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e-CFR=20 Data is current as of July 1, 2008


Title 7:=20 Agriculture
PART 273=97CERTIFICATION OF ELIGIBLE = HOUSEHOLDS=20

Browse=20 Previous | Browse=20 Next

=A7 273.7   Work provisions.

(a) Work requirements. (1) As a condition of eligibility = for=20 food stamps, each household member not exempt under paragraph = (b)(1) of=20 this section must comply with the following Food Stamp Program = work=20 requirements:

(i) Register for work or be registered by the State agency at = the time=20 of application and every 12 months after initial registration. The = member=20 required to register need not complete the registration form.

(ii) Participate in a Food Stamp Employment and Training = (E&T)=20 program if assigned by the State agency, to the extent required by = the=20 State agency;

(iii) Participate in a workfare program if assigned by the = State=20 agency;

(iv) Provide the State agency or its designee with sufficient=20 information regarding employment status or availability for = work;

(v) Report to an employer to whom referred by the State agency = or its=20 designee if the potential employment meets the suitability = requirements=20 described in paragraph (h) of this section;

(vi) Accept a bona fide offer of suitable employment, as = defined in=20 paragraph (h) of this section, at a site or plant not subject to a = strike=20 or lockout, at a wage equal to the higher of the Federal or State = minimum=20 wage or 80 percent of the wage that would have governed had the = minimum=20 hourly rate under section 6(a)(1) of the Fair Labor Standards Act = been=20 applicable to the offer of employment.

(vii) Do not voluntarily and without good cause quit a job of = 30 or=20 more hours a week or reduce work effort to less than 30 hours a = week, in=20 accordance with paragraph (j) of this section.

(2) The Food and Nutrition Service (FNS) has defined the = meaning of=20 =93good cause,=94 and =93voluntary quit,=94 and =93reduction of = work effort=94 as used=20 in paragraph (a)(1)(vii) of this section. See paragraph (i) of = this=20 section for a discussion of good cause; see paragraph (j) of this = section=20 for a discussion of voluntary quit and reduction of work = effort.

(3) Each State agency will determine the meaning of any other = terms=20 used in paragraph (a)(1) of this section; the procedures for = establishing=20 compliance with Food Stamp Program work requirements; and whether = an=20 individual is complying with Food Stamp Program work requirements. = A State=20 agency must not use a meaning, procedure, or determination that is = less=20 restrictive on food stamp recipients than is a comparable meaning, = procedure, or determination under the State agency's program = funded under=20 title IV-A of the Social Security Act.

(4) Strikers whose households are eligible under the criteria = in=20 =A7273.1(e) are subject to Food Stamp Program work requirements = unless they=20 are exempt under paragraph (b)(1) of this section at the time of=20 application.

(5) State agencies may request approval from FNS to substitute = State or=20 local procedures for work registration for PA households not = subject to=20 the work requirements under title IV of the Social Security Act or = for GA=20 households. However, the failure of a household member to comply = with=20 State or local work requirements that exceed the requirements = listed in=20 this section must not be considered grounds for disqualification. = Work=20 requirements imposed on refugees participating in refugee = resettlement=20 programs may also be substituted, with FNS approval.

(6) Household members who are applying for SSI and for food = stamps=20 under =A7273.2(k)(1)(i) will have Food Stamp Program work = requirements=20 waived until they are determined eligible for SSI and become = exempt from=20 Food Stamp Program work requirements, or until they are determined = ineligible for SSI, at which time their exemptions from Food Stamp = Program=20 work requirements will be reevaluated.

(b) Exemptions from work requirements. (1) The following = persons=20 are exempt from Food Stamp Program work requirements:

(i) A person younger than 16 years of age or a person 60 years = of age=20 or older. A person age 16 or 17 who is not the head of a household = or who=20 is attending school, or is enrolled in an employment training = program, on=20 at least a half-time basis, is also exempt. If the person turns 16 = (or 18=20 under the preceding sentence) during a certification period, the = State=20 agency must register the person as part of the next scheduled=20 recertification process, unless the person qualifies for another=20 exemption.

(ii) A person physically or mentally unfit for employment. For = the=20 purposes of this paragraph (b), a State agency will define = physical and=20 mental fitness; establish procedures for verifying; and will = verify=20 claimed physical or mental unfitness when necessary. However, the = State=20 agency must not use a definition, procedure for verification, or=20 verification that is less restrictive on food stamp recipients = than a=20 comparable meaning, procedure, or determination under the State = agency's=20 program funded under title IV-A of the Social Security Act.

(iii) A person subject to and complying with any work = requirement under=20 title IV of the Social Security Act. If the exemption claimed is=20 questionable, the State agency is responsible for verifying the=20 exemption.

(iv) A parent or other household member responsible for the = care of a=20 dependent child under 6 or an incapacitated person. If the child = has his=20 or her 6th birthday during a certification period, the State = agency must=20 work register the individual responsible for the care of the child = as part=20 of the next scheduled recertification process, unless the = individual=20 qualifies for another exemption.

(v) A person receiving unemployment compensation. A person who = has=20 applied for, but is not yet receiving, unemployment compensation = is also=20 exempt if that person is complying with work requirements that are = part of=20 the Federal-State unemployment compensation application process. = If the=20 exemption claimed is questionable, the State agency is responsible = for=20 verifying the exemption with the appropriate office of the State=20 employment services agency.

(vi) A regular participant in a drug addiction or alcoholic = treatment=20 and rehabilitation program.

(vii) An employed or self-employed person working a minimum of = 30 hours=20 weekly or earning weekly wages at least equal to the Federal = minimum wage=20 multiplied by 30 hours. This includes migrant and seasonal farm = workers=20 under contract or similar agreement with an employer or crew chief = to=20 begin employment within 30 days (although this will not prevent=20 individuals from seeking additional services from the State = employment=20 services agency). For work registration purposes, a person = residing in=20 areas of Alaska designated in =A7274.10(a)(4)(iv) of this chapter, = who=20 subsistence hunts and/or fishes a minimum of 30 hours weekly = (averaged=20 over the certification period) is considered exempt as = self-employed. An=20 employed or self-employed person who voluntarily and without good = cause=20 reduces his or her work effort and, after the reduction, is = working less=20 than 30 hours per week, is ineligible to participate in the Food = Stamp=20 Program under paragraph (j) of this section.

(viii) A student enrolled at least half-time in any recognized = school,=20 training program, or institution of higher education. Students = enrolled at=20 least half-time in an institution of higher education must meet = the=20 student eligibility requirements listed in =A7273.5. A student = will remain=20 exempt during normal periods of class attendance, vacation, and = recess. If=20 the student graduates, enrolls less than half-time, is suspended = or=20 expelled, drops out, or does not intend to register for the next = normal=20 school term (excluding summer), the State agency must work = register the=20 individual, unless the individual qualifies for another = exemption.

(2)(i) Persons losing exemption status due to any changes in=20 circumstances that are subject to the reporting requirements of = =A7273.12=20 must register for employment when the change is reported. If the = State=20 agency does not use a work registration form, it must annotate the = change=20 to the member's exemption status. If a work registration form is = used, the=20 State agency is responsible for providing the participant with a = work=20 registration form when the change is reported. Participants are=20 responsible for returning the completed form to the State agency = within 10=20 calendar days from the date the form was handed to the household = member=20 reporting the change in person, or the date the State agency = mailed the=20 form. If the participant fails to return the completed form, the = State=20 agency must issue a notice of adverse action stating that the = participant=20 is being terminated and why, but that the termination can be = avoided by=20 returning the form.

(ii) Those persons who lose their exemption due to a change in=20 circumstances that is not subject to the reporting requirements of = =A7273.12=20 must register for employment at their household's next=20 recertification.

(c) State agency responsibilities. (1) The State agency = must=20 register for work each household member not exempted by the = provisions of=20 paragraph (b)(1) of this section. As part of the work registration = process, the State agency must explain to the individual the = pertinent=20 work requirements, the rights and responsibilities of = work-registered=20 household members, and the consequences of failure to comply. The = State=20 agency must provide a written statement of the above to each = individual in=20 the household who is registered for work. A notice must also be = provided=20 when a previously exempt individual or new household member = becomes=20 subject to a work requirement, and at recertification. The State = agency=20 must permit the applicant to complete a record or form for each = household=20 member required to register for employment in accordance with = paragraph=20 (a)(1)(i) of this section. Household members are considered to = have=20 registered when an identifiable work registration form is = submitted to the=20 State agency or when the registration is otherwise annotated or = recorded=20 by the State agency.

(2) The State agency is responsible for screening each work = registrant=20 to determine whether or not it is appropriate, based on the State = agency's=20 criteria, to refer the individual to an E&T program, and if=20 appropriate, referring the individual to an E&T program = component.=20 Upon entry into each component, the State agency must inform the=20 participant, either orally or in writing, of the requirements of = the=20 component, what will constitute noncompliance and the sanctions = for=20 noncompliance. The State agency may, with FNS approval, use intake = and=20 sanction systems that are compatible with its title IV-A work = program.=20 Such systems must be proposed and explained in the State agency's = E&T=20 State Plan.

(3) The State agency must issue a notice of adverse action to = an=20 individual, or to a household if appropriate, within 10 days after = learning of the individual's noncompliance with Food Stamp Program = work=20 requirements. The notice of adverse action must meet the = timeliness and=20 adequacy requirements of =A7273.13. If the individual complies = before the=20 end of the advance notice period, the State agency will cancel the = adverse=20 action. If the State agency offers a conciliation process as part = of its=20 E&T program, it must issue the notice of adverse action no = later than=20 the end of the conciliation period.

(4) The State agency must design and operate an E&T program = that=20 may consist of one or more or a combination of employment and/or = training=20 components as described in paragraph (e)(1) of this section. The = State=20 agency must ensure that it is notified by the agency or agencies = operating=20 its E&T components within 10 days if an E&T mandatory = participant=20 fails to comply with E&T requirements.

(5) Each component of the State agency's E&T program must = be=20 delivered through its statewide workforce development system, = unless the=20 component is not available locally through such a system.

(6) In accordance with =A7272.2(d) and =A7272.2(e) of this = chapter, the=20 State agency must prepare and submit an E&T Plan to its = appropriate=20 FNS Regional Office. The E&T Plan must be available for public = inspection at the State agency headquarters. In its E&T Plan, = the=20 State agency will detail the following:

(i) The nature of the E&T components the State agency plans = to=20 offer and the reasons for such components, including cost = information. The=20 methodology for State agency reimbursement for education = components must=20 be specifically addressed;

(ii) An operating budget for the Federal fiscal year with an = estimate=20 of the cost of operation for one full year. Any State agency that = requests=20 50 percent Federal reimbursement for State agency E&T = administrative=20 costs, other than for participant reimbursements, must include in = its=20 plan, or amendments to its plan, an itemized list of all = activities and=20 costs for which those Federal funds will be claimed, including the = costs=20 for case management and casework to facilitate the transition from = economic dependency to self-sufficiency through work. Costs in = excess of=20 the Federal grant will be allowed only with the prior approval of = FNS and=20 must be adequately documented to assure that they are necessary,=20 reasonable and properly allocated;

(iii) The categories and types of individuals the State agency = intends=20 to exempt from E&T participation, the estimated percentage of = work=20 registrants the State agency plans to exempt, and the frequency = with which=20 the State agency plans to reevaluate the validity of its = exemptions;

(iv) The characteristics of the population the State agency = intends to=20 place in E&T;

(v) The estimated number of volunteers the State agency expects = to=20 place in E&T;

(vi) The geographic areas covered and not covered by the = E&T Plan=20 and why, and the type and location of services to be offered;

(vii) The method the State agency uses to count all work = registrants as=20 of the first day of the new fiscal year;

(viii) The method the State agency uses to report work = registrant=20 information on the quarterly Form FNS=96583;

(ix) The method the State agency uses to prevent work = registrants from=20 being counted twice within a Federal fiscal year. If the State = agency=20 universally work registers all food stamp applicants, this method = must=20 specify how the State agency excludes those exempt from work = registration=20 under paragraph (b)(1) of this section. If the State agency work = registers=20 nonexempt participants whenever a new application is submitted, = this=20 method must also specify how the State agency excludes those = participants=20 who may have already been registered within the past 12 months as=20 specified under paragraph (a)(1)(i) of this section;

(x) The organizational relationship between the units = responsible for=20 certification and the units operating the E&T components, = including=20 units of the statewide workforce development system, if available. = FNS is=20 specifically concerned that the lines of communication be = efficient and=20 that noncompliance be reported to the certification unit within 10 = working=20 days after the noncompliance occurs;

(xi) The relationship between the State agency and other = organizations=20 it plans to coordinate with for the provision of services, = including=20 organizations in the statewide workforce development system, if = available.=20 Copies of contracts must be available for inspection;

(xii) The availability, if appropriate, of E&T programs for = Indians=20 living on reservations;

(xiii) If a conciliation process is planned, the procedures = that will=20 be used when an individual fails to comply with an E&T program = requirement. Include the length of the conciliation period; = and

(xiv) The payment rates for child care established in = accordance with=20 the Child Care and Development Block Grant provisions of 45 CFR = 98.43, and=20 based on local market rate surveys.

