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Proposed rule: Verification of Eligibility for Public Benefits DEPARTMENT OF JUSTICE Immigration and Naturalization Service

[Federal Register: August 4, 1998 (Volume 63, Number 149)] [Proposed Rules] [Page 41662-41686]
From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr04au98-36]
[[Page 41662]]
DEPARTMENT OF JUSTICE Immigration and Naturalization Service
8 CFR Part 104 [INS No. 1902-98; AG Order No. 2170-98] RIN 1115-AE99 
Verification of Eligibility for Public Benefits
AGENCY: Immigration and Naturalization Service, Justice.
ACTION: Proposed rule.
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SUMMARY: This rule amends the Immigration and Naturalization Service 
(``Service'') regulations by establishing a new part requiring certain 
entities that provide Federal public benefits (with certain exceptions) 
to verify, by examining alien applicants' evidence of alien 
registration and by using a Service automated verification system that 
the applicants are eligible for the benefits under welfare reform 
legislation. The rule also sets forth procedures by which a State or 
local government can verify whether an alien applying for a State or 
local public benefit is a qualified alien, a nonimmigrant, or an alien 
paroled into the United States for less than 1 year, for purposes of 
determining whether the alien is eligible for the benefit. In addition, 
the rule establishes procedures for verifying the U.S. nationality of 
individuals applying for benefits in a fair and nondiscriminatory 
manner.

DATES: Written comments must be submitted on or before October 5, 1998.

ADDRESSES: Please submit written comments, in triplicate, to the 
Director, Policy Directives and Instructions Branch, Immigration and 
Naturalization Service, 425 I Street NW., Room 5307, Washington, DC 
20536. To ensure proper handling, please reference INS No. 1902-98 on 
your correspondence. Comments are available for public inspection at 
the above address by calling (202) 514-3048 to arrange for an 
appointment.

FOR FURTHER INFORMATION CONTACT: John E. Nahan, Director, SAVE Branch, 
Immigration and Naturalization Service, 425 I Street NW., ULLICO 
Building, 4th Floor, Washington, DC 20536, telephone (202) 514-2317.

SUPPLEMENTARY INFORMATION:
Statutory Authority

    Section 432 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (``PRWORA''), Pub. L. 104-193, as amended by 
section 504 of the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (``IIRIRA''), Pub. L. 104-208, and by 
section 5572 of the Balanced Budget Act of 1997, Pub. L. 105-33, 8 
U.S.C. 1642, requires the Attorney General to promulgate regulations 
requiring verification that a person applying for a Federal public 
benefit (subject to certain exceptions) is a qualified alien and is 
eligible to receive the benefit. The same statutory provision requires 
the Attorney General to promulgate regulations that set forth the 
procedures by which a State or local government can verify whether an 
alien applying for a State or local public benefit is a qualified 
alien, a nonimmigrant under the Immigration and Nationality Act, 8 
U.S.C. 11001 et seq. (the ``Act''), or an alien paroled into the United 
States for less than 1 year, for purposes of determining whether the 
alien is eligible for the benefit. In addition, 8 U.S.C. 1642(a)(2) 
requires the Attorney General to establish procedures for a person 
applying for a Federal public benefit to provide proof of citizenship 
in a fair and nondiscriminatory manner.

Background

    Section 121 of the Immigration Reform and Control Act of 1986 
(``IRCA''), Pub. L. 99-603, codified at 42 U.S.C. 1320b-7 and 
elsewhere, required the Service to offer, and certain agencies 
determining eligibility for a number of specified Federal public 
benefits to use, an automated or other system to verify the immigration 
status of alien applicants. Before the passage of IRCA, the Service had 
developed and tested through pilot programs an automated verification 
system entitled Systematic Alien Verification for Entitlements 
(``SAVE''). In response to IRCA, the Service has further refined and 
operated SAVE on a large scale for nearly 10 years.
    The PRWORA requires further expansion of Service verification 
programs to all agencies administering Federal public benefits that are 
affected by PRWORA's new limitations on alien eligibility on a 
mandatory basis, and to agencies administering affected State and local 
public benefits on a voluntary basis. To the extent feasible, the 
regulations implementing PRWORA's verification provision must adopt the 
SAVE approach. The PRWORA, as amended in August 1997 by the Balanced 
Budget Act of 1997, Pub. L. 105-33, also required the Attorney General 
to issue interim guidance for the use of benefit granting agencies. On 
November 17, 1997, the Attorney General complied with that directive by 
issuing a Notice entitled Interim Guidance on Verification of 
Citizenship, Qualified Alien Status and Eligibility Under Title IV of 
the Personal Responsibility and Work Opportunity Reconciliation Act of 
1996, 62 FR 61344 (the ``Interim Guidance'').
    Congress directed in 8 U.S.C. 1642 that the Attorney General, by 
February 22, 1998 and after consultation with the Secretary of Health 
and Human Services, promulgate regulations requiring verification that 
a person applying for a Federal public benefit is a qualified alien and 
is eligible to receive the benefit. The same deadline applies to the 
establishment of fair and nondiscriminatory procedures for a person to 
provide proof of citizenship. The statutory deadline for regulations 
setting forth the procedures by which a State or local government can 
verify whether an alien applying for a State or local public benefit is 
eligible under PRWORA was November 3, 1997. Meeting these deadlines was 
not possible, particularly due to the need for extensive interagency 
consultation. In order to bring itself into compliance with these 
obligations, it is necessary for the Service to limit the public 
comment period for this rule to 60 days.

Analysis of the Rule

    The rule is designed to provide effective, flexible, efficient, 
fair, nondiscriminatory, and user-friendly methods by which government 
agencies and their contractors, agents, or designees (other than 
nonprofit charitable organizations) that provide public benefits 
(``benefit granting agencies'') may carry out their responsibilities to 
ensure that those benefits are provided only to those persons eligible 
to receive them under Federal law. As 8 U.S.C. 1642 requires, the 
verification system is closely based upon the preexisting SAVE program 
operated by the Service. The rule provides, to the extent possible, 
procedures for verification of U.S. nationality that are similar to 
those for verification of alien status, although with some major 
differences, such as the unavailability of SAVE or any similar 
automated system for verifying U.S. nationality.
    There are four subparts to the rule. Subpart A provides general 
information and requirements such as applicable definitions, the scope 
of verification obligations, and the interrelationship of the rule with 
other statutes and rules governing benefit programs. Subpart B provides 
for the execution of a written declaration of status by a public 
benefit applicant, followed by the examination of an alien registration 
document, or documentary evidence of U.S. nationality, presented by an 
alien applicant. Once the identity and

[[Page 41663]]

registration of an alien applicant are confirmed by examining 
documentation, a benefit granting agency will verify the applicant's 
immigration status through the automated SAVE system, as set forth in 
Subpart C. Benefit granting agencies will rely upon the documentary 
evidence, or other evidence of U.S. nationality as provided in Subpart 
B, to verify U.S. nationality, and will not use Subpart C procedures 
for this purpose. Finally, subpart D provides verification information 
and procedures for factors relevant to certain aliens' public benefit 
eligibility under PRWORA, such as veteran status, that do not relate to 
the aliens' immigration status under the Act and are consequently not 
verifiable through Service records.
    Benefit granting agencies providing Federal public benefits must be 
in full compliance with the verification requirements within 2 years of 
promulgation of the rule unless otherwise exempted. Benefit granting 
agencies providing State or local benefits have the option whether to 
avail themselves of these verification procedures entirely or in part. 
The subdivision of the rule into four subparts is designed, in part, to 
enhance their flexibility in determining which verification methods 
suit their needs, and to provide appropriate dividing points to avoid 
potentially unfair or inconsistent verification. This aspect of the 
rule is discussed further in the following section-by-section 
discussion of the entire rule. The section-by-section discussion does 
not exhaustively address every aspect of the rule; rather, it 
highlights particular issues and points that are likely to be of 
special interest to benefit granting agencies and the public. Note that 
as section numbers have been reserved for later use at the end of each 
subpart, numbering is not consecutive between subparts.
    The Service also emphasizes the continued importance and 
applicability of the Interim Guidance. Although the essential purposes 
of this rule and the Interim Guidance are the same--to comply with 
statutory mandates assigned by PRWORA to the Department of Justice and 
to assist benefit granting agencies in complying with PRWORA--the 
specific functions of the two documents are quite different. This rule 
is primarily limited to specific procedures for benefit granting 
agencies to obtain access to Service or other information that they 
need in order to carry out their responsibilities under PRWORA. In 
contrast, the function of the Interim Guidance was to provide to 
benefit granting agencies with a broader range of relevant information 
on U.S. citizenship, Service documents, civil rights, appropriate 
treatment of alien victims of domestic violence, application of PRWORA 
provisions relating to Federal means-tested public benefits, and other 
important topics, as well as specific, interim procedures for 
verification (particularly for agencies that are not participants in 
SAVE)
    For this reason, the Service has not included within this rule some 
of the information provided in the Interim Guidance--not because the 
information is irrelevant or unimportant, but because it is not 
essential to a regulation requiring verification through the SAVE 
system. For example, the detailed information on Service documents 
included in the Interim Guidance, designed for use by benefit granting 
agencies without access to the SAVE system, is not necessary in a rule 
that relies on the registration document requirement coupled with an 
automated inquiry to the Service to provide relevant information on an 
alien applicant's immigration status. However, the Interim Guidance may 
still be consulted and used as a source of relevant information on the 
documents with which benefit granting agencies may come into contact. 
Similarly, the Interim Guidance provides extensive information and 
guidance on processing applicants who may be victims of domestic 
violence, while the rule is limited to requirements and means for 
obtaining relevant Service information. The two documents should be 
used in tandem--the rule as the applicable legal verification 
requirement, and the Interim Guidance as a how-to guide on appropriate 
handling of these applications.
    In short, the only parts of the Interim Guidance that should be 
viewed as superseded and replaced by this rule are those portions of 
the Interim Guidance that discuss specific verification options or 
procedures, and any conflict between the Interim Guidance and the rule 
should be resolved in favor of this rule. For example, upon the 
effective date of the regulatory verification requirement, a Federal 
benefit granting agency must not rely solely upon its examination of an 
alien applicant's documentation, except as may be specifically 
authorized pursuant to the rule. To the extent the Interim Guidance 
generally allows a benefit granting agency to rely solely upon its 
examination of alien documentation, it will no longer be applicable. 
However, the Interim Guidance remains an important source of valuable 
information and guidance for benefit granting agencies as a supplement 
to this rule, particularly during the 2-year period provided for 
Federal benefit granting agencies to bring themselves into full 
compliance with the rule, but during which they are not required to use 
the SAVE system. The Interim Guidance also remains a useful tool for 
benefit granting agencies administering State or local public benefits, 
which have the option whether to use the procedures in this rule in 
whole or in part.
    The Service has made the rule as simple and flexible as possible in 
order to give benefit granting agencies the maximum freedom of action 
to administer their own programs in a way that is consistent with the 
statutory mandate to the Department of Justice to promulgate 
regulations on verification. To the extent possible, the Service has 
also attempted to promulgate a rule that will not require frequent 
amendment as benefit eligibility criteria, or technical details of 
Service or other documentation or of the SAVE system, change over time.

