SR 98-03 Dated 05/98

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases new policy for all case programs, clarifies existing policy and makes technical corrections to the Family Assistance Manual (FAM), the Food Stamp Manual (FSM), and the Adult Assistance Manual.

New Policy

 Noncompliance with a food stamp eligibility requirement by a nonhousehold member cannot not cause denial or termination of benefits unless the noncompliant individual is an ineligible student, an individual disqualified for intentional program violation or failure to meet food stamp work requirements, or an excluded individual;

 Food stamp households may average shelter costs in a similar manner to averaging medical expenses.

 The policy on categorically eligible food stamp households has been revised to specify that a household cannot be considered categorically eligible if a member’s SSI benefits have been suspended due to noncompliance with required drug and alcohol treatment.

 Organizations which act as representative payees for SSI recipients in alcohol and/or drug abuse treatment may collect up to 10% of the monthly SSI benefit amount or $50 for an individual in alcohol or drug abuse treatment, whichever is less. The amount withheld as a fee is excluded income in the Food Stamp Program.

 Siblings of any age who live together and purchase and prepare food separately and who are not under the control of an adult household member are entitled to claim separate household status.

New policy also includes treatment of the following:

 AmeriCorps Income [all programs];

 Susan Walker V. Bayer Corporation settlement payments [all programs];

 Spina bifida payments made on the behalf of children of Vietnam Veterans [all programs];

 Payments to Navajo/Hopi Indians [all programs],

 Payments received under the Youthbuild Program [FS]; and

 Contract income received by food stamp household members [FS].

Clarification of Existing Policy

Several clarifications have been added to existing food stamp policy:

 The definition of physically disabled in FSM Section 229.03 has been modified to include receipt of VA non service disability payments rated at 100% and to clarify the receipt of which disability benefits qualify an individual for target status;

 The Department must act on all changes (other than medical expenses) regardless of whether reported or discovered;

 No advance notice is required prior to terminating food stamps benefits if mail has been returned from the US Postal Service with no known forwarding address;

 The resources of individuals receiving TANF, SSI or State Supplement payments are excluded in the Food Stamp Program when determining total household resources. This policy was included in the Public Assistance Manual (PAM), but when incorporated into the former FAM was changed to refer only to AFDC/TANF payments. Food stamp regulations specify "public assistance" payments, which includes SSI, OAA, APTD, and ANB as well as TANF;

 Food stamp households can only receive a combined allotment if the initial month is prorated due to an initial application or at reapplication due to a break in participation;

 FAM and FSM Part 511, Common Types of Income (Income of Disqualified/Excluded Members), and Section 611.05, Income of Disqualified and Excluded Members, have been rewritten to address income treatment of disqualified or excluded members in a consistent and understandable manner. Text was also added to FAM Part 511 and Section 611.05 to clarify that individuals who fail to comply with child support or NHEP work program requirements, including voluntary quit, are not disqualified individuals for purposes of income treatment.

 Vehicles jointly owned with a non-household member in the Food Stamp Program are considered inaccessible and may be excluded if the nonmember owner does not live in the household, the household member does not have use of the vehicle, and the nonmember will not agree to sell the vehicle.

 The definition of "physically disabled" for purposes of determining exclusion of the value of vehicles in the Food Stamp Program has been rewritten for clarity and to match the definition with federal Food Stamp Program regulations;

 FAM 603 has been revised to add the $90 EED for Poverty Level Medicaid cases as an Exception in the table summarizing the various deductions used to determine income eligibility in TANF financial assistance or Medicaid programs. FAM 603.03, Employment Expense Deduction (EED), has been rewritten for clarity and to add mention of the $90 EED for Poverty Level Medicaid cases.

 A special Shelter Allowance of $392, including all utilities, for developmentally disabled individuals in community residences has been added to FSM Part 603;

 Part 809 of the FSM has been revised to indicate that the training wage previously applicable to students, apprentices and other individuals has been eliminated and is no longer in use.

POLICY

Revised Food Stamp Manual Topics

Revised Family Assistance Manual Topics

Revised Adult Assistance Manual Topics

Note: Due to the wide range of policy changes and clarifications released in this SR, Procedures, where applicable, have been included with the individual policies rather than grouped under a single heading.

New Policy

Averaging of Shelter Costs in the Food Stamp Program

Household are allowed to average shelter costs if claiming actual expenses. Shelter costs may be averaged:

 Over the period the bill is intended to cover;

 Over the interval between scheduled payments if the household is billed less often than monthly; or

 Over the certification period if the shelter costs are reported at certification.

