Policy                                                 Issuance Number: FSC 04-08

Food Stamp Certification Manual                     Issuance Date: 08-01-04

From: Joni Jones, Director                                    Expiration Date: Until Superseded

Subj:  Categorical Eligibility and Fraud Penalties

     Pages to be deleted                                                  Pages to be added 

Front                      1851 to 1852                                       1851 to 1852

Back                      1852 to 1920                                       1852 to 1920

Front                      1920 to 1920                                       1920 to 1920.2

Back                      1920 to 1923                                       1920.2 to 1921

Front                      1924 to 1924                                       1922 to 1924

Back                      1925 to 1930                                       1925 to 1930

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Front                      5408 to 5409                                       5408 to 5409

Back                      5409 to 5410                                       5409 to 5410

Front                      5410 to 5411                                       5410 to 5411

Back                      5411 to 5412                                       5411 to 5412

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Front                      16790 to 16800                                   16790 to 16800

Back                      16800 to 16810                                   16800 to 16810

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            Front                      16820 to 16840                                   16820 to 16840

            Back                      16840 to 16910                                   16840 to 16920

            Front                      16920 to 16920                                   None

            Back                      None                                                    None

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Forms to be deleted                                                         Forms to be added

            DCO-19 (rev. 09/03)                                                         DCO-19 (rev. 08/04)

Summary of Changes

1.      FSC 1852 - This section has been updated with the correct slot numbers for the Central Office Food Stamp Section.

2.      FSC 1910 - This section has been updated to agree with the current policy at FSC 8720.

3.      FSC 1920 - This policy has been revised so that a household may not be classified as a categorically eligible household if a household member has been disqualified for an IPV or has been convicted for a drug-related felony.  Also, language has been added to clarify that ineligible household members will not be included as eligible household members just because the household is categorically eligible.

4.      FSC 1920.1 - This is a new section.  It provides instructions for classifying households as categorically eligible due to receipt of SSI benefits.

5.      FSC 1920.2 - This is a new section.  It provides instructions for classifying households as categorically eligible due to receipt of TEA benefits.

6.      FSC 1923 - This section has been updated to reflect the new categorical eligibility guidelines.

7.      FSC 1924 - This section has been updated to reflect the new categorical eligibility guidelines.  In the last paragraph, information has been added to clarify when a manual approval notice must be issued.

8.      FSC 5408 - This section has been updated to reflect current policy since educational loans are now excluded as income.

9.      FSC 5410 - This section has been revised to clarify the procedures for determining income when food stamp overpayments are recouped from other federal benefits under the Treasury Offset Program (TOP). 

10.  FSC 16800 - The penalty for trading food stamp benefits for a controlled substance has been changed to 24 months for the first violation and permanently for the second violation.  Also, additional information has been added to clarify when a penalty must be imposed for an intentional program violation.

11.  FSC 16840 - This policy has been updated with the new guidelines for disqualifying household members found guilty of trading food stamp benefits for controlled substances.

12.  DCO-19 - This form has been revised to reflect the new penalties for trading food stamp benefits for controlled substances.  It is available on DHS GOLD.

Inquiries to: Betty Helmbeck, Food Stamp Section, (501) 682-8284, Betty.Helmbeck@mail.state.ar.us