Subpart A--General

Section 104.1  Definitions
    In an effort to provide procedures that are as clearly, briefly, 
and simply drafted as possible, the rule makes substantial use of 
regulatory definitions. Some of these definitions are discussed further 
below, where applicable.
Section 104.2  Requirement To Verify Eligibility for Federal Public 
Benefit
    This section implements the statutory directive in 8 U.S.C. 1642 to 
require verification of eligibility for Federal public benefits. 
Benefit granting agencies determining eligibility for Federal public 
benefits must be in full compliance with all four subsections of the 
rule within 2 years of promulgation unless otherwise exempted. The 2-
year time frame for compliance is statutory, but PRWORA specifically 
refers only to states. In order to provide consistent application of 
the rule, the rule uses the same 2-year deadline for all Federal public 
benefit granting agencies, whether or not they are states. Federal 
agencies that provide Federal public benefits directly are expected to 
lead the way in implementing this rule by making all reasonable efforts 
to bring their programs into compliance earlier than the two-year 
deadline. Nothing prevents any other Federal benefit granting agency, 
including any state, from coming into compliance sooner than 2 years 
from promulgation.
    This section does not affect any preexisting legal obligation under 
IRCA or any other statute to verify alien eligibility for certain 
Federal public

[[Page 41664]]

benefits using SAVE. Benefit granting agencies that are required by 
IRCA to use SAVE must continue to do so. To the extent the rule differs 
from current SAVE procedures, however, the 2-year time frame for 
implementation and compliance applies to the new procedures. Although 
the rule is based on the current SAVE system to the extent possible, 
there are a number of necessary new features, such as time limits 
applicable to the submission of SAVE verification requests. The Service 
will work with current SAVE users to help ensure their smooth and 
timely implementation of these new aspects of the program.
    The PRWORA, and consequently this rule, affect programs previously 
covered by IRCA's provisions relating to SAVE, but PRWORA did not 
expressly supersede or repeal IRCA. Those provisions of IRCA that are 
not inconsistent with PRWORA--such as the requirement that certain 
programs verify alien eligibility through SAVE--have continued effect. 
The IRCA provisions that are inconsistent with section 432 or other 
sections of PRWORA, such as section 121(c)(4)(B) of IRCA's grant of 
authority to certain secretaries of Federal departments to exempt 
covered programs from SAVE, are superseded by the later enactment. 
Existing waivers under authority of section 121(c)(4)(B) must expire no 
later than the date that is 24 months after promulgation of this rule.
    Note that the exception of nonprofit charitable organizations from 
verification requirements derives from the definition of ``benefit 
granting agency'' in Sec. 104.1 that excludes such organizations. 
Section 1642(d) of title 8, United States Code, states that a, 
nonprofit charitable organization is not required under Title IV of 
PRWORA to determine, verify, or otherwise require proof of eligibility 
of any applicant for Federal or State or local public benefits based on 
the applicant's status as a national of the United States or qualified 
alien, subject to such verification regulations as the Attorney General 
may subsequently promulgate. Absent further regulatory action by the 
Attorney General, nonprofit charitable organizations are therefore not 
required, under PRWORA and this rule, to verify an applicant's 
immigration or citizenship status before providing Federal, State, or 
local public benefits. Moreover, State and local governments may not 
impose any verification requirements upon nonprofit charitable 
organizations pursuant to Title IV of PRWORA for Federal, State, or 
local public benefits.
    In addition to their exclusion from the definition of ``benefit 
granting agency,'' a nonprofit charitable organization (or a benefit 
granting agency) may be exempt from any verification requirement in 
many cases for the separate and independent reason that the benefit(s) 
it provides are ``community programs necessary for protection of life 
or safety,'' or are otherwise exempt from PRWORA's substantive 
limitations on alien eligibility.
    In addition to who must verify, this section (using Sec. 104.1's 
definitions) also addresses what benefits are subject to the 
verification requirement. According to the statutory structure of 
PRWORA, there are three different levels of possible exemption of a 
program from mandatory verification. The first is if the program does 
not provide a Federal public benefit. The definition of ``Federal 
public benefit'' in Sec. 104.1(i) identifies a number of programs that 
are not Federal public benefits. This definition is the same as the 
statutory one at 8 U.S.C. 1611(c), except for the addition of one 
exception further described in the following paragraph. Second, even if 
a benefit is a Federal public benefit, it may be one to which PRWORA's 
limitations on alien eligibility--and therefore the need to verify--do 
not apply under 8 U.S.C. 1611(b). The rule uses the term ``exempt 
Federal public benefit'' to refer to such benefits, and defines it in 
Sec. 104.1. Third, miscellaneous provisions of PRWORA exclude certain 
programs entirely, such as foreign assistance or a basic public 
education, without clearly stating whether these programs constitute 
``public benefits.'' Section 104.9 identifies these programs.
    The Service anticipates that applying the regulatory definition of 
Federal public benefit at Sec. 104.1 (which parallels the statutory 
definition) and its exceptions to determine whether or not a benefit 
granting agency is subject to the verification requirements imposed by 
this regulation will be a matter of particular interest and (in some 
cases) difficulty for benefit granting agencies. The Service will give 
all appropriate deference to benefit granting agencies' applications of 
the definition to the programs they administer, or to applications 
provided by another Federal agency that oversees or administers a 
Federal benefit program even if the Federal agency does not itself 
determine the eligibility of individual applicants. The statutory and 
regulatory definition is: ``(1) any grant, contract, loan, professional 
license, or commercial license provided by an agency of the United 
States or by appropriated funds of the United States; or (2) any 
retirement, welfare, health, disability, public or assisted housing, 
post-secondary education, food assistance, unemployment benefit, or any 
other similar benefit for which payments or assistance are provided to 
an individual, household, or family eligibility unit by an agency of 
the United States or by appropriated funds of the United States.'' The 
definition further specifies a number of programs, or types of program, 
that are not Federal public benefits. Note in particular the exception 
for ``police, fire, ambulance, transportation (including paratransit), 
sanitation, or other regular, widely available public services or 
accommodations.'' This exception, is intended to identify and summarize 
certain types of government programs that are not ``similar 
benefit[s]'' under part (2) of the definition, and therefore are not 
Federal public benefits. The fact that a program is not identified in 
this exception should not be interpreted to mean that it necessarily is 
a ``similar benefit'' to the benefits specifically enumerated in part 
(2) of the definition.
    In determining whether a program provides a Federal public benefit, 
a benefit granting agency should first consider whether the program 
provides one of the benefits expressly enumerated in either part (1) or 
(2) of the definition. In all cases, this analysis should be made in 
light of the specific programs also identified as not being Federal 
public benefits; if a program is covered by one or more of these 
exceptions, it is not a Federal public benefit even if it meets the 
more general definition is enumerated in part (1) or (2). Under part 
(1), if the program provides a grant, contract, loan, professional 
license, or commercial license to an individual, either through a 
Federal agency or with federally appropriated funds, then it provides a 
Federal public benefit. If the program is not of the type enumerated in 
part (1), a benefit granting agency should go on to consider whether it 
provides a benefit covered by part (2).
    To fall within part (2), the benefit must be one of the types of 
benefits described (retirement, welfare, health, disability, public or 
assisted housing, post-secondary education, food assistance, 
unemployment benefit, or any other similar benefit), it must be 
provided by a Federal agency or by federally appropriated funds, and it 
must be provided to one of the enumerated categories of recipients (an 
individual, household, or family eligibility unit). Thus, for example, 
if an agency provides an unemployment benefit to an individual using 
federally appropriated funds, the definition is

[[Page 41665]]

