Tenn. Comp. R. & Regs. 1240 — Human Services

1240-01 Family Assistance Division

Chapter 1240-01-01 Introduction and Right to Apply

Tenn. Comp. R. & Regs. 1240-01-01-.01 SCOPE AND PURPOSE

(1) Pursuant to the requirements of Public Chapter 950 (1996), the Families First Act of 1996, the Families First (Temporary Assistance) Program was created to replace the Aid to Families with Dependent Children (AFDC) program in order to reform the program of economic assistance to needy families in Tennessee. These rules implement the Families First program as authorized by the Public Act 950 (1996), and as codified in Title 71 of the Tennessee Code Annotated; the federal Temporary Assistance for Needy Families (TANF) block grant under Title IV-A of the Social Security Act; the Personal Responsibility Act of 1996 (P.L. 103-196); and, the Deficit Reduction Act of 2005 ( P.L. 109-171), as amended.

(2) Pursuant to Tennessee Code Annotated, Section 71-3-157(d), the Department of Human Services is directed to administer the program of economic assistance to families under Title IV-A of the Social Security Act pursuant to federal statutes or regulations as they continue to exist after the effective date of Public Chapter 950 on September 1, 1996 or pursuant to any waivers authorized by the federal government as a result of the enactment of Public Chapter 950 (1996).

(3) Effective Date of Waiver; Applicable Rules for Eligibility or Appeals of Cases Determined During Waiver Period.

(a) A waiver to operate the Families First program under certain exceptions to federal law was granted to the State of Tennessee by the U.S. Department of Health and Human Services on July 25, 1996 until June 30, 2007.

(b) Upon review of cases or upon review of eligibility determinations, all initial eligibility determinations prior to the expiration of the waiver shall be reviewed, or determined on appeal, pursuant to applicable terms of the waiver and otherwise applicable law during such period. All eligibility determinations after June 30, 2007, shall be reviewed, or determined on appeal, pursuant to the terms of applicable law then in effect. Where terms of the waiver and federal or state law or regulations are in conflict, the terms of the waiver control during the waiver's effective dates.

(4) In order to provide continued specific interpretation of certain responsibilities of the Department of Human Services under Title IV-A, Title IV-D, and Title XIX of the Social Security Act which continue to be necessary for the administration of the Families First program, the provisions of paragraph (5) referencing Chapters 1240-1-2 through 1240-1-44 inclusive, Rules of the Tennessee Department of Human Services, Family Assistance Division, as they existed prior to September 1, 1996 or prior to the implementation date of Public Chapter 950 (1996), or as they may be amended thereafter, will apply to Chapter 1240-1-45 through 1240-1-56, but only where not otherwise in conflict with, or superseded by:

(a) The specific requirements of 1240-1-45 through 1240-1-56;

(b) Federal law or regulations or action transmittals or interpretations of the United States Department of Health and Human Services, as they exist or are amended, or by federal or state court orders which affect Chapter 1240-1-1—1240-1-56 or which otherwise affect the Department of Human Services’ responsibility under Title IV-A, Title IV-D and Title XIX of the Social Security Act.

(5) The following provisions of Chapters 1240-1-2 through 1240-1-44, as limited by Paragraph (4), and as they relate to the Title IV-A, Title IV-D, and Title XIX Medicaid programs concerning the operation of the Families First program, are incorporated by reference into the Families First Program:

(a) Chapter 1240-1-13 - Case Records Management.

(b) Chapter 1240-1-14 - Application Process.

(c) Chapter 1240-1-15 - Interviewing for Eligibility.

(d) Chapter 1240-1-16 - Verification Procedures.

(e) Chapter 1240-1-17 - Timeliness Standards.

(f) Chapter 1240-1-18 - Authorization of Grants and Allotments.

(g) Chapter 1240-1-19 - Continuing Responsibilities.

(h) Chapter 1240-1-43 - Protection of Children.

(6) (a) Families First, also referred to as Temporary Assistance or Temporary Assistance to Needy Families (TANF), means the program to provide economic support and other support services to families which is provided by the State of Tennessee utilizing funds made available by the Congress of the United States and the Secretary of the Federal Department of Health and Human Services to the State of Tennessee pursuant to the Social Security Act, and any state funds which may be appropriated by the General Assembly designated to support the temporary assistance program.

(b) Throughout Chapter 1240-1-1 through Chapter 1240-1-44 and Chapters 1240-1-45 through 1240-1-56, and where the context requires, the use of the term “Families First” shall encompass the Temporary Assistance (TA)/Temporary Assistance to Needy Families (TANF) program referenced in Public Chapter 950 (1996), and references to the receipt or application for “Families First” shall, only where the context so requires, mean Temporary Assistance or Temporary Assistance to Needy Families.

(c) Any existing references to “Aid to Families with Dependent Children” or “AFDC” shall be construed to refer to the Families First program.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, 71-3- 158(d)(2)(D); 42 U.S.C. §§ 601 et seq.; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Tenn. Comp. R. & Regs. 1240-01-01-.02 RIGHT TO APPLY

(1) Any person wishing to do so shall have the opportunity to apply for Food Stamps/AFDC without delay.

(2) Information about the programs of assistance administered by the Department of Human Services shall be provided to any person requesting it.

(3) Applications must be filed in the Department of Human Services county office of the applicant's residence and must be on a form prescribed by the agency. The application must be filed by the applicant himself/herself, his/her authorized representative or designated agent, or someone acting responsibly for him/her.

(4) An applicant may be assisted by an individual of his/her choosing in the various aspects of the application/redetermination of eligibility process. However. it is unlawful for any person/agency to charge or receive anything of value, either directly or indirectly, for providing such assistance to a person requesting aid.

(5) Reserved for future use.

(6) Proof of eligibility is not required of a person prior to his/her filing an application.

(7) The right to file an application shall not be denied to any person even through it is apparent to the worker that eligibility for Food Stamps/AFDC benefits does not exist.

History

• Authority: TCA §§ 4-5-201 et seq., 4-5-202, 4-5-209, 14-8-106; 14-8-118; 14-27-104; 7 CFR 273.2; 45 CFR 206.10, 71-1-105, 71-3-152, 71-3-153, 71-3-154; 71-3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq. and 42 U.S.C. § 608(a)(6)(A); 45 C.F.R. § 206.10; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Public Necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Chapter 1240-01-02 Family Assistance Unit Food Stamp Program

Tenn. Comp. R. & Regs. 1240-01-02-.01 ASSISTANCE GROUPS

(1) Food Stamps and/or AFDC benefits may be provided to an individual or to a group of people.

The people applying for or receiving Food Stamps/AFDC benefits are referred to as a household in the Food Stamp Program and as an aid group in AFDC. This has been abbreviated as HH/AG.

(2) Reserved for Future Use.

History

• Authority: T.C.A. §§ 14-8-106, 14-8-118, and 14-27-104; 7 C.F.R. 273.2; and 45 C.F.R. 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-02-.02 HOUSEHOLD CONCEPT - FOOD STAMPS ONLY

(1) Household Definition. A household may be composed of any of the following individuals or groups of individuals provided that such individuals or groups of individuals are not residents of an institution, except as defined in 1240-01-02-.02(4)(b) or residents of a commercial boarding house.

(a) Household 1. An individual living alone.

2. An individual living with others, but customarily purchasing food and preparing meals for home consumption separate and apart from the others.

3. A group of individuals who live together and customarily purchase food and prepare meals together for home consumption.

4. Boarders may participate as members of the household which provides the boarder services at the household’s request.

5. An individual who is sixty (60) years of age or older (and the spouse of such individual) who lives with others and who is unable to purchase and prepare meals separately because he/she suffers from a disability considered permanent under the Social Security Act or some other non-disease-related severe permanent disability. In order for this individual and spouse to be eligible for separate household status, the combined gross income of all others with whom the individual resides (excluding the individual and his/her spouse’s income) cannot exceed one hundred sixty-five percent (165%) of the poverty level as shown in the Table below:

No. of Persons in Household 1 2 3 4 5 6 7 8 9 10 165% of Poverty $1490 $2004 $2518 $3032 $3547 $4061 $4575 $5089 $5604 $6119 For each additional member add $515 (b) Separate household status shall not be granted to:

1. Children under 18 years of age under the parental control of a member of the household;

2. A spouse of a member of the household. A spouse refers to either of two individuals:

(i) Who would be defined as married to each other under applicable state law; or (ii) Who are living together and are holding themselves out to the community as husband and wife.

3. Boarders;

4. Siblings (natural, adopted, half or stepbrothers and sisters) under 18 years of age who are not under the parental control of another sibling;

5. Children under age 22 who live in the home with a parent (natural, step, or adoptive).

(2) Head of Household. The head of the household is the person in whose name application is made for participation in the program. The household may select any adult parent of a child in the household as the head of the household if all adult members who apply for Food Stamps agree to that selection. The selection of the head of household shall be made at each certification of the household’s eligibility for the Food Stamp Program, but may not change between certifications unless there is a change in household composition. If the head of the household is unable to file the application, the spouse, another responsible household member, or an authorized representative may apply for the household.

(3) Non-Household Members. In some cases, individuals may reside with a household who cannot be considered members of that household. Such persons shall not be considered in determining the household’s eligibility or benefit level. Non-household members who are otherwise eligible may participate in the program as separate households. Note: The status of roomer, boarder, or live-in attendant shall not be extended to any of the individuals listed in 1240-01-02-.02(1)(b) above.

(a) Roomers. Roomers are individuals to whom the household furnishes lodging for compensation, but not meals.

(b) Boarders. A boarder is defined as an individual residing in a household and paying compensation to the household for lodging and meals. If an applicant household identifies any individual in the household as a boarder, the following provisions apply:

1. Boarder status shall not be extended to any of the individuals listed in 1240-01- 02-.02(1)(b) above with the exception of (1)(b)4.

2. Boarder status shall also not be extended to persons paying less than a reasonable monthly payment for meals. An individual furnished both meals and lodging by the household, but paying compensation of less than a reasonable amount, will be considered a member of the household which provides the meals and lodging. When the boarder’s payment for room is distinguishable from the payment for meals, only the amount paid for meals will be evaluated to determine if reasonable compensation is being paid in cash. A reasonable monthly payment shall be either of the following:

(i) Boarders whose board arrangement is for more than two meals a day shall pay an amount which equals or exceeds the coupon allotment for the appropriate size of the boarder household; or (ii) Boarders whose board arrangement is for two meals or less per day shall pay an amount which equals or exceeds two thirds of the coupon allotment for the appropriate size of the boarder household.

3. Boarders are ineligible to participate in the program independent of the household providing the board. They may participate as members of the household providing boarder services to them at such household’s request. The household within which the boarder resides including the household of the proprietor of a boarding house may participate in the program if the household meets all the eligibility requirements for program participation.

4. None of the income or resources of individuals determined to be boarders who are not considered members of the household providing the boarder services (as prescribed in (3) above) shall be considered available to such household.

However, the amount of the payment that a boarder gives to a household shall be treated as self-employment income to the household.

(c) Live-in Attendants. An “attendant” is an individual whose presence in the household is solely for medical, housekeeping, child care, or similar reasons and is not a part of the normal household composition.

(d) Students. Students are persons enrolled in an institution for higher education who are ineligible because they fail to meet the eligibility criteria set forth in section 1240-01-02 (6)(2).

(e) Others. Other individuals who share living quarters with the household but who do not customarily purchase food or prepare meals with the household are also nonhousehold members.

Note: Non-household members shall not have their income and resources considered available to the household. Cash payment from the non-household member to the household is considered income unless the non-household member is making vendor payments. If the household shares deductible expenses with the non-household member, only the amount actually paid or contributed by the household shall be deducted as a household expense. If the payments or contributions cannot be differentiated, the expenses shall be divided evenly among persons actually paying or contributing to the expense and only the household’s pro rata share may be deducted.

(4) Ineligible Households. Households which are ineligible by law are as follows:

(a) Residents of Commercial Boarding Houses. A boarding house shall be defined as a commercial establishment which offers meals and lodging for compensation with the intention of making a profit. Residents of such boarding houses are not eligible for program benefits. The number of boarders residing in a boarding house shall not be used to determine if a boarding house is a commercial enterprise. The household of the proprietor of a boarding house may participate in the program as a household separate and apart from the residents of the boarding house, if that household meets all the eligibility requirements for program participation.

(b) Residents of Institutions. Individuals shall be considered residents of an institution when the institution provides them with the majority of their meals as part of the institution’s normal services and the institution has not been authorized to accept coupons. Residents of institutions are not eligible for participation in the program, with the following exceptions:

1. Residents of federally subsidized housing for the elderly, built under either

Section 202 of the National Housing Act of 1959 or Section 236 of the National Housing Act.

2. Narcotic addicts or alcoholics who, for the purposes of regular participation in a drug or alcohol treatment and rehabilitation program, reside at a facility or treatment center.

3. Disabled or blind individuals who are residents of group living arrangements [as defined in the Definition Section 1240-01-08-.01(34)] and who receive benefits under Title II (RSDI) or Title XVI (SSI) of the Social Security Act.

4. Residents of shelters for battered women and children as defined in 1240-01-08- .01(74). Such persons temporarily residing in shelters for battered women and children shall be considered individual household units for the purpose of applying for and participating in the program.

5. Residents of non-profit shelters that provide meals to the homeless.

(c) Fleeing felons and probation/parole violators. No member of a household who is otherwise eligible to participate in the Food Stamp Program shall be eligible to participate in the program as a member of that or any other household during any period during which the individual is:

1. Fleeing to avoid prosecution, or custody or confinement after conviction, under the law of the place from which the individual is fleeing, for a crime, or attempt to commit a crime, that is a felony under the law of the place from which the individual is fleeing or that, in the case of New Jersey, is a high misdemeanor under the law of New Jersey; or 2. Violating a condition of probation or parole imposed under a federal or state law.

(5) Absent Wage Earners. Wage earners absent from the household because of work-related travel or who must frequently, but temporarily, reside away from the household for periods of time because of the distance of their work from the household should usually be included as household members. Each case should be evaluated on its own merits. If an absent wage earner can establish that he/she is a separate household, he/she should be excluded from the case in establishing the household allotment. The wage earner and the household are responsible for establishing to the satisfaction of the worker that they are not part of the same household before the wage earner can be excluded.

(6) Special Households (a) Students 1. Definition of a Student.

(i) For purposes of this section a student is any person who meets the following criteria:

(I) Between the ages of 18 and 50;

(II) Physically and mentally fit; and (III) Enrolled at least half-time in an institution of higher education.

(ii) Such persons shall be ineligible to participate in the Food Stamp Program unless that person complies with the eligibility requirements of part 2. of this subparagraph.

2. Student Eligibility Criteria. Any person who is physically and mentally fit between the ages of 18 and 50 and who in enrolled at least half-time in an institution of higher education shall not be eligible for participation in the Food Stamp Program unless such person meets at least one of the following criteria:

(i) Be working an average of 20 hours each week or an average of 80 hours per month or if self-employed, be working an average of 20 hours per week or an average of 80 hours per month or receiving monthly earnings at least equal to the Federal minimum wage multiplied by 80 hours;

(ii) Must participate in a State or federally funded work-study program (funded in full or in part by Title IV, Part C of the Higher Education Act of 1965, as amended) during the school year;

(iii) Is responsible for the care of a dependent household member under the age of six;

(iv) Is responsible for the care of a dependent household member over the age of five but under the age of twelve for whom adequate child care is not available;

(v) Is receiving benefits from the Aid to Families with Dependent Children Program or its successor program(s);

(vi) Assigned to or placed in an institution of higher education through a program under the Job Training and Partnership Act (JTPA);

(vii) Is at least age 50, the maximum age for students attending institutions of higher education who are prohibited from receiving food stamp benefits;

(viii) Is participating in JOBSWORK or the Families First Employment and Training Program, or successor program(s), and is enrolled in an institution of higher education as a result of participation in this program;

(ix) Is a full-time student who is a single parent, responsible for the care of a child under age 12, regardless of the availability of adequate child care;

(x) Is a student assigned to an institution of higher learning by the Food Stamp Employment and Training Program;

(xi) Is enrolled in a program under Section 236 of the Trade Act of 1974.

3. Validity of Enrollment Period Status. Once a student enrolls in an institution of higher education, such enrollment shall be deemed to continue through normal periods of class attendance, vacation, and recess, unless the student graduates, is suspended or expelled, drops out, or does not intend to register for the next school term (excluding summer school).

4. Eligibility During Periods of Non-Enrollment. Students eligible during the school year would continue to be eligible during summer months. However, students not eligible during the school year would remain ineligible during vacation periods unless they actually obtain work or otherwise meet the criteria applied to determine student eligibility. Students who fail to maintain continuous enrollment status or who do not intend to register for the next normal school session (excluding summer school) would lose their student status and be treated as any other person/household.

5. When Student Is Not Eligible. If the student is not eligible and is a member of an otherwise eligible household, the remaining household members may continue participation or be certified eligible for participation.

6. Income and Resources of an Ineligible Student. The income and resources of an ineligible student living with a household shall not be considered in determining eligibility or level of benefits for the household.

7. Work Registration. Students who meet the criteria for eligibility are exempt from work registration requirements.

8. Reporting a Change in Student Status. The student is responsible for reporting changes in his/her circumstances which would have an impact on his/her eligibility under the eligibility requirements for reporting changes.

9. Students’ Income. Students have unusual sources of income. Income peculiar to student households includes scholarships, fellowships, educational grants, deferral payment loans, veteran’s educational benefits, cash gifts or awards for educational expenses, and cash or vendor payments from parents. Such sources of income result in an uneven cash flow. The payments are usually received in one payment but are intended to cover a specific period of time, a semester, school year, etc.; likewise, the major expenses of education (tuition and mandatory fees) are also paid at one time, again emphasizing the uneven cash flow.

10. Disqualified vs. Ineligible Students. A student is only disqualified because of failure to meet the enumeration requirement or fraud. A student is ineligible if he/she fails to meet the student eligibility requirements. However, the other household members, if any, may be certified if otherwise eligible. See 1240-01- 02-.02(6)(b) and 1240-01-02-.02(6)(c) for procedures involving the income and resources of these students.

(b) Excluded Household Members. The following individuals residing within a household shall be excluded from the household when determining the household’s size for the

purpose of assigning a benefit level to the household or of comparing the household’s monthly income with the income eligibility standards. However, the income and resources of excluded individuals shall be considered available to the remaining household members. Such individuals may not participate in the program as separate households:

1. Ineligible aliens or individuals with questionable citizenship.

2. Individuals disqualified for failure to provide or to apply for a social security number.

3. Individuals disqualified for intentional program violation.

4. Persons disqualified for non-compliance with the Food Stamp Program work requirements, including voluntary quit.

5. An individual who is convicted of trafficking food stamp benefits of $500 or more is permanently disqualified.

6. Individuals who have been convicted by a federal, state, or local court of a second violation of trading food stamp benefits for a controlled substance.

7. Individuals who have been found by a federal, state, or local court to have committed a first violation of trading firearms, ammunition, or explosives for food stamp benefits.

8. An individual who is found to have made fraudulent statement or representation with respect to identity or residence in order to receive multiple benefits simultaneously shall be ineligible to participate in the Food Stamp Program for ten (10) years.

9. An individual who is determined to be a fleeing felon or parole violator under 1240-01-02-.02(4)(c) above is ineligible for the Food Stamp Program.

10. An individual who is an ineligible able-bodied adult without dependents.

11. An individual convicted under federal or state law of a felony offense which occurred after August 22, 1996 and which involved the possession, use or distribution of a controlled substance, unless the individual is complying with or has already complied with all obligations (including any substance abuse treatment requirements) imposed by the criminal court, and (i) The conviction was not classified as a Class A felony or its equivalent, if the offense occurred outside of Tennessee; and (ii) Is currently participating in a substance abuse treatment program approved by the Department of Human Services; or (iii) If not actively participating in a substance abuse treatment program approved by the Department of Human Services, is currently enrolled in such a program, but is on a waiting list for participation, and enters the treatment program at the first opportunity; or (iv) Has satisfactorily completed a substance abuse program approved by the Department of Human Services; or (v) A treatment provider licensed by the Department of Health, Division of Alcohol and Drug Abuse Services, has determined that the individual does not need substance abuse treatment according to TennCare guidelines.

(c) Applying Financial Eligibility Standards for Excluded Household Members 1. Ineligible Aliens/Questionable Citizenship/Enumeration Disqualification.

(i) Resources. The resources of such excluded household members shall continue to be counted in their entirety to the remaining household members.

(ii) Income. The earned and/or unearned income of the above household members shall continue to be counted as income, less a pro rata share for the excluded individual. All but the excluded member(s)’ share is counted as income for the remaining household members.

(iii) Deductible Expenses. That portion of the excluded individual’s earned income which is attributed to the household shall have the 20% earned income deduction applied. That portion of the household’s allowable shelter and dependent care expenses which are either paid by or billed to the excluded member(s) shall be evenly divided among the household members, including the excluded member(s). All but the excluded member(s)’ share is counted as a deductible expense for the remaining household members.