Categorical Eligibility Criteria for Household Members Suspended from SSI

A household containing a member who has been suspended from receiving SSI due to noncompliance with drug and alcohol abuse treatment requirements is not entitled to categorical eligibility until the suspension ends and the member begins receiving SSI again. Individuals whose SSI have been suspended for other reasons, such as recoupments due to overpayments, continue to be categorically eligible.

Note: Food stamps may not increase if an assistance payment (SSI, TANF, or State Supplement) is reduced, suspended, or terminated because of a failure to comply with a programmatic requirement of that assistance program.

Procedures

1. Upon verification that an individual’s SSI payments have been suspended for noncompliance with drug or alcohol treatment requirements, remove SSI income from the individual’s I-line (codes 141 or 142).

2. Enter the amount of the suspended SSI as Code 307, Other Income (FS).

3. If the individual is part of a TANF household but was open in a separate MA case due to SSI receipt, add the individual, along with any other income or resources, to the TANF and food stamp cases.

4. Verify that all countable resources of FS household members are being counted toward FS eligibility.

5. Continue to treat the individual as a nonrecipient of SSI until verification is obtained indicating that the individual has complied and the suspension has been lifted.

Organizations Acting as Representative Payees for SSI Recipients in Alcohol/Drug Abuse Treatment

Organizations which act as representative payees for SSI recipients in alcohol and/or drug abuse treatment may collect up to 10% of the monthly SSI benefit amount or $50, whichever is less, for an individual in alcohol or drug abuse treatment. The amount withheld as a fee is excluded income in the Food Stamp Program and is entered as deduction code 571. Previous food stamp policy did not address fees for individuals in alcohol or drug abuse treatment programs.

Siblings Who Live Together

Siblings of any age who live together, purchase and prepare food separately, and who are not under the control of an adult household member are entitled to claim separate household status. Food Stamp Manual Section 211.01, Who Must be Members, and Section 211.07, Food Stamp Household Composition Chart, have been revised accordingly.

Treatment of AmeriCorps Income

AmeriCorps income consists of monthly living allowances, educational awards, child care allowances and health care benefits made under the National and Community Service Trust Act of 1993, P.L. 103-82 to AmeriCorps participants. The AmeriCorps Network consists of 3 separate programs based on the participant’s age and type of service performed: AmeriCorps USA (age 17 and older); AmeriCorps VISTA (Volunteers in Service to America, age 18 and older); and AmeriCorps NCCC (National Civilian Community Core, age 16 to 24). Treatment differs based on the category of assistance.

 Child Care payments, educational awards, health care benefits under AmeriCorps are excluded by federal mandate for all categories of financial and medical assistance and food stamps.

 The monthly living allowance under AmeriCorps is counted as earned income for TANF and the adult categories of financial and medical assistance, and excluded for food stamps.

 For payments under AmeriCorps VISTA, see Volunteers in Service to America (VISTA) in FAM Part 511.

?u—1. For all categories of financial and medical assistance, manually compute the countable earned income amount of the monthly living allowance paid to individuals under AmeriCorps USA or AmeriCorps NCCC, allowing all appropriate employment deductions and disregards, and enter as code 304, Other Income.

2. Treat monthly allowances paid under AmeriCorps VISTA according to current VISTA income policy.

3. Document the source and amount in the case record.

Susan Walker V. Bayer Corporation Settlement Payments

Certain hemophiliacs who contracted the Human Immunodeficiency Virus (HIV) from contaminated blood products have been awarded settlements in the lawsuit of Susan Walker v. Bayer Corporation et al, 96-C 5024 (N.D. III). This settlement provides a one time lump sum payment which is deposited in a bank account on behalf of the individual. The individual has full access to the payment and may withdraw all or any portion of it as needed. Resources that are a result of payments from the settlement are treated differently according to case program.

 For TANF financial assistance cases the settlement is treated according to lump sum income policy.

 For the adult categories of financial assistance and for food stamps, the settlement is treated as a nonrecurring lump sum payment and a countable resource in the month received.

 For all categories of medical assistance, the settlement is an excluded resource.

1. TANF financial assistance: Enter the full amount of the settlement as lump sum income code 156, but do not enter any of the settlement amount as resource code 740.

2. OAA, APTD, or ANB financial assistance: When the settlement is discovered, do not enter the amount of the settlement on EMS. Deny or close AP for excess resources and document the action in the case record.