satisfied. If the program provides payments or assistance to an 
individual, household, or family eligibility unit through a Federal 
agency or with federally appropriated funds, but the benefits are not 
expressly enumerated above, the agency must consider whether the 
benefits are ``similar'' to one of the benefits enumerated in part 2 of 
the definition (b). Benefit granting agencies subject to Federal agency 
oversight or administration should consult with the appropriate Federal 
agency.
    Benefit granting agencies should also consider who is actually 
receiving the benefits. Although PRWORA prohibits certain aliens from 
receiving non-exempted Federal public benefits, it does not prohibit 
governmental or private entities from receiving Federal public benefits 
that they might then use to provide assistance to aliens, as long as 
the benefit ultimately provided to the non-qualified aliens does not 
itself constitute a Federal public benefit. Thus, if a local agency 
were to receive a Federal ``grant,'' which is expressly identified as a 
Federal public benefit, but the agency uses it to provide police 
services, fire protection, libraries, parks, or other benefits that are 
not themselves Federal public benefits, the prohibition would not 
apply. In contrast, if the agency uses the grant to provide a Federal 
public benefit, such as a loan or welfare payments to an individual, 
the prohibition would apply and non-qualified aliens would be 
ineligible for the Federal public benefit.
    Benefit granting agencies must keep in mind that, due to PRWORA's 
statutory structure, there are three lists of programs exempt from 
verification requirements. One is contained within the regulatory 
definition of ``Federal public benefit''; programs specifically 
excepted in the definition there are not Federal public benefits in the 
first instance. The second list is of programs that--although they are 
Federal public benefits--are exempt from PRWORA's verification 
requirements. This list of programs is found in the regulatory 
definition of ``exempt Federal public benefit.'' Both definitions must 
be consulted in order to determine whether a benefit is a Federal 
public benefit for which verification of PRWORA eligibility is 
required. With respect to the definition of exempt Federal public 
benefits, note in particular the inclusion of ``a community program 
necessary for protection of life or safety'' as a program that is not a 
Federal public benefit subject to verification requirements. A 
community program necessary for protection of life or safety is itself 
a term that is defined in the rule. This definition incorporates and 
promulgates for purposes of the rule the designations made by 
Specification of Community Programs Necessary for Protection of Life or 
Safety under Welfare Reform Legislation, 61 FR 45985 (Aug. 30, 1996). 
The third list of exempt programs is found in Sec. 104.9; these are 
programs that PRWORA does not specifically identify as Federal public 
benefits (or as not Federal public benefits) but that are excluded from 
the PRWORA's limitations on alien eligibility.
    Some public benefits have more than one funding source. Note that 
the definition of ``State or local public benefit'' in Sec. 104.1 
excludes Federal public benefits, consistent with 8 U.S.C. 1621(c)(3). 
In other words, a benefit granting agency should first consider whether 
a benefit is a Federal public benefit. If it is, then Sec. 104.2 
applies. A Federal public benefit cannot also be a State or local 
public benefit. If the benefit is not a Federal public benefit, then 
the agency should consider whether it is a State or local public 
benefit. If so, then Sec. 104.3 applies.
    In general, this section requires careful application of the 
defined terms ``benefit granting agency,'' ``Federal public benefit,'' 
``exempt Federal public benefit,'' ``applicant,'' and ``eligible 
qualified alien'' in order to determine conclusively whether 
verification is required.
Section 104.3  Option To Verify Eligibility for State or Local Public 
Benefit
    The major distinction between this section and Sec. 104.2 (apart 
from the substitution of defined terms relating to State or local 
rather than Federal public benefits) is the substitution of ``may'' for 
``shall.'' Consistent with the differences between 8 U.S.C. 1642(a)(1) 
and (a)(3), verification of immigration status for the purpose of State 
or local public benefits is a service that is available to those 
benefit granting agencies, rather than a requirement of Federal law. 
State or local benefit granting agencies may choose, or not, to use the 
document examination procedures provided by subpart B. If they choose 
to use those procedures they may rely solely on them, or they may also 
take advantage of the Service verification procedures provided through 
the SAVE program as discussed in subpart C. However, because document 
examination is an integral part of SAVE that both ensures that the 
information provided to the benefit granting agency by the Service 
relates to the applicant, and is the means of obtaining and confirming 
the information necessary to make the automated SAVE inquiry, a State 
or local benefit granting agency may not use SAVE with respect to a 
State or local public benefit unless it complies with subpart B for all 
applicants for the benefit. Similarly, as subpart D is for the most 
part pointless without a determination of qualified alien status, use 
of subpart D procedures also requires compliance with subpart B as a 
precondition.
    The PRWORA did not specifically address the establishment of 
procedures for verifying the U.S. nationality of applicants for State 
or local public benefits. However, especially in light of 8 U.S.C. 
Sec. 1625's general authorization to states to require applicants to 
provide proof of eligibility, there is no reason why the fair and 
nondiscriminatory procedures established for providers of Federal 
public benefits should not also be available to providers of State or 
local public benefits that wish to use them.
    The PRWORA's requirements relating to State or local public 
benefits (such as 8 U.S.C. 1621(a), which limits the eligibility of 
certain aliens for such benefits) are an exercise of the Federal 
immigration power. However, PRWORA gives extensive discretion to the 
states to adapt or modify these requirements to meet their own needs, 
consistent with its overall focus on giving the states substantial 
latitude and authority in the area of welfare reform. For example, a 
state may reinstate the eligibility of aliens not lawfully present in 
the United States for State and local public benefits for which they 
are ineligible under PRWORA by enacting a State law to that effect 
after August 22, 1996. This may result in substantial differences in 
alien eligibility for State and local public benefits among the several 
states, and therefore in different verification needs.
    Therefore, this rule does not mandate SAVE participation, or any 
other specific requirements for verification of State or local public 
benefit eligibility, except that to the extent states choose to take 
advantage of SAVE they must comply with its requirements. States may 
establish their own independent verification procedures, which may 
include imposing verification requirements on persons or entities 
(other than requirements imposed under PRWORA on nonprofitable 
charitable organizations) that which provide State or local public 
benefits.
Section 104.4  Verification in Order T Determine Nature of Benefit
    The rule recognizes the fact that certain programs are not Federal 
or State or local public benefits, or are exempt public benefits, with 
regard to certain alien applicants--and are therefore not

[[Page 41666]]

subject to a verification obligation--for reasons that relate to the 
applicants' immigration status. A benefit granting agency cannot 
determine with confidence whether the exception applies if it does not 
determine that status. Therefore, in order to determine that 
verification is not necessary, it may be necessary to determine an 
applicant's immigration status. For example, a ``Federal public 
benefit'' does not include any contract or license ``for a nonimmigrant 
whose visa for entry is related to such employment in the United 
States.'' Obviously, a benefit granting agency cannot determine whether 
this exception applies to an application for a contract or license 
without knowing the applicant's immigration status. This section allows 
the verification procedures to be used to the extent necessary to 
determine whether a particular program is a benefit subject to a 
verification requirement. If so, verification of the applicant's 
eligibility should proceed. If not, further verification should not be 
conducted regarding the applicant's eligibility under PRWORA once that 
determination has been made.
Section 104.5  Determination Made by Benefit Granting Agency
    The underlying philosophy of the Service's SAVE program has been 
that the Service provides information relevant to the benefit 
eligibility determination, but that the responsibility for determining 
eligibility for the benefit should remain with the benefit granting 
agency. That philosophy is maintained in this rule. Depending on what 
type of public benefit they provide, benefit granting agencies are 
either required to, or have the option to, or in some cases (such as 
exempt public benefits) may not, verify applicants' eligibility for the 
benefit under PRWORA. The procedures are designed to ensure that 
benefit granting agencies obtain the information they need regarding 
applicants' immigration status, or other factors relevant to 
eligibility under PRWORA, and that the information is accurate. 
However, benefit granting agencies are in the best position to apply 
this information to public benefit eligibility determinations regarding 
the public benefits they administer. Eligibility under PRWORA is simply 
one additional set of eligibility criteria for benefit granting 
agencies to apply, just as they need to determine income levels, 
residency, age or disability, or any other criteria that may be 
applicable to public benefits. Just as it is with those criteria, 
benefit eligibility determination under PRWORA, whether interim or 
final, is best left to the benefit granting agency.
    Of course, benefit granting agencies must apply any other source of 
legal authority that governs eligibility determinations for their 
particular program. For example, IRCA's statutory provisions regarding 
Medicaid, unemployment compensation, and other pre-PRWORA SAVE-mandated 
Federal benefits generally prohibit benefit granting agencies that 
determine eligibility for those benefits from delaying, denying, 
reducing, or terminating benefits pending Service verification. E.g., 
42 U.S.C. 1320b-7(d)(4).
Section 104.6  Contesting an Adverse Determination
    The general intention of this rule is to modify as little as 
possible established procedures already in existence for benefit 
granting agencies to consider claims of erroneous benefit denials. 
However, the rule does include, in the interest of accuracy and 
fairness to applicants, certain minimum requirements for public benefit 
denials based upon information provided by the Service. If a public 
benefit is denied on the basis of such information, the benefit 
granting agency must provide adequate written notice to the applicant 
explaining the basis of the denial, how to contact the Service to seek 
correction if the applicant believes the information to be erroneous, 
and (at the discretion of the benefit granting agency) other 
appropriate information on appeal rights and procedures.
    The Service will provide to benefit granting agencies appropriate 
contact information (an address and/or telephone number) to which 
applicants may direct inquiries regarding denials of benefits based on 
Service information. The rule, in the interest of flexibility, does not 
specify the precise method of contacting the Service when there is a 
dispute over the accuracy of a Service record a benefit granting agency 
has relied upon, but that information will be provided through SAVE 
user manuals or by other means to benefit granting agencies. An 
applicant choosing to contact the Service in this manner must provide 
sufficient identifying information to allow the Service to access his 
or her record, and to contact the benefit granting agency regarding the 
case. The Service will review the information provided that was the 
basis of the denial, taking into account any information provided by 
the applicant regarding possible error by the Service, and will respond 
to the applicant within 10 business days of receiving the request and 
supporting information. If the Service determines that information 
previously provided to the benefit granting agency regarding the 
applicant was incorrect, the Service will provide corrected information 
to the benefit granting agency.
    This service is intended to assist in quickly and efficiently 
resolving questions relating to possible error in the information 
provided to the benefit granting agency about the applicant's present 
immigration status with the Service (for example, possible delay in 
updating a Service database with a change of status that has been 
granted). It is not meant in any way to provide any avenue of 
application, petition, relief, or appeal with respect to any change of 
status, removal proceeding, or any other matter relating to any person 
that has or may in future come before the Service or any other 
component of the Department of Justice pursuant to the Act and title 8 
of the Code of Federal Regulations. In other words, the relevant 
question for the purpose of this section (and, indeed, for public 
benefit verification generally) is what the applicant's status is, not 
what the applicant's status should be.
    If the applicant contests the denial in a timely manner through the 
benefit granting agency's appeal procedures on the grounds that the 
Service information is incorrect, the benefit granting agency must seek 
assistance from the Service to resolve the situation. The reference to 
a claim that Service information is incorrect is meant to exclude from 
this requirement a situation in which the applicant does not contest 
his or her status as indicated by Service records, but disputes whether 
that status makes him or her ineligible for the benefit. In that case, 
there is no requirement to contact the Service for further assistance. 
The benefit granting agency must provide to the Service any new 
information in its possession regarding the claim of error. The Service 
will respond within 10 business days.
    The benefit granting agency may not make a final determination of 
the appeal until the Service has provided its full response to its 
request for further information, and shall take into account any 
correction of Service information to the extent that it is relevant to 
the applicant's eligibility. Except as specifically provided, this 
section does not supplant or modify benefit granting agencies' normal 
procedures, including any requirements, rights, or procedures regarding 
notice in a language other than English. It is not meant to provide a 
right of appeal if the benefit granting agency does not grant that 
right, but to require appeals using benefit granting agencies' 
procedures that put at issue

