Section

[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

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

[CITE: 7CFR273.10]

[Page 708-720]

TITLE 7--AGRICULTURE

CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

PART 273_CERTIFICATION OF ELIGIBLE HOUSEHOLDS--Table of Contents

Sec. 273.10 Determining household eligibility and benefit levels.

(a) Month of application--(1) Determination of eligibility and

benefit levels.

[[Page 709]]

(i) A household's eligibility shall be determined for the month of

application by considering the household's circumstances for the entire

month of application. Most households will have the eligibility

determination based on circumstances for the entire calendar month in

which the household filed its application. However, State agencies may,

with the prior approval of FNS, use a fiscal month if the State agency

determines that it is more efficient and satisfies FNS that the

accounting procedures fully comply with certification and issuance

requirements contained in these regulations. A State agency may elect to

use either a standard fiscal month for all households, such as from the

15th of one calendar month to the 15th of the next calendar month, or a

fiscal month that will vary for each household depending on the date an

individual files an application for the Program. Applicant households

consisting of residents of a public institution who apply jointly for

SSI and food stamps prior to release from the public institution in

accordance with Sec. 273.1(e)(2) will have their eligibility determined

for the month in which the applicant household was released from the

institution.

(ii) A household's benefit level for the initial months of

certification shall be based on the day of the month it applies for

benefits and the household shall receive benefits from the date of

application to the end of the month unless the applicant household

consists of residents of a public institution. For households which

apply for SSI prior to their release from a public institution in

accordance with Sec. 273.1(e)(2), the benefit level for the initial

month of certification shall be based on the date of the month the

household is released from the institution and the household shall

receive benefits from the date of the household's release from the

institution to the end of the month. As used in this section, the term

``initial month'' means the first month for which the household is

certified for participation in the Food Stamp Program following any

period during which the household was not certified for participation,

except for migrant and seasonal farmworker households. In the case of

migrant and seasonal farmworker households, the term ``initial month''

means the first month for which the household is certified for

participation in the Food Stamp Program following any period of more

than 1 month during which the household was not certified for

participation. Recertification shall be processed in accordance with

Sec. 273.10(a)(2). The State agency shall prorate a household's

benefits according to one of the two following options:

(A) The State agency shall use a standard 30-day calendar or fiscal

month. A household applying on the 31st of a month will be treated as

though it applied on the 30th of the month.

(B) The State agency shall prorate benefits over the exact length of

a particular calendar or fiscal month.

(iii) To determine the amount of the prorated allotment, the State

agency shall use either the appropriate Food Stamp Allotment Proration

Table provided by FNS or whichever of the following formulae is

appropriate:

(A) For State agencies which use a standard 30-day calendar or

fiscal month the formula is as follows, keeping in mind that the date of

application for someone applying on the 31st of a month is the 30th:

[GRAPHIC] [TIFF OMITTED] TR07OC94.022

(31-date of application)

full month's benefits x ---------------------- = allotment

(B) For State agencies which use the exact number of days in a

month, the formula is:

[GRAPHIC] [TIFF OMITTED] TR07OC94.022

[[Page 710]]

(number of days in month+1-date of application)

full month's benefits x ---------------------------------- = allotment

number of days in month

through 99 cents, the State agency shall round the product down to the

nearest lower whole dollar. If the computation results in an allotment

of less than $10, then no issuance shall be made for the initial month.

(2) Application for recertification. Eligibility for recertification

shall be determined based on circumstances anticipated for the

certification period starting the month following the expiration of the

current certification period. The level of benefits for recertifications

shall be based on the same anticipated circumstances, except for

retrospectively budgeted households which shall be recertified in

accordance with Sec. 273.21(f)(2). If a household, other than a migrant

or seasonal farmworker household, submits an application after the

household's certification period has expired, that application shall be

considered an initial application and benefits for that month shall be

prorated in accordance with paragraph (a)(1)(ii) of this section. If a

household's failure to timely apply for recertification was due to an

error of the State agency and therefore there was a break in

participation, the State agency shall follow the procedures in Sec.

273.14(e). In addition, if the household submits an application for

recertification prior to the end of its certification period but is

found ineligible for the first month following the end of the

certification period, then the first month of any subsequent

participation shall be considered an initial month. Conversely, if the

household submits an application for recertification prior to the end of

its certification period and is found eligible for the first month

following the end of the certification period, then that month shall not

be an initial month.

(3) Anticipated changes. Because of anticipated changes, a household

may be eligible for the month of application, but ineligible in the

subsequent month. The household shall be entitled to benefits for the

month of application even if the processing of its application results

in the benefits being issued in the subsequent month. Similarly, a

household may be ineligible for the month of application, but eligible

in the subsequent month due to anticipated changes in circumstances.

