIONS--Table of Contents
 
Sec. 271.2  Definitions.

    Access device means any card, plate, code, account number, or other 
means of access that can be used alone, or in conjunction with another 
access device, to obtain payments, allotments,

[[Page 539]]

benefits, money, goods, or other things of value, or that can be used to 
initiate a transfer of funds under the Food Stamp Act of 1977, as 
amended.
    Active case means a household which was certified prior to, or 
during, the sample month and issued food stamp benefits for the sample 
month.
    Active case error rate means an estimate of the proportion of cases 
with an error in the determination of eligibility or basis of issuance. 
This estimate will be expressed as a percentage of the completed active 
quality control reviews excluding all results from cases processed by 
SSA personnel or participating in a demonstration project identified by 
FNS as having certification rules that are significantly different from 
standard requirements.
    Adequate notice in a periodic reporting system such as monthly 
reporting or quarterly reporting means a written notice that includes a 
statement of the action the agency has taken or intends to take; the 
reason for the intended action; the household's right to request a fair 
hearing; the name of the person to contact for additional information; 
the availability of continued benefits; and the liability of the 
household for any overissuances received while awaiting a fair hearing 
if the hearing official's decision is adverse to the household. 
Depending on the timing of a State's system and the timeliness of report 
submission by participating households, such notice may be received 
prior to agency action, at the time reduced benefits are received, or, 
if benefits are terminated, at the time benefits would have been 
received if they had not been terminated. In all cases, however, 
participants will be allowed ten days from the mailing date of the 
notice to contest the agency action and to have benefits restored to 
their previous level. If the 10-day period ends on a weekend or a 
holiday and a request is received the day after the weekend or holiday, 
the State agency shall consider the request to be timely.
    Alien Status Verification Index (ASVI) means the automated database 
maintained by the Immigration and Naturalization Service which may be 
accessed by State agencies to verify immigration status.
    Allotment means the total value of coupons a household is authorized 
to receive during each month or other time period.
    Application form means: (1) The application form designed or 
approved by FNS, which is completed by a household member or authorized 
representative; or
    (2) For households consisting solely of public assistance or general 
assistance recipients, it may also mean the application form used to 
apply for public assistance or general assistance, including attachments 
approved by FNS, which is completed by a household member or authorized 
represen- tative.
    Assessment an in-depth evaluation of employability skills coupled 
with counseling on how and where to search for employment. If combined 
with work experience, employment search or training, an assessment of 
this nature could constitute part of an approvable employment and 
training component.
    Authorization document means an intermediary document issued by the 
State agency and used in an issuance system to authorize a specific 
benefit amount for a household.
    Authorization to participate card (ATP) means a document which is 
issued by the State agency to a certified household to show the 
allotment the household is authorized to receive on presentation of such 
document.
    Base period means the first 6-month reporting period of each fiscal 
year.
    Beginning month(s) in a Monthly Reporting and Retrospective 
Budgeting system means either the first month for which the household is 
certified for food stamps (where the State agency has adopted a one 
month accounting system) or the first month for which the household is 
certified for food stamps and the month thereafter (where the State 
agency has adopted a two month accounting system). Except for beginning 
months in sequence as described in the preceding sentences, a beginning 
month cannot be any month which immediately follows a month in which a 
household is certified. The month following the month of termination 
resulting from a one-month