(iv) Determining Eligibility and Benefit Level. Excluded members shall not be included when determining the household’s size for the purpose of assigning a benefit level to the household or for purposes of comparing the household’s monthly income with the income eligibility standards or the household’s resources with the resource eligibility limits.

(v) Reduction or Termination of Benefits Within the Certification Period.

Whenever an individual is excluded within the household’s certification period, the worker shall determine the eligibility or ineligibility of the remaining household members based, as much as possible, on information in the case file. A notice of adverse action shall be issued which informs the household of the exclusion, the reason for the exclusion, the eligibility and benefit level of the remaining members, and the actions the household must take to end the exclusion.

2. Individuals disqualified for intentional program violation, conviction of trafficking in food stamp benefits of $500 or more, fraudulent misrepresentation of identity or residence in order to receive multiple benefits simultaneously; found by a federal, state or local court to have committed a second violation of trading food stamp benefits for a controlled substance; found by a federal, state or local court to have committed a first violation of trading of firearms, ammunition or explosives for benefits; convicted of a felony offense which occurred after August 22, 1996 and involved the possession, use or distribution of a controlled substance, except as provided at 1240-01-02-.02(6)(b)11.; or determined to be a fleeing felon or a probation/parole violator as defined in 1240-01-02-.02(6)(b)9., or for noncompliance with the Program work requirements as stated in 1240-01-03-.43 and .44.

(i) Resources. The resources of such disqualified household members shall continue to count in their entirety to the remaining household members.

(ii) Income. The earned and/or unearned income of the disqualified member(s) shall continue to count in their entirety to the remaining household members.

(iii) Deductible Expenses. The entire household’s allowable earned income deduction, medical, dependent care, and excess shelter deductions shall continue to apply to the remaining household members.

(iv) Determining Eligibility and Benefit Level. The disqualified member(s) shall not be included when determining the household’s size for the purpose of assigning a benefit level to the household, or comparing the household’s monthly income with the eligibility standards, or for comparing the household’s resources with the resource eligibility limits.

(v) Reduction or Termination of Benefits Within the Certification Period.

Whenever an individual is disqualified within the household’s certification period, the worker shall determine the eligibility or ineligibility of the remaining household members based, as much as possible, on information in the case file. The worker shall notify the remaining members of their eligibility and benefit level at the same time the disqualified member is notified of his or her disqualification. The household is not entitled to a notice of adverse action but may request a fair hearing to contest the reduction or termination of benefits unless the household has already had a fair hearing on the amount of the claim.

(d) PA and SSI Households 1. Definitions of Cash Assistance Households. Cash Assistance Households are those in which all members are receiving Aid to Families with Dependent Children (AFDC) or its successor programs(s).

(i) Joint Cash Assistance - Food Stamp Application. Households in which all members are applying for Cash Assistance may be allowed to apply for Food Stamp benefits at the same time they apply for Cash Assistance.

2. SSI Households (i) SSI Definitions. The following definitions will apply to SSI households:

(I) “SSI” means monthly cash payments made under the authority of Title XVI of the Social Security Act, as amended, to the aged, blind, and disabled. “SSI recipient” means an individual or an individual and his/her eligible spouse who receive SSI.

(II) Persons potentially eligible for SSI cannot be required to make application for SSI benefits as a condition of Food Stamp or Cash Assistance eligibility.

(ii) Eligibility Standards. SSI recipients and their essential persons may apply for and participate in the Food Stamp Program as other non-assistance households and must meet all income and resource standards, as well as all non-financial eligibility criteria. Persons potentially eligible for SSI cannot be required to make application for SSI benefits as a condition of Food Stamp or AFDC eligibility.

(e) Authorized Representatives/Designated Agents 1. Food Stamps (i) An authorized representative must be:

(I) Designated in writing by the head of the household or the spouse, or another responsible member of the household; and (II) An adult who is sufficiently aware of relevant household circumstances. In the event the only adult member of a household is classified as a non-household member, that person may be designated as the authorized representative for the minor household members.

(ii) The head of the household, spouse, or any other responsible member of the household may designate an authorized representative to act on behalf of the household in one or all of the following capacities:

(I) Making Application for the Program. When the head of the household or the spouse cannot make application, another responsible household member may apply or an adult nonhousehold member may be designated as the authorized representative for that purpose. The Food Stamp Application, and/or a written statement shall be completed and signed by the head of the household, spouse, or responsible household member designating this authorized representative. The head of the household or the spouse should prepare or review the application whenever possible, even though another household member or the authorized representative will actually be interviewed. The worker shall inform the household that the household will be held liable for any overissuance which results from erroneous information given by the authorized representative, unless the household is participating in a drug or alcohol treatment center. The household’s authorized representative may complete Form DES-511 or DES-511C for those household members required to register for work.

(II) Obtaining the Coupons. An authorized representative may be designated to obtain coupons. These designations shall be made at the time the application is completed and an authorized representative shall be named on the ID Card. The authorized representative for coupon issuance may be the same individual designated to make application. The authorized representative may use coupons to purchase food provided he/she has the household’s ID card with the full knowledge and consent of the household. The household should be encouraged to name an authorized representative for obtaining coupons in case of illness or other circumstances which might result in inability to obtain coupons. The household may also designate an emergency authorized representative at a later date. An emergency authorized representative is someone who obtains coupons when neither a household member nor the authorized representative is able to obtain them because of unforeseen circumstances. An emergency authorized representative shall be designated in writing on the ATP card each time an emergency authorized representative is used.

(III) Restriction on Authorized Representatives I. County office employees involved in the certification and/or issuance process and retailers authorized to accept food coupons may not act as authorized representative without the specific written approval of the Regional Supervisor or his/her designee, and only if that official determines that no one else is available to serve as an authorized representative.

II. County offices which have obtained evidence that an authorized representative has misrepresented a household’s circumstances and has knowingly provided false information pertaining to the household, or has made improper use of coupons, may disqualify that authorized representative from participating as an authorized representative in the Food Stamp Program for up to one year. The worker shall send written notification to the affected household(s) and the authorized representative thirty days prior to the date of disqualification. The notification shall include the proposed action, the reason for the proposed action, the household’s right to request a fair hearing, the telephone number of the office, and if possible, the name of the person to contact for additional information. This provision is not applicable in the case of drug and alcoholic treatment centers and those group homes which act as authorized representatives for their residents.

2. AFDC. A designated agent is an adult named by a person requesting AFDC to act for him/her in filing an application, gathering required information, representing him/her at a fair hearing, and like matters. The designated agent acts for the applicant/recipient in such matters but cannot receive/expend the person’s AFDC grant unless he/she is also the person’s legally appointed guardian or has been named alternate/protective payee.

(f) Categorically Eligible Households. Certain households comprised of SSI and/or AFDC recipients are categorically eligible for Food Stamps as provided in rule 1240-01-14- .15.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 71-1-105, and 71-5-304; 7 U.S.C. § 2014; 7 U.S.C. § 2015(e)(4); 7 C.F.R. § 272.3(c)(1)(ii); 7 C.F.R. § 273.5(b)(5) Food and Nutrition Service Waiver (September 1, 2010); 7 C.F.R. § 273.5(b)(6); and 7 C.F.R. §§ 273.1, 273.1(b)(2), 273.9, and 273.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed November 6, 1980; effective December 22, 1980. New rule filed December 10, 1981; effective January 25, 1982. Amendment filed April 2, 1982; effective May 17, 1982. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed March 3, 1983; effective April 4, 1983. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed May 17, 1983; effective June 16, 1983. Amendment filed September 4, 1984; effective October 4, 1984. Amendment filed October 29, 1985; effective January 14, 1986. Amendment filed April 15, 1986; effective July 14, 1986. Amendment filed July 23, 1986; effective October 29, 1986. Amendment filed August 5, 1986; effective November 29, 1986. Amendment filed September 29, 1986; effective December 29, 1986. Amendment filed November 28, 1986; effective February 28, 1987. Amendment filed May 8, 1987; effective August 29, 1987. Amendment filed April 4, 1997; effective June 18, 1997. Amendment filed July 28, 2000; effective October 11, 2000. Amendment filed September 18, 2001; effective December 2, 2001. Amendment filed August 28, 2002; effective November 11, 2002. Amendment filed December 11, 2002; effective February 24, 2003. Amendment filed February 27, 2004; effective May 12, 2004. Amendment filed December 9, 2004; effective February 22, 2005. Amendment filed December 5, 2005; effective February 18, 2006. Amendment filed December 11, 2006; effective February 24, 2007. Amendment filed November 16, 2007; effective January 30, 2008. Amendment filed December 30, 2008; effective March 15, 2009. Amendment filed November 9, 2009; effective February 7, 2010. Amendment filed January 7, 2011; effective April 7, 2011.

Tenn. Comp. R. & Regs. 1240-01-02-.03 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105; PL § 98-369, §§ 2361, and 2640; PL 97-35; and 45 C.F.R. 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal and new rule filed January 7, 1985; effective February 6, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Chapter 1240-01-03 Non-Financial Eligibility Requirements

Tenn. Comp. R. & Regs. 1240-01-03-.01 NON-FINANCIAL ELIGIBILITY REQUIREMENTS

Every applicant and recipient of AFDC and Food Stamps must meet certain technical eligibility requirements other than financial eligibility.

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.02 RESIDENCE

(1) As condition of eligibility to receive benefits, an HH/AG must reside in Tennessee. Food Stamp recipient must also reside in the county where benefits are received. While AFDC has no county residence requirements, the AFDC application is to be filed in the county of residence for processing purposes.

(2) No individual may receive benefits as a member of more than one household or aid group or in more than one county or state within the same month with the following exception: For food stamp purposes, an individual or persons may participate as a member of more than one household if such persons are residents of a shelter for battered women and children as defined in 1240-01-08-.01(74) and was a member of a household containing the person who had abused him/her. There is no durational requirement in either AFDC or Food Stamps.

(a) Definition of Resident.

1. Food Stamps. A resident is one who is living in the county in which an application for Food Stamp participation is filed. Residence shall not mean domicile nor shall the county impose any durational residence requirements. Residence shall not mean an intent to permanently reside in the county, however, persons in a county solely for vacations shall not be considered residents. A fixed residence is not required.

2. AFDC. For the purpose of the AFM Program, a resident is defined as one who:

(i) Is living in the state (or county) voluntarily with the intention of making his/her home here and not for a temporary purpose. A child is a resident of the state (or county) in which he/she is living other than on a temporary

basis. (Persons in the state or county for visits or vacations are not residents.) or one who:

(ii) Is living, at the time of application, in the state (or county), not receiving benefits from another locality, and who entered the state (or county) with a job commitment or to seek employment. For this purpose, a child is a resident of the state (or county) where the caretaker is a resident.

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed April 2,1982; effective May 17,1982.

Tenn. Comp. R. & Regs. 1240-01-03-.03 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105; and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.04 TERMINATION OF RESIDENCE

(1) Food Stamps. When a Food Stamp recipient leaves a county for any place in the United States and requests case transfer, transfer procedures will be followed.

(2) AFDC. When an AFDC recipient notifies the department (or it is learned) that he/she is moving out of state, payments must be terminated promptly within current fiscal and notice constraints. If a recipient is moving to another county within the state, the case is to be transferred to the new county.

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.05 REPORTING ADDRESSES

An applicant/recipient may have both a physical address and a mailing address. If the two are different, both addresses will be required. A mailing address only, such as post office box, general delivery or a rural route, will not be sufficient as it does not indicate that the HH/AG resides in the county. If the address is a rural route, information must be given to identify the exact location of the home.

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.06 VERIFICATION

(1) Food Stamps.

(Rule 1240-01-03-.0 6, continued)

(a) The worker shall verify residence prior to certification except in unusual cases where verification of residency cannot reasonably be accomplished. For example, migrant farmworker households or homeless households newly arrived in a county area may not be able to verify their residency prior to certification.

(b) Verification of residency should be accomplished to the extent possible in conjunction with the verification of other information such as, but not limited to, rent and mortgage payments, utility expenses, and identity. If verification cannot be accomplished in conjunction with the verification of other information, the worker shall use a collateral contact or other readily available documentary evidence. Documents used to verify other factors of eligibility should normally suffice to verify residency as well. Any documents or collateral contacts which reasonably establish the applicant’s residency must be accepted and no requirement for a specific type of verification may be imposed. No durational residency requirement shall be established.

(c) When transfer procedures have not been followed, questions may arise regarding prior participation during the month of application. In all questionable cases, the county should call the Regional EDP Center and request that the information be verified through the CRT terminal or available Authorization to Purchase listing. The worker may also use a simple statement signed by the head of the household attesting to the fact that coupons were not obtained during the month in another county or state and attempt an after the fact verification.

(2) AFDC. Some evidence of an applicant/recipient’s residence is to be required prior to approval and at redetermination.

(3) AFDC and Food Stamps. When evidence is necessary to establish residence, documents with the HH/AU’s address shall be the primary source of verification although collateral contact and/or home visits may be used if documentary evidence cannot be obtained.

Verification shall not be limited to a single document. Assistance must be provided to the HH/AU in obtaining verification if such assistance is needed.

(a) Duplicate Addresses. Duplicate addresses constitute questionable circumstances and require verification.

(b) Home Visit. Home visits shall be used as verification of residence only if documentary evidence cannot be obtained and the visit is scheduled in advance with the HH/AU.

(c) Collateral Contacts. A collateral contact is a confirmation of an HH/AU circumstances by a person outside of the household who is in a position to know the facts. The acceptability of a collateral contact shall not be restricted to a particular individual but may be anyone that can be expected to provide an accurate third party verification of the household’s statement.

(d) Discrepancies. Where information from another source contradicts statements made by the HH/AU, the HH/AU shall be afforded a reasonable opportunity to resolve the discrepancy prior to an eligibility determination. If discrepancies cannot be resolved in a reasonable period of time, benefits will be denied/terminated.

History

• Authority: T.C.A. §§ 14-8-103, 14-8-106, and 14-27-104; PL 99-198; 51 Federal Register 98 (May 21, 1986); 7 C.F.R. 273.2; 7 C.F.R. 273.3; and 4 C.F.R. 233.40.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 28, 1981; effective October 13, 1981. Amendment filed September 29, 1986; effective December 29, 1986.

Tenn. Comp. R. & Regs. 1240-01-03-.07 RESERVED

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224-50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.08 CITIZENSHIP

(1) As a condition of eligibility to receive food stamps, an individual must be:

(a) A citizen of the United States, or (b) A qualified alien who has been lawfully admitted for permanent residence as described in § 1240-01-03-.12.

1. The United States is defined as the 50 States and the District of Columbia, Puerto Rico, Guam and the Virgin Islands. In addition, nationals from American Samoa or Swain’s Island are considered U.S. citizens for eligibility purposes.

2. An assistance group (AG) with a member who does not meet one of the above criteria will not prevent the remainder of the food stamp household from applying for benefits and, if eligible, receiving benefits.

(2) As a condition of eligibility for cash assistance under a program authorized by Title IV-A of the Social Security Act, an individual must be:

(a) A citizen of the United States, or (b) An alien lawfully admitted for permanent residence or otherwise permanently residing in the United States under color of law as described in § 1240-01-03-.12.

1. The United States is defined as the 50 States and the District of Columbia, Puerto Rico, Guam, and the Virgin Islands. In addition, nationals from American Samoa or Swain’s Island are considered U.S. citizens for eligibility purposes.

2. An ineligible alien will be excluded from the Families First assistance group, but may receive a grant for children in his/her care if they are eligible.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105, 71-3-157, and 71-3-158; PL 104-193; 7 C.F.R. 273.4; and 45 C.F.R. 233.30.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repealed and new rule filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-03-.09 VERIFICATION OF U.S

CITIZENSHIP. An applicant’s statement that he/she and members of the HH/AG are U.S. citizens will be verified only when the statement is questionable.

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.10 METHOD OF VERIFICATION OF U.S

CITIZENSHIP. Acceptable forms of verification of citizenship include birth certificates, religious records, voter registration cards, certificates of citizenship or naturalization provided by INS, such as Identification Cards for use of Resident Citizens in the U.S.

(INS Form 1-179 or INS Form I-197) or U.S. passports. If the above forms of verification cannot be obtained and the person can provide a reasonable explanation as to why verification is not available, a signed statement will be accepted from someone who is a U.S. citizen which declares, under penalty of perjury, that the member in question is a U.S. citizen. The signed statement shall contain a warning of the penalties for helping someone commit fraud.

(Rule 1240-01-03-.1 0, continued)

History

• Authority: T.C.A. § 14-8-106 and 43 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.11 PROMPTNESS OF CASE ACTION - QUESTIONABLE CITIZENSHIP

(1) When there is a question as to whether a member of an HH/AG is in fact a U.S. citizen, prompt action is to be taken on the application as follows:

(a) Food Stamps. The member whose citizenship is in question shall be ineligible to participate and shall be treated as an excluded household member until proof of U.S. citizenship is obtained. If eligible, the remaining members of the household may be certified; however, all the income, less a pro rata share, and all the resources belonging to the person whose citizenship is questionable shall be considered available to the remaining household members.

(b) Cash Assistance under Title IV-A of the Social Security Act. The person whose U.S. citizenship cannot be verified within promptness standards will be excluded from the AG. Assistance payments for the remaining otherwise eligible persons will not be delayed. The income and resources of the excluded will not be taken into consideration in determining eligibility or the amount of payment unless the excluded person is a legally responsible relative of persons in the AG. When it is subsequently verified that the person is a U.S. citizen, he/she may be added to the AG, with no new application required. Payment retroactive to the date of application (but not prior to October 1, 1994) may be made if all other eligibility requirements were met at that time.

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-105; 7 C.F.R 273.2(f)(2)(ii)(b); and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed May 17, 1983; effective June 16, 1983. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-03-.12 ELIGIBLE ALIENS

(1) Food Stamp Program.

(a) General Requirements. In addition to U.S. citizens, certain aliens who are otherwise eligible are eligible to receive food stamp benefits. The alien status of each individual in the AG listed on the application as an alien is to be determined prior to certification/approval. Immigration and Nationalization Service (INS) documents presented or secured by the applicant/recipient shall be the primary source of verification of alien status. The Systematic Alien Verification for Entitlements (SAVE) system will be used whenever possible to validate the alien’s document and status.

(b) Description of Eligible Aliens.

1. Citizens and eligible aliens. The Department shall prohibit participation in the program by any person who is not a resident of the United States and one of the following:

(i) A United States citizen.

(ii) An alien who meets one of the following conditions, who is otherwise eligible, may receive benefits for a period of seven (7) years after designated alien status is achieved:

(I) A refugee admitted to the United States under section 207 of the Immigration and Nationality Act;

(Rule 1240-01-03-.1 2, continued)

(II) An alien granted asylum under section 208 of the Immigration and Nationality Act;

(III) An alien whose deportation is being withheld under section 243(h) of the Immigration and Nationality Act;

(IV) An alien granted status as a Cuban or Haitian entrant under section 501(e) of the Refugee Education Assistance Act of 1980; or (V) An alien admitted as an Amerasian immigrant under section 584 of the Foreign Operations, Export, Financing, and Related Programs Appropriations Act of 1988.

(iii) A permanent resident alien who is designated a qualified alien may receive benefits, if otherwise eligible, for an unlimited period of time. A qualified alien is one who:

(I) Has worked 40 qualifying quarters of coverage under Title II of the Social Security Act, or can be credited with such qualifying quarters;

I. Beginning January 1, 1997, any quarter in which an alien received any Federal means-tested public benefit (SSI, cash assistance under Title IV-A of the Social Security Act) is not counted as a qualifying quarter.

(II) Is a veteran of the U.S. Armed Forces, who was honorably discharged for reasons other than alienage;

I. The veteran must have met the minimum active-duty service requirements of section 5303A(d) of title 38, USC II. Military personnel who die during active duty service are veterans.

III. Filipinos described in title 107, 38 USC are considered veterans.

(III) Is an active duty member of the U.S. Armed Forces (other than active duty for training);

(IV) Is the spouse or unmarried dependent child of an individual described in items (II) and (III) of this subpart.

(iv) The requirements in 1240-01-03-.12(1)(b)1.(i)–(iii) shall not apply to an alien eligible for and participating in the Food Stamp Program at the time of the enactment of Public Law 104-193 (August 22, 1996) until the later of April 1, 1997 or the recertification of their household’s eligibility, so long as such recertification has been completed by August 22, 1997.

(v) Except as described in subpart (ii) of 1240-01-03-.12(1)(b)1., an individual designated as a qualified alien defined in 1240-01-03-.12(1)(b)1.(iii) who enters the United States on or after the date of enactment of PL 104-193 (August 22, 1996) is not eligible for any Federal means-tested public benefit for a period of five (5) years, beginning on the date of the alien’s entry into the United States with a status of “qualified alien.”