(xv) The combined (Federal/State) State agency reimbursement = rate for=20 transportation costs and other expenses reasonably necessary and = directly=20 related to participation incurred by E&T participants. If the = State=20 agency proposes to provide different reimbursement amounts to = account for=20 varying levels of expenses, for instance for greater or lesser = costs of=20 transportation in different areas of the State, it must include = them=20 here.

(xvi) Information about expenses the State agency proposes to=20 reimburse. FNS must be afforded the opportunity to review and = comment on=20 the proposed reimbursements before they are implemented.

(7) A State agency interested in receiving additional funding = for=20 serving able-bodied adults without dependents (ABAWDs) subject to = the=20 3-month time limit, in accordance with paragraph (d)(3) of this = section,=20 must include in its annual E&T plan:

(i) Its pledge to offer a qualifying activity to all at-risk = ABAWD=20 applicants and recipients;

(ii) Estimated costs of fulfilling its pledge;

(iii) A description of management controls in place to meet = pledge=20 requirements;

(iv) A discussion of its capacity and ability to serve at-risk=20 ABAWDs;

(v) Information about the size and special needs of its ABAWD=20 population; and

(vi) Information about the education, training, and workfare = components=20 it will offer to meet the ABAWD work requirement.

(8) The State agency will submit its E&T Plan annually, at = least 45=20 days before the start of the Federal fiscal year. The State agency = must=20 submit plan revisions to the appropriate FNS regional office for = approval=20 if it plans to alter the nature or location of its components or = the=20 number or characteristics of persons served. The proposed changes = must be=20 submitted for approval at least 30 days prior to planned=20 implementation.

(9) The State agency will submit an E&T Program Activity = Report to=20 FNS no later than 45 days after the end of each Federal fiscal = quarter.=20 The report will contain monthly figures for:

(i) Participants newly work registered;

(ii) Number of ABAWD applicants and recipients participating in = qualifying components;

(iii) Number of all other applicants and recipients (including = ABAWDs=20 involved in non-qualifying activities) participating in = components;=20 and

(iv) ABAWDs subject to the 3-month time limit imposed in = accordance=20 with =A7273.24(b) who are exempt under the State agency's 15 = percent=20 exemption allowance under =A7273.24(g).

(10) The State agency will submit annually, on its first = quarterly=20 report, the number of work registrants in the State on October 1 = of the=20 new fiscal year.

(11) The State agency will submit annually, on its final = quarterly=20 report:

(i) A list of E&T components it offered during the fiscal = year and=20 the number of ABAWDs and non-ABAWDs who participated in each; = and

(ii) The number of ABAWDs and non-ABAWDs who participated in = the=20 E&T Program during the fiscal year. Each individual must be = counted=20 only once.

(12) Additional information may be required of the State = agency, on an=20 as needed basis, regarding the type of components offered and the=20 characteristics of persons served, depending on the contents of = its=20 E&T Plan.

(13) The State agency must ensure, to the maximum extent = practicable,=20 that E&T programs are provided for Indians living on = reservations.

(14) If a benefit overissuance is discovered for a month or = months in=20 which a mandatory E&T participant has already fulfilled a work = component requirement, the State agency must follow the procedure=20 specified in paragraph (m)(6)(v) of this section for a workfare=20 overissuance.

(15) If a State agency fails to efficiently and effectively = administer=20 its E&T program, the provisions of =A7276.1(a)(4) of this = chapter will=20 apply.

(d) Federal financial participation =97(1) Employment = and=20 training grants =97(i) Allocation of grants. Each State = agency=20 will receive a 100 percent Federal grant each fiscal year to = operate an=20 E&T program in accordance with paragraph (e) of this section. = The=20 grant requires no State matching.

(A) In determining each State agency's 100 percent Federal = E&T=20 grant, FNS will apply the percentage determined in accordance with = paragraph (d)(1)(i)(B) of this section to the total amount of 100 = percent=20 Federal funds authorized under section 16(h)(1)(A) of the Act for = each=20 fiscal year.

(B) FNS will allocate the funding available each fiscal year = for=20 E&T grants using a formula designed to ensure that each State = agency=20 receives its appropriate share.

( 1 ) Ninety percent of the annual 100 percent Federal = E&T=20 grant will be allocated based on the number of work registrants in = each=20 State as a percentage of work registrants nationwide. FNS will use = work=20 registrant data reported by each State agency on the FNS=96583, = Employment=20 and Training Program Activity Report, from the most recent Federal = fiscal=20 year.

( 2 ) Ten percent of the annual 100 percent Federal = E&T=20 grant will be allocated based on the number of ABAWDs in each = State, as=20 determined by food stamp QC data for the most recently available = completed=20 fiscal year, which provide a breakdown of each State's population = of=20 adults age 18 through 49 who are not disabled and who do not live = with=20 children.

(C) No State agency will receive less than $50,000 in Federal = E&T=20 funds. To ensure this, FNS will, if necessary, reduce the grant of = each=20 State agency allocated more than $50,000. In order to guarantee an = equitable reduction, FNS will calculate grants as follows. First,=20 disregarding those State agencies scheduled to receive less than = $50,000,=20 FNS will calculate each remaining State agency's percentage share = of the=20 fiscal year's E&T grant. Next, FNS will multiply the = grant=97less=20 $50,000 for every State agency under the minimum=97by each = remaining State=20 agency's same percentage share to arrive at the revised amount. = The=20 difference between the original and the revised amounts will = represent=20 each State agency's contribution. FNS will distribute the funds = from the=20 reduction to State agencies initially allocated less than = $50,000.

(D) If a State agency will not obligate or expend all of the = funds=20 allocated to it for a fiscal year under paragraph (d)(1)(i)(B) of = this=20 section, FNS will reallocate the unobligated, unexpended funds to = other=20 State agencies during the fiscal year or the subsequent fiscal = year on a=20 first come-first served basis. Each year FNS will notify all State = agencies of the availability of carryover funding. Interested = State=20 agencies must submit their requests for carryover funding to FNS. = If the=20 requests are determined reasonable and necessary, FNS will = allocate=20 carryover funding to meet some or all of the State agencies' = requests, as=20 it considers appropriate and equitable. The factors that FNS will = consider=20 when reviewing a State agency's request will include the size of = the=20 request relative to the level of the State agency's E&T = spending in=20 prior years, the specificity of the State agency's plan for = spending=20 carryover funds, and the quality of program and scope of impact = for the=20 State's E&T program and proposed use of carryover funds.

(ii) Use of Funds. (A) A State agency must use E&T = program=20 grants to fund the administrative costs of planning, implementing = and=20 operating its food stamp E&T program in accordance with its = approved=20 State E&T plan. E&T grants must not be used for the = process of=20 determining whether an individual must be work registered, the = work=20 registration process, or any further screening performed during = the=20 certification process, nor for sanction activity that takes place = after=20 the operator of an E&T component reports noncompliance without = good=20 cause. For purposes of this paragraph (d), the certification = process is=20 considered ended when an individual is referred to an E&T = component=20 for assessment or participation. E&T grants may also not be = used to=20 subsidize the wages of participants, or to reimburse participants = under=20 paragraph (d)(3) of this section.

(B) A State agency's receipt of its 100 percent Federal E&T = grant=20 is contingent on FNS's approval of the State agency's E&T = plan. If an=20 adequate plan is not submitted, FNS may reallocate a State = agency's grant=20 among other State agencies with approved plans. Non-receipt of an = E&T=20 grant does not release a State agency from its responsibility = under=20 paragraph (c)(4) of this section to operate an E&T = program.

(C) Federal funds made available to a State agency to operate = an=20 educational component under paragraph (e)(1)(vi) of this section = must not=20 be used to supplant nonfederal funds for existing educational = services and=20 activities that promote the purposes of this component. Education = expenses=20 are approvable to the extent that E&T component costs exceed = the=20 normal cost of services provided to persons not participating in = an=20 E&T program.

(D) In accordance with section 6(d)(4)(K) of the Food Stamp = Act, and=20 notwithstanding any other provision of this paragraph (d), the = amount of=20 Federal E&T funds, including participant and dependent care=20 reimbursements, a State agency uses to serve participants who are=20 receiving cash assistance under a State program funded under title = IV-A of=20 the Social Security Act must not exceed the amount of Federal = E&T=20 funds the State agency used in FY 1995 to serve participants who = were=20 receiving cash assistance under a State program funded under title = IV-A of=20 the Social Security Act.

( 1 ) Based on information provided by each State = agency, FNS=20 established claimed Federal E&T expenditures on this category = of=20 recipients in fiscal year 1995 for the State agencies of Colorado=20 ($318,613), Utah ($10,200), Vermont ($1,484,913), and Wisconsin=20 ($10,999,773). These State agencies may spend up to a like amount = each=20 fiscal year to serve food stamp recipients who also receive title = IV=20 assistance.

( 2 ) All other State agencies are prohibited from = expending any=20 Federal E&T funds on title IV cash assistance recipients.

(2) Additional administrative costs. Fifty percent of = all other=20 administrative costs incurred by State agencies in operating = E&T=20 programs, above the costs referenced in paragraph (d)(1) of this = section,=20 will be funded by the Federal government.

(3) Additional allocations. In addition to the E&T = program=20 grants discussed in paragraph (d)(1) of this section, FNS will = allocate=20 $20 million in Federal funds each fiscal year to State agencies = that=20 ensure availability of education, training, or workfare = opportunities that=20 permit ABAWDs to remain eligible beyond the 3-month time = limit.

(i) To be eligible, a State agency must make and comply with a=20 commitment, or =93pledge,=94 to use these additional funds to = defray the cost=20 of offering a position in an education, training, or workfare = component=20 that fulfills the ABAWD work requirement, as defined in = =A7273.24(a), to=20 each applicant and recipient who is:

(A) In the last month of the 3-month time limit described in=20 =A7273.24(b);

(B) Not eligible for an exception to the 3-month time limit = under=20 =A7273.24(c);

(C) Not a resident of an area of the State granted a waiver of = the=20 3-month time limit under =A7273.24(f); and

(D) Not included in each State agency's 15 percent ABAWD = exemption=20 allotment under =A7273.24(g).