[[Page 41667]]

the accuracy of Service information to include confirmation of that 
information. Providing means for an applicant to contact the Service 
directly does not extend or toll any deadline for filing an agency 
appeal regarding a benefit denial. This section is not meant to imply 
in any way that benefit granting agencies may not contact the Service 
with questions or concerns regarding a verification unless the 
applicant has filed a formal appeal of a benefit denial.
Section 104.7  Nonexclusivity of Procedures
    The rule reiterates (in Sec. 104.20) the provision in section 
121(c) of IRCA that verification should be conducted without regard to 
the sex, color, race, religion, or nationality of the applicant (with 
the addition of disability). Rights and remedies regarding 
discrimination and privacy with respect to governmental programs 
already exist and are enforced with regard to public benefits under a 
multitude of other laws. Section 104.7 emphasizes that nothing in the 
rule is meant to interfere with those rights and remedies. Similarly, 
the rule does not displace any other provisions of law or policy 
relating to the provision of public benefits, including any 
requirements or procedures for verification of eligibility, except that 
the rule preempts any directly inconsistent Federal regulation or 
policy or provision of State law. As stated in 8 U.S.C. 1643, PRWORA 
(and therefore this rule) does not create any entitlement to any public 
benefit; nor does it affect the application of any eligibility 
criterion under law other than alienage.
Section 104.8  Enforcement
    There are no specific enforcement procedures for this rule. This 
does not mean, however, that failure to comply will not have negative 
consequences for a benefit granting agency. For example, pursuant to 
the general authority of the Attorney General to enforce Federal law, 
the United States could when necessary and propriate seek equitable 
relief in a district court to enforce compliance with PRWORA and this 
rule by a benefit granting agency. A benefit granting agency could 
potentially also be subject to enforcement procedures or other 
consequences of noncompliance as provided by a Federal agency 
administering a Federal public benefit program.
Section 104.9  Inapplicability to Certain Programs
    Various sections of PRWORA exclude certain programs from the 
statutory limitations on alien eligibility without specifying whether 
the programs are, or are not Federal, State, or local ``public 
benefits.'' 8 U.S.C. 1615(a), 1643. Rather than attempt unnecessarily 
to answer that question for the purpose of placing these programs into 
either Sec. 104.1's list of programs that by definition are not 
``Federal public benefits,'' or Sec. 104.1's list of ``exempt Federal 
public benefits'' (or the equivalent definitions for State or local 
public benefits), the Service has instead placed those programs in this 
section. No PRWORA verification requirement applies to them, regardless 
whether they are Federal, State, or local public benefits. The 
exemption of ``a basic public education'' from the rule is intended to 
implement, with regard to verification obligations, the statutory 
directive in 8 U.S.C. 1643(a)(2) that nothing in PRWORA ``may be 
construed as addressing alien eligibility for a basic public education 
as determined by the Supreme Court of the United States under Plyler v. 
Doe, (457 U.S. 202) (1982).'' Benefit granting agencies that need to 
determine whether a Federal program related to education constitutes a 
``Federal public benefit'' should obtain guidance from the U.S. 
Department of Education for its programs, or from another Federal 
agency administering an education program with respect to such program.
Section 104.10  Verification Requirement for Certain Nutrition Programs
    Section 840 of PRWORA, 7 U.S.C. 2020(p), amended the Food Stamp Act 
of 1977 to release state agencies from IRCA's preexisting requirement 
that they use the SAVE system to verify alien eligibility for Food 
Stamps. This section of the rule reconciles section 840 with the 
statutory verification requirement by stating that benefit granting 
agencies providing Food Stamps are not required to use Subpart C 
procedures, although they may do so. They are, however, subject to 
those other subparts of the rule that do not pertain to the SAVE 
system.
    The PRWORA also gave states the option whether to provide the 
nutrition benefits identified in 8 U.S.C. 1615(b) to individuals other 
than nationals of the United States or qualified aliens. For this 
reason, the rule treats these Federal programs in the same manner as 
State or local public benefits. Benefit granting agencies providing 
these benefits may, but are not required to, use the verification 
procedures to the extent that U.S. nationality or qualified alien 
status is relevant to an eligibility determination in any state. 
Treatment of these programs in the same manner as State or local public 
benefits is not meant in any way to suggest that they are State or 
local public benefits rather than Federal public benefits, but only 
that because of their special situation under PRWORA the rules 
pertaining to the former rather than the latter best suit them.

Subpart B--Declaration of Applicant and Examination of Documents

Section 104.20  Scope of Verification Obligation
    A benefit granting agency's responsibility and authority to verify 
eligibility under this rule is limited to verification that is relevant 
to eligibility for the public benefit under PRWORA. Under PRWORA (with 
certain limited exceptions), U.S. nationality or eligible qualified 
alien status is relevant to Federal public benefit eligibility unless 
and until some other ground of ineligibility exists. This section gives 
benefit granting agencies maximum flexibility with regard to verifying 
eligibility under PRWORA as compared to determining other eligibility 
criteria, as long as that flexibility is exercised in a 
nondiscriminatory manner. For example, a benefit granting agency may 
choose to verify whether all applicants for a Federal disability 
benefit are nationals of the United States or eligible qualified aliens 
before undertaking the potentially more burdensome and intrusive 
determinations as to disability, or it may choose to determine whether 
the applicants meet specific program requirements before verifying U.S. 
nationality or alien status, but the agency may not vary its procedures 
depending on whether the applicant looks or sounds foreign, or on other 
improper criteria. Benefit granting agencies must verify PRWORA 
eligibility without regard to sex, color, race, religion, national 
origin (except to the extent Cuban, Haitian, or Canadian nationality 
may be relevant in certain cases as specifically provided by PRWORA and 
this rule, see Secs. 104.1 (definitions of ``Cuban and Haitian 
entrant'' and ``qualified alien''), 104.62), or disability.
Section 104.21  Written Declaration of Applicant
    The first step in verification is requiring a written declaration 
under penalty of law stating whether the applicant is a national of the 
United States. The rule provides for declarations on behalf of minors 
and legally incompetent adults. As any person who is not a national of 
the United States is an alien, this section does not require a 
declaration as to alien

[[Page 41668]]

status. If the applicant does not declare that he or she is a national 
of the United States, his or her eligibility as an alien must be 
verified. This section does not preclude additional requests for 
declarations or information relating to alien status, such as a 
declaration of eligible qualified alien status, to the extent they may 
be relevant to determining eligibility (see Sec. 104.276)--indeed, they 
may be necessary in many cases--but they are not a general requirement 
applicable to all applicants for all public benefits subject to PRWORA 
verification.
    The possible legal consequences of a false declaration as to U.S. 
nationality may vary depending on the benefit, but are uniformly 
serious. Section 1015(e) of title 18 of the United States Code punishes 
as a felony any knowing false statement that one is a citizen or a 
national of the United States with the intent to obtain any Federal or 
State benefit or service. In addition, with respect to Federal public 
benefits, 18 U.S.C. 1001 provides that it is a felony to knowingly and 
willfully make any materially false, fictitious, or fraudulent 
statement or representation in any matter within the jurisdiction of 
any branch of the Federal Government. State laws may provide penalties 
for false declarations with respect to State or local public benefits. 
There also may be civil consequences to a false declaration. Sections 
212(a)(6)(C) and 237(a)(3)(D) of the Act render any alien who has made 
any false claim to U.S. citizenship for any purpose or benefit under 
Federal or State law removable from the United States. Civil penalties 
may also apply to false statements relating to particular benefits. 
See, e.g., 42 U.S.C. 1320a-8 (Social Security benefits).
    Because of the different specific provisions that may apply to 
false statements relating to different public benefits, and to give 
maximum flexibility to benefit granting agencies, the rule does not 
prescribe specific wording for the declaration. The declaration form 
should reasonably convey to the applicant the fact that serious legal 
consequences--whether criminal, civil, or both--may result from a false 
declaration. The rule does not require that a declaration be made under 
penalty of perjury, although benefit granting agencies may include that 
feature in the declaration if desired.
    The rule uses the term ``national of the United States'' rather 
than ``U.S. citizen'' because ``national of the United States'' is a 
term specifically defined in the Act as ``(A) a citizen of the United 
States, or (B) a person who, though not a citizen of the United States, 
owes permanent allegiance to the United States.'' 8 U.S.C. 1101(a)(22). 
Category (B), noncitizen U.S. nationals, is at the present time 
essentially limited to American Samoans. All terms defined in 8 U.S.C. 
1101 have that meaning in this rule, by operation of 8 CFR 1.1(a). The 
Service does not construe 8 U.S.C. Sec. 1642(a)(2)'s reference to 
``proof of citizenship'' as reflecting any legislative intention to 
distinguish between U.S. citizens and noncitizen U.S. nationals in 
terms of either substantive benefit eligibility or verification 
requirements. However, the documents or other evidence of nationality 
available to U.S. citizens are not necessarily the same as those 
available to noncitizen U.S. nationals, and these differences are 
reflected in the substance of the rule when appropriate.
    The statutory definition is the simplest and most inclusive to use 
in the rule. To do otherwise (for example, to state ``citizen or 
noncitizen U.S. national'' each time a reference is needed) would be 
more cumbersome, and would not be consistent with the statutory 
definition already provided for use in Service regulations. The Service 
is aware that this statutory definition, however, may in some cases 
contribute to confusion. The distinction between U.S. citizens and 
noncitizen U.S. nationals is not well known among the public. Among 
those to whom it is known, the term ``national'' tends to be used to 
refer to noncitizen nationals, rather than in the statutorily correct 
sense of including both citizens and noncitizen nationals. For this 
reason, the Service is explaining its terminology at some length. As 
noted above, the Service has not specified in this rule the exact 
format of the written declaration. Benefit granting agencies should use 
the format that in the exercise of their best discretion suits their 
forms and conveys to their particular clientele the matter at issue: a 
declaration as to U.S. nationality. The declaration may do this in a 
manner that uses acceptable common parlance and understanding rather 
than the strict definitional structure of the Act used in the rule. For 
example, the Service's Form I-9, Employment Eligibility Verification, 
uses the phrase ``I attest under penalty of perjury, that I am a 
citizen or national of the United States.''
Section 104.22  Evidence of Alien Registration
    A necessary step in a verification system is the presentation of 
documentary evidence that the applicant is who he or she claims to be. 
Section 262 of the Act requires every alien 14 years of age or older 
who remains in the United States for 30 days or longer to apply for 
registration with the Service. Most aliens (with certain exceptions, 
notably Canadian visitors for short-term business or pleasure) are in 
fact registered upon their entry into the United States and issued a 
registration document (such as a Service Form I-94 Arrival-Departure 
Record) at that time. Section 264(e) of the Act requires any alien over 
18 who has been issued an alien registration document to carry it in 
his or her personal possession at all times. Service regulations at 8 
CFR 264.1(b) identify registration documents.
    This rule uses these preexisting requirements as the basic 
foundation of subpart B. As all aliens likely to be applying for public 
benefits (other than minors under the age of 14) are subject to the 
registration requirement or will have been registered upon entry into 
the United States, they will have registration documents for 
presentation and examination. If they do not, they must contact the 
Service to register and obtain them. The rule makes allowances for 
temporary acceptance of receipts for applications for evidence of 
registration pending issuance of Service documentation in such cases 
(format of receipts may vary among Service offices). Benefit granting 
agencies may waive the document requirement for applicants under the 
age of 14 who are not already registered with the Service.
    In most cases, the most recent evidence of alien registration will 
indicate an alien's immigration status under the Act, which in turn 
often will relate on its face directly to whether or not the alien is a 
qualified alien under PRWORA (for example, a valid Form I-551 Alien 
Registration Receipt Card or Permanent Resident Card, commonly referred 
to as a ``green card,'' demonstrates status as an alien lawfully 
admitted for permanent residence). This is not true in all cases, 
however. Relevant PRWORA criteria for purposes of determining qualified 
alien status are not necessarily directly linked to an alien's present 
status under the Act. This is particularly true of aliens who have been 
battered or subjected to extreme cruelty in the United States, and of 
Cuban and or Haitian entrants. As discussed in the Interim Guidance, 
sometimes Service codes found on Service documents will provide the 
necessary further information, and sometimes they will not. The 
availability of routine Service verification of immigration status 
through SAVE will substantially reduce the need for benefit granting 
agencies to become experts in construing the complexities of Service 
documentation,

