COMMENT DUE DATE:  

February 14, 2020

DATE: 

January 15, 2020

Laura Brown, Adult and Family Services 405-521-4396

Dena Thayer, Programs Administrator, Legal Services - Policy 405-521-4326

Nancy Kelly, Policy Specialist, Legal Services - Policy 405-522-6703

RE:  

APA WF 20-50

It is very important that you provide your comments regarding the DRAFT COPY of policy by the comment due date. Comments are directed to *STO.LegalServices.Policy@okdhs.org. 

The proposed policy is  Permanent .  This proposal is subject to Administrative Procedures Act

It is important that you provide your comments regarding the draft copy of policy by the comment due date.Comments are directed to *STO.LegalServices.Policy@okdhs.org.The proposed amendments are permanent.

A public hearing is scheduled for 10:00 a.m. on February 24, 2020, at DHS, Sequoyah Memorial Office Building, 2400 N. Lincoln Boulevard, Oklahoma City, Oklahoma 73105, Room C-48.Anyone who wants to speak must sign in at the door by 10:05 a.m.

SUBJECT:Subchapter 5. Non-Financial Eligibility Criteria

Part 3. Special Households

340:50-5-29 [AMENDED]

Part 5. Students, Strikers, Resident Farm Laborers, Migrant Households, Sponsored Aliens, and School Employees

340:50-5-45 [AMENDED]

Part 10. Able-bodied Adults without Dependents

340:50-5-101 [AMENDED]

Subchapter 7. Financial Eligibility Criteria

Part 1. Resources

340:50-7-1 [AMENDED]

Part 3. Income

340:50-7-29 [AMENDED]

340:50-7-31 [AMENDED]

Subchapter 9. Eligibility and Benefit Determination Procedures

340:50-9-5 [AMENDED]

(Reference WF 19-03)

SUMMARY:The proposed amendment to update shelter deduction information to allow for a new standard homeless shelter deduction or an excess shelter deduction for homeless households with shelter expenses is submitted as emergency rules to comply with a United States Department of Agriculture (USDA) informational memo issued in February, 2019, regarding changes to Section 4004 of the Agriculture Improvement Act of 2018, Section 2014 of Title 7 of the United States Code (7 U.S.C. § 2014), to make the current option to provide a shelter deduction to homeless households that are not receiving free shelter throughout the month and do not opt to claim an excess shelter deduction mandatory for all states.

The following proposed amendments are submitted as emergency rules to comply with implementation of federal regulations issued in April, 2019, and a USDA Informational Memo Regarding Implementation of Section 4009 of the Agricultural Act of 2014 issued in June, 2019 to:

(1) update employment and training programs in which students are exempt from student eligibility restrictions; and

(2) define and count substantial lottery or gambling winnings as countable resources and explain how a household may regain resource eligibility following benefit closure and add a household requirement to report substantial lottery or gambling winnings within 10-calendar days of receipt and that such a verified change may close food benefits between renewal periods.

The proposed amendment to reduce the percentage of able-bodied adults without dependents that may be exempted from work requirements is submitted as an emergency rule to comply with a USDA informational memo regarding Section 4005 of the Agriculture Improvement Act of 2018, issued in March, 2019.

PERMANENT APPROVAL:Permanent rulemaking is requested.

LEGAL AUTHORITY:Director of Human Services; Section 162 of Title 56 of the Oklahoma Statutes; Sections 272.17, 273.5, 273.9, 273.11 and 273.12 of Title 7 of the Code of Federal Regulations (C.F.R); 7 U.S.C. § 2014, Informational Memos Regarding Section 4009 of the Agricultural Act of 2014 and Sections 4004 and 4005 of the Agriculture Improvement Act of 2018.

Rule Impact Statement

To:Programs administrator

Legal Services - Policy

From: Patrick Klein,Director

Adult and Family Services

Date:December 13, 2019

Re: CHAPTER 50. SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

Subchapter 5. Non-Financial Eligibility Criteria

Part 3. Special Households

340:50-5-29 [AMENDED]

Part 5. Students, Strikers, Resident Farm Laborers, Migrant Households,Sponsored Aliens, and School Employees

340:50-5-45 [AMENDED]

               340:50-5-101 [AMENDED]

Subchapter 7. Financial Eligibility Criteria

Part 1. Resources

340:50-7-1 [AMENDED]

Part 3. Income

340:50-7-29 [AMENDED]

340:50-7-31 [AMENDED]

Subchapter 9. Eligibility and Benefit Determination Procedures

340:50-9-5 [AMENDED]

(Reference WF 19-03)

Contact: Laura Brown 405-521-4396

A. Brief description of the purpose of the proposed rule:

Purpose.

The proposed revision to Chapter 50, Subchapter 5 amends the rules to:(1) update shelter deduction information to allow for a new standard homeless shelter deduction or an excess shelter deduction when a homeless household claims shelter expenses; (2) add examples of allowable homeless shelter costs; (3) add clarifying language regarding the definition of students and student exemptions; (4) restructure student eligibility information to better match federal regulations regarding persons classified as students and student exemptions; (5) update employment and training programs in which students are exempt from student eligibility restrictions to align with recent federal regulation changes; and (6) reduce the percentage of able-bodied adults without dependents (ABAWD) that may be exempted from work requirements based on federal guidance.

The proposed revisions to Chapter 50, Subchapter 7 amends the rules to: (1) define and count substantial lottery or gambling winnings as countable resources and explain how a household may regain eligibility following benefit closure; (2) update shelter deduction information for homeless households to allow for a new standard homeless shelter deduction or an excess shelter deduction; (3) explain how eligibility for an excess shelter deduction is determined; (4) add language regarding how the homeless shelter deduction or excess shelter deduction is applied when there are ineligible household members; and (5) exclude prescribed medical marijuana as an allowable medical deduction.

The proposed revisions to Chapter 50, Subchapter 9 amends the rule to add a household requirement to report substantial lottery or gambling winnings within 10-calendar days of receipt and that such a verified change may close food benefits between renewal periods.

Strategic Plan Impact. The proposed rules achieve Oklahoma Department of Human Services (DHS)goals by continuously improving systems and processes and improving communication with DHS clients and staff.

Substantive changes.

Subchapter 5. Non-Financial Eligibility Criteria

Part 3. Special Households

Oklahoma Administrative Code (OAC) 340:50-5-29 is amended to: (1) update shelter deduction information to allow for a new standard homeless shelter deduction or an excess shelter deduction when a homeless household claims shelter expenses; and (2) add examples of allowable homeless shelter costs.

Part 5. Students, Strikers, Resident Farm Laborers, Migrant Households, Sponsored Aliens, and School Employees

OAC 340:50-5-45 is amended to: (1) add clarifying language regarding the definition of students and student exemptions; (2) restructure student eligibility information to better match federal regulations regarding persons classified as students and student exemptions; and (3) update employment and training programs in which students are exempt from student eligibility restrictions to comply with recent federal regulation changes.

OAC 340:50-5-101 is amended to reduce the percentage of able-bodied adults without dependents that may be exempted from work requirements based on federal guidance.

Subchapter 7. Financial Eligibility Criteria

Part 1. Resources considered

OAC 340:50-7-1 is amended to define and count substantial lottery or gambling winnings as countable resources and explain how a household may regain resource eligibility following benefit closure.

Part 3. Income

OAC 340:50-7-29 is amended to add language regarding how the homeless shelter deduction or the excess shelter deduction is applied when there is an ineligible household member.

OAC 340:50-7-31 is amended to: (1) exclude prescribed medical marijuana as an allowable medical expense; (2) update shelter deduction information for homeless households to allow for a new standard homeless shelter deduction or an excess shelter deduction; (3) explain how eligibility for an excess shelter deduction is determined; and (4) add language regarding how the homeless shelter deduction or excess shelter deduction is applied when there are ineligible household members.

Subchapter 9. Eligibility and Benefit Determination Procedures.

OAC 340:50-9-5 is amended to add a household requirement to report substantial lottery or gambling winnings within 10-calendar days of receipt and that such a verified change may close food benefits between renewal periods.

Reasons.

The proposed amendment to update shelter deduction information to allow for a new standard homeless shelter deduction or an excess shelter deduction for homeless households with shelter expenses is submitted as emergency rules to comply with a United States Department of Agriculture (USDA) informational memo issued in February, 2019, regarding changes to Section 4004 of the Agriculture Improvement Act of 2018, Section 2014 of Title 7 of the United States Code (7 U.S.C. § 2014), to make the current option to provide a shelter deduction to homeless households that are not receiving free shelter throughout the month and do not opt to claim an excess shelter deduction mandatory for all states.

The following proposed amendments are submitted as emergency rules to comply with implementation of federal regulations issued in April, 2019, and a USDA Informational Memo Regarding Implementation of Section 4009 of the Agricultural Act of 2014 issued in June, 2019 to:

        (1) update employment and training programs in which students are exempt from student eligibility restrictions; and

• (2) define and count substantial lottery or gambling winnings as countable resources and explain how a household may regain resource eligibility following benefit closure and add a household requirement to report substantial lottery or gambling winnings within 10-calendar days of receipt and that such a verified change may close food benefits between renewal periods.
  The proposed amendment to reduce the percentage of able-bodied adults without dependents that may be exempted from work requirements is submitted as an emergency rule to comply with a USDA informational memo regarding Section 4005 of the Agriculture Improvement Act of 2018, issued in March, 2019.
  
  Repercussions.
  
  If the proposed revisions are not implemented, DHS will be out of compliance with recent federal regulation changes which may lead to increased federal errors.
                   
  Legal authority. Director of Human Services; Section 162 of Title 56 of the Oklahoma Statutes; Sections 272.17, 273.5, 273.9, 273.11 and 273.12 of Title 7 of the Code of Federal Regulations (C.F.R); 7 U.S.C. § 2014, Informational Memos Regarding Section 4009 of the Agricultural Act of 2014 and Sections 4004 and 4005 of the Agriculture Improvement Act of 2018.
  
  Permanent rulemaking approval is requested. The rules were approved by the Governor as emergency rules on October 2, 2019 to comply with recently issued federal regulations changes.
  
  B. A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities: The classes of persons most likely to be affected by the proposed amendments are households applying for or receiving Supplemental Nutrition Assistance Program (SNAP) food benefits and Adult and Family Services (AFS) staff.The affected classes of persons will bear no costs associated with implementation of the rules.
  
  C. A description of the classes of persons who will benefit from the proposed rule:The classes of persons who will benefit are households applying for or receiving SNAP benefits and AFS staff.
  
  D. A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each fee change:The amendments do not have an economic impact on the affected entities.There are no fee changes associated with the revised rules.
  
  E. The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency:The probable cost to DHS includes the cost of printing and distributing the amendments, which is estimated to be less than $20.The amendments will keep DHS in compliance with federal regulations, may result in enhanced delivery of services to homeless households and students applying for or receiving SNAP benefits, and may result in benefit closure for households with substantial lottery or gambling winnings.
  
  F. A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule:The proposed amendments do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivisions be required in implementation or enforcement of the rules.
  
  G. A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act: There are no anticipated adverse effects on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act.
  
  H. An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rule: There are no less costly or non-regulatory methods or less intrusive methods for achieving the purpose of the proposed amendments.
  
  I. A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: Implementation of the proposed amendments may result in increased benefits to homeless households and students and will keep DHS in compliance with federal regulations.
  
  J. A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented:If the proposed amendments are not implemented, there may be a detrimental effect on the health of households applying for or receiving SNAP benefits because rules will not be in compliance with certain federal regulationsand staff may not process benefits as quickly and accurately as possible.Failure to issue correct benefit amounts may lead to under issuance of client benefits or overpayments the client must repay.
  
  K. The date the rule impact statement was prepared and, if modified, the date modified:The rule impact statement was prepared on July 22, 2019; modified August 27, 2019; modified December 13, 2019.

SUBCHAPTER 5. NON-FINANCIAL ELIGIBILITY CRITERIA

PART 3. SPECIAL HOUSEHOLDS

340:50-5-29. Homeless households

Revised 10-2-19

(a) A household is not required to have a fixed residence in order to receive food benefits.A homeless household may include one or more homeless persons.