Even though denied for the month of application, the household does not

have to reapply in the subsequent month. The same application shall be

used for the denial for the month of application and the determination

of eligibility for subsequent months, within the timeliness standards in

Sec. 273.2.

(4) Changes in allotment levels. As a result of anticipating

changes, the household's allotment for the month of application may

differ from its allotment in subsequent months. The State agency shall

establish a certification period for the longest possible period over

which changes in the household's circumstances can be reasonably

anticipated. The household's allotment shall vary month to month within

the certification period to reflect changes anticipated at the time of

certification, unless the household elects the averaging techniques in

paragraphs (c)(3) and (d)(3) of this section.

(b) Determining resources. Available resources at the time the

household is interviewed shall be used to determine the household's

eligibility.

of determining the household's eligibility and level of benefits, the

State agency shall take into account the income already received by the

household during the certification period and any anticipated income the

household and the State agency are reasonably certain will be received

during the remainder of the certification period. If the amount of

income that will be received, or when it will be received, is uncertain,

that portion of the household's income that is uncertain shall not be

counted by the State agency. For example, a household anticipating

income from a new source, such as a new job or recently applied for

public

[[Page 711]]

assistance benefits, may be uncertain as to the timing and amount of the

initial payment. These moneys shall not be anticipated by the State

agency unless there is reasonable certainty concerning the month in

which the payment will be received and in what amount. If the exact

amount of the income is not known, that portion of it which can be

anticipated with reasonable certainty shall be considered as income. In

cases where the receipt of income is reasonably certain but the monthly

amount may fluctuate, the household may elect to income average.

Households shall be advised to report all changes in gross monthly

income as required by Sec. 273.12.

(ii) Income received during the past 30 days shall be used as an

indicator of the income that is and will be available to the household

during the certification period. However, the State agency shall not use

past income as an indicator of income anticipated for the certification

period if changes in income have occurred or can be anticipated. If

income fluctuates to the extent that a 30-day period alone cannot

provide an accurate indication of anticipated income, the State agency

and the household may use a longer period of past time if it will

provide a more accurate indication of anticipated fluctuations in future

income. Similarly, if the household's income fluctuates seasonally, it

may be appropriate to use the most recent season comparable to the

certification period, rather than the last 30 days, as one indicator of

anticipated income. The State agency shall exercise particular caution

in using income from a past season as an indicator of income for the

certification period. In many cases of seasonally fluctuating income,

the income also fluctuates from one season in one year to the same

season in the next year. However, in no event shall the State agency

automatically attribute to the household the amounts of any past income.

The State agency shall not use past income as an indicator of

anticipated income when changes in income have occurred or can be

anticipated during the certification period.

(2) Income only in month received. (i) Income anticipated during the

certification period shall be counted as income only in the month it is

expected to be received, unless the income is averaged. Whenever a full

month's income is anticipated but is received on a weekly or biweekly

basis, the State agency shall convert the income to a monthly amount by

multiplying weekly amounts by 4.3 and biweekly amounts by 2.15, use the

State Agency's PA conversion standard, or use the exact monthly figure

if it can be anticipated for each month of the certification period.

Nonrecurring lump-sum payments shall be counted as a resource starting

in the month received and shall not be counted as income.

(ii) Wages held at the request of the employee shall be considered

income to the household in the month the wages would otherwise have been

paid by the employer. However, wages held by the employer as a general

practice, even if in violation of law, shall not be counted as income to

the household, unless the household anticipates that it will ask for and

receive an advance, or that it will receive income from wages that were

previously held by the employer as a general practice and that were,

therefore, not previously counted as income by the State agency.

Advances on wages shall count as income in the month received only if

reasonably anticipated as defined in paragraph (c)(1) of this section.

(iii) Households receiving income on a recurring monthly or

semimonthly basis shall not have their monthly income varied merely

because of changes in mailing cycles or pay dates or because weekends or

holidays cause additional payments to be received in a month.

(3) Income averaging. (i) Income may be averaged in accordance with

methods established by the State agency to be applied Statewide for

categories of households. When averaging income, the State agency shall

use the household's anticipation of monthly income fluctuations over the

certification period. An average must be recalculated at recertification

and in response to changes in income, in accordance with Sec.

273.12(c), and the State agency shall inform the household of the amount

of income used to calculate the allotment. Conversion of income received

weekly or biweekly in accordance with

[[Page 712]]

paragraph (c)(2) of this section does not constitute averaging.

(ii) Households which, by contract or self-employment, derive their

annual income in a period of time shorter than 1 year shall have that

income averaged over a 12-month period, provided the income from the

contract is not received on an hourly or piecework basis. These

households may include school employees, sharecroppers, farmers, and

other self-employed households. However, these provisions do not apply

to migrant or seasonal farmworkers. The procedures for averaging self-

employed income are described in Sec. 273.11. Contract income which is

not the household's annual income and is not paid on an hourly or

piecework basis shall be prorated over the period the income is intended

to cover.

