These rules were proposed to be effective July 1, 2002. If no revisions are made to the proposed rules prior to the finalization by JCARR, they will become effective on a permanent basis on July 1, 2002. If changes are necessary, a copy of the revised rules will be forwarded to you at that time.
Background Information
This transmittal letter is dedicated to incorporating a Federal option offered to state agencies regarding semi-annual reporting requirements for food stamp assistance groups (AGs) with earned income. This option became available in January 2001 to state agencies under CFR 273.12(a)(1)(vii) with the November 21, 2000, publication of the Federal Register. AGs with countable earned income are subject to semi-annual reporting (SAR) with six-month certification periods and are required to report changes in income that result in their gross monthly income exceeding 130 percent of the monthly poverty income guideline for their AG size. In addition, if there is a working able-bodied adult without dependents (ABAWD) in the AG, the ABAWD individual must report if work hours fall below 20 hours per week, 80 hours monthly.
Implementation
The implementation effective date is July 1, 2002 for newly applying and reapplying AGs with countable earned income (i.e., the application sign date is on or after July 1, 2002).
AGs currently certified with earnings under the status reporting requirement with three-month certification periods and AGs that are certified for more than three months under the $80 reporting requirement will be assigned to SAR with six-month certification periods at their next scheduled reapplication on or after July 1, 2002.
AGs reporting a change of new earned income on or after July 1, 2002 will be subject to SAR if the AGs certification period can be shortened or lengthened to six months from the budget effective date (in CRIS-E) as described under rule 5101:4-5-03, establishing certification periods, and rule 5101:4-7-01, reporting requirements during the certification period.
AGs Subject to SAR
AGs with countable earned income, including ABAWDs, individuals with self-employment or sheltered workshop earnings and AGs containing an ineligible AG member who has earned income that is prorated to the remaining AG members are subject to SAR.
AGs with no countable earned income and/or which contain ABAWDs who are meeting their work requirement by participating in a work activity only are not subject to SAR.
Rule 5101:4-5-03: Establishing Certification Periods
AGs with countable earnings must be assigned six-month certification periods. If an AG with earnings is also receiving OWF, DA, or Medicaid, the 6 month certification period for food stamps will be determined by the food stamp signature date that is entered in CRIS-E. It will not make a difference in the food stamp certification period if the eligibility worker enters a different signature date for other programs.
Once assigned six-month certification periods the AG must retain the six-month certification period until the next reapplication regardless of any subsequent AG changes. For example, if the AG no longer has countable earnings, the AG must remain on SAR requirements through the end of its current six-month certification period.
Paragraph (E) of this rule addresses adjusting the certification period for AGs reporting new countable earnings which subject the AG to SAR. If an AG is certified for six months or less and reports earnings, the certification period shall be lengthened to six months from the budget effective date, not to exceed twelve months. If an AG's certification period exceeds six months and the AG reports earnings, the certification period shall be shortened to six months from the budget effective date. If an AG's certification period cannot be lengthened or shortened to six months from the budget effective date, the AG's certification period shall not be changed and the AG shall not be subject to SAR until the next reapplication, if still applicable.
Note: Due to budgetary concerns, an administrative decision has been made by the Department to keep the cash programs at a six-month reapplication cycle. This would apply to all OWF, Refugee Cash Assistance, and DA (cash and medical) assistance groups. CRIS-E will calculate a six-month reapplication date for cases with or without earnings that have any of the above AG types and food stamps.
Rule 5101:4-7-01: Reporting Requirements During the Certification Period
Rule 5101:4-7-01(B) addresses the reporting requirements of AGs subject to SAR requirements. AGs who are subject to SAR are required to report changes in the amount of the actual gross monthly income that result in their gross monthly income exceeding 130 percent of the monthly poverty income guideline (gross monthly income standard) for their AG size. In addition, SAR AGs containing ABAWDs with earned income must report if the ABAWD's work hours fall below 20 hours in any week of the month, 80 hours monthly.
Actual gross monthly income reporting by SAR AGs is defined as earned and unearned income prior to any deductions such as taxes, garnishments, union dues, insurance, etc. and prior to conversion, averaging or proration.