[[Page 41669]]

although benefit granting agencies are of course encouraged to learn as 
much as they can about this subject and to continue to consult the 
Interim Guidance for this purpose.
    For these reasons, the rule does not require an alien applicant to 
produce documentation that on its face shows the alien is an eligible 
qualified alien, because the applicant will not always have it. Rather, 
alien applicants need only present the evidence of alien registration 
that they already are legally required to have on their persons. This 
procedure will provide the basic initial information that the alien 
applicant is known to the Service, will provide the information 
necessary to make a further verification inquiry to the Service, and 
(in conjunction with Sec. section 104.24) will link the applicant to 
the status information the Service will provide through SAVE. The 
further verification procedures will establish whether or not the 
applicant is an eligible qualified alien.
Section 104.23 Evidence of U.S. Nationality
    This section implements the statutory requirement that the Attorney 
General establish fair and nondiscriminatory procedures for applicants 
to provide proof of citizenship. This requirement presents particular 
challenges that do not apply to alien status verification. Unlike 
aliens, there is no central registry of information on nationals of the 
United States. There is no requirement that nationals of the United 
States register with the Service or carry any document. Many nationals 
of the United States have not traveled outside North America, and 
therefore have never needed to obtain the standard internationally 
accepted evidence of U.S. nationality, a U.S. passport. The records of 
the Service contain relevant information only on those nationals of the 
United States who have had some reason to come within its jurisdiction, 
such as naturalizing or seeking a determination as to derivative 
citizenship. The SAVE system is not suitable for verifying U.S. 
nationality. Although the Service in cooperation with the Social 
Security Administration (``SSA'') is testing on a pilot program basis 
an automated method of verifying the work eligibility of both nationals 
of the United States and aliens through SSA and/or Service records, no 
system is available at this time (or is likely to be available anytime 
soon) for broad-based automated verification of claims to U.S. 
nationality by applicants for public benefits.
    Therefore, the rule's procedures for verifying U.S. nationality 
rely on the examination of documents. And, since the Act's provisions 
regarding nationality are complex and the variety of documents that 
applicants may possess or be able to obtain is large, the Service has 
attempted to provide as comprehensive a list as possible. The list is 
closely based on the one provided in the Interim Guidance. It is not 
meant to exclude any reasonable evidence of U.S. nationality. Section 
104.23(b)(6) is a ``catch-all'' category intended to cover such 
reasonable documentary evidence if it is not specified elsewhere in the 
section. A benefit granting agency should first ask for a document 
identified as primary evidence of U.S. nationality. If the applicant 
does not have primary evidence, the benefit granting agency should 
examine secondary evidence.
    Paragraphs (c), (d), and (e) of section 104.23 provide other 
options for a benefit granting agency to use at its discretion. It may 
consult its own records containing information on nationality, or those 
of a Federal agency administering a public benefit program. A benefit 
granting agency may, accept a declaration under penalty of law from a 
third party indicating a reasonable basis for personal knowledge that 
an applicant who cannot present evidence of U.S. nationality is a 
national of the United States. A benefit granting agency may accept a 
receipt for an application for evidence of U.S. nationality (but may 
not accept receipts for a Service N-400, Application for 
Naturalization, or a Service N-600, Application for Certificate of 
Citizenship) on a temporary basis pending presentation of the actual 
documentary evidence.
    The procedures provided by this section meet the statutory 
requirement that they be fair and nondiscriminatory because (1) they 
must be applied equitably and consistently to all applicants for a 
Federal public benefit who claim U.S. nationality; (2) they provide the 
broadest possible latitude in terms of the scope of possible 
documentary evidence that may be presented; and (3) they give the 
broadest discretion possible to benefit granting agencies to administer 
their programs in a manner that is consistent with establishing a 
generally applicable procedure for verifying U.S. nationality. To the 
extent the rule permits waivers or variations in procedures to 
accommodate agencies' particular needs, they must be applied equitably 
to all applicants for the benefit (see, for example, Secs. sections 
104.23(d), (e),and 104.28). In addition, of course, the general 
requirements of Sec. section 104.20, or of other applicable law, 
relating to nondiscrimination apply to verification of U.S. nationality 
as much as to verification of alien status.
Section 104.24 Proof of Identity
    As some alien registration documents or evidence of U.S. 
nationality do not contain a photograph or sufficient identifying 
information ensuring that the document relates to the applicant, this 
section requires the benefit granting agency to examine an additional 
identification document in those cases. The rule adopts the broad 
definition of identification document found at 18 U.S.C. 
Sec. 1028(d)(1).
Section 104.25 Standard for Accepting Documents
    The rule adopts the standard for document acceptance of section 
274A of the Act (employer sanctions). This section also provides 
direction to benefit granting agencies on what to do when applicants 
present documents that do not meet that standard. This direction may 
initially appear more complicated than it really is. It is driven by 
two fundamental principles. First, automated verification procedures 
such as SAVE cannot effectively verify identity--that is, that the 
applicant is who he or she claims to be. Only the benefit granting 
agency can do that. If an applicant assumes the identity of another 
alien, a ``verification'' of the applicant's eligibility through SAVE 
may merely reinforce the false claim. Furthermore, the 
``verification,'' by leading to the provision of public benefits to a 
false claimant, could potentially negatively affect the alien whose 
identity has been misappropriated. Therefore, the rule prohibits any 
further verification through SAVE until the benefit granting agency has 
received documentation that reasonably appears to relate to the 
applicant.
    The second principle is that automated Service verification 
procedures such as SAVE are designed to reduce the need for benefit 
granting agencies to make judgment calls about the authenticity of 
Service-issued evidence of alien registration. False Service documents 
should be detected through the additional verification process. For 
this reason, this section distinguishes between the two prongs of the 
document acceptance standard. As opposed to documentation that does not 
reasonably relate to the applicant, documentation that does relate to 
the applicant but does not reasonably appear to be genuine should not 
be rejected, but instead subjected to further verification. The Service 
may provide special verification procedures in such

[[Page 41670]]

cases, however, as authorized by Sec. 104.47.
    A complication is presented by the fact that some benefit granting 
agencies providing State or local public benefits might use the subpart 
B document examination procedures, but not the subpart C SAVE 
procedures. Those agencies will need to verify the authenticity of a 
document that does not reasonably appear to be genuine by seeking 
available assistance from the Service or other issuer of the document 
(or from another qualified source, such as a forensic document 
laboratory). The same principle applies to documentary evidence of U.S. 
nationality that does not reasonably appear to be genuine.
    This section refers to ``documentation'' provided in compliance 
with sections Secs. 104.22-24, rather than ``any document,'' to 
accommodate the fact that evidence of alien registration that does not 
adequately identify the applicant already requires presentation of an 
additional document under Sec. 104.24. Therefore, the ``documentation'' 
referred to in this section means the entire package submitted, whether 
it is one document evidencing both alien registration and identity, or 
an alien registration document with an additional identification 
document.
    Whether a document reasonably appears to be genuine and to relate 
to the person presenting it is a case-by-case determination that 
depends on all the relevant facts. Benefit granting agencies should 
keep in mind, however, that documentation should not be rejected solely 
on the basis of a minor discrepancy from other information provided, as 
long as there is a reasonable explanation for the discrepancy. These 
situations may include, for example, photographs taken several years 
earlier that may no longer be a precise likeness, documents showing a 
maiden name or a minor misspelling, or documentation reflecting 
culturally diverse naming practices (for instance, there may be 
differences with Hispanic and some Asian names in terms of which names 
are considered the ``last,'' ``middle,'' and ``first'').
Section 104.26  Retention of Information
    Benefit granting agencies must retain photocopies of documents 
submitted by the applicant for as long as they may be relevant and 
necessary for purposes of public benefit eligibility determination, or 
retain the relevant information in an accessible electronic alternative 
to a paper file.
    Certificates of naturalization and citizenship state on their face: 
``It is punishable by U.S. law to copy, print or photograph this 
certificate.'' This statement derives from 18 U.S.C. 1426(h), which 
provides a criminal penalty for anyone who ``without lawful authority, 
prints, photographs, makes or executes any print or impression in the 
likeness of a certificate of arrival, declaration of intention to 
become a citizen, or certificate of naturalization or citizenship, or 
any part thereof.'' This proposed rule provides lawful authority for a 
benefit granting agency to photocopy, as provided by Sec. 104.26, any 
document presented by an applicant pursuant to the rule, including 
certificates of citizenship or naturalization. The making and retention 
of photocopies by a benefit granting agency or original documentation 
presented for verification by an applicant serves the goals of PRWORA, 
and is not the evil to which section 1426(h) is directed. The lawful 
authority is expressly limited to that situation and to that means of 
copying the document, and the photocopy may be used only for 
verification purposes as provided by this rule.
Section 104.27  Other Relevant Information
    A wide array of information regarding an alien applicant may be 
relevant to determining eligibility for a public benefit under PRWORA. 
This information will not in all cases be found by examining evidence 
of alien registration, which does not necessarily relate directly to 
qualified alien status. It is impossible to specify in a rule of 
general application what information will be relevant to each case. It 
is the responsibility of the benefit granting agency to determine what 
additional information it requires from the applicant in order to 
verify eligibility, and to obtain it. The Interim Guidance provides 
substantial guidance that benefit granting agencies may consult in 
making these determinations, and the Service will assist agencies to 
the extent possible.
Section 104.28  Reliance Upon Attestation as Temporary Evidence of U.S. 
Nationality
    The rule allows a benefit granting agency to rely on an applicant's 
attestation of U.S. nationality as an interim basis upon which to grant 
a public benefit temporarily until an applicant is able to present 
evidence satisfying Secs. 104.23 and 104.24. A benefit granting agency 
that chooses to use this procedure must apply it equitably to all 
applicants for the public benefit.
Section 104.29  Reliance Upon Alternative Procedures for Determining 
U.S. Nationality
    The Service recognizes that many Federal public benefit granting 
agencies already have regulations in place governing their verification 
of U.S. nationality. This rule is intended to provide flexibility to 
benefit granting agencies and avoid disruption. Benefit granting 
agencies may continue to use existing Federal regulations that are fair 
and nondiscriminatory instead of this part upon request to, and 
approval by, the Attorney General. Such requests should be made in 
writing to the Service by the Federal agency that promulgated the 
regulations. In the interest of uniformity and to avoid piecemeal 
review, the request must be made by the promulgating Federal agency 
rather than by state agencies or other Federal benefit granting 
agencies that are subject to Federal regulations but are not themselves 
the promulgating Federal agency. Consideration of requests to use 
alternative regulatory procedures will include review by the Civil 
Rights Division of the Department of Justice as to whether the 
procedures are fair and nondiscriminatory. If a Federal agency requests 
to continue to use its existing regulatory procedures for verifying 
U.S. nationality, nothing in this section shall be construed to affect 
their continued validity, unless the Attorney General declines the 
request in writing and provides reasons for the denial.
Section 104.30  Eligibility of Household
    Some benefit granting agencies receive applications or determine 
eligibility on the basis of a household. This section gives such 
agencies the option to permit an adult member of a household to execute 
the written declaration on behalf of other members of the household, as 
long as the option is equitably applied to all applicants in a 
nondiscriminatory manner. (Note that Sec. 104.21 generally requires a 
qualified adult to execute the declaration on behalf of an 
unemancipated minor or an incompetent adult with respect to any public 
benefit; Sec. 104.30 allows an agency to accept a declaration by one 
adult member of a household on behalf of any other adult or minor in 
the household.) In order to eliminate the necessity of all members of 
the household having to visit the benefit agency's office to show 
documentation, this section allows an adult member of a household to 
present the documentation pertaining to other members of the household. 
As Sec. 104.24's requirement of additional