(iii) Earned and unearned educational income, after allowable

exclusions, shall be averaged over the period which it is intended to

cover. Income shall be counted either in the month it is received, or in

the month the household anticipates receiving it or receiving the first

installment payment, although it is still prorated over the period it is

intended to cover.

(d) Determining deductions. Deductible deductions include only

certain dependent care, shelter, child support and medical costs as

described in Sec. 273.9.

(1) Disallowed expenses. (i) Any expense, in whole or part, covered

by educational income which has been excluded pursuant to the provisions

of Sec. 273.9(c)(3) shall not be deductible. For example, the portion

of rent covered by excluded vendor payments shall not be calculated as

part of the household's shelter cost. In addition, an expense which is

covered by an excluded vendor payment that has been converted to a

direct cash payment under the approval of a federally authorized

demonstration project as specified under Sec. 273.9(c)(1) shall not be

deductible. However, that portion of an allowable medical expense which

is not reimbursable shall be included as part of the household's medical

expenses. If the household reports an allowable medical expense at the

time of certification but cannot provide verification at that time, and

if the amount of the expense cannot be reasonably anticipated based upon

available information about the recipient's medical condition and public

or private medical insurance coverage, the household shall have the

nonreimbursable portion of the medical expense considered at the time

the amount of the expense or reimbursement is reported and verified. A

dependent care expense which is reimbursed or paid for by the Job

Opportunities and Basic Skills Training (JOBS) program under title IV-F

of the Social Security Act (42 U.S.C. 681) or the Transitional Child

Care (TCC) program shall not be deductible. A utility expense which is

reimbursed or paid by an excluded payment, including HUD or FmHA utility

reimbursements, shall not be deductible.

(ii) Expenses shall only be deductible if the service is provided by

someone outside of the household and the household makes a money payment

for the service. For example, a dependent care deduction shall not be

allowed if another household member provides the care, or compensation

for the care is provided in the form of an inkind benefit, such as food.

(2) Billed expenses. Except as provided in paragraph (d)(3) of this

section a deduction shall be allowed only in the month the expense is

billed or otherwise becomes due, regardless of when the household

intends to pay the expense. For example, rent which is due each month

shall be included in the household's shelter costs, even if the

household has not yet paid the expense. Amounts carried forward from

past billing periods are not deductible, even if included with the most

recent billing and actually paid by the household. In any event, a

particular expense may only be deducted once.

(3) Averaging expenses. Households may elect to have fluctuating

expenses averaged. Households may also elect to have expenses which are

billed less often than monthly averaged forward over the interval

between scheduled billings, or, if there is no scheduled interval,

averaged forward over the period the expense is intended to cover. For

example, if a household receives a single bill in February which covers

a 3-month supply of fuel oil, the bill may be averaged over February,

March, and April. The household may elect to have

[[Page 713]]

one-time only expenses averaged over the entire certification period in

which they are billed. Households reporting one-time only medical

expenses during their certification period may elect to have a one-time

deduction or to have the expense averaged over the remaining months of

their certification period. Averaging would begin the month the change

would become effective. For households certified for 24 months that have

one-time medical expenses, the State agency must use the following

procedure. In averaging any one-time medical expense incurred by a

household during the first 12 months, the State agency must give the

household the option of deducting the expense for one month, averaging

the expense over the remainder of the first 12 months of the

certification period, or averaging the expense over the remaining months

in the certification period. One-time expenses reported after the 12th

month of the certification period will be deducted in one month or

averaged over the remaining months in the certification period, at the

household's option.

(4) Anticipating expenses. The State agency shall calculate a

household's expenses based on the expenses the household expects to be

billed for during the certification period. Anticipation of the expense

shall be based on the most recent month's bills, unless the household is

reasonably certain a change will occur. When the household is not

claiming the utility standard, the State agency may anticipate changes

during the certification period based on last year's bills from the same

period updated by overall price increases; or, if only the most recent

bill is available, utility cost increases or decreases over the months

of the certification period may be based on utility company estimates

for the type of dwelling and utilities used by the household. The State

agency shall not average past expenses, such as utility bills for the

last several months, as a method of anticipating utility costs for the

certification period. At certification and recertification, the

household shall report and verify all medical expenses. The household's

monthly medical deduction for the certification period shall be based on

the information reported and verified by the household, and any

anticipated changes in the household's medical expenses that can be

reasonably expected to occur during the certification period based on

available information about the recipient's medical condition, public or

private insurance coverage, and current verified medical expenses. The

household shall not be required to file reports about its medical

expenses during the certification period. If the household voluntarily

reports a change in its medical expenses, the State agency shall verify

the change in accordance with Sec. 273.2(f)(8)(ii) if the change would

increase the household's allotment. The State agency has the option of

either requiring verification prior to acting on the change, or

requiring the verification prior to the second normal monthly allotment

after the change is reported. In the case of a reported change that

would decrease the household's allotment, or make the household

ineligible, the State agency shall act on the change without requiring

verification, though verification which is required by Sec. 273.2(f)(8)

