[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: 7CFR273.24]

[Page 779-783]
 
                          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.
    (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 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.

[[Page 780]]

    (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.''
    (c) Exceptions. The time limit does not apply to an individual 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 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.

[[Page 781]]

    (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.
    (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

[[Page 782]]

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. (1) For the purpose of establishing the 
15 percent exemption for each State agency, the following terms are 
defined:
    (i) Caseload means the average monthly number of individuals 
receiving food stamps during the 12-month period ending the preceding 
June 30.
    (ii) Covered individual means a food stamp recipient, or an 
applicant denied eligibility for benefits solely because he or she 
received food stamps during the 3 months of eligibility provided under 
paragraph (b) of this section, who:
    (A) Is not exempt from the time limit under paragraph (c) of this 
section;
    (B) Does not reside in an area covered by a waiver granted under 
paragraph (f) of this section;
    (C) Is not fulfilling the work requirements as defined in paragraph 
(a)(1) of this section; and
    (D) Is not receiving food stamp benefits under paragraph (e) of this 
section.
    (2) Subject to paragraphs (h) and (i) of this section, a State 
agency may provide an exemption from the 3-month time limit of paragraph 
(b) of this section for covered individuals. Exemptions do not count 
towards a State agency's allocation if they are provided to an 
individual who is otherwise exempt from the time limit during that 
month.
    (3) For each 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, based on FY 1996 
quality control data and other factors FNS deems appropriate, and 
adjusted by FNS to reflect changes in:
    (i) The State agency's caseload; and
    (ii) FNS's estimate of changes in the proportion of food stamp 
recipients covered by waivers granted under paragraph (f) of this 
section.
    (4) State agencies must not discriminate against any covered 
individual for reasons of age, race, color, sex, disability, religious 
creed, national origin, or political beliefs. Such discrimination is 
prohibited by this part, the Food Stamp Act, the Age Discrimination Act 
of 1975 (Public Law 94-135), the Rehabilitation Act of 1973 (Public Law 
93-112, section 504), and title VI of the Civil Rights Act of 1964 (42 
U.S.C. 2000d). Enforcement action may be brought under any applicable 
Federal law. Title VI complaints will be processed in accord with 7 CFR 
part 15.
    (h) Adjustments. FNS will make adjustments as follows:
    (1) Caseload adjustments. FNS will adjust the number of exemptions 
estimated for a State agency under paragraph (g)(2) 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 each fiscal year, FNS will adjust 
the number of exemptions allocated to a

[[Page 783]]

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 will 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 will 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 will 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)(8).
    (j) Other Program rules. Nothing in this section will make an 
individual eligible for food stamp benefits if the individual is not 
otherwise eligible for benefits under the other provisions of this part 
and the Food Stamp Act.

[Amdt. 379, 64 FR 48257, Sept. 3, 1999, as amended at 66 FR 4469, Jan. 
17, 2001; 67 FR 41618, June 19, 2002]