(b) Per 271.2 of Title 7 of the Code of Federal Regulations (7 C.F.R. § 271.2), homeless person means a person who lacks a fixed and regular nighttime residence or a person whose primary nighttime residence is a:

(1) supervised shelter designed to provide temporary accommodations;

(2) half-way house or similar institution providing temporary residence for persons intended to be institutionalized;

(3) temporary accommodation in the residence of another person of not more than 90-calendar days from the application date.The worker applies the 90-calendar day time frame to each subsequent temporary accommodation in a different household and location; or

(4) place not designed for, or ordinarily used, as a regular sleeping accommodation for human beings, such as a hallway, bus station, lobby, car, or similar places.

(c) Per 7 C.F.R. § 273.2(f)(4)(v) and Oklahoma Administrative Code 340:50-7-31, when a homeless household incurs or expects to incur a shelter cost during the month, the household is eligible for a the standard homeless shelter deduction, per Oklahoma Department of Human Services Appendix C-3, Maximum Food Benefit Allotments and Standards for Income and Deductions, or theexcess shelter deduction, whichever results in the most food benefits for the household. ¢ 1 When a homeless household lives in a vehicle and makes Homeless shelter costs may include a monthly payments on the vehicle, the monthly payment is an allowable shelter cost payment when the household lives in the vehicle, payments to friends or neighbors for sleeping accommodations, camping fees, or hotel or motel charges.¢ 2

INSTRUCTIONS TO STAFF 340:50-5-29

Issued 10-2-19

1.Refer to Oklahoma Administrative Code 340:50-7-31(a)(6) for information regarding how the excess shelter deduction is determined.

2.The worker enters one of the four homeless shelter codes in the Case Information tab 'shelter type' field, Information Management System (IMS) block A23 of the Family Assistance/Client Services (FACS) Interview Notebook; A, B, C, or D.The worker also enters 'yes' or 'no' in the 'homeless shelter costs' field of the FACS Shelter Tab, IMS block C61 to indicate whether the household has shelter costs associated with being homeless.When the answer is:

(1) 'no,' the worker enters zero in 'shelter cost' field, IMS block 54 and 'N' in the 'utility indicator' field, IMS block 59 of the FACS Shelter Tab; or

(2) 'yes,' the worker enters the claimed shelter expense in the 'shelter cost' field, IMS block 54 and when the household claims utility costs, the applicable utility indicator in the 'utility indicator' field, IMS block 59 of the FACS Shelter Tab.The system calculates the household's income and allows the shelter deduction that results in the most benefits for the household.

PART 5. STUDENTS, STRIKERS, RESIDENT FARM LABORERS, MIGRANT HOUSEHOLDS, SPONSORED ALIENS, AND SCHOOL EMPLOYEES

340:50-5-45. Students

Revised 10-2-19

(a) Supplemental Nutrition Assistance Program (SNAP) eligibility.Persons classified as students per (b) of this Section are not eligible to participate in the Supplemental Nutrition Assistance Program (SNAP) unless they qualify for an exemption per (c) of this Section.Students that do not meet the criteria per (b) of this Section may participate in SNAP when all other eligibility criteria are met.

(a)(b) Student classification.Persons Per Section 273.5 of Title 7 of the Code of Federal Regulations (7 C.F.R. § 273.5), persons are classified as students when they are enrolled at least half-time in an institution of higher education.¢ 1

(1) An institution of higher education includes a:

(A) business, technical, trade, or vocation vocational school that normally requires a high school diploma or equivalency certificate to enroll in the curriculum.Schools or courses that do not require a high school diploma or equivalency certificate are not considered an institution of higher education; ¢ 2 or

(B) a college or university that offers degree programs even when a high school diploma or equivalency certificate is not required to enroll.A college includes a junior, community, two-year, or four-year college, or university.

(i) Students enrolled at least half time in the regular curriculum are considered enrolled in higher education.

(ii) Persons enrolled in a special program at a college or university, in special programs are not considered enrolled in higher education.Special programs include:

(I) courses for such as English as a second language;

(II) course or other courses that are not part of the a regular degree programs; or

(III) Temporary Assistance for Needy Families (TANF) Special Projects Expansion Project program are not considered to be enrolled in higher education.

(2) Student status begins on the first day of the school term for students who have:

(A) not attended an institution of higher education previously; or

(B) had a break of more than a semester since they last attended.

(3) Persons are classified as students during normal periods of class attendance, and through vacations vacation, and other breaks unless the student.:

(4) Persons who graduate, are

(i) graduates;

(ii) is expelled or suspended,;

(iii) dropout, drops out; or

(iv) have completed school and do does not intend to register for the next normal school term, excluding summer school, are no longer considered students.

(b)(c) Students not subject to eligibility restrictions Student exemptions.The students described in this subsection may participate in the Supplemental Nutrition Assistance Program (SNAP) if when all other eligibility criteria are met.Eligibility restrictions discussed in subsection (c) of this Section do not apply if the students are The student is:

(1) under age younger than 18 years of age or age 50 or years of age and older;

(2) physically or mentally unfit.

(A) If When the student claims mental or physical unfitness is claimed and the unfitness is not evident to the worker, verification may be required.

(B) Appropriate verification may consist of:

(i) receipt of temporary or permanent disability benefits issued by governmental or private sources;

(ii) participation in a state vocational rehabilitation (VR) program; or

(iii) a statement from a physician or licensed or certified psychologist;

(3) attending high school;

(4) participating in an on-the-job training (OJT) program.Students are considered participating in OJT programs only during the period of time the students are being trained by the employer;

(5) attending an institution of higher education less than half-time; or

(6) enrolled half-time or more in schools and training programs which are not institutions of higher education.

(c) Eligibility restrictions for students.Persons between the ages of 18 and 50 who are physically and mentally fit and are enrolled at least half-time in an institution of higher education may participate in the SNAP only if:

(1)(4) employed for an average of 20 hours per week or 80 hours per month and paid for that employment. Earning wages equal to the federal minimum wage times 20 is does not a substitute qualify the person for this restriction exemption;¢ 3

(2)(5) self-employed for an average of 20 hours per week or 80 hours per month and receives weekly earnings at least equal to the federal minimum wage times 20;

(3)(6) participating in a state or federally financed work study program during the regular school year.

(A) To qualify under this provision, the students student must be approved for work study at the time of application for food benefits.

(i) The work study must be approved for the school term and the students student must anticipate actually working during the school term.

(ii) The exemption begins with the month the school term begins or the month work study is approved, whichever is later.

(iii) Once begun, the exemption continues until the end of the month the school term ends, or it becomes known the students have student refused an assignment.

(B) The exemption does not continue between terms when there is a break of a full month or longer unless the student is participating participates in a work study program during the break.;

(4)(7) responsible for the care of a dependent household member under the age of six years of age.Only one person may be considered as responsible for a dependent child.The caretaker need not be the person providing for the child's support;

(5)(8) responsible for the care of a dependent household member child, six through 11 years of age, when the worker determines that adequate child care is not available to enable the student to attend class and work an average of 20 hours per week or participate in a state or federally financed work study program.

(A) The reasons for lack of adequate child care include, but are not limited to, location of the nearest lack of an available licensed and contracted child care facility within a reasonable distance from the student's home or school or the availability of funds to pay child care expenses.Determination of availability of adequate child care is made on a case-by-case basis.

(B) Only one person may be considered as responsible for the care of a dependent child.The caretaker need not be the person providing for the child's support; ¢ 4

(6)(9) a single parents parent enrolled in an institution of higher education on a full-time basis, as determined by the institution, and responsible for the care of a dependent child under age younger than 12 years of age, regardless of the availability of child care.

(A) This provision applies in those situations where only one natural, adoptive, or stepparent, regardless of marital status, is in the same food benefit household as the child.

(B) If When no natural, adoptive, or stepparent is in the same food benefit household as the child, another full-time student in the same food benefit household as the child may qualify for eligible student status under this provision if exemption when he or she has parental control over the child and is not living does not live with his or her spouse;

(7)(10) A Temporary Assistance for Needy Families (TANF) recipients recipient; or

(8)(11) assigned to or placed in an institution of higher education through or in compliance with the requirements of one of the employment and training programs identified in (A) through (E)(D) of this paragraph."In compliance with" means the person self-enrolled in the school during the period of time he or she was enrolled in an employment and training program and the program has a component for enrollment in an institution of higher education and accepts the placement. ¢ 5 Employment and training programs include:

(A) the Workforce Investment Innovation and Opportunity Act (WIA) Program;

(B) a food benefit employment and training program, per 7 C.F.R. § 273.7, subject to the condition that the course or program of study, as determined by Adult and Family Services (AFS) SNAP staff, is:

(i) part of a career and technical education program, per Section 3 of the Carl D. Perkins Career and Technical Education Act of 2006; and Section 2302 of Title 20 of the United States Code (20 U.S.C. § 2302), designed to be completed in not more than four years at an institution of higher education, per Section 102 of the 1998 Amendments to the Higher Education Act of 1965, 20 U.S.C. § 1002; or

(ii) limited to remedial courses, basic adult education, literacy, or English as a second language;

(C) the Job Opportunities and Basic Skills (JOBS) program under Title IV of the Social Security Act;

(D) a program under Section 236 of the Trade Act of 1974 currently known as The Trade Adjustment Assistance Program and administered by the Oklahoma Employment Security Commission; or

(E)(D) a state or local government-operated employment or training program, as determined appropriate by the United States Department of Agriculture, Food and Nutrition Service (FNS) for low-income households where one or more components of the program is at least equivalent to an acceptable SNAP employment and training program as specified, per 7 C.F.R. § 273.7(e)(1) and as determined by AFS SNAP staff; or

(12) enrolled as a result of participation in the Job Opportunities and Basic Skills program under Title IV of the Social Security Act or its successor program.

(d) Income and deductible expenses of an ineligible student.When the student is not eligible to receive food benefits, he or she is considered a non-household member per Oklahoma Administrative Code (OAC) 340:50-5-5.His or her income is not considered and household expenses may be prorated, per OAC 340:50-5-6.

INSTRUCTIONS TO STAFF 340:50-5-45

Revised 10-2-19

1.Students that do not meet the eligibility restrictions per (a) of this Section include students enrolled in:

(1) high school or high school equivalency courses;

(2) an institution of higher education, less than half-time.The term "at least half-time" is determined by each institution of higher education and most often is at least six hours; and

(3) a school and training program, half-time or more that does not meet the definition of an institution of higher education, per (a)(1) of this Section.

2.(a) "Normally requires" means a student is required to have a high school diploma or equivalency certificate, but when the student does not have either, he or she may be enrolled by passing a special entrance examination.When a high school diploma or equivalency certificate is only required prior to completion of coursework, as opposed to required for enrollment, students are not considered to be attending an institution of higher education.In addition, programs designed to help a person pass the high school equivalency test do not qualify the person as attending an institution of higher education.

(b) Students enrolled in online courses or telecourses are considered to be attending an institution of higher education when the school requires the student to have a high school diploma or equivalency certificate for enrollment and the student is enrolled at least half time.

3.The pay can be at any rate but the hours worked must average 20 per week or 80 per month.

4.When both parents are students, only one parent can be exempt as caretaker of a child.In order for both parents to be exempt as caretaker, there must be at least two children under six years of age and each parent is caretaker for a different child at a different time of day.For example, the mother attends school at night and cares for one of the children during the day, while the other child is in kindergarten while the father is in school.The father cares for both children in the evening while the mother is in school.

5.An example of an employment and training program that meets the "in compliance with" criteria is the Workforce Innovation and Opportunity Act (WIOA) Program.The WIOA program does not assign or place persons in an institution of higher education, but its staff, when appropriate, encourage self-enrollment in institutions of higher education described at (a)(1)(A) and (B) of this Section for its enrollees.

PART 10. ABLE-BODIED ADULTS WITHOUT DEPENDENTS

340:50-5-101. Exemption to Able-Bodied Adult Without Dependents (ABAWD) Work Requirements

Revised 10-2-19

Per Section 273.24(g) of Title 7 of the Code of Federal Regulations (7 C.F.R. § 273.24(g)), the Oklahoma Department of Human Services (DHS) may provide an exemption from the three-countable months during any 36-month period rule for ABAWDs, per Oklahoma Administrative Code (OAC) 340:50-5-100(b), for up to 15 12 percent of eligible ABAWDs per federal fiscal year.