[[Page 41671]]

identity documentation under certain circumstances is pointless if the 
applicant is not present in person, this section may be waived. 
However, no person may present alien registration documentation on 
behalf of an alien 18 years of age or over. This is because section 
264(e) of the Act does not permit an adult alien to separate himself or 
herself from his or her alien registration documentation.

Subpart C--Systematic Alien Verification for Entitlements (SAVE)

Section 104.40  SAVE System
    In this section the Service undertakes to provide SAVE (as defined 
in Section 104.1) for the use of public benefit granting agencies. 
Agencies providing Federal public benefits must begin using SAVE within 
2 years of promulgation of the rule, as required by Section 104.2. 
Agencies providing State or local public benefits may enroll in SAVE at 
any time, as provided by Section 104.3.
Section 104.41  When To Use SAVE
    Benefit granting agencies may not use SAVE to verify an applicant's 
status until they have completed the document examination procedures 
provided in subpart B. Agencies that use SAVE must complete the SAVE 
process before making a final determination as to benefit eligibility 
under PRWORA, but they may make an interim or temporary determination 
pending completion.
Section 104.42  Enrollment
    This section informs benefit granting agencies how to enroll in 
SAVE.
Section 104.43  Costs
    SAVE users must pay for the verification services they receive.
Section 104.44  Limitation of Access to SAVE
    The requirement to use SAVE or the option to enroll in it, does not 
create an entitlement to it. This section contains necessary 
protections and authority to protect the integrity of Service records 
and ensure that the Service is not required to offer SAVE to those who 
abuse it. The Service will exercise its authority to limit SAVE access 
only for good cause, but that decision will be made in the exercise of 
the Service's discretion and is unreviewable. Limitation of SAVE 
services at the discretion of the Service for good cause does not 
excuse a benefit granting agency from any obligation to verify the 
eligibility of applicants.
Section 104.45  Primary Verification
    The initial SAVE inquiry is an automated query to the Service's 
Alien Status Verification Index (``ASVI'') data base. The benefit 
granting agency must make this inquiry within 3 days after completing 
the subpart B document examination procedures, unless an alternative 
verification or application time is provided by law. The general 
principle of SAVE is that all alien applicants will be verified through 
the automated system. However, a benefit granting agency does not need 
to make a verification inquiry if the evidence of alien registration 
presented by the applicant indicates on its face a status that renders 
the alien ineligible for the public benefit (for example, a Form I-94, 
Arrival-Departure Record, indicating entry as a B-1 or B-2 visitor 
presented to a benefit granting agency determining eligibility for a 
Federal public benefit), and the applicant does not contest that 
designation of status or claim to be eligible on some other basis under 
PRWORA (for example, ``battered alien'' or Native American tribal 
member). In case of any doubt as to status, of course, verification 
should proceed, but a benefit granting agency is not required to query 
the automated system with respect to an application that is 
incontestably frivolous.
    The Service has 3 days in which to respond to a primary inquiry via 
the automated system with information on the immigration status of the 
applicant or an instruction to perform secondary verification, but 
normally the response takes only a few seconds. An instruction to 
perform secondary verification is not an indication that the applicant 
is not an eligible qualified alien or is someone other than who he or 
she claims to be. There are many legitimate reasons why a query 
regarding an eligible qualified alien may result in a referral to 
secondary verification.
Section 104.46  Secondary Verification
    If the primary verification inquiry does not result in a 
verification, the benefit granting agency must make a secondary 
verification inquiry within 5 days of completing primary verification, 
unless an alternative verification or processing time is provided by 
law. Secondary verification may, depending on the circumstances, be 
either a second automated inquiry or the submission of a written 
request for information. Unlike primary verification, however, which is 
a direct query to an automated data base, secondary verification 
inquiries go to a Service status verifier who performs the necessary 
investigation of Service records. The Service will respond with 
additional information, normally within 10 business days, although in 
some cases more time may be required.
Section 104.47  Direct Resort to Secondary Verification
    The rule permits flexibility in using primary and secondary 
verification, with the express prior approval of the Service, for 
either individual cases or for particular classes of applicants for 
public benefits. Installation and use of the primary verification 
system may not be cost-effective for very small-scale users. In 
individual cases of suspected document fraud, direct resort to 
secondary verification may be more appropriate. In certain cases, 
primary verification may not provide useful information. A specific 
example is victims of domestic violence, whose eligibility under PRWORA 
cannot be determined through primary verification at the present time. 
As discussed in the next section, direct resort to secondary 
verification is necessary in all ``battered alien'' cases.
Section 104.48  Victims of Domestic Violence
    Eligibility as a ``battered alien'' under section 431(c) of PRWORA, 
8 U.S.C. 1641(c), unlike other categories of qualified alien, does not 
directly relate to the applicant's status under the Act. As can be seen 
from Exhibit B to Attachment 5 of the Interim Guidance, 62 FR at 61366, 
verification of eligibility as a victim of domestic violence is a 
particularly complex task. At present, ASVI does not contain this 
information. Therefore, the rule provides specific and distinct 
verification procedures whenever a benefit granting agency needs to 
verify whether an applicant is a qualified alien by virtue of 8 U.S.C. 
1641(c).
    First, the rule modifies section 104.22's document requirements by 
allowing benefit granting agencies to examine, in lieu of or in 
addition to evidence of alien registration, other documentary evidence 
relating to whether the applicant has an approved or prima facie 
petition. In other words, the benefit granting agency should request 
both the evidence of alien registration and the additional evidence 
relating to the petition, but the verification may proceed if only the 
latter is produced. Section 104.24 regarding additional evidence of 
identity in certain cases applies to these applicants, but is modified 
to allow reasonable secondary evidence of identity, such as an 
additional document other than an identification document or a third-
party attestation, to be presented by ``battered alien'' applicants.
    Rather than conduct a primary verification inquiry through the SAVE

[[Page 41672]]

system, a benefit granting agency shall proceed, after completing the 
modified Subpart B procedures, directly to secondary verification 
procedures that require contacting either an appropriate immigration 
court or the Service's Vermont Service Center by facsimile. The Interim 
Guidance provides more detailed information, including the addresses of 
immigration courts and sample verification request forms, than it is 
possible to provide in a regulation.
    Verification of status as provided by this rule relates to only one 
of the four elements required to establish that an applicant is a 
qualified alien under 8 U.S.C. 1641(c). In addition to verifying that 
the applicant has an approved or prima facie petition under one of 
several sections of the Act, the benefit granting agency must determine 
whether the applicant has satisfied three requirements: battery or 
extreme cruelty; substantial connection between the abuse and the need 
for benefits; and non-residence with the abuser. Subsection (e) 
recognizes that the benefit granting agency must also make these 
determinations, but does not mandate specific legal requirements for 
methods of doing so. Rather, it directs agencies to consider the 
guidance promulgated by the Attorney General pursuant to 8 U.S.C. 
1641(c)'s statutory directive to do so. Exhibit B to Attachment 5 of 
the Interim Guidance provides, among other things, guidance concerning 
the meaning of the terms ``battery'' and ``extreme cruelty.'' The 
Notice entitled Guidance on Standards and Methods for Determining 
Whether a Substantial Connection Exists Between Battery or Extreme 
Cruelty and Need for Specific Public Benefits, 62 FR 65285 (Dec. 11, 
1997), also provides statutorily mandated guidance from the Attorney 
General relating to victims of domestic violence.
Section 104.49  Unauthorized Uses of SAVE
    Use of SAVE for the purpose of verifying the information recorded 
on the Form I-9, Employment Eligibility Verification, by an employer 
and a newly hired employee in compliance with section 274A of the Act 
is prohibited. The SAVE system is not designed to verify an alien's 
work authorization under the Act, and different legal requirements 
pertain to employment eligibility verification than to public benefit 
eligibility verification. Employers interested in joining an employment 
verification pilot program may contact the Service's SAVE Branch. More 
information on available employment verification pilot programs, 
including an election form, is found in the Service's Notice entitled 
Pilot Programs for Employment Eligibility Confirmation, 62 FR 48309 
(Sept. 15, 1997).
    Note that the prohibition on using SAVE for employment eligibility 
verification does not apply to public benefit eligibility verification 
that may relate to an alien's employment, but that is not employment 
eligibility verification by or on behalf of an employer for section 
274A purposes. An example is a professional license provided by a 
benefit granting agency that qualifies as a Federal or as a State or 
local public benefit; although the license may be a necessary 
prerequisite to obtaining certain employment, verifying an applicant's 
eligibility for the license under PRWORA is not employment eligibility 
verification, and the benefit granting agency may use SAVE for that 
purpose.
Section 104.50  Training
    It is the responsibility of the Service to provide, and of the 
benefit granting agency to take full advantage of, sufficient training 
materials regarding the proper use of SAVE. Proper training is an 
essential element of an accurate and nondiscriminatory verification 
system. Appropriate training materials may, depending on the 
circumstances and the availability of resources, include manuals or 
other written materials, videotapes, or in-person training sessions. 
Content may vary depending on the particular needs of the benefit 
granting agency, but typically would include why verification is 
necessary, step-by-step guidance in SAVE procedures, the scope of and 
limitations on SAVE verification, antidiscrimination protections, and 
standards for accepting documentation.
Section 104.51  Use of Information by the Service
    Section 121(c)(1) of IRCA stated that the system to be established 
by the Service for the verification of immigration status (SAVE) 
``shall not be used by the Immigration and Naturalization Service for 
administrative (non-criminal) immigration enforcement purposes.'' 
Absent any amendment or repeal of this provision, and in order to 
comply with 8 U.S.C. 1642(a)'s directive to model the verification 
regulations on the preexisting SAVE system, the rule maintains this 
limitation. In other words, the Service will not use SAVE for the 
purpose of identifying, locating, and removing removable aliens. 
However, the system may be used for any other law enforcement or other 
appropriate purpose, including criminal law enforcement.
    The limitation on use of the system for administrative enforcement 
applies to the information received by the Service from benefit 
granting agencies regarding aliens, not to the Service systems of 
records such as ASVI from which SAVE draws its verification information 
with which to respond to benefit granting agencies. Authorized use of 
Service record systems for proper purposes, such as the removal of 
unauthorized aliens, is unaffected by this limitation. In addition, 
this regulatory limitation on use of information does not waive any 
civil or criminal consequence of a false representation that may apply 
to any person. Nor does it affect any duty placed by Federal law on any 
Federal, State, or local entity to report to the Service aliens who are 
known to be present in the United States in violation of the Act, but 
those reports shall be made by means other than SAVE.
Section 104.52  Evaluation of SAVE
    Benefit granting agencies that participate in SAVE must cooperate 
with evaluations of the program to ensure its continued accuracy and 
fairness by providing assistance and information necessary for that 
purpose.

