[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR271.2]



[Page 547-556]

 

                          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 548]]



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 proj ect 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



[[Page 549]]



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 550]]



    (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 551]]



    (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 552]]



    (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.



[[Page 553]]



    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 554]]



refer to provisions of this subchapter unless otherwise specified.

    Reservation means the geographically defined area or areas over 

which an ITO exercises governmental juris diction 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.



[[Page 555]]



    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 

Indian tribal 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



[[Page 556]]



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.