(1) Eligible ABAWD.An eligible ABAWD is a food benefit recipient or applicant denied eligibility solely because he or she received three-countable months during the current 36-month period.This includes an ABAWD, who is not: ¢ 1

(A) exempt from ABAWD work requirements, per OAC 340:50-5-100(d);

(B) fulfilling work requirements, per OAC 340:50-5-100(a); or

(C) receiving Supplemental Nutrition Assistance Program food benefits because he or she regained eligibility for three-consecutive months, per OAC 340:50-5-100(e)(2).

(2) Tracking.DHS tracks the number of exemptions used each month and reports the information to the United States Department of Agriculture Food and Nutrition Services regional office on a quarterly basis.

(3) 15 12 percent exemption.DHS uses the allowable 15 12 percent exemptions to extend food benefit eligibility for one additional month to ABAWDs whose eligibility was extended more than three-countable months in error.

INSTRUCTIONS TO STAFF 340:50-5-101

Revised 10-2-19

1.The 12 percent exemption is used by Adult and Family Services Supplemental Nutrition Assistance Program staff only to cover cases in which too many countable months were issued to an able-bodied adult without dependents in error.When the exemption is applied, the ABWI screen shows a zero month.

SUBCHAPTER 7. FINANCIAL ELIGIBILITY CRITERIA

PART 1. RESOURCES

340:50-7-1. Resources considered

Revised 10-2-19

(a) Resources are excluded in determining eligibility for the Supplemental Nutrition Assistance Program (SNAP) unless the household:

(1) applies for expedited service.The worker must include the household's liquid resources as defined at (b) of this Section to determine eligibility for expedited service, per Oklahoma Administrative Code (OAC) 340:50-11-1; or

(2) contains one or more sponsored aliens whose sponsor's resources must be considered, per OAC 340:50-5-49; or

(3) has substantial lottery or gambling winnings.Per Section 273.11(r) of Title 7 of the Code of Federal Regulations (7 § C.F.R. 273.11(r)), substantial lottery or gambling winnings are defined as a cash prize won in a single game, before taxes or other amounts are withheld equal to, or greater than, the SNAP resource standard for households containing an elderly or disabled household member.Refer to Oklahoma Department of Human Services (DHS) Appendix C-3, Maximum Food Benefit Allotments and Standards for Income and Deductions, for the current resource standard.

(A) The client must provide verification of the winnings from the appropriate lottery commission or gaming facility.

(B) When the household's winnings exceed the SNAP resource standard for the elderly or disabled, the worker closes the SNAP food benefit for the next advance notice effective date, per Appendix B-2, Deadlines for Case Actions.

(C) The household may regain resource eligibility once the client verifies the winnings are spent down below the resource standard.

(b) The worker accepts the household's statement regarding the value of liquid resources to determine expedited eligibility.Liquid resources include:

(1) cash on hand;

(2) checking or savings account balances;

(3) the cash value of savings certificates; and

(4) the cash value of stocks or bonds.

(c) The household must verify the value of liquid and non-liquid resources, per OAC 340:50-5-49, when the sponsor's resources must be considered.After subtracting $1,500 from countable resources, resources cannot exceed $3,000 the resource standard for households that contain a member who is disabled or 60 years of age or older or $2,000 the resource standard for all other households, per DHS Appendix C-3.

PART 3. INCOME

340:50-7-29. Income inclusions

Revised 10-2-19

(a) Sources of income considered.The worker considers all household income, unless specifically excluded, per Section 273.9(c) of Title 7 of the Code of Federal Regulations (7 § C.F.R. 273.9(c)) and Oklahoma Administrative Code (OAC) 340:50-7-22, in determining monthly gross income.Income is classified as earned or unearned.

(1) When one or more household members are absent from the home, before deciding whether to consider the absent household member's income, the worker must determine if the person returns to the home for part of the month.

(A) Per OAC 340:50-5-2, the worker does not include the absent member in the benefit amount and only counts the portion of his or her income that he or she makes available to the rest of the household when the household member does not return for part of the month.¢ 1

(B) When the household member returns for part of each month, the worker includes him or her in the benefit amount and counts all of his or her income unless excluded, per OAC 340:50-7-22.

(2) Per OAC 340:50-5-5, the household has the option of including a child receiving a foster payment that includes a payment for kinship care, or a Developmental Disability Services (DDS) room and board payment in the food benefit.When the household chooses not to include the child in the food benefit, the worker does not count the child's income, including the foster or DDS room and board payment.

(3) When the household adopts a child previously in the custody of the Oklahoma Department of Human Services (DHS) and receives an adoption subsidy payment for the child, the worker includes the child in the food benefit and counts the child's income, including the adoption subsidy payment.¢ 2

(4) When a member of the household becomes the guardian of a child and receives a guardianship payment from DHS, the payment is considered as income. The child for whom the payment is received must be included in the food benefit.

(b) Earned income.Per 7 C.F.R. § 273.9(b)(1), earned income is income a household receives in the form of wages, commission, self-employment, or training allowances, and for which a person puts forth physical labor.Temporary disability insurance payments and temporary workers' compensation payments are considered earned income when payments are employer-funded and the person remains employed.The types of earnings listed in (1) through (4) of this subsection, including money from the sale of whole blood or blood plasma or a DDS payment to an extended family care provider for services rendered in addition to the child's room and board payment, are considered earned income.

(1) Wages.Wages and salaries include sick pay paid by the employer to an employee who plans to return to work when recovered, excess benefit allowance payments, ¢ 3and wages garnished or diverted to pay a third party for a household's expenses. ¢ 4Countable wages for military personnel include any allowance included on the earnings statement, such as the Basic Allowance for Housing (BAH) and the Basic Allowance for Subsistence (BAS).

(2) S corporations.When a household member is a shareholder in an S corporation, he or she may receive profits from the business in two ways; as a salary and/or as a profit share of the business.Both types of income are reported on the household member's personal income tax return.Salary income is considered as earned income and profit share income is considered as unearned income per (c)(7) of this Section.¢ 5

(3) Self-employment.Refer to OAC 340:50-7-30 for self-employment income procedures.

(4) Title I payments of the Domestic Volunteer Services Act.Countable earned income includes payments paid to a household member under Title I of the Domestic Volunteer Services Act of 1973 as amended per Public Law (P.L.) 93-113, unless excluded, per OAC 340:50-7-22.

(5) On-the-job training (OJT).The worker counts income earned in OJT positions as earned income.This includes OJT provided per Section 3(44) of the Workforce Innovation and Opportunity Act of 2014, P.L. 113-128 for persons 19 years of age or older.¢ 6

(c) Unearned income.In general, unearned income is income a household receives and is not in the form of wages, self-employment, or training allowances, and for which a person does not put forth physical labor.The income listed in (1) through (6) of this subsection, while not all inclusive, are considered unearned, per 7 C.F.R. § 273.9(b)(2).

(1) Assistance payments.The worker counts payments from a federally-aided public assistance program, such as Supplemental Security Income (SSI), Temporary Assistance for Needy Families (TANF), or assistance programs based on need, such as State Supplemental Payments, as unearned income.When such payments are received by a third party, they are counted as income for the person to whom it is legally owed.¢ 7

(A) A household's food benefit amount does not increase when the public assistance benefit the household receives under a federal, state, or local means-tested public assistance program is reduced, suspended, or closed because the public assistance program imposed a penalty due to an intentional program violation determined as fraud or a household member's failure to comply with a requirement of that program.

(i) To impose a food benefit sanction, the person must be certified for Supplemental Nutrition Assistance Program (SNAP) benefits at the time of the failure to comply and receiving regular benefits from the other program at the time fraud occurred or the household failed to comply with a substantive program requirement.

(ii) Examples of means-tested public assistance programs include SSI and TANF.

(iii) Substantive requirements are behavioral requirements of that program designed to improve the well-being of the household.For TANF, this includes:

(I) complying with TANF Work requirements, per OAC 340:10-2.OAC 340:10-2-2 explains the TANF penalty considered for SNAP when the household fails to comply with TANF Work activities; ¢ 8

(II) cooperating to obtain child support, per OAC 340:10-10-5;

(III) providing a Social Security number, per OAC 340:10-12-1;

(IV) ensuring school-age children regularly attend school, per OAC 340:10-13-1;

(V) verifying children meet immunization requirements, per OAC 340:10-14-1; and

(VI) not using the TANF benefit in a prohibited business, per OAC 340:10-1-3.

(iv) Procedural requirements that do not trigger a penalty include failing to:

(I) provide verification;

(II) complete an interview; or

(III) complete a benefit renewal.

(v) When a worker is not able to obtain the necessary information and cooperation from another federal, state, or local means-tested welfare, or public assistance program to comply with the provision in (A) of this paragraph, DHS is not held responsible.The worker must make a good faith effort to get the needed information and record the details and results of this effort in the case file.

(vi) The worker does not reduce, suspend, or close the household's current food benefit amount when the benefits under another assistance program are decreased.

(vii) When the worker adds eligible members to the food benefit, the benefit must be adjusted regardless of whether the household is prohibited from receiving benefits for the additional member under another federal, state, local welfare, or public assistance means-tested program.

(viii) Changes in household circumstances not related to the penalty imposed by another federal, state, local welfare, or public means-tested assistance program are not affected by the provision in (A) of this paragraph.

(ix) The application of the provision in (A) of this paragraph applies for the duration of the imposed penalty or until DHS cannot determine the amount of the penalty.¢ 9

(x) SNAP sanctions extending beyond one year must be reviewed at least annually to determine if the sanction continues to apply.

(B) The provision in (A) of this paragraph does not apply to persons or households subject to disqualification from SNAP for noncompliance with a comparable work requirement per Title IV of the Social Security Act or an unemployment compensation work requirement.

(2) Pension and Social Security.Annuities, pensions, retirement, veterans' or disability benefits, workers' or unemployment compensation, survivors' or Social Security benefits, and strike benefits are unearned income.When a third party receives Social Security benefits it is counted as income for the person to whom it is legally owed.¢ 7The worker considers disability payments as:

(A) unearned income when the person is no longer considered an employee of the company and an agency outside of the company pays the disability benefits; and

(B) earned income when the person is still considered an employee of the company and the company pays the disability benefits.

(3) Support and alimony.The worker counts support and alimony payments paid directly to the household from non-household members as unearned income.¢ 10The worker also counts money deducted or diverted to a third party to pay a household expense as unearned income when the court order directs the payment be made to the household.The worker does not count money the court order states must be paid to a third party as income.¢ 11

(4) Grants, dividends, royalty, and interest payments.Payments from government sponsored programs, such as Agricultural Stabilization and Conservation Service Programs, grants, dividends, royalties, interest, and all other direct money payments from any source construed to be a gain or profit are considered income.The worker treats income from these sources as unearned income.The household must provide proof of income from these sources so income can be averaged to determine monthly countable income.

(5) Monies withdrawn or dividends that are or could be received by a household from trust funds.Dividends the household has the option of either receiving as income or reinvesting in the trust are considered income in the month they become available to the household.

(6) Department of Veteran's Affairs (VA) Aid and Attendance.When a person receives VA Aid and Attendance income and does not pay someone outside of the food benefit household to care for him or her, this is considered as countable income.Any portion of the VA Aid and Attendance paid to someone outside of the food benefit household for care is excluded.

(7) Profit sharing.When a household member is a shareholder in an S corporation or a partner in a limited partnership or limited liability company, he or she may receive a distribution or profit share of the business.This is considered as unearned income.¢ 12

(d) Income of excluded household members.Per OAC 340:50-5-10.1, excluded household members are termed as disqualified or ineligible.The worker does not consider the needs of a disqualified or ineligible household member when determining the household's size for purposes of assigning a benefit level to the household or comparing the household's monthly income with the income eligibility standard, per 7 C.F.R. § 273.11(c)(2)(iv).

(1) Disqualified household members.The worker counts the disqualified household member's income in its entirety as available to the remaining household members, per 7 C.F.R. § 273.11(c)(1)(i).The worker does not prorate utility, medical, dependent care, child support expenses, or excess shelter deductions.Per OAC 340:50-5-10.1, disqualified household members are those excluded for:

(A) committing an intentional program violation;

(B) failing to meet work registration requirements;

(C) meeting fleeing felon criteria; or

(D) being a probation or parole violator.

(2) Ineligible household members.The worker prorates the income of ineligible household members among all household members, per 7 C.F.R. § 273.11(c)(2)(ii).