Subpart D--Verification Requiring Non-Service Information

    A benefit granting agency's determination whether an applicant is 
an eligible qualified alien may require information that is not 
contained in the records of the Service. This subpart provides 
verification procedures for those cases.
Section 104.60  Veteran and Active Duty Exception
    Under 8 U.S.C. 1611, aliens who are not qualified aliens are not 
eligible for Federal public benefits. Under 8 U.S.C. Sec. 1612(a)(1) 
and other sections of PRWORA, qualified aliens are not eligible for 
certain Federal public benefits, except as specifically provided. A 
similar (but not identical) statutory structure applies to State and 
local public benefits. The PRWORA specifically provides for the public 
benefit eligibility of certain qualified aliens, not otherwise eligible 
for the benefit, by virtue of past or present U.S. military service. 
This section provides procedures, in addition to the procedures 
normally applicable under this rule for verifying qualified alien 
status, for verifying whether the veteran and active duty exception 
applies to an applicant. The information in this section was provided 
by the Department

[[Page 41673]]

of Defense and was previously published in Exhibit B of Attachment 6 to 
the Interim Guidance.
Section 104.61  Credited Quarters of Qualifying Work
    Certain aliens lawfully admitted for permanent residence, who are 
not otherwise eligible for certain public benefits, may be eligible 
qualified aliens by virtue of their work history in the United States. 
As discussed in Exhibit A to Attachment 6 to the Interim Guidance, the 
Social Security Administration (``SSA'') is the primary source of work 
history information and SSA has developed an automated system to assist 
in meeting the difficult challenge of verifying this criterion. This 
section does not attempt to provide specific procedures, but requires 
or authorizes (depending on whether the benefit is Federal) benefit 
granting agencies to use such means of verification as are available 
through SSA.
Section 104.62  Section 289 Exception
    Section 289 of the Act allows certain American Indians born in 
Canada to enter the United States freely. Section 5303 of the Balanced 
Budget Act of 1997, Pub. L. 105-33, and section 505 of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (``AREERA''), 
Pub. L. 105-185, signed into law by President Clinton on June 23, 1998, 
exempts those Indians from PRWORA's limitations on alien eligibility 
for certain Federal public benefits (Supplemental Security Income 
(``SSI''), Food Stamps, and Medicaid). 8 U.S.C. 1612(a)(2)(G)(i), 
(b)(2)(E). Section 104.62 of the rule provides verification methods for 
determining whether this exception applies to an alien applicant. Since 
section 289 aliens do not have to be qualified aliens for this 
exception to apply, and since they may or may not carry evidence of 
alien registration, the document examination requirements are somewhat 
different. If Service documentation is presented, it should be verified 
using SAVE, to the same extent the benefit granting agency uses SAVE 
for other applicants. Note that this section applies only to alien 
applicants for Federal public benefits to which section 289 status is 
relevant. If the application is for any other public benefit, whether 
an alien applicant is a section 289 Indian is irrelevant. The 
eligibility for any public benefit under PRWORA of an applicant 
attesting to U.S. nationality should be verified as provided in Subpart 
B.
Section 104.63  Members of Indian Tribes
    A similar exception to the section 289 exception applies to members 
of federally recognized Indian tribes. Since qualified alien status is 
irrelevant to this exception, there is no need to examine or verify 
alien registration documentation. Instead, proof of tribal membership 
is the qualifying factor, and documentary evidence of that membership 
should be examined. . A list of Indian tribes, and a list of tribal 
government contacts, may be obtained upon request to the Office of 
Tribal Justice within the Department of Justice.
    Note that as with the section 289 exception, the special procedures 
relating to Indians apply only to alien applicants for the Federal 
public benefits (SSI, Food Stamps, and Medicaid) to which Indian status 
is relevant to determining eligibility under PRWORA. If the application 
is for a different benefit, eligibility under PRWORA should be verified 
using normal procedures applicable to other alien applicants. The 
eligibility for any public benefit under PRWORA of an applicant 
attesting to U.S. nationality should be verified as provided in Subpart 
B.
Section 104.64  Lawful Residence
    Eligibility for certain Federal public benefits requires lawful 
residence in the United States, either at the time of application or at 
some earlier date. For example, PRWORA's limitation of qualified alien 
eligibility for Food Stamp or SSI benefits, 8 U.S.C. 1612(a)(1), does 
not apply to blind or disabled qualified aliens who were lawfully 
residing in the United States on August 22, 1996, and who (for Food 
Stamp eligibility) are receiving benefits or assistance for disability 
as defined by the Food Stamp Act of 1977, 7 U.S.C. 2012(r). As amended 
effective November 1, 1998, by AREERA, PRWORA does not render 
ineligible for Food Stamps qualified aliens who were lawfully residing 
in the United States on August 22, 1996, and were 65 years of age or 
older, or qualified aliens who are children under 18 years of age and 
were lawfully residing in the United States on August 22, 1996. In 
addition, Hmong or Highland Laotians are eligible for Food Stamps; they 
must be lawfully residing in the United States, but do not need to be 
qualified aliens.
    Although qualified aliens who are residing in the United States 
(with the exception of some aliens who are qualified aliens by virtue 
of being victims of domestic violence) are by virtue of their qualified 
alien status lawfully residing, the universe of qualified aliens does 
not include all aliens who may be lawful residents. Furthermore, the 
different dates that apply to PRWORA eligibility reduce the potential 
applicability of a qualified alien determination to lawful residence; 
for example, an alien could be lawfully residing but not a qualified 
alien on August 22, 1996, and could have adjusted status since then to 
a qualified alien status. Nor are all aliens who are lawfully present 
in the United States necessarily residing here (B-1/B-2 visitors, for 
example).
    For this reason, Sec. 104.1 defines an alien ``lawfully residing in 
the United States'' for verification purposes as an alien who on the 
date in question is lawfully present (also defined in Sec. 104.1 by 
incorporating Sec. 103.12) and who maintains his or her residence in 
the United States. Section 101(a)(33) of the Act, as incorporated in 
this rule by 8 CFR 1.1(a), provides the applicable definition of 
``residence': ``the place of general abode; the place of general abode 
of a person means his principal, actual dwelling place in fact.''
    Section 104.64 explains how to verify lawful residence when it is 
necessary to do so. The normal procedures for qualified alien status 
through attestation, document review, and SAVE inquiry will apply. 
Although qualified alien status and lawful residence are not the same, 
of course, they are close enough that for the purposes of efficient 
verification the rule does not require additional proof of lawful 
residence if the benefit granting agency verifies that the applicant is 
a qualified alien on the date when he or she also must be lawfully 
residing. The exception is victims of domestic violence; because that 
situation is not directly related to immigration status, an applicant 
who is a qualified alien as verified through the Sec. 104.48 
procedures, and not by reason of immigration status, must separately 
show lawful residence if lawful residence is a criterion of eligibility 
under PRWORA.
    In some cases, eligibility may depend upon a determination of 
lawful residence that differs from the qualified alien determination 
(that is, if the alien applicant is a qualified alien by virtue of 
``battered alien'' status, the applicant is a qualified alien as of the 
date of application but must have been lawfully residing on August 22, 
1996 or some other relevant date, or the applicant is not a qualified 
alien but may still be eligible if he or she lawfully resides in the 
United States (for example, a Hmong or Highland Laotian applicant for 
Food Stamps who is not a qualified alien)). In such cases, the benefit 
granting agency

