[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR274.2]

[Page 786-788]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 274--ISSUANCE AND USE OF COUPONS--Table of Contents
 
Sec. 274.2  Providing benefits to participants.

    (a) General. Each State agency is responsible for the timely and 
accurate issuance of benefits to certified eligible households in 
accordance with these regulations. Those households comprised of elderly 
or disabled members which have difficulty reaching issuance offices, and 
households which do not reside in a permanent dwelling or of a fixed 
mailing address shall be given assistance in obtaining their regular 
monthly benefits. State agencies shall assist these households by 
arranging for the mail issuance of coupons to them, by assisting them in 
finding authorized representatives who can act on their behalf, or by 
using other appropriate means.
    (b) Availability of benefits. All newly-certified households, except 
those that are given expedited service, shall be given an opportunity to 
participate no later than 30 calendar days following the date the 
application was filed. An opportunity to participate consists of 
providing households with coupons or authorization documents and having 
issuance facilities open and available for the households to obtain 
their benefits. State agencies must mail authorization documents or 
coupons in time to assure that the documents can be transacted, or the 
coupons spent after they are received but before the 30-day standard 
expires. A household has not been provided an opportunity to participate 
within the 30-day standard if the authorization document or benefits are 
mailed on the 29th or 30th day. Neither has an opportunity to 
participate been provided if the authorization document is mailed on the 
28th day but no issuance facility is open on the 30th day. For 
households entitled to expedited service, the State agency shall make 
benefits available to the household not later than the fifth calendar 
day following the date of application. Whatever system a State agency 
uses to ensure meeting this delivery standard shall be designed to allow 
a reasonable opportunity for redemption of ATPs no later than the fifth 
calendar day following the date of application.
    (c) Combined allotments. For those households which are to receive a 
combined allotment, the State agency shall provide the benefits for both 
months as an aggregate (combined) allotment, or as two separate 
allotments, with the same validity period, made available at the same 
time, in accordance with the timeframes specified in Sec. 273.2 of this 
chapter.
    (d) Ongoing households. All households shall be placed on an 
issuance schedule so that they receive their benefits on or about the 
same date each month. The date upon which a household receives its 
initial allotment after certification need not be the date that the 
household must receive its subsequent allotments.
    (1) State agencies that use direct-mail issuance shall stagger 
issuance over at least 10 days of the issuance month, and may stagger 
issuance over the entire issuance month. State agencies using a method 
other than direct-mail issuance may stagger issuance throughout the 
month, or for a shorter period. When staggering benefit delivery, 
however, State agencies shall not

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allow more than 40 days to elapse between the issuance of any two 
allotments provided to a household participating longer than two 
consecutive, complete months. Regardless of the issuance schedule used, 
the State agency shall adhere to the reporting requirements specified in 
Sec. 274.4.
    (2) Upon the request of the tribal organization that exercises 
governmental jurisdiction over a reservation, the State agency shall 
stagger the issuance of benefits for eligible households located on 
reservations for at least 15 days each month.
    (3) When a participating household is transferred from one issuance 
system or procedure to another issuance system or procedure, the State 
agency shall not permit more than 40 days to elapse between the last 
issuance under the previous system or procedure, and the first issuance 
under the new system or procedure. The 40-day requirement does not apply 
to instances in which actions by recipients, such as failure to submit a 
monthly report, disrupt benefits. Transfers include, but are not limited 
to, households being moved into or out of a staggered issuance 
procedure, households on a fluctuating schedule within a staggered 
system, and households being moved from a direct-mail issuance system to 
an authorization document system. If the State agency determines that 
more than 40 days may elapse between issuances, the State agency shall 
divide the new issuance into two parts, with one part being issued 
within the 40-day period, and the second part, or supplemental issuance, 
being issued on the household's established issuance date in the new 
system or procedure. The supplemental issuance cannot provide the 
household more benefits than the household is entitled to receive.
    (4) Notwithstanding the above provisions, in months in which 
benefits have been suspended under the provisions of Sec. 271.7, State 
agencies may stagger issuance to certified households following the end 
of the suspension. In such situations, State agencies may, at their 
option, stagger issuance from the date issuance resumes through the end 
of the month or over a five-day period following the resumption of 
issuance, even if this results in benefits being issued after the end of 
the month in which the suspension occurred.
    (e) Issuance services. State agencies are responsible for 
determining the location and hours of operation of issuance services. In 
doing so, State agencies shall ensure that the issuance schedules set 
forth in paragraphs (b) and (c) of this section are met. In addition, 
issuance authorization documents, such as ATP cards, should be valid 
only in the geographic area within the State that is encompassed by the 
reconciliation system through which the issuance will be processed; 
however, the validity area may be extended within the State at the State 
agency's option. State agencies may also restrict the validity of these 
documents to smaller areas or particular issuance sites with minimal 
practicable inconvenience to affected households.
    (f) Issuance of coupons to households. The State agency shall issue 
coupon books in accordance with a table for coupon-book issuance 
provided by FNS, except as provided in paragraphs (e)(1), (e)(2), and 
(e)(3) of this section. The State agency shall issue the coupon books in 
consecutive serial number order whenever possible, starting with the 
lowest serial number in each coupon book denomination. The household 
member whose name appears on the ID card shall sign the coupon books; if 
more than one name appears, any named member may sign the books.
    (1) The State agency may deviate from the table if the specified 
coupon books are unavailable.
    (2) Exceptions from the table are authorized for blind and visually-
handicapped participants who request that all coupons be of one 
denomination. Recipients who have no fixed address (homeless), and 
residents of shelters for battered women and children, as defined in 
Sec. 271.2, and which are not authorized by FNS to redeem through 
wholesalers, may request that all or part of their coupons be of the $1 
denomination. State agencies are authorized to grant this request when 
feasible.
    (3) If a household is eligible for an allotment of $1, $3, or $5, 
the State agency shall adjust those allotments to $2, $4, or $6, 
respectively.

[[Page 788]]

    (g) Issuance in rural areas. Unless the area is served by an 
electronic benefit transfer system, State agencies must use direct-mail 
issuance in any rural areas where the State agency determines that 
recipients face substantial difficulties in obtaining transportation in 
order to obtain their food stamp benefits by methods other than direct-
mail issuance. State agencies must report any exceptions to direct-mail 
issuance as specified under Sec. 272.3(a)(2) and (b)(2) of this chapter.

[54 FR 7004, Feb. 15, 1989, as amended at 54 FR 51351, Dec. 15, 1989; 60 
FR 20182, Apr. 25, 1995; 65 FR 70212, Nov. 21, 2000]