(ii) While a participating pledge State may use a portion of = the=20 additional funding to provide E&T services to ABAWDs who do = not meet=20 the criteria discussed in paragraph (d)(3)(i) of this section, it = must=20 guarantee that the ABAWDs who do meet the criteria are provided = the=20 opportunity to remain eligible.

(iii) State agencies will have one opportunity each fiscal year = to take=20 the pledge described in paragraph (d)(3)(i) of this section. An = interested=20 State agency, in its E&T Plan for the upcoming fiscal year, = must=20 include the following:

(A) A request to be considered as a pledge State, along with = its=20 commitment to comply with the requirements of paragraph (d)(3)(i) = of this=20 section;

(B) The estimated costs of complying with its pledge;

(C) A description of management controls it has established to = meet the=20 requirements of the pledge;

(D) A discussion of its capacity and ability to serve = vulnerable=20 ABAWDs;

(E) Information about the size and special needs of the State's = ABAWD=20 population; and

(F) Information about the education, training, and workfare = components=20 that it will offer to allow ABAWDs to remain eligible.

(iv) If the information provided in accordance with paragraph=20 (d)(3)(iii) of this section clearly indicates that the State = agency will=20 be unable to fulfill its commitment, FNS may require the State = agency to=20 address its deficiencies before it is allowed to participate as a = pledge=20 State.

(v) If the State agency does not address its deficiencies by = the=20 beginning of the new fiscal year on October 1, it will not be = allowed to=20 participate as a pledge State.

(vi) No pledges will be accepted after the beginning of the = fiscal=20 year.

(vii)(A) Once FNS determines how many State agencies will = participate=20 as pledge States in the upcoming fiscal year, it will, as early in = the=20 fiscal year as possible, allocate among them the $20 million based = on the=20 number of ABAWDs in each participating State, as a percentage of = ABAWDs in=20 all the participating States. FNS will determine the number of = ABAWDs in=20 each participating State using food stamp QC data for the most = recently=20 available completed fiscal year, which provide a breakdown of each = State's=20 population of adults age 18 through 49 who are not disabled and = who do not=20 live with children.

(B) Each participating State agency's share of the $20 million = will be=20 disbursed in accordance with paragraph (d)(6) of this section.

(C) Each participating State agency must meet the fiscal = recordkeeping=20 and reporting requirements of paragraph (d)(7) of this = section.

(viii) If a participating State agency notifies FNS that it = will not=20 obligate or expend its entire share of the additional funding = allocated to=20 it for a fiscal year, FNS will reallocate the unobligated, = unexpended=20 funds to other participating State agencies during the fiscal = year, as it=20 considers appropriate and equitable, on a first come-first served = basis.=20 FNS will notify other pledge States of the availability of = additional=20 funding. To qualify, a pledge State must have already obligated = its entire=20 annual 100 percent Federal E&T grant, excluding an amount that = is=20 proportionate to the number of months remaining in the fiscal = year, and it=20 must guarantee in writing that it intends to obligate its entire = grant by=20 the end of the fiscal year. A State's annual 100 percent Federal = E&T=20 grant is its share of the regular 100 percent Federal E&T = allocation=20 plus its share of the additional $20 million (if applicable). = Interested=20 pledge States must submit their requests for additional funding to = FNS.=20 FNS will review the requests and, if they are determined = reasonable and=20 necessary, will reallocate some or all of the unobligated, unspent = ABAWD=20 funds.

(ix) Unlike the funds allocated in accordance with paragraph = (d)(1) of=20 this section, the additional pledge funding will not remain = available=20 until obligated or expended. Unobligated funds from this grant = must be=20 returned to the U.S. Treasury at the end of each fiscal year.

(x) The cost of serving at-risk ABAWDs is not an acceptable = reason to=20 fail to live up to the pledge. A slot must be made available and = the ABAWD=20 must be served even if the State agency exhausts all of its 100 = percent=20 Federal E&T funds and must use State funds to guarantee an = opportunity=20 for all at-risk ABAWDs to remain eligible beyond the 3-month time = limit.=20 State funds expended in accordance with the approved State E&T = Plan=20 are eligible for 50 percent Federal match. If a participating = State agency=20 fails, without good cause, to meet its commitment, it may be = disqualified=20 from participating in the subsequent fiscal year or years.

(4) Participant reimbursements. The State agency must = provide=20 payments to participants in its E&T program, including = applicants and=20 volunteers, for expenses that are reasonably necessary and = directly=20 related to participation in the E&T program. The Federal = government=20 will fund 50 percent of State agency payments for allowable = expenses,=20 except that Federal matching for dependent care expenses is = limited to the=20 maximum amount specified in paragraph (d)(4)(i) of this section. = These=20 payments may be provided as a reimbursement for expenses incurred = or in=20 advance as payment for anticipated expenses in the coming month. = The State=20 agency must inform each E&T participant that allowable = expenses up to=20 the amounts specified in paragraphs (d)(4)(i) and (d)(4)(ii) of = this=20 section will be reimbursed by the State agency upon presentation = of=20 appropriate documentation. Reimbursable costs may include, but are = not=20 limited to, dependent care costs, transportation, and other work, = training=20 or education related expenses such as uniforms, personal safety = items or=20 other necessary equipment, and books or training manuals. These = costs must=20 not include the cost of meals away from home. If applicable, any = allowable=20 costs incurred by a noncompliant E&T participant after the = expiration=20 of the noncompliant participant's minimum mandatory = disqualification=20 period, as established by the State agency, that are reasonably = necessary=20 and directly related to reestablishing eligibility, as defined by = the=20 State agency, are reimbursable under paragraphs (d)(4)(i) and = (d)(4)(ii)=20 of this section. The State agency may reimburse participants for = expenses=20 beyond the amounts specified in paragraphs (d)(4)(i) of this = section;=20 however, only costs that are up to but not in excess of those = amounts are=20 subject to Federal cost sharing. Reimbursement must not be = provided from=20 E&T grants allocated under paragraph (d)(1)(i) of this = section. Any=20 expense covered by a reimbursement under this section is not = deductible=20 under =A7273.10(d)(1)(i).

(i) The State agency will reimburse the cost of dependent care = it=20 determines to be necessary for the participation of a household = member in=20 the E&T program up to the actual cost of dependent care, or = the=20 applicable payment rate for child care, whichever is lowest. The = payment=20 rates for child care are established in accordance with the Child = Care and=20 Development Block Grant provisions of 45 CFR 98.43, and are based = on local=20 market rate surveys. The State agency will provide a dependent = care=20 reimbursement to an E&T participant for all dependents = requiring care=20 unless otherwise prohibited by this section. The State agency will = not=20 provide a reimbursement for a dependent age 13 or older unless the = dependent is physically and/or mentally incapable of caring for = himself or=20 herself or is under court supervision. The State agency must = provide a=20 reimbursement for all dependents who are physically and/or = mentally=20 incapable of caring for themselves or who are under court = supervision,=20 regardless of age, if dependent care is necessary for the = participation of=20 a household member in the E&T program. The State agency will = obtain=20 verification of the physical and/or mental incapacity for = dependents age=20 13 or older if the physical and/or mental incapacity is = questionable.=20 Also, the State agency will verify a court-imposed requirement for = the=20 supervision of a dependent age 13 or older if the need for = dependent care=20 is questionable. If more than one household member is required to=20 participate in an E&T program, the State agency will reimburse = the=20 actual cost of dependent care or the applicable payment rate for = child=20 care, whichever is lowest, for each dependent in the household, = regardless=20 of the number of household members participating in the E&T = program.=20 An individual who is the caretaker relative of a dependent in a = family=20 receiving cash assistance under title IV-A of the Social Security = Act in a=20 local area where an employment, training, or education program = under title=20 IV-A is in operation is not eligible for such reimbursement. An = E&T=20 participant is not entitled to the dependent care reimbursement if = a=20 member of the E&T participant's food stamp household provides = the=20 dependent care services. The State agency must verify the = participant's=20 need for dependent care and the cost of the dependent care prior = to the=20 issuance of the reimbursement. The verification must include the = name and=20 address of the dependent care provider, the cost and the hours of = service=20 (e.g., five hours per day, five days per week for two weeks). A=20 participant may not be reimbursed for dependent care services = beyond that=20 which is required for participation in the E&T program. In = lieu of=20 providing reimbursements for dependent care expenses, a State = agency may=20 arrange for dependent care through providers by the use of = purchase of=20 service contracts, by providing vouchers to the household or by = other=20 means. A State agency may require that dependent care provided or = arranged=20 by the State agency meet all applicable standards of State and = local law,=20 including requirements designed to ensure basic health and safety=20 protections (e.g., fire safety). An E&T participant may refuse = available appropriate dependent care as provided or arranged by = the State=20 agency, if the participant can arrange other dependent care or can = show=20 that such refusal will not prevent or interfere with participation = in the=20 E&T program as required by the State agency.

(ii) The State agency will reimburse the actual costs of = transportation=20 and other costs (excluding dependent care costs) it determines to = be=20 necessary and directly related to participation in the E&T = program up=20 the maximum level of reimbursement established by the State = agency. Such=20 costs are the actual costs of participation unless the State = agency has a=20 method approved in its E&T Plan for providing allowances to=20 participants to reflect approximate costs of participation. If a = State=20 agency has an approved method to provide allowances rather than=20 reimbursements, it must provide participants an opportunity to = claim=20 actual expenses up to the maximum level of reimbursements = established by=20 the State agency.

(iii) No participant cost that has been reimbursed under a = workfare=20 program under paragraph (m)(7)(i) of this section, title IV of the = Social=20 Security Act or other work program will be reimbursed under this=20 section.

(iv) Any portion of dependent care costs that are reimbursed = under this=20 section may not be claimed as an expense and used in calculating = the=20 dependent care deduction under =A7273.9(d)(4) for determining = benefits.

(v) The State agency must inform all mandatory E&T = participants=20 that they may be exempted from E&T participation if their = monthly=20 expenses that are reasonably necessary and directly related to=20 participation in the E&T program exceed the allowable = reimbursement=20 amount. Persons for whom allowable monthly expenses in an E&T=20 component exceed the amounts specified under paragraphs (d)(4)(i) = and=20 (d)(4)(ii) of this section are not required to participate in that = component. These individuals will be placed, if possible, in = another=20 suitable component in which the individual's monthly E&T = expenses=20 would not exceed the allowable reimbursable amount paid by the = State=20 agency. If a suitable component is not available, these = individuals will=20 be exempt from E&T participation until a suitable component is = available or the individual's circumstances change and his/her = monthly=20 expenses do not exceed the allowable reimbursable amount paid by = the State=20 agency. Dependent care expenses incurred that are otherwise = allowable but=20 not reimbursed because they exceed the reimbursable amount = specified under=20 paragraph (d)(4)(i) of this section will be considered in = determining a=20 dependent care deduction under =A7273.9(d)(4).

(5) Workfare cost sharing. Enhanced cost-sharing due to=20 placement of workfare participants in paid employment is available = only=20 for workfare programs funded under paragraph (m)(7)(iv) of this = section at=20 the 50 percent reimbursement level and reported as such.

(6) Funding mechanism. E&T program funding will be = disbursed=20 through States' Letters of Credit in accordance with =A7277.5 of = this=20 chapter. The State agency must ensure that records are maintained = that=20 support the financial claims being made to FNS.

(7) Fiscal recordkeeping and reporting requirements. = Total=20 E&T expenditures are reported on the Financial Status Report = (SF=96269)=20 in the column containing =93other=94 expenses. E&T = expenditures are also=20 separately identified in an attachment to the SF=96269 to show, as = provided=20 in instructions, total State and Federal E&T expenditures;=20 expenditures funded with the unmatched Federal grants; State and = Federal=20 expenditures for participant reimbursements; State and Federal=20 expenditures for E&T costs at the 50 percent reimbursement = level; and=20 State and Federal expenditures for optional workfare program = costs,=20 operated under section 20 of the Food Stamp Act and paragraph = (m)(7) of=20 this section. Claims for enhanced funding for placements of = participants=20 in employment after their initial participation in the optional = workfare=20 program will be submitted in accordance with paragraph (m)(7)(iv) = of this=20 section.

(e) Employment and training programs. Work registrants = not=20 otherwise exempted by the State agency are subject to the E&T = program=20 participation requirements imposed by the State agency. Such = individuals=20 are referred to in this section as E&T mandatory participants. = Requirements may vary among participants. Failure to comply = without good=20 cause with the requirements imposed by the State agency will = result in=20 disqualification as specified in paragraph (f)(2) of this = section.

(1) Components. To be considered acceptable by FNS, any=20 component offered by a State agency must entail a certain level of = effort=20 by the participants. The level of effort should be comparable to = spending=20 approximately 12 hours a month for two months making job contacts = (less in=20 workfare or work experience components if the household's benefit = divided=20 by the minimum wage is less than this amount). However, FNS may = approve=20 components that do not meet this guideline if it determines that = such=20 components will advance program goals. An initial screening by an=20 eligibility worker to determine whom to place in an E&T = program does=20 not constitute a component. The State agency may require Food = Stamp=20 Program applicants to participate in any component it offers in = its=20 E&T program at the time of application. The State agency must = not=20 impose requirements that would delay the determination of an = individual's=20 eligibility for benefits or in issuing benefits to any household = that is=20 otherwise eligible. In accordance with section 6(o)(1)(A) of the = Food=20 Stamp Act and =A7273.24, job search and job search training, when = offered as=20 components of an E&T program, are not qualifying activities = relating=20 to the participation requirements necessary to maintain food stamp = eligibility for ABAWDs. However, job search or job search training = activities, when offered as part of other E&T program = components, are=20 acceptable as long as those activities comprise less than half the = total=20 required time spent in the components. An E&T program offered = by a=20 State agency must include one or more of the following = components:

(i) A job search program. The State agency may require an = individual to=20 participate in job search from the time an application is filed = for an=20 initial period established by the State agency. Following this = initial=20 period (which may extend beyond the date when eligibility is = determined)=20 the State agency may require an additional job search period in = any period=20 of 12 consecutive months. The first such period of 12 consecutive = months=20 will begin at any time following the close of the initial period. = The=20 State agency may establish a job search period that, in its = estimation,=20 will provide participants a reasonable opportunity to find = suitable=20 employment. The State agency should not, however, establish a = continuous,=20 year-round job search requirement. If a reasonable period of job = search=20 does not result in employment, placing the individual in a = training or=20 education component to improve job skills will likely be more = productive.=20 In accordance with section 6(o)(1)(A) of the Food Stamp Act and = =A7273.24, a=20 job search program is not a qualifying activity relating to the=20 participation requirements necessary to maintain food stamp = eligibility=20 for ABAWDs. However, such a program, when operated under title I = of the=20 WIA, or under section 236 of the Trade Act, is considered a = qualifying=20 activity relating to the participation requirements necessary to = maintain=20 food stamp eligibility for ABAWDs.

(ii) A job search training program that includes reasonable job = search=20 training and support activities. Such a program may consist of job = skills=20 assessments, job finding clubs, training in techniques for = employability,=20 job placement services, or other direct training or support = activities,=20 including educational programs determined by the State agency to = expand=20 the job search abilities or employability of those subject to the = program.=20 Job search training activities are approvable if they directly = enhance the=20 employability of the participants. A direct link between the job = search=20 training activities and job-readiness must be established for a = component=20 to be approved. In accordance with section 6(o)(1) of the Food = Stamp Act=20 and =A7273.24, a job search program is not a qualifying activity = relating to=20 the participation requirements necessary to maintain food stamp=20 eligibility for ABAWDs. However, such a program, when operated = under title=20 I of the WIA or under section 236 of the Trade Act, is considered = a=20 qualifying activity relating to the participation requirements = necessary=20 to maintain food stamp eligibility for ABAWDs.

(iii) A workfare program as described in paragraph (m) of this=20 section.

(A) The participation requirements of section 20(b) of the Food = Stamp=20 Act and paragraphs (m)(5)(i)(A) and (m)(5)(i)(B) of this section = for=20 individuals exempt from Food Stamp Program work requirements under = paragraphs (b)(1)(iii) and (b)(1)(v) of this section, are not = applicable=20 to E&T workfare components.

(B) In accordance with section 20(e) of the Food Stamp Act and=20 paragraph (m)(6)(ii) of this section, the State agency may = establish a job=20 search period of up to 30 days following certification prior to = making a=20 workfare assignment. This job search activity is part of the = workfare=20 assignment, and not a job search =93program.=94 Participants are = considered to=20 be participating in and complying with the requirements of = workfare,=20 thereby meeting the participation requirement for ABAWDs.

(C) The sharing of workfare savings authorized under section = 20(g) of=20 the Food Stamp Act and paragraph (m)(7)(iv) of this section are = not=20 available for E&T workfare components.

(iv) A program designed to improve the employability of = household=20 members through actual work experience or training, or both, and = to enable=20 individuals employed or trained under such programs to move = promptly into=20 regular public or private employment. Such an employment or = training=20 experience must:

(A) Not provide any work that has the effect of replacing the=20 employment of an individual not participating in the employment or = training experience program; and

(B) Provide the same benefits and working conditions that are = provided=20 at the job site to employees performing comparable work for = comparable=20 hours.

(v) A project, program or experiment such as a supported work = program,=20 or a WIA or State or local program aimed at accomplishing the = purpose of=20 the E&T program.

(vi) Educational programs or activities to improve basic skills = or=20 otherwise improve employability including educational programs = determined=20 by the State agency to expand the job search abilities or = employability of=20 those subject to the program. Allowable educational activities may = include, but are not limited to, high school or equivalent = educational=20 programs, remedial education programs to achieve a basic literacy = level,=20 and instructional programs in English as a second language. Only=20 educational components that directly enhance the employability of = the=20 participants are allowable. A direct link between the education = and=20 job-readiness must be established for a component to be = approved.

(vii) A program designed to improve the self-sufficiency of = recipients=20 through self-employment. Included are programs that provide = instruction=20 for self-employment ventures.

(2) Exemptions. Each State agency may, at its = discretion, exempt=20 individual work registrants and categories of work registrants = from=20 E&T participation. Each State agency must periodically = reevaluate its=20 individual and categorical exemptions to determine whether they = remain=20 valid. Each State agency will establish the frequency of its = periodic=20 evaluation.

(3) Time spent in an employment and training program. = (i) Each=20 State agency will determine the length of time a participant = spends in any=20 E&T component it offers. The State agency may also determine = the=20 number of successive components in which a participant may be = placed.

(ii) The time spent by the members of a household collectively = each=20 month in an E&T work program (including, but not limited to, = those=20 carried out under paragraphs (e)(1)(iii) and (e)(1)(iv) of this = section)=20 combined with any hours worked that month in a workfare program = under=20 paragraph (m) of this section must not exceed the number of hours = equal to=20 the household's allotment for that month divided by the higher of = the=20 applicable Federal or State minimum wage. The total hours of = participation=20 in an E&T component for any household member individually in = any=20 month, together with any hours worked in a workfare program under=20 paragraph (m) of this section and any hours worked for = compensation (in=20 cash or in kind), must not exceed 120.

(4) Voluntary participation. (i) A State agency may = operate=20 program components in which individuals elect to participate.

(ii) A State agency must not disqualify voluntary participants = in an=20 E&T component for failure to comply with E&T = requirements.

(iii) The hours of participation or work of a volunteer may not = exceed=20 the hours required of E&T mandatory participants, as specified = in=20 paragraph (e)(3) of this section.

(f) Failure to comply =97(1) Ineligibility for = failure to=20 comply. A nonexempt individual who refuses or fails without = good=20 cause, as defined in paragraphs (i)(2) and (i)(3) of this section, = to=20 comply with the Food Stamp Program work requirements listed under=20 paragraph (a)(1) of this section is ineligible to participate in = the Food=20 Stamp Program, and will be considered an ineligible household = member,=20 pursuant to =A7273.1(b)(7).

(i) As soon as the State agency learns of the individual's=20 noncompliance it must determine whether good cause for the = noncompliance=20 exists, as discussed in paragraph (i) of this section. Within 10 = days of=20 establishing that the noncompliance was without good cause, the = State=20 agency must provide the individual with a notice of adverse = action, as=20 specified in =A7273.13. If the State agency offers a conciliation = process as=20 part of its E&T program, it must issue the notice of adverse = action no=20 later than the end of the conciliation period.

(ii) The notice of adverse action must contain the particular = act of=20 noncompliance committed and the proposed period of = disqualification. The=20 notice must also specify that the individual may, if appropriate, = reapply=20 at the end of the disqualification period. Information must be = included on=20 or with the notice describing the action that can be taken to = avoid the=20 disqualification before the disqualification period begins. The=20 disqualification period must begin with the first month following = the=20 expiration of the 10-day adverse notice period, unless a fair = hearing is=20 requested.

(iii) An E&T disqualification may be imposed after the end = of a=20 certification period. Thus, a notice of adverse action must be = sent=20 whenever the State agency becomes aware of an individual's = noncompliance=20 with Food Stamp Program work requirements, even if the = disqualification=20 begins after the certification period expires and the household = has not=20 been recertified.

(2) Disqualification periods. The following = disqualification=20 periods will be imposed:

(i) For the first occurrence of noncompliance, the individual = will be=20 disqualified until the later of:

(A) The date the individual complies, as determined by the = State=20 agency;

(B) One month; or

(C) Up to three months, at State agency option.

(ii) For the second occurrence, until the later of:

(A) The date the individual complies, as determined by the = State=20 agency;

(B) Three months; or

(C) Up to six months, at State agency option.

(iii) For the third or subsequent occurrence, until the later = of:

(A) The date the individual complies, as determined by the = State=20 agency;

(B) Six months;

(C) A date determined by the State agency; or

(D) At the option of the State agency, permanently.

(3) Record retention. In accordance with =A7272.1(f) of = this=20 chapter, State agencies are required to retain records concerning = the=20 frequency of noncompliance with FSP work requirements and the = resulting=20 disqualification actions imposed. These records must be available = for=20 inspection and audit at any reasonable time to ensure conformance = with the=20 minimum mandatory disqualification periods instituted.

(4) Disqualification plan. In accordance with = =A7272.2(d)(1)(xiii)=20 of this chapter, each State agency must prepare and submit a plan=20 detailing its disqualification policies. The plan must include the = length=20 of disqualification to be enforced for each occurrence of = noncompliance,=20 how compliance is determined by the State agency, and the State = agency's=20 household disqualification policy.

(5) Household ineligibility. (i) If the individual who = becomes=20 ineligible to participate under paragraph (f)(1) of this section = is the=20 head of a household, the State agency, at its option, may = disqualify the=20 entire household from Food Stamp Program participation.

(ii) The State agency may disqualify the household for a period = that=20 does not exceed the lesser of:

(A) The duration of the ineligibility of the noncompliant = individual=20 under paragraph (f)(2) of this section; or

(B) 180 days.

(iii) A household disqualified under this provision may = reestablish=20 eligibility if:

(A) The head of the household leaves the household;

(B) A new and eligible person joins the household as the head = of the=20 household, as defined in =A7273.1(d)(2); or

(C) The head of the household becomes exempt from work = requirements=20 during the disqualification period.

(iv) If the head of the household joins another household as = its head,=20 that household will be disqualified from participating in the Food = Stamp=20 Program for the remaining period of ineligibility.