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temporary change in household circumstances shall not be considered a 
beginning month.
    Budget month in a Monthly Reporting and Retrospective Budgeting 
system means the fiscal or calendar month from which the State agency 
uses income and other circumstances of the household to calculate the 
household's food stamp allotment to be provided for the corresponding 
issuance month.
    Bulk storage point means an office of the State agency or any 
person, partnership, corporation, organization, political subdivision, 
or other entity with which a State agency has contracted for, or to 
which it has assigned responsibility for, the security and storage of 
food coupons.
    Claims collection point means any office of the State agency or any 
person, partnership, corporation, organization, political subdivision or 
other entity with which a State agency has contracted, or to which it 
has assigned responsibility for the collection of claims.
    Communal dining facility means a public or nonprofit private 
establishment, approved by FNS, which prepares and serves meals for 
elderly persons, or for supplemental security income (SSI) recipients, 
and their spouses, a public or private nonprofit establishment (eating 
or otherwise) that feeds elderly persons or SSI recipients, and their 
spouses, and federally subsidized housing for the elderly at which meals 
are prepared for and served to the residents. It also includes private 
establishments that contract with an appropriate State or local agency 
to offer meals at concessional prices to elderly persons or SSI 
recipients, and their spouses.
    Coupon means any coupon, stamp, type of certificate, authorization 
card, cash or check issued in lieu of a coupon, or access device, 
including an electronic benefit transfer card or personal identification 
number issued pursuant to the provisions of the Food Stamp Act of 1977, 
as amended, for the purchase of eligible food.
    Coupon issuer means any office of the State agency or any person, 
partnership, corporation, organization, political subdivision, or other 
entity with which a State agency has contracted for, or to which it has 
assigned responsibility for, the issuance of coupons to households.
    Deficiency means any aspect of a State's program operations 
determined to be out of compliance with the Food Stamp Act, FNS 
Regulations, or program requirements as contained in the State agency's 
manual, the State agency's approved Plan of Operation or other State 
agency plans.
    Department means the U.S. Department of Agriculture.
    Direct access system means an issuance system in which benefits are 
issued directly to the household, without the use of an intermediary 
document, based on the issuance agent's direct access to information in 
the household's individual record on the master issuance file, which may 
be a card document or an on-line computer system.
    Drug addiction or alcoholic treatment and rehabilitation program 
means any drug addiction or alcoholic treatment and rehabilitation 
program conducted by a private, nonprofit organization or institution, 
or a publicly operated community mental health center, under part B of 
title XIX of the Public Health Service Act (42 U.S.C. 300x et seq.). 
Under part B of title XIX of the Public Health Service Act is defined as 
meeting the criteria which would make it eligible to receive funds, even 
if it does not actually receive funding under part B of title XIX.
    Elderly or disabled member means a member of a household who: (1) Is 
60 years of age or older;
    (2) Receives supplemental security income benefits under title XVI 
of the Social Security Act or disability or blindness payments under 
titles I, II, X, XIV, or XVI of the Social Security Act;
    (3) Receives federally or State-administered supplemental benefits 
under section 1616(a) of the Social Security Act provided that the 
eligibility to receive the benefits is based upon the disability or 
blindness criteria used under title XVI of the Social Security Act;
    (4) Receives federally or State-administered supplemental benefits 
under section 212(a) of Pub. L. 93-66;

[[Page 541]]