(Rule 1240-01-03-.1 2, continued)

(vi) An otherwise eligible alien who on August 22, 1996 was lawfully residing in the United States and was receiving Supplemental Security Income benefits, is eligible for benefits in the Food Stamp Program.

(vii) An otherwise eligible disabled alien who on August 22, 1996 was lawfully residing in the United States and who is blind or disabled as defined by the Food Stamp Act of 1977, and who is receiving benefits or assistance for blindness or disability, is eligible for benefits in the Food Stamp Program.

(viii) An otherwise eligible individual who is an American Indian born in Canada to whom the provisions of Section 289 of the Immigration and Nationality Act (8 USC 1359) apply, or who is a member of an Indian tribe [as defined in Section 4(e) of the Indian Self-Determination and Education Assistance Act (25 USC 450b(e)), is eligible for benefits in the Food Stamp Program.

(ix) An otherwise eligible individual who on August 22, 1996 was lawfully residing in the United States and who was sixty-five (65) years of age or older, is eligible for benefits in the Food Stamp Program.

(x) An otherwise eligible child who on August 22, 1996 was lawfully residing in the United States and who is currently under age eighteen (18), is eligible for benefits in the Food Stamp Program.

(xi) An otherwise eligible individual who is lawfully residing in the United States and who was a member of a Hmong or Highland Laotion tribe at the time the tribe rendered assistance to United States personnel by taking part in a military or rescue operation during the Vietnam era (as defined in Section 101 of title 38, USC), his/her spouse or unmarried dependent child, and/or his/her unremarried surviving spouse, is eligible for benefits in the Food Stamp Program.

(c) Eligibility of Sponsored Aliens. In determining the eligibility and amount of benefits of an alien for any Federal means-tested public benefits program, the income and resources of the alien shall be deemed to include:

1. All income and resources of any person who executed an affidavit of support under section 213A of the Immigration and Nationality Act on behalf of such alien;

2. All income and resources of the spouse of any person described in subparagraph (b)1.(iii) of this paragraph;

3. The income and resources specified in (1)(c)1. and 2. of this paragraph shall apply in determining eligibility at initial application and any reapplication for the alien until such time as the alien:

(i) Becomes a naturalized citizen of the United States; or (ii) Has worked 40 qualifying quarters of coverage as defined under Title II of the Social Security Act, and for any qualifying quarters worked after December 31, 1996, was not a recipient of any Federal means-tested public benefit during that period.

4. If, upon enactment of PL 104-193, a sponsor’s income and resources are being deemed to an alien in determining his/her eligibility for any Federal means-tested (Rule 1240-01-03-.1 2, continued) public benefits program, the deeming provisions in (1)(c)1. and 2. of this paragraph are effective the day after the day of enactment of PL 104-193.

5. If, upon enactment of PL 104-193, no income and resources of a sponsor are being deemed to an alien in determining his/her eligibility for any Federal meanstested public benefits program, the deeming provisions in (1)(c)1. and 2. of this paragraph are effective at any eligibility determination beginning 180 days after the date of enactment of PL 104-193.

(2) Cash Assistance Program.

(a) General Requirements. In addition to U.S. citizens, certain aliens who are otherwise eligible are eligible to receive Cash Assistance benefits. The alien status of each individual in the AG listed on the application as an alien is to be determined prior to certification/approval. INS documents presented or secured by the applicant/recipient shall be the primary source of verification of alien status. The Systematic Alien Verification for Entitlements (SAVE) system should be used to validate the alien’s documents and status whenever possible.

(b) Description of Eligible Aliens.

1. Citizens and eligible aliens. The Department shall prohibit participation in the program by any person who is not a resident of the United States and one of the following:

(i) A United States citizen;

(ii) An alien lawfully admitted for permanent residence or otherwise permanently residing in the United States under color of law, including certain aliens lawfully present in the United States as a result of the application of the following provisions of the Immigration and Nationality Act:

(I) Section 207(c), in effect after March 31, 1980 - Aliens Admitted as Refugees.

(II) Section 203(a)(7), in effect prior to April 1, 1980 - Individuals Who Were Granted Status as Conditional Entrant Refugees.

(III) Section 208 - Aliens Granted Political Asylum by the Attorney General.

(IV) Section 212(d)(5) - Aliens Granted Temporary Parole Status by the Attorney General.

(iii) An alien granted lawful temporary resident status pursuant to section 201, 302, or 303 of the Immigration Reform and Control Act of 1986 (PL 99-603) who must be either:

(I) A Cuban and Haitian entrant as defined in paragraph (1) or (2)(A) of

section 501(e) of PL 96-422, as in effect on April 1, 1983, or (II) An adult assistance applicant for OAA, AB, APTD, or AABD, or (Rule 1240-01-03-.1 2, continued)

(III) An applicant for Cash Assistance who is not a Cuban and Haitian applicant under part 3.(i) above who was adjusted to lawful temporary resident status more than five years prior to application.

(iv) All other aliens granted lawful temporary or permanent resident status, pursuant to sections 201, 302, or 303 of the Immigration Reform and Control Act of 1986, are disqualified for five years from the date lawful temporary resident status is granted.

(c) Aliens who apply for Cash Assistance for the first time must have the income and resources of their sponsor considered in determining their eligibility for assistance. The income and resources of the sponsor shall be considered for a period of three years after the alien’s entry into the United States. A sponsor is a person who signed an affidavit or other statement accepted by INS as an agreement to support an alien as a condition of the alien’s admission for permanent residence in the United States. The alien is responsible for obtaining the cooperation of his/her sponsor and for providing the information necessary to determine the alien’s eligibility. This will include material provided in support of the alien’s immigration application. Failure to obtain the sponsor’s cooperation or to supply the information will result in denial/closure of the application/case. Aliens who are exempted from this provision are aliens who were: paroled into the United States as refugee; granted political asylum by the Attorney General; admitted as Cuban or Haitian entrants; admitted under Section 203(a)(7) of the Immigration and Nationality Act prior to April 1, 1980; admitted under Section 207(c) of the Act after March 31, 1980; alien children of sponsors or of sponsor’s spouse; or recipients of AFDC prior to October 1, 1981, or a former AFDC or Families First recipient who reapplies in the future. Any alien under the sponsorship of a public or private agency/organization is not eligible to receive Cash Assistance within three years of entry into the country unless it is proven (and documented) that the agency is unable to meet their sponsorship obligations to the alien. (This may mean that the agency is no longer in existence.) The alien is required to submit documentary evidence as is available to facilitate this determination. Exception: An alien granted permanent resident status through the legalization process is ineligible for a five year period beginning with the date on which she/he was granted temporary resident status.

1. Establishing Income and Resource Amounts. The following steps are necessary in establishing the amount of income and resources which shall be deemed from the sponsor to the alien whether or not these are actually available to the alien.

(i) Income (I) Determine the gross earned and unearned income of the sponsor and the sponsor’s spouse (the latter’s income will be considered even if the marriage occurred after the affidavit of support was executed). If the sponsor, and/or spouse receives Cash Assistance or SSI, no income is to be considered available to the alien.

(II) Deduct from the gross earned income (wages, salaries, or net earnings from self employment) 20% of the total of such amounts or $175.00, whichever is less.

(III) Deduct the standard of need for the number of individuals living with the sponsor who are claimed by the sponsor and/or the sponsor’s spouse as dependents for Federal personal income tax liability.

(Rule 1240-01-03-.1 2, continued)

(IV) Deduct the amount the sponsor and/or his/her spouse pays to individuals outside the home who are claimed as dependents for Federal income tax purposes.

(V) Deduct any amount paid by the sponsor and/or his/her spouse for child support or alimony to individuals living outside the home.

(VI) The remaining income shall be considered as unearned income to the alien and shall be added to the alien’s own income in determining eligibility for assistance.

(VII) Follow Cash Assistance budgeting procedures beginning with the Gross Income Standard test.

(ii) Resources. The provision of considering the income and resources of the sponsor as available to the alien is not waived even though the sponsor may have revoked his/her sponsorship agreement. In those situations where the sponsor has absconded and his/her whereabouts is unknown, the alien(s) would not be eligible for assistance for the period of time for which the sponsor is liable for support, as need could not be established.

Income and resources which are deemed to a sponsored alien shall not be considered available to unsponsored members of the alien’s family except to the extent the income and resources are actually available.

Unsponsored members are not ineligible simply because a sponsored member fails to provide information regarding his/her sponsor. The following are steps to be taken in determining the amount of resources to be deemed from the sponsor to the alien:

(I) Determine the amount of countable resources of the sponsor and the sponsor’s spouse as though the sponsor was applying for Cash Assistance.

(II) Deduct $1500.00 from the total countable resources.

(III) The balance of the resources shall be considered available to the alien and added to the alien’s own countable resources in determining eligibility.

2. Multiple Sponsorship. When it is determined that an individual has agreed to sponsor multiple families, the amount to be deemed to the eligible families shall be divided equally among the families who are applying for assistance. If only one family applies for Cash Assistance, then the total amount of the sponsor’s liability (income and resources) shall be applied to the faintly so applying.

3. Liability for overpayments. Both the sponsor of the alien and the alien shall be jointly and severally liable for any overpayment made to such alien during the three year period following the alien’s entry into the United States if such overpayment was due to the sponsor’s failure to provide correct information except where it can be established that the sponsor was without fault or where good cause for failure to provide such information can be established. The same procedure for handling overpayments shall be applicable to aliens as for any other Families First recipient.

4. Establishing Good Cause - Good cause for failure of the sponsor to provide correct information to the Department includes the following:

(Rule 1240-01-03-.1 2, continued)

(i) The Department fails to request information regarding the sponsor’s income and resources.

(ii) The sponsor has had no direct contact with the Department concerning his/her income and resources, and he/she is unaware of the information provided by the sponsored alien.

(iii) Social and/or language barriers preclude the sponsor’s understanding and ability to provide the correct information.

(iv) Other unusual circumstances exist which indicate the failure to provide correct information is beyond the sponsor’s control.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 14-1-105, 14-8-106, 14-27-104, 71-1-105, and 71-5-304; 8 USC § 1612(a)(2); 8 USC § 1613(a); 7 C.F.R. 273.8(c)(3), 273.9(b)(4), 273.11(h), and 273.11(j); 45 C.F.R. 224.50, 233.50(a) and (b)(1), 233.51, 233.51(c)(3), (g)(4) and (5), and 233.52; PL 98-369, § 2635; PL 104-193, § 403(a)-(d); PL 105-185, and § 503-508; and Federal Register, Volume 51, Number 60 (March 28, 1986).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed January 7, 1985; effective February 6, 1985. Amendment filed August 5, 1986; effective November 29, 1986. Amendment filed May 8, 1987; effective August 29, 1987. Amendment filed February 12, 1988; effective May 29, 1988. Amendment filed April 4, 1997; effective June 18, 1997. Amendment filed September 18, 2001; effective December 2, 2001.

Tenn. Comp. R. & Regs. 1240-01-03-.13 INELIGIBLE ALIENS

All aliens other than those listed in 1240-01-03-.12 are ineligible for Food Stamp and Cash Assistance benefits. They shall not be included in an AG in either program.

After five years, those eligible aliens listed in 1240-01-03-.12(1)(b)1.(ii) shall become ineligible for the Food Stamp Program.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105, 71-3-157, and 71-3-158; PL 104-193; and 45 C.F.R. 233.50 and 233.51.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-03-.14 VERIFICATION OF ALIEN STATUS

Food Stamps and Cash Assistance. Verification of alien status must be presented by the applicant prior to approval/certification.

(1) When the Department determines that a member of a household requesting Food Stamp benefits is in this country illegally, the Department will report that information to the INS.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105, 71-3-157, and 71-3-158; PL 104-193; 7 C.F.R. 273.11; and 45 C.F.R. 233.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 19, 1982; effective September 16, 1982. Amendment filed August 5, 1986; effective November 29, 1986. Amendment filed May 8, 1987; effective August 29, 1987. Amendment filed February 12, 1988; effective May 29, 1988. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-03-.15 SOCIAL SECURITY ENUMERATION REQUIREMENTS

Enumeration is the procedure by which the Social Security Administration (SSA), in cooperation with the Department, assigns and/or verifies social security numbers (SSN) for AFDC or Food Stamp applicants/recipients. The SSN will be used by the Department only in the administration of the Family Assistance Program.

(1) Enumeration.

(a) As a condition of eligibility to receive AFDC or Food Stamps each applicant/recipient must:

(Rule 1240-01-03-.1 5, continued)

1. Furnish to the Department a Social Security Account Number (SSN) or numbers if more than one has been issued, or 2. If an individual’s account number is unknown or one has not been issued to him, application for an SSN must be filed.

This eligibility requirement applies to the grantee relative, caretaker, second parent and each child in the AFDC aid group and to each Food Stamp household member. A person who does not furnish or apply for a Social Security Number is not eligible to receive AFDC or Food Stamps. If an otherwise eligible A/R does furnish or apply for an SSN he/she may be approved for AFDC or Food Stamp benefits. Food Stamps Only. In the Food Stamp Program, if the household member is unable to provide the SSN prior to certification, he/she will be mandated to apply for one at the DHS county office, even if he/she applies for one directly to the SSA office prior to the Food Stamp application date.

(b) Informing Requirement.

1. Federal law and regulations require that each applicant or recipient be advised of the regulation requiring that he/she furnish a Social Security Number to this Department and how the number is to be used.

(i) Reserved for Future Use.

(ii) Reserved for Future Use.

(iii) Reserved for Future Use.

2. If, after an explanation is given, individual(s) who are required to furnish or apply for a Social Security Number refuse to do so, they shall be excluded from the AFDC aid group and shall be ineligible to participate in the Food Stamp Program.

(2) Mandatory Verification. Social Security Numbers shall be verified in one of the following ways:

(a) A/R with Social Security Card.

1. When an AFDC A/R has a Social Security Card which is viewed by the eligibility worker and there is evidence of a person’s age, citizenship and identity in the case folder, the SSN on the person’s Social Security Card will be considered a verified Social Security Number and will be entered on the Case Data Form at the time of case action. Observing the Food Stamp household member’s Social Security Card or any official document containing the SSN, shall be sufficient for Food Stamp purposes. Once a Social Security Number has been verified it shall be reverified only if the identity of the individual or the SSN becomes questionable. No further action is required of the worker.

2. AFDC Only. Documentary evidence used to establish age, citizenship and identity must be that which is specified in Chapter III of the Welfare Enumeration Manual furnished by the Social Security Administration.

(b) Reserved for Future Use.

(c) Reserved for Future Use.

(d) Reserved for Future Use.

(Rule 1240-01-03-.1 5, continued)

(e) Applicant/Recipient Applies Directly to SSA Office for Social Security Number Prior to Application Date. For the Food Stamp Program, if, at application the household member informs the worker that he/she does not have an SSN, but applied for one at the SSA Office prior to the application date, the worker shall advise the household member to apply for his/her SSN at the county office. The household must be informed that his/her application for food stamps cannot be approved until he/she either furnishes the SSN or applies for one at the DHS county office. In AFDC, if the worker is informed that application for the SSN was made directly to SSA, the worker shall request proof of such application. Form SSA 5028, Receipt for Application for a Social Security Number, may be used for that purpose. If the A/R is unable to provide such proof and does not wish to delay the approval process, the worker is to inform the A/R that application for the SSN may be made at the DHS county office. The A/R must also be informed that his/her eligibility for AFDC cannot be determined prior to providing the SSN, providing proof of application for one, or applying for one at the DHS county office.

(f) Bendex and SDX. Matching a reported Social Security Number with information supplied by the Social Security Administration (SSA) such as Bendex SDX computer tapes or printouts is also an acceptable method of verifying an SSN.

(g) Food Stamps Only.

1. Certification Prior to Receipt of a Social Security Number. Although a Social Security Number reported by the household must be verified, the worker shall not delay certification of an otherwise eligible household solely to validate any member’s SSN, even if the 30 day processing period has not expired. As soon as all other steps necessary to certify a household are completed except for verification of an SSN, the worker shall certify the household. If verification of an already reported SSN is not completed at initial certification, it shall be completed at the time of or prior to the household’s next recertification. Newly obtained Social Security Numbers shall be verified at recertification by use of Bendex, SDX or by observing the household member’s Social Security Card or an official document containing the SSN.

2. Failure to obtain a Social Security Number - Food Stamps Only. If a household member who has applied for an SSN has not received it by the end of the certification period, the worker shall complete another Form SS-5 at recertification. The household member without the SSN will be recertified, and may continue to participate in the Program as long as all other eligibility requirements are satisfied.

3. Refusal to Provide or Apply for a Social Security Number - Food Stamps Only. If the household member refuses to apply for the SSN at the county office or refuses to provide the SSN, the individual(s) shall be excluded from participation until the SSN is provided, or until he/she applies for one at the county office.

During the disqualification period, the affected member’s income and resources, shall be treated in accordance with Section 1240-01-02-.02(6)(b)2. Exclusion from participation applies only to the individual who refuses to provide/apply for the SSN at the county office, and not to the entire household.

(h) Special Situations - AFDC 1. SSA will not accept an application for a SSN for an unborn child. This application can be submitted only after the child is born.

(Rule 1240-01-03-.1 5, continued)

(i) Reserved for Future Use.

(ii) Reserved for Future Use.

2. Reserved for Future Use.

3. Reserved for Future Use.

History

• Authority: T.C.A. §§ 14-8-106, 14-27-104, and 14-27-105; 7 C.F.R. 273.6; and 45 C.F.R. 306.10 and 232.10.
• Administrative History: Original rule flied August 15, 1980; effective September 29, 1980. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed May 17, 1983; effective June 16, 1983.

Tenn. Comp. R. & Regs. 1240-01-03-.16 AGE REQUIREMENTS - FOOD STAMPS ONLY

(1) There is no requirement regarding age for Food Stamps eligibility purposes.

(2) There are other eligibility requirements in which age is related factor.

(3) At any time that a factor of eligibility is questionable, verification of the client’s statement is to be requested.

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.17 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-3-102, 14-8-103, 14-8-106, 14-27-104, and 71-1-105; and PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 3, 1980; effective January 19, 1981. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.18 SCHOOL ATTENDANCE - FOOD STAMPS ONLY

(1) There is no eligibility requirement regarding school attendance for Food Stamp purposes.

(2) There is a requirement that in order to be considered a student a person must attend school at least half-time and that such students between the ages of 18 and 60 must meet the criteria as specified in rule 1240-01-02-.02(6).

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 3, 1980; effective January 19, 1981.

Tenn. Comp. R. & Regs. 1240-01-03-.19 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-104, 14-8-106, 14-27-104, and 71-1-105; 7 C.F.R. 273.8; 45 C.F.R. 233.20; and PL 98-369 § 2642.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed July 20, 1982; effective October 13, 1982. Amendment filed January 7, 1985; effective February 6, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.20 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105; 45 C.F.R. 244.50 and C.F.R. 233.60(c)(i)(iv)(A); and 42 USC § 606(a).
• Administrative History: Original rule filed August 15, 1980; effective September (Rule 1240-01-03-.2 0, continued) 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Amendment filed January 30, 1985; effective March 1, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.21 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-1-105, 14-8-106, and 71-1-105; and 45 C.F.R. 224.50 and 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed September 19, 1985; effective December 14, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.22 RESERVED

History

• Authority: T.C.A. §§ 14-1-105 and 14-8-106; and 45 C.F.R. 224.50 and 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed September 19, 1985; effective December 14, 1985.

Tenn. Comp. R. & Regs. 1240-01-03-.23 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-1-105, 14-8-106, and 71-1-105; and 45 C.F.R. 224.50 and 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed September 19, 1985; effective December 14, 1985 (Formerly 1240-01-03-.22). Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.41 REPEALED

History

• Authority: T.C.A. §§ 14-1-105, 14-8-104, 14-8-106, and 14-27-104; PL 97-248 § 173; and 45 C.F.R. 224.50 and 232.20 (a).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed March 28, 1983; effective April 27, 1983. Repeal filed September 19, 1985; effective December 14, 1985.

Tenn. Comp. R. & Regs. 1240-01-03-.42 RESERVED

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-104; and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.43 , without good cause, the individual will be ineligible to participate in the Food Stamp Program for:

(a) The first violation, one (1) month or until compliance, whichever is later;

(b) The second or subsequent violation, 3 months or until compliance, whichever is later.

(c) During the period of disqualification, the individual will be treated as an excluded household member as described in § 1240-01-04-.17(7)(a)1.(ii).

(2) Determining Good Cause. Good cause for failure to comply with the Food Stamp Program work requirements includes circumstances beyond the household member’s control, such as, but not limited to:

(a) Personal illness, or illness of another household member which requires the individual’s presence;

(Rule 1240-01-03-.4 5, continued)

(b) Household emergencies which prevent compliance;

(c) Lack of transportation;

(d) The lack of adequate child care for children who have reached age 6, but are under age 12.

(3) Implementing the Disqualification.