(A) Per OAC 340:50-5-10.1, ineligible household members are those excluded because they do not meet a program requirement, such as:

(i) failure to obtain or refusal to provide a Social Security number;

(ii) not being a citizen or qualified alien; or

(iii) being an able-bodied adult without dependents and not meeting work requirements; or

(iv) failure to cooperate with providing requested verification regarding unclear information.

(B) The worker counts a pro rata share of the ineligible household member's income as income available to the remaining members by first subtracting the allowable income exclusions, per OAC 340:50-7-22, from the ineligible member's income and dividing the income evenly among the eligible household members and the ineligible member.

(C) The worker counts all but the ineligible member's share as income available to the remaining household members.The earned income deduction, per OAC 340:50-7-31, and DHS Appendix C-3, Maximum Food Benefit Allotments and Standards for Income and Deductions, applies to the prorated income attributed to the household when it was earned by the ineligible member.

(D) The portion of the household's allowable shelter, child support, and dependent care expenses paid by or billed to the ineligible member is divided evenly among the household members, including the ineligible member.All but the ineligible member's share is considered a deductible shelter expense for the remaining household members, with the exception of utility expenses, per 7 § C.F.R. § 273.9(d)(6)(iii)(F), or the standard homeless shelter deduction, per 7C.F.R. § 273.9(d)(6)(i).When the:

(i) household is responsible for utility expenses, the household is allowed the full utility standard for which it qualifies, per OAC 340:50-7-31: or¢ 13

(ii) homeless household is responsible for shelter costs, the household is allowed the full standard homeless shelter deduction, per Appendix C-3, Maximum Food Benefit Allotments and Standards for Income and Deductions, or the prorated excess shelter deduction incurred by the household, whichever results in the most benefits for the household, per OAC 340:50-7-31(a)(6)(A)(v).¢ 14

INSTRUCTIONS TO STAFF 340:50-7-29

Revised 10-2-19

1.(a) Examples of household members who do not return for part of the month include persons away from home due to military deployment or employment in another state.

(b) When the absent member makes all or part of his or her income available to the rest of the household, the worker counts it as a contribution.

(c) When the absent member deposits his or her wages in a joint bank account, the worker only counts the portion of the wages the absent member states is for the household's use.

2.The worker counts adoption subsidy payments as income to the parent, not the child.

(1) The worker documents adoption subsidy payments in Family Assistance/Client Services (FACS) case notes as income for the parent but enters the income in the FACS Income tab for the child when the child is included in the food benefits.

(2) When the child is not included in the food benefit or when the parent is an ineligible or disqualified household member, the worker enters the income in the FACS Income tab for the parent as a contribution and documents the reason in FACS case notes.

3.When the employer adds money to the employee's gross income as a benefit allowance to pay for a reimbursable expense, such as insurance or dependent care, the worker counts the regular gross earnings plus any excess money left after deducting the reimbursable expense as income.For example, when a person:

(1) receives a $300 benefit allowance to purchase insurance and uses the entire amount to purchase the insurance, none of the benefit allowance is counted as income;

(2) receives a $300 benefit allowance but only purchases $280 in insurance, the worker counts the remaining $20 as income;

(3) has an option of purchasing insurance with a $300 benefit allowance when insurance was purchased or receiving $150 of the $300 benefit allowance as cash when insurance is not purchased, the worker counts the $150 as an excess benefit allowance when the person chooses not to purchase insurance; or

(4) receives any excess benefit allowance at the end of the year instead of monthly, the worker excludes the one-time payment as income as it is considered a non-recurring lump sum payment, per Oklahoma Administrative Code (OAC) 340:50-7-22(10)(C).

4.Examples of wages garnished or diverted and paid to a third party for a household's expenses include wages withheld to pay:

(1) child support;

(2) rent, even when the employer is also the landlord; or

(3) the employer for uniforms or tools required to be purchased for use on the job.

5.Shareholders of S corporations complete Form 1120-S, U.S. Income Tax Return for an S Corporation with Schedule K-1, Shareholder's Share of Income.When the household member is a shareholder and receives a salary from the business, the household member must supply a copy of his or her W-2, Wage and Tax Statement.Line 1 on Form W-2 shows the household member's annual wages for the tax year.To calculate the household member's monthly income, the worker divides the income shown on line 1 by 12 or the number of months the S corporation existed during the tax year.

6.This provision does not apply to household members 18 years of age and younger who are under the parental control of another adult household member, regardless of school attendance.For the purpose of this provision, earnings include monies paid under the Workforce Investment Act and monies paid by the employer.

7.Examples include, when a:

(1) mother applies for food benefits for herself and her 10-year old son.The son receives Social Security benefits as a dependent of his disabled father and his father is the payee for his son's SSA benefit.Since the son is included in his mother's food benefit application, the portion of the SSA benefit legally owed to the son is counted as unearned income for the food benefit household; or

(2) child receives Supplemental Security Income (SSI) income and resides half of the month with his mother and the other half with his father.The child and his father receive food benefits and the mother is the payee for the child's SSI income.Since the SSI is legally owed to the child, the SSI is counted as unearned income for the food benefit household.

8.Refer to OAC 340:10-2-2 Instructions to Staff # 4(6) to determine when the Temporary Assistance for Needy Families (TANF) penalty income is removed.

9.This may occur when the other program benefit closes or the person becomes ineligible for a non-penalty related reason, the worker stops imposing the food benefit sanction.

10.The worker counts child support as income to the parent, not the child.The worker counts cash medical payments as income when the child does not receive a SoonerCare (Medicaid) benefit.The worker verifies if the household receives cash medical by viewing the KI1 screen.

(1) The worker documents child support in FACS case notes and codes it as income in the FACS Income tab for the child, even though it is considered income to the parent, when the child is included in the food benefits unless:

(A) child support is paid to a parent whose child is no longer in the food benefit; or

(B) the parent is an ineligible or disqualified household member.

(2) In the circumstances listed in (1)(A) or (B) of this Instruction, the worker codes the child support on the Income tab for the adult as a contribution.

11.(a) Example of when a payment to a third party counts as income.The household receives $400 in court-ordered monthly child support payments.At benefit renewal the household reports the non-custodial parent now pays $200 of the $400 directly to a creditor of the food benefit household.In this instance the worker continues to count the entire $400 as unearned income because the payment is from money owed to the household.

(b) Example of when a payment to a third party does not count as income.The household receives $400 in court-ordered child support.In addition, the court order directs the non-custodial parent to pay $200 to a bank for repayment of a loan.The worker does not count the additional $200 as income because the court order did not direct this payment be made to the household.

12.(a) To calculate the household's profit sharing income from an S corporation, the worker uses the 'ordinary business income' shown on line 1 of the Schedule K-1, Shareholder's Share of Income, and divides the income by 12 or the number of months the business existed in the tax year to arrive at the monthly gross unearned income.

(b) When a household member is a partner, the worker looks at line G on Schedule K-1, Partner's Share of Income that accompanies Form 1065, Partnership Return of Income, to determine the type of partnership.When it shows the business is a limited partnership or limited liability company, the worker uses the 'ordinary business income' shown on line 1 of Schedule K-1 and divides the income by 12 or the number of months the business existed in the tax year to arrive at the monthly gross unearned income.When line G shows the business is a general partnership, refer to OAC 340:50-7-30(b)(2) to calculate the income as self-employment income.

(c) The worker codes the profit sharing income in the FACS Income tab and enters a FACS case note to document income calculations.

13.Example: The household size is four, including the ineligible household member.When the rent is $400, and the household pays heating and cooling costs, the worker divides the rent by four, $400/4 persons = $100 per person and multiplies this number by the three eligible household members to arrive at $300, $100 x 3 = $300.The worker enters $300 in the FACS 'shelter cost' field, Information Management System (IMS) block C54 and S in the FACS 'utility indicator' field, IMS block C59 of the FACS Shelter tab.

14.(a) The worker enters one of the four homeless shelter codes in the Case Information tab 'shelter type' field, IMS block A23, of the FACS Interview Notebook:A, B, C, or D.The worker also enters 'yes' or 'no' in the 'homeless shelter costs' field of the FACS Shelter Tab, IMS block C61 to indicate whether the household has shelter costs associated with being homeless.When the answer is:

(1) 'no,' the worker enters zero in 'shelter cost' field, IMS block 54 and 'N' in the 'utility indicator' field, IMS block 59 of the FACS Shelter Tab; or

(2) 'yes,' the worker enters the prorated portion of the claimed shelter expense in the 'shelter cost' field, IMS block 54 and when the household claims utility costs, the applicable utility indicator in the 'utility indicator' field, IMS block 59 of the FACS Shelter Tab.The system calculates the household's income and allows the shelter expense deduction that results in the most food benefits for the household.

(b) Example: The household consists of two adults, one is an ineligible alien.The household claims it is homeless and incurs a shelter cost of $300 and no utility costs.The eligible household member may receive the full-standard homeless shelter deduction or half of the claimed shelter costs totaling $150, 300/2 persons.The worker enters $150 in the 'shelter cost' field, IMS block 54 and 'N' in the 'utility indicator' field, IMS block 59.Once the case is saved and cleared, the correct shelter cost will show in IMS.

340:50-7-31. Deductions

Revised 10-2-19

(a) Deductible expenses.Households are allowed certain deductible expenses from income as described in (1) through (6) of this subsection and per Section 273.9(d) of Title 7 of the Code of Federal Regulations (7 C.F.R. § 273.9(d)).The household reports current medical, dependent care, legally-binding child support, and shelter expenses at certification, mid-certification renewal, and certification renewal.The household must also report current shelter costs when the household moves.

(1) Standard deduction.All households are allowed a standard deduction, per Oklahoma Department of Human Services (DHS) Appendix C-3, Maximum Food Benefits Allotments and Standards for Income and Deductions.

(2) Earned income deduction.Households with earned income are allowed an earned income deduction, per DHS Appendix C-3, to cover the cost of state and local income taxes, pensions, union dues, and work related expenses.Refer to Oklahoma Administrative Code (OAC) 340:50-7-30 for information regarding business expenses for self-employed persons.

(3) Medical expense deduction.A medical expense deduction is only allowed for household members meeting the definition of elderly or disabled, per OAC 340:50-5-4.For these household members, medical expenses exceeding $35 per month are deductible when verified.The $35 is subtracted from medical expenses once per household, not per person, when the household has more than one elderly or disabled member. ¢ 1

(A) Allowable medical expenses.Allowable medical expenses must be prescribed or approved by a state licensed or qualified practitioner and include:

(i) medical and dental care, including psychotherapy and rehabilitation services provided by a licensed practitioner or other qualified health professional authorized by state law;¢ 2

(ii) hospitalization or outpatient treatment, nursing care, and nursing home care, including payments by the household for a person who was a household member immediately prior to entering a hospital or nursing home provided by a facility recognized by the state; ¢ 3

(iii) prescription drugs and other over-the-counter medication including insulin, when approved by a licensed practitioner or other qualified health professional authorized by state law.This does not include the cost of a Schedule I controlled substance under the Controlled Substances Act, Section 801 et. seq. of Title 21 of the United States Code, or any expenses associated with its use;

(iv) Costs costs of medical supplies, sick-room equipment including rentals, or other prescribed equipment are also included;¢ 4

(iv)(v) health, dental, and hospitalization policy premiums;¢ 5

(v)(vi) Medicare premiums and any cost-sharing or spend-down expenses incurred by Medicare or SoonerCare (Medicaid) recipients;

(vi)(vii) dentures, hearing aids, and prosthetics; ¢ 6

(vii)(viii) eye glasses prescribed by a licensed practitioner;¢ 7

(viii)(ix) reasonable cost of lodging and transportation to obtain medical treatment or services.Lodging costs are allowed when the elderly or disabled member is required to spend the night away from home to receive medical services.¢ 8Reasonable transportation costs are based on the type of transportation used.When the elderly or disabled member:

(I) uses his or her vehicle, the state's current mileage reimbursement is allowed;

(II) uses public transportation, the actual cost of the transportation is allowed; or

(III) pays a non-household member for transportation, the amount charged by the person is allowed;

(ix)(x) maintaining an attendant, homemaker, home-health aide, child care services, or housekeeper due to age, infirmity, or illness.When this expense also qualifies as a dependent care expense per (4) of this subsection, it is considered a medical expense rather than a dependent care expense.Additionally, when the household furnishes a majority of the caretaker's meals, an amount equal to one allotment is added to the medical expense for meals provided.The allotment used is the amount in effect at certification; and

(x)(xi) costs associated with all service animals specially trained to serve the needs of elderly or disabled program participants.This includes maintenance costs, such as veterinary bills, food, and other expenses for these service animals.

(B) Medical expenses not allowed.Expenses not allowed include:

(i) costs associated with special diets;

(ii) premiums for health and accident insurance policies, such as those payable in lump sum settlements for death or dismemberment;

(iii) premiums for income maintenance policies, such as those that continue mortgage or loan payments while the beneficiary is disabled;

(iv) items that can be purchased with food benefits, such as dietary supplements; and

(v) the cost of meals or other incidentals when the person spends the night away from home to receive medical services; and

(vi) prescribed medical marijuana or any expenses associated with its use.

(C) Medical expense verification requirements.Households are required to report and verify medical expenses at certification and certification renewal.Households are not required to report changes in medical expenses during the certification period. ¢ 9

(i) When a household voluntarily reports a reduction in medical expenses that will decrease the food benefit allotment, no verification is needed.However, the change requires notice of adverse action, per OAC 340:50-9-5.

(ii) When a household voluntarily reports additional medical expenses that will increase the food benefit allotment, the household must verify the additional expenses before the worker changes the medical expense deduction.

(iii) When the additional medical expenses are one-time expenses, such as hospital costs, dental expenses, or the purchase of prescription eyeglasses, the expense is only allowed when the person reports and verifies the expense before it becomes past due.When a portion of the expense will be paid by a vendor or insurance payment, the worker does not allow the expense until the amount owed by the person is verified.Once verified, the household may choose to:¢ 10

(I) deduct the entire expense in the month incurred or when it becomes due;

(II) average the expense over the remaining months of the certification period; or

(III) average the expense over the scheduled length of a payment plan.

(iv) When the worker finds out about a change from a source other than the household, the change is acted on when verified upon receipt, such as when the worker is notified via data exchange of a Medicare premium change.The worker does not contact the household for additional information.When the change requires household contact for additional information or verification, the worker does not make the change.

(v) When a household reports but does not verify an anticipated medical expense, the worker informs the household the expense will be allowed when the household provides verification.

(4) Dependent care.Dependent care is payment for the actual cost for the care of a child under 18 years of age or other dependent of any age with disabilities when necessary for a household member to seek, accept, or continue employment or to attend training or education preparatory to employment.Dependent care costs may include activity fees and the cost of transportation to and from the dependent care facility. ¢ 11

(A) The deduction applies regardless of whether the household member is subject to the Supplemental Nutrition Assistance Program Employment and Training requirements.

(B) When the expense also qualifies as a medical expense per (a)(3) of this Section, it is considered a medical expense rather than a dependent care expense.

(C) There is no maximum dependent care deduction.The total reported by the client is an allowable expense as long as it meets the criteria in this Section.

(D) Dependent care is only verified when the expenses claimed actually result in a deduction and other information available to the worker is inconsistent with the household's claim that it incurs a dependent care expense. ¢ 12

(5) Legally-binding child support.A deduction is allowed for verified legally-binding child support payments paid by a household member to or for a non-household member, including payments made to a third party on behalf of the non- household member.¢ 13

(6) Shelter costs.A household is allowed a shelter deduction when the monthly shelter cost exceeds 50 percent of the household's income after all other deductions are allowed, per 7 C.F.R. § 273.9(d)(6)(ii).The shelter deduction cannot exceed the maximum amount allowed per DHS Appendix C-3, unless the household includes an elderly or disabled member.Households with an elderly or disabled member receive an excess shelter deduction for the monthly cost exceeding 50 percent of the household's income after the deductions listed in (1) through (6) of this subsection are allowed.When the household includes a non-household member or disqualified member, refer to (b)(4)(5) and (5)(6) of this Section to determine whether to prorate shelter costs.

(A) Allowable rent or mortgage costs.Allowable rent or mortgage costs for the

(i) monthly rent or mortgage payment, or other continuing charges leading to the ownership of the shelter, such as loan repayments for the purchase of a mobile home, including interest on such payments;

(ii) charge for renting or buying the land on which a mobile home is located;

(iii) property taxes, state and local assessments, and insurance on the structure.A mobile home is taxed as part of the property tax when the land is owned or being purchased;¢ 15

(iv) personal property tax for unregistered mobile homes on rented land; or

(v) monthly vehicle payment standard homeless shelter deduction, per DHS Appendix C-3, or the excess shelter deduction described, per (a)(6) of this Section, whichever results in the most food benefits for the household, when a homeless household lives in the vehicle incurs or expects to incur a shelter cost.¢ 16

(B) Expenses not considered as shelter costs.The worker does not consider as shelter costs, the cost for:

(i) insuring furniture or personal belongings when paid separately from the insurance on the home;

(ii) vehicle registration or a tag for a mobile or motor home; or

(iii) personal property tax except as allowed, per (6)(A)(iv) of this subsection.

(C) Allowable utility costs.When the household incurs utility expenses, it is eligible for one of three standard utility allowances based on criteria in (i) through (iii) of this subparagraph.The applicable utility standard amount is specified, per DHS Appendix C-3.

(i) The standard utility allowance (SUA) is based on annual averages that include costs for heating or cooling; and cooking fuel, electricity, basic phone service, water, sewage, and garbage.This includes households that receive Low Income Heat Energy Assistance Payments (LIHEAP).¢ 17

(I) The household is eligible for the SUA when the household is billed for heating or cooling during the year.Households billed less often than monthly for heating costs, such as butane or propane may continue to use the utility standard between billing months.

(II) When a household reports they no longer incur a heating or cooling expense, but still have a utility expense, the standard must be changed to the basic utility allowance (BUA) or telephone standard.

(III) When a household's heating or cooling expenses are partially reimbursed or paid by an excluded payment, such as a vendor payment, Housing and Urban Development (HUD), or Farmers Home Administration (FmHA) payment, the household remains eligible for the SUA.

(ii) The BUA includes utility charges the household incurs other than for heating and/or cooling, such as cooking fuel, water, sewage, garbage collection, and basic phone service.

(iii) The telephone standard is used when the household is not entitled to use the SUA or BUA, but has a phone cost.¢ 18

(D) When shelter costs for an unoccupied home are allowed.Shelter costs for an unoccupied home may be allowable when the household is temporarily away from home because of illness, a disaster or casualty loss to the home, or to attend an employment or training opportunity.¢ 19

(i) For the cost of a vacated home to be included in shelter costs the:

(I) household must intend to return to the home;

(II) current occupants of the home, if any, must not claim the shelter costs during the household's absence; and

(III) home must not be rented or leased during the household's absence.

(ii) A household that has an occupied home and an unoccupied home is only allowed one standard utility deduction.

(b) Expense calculation.The worker calculates a household's expenses based on the expenses the household expects to be billed for during the certification period.The worker anticipates expenses based on the most recent month's bills unless the household is reasonably certain a change will occur.

(1) Billing fluctuations.The household may elect to average expenses when the billed amount fluctuates monthly, is billed less often than monthly, or as in the case of some medical expenses, the expense changes throughout the certification period.

(2) When expenses are owed but not paid.The household is allowed a deduction in the month the expense is billed or otherwise becomes due, regardless of when the household intends to pay the expense.A particular expense may be deducted only once.¢ 20

(3) Reimbursed expenses.The portion of an expense paid by an excluded reimbursement or vendor payment is not deductible.The amount left after deducting the excluded payment is deductible and includes HUD and Farmers Home Administration (FmHA) rent and utility payments.Expenses are only deductible when the service is provided by someone outside of the household and the household makes a monetary payment for the service.¢ 21

(4) One-time expenses.The household may choose to average one-time expenses over the entire certification period in which they are billed, per 7 C.F.R. § 273.10(d)(3).When the household reports a one-time expense during the certification period, the household may choose to:

(A) deduct the entire expense for the next effective month; or

(B) average the expense over the remaining months in the certification period beginning with the next effective month.When the household is certified for 24 months and the one-time expense was incurred in the:

(i) first 12 months of the certification period, the household may elect to deduct the expense in one month, average the expense over the remaining months in the first 12 months of the certification period or average the expense over the remaining months in the certification period; or

(ii) the second 12 months of the certification period, the household may elect to have the expense deducted in one month or averaged over the remaining months in the certification period.

(5) When the household includes a disqualified household member.When the household includes a disqualified household member, per OAC 340:50-5-10.1, the worker does not prorate allowable deductions because the disqualified member's income is counted in its entirety, per OAC 340:50-7-29(d).

(6) When the household includes an ineligible household member.When the household includes an ineligible household member, per OAC 340:50-5-10.1, the worker prorates the allowable deductions evenly between the household members, including the ineligible member except for utility expenses, with the exception of (A) and (B) of this subparagraph, because the ineligible member's income is also prorated, per OAC 340:50-7-29(d).When the household is:

(A) When the household is responsible for utility expenses, the household is allowed the full utility standard deduction for which it qualifies per (a)(6)(C) of this Section.; or ¢ 22

(B) homeless and incurs shelter costs, the household is eligible for the full standard homeless shelter deduction or for a prorated share of excess shelter deduction, whichever results in more food benefits for the household.¢ 23

(7) When the household includes a non-household member.When the household shares deductible expenses with a non-household member, the worker only deducts the amount the household actually pays or contributes toward household expenses with the exception of the utility expenses.When the household pays part of the utility expenses, the household is allowed the full utility standard deduction for which it qualifies, per (a)(6)(C) of this Section.When the payments or contributions cannot be differentiated, the worker prorates the expenses evenly among persons actually paying or contributing to the expense and deducts only the household's pro rata share with the exception of the utility expenses. ¢ 24

INSTRUCTIONS TO STAFF 340:50-7-31

Revised 10-2-19

1.The worker enters the total verified monthly allowable medical expenses in the Family Assistance/Client Services (FACS) Expense tab "Elderly/Disabled Medical Expense."The computer subtracts $35 from the worker entered medical expenses to arrive at the household's medical expense deduction.The worker documents allowable expenses in FACS case notes.

2.These charges may also include, but are not limited to, office calls, hospital visits, house calls, special treatments, and chiropractic services.

3.Such costs may include, but are not limited to, room and board charges, drugs and medical supplies, therapy, surgery, and tests.

4.Over-the-counter medication must be a recommended part of the prescribed treatment plan, such as aspirin for arthritics.Medical supplies include, but are not limited to:

(1) needles and syringes used for insulin injection or other prescription medication;

(2) bandages and gauze for surgical patients; and

(3) the cost of crutches, wheelchairs, hospital beds, colostomy bags, and portable oxygen.

5.Some health insurance policies cover household members who are not entitled to a medical deduction as well as those who are.When the portion of the premium paid for elderly or disabled members cannot be determined, the premium must be prorated among all members included on the policy.The prorated amount for one member must be multiplied by the number of elderly or disabled members.The resulting amount is considered a medical cost.

6.Other corrective devices are corrective braces worn on the limbs and braces worn on the teeth for orthodontic purposes.The cost of hearing aid batteries is considered a medical expense.

7.Contact lenses prescribed by an ophthalmologist or optometrist are considered a medical expense.

8.The elderly or disabled member must provide proof that medical treatment occurred and receipts verifying the lodging expense.The person must verify transportation expenses when the person does not use his or her own car.Allowed lodging costs do not include meals or other incidentals.

9.The worker must verify the amount of any deductible medical expenses before allowing the expense at certification.At certification renewal, when the household reports its medical expenses have not changed or have changed by less than $25, the household is not required to provide verification unless the information provided is incomplete, inaccurate, inconsistent, or outdated.Verification of other factors, such as if an expense is allowable or the eligibility of the person incurring the cost, is required only when questionable.

10.The worker explains the three available options, per (a)(3)(C)(i)(I)-(III) of this Section, to the client and documents the client's choice in FACS case notes.

11.(a) Transportation costs to and from the dependent care facility are based on the state's current mileage rate.

(b) Activity fees do not have to be mandatory but must be specific and identifiable.Examples of allowable activity fees may include the cost of an art class for an after school or adult day care program, additional equipment fees charged for a sports camp, or the cost of field trips.

12.When a client is asked to verify dependent care costs, the worker must document in FACS case notes why costs were considered questionable.

13.(a) For purposes of this policy, child support is any court-ordered money designated to be paid for the support of a child.This may include, but is not limited to:

(1) child support;

(2) child support arrearages;

(3) medical insurance or other health care premiums;

(4) child care obligations; or

(5) other obligations specified in individual court or administrative orders.

(b) Verification of the court-ordered amount is obtained along with verification of the actual support payments made each month.

(c) Child support also means money owed to a state for services provided for a child including, but not limited to, Temporary Assistance for Needy Families, SoonerCare (Medicaid) benefits, and foster care.

14.Examples of shelter expenses include, but are not limited to:

(1) shelter expenses paid in advance.The monthly shelter cost is allowed as if the payments were made monthly;

(2) down payments toward the purchase of a house.Down payments are not allowed as deductions as they are not continuing charges; or

(3) a shelter expense owed to someone outside of the household.This is an allowable shelter expense when the household makes a monetary payment.When someone outside of the household pays shelter expenses to the vendor, the expense is not allowable unless the payment is considered a loan.Per Oklahoma Administrative Code (OAC) 340:50-7-22(10)(A) and OAC 340:50-7-45(b)(2)(B), the household must provide proof of the loan.When the household provides proof, the expense is allowed as a shelter deduction and the payment is excluded as income.

15.These types of shelter expenses may be billed less often than monthly and may be averaged over the interval between scheduled billings.For example, property taxes billed and paid yearly may be averaged over a 12-month period.

16.(a) The worker enters one of the four homeless shelter codes in the Case Information tab 'shelter type' field, Information Management System (IMS) block A23 of the Family Assistance/Client Services Interview Notebook:A, B, C, or D.The worker also enters 'yes' or 'no' in the 'homeless shelter costs' field of the FACS Shelter Tab, IMS block C61 to indicate whether the household has shelter costs associated with being homeless.When the answer is:

(1) 'no,' the worker enters zero in 'shelter cost' field, IMS block 54 and 'N' in the 'utility indicator' field, IMS block 59 of the FACS Shelter Tab; or

(2) 'yes,' the worker enters the claimed shelter expense in the 'shelter cost' field, IMS block 54 and when the household claims utility costs, the applicable utility indicator in the 'utility indicator' field, IMS block 59 of the FACS Shelter Tab.The system calculates the household's income and allows the shelter deduction that results in the most food benefits for the household.

(b) Example:The client is interviewed and claims to be homeless as he resides in his car.He claims his $200 car payment as shelter costs.He also states he has a cell phone cost.The worker enters 'D' in the Case Information tab 'Shelter' field, IMS block A23 and 'yes' or 'no' in the 'homeless shelter costs' field of the FACS Shelter Tab, IMS block C61.Then the worker enters $200 in the 'shelter cost' field, IMS block C54 and 'T' in the 'utility indicator' field, IMS block 59 of the FACS Shelter Tab.The system calculates the correct shelter deduction for the household, the $200 car payment or the $148 standard homeless shelter deduction.Once the case clears, the correct shelter cost will show in IMS.

17.(a)To use the standard utility allowance (SUA) to calculate shelter costs, the utility charges for heating or cooling costs must be separate from the household rent or mortgage costs and actually incurred by the household.

(1) Cooling costs are limited to operation of room air conditioners and central air conditioning systems.

(2) Heating costs may be represented by a furnace, wood stove when wood is purchased, fireplace, or electrical or kerosene space heater, when the space heater is used as the primary source of heat.

(b) The worker assesses the household's eligibility for the SUA at each application, reapplication, and when the household moves.

(c) Shared utility costs examples among more than one household are given in (1) through (4) of this subsection.

(1) When more than one household shares the same living quarters and shares one or more of the utility costs billed separately from rent or mortgage payments, (A) or (B) of this paragraph applies.

(A) When one household's name is on the utility bill and it alone pays the bill, the worker allows the full appropriate utility standard for that household.

(B) When multiple households live in the same residence and share one or more of the utility costs billed separately from rent or mortgage payments, each household may receive the full appropriate utility standard regardless of whose name is on the bill.

(2) When two or more families share a meter but have separate living quarters and the utility bill is addressed to only one family, the worker accepts the unaddressed household's statement of liability for the expense unless it is questionable.

(3) Households residing in low-income housing or other rental units with utilities included in the rent, but are liable for excess utilities are entitled to the basic utility allowance (BUA).

(4) When a rental household is billed monthly by the landlord for actual usage of heating or cooling expense as determined through individual metering or by a utility company bill, the household is entitled to the SUA.When the landlord bills the household for actual usage of utilities other than heating or cooling, the household is entitled to the BUA.

(d) Refer to the example in Instructions to Staff (ITS) # 19 of this Section when the household contains a disqualified member and ITS # 20 of this Section when the household contains a non-household member.

18.When the household's only phone is a cellular phone, the phone standard is given.

19.Households maintaining two residences are allowed deductions for both residences when they meet this criterion.

20.For example, rent due each month is included in the household's shelter costs, even when the household has not yet paid the expense.Amounts carried forward from past billing periods are not deductible even when included in the most recent billing and actually paid by the household.

21.For example, the portion of rent or utility covered by excluded vendor payments or medical costs reimbursed by insurance is not calculated as part of the household's shelter cost or medical expenses.After verifying the amount covered by an excluded vendor payment or insurance reimbursement, the worker deducts the portion of the expense owed by the household.

22.For example, when the household size is four, including the disqualified household member, the rent is $400, and the household pays heating and cooling costs, the worker divides the rent by four and enters $300 in the 'shelter cost' field C54 and S in the 'utility indicator' field C59 of the FACS Shelter tab.

23.Example: The household consists of two adults, one is an ineligible alien.The household claims it is homeless and incurs shelter cost of $300 and no utility costs.The eligible household member may receive the full-standard homeless shelter deduction or half of the claimed shelter costs totaling $150.The worker enters $150 in the 'shelter cost' field, IMS block C54, and 'N' in the 'utility indicator' field, IMS block 59, of the FACS Shelter tab.Once the case is saved and cleared, the correct shelter deduction will show in IMS.

24.For example, when the client states the food benefit household and the non-household member each pay half of the $400 rent and half of the utility expenses that include heating and cooling, the worker enters $200 in the 'shelter cost' field C54 and S in the 'utility indicator' field C59 of the Family Assistance and Client Services Shelter tab.

SUBCHAPTER 9. ELIGIBILITY AND BENEFIT DETERMINATION PROCEDURES

340:50-9-5. Changes after application and during the certification period

Revised 10-2-19

(a) Change reporting requirements.Section 273.12 of Title 7 of the Code of Federal Regulations (7 C.F.R. § 273.12) contains change reporting requirements after application and during the certification period described in (a) through (i) of this Section.

(b) Applicant households.Applicant households must report all changes related to their food benefit eligibility and benefit amount.Households must report changes that occur after the interview but before the date of the notice of eligibility, within 10-calendar days of the date of the notice. ¢ 1

(c) Annual reporting households.Annual reporting households are households in which all adult members are elderly or disabled with no earned income. ¢ 2

(1) Certification period.A 24-month certification period is automatically assigned to annual reporting households.Annual reporting households must complete a mid-certification renewal between certification periods to report current household circumstances.

(2) Change reporting between renewal periods.Between the mid-certification renewal and certification renewal reporting months, the household must report gross income changes when the household's income exceeds the maximum gross income scale for household size shown on Form 08MP006E, Information for Benefit Renewal, and when the household wins substantial lottery or gambling winnings as defined, per 7 C.F.R. § 273.11(r) and Oklahoma Administrative Code (OAC) 340:50-7-1, within 10-calendar days of receipt of the first payment attributable to the change.¢ 3The maximum gross income scale is based on 130 percent of the monthly poverty income guidelines.

(3) Action taken on reported changes.The worker must act on all changes reported by households. ¢ 4

(A) The computer system determines if the change results in an increase, decrease, or no change in benefits.

(B) Between the mid-certification renewal and certification renewal months, the changes the worker makes do not decrease or close benefits until the mid-certification renewal is due unless the:

(i) household's income increase exceeds the maximum gross income scale for household size shown on Form 08MP006E; ¢ 3

(ii) household requested benefit closure;

(iii) worker has information about the household's circumstances considered verified upon receipt, per (g) of this Section; or

(iv) a household member is identified as a disqualified or ineligible person, per 7 C.F.R. § 273.12(a)(5)(vi) and Oklahoma Administrative Code (OAC) 340:50-5-10.1; or

(v) the worker verifies the household won substantial lottery or gambling winnings as defined, per 7 C.F.R. § 273.11(r) and OAC 340:50-7-1.

(C) The computer system applies all changes that increase benefits.Before entering a change that increases benefits, verification supporting the change must be provided, when required. ¢ 5

(d) Mid-certification renewal for annual reporting households.Annual reporting households are sent notification in the 11th month of certification that the mid-certification renewal is due.The notice explains methods the household may choose to complete the renewal and required verification needed. ¢ 6An interview is not required.

(1) When the mid-certification renewal is due.The household must complete the benefit renewal and provide required verification by the last day of the 12th month of certification.

(2) Completion of mid-certification renewal.The worker reviews benefit renewal information and verification provided to determine completeness and continued eligibility.¢ 7

(A) When the renewal is complete and the household remains eligible, the worker acts on all reported changes and the computer system applies any increase or decrease in benefits.

(i) When the household fails to provide sufficient information regarding a deductible expense requiring verification, the worker processes the mid-certification renewal without regard to the deduction.

(ii) When benefits are decreased, an advance notice is sent, per the Oklahoma Department of Human Services (DHS) Appendix B-2, Deadlines for Case Actions.

(B) When the household is no longer eligible, the worker closes food benefits effective the next advance-notice deadline date, per DHS Appendix B-2.

(C) When the renewal is incomplete, the computer system closes food benefits effective the next advance-notice deadline date, per DHS Appendix B-2. ¢ 8

(3) When benefits may be reopened.Food benefits may be reopened following closure when criteria is met per (j) of this Section.

(e) Semi-annual reporting households.Food benefit households are considered semi-annual reporting households unless they meet criteria per (b) or (g) of this Section.

(1) Certification period.A 12-month certification period is automatically assigned to semi-annual reporting households. ¢ 9

(2) Change reporting between renewal periods.Between the mid-certification renewal and certification renewal reporting months, the household must report when:

(A) the household's gross income exceeds the maximum gross income scale for household size shown on Form 08MP006E and when the household wins substantial lottery or gambling winnings as defined, per 7 C.F.R. § 273.11(r) and OAC 340:50-7-1 within 10-calendar days of receiving the first payment attributable to the change.¢ 3The maximum gross income scale is based on 130 percent of the monthly poverty income guidelines; and

(B) a decrease in work hours below an average of 20 hours per week or 80 hours per month occurs for any household member meeting the able-bodied adults without dependents (ABAWD) work rules, per OAC 340:50-5-100 by the 10th of the following month. ¢ 10

(3) Action taken on reported changes.The worker must act on all changes reported by households. ¢ 4

(A) The computer system determines if the change results in an increase, decrease, or in no change in benefits.

(B) Between mid-certification renewal and certification renewal months, the changes the worker makes do not decrease or close food benefits until the mid-certification renewal is due unless:

(i) the household's income increase exceeds the maximum gross income scale for household size shown on Form 08MP006E; ¢ 3

(ii) the household requested benefit closure;

(iii) the worker has information about the household's circumstances considered verified upon receipt, per (h) of this Section;

(iv) an ABAWD must be removed from the food benefit household because he or she does not meet the ABAWD work rule, per OAC 340:50-5-100; ¢ 10

(v) a household member is identified as a disqualified or ineligible person, per 7 C.F.R. § .27312(a)(5)(vi) and OAC 340:50-5-10.1; or

(vi) a household member is identified as failing to meet work registration requirements, per OAC 340:50-5-85 through OAC 340:50-5-87; or

(vii) the worker verifies the household won substantial lottery or gambling winnings as defined, per 7 C.F.R. § 273.11(r) and OAC 340:50-7-1.