(6) Fair hearings. Each individual or household has the = right to=20 request a fair hearing, in accordance with =A7273.15, to appeal a = denial,=20 reduction, or termination of benefits due to a determination of = nonexempt=20 status, or a State agency determination of failure to comply with = Food=20 Stamp Program work requirements. Individuals or households may = appeal=20 State agency actions such as exemption status, the type of = requirement=20 imposed, or State agency refusal to make a finding of good cause = if the=20 individual or household believes that a finding of failure to = comply has=20 resulted from improper decisions on these matters. The State = agency or its=20 designee operating the relevant component must receive sufficient = advance=20 notice to either permit the attendance of a representative or = ensure that=20 a representative will be available for questioning over the phone = during=20 the hearing. A representative of the appropriate agency must be = available=20 through one of these means. A household must be allowed to examine = its=20 E&T component casefile at a reasonable time before the date of = the=20 fair hearing, except for confidential information (that may = include test=20 results) that the agency determines should be protected from = release.=20 Confidential information not released to a household may not be = used by=20 either party at the hearing. The results of the fair hearing are = binding=20 on the State agency.

(7) Failure to comply with a work requirement under title IV = of the=20 Social Security Act, or an unemployment compensation work = requirement.=20 An individual exempt from Food Stamp Program work requirements = by=20 paragraphs (b)(1)(iii) or (b)(1)(v) of this section because he or = she is=20 subject to work requirements under title IV-A or unemployment = compensation=20 who fails to comply with a title IV-A or unemployment compensation = work=20 requirement will be treated as though he or she failed to comply = with the=20 Food Stamp Program work requirement.

(i) When a food stamp household reports the loss or denial of = title=20 IV-A or unemployment compensation benefits, or if the State agency = otherwise learns of a loss or denial, the State agency must = determine=20 whether the loss or denial resulted when a household member = refused or=20 failed without good cause to comply with a title IV-A or = unemployment=20 compensation work requirement.

(ii) If the State agency determines that the loss or denial of = benefits=20 resulted from an individual's refusal or failure without good = cause to=20 comply with a title IV or unemployment compensation requirement, = the=20 individual (or household if applicable under paragraph (f)(5) of = this=20 section) must be disqualified in accordance with the applicable = provisions=20 of this paragraph (f). However, if the noncomplying individual = meets one=20 of the work registration exemptions provided in paragraph (b)(1) = of this=20 section (other than the exemptions provided in paragraphs = (b)(1)(iii) or=20 (b)(1)(v) of this section) the individual (or household if = applicable=20 under paragraph (f)(5) of this section) will not be = disqualified.

(iii) If the State agency determination of noncompliance with a = title=20 IV-A or unemployment compensation work requirement leads to a = denial or=20 termination of the individual's or household's food stamp = benefits, the=20 individual or household has a right to appeal the decision in = accordance=20 with the provisions of paragraph (f)(6) of this section.

(iv) In cases where the individual is disqualified from the = title IV-A=20 program for refusal or failure to comply with a title IV-A work=20 requirement, but the individual meets one of the work registration = exemptions provided in paragraph (b)(1) of this section, other = than the=20 exemption in paragraphs (b)(1)(iii) of this section, the State = agency may,=20 at its option, apply the identical title IV-A disqualification on = the=20 individual under the Food Stamp Program. The State agency must = impose such=20 optional disqualifications in accordance with section 6(i) of the = Food=20 Stamp Act and with the provisions of =A7273.11(1).

(g) Ending disqualification. Except in cases of = permanent=20 disqualification, at the end of the applicable mandatory = disqualification=20 period for noncompliance with Food Stamp Program work = requirements,=20 participation may resume if the disqualified individual applies = again and=20 is determined by the State agency to be in compliance with work=20 requirements. A disqualified individual may be permitted to resume = participation during the disqualification period (if otherwise = eligible)=20 by becoming exempt from work requirements.

(h) Suitable employment. (1) Employment will be = considered=20 suitable unless:

(i) The wage offered is less than the highest of the applicable = Federal=20 minimum wage, the applicable State minimum wage, or eighty percent = (80%)=20 of the Federal minimum wage if neither the Federal nor State = minimum wage=20 is applicable.

(ii) The employment offered is on a piece-rate basis and the = average=20 hourly yield the employee can reasonably be expected to earn is = less than=20 the applicable hourly wages specified under paragraph (h)(1)(i) of = this=20 section.

(iii) The household member, as a condition of employment or = continuing=20 employment, is required to join, resign from, or refrain from = joining any=20 legitimate labor organization.

(iv) The work offered is at a site subject to a strike or = lockout at=20 the time of the offer unless the strike has been enjoined under = section=20 208 of the Labor-Management Relations Act (29 U.S.C. 78) (commonly = known=20 as the Taft-Hartley Act), or unless an injunction has been issued = under=20 section 10 of the Railway Labor Act (45 U.S.C. 160).

(v) It fails to meet additional suitability criteria = established by=20 State agencies.

(2) In addition, employment will be considered suitable unless = the=20 household member involved can demonstrate or the State agency = otherwise=20 becomes aware that:

(i) The degree of risk to health and safety is = unreasonable.

(ii) The member is physically or mentally unfit to perform the=20 employment, as documented by medical evidence or by reliable = information=20 from other sources.

(iii) The employment offered within the first 30 days of = registration=20 is not in the member's major field of experience.

(iv) The distance from the member's home to the place of = employment is=20 unreasonable considering the expected wage and the time and cost = of=20 commuting. Employment will not be considered suitable if daily = commuting=20 time exceeds 2 hours per day, not including the transporting of a = child to=20 and from a child care facility. Nor will employment be considered = suitable=20 if the distance to the place of employment prohibits walking and = neither=20 public nor private transportation is available to transport the = member to=20 the jobsite.

(v) The working hours or nature of the employment interferes = with the=20 member's religious observances, convictions, or beliefs.

(i) Good Cause. (1) The State agency is responsible for=20 determining good cause when a food stamp recipient fails or = refuses to=20 comply with Food Stamp Program work requirements. Since it is not = possible=20 for the Department to enumerate each individual situation that = should or=20 should not be considered good cause, the State agency must take = into=20 account the facts and circumstances, including information = submitted by=20 the employer and by the household member involved, in determining = whether=20 or not good cause exists.

(2) Good cause includes circumstances beyond the member's = control, such=20 as, but not limited to, illness, illness of another household = member=20 requiring the presence of the member, a household emergency, the=20 unavailability of transportation, or the lack of adequate child = care for=20 children who have reached age six but are under age 12.

(3) Good cause for leaving employment includes the good cause=20 provisions found in paragraph (i)(2) of this section, and = resigning from a=20 job that is unsuitable, as specified in paragraphs (h)(1) and = (h)(2) of=20 this section. Good cause for leaving employment also includes:

(i) Discrimination by an employer based on age, race, sex, = color,=20 handicap, religious beliefs, national origin or political = beliefs;

(ii) Work demands or conditions that render continued = employment=20 unreasonable, such as working without being paid on schedule;

(iii) Acceptance of employment by the individual, or enrollment = by the=20 individual in any recognized school, training program or = institution of=20 higher education on at least a half time basis, that requires the=20 individual to leave employment;

(iv) Acceptance by any other household member of employment or=20 enrollment at least half-time in any recognized school, training = program=20 or institution of higher education in another county or similar = political=20 subdivision that requires the household to move and thereby = requires the=20 individual to leave employment;

(v) Resignations by persons under the age of 60 which are = recognized by=20 the employer as retirement;

(vi) Employment that becomes unsuitable, as specified in = paragraphs=20 (h)(1) and (h)(2) of this section, after the acceptance of such=20 employment;

(vii) Acceptance of a bona fide offer of employment of more = than 30=20 hours a week or in which the weekly earnings are equivalent to the = Federal=20 minimum wage multiplied by 30 hours that, because of circumstances = beyond=20 the individual's control, subsequently either does not materialize = or=20 results in employment of less than 30 hours a week or weekly = earnings of=20 less than the Federal minimum wage multiplied by 30 hours; and

(viii) Leaving a job in connection with patterns of employment = in which=20 workers frequently move from one employer to another such as = migrant farm=20 labor or construction work. There may be some circumstances where=20 households will apply for food stamp benefits between jobs = particularly in=20 cases where work may not yet be available at the new job site. = Even though=20 employment at the new site has not actually begun, the quitting of = the=20 previous employment must be considered as with good cause if it is = part of=20 the pattern of that type of employment.

(4) Verification. To the extent that the information = given by=20 the household is questionable, as defined in =A7273.2(f)(2), State = agencies=20 must request verification of the household's statements. The = primary=20 responsibility for providing verification, as provided in = =A7273.2(f)(5),=20 rests with the household.

(j) Voluntary quit and reduction of work effort =97(1) = Period=20 for establishing voluntary quit and reduction of work effort. = For the=20 purpose of establishing that a voluntary quit without good cause = or=20 reduction in work effort without good cause occurred prior to = applying for=20 food stamps, a State agency may, at its option, choose a period = between 30=20 and 60 days before application in which to determine voluntary = quit or=20 reduction in work effort.

(2) Individual ineligibility. An individual is = ineligible to=20 participate in the Food Stamp Program if, in a period established = by the=20 State agency between 30 and 60 day before applying for food stamp = benefits=20 or at any time thereafter, the individual:

(i) Voluntarily and without good cause quits a job of 30 hours = a week=20 or more; or

(ii) Reduces his or her work effort voluntarily and without = good cause=20 and, after the reduction, is working less than 30 hours per = week.

(3) Determining whether a voluntary quit or reduction of = work effort=20 occurred and application processing. (i) When a household = files an=20 application for participation, or when a participating household = reports=20 the loss of a source of income or a reduction in household = earnings, the=20 State agency must determine whether any household member = voluntarily quit=20 his or her job or reduced his or her work effort. Benefits must = not be=20 delayed beyond the normal processing times specified in =A7273.2 = pending the=20 outcome of this determination.

(ii) The voluntary quit provision applies if the employment = involved 30=20 hours or more per week or provided weekly earnings at least = equivalent to=20 the Federal minimum wage multiplied by 30 hours; the quit occurred = within=20 a period established by the State agency between 30 to 60 days = prior to=20 the date of application or anytime thereafter; and the quit was = without=20 good cause. Changes in employment status that result from = terminating a=20 self-employment enterprise or resigning from a job at the demand = of the=20 employer will not be considered a voluntary quit for purposes of = this=20 paragraph (j). An employee of the Federal Government, or of a = State or=20 local government who participates in a strike against such = government, and=20 is dismissed from his or her job because of participation in the = strike,=20 will be considered to have voluntarily quit his or her job without = good=20 cause. If an individual quits a job, secures new employment at = comparable=20 wages or hours and is then laid off or, through no fault of his = own, loses=20 the new job, the individual must not be disqualified for the = earlier=20 quit.

(iii) The reduction of work effort provision applies if, before = the=20 reduction, the individual was employed 30 hours or more per week; = the=20 reduction occurred within a period established by the State agency = between=20 30 and 60 days prior to the date of application or anytime = thereafter; and=20 the reduction was voluntary and without good cause. If the = individual=20 reduces his or her work hours to less than 30 a week, but = continues to=20 earn weekly wages that exceed the Federal minimum wage multiplied = by 30=20 hours, the individual remains exempt from Program work = requirements, in=20 accordance with paragraph (b)(1)(vii) of this section, and the = reduction=20 in work effort provision does not apply. Minor variations in the = number of=20 hours worked or in the weekly minimum wage equivalent wages are = inevitable=20 and must be taken into consideration when assessing a recipient's=20 compliance with Program work rules.

