[Federal Register Volume 61, Number 243 (Tuesday, December 17, 1996)]
[Proposed Rules]
[Pages 66233-66238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31989]
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DEPARTMENT OF AGRICULTURE
Food and Consumer Service
7 CFR Part 273
[Amendment No. 376]
RIN 0584-AB57
Food Stamp Program; Anticipating Income and Reporting Changes
AGENCY: Food and Consumer Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This rule proposes revisions in Food Stamp Program procedures
for reporting and acting on changes in earned income. The changes are
designed to increase State agency flexibility and improve procedures
for determining the eligibility and benefits of households whose income
fluctuates unpredictably. Under this proposal, State agencies would
choose from three different reporting requirements for households with
earned income. The reporting requirement a State agency selects would
replace the current requirement that households report a change of more
than $25 in earned income. In addition to reporting a change in source
of income, households would be required to report one of the following:
A change in wage rate or salary and a change in part-time or full-time
status, provided the household is certified for no more than 3 months;
a change in wage rate or salary and a change of more than 5 hours a
week that is expected to continue for more than a month; or a change in
the amount earned of more than $80 a month.
DATES: Comments must be received on or before February 18, 1997 to be
assured of consideration.
ADDRESSES: Comments should be submitted to Margaret Werts Batko
Assistant Branch Chief, Certification Policy Branch, Program
Development Division, Food and Consumer Service, USDA, 3101 Park Center
Drive, Alexandria, Virginia, 22302, (703) 305-2516. Comments may also
be datafaxed to the attention of Ms. Batko at (703) 305-2486. The
internet address is: [email protected] All written comments
will be open for public inspection at the office of the Food and
Consumer Service during regular business hours (8:30 a.m. to 5 p.m.,
Monday through Friday) at 3101 Park Center Drive, Alexandria, Virginia,
Room 720.
FOR FURTHER INFORMATION CONTACT: Questions regarding the proposed
rulemaking should be addressed to Ms.
[[Page 66234]]
Batko at the above address or by telephone at (703) 305-2516.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule has been determined to be significant and was
reviewed by the Office of Management and Budget in conformance with
Executive Order 12866.
Executive Order 12372
The Food Stamp Program (Program) is listed in the Catalog of
Federal Domestic Assistance under No. 10.551. For the reasons set forth
in the final rule in 7 CFR part 3015, Subpart V and related Notice (48
FR 29115), this Program is excluded from the scope of Executive Order
12372 which requires intergovernmental consultation with State and
local officials.
Regulatory Flexibility Act
This rule has been reviewed with regard to the requirements of the
Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612). Ellen Haas,
Under Secretary for Food, Nutrition, and Consumer Services, has
certified that this rule will not have a significant economic impact on
a substantial number of small entities. State and local welfare
agencies will be the most affected to the extent that they administer
the Program.
Paperwork Reduction Act
This proposed rule contains information collections which are
subject to review by the Office of Management and Budget (OMB) under
the Paperwork Reduction Act of 1995 (Pub. L. 104-13). The reporting and
recordkeeping burden associated with the eligibility, certification,
and continued eligibility of food stamp recipients is approved under
OMB No. 0584-0064. Current burden estimates for OMB No. 0584-0064
include burden associated with collecting and verifying information
reported on the application to determine initial household eligibility
and also on a form given to households for reporting changes in their
circumstances during the certification period. Some households are
required to submit a report every month; other households (change
reporting households) are required to report changes within 10 days of
the date they become aware of the change. State agencies provide
households with a form for reporting these changes (change report form)
at every certification and whenever a change is reported. This rule
would amend 7 CFR 273.12(a)(1)(i) to provide State agencies with three
options for earned income changes households would be required to
report. The options are (1) a change in wage rate or salary and a
change in part-time or full-time status, provided that the household is
certified for no more than 3 months; (2) a change in wage rate and a
change of more than 5 hours a week that is expected to continue for
more than a month; or (3) a change in the amount earned of more than
$80 a month. State agencies would select one of these options to
include on the change report form. The provisions in 7 CFR
273.12(a)(1)(i) of this proposed rulemaking do not alter burden
estimates already approved under OMB No. 0584-0064 for change reporting
households. The methodologies used to determine the burden estimates
assume that all change reporting households will submit at least one
change report form annually. The number of change reporting households
is estimated to be 9,324,000. Although the proposed changes would
remove the need for change reporting households to report small changes
in the amount of earned income, households would still be required to
report other changes, and the assumption of at least one report a year
remains valid. The public reporting burden for the change report form
is estimated to average .1617 hours per report form for a total burden
of 1,507,691 hours annually.