    (5) Receives disability retirement benefits from a governmental 
agency because of a disability considered permanent under section 221(i) 
of the Social Security Act.
    (6) Is a veteran with a service-connected or non-service-connected 
disability rated by the Veteran's Administration (VA) as total or paid 
as total by the VA under title 38 of the United States Code;
    (7) Is a veteran considered by the VA to be in need of regular aid 
and attendance or permanently housebound under title 38 of the United 
States Code;
    (8) Is a surviving spouse of a veteran and considered by the VA to 
be in need of regular aid and attendance or permanently housebound or a 
surviving child of a veteran and considered by the VA to be permanently 
incapable of self-support under title 38 of the United States Code;
    (9) Is a surviving spouse or surviving child of a veteran and 
considered by the VA to be entitled to compensation for a service-
connected death or pension benefits for a nonservice-connected death 
under title 38 of the United States Code and has a disability considered 
permanent under section 221(i) of the Social Security Act. ``Entitled'' 
as used in this definition refers to those veterans' surviving spouses 
and surviving children who are receiving the compensation or pension 
benefits stated or have been approved for such payments, but are not yet 
receiving them; or
    (10) Receives an annuity payment under: section 2(a)(1)(iv) of the 
Railroad Retirement Act of 1974 and is determined to be eligible to 
receive Medicare by the Railroad Retirement Board; or section 2(a)(1)(v) 
of the Railroad Retirement Act of 1974 and is determined to be disabled 
based upon the criteria used under title XVI of the Social Security Act.
    (11) Is a recipient of interim assistance benefits pending the 
receipt of Supplemented Security Income, a recipient of disability 
related medical assistance under title XIX of the Social Security Act, 
or a recipient of disability-based State general assistance benefits 
provided that the eligibility to receive any of these benefits is based 
upon disability or blindness criteria established by the State agency 
which are at least as stringent as those used under title XVI of the 
Social Security Act (as set forth at 20 CFR part 416, subpart I, 
Determining Disability and Blindness as defined in Title XVI).
    Eligible foods means: (1) Any food or food product intended for 
human consumption except alcoholic beverages, tobacco, and hot foods and 
hot food products prepared for immediate consumption;
    (2) Seeds and plants to grow foods for the personal consumption of 
eligible households;
    (3) Meals prepared and delivered by an authorized meal delivery 
service to households eligible to use coupons to purchase delivered 
meals; or meals served by an authorized communal dining facility for the 
elderly, for SSI households or both, to households eligible to use 
coupons for communal dining;
    (4) Meals prepared and served by a drug addict or alcoholic 
treatment and rehabilitation center to narcotic addicts or alcoholics 
and their children who live with them;
    (5) Meals prepared and served by a group living arrangement facility 
to residents who are blind or disabled as defined in paragraphs (2) 
through (11) of the definition of ``Elderly or disabled member'' 
contained in this section;
    (6) Meals prepared by and served by a shelter for battered women and 
children to its eligible residents;
    (7) In the case of certain eligible households living in areas of 
Alaska where access to food stores is extremely difficult and the 
households rely on hunting and fishing for subsistence, equipment for 
the purpose of procuring food for eligible households, including nets, 
lines, hooks, fishing rods, harpoons, knives, and other equipment 
necessary for subsistence hunting and fishing but not equipment for the 
purpose of transportation, clothing or shelter, nor firearms, ammunition 
or other explosives;
    (8) In the case of homeless food stamp households, meals prepared 
for and served by an authorized public or private nonprofit 
establishment (e.g. soup kitchen, temporary shelter), approved by an 
appropriate State or local agency, that feeds homeless persons; and

[[Page 542]]

    (9) In the case of homeless food stamp households, meals prepared by 
a restaurant which contracts with an appropriate State agency to serve 
meals to homeless persons at concessional (low or reduced) prices.
    Employment and training (E&T) component a work experience, work 
training or job search program, as described in section 6(d)(4)(B)(iv) 
of the Food Stamp Act of 1977 (7 U.S.C. 2014(2)(4)(B)) designed to help 
food stamp recipients move promptly into unsubsidized employment.
    Employment and training (E&T) mandatory participant a Food Stamp 
Program applicant or participant who is required to work register under 
7 U.S.C. 2014(d)(1) or (2) and who the State determines should not be 
exempted from participation in an employment and training program.
    Employment and training (E&T) program a program operated by each 
State agency consisting of one or more work, training, education or job 
search components.
    Error for active cases results when a determination is made by a 
quality control reviewer that a household which received food stamp 
benefits during the sample month is ineligible or received an incorrect 
allotment. Thus, errors in active cases involve dollar loss to either 
the participant or the government. For negative cases, an ``error'' 
means that the reviewer determines that the decision to deny, suspend, 
or terminate a household was incorrect.
    Exempted for purposes of Sec. 273.7 excluding paragraphs (a) and 
(b)--this term refers to a work registered person or persons excused by 
the State, under the conditions in Sec. 273.7(e) from participation in 
an employment and training program.
    Exercises governmental jurisdiction means the active exercise of the 
legislative, executive or judicial powers of government by an Indian 
tribal organization.
    Federal fiscal year means a period of 12 calendar months beginning 
with each October 1 and ending with September 30 of the following 
calendar year.
    Firm's practice means the usual manner in which personnel of a firm 
or store accept food coupons as shown by the actions of the personnel at 
the time of the investigation.
    FNS means the Food and Nutrition Service of the U.S. Department of 
Agriculture.
    Food Stamp Act means the Food Stamp Act of 1977 (Pub. L. 95-113), 
including any subsequent amendments thereto.
    General assistance (GA) means cash or another form of assistance, 
excluding in-kind assistance, financed by State or local funds as part 
of a program which provides assistance to cover living expenses or other 
basic needs intended to promote the health or well-being of recipients.
    Group living arrangement means a public or private nonprofit 
residential setting that serves no more than sixteen residents that is 
certified by the appropriate agency or agencies of the State under 
regulations issued under section 1616(e) of the Social Security Act or 
under standards determined by the Secretary to be comparable to 
standards implemented by appropriate State agencies under section 
1616(e) of the Social Security Act. To be eligible for food stamp 
benefits, a resident of such a group living arrangement must be blind or 
disabled as defined in paragraphs (2) through (11) of the definition of 
``Elderly or disabled member'' contained in this section.
    Homeless individual means an individual who lacks a fixed and 
regular nighttime residence or an individual whose primary nighttime 
residence is: (1) A supervised shelter designed to provide temporary 
accommodations (such as a welfare hotel or congregate shelter);
    (2) A halfway house or similar institution that provides temporary 
residence for individuals intended to be institutionalized;
    (3) A temporary accommodation for not more than 90 days in the 
residence of another individual; or
    (4) A place not designed for, or ordinarily used, as a regular 
sleeping accommodation for human beings (a hallway, a bus station, a 
lobby or similar places).
    Homeless meal provider means:

[[Page 543]]

    (1) A public or private nonprofit establishment (e.g., soup 
kitchens, temporary shelters) that feeds homeless persons; or
    (2) A restaurant which contracts with an appropriate State agency to 
offer meals at concessional (low or reduced) prices to homeless persons.
    House-to-house trade route means any retail food business operated 
from a truck, bus, pushcart, or other mobile vehicle.
    Identification (ID) card means a card which identifies the bearer as 
eligible to receive and use food coupons.
    Immigration and Naturalization Service (INS) means the Immigration 
and Naturalization Service, U.S. Department of Justice.
    Indian tribe means: (1) Any Indian tribe, Band, Nation, or other 
organized Indian group on a reservation for example, a Rancheria, Pueblo 
or Colony, and including any Alaska Native Village or regional or 
village corporation (established pursuant to the Alaska Native Claims 
Settlement Act(85 Stat. 688)), that is on a reservation and is 
recognized as eligible for Federal programs and services provided to 
Indians because of their status as Indians; or (2) any Indian tribe or 
Band on a reservation holding a treaty with a State government.
    Indian tribal organization (ITO) means: (1) The recognized governing 
body of any Indian tribe on a reservation; or (2) the tribally 
recognized intertribal organization which the recognized governing 
bodies of two or more Indian tribes on a reservation authorizes to 
operate the Food Stamp Program or a Food Distribution Program on their 
behalf.
    Insured financial institution means a financial institution insured 
by the Federal Deposit Insurance Corporation (FDIC) or financial 
institutions which are insured under the Federal Credit Union Act and 
which have retail food stores or wholesale food concerns in their field 
of membership.
    Issuance month in a Monthly Reporting and Retrospective Budgeting 
system means the fiscal or calendar month for which the State agency 
shall issue a food stamp allotment. Issuance is based upon income and 
circumstances in the corresponding budget month. In prospective 
budgeting, the budget month and issuance month are the same. In 
retrospective budgeting, the issuance month follows the budget month and 
the issuance month shall begin within 32 days after the end of the 
budget month.
    Large project area means those project areas/management units with 
monthly active caseloads of more than 15,000 households based on the 
most current information available at the time the large project area 
review schedule is developed.
    Low-income household means a household whose annual income does not 
exceed 125 percent of the Office of Management and Budget poverty 
guidelines.
    Management Evaluation (ME) reviews means reviews conducted by States 
at the project area level to determine if State agencies are 
administering and operating the Food Stamp Program in accordance with 
program requirements.
    Management unit means an area based on a welfare district, region, 
or other administrative structure designated by the State agency and 
approved by FNS to be reviewed for ME review purposes.
    Master issuance file means a cumulative file containing the 
individual records and status of households, and the amount of benefits, 
if any, each household is authorized to receive.
    Meal delivery service means a political subdivision, a private 
nonprofit organization, or a private establishment with which a State or 
local agency has contracted for the preparation and delivery of meals at 
concessional prices to elderly persons, and their spouses, and to the 
physically or mentally handicapped and persons otherwise disabled, and 
their spouses, such that they are unable to adequately prepare all of 
their meals.
    Medicaid means medical assistance under title XIX of the Social 
Security Act, as amended.
    Medium project area means those project areas/management units with 
monthly active caseloads of 2,001 to 15,000 households based on the most 
current information available at the time the medium project area review 
schedule is developed.