(a) Within 10 days of determining that the noncompliance was without good cause, the county office will authorize the adverse action and a 10-day adverse action notice will be sent to the individual or household. The notice will specify:

1. The particular act of noncompliance committed;

2. The proposed period of disqualification and that the individual or household may reapply at the end of the disqualification period;

3. A description of the action which can be taken to end or avoid the sanction.

(b) The disqualification period will begin with the first month following the expiration of the adverse action notice period, unless a fair hearing is requested.

(c) Each individual or household has a right to a fair hearing to appeal a denial, reduction, or termination of benefits due to a determination of nonexempt status or a determination of failure to comply with the work registration or employment and training requirements.

(4) Ending the Disqualification.

(a) The disqualification for failure to comply with the work requirements will continue until the member who caused the violation complies with the requirement or becomes exempt from the requirement (other than exemption through the cash assistance program under Title IV-A of the Social Security Act or unemployment compensation work requirements), or for 3 months, whichever is later.

(b) If any household member who failed to comply joins a new household, the individual will remain ineligible for the rest of the disqualification period.

(5) Failure to Comply with a Families First work requirement which results in a disqualification for benefits in that program for a household or a household member will result in a ten percent (10%) reduction in the household’s food stamp allotment.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 71-1-105, 71-3-157, and 71-3-158; PL 104-193; and 7 C.F.R. 273.7(g).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed November 6, 1980; effective December 22, 1980. Amendment filed August 28, 1981; effective October 13, 1981. Repeal and new rule filed May 8, 1987; effective August 29, 1987. Amendment filed April 4, 1997; effective June 18, 1997. Amendment filed September 18, 2001; effective December 2, 2001.

Tenn. Comp. R. & Regs. 1240-01-03-.44 EMPLOYMENT AND TRAINING COMPONENTS

The Department of Human Services will establish employment and training components for food stamp applicants and recipients. Mandatory work registrants and volunteers may be assigned to or exempted from such components based on criteria established by the department.

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-104; 7 C.F.R. 273.7, 273.8, and 273.9; 49 Federal Register 39036; 45 C.F.R. 224.50; and 51 Federal Register 250 (December 31, 1986).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed November 6, 1980; effective December 22, 1980. Amendment filed March 22, 1985; effective April 21, 1985. Amendment filed April 15, 1986; effective July 14, 1986. Repeal and new rule filed May 8, 1987; effective August 29, 1987.

Tenn. Comp. R. & Regs. 1240-01-03-.45 FAILURE TO COMPLY, GOOD CAUSE, AND DISQUALIFICATION

(1) When a non-exempt individual fails or refuses to comply with the requirements set out in

Tenn. Comp. R. & Regs. 1240-01-03-.46 DISQUALIFICATION FOR VOLUNTARILY QUITTING A JOB OR REDUCING WORK

EFFORT. A household member who voluntarily quits his/her job of at least twenty (20) hours per week or voluntarily reduces his/her work hours to less than thirty (30) hours per week, without good cause, is subject to disqualification from participation in the Food Stamp Program.

(Rule 1240-01-03-.4 6, continued)

(1) A household member who voluntarily quits a job of less than twenty (20) hours per week will be disqualified from the program if his/her weekly earnings were at least equivalent to the federal minimum wage multiplied by twenty (20) hours.

(2) The provision in 1240-01-03-.46(1) does not apply when:

(a) For applicant households, a voluntary quit or voluntary reduction occurred more than sixty (60) days prior to the date of application, unless the household was receiving benefits at the time of the quit or reduction, but the Department did not learn about it until reapplication.

(b) The individual was on leave from a paid position of employment pursuant to the provisions of the Family Medical Leave Act of 1993, unless the individual does not return to work at the end of the period of leave.

(c) An involuntary reduction of work hours is imposed.

(d) The individual terminates a self-employment enterprise.

(e) The individual resigns from a job at the demand of the employer.

(f) The household member who quit his/her job secures new employment at comparable wages or hours and is then laid off, or through no fault of his own loses the new job. In this instance the earlier quit will not require his/her disqualification.

1. “Comparable wages or hours” does not require that the new job pay equal wages or provide equal hours of work; consideration must be given to new employment which might entail fewer hours or a lower salary, but which offers greater opportunities to improve job skills for future advancement.

(g) The individual was determined to have quit or reduced his/her hours with good cause.

(3) Determining Good Cause. Good cause for quitting a job or reducing the hours of employment includes, but is not limited to:

(a) The job is determined to be unsuitable, as described in 1240-01-03-.43(4);

(b) Circumstances beyond the individual’s control, such as illness, illness of another household member which requires the individual’s presence, a household emergency, or unavailability or transportation;

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

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

(e) Enrollment or at least half-time in any recognized school, training program or institution of higher learning that requires the household member to leave employment or reduce work hours;

(f) Another household member has accepted employment or enrolled at least half-time in a recognized school, training program, or institution of higher education in another county, which requires the household to relocate;

(Rule 1240-01-03-.4 6, continued)

(g) Resignation by a person under age sixty (60) which is recognized by the employer as retirement;

(h) The individual accepted a bona fide offer of employment of more than twenty (20) hours a week or in which the weekly earnings are equivalent to the Federal minimum wage multiplied by twenty (20) hours which, because of circumstances beyond the person’s control, the new job does not materialize or results in employment of less than twenty (20) hours a week or weekly earnings of less than twenty (20) times the Federal minimum wage;

(i) The individual left a job in connection with patterns of employment in which workers frequently move from one employer to another, such as migrant farm labor or construction work. The household may apply for food stamps between jobs, particularly when work is not yet available at the new job site. In such instances, the individual will be considered to have quit for good cause if this is a normal pattern of that type of employment.

(4) An employee of the Federal government, or of a state or local government who participates in a strike against such government, and is dismissed from his/her job because of participation in the strike, shall be considered to have voluntarily quit his/her job without good cause.

(5) Verification of Voluntary Quit/Good Cause Determination.

(a) The household has the primary responsibility for providing verification of questionable information related to the voluntary quit/reduction and good cause determination. When it is difficult or impossible for the household to obtain evidence in a timely manner, the county will offer to assist the household. Acceptable sources of verification include but are not limited to:

1. The previous or current employer;

2. Employee associations;

3. Union representative;

4. Grievance committees and organizations;

5. When documentary evidence cannot be obtained, the case manager is responsible for obtaining verification from an acceptable collateral contact provided by the household.

(b) When the circumstances of the quit/reduction cannot be verified for good reasons, the individual member will not be denied participation in the program. Examples of good reasons are resignation from employment due to discriminatory practices or unreasonable demands by the employer, or because the employer cannot be located.

(6) Implementing a Voluntary Quit/Reduction of Work Hours Disqualification.

(a) Applicant Households. When a determination is made that good cause did not exist for the voluntary quit or reduction, the individual will be disqualified from participating in the Food Stamp Program, as follows:

1. For the first violation, one (1) month or until compliance, whichever is later;

2. For the second or subsequent violation, three (3) months or until compliance, whichever is later;

(Rule 1240-01-03-.4 6, continued)

3. The household shall be provided a notice of denial explaining the proposed period of disqualification, the right to reapply at the end of the sanction period, and the right to a fair hearing.

(b) Participating Households. When a determination is made that good cause did not exist for the voluntary quit or reduction, the individual will be disqualified from participating in the Food Stamp Program, effective the month following the expiration of the notice of adverse action, as follows:

1. For the first violation, one (1) month or until compliance, whichever is later;

2. For the second or subsequent violation, three (3) months or until compliance, whichever is later;

3. The household shall be provided a termination notice explaining the proposed period of disqualification, the right to reapply a the end of the sanction period, and the right to a fair hearing.

4. When a participating household requests a fair hearing, with benefits to continue, and the Department’s action is upheld, the disqualification will begin the first month after the decision is rendered.

(c) When a disqualified individual joins another household, the sanction will follow the individual who caused the disqualification, and the remainder of the sanction period will apply to that individual.

(7) Ending the Disqualification.

(a) Disqualification of an individual shall be applied for the appropriate minimum time period even if the household member cures the disqualification during that period.

1. If an individual has failed to comply at the end of the minimum disqualification period, the disqualification shall continue until the individual cures the disqualification or becomes exempt from work registration requirements.

2. To cure the disqualification, the member must obtain employment comparable to the employment he/she quit, or increase work hours to at least thirty (30) hours per week unless such an increase is no longer possible through no fault of the employee.

(b) Eligibility may be reestablished during a disqualification period if the member who caused the disqualification becomes exempt from the work registration requirements, other than through the work requirements of a program under Title IV-A of the Social Security Act or Unemployment Compensation.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 14-27-104, and 71-5-304; 7 C.F.R. 273.7; 7 C.F.R. 273.7(d)(2); 7 C.F.R. 273.7(h); 7 C.F.R. 273.7(n)(1)-(5); 7 USC § 2015(d)(1)(A)(v); 7 USC § 2014(g); and 51 Federal Register 250 (December 31, 1986).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. New rule filed August 28, 1981; effective October 13, 1981. Repeal and new rule filed May 8, 1987; effective August 29, 1987. Amendment filed April 4, 1997; effective June 18, 1997. Amendment filed September 18, 2001; effective December 2, 2001.

Tenn. Comp. R. & Regs. 1240-01-03-.47 REPEALED

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-104; 7 C.F.R. 224.50; and 51 Federal Register 250 (December 31, 1986).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed May 8, 1987; effective August 29, 1987.

Tenn. Comp. R. & Regs. 1240-01-03-.48 REPEALED

History

• Authority: T.C.A. § 14-27-104; 7 C.F.R. 273.7; 49 Federal Register 39036; and 51 Federal Register 250 (December 31, 1986).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed November 6, 1980; effective December 22, 1980. Amendment filed August 28, 1981; effective October 13, 1981. Amendment filed March 22, 1985; effective April 21, 1985. Repeal filed May 8, 1987; effective August 29, 1987.

Tenn. Comp. R. & Regs. 1240-01-03-.49 REPEALED

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105; 42 USC § 601, Repealed; PL 100-485, Title 11, § 202(a), October 13, 1988; and Acts of 1996, Chapter 950 § 26.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal and new rule filed November 21, 1985; effective February 12, 1986. Repeal filed July 28, 2000; effective October 11, 2000.

Tenn. Comp. R. & Regs. 1240-01-03-.50 REPEALED

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105; 42 USC § 601, Repealed; PL 100-485, Title 11, § 202(a), October 13, 1988; and Acts of 1996, Chapter 950 § 26.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. New rule filed October 15, 1984; effective January 15, 1985. Repeal and new rule filed November 21, 1985; effective February 12, 1986. Repeal filed July 28, 2000; effective October 11, 2000.

Tenn. Comp. R. & Regs. 1240-01-03-.51 RESERVED

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.52 REPEALED

History

• Authority: T.C.A. § 14-8-106; PL 97-35; 45 C.F.R. 224.20; and PL 98-368 § 2631.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed January 7, 1985; effective February 6, 1985. Repeal filed November 21, 1985; effective February 12, 1986.

Tenn. Comp. R. & Regs. 1240-01-03-.53 REPEALED

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105; 42 USC § 601, Repealed; PL 100-485, Title 11, § 202(a), October 13, 1988; and Acts of 1996, Chapter 950 § 26.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed November 21, 1985; effective February 12, 1986. Repeal filed July 28, 2000; effective October 11, 2000.

Tenn. Comp. R. & Regs. 1240-01-03-.54 REPEALED

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105; 42 USC § 601, Repealed; PL 100-485, Title 11, § 202(a), October 13, 1988; and Acts of 1996, Chapter 950 § 26.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed November 21, 1985; effective February 12, 1986. Repeal filed July 28, 2000; effective October 11, 2000.

Tenn. Comp. R. & Regs. 1240-01-03-.55 REPEALED

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105; 42 USC § 601, Repealed; PL 100-485, Title 11, § 202(a), October 13, 1988; and Acts of 1996, Chapter 950 § 26.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed May 17, 1983; effective June 16, 1983. Repeal and new rule filed November 21, 1985; effective February 12, 1986. Repeal filed July 28, 2000; effective October 11, 2000.

Tenn. Comp. R. & Regs. 1240-01-03-.56 REPEALED

History

• Authority: T.C.A. § 14-8-10 and 42 USC 614.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed November 21, 1985; effective February 12, 1986.

Tenn. Comp. R. & Regs. 1240-01-03-.57 RESERVED

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.58 RESERVED

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.59 RESERVED

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 224.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-03-.60 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105; and 45 C.F.R. 233.106.
• Administrative History: Original rule filed August 17, 1982; effective September 16, 1982. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.61 REPEALED

History

• Authority: T.C.A. §§ 14-8-106(2) and 14-27-104(2); PL 97-253 § 6(c)(1); 7 C.F.R. 272.1 and 273.21; and 45 C.F.R. 233.31 through 233.37.
• Administrative History: Original rule filed August 17, 1982; effective September 16, 1982. Amendment filed May 17, 1983; effective June 16, 1983. Amendment filed December 6, 1983; effective January 5, 1984. Repeal filed March 1, 1991; effective April 13, 1991.

Tenn. Comp. R. & Regs. 1240-01-03-.24 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-1-105, 14-88-106, and 71-1-105; and 45 C.F.R. 224.50 and 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed September 19, 1985; effective December 14, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.25 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-1-105, 14-8-106, and 71-1-105; and 45 C.F.R. 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed September 19, 1985; effective December 14, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.26 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-1-105, 14-8-106, and 71-1-105; and 45 C.F.R. 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed September 19, 1985; effective December 14, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.27 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-3-102, and 71-1-105; and 45 C.F.R. 233.10 and 233.90.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.28 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-3-102, 14-8-106, and 71-1-105; and 45 C.F.R. 233.10 and 233.90 (a)(1).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed August 23, 1983; effective September 22, 1983. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.29 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-102, 14-8-106, 14-8-122, 14-8-124, and 71-1-105; and 45 C.F.R. 232 and 233.90(c)(1)(ii).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.30 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, 71-3-102, and 71-3-106; and 45 C.F.R. 232.11, 232.12, and 233.90(c)(1)(iv).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Amendment filed October 28, 1991; effective January 29, 1992. Repeal and new rule filed January 31, 1995; effective April 15, 1995. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.31 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, and 71-1-105(12); and 45 C.F.R. 233.90 and 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Amendment filed January 30, 1984; effective March 1, 1985. Amendment filed January 31, 1995; effective May 31, 1995. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.32 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-1-105, 14-8-106, and 71-1-105; and 45 C.F.R. 231.11, 232.12, and 302.51.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Amendment filed September 19, 1985; effective December 14, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.33 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-104, 14-8-106, and 71-1-105; and 45 C.F.R. 232.13, 235.70, 302.31(a)(3)(ii), 303.80(b)(c)(d)(e)(f), and 233.90(b)(4).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.34 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, 14-8-124, and 71-1-105; and 45 C.F.R. 224.50 and 232.11.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.35 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, 14-8-124, and 71-1-105; and 45 C.F.R. 232.12, 232.41, and 235.70.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.36 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105; and 45 C.F.R. 232.11 and 232.40 through 232.47.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. (Rule 1240-01-03-.3 6, continued) Amendment filed August 23, 1983; effective September 22, 1983. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.37 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-1-105, 14-8-106, and 71-1-105; and 45 C.F.R. 232.11 and 234.60 (a)(13).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Amendment filed September 19, 1985; effective December 14, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.38 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-1-105, 14-8-106, and 71-1-105; and 45 C.F.R. 232.11, 232.12, and 234.60.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Amendment filed September 19, 1985; effective December 14, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.39 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 C.F.R. 232.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-03-.40 REPEALED

History

• Authority: T.C.A. §§ 14-1-104 and 14-27-104.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed September 19, 1985; effective December 14, 1985.

Chapter 1240-01-04 Financial Eligibility Requirements

Tenn. Comp. R. & Regs. 1240-01-04-.01 FINANCIAL ELIGIBILITY REQUIREMENTS

This section provides the policies for consideration of resources and income for all household/aid groups (including legally responsible grantee/relatives) applying for Food Stamps and/or Aid to families with Dependent Children. If any nonfinancial criterion is not met, the application may be denied without a determination of financial eligibility.

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-104; and 7 C.F. R. 273.8, 273.9, 273.10, and 273.11.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-04-.02 RESOURCE ELIGIBILITY STANDARDS - FOOD STAMPS/AFDC

Eligibility shall exist if the value of nonexempt resource, both liquid and non-liquid assets, for the HH/AG do not exceed:

(1) Food Stamps Only.

(a) $3,000 for all Food Stamps households with at least one member who is age 60 or older.

(b) $2,000 for all other Food Stamp households.

(2) AFDC Only.

(a) Non-exempt resources of an AFDC aid group, liquid and non-liquid, may not exceed $1,000. Resources in excess of this limit result in ineligibility. A person receiving SSI benefits cannot be included in the AFDC aid group. The SSI recipient’s income and resources, including the SSI payment, are disregarded in determining eligibility for the other AFDC family members.

(b) Reserved for future use.

History

• Authority: T.C.A. §§ 14-4-102, 14-8-104, 14-3-106, and 14-27-104; PL 97-35 and PL 99-198; 7 C.F.R. 273.7, 273.8, and 273.9; and 45 C.F.R. 224.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 3, 1980; effective January 19, 1981. Amendment filed December 10, 1981; effective January 25, 1982. Amendment filed April 15, 1986; effective July 14, 1986. Amendment filed April 27, 2012; to have been effective July 26, 2012. The Department of Human Services filed a 75-day stay of the effective date on June 19, 2012; new effective date October 9, 2012. On September 25, 2012, the Department of Human Services filed a withdrawal of the rule.

Tenn. Comp. R. & Regs. 1240-01-04-.03 APPLICATION OF RESOURCE LIMITS - FOOD STAMPS/AFDC

The HH/AG shall report all resources at the time of application. The HH/AG’s resources at the time the application is filed and at each redetermination/recertification shall be used to determine if the HH/AG’s resources meet the eligibility standard.

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-104; PL 97-35; 7 C.F.R. 273.8; and 45 C.F.R. 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-04-.04 VERIFICATION OF RESOURCES - FOOD STAMPS/AFDC

(1) Food Stamps Only. The worker shall verify resource information for any household if the household indicates either on the application or during the interview that it has liquid resources prior to approval.

(2) AFDC Only. The value of resources will be verified prior to approval and at each redetermination of eligibility.

History

• Authority: T.C.A. §§ 14-8-107 and 14-8-109; and PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed August 17, 1982; effective September 16, 1982.

Tenn. Comp. R. & Regs. 1240-01-04-.05 EXEMPT RESOURCES

In determining the resources of an HH/AG, only the following shall be exempt:

(1) Home and Lot.

(a) Food Stamps Only. The home and surrounding property which is not separated from th e home by intervening property owned by others is exempt. Public right of way, such as roads which run through the surrounding property and separate it from the home, will not affect the exemption of the property. The home and surrounding property, (regardless of location), shall remain exempt when temporarily unoccupied for reasons of employment, training for future employment, illness or uninhabitability caused by casualty or natural disaster if the household intends to return. If the household does not already own a home, the value of a lot purchased to build a home on is excluded. If the new home is partially completed, the value of it is excluded.

(b) AFDC Only. The home owned or being purchased and occupied by the AFDC aid group and the property surrounding the home which is not separated from the home by intervening property owned by others is exempt. Public rights of way (such as roads and/or other public easements) which run through the property surrounding the home do not affect its classification as homestead property. Temporary absences from the home do not affect the classification and/or exemption of the home if the aid group has not acquired another home and intends to return to the exempted home at a specified time. Proceeds from the sale of homestead property or from a recovery due to a casualty/disaster loss of same, will remain exempt for three months following receipt of said proceeds if the aid group expresses an intent to reinvest in the same homestead or in a substitute homestead.

(2) Other Property - AFDC Only.

(a) Basic Maintenance Items. Excluded are basic maintenance items essential to daily living such as clothing, furniture, appliances, and other similar essential household goods and equipment of limited value.

(b) Certain Real Property. Real property which is not exempted as a homestead pursuant to 1240-01-04-.05(1)(b) is exempt as a resource if the recipient is making a good faith effort to sell and signs an agreement to repay the AFDC grant received during the period of exemption. Exemption of the property, not to exceed nine (9) months, causes an overpayment except when the net proceeds plus other resources at the beginning of the exclusion period are within the resource limit.

Repayment of the grant is made from the sale proceeds not to exceed the total of the net proceeds. Any proceeds remaining after repayment of the grant is considered as a resource.

If assistance is terminated for any reason prior to the end of the nine-month exemption period, the assistance unit has an overpayment subject to the usual collection procedures.

(c) Burial Plots. One burial plot for each family member may be excluded from consideration as a resource.

(3) Household Goods and Personal Effects - Food Stamps Only. The value of household goods and personal effects, including one burial plot per household member per ineligible alien or disqualified household member.