shall be obtained prior to the household's recertification. If a child

in the household reaches his or her second birthday during the

certification period, the $200 maximum dependent care deduction defined

in Sec. 273.9(d)(4) shall be adjusted in accordance with this section

not later than the household's next regularly scheduled recertification.

(5) Conversion of deductions. The income conversion procedures in

paragraph (c)(2) of this section shall also apply to expenses billed on

a weekly or biweekly basis.

(6) Energy Assistance Payments. Except for payments made under the

Low Income Energy Assistance Act of 1981, the State agency shall prorate

energy assistance payments as provided for in Sec. 273.9(d) over the

entire heating or cooling season the payment is intended to cover.

(7) Households which contain a member who is a disabled SSI

recipient in accordance with paragraphs (2), (3), (4) or (5) of the

definition of a disabled member in Sec. 271.2 or households which

contain a member who is a recipient of SSI benefits and the household is

determined within the 30-day processing

[[Page 714]]

standard to be categorically eligible (as discussed in Sec. 273.2(j))

or determined to be eligible as an NPA household and later becomes a

categorically eligible household, shall be entitled to the excess

medical deduction of Sec. 273.9(d)(3) and the uncapped excess shelter

expense deduction of Sec. 273.9(d)(5) for the period for which the SSI

recipient is authorized to receive SSI benefits or the date of the food

stamp application, whichever is later, if the household incurs such

expenses. Households, which contain an SSI recipient as discussed in

this paragraph, which are determined ineligible as an NPA household and

later become categorically eligible and entitled to restored benefits in

accordance with Sec. 273.2(j)(1)(iv), shall receive restored benefits

using the medical and excess shelter expense deductions from the

beginning of the period for which SSI benefits are paid, the original

food stamp application date or December 23, 1985, whichever is later, if

the household incurs such expenses.

(8) Child support deduction. State agencies may budget child support

payments prospectively, in accordance with paragraphs (d)(2) through

(d)(5) of this section, or retrospectively, in accordance with Sec.

273.21(b) and Sec. 273.21(f)(2), regardless of the budgeting system

used for the household's other circumstances.

(e) Calculating net income and benefit levels--(1) Net monthly

income. (i) To determine a household's net monthly income, the State

agency shall:

(A) Add the gross monthly income earned by all household members and

the total monthly unearned income of all household members, minus income

exclusions, to determine the household's total gross income. Net losses

from the self-employment income of a farmer shall be offset in

accordance with Sec. 273.11(a)(2)(iii).

(B) Multiply the total gross monthly earned income by 20 percent and

subtract that amount from the total gross income; or multiply the total

gross monthly earned income by 80 percent and add that to the total

monthly unearned income, minus income exclusions.

(D) If the household is entitled to an excess medical deduction as

provided in Sec. 273.9(d)(3), determine if total medical expenses

exceed $35. If so, subtract that portion which exceeds $35.

(E) Subtract allowable monthly dependent care expenses, if any, up

to a maximum amount as specified under Sec. 273.9(d)(4) for each

dependent.

(F) Subtract allowable monthly child support payments in accordance

with Sec. 273.9(d)(7).

(G) Subtract the homeless shelter deduction, if any, up to the

maximum of $143.

(H) Total the allowable shelter expenses to determine shelter costs,

unless a deduction has been subtracted in accordance with paragraph

(e)(1)(i)(G) of this section. Subtract from total shelter costs 50

percent of the household's monthly income after all the above deductions

have been subtracted. The remaining amount, if any, is the excess

shelter cost. If there is no excess shelter cost, the net monthly income

has been determined. If there is excess shelter cost, compute the

shelter deduction according to paragraph (e)(1)(i)(I) of this section.

(I) Subtract the excess shelter cost up to the maximum amount

allowed for the area (unless the household is entitled to the full

amount of its excess shelter expenses) from the household's monthly

income after all other applicable deductions. Households not subject to

a capped shelter expense shall have the full amount exceeding 50 percent

of their net income subtracted. The household's net monthly income has

been determined.

(ii) In calculating net monthly income, the State agency shall use

one of the following two procedures:

(A) Round down each income and allotment calculation that ends in 1

through 49 cents and round up each calculation that ends in 50 through

99 cents; or

(B) Apply the rounding procedure that is currently in effect for the

State's Temporary Assistance for Needy Families (TANF) program. If the

State TANF program includes the cents in income calculations, the State

agency may use the same procedures for food stamp income calculations.

Whichever procedure is used, the State agency may elect to include the

cents associated with each individual shelter

[[Page 715]]

cost in the computation of the shelter deduction and round the final

shelter deduction amount. Likewise, the State agency may elect to

include the cents associated with each individual medical cost in the

computation of the medical deduction and round the final medical

deduction amount.

(2) Eligibility and benefits. (i)(A) Households which contain an

elderly or disabled member as defined in Sec. 271.2, shall have their

net income, as calculated in paragraph (e)(1) of this section (except

for households considered destitute in accordance with paragraph (e)(3)

of this section), compared to the monthly income eligibility standards

defined in Sec. 273.9(a)(2) for the appropriate household size to

determine eligibility for the month.

(B) In addition to meeting the net income eligibility standards,

households which do not contain an elderly or disabled member shall have

their gross income, as calculated in accordance with paragraph

(e)(1)(i)(A) of this section, compared to the gross monthly income

standards defined in Sec. 273.9(a)(1) for the appropriate household

size to determine eligibility for the month.

(e)(3) of this section, the State agency shall determine a household's

eligibility by computing its gross and net income according to paragraph

(e)(3) of this section, and comparing, as appropriate, the gross and/or

net income to the corresponding income eligibility standard in

accordance with Sec. 273.9(a) (1) or (2).

(D) If a household contains a member who is fifty-nine years old on

the date of application, but who will become sixty before the end of the

month of application, the State agency shall determine the household's

eligibility in accordance with paragraph (e)(2)(i)(A) of this section.

(E) If a household contains a student whose income is excluded in

accordance with Sec. 273.9(c)(7) and the student becomes 18 during the

month of application, the State agency shall exclude the student's

earnings in the month of application and count the student's earnings in

the following month. If the student becomes 18 during the certification

period, the student's income shall be excluded until the month following

the month in which the student turns 18.

(ii)(A) Except as provided in paragraphs (a)(1), (e)(2)(iii) and

(e)(2)(vi) of this section, the household's monthly allotment shall be

equal to the maximum food stamp allotment for the household's size

reduced by 30 percent of the household's net monthly income as

calculated in paragraph (e)(1) of this section. If 30 percent of the

household's net income ends in cents, the State agency shall round in

one of the following ways:

(1) The State agency shall round the 30 percent of net income up to

the nearest higher dollar; or

(2) The State agency shall not round the 30 percent of net income at

all. Instead, after subtracting the 30 percent of net income from the

appropriate Thrifty Food Plan, the State agency shall round the

allotment down to the nearest lower dollar.

(B) If the calculation of benefits in accordance with paragraph

(e)(2)(ii)(A) of this section for an initial month would yield an

allotment of less than $10 for the household, no benefits shall be

issued to the household for the initial month.

households shall receive minimum monthly allotments equal to the minimum

benefit and all eligible households with three or more members which are

entitled to $1, $3, and $5 allotments shall receive allotments, of $2,

$4, and $6, respectively, to correspond with current coupon book

determinations.

(iii) For an eligible household with three or more members which is

entitled to no benefits (except because of the proration requirements of

paragraph (a)(1) and the provision precluding issuances of less than $10

in an initial month of paragraph (e)(2)(ii)(B)) of this section:

(A) The State agency shall deny the household's application on the

grounds that its net income exceeds the level at which benefits are

issued; or

(B) The State agency shall certify the household but suspend its

participation, subject to the following conditions:

[[Page 716]]

(1) The State agency shall inform the suspended household, in

writing, of its suspended status, and of its rights and responsibilities

while it is in that status.

(2) The State agency shall set the household's change reporting

requirements and the manner in which those changes will be reported and

processed.

(3) The State agency shall specify which changes shall entitle the

household to have its status converted from suspension to issuance, and

which changes shall require the household to reapply for participation.

(4) The household shall retain the right to submit a new application

while it is suspended.

(5) The State agency shall convert a household from suspension to

issuance status, without requiring an additional certification

interview, and issue its initial allotment, within ten days of the date

the household reports the change.

(6) The State agency shall prorate the household's benefits, in the

first month after the suspension period, from the date the household

reports a change, in accordance with paragraph (a)(1) of this section.

(7) The State agency may delay the work registration of the

household's members until the household is determined to be entitled to

benefits.

(iv) For those eligible households which are entitled to no benefits

in their initial month of application, in accordance with paragraph

(a)(1) or (e)(2)(ii)(B) of this section, but are entitled to benefits in

subsequent months, the State agency shall certify the households

beginning with the month of application.

(v) When a household's circumstances change and it becomes entitled

to a different income eligibility standard, the State agency shall apply

the different standard at the next recertification or whenever the State

agency changes the household's eligibility, benefit level or

certification period, whichever occurs first.

(vi) During a month when a reduction, suspension or cancellation of

allotments has been ordered pursuant to the provisions of Sec. 271.7,

eligible housholds shall have their benefits calculated as follows:

(A) If a benefit reduction is ordered, State agencies shall reduce

the maximum food stamp allotment amounts for each household size by the

percentage ordered in the Department's notice on benefit reductions.

State agencies shall multiply the maximum food stamp allotment amounts

by the percentage specified in the FNS notice; if the result ends in 1

through 99 cents, round the result up to the nearest higher dollar; and

subtract the result from the normal maximum food stamp allotment amount.

In calculating benefit levels for eligible households, State agencies

would follow the procedures detailed in paragraph (e)(2)(ii) of this

section and substitute the reduced maximum food stamp allotment amounts

for the normal maximum food stamp allotment amounts.

(B) Except as provided in paragraphs (a)(1), (e)(2)(ii)(B), and

(e)(2)(vi)(C) of this section, one- and two-person households shall be

provided with at least the minimum benefit.

percent or more of the benefits projected to be issued for the affected

month, the provision for a minimum benefit for households with one or

two members only may be disregarded and all households may have their

benefits lowered by reducing maximum food stamp allotment amounts by the

percentage specified by the Department. The benefit reduction notice

issued by the Department to effectuate a benefit reduction will specify

whether minimum benefits for households with one or two members only are

to be provided to households.

(D) If the action in effect is a suspension or cancellation,

eligible households shall have their allotment levels calculated

according to the procedures in paragraph (e)(2)(ii) of this section.

However, the allotments shall not be issued for the month the suspension

or cancellation is in effect. The provision for the minimum benefit for

households with one or two members only shall be disregarded and all

households shall have their benefits suspended or cancelled for the

designated month.

(E) In the event of a suspension or cancellation, or a reduction

exceeding

[[Page 717]]

90 percent of the affected month's projected issuance, all households,

including one and two-person households, shall have their benefits

suspended, cancelled or reduced by the percentage specified by FNS.

(3) Destitute households. Migrant or seasonal farmworker households

may have little or no income at the time of application and may be in

need of immediate food assistance, even though they receive income at

some other time during the month of application. The following

procedures shall be used to determine when migrant or seasonal

farmworker households in these circumstances may be considered destitute

and, therefore, entitled to expedited service and special income

calculation procedures. Households other than migrant or seasonal

farmworker households shall not be classified as destitute.

(i) Households whose only income for the month of application was

received prior to the date of application, and was from a terminated

source, shall be considered destitute households and shall be provided

expedited service.

(A) If income is received on a monthly or more frequent basis, it

shall be considered as coming from a terminated source if it will not be

received again from the same source during the balance of the month of

application or during the following month.

(B) If income is normally received less often than monthly, the

nonreceipt of income from the same source in the balance of the month of

application or in the following month is inappropriate to determine

whether or not the income is terminated. For example, if income is

received on a quarterly basis (e.g., on January 1, April 1, July 1, and

October 1), and the household applies in mid-January, the income should

not be considered as coming from a terminated source merely because no

further payments will be received in the balance of January or in

February. The test for whether or not this household's income is

terminated is whether the income is anticipated to be received in April.

Therefore, for households that normally receive income less often than

monthly, the income shall be considered as coming from a terminated

source if it will not be received in the month in which the next payment

would normally be received.

(ii) Households whose only income for the month of application is

from a new source shall be considered destitute and shall be provided

expedited service if income of more than $25 from the new source will

not be received by the 10th calendar day after the date of application.

(A) Income which is normally received on a monthly or more frequent

basis shall be considered to be from a new source if income of more than

$25 has not been received from that source within 30 days prior to the

date the application was filed.

(B) If income is normally received less often than monthly, it shall

be considered to be from a new source if income of more than $25 was not

received within the last normal interval between payments. For example,

if a household applies in early January and is expecting to be paid

every 3 months, starting in late January, the income shall be considered

to be from a new source if no income of more than $25 was received from

the source during October or since that time.

(iii) Households may receive both income from a terminated source

prior to the date of application, and income from a new source after the

date of application, and still be considered destitute if they receive

no other income in the month of application and income of more than $25

from the new source will not be received by the 10th day after the date

of application.

(iv) Destitute households shall have their eligibility and level of

benefits calculated for the month of application by considering only

income which is received between the first of the month and the date of

application. Any income from a new source that is anticipated after the

day of application shall be disregarded.