Comments. Comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information, including the
validity of the methodology and assumptions used; (c) ways to enhance
the quality, utility and clarity of the information to be collected;
and (d) ways to minimize the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology. Comments may be
sent to Wendy Taylor, OIRM, Room 404-W, Office of Management and
Budget, Paperwork Reduction Project (OMB No. 0584-0064), Washington,
D.C. 20503 and Department of Agriculture, Clearance Officer, OIRM, AG
Box 7630, Washington, DC 20250. Comments and recommendations on the
proposed information collection must be received by February 18, 1997.
Executive Order 12778
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule is intended to have preemptive effect with
respect to any State or local laws, regulations or policies which
conflict with its provisions or which would otherwise impede its full
implementation. This rule is not intended to have retroactive effect
unless so specified in the EFFECTIVE DATE paragraph of this preamble.
Prior to any judicial challenge to the provisions of this rule or the
application of its provisions, all applicable administrative procedures
must be exhausted.
Regulatory Impact Analysis
Need for Action
This action is needed to respond to requests from State agencies
for revision of the requirements for reporting changes in earned
income, to clarify procedures for averaging income, and to assist
households in meeting their responsibility to comply with Program
requirements.
Benefits
State agencies will benefit from this rule because households will
better understand which changes in earnings they are required to
report. Recipients who work will benefit because they will have to
report only significant changes in their employment status rather than
frequent and temporary changes in the amount of monthly income.
Costs
The changes in requirements for reporting changes in earnings and
acting on reported changes are not expected to have a significant
impact on Program costs.
Background
There are two systems in the Food Stamp Program for determining the
amount of benefits a household should receive: Prospective budgeting
and retrospective budgeting. Section 5(f)(3)(A) of the Food Stamp Act
of 1977, as amended (the Act), 7 U.S.C. 2014(f)(3)(A), provides that
calculation of household income on a prospective basis should be based
on the income the household reasonably anticipates receiving during the
period for which eligibility and benefits are being determined. The law
requires the calculation to be made in accordance with regulations
which provide for taking into account both the income reasonably
anticipated to be received by the household during the period for which
eligibility or benefits are being determined and the income received by
the household during the preceding 30 days. Section 5(f)(3)(B) of the
Act, 7 U.S.C. 2014(f)(3)(B), provides that
[[Page 66235]]
calculation of household income on a retrospective basis is the
calculation of income for the period for which eligibility or benefits
are being determined on the basis of income received in a previous
period. 7 CFR 273.10(c) of the food stamp regulations provides
requirements for prospective budgeting; retrospective budgeting is
addressed in 7 CFR 273.21.
Certified households are required to report certain changes in
circumstances that occur during the certification period. State
agencies have the option under section 6(c)(1)(A) of the Act, 7 U.S.C.
2015(c)(1)(A), to require some categories of households to report on a
periodic basis; however, State agencies are prohibited from including
certain households in a monthly reporting system or budgeting the
households retrospectively as provided at 7 CFR 273.21(b).
Section 6(c)(1)(B) of the Act, 7 U.S.C. 2015(c)(1)(B), provides
that households not required to file a periodic report on a monthly
basis shall be required to report changes in income or household
circumstances as provided in regulations. State agencies are required
to determine the benefits of monthly reporting households by
retrospective budgeting. However, change reporting households, i.e,
those households not subject to monthly reporting, may be budgeted
prospectively or retrospectively. Regulations for monthly reporting
households are at 7 CFR 273.21; those for change reporters are at 7 CFR
273.12.
In this rule we are proposing to simplify the regulations for
reporting changes in earned income when a household is not required to
report monthly. The proposed revisions are designed to address problems
State agencies have reported in determining the benefits of households
with income that fluctuates monthly.
Prospective Budgeting and Change Reporting
Prior to passage of the Hunger Prevention Act of 1988 (HPA) (Pub.
L. 100-435, September 19, 1988), monthly reporting and retrospective
budgeting (MRRB) were mandatory for households with earnings or a
recent work history. The HPA made monthly reporting a State agency
option.
Since then, some State agencies have abandoned monthly reporting
while others have retained MRRB for all or part of the caseload. There
are several advantages to retaining MRRB for households with earnings.
Households with earnings report their income each month, and benefits
are adjusted accordingly for a subsequent issuance month. Since the
actual amount of income earned in the budget month is used to determine
the allotment for the issuance month, the allotment corresponds exactly
to the reported income rather than to an estimate of anticipated
income. The requirement that a household submit a monthly report also
helps eligibility workers keep in contact with households on a regular
basis without the need for frequent recertification.
However, a monthly reporting system requires the State agency to
determine each month whether or not a monthly reporting household has
filed a report and to act on any reported changes. When caseloads
increase, it is sometimes difficult for eligibility workers to process
the reports within the required time frames. A monthly reporting system
is also expensive because of the number of reports and notices that
have to be printed and mailed out. Monthly reporting is burdensome for
participants and less responsive to changes in household circumstances
than change reporting because benefits are based on circumstances that
existed in a prior month.
Because of the costs associated with monthly reports, many State
agencies converted their entire caseload from MRRB to change reporting
and prospective budgeting. Prospective budgeting requires State
agencies to use information available at initial certification and
subsequent recertifications to predict what a household's circumstances
will be during the period of eligibility--the certification period.
Change reporting provisions at 7 CFR 273.12(a) require households to
report certain changes in household circumstances within 10 days of the
date the change becomes known to the household. Each time the State
agency learns of a change in the household's circumstances during the
certification period, the State agency must determine the effect of the
change on eligibility and benefits.
One of the difficulties encountered by State agencies using
prospective budgeting and change reporting is the problem of
determining the eligibility and benefits of households with income that
changes unpredictably in amount or frequency from month to month
(fluctuating income).
Under prospective budgeting, State agencies must anticipate income
that will be received. Regulations at 7 CFR 273.10(c) for anticipating
income were published on October 17, 1978, and have not been amended
since that time. The regulations include the following requirements:
1. If the amount of income anticipated to be received and the date
of receipt are uncertain, the income shall not be counted.
2. Income received during the past 30 days shall be used as an
indicator of future income, but past income shall not be used if a
change has occurred or is anticipated. If income fluctuates to the
extent that income from the past 30 days is not an accurate predictor
of future income, the State agency and the household may use a longer
period of past time to provide a more accurate figure.
3. If the receipt of income is reasonably certain but the monthly
amount may fluctuate, the household may elect to have its income
averaged. To average income, the State agency shall use the household's
anticipation of income fluctuations over the certification period.
4. Income shall be counted only in the month in which it is
expected to be received, unless it is averaged.
5. If income is received on a weekly or biweekly basis (every 2
weeks), 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 public assistance (PA) conversion standard, or use
the exact monthly figure if it can be anticipated for each month of the
certification period.
If the income fluctuates and there is an income history, the usual
practice is to anticipate future fluctuations in income by projecting
an average of income received in recent past months. However,
regulations at 7 CFR 273.12(a) require households to report changes of
more than $25 in gross monthly income. If income is averaged, the
figure used to determine the allotment will differ from the income a
household actually received in any one month. To address this and other
problems, FCS has proposed changes in the $25 reporting requirement on
several occasions.
Section 5(f)(3)(A) of the Act, 7 U.S.C. 2014(f)(3)(A), gives the
Secretary of Agriculture broad discretion in the area of Food Stamp
Program reporting requirements. Regulations published July 15, 1974 (39
FR 25996-26008) required households to report changes of $25 or more in
income or deductions. The preamble to a proposed rule issued May 2,
1978 (43 FR 18874-96) discussed problems with the income reporting
requirement and solicited comments on the proposed change and two
alternatives. The proposed change was to require households to report
all changes in income, except changes in the PA grant. The two
alternatives were:
[[Page 66236]]
1. The household would be required to report all income changes but
the State agency would not have to act on monthly changes of $10 or
less.
2. The household would be required to report only changes of $20 or
more, but the $20 would apply separately to each income source.
The preamble to final rules dated October 17, 1978 (43 FR 47846,
47872-74) indicates that the largest number of commenters preferred the
second alternative and the next largest group preferred the current
procedures. Based on the comments citing the administrative
difficulties of the three reporting procedures offered in the proposed
rule and the number of comments supporting the $25 requirement, we
chose to continue the then existing and still current policy.
In a rulemaking published January 16, 1981 (46 FR 4642), we
proposed to change the income reporting requirement to address problems
in handling changes for households with fluctuating income. The
proposed change would have required households with fluctuating income
to report changes in wage rate, full-time or part-time status, and
source of income. The $25 minimum reporting requirement would not have
applied to these households. No change was proposed in the reporting
requirement for households with stable earnings or unearned income.
Some commenters opposed the proposal, calling it burdensome, an
example of overregulation, and too confusing. Other commenters believed
that the omission of a requirement to report changes in the number of
hours worked would result in lack of action on possibly significant
changes. Because of the adverse comments and the imminent
implementation of monthly reporting requirements, a final rule was not
published on the subject.
As part of a rule proposed September 29, 1987 (52 FR 36546), we
again proposed to change requirements for reporting changes in
fluctuating income. In addition to problems with the $25 threshold
cited in previous rules, the preamble of these regulations indicated
that the current requirement makes it difficult to develop quality
control (QC) review procedures. The proposal was also designed to be
consistent with provisions of the Aid to Families with Dependent
Children (AFDC) QC manual which defined a change as any employment
status change which results in either increased or decreased income
such as a change in part-time or full-time status, the loss of a job,
or a change in hourly rate. The proposal retained the $25 threshold for
reporting changes but added the requirement to report changes in full-
time or part-time status, source, or hourly rate. The proposed
requirement applied only to households with fluctuating income, which
was defined as income that varies unpredictably from month to month.
Under the proposal, households with fluctuating income would report
permanent changes in the source of income and ongoing changes in the
number of hours worked. The proposal was based on assumptions that the
$25 minimum reporting requirement does not lend itself to changes in
fluctuating income and that errors in household income are more
frequently attributable to changes in employment status, such as
converting from unemployed to employed or from part-time to full-time
work.
A majority of commenters opposed this proposal. They were concerned
that the rule would add another reporting requirement and that it would
be difficult to define permanent and non-permanent status changes and
fluctuating income. In addition, the proposed changes would not have
resulted in complete conformity between the Food Stamp and AFDC
Programs. For these reasons, the provision was not adopted as final.
The implementation of monthly reporting also reduced the immediate need
for a change in change reporting requirements.
In addition to the problems of anticipating income that fluctuates
and determining which changes should be reported during the
certification period, there is also the difficulty in deciding under
what circumstances a reported change in fluctuating income should be
reflected in a changed allotment. Introductory paragraph 7 CFR
273.12(c) requires State agencies to take prompt action on all changes
to determine if the change affects the household's eligibility or
allotment. Even if the allotment is not changed, the State agency must
document the reported change in the case file and send the household
another change report form. Regulations at 7 CFR 273.12(c)(1) and (2)
provide specific requirements for changes that result in an increase or
decrease in the allotment.
However, it is not clear how the State agency should react to a
temporary change in income reported by a household whose income has
been averaged. The regulations do not specifically require the State
agency to compute a new average based on a temporary change. One
eligibility worker might reaverage the income based on the new
information and adjust the household's allotment. Another eligibility
worker might document the reported change in accordance with 7 CFR
273.12(c), but make no change in the allotment unless it was
anticipated that the change would continue.
In this rule, we are proposing to modify the requirements for
averaging income, reporting changes in income, and acting on reported
changes. We believe these modifications will assist State agencies in
determining the eligibility and benefits of households with fluctuating
income over the months of the certification period. When income is
averaged, the amount of income received each month does not correspond
directly to the issuance for any given month. However, if the average
used corresponds closely to the household's average income received
during the certification period, the household's benefits over the
certification period will correctly reflect the increases and decreases
in income that normally occur.
The changes proposed in this rule are designed to simplify the
reporting requirements and assist State agencies in managing cases with
fluctuating income. We are seeking comments on the following proposed
changes and suggestions for alternatives.
a. Averaging Income--7 CFR 273.10(c)(3)(i)
Current regulations at 7 CFR 273.10(c)(3)(i) provide that
households (except destitute households and public assistance (PA)
households subject to monthly reporting) may elect to have their income
averaged over the certification period. Some State agencies have
requested that food stamp regulations be revised to allow averaging at
the State agency's option. Others have requested that averaging be
mandatory for fluctuating income.
We are proposing to retain the provision of 7 CFR 273.10(c)(3)(i)
allowing households to choose whether income shall be counted in the
month received or averaged. We believe households should continue to
have the opportunity to select the method used to determine their
benefits when fluctuations in income are anticipated. There may be
situations in which the household would prefer to have income counted
in the month received rather than having it averaged. However, we would
like to solicit comments on this provision. We are proposing to amend 7
CFR 273.10(c)(3) to remove the reference to PA households subject to
monthly reporting. This section was written before the use of monthly
reporting in the Food Stamp Program. Section 273.21 now provides
[[Page 66237]]
requirements for monthly reporting and retrospectively budgeted
households; therefore, there is no need to mention these households at
7 CFR 273.10(c)(3).
We have received questions concerning the steps to be followed in
averaging and converting weekly or biweekly income amounts. For the
purposes of 7 CFR 273.10(c)(3), income (whether earned or unearned) is
averaged by adding together income amounts received or expected to be
received over two or more months. The total is then divided by the
number of months used in the calculation to arrive at an average.
Conversion as authorized in 7 CFR 273.10(c)(2)(i) is the process of
taking into account months in the year in which an extra weekly or
biweekly payment will be received by using a conversion factor instead
of adjusting the allotment for the months in which the extra check is
received. The amounts used in anticipating income must be
representative of income the household expects to receive. If the
household member has just started a job and has no income history, the
eligibility worker would anticipate income in accordance with the
requirements at 7 CFR 273.10(c)(1). If the same amount of income is
received or expected to be received every week, anticipated income from
one payment may be converted to a monthly amount by using a conversion
factor. However, converting a single weekly amount to a monthly amount
does not constitute averaging for the purposes of the provisions in 7
CFR 273.10(c)(3). State agencies that elect not to use a conversion
factor would have to anticipate receipt of an extra pay check and
adjust the allotment for the month in which it will be received.
We are proposing to revise 7 CFR 273.10(c)(3)(i) to eliminate the
reference to PA monthly reporting households and to add a reference to
Sec. 273.12(c), which we propose to amend as indicated below. We would
also clarify that monthly amounts are used in averaging and eliminate
unnecessary language, including the example.
b. Income Reporting Requirements--7 CFR 273.12(a)(1)
The heading of regulations at 7 CFR 273.12 currently reads
``Reporting changes.'' The section includes requirements for reporting
and acting on changes for households not required to report monthly.
Requirements for monthly reporting households have been added to the
regulations at 7 CFR 273.21 since 7 CFR 273.12 was originally written.
Therefore, we are proposing to change the title of 7 CFR 273.12 to
``Requirements for change reporting households.'' The introductory
sentence of 7 CFR 273.12(a)(1) currently provides that ``Certified
households are required to report the following changes in
circumstances.'' We are proposing to amend the sentence to specify that
households not required to report monthly (change reporting households)
are required to report the specified changes. Proposals for changes in
the reporting requirements are discussed below.
In this rulemaking, we are proposing to modify 7 CFR
273.12(a)(1)(i) by revising the reporting requirements for earned
income. Although the reporting requirement for fluctuating income is of
particular concern, we are proposing that the requirement apply to all
earned income (as defined in 7 CFR 273.9(b)(1)). Under this proposal,
all households would be required to report a change in source of
income, such as starting or losing a job, changing employers, or
gaining or losing a source of unearned income. All households would
also have to report a change of more than $25 in unearned income.
Households with earned income would also be required to report
changes affecting the amount of income earned. As a substitute for the
current requirement to report a change of more than $25 in income, we
propose to offer State agencies three alternative earned income
reporting requirements. The three earned income reporting options are:
(1) A change in wage rate or salary and a change in part-time or
full-time employment status. Because some households could experience a
change in part-time employment that would be less than a change from
part-time to full-time but could involve a significant change in
income, State agencies would be required to certify these households
for no more than 3 months.
(2) A change in wage rate and a change in hours worked of more than
5 hours a week that is expected to continue for more than a month.
(3) A change in the amount earned of more than $80 a month.
Under the first option, households would have to report any change
in wage rate and a change in part-time or full-time employment status.
We believe a change in part-time or full-time status would signal a
significant change in the number of hours a household member would be
expected to work. Regulations at 7 CFR 273.7 provide that a person
working a minimum of 30 hours a week is exempt from work registration,
and we considered using the 30-hour figure as a bench mark for full-
time employment. However, because State agencies may have a definition
of ``part-time'' that is used for PA, we have decided not to define
``part-time.'' To provide State agency flexibility and facilitate
consistency with PA, we are proposing that State agencies may define
``part-time.''
Under the second option, households would be required to report
when a change in wage rate occurred and also when there was a change of
more than 5 hours a week that is expected to continue for more than a
month. Under the third option, households would be required to report
when the amount earned changed by more than $80 a month. We believe the
use of one of these options would eliminate some of the problems with
the current reporting requirement for earned income. Households with
earnings would have a clearer idea of exactly what to report and would
not have to report fluctuations in income resulting from temporary
changes in the number of hours worked. In addition, the proposal would
eliminate some of the problems encountered in quality control reviews
of cases with fluctuating income. Providing three options would
increase the ability of State agencies to conform reporting
requirements for various programs.
In this rule we are proposing to continue the current $25 reporting
requirement threshold for unearned income with the two changes noted
below. However, we are interested in comments on alternative reporting
requirements for unearned income, including the use of computer
matching information in lieu of household reporting.
Some State agencies may have the capability of making information
regarding a household's unearned income available to their eligibility
workers very quickly through data exchange systems that have been
established for the exchange of information between the providers of
various benefits and State agencies. Through these systems, State
agencies match household records with information from the income
sources and determine the amount of Supplemental Security Income (SSI),
Federal Old Age, Survivors, and Disability Insurance (OASDI) benefits,
and unemployment compensation (UC) households receive. It would appear
that information from these data sources, rather than from the
households, could be used to maintain current and accurate information
about the benefits households are receiving. However, this would be
possible only if the information could be obtained and
[[Page 66238]]
used to adjust food stamp benefits in accordance with the timeframes
currently in place for acting on changes.
New systems developed by the Social Security Administration (SSA)
may provide faster access to accurate information about SSI and OASDI
benefits than has previously been the case. SSA has developed the State
Verification and Exchange System (SVES), 42 U.S.C. 1320b-7(a), which
replaces previously separate exchanges for SSI and OASDI data. Using
the new File Transfer Management System (FTMS), State agencies will be
able to obtain daily updates of SSI and OASDI information. SSA will
respond to SVES inquiries submitted via FTMS within 24 hours. Using
these systems, State agencies will be able to obtain current income
information and update records at the State level or provide the
information to local offices electronically.
We are interested in State agency comments on their ability to
access and use these systems to identify and act on changes in SSI and
OASDI benefits within the current timeframes in 7 CFR 273.12(c) for
acting on reported changes. We are also interested in comments on the
ability of State agencies to use the State's UC data systems for acting
on changes in households' UC benefits.
c. Action on Changes in Fluctuating Income--7 CFR 273.12(c)
To address the problem of determining when eligibility workers
should act on a reported change in fluctuating income, we are proposing
to revise the introductory paragraph of 7 CFR 273.12(c) to specify that
if a household reports a change in income, the State agency shall use
the information to compute a new allotment amount if the change is
representative of anticipated future income. Whether it is
representative would be determined on the basis of an expectation that
the new circumstance will continue for at least one month beyond the
month in which the change is reported. The worker would document the
case record to indicate the basis for adjusting or not adjusting the
average. If the change does not affect the allotment, the worker would
document that fact.
Implementation
We are proposing that the changes made by this rule would be
effective and implemented no later than the first day of the month 180
days after publication of the final rule.
List of Subjects in 7 CFR Part 273
Administrative practice and procedure, Aliens, Claims, Food stamps,
Fraud, Grant programs--social programs, Penalties, Records, Reporting
and recordkeeping requirements, Social security, Students.
Accordingly, 7 CFR part 273 is proposed to be amended as follows:
1. The authority citation of part 273 continues to read as follows:
Authority: 7 U.S.C. 2011-2032.
PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS
2. In Sec. 273.10, paragraph (c)(3)(i) is revised to read as
follows:
Sec. 273.10 Determining household eligibility and benefit levels.
* * * * *
(c) Determining income. * * *
(3) Income averaging. (i) Households may elect to have their income
averaged. However, the State agency shall not average the income of
destitute households (as defined in paragraph (e)(3) of this section).
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).
* * * * *
5. In Sec. 273.12,
a. The heading of the section, the introductory text of paragraph
(a)(1) and paragraph (a)(1)(i) are revised.
b. The introductory text of paragraph (c) is amended by adding two
sentences after the first sentence.
The revisions and additions read as follows:
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. Certified
change reporting households are required to report the following
changes in circumstances:
(i) (A) A change greater than $25 in the amount of unearned income,
except changes relating to 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.
(B) A change in the source of income, including starting or
stopping a job or changing jobs.
(C) One of the following, as determined by the State agency:
(1) A change in the wage rate of earned income and 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 3 months;
(2) A change in wage rate and a change in hours worked of more than
5 hours a week that is expected to continue for more than a month; or
(3) A change in the amount earned of more than $80 a month.
* * * * *
(c) State agency action on changes. * * * If a household reports a
change in income, the State agency shall act on the change in
accordance with paragraphs (c)(1) and (c)(2) of this section if the new
circumstance is expected to continue for at least one month beyond the
month in which the change is reported. The time frames in paragraphs
(c)(1) and (c)(2) of this section apply to these actions. * * *
* * * * *
Dated: December 10, 1996.
Ellen Haas,
Under Secretary for Food, Nutrition, and Consumer Services.
[FR Doc. 96-31989 Filed 12-16-96; 8:45 am]
BILLING CODE 3410-30-U