(4) Insurance Policies - Food Stamps Only. Cash value of life insurance policies shall not be considered in determining eligibility or benefit level.

(5) Exempt Vehicles.

(a) Food Stamps Only. See rule 1240-01-04-.10 regarding exempt vehicles.

(b) AFDC Only. One licensed and operable family motor vehicle in which the equity value is $1,500 or less. Equity is determined by deducting the amount of encumbrances from the fair market value. Fair market value is the value listed in the N.A.D.A. Used Car Guide. If a vehicle is not listed in the N.A.D.A., or if its value is claimed to be different from the value listed, its value may be taken as that stated by one reputable automobile dealer.

(6) Burial Policies, Burial Agreements, and Burial Plots. These shall be considered exempt for resource purposes.

(7) Pension Funds. The cash value of pension plans or funds shall be exempt. (Food Stamps Only): Excludes any funds in a plan, contract, or account described in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and 501(c)(18) of the Internal Revenue Code of 1986 and the value of funds in a Federal Thrift Savings Plan as provided for in 5 U.S.C. 8439. Also the exclusion of any successor retirement accounts that are exempt from Federal taxes.

(8) Income Producing Property - Food Stamps Only.

(a) Income producing property is defined as:

1. Property which annually produces income consistent with the prevailing rate of return for similar property in the area, even if only used on a seasonal basis;

2. Property such as farm land and rental homes (except certain vacation homes) which is essential to the employment or the self-employment of an HH member;

3. Rental homes (including unattached trailers or mobile homes not being used as the homeplace) which are used by the HH for vacation purposes at some time during the year but which annually produce income consistent with the prevailing rate of return for similar property in the area, if not income producing, the equity value is counted;

4. Work-related equipment, such as the tools of a tradesman or the machinery of a farmer, which is essential to the employment or self-employment of an HH member; and 5. Installment contracts for the sale of land or building if the contract or agreement is producing income consistent with the prevailing rate of return. The exclusion shall also apply to the value of the property sold under contract or held as security in exchange for a purchase price consistent with the selling price of similar property in the area.

(b) Determining prevailing rate of return:

1. When it is necessary to determine if property is producing income consistent with other similar property in the area, the worker may contact local realtors, county trustee’s office, the Small Business Administration, Farmer’s Home Administration, or similar sources to determine the prevailing rate of return in the area.

2. If the property is not producing income consistent with similar property in the area, such property would be counted as a resource.

3. Property exempt as essential to employment need not be producing income consistent with its fair market value.

(9) Inaccessible Resources - Food Stamps/AFDC. The cash value of resources which are not currently accessible to the aid group or which cannot reasonably be brought to a condition of current availability are exempted. Nonavailability of such resources must be determined prior to approval and at each redetermination of eligibility. Also, in both programs, resources whose cash value is not accessible to the HH are exempt, such as, but not limited to: security deposits on rental property or utilities; property in probate; real property which the HH is making a good faith effort to sell at a reasonable price and which has not been sold; and jointly owned resources determined to be inaccessible. In both programs, the worker may verify that the property is for sale and that the household has not declined a reasonable offer.

Verification may be obtained through a collateral contact or documentation, such as an advertisement or public sale in a newspaper of general circulation or a listing with a real estate broker.

(a) Irrevocable Trust Funds.

1. Food Stamps Only.

(i) Any funds in a trust or transferred to a trust, and the income produced by the trust to the extent it is not available to the household shall be considered inaccessible to the household if:

(I) The trust arrangement is not likely to cease during the certification period and no household member has the power to revoke the trust arrangement or change the name of the beneficiary during the certification period;

(II) Trust investments made on behalf of the trust do not directly involve or assist any business or corporation under the control, direction, or influence of a household member; and (III) The funds held in irrevocable trusts are either:

I. Established from the household’s own funds if the trustee uses the funds solely to make investments on behalf of the trust or to pay the educational or medical expenses of any person named by the household creating the trust; or II. Established from non-household funds by a non-household member; and the trustee administering the funds is either:

A. A court, or an institution, corporation, or organization which is not under the direction or ownership of any household member;

B. An individual appointed by the court who has court imposed limitations placed on his/her use of the funds which meet the requirements of the provisions above.

(ii) Reserved for future use.

2. AFDC Only.

(i) When a person applying for or receiving AFDC has a trust which is claimed as inaccessible, he/she (or in the case of a child, his/her parent or other relative caring for him/her) will have 60 days from the date of application/redetermination or from the time the trust is reported/discovered to attempt to have this resource made currently available. The following are exceptions:

(I) If the trust is established by a will, the terms of the trust will be followed as they stand.

(II) If a trust is producing regular income which is available to the beneficiary, the body of the trust will not be considered a currently available resource, but the income will be counted in the determination of eligibility/amount of payment.

(ii) As a condition of eligibility, the grantee/relative must be willing to seek to have the trust made currently available within 60 days. Failure to do so renders the grantee/relative ineligible to be included as a member of the aid group.

(iii) If the person has followed through, assistance may be continued pending further orders of the court. The court’s decision, as written in a new or amended order, will be binding. If all or part of the funds in trust are made available at any time, they must be taken into account when received.

(b) Prepaid Burial Agreements or Burial Trusts.

1. Food Stamps Only. Prepaid burial agreements are a form of trust fund, and as such, their availability depends on whether they are revocable or irrevocable.

Any “pre-need” burial agreement purchased 7/01/81 or later is excluded as a resource if the contract contains the following statement on its face:

“This contract is irrevocable and the funds paid hereunder are not nonrefundable.”

In addition, contracts established before 7/02/81, which were previously required to be revocable under state law, may be exempted if a chancery, circuit, probate, or general sessions court declares them to be irrevocable. Verification of the court’s declaration must be obtained.

2. AFDC Only. Exclude one burial agreement with equity value of $1500 or less (whether revocable or irrevocable) per family member as a resource.

(c) Equipment - AFDC Only. Equipment used in a self-employment enterprise used to produce income is considered as inaccessible resource.

(d) Food Stamps Only - Non-liquid assets against which a lien or security agreement has been placed for a business loan are considered inaccessible. Such assets are excludable only when the lien or security agreement with the creditor specifically prohibits the household from selling the asset(s).

(10) Resources Excluded by Law. The following types of payments are excluded by law from considerations as income or as resources in the determination of eligibility/level of benefit:

(a) Food Stamps and AFDC.

1. Relocation Assistance Payments. Relocation payments received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 are excluded.

2. Alaska Native Claims Payments and Sac and Fox Indian Claim Payments.

Payments received under the Alaska Native Claims Settlement Act, PL 92-203, §21 (a) and the Sac and Fox Indian Claims Agreement PL 94-189 are excluded.

3. Payments for Certain Indian Tribes. Payments derived from certain submarginal lands of the United States which are held in trust for certain Indian Tribes are excluded.

4. Jobs Training and Partnership Act. Payments received pursuant to the Jobs Training and Partnership Act (JTPA).

5. Payments from Disposition of Funds of Ottawa Indians. Payments made to the Grande River of Ottawa Indians under PL 94-540 are excluded.

6. Payments Under Title IV of the Higher Education Act.

Federal assistance provided by a program funded in whole or in part under Title IV of the Higher Education Act is excluded. Such payments include, but are not limited to, Pell grants, Supplemental Education Opportunity (SEOG) grants, the PLUS Program grants, the National Direct Student Loans (NDSL), the Byrd Honor Scholarships, and college work study funds.

7. Energy Assistance Payments.

(i) Food Stamps Only. Any payments made under federal law for the purpose of energy assistance are not counted. To be excluded, the payments must be clearly designated as energy assistance by the entity providing the funds. Payments for the purpose of energy assistance made through State and/or local funding are counted.

(ii) AFDC Only. Any payments or allowances made by any federal, state or local organization for the purpose of energy assistance are not counted.

(b) Food Stamps Only.

1. HUD retroactive tax and utility cost subside payments issued pursuant to settlement of Underwood vs. Harris (Civil No. 78-0469 D.D.C.) against HUD for the month in which payment was received and for the following month.

2. Payments of relocation assistance to member(s) of the Navajo and Hopi Indian Tribes under PL 93-531.

3. Benefits from Food Programs. The following benefits from food programs are excluded:

(i) WIC (ii) Value of food stamps (iii) Value of school lunches or other school fund programs (c) AFDC Only 1. Domestic Volunteer Service Act. Payments received by volunteers for services performed in programs stipulated in the Domestic Volunteer Service Act of 1973 as amended are excluded.

2. Payments from Crisis Intervention Program. One-time payments to assist with utility costs from the Crisis Intervention Program are excluded.

(11) Benefits from Food Programs - AFDC Only (a) WIC (b) Value of food stamps (c) Value of school lunches or other school food programs (12) Resources of Non-Household Members - Food Stamps Only. The resources belonging to non-household members are excluded from consideration except for the following excluded household members:

(a) Ineligible Aliens/Individuals with Questionable Citizenship. Individuals who do not meet the citizenship or eligible alien status. The resources of these individuals shall be counted in their entirety to the remaining household members.

(b) SSN Disqualified. Individuals disqualified from participation in the program for failure to provide or apply for an SSN. The resources of these individuals shall be counted in their entirety to the remaining household members.

(c) Intentional Program Violation Disqualified. The resources of these individuals shall continue to count in their entirety to the remaining household members.

(13) Resources of Non-AG Members - Cash Assistance and Food Stamps. Resources of individuals disqualified because of an intentional program violation or an employment and training program sanction are counted in their entirety to the remaining AG members.

(14) Agent Orange Settlement Payments - Cash Assistance and Food Stamps. Agent Orange settlement payments are excluded as income and resources for both programs. Lump sum payments received by survivors of deceased veterans are also excluded.

(15) Allowances paid to children of Vietnam veterans born with Spina Bifida are excluded as resources in the Food Stamp and Cash Assistance programs.

(16) Individual Development Accounts (IDA). Up to five thousand dollars ($5,000) deposited in an Individual Development Account by a Families First recipient is excluded as a resource as long as the individual continues to receive Families First and maintains the funds in the IDA.

(17) Dedicated Accounts for SSI Children, set up in accordance with Section 213 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 are excluded as resources.

(18) Other Exempt Resources.

(a) Earmarked Resources. Exempt any governmental payments which are designated for the restoration of a home which has been damaged in a disaster if the household is subject to a legal sanction if the funds are not used as intended.

(b) Prorated Income. Resources, such as those of students or self-employed persons, which have been prorated and counted as income, are exempt.

(c) Indian Lands. Indian lands held jointly with the tribe, or land that can be sold only with the approval of the Bureau of Indian Affairs are exempt.

(d) Livestock and poultry consumed as home produce.

(19) Handling of Excluded Funds.

(a) Excluded liquid assets that are kept in a separate account and that are not commingled in an account with non-excluded funds shall retain their exclusion as a resource for an unlimited period of time.

(b) Resources which have been excluded as prorated income that are commingled in an account with non-excluded funds shall retain their exclusion for the period of time over which they have been prorated as income (i.e., they will not be counted as both income and resources during the same period of time).

(c) All other excluded monies which are commingled with non-excluded funds shall retain their exemption for six (6) months from the date they are commingled. After six (6) months all funds in the commingled account other than those in (a) above are counted as a resource.

(20) Educational Savings Accounts – Food Stamps.

(a) Educational savings accounts under Section 529 of the Internal Revenue Code of 1986 qualified tuition programs, shall be exempt.

(b) Coverdell Education Savings Accounts (Section 530 of the Internal Revenue Code) shall be exempt.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 14-8-104, 14-8-106, 14-27-104, 14-27-106, 71-1-105, 71- 5-304, 71-3-165, and 71-5-306; 7 U.S.C.A § 2014(g); 7 C.F.R. 273.8(c)(e)(14), 273.8(e)(15)(h)(1)(iv), 273.9, 273.9(b)(1)(v), 273.10, and 273.11(c); 45 C.F.R. 233.20; PL 98-369 § 2625, PL 98-369 § 2626, PL 97-35, and PL 110-246, Title IV § 4104(b).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed November 6, 1980; effective December 22, 1980. Amendment filed March 16, 1981; effective June 29, 1981. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed July 20, 1982; effective October 13, 1982. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed May 17, 1983; effective June 16, 1983. Amendment filed March 12, 1984; effective June 12, 1984. Amendment filed January 7, 1985; effective February 6, 1985. Amendment filed April 30, 1985; effective July 14, 1985, Amendment filed November 6, 1987; effective February 28, 1988. Amendment filed February 12, 1988; effective May 29, 1988. Amendment filed September 18, 2001; effective December 2, 2001. Amendments filed December 30, 2008; effective March 15, 2009.

Tenn. Comp. R. & Regs. 1240-01-04-.06 REPEALED

History

• Authority: T.C.A. §§ 14-8-104, 14-8-106, and 14-27-104; 7 C.F.R. 273.8; and 45 C.F.R. 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-04-.07 COUNTABLE RESOURCES - FOOD STAMPS/AFDC

The fair market value of liquid resources and the fair market value less encumbrances (equity) of non-liquid resources are used to determine the total countable resources available to the HH/AG.

(1) The following are counted as liquid resources for Food Stamps and AFDC unless otherwise specified:

(a) Cash on hand (b) A checking or savings account in a bank or other savings institution including credit union. (In a checking account, only that amount which exceeds known monthly income is counted as a resource.)

(c) Savings certificates (d) Stocks or bonds (e) Burial Agreements - See Section 1240-01-04-.05 (9)(b)

1. If the burial agreement was purchased prior to 7/01/81 and has not been declared irrevocable by court, it will be considered a resource.

2. If purchased after 7/01/81 and the contract does not contain a statement that the “contract is irrevocable” the agreement must be counted as a resource.

(f) Proceeds from sale of property if received as a lump sum.

1. AFDC Only. Lump sum proceeds from the sale of exempt property will also be exempt for a period of up to three months following the month of sale if intended to be used to replace the exempt resource.

(g) Proceeds from estate settlement if received as a lump sum.

(h) Other Non-recurring Lump Sum/Retroactive Payments 1. Food Stamps Only - Lump sum liquid resources such as the following are considered a resource in the month received, unless specifically excluded from consideration as a resource by other federal laws:

(i) Retroactive Payments such as RSDI, Veterans Benefits, Unemployment Compensation and Workers Compensation (ii) Windfalls, cash gifts, prizes and awards (iii) Income tax refunds (iv) Tax rebates and credits (v) Refunds of security deposits on rental property or utilities (vi) Vacation pay withdrawn in a lump sum payment by an employee who has been laid off. If the employee chooses not to withdraw his/her vacation pay and leaves the vacation time with the employer in case he/she is called back to work, the value of the vacation pay is counted as a resource.

2. AFDC Only (i) Income tax refunds are a non-recurring lump sum payment that is considered a resource in the month received, and thereafter if retained.

(ii) Non-recurring lump sum payments countable as income (such as retroactive RSDI, VA, etc.) are considered a resource only if retained beyond the benefit month(s) for which they are budgeted as income.

(2) Countable Non-liquid Resources.

(a) Food Stamps/AFDC. Unless otherwise exempt, the equity in all non-liquid resources shall be counted as a resource. Examples are as follows:

1. Non-exempt licensed and unlicensed vehicles 2. Non-exempt buildings 3. Non-exempt land 4. Recreational properties 5. Property such as boats, vacation homes and mobile homes, or other property not specifically excluded.

(b) AFDC Only 1. Non-exempt personal property 2. Insurance policies (i) The total cash value of all policies is considered in relation to the personal property reserve.

(ii) The owner of insurance is considered to be the insured person named in the policy, unless otherwise specified by the insurance company.

History

• Authority: T.C.A. §§ 14-8-104, 14-8-106, and 14-27-104; PL 97-35; 45 C.F.R. 224.50; 7 C.F.R. 273.8(c); and C.F.R. 244.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal and new rule filed July 20, 1982; effective October 13, 1982. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed December 2, 1983; effective January 1, 1984. Amendment filed April 30, 1985; effective July 14, 1985. Amendment filed October 9, 1987; effective January 27, 1988.

Tenn. Comp. R. & Regs. 1240-01-04-.08 DOCUMENTING CASE FILE - FOOD STAMPS/AFDC

(1) Verification of Resources. If verification was required because of questionable information, the worker must document why it was considered questionable and what documents were used to resolve it.

(2) Actions on Cases Receiving One-Time Payments.

(a) Case File Review. Upon obtaining information that a certified HH/AG has received onetime payment, the worker shall review the case file in order to determine if the amount received, in addition to the amount of resources listed on the application, will exceed resource limitation for the particular HH/AG.

(b) If Resources Do Not Exceed Limits in 1240-01-04-.02. If the amount does not exceed the limitation, the case file should be annotated to document the information received and the household should be notified in accordance with the procedures for reported changes.

(c) If Resources Exceed Limits in 1240-01-04-.02 - Food Stamps Only. If the total amount exceeds the allowable resources limitation, the HH/AG should be given an opportunity to update its entire resource statement. If it declines to do so or the amount of resources still exceeds the limit, the worker shall take action to terminate the HH’s/AG’s certification.

(d) If Resources Exceed Limits in 1240-01-04-.02 - AFDC Only.

1. If the amount of a non-recurring lump sum payment exceeds DHS personal property reserve limits for the aid group, the A/R must be notified that the possession of the resource causes the aid group to be ineligible but that he/she may reapply as soon as the resource is within the limit for the aid group. Action to close the case will be initiated. However, at the point that the A/R reapplies and the resources are within appropriate limits, eligibility again exists (if all other eligibility requirements continue to be met). In some instances assistance will continue uninterrupted even though a client received a substantial lump sum payment.

History

• Authority: T.C.A. § 14-8-106 and PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980; Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed October 9, 1987; effective January 27, 1988.

Tenn. Comp. R. & Regs. 1240-01-04-.09 SPECIAL RESOURCE SITUATIONS - FOOD STAMPS/AFDC

(1) Jointly Owned Resources.

(a) Resources owned jointly with any other person(s) outside the HH/AG shall be considered available in their entirety to that person(s) and to the HH/AG, unless it can be demonstrated that the resources are inaccessible to the HH/AG. If the HH/AG can demonstrate that it has access to only a portion of the resource shall be counted toward the HH/AG resource level. The resource shall be considered inaccessible to the HH/AG if the resources cannot be practically subdivided and access to the value of the resource is dependent on the agreement of the joint owner who refuses to comply.

Resources owned jointly with any other person(s) outside of the HH/AG shall be considered totally inaccessible to the HH/AG if the resource cannot practically be subdivided and the HH/AG’s access to the value of the resource is dependent on the agreement of a joint owner who refuses to comply. For Food Stamp purposes ineligible aliens or disqualified individuals residing with the household shall be considered house hold members.

1. Exception: Food Stamps. Resources shall be considered inaccessible to persons residing in shelters for battered women as defined in 1240-01-08-(74), if the resources are jointly owned by such persons and by members of their former household; and the shelter resident’s access to the value of the resource is dependent on the agreement of a joint owner who still resides in the former household.

(b) Real property that the HH/AG cannot sell because it only has a life estate, use rights, lifetime occupancy, or dower rights shall also be considered inaccessible to the HH/AG.

(2) Resources of Legally Responsible Relatives - AFDC Only.

(a) The availability of a resource often depends on the individual’s legal right to share property which may be in the possession of another person. Therefore, the following regulations apply to the treatment of resources of legally responsible relatives of an A/R who live in the home with him/her.

1. Resources of a Spouse (i) Real and personal property belonging to the spouse of an applicant or recipient is to receive the same consideration as if owned by the applicant or recipient, except real and personal property belonging exclusively to an SSI beneficiary is disregarded in determining the eligibility of his/her spouse to receive AFDC. If property is jointly owned, that portion of the property which belongs to the SSI beneficiary is disregarded. If the proportionate share cannot be determined, then the property is considered available in its entirety to each owner.

(ii) In stepparent situations, real and personal property belonging to a stepparent is considered available to his/her spouse but the value of the property cannot be considered available to the aid group unless the spouse or stepparent is included in the aid group.

2. Minor Recipients (i) When a minor in the aid group lives with his/her parents:

(I) The resources of the parent are considered available to the child.

The resources belonging exclusively to an SSI beneficiary are disregarded in determining eligibility for his/her children. If resources are jointly owned, that portion of the resources which belongs to the SSI beneficiary is disregarded. If the proportionate share cannot be determined, the property is considered available in its entirety to each owner.

(II) The resources of a child are not considered available to his/her parents or siblings unless the child is included in the aid group.

However, if the child’s resource exceeds the maximum allowance for one person, he/she cannot be included in the aid group unless it is established that the resource is not or cannot be made available to meet the child’s maintenance needs.

(ii) When the A/R is a minor living with a relative other than the parent, the resources of the relative are not considered available to the A/R or the A/R’s child.

3. Other Relatives. The resources of relatives other than a parent are not considered available to the child(ren) in the aid group unless the relative is included in the aid group. If resources of a relative exceed defined limits, neither the grantee relative nor the grantee relative’s spouse may be included in the aid group.