(iv) In the case of an applicant household, the State agency = must=20 determine if any household member subject to Food Stamp Program = work=20 requirements voluntarily quit his or her job or reduced his or her = work=20 effort within a period established by the State agency between 30 = and 60=20 days prior to date of application. If the State agency learns that = a=20 household has lost a source of income or experienced a reduction = in income=20 after the date of application but before the household is = certified, the=20 State agency must determine whether a voluntary quit or reduction = in work=20 effort occurred.

(v) Upon determining that an individual voluntarily quit = employment or=20 reduced work effort, the State agency must determine if the = voluntary quit=20 or reduction of work effort was with good cause as defined in = paragraph=20 (i) of this section.

(vi) In the case of an individual who is a member of an = applicant=20 household, if the voluntary quit or reduction in work effort was = without=20 good cause, the individual will be determined ineligible to = participate=20 and will be disqualified according to the State agency's = established=20 minimum mandatory sanction schedule. The ineligible individual = must be=20 considered an ineligible household member, pursuant to = =A7273.1(b)(7). The=20 disqualification is effective upon the determination of = eligibility for=20 the remaining household members. If the individual who becomes = ineligible=20 is the head of the household, as defined in =A7273.1(d)(2), the = State agency=20 may choose to disqualify the entire household, in accordance with=20 paragraph (f)(5) of this section. If the State agency chooses to=20 disqualify the household, the State agency must provide the = applicant=20 household with a notice of denial in accordance with = =A7273.2(g)(3). The=20 notice must inform the household of the proposed period of=20 disqualification; its right to reapply at the end of the = disqualification=20 period; and of its right to a fair hearing. The household's=20 disqualification is effective upon the issuance of the notice of=20 denial.

(vii) In the case of an individual who is a member of a = participating=20 household, if the State agency determines that the individual = voluntarily=20 quit his or her job or reduced his or her work effort without good = cause=20 while participating in the program or discovers that the = individual=20 voluntarily quit his or her job or reduced his or her work effort = without=20 good cause during a period established by the State agency between = 30 and=20 60 days prior to the date of application for benefits or between=20 application and certification, the State agency must provide the=20 individual with a notice of adverse action as specified in = =A7273.13 within=20 10 days after the determination of a quit or reduction in work = effort. The=20 notification must contain the particular act of noncompliance = committed,=20 the proposed period of ineligibility, the actions that may be = taken to=20 avoid the disqualification, and it must specify that the = individual, if=20 otherwise eligible, may resume participation at the end of the=20 disqualification period if the State agency determines the = individual to=20 be in compliance with Program work requirements. The individual = will be=20 disqualified according to the State agency's established minimum = mandatory=20 sanction schedule. The ineligible individual must be considered an = ineligible household member, pursuant to =A7273.1(b)(7). The=20 disqualification period will begin the first month following the=20 expiration of the 10-day adverse notice period, unless the = individual=20 requests a fair hearing. If a voluntary quit or reduction in work = effort=20 occurs in the last month of a certification period, or is = determined in=20 the last 30 days of the certification period, the individual must = be=20 denied recertification for a period equal to the appropriate = mandatory=20 disqualification period, beginning with the day after the last=20 certification period ends and continuing for the length of the=20 disqualification, regardless of whether the individual reapplies = for food=20 stamps. Each individual has a right to a fair hearing to appeal a = denial=20 or termination of benefits due to a determination that the = individual=20 voluntarily quit his or her job or reduced his or her work effort = without=20 good cause. If the participating individual's benefits are = continued=20 pending a fair hearing and the State agency determination is = upheld, the=20 disqualification period must begin the first of the month after = the=20 hearing decision is rendered.

(viii) If the individual who voluntarily quit his or her job, = or who=20 reduced his or her work effort without good cause is the head of a = household, as defined in =A7273.1(d), the State agency, at its = option, may=20 disqualify the entire household from Food Stamp Program = participation in=20 accordance with paragraph (f)(5) of this section.

(4) Ending a voluntary quit or a reduction in work = disqualification.=20 Except in cases of permanent disqualification, following the = end of=20 the mandatory disqualification period for voluntarily quitting a = job or=20 reducing work effort without good cause, an individual may begin=20 participation in the program if he or she reapplies and is = determined=20 eligible by the State agency. Eligibility may be reestablished = during a=20 disqualification and the individual, if otherwise eligible, may be = permitted to resume participation if the individual becomes exempt = from=20 Program work requirements under paragraph (b)(1) of this = section.

(5) Application in the final month of disqualification. = Except=20 in cases of permanent disqualification, if an application for=20 participation in the Program is filed in the final month of the = mandatory=20 disqualification period, the State agency must, in accordance with = =A7273.10(a)(3), use the same application for the denial of = benefits in the=20 remaining month of disqualification and certification for any = subsequent=20 month(s) if all other eligibility criteria are met.

(k) Employment initiatives program =97(1) General. = In=20 accordance with section 17(d)(1)(B) of the Food Stamp Act, = qualified State=20 agencies may elect to operate an employment initiatives program, = in which=20 an eligible household can receive the cash equivalent of its food = stamp=20 coupon allotment.

(2) State agency qualification. A State agency qualifies = to=20 operate an employment initiatives program if, during the summer of = 1993,=20 at least half of its food stamp households also received cash = benefits=20 from a State program funded under title IV-A of the Social = Security=20 Act.

(3) Qualified State agencies. The State agencies of = Alaska,=20 California, Connecticut, the District of Columbia, Massachusetts,=20 Michigan, Minnesota, New Jersey, West Virginia, and Wisconsin meet = the=20 qualification. These 10 State agencies may operate an employment=20 initiatives program.

(4) Eligible households. A food stamp household in one = of the 10=20 qualified State agencies may receive cash benefits in lieu of a = food stamp=20 coupon allotment if it meets the following requirements:

(i) The food stamp household elects to participate in an = employment=20 initiatives program;

(ii) An adult member of the household:

(A) Has worked in unsubsidized employment for the last 90 days, = earning=20 a minimum of $350 per month;

(B) Is receiving cash benefits under a State program funded = under title=20 IV-A of the Social Security Act; or

(C) Was receiving cash benefits under the State program but, = while=20 participating in the employment initiatives program, became = ineligible=20 because of earnings and continues to earn at least $350 a month = from=20 unsubsidized employment.

(5) Program Provisions. (i) Cash benefits provided in an = employment initiatives program will be considered an allotment, as = defined=20 at =A7271.2 of this chapter.

(ii) An eligible household receiving cash benefits in an = employment=20 initiatives program will not receive any other food stamp benefit = during=20 the period for which cash assistance is provided.

(iii) A qualified State agency operating an employment = initiatives=20 program must increase the cash benefit to participating households = to=20 compensate for any State or local sales tax on food purchases, = unless FNS=20 determines that an increase is unnecessary because of the limited = nature=20 of items subject to the State or local sales tax.

(iv) Any increase in cash assistance to account for a State or = local=20 sales tax on food purchases must be paid by the State agency.

(6) Evaluation. After two years of operating an = employment=20 initiatives program, a State agency must evaluate the impact of = providing=20 cash assistance in lieu of a food stamp coupon allotment to = participating=20 households. The State agency must provide FNS with a written = report of its=20 evaluation findings. The State agency, with the concurrence of = FNS, will=20 determine the content of the evaluation.

(l) Work supplementation program. In accordance with = section=20 16(b) of the Food Stamp Act, States may operate work = supplementation (or=20 support) programs that allow the cash value of food stamp benefits = and=20 public assistance, such as cash assistance authorized under title = IV-A of=20 the Social Security Act or cash assistance under a program = established by=20 a State, to be provided to employers as a wage subsidy to be used = for=20 hiring and employing public assistance recipients. The goal of = these=20 programs is to promote self-sufficiency by providing public = assistance=20 recipients with work experience to help them move into = unsubsidized jobs.=20 In accordance with =A7272.2(d)(1)(xiv) of this chapter, State = agencies that=20 wish to exercise their option to implement work supplementation = programs=20 must submit to FNS for approval a plan that complies with the = provisions=20 of this paragraph (l). Work supplementation programs may not be=20 implemented without prior approval from FNS.

(1) Plan. (i) Assurances. The plan must contain = the=20 following assurances:

(A) The individual participating in a work supplementation = program must=20 not be employed by the employer at the time the individual enters = the=20 program;

(B) The wage subsidy received under the work supplementation = program=20 must be excluded from household income and resources during the = term the=20 individual is participating in work supplementation;

(C) The household must not receive a separate food stamp = allotment=20 while participating in the work supplementation program;

(D) An individual participating in a work supplementation = program is=20 excused from meeting any other work requirements;

(E) The work supplementation program must not displace any = persons=20 currently employed who are not supplemented or supported;

(F) The wage subsidy must not be considered income or resources = under=20 any Federal, State or local laws, including but not limited to, = laws=20 relating to taxation, welfare, or public assistance programs, and = the=20 household's food stamp allotment must not be decreased due to = taxation or=20 any other reason because of its use as a wage subsidy;

(G) The earned income deduction does not apply to the = subsidized=20 portion of wages received in a work supplementation program; = and

(H) All work supplemented or supported employees must receive = the same=20 benefits (sick and personal leave, health coverage, workmen's=20 compensation, etc.) as similarly situated coworkers who are not=20 participating in work supplementation and wages paid under a wage=20 supplementation or support program must meet the requirements of = the Fair=20 Labor Standards Act and other applicable employment laws.

(ii) Description. The plan must also describe:

(A) The procedures the State agency will use to ensure that the = cash=20 value of food stamp benefits for participating households are not = subject=20 to State or local sales taxes on food purchases. The costs of = increasing=20 household food stamp allotments to compensate for such sales taxes = must be=20 paid from State funds;

(B) State agency, employer and recipient obligations and=20 responsibilities;

(C) The procedures the State agency will use to provide wage = subsidies=20 to employers and to ensure accountability;

(D) How public assistance recipients in the proposed work=20 supplementation program will, within a specified period of time, = be moved=20 from supplemented or supported employment to employment that is = not=20 supplemented or supported;

(E) Whether the food stamp allotment and public assistance = grant will=20 be frozen at the time a recipient begins a subsidized job; and

(F) The procedures the State agency will use to ensure that = work=20 supplementation program participants do not incur any Federal, = State, or=20 local tax liabilities on the cash value of their food stamp = benefits.

(2) Budget. In addition to the plan described in = paragraph=20 (l)(1) of this section, an operating budget for the proposed work=20 supplementation program must be submitted to FNS.

(3) Approval. FNS will review the initial plan and any=20 subsequent amendments. Upon approval by FNS, the State agency must = incorporate the approved work supplementation program plan or = subsequent=20 amendment into its State Plan of Operation and its operating = budget must=20 be included in the State agency budget. No plan or amendment may = be=20 implemented without approval from FNS.

(4) Reporting. State agencies operating work = supplementation and=20 support programs are required to comply with all FNS reporting=20 requirements, including reporting the amount of benefits = contributed to=20 employers as a wage subsidy on the FNS=96388, State Issuance and=20 Participation Estimates; FNS=96388A, Participation and Issuance by = Project=20 Area; FNS=9646, Issuance Reconciliation Report; and SF=96269, = Addendum=20 Financial Status Report. State agencies are also required to = report=20 administrative costs associated with work supplementation programs = on the=20 FNS=96366A, Budget Projection and SF=96269, Financial Status = Report. Special=20 codes for work supplementation programs will be assigned for = reporting=20 purposes.

(5) Funding. FNS will pay the cash value of a = participating=20 household's food stamp benefits to a State agency with an approved = work=20 supplementation program to pay to an employer as a wage subsidy, = and will=20 also reimburse the State agency for related administrative costs, = in=20 accordance with Section 16 of the Food Stamp Act.

(6) Quality control. Cases in which a household member = is=20 participating in a work supplementation program will be coded as = not=20 subject to review.

(m) Optional workfare program =97(1) General. = This=20 paragraph (m) contains the rules to be followed in operating a = food stamp=20 workfare program. In workfare, nonexempt food stamp recipients may = be=20 required to perform work in a public service capacity as a = condition of=20 eligibility to receive the coupon allotment to which their = household is=20 normally entitled. The primary goal of workfare is to improve=20 employability and enable individuals to move into regular = employment.

(2) Program administration. (i) A food stamp workfare = program=20 may be operated as a component of a State agency's E&T = program, or it=20 may be operated independently. If the workfare program is part of = an=20 E&T program it must be included as a component in the State = agency's=20 E&T plan in accordance with the requirements of paragraph = (c)(4) of=20 this section. If it is operated independent of the E&T = program, the=20 State agency must submit a workfare plan to FNS for its approval. = For the=20 purpose of this paragraph (m), a political subdivision is any = local=20 government, including, but not limited to, any county, city, town = or=20 parish. A State agency may implement a workfare program statewide = or in=20 only some areas of the State. The areas of operation must be = identified in=20 the State agency's workfare or E&T plan.

(ii) Political subdivisions are encouraged, but not required, = to submit=20 their plans to FNS through their respective State agencies. At a = minimum,=20 however, plans must be submitted to the State agencies concurrent = with=20 their submission to FNS. Workfare plans and subsequent amendments = must not=20 be implemented prior to their approval by FNS.

(iii) When a State agency chooses to sponsor a workfare program = by=20 submitting a plan to FNS, it must incorporate the approved plan = into its=20 State Plan of Operations. When a political subdivision chooses to = sponsor=20 a workfare program by submitting a plan to FNS, the State agency = is=20 responsible as a facilitator in the administration of the program = by=20 disbursing Federal funding and meeting the requirements identified = in=20 paragraph (m)(4) of this section. When it is notified that FNS has = approved a workfare plan submitted by a political subdivision in = its=20 State, the State agency must append that political subdivision's = workfare=20 plan to its own State Plan of Operations.

(iv) The operating agency is the administrative organization = identified=20 in the workfare plan as being responsible for establishing job = sites,=20 assigning eligible recipients to the job sites, and meeting the=20 requirements of this paragraph (m). The operating agency may be = any public=20 or private, nonprofit organization. The State agency or political=20 subdivision that submitted the workfare plan is responsible for = monitoring=20 the operating agency's compliance with the requirements of this = paragraph=20 (m) or of the workfare plan. The Department may suspend or = terminate some=20 or all workfare program funding, or withdraw approval of the = workfare=20 program from the State agency or political subdivision that = submitted the=20 workfare plan upon finding that that State agency or political=20 subdivision, or their respective operating agencies, have failed = to comply=20 with the requirements of this paragraph (m) or of the workfare = plan.

(v) State agencies or other political subdivisions must = describe in=20 detail in the plan how the political subdivision, working with the = State=20 agency and any other cooperating agencies that may be involved in = the=20 program, will fulfill the provisions of this paragraph (m). The = plan will=20 be a one-time submittal, with amendments submitted as needed to = cover any=20 changes in the workfare program as they occur.

(vi) State agencies or political subdivisions submitting a = workfare=20 plan must submit with the plan an operating budget covering the = period=20 from the initiation of the workfare program's implementation = schedule to=20 the close of the Federal fiscal year. In addition, an estimate of = the cost=20 for one full year of operation must be submitted together with the = workfare plan. For subsequent fiscal years, the workfare program = budget=20 must be included in the State agency's budget.

(vii) If workfare plans are submitted by more than one = political=20 subdivision, each representing the same population (such as a city = within=20 a county), the Department will determine which political = subdivision will=20 have its plan approved. Under no circumstances will a food stamp = recipient=20 be subject to more than one food stamp workfare program. If a = political=20 subdivision chooses to operate a workfare program and represents a = population which is already, at least in part, subject to a food = stamp=20 workfare program administered by another political subdivision, it = must=20 establish in its workfare plan how food stamp recipients will not = be=20 subject to more than one food stamp workfare program.

(3) Operating agency responsibilities. (i) General. = The=20 operating agency, as designated by the State agency or other = political=20 subdivision that submits a plan, is responsible for establishing = and=20 monitoring job sites, interviewing and assessing eligible = recipients,=20 assigning eligible recipients to appropriate job sites, monitoring = participant compliance, making initial determinations of good = cause for=20 household noncompliance, and otherwise meeting the requirements of = this=20 paragraph (m).

(ii) Establishment of job sites. Workfare job slots may = only be=20 located in public or private nonprofit agencies. Contractual = agreements=20 must be established between the operating agency and organizations = providing jobs that include, but are not limited to, designation = of the=20 slots available and designation of responsibility for provision of = benefits, if any are required, to the workfare participant.

(iii) Notifying State agency of noncompliance. The = operating=20 agency must notify the State agency of noncompliance by an = individual with=20 a workfare obligation when it determines that the individual did = not have=20 good cause for the noncompliance. This notification must occur = within five=20 days of such a determination so that the State agency can make a = final=20 determination as provided in paragraph (m)(4)(iv) of this = section.

(iv) Notifications. (A) State agencies must establish = and use=20 notices to notify the operating agency of workfare-eligible = households.=20 The notice must include the case name, case number, names of=20 workfare-eligible household members, address of the household,=20 certification period, and indication of any part-time work. If the = State=20 agency is calculating the hours of obligation, it must also = include this=20 in the notice. If the operating agency is computing the hours to = be=20 worked, include the monthly allotment amount.

(B) Operating agencies must establish and use notices to notify = the=20 workfare participant of where and when the participant is to = report, to=20 whom the participant is to report, a brief description of duties = for the=20 particular placement, and the number of hours to be worked.

(C) Operating agencies must establish and use notices to notify = the=20 State agency of failure by a household to meet its workfare=20 obligation.

(v) Recordkeeping requirements. (A) Files that record = activity=20 by workfare participants must be maintained. At a minimum, these = records=20 must contain job sites, hours assigned, and hours completed.

(B) Program records must be maintained, for audit and review = purposes,=20 for a period of 3 years from the month of origin of each record. = Fiscal=20 records and accountable documents must be retained for 3 years = from the=20 date of fiscal or administrative closure of the workfare program. = Fiscal=20 closure, as used in this paragraph (m), means that workfare = program=20 obligations for or against the Federal government have been = liquidated.=20 Administrative closure, as used in this paragraph (m), means that = the=20 operating agency or Federal government has determined and = documented that=20 no further action to liquidate the workfare program obligation is=20 appropriate. Fiscal records and accountable records must be kept = in a=20 manner that will permit verification of direct monthly = reimbursements to=20 recipients, in accordance with paragraph (m)(7)(iii) of this = section.

(vi) Reporting requirements. The operating agency is = responsible=20 for providing information needed by the State agency to fulfill = the=20 reporting requirements contained in paragraph (m)(4)(v) of this=20 section.

(vii) Disclosure. The provisions of =A7272.1(c) of this = chapter=20 restricting the use and disclosure of information obtained from = food stamp=20 households is applicable to the administration of the workfare=20 program.

(4) State agency responsibilities. (i) If a political=20 subdivision chooses to operate a workfare program, the State = agency must=20 cooperate with the political subdivision in developing a plan.

(ii) The State agency must determine at certification or=20 recertification which household members are eligible for the = workfare=20 program and inform the household representative of the nature of = the=20 program and of the penalties for noncompliance. If the State = agency is not=20 the operating agency, each member of a household who is subject to = workfare under paragraph (m)(5)(i) of this section must be = referred to the=20 organization which is the operating agency. The information = identified in=20 paragraph (m)(3)(iv)(A) of this section must be forwarded to the = operating=20 agency within 5 days after the date of household certification.=20 Computation of hours to be worked may be delegated to the = operating=20 agency.

(iii) The State agency must inform the household and the = operating=20 agency of the effect of any changes in a household's circumstances = on the=20 household's workfare obligation. This includes changes in benefit = levels=20 or workfare eligibility.

(iv) Upon notification by the operating agency that a = participant has=20 failed to comply with the workfare requirement without good cause, = the=20 State agency must make a final determination as to whether or not = the=20 failure occurred and whether there was good cause for the failure. = If the=20 State agency determines that the participant did not have good = cause for=20 noncompliance, a sanction must be processed as provided in = paragraphs=20 (f)(1)(i) and (f)(1)(ii) of this section. The State agency must=20 immediately inform the operating agency of the months during which = the=20 sanction will apply.

(v) The State agency must submit quarterly reports to FNS = within 45=20 days of the end of each quarter identifying for that quarter for = that=20 State:

(A) The number of households with workfare-eligible recipients = referred=20 to the operating agency. A household will be counted each time it = is=20 referred to the operating agency;

(B) The number of households assigned to jobs each month by the = operating agency;

(C) The number of individuals assigned to jobs each month by = the=20 operating agency;

(D) The total number of hours worked by participants; and

(E) The number of individuals against which sanctions were = applied. An=20 individual being sanctioned over two quarters should only be = reported as=20 sanctioned for the earlier quarter.

(vi) The State agency may, at its option, assume responsibility = for=20 monitoring all workfare programs in its State to assure that there = is=20 compliance with this section and with the plan submitted and = approved by=20 FNS. Should the State agency assume this responsibility, it would = act as=20 agent for FNS, which is ultimately responsible for ensuring such=20 compliance. Should the State agency determine that noncompliance = exists,=20 it may withhold funding until compliance is achieved or FNS = directs=20 otherwise.

(5) Household responsibilities. (i) Participation=20 requirement. Participation in workfare, if assigned by the = State=20 agency, is a Food Stamp Program work requirement for all nonexempt = household members, as provided in paragraph (a) of this section. = In=20 addition:

(A) Those recipients exempt from Food Stamp Program work = requirements=20 because they are subject to and complying with any work = requirement under=20 title IV of the Social Security Act are subject to workfare if = they are=20 currently involved less than 20 hours a week in title IV work = activities.=20 Those recipients involved 20 hours a week or more may be subject = to=20 workfare at the option of the political subdivision; and

(B) Those recipients exempt from Food Stamp Program work = requirements=20 because they have applied for or are receiving unemployment = compensation=20 are subject to workfare.

(ii) Household obligation. The maximum total number of = hours of=20 work required of a household each month is determined by dividing = the=20 household's coupon allotment by the Federal or State minimum wage, = whichever is higher. Fractions of hours of obligation may be = rounded down.=20 The household's hours of obligation for any given month may not be = carried=20 over into another month.

(6) Other program requirements. (i) Conditions of = employment.=20 (A) A participant may be required to work a maximum of 30 = hours per=20 week. This maximum must take into account hours worked in any = other=20 compensated capacity (including hours of participation in a title = IV work=20 program) by the participant on a regular or predictable part-time = basis.=20 With the participant's consent, the hours to be worked may be = scheduled in=20 such a manner that more than 30 hours are worked in one week, as = long as=20 the total for that month does not exceed the weekly average of 30=20 hours.

(B) No participant will be required to work more than eight = hours on=20 any given day without his or her consent.

(C) No participant will be required to accept an offer of = workfare=20 employment if it fails to meet the criteria established in = paragraphs=20 (h)(1)(iii), (h)(1)(iv), (h)(2)(i), (h)(2)(ii), (h)(2)(iv), and = (h)(2)(v)=20 of this section.

(D) If the workfare participant is unable to report for job = scheduling,=20 to appear for scheduled workfare employment, or to complete the = entire=20 workfare obligation due to compliance with Unemployment Insurance=20 requirements; other Food Stamp Program work requirements = established in=20 paragraph (a)(1) of this section; or the job search requirements=20 established in paragraph (e)(1)(i) of this section, that inability = must=20 not be considered a refusal to accept workfare employment. If the = workfare=20 participant informs the operating agency of the time conflict, the = operating agency must, if possible, reschedule the missed = activity. If the=20 rescheduling cannot be completed before the end of the month, that = must=20 not be considered as cause for disqualification.