(C) The computer system applies all changes that increase benefits.Before entering a change that increases benefits, verification supporting the change must be provided, when required. ¢ 5

(f) Mid-certification renewal for semi-annual reporting households.Semi-annual reporting households are sent notification in the fifth month of certification that the mid-certification renewal is due.¢ 6An interview is not required.

(1) When the mid-certification renewal is due.The household must complete the benefit renewal and provide required verification by the last day of the sixth month of certification.

(2) Completion of mid-certification renewal.The worker reviews benefit renewal information and verification provided to determine completeness and continued eligibility.¢ 7

(A) When the renewal is complete and the household remains eligible, the worker acts on all reported changes and the computer system applies any increase or decrease in benefits.

(i) When the household fails to provide sufficient information regarding a deductible expense requiring verification, the worker processes the mid-certification renewal without regard to the deduction.

(ii) When benefits are decreased, the worker sends an advance notice, per DHS Appendix B-2, Deadlines for Case Actions, deadline dates.

(B) When the household is no longer eligible, the worker closes food benefits effective the next advance-notice deadline date, per DHS Appendix B-2.

(C) When the renewal is incomplete, the computer system closes food benefits effective the next advance-notice deadline date, per DHS Appendix B-2. ¢ 8

(3) When benefits may be reopened.Food benefits may be reopened following closure when criteria is met per (i) of this Section.

(g) Change reporting households.Change reporting households are assigned a certification period other than 12 or 24 months.These households are required to report changes within 10-calendar days of when the change occurred.

(1) Household characteristics.Households not approved for a 12- or 24-month certification period include households approved for:

(A) expedited services for one or two months because the interview and/or verification were postponed, per OAC 340:50-3-2; and

(B) a three- or four-month certification period because the household includes one or more ABAWDs that do not meet the work rule, per OAC 340:50-5-100.

(2) Required change reporting.These households must report changes in:

(A) sources of income;

(B) unearned income of $100 per month or more;

(C) earned income of more than $100 per month;

(D) household composition, such as an addition or loss of a household member;

(E) residence and shelter costs;¢ 11

(F) the legal obligation to pay child support; and

(G) the work hours of an ABAWD subject to benefit time limits, per OAC 340:50-5-100 when they fall below 20 hours per week; and

(H) resources when the household wins substantial lottery or gambling winnings as defined, per 7 C.F.R. § 273.11(r) and OAC 340:50-7-1.

(3) Action taken on case changes.The worker must act on changes reported by the household within 10-calendar days of the date the household reported the change and provided necessary verification.¢ 12

(A) When the household fails to report a change within the 10-calendar day period and, as a result, receives benefits to which it is not entitled, an overpayment claim is referred to Adult and Family Services (AFS) Benefit Integrity and Recovery, per OAC 340:50-15.

(B) When the worker fails to take timely action on a reported change and benefits are lost, the worker supplements the household's food benefits.

(4) Changes that increase benefits.When the household reports a change that increases benefits the household must verify the information before the worker makes the change.The worker gives the household 10-calendar days to verify the information.¢ 13

(5) Changes that decrease or close benefits.When the household reports a change in household circumstances that decreases or closes food benefits, the worker gives or sends the household Form 08AD092E, Client Contact and Information Request, giving the household 10-calendar days to provide verification of the change.When the household provides required verification, the worker reduces or closes food benefits based on the verification provided.When the household does not provide required verification, the worker closes the food benefits based on the household's failure or refusal to provide verification.

(A) When a household's benefit decreases or closes, an advance notice of adverse action is required unless exempt from such notice for a reason listed in (i) or (ii) of this subparagraph.Per 7 C.F.R. § 273.13, advance notice of adverse action is considered timely when the notice is mailed at least 10-calendar days before the action becomes effective.The household retains its right to a fair hearing and continuation of benefits when a fair hearing is requested within 10-calendar days of the change notice.An adverse action notice may be mailed just prior to the date the household receives or would have received benefits when the:

(i) DHS receives a clear written statement signed by a responsible household member:

(I) stating the household no longer wishes to receive food benefits; or

(II) giving information that requires closure or reduction of food benefits and stating that the household understands the food benefit will be reduced or closed; or

(ii) worker closes or reduces food benefits per notice requirements at (k)(3)(A) of this Section.¢ 14

(B) When an advance notice is required, the benefit decrease or closure is effective the next advance notice deadline date, per DHS Appendix B-2.When the household reports a change:

(i) 10-calendar days or more before the advance-notice deadline, per DHS Appendix B-2, the worker decreases or closes the food benefit effective the first of the following month; or

(ii) less than 10-calendar days before the advance-notice deadline, per DHS Appendix B-2, the worker must take action before the advance-notice deadline the following month.

(C) When a reported change increases food benefits, the worker makes the change by the non-advance-notice deadline date, per DHS Appendix B-2.

(h) Changes considered verified upon receipt.Verified upon receipt means the information is not questionable and the provider is the primary source of the information.For example, when DHS receives Social Security and Supplemental Security Income verification through data exchange with the Social Security Administration (SSA), it is considered verified upon receipt because SSA is the primary source.When the worker receives information considered verified upon receipt, he or she makes the change within 10-calendar days of notification using DHS Appendix B-2 deadline dates.¢ 15

(i) Required action on unclear information.During the certification period, the worker may obtain unclear information about a household's circumstances that may affect the household's continued eligibility or benefit amounts.The worker may receive the unclear information from a third party, such as a data exchange discrepancy, an employer, or a person claiming knowledge of the household's circumstances.Unclear information is information that is not verified or is verified but the worker needs additional information before acting on the change.

(1) Per 7 C.F.R. § 273.12(c)(3)(i), when the worker receives unclear information in a non-report month for semi-annual or annual reporting households or any month for change reporters, he or she sends Form 08AD092E to the household, to inform it of required verification or actions.The household must clarify verify its circumstances within 10-calendar days only when the unclear information:

(A) significantly conflicts with the information used at the time of the certification, indicating the household may have failed to report eligibility information at application; or¢ 16

(B) is fewer than 60-calendar days old, relative to the current participation month and when true, must be reported under the household's reporting responsibilities.¢ 17

(2) When the household provides the requested verification in a non-report month, the worker determines whether to take action, per requirements at (c)(3) and (e)(3) of this Section.

(3) When the worker sends Form 08AD092E, per (i)(1)(A) or (B) of this Section, and the household does not respond or responds but refuses to provide sufficient information to clarify its circumstances, the worker closes the household's food benefits effective the next advance-notice deadline date, per DHS Appendix B-2;

(4) Per 7 C.F. R. § 273.12(c)(3)(iii), when the worker receives a data match that indicates a household member may have died or may be incarcerated for more than 30-calendar days, the worker sends Form 08AD092E to the household notifying it of the discrepancy and requesting information regarding the household member.¢ 18

(A) When the household is a change reporting household and:

(i) fails to respond to Form 08AD092E or responds but refuses to provide sufficient information to clarify the person's household status, the worker closes the household's food benefits;

(ii) responds and verifies the person is not dead or incarcerated, no action is taken; or

(iii) responds and confirms the accuracy of the data exchange information, the worker removes the person from the food benefit and determines if an overpayment referral is needed, per OAC 340:50-15.

(B) When the household is an annual or semi-annual reporting household and:

(i) fails to respond to Form 08AD092E or responds but refuses to provide sufficient information to clarify the person's household status, the worker removes the person and his or her income from the household and adjusts the food benefits;

(ii) responds and verifies that the person did not die or is not incarcerated, no action is taken; or

(iii) responds and confirms the accuracy of the data exchange information, the worker removes the person and his or her income from the household, adjusts the food benefits, and determines if an overpayment referral is needed, per OAC 340:50-15.

(j) When benefits may be reopened following closure.The food benefit may be reopened following closure using current eligibility information, when:

(1) DHS did not administer policy and procedures correctly.The food benefit is reopened effective the first day of the month of closure;¢ 19

(2) the household fails to complete the mid-certification renewal timely, but provides all required verification by the first day of the month of closure.The food benefit is reopened effective the first day of the month of closure;¢ 20or

(3) the household fails to complete the mid-certification renewal timely, but provides all required verification by the last day of the month of closure.The food benefit is reopened and prorated from the date the household completes the mid-certification renewal and provides all required verification.¢ 20

(k) Notice requirements.DHS is required to send a notice to the household when food benefits increase, reduce, or close.

(1) Advance notice of adverse action required.Prior to reducing or closing food benefits during the certification period, per 7 C.F.R. § 273.13, the worker must provide timely advance notice unless circumstances described in (k)(2) or (3) of this Section occur.

(A) Advance notice of adverse action is considered timely when the notice is mailed at least 10-calendar days before the action becomes effective.Refer to DHS Appendix B-2 for advance notice processing deadlines.

(B) When the household reports a change:

(i) 10-calendar days or more before the advance notice of adverse action deadline, the worker decreases or closes the food benefit effective the first of the following month.For example, when the household reports a change on May 18th, the effective date of the change is June 1st; or

(ii) less than 10-calendar days before the advance notice of adverse action deadline, per DHS Appendix B-2, the worker decreases or closes the food benefit effective the first of the month after the following month.For example, when the household reports a change on May 25th, the effective date of the change action is July 1st.

(2) Notice requirement when benefits increase.When a reported change increases food benefits, the worker makes the change by the non-advance notice deadline date, per DHS Appendix B-2.When the change is reported after the non- advance notice deadline, the worker supplements food benefits.¢ 21

(3) Advance notice of adverse action not required.Advance notice of adverse action is not required for actions (A) through (H) of this paragraph, per 7 C.F.R. § 273.12(e) and 7 C.F.R. § 273.13(b).

(A) Mass changes.When DHS initiates mass changes because of changes or requirements in federal or state law, the computer system closes benefits by the non-advance-notice deadline, per DHS Appendix B-2.¢ 22In these situations, the individual notification requirement is waived and AFS mails generic notices to the affected households informing them of the changes that are about to be made.¢ 23

(B) Deceased household members.When the worker determines, based on reliable information, that all members of the household are deceased, the worker closes benefits by the non-advance-notice deadline, per DHS Appendix B-2.

(C) Moved out of state.When the worker determines, based on reliable information, the household moved out of state, the worker closes benefits by the non-advance-notice deadline, per DHS Appendix B-2.

(D) Unfinished issuance certification.When the unfinished issuance process is used at certification, the worker adjusts the benefit to take into account changes anticipated at the time of certification.The certification notice informs the household of all benefit changes included in this process.

(E) Disqualified household member.When the only household member is disqualified for an intentional program violation or fraud, per OAC 340:50-15-25, food benefits are closed by the non-advance-notice deadline, per DHS Appendix B-2.When there is more than one person in the household, the remaining household members' benefits are reduced or closed because of that household member's disqualification by the non-advance-notice deadline, per DHS Appendix B-2.

(F) Facility loses approval.When a household's food benefit closes because the drug or alcohol treatment center or group home facility where the household resides is no longer approved, the worker closes benefits by the non-advance-notice deadline, per DHS Appendix B-2.

(G) Household provides written statement.The worker closes or reduces benefits by the non-advance-notice deadline, per DHS Appendix B-2, when the household provides a written statement:

(i) stating the household no longer wants to receive food benefits; or

(ii) requesting closure or reduction in food benefits to avoid or repay an overpayment.

(H) Case transfer.When the worker closes food benefits in one case in order to transfer the food benefits to another case without a decrease or disruption in benefits, the worker closes benefits by the non-advance-notice deadline, per DHS Appendix B-2.

(l) Action on changes when fair hearings are requested.When a household requests a fair hearing within 10-calendar days of the date shown on an adverse action notice, the worker must reopen or restore food benefits to the previous level pending the outcome of the hearing unless the household specifically waives continuation of benefits, per 7 § C.F.R. 273.15(k).Refer to OAC 340:2-5 for fair hearing procedures.

INSTRUCTIONS TO STAFF 340:50-9-5

Revised 10-2-19

1.At the interview, the worker must give or send each household, Forms 08FB038E, Changes in Household Circumstances, and 08MP006E, Information for Benefit Renewal.

(1) The worker puts the local county office's toll-free phone number on Form 08FB038E and explains the household may call or use Form 08FB038E to report household changes.A change is considered reported the date the worker receives Form 08FB038E or is notified of the change by phone or personal contact.

(2) The worker uses Form 08MP006E to explain benefit renewal requirements, time frames, change reporting rules, and if the household is an annual or semi-reporting household.