History

• Authority: T.C.A. § 14-8-106 and PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 19, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed April 2, 1982; effective May 17, 1982. Amendment filed August 17, 1982; effective September 16, 1982

Tenn. Comp. R. & Regs. 1240-01-04-.10 TREATMENT OF VEHICLES

(1) Food Stamps Only. If a household has only one licensed vehicle and the fair market value of that vehicle is $4,650 or less, such vehicle is exempt. However, if the value exceeds $4,650 or if the household has more than one vehicle, the following must be determined:

(a) Totally Exempt Vehicles.

1. The entire value of any licensed vehicle shall be exempt if:

(i) The vehicle is used primarily (over 50 percent of the time the vehicle is used) for income producing purposes (such as, but not limited to, a taxi, tractor, or fishing boat).

(ii) The vehicle annually produces income consistent with the prevailing rate of return of similarly used vehicles in the area, even if used only on a seasonal basis.

(iii) The vehicle is necessary for long distance travel other than daily commuting that is essential to the employment of a household member (or ineligible alien or disqualified person whose resources are being considered available to the household). For example, the vehicle of a traveling salesperson or a migrant farm worker following the work stream.

(iv) The vehicle used is used as the household’s home and, therefore, excluded under 1240-01-04-.05(1) of this section.

(v) The vehicle is necessary to transport a physically disabled household member (or ineligible alien or disqualified person whose resources are being considered available to the household) regardless of the purpose of such transportation (limited to one vehicle per physically disabled person).

A vehicle necessary to transport a physically disabled person need not have special equipment or be used primarily by the physically disabled person.

(vi) Any other vehicle used to transport household members (or an ineligible alien or disqualified household member whose resources are being considered available to the household) to and from employment or to and from training or education which is preparatory to employment in compliance with the job search criteria. A vehicle customarily used to commute to and from employment shall be covered by this equity exclusion during temporary periods of unemployment. The equity value of licensed vehicles not covered by this exclusion, and of unlicensed vehicles not excluded shall be attributed toward the household’s resource level.

2. The exclusion in parts (i) through (v) above will apply when the vehicle is not in use because of temporary unemployment such as when a taxi driver is ill and cannot work or when a fishing boat is frozen and cannot be used.

3. Property, real or personal, is excludable to the extent that it is directly related to the maintenance or use of a vehicle that is excluded because it is income producing or necessary to transport a physically disabled person (refer to 1. above). Only that portion of real property determined necessary for the maintenance or use of the vehicle is excludable.

(b) Family Vehicle. One licensed vehicle, in addition to those exempted in 1240-01-04- .10(1)(a), is exempt if the fair market value is $4,650 or less. If the fair market value is more than $4,650, the amount exceeding $4,650 is considered a resource.

(c) Vehicle for Employment/Training. Any other licensed vehicles are exempt if they are used to transport household members to and from employment or to and from training or education which is preparatory to employment, or to seek employment in compliance with the job search criteria and if the fair market value of each vehicle is $4,650 or less.

If the fair market value is more than $4,650, the amount exceeding $4,650 is considered a resource. A vehicle customarily used to commute to and from employment shall be covered by this provision during temporary periods of unemployment.

(d) Other Vehicles. For all other licensed vehicles, count the fair market value over $4,650 or the equity, whichever is higher.

(2) AFDC Only.

(a) Exempt - The equity, up to $1,500, of one licensed vehicle per AFDC aid group is exempt.

(b) Non-Exempt - Equity value over $1,500, of one licensed vehicle, and equity value of all other vehicles owned by the aid group or responsible relative in the home will be counted as part of the aid group’s resources.

(c) One unlicensed vehicle on those Indian Reservations which do not require vehicles driven by tribal members to be licensed, shall be exempt up to $1,500 as a resource.

(3) Procedures To Be Followed in Treatment of Vehicles.

(a) Food Stamps Only. Once ownership of vehicles has been determined, then a decision must be made as to whether a vehicle is totally exempted, or the fair market value in excess of $4,650 is counted, or the equity is counted. Ownership would be established only when questionable.

1. If a vehicle is totally exempted in accordance with 1240-01-04-.10(1)(a), no value is counted as a resource.

2. A licensed vehicle used as a “family car” or for employment/training will be individually evaluated and the fair market value in excess of $4,650 shall be counted as a resource. The value of two or more vehicles shall not be added together in order to reach a total fair market value in excess of $4,650.

3. Licensed vehicles other than those cited in 1 and 2 above will be assigned both a fair market value and an equity value in excess of $4,650 or the equity value will be considered as a resource. Equity is the fair market value less any encumbrances in effect at the time of determination of eligibility (redetermination or recertification).

4. Unlicensed vehicles, unless exempt as necessary for self-employment or as income producing, shall be evaluated for equity. Also, licensed vehicles not producing income and not otherwise exempt, will be evaluated for equity value.

Equity value of these vehicles will be counted as resource.

5. Unlicensed vehicles on those Indian Reservations that do not require vehicles driven by tribal members to be licensed, shall be totally exempt as a resource.

Vehicles which are not driven by tribal members will be considered as a nonliquid resource.

(4) Reserved for future use.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105, 71-3-157, and 71-3-158; PL 104-193; and 7 C.F.R. 273.8.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 3, 1980; effective January 19, 1981. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed August 5, 1986; effective November 29, 1986. Amendment filed November 6, 1987; effective February 28, 1988. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-04-.11 TRANSFER OF RESOURCES - FOOD STAMPS ONLY

(1) Transfer of Resources - Food Stamps Only. At the time of application, household shall be asked to provide information regarding any resources which any household member (or ineligible alien or disqualified person whose resources are being considered available to the household) had transferred within the 3 month period immediately preceding the date of application. This includes resources which are transferred between members of the same household (including ineligible aliens or disqualified persons whose resources are being considered available to the household). Households which have transferred resources (Rule 1240-01-04-.1 1, continued) knowingly for the purpose of qualifying or attempting to qualify for food stamp benefits are disqualified from participation in the program for up to one year from the date of the discovery of the transfer. This disqualification period shall be applied if the resources are transferred knowingly in the three-month period prior to application or if they are transferred knowingly after the household is determined eligible for benefits.

(2) Transfers Not Resulting in Disqualification. Eligibility for the program will not be affected by transfers of resources:

(a) Which would not otherwise affect eligibility;

(b) Which are sold or traded at or near fair market value;

(c) Which are transferred between members of the same household; and (d) Which are transferred for reasons other than qualifying or attempting to qualify for food stamp benefits.

(3) Period of Disqualification. The length of the disqualification period is based on the amount by which the transferred resource, when added to other countable resources, exceeded the allowable resource limits.

(4) Disqualifying a Household. In the event the worker establishes that an applicant household knowingly transferred resources for the purpose of qualifying or attempting to qualify for food stamp benefits, the worker sends the household a notice of denial explaining the reason for and length of disqualification. The period of disqualification shall begin in the month of application. If the household is participating at the time of the discovery of the transfer, HS- 0751, Notice of Disposition, explaining the reason for and length of the disqualification is sent. The period of disqualification is effective with the first allotment issued after the adverse notice period has expired, unless the household requested a fair hearing and continued benefits.

History

• Authority: T.C.A. § 14-27-104; 7 C.F.R. 173.8; and PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed August 17, 1982; effective September 16, 1982.

Tenn. Comp. R. & Regs. 1240-01-04-.12 INCOME

The following sections describe the treatment of income and budgeting to determine eligibility and level of benefits, (1) General Policy Matters. All sources of income are to be explored and gross nonexempt income from all sources shall be verified prior to approval or continuation of benefit except when a Food Stamp household qualifies for expedited service. The applicant/recipient has primary responsibility for providing acceptable verification of income. If he/she is unable to secure/provide acceptable verification the worker shall give reasonable assistance in securing the required information.

(2) Requirement to Apply for Other Benefits - (AFDC Only). As a condition of eligibility for AFDC, a person who is reasonably certain to be entitled to any other cash benefit or tax credit (not SSI) must apply for and accept such benefit or tax credit for himself/herself and/or any member of the assistance group. Failure to apply for or to accept the benefit renders the applicant/grantee relative ineligible to be included as a member of the aid group. His/her needs may not be taken into consideration in the AFDC budget or for the purpose of diverting any other income.

(Rule 1240-01-04-.1 2, continued)

History

• Authority: T.C.A. § 14-8-106; 45 C.F.R. 233.20; and PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-04-.13 INCOME ELIGIBILITY STANDARDS

(1) Food Stamps. The gross income and net income eligibility standards are used in determining the eligibility of households applying for food stamps. Households which contain an elderly or disabled member (as defined in 1240-01-08-.01) are subject to a net income eligibility standard for the appropriate household size. Households which do not contain an elderly or disabled member must meet both net and gross income eligibility standards for the appropriate household size.

(a) The income eligibility standards are used as the criteria in determining the eligibility of all households for food stamps. Participation in the program shall be limited to those households whose incomes are determined to be within the eligibility standards. To be eligible for food assistance, the total gross monthly income of all household members shall not exceed the maximum income standard for the appropriate household size with the following exception:

(b) For households which contain a member who is elderly or who is disabled (See definition of “elderly” and “disabled” in 1240-01-08-.01) the eligibility standards shall be based on net income.

(2) AFDC. Gross income as defined is tested against a Gross Income Standard which is 185% of the Consolidated Need Standard for the appropriate number of people. If the gross income is greater than this standard by any amount, the family/individual is not eligible for AFDC. If gross income is equal to or less than the Gross Income Standard for the appropriate number of people, then net income is computed and this amount is used to determine eligibility and amount of payment. If there is a deficit of $1.00 or more between the need standard and net income, then eligibility on this basis exists. Payment is the lesser of the deficit or a standard payment amount for the family size, except that no payment can be made in a monthly amount less than $10.00.

History

• Authority: T.C.A. §§ 14-8-104, 14-8-106, 14-27-104, and 14-27-105; PL 97-35; 7 C.F.R. 273.9(a); 45 C.F.R. 233.20; and PC 640, Public Acts of 1986.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed March 3, 1982; effective April 4, 1983. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed September 29, 1986; effective December 29, 1986.

Tenn. Comp. R. & Regs. 1240-01-04-.14 DEFINITION OF INCOME

Household or aid group income shall mean all monies from whatever source, earned or unearned, except the exclusions listed in 1240-01-04-.15.

(1) Earned Income. Earned income is income which is derived from the work efforts of an individual as wages, salaries, commissions, or as profits from self-employment enterprise, including farming, carried on either alone or jointly. It includes bonuses, vacation pay, pay received while on maternity leave and sick pay when mandatory deductions are made.

Garnished or diverted wages, etc. are also considered in determining gross earned income.

The following types of income are considered earned income:

(a) Wages, salaries, commissions (b) Profit from self-employment enterprise such as the following:

1. Farming 2. Small business enterprises 3. Roomer/boarders 4. Rental Receipts (i) Food Stamps Only. If an owner of rental property is actively engaged in the rental, maintenance, management of property at least 20 hours per week, the income from the property is earned.

(ii) AFDC Only. Rent receipts from property owned/being purchased by an individual/ family when the owner/purchaser is actively engaged in the production of the income are earned income.

5. Total gains of any capital goods or equipment related to the business, excluding the costs of doing business.

(c) Training and Rehabilitation Allowances 1. Food Stamps Only. Training allowances from vocational and rehabilitative programs sponsored by federal, state or local governments such as Work Incentive Program are considered earned income unless the allowances are excluded.

2. AFDC Only. Any wages paid for on-the-job training or public service employment are earned income, except JTPA earnings of child recipients. Training allowances and incentive payments in WIN and JTPA projects are excluded as income.

(d) Earned Income Tax Credits.

(e) Severance Pay (AFDC Only). Severance pay is considered earned income for AFDC.

(f) College Work Study Program as Earned Income.

1. Food Stamps Only. Allowable educational expenses [as defined in §§ 1240-01- 04-.15(1)(k)1.(i) and (iii)] are excluded. All other work study amounts are considered earned income.

2. AFDC Only. The excess over tuition and mandatory fees (i.e., fees charged all students within a certain curriculum) is considered earned income subject to earned deductions (i.e., work expense allowance, child care expense, and $30 and 1/3 disregard, if applicable).

(g) Vacation Pay (Food Stamps Only). Vacation pay received in more than one installment, when mandatory deductions are applied.

(h) Food Stamps Only. Earnings to individuals who are participating in on-the-job training programs under the Job Training Partnership Act (JTPA) and who are age nineteen (19) or older, or under age nineteen (19) and not under parental control of another adult household member.

(2) Unearned Income. Unearned income is any income which does not meet the definition of earned income. No earned income exclusions or work expense deductions may be applied to unearned income as defined. The following payments are considered unearned income (this list is not all inclusive):

(a) Scholarships, educational grants, fellowships, deferred payment loans for education, veteran educational amounts and the like, in excess of amount excluded in 1240-01- 04-.15 are considered unearned income.

(b) Unemployment Compensation and Workmen’s (workers) Compensation-Food Stamp/AFDC.

(c) Strike Benefits.

1. Food Stamps. Strikers are eligible to participate in the program if they meet all eligibility requirements prior to the strike and their deemed income from the strike site, plus any other household income, does not exceed the appropriate income limit. For specific information regarding strikers, refer to 1450-01-32.

2. AFDC. A parent on strike on the last day of a month renders the entire family ineligible for AFDC. Any other individual on strike on the last day of a month causes ineligibility for the individuals.

(d) Vacation and sick pay and bonuses are considered unearned when mandatory deductions are not made.

(e) Certain Rental Income.

1. Food Stamps Only. If an owner of rental property is actively engaged in the rental, maintenance, management of property at least 20 hours per week, the income from the property is earned. If he/she is actively engaged less than 20 hours per week, the income is unearned. In either case costs of doing business are deducted from gross income and the remainder is counted.

2. AFDC Only. Rental income is considered unearned if the individual is not actively engaged in producing the income. Income derived from rental property is considered as earned income if the individual(s) is/are actively engaged in producing such income. The amount of time the individual spends in producing such income is not a criterion for determining whether or not the income is earned or unearned. To be considered earned income, the individual must bear some responsibility in earning the income. This responsibility may include managerial.

However, if the individual carries no specific responsibility in earning the income, such as where rental properties are in the hands of rental agencies, and the check is forwarded to the individual or where an individual rents farm land to others and receives a money payment, the income would not be classified as earned income.

The cost of doing business is an allowable deduction regardless of whether the income is earned or unearned.

(f) Interest payments, dividends, royalties, interest and all other direct money payments which can be constructed to be a gain or benefit are considered income. If such payments are received on a weekly, bi-weekly, semi-monthly or monthly basis, they will be converted to monthly amounts and considered as currently available regular income. If such payments are received quarterly, they will be prorated over three months; semi-annually, prorated over six months; annually, prorated over 12 months AFDC/Food Stamps.

(g) Assistance Payment.

1. Food Stamps/Cash Assistance. AFDC (or its successor program(s)) payments, general assistance payments, SSI payments, pensions and/or other assistance payments based on need which are not excluded are considered unearned income.

2. Cash Assistance Only. AFDC (or its successor program(s)) payments and SSI benefits are not considered as income.

3. Food Stamps Only. When a Federal, state, or local needs-based payment is reduced because of a household member’s intentional failure to comply with the requirements of that program, for the duration of that benefit reduction the household may not receive an increase in food stamp benefits because of their decrease in income.

(i) The food stamp allotment of the household shall be reduced by 20 percent so long as the needs-based program’s reduction is in effect.

(h) Rehabilitation Payments. AFDC Only - Payments for rehabilitation made under Services to the Blind or Vocational Rehabilitation or other such programs are unearned income. Costs directly associated with a rehabilitation program and borne by a client are deducted from the gross payment and the remainder is income.

(i) Pensions and Benefits. Food Stamps/AFDC - Annuities, pensions, retirement, veterans, or disability benefits, Social Security benefits, military or Job Corps allotment and other such pensions and benefits are counted as unearned income.

(j) Support and Alimony. Food Stamps/AFDC - Support or alimony payments from nonhousehold members made directly to the household and not transferred to the IV-D agency are considered as unearned income.

(k) Contributions.

1. Food Stamps Only - Any regular cash contribution made to the household is unearned income.

2. AFDC Only - Any regular cash contribution, other than from an absent parent, made to the assistance unit and not used for a designated expense of the contributing person is unearned income.

(l) Monies from Trust Funds.

1. Food Stamps Only. Monies which are withdrawn or dividends which are or could be received by a household from trust funds considered to be excludable resources under 1240-01-04-.15 are considered as income. Such trust withdrawals shall be considered income in the month received, unless otherwise exempt under the provisions of 1240-01-04-.15 of this section. Dividends which the household has the option of either receiving as income or reinvesting in the trust are to be considered as income in the month they become available to the household unless otherwise exempt under the provisions of 1240-01-04-.15 of this section.

2. AFDC Only. Money withdrawn from the body of a trust or interest/dividends paid to an A/R are considered unearned income. Such monies are treated as regular income, annualized income, or lump sums as appropriate, depending upon frequency of receipt.

(m) Income of Excluded Household Members. The following procedures shall be used to determine the amount of earned or unearned income of an excluded household member which is attributed to the remaining household members:

1. Ineligible aliens. Individuals whose Citizenship is Questionable, and Individuals Disqualified for Failure to Comply with the Enumeration Requirements. The earned and unearned income of such excluded household members shall continue to be counted as income to the remaining household members, less a prorata for the excluded individual.

2. Individuals Disqualified for Intentional Program Violation. The earned and unearned income of such excluded individuals shall continued to be attributed in its entirety to the remaining household members.

(n) Foster Care Payments. Food Stamps Only - Foster care payments for children or adults are counted as income. Foster care services fees to the provider of foster care are also income.

(o) Severance Pay. Food Stamps Only - Severance pay is considered unearned income when received subsequent termination of employment.

(p) Payments under Title I (VISTA, University Year for Action, etc.) of the Domestic Volunteer Service Act of 1973 (PL 93-113 Stat. as amended) shall be considered earned income and subject to the earned income deduction excluding payments made to those households specified in paragraph (h) of this section.

History

• Authority: T.C.A. §§ 14-1-105, 14-8-104, 14-8-106, 14-27-104, and 14-27-106; PL 97-35 and 99-198 § 1583; 7 C.F.R. § 273.8(e)(15)(h)(1)(iv), 273.9(b)(1)(v), 273.9(b)(2)(iv), and 273.11(c); and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed May 17, 1983; effective June 16, 1983. Amendment filed December 2, 1983; effective January 1, 1984. Amendment filed September 19, 1985; effective December 14, 1985. Amendment filed November 6, 1987; effective February 28, 1988. Amendment filed February 12, 1988; effective May 29, 1988. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-04-.15 PAYMENTS/BENEFITS EXCLUDED IN ELIGIBILITY DETERMINATION

Certain payments and benefits which might ordinarily be considered income are excluded under federal law/regulations from consideration as income for eligibility purposes. The following sections lists such exclusions.

(1) Food Stamps/AFDC. The following exclusions apply in both programs unless otherwise indicated.

(a) Relocation Assistance Payments. Relocation payments received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

(b) Any funds distributed per capita to or held in trust for members of any Indian tribe under PL 92-254, PL 93-134 or PL 94-540.

(c) Payments received under the Alaska Native Claim Settlement Act (PL 92-203, §21a);

Payments by the Indian Claims Commission to the Confederated Tribes and Bands of the Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation (PL 95- 443). Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Main Indian Claims Settlement Act of 1980 (PL 96- 420, §5). Payments of relocation assistance to members of the Navajo and Hopi Indian Tribes (PL 93-531).

(d) Receipts distributed to members of certain Indian tribes referred to in section (b), PL 94-114.

(e) Benefits received from programs under the Older Americans Act of 1965 as follows:

1. Food Stamps Only. Payments from the Senior Citizen Community Service Employment Programs (Title V).

2. Food Stamps/AFDC. Payments from the Nutrition Program for the Elderly (Title VII).

(f) The value of supplemental food assistance received under the Child Nutrition Act of 1966 (WIC) as amended and the special food service program for children under the National School Lunch Act as amended.

(g) Payments for supporting services and reimbursements of out-of-pocket expenses made to individual volunteers serving as health aides, senior companions or in SCORE or ACE and any other programs under Titles II and III pursuant to section 418 of PL 93- 113.

(h) Payments Under the Domestic Volunteer Service Act of 1973.

1. Food Stamps Only.

(i) Payments to volunteers under Title I of the Domestic Volunteer Service Act of 1973 (PL 93-113 as amended) will be excluded when the volunteers meet either of the following conditions:

(I) The individuals were receiving Food Stamps or AFDC at the time they joined the Title I program; or (II) The individuals were receiving the Title I subsistence allowance prior to March 1, 1979. This exclusion will apply for the length of the volunteer contract in effect as of March 1, 1979.

(ii) Payments to volunteers under Title II of the Domestic Volunteer Service Act of 1973 (PL 93-113 as amended) will be excluded.