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    Minimum benefit means the minimum monthly amount of food stamps that 
one- and two-person households receive. The amount of the minimum 
benefit shall be $10.
    National standard payment error rate means the weighted mean of all 
States' payment error rates during a base period.
    Negative case means a household whose application for food stamp 
benefits was denied or whose food stamp benefits were suspended or 
terminated by an action in the sample month or by an action effective 
for the sample month.
    Negative case error rate means an estimate of the proportion of 
denied, suspended, or terminated cases where the household was 
incorrectly denied, suspended, or terminated. This estimate will be 
expressed as a percentage of completed negative quality control reviews 
excluding all results from cases processed by SSA personnel or 
participating in a demonstration project identified by FNS as having 
certification rules that are significantly different from standard 
requirements.
    Newly work registered food stamp participants work registered at the 
point of application.
    Nonprofit cooperative food purchasing venture means any private 
nonprofit association of consumers whose members pool their resources to 
buy food.
    Offset year means the calendar year during which offsets may be made 
to collect certain recipient claims from individuals' Federal income tax 
refunds.
    Overissuance means the amount by which coupons issued to a household 
exceeds the amount it was eligible to receive.
    Overpayment error rate means the percentage of the value of all 
allotments issued in a fiscal year that are either: (1) Issued to 
households that fail to meet basic program eligibility requirements, or
    (2) Overissued to eligible households.
    Payment error rate means the sum of the point estimates of two 
component error rates: an overpayment error rate and an underpayment 
error rate. Each component error rate is the value of allotments either 
overissued or underissued expressed as a percentage of all allotments 
issued to completed active sample cases, excluding those cases processed 
by SSA personnel or participating in certain demonstration projects 
designated by FNS.
    Placed in an employment and training (E&T) program means a State 
agency may count a person as ``placed'' in an E&T program when the 
individual commences a component.
    Program means the food stamp program conducted under the Food Stamp 
Act and regulations.
    Project area means the county or similar political subdivision 
designated by a State as the administrative unit for program operations. 
Upon prior FNS approval, a city, Indian reservation, welfare district, 
or any other entity with clearly defined geographic boundaries, or any 
combination of such entities, may be designated as a project area, or a 
State as a whole may be designated as a single project area.
    Prospective budgeting in a Monthly Reporting and Retrospective 
Budgeting system means the computation of a household's food stamp 
allotment for an issuance month based on an estimate of income and 
circumstances which will exist in that month.
    Public assistance (PA) means any of the following programs 
authorized by the Social Security Act of 1935, as amended: Old-age 
assistance, Temporary Assistance for Needy Families (TANF), including 
TANF for children of unemployed fathers, aid to the blind, aid to the 
permanently and totally disabled and aid to aged, blind, or disabled.
    Quality control review means a review of a statistically valid 
sample of active and negative cases to determine the extent to which 
households are receiving the food stamp allotments to which they are 
entitled, and to determine the extent to which decisions to deny, 
suspend, or terminate cases are correct.
    Record-for-issuance file means a file which is created monthly from 
the master issuance file, which shows the amount of benefits each 
eligible household is to receive for the issuance month, and the amount 
actually issued to the household.
    Regulations means the provisions of this subchapter. Regulatory 
citations

[[Page 545]]

refer to provisions of this subchapter unless otherwise specified.
    Reservation means the geographically defined area or areas over 
which an ITO exercises governmental jurisdiction so long as such area or 
areas are legally recognized by the Federal or a State government as 
being set aside for the use of Indians.
    Retail food store means: (1) An establishment or house-to-house 
trade route that sells food for home preparation and consumption 
normally displayed in a public area, and either offers for sale, on a 
continuous basis, a variety of foods in sufficient quantities in each of 
the four categories of staple foods including perishable foods in at 
least two such categories (Criterion A) as set forth in Sec. 278.1(b)(1) 
of this chapter, or has more than 50 percent of its total gross retail 
sales in staple foods (Criterion B) as set forth in Sec. 278.1(b)(1) of 
this chapter as determined by visual inspection, marketing structure, 
business licenses, accessibility of food items offered for sale, 
purchase and sales records, counting of stockkeeping units, or other 
inventory or accounting recordkeeping methods that are customary or 
reasonable in the retail food industry as set forth in Sec. 278.1(b)(1) 
of this chapter. Entities that have more than 50 percent of their total 
gross retail sales in hot and/or cold prepared, ready-to-eat foods that 
are intended for immediate consumption either for carry-out or on-
premises consumption, and require no additional preparation, are not 
eligible for FSP participation as retail food stores under 
Sec. 278.1(b)(1) of this chapter.
    (2) Public or private communal dining facilities and meal delivery 
services; private nonprofit drug addict or alcoholic treatment and 
rehabilitation programs; publicly operated community mental health 
centers which conduct residential programs for drug addicts and/or 
alcoholics; public or private nonprofit group living arrangements; 
public or private nonprofit shelters for battered women and children; 
public or private nonprofit establishments, approved by an appropriate 
State or local agency, that feed homeless persons; or a restaurant that 
contracts with an appropriate State agency to provide meals at 
concessional (low or reduced) prices to homeless food stamp households;
    (3) Any stores selling equipment for procuring food by hunting and 
fishing to eligible households in Alaska, as specified in the definition 
of eligible foods;
    (4) Any private nonprofit cooperative food purchasing venture, 
including those whose members pay for food prior to receipt of the food; 
and
    (5) A farmers' market.
    Retrospective budgeting in a Monthly Reporting and Retrospective 
Budgeting system means the computation of a household's food stamp 
allotment for an issuance month based on actual income and circumstances 
which existed in a previous month, the ``budget month.''
    Review date for quality control active cases means a day within the 
sample month, either the first day of the calendar or fiscal month or 
the day a certification action was taken to authorize the allotment, 
whichever is later. The ``review date'' for negative cases, depending on 
the characteristics of individual State systems, could be the date on 
which the eligibility worker makes the decision to suspend, deny, or 
terminate the case, the date on which the decision is entered into the 
computer system, the date of the notice to the client or the date the 
negative action becomes effective. For no case is the ``review date'' 
the day the quality control review is conducted.
    Review period means the 12-month period from October 1 of each 
calendar year through September 30 of the following calendar year.
    Sample frame means a list of all units from which a sample is 
actually selected.
    Sample month means the month of the sample frame from which a case 
is selected (e.g., for all cases selected from a frame consisting of 
households participating in January, the sample month is January).
    Screening an evaluation by the eligibility worker as to whether a 
person should or should not be referred for participation in an 
employment and training program. This activity would not be considered 
an approvable E&T component.

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    Secretary means the Secretary of the U.S. Department of Agriculture.
    Shelter for battered women and children means a public or private 
nonprofit residential facility that serves battered women and their 
children. If such a facility serves other individuals, a portion of the 
facility must be set aside on a long-term basis to serve only battered 
women and children.
    Small project area means those project areas/management units with 
monthly active caseloads of 2,000 households or fewer based on the most 
current information available at the time the small project area review 
schedule is developed.
    (2) Who are living together and are holding themselves out to the 
community as husband and wife by representing themselves as such to 
relatives, friends, neighbors, or tradespeople.
    SSA processed/demonstration case means a case that is participating 
or has been denied based upon processing by SSA personnel or is 
participating or has been denied/terminated based upon the rules of a 
demonstration project with significantly different certification rules 
(as identified by FNS).
    Staple food means those food items intended for home preparation and 
consumption in each of the following food categories: meat, poultry, or 
fish; bread or cereals; vegetables or fruits; and dairy products. 
Commercially processed foods and prepared mixtures with multiple 
ingredients shall only be counted in one staple food category. For 
example, foods such as cold pizza, macaroni and cheese, multi-ingredient 
soup, or frozen dinners, shall only be counted as one staple food item 
and will normally be included in the staple food category of the main 
ingredient as determined by FNS. Hot foods are not eligible for purchase 
with food stamps and, therefore, do not qualify as staple foods for the 
purpose of determining eligibility under Sec. 278.1(b)(1) of this 
chapter. Accessory food items including, but not limited to, coffee, 
tea, cocoa, carbonated and uncarbonated drinks, candy, condiments, and 
spices shall not be considered staple foods for the purpose of 
determining eligibility of any firm. However, accessory foods that are 
offered for sale in authorized retail food stores are eligible food 
items which may be purchased with food stamp benefits.
    State means any one of the fifty States, the District of Columbia, 
Guam, the Virgin Islands of the United States, and the reservation of an 
Indian tribe whose ITO meets the requirements of the Food Stamp Act for 
participation as a State agency.
    State agency means: (1) The agency of State government, including 
the local offices thereof, which is responsible for the administration 
of the federally aided public assistance programs within the State, and 
in those States where such assistance programs are operated on a 
decentralized basis, it includes the counterpart local agencies which 
administer such assistance programs for the State agency, and (2) the 
Indiantribal organization of any Indian tribe determined by the 
Department to be capable of effectively administering a Food Stamp 
Program or a Food Distribution Program in accordance with provisions of 
the Food Stamp Act of 1977.
    State Income and Eligibility Verification System (IEVS) means a 
system of information acquisition and exchange for purposes of income 
and eligibility verification which meets the requirements of section 
1137 of the Social Security Act, generally referred to as the IEVS.
    State Wage Information Collection Agency (SWICA) means the State 
agency administering the State unemployment compensation law, another 
agency administering a quarterly wage reporting system, or a State 
agency administering an alternative system which has been determined by 
the Secretary of Labor, in consultation with the Secretary of 
Agriculture and the Secretary of Health and Human Services, to be as 
effective and timely in providing employment related income and 
eligibility data as the two just mentioned agencies.
    Sub-units means the physical location of an organizational entity 
within a project area/management unit involved in the operation of the 
Food Stamp Program, excluding Post Offices.
    Supplemental Security Income (SSI) means monthly cash payments made 
under the authority of: (1) Title XVI of

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the Social Security Act, as amended, to the aged, blind and disabled; 
(2) section 1616(a) of the Social Security Act; or (3) section 212(a) of 
Pub. L. 93-66.
    Systematic Alien Verification for Entitlements (SAVE) means the INS 
program whereby State agencies may verify the validity of documents 
provided by aliens applying for food stamp benefits by obtaining 
information from a central data file.
    Thrifty food plan means the diet required to feed a family of four 
persons consisting of a man and a woman 20 through 50, a child 6 through 
8, and a child 9 through 11 years of age, determined in accordance with 
the Secretary's calculations. The cost of such diet shall be the basis 
for uniform allotments for all households regardless of their actual 
composition. In order to develop maximum food stamp allotments, the 
Secretary shall make household size and other adjustments in the Thrifty 
Food Plan taking into account economies of scale and other adjustments 
as required by law.
    Trafficking means the buying or selling of coupons, ATP cards or 
other benefit instruments for cash or consideration other than eligible 
food; or the exchange of firearms, ammunition, explosives, or controlled 
substances, as defined in section 802 of title 21, United States Code, 
for coupons.
    Underissuance means the amount by which the allotment to which the 
household was entitled exceeds the allotment which the household 
received.
    Underissuance error rate. (See Underpayment error rate.)
    Underpayment error rate means the ratio of the value of allotments 
underissued to recipient households to the total value of allotments 
issued in a fiscal year by a State agency.
    Universe means all units for which information is desired.
    Variance means the incorrect application of policy and/or a 
deviation between the information that was used to authorize the sample 
month issuance and the verified information that should have been used 
to calculate the sample month issuance.
    Wholesale food concern means an establishment which sells eligible 
food to retail food stores or to meal services for resale to households.

[Amdt. 132, 43 FR 47882, Oct. 17, 1978]

    Editorial Note: For Federal Register citations affecting Sec. 271.2, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.