AGs that have reported income exceeding the 130 percent gross monthly income standard for their AG size at application, reapplication, or change and who are categorically eligible up to 200 percent of the poverty level have met their 130 percent income reporting requirement until the next reapplication or subsequent change and would not be required to continue to report changes in income. If there is an ABAWD member in the AG, the AG would still be subject to report if that individual's work hours fall below 20 hours per week.
Mass changes due to adjustments to the eligibility income standards, allowable deductions, the standard deduction, the maximum food stamp allotment, the standard utility allowance, the periodic cost-of-living adjustment to retirement, survivors, and disability insurance (RSDI), SSI, and other adjustments of federal benefits will not affect the AG's 130 percent reporting requirement amount provided at the last application or reported change until the AG's next reapplication or subsequent change, at which time the AG will be provided the new 130 percent gross monthly income standard.
Although AGs subject to SAR are not required to report the addition or loss of an AG member, AGs are required to report if the earnings of a new AG member, combined with the AG's other countable income, exceed the 130 percent monthly poverty income guideline for their AG size that existed prior to the addition of the new AG member.
Reported changes, changes considered verified upon receipt, or changes that are known to the county agency which are not acted upon timely or reporting requirements not met by the AG may result in an underpayment or overpayment.
The county agency must act on all changes in accordance with the provisions of rule 5101:4-7-01(G) of the Administrative Code.
Reported changes include changes reported by the AG, changes considered verified upon receipt such as data matches through IEVS [5101:4-7-09(P)(1)] and changes known to the county agency such as changes in OWF/DA grant amounts or changes in PRC benefits and services.
In determining the AG's eligibility and monthly benefit, income and expenses shall be prospectively determined in accordance with rule 5101:4-4-31 of the Administrative Code.
AGs subject to SAR are not required to report any other changes in circumstances such as quitting employment or loss of employment. However, the county agency must investigate the loss of employment when it is discovered at application, reapplication, or reported change to determine if the job loss or a termination of employment by the individual was without good cause which may subject the individual to disqualification and/or sanction as outlined in rules 5101:4-3-09, 5101:4-3-11, and 5101:4-3-19 of the Administrative Code.
Notification of SAR
AGs with countable earnings will be issued a manual change report form at application, reapplication, reported change, or when assigned to SAR. This manual notice will contain the AG's reporting requirements and reporting timeframe.
AGs subject to SAR will be provided their reporting requirements which include their actual gross monthly income amount and the applicable 130 percent gross monthly income standard for their AG size on the CRIS-E generated approval notices or change notices (increases and decreases). If a working ABAWD is in the AG, the notice will contain special language informing the AG that they must report if the ABAWD's work hours fall below 20 hours per week during any week in the month. AGs not containing an ABAWD(s) will not have the language specific to ABAWDs on their notice.
A CRIS-E "Reminder Notice" will be generated to AGs subject to SAR during cut-off in the third month of their certification period. This notice reminds the AG of its reporting requirements. The notice also provides the AG with their 130 percent gross monthly income standard, their actual gross monthly income, and the AG size used to determine the AG's benefit amount at the last application or reported change.
Change Reporting Time Frames
AGs subject to SAR must report changes in their gross monthly income that exceed the AG's reporting limit and if an ABAWD's work hours fall below 20 hours per week during any week in the month. Changes must be reported within 10 days of the last day of the month in which either of these changes first occur. FNS approved this change reporting time frame for SAR AGs because AGs may not know until the end of the month if their income has exceeded their reporting limit and/or an ABAWD may not know until the end of the month if their work hours fall below 20 hours per week.
AGs Not Subject to SAR
Rule 5101:4-7-01(A) addresses the reporting requirements for AGs that have no countable earned income. As a result of implementation of SAR, the waiver regarding status reporting and the $80 reporting requirement are eliminated from paragraph (A) of this rule. The requirement that AGs report changes in wage rate, part-time to full-time employment status and the requirement that AGs report changes in gross earned income of more than $80 have been removed from this rule. AGs with no countable earned income must report changes greater than $25 in gross monthly income (earned and unearned) in addition to the other reporting requirements in paragraph (A).
The change reporting time frame for AGs with no countable earnings is within ten days of the date the change becomes known to the AG.
Action on all reported changes in accordance with the provisions of rule 5101:4-7-01(G) of the Administrative Code and determining eligibility and monthly benefits in accordance with rule 5101:4-4-31 of the Administrative Code are also applicable to AGs with no countable earned income.
Training and Technical Assistance
Training sessions on the implementation of semi-annual reporting with six-month certification periods will be conducted by the Bureau of County Oversight and Support technical assistance staff. The training sessions are scheduled for June 2002 in various locations throughout the State. CRIS-E support in establishing certification periods and issuing client notices will be in place effective July 1, 2002.
Fiscal Impact
There should be little or no fiscal impact for the county agencies to implement this FSTL. AGs will only be required to complete a face-to-face interview every six months, thus, reducing the eligibility workers' number of interviews for their caseload. The simplified reporting requirements will also result in fewer case changes for the eligibility workers to complete.
CRIS-E Support
CRIS-E generated notices will provide AGs subject to SAR with their actual gross monthly income and the 130% gross monthly income standard for their AG size on each approval or change notice. The changes in certification periods for AGs subject to SAR will be fully supported by CRIS-E.
Miscellaneous
Revisions to the JFS 07501, "Your Rights and Responsibilities" will be issued under separate cover.
Examples of AGs Subject SAR
Example #1: AG consists of mother and her two children on SAR. Mother is employed, grossing $350 per week. The county agency converts the $350 ($350 x 4.3 = $1505) and uses a monthly income of $1505 in determining the benefit amount. The AG is notified that it must report if their actual gross monthly income (currently $1400) exceeds the $1585 gross monthly income standard for their AG size. At the end of a month the AG realizes that it just received a fifth paycheck for $350, for an actual gross monthly income of $1750. Since the actual gross monthly income has exceeded the $1585 limit, the AG reports this to the county agency. The county agency recalculates the monthly income by converting it ($350 x 4.3 = $1505) and discovers that the AG's converted income amount has not changed. Therefore, the AG is still entitled to the same allotment. The county agency notifies the AG that the allotment amount is unchanged and advises the AG to report the next time its monthly income exceeds $1585.
Example #2: AG consists of mother and her two children on SAR. Mother is employed, grossing $350 per week. The county agency uses the converted monthly income of $1505 and notifies the AG that it must report if their actual gross monthly income (currently $1400) exceeds the $1585 gross monthly income standard for their AG size. The AG's weekly income increases to $400. At the end of the month the AG realizes that its actual gross monthly income was $1600, which exceeds the $1585 reporting threshold. The AG reports this to the county agency. The county agency recalculates the monthly income by converting $400 ($400 x 4.3 = $1720) and discovers that the AG's converted income has exceeded the 130 percent gross monthly income standard. The AG is ineligible. The county agency notifies the AG and proposes termination of the food stamp benefits. The AG is advised to re-apply if its income falls to $1585 or less.
Example #3: AG consists of mother and her two children on SAR. Mother is employed, grossing $300 per week. The county agency uses the converted monthly income of $1290 and notifies the AG that it must report if actual gross monthly income (currently $1200) exceeds the $1585 gross monthly income standard for their AG size. The AG's weekly income increases to $375. At the end of the month the AG adds up its wages and sees that its actual gross monthly income is $1500. Since the actual gross monthly income does not exceed the $1585 gross monthly income standard, the AG decides it is not required to report the increase. At the reapplication interview the county agency discovers this increase in wages, converts the income, and discovers that the AG's converted income is $1612 ($375 x 4.3). The $1612 converted income exceeds the 130 percent gross monthly income standard of $1585. The AG was not required to report this increase in income when the change occurred because the actual gross monthly income was still less than the 130 percent gross monthly income standard for their AG size. The county agency was correct in continuing benefits to the AG and no overpayment occurred as a result of this increase. However, the county agency now uses the converted income of $1612 and finds the AG ineligible.
Example #4: AG consists of mother and her daughter. There is no countable earned income and the AG's certification period is April 1, 2002 through September 30, 2002. On July 3rd the mother reports earnings which subjects the AG to SAR. The county agency notifies the AG of the new reporting requirement(s) and the certification period is extended to January 31, 2003 (six months from the budget effective date of August 1, 2002).
Example #5: AG consisting of mother and her daughter is subject to SAR. The AG's gross monthly income is $1120. The CRIS-E approval notice has provided the AG with their actual gross monthly income and the 130 percent gross monthly income standard of $1258 for an AG size of two. The mother received a promotion and a pay increase in September. On October 1st, the mother adds up her income for September and realizes that her gross income for September was $1376, which exceeds the 130 percent gross monthly income standard. She reports this to the county agency within 10 days after the last day of September. The county agency takes the appropriate action.
Example #6: AG consisting of a man, his wife, and their child are subject to SAR. Their actual gross monthly income of $1120 and the 130 percent gross monthly income standard of $1,585 have been provided to the AG on their approval notice. The wife's brother who is employed, earning $200 per month moved into the AG in October. The brother purchases and prepares his meals with his sister's family. On November 1st the AG adds up their actual income which totals $1320. Since the AG's income is within $1585 gross monthly income standard, the AG is not required to report this change to the county agency.
Example #7: AG consists of husband and wife, both are age 64 and receive a total of $800 per month social security disability benefits. They are certified from August 1, 2002 through July 31, 2003. Their 20 year old daughter who is employed, grossing $824 per month, moves into the AG on December 2, 2002 and the AG reports this to the county agency. Since the daughter is employed, the AG is subject to SAR. The AG is notified of their new reporting requirements and is provided their actual gross monthly income amount and the 130 percent gross monthly income standard for their AG size of three. The AG's certification period is shortened to end effective June 30, 2003 (six months from the budget effective date of January 1, 2003).
Example #8: AG consists of husband and wife, both are age 64 and receive a total of $800 per month social security disability benefits. They are certified from August 1, 2002 through July 31, 2003. Their 20 year old daughter who is employed, grossing $824 per month, moves into the AG on May 3, 2003. The food stamp budget is adjusted to reflect the increase in AG size and income effective June 1, 2003. However, the certification period cannot be lengthened to 6 months from the budget effective date because the certification period would exceed the maximum limit of 12 months. The certification period remains unchanged and the AG would remain subject to the reporting requirements for AGs with no countable earned income until the next reapplication when the AG would be subject to SAR and given a 6-month certification period, if still applicable.
Example #9: AG consists of husband, wife, and their two children. The husband is employed, grossing $1280 per month. The AG has no other countable income. The AG is subject to SAR and is certified from 10/1/02 through 3/31/03. The 130 gross monthly income standard for their AG size is $1913. On 11/25/02 the husband quit his job without good cause. Since the AG is on SAR, this loss of income is not required to be reported to the county agency. On 2/5/03 the AG completes a reapplication interview and reports the loss of the earned income. The county agency determines a voluntary job quit without good cause occurred. The county agency initiates a voluntary job quit sanction for the husband. Since the AG is no longer subject to SAR, the remaining AG members are recertified effective 4/1/03 with the reporting requirements outlined in 5101:4-7-01(A). No overpayment results since the AG was not required to report the loss of income.
Instructions:
Remove and file as obsolete all pages headed 5101:4-5-03 and replace with the attached corresponding pages.
Remove and file as obsolete all pages headed 5101:4-7-01 and replace with the attached corresponding pages.
Remove and file as obsolete all pages of the Appendix Index dated March 1, 2002 and replace with the attached corresponding pages dated July 1, 2002.
Insert the JFS 04196, "Food Stamp Change Report For Assistance Groups With Earned Income" dated July 2002 as Appendix 23.
Remove and file as obsolete Appendix 24, JFS 07443, "Food Stamp Change Report" dated July 2001, and replace with the attached JFS 07443 dated July 2002.
Update Appendix 35, Record of Changes to Handbook, with the number and date of this transmittal.