2. AFDC Only. VISTA payments will be excluded when the amount is less than the minimum wage as determined by the Director of ACTION for all hours worked.

(i) Job Training Partnership Act (JTPA) Income.

1. Food Stamps Only (i) JTPA On-the-Job Training Programs.

Earnings from JTPA on-the-job training programs are excluded only for individuals under age nineteen (19) who are under parental control of another adult household member.

(ii) Other JTPA Programs.

All income from other JTPA Programs, earned or unearned is excluded.

2. AFDC Only.

(i) JTPA Payments for Child Recipients.

(I) Earned (JTPA) income is excluded for child recipients up to 6 months in each calendar year. The payment is not counted at either the gross test step or in calculation of the grant. This provision does not apply to caretakers under 18.

(II) All unearned JTPA income payments are excluded for child recipients.

(ii) JTPA Payments for Recipients Other Than Child Recipients.

(I) Unearned payments are excluded at all steps of the budget calculation if paid for one of the following reasons:

Reimbursement for expenses. This cannot be for basic living expenses and must be specified as a reimbursement by the JTPA agency.

Assistance payments for needs other than the AFDC grant amount.

This means the JTPA payment is meeting a basic need which the AFDC grant cannot cover due to our ratably reduced standards or because it was not covered in our needs study.

Incentive and training allowance for training purposes. The payments will be identified by the JTPA agency.

(II) Earned JTPA payments are counted as any other earnings and the appropriate disregards are applied.

(j) Experimental Housing. Allowance program payments made under Annual Contribution Contracts entered into prior to January 1, 1975 under §23 of the US Housing Act of 1973 as amended.

(k) Educational loans on which payment is deferred, grants, scholarships, fellowships, and veteran educational benefits are excluded to the following extent:

1. Food Stamps Only.

(i) Federal Educational Assistance Programs funded under Title IV of the Higher Education Act include, but are not limited to, the Pell Grant Program, the Supplemental Educational Opportunity Grant (SEOG)

Program, the State Student Incentive Grant (SSIG) Program, the PLUS Program, the College Work Study Program, the National Direct Student Loan (NDSL) Program, and the Byrd Honor Scholarship Program. Exclude the following expenses from income received from these programs only for persons who are attending an institution of post secondary education at least half time: tuition; mandatory fees; originator fees and insurance fees charged by financial institutions for educational loans.

Also exclude the following expenses from such educational funds, when the household provides information to document the amounts claimed.

(Note: the claimed expenses may not exceed the amount of the grant or loan from which they are to be paid): books and supplies; materials; equipment; transportation; and miscellaneous personal expenses (not including room, board, and/or dependent care expenses).

(ii) Exclude the expenses listed below from other federal educational income (such as veterans’ benefits or federal grants and loans that are not funded under Title IV of the Higher Education Act) only for institutions of post secondary education or schools at any level for the physically or mentally handicapped: tuition; mandatory fees; origination fees and insurance fees charged by financial institutions for educational loans.

(iii) Exclude the expenses listed below from non-federal educational income (such as loans, grants, scholarships, and fellowships) only for institutions of post secondary education or schools at any level for the physically or mentally handicapped: tuition; mandatory fees; origination fees and insurance fees charged by financial institutions for educational loans.

Also exclude non-federal educational funds for post secondary education that are earmarked by the grantor for educational expenses, such as: books and supplies; materials, equipment; transportation; and miscellaneous personal expenses.

Do not exclude monies earmarked for normal living expenses, such as food eaten at home, clothing, and rent or mortgage.

(iv) After the excluded charges have been subtracted from loans, scholarships, etc., the remaining amount is considered unearned income. The income is prorated over the months of the school term it is intended to cover. If the total yearly amount is known at certification, then the yearly amount is divided by the number of months in the school year. If only one quarter or semester amount is known at the time of certification, the amount is prorated over the number of months in the quarter or semester.

(v) Tuition, mandatory fees, and other educational expenses paid from earnings, resources, or any sources other than educational income such as grants, deferred loans, etc., are not excluded.

(l) Youth Employment and Demonstration Act. Payments received from the Youth Incentive Entitlement Pilot Projects, the Youth Community Conservation and Improvement Projects, and Youth Employment Training Programs under Title IV of Comprehensive Training Act; Amendments of 1978 PL 95-524.

(m) Energy Assistance Payments.

1. Food Stamps Only: Payments or allowances made under any federal law for the

purpose of energy assistance.

2. AFDC Only: Payments or allowances made by any federal, state, local agency or charitable organization to meet energy assistance needs.

(2) Food Stamps Only.

(a) Cash Items.

1. Earnings of Children. Earned income of a household member who is under 18 years of age is not counted when:

(i) that child is a student at least half-time in elementary or high school, or in classes to obtain a General Equivalency Diploma (GED); and (ii) lives with a natural or adoptive parent or stepparent, or (iii) is under the control of a household member other than a parent, or (iv) is certified as a separate Food Stamp household but lives with a natural or adoptive parent or stepparent.

2. Costs of producing self-employment income. Allowable costs of producing selfemployment income include, but are not limited to: (see 1240-01-04-.24)

(i) Identifiable costs of labor (salaries, employers share of SS, insurance, etc.)

(ii) Stock, raw materials, seed and fertilizer, feed for livestock (iii) Rent and costs of building maintenance (iv) Business telephone costs 3. Irregular Income. Any income which is received too infrequently or irregularly to be reasonably anticipated, as long as the amount does not exceed $30 in a three (3) month period, shall be excluded.

4. Loans. All loans, including loans from private individuals as well as commercial institutions, other than educational loans on which repayment is deferred, are excluded.

5. Income of Non-household members.

(i) The income of non-household members who have not been disqualified, including SSI recipients in cash-out states, students, roomers, boarders (who have not been requested to be considered household members by the household providing boarder services), and live in attendants shall not be considered available.

(ii) Monies Received for Third Parties. Monies received and used for the care and maintenance of a third party who is not an HH member. If the intended beneficiaries of a single payment are both HH and non-HH members, any identifiable portion of the payment intended and used for the care and maintenance of the non-HH member other than a legally responsible relative shall be excluded. If the non-HH member’s portion cannot be readily identified, the payment shall be evenly prorated among intended beneficiaries and the exclusion applied to the non-HH member’s pro rata share or the amount actually used for the non-HH member’s care and maintenance, whichever is less.

6. Non-recurring Lump Sum Payments - Money received in the form of a nonrecurring lump sum payment, including but not limited to income tax refunds, rebates, or credits; retroactive lump sum Social Security, SSI, AFDC, railroad retirement pension or other payment; retroactive lump sum insurance settlements; or refunds of security deposits on rental property or utilities are not considered income. These payments shall be counted as resources in the month received, unless specifically excluded from consideration as a resource by other Federal laws.

7. Recoupments.

(i) Monies withheld by a provider from any income or returned to the provider by the recipient, in order to repay a prior overpayment are not counted except as provided in (ii) below.

(ii) Counted as income are any monies withheld from assistance payments by a federal, state, or local welfare program in order to repay an overpayment resulting from an intentional failure to comply with such program’s requirements. The program must be means-tested and must distribute publicly funded benefits.

8. Reimbursements.

(i) Definition of Excluded Reimbursements. Reimbursement for past or future expenses other than normal living costs are excluded to the extent they do not exceed actual expenses and do not represent a gain or benefit to the HH. No portion of benefits provided under Title IV-A of the Social Security Act to the extent such benefit is attributed an adjustment for work related or child care expenses shall be considered excludable under this provision.

When a reimbursement, including a flat allowance, covers multiple expenses, each expense does not have to be separately identified as long as none of the reimbursements cover normal living expenses.

Reimbursement for normal living expenses of the HH or legally responsible relative, such as rent or mortgage, personal clothing or food eaten at home, are a gain or benefit and therefore are not excluded. To be excluded these payments must be provided specifically for an identified expense, other than normal living expenses, and used for the purpose intended.

(I) Reserved for future use.

(II) Reimbursed for out of pocket expenses of volunteers incurred in the course of their work.

(III) Medical or dependent care reimbursements.

(IV) Non-federal reimbursements or allowances to students for specific education expenses, such as travel or books, or for miscellaneous personal expenses, but not allowances for room and board. Portions of a general grant, loan, or scholarship must be specifically earmarked by the grantor for education expenses or for miscellaneous personal expenses, rather than room and board, to be excluded as a reimbursement.

(ii) Definition of Non-Excluded Reimbursements. The amount by which a reimbursement exceeds the actual incurred expense shall be counted as income. However, reimbursements shall not be considered to exceed actual expenses unless the provider or the HH/AG indicates the amount is recessive. It will not be necessary to verify whether the amount is excessive, unless the HH/AG claims the amount is excessive.

9. Support payments - Support payments received by a household but transferred to the IV-agency.

10. Vendor Payments - Money payments that are not payable directly to a HH but paid to a third party for HH expenses are vendor payments and are excluded as follows:

(i) Definition and Examples of Normal Vendor Payments. A payment made on behalf of HH shall be considered a Vendor payment, whenever a person or organization outside of a HH uses its own funds to make a direct payment to either HH creditors or a person or organization providing goods or services to the household or aid group.

(ii) HUD Vendor Payments.

(I) Payments to Landlords. Rent or Mortgage payments paid to a landlord or mortgages by the Department of Housing and Urban Development or by State or local housing authorities are excluded as vendor payments.

(II) Payments Directly to Household. Payments in money that are not made to a third party, but are made directly to an HH for rent or utilities are counted as income. This includes payments made directly to the household under section 8 of the US Housing Act.

(iii) Exception to Vendor Payment Exclusion Rule - Legally Obligated Payments. Monies that are legally obligated and otherwise payable to the household but which are diverted by the provider of the payment to a third party for a household expense are counted as income and not excluded vendor payments. The distinction is whether the person or organization making the payment on behalf of a household is using funds that otherwise would have to be paid to the household. These funds include any wages earned by a household member, support and alimony payments which legally must be paid to a household, educational loans on which payment is deferred, grants, scholarships, etc., which are paid to a third party for living expenses. If any employer, agency, former spouse or other person makes payments for household expenses to a third party from funds that are not owed to the household, these payments are excluded as vendor payments.

(b) Non-cash item. Any gain or benefit not in the form of money payable directly to an HH are excluded, such as:

1. Goods and services provided directly to an HH.

2. Goods and services provided for an HH by a person/agency/organization who is not an HH/AG member by payment directly to the provider of the goods/services.

(3) AFDC Only - Non-Income - Certain benefits and payments are not defined as income for AFDC eligibility purposes as follows:

(a) Cash items.

1. Business Costs of producing self employment income such as but not limited to:

(i) Wages, salaries, benefits paid to/for employees (ii) Inventories and supplies (iii) Seeds, fertilizers, pesticides, herbicides, etc.

(iv) Utilities at place of business 2. Clothing Allowance for Disabled Veterans - The clothing allowance for disabled veterans for additional clothing needs resulting from the use of prosthetic or orthopedic devices.

3. That portion of educational loans, grants, scholarships, fellowships, benefits, etc., which are direct costs of education borne by the student beneficiary or which are not within the direct control of the student beneficiary.

4. Foster Care Board Payments - Foster care board payments made to foster parents for the care of a foster child by DHS and/or other child placing agencies are not income to the foster parents. Any service fee paid to the foster parents is income.

5. Legally obligated payments otherwise payable to an aid group which are diverted by the provider to a third party unless this arrangement is made at the request of an aid group member or responsible relative of an aid group member.

6. Loans which represent an obligation and not a benefit such as chattel mortgages, personal notes. Such loans may be provided by an individual or commercial lending institution.

7. Monies received from a source outside the AFDC home which are used for the care and maintenance of a person who is not an aid group member or a responsible relative of an aid group member living in the home with an aid group member are not income for the aid group. Payments for multiple beneficiaries are to be prorated evenly among the intended beneficiaries to determine individual shares. If intended beneficiaries include both aid group and non-aid group members, the individual shares of the aid group members (their responsible relatives) will be considered income to the aid group relative.

8. Income belonging to non-aid group household members unless they are responsible relatives or stepparents of aid group members.

9. Reimbursement paid by an agency/employer/individual for out-of-pocket expenses incurred (or to be incurred) by a volunteer and/or an employee.

10. Retroactive AFDC and SSI payments.

11. Payments that are made either directly to AFDC recipients or to a third party for rent or utilities under section 8 of the US Housing Act.

12. Payments for utilities made to or on behalf of AFDC recipients through the Low- Income Energy Assistance Program or other energy assistance plan.

13. Support payments (child and/or spousal support) received by an aid group but transferred to the IV-D agency as assigned support.

14. That portion of payments made by a vocational rehabilitation agency which represents a direct cost to a client for participation in the program.

(b) Non cash items:

1. Goods and services provided directly to an aid group (aid group member).

2. Goods and services provided for an aid group (member) by a person/agency/organization who is not an aid group member by payment directly to a provider of the goods/services.

3. Rent or mortgage payments paid to a landlord or mortgage holder by HUD or state or local housing authorities or under section 8 of the Housing Act.

4. Value of housing provided by a state or local housing authority or another agency/individual.

5. Value of Food Stamps.

6. Value of Surplus Commodities.

7. Value of food provided under any other food or nutritional assistance program.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105, 71-3-157, and 71-3-158; PL 104-193; and 7 C.F.R. 273.9.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 3, 1980; effective January 19, 1981. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed November 9, 1982; effective December 9, 1982. Amendment filed May 17, 1982; effective June 16, 1982. Amendment filed October 14, 1983; effective November 14, 1983. Amendment filed December 2, 1983; effective January 1, 1984. Amendment filed April 30, 1985; effective May 30, 1985. Amendment filed April 30, 1985; effective July 14, 1985. Amendment filed August 5, 1986; effective November 29, 1986. Amendment filed November 28, 1986; effective February 28, 1987. Amendment filed May 8, 1987; effective August 29, 1987. Amendment filed November 6, 1987; effective February 28, 1988. Amendment filed February 12, 1988; effective May 29, 1988. Amendment filed May 23, 1988; effective August 29, 1988. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-04-.16 INCOME TO BE INCLUDED IN ELIGIBILITY DETERMINATION

Except for the payments/ benefits specifically excluded above, all other payments received by HH/AG members (and in AFDC only, payments received by legally responsible relatives any by step-parents) are treated as income in the determination of eligibility and level of benefits in the Food Stamp and AFDC Programs.

History

• Authority: T.C.A. §§ 14-8-104, 14-8-106, and 14-27-104; 7 C.F.R. 273.9; 45 C.F.R. 233.20; and PL 97- 35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed November 6, 1980; effective December 22, 1980. Amendment filed March 16, 1981; effective June 29, 1981. Repeal and new rule filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-04-.17 DETERMINATION OF AVAILABLE INCOME

The amount of income available to meet food/ maintenance needs is to be determined in establishing eligibility for benefits in accordance with definitions given previously and in accordance with the instructions given in sections 1240-01-04-.17(1) through 1240-01-04-.27. Currently available income as defined (except that specifically excluded, disregarded, or deducted) is considered in the determination of eligibility and level of benefits in both programs.

(1) Projecting Income - In both the Food Stamp and the AFDC programs a prospective method of determining eligibility is used. At the time of case action a decision is made as to the amount of income to be considered available for a future period. To the extent possible, any fluctuations in income are to be handled to permit the longest Food Stamp certification period permissible. The worker anticipates monthly income an HH/AU will have in the coming months and uses this figure to calculate the amount of benefits for Food Stamps and for AFDC.

(a) Anticipating Income - Food Stamps/AFDC. At the time of application/redetermination an HH/AU may expect changes in circumstances to occur in the future; in particular, changes relating to the receipt of income. However, only currently available income will be used to project the amount of ongoing available income unless the amount and date of receipt of expected income is known with reasonably certainty or unless some change has occurred. If the exact amount/month of receipt of the income is not known, only that portion of it which can be reasonable anticipated shall be considered as income.

When any change in the HH/AU circumstances is expected, including a change in income, the client will be required to report the change within 10 days of the change.

1. Counting Anticipated Income in Month Received - Food Stamps/AFDC. Income anticipated with reasonable certainty during the period under consideration shall be counted as income only in the month it is expected to be received, unless the income is averaged or prorated.

2. Income in Past 60 Days - Food Stamps/AFDC. Income received during the past 60 days shall be used as an indicator of anticipated income. However, past income shall not be used for any month in which a change in income has occurred or can be anticipated. If income fluctuates to the extent that a sixty (60) day period alone cannot provide an accurate indication of anticipated income, the worker and the HH/AG may use a longer period of past time if it will provide accurate indication of anticipated fluctuations in future income. Similarly, if the family’s income fluctuates seasonally, it may be appropriate to use the most recent season comparable to the certification period (Food Stamps) or time of year (AFDC), rather than the last sixty (60) days, as one indicator of income for the certification period (Food Stamps) or time of year (AFDC). In no event shall the worker automatically attribute to the household the amounts of any past income except when lump sum income is prorated in AFDC. Past income shall not be used as an indicator of anticipated income when changes in income have occurred or can be anticipated during the Food Stamp certification period.

3. Cases of Steady Employment - Food Stamps/AFDC. In cases where the wage earner is steadily employed, income from previous months is usually a good indicator of the amount of income that can be anticipated in the month of application and subsequent months. If information supplied by the household or a collateral contact indicates that future income will differ substantially from the previous month’s income, the worker will use such information to make a reasonable estimate.

4. Assistance Payments - Food Stamps/AFDC. Households receiving State or Federal Assistance payments, such as AFDC or General Assistance (GA) benefits, SSI benefits or Social Security payments, on a recurring monthly basis shall not have their monthly income from these sources varied merely because mailing cycles may cause two payments to be received in one calendar month and none in the next month.

5. Withheld Wages - Food Stamps/AFDC. Wages held at the request of the employee shall be considered income to the HH/AG in the month the wages would otherwise have been paid by the employer. Wages held by the employer as a general practice, even if in violation of the law, are not counted as income to HH/AG, unless and HH/AG anticipates that it will ask for and receive an advance, or an HH/AG anticipates that it will receive income from previously withheld wages not previously counted as income. Advances on wages shall only count as income if reasonably anticipated.

(b) Averaging Income - Food Stamps/AFDC. Unless a Food Stamp client specifically requests consideration of income as actually received and consequent adjustments in benefits during the certification period (variable allotments - Food Stamps) the projected average monthly income will be considered in the determination of eligibility and amount of benefit.

1. To average income, the worker shall use the HH’s anticipation of income fluctuations over the certification/review period. The number of months used to arrive at the average income need not be the same as the number of months in the certification period.

2. When a full month’s income is expected but will be received in weekly, biweekly, semi-monthly amounts, or is annual income, the income will be converted to a monthly amount.

3. Averaging Prohibited (Food Stamps Only). Income must not be averaged for a destitute HH during the first certification period (month) since averaging would result in assigning to the month of application income from future periods which is not actually available to the family during that month.

(2) Converting Income to Monthly Amounts - Food Stamps/AFDC. Since need determination and level of benefit calculation/payment are made on a monthly basis, income and expenses available to a HH/AG must he stated in monthly amounts. The following methods shall be used to convert income to monthly amounts:

(a) Hourly or Piece Work Wages. Estimate the amount of income to be expected as the result of a week’s work based on hours/days produced. Use the weekly earnings figure to determine monthly income.

(b) Weekly Income. Multiply weekly income by 4.3 to determine monthly income.

(c) Bi-Weekly Income. Multiply amount received each two weeks by 2.15 to determine monthly income.

(d) Semi-Monthly Income. Add the two amounts received to determine monthly income.

(e) Monthly Income. When a wage earner is employed and paid on a monthly basis accept his/her verified monthly wage/salary as monthly income.

(f) Annual Income - Divide annual income by 12 to determine monthly income.

1. Food Stamps Only. Households which, by contract or self-employment, derive their total annual income either once annually or over a period of time shorter than 1 year, shall have the income annualized over a 12-month period. That is, income will be anticipated for and averaged over the full 12 months. Such groups include farmers, certain school employees employed in a contractual basis, share croppers and other self-employed persons. This does not apply to migrants seasonal farm workers, persons who receive seasonal income on an hourly or piece work basis, or persons who are paid on a monthly basis. In these latter instances income is counted in the months received. If a person is under contract, the 12 month period should begin the 1 st month the person receives payment under the contract. If the self-employment income is received once annually, the income would be averaged over a 12-month period beginning with the month the income is received.

2. AFDC Only - Income which is received annually, or which is an integral part of annual income, will be totaled and prorated over twelve (12) months. Such income is usually earned income derived from a farming or other selfemployment enterprise. Income which by contract or otherwise could be generally considered as annual income, but which is received in a shorter period of time will be considered as income in the months during which it is received. An estimated average income from migrant labor, seasonal farm work, other seasonal employment will be considered during the months such income is received.

(3) Rounding Procedures.

