Questions and Answers on the Noncitizen Eligibility and Certification
Provisions Final Rule
Subject: Questions and Answers on the Noncitizen Eligibility and
Certification Provisions Final Rule (November 21, 2000)
To: All Regional Directors - Food Stamp Program
The attached questions and answers concern the final rule’s provisions
on Semi-Annual Reporting. They address both certification policy and quality
control review procedures. Please share this information with your State
agencies.
If you or your staff have any questions or comments about the attachment,
please direct them to Thomas O'Connell at 703-305-2390.
Arthur T. Foley
Director
Program Development Division
Section A Households That are Eligible for 6-Month Reporting
Question A-1
Do households with earned income include the following
groups?
-
The only earnings are a minor’s earnings, and they are excluded
-
The only earnings are from a disqualified group member
-
The only earnings are from self-employment, and after expenses the
net earnings are $0
Answer A-1
The second and third groups are households with earned income.
The first group is not.
In order for a household to be required to report only when its income
exceeds 130% of the poverty guideline, the household must have countable
earned income.
Question A-2
If a household reports that it has lost its earned income, may the state
agency keep the household on six-month, 130% reporting?
Answer A-2
Yes. It is the state agency’s option to switch the household to a different
reporting requirement or to leave the six-month reporting requirement
in place.
Question A-3
If a household reports that it has lost its earned income, and the state
agency switches the household to another reporting requirement, when must
the switch take place?
Answer A-3
The state agency must switch the household no later than the earlier
of:
Question A-4
A household is not on the six-month reporting option. The household reports
a change during its certification period. The change makes the household
eligible for the six-month reporting option.
Can the state agency change the household’s reporting requirement during
its certification period?
Answer A-4
It is the state agency’s decision whether to change the household’s reporting
requirement or keep it the same. Please also see questions A-5 and
A-6.
Question A-5
For the household described in question A-4, suppose the state agency
changes the household to the six-month reporting requirement. Must the
state agency notify the household of its new reporting requirement?
Answer A-5
Yes.
Question A-6
For the household described in question A-4, how must the state agency
align the household’s reporting requirement and certification period?
Answer A-6
There is no requirement that the reporting requirement and the certification
be aligned. However, we are aware of at least three scenarios the state
agencies may use.
One. Lengthen the certification period up to 12 months,
choosing a length between 6 and 12 months in order to align the 6-month
reporting requirement with the recertification action.
For example, suppose the household had been certified for six months
(but not using the 130% reporting requirement). The household then reports
a change in month two that would allow it to have the 130% reporting requirement.
The state agency could advise the household of its new reporting requirement
and recertify the household at the end of its already established six-month
certification. The household could, at its recertification, be certified
for either 6 months or 12 months and have its reporting and certification
periods then be aligned.
-
The household is certified 01-01-02 through 06-30-02
-
The household reports gaining earned income on 02-02-02
-
The state agency gives the household the 130% reporting requirement
effective 03-01-02
-
The state agency recertifies the household in 06-02, giving it a certification
period of 07-01-02 through 06-30-03
-
The household’s six-month report is due around the end of 12-02.
Two. Extend the certification period to give the household
six months under semi-annual reporting (the basic circumstances are the
same as in method one).
-
The household is certified 01-01-02 through 06-30-02
-
The household reports gaining earned income on 02-02-02
-
The state agency gives the household the 130% reporting requirement
effective 03-01-02
-
The state agency extends the certification period until 08-31-02.
-
The state agency then recertifies the household, effective 09-01-02.
Three. Keep the certification period and reporting period
out of alignment until the next recertification.
For example, suppose the household had been certified for 12 months (but
not using the 130% reporting requirement). The household then reports
a change in month two that would allow it to have the 130% reporting requirement.
The state agency could advise the household of its new reporting requirement.
The household’s first six-month required report would not be due in the
sixth month of its certification period in this circumstance and its reporting
period would not align with its certification period in six month increments
until it was recertified at the end of 12 months.
-
The household is certified 01-01-02 through 12-31-02
-
The household reports gaining earned income on 02-02-02
-
The state agency gives the household the 130% reporting requirement
effective 03-01-02. The household’s six-month report is due around the
end of 08-02
-
The state agency recertifies the household around the end of 12-02,
giving it a certification period of 01-01-03 through 12-31-03
-
The household’s six-month report is due around the end of 06-03.
Section B The 130% Reporting Requirement
Question B-1
If a household is categorically eligible and reports that its gross income
is over 130% of the monthly poverty income guideline, does the household
continue to have a reporting requirement?
Answer B-1
It is not necessary for a state agency to continue a household’s reporting
requirement as long as the household’s income remains above its 130% figure.
However, a state agency may continue the requirement. If
it does so, it must explain the requirement to FNS.
Please also see question B-2.
Question B-2
For households that are described in Question B-1, what action would
the state agency take on a reported change?
Answer B-2
The state agency will act in accordance with 273.12(a)(1)(vii)(A). That
is, the state agency will raise or lower benefits as it would for any
other household that is on semi-annual reporting.
Question B-3
In the regulations, 273.12(a)(1)(vii)(A) states that:
Households with earned income certified for 6 months in accordance
with paragraph (a)(1)(vii) must not be required to report changes in
accordance with paragraphs (a)(1)(ii) through (a)(1)(vi) of this section.
This leaves out (a)(1)(i), which contains all the income-reporting requirements.
It seems the intent would be that they would not have to comply with that
section since they only have to report if gross income exceeds 130% of
poverty.
Does (a)(1)(vii) replaces (a)(1)(i) for this purpose?
Answer B-3
273.12(a)(1)(vii) replaces (a)(1)(i) for the purpose of income-reporting.
The prohibition of applying paragraphs (a)(1)(ii) through (a)(1)(vi) is
solely to make it clear that the only reporting requirement for households
is the 130% income-reporting requirement.
Question B-4
When the household is measuring its total gross income to determine whether
that income exceeds 130% of the monthly poverty income guideline, must
the household use actual income, converted income, averaged income, pro-rated
income, or annualized income?
Answer B-4
The state agency may choose the way in which the household will measure
its monthly income. It may be that a combination of methods will be useful
for some households.
The state agency should make its decision so that a household clearly
understands what it must report.
Question B-5
For the situation in question B-4, does the state have the same options
regarding the calculation of the household’s allotment?
Answer B-5
No. The Food Stamp Program’s normal rules, regarding conversion, pro-rating,
averaging, and annualizing, continue to apply.
Section C Acting on Changes
Question C-1
Is the state agency required to act, for food stamp purposes, on changes
that are known to the state agency because they were reported for PA or
GA?
Answer C-1
Yes, but only if the state agency acts on the other programs by changing
the PA or GA grant.
The regulation calls for acting on changes when there has been a change
in the PA grant. The intent is that once the PA grant changes, all
changes related to the grant, as well as the grant itself, be
acted on for the Food Stamp Program.
Please also see question C-2.
Question C-2
When must the state agency act on changes that are described in question
C-1?
Answer C-2
At the same time that the state agency takes the corresponding action
on the other program, or as soon thereafter as possible, in accordance
with the provisions for notices of adverse action in 273.12(c).
Question C-3
What happens if a household reports a change that the worker is not supposed
to act on (like a decrease in rent) and later the household reports another
change that the worker does have to act on (like a decrease in income)?
Does the state agency use the "old shelter amount" when it processes
the income change, or the "new shelter amount"?
If the "new shelter", this would put the state agency in the
position of having to track and keep changes that it does not have to
process. If the "old shelter", this would mean an error if the
worker included the "new shelter amount".
Answer C-3
It is up to the state agency to decide.
When a household reports a change, the state is required to determine
whether the change is one on which it must act. If the state agency does
not need to act on the change, the state agency needs to annotate the
case file accordingly. It is up to the state agency to decide whether
to track reported changes and to act on them if another report change
occurs that does require a recalculation of benefits.
Question C-4
Is the state agency required to act on a change in household composition
that would increase the household’s allotment?
Answer C-4
Yes.
Question C-5
Suppose a household member leaves a six-month reporting requirement household
and moves into another household (or becomes a separate household). Or
suppose a household reports a new member who is already participating
in another household. How should the state agency handle the change?
Answer C-5
The state agency must take its normal appropriate action:
-
To remove the person from the losing household
-
To add the person to the gaining household, and
-
To do so without causing duplicate participation.
This is because Section 11(e)(20) of the Food Stamp Act prohibits duplicate
participation and 273.12(a)(1)(vii) cannot overturn the Food Stamp Act.
Please also see question C-6
Question C-6
To avoid duplicate participation, as described in Question C-5, what
kind of notice must the state agency give to the households?
Answer C-6
273.12(c)(2)(i) and 273.13(a) describe the notices that are appropriate
when a household’s benefits decrease. Depending upon the circumstances
of the report, the state agency may be required to send an advance Notice
of Adverse Action or send one that would arrive when the household receives
its reduced allotment.
Question C-7
When may the state agency close a six-month reporting case?
Answer C-7
Examples of when the state agency may close a six-month reporting case
are:
-
The household becomes ineligible based on a reported change in income
that exceeds 130%
-
The household fails to submit a required six-month report
-
The household asks the state agency to close the case
-
The household no longer resides in the state, or
-
All household members have died.
Section D Verified Upon Receipt
Question D-1
What does verified upon receipt mean?
Answer D-1
Verified upon receipt means that information:
-
BENDEX, from the Social Security Administration
-
SDX, from the Social Security Administration
-
SAVE, from the Immigration and Naturalization Service
-
Unemployment compensation, from the state UC agency
-
Worker’s compensation, from the state WC agency
In addition, the state agency may determine what other sources provide
information that is considered verified upon receipt. One of these sources
could be the household itself, when it reports changes in household composition
and deductible expenses.
Question D-2
What are some other examples of information that is verified upon
receipt because it is more or less internal to the state agency?
Answer D-2
Some other examples include:
-
Information from a state work agency that a client failed to comply
with work requirements
-
The state agency’s determination of an Intentional Program Violation
(IPV)
-
Actions, taken by other programs within the state agency, that affect
food stamp expenses
Question D-3
What are some examples of information that is not verified upon receipt?
Answer D-3
Some examples of information that is not verified upon receipt
are:
-
Quarterly wage match data
-
New hire matches
-
Unearned income matches from the Social Security Administration
-
Wage data from the Social Security Administration
Question D-4
Does verified upon receipt have anything to do with verification’s
being required by federal regulation?
Answer D-4
No. Just because verification is not required does not mean that information
is verified upon receipt.
Question D-5
Can the state agency hold the results of an IEVS match until the interim
report or recertification?
Answer D-5
Yes, if the information is not considered verified upon receipt.
No, if the information is considered verified upon receipt. This includes
information from SDX and BENDEX.
Section E The Interim (6-Month) Report
Question E-1
What must the client report?
Answer E-1
The items for change reporting, that appear at 273.12(a)(1)(i) through
(vi). These are:
-
Changes in the sources of income or in the amount of gross monthly
income of more than $25, except changes in the public assistance grant,
or the general assistance grant in project areas where GA and food stamp
cases are jointly processed in accordance with 273.2(j)(2)
-
All changes in household composition, such as the addition or loss
of a household member
-
Changes in residence and the resulting change in shelter costs
-
The acquisition of a licensed vehicle not fully excludable under 7
CFR 273.8(e)
-
When cash on hand, stocks, bonds, and money in a bank account or savings
institution reach or exceed a total of $2000
-
Changes in the legal obligation to pay child support.
Question E-2
When the state agency receives the six-month report, must it act on all
reported changes?
Answer E-2
Yes. The final rule requires the state agency to act on the six-month
report according to the normal standards at 273.12(c). Please see the
final rule’s provision at 273.12(a)(1)(vii)(B).
Question E-3
The final rule requires the household to submit the interim report "at
6 months" (please see 273.12(a)(1)(vii)(B)). What does that mean?
At the beginning of the sixth month? At the end of the sixth month? Shortly
after the end of the sixth month?
Answer E-3
It is up to the state agency to set the due date for the interim report.
Question E-4
Suppose the household does not submit the required interim report on
time. What does the state agency do?
Answer E-4
It is up to the state agency to decide how to handle this situation.
One method would be to use the procedure for missing or incomplete monthly
reports, which appears at 7 CFR 273.21(j)(1)(iii), (iv), and (v) and (j)(3)(i)
and (ii). This procedure would have the state agency:
-
Determine what must be verified or what is missing
-
Contact the household directly to obtain to obtain necessary information
-
Notify the household in writing that it must submit a complete interim
report.
Section F - Quality Control
Question F-1
If the EW decreased the allotment and should not have done it, would
there be an error?
Answer F-1
If the EW decreased the allotment incorrectly there will be a variance
considered in the error determination.
Question F-2
How should State agencies review for the 130% of gross income standard
when certification is for six months or longer?
Answer F-2
The reviewer will look to see if the sample month income exceeded 130%
level of the poverty income guideline for the household size. If it does
not, the reviewer will make no further investigation into this requirement.
If it does exceed there will be further checks to determine whether the
variance should be considered in the error determination.
Question F-3
Regarding the prohibition against decreasing an allotment, what if a
household member leaves a household and starts a new household? What should
quality control do?
Answer F-3
Quality control will follow the direction of certification policy on
the handling of this situation and the reviewer will determine if there
are any variances from the certification requirements.
Question F-4
What will be the hold harmless period for this option?
Answer F-4
There is no variance exclusion period for optional provisions.
Question F-5
In doing the QC review will the 130% be looked for in the review month
versus any month between certification and the sample month?
Answer F-5
The procedures under development have the QC reviewer look at the sample
month for the 130% change in income. If there is not a change over 130%,
the reviewer will stop examining this reporting requirement. If during
the sample month, the 130% is exceeded the reviewer will make further
examination to determine if there is a variance to be considered in the
error determination.
Question F-6
With the three-month reporting waiver requirement, if less than a three-month
certification period has been assigned, the review is done using standard
change reporting procedures in the QC review. With the six-month reporting
option what do you follow if less than a six-month certification period
has been assigned?
Answer F-6
If the household is given a certification period of less than six months,
QC would review the household using established review procedures for
standard change reporting households within the state. It is a requirement
of this reporting option that the household be certified for at least
six months. If the State agency fails to do so it is not in compliance
with the provisions of the six-month reporting option, and QC (as in the
case of the three-month reporting option) reverts to the review procedures
for households not subject to the six-month reporting option.
Last modified:
11/21/2008
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