(3) After certification, the household receives a notice explaining when the household's mid-certification renewal is due and change reporting rules.

2.(a) The worker is responsible for identifying the household's reporter status and explaining benefit renewal requirements at application and certification renewal.

(b) The computer system recognizes the annual report status, automatically assigns a 24-month certification period, and identifies the household as an annual reporting household by entering "A" in the reporter status field.

3.When the:

(1) household reports a change in income that exceeds income guidelines, per Oklahoma Department of Human Services (DHS) Appendix C-3, Maximum Food Benefit Allotments and Standards for Income and Deductions, in a non-report month, the worker must request and receive verification the person already received income from the source before closing the household's food benefits; and

(2) income source is from a new job, the verification must show the person received at least one full paycheck before the worker closes the food benefits.When the household does not provide the verification, the worker documents the new income in Family Assistance/Client Services (FACS) case notes and addresses the income at the next mid-certification renewal or certification renewal.

4.When the household reports the change on Form 08FB038E, the worker must provide the household with another Form 08FB038E.

5.For example, income changes must always be verified, but a shelter cost change does not need to be verified unless it is questionable.

6.(a) The household receives a computer-generated notice titled, 'Renew My Benefits.'The notice informs the household when the renewal is due, methods the household may choose to complete the renewal, and required verification.

(b) Methods the household may use to complete the mid-certification renewal include:

(1) submitting the benefit renewal electronically by:

(A) accessing www.okdhslive.org; or

(B) getting help from the DHS or a community partner to access www.okdhslive.org;

(2) downloading Form 08MP004E, Renew My Benefits, from DHS - Forms and Applications for Service and completing, signing, and delivering, mailing, or faxing it to DHS;

(3) going into the local county office for assistance; or

(4) phoning 405-487-5483.

7.(a) Once the household submits the mid-certification renewal, the information is analyzed to determine:

(1) what changes occurred;

(2) if the household signed the mid-certification renewal electronically or on the paper benefit renewal form;

(3) if the household provided all required verification; and

(4) what changes must be made on the computer system.

(b) After the worker analyzes the mid-certification renewal, he or she updates the benefit report action field to indicate the benefit renewal status and the action date using Systems Help Instructions located on Quest.The mid-certification renewal is coded:

(1) incomplete, when the household failed to sign the mid-certification renewal or did not provide all required verification;

(2) ready to work, when the household signed the mid-certification renewal and provided all required verification, but the worker has not completed the mid-certification renewal; or

(3) complete, after the worker:

(A) evaluates information contained on the mid-certification renewal, the verification provided, and on data exchange screens for changes;

(B) enters all mid-certification renewal information including changes, in the FACS Interview and Eligibility Notebooks; and

(C) documents changes made and how continued eligibility was determined in FACS Case Notes.

(c) Case Worker Activity (CWA) reports are available to help workers track the status of pending mid-certification renewals.Information regarding each CWA report is available on the Infonet by clicking on the Job Functions tab, choosing Quest, and typing CWA Specifications in the search field.

8.At negative action deadline, mid-certification renewals not coded as complete, are automatically closed the next effective date with reason code 36S.

(1) When the household submits an incomplete renewal and time permits, the worker may attempt phone contact to inform the household of information needed to complete the renewal.The worker does not send Form 08AD092E, Client Contact and Information Request, unless 10- or more calendar days remain before the negative action deadline, per DHS Appendix B-2, Deadlines for Case Action.

(2) Prior to deadline, the worker records what information is lacking in the FACS Case Notes and any attempts made to obtain needed information.

9.(a) The worker is responsible for identifying the household's reporter status and explaining benefit renewal requirements at application and certification renewal.

(b) The computer recognizes the semi-annual status, automatically assigns a 12-month certification period, and identifies the household as a semi-annual reporting household by entering "S" in the reporter status field.

10.When the household contains an able-bodied adult without dependents (ABAWD), the worker informs the household at the certification and certification renewal interviews of the ABAWD work rule and change reporting requirements.When an ABAWD's work hours decrease below 80 hours per month, he or she must report the decrease by the 10th of the following month.

(1) When the household reports the ABAWD's work hours decreased, the worker determines when the work hours decreased below an average of 20 hours per week or 80 hours per month.

(2) When the worker determines the ABAWD is eligible to receive the initial three 'free' months, food benefits continue.The worker completes a desk review during the third month prior to advance notice deadline to determine if the ABAWD meets work requirements or must be removed from the food benefit.

(3) When the worker determines the ABAWD received all food benefits for which he or she is eligible, the worker removes the ABAWD from the food benefit effective the next advance-notice deadline date, per DHS Appendix B-2.When the ABAWD is the only person in the food benefit household, the worker closes the food benefit effective the next advance-notice deadline date, per DHS Appendix B-2.

11.When the household reports an address change, the worker must offer voter registration services, per Oklahoma Administrative Code (OAC) 340:65-11-3.

12.When the household reports a change, the worker determines if the change affects the household's eligibility or the food benefit amount.The worker documents all reported changes in FACS Case Notes.When the household reports the change on Form 08FB038E, the worker must provide the household with another Form 08FB038E.

13.(a) When a change is reported, the worker:

(1) makes the change effective no later than the first issuance to be delivered 10-calendar days after the date the household reports or verifies the change, whichever is later; and

(2) issues a supplement when appropriate.

(b) When the change increases the food benefit and the household:

(1) provides the required verification within 10-calendar days of reporting the change, the worker issues the supplement by the 10th calendar day following the date the change was reported, or the date the regular roll benefit is to be received, whichever is later;

(2) provides the required verification within 10-calendar days prior to the regular roll issuance, but later than the 10th calendar day, the worker issues the supplement within 10-calendar days of the date the household provides the verification; or

(3) does not provide the required verification prior to the regular roll issuance date, the worker does not issue a supplement.

14.A notice of adverse action is computer-generated except when the reason for the change is death, code 01, or other, code 69.When code 69 is used, the worker hand issues Form 08MP038E, Client Notice of Action.

15.(a) Types of information considered verified upon receipt include, but are not limited to:

(1) Beneficiary and Earnings Data Exchange System (BENDEX), from the Social Security Administration (SSA);

(2) Supplemental Security Income (SSI)/State Data Exchange System (SDX), from the SSA;

(3) Systematic Alien Verification for Entitlements (SAVE), from the United States Citizenship and Immigration Services (USCIS);

(4) Unemployment Insurance Benefits (UIB), from the Oklahoma Employment Security Commission (OESC);

(5) workers' compensation documents from Workers' Compensation Court;

(6) changes in household composition reported by the household; and

(7) actions processed for food benefits or other DHS programs affecting food benefit expenses, such as:

(A) a decrease in the child care family share co-payment, resulting in a smaller dependent care deduction; or

(B) the determination of an intentional program violation.

(b) Examples of information that are NOT verified upon receipt are:

(1) Oklahoma Wage Link (OWC and OWL), quarterly wage match data, unless criteria per (i)(2) and (4) of this Section applies;

(2) wage data obtained from BENDEX, unless criteria per (i)(2) and (4) of this Section applies;

(3) New Hire List (NHL) matches.For example, an NHL data exchange message is received during a non-report month indicating a household member started working.When counted, the income would decrease the food benefit.However, because the information is NOT considered verified upon receipt, the worker does not take action to decrease food benefits in a non-report month, unless the NHL screen shows the person's salary or rate of pay and scheduled hours and the projected monthly income may make the household over income, per DHS Appendix C-3 or criteria per (i) of this Section applies;

(4) changes in shelter and utility costs.For example, when the client reports the rent decreased from $1000 to $600 per month in a non-report month it does not cause a decrease in benefits, as this information is NOT considered verified upon receipt; and

(5) a prisoner's (PRS) or date of death (DOD) data match from SSA as information may be old or incorrect.This is considered unclear information per (i)(4) of this Section.

16.Examples of unclear information that significantly conflicts with information used at certification include when the worker receives:

(1) data exchange information indicating a household member started a new job or was working at a job the month before or the month of application and did not report the information; or

(2) information from the client's neighbor who reports that the client's husband is working and never left the home as reported by the client.

17.(a) Examples of when the worker is required to send Form 08AD092E to the household to clarify its circumstances because the unclear information is fewer than 60-calendar days old include, when:

(1) the client reports that a household member who is an able-bodied adult without dependents stopped working or reduced his or her hours below 20 hours per week;

(2) DHS receives a State New Hire (SNH) G1DX discrepancy on July 1, 2018, showing that a household member began working on May 5, 2018, and the employee detail page of the SNH screen indicates the household member's earnings place the household's income above the maximum income standard, per DHS Appendix C-3.This situation meets the 60-calendar day requirement even when the worker does not review the discrepancy and send Form 08AD092E until July 15th, because the discrepancy was transmitted to DHS within 60-calendar days of the employment start date; (3) an acquaintance of the client calls on June 3, 2018, to report that the client started working 40 hours per week at a job on April 30, 2018, and makes $15 per hour.The caller would need to provide enough specifics, such as the employer's name and where the business is located, in order for the worker to act on the information.The client must verify if he or she works at the reported business, since the report was received within 60-calendar days of the reported start date and, when true, the reported income would make the client ineligible for food benefits; or

(4) the client calls or completes Form 08FB038E to report starting a new job and the reported income would make the household over income for food benefits.The client must verify the income after receiving a full pay check since the job started within 60-calendar days of the report date.

(b) Examples of unclear information that do not require the worker to send Form 08AD092E to request information are included in (1) and (2) of this subsection.The worker must document the circumstances in FACS case notes as a reminder to verify the information at the next mid-certification or certification renewal.

(1) A semi-annual reporting client reports on May 1, 2018, that she started working 30 hours per week at $10 per hour on April 10, 2018.Since the reported income does not make the client ineligible for food benefits, the household is not required to verify the income until the next mid-certification renewal or certification renewal is due.

(2) DHS receives a SNH G1DX discrepancy on June 10, 2018, showing the client started working on March 28, 2018, and the employer detail page indicated the earnings may place the household above the maximum income standard, per DHS Appendix C-3.The worker does not require the client to verify the income in a non-report month because the unclear information was not received within 60-calendar days of the client's start date.

18.PRS and DOD data matches appear as alerts on G1DX.Whenever the worker receives one of these alerts, he or she must attempt to confirm the accuracy of the information before taking action.SSA receives and sends information to DHS:

(1) regarding PRS data matches from some, but not all, prisons, jails, and other penal institutions or correctional facilities, certain mental health institutions, andvarious third parties including media sources.SSA maintains this data to identify Supplemental Nutrition Assistance Program (SNAP) clients who 'are currently' or 'have been incarcerated.'The worker accesses the incarceration dates by typing PRS next to the SSN on the G1DX results and hitting enter.A detail screen displays the incarceration dates; and

(2) regarding DOD data matches from local State Departments of Health.The G1DX screen displays date of death for persons reported as deceased by SSA, but who appear to be receiving DHS benefits.

19.When the food benefit closes because of administrative error, the worker:

(1) reopens the FACS SNAP tab using "R" in the Action Taken field and "18A" in the Reason field;

(2) enters any required changes; and

(3) updates the benefit and status fields in the Household tab for persons included in the benefit household.

20.(a) When the food benefit closes because the household did not complete the mid-certification renewal timely, the worker:

(1) reopens the SNAP tab using "R" in the Action Taken field, "18O" in the Reason field, and the date the mid-certification renewal was completed in the Effective Date field;

(2) enters any required changes; and

(3) updates the benefit and status fields in the Household tab for persons included in the benefit household.

(b) When the household waits until after the last day of the month of closure to provide needed information, the household must reapply.

21.The worker uses the FSSR transaction to issue a supplement.To access the FSSR screen, the worker types M space FSSR in the information management system (IMS) and hits enter.The worker enters the appropriate case information on the Request for Supplemental/Retro SNAP benefits screen and hits enter to issue the supplement.

22.Examples of mass changes include changes in:

(1) the maximum income limitation or basis of issuance tables;

(2) cost-of-living increases in SSA, Veteran, Railroad Retirement, or SSI benefits; and

(3) Temporary Assistance for Needy Families cash assistance or State Supplemental Payments.

23.AFS SNAP staff may also announce SNAP changes through the media so the general public and food benefit recipients are notified.