(v) Some employers provide travel advances to cover the travel costs

of new employees who must journey to the location of their new

employment. To the extent that these payments are excluded as

reimbursements, receipt of travel advances will not affect the

determination of when a household is

[[Page 718]]

destitute. However, if the travel advance is by written contract an

advance of wages that will be subtracted from wages later earned by the

employee, rather than a reimbursement, the wage advance shall count as

income. In addition, the receipt of a wage advance for travel costs of a

new employee shall not affect the determination of whether subsequent

payments from the employer are from a new source of income, nor whether

a household shall be considered destitute. For example, if a household

applies on May 10, has received a $50 advance for travel from its new

employer on May 1 which by written contract is an advance on wages, but

will not receive any other wages from the employer until May 30, the

household shall be considered destitute. The May 30 payment shall be

disregarded, but the wage advance received prior to the date of

application shall be counted as income.

(vi) A household member who changes jobs but continues to work for

the same employer shall be considered as still receiving income from the

same source. A migrant farmworker's source of income shall be considered

to be the grower for whom the migrant is working at a particular point

in time, and not the crew chief. A migrant who travels with the same

crew chief but moves from one grower to another shall be considered to

have moved from a terminated income source to a new source.

(vii) The above procedures shall apply at initial application and at

recertification, but only for the first month of each certification

period. At recertification, income from a new source shall be

disregarded in the first month of the new certification period if income

of more than $25 will not be received from this new source by the 10th

calendar day after the date of the household's normal issuance cycle.

(4) Thrifty Food Plan (TFP) and Maximum Food Stamp Allotments.

(i) Maximum food stamp allotment level. Maximum food stamp

allotments shall be based on the TFP as defined in Sec. 271.2, and they

shall be uniform by household size throughout the 48 contiguous States

and the District of Columbia. The TFP for Hawaii shall be the TFP for

the 48 States and DC adjusted for the price of food in Honolulu. The

TFPs for urban, rural I, and rural II parts of Alaska shall be the TFP

for the 48 States and DC adjusted by the price of food in Anchorage and

further adjusted for urban, rural I, and rural II Alaska as defined in

Sec. 272.7(c). The TFPs for Guam and the Virgin Islands shall be

adjusted for changes in the cost of food in the 48 States and DC,

provided that the cost of these TFPs may not exceed the cost of the

highest TFP for the 50 States. The TFP amounts and maximum allotments in

each area are adjusted annually and will be prescribed in a table posted

on the FNS web site, at www.fns.usda.gov/fsp.

(ii) Adjustment. Effective October 1, 1996, the maximum food stamp

allotments must be based on 100% of the cost of the TFP as defined in

Sec. 271.2 of this chapter for the preceding June, rounded to the

nearest lower dollar increment, except that on October 1, 1996, the

allotments may not fall below those in effect on September 30, 1996.

(f) Certification periods. The State agency must certify each

eligible household for a definite period of time. State agencies must

assign the longest certification period possible based on the

predictability of the household's circumstances. The first month of the

certification period will be the first month for which the household is

eligible to participate. The certification period cannot exceed 12

months, except as specified in paragraphs (f)(1) and (f)(2) of this

section:

(1) Households in which all adult members are elderly or disabled.

The State agency may certify for up to 24 months households in which all

adult members are elderly or disabled. The State agency must have at

least one contact with each household every 12 months. The State agency

may use any method it chooses for this contact.

(2) Households residing on a reservation. The State agency must

certify for 24 months those households residing on a reservation which

it requires to submit monthly reports in accordance with Sec. 273.21,

unless the State agency obtains a waiver from FNS. In the waiver request

the State agency must include justification for a shorter period and

input from the affected Indian

[[Page 719]]

tribal organization(s). When households move off the reservation, the

State agency must either continue their certification periods until they

would normally expire or shorten the certification periods in accordance

with paragraph (f)(4) of this section.

(3) Certification period length. The State agency should assign each

household the longest certification period possible, consistent with its

circumstances.

(i) Households should be assigned certification periods of at least

6 months, unless the household's circumstances are unstable or the

household contains an ABAWD.

(ii) Households with unstable circumstances, such as households with

zero net income, and households with an ABAWD member should be assigned

certification periods consistent with their circumstances, but generally

no less than 3 months.

(iii) Households may be assigned 1- or 2-month certification periods

when it appears likely that the household will become ineligible for

food stamps in the near future.

(4) Shortening certification periods. The State agency may not end a

household's certification period earlier than its assigned termination

date, unless the State agency receives information that the household

has become ineligible, or the household has not complied with the

requirements of Sec. 273.12(c)(3). Loss of public assistance or a

change in employment status is not sufficient in and of itself to meet

the criteria necessary for shortening the certification period. The

State agency must close the household's case or adjust the household's

benefit amount in accordance with Sec. 273.12(c)(1) or (c)(2) in

response to reported changes. The State agency may not use the Notice of

Expiration to shorten a certification period.

(5) Lengthening certification periods. State agencies may lengthen a

household's current certification period once it is established, as long

as the total months of the certification period do not exceed 24 months

for households in which all adult members are elderly or disabled, or 12

months for other households. If the State agency extends a household's

certification period, it must advise the household of the new

certification ending date with a notice containing the same information

as the notice of eligibility set forth in paragraph (g)(1)(i)(A) of this

section.

(g) Certification notices to households--(1) Initial applications.

State agencies shall provide applicants with one of the following

written notices as soon as a determination is made, but no later than 30

days after the date of the initial application:

(i) Notice of eligibility. (A) If an application is approved, the

State agency shall provide the household with written notice of the

amount of the allotment and the beginning and ending dates of the

certification period. The household shall also be advised of variations

in the benefit level based on changes anticipated at the time of

certification. If the initial allotment contains benefits for both the

month of application and the current month's benefits, the notice shall

explain that the initial allotment includes more than 1 month's

benefits, and shall indicate the monthly allotment amount for the

remainder of the certification period. The notice shall also advise the

household of its right to a fair hearing, the telephone number of the

food stamp office (a toll-free number or a number where collect calls

will be accepted for households outside the local calling area), and, if

possible, the name of the person to contact for additional information.

If there is an individual or organization available that provides free

legal representation, the notice shall also advise the household of the

availability of the services. The State agency may also include in the

notice a reminder of the household's obligation to report changes in

circumstance and of the need to reapply for continued participation at

the end of the certification period. Other information which would be

useful to the household may also be included.

(B) In cases where a household's application is approved on an

expedited basis without verification, as provided in Sec. 273.2(i), the

notice shall explain that the household must provide the verification

which was waived. If the State agency has elected to assign a longer

certification period to some households certified on an expedited

[[Page 720]]

basis, the notice shall also explain the special conditions of the

longer certification period, as specified in Sec. 273.2(i), and the

consequences of failure to provide the postponed verification.

certification, as required in Sec. 273.14(b), the notice of eligibility

may be combined with the notice of expiration or separate notices may be

sent.

(ii) Notice of denial. If the application is denied, the State

agency shall provide the household with written notice explaining the

basis for the denial, the household's right to request a fair hearing,

the telephone number of the food stamp office (a toll-free number or a

number where collect calls will be accepted for households outside the

local calling area), and, if possible, the name of the person to contact

for additional information. If there is an individual or organization

available that provides free legal representation, the notice shall also

advise the household of the availability of the service. A household

which is potentially categorically eligible but whose food stamp

application is denied shall be asked to inform the State agency if it is

approved to receive PA and/or SSI benefits or benefits from a State or

local GA program. In cases where the State agency has elected to use a

notice of denial when a delay was caused by the household's failure to

take action to complete the application process, as provided in Sec.

273.2(h)(2), the notice of denial shall also explain: The action that

the household must take to reactivate the application; that the case

will be reopened without a new application if action is taken within 30

days of the date the notice of denial was mailed; and that the household

must submit a new application if, at the end of the 30-day period, the

household has not taken the needed action and wishes to participate in

the program. If the State agency chooses the option specified in Sec.

273.2(h)(2) of reopening the application in cases where verification is

lacking only if household provides verification within 30 days of the

date of the initial request for verification, the State agency shall

include on the notice of denial the date by which the household must

provide the missing verification.

(iii) Notice of pending status. If the application is to be held

pending because some action by the State is necessary to complete the

application process, as specified in Sec. 273.2(h)(2), or the State

agency has elected to pend all cases regardless of the reason for delay,

the State agency shall provide the household with a written notice which

informs the household that its application has not been completed and is

being processed. If some action by the household is also needed to

complete the application process, the notice shall also explain what

action the household must take and that its application will be denied

if the household fails to take the required action within 60 days of the

date the application was filed. If the State agency chooses the option

specified in Sec. 273.2(h) (2) and (3) of holding the application

pending in cases where verification is lacking only until 30 days

following the date verification was initially requested, the State

agency shall include on the notice of pending status the date by which

the household must provide the missing verification.

(2) Applications for recertification. The State agency shall provide

households that have filed an application by the 15th of the last month

of their certification period with either a notice of eligibility or a

notice of denial by the end of the current certification period if the

household has complied with all recertification requirements. The State

agency shall provide households that have received a notice of

expiration at the time of certification, and have timely reapplied, with

either a notice of eligibility or a notice of denial not later than 30

days after the date of the household's initial opportunity to obtain its

last allotment.

[Amdt. 132, 43 FR 47889, Oct. 17, 1978]

Editorial Note: For Federal Register citations affecting Sec.

273.10, see the List of CFR Sections Affected, which appears in the

Finding Aids section of the printed volume and on GPO Access.