(E) The operating agency must assure that all persons employed = in=20 workfare jobs receive job-related benefits at the same levels and = to the=20 same extent as similar non-workfare employees. These are benefits = related=20 to the actual work being performed, such as workers' compensation, = and not=20 to the employment by a particular agency, such as health benefits. = Of=20 those benefits required to be offered, any elective benefit that = requires=20 a cash contribution by the participant will be optional at the = discretion=20 of the participant.

(F) The operating agency must assure that all workfare = participants=20 experience the same working conditions that are provided to = non-workfare=20 employees similarly employed.

(G) The provisions of section 2(a)(3) of the Service Contract = Act of=20 1965 (Public Law 89=96286), relating to health and safety = conditions, apply=20 to the workfare program.

(H) Operating agencies must not place a workfare participant in = a work=20 position that has the effect of replacing or preventing the = employment of=20 an individual not participating in the workfare program. Vacancies = due to=20 hiring freezes, terminations, or lay-offs must not be filled by = workfare=20 participants unless it can be demonstrated that the vacancies are = a result=20 of insufficient funds to sustain former staff levels.

(I) Workfare jobs must not, in any way, infringe upon the = promotional=20 opportunities that would otherwise be available to regular = employees.

(J) Workfare jobs must not be related in any way to political = or=20 partisan activities.

(K) The cost of workers' compensation or comparable protection = provided=20 to workfare participants by the State agency, political = subdivision, or=20 operating agency is a matchable cost under paragraph (m)(7) of = this=20 section. However, whether or not this coverage is provided, in no = case is=20 the Federal government the employer in these workfare programs = (unless a=20 Federal agency is the job site). The Department does not assume = liability=20 for any injury to or death of a workfare participant while on the = job.

(L) The nondiscrimination requirement provided in =A7272.6(a) = of this=20 chapter applies to all agencies involved in the workfare = program.

(ii) Job search period. The operating agency may = establish a job=20 search period of up to 30 days following certification prior to = making a=20 workfare assignment during which the potential participant is = expected to=20 look for a job. This period may only be established at household=20 certification, not at recertification. The potential participant = would not=20 be subject to any job search requirements beyond those required = under this=20 section during this time.

(iii) Participant reimbursement. The operating agency = must=20 reimburse participants for transportation and other costs that are = reasonably necessary and directly related to participation in the = program.=20 These other costs may include the cost of child care, or the cost = of=20 personal safety items or equipment required for performance of = work if=20 these items are also purchased by regular employees. These other = costs may=20 not include the cost of meals away from home. No participant cost=20 reimbursed under a workfare program operated under Title IV of the = Social=20 Security Act or any other workfare program may be reimbursed under = the=20 food stamp workfare program. Only reimbursement of participant = costs up to=20 but not in excess of $25 per month for any participant will be = subject to=20 Federal cost sharing as provided in paragraph (m)(7) of this = section.=20 Reimbursed child care costs may not be claimed as expenses and = used in=20 calculating the child care deduction for determining household = benefits.=20 In accordance with paragraph (m)(4)(i) of this section, a State = agency may=20 decide what its reimbursement policy shall be.

(iv) Failure to comply. When a workfare participant is=20 determined by the State agency to have failed or refused without = good=20 cause to comply with the requirements of this paragraph (m), the=20 provisions of paragraph (f) of this section will apply.

(v) Benefit overissuances. If a benefit overissuance is=20 discovered for a month or months in which a participant has = already=20 performed a workfare or work component requirement, the State = agency must=20 apply the claim recovery procedures as follows:

(A) If the person who performed the work is still subject to a = work=20 obligation, the State must determine how may extra hours were = worked=20 because of the improper benefit. The participant should be = credited those=20 extra hours toward future work obligations; and

(B) If a workfare or work component requirement does not = continue, the=20 State agency must determine whether the overissuance was the = result of an=20 intentional program violation, an inadvertent household error, or = a State=20 agency error. For an intentional program violation a claim should = be=20 established for the entire amount of the overissuance. If the = overissuance=20 was caused by an inadvertent household error or State agency = error, the=20 State agency must determine whether the number of hours worked in = workfare=20 are more than the number which could have been assigned had the = proper=20 benefit level been used in calculating the number of hours to = work. A=20 claim must be established for the amount of the overissuance not = =93worked=20 off,=94 if any. If the hours worked equal the amount of hours = calculated by=20 dividing the overissuance by the minimum wage, no claim will be=20 established. No credit for future work requirements will be = given.

(7) Federal financial participation =97(i) = Administrative=20 costs. Fifty percent of all administrative costs incurred by = State=20 agencies or political subdivisions in operating a workfare program = will be=20 funded by the Federal government. Such costs include those related = to=20 recipient participation in workfare, up to $25 per month for any=20 participant, as indicated in paragraph (m)(6)(iii) of this = section. Such=20 costs do not include the costs of equipment, capital expenditures, = tools=20 or materials used in connection with the work performed by = workfare=20 participants, the costs of supervising workfare participants, the = costs of=20 reimbursing participants for meals away from home, or reimbursed = expenses=20 in excess of $25 per month for any participant. State agencies = must not=20 use any portion of their annual 100 percent Federal E&T = allocations to=20 fund the administration of optional workfare programs under = section 20 of=20 the Food Stamp Act and this paragraph (m).

(ii) Funding mechanism. The State agencies have = responsibility=20 for disbursing Federal funds used for the workfare program through = the=20 State agencies' Letters of Credit. The State agency must also = assure that=20 records are being maintained which support the financial claims = being made=20 to FNS. This will be for all programs, regardless of who submits = the plan.=20 Mechanisms for funding local political subdivisions which have = submitted=20 plans must be established by the State agencies.

(iii) Fiscal recordkeeping and reporting requirements.=20 Workfare-related costs must be identified by the State agency = on the=20 Financial Status Report (Form SF=96269) as a separate column. All = financial=20 records, supporting documents, statistical records, negotiated = contracts,=20 and all other records pertinent to workfare program funds must be=20 maintained in accordance with =A7277.12 of this chapter.

(iv) Sharing workfare savings =97(A) Entitlement. = A=20 political subdivision is entitled to share in the benefit = reductions that=20 occur when a workfare participant begins employment while = participating in=20 workfare for the first time, or within thirty days of ending the = first=20 participation in workfare.

(1) To begin employment means to appear at the place of = employment and=20 to begin working.

(2) First participation in workfare means performing work for = the first=20 time in a particular workfare program. The only break in = participation=20 that does not end the first participation will be due to the = participant's=20 taking a job which does not affect the household's allotment by an = entire=20 month's wages and which is followed by a return to workfare.

(B) Calculating the benefit reductions. The political=20 subdivision will calculate benefit reductions from each workfare=20 participant's employment as follows.

( 1 ) Unless the political subdivision knows otherwise, = it will=20 presume that the benefit reduction equals the difference between = the last=20 allotment issued before the participant began the new employment = and the=20 first allotment that reflects a full month's wages, earned income=20 deduction, and dependent care deduction attributable to the new = job.

( 2 ) If the political subdivision knows of other = changes=20 besides the new job that affect the household's allotment after = the new=20 job began, the political subdivision will obtain the first = allotment=20 affected by an entire month's wages from the new job. The = political=20 subdivision will then recalculate the allotment to account for the = wages,=20 earned income deduction, and dependent care deduction attributable = to the=20 new job. In recalculating the allotment the political subdivision = will=20 also replace any benefits from a State program funded under title = IV-A of=20 the Social Security Act received after the new job with benefits = received=20 in the last month before the new job began. The difference between = the=20 first allotment that accounts for the new job and the recalculated = allotment will be the benefit reduction.

( 3 ) The political subdivision's share of the benefit = reduction=20 is three times this difference, divided by two.

( 4 ) If, during these procedures, an error is = discovered in the=20 last allotment issued before the new employment began, that = allotment must=20 be corrected before the savings are calculated.

(C) Accounting. The reimbursement from workfare will be = reported=20 and paid as follows:

( 1 ) The political subdivision will report its enhanced = reimbursement to the State agency in accordance with paragraph = (m)(7)(iii)=20 of this section.

( 2 ) The Food and Nutrition Service will reimburse the=20 political subdivision in accordance with paragraph (m)(7)(ii) of = this=20 section.

( 3 ) The political subdivision will, upon request, make = available for review sufficient documentation to justify the = amount of the=20 enhanced reimbursement.

( 4 ) The Food and Nutrition Service will reimburse only = the=20 political subdivision's reimbursed administrative costs in the = fiscal year=20 in which the workfare participant began new employment and which = are=20 acceptable according to paragraph (m)(7)(i) of this section.

(8) Voluntary workfare program. State agencies and = political=20 subdivisions may operate workfare programs whereby participation = by food=20 stamp recipients is voluntary. In such a program, the penalties = for=20 failure to comply, as provided in paragraph (f) of this section, = will not=20 apply for noncompliance. The amount of hours to be worked will be=20 negotiated between the household and the operating agency, though = not to=20 exceed the limits provided under paragraph (m)(5)(ii) of this = section. In=20 addition, all protections provided under paragraph (m)(6)(i) of = this=20 section shall continue to apply. Those State agencies and = political=20 subdivisions choosing to operate such a program shall indicate in = their=20 workfare plan how their staffing will adapt to anticipated and=20 unanticipated levels of participation. The Department will not = approve=20 plans which do not show that the benefits of the workfare program, = in=20 terms of hours worked by participants and reduced food stamp = allotments=20 due to successful job attainment, are expected to exceed the costs = of such=20 a program. In addition, if the Department finds that an approved = voluntary=20 program does not meet this criterion, the Department reserves the = right to=20 withdraw approval.

(9) Comparable workfare programs. In accordance with = section=20 6(o)(2)(C) of the Food Stamp Act, State agencies and political=20 subdivisions may establish programs comparable to workfare under = this=20 paragraph (m) for the purpose of providing ABAWDs subject to the = time=20 limits specified at =A7273.24 a means of fulfilling the work = requirements in=20 order to remain eligible for food stamps. While comparable to = workfare in=20 that they require the participant to work for his or her = household's food=20 stamp allotment, these programs may or may not conform to other = workfare=20 requirements. State agencies or political subdivisions desiring to = operate=20 a comparable workfare program must meet the following = conditions:

(i) The maximum number of hours worked weekly in a comparable = workfare=20 activity, combined with any other hours worked during the week by = a=20 participant for compensation (in cash or in kind) in any other = capacity,=20 must not exceed 30;

(ii) Participants must not receive a fourth month of food stamp = benefits (the first month for which they would not be eligible = under the=20 time limit) without having secured a workfare position or without = having=20 met their workfare obligation. Participation must be verified = timely to=20 prevent issuance of a month's benefits for which the required work = obligation is not met;

(iii) The State agency or political subdivision must maintain = records=20 to support the issuance of benefits to comparable workfare = participants=20 beyond the third month of eligibility; and

(iv) The State agency or political subdivision must provide a=20 description of its program, including a methodology for ensuring=20 compliance with (m)(9)(ii) of this section. The description should = be=20 submitted to the appropriate Regional office, with copies = forwarded to the=20 Food Stamp Program National office.

[67 FR 41603, June 19, 2002, as amended at 71 FR 33382, June 9, = 2006]

Browse=20 Previous | Browse=20 Next

For questions or comments = regarding e-CFR=20 editorial content, features, or design, email ecfr@nara.gov.

For = questions=20 concerning e-CFR programming and delivery issues, email webteam@gpo.gov.

Section = 508 / Accessibility

 

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