[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: 7CFR274.6]



[Page 803-808]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 274_ISSUANCE AND USE OF COUPONS--Table of Contents

 

Sec. 274.6  Replacement issuances to households.



    (a) Providing replacement issuance. (1) Subject to the restrictions 

in paragraph (b) of this section, State agencies shall provide 

replacement issuances to



[[Page 804]]



a household when the household reports that:

    (i) Its authorization document was not received in the mail or was 

stolen from the mail, was stolen after receipt, was destroyed in a 

household misfortune, or was improperly manufactured or mutilated;

    (ii) Its coupons were not received in the mail, were stolen from the 

mail, were destroyed in a household misfortune, or were improperly 

manufactured or mutilated;

    (iii) Food purchased with food stamps was destroyed in a household 

misfortune; or

    (iv) It received a partial coupon allotment.

    (2) State agencies shall not provide replacement issuances to 

households when coupons are lost, stolen or misplaced after receipt, 

authorization documents are lost or misplaced after receipt, when 

authorization documents or coupons are totally destroyed after receipt 

in other than a disaster or misfortune, or when coupons sent by 

registered or certified mail are signed for by anyone residing with or 

visiting the household. In addition, replacement issuances shall not be 

made if the household or its authorized representative has not signed 

and returned the household statement required in paragraph (c) of this 

section, where applicable.

    (3) Where FNS has issued a disaster declaration and the household is 

eligible for disaster food stamp benefits under the provisions of part 

280, the household shall not receive both the disaster allotment and a 

replacement allotment for a misfortune.

    (4) In order for a replacement to be considered non-countable, the 

replacement must not result in a loss to the Program.

    (b) Replacement restrictions. (1) Replacement issuances shall be 

provided only if a household timely reports a loss orally or in writing, 

and provides a statement of nonreceipt if the original authorization 

document or allotment has not been returned to the State agency at the 

time of the request for replacement. The report will be considered 

timely if it is made to the State agency within 10 days of the date an 

authorization document is stolen from the household, or an authorization 

document, coupons, or food purchased with food stamps is destroyed in a 

household misfortune. In mail issuance (ATPs or coupons), the report 

must be made within the period of intended use, unless the original 

issuance was made after the 20th of the month, in which case the period 

of intended use is 20 days from original issuance, or the last day of 

the next month (State agency option).

    (2) The number of replacement issuances which a household may 

receive shall be limited as follows:

    (i) State agencies shall limit replacement issuances to a total of 

two countable replacements in six months for authorization documents or 

coupons not received in, or stolen from, the mail; authorization 

documents stolen after receipt; and partial coupon allotments. However, 

no limit shall be put on the number of replacements of partial 

allotments if the partial allotments were due to State agency error. 

Separate limits shall not apply for each of these types of loss.

    (ii) State agencies shall limit replacement issuances per household 

to two countable replacements in six months for authorization documents 

or coupons reported as destroyed in a household misfortune. This limit 

is in addition to the limit in paragraph (b)(2)(i) of this section.

    (iii) No limit on the number of replacements shall be placed on the 

replacement of authorization documents or coupons which were improperly 

manufactured or mutilated or food purchased with food stamp benefits 

which was destroyed in a household misfortune.

    (iv) The replacement issuance shall not be considered a countable 

replacement if:

    (A) The original or replacement issuance is returned or otherwise 

recouped by the State agency;

    (B) The original authorization document is not transacted;

    (C) The replacement authorization document is not transacted; or

    (D) The replacement is being issued due to a State agency issuance 

error.

    (3) Except for households certified under 7 CFR part 280, 

replacement issuances shall be provided in the



[[Page 805]]



amount of the loss to the household, up to a maximum of one month's 

allotment, unless the issuance includes restored benefits which shall be 

replaced up to their full value.

    (c) Household statement of nonreceipt. (1) Prior to issuing a 

replacement, the State agency shall obtain from a member of the 

household a signed statement attesting to the household's loss. This 

statement shall not be required if the reason for the replacement is 

that the original authorization document or coupons were improperly 

manufactured or mutilated, or if the original issuance has already been 

returned. The required statement may be mailed to the State agency if 

the household member is unable to come into the office because of age, 

handicap or distance from the office and is unable to appoint an 

authorized representative.

    (2) If the signed statement or affidavit is not received by the 

State agency within 10 days of the date of report, no replacement shall 

be made. If the 10th day falls on a weekend or holiday, and the 

statement is received the day after the weekend or holiday, the State 

agency shall consider the statement timely received.

    (3) The statement shall be retained in the case record. It shall 

attest to the nonreceipt, theft, loss or destruction of the original 

issuance and specify the reason for the replacement. It shall also state 

that the original or replacement issuance will be returned to the State 

agency if the original issuance is recovered by the household and that 

the household is aware of the penalties for intentional 

misrepresentation of the facts, including but not limited to, a charge 

of perjury for a false claim. In addition, the statement shall advise 

the household that:

    (i) The household may request to be placed on an alternate issuance 

system after one report of nonreceipt;

    (ii) After two reports in a six-month period of loss or theft prior 

to receipt, the household shall be placed on an alternate delivery 

system;

    (iii) After two reports in a six-month period of loss or theft prior 

to receipt and/or theft of an authorization document after receipt the 

State agency may delay or deny further replacements for such causes; and

    (iv) If the statement of nonreceipt is not signed and returned 

within ten (10) days of the date the loss was reported, the State agency 

shall not replace the coupons or authorization document.

    (d) Time limits for making replacements. (1) Replacement issuances 

shall be provided to households within 10 days after report of 

nondelivery or loss (15 days if issuance was by certified or registered 

mail) or within two (2) working days of receiving the signed household 

statement required in paragraph (c) of this section, whichever date is 

later.

    (i) Replacement of mutilated coupons shall be delayed until a 

determination of the value of the coupons can be made in accordance with 

paragraph (f)(3) of this section.

    (ii) If the household has already been issued the maximum allowable 

number of countable replacements, subsequent replacements shall be 

delayed until the agency has verified that the original issuance was 

returned or the original authorization document was not transacted. In a 

system using authorization documents, due to the time it takes to post 

and reconcile all authorization documents, it may not be known at the 

time of the replacement request whether prior replacements are countable 

replacements and, therefore, whether the household has reached its 

limit. In such cases, the allotment shall be restored when the State 

agency verifies that the limit on countable replacements has not been 

reached.

    (iii) The State agency shall deny or delay replacement issuances in 

cases in which available documentation indicates that the household's 

request for replacement appears to be fraudulent.

    (2) The household shall be informed of its right to a fair hearing 

to contest the denial or delay of a replacement issuance. Replacements 

shall not be made while the denial or delay is being appealed.

    (e) Replacing issuances lost in the mail or stolen prior to receipt 

by the household. State agencies shall comply with the following 

procedures in replacing issuances reported lost in the mail or stolen 

prior to receipt by the household:

    (1) Determine if the authorization documents or benefits were 

validly issued, if they were actually mailed, if



[[Page 806]]



sufficient time has elapsed for delivery or if they were returned in the 

mail. If a delivery of a partial allotment is reported, the State agency 

shall determine the value of the coupons not delivered and determine 

whether the report of receipt of a partial allotment is corroborated by 

evidence that the coupon loss was due to damage in the mail before 

delivery or by a discrepancy in the issuance unit's inventory;

    (2) Determine, to the extent possible, the validity of the request 

for a replacement. This includes determining whether the original 

issuance has been returned to the State agency and, in a system 

utilizing authorization documents, whether the original authorization 

document has been transacted and, if so, whether the recipient's 

signature on the authorization document matches the signature on the ID 

card. In a Photo ID area, the State agency shall determine if the ID 

serial number annotated on the authorization document matches the serial 

number on the recipient's ID card;

    (3) Issue a replacement in accordance with paragraphs (b), (c) and 

(d) of this section if the household is eligible;

    (4) Place the household on an alternate delivery system, if 

warranted, in accordance with paragraph (g) of this section; and

    (5) Take other action, such as correcting the address on the master 

issuance file, warranted by the reported nondelivery.

    (f) Replacing issuances after receipt by the household. Upon 

receiving a request for replacement of an issuance reported as stolen or 

destroyed after receipt by the household, the State agency shall 

determine if the issuance was validly issued. The State agency shall 

also comply with all applicable provisions in paragraphs (b), (c) and 

(d) of this section, as well as the following procedures for each type 

of replacement:

    (1) Prior to replacing an authorization document which was reported 

stolen after receipt by the household, the State agency shall determine, 

to the extent possible, the validity of the request for replacement. For 

example, the State agency may determine whether the original 

authorization document has been transacted and, if so, whether the 

signature on the original authorization document matches that on the 

household statement. In a Photo ID or serialized area, the State agency 

shall determine if the ID serial number annotated on the authorization 

document matches the serial number on the recipient's ID card. Any 

replacement which results in duplicate participation shall be considered 

a household error, and the replacement countable, when the ID serial 

number shown on the authorization document matches the serial number on 

the recipient's card, unless the ID card was reported lost or stolen 

prior to the replacement. The State agency may require households, on a 

case-by-case basis, to report the theft to a law enforcement agency and 

to provide verification of such report.

    (2) Prior to replacing destroyed coupons or authorization documents, 

or destroyed food that was purchased with food stamp benefits, the State 

agency shall determine that the destruction occurred in a household 

misfortune or disaster, such as, but not limited to, a fire or flood. 

This shall be verified through a collateral contact, documentation from 

a community agency including, but not limited to, the fire department or 

the Red Cross, or a home visit. The State agency shall provide 

replacements of coupons, authorization documents, and/or food in the 

actual amount of the loss, but not exceeding one month's allotment, 

unless the exception in paragraph (b)(3) of this section, applies.

    (3) Households cannot receive a replacement for coupons lost or 

stolen after receipt.

    (4) The State agency shall provide replacements for improperly 

manufactured or mutilated coupons or authorization documents as follows:

    (i) Coupons received by a household, and subsequently mutilated or 

found to be improperly manufactured shall be replaced in the amount of 

the loss to the household. State agencies shall replace mutilated 

coupons when three-fifths of a coupon is presented by the household. The 

State agency shall examine the improperly manufactured or mutilated 

coupons to determine the validity of the claim and the amount of coupons 

to be replaced. If the State agency can determine the value of the



[[Page 807]]



improperly manufactured or mutilated coupons, the State agency shall 

replace the unusable coupons in a dollar-for-dollar exchange. After 

exchanging the coupons and completing a Form FNS-135, Affidavit of 

Return or Exchange of Food Coupons, the State agency shall destroy the 

coupons in accordance with the procedures contained in Sec. 274.7(f). 

If the State agency cannot determine the value of the improperly 

manufactured or mutilated coupons, the State agency shall cancel the 

coupons by writing or stamping ``canceled'' across the face of the 

coupons and forward the coupons to FNS for a determination of the value 

by the U.S. Bureau of Engraving and Printing.

    (ii) Authorization documents received by a household and 

subsequently mutilated or found to be improperly manufactured shall be 

replaced only if they are identifiable. ``Identifiable'' means that the 

State agency is able to determine the amount of the issuance and that 

the authorization document was validly issued to the household within 

the last 30 days. For example, if the authorization document serial 

number is legible, the State agency can determine from the record-for-

issuance or manual authorization document log to which household the 

authorization document was issued, the date of issuance, and the amount. 

Similarly, if the case number and validity period are legible, the State 

agency may be able to determine to whom the authorization document was 

issued and the amount. If more than one authorization document was 

issued to the household and the State agency cannot determine which 

authorization document was mutilated, the replacement shall be issued in 

the lesser amount. Improperly manufactured or mutilated authorization 

documents shall be surrendered to the State agency.

    (g) Alternate issuance system for a household. The State agency 

shall offer to place a household in an alternate issuance system after 

the first report of nonreceipt, or when circumstances exist that 

indicate that the household may not receive its benefits through the 

normal issuance system, such as when a household has a history of 

reported nonreceipt of ATP's. After two requests for replacement of 

original or replacement ATP's reported as nondelivered in a six-month 

period, the State agency shall issue benefits to that household under an 

alternate issuance system. The two requests may be for either an 

original or a replacement ATP. The State agency shall keep the household 

on the alternate issuance system for the length of time the State agency 

determines to be necessary. The State agency may return the household to 

the regular issuance system if the State agency finds that the 

circumstances leading to the loss have changed and the risk of loss has 

lessened. The placement of a household on an alternate issuance system 

and the length of time the household is on this system is not subject to 

the fair hearing process.

    (h) Documentation and reconciliation of replacement issuances. (1) 

The State agency shall document in the household's case file each 

request for replacement, the date, the reason, and whether or not the 

replacement was provided. This information may be recorded exclusively 

on the household statement required in paragraph (c) of this section.

    (2) The State agency shall maintain, in readily-identifiable form, a 

record of the replacements granted to the household, the reason, the 

month, and whether the replacement was countable as defined in paragraph 

(b)(2)(iv) of this section. The record may be a case action sheet 

maintained in the case file, notations on the master issuance file, if 

readily accessible, or a document maintained solely for this purpose. At 

a minimum, the system shall be able to identify and differentiate among:

    (i) Authorization documents or coupons not received in, or stolen 

from, the mail, and authorization documents stolen after receipt; and

    (ii) Replacement issuances which are not subject to a replacement 

limit.

    (3) Upon completion of reconciliation in a system utilizing 

authorization documents, the State agency shall update the record 

required in paragraph (h)(2) of this section to indicate whether both 

the original and replacement authorization documents were transacted. If 

both were not transacted, the record shall clearly indicate that the



[[Page 808]]



replacement authorization document was not a countable replacement.

    (4) When a request for replacement is made late in an issuance 

month, the replacement will be issued in a month subsequent to the month 

in which the original authorization document was issued. All 

replacements shall be posted and reconciled to the month of issuance of 

the replacement and may be posted to the month of issuance of the 

original authorization document, so that all duplicate transactions may 

be identified.

    (i) Further action on replacement issuances. The State agency shall 

take the following further actions on replacements:

    (1) On at least a monthly basis, the State agency shall report to 

the appropriate office of the Postal Inspection Service all 

authorization documents reported as stolen or lost in the mail. The 

State agency shall assist the Postal Service during any investigation 

thereof and shall, upon request, supply the Postal Service with 

facsimiles of the original authorization document, if transacted, and 

the replacement authorization document and a copy of the nonreceipt 

statement.

    The State agency shall advise the Postal Service if the original 

authorization document is not transacted.

    (2) When a duplicate replacement authorization document is 

transacted, the State agency shall, at a minimum:

    (i) Compare the handwriting on the authorization documents to 

documents contained in the household's case file, including the 

nonreceipt statement;

    (ii) Establish a claim in accordance with Sec. 273.18, where it 

appears that the household has transacted, or caused both authorization 

documents to be transacted; and

    (iii) Refer the matter to the State agency's investigation unit, 

where indicated.



[54 FR 7004, Feb. 15, 1989, as amended at 54 FR 51351, Dec. 15, 1989; 56 

FR 63617, Dec. 4, 1991]