(a) Food Stamps Only. In calculating net income, figures will be rounded to the nearest dollar. Such rounding shall occur at all steps in calculating income and budgeting except for the computation of individual shelter and medical costs for Food Stamp purposes.

(b) In calculating Food Stamp income, figures will be rounded to the nearest dollar. Such rounding shall occur at all steps in calculating income and budgeting beginning with gross weekly earnings except that in the Food Stamp Program, the computation of individual shelter and medical costs will not be rounded until the monthly amount is determined.

(c) Income is not rounded in AFDC. If the difference between need and income is not a whole dollar amount, round to the next lower dollar in determining the AFDC payment.

(4) Income at Application.

(a) Income in Application Month - Food Stamps/AFDC. The eligibility and level of benefits for HH/AG’s submitting an initial application will be based on circumstances for the entire calendar month which the household filed its application. In both Food Stamps and AFDC the income received during the application month (i.e., that already received by the day of application plus that which is anticipated with reasonable certainty to be received in that month) is used to determine initial eligibility and the benefit amount for that one (1) month. (In Food Stamps if income is averaged it is averaged over the entire certification period including the application month).

(b) Effects of Changes During the Application Processing Period - Food Stamps/AFDC. An HH/AG may be eligible in the application month based on circumstances existing in that month, but ineligible in the subsequent month because of changes which occur. The HH/AG is entitled to benefits for the application month even when the processing of the application results in benefits being issued/paid in the subsequent month. An HH/AG may be ineligible in the application month based on circumstances existing in that month, but eligible in the subsequent month because of changes which occur. A new application is not required. On going income from any and all sources is considered available to meet maintenance needs until such time as the client reports, or the agency discovers, a change.

(5) Anticipated Changes and Benefit Amounts.

(a) Food Stamps Only. As a result of anticipating changes, the household’s Food Stamp allotment for the month of application may differ from its allotment in subsequent months. The certification period established by the worker should be for the longest possible period over which changes in the household circumstances can be reasonably anticipated. The household’s allotment shall vary month to month within the certification period to reflect changes anticipated at the time of certification, unless the household elects the averaging techniques. If the client elects to average income, a change back to monthly adjustments cannot be made during a certification period.

(b) AFDC Only. Adjustments in an AFDC grant are made on the basis of reported (discovered) changes. The grant amount for the month of application will differ from the grant amount in subsequent months. if a change in income is reported and the change is ongoing, the new amount is to be used to project future ongoing income. If income fluctuates, an estimated average monthly income will be established and this amount will be considered in the determination of eligibility and the amount of payment.

However, if great fluctuations in income occur and are reported and it is not possible to arrive at an average income, this income will be considered in the months received.

(6) Income at Recertification or Redetermination.

(a) Food Stamps eligibility and the level of benefits for recertification shall be based on circumstances anticipated for the certification period starting the month following the expiration of the current certification period. if an application for recertification is not received until after the current certification period has expired, the month of application shall be the month in which the application was filed, as for an initial application.

(b) AFDC eligibility and amount of payment at the time of redetermination will be based on circumstances which prevail at that time. Currently available income will be used to project the average amount of income to be available in the coming months.

(7) Consideration of Income Belonging to Particular Individuals - Food Stamps/AFDC. The income of all persons who share a living arrangement must be explored, but all individuals’ incomes may or may not be considered in the determination of eligibility and level of benefit as described in the following sections:

(a) Food Stamps.

1. Individuals Whose Income Must be Considered.

(i) Household Members. The non-excluded income of any member of the household must be considered totally available to the household in the determination of eligibility and level of benefit. None of it may be diverted to ineligible individuals in the household or outside of the household.

(ii) Excluded Household Members.

(I) Ineligible Aliens, Individuals Whose Citizenship is Questionable, and Individuals Disqualified for Failure to Provide or Apply for the SSN.

The earned and/or unearned income of these household members shall continue to be counted as income to the remaining household members, less pro rata share is calculated by first subtracting the allowable exclusions from the excluded member’s income and dividing the income evenly among the household members, including the excluded members. All but the excluded member’s share is counted as income from the remaining household members.

(II) Individuals Disqualified for Intentional Program Violation or for Failure to Comply with Program Work Requirements. The earned and unearned income of these individuals shall continue to count in its entirety to the remaining household members.

2. Individuals Whose Income is Not to be Counted.

(i) Ineligible Students. The income of individuals who are not eligible because of student eligibility criteria.

(ii) Individuals Living Outside the Household. The income of any individual who does not actually live with the household, regardless of legal relationship to members of the household.

(iii) Earned Income of a household member who is under age 18 when:

(I) that child is a student at least half-time in elementary or high school, or in classes to obtain a GED; and (II) lives with a natural or adoptive parent or stepparent, or (III) is under the control of a household member other than a parent, or (IV) is certified as a separate Food Stamp household but lives with a natural or adoptive parent or stepparent.

(iv) Boarders. Only the amount paid for room/board shall be considered as income to the household unless the household has requested the boarder to be considered as a household member.

(b) AFDC.

1. Individuals whose income must be considered (i) The countable gross income, earned and unearned, of all assistance unit members and their responsible relatives in the home, plus the deemed income of an in-home stepparent and parent or legal guardian of a minor parent must be considered as available. The gross amount is tested against an amount equal to 185% of the appropriate consolidated need standard. If the gross amount is less than 185% of the gross income standard, the countable net income for the assistance unit is tested against the appropriate need standard to determine eligibility and level of payment.

No income of parents and spouses (i.e., responsible relative) is diverted to their ineligible dependent(s) living in the home except in the deeming budgets of stepparents and parents or legal guardians of minor parents.

(ii) Legal Spouses. The income belonging to one or both members of a legally married couple is considered available to each other as long as they are living together, except the income of a spouse who is an SSI recipient is disregarded in determining the other spouse’s eligibility. If a couple presents themselves as married they are to be considered married. If they later claim to be not legally married, the burden of proof of their unmarried status will be upon the couple.

(iii) Parents. Parents living in the home with the dependent child(ren) must be included in the assistance unit and/or their total income counted as available in its entirety, unless the parent is an SSI recipient. The income of parents excluded from the assistance unit because of a WIN or IV-D sanction is counted as totally available to the assistance unit.

(iv) Income of Stepparents and Parents/Legal Guardians of Minor Parents.

Income shall be deemed available to assistance unit members from persons listed below under the given circumstances:

• A stepparent living in the home with stepchildren for whom assistance is requested.

• A parent or legal guardian living in the home with a minor parent who has requested AFDC in his/her own right.

The amount of income to be deemed available to the stepchildren or minor parent shall be determined as follows:

(I) Determine gross monthly income as defined by AFDC;

(II) From earned income only, deduct the flat work expense amount of $75 for full or $74 for part-time employment;

(III) Deduct the appropriate consolidated Need Standard for the stepparent/parent or legal guardian and his legal dependents (for IRS tax purposes) living in the home who are not included in the assistance unit. (If the stepparent, parent or legal guardian’s income is not taxable, use those individuals he/she could claim under IRS rules.);

(IV) Deduct amounts actually paid to individuals not living in the home who are (or could be) claimed by the stepparent, parent or legal guardian as dependents for income tax purposes; and (V) Deduct amounts actually paid for alimony or child support to individuals not living in the home other than those covered in Step (IV) above;

(VI) The remainder is income deemed to the stepchildren/minor parent.

(v) Income of Children. Income that a “technically” ineligible child (i.e., a child who does not meet the age, deprivation, relationship requirements) has in his/her own right, including “earmarked” income such as Social Security benefits, or which is specifically designated for a particular child, such as child support, is not considered available to the assistance unit. The child’s own income is, however, considered available to his/her own children.

(vi) Applicant/Grantee Relatives Other Than Parents. The income of a relative other than the parent(s) of children for whom AFDC is requested or received is counted in determining eligibility and amount of payment for the children only when the relative is included in the assistance unit. He/she cannot be included in the assistance unit unless he/she is determined to be in need, (i.e., his/her available income and resources plus his/her spouse are not in excess of AFDC standards) and he/she wishes to be in the assistance unit.

2. Individuals Whose Income Is Not To Be Considered.

(i) SSI recipients (ii) Ineligible relatives other than parents/stepparents as long as they are not included in the assistance unit.

(iii) Unrelated household members (iv) Individuals living outside the household (8) Deductions from Income.

(a) Food Stamps Only.

1. Limitations on Allowable Deductions. Deductible expenses include only certain costs as described in this section.

2. Types of Expenses Not Allowed as Deductions. An expense, including medical expenses, covered by excluded reimbursements or vendor payments shall not be deductible.

3. Billed Expenses Deducted in Month Due. Except as provided in 1240-01-04- .17(8)(a)4. and 5. below, a deduction is allowed in the month the expense is billed or otherwise becomes due, regardless of when the household intends to pay the expense.

4. Averaging Expenses. Households may elect to have fluctuating expenses averaged. Households may also elect to have expenses which are billed less often than monthly averaged forward over the interval between scheduled billings, or, if there is no scheduled interval, averaged forward over the period the expense is intended to cover. The household may elect to have one-time only expenses averaged over the entire certification period in which they are billed.

Households reporting one-time only medical expenses during their certification period may elect to have a one-time deduction or to have the expense averaged over the remaining months of their certification period. Averaging would begin the month the change would become effective.

5. Anticipating Expenses. A household’s expenses shall be calculated based on the expenses the household expects to be billed for during the certification period.

Anticipation of the expense shall be based on the most recent month’s bills unless the household is reasonably certain a change will occur. When the household is not claiming the utility standard, changes may be anticipated during the certification period based on last year’s bills from the same period updated by overall price increases; or, if only the most recent bill is available, utility cost increases or decreases over the months of the certification period may be based on utility company estimates for the type of dwelling and utilities used by the household. Past expenses shall not be averaged (such as utility bills for the past several months) as a method of anticipating utility costs for the certification period.

6. Types of Expenses Allowed as Deductions. The following expenses will be the deductions allowed to arrive at a household’s adjusted monthly income.

Deductions are allowed for the following:

(i) Earned Income Deduction. Twenty percent of gross earned income shall be deducted. No additional deductions (i.e., taxes, pensions, union dues, and the like) except for costs of self-employment, are allowed from earned income. Excluded earned income is not subject to this deduction.

(ii) Standard Deduction. The appropriate standard deduction shall be applied to each household regardless of its income.

(iii) Excess Medical Deduction. A medical deduction is allowed for that portion of non-reimbursable medical expenses in excess of $35 per month, excluding special diets, incurred by any household member who is elderly or disabled (See definition of “elderly” or “disabled” in 1240-01-08-.01).

Spouses or other persons receiving benefits as a dependent of the SSI or disability recipient are not eligible to receive this deduction but persons receiving emergency SSI benefits based on presumptive eligibility are eligible for this deduction. Allowable medical costs are:

(I) Medical and dental care including psychotherapy and rehabilitation services provided by a licensed practitioner authorized by State Law or other qualified health professional.

(II) Hospitalization or out-patient treatment, nursing care, and nursing home care including payments by the household for an individual who was a household member immediately prior to entering a hospital or nursing home licensed (or recognized) by the State.

(III) Prescription drugs when prescribed by a licensed practitioner authorized under State Law and over-the-counter medication (including insulin) when approved by a licensed practitioner or other qualified health professional; in addition, costs of medical supplies, sick room equipment (including rental) or other prescribed equipment are deductible.

(IV) Health and hospitalization insurance policy premiums. The costs of health and accident policies such as those payable in lump sum settlement for death or dismemberment or income maintenance policies such as those that continue mortgage or loan payments while the beneficiary is disabled are not deductible.

(V) Medicare premiums related to coverage under Title XVIII of the Social Security Act; any cost-sharing or spend-down expenses incurred by Medicaid recipient.

(VI) Dentures, hearing aids, and prosthetics.

(VII) Securing and maintaining a seeing eye or hearing dog including the cost of dog food and veterinarian bills.

(VIII) Eye glasses prescribed by a physician skilled in eye disease or by an optometrist.

(IX) Reasonable cost of transportation and lodging to obtain medical treatment or services.

(X) Maintaining an attendant, homemaker, home health aide, or child care services, housekeeper, necessary due to age, infirmity, or illness. In addition an amount equal to the one person coupon allotment shall be deducted if the household furnishes the majority of the attendant’s meals. The allotment for this meal related deduction shall be that in effect at the time of initial certification. The allotment amount will be updated at the next scheduled recertification. If a household incurs attendant care costs that could qualify under both the medical deduction and dependent care deduction, the worker shall treat the cost as a medical expense.

(iv) Dependent Care. Payments for the actual costs for the care of a child or other dependent when necessary for a household member to accept or continue employment, seek employment in compliance with the job search criteria, (or an equivalent effort by those not subject to job search), or attend training or education preparatory to employment. Maximum amounts are established for this deduction which are subject to change annually.

(v) Shelter Costs (I) Monthly shelter costs in an excess of 50 percent of the household’s income after all deductions have been allowed. The shelter deduction shall not exceed the maximum unless the household contains a member who is elderly or disabled. (See definition of “elderly” and “disabled” in 1240-01-08-.01). These households shall receive excess shelter deduction for the monthly cost that exceeds 50 percent of the household’s monthly income after all applicable deductions. The maximum shelter deduction is subject to change annually. Shelter costs shall include only the following:

I. Continuing charges for the shelter occupied by the household, including rent, mortgage or other continuing charges leading to the ownership of shelter, such as loan repayments for the purchase of a mobile home, including interest on such payments.

II. Property taxes, state and local assessments, and insurance on the structure itself, but not separate costs for insuring furniture or personal belongings.

III. Charges for heating, cooling, and cooking fuel; electricity; water and sewer; garbage and trash collections fees; the standard telephone allowance; and fees charged by the utility provider for initial installation of the utility cost.

IV. The above shelter I and III costs for the home if not actually occupied by the household because of employment away from home, illness or abandonment of the home due to natural disaster or casualty loss. For the costs of a vacated home to be included in shelter costs, the household must intend to return to the home; the current occupants of the home, if any, must not be claiming the shelter costs during the absence of the household; and the home must not be leased or rented in the household’s absence. Households claiming utility costs for unoccupied homes must verify the actual expenses; the standard utility allowance cannot be substituted.

V. Charges for the repair of the home which was substantially damaged or destroyed due to a natural disaster such as fire or flood. Shelter costs shall not include charges for repair of the home that have been or will be reimbursed by private or public relief agencies, insurance companies or from any other source.

(II) Payments Not Included in Shelter Costs. Not to be included in shelter costs are:

I. Fees charged for one time deposits on utilities.

II. Separate costs for insuring furniture or personal belongings.

III. Repairs or replacement of any appliance, well, septic tank, or any portion of the home due to wear and tear or mechanical problems.

IV. Any costs related to housing not actually occupied by the household, except as specified in 1240-01-04-.17(8)(a)6.(v)(I) above.

V. Down payments, closing costs, discount points, and other costs incidental to purchase and the closing of a mortgage.

VI. Costs of drilling a well or installing a septic tank.

VII. Site preparation to locate a mobile home.

(vi) Standard Allowances for Utilities.

(I) Standard Allowance Including All Utilities. The Standard Utility Allowance is used in calculating the shelter costs of those households which directly incur heating or cooling expenses on a regular basis separate and apart from their rent or mortgage payment, including residents of rental housing who are billed on a monthly basis by their landlords for actual usage as determined through individual metering. A cooling cost is a verifiable utility expense relating to the operation of air conditioning systems or room air conditioners.

(II) Separate Telephone Allowance. A standard telephone allowance is to be used in calculating the shelter costs for households which incur a separate telephone expense. However, the telephone allowance is never used in conjunction with the Standard Allowance for Utilities in (I) above.

(vii) Use of Actual Utility Expenses. Actual utility costs which exceed the standard may be deducted if the household can verify these costs and it can be reasonably anticipated that they will continue for the certification period. A household which lives in a public housing unit or other rental housing unit which has central utility meters and charges the household only for excess heating or cooling costs shall not be permitted to use the standard utility allowance which includes a heating or cooling cost component.

(viii) Household’s Option. At the time of certification the household shall be advised that it may deduct its actual utility costs rather than the standard allowance throughout the certification period if the household can verify these costs. If the household opts to have the standard utility allowance deducted, the household may switch between the standard utility allowance and actual costs at recertification.

(ix) When the Standard Utility Allowance for all Utilities is to be Used:

(I) When the household is billed on a regular basis for heating or cooling expenses separately and apart from their rent or mortgage.

The standard allowance includes the cost of heating and/or cooling, cooking fuel, electricity, the basic service fee for one telephone, water, sewerage, and garbage and trash collection. Only households which directly incur a heating or cooling expense on a regular basis separately and apart from their rent or mortgage are entitled to the standard utility allowance. However, a household billed less often than monthly for its heating or cooling costs, if otherwise eligible to use the standard allowance, may continue to use the standard allowance between billing months.

(II) When there is no rent or mortgage payment such as when there is free use of a home or mobile home, or when the home mortgage is fully paid, if the household is otherwise eligible to use the standard utility allowance.

(III) Reserved for further use.

(IV) When two or more households share a common residence and contribute to the common utility expense for that residence, the household that receives the actual bill is entitled to its own standard utility allowance for its household size or the actual amount the household contributes, whichever is more. The household which is not billed, but contributes to payment on the bill, is entitled to a deduction in the actual amount of the contribution, not to exceed the standard.

(x) When the Standard Allowance for Utilities is Not to be Used. The standard allowance for utilities will not be used in the following:

(I) When the household has no utility expense such as when all utilities are furnished as an in-kind benefit.

(II) When the household wishes to claim expenses for an unoccupied home.

(III) Households are only charged for water, garbage and trash, sewerage, telephone, cooking fuel, or any combination of these expenses. To be eligible for the standard allowance, the household must be directly billed on a regular basis for its heating and cooling costs.

(IV) A household lives in a public housing unit, or other rental housing unit which has central utility meters and charges the household only for excess utility costs.

(V) Multiple households live in the same residence and share common utility costs. These households are only entitled to their prorated share of the standard utility allowance.

(xi) Eligibility for the standard utility allowance for households receiving Energy Assistance or other vendor payments for utilities.

(I) Low Income Energy Assistance Program (LIHEAP). LIHEAP payments made directly to the household or energy provider do not affect the household’s eligibility for the S.U.A. The S.U.A. will remain applicable if the household is otherwise eligible to claim it.

(II) State and Local Energy Assistance and Other Vendor Payments.

Energy assistance payments made directly to the household do not affect the household’s eligibility for the S.U.A., if the household is otherwise eligible to claim it. Energy assistance payments (other than LIHEAP), made directly to the utility company (including checks payable jointly to the household and the utility company) are considered vendor payments. A household receiving such vendor payments is eligible for the S.U.A. if it has out of pocket energy costs remaining after prorating the vendor payment over the period it is intended to cover.

(b) Types of Expenses Allowed for Excluded Household Members - Food Stamps Only.

1. Ineligible Aliens, Individuals Whose Citizenship is Questionable, and Individuals Disqualified Failure to Provide or Apply for the SSN. That portion of the excluded individual’s earned income which is attributed to the household shall have the 20% earned income deduction applied. That portion of the household’s allowable shelter and dependent care expense which are either paid by or billed to excluded members shall be divided evenly among the household members including the excluded members. All but the excluded member(s) share is counted as a deductible shelter expense for the remaining household members.

2. Individuals Disqualified for International Program Violation. The entire household’s allowable earned income deduction, medical, dependent care, and excess shelter deductions shall continue to apply to the remaining household members.

(c) AFDC Only.

1. The only deductions from gross income which are permitted in determining net income are:

(i) Earned income disregards when applicable, i.e., flat work expense allowance, child care, and incentive disregards.

(ii) Amounts diverted to ineligible legal dependents in the home are deducted according to specified procedure.

2. Income which has been excluded from consideration or disregard will not be taken into account in determining need and amount of assistance for any other individual. Income will be applied first to maintenance needs.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105, 71-3-157, and 71-3-158; PL 104-193; and 7 C.F.R. 273.9. Administrative History Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed November 6, 1980; effective 22, 1980. Amendment filed December 3, 1980; effective January 19, 1981. Repeal and new rule filed December 10, 1981, effective January 25, 1982. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed March 3, 1983; effective April 4, 1983. Amendment filed May 17, 1983; effective June 16, 1983. Amendment filed October 14, 1983; effective November 14, 1983. Amendment filed March 12, 1984; effective June 12, 1984. Amendment filed January 7, 1985; effective February 6, 1985. Amendment filed September 19, 1985; effective October 19, 1985. Amendment filed April 15, 1986; effective July 14, 1986. Amendment filed September 29, 1986; effective December 29, 1986. Amendment filed May 8, 1987; effective August 31, 1987. Amendment filed July 23, 1987; effective October 28, 1987. Amendment filed March 1, 1991; effective April 13, 1991. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-04-.18 TREATMENT OF UNEARNED INCOME - FOOD STAMPS/AFDC

Unearned income is money which is received for reