[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR273.12]

[Page 766-775]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 273_CERTIFICATION OF ELIGIBLE HOUSEHOLDS--Table of Contents
 
Sec.  273.12  Requirements for change reporting households.

    (a) Household responsibility to report. (1) Monthly reporting 
households are required to report as provided in Sec.  273.21. Quarterly 
reporting households are subject to the procedures as provided in 
paragraph (a)(4) of this section. Certified change reporting households 
are required to report the following changes in circumstances:
    (i) (A) A change of more than $50 in the amount of unearned income, 
except changes relating to public assistance (PA) or general assistance 
(GA) in project areas in which GA and food stamp cases are jointly 
processed. The State agency is responsible for identifying changes 
during the certification period in the amount of PA, or GA in jointly 
processed cases. If GA and food stamp cases are not jointly processed, 
the household is responsible for reporting changes in GA of more than 
$50.
    (B) A change in the source of income, including starting or stopping 
a job or changing jobs, if the change in employment is accompanied by a 
change in income.
    (C) One of the following, as determined by the State agency 
(different options may be used for different categories of households as 
long as no household is required to report under more than one option; 
the State may also utilize different options in different project areas 
within the State):
    (1) A change in the wage rate or salary or a change in full-time or 
part-time employment status (as determined by the employer or as defined 
in the State's PA program), provided that the household is certified for 
no more than 6 months; or
    (2) A change in the amount earned of more than $100 a month from the 
amount last used to calculate the household's allotment, provided that 
the household is certified for no more than 6 months.
    (ii) All changes in household composition, such as the addition or 
loss of a household member;
    (iii) Changes in residence and the resulting change in shelter 
costs;
    (iv) The acquisition of a licensed vehicle not fully excludable 
under Sec.  273.8(e); and

[[Page 767]]

    (v) When cash on hand, stocks, bonds, and money in a bank account or 
savings institution reach or exceed a total of $2,000.
    (vi) Changes in the legal obligation to pay child support.
    (vii) State agencies may opt to require households with earned 
income that are assigned 6-month or longer certification periods to 
report only changes in the amount of gross monthly income that result in 
their gross monthly income exceeding 130 percent of the monthly poverty 
income guideline for their household size.
    (A) Households with earned income certified for 6 months in 
accordance with paragraph (a)(1)(vii) of this section must not be 
required to report changes in accordance with paragraphs (a)(1)(ii) 
through (a)(1)(vi) of this section. The State agency must act on any 
change reported by such households that would increase their benefits in 
accordance with paragraph (c)(1) of this section. The State agency must 
not act on changes that would result in a decrease in benefits unless:
    (1) The household has voluntarily requested that its case be closed 
in accordance with Sec.  273.13(b)(12);
    (2) The State agency has information about the household's 
circumstances considered verified upon receipt; or
    (3) There has been a change in the household's PA grant, or GA grant 
in project areas where GA and food stamp cases are jointly processed in 
accord with Sec.  273.2(j)(2).
    (B) Households with earned income certified for longer than 6 months 
under this option shall be required to submit an interim report at 6 
months in accordance with paragraphs (a)(1)(i) through (a)(1)(vi) of 
this section. The State agency must act on any change reported by such 
households on the interim report in accordance with paragraph (c) of 
this section. If the household files a complete report resulting in 
reduction or termination of benefits, the State agency shall send an 
adequate notice, as defined in Sec.  271.2 of this chapter. The notice 
must be issued so that it will be received by the household no later 
than the time that its benefits are normally received. If the household 
fails to provide sufficient information or verification regarding a 
deductible expense, the State agency will not terminate the household, 
but will instead determine the household's benefits without regard to 
the deduction.
    (viii) For able-bodied adults subject to the time limit of Sec.  
273.24, any changes in work hours that bring an individual below 20 
hours per week, averaged monthly, as defined in Sec.  273.24(a)(1)(i). 
An individual shall report this information in accordance with the 
reporting system for income to which he is subject.
    (2) Certified households must report changes within 10 days of the 
date the change becomes known to the household. For reportable changes 
of income, the State agency may require that change to be reported as 
early as within 10 days of the date that the household becomes aware of 
the change or as late as within 10 days of the date that the household 
receives the first payment attributable to the change. For example, in 
the case of new employment, the State may require the household to 
report the change within 10 days of the date that the household becomes 
aware of the new employment, within 10 days of the date the employment 
begins or within 10 days of the date that the household receives its 
first paycheck. For households subject to semi-annual reporting, the 
household must report changes no later than 10 days from the end of the 
calendar month in which the change occurred, provided that the household 
has at least 10 days within which to report the change. Optional 
procedures for reporting changes are contained in paragraph (f) of this 
section for households in States with forms for jointly reporting food 
stamp and public assistance changes and food stamp and general 
assistance changes.
    (3) An applying household shall report all changes related to its 
food stamp eligibility and benefits at the certification interview. 
Changes, as provided in paragraph (a)(1) of this section, which occur 
after the interview but before the date of the notice of eligibility, 
shall be reported by the household within 10 days of the date of the 
notice.
    (4) The State agency may establish a system of quarterly reporting 
in lieu of

[[Page 768]]

the change reporting requirements specified under paragraph (a)(1) of 
this section. The following requirements are applicable to quarterly 
reporting systems:
    (i) Included households. The State agency may include all households 
within a quarterly reporting system, except migrant or seasonal 
farmworker households, households that have no earned income and in 
which all adult members are elderly or disabled, households in which all 
members are homeless individuals, or households subject to the reporting 
requirement under paragraph (a)(1)(vii) of this section. The State 
agency may also limit quarterly reporting to specific categories of 
households.
    (ii) Notification of the quarterly reporting requirement. The State 
agency must notify households of the quarterly reporting requirement, 
including the consequences of failure to file a report, at initial 
certification and recertification.
    (iii) Failure to file a complete form by the specified filing date. 
If a household fails to file a complete report by the specified filing 
date, the State agency will send a notice to the household advising it 
of the missing or incomplete report no later than 10 days from the date 
the report should have been submitted. If the household does not respond 
to the notice, the household's participation shall be terminated. The 
State agency may combine the notice of a missing or incomplete report 
with the adequate notice of termination described in paragraph (a)(4)(v) 
of this section.
    (iv) Content of the quarterly report form. The State agency may 
include all of the items subject to reporting under paragraph (a)(1) of 
this section in the quarterly report, except changes reportable under 
paragraphs (a)(1)(vii) or (a)(1)(viii) of this section, or may limit the 
report to specific items while requiring that households report other 
items through the use of the change report form.
    (v) Reduction or termination of benefits. If the household files a 
complete report resulting in reduction or termination of benefits, the 
State agency shall send an adequate notice, as defined in Sec.  271.2 of 
this chapter. The notice must be issued so that it will be received by 
the household no later than the time that its benefits are normally 
received. If the household fails to provide sufficient information or 
verification regarding a deductible expense, the State agency will not 
terminate the household, but will instead determine the household's 
benefits without regard to the deduction.
    (vi) Changes reported outside of the quarterly report. The State 
agency must act on any changes reported outside of the quarterly report 
in accordance with paragraph (c) of this section.
    (vii) Sole reporting requirement. The quarterly report form shall be 
the sole reporting requirement for any information that is required to 
be reported on the form, except that able-bodied adults subject to the 
time limit of Sec.  273.24 shall report whenever their work hours fall 
below 20 hours per week, averaged monthly.
    (5) The State agency may require a household that is eligible to 
receive a child support deduction in accordance with Sec.  273.9(d)(7) 
to report information required by the State agency regarding child 
support on a change report, a monthly report, or quarterly report. The 
State agency shall process the reports in accordance with procedures for 
the systems used in budgeting the household's income and deductions. The 
following requirements apply to quarterly reports:
    (i) The State agency shall provide the household a reasonable period 
after the end of the last month covered by the report in which to return 
the report. If the household does not file the report by the due date or 
files an incomplete report, the State agency shall provide the household 
with a reminder notice advising the household that it has 10 days from 
the date the State agency mails the notice to file a complete report. If 
the household does not file a complete report by the extended filing 
date as specified in the reminder notice, the State agency shall 
determine the household's eligibility and benefits without consideration 
of the child support deduction. The State agency shall not terminate the 
benefits of a household for failure to submit a quarterly report unless 
the household is otherwise ineligible. The State agency shall

[[Page 769]]

send the household an adequate notice as defined in Sec.  271.2 of this 
chapter if the household fails to submit a complete report or if the 
information contained on a complete report results in a reduction or 
termination of benefits. The quarterly report shall meet the 
requirements specified in paragraph (b) of this section. The State 
agency may combine the content of the reminder notice and the adequate 
notice as long as the notice meets the requirements of the individual 
notices.
    (ii) The quarterly report form, if required, shall be the sole 
reporting requirement for reporting child support payments during the 
certification period. Households excluded from monthly reporting as 
specified in Sec.  273.21(b) and households required to submit monthly 
reports shall not be required to submit quarterly reports.
    (6) State agencies shall not impose any food stamp reporting 
requirements on households except as provided in paragraph (a) of this 
section.
    (b) Report forms. (1) The State agency shall provide the household 
with a form for reporting the changes required in paragraph (a)(1) of 
this section to be reported within 10 days and shall pay the postage for 
return of the form. The change report form shall, at a minimum, include 
the following:
    (i) A space for the household to report whether the change shall 
continue beyond the report month;
    (ii) The civil and criminal penalties for violations of the Act in 
understandable terms and in prominent and boldface lettering;
    (iii) A reminder to the household of its right to claim actual 
utility costs if its costs exceed the standard;
    (iv) The number of the food stamp office and a toll-free number or a 
number where collect calls will be accepted for households outside the 
local calling area; and
    (v) A statement describing the changes in household circumstances 
contained in Sec.  273.12(a)(1) that must be reported and a statement 
which clearly informs the household that it is required to report these 
changes.
    (2) The quarterly report form, including the form for the quarterly 
reporting of the child support obligation, must be written in clear, 
simple language, and must meet the bilingual requirements described in 
Sec.  272.4(b) of this chapter. In addition, the form must specify the 
date by which the agency must receive the form and the consequences of 
submitting a late or incomplete form. The form (or an attachment) must 
specify the verification the household must submit with the form, inform 
the household where to call for help in completing the form, and include 
a statement to be signed by a member of the household indicating his or 
her understanding that the information provided may result in reduction 
or termination of benefits. The form should also include a brief 
description of the Food Stamp Program fraud penalties.
    (3) Changes reported over the telephone or in person by the 
household shall be acted on in the same manner as those reported on the 
change report form.
    (4) A change report form shall be provided to newly certified 
households at the time of certification, at recertification if the 
household needs a new form; and a new form shall be sent to the 
household whenever a change report form is returned by the household. A 
change report may be provided to households more often at the State 
agency's option.
    (c) State agency action on changes. The State agency shall take 
prompt action on all changes to determine if the change affects the 
household's eligibility or allotment. If a household reports a change in 
income, and the new circumstance is expected to continue for at least 
one month beyond the month in which the change is reported, the State 
agency shall act on the change in accordance with paragraphs (c)(1) and 
(c)(2) of this section. The time frames in paragraphs (c)(1) and (c)(2) 
of this section apply to these actions. However, during the 
certification period, the State agency shall not act on changes in the 
medical expenses of households eligible for the medical expense 
deduction which it learns of from a source other than the household and 
which, in order to take action, require the State agency to contact the 
household for verification. The State agency shall only act on those 
changes in medical expenses that

[[Page 770]]

it learns about from a source other than the household if those changes 
are verified upon receipt and do not necessitate contact with the 
household. Even if there is no change in the allotment, the State agency 
shall document the reported change in the casefile, provide another 
change report form to the household, and notify the household of the 
receipt of the change report. If the reported change affects the 
household's eligibility or level of benefits, the adjustment shall also 
be reported to the household. The State agency shall also advise the 
household of additional verification requirements, if any, and state 
that failure to provide verification shall result in increased benefits 
reverting to the original allotment. The State agency shall document the 
date a change is reported, which shall be the date the State agency 
receives a report form or is advised of the change over the telephone or 
by a personal visit. Restoration of lost benefits shall be provided to 
any household if the State agency fails to take action on a change which 
increases benefits within the time limits specified in paragraph (c)(1) 
of this section.
    (1) Increase in benefits. (i) For changes which result in an 
increase in a household's benefits, other than changes described in 
paragraph (c)(1)(ii) of this section, the State agency shall make the 
change effective no later than the first allotment issued 10 days after 
the date the change was reported to the State agency. For example, a $30 
decrease in income reported on the 15th of May would increase the 
household's June allotment. If the same decrease were reported on May 
28, and the household's normal issuance cycle was on June 1, the 
household's allotment would have to be increased by July.
    (ii) For changes which result in an increase in a household's 
benefits due to the addition of a new household member who is not a 
member of another certified household, or due to a decrease of $50 or 
more in the household's gross monthly income, the State agency shall 
make the change effective not later than the first allotment issued 10 
days after the date the change was reported. However, in no event shall 
these changes take effect any later than the month following the month 
in which the change is reported. Therefore, if the change is reported 
after the 20th of a month and it is too late for the State agency to 
adjust the following month's allotment, the State agency shall issue a 
supplementary ATP or otherwise provide an opportunity for the household 
to obtain the increase in benefits by the 10th day of the following 
month, or the household's normal issuance cycle in that month, whichever 
is later. For example, a household reporting a $100 decrease in income 
at any time during May would have its June allotment increased. If the 
household reported the change after the 20th of May and it was too late 
for the State agency to adjust the ATP normally issued on June 1, the 
State agency would issue a supplementary ATP for the amount of the 
increase by June 10.
    (iii) The State agency may elect to verify changes which result in 
an increase in a household's benefits in accordance with the 
verification requirements of Sec.  273.2(f)(8)(ii), prior to taking 
action on these changes. If the State agency elects this option, it must 
allow the household 10 days from the date the change is reported to 
provide verification required by Sec.  273.2(f)(8)(ii). If the household 
provides verification within this period, the State shall take action on 
the changes within the timeframes specified in paragraphs (c)(1) (i) and 
(ii) of this section. The timeframes shall run from the date the change 
was reported, not from the date of verification. If, however, the 
household fails to provide the required verification within 10 days 
after the change is reported but does provide the verification at a 
later date, then the timeframes specified in paragraphs (c)(1) (i) and 
(ii) of this section for taking action on changes shall run from the 
date verification is provided rather than from the date the change is 
reported. If the State agency does not elect this option, verification 
required by Sec.  273.2(f)(8)(ii) must be obtained prior to the issuance 
of the second normal monthly allotment after the change is reported. If 
in these circumstances the household does not provide verification, the 
household's

[[Page 771]]

benefits will revert to the original benefit level. Whenever a State 
agency increases a household's benefits to reflect a reported change and 
subsequent verification shows that the household was actually eligible 
for fewer benefits, the State agency shall establish a claim for the 
overissuance in accordance with Sec.  273.18. In cases where the State 
agency has determined that a household has refused to cooperate as 
defined in Sec.  273.2(d), the State agency shall terminate the 
household's eligibility following the notice of adverse action.
    (2) Decreases in benefits. (i) If the household's benefit level 
decreases or the household becomes ineligible as a result of the change, 
the State agency shall issue a notice of adverse action within 10 days 
of the date the change was reported unless one of the exemptions to the 
notice of adverse action in Sec.  273.13 (a)(3) or (b) applies. When a 
notice of adverse action is used, the decrease in the benefit level 
shall be made effective no later than the allotment for the month 
following the month in which the notice of adverse action period has 
expired, provided a fair hearing and continuation of benefits have not 
been requested. When a notice of adverse action is not used due to one 
of the exemptions in Sec.  273.13 (a)(3) or (b), the decrease shall be 
made effective no later than the month following the change. 
Verification which is required by Sec.  273.2(f) must be obtained prior 
to recertification.
    (ii) The State agency may suspend a household's certification 
prospectively for one month if the household becomes temporarily 
ineligible because of a periodic increase in recurring income or other 
change not expected to continue in the subsequent month. If the 
suspended household again becomes eligible, the State agency shall issue 
benefits to the household on the household's normal issuance date. If 
the suspended household does not become eligible after one month, the 
State agency shall terminate the household's certification. Households 
are responsible for reporting changes as required by paragraph (a) of 
this section during the period of suspension.
    (3) Unclear information. During the certification period, the State 
agency may obtain information about changes in a household's 
circumstances from which the State agency cannot readily determine the 
effect of the change on the household's benefit amount. The State agency 
might receive such unclear information from a third party or from the 
household itself. The State agency must pursue clarification and 
verification of household circumstances using the following procedure:
    (i) The State agency must issue a written request for contact (RFC) 
which clearly advises the household of the verification it must provide 
or the actions it must take to clarify its circumstances, which affords 
the household at least 10 days to respond and to clarify its 
circumstances, either by telephone or by correspondence, as the State 
agency directs, and which states the consequences if the household fails 
to respond to the RFC.
    (ii) If the household does not respond to the RFC, or does respond 
but refuses to provide sufficient information to clarify its 
circumstances, the State agency must issue a notice of adverse action as 
described in Sec.  273.13 which terminates the case, explains the 
reasons for the action, and advises the household of the need to submit 
a new application if it wishes to continue participating in the program. 
When the household responds to the RFC and provides sufficient 
information, the State agency must act on the new circumstances in 
accordance with paragraphs (c)(1) or (c)(2 ) of this section.
    (iii) If the household does not respond to the RFC, or does respond 
but refuses to provide sufficient information to clarify its 
circumstances, the State agency may elect to issue a notice of adverse 
action as described in Sec.  273.13 which suspends the household for 1 
month before the termination becomes effective, explains the reasons for 
the action, and advises the household of the need to submit a new 
application if it wishes to continue participating in the program. If a 
household responds satisfactorily to the RFC during the period of 
suspension, the State agency must reinstate the household without 
requiring a new application, issue the allotment for the month of 
suspension, and if necessary, adjust the household's

[[Page 772]]

participation with a new notice of adverse action.
    (d) Failure to report. If the State agency discovers that the 
household failed to report a change as required by paragraph (a) of this 
section and, as a result, received benefits to which it was not 
entitled, the State agency shall file a claim against the household in 
accordance with Sec.  273.18. If the discovery is made within the 
certification period, the household is entitled to a notice of adverse 
action if the household's benefits are reduced. A household shall not be 
held liable for a claim because of a change in household circumstances 
which it is not required to report in accordance with Sec.  
273.12(a)(1). Individuals shall not be disqualified for failing to 
report a change, unless the individual is disqualified in accordance 
with the disqualification procedures specified in Sec.  273.16.
    (e) Mass changes. Certain changes are initiated by the State or 
Federal government which may affect the entire caseload or significant 
portions of the caseload. These changes include, but are not limited to, 
adjustments to the income eligibility standards, the shelter and 
dependent care deductions, the maximum food stamp allotment and the 
standard deduction; annual and seasonal adjustments to State utility 
standards; periodic cost-of-living adjustments to Retirement, Survivors, 
and Disability Insurance (RSDI), Supplemental Security Income (SSI) and 
other Federal benefits; periodic adjustments to Temporary Assistance for 
Needy Families (TANF) or General Assistance (GA) payments; and other 
changes in the eligibility and benefit criteria based on legislative or 
regulatory changes.
    (1) Federal adjustments to eligibility standards, allotments, and 
deductions, and State adjustments to utility standards. (i) State 
agencies shall implement these changes for all households at a specific 
point in time. Adjustments to Federal standards shall be implemented 
prospectively regardless of the household's budgeting system. Annual and 
seasonal adjustments in State utility standards shall also be 
implemented prospectively for all households.
    (A) Adjustments in the maximum food stamp allotment shall be 
effective in accordance with Sec.  273.10(e)(4)(ii).
    (B) Adjustments in the standard deduction shall be effective in 
accordance with Sec.  273.9(d)(7).
    (C) Adjustments in the shelter deduction shall be effective in 
accordance with Sec.  273.9(d)(8).
    (D) Adjustments in the income eligibility standards shall be 
effective in accordance with Sec.  273.9(a)(3).
    (ii) A notice of adverse action shall not be used for these changes. 
At a minimum, the State agencies shall publicize these mass changes 
through the news media; posters in certification offices, issuance 
locations, or other sites frequented by certified households; or general 
notices mailed to households. At its option, the State agency may send 
the notice described in paragraph (e)(4) of this section or some other 
type of written explanation of the change. A household whose 
certification period overlaps a seasonal variation in the State utility 
standard shall be advised at the time of initial certification of when 
the adjustment will occur and what the variation in the benefit level 
will be, if known.
    (2) Mass changes in public assistance and general assistance. (i) 
When the State agency makes an overall adjustment to public assistance 
(PA) payments, corresponding adjustments in households' food stamp 
benefits shall be handled as a mass change in accordance with the 
procedures in paragraphs (e) (4), (5) and (6) of this section. When the 
State agency has at least 30 days, advance knowledge of the amount of 
the PA adjustment, the State agency shall make the change in benefits 
effective in the same month as the PA change. If the State agency does 
not have sufficient notice, the food stamp change shall be effective no 
later than the month following the month in which the PA change was 
made.
    (ii) State agencies which also administer a general assistance (GA) 
program shall handle mass adjustments to GA payments in accordance with 
the schedules outlined in paragraph (e)(2)(i) and the procedures in 
paragraphs (e) (4), (5) and (6) of this section. However, where State 
agencies do not administer both programs, mass

[[Page 773]]

changes in GA payments shall be subject to the schedule in paragraph 
(e)(3) and the procedures in paragraphs (e) (4), (5) and (6) of this 
section.
    (3) Mass changes in Federal benefits. The State agency shall 
establish procedures for making mass changes to reflect cost-of-living 
adjustments (COLAs) in benefits and any other mass changes under RSDI, 
SSI, and other programs such as veteran's assistance under title 38 of 
the United States Code and the Black Lung Program, where information on 
COLA's is readily available and is applicable to all or a majority of 
those programs' beneficiaries. Households on retrospective budgeting but 
not monthly reporting shall have the change reflected in accordance with 
the State's system. Monthly reporting households shall report the change 
on the appropriate monthly report but are not required to report these 
types of changes outside the monthly report. The State agency shall 
handle such information provided on the monthly report in accordance 
with its normal procedures. Households not subject to monthly reporting 
shall not be responsible for reporting these changes. The State agency 
shall be responsible for automatically adjusting a household's food 
stamp benefit level. The change shall be reflected no later than the 
second allotment issued to nonmonthly reporting households issued after 
the month in which the change becomes effective.
    (4) Notice for Mass Changes. When the State agency makes a mass 
change in food stamp eligibility or benefits by simultaneously 
converting the caseload or that portion of the caseload that is 
affected, or by conducting individual desk reviews in place of a mass 
change, it shall notify all households whose benefits are reduced or 
terminated in accordance with the requirements of this paragraph, except 
for mass changes made under Sec.  273.12(e)(1); and
    (i) At a minimum, the State agency shall inform the household of:
    (A) The general nature of the change;
    (B) Examples of the change's effect on households' allotments;
    (C) The month in which the change will take effect;
    (D) The household's right to a fair hearing;
    (E) The household's right to continue benefits and under what 
circumstances benefits will be continued pending a fair hearing;
    (F) General information on whom to contact for additional 
information; and
    (G) The liability the household will incur for any overissued 
benefits if the fair hearing decision is adverse.
    (ii) At a minimum, the State agency shall notify the household of 
the mass change or the result of the desk review on the date the 
household is scheduled to receive the allotment which has been changed.
    (iii) In addition, the State shall notify the household of the mass 
change as much before the household's scheduled issuance date as 
reasonably possible, although the notice need not be given any earlier 
than the time required for advance notice of adverse action.
    (5) Fair hearings. The household shall be entitled to request a fair 
hearing when it is aggrieved by the mass change.
    (6) Continuation of benefits. A household which requests a fair 
hearing due to a mass change shall be entitled to continued benefits at 
its previous level only if the household meets three criteria;
    (i) The household does not specifically waive its right to a 
continuation of benefits;
    (ii) The household requests a fair hearing in accordance with Sec.  
273.13(a)(1); and
    (iii) The household's fair hearing is based upon improper 
computation of food stamp eligibility or benefits, or upon 
misapplication or misinterpretation of Federal law or regulation.
    (f) PA and GA households. (1) Except as provided in paragraph (f)(2) 
of this section, PA households have the same reporting requirements as 
any other food stamp household. PA households which report a change in 
circumstances to the PA worker shall be considered to have reported the 
change for food stamp purposes. All of the requirements pertaining to 
reporting changes for PA households shall be applied to GA households in 
project areas where GA and food stamp cases are processed jointly in 
accordance with provisions of Sec.  273.2(j)(3).

[[Page 774]]

    (2)(i) State agencies may use a joint change reporting form for 
households to report changes for both PA and food stamp purposes. 
Whenever a joint change reporting form is used, the State agency shall 
insure that adjustments are made in a household's eligibility status or 
allotment for the months determined appropriate given the household's 
budgeting cycle.
    (ii) State agencies may combine the use of a joint PA/food stamp 
change reporting form with a PA reporting system that demands the 
regular submission of reports, such as a monthly reporting system. The 
State agency shall insure that the procedures in Sec.  273.21(h) are 
followed.
    (3) The State agency may not terminate a household's food stamp 
benefits solely because it has terminated the household's PA benefits 
without a separate determination that the household fails to satisfy the 
eligibility requirements for participation in the Program. Whenever a 
change results in the reduction or termination of a household's PA 
benefits within its food stamp certification period, the State agency 
must follow the procedures set forth below:
    (i) If a change in household circumstances requires a reduction or 
termination in the PA payment and the State agency has sufficient 
information to determine how the change affects the household's food 
stamp eligibility and benefit level, the State agency must take the 
following actions:
    (A) If the change requires a reduction or termination of food stamp 
benefits, the State agency must issue a single notice of adverse action 
for both the PA and food stamp actions. If the household requests a fair 
hearing within the period provided by the notice of adverse action, the 
State agency must continue the household's food stamp benefits on the 
basis authorized immediately prior to sending the notice. If the fair 
hearing is requested for both programs' benefits, the State agency must 
conduct the hearing according to PA procedures and timeliness standards. 
However, the household must reapply for food stamp benefits if the food 
stamp certification period expires before the fair hearing process is 
completed. If the household does not appeal, the State agency must make 
the change effective in accordance with the procedures specified in 
paragraph (c) of this section.
    (B) If the household's food stamp benefits will increase as a result 
of the reduction or termination of PA benefits, the State agency must 
issue the PA notice of adverse action, but must not take any action to 
increase the household's food stamp benefits until the household decides 
whether it will appeal the PA adverse action. If the household decides 
to appeal and its PA benefits are continued, the household's food stamp 
benefits must continue at the previous level. If the household does not 
appeal, the State agency must make the change effective in accordance 
with the procedures specified in paragraph (c) of this section, except 
that the time limits for the State agency to act on changes which 
increase a household's benefits must be calculated from the date the PA 
notice of adverse action period expires.
    (ii) Whenever a change results in the termination of a household's 
PA benefits within its food stamp certification period, and the State 
agency does not have sufficient information to determine how the change 
affects the household's food stamp eligibility and benefit level (such 
as when an absent parent returns to a household, and the household asks 
to have its TANF case closed without providing any information on the 
income of the new household member), the State agency must take the 
following action:
    (A) If the situation requires a reduction or termination of PA 
benefits, the State agency must issue a request for contact (RFC) in 
accordance with paragraph (c)(3)(i) of this section at the same time it 
sends a PA notice of adverse action. Before taking further action, the 
State agency must wait until the household's PA notice of adverse action 
period expires or until the household requests a fair hearing, whichever 
occurs first. If the household requests a fair hearing and elects to 
have its PA benefits continued pending the appeal, the State agency must 
continue the household's food stamp benefits at the same level. If the 
household decides not to request a fair hearing and continuation of its 
PA benefits,

[[Page 775]]

the State agency must resume action on the changes as required in 
paragraph (c)(3) of this section.
    (B) If the situation does not require a PA notice of adverse action, 
the State agency must issue a RFC and take action in accordance with 
paragraph (c)(3) of this section.
    (iii) Depending on the household's response to the RFC, the State 
agency must take appropriate action, if necessary, to close the 
household's case or adjust the household's benefit amount.
    (4) Transitional Benefits Alternative. The State agency may elect to 
provide households leaving TANF with transitional food stamp benefits as 
provided in this paragraph (f)(4). A State agency electing the 
Transitional Benefits Alternative (TBA) must provide transitional 
benefits, at a minimum, to all families with earnings who leave TANF. 
The State agency may not provide transitional benefits to a household 
which is leaving TANF when: the State agency has determined that the 
household is noncompliant with TANF requirements and the State agency is 
imposing a comparable food stamp sanction in accordance with Sec.  
273.11; the State agency has determined that the household has violated 
a food stamp work requirement in accordance with Sec.  273.7; the State 
agency has determined that a household member has committed an 
intentional Program violation in accordance with Sec.  273.16, or the 
State agency is closing the household's TANF case in response to 
information indicating the household failed to comply with food stamp 
reporting requirements. The State agency must use procedures at 
paragraph (f)(3) of this section to determine the continued eligibility 
and benefit level of households denied transitional benefits under this 
paragraph (f)(4).
    (i) When a household leaves TANF, the State agency may freeze for up 
to 3 months the household's benefit amount at the level the household 
received when it was receiving TANF. This is the household's transition 
period. If the household is losing income as a result of leaving TANF, 
the State agency must adjust the food stamp benefit amount before 
initiating the transition period. To provide the transition period, the 
State agency may extend the certification period for up to 3 months, not 
to exceed the maximum periods specified in Sec.  273.10(f)(1) and 
(f)(2).
    (ii) The State agency must issue a transition notice (TN) advising 
the household of the following: that the State agency must reevaluate 
its food stamp case no more than 3 months from the effective date of the 
TANF case closing; that its benefit amount will remain the same as when 
it was receiving cash assistance (or that the State agency has adjusted 
the food stamp benefit amount if the household's income is decreasing as 
the result of leaving cash assistance); that it is not required to 
report and provide verification for any changes in household 
circumstances until the deadline established in accordance with 
paragraph (c)(3) of this section (or its recertification interview, if 
the certification period is expiring); and that it may report changes if 
income decreases or expenses or household size increase.
    (iii) If the household does report changes in its circumstances 
during the transition period, the State agency must adjust the 
household's benefit amount in accordance with paragraph (c) of this 
section, except that, if the reported change would cause a reduction in 
the household's benefit amount, the State agency must make the change 
effective the month following the last month of the transition period.
    (iv) Before the end of the transition period, the State agency must 
issue the RFC specified in paragraph (c)(3) of this section and act on 
any information it has about the household's new circumstances in 
accordance with paragraph (c)(3) of this section, or recertify the 
household in accordance with Sec.  273.14. At the end of the transition 
period, the State agency may extend the household's certification period 
in accordance with Sec.  273.10(f)(5).

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

    Editorial Note: For Federal Register citations affecting Sec.  
273.12, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.