[[Page 41674]]

must verify lawful residence by (1) verifying lawful presence as of the 
relevant date through the normal alien verification process including, 
if necessary, additional inquiry to the Service; and (2) verifying 
residence as of the relevant date. The proposed rule cross-references 
and incorporates the list of acceptable evidence establishing proof of 
residence developed for the purpose of determining Temporary Protected 
Status and set forth at 8 CFR 244.9(a)(2). Note that, unlike Temporary 
Protected Status, the evidence of residence should show residence on 
the relevant date; the applicant does not need to demonstrate 
``continuous residence.''
Section 104.65  Hmong or Highland Laotians
    Section 508 of AREERA reestablishes (effective November 1, 1998) 
the eligibility of Hmong or Highland Laotians, and individuals with a 
qualifying familial relationship with a Hmong or Highland Laotian, for 
Food Stamps to the extent PRWORA had rendered any such individuals 
ineligible. This rule defines Hmong or Highland Laotian consistent with 
section 508 in Sec. 104.1 and provides a verification procedure in 
Sec. 104.65 for Food Stamp applicants claiming eligibility on this 
basis (U.S. citizens of Hmong or Highland Laotian ethnic origin should 
be verified in the same manner as any other U.S. citizen applicant). 
Note, however, that the definition of Hmong or Highland Laotian 
includes U.S. citizen Hmong or Highland Laotians, which could be 
relevant in the case of an alien applicant claiming eligibility by 
virtue of a familial relationship with a Hmong or Highland Laotian who 
is not himself or herself the applicant.
    As alien Hmong or Highland Laotians do not have immigration 
statuses unique to them, providing a workable and efficient 
verification method is difficult. Section 104.65 is something of a 
``place-holder'' that gives benefit granting agencies the flexibility 
and discretion to use what means they determine are reasonably 
calculated to verify that the applicant is a Hmong or Highland Laotian. 
If possible, the Service will provide additional guidance to benefit 
providers based on its further review of this category. Similarly, the 
rule leaves verification of qualifying familial relationships to the 
best discretion of the benefit granting agency.
    This section reflects two statutory interpretations of AREERA that 
the Service has made for verification purposes after consultation with 
the U.S. Department of Agriculture. The first is that the benefit 
granting agency does not have to verify that a Hmong or Highland 
Laotian, or a qualifying family member, is a qualified alien. In light 
of section 509 of AREERA's amendment of 8 U.S.C. 1613(d) to provide 
that 8 U.S.C. 1611(a) does not apply to Hmong and Highland Laotian Food 
Stamp applicants, this rule does not require verification that the 
Hmong or Highland Laotian is a qualified alien (although a Hmong or 
Highland Laotian applicant must lawfully reside in the United States).
    Second, section 508 of AREERA's extension of eligibility to the 
unremarried surviving spouse of ``such an individual who is deceased'' 
(i.e., a Hmong or Highland Laotian individual) presents a complication 
because of the statutory criterion that the individual be ``lawfully 
residing in the United States.'' Obviously, deceased individuals cannot 
be said to be residing in the United States, whether lawfully or not. 
The question is whether the individual had to have been lawfully 
residing in the United States at any time before his or her death. In 
light of the remedial intention of AREERA, the Service has interpreted 
the statute for verification purposes not to require any such 
determination, and this interpretation is reflected in the second 
sentence of section 104.1's definition of Hmong or Highland Laotian. 
Section 104.65 requires the benefit granting agency to determine the 
existence of a qualifying familial relationship with a living or 
deceased Hmong or Highland Laotian, but it does not require a family 
member applicant claiming derivative eligibility for Food Stamps 
through a Hmong or Highland Laotian to show that the family member 
applicant is lawfully residing in the United States or is a qualified 
alien (of course, all non-PWORA Food Stamp eligibility criteria 
applicable to residence, income, or other factors continue to apply).

Regulatory Flexibility Act

    The Attorney General has reviewed this rule in accordance with the 
Regulatory Flexibility Act, 5 U.S.C. 605(b), and, by approving it, 
certifies that this rule will not have a significant economic impact on 
a substantial number of small entities. State or local public benefit 
granting agencies, including any that may be small entities, have the 
option not to use these verification procedures if they consider them 
to be economically burdensome. Economically significant Federal public 
benefits are normally administered by Federal or State government 
agencies, which are not small entities. Nonprofit charitable 
institutions are exempted from verification requirements under this 
rule. By providing effective means of detecting and deterring false 
claims to public benefits, the rule is designed to provide economic 
benefits to benefit granting agencies. No significant economic impact 
on a substantial number of small entities caused by any verification 
requirement relating to Federal public benefits has been identified.

Unfunded Mandates Reform Act

    This rule will not result in the expenditure by State, local, or 
tribal governments in the aggregate, or by the private sector, of $100 
million or more in any one 1 year, and it will not significantly or 
uniquely affect small governments. Therefore, no actions were deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995. In its analysis of intergovernmental mandates resulting from 
PRWORA, the Congressional Budget Office (``CBO'') questioned whether 
PRWORA's verification requirements are mandates at all, given the broad 
flexibility afforded states to offset any additional costs of 
verification. In any case, CBO stated that the estimated direct total 
cost of PRWORA's mandates is less than $50 million. H.R. Rep. No. 104-
651, reprinted in 1996 U.S.C.C.A.N. 2183, 2598-99.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined in section 251 of the 
Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 
804(2). It is not possible at this time to quantify the annual economic 
effect of the rule with specificity. However, the Attorney General has 
no reasonable basis at this time to find that it is likely to result in 
an annual effect on the economy of $100 million or more. The rule will 
not result in major increases in costs or prices, or cause significant 
adverse economic effects as defined by 804(2).

Executive Order 12866  Regulatory Planning and Review

    This regulation has been drafted and reviewed in accordance with 
Executive Order 12866, Sec. 1(b), The Principles of Regulation. The 
Department of Justice has determined that this rule is a 
``[s]ignificant regulatory action'' under Executive Order 12866, 
Sec. 3(f). Accordingly, this rule has been reviewed by the Office of 
Management and Budget (``OMB'').

[[Page 41675]]

Executive Order 12612  Federalism

    This rule does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment. The rule will 
benefit the states by providing them with means of protecting their 
treasuries from the burden of providing public benefits to aliens who 
are not eligible to receive them. The burdens on the states under this 
rule are the requirements (a) to use the verification procedures 
provided to determine eligibility for Federal public benefits, 
including enrollment in the SAVE program, beginning no later than the 
date that is 24 months after the date of promulgation, and (b) if they 
choose to verify eligibility under Federal law for State and local 
public benefits, to do so using the verification procedures provided, 
either entirely or in part. These requirements simply incorporate and 
apply PRWORA's substantive statutory limitations on alien public 
benefit eligibility, which are an exercise of the authority to regulate 
immigration reserved exclusively to the Federal Government. In 
addition, states that determine eligibility for a number of major 
Federal public benefits, such as Food Stamps and Aid to Families with 
Dependent Children (now TANF), are already participants in, and 
familiar with the SAVE program under the verification obligations 
applicable to those programs under IRCA since 1986. The rule has been 
drafted so as to give the states the maximum flexibility of action 
consistent with the requirements of Federal law.

Executive Order 12988  Civil Justice Reform

    This rule meets the applicable standards set forth in section 3(a) 
and 3(b)(2) of Executive Order 12988.

Paperwork Reduction Act of 1995

    The provisions contained in this rulemaking will have an 
information collection burden on the public. Specifically, Secs. 104.2, 
104.3, 104.4, 104.6, 104.10, 104.20, 104.21, 104.22, 104.23, 104.24, 
104.26, 104.27, 104.30, 104.41, 104.45, 104.46, 104.47, 104.48, 104.52, 
104.60, 104.61, 104.62, 104.63, 104.64, and 104.65 potentially impose a 
paperwork burden on benefit granting agencies. The Department of 
Justice is assuming a 1-hour reporting burden associated with this rule 
because the implementation of the information collections, as 
appropriate, under this rulemaking will be the responsibility of the 
benefit granting agency. Affected entities are provided the opportunity 
to submit to the Service comments that relate to any information 
collections that may result from the requirements and guidance 
contained in this rulemaking. Any information collections resulting 
from this rulemaking are subject to review by OMB under the Paperwork 
Reduction Act of 1995.
    Accordingly, the agency solicits public comments on any information 
collection requirements in order to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information, including the validity of the 
methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses.
    Organizations and individuals desiring to submit comments on the 
information collection requirements should direct them to the Office of 
Information and Regulatory Affairs, OMB, Room 10235, New Executive 
Office Building, Washington, DC 20503; Attention: Desk Officer for the 
Immigration and Naturalization Service.
    As required by section 3507(d) of the Paperwork Reduction Act of 
1995, Pub. L. 104-13, the Service has submitted a copy of this proposed 
rule to OMB for its review of the information collection requirements.
    OMB is required to make a decision concerning the collection of 
information contained in this proposed regulation between 30 and 60 
days after publication of this document in the Federal Register. 
Therefore, a comment to OMB is best assured of having its full effect 
if OMB receives it within 30 days of publication. This does not affect 
the deadline for the public to comment to the Service on the proposed 
regulation.

List of Subjects in 8 CFR Part 104

    Administrative practice and procedure, Aliens, Disability benefits, 
Food assistance programs, Education, Grant programs, Housing, 
Immigration, Indians, Intergovernmental relations, Loan programs, 
Public assistance programs, Social security, Veterans.

    Accordingly, part 104 of chapter I of title 8 of the Code of 
Federal Regulations is proposed to be added as follows:

PART 104--VERIFICATION OF ELIGIBILITY FOR PUBLIC BENEFITS
Subpart A--General
Sec.
104.1  Definitions.
104.2  Requirement to verify eligibility for Federal public benefit.
104.3  Option to verify eligibility for State or local public 
benefit.
104.4  Verification in order to determine nature of benefit.
104.5  Determination made by benefit granting agency.
104.6  Contesting an adverse determination.
104.7  Nonexclusivity of procedures.
104.8  Enforcement.
104.9  Inapplicability to certain programs.
104.10  Verification requirement for certain nutrition programs.
104.11-104.19  [Reserved].

Subpart B--Declaration of applicant and examination of documents
104.20  Scope of verification obligation.
104.21  Written declaration of applicant.
104.22  Evidence of alien registration.
104.23  Evidence of U.S. nationality.
104.24  Proof of identity.
104.25  Standard for accepting documents.
104.26  Retention of information.
104.27  Other relevant information.
104.28  Reliance upon attestation as temporary evidence of U.S. 
nationality.
104.29  Reliance upon alternative procedures for determining U.S. 
nationality.
104.30  Eligibility of household.
104.31-104.39  [Reserved].

Subpart C--Systematic Alien Verification for Entitlements (SAVE)
104.40  SAVE system.
104.41  When to use SAVE.
104.42  Enrollment.
104.43  Costs.
104.44  Limitation of access to SAVE.
104.45  Primary verification.
104.46  Secondary verification.
104.47  Direct resort to secondary verification.
104.48  Victims of domestic violence.
104.49  Unauthorized uses of SAVE.
104.50  Training.
104.51  Use of information by the Service.
104.52  Evaluation of SAVE.
104.53-104.59  [Reserved]

Subpart D--Verification requiring non-Service information
104.60  Veteran and active duty exception.
104.61  Credited quarters of qualifying work.
104.62  Section 289 exception.
104.63  Members of Indian tribes.
104.64  Lawful residence.
104.65  Hmong or Highland Laotians.
104.66-104.69  [Reserved].
    Authority: 8 U.S.C. 1103; 8 U.S.C. 1642.

[[Page 41676]]

Subpart A--General
Sec. 104.1  Definitions.
    As used in th