3. Food Stamps: Enter the full amount of the settlement as resource code 742.

Spina Bifida Payments Made on Behalf of Children of Vietnam Veterans

VA benefits payable to children born with spina bifida (including adult children) of Vietnam veterans are excluded as income and resources for all categories of financial and medical assistance and food stamps. These payments are payable under Sections 421 and 422(c) of Public Law 104-204. The amount of monthly payments are incremental and differ based on the individual’s degree of impairment. The monthly amounts are subject to an annual cost of living increase each January 1, and are as follows:

 $205 (lesser degree of impairment);

 $715 (greater degree of impairment); and

 $1,226 (greatest degree of impairment).

The VA does not rate these individuals by percentage of impairment in the same manner it rates veterans, so an individual’s receipt of VA spina bifida payments, even at the greatest degree of impairment, does not automatically entitle an individual to target population status. To qualify for target population status, the individual must meet the definition of disabled in FAM Section 229.03, Definition of Disability. Part 511 of the FAM, FSM, and AAM has been revised accordingly.

Payments to Navajo/Hopi Indians

Financial assistance payments to members of the Navajo and Hopi Tribes (P.L. 93-531) are excluded as income for all categories of financial and medical assistance and food stamps. Part 511 of the FAM, FSM, and AAM has been revised accordingly.

Payments Received under the Youthbuild Program

Payments received under the Youthbuild Program (P.L. 102-550, Housing and Community Development Act of 1992) are excluded as income in the Food Stamp Program. FSM 513, Less Common Types of Income, has been revised to reflect this change.

Contract Income Received by Food Stamp Household Members

Generally speaking, contract income is a yearly contracted wage which covers a specific period of work (12 months or less) and which is paid during that time. An individual may receive contract income for only 9, 10, or 11 months in a 12-month period. Nevertheless, contract income is considered available to the individual for the whole 12 months covered by the contract. However, there is an exception to this policy in the Food Stamp Program. Contract income which does not represent the household’s annual income and is not paid on an hourly or piece work basis is averaged over the period it is intended to cover. Part 511 of the Food Stamp Manual now reflects this change.

EXAMPLE

Mr. Greene has a two month contract for November and December working in a nursery to prepare trees for the holiday season. He is paid $900 for this contract regardless of the number of hours he works or the number of trees he prepares for sale. His monthly wage is $450 for November and $450 for December ($900 divided by 2).

Procedures:

1. Manually calculate the monthly wage figure based on the amount and length of the contract (see EXAMPLE above) and enter as (or add to any other) code 101, Gross Wages.

2. Care must be taken to remove the income at the end of the contract period. Use a Change Screen or enter Review Reason 012, Income, in field E-15, and a Review Date corresponding to the end of the contract period for which the wages are applied.

Clarification of Existing Policy

Definition of Disabled Individual

FSM Section 229.03, Definition of Disabled, has been revised to indicate that recipients of APTD or ANB financial and medical assistance are considered disabled. The previous definition was less specific and only mentioned the category of assistance, but did not mention the type of assistance (financial or medical). An individual receiving a VA service or non service connected disability payment at 100% is considered disabled for purposes of the Food Stamp Program. The revised section now references VA non service connected disabilities at 100%, whereas, the previous section did not.

Treatment of Vehicles as a Resource in the Food Stamp Program

Three clarifications to vehicle resource policy in FSM 409 have been made:

 The equity value of a vehicle that a household member owns jointly with a nonhousehold member is not counted if all the following conditions are met:

 The nonmember does not live in the household;

 The household member does not have possession or use of the vehicle; and

 The household member cannot sell the vehicle due to the co-owner’s refusal to provide the required signature necessary for sale.

A vehicle meeting these conditions is considered an inaccessible resource for food stamp purposes.

 The language under Treatment of vehicles as resources for TANF-related food stamp cases has been rewritten to clearly reflect that the exclusion of the value of 1 vehicle per adult household member applies only to former TANF assistance groups now receiving Extended Medical Assistance (EMA). Previous language was ambiguous and could have been interpreted to allow vehicle exclusions for individuals not in a TANF financial assistance case but only in the related food stamp case.

 The definition of "physically disabled" in the policy excluding from resource consideration the value of vehicles used to transport physically disabled individuals has been expanded and more clearly defines who may be considered "physically disabled" for purposes of this exclusion. The text now states that disability may be based on receipt of state, federal, or local government disability payments, and includes a cross-reference to revised FSM Section 229.03 (see above). Among other implications, this policy would, under certain circumstances, allow an individual whose disability was not technically "physical," e.g. psychiatric, to qualify for a vehicle exclusion because the individual receives federal disability payments, such as SSI.

FSM Part 147, Actions on Changes, has been modified to provide more specific details about acting on reported and unreported changes. DFA is required to act on all changes (other than changes in medical expenses) including changes reported outside the household or discovered through other means. At minimum, DFA must:

 Document in the case record, changes that do not increase benefits or affect benefit level;

 Clarify any discrepancies through written notification or telephone contact; and

 Allow the household to have a face-to-face interview to resolve any discrepancies, but do not require an in-person interview.

Note: A face-to-face interview is required when fraud or intentional program violation is suspected, such as when the household fails to report earned or unearned income.

Exception to Advance Notice Period for Households with an Unknown Address

A clarification has been added to FSM Section 141.03, No ANP Required, to indicate that no advance notice period is required when the household’s location is unknown, and Division mail is returned by the Postal Service indicating no forwarding address is on file.

Combined Allotments

FSM Section 125.11, Combined Allotments, has been modified to indicate that one of the conditions required for issuance of a combined allotment is that the initial month must be prorated due to an initial application or a reapplication after a break in participation. Due to an oversight this condition was omitted from Section 125.11.

Treatment of Resources for Household Members Eligible for SSI, TANF, OAA, ANB or APTD Financial Assistance

The Resource Limit Chart in FSM Part 403, Resource Limits, and FSM 409, Assistance Payments, have been revised to indicate that, in addition to categorically-eligible households, individual household members eligible for and receiving SSI, TANF, OAA, ANB or APTD financial assistance must have their resources excluded when determining household food stamp eligibility. Previously, the chart only referenced Categorically Eligible Households, and FSM 409, Assistance Payments, only referenced TANF financial assistance. Federal regulations require the exclusion of resources of any member of a food stamp household who receives a federal or state public assistance payment, even if the entire household is not categorically eligible.

Special Shelter Allowance for Developmentally Disabled Individuals in Community Residences

Table I, Food Stamp Deductions, of FSM Part 601, Income Limits, Payment Standards and Allotments, has been revised to show the special shelter allowance of $392 for developmentally disabled individuals in community residences. This shelter allowance includes heat and utilities, so the household is not able to claim any separate heat or utilities costs or standards. The $392 figure has been in effect for several years, but was not previously noted in Table I.

Clarifying Language Added to Part 603, Deductions and Disregards

Clarifying language has been added to the chart, Deductions and Disregards by Program, in Part 603, Deductions and Disregards, to include references to the $90 employment expense disregard (EED) applicable to each employed individual in a poverty level case. This statement was also added to Section 603.03, Employment Expense Disregard (EED).

Clarifying Language Added to FAM and FSM 511 and 611.05

FAM and FSM Parts 511, Common Types of Income (Disqualified/Excluded Member’s Income), and Section 611.05, Income of Disqualified and Excluded Individuals, have been revised to address income treatment of a disqualified/excluded member in a consistent and understandable manner. These revisions indicate that individuals disqualified for voluntary quit are treated in the same manner as other individuals who are disqualified for failure to meet work registration requirements. In addition, these sections now consistently state that disqualified individuals are entitled to the earned income disregard and all other appropriate disregards when determining the amount of income that is considered available to the remaining household members.

Technical Corrections

 FAM Part 511, Educational Income, was revised to remove text obsoleted by SR 97-20 and correctly eliminated from the former hard copy version of FAM, but inadvertently returned in the On-Line Manual version released by SR 98-10, dated 4/1/98.

 Typographical errors and obsolete references to programs or organizational units were corrected when encountered during the course of manual revisions.

IMPLEMENTATION

Policy changes and clarifications are to be applied to all eligibility determinations made on or after the effective date of this SR.

CLIENT NOTIFICATION

Clients will be notified on a case by case, as needed basis.

TRAINING

No training is planned.

DISTRIBUTION

This narrative SR will be distributed electronically according to the SR electronic distribution list for the for the AAM, FAM, and FSM. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and on the Internet at http://www.state.nh.us/dhhs, as of May 1, 1998. Printed pages with posting instructions will be distributed under separate cover to all hard copy holders of the AAM, FAM, and FSM.

DISPOSITION

This SR may be deleted or destroyed after its contents have been noted and, if appropriate, its posting instructions carried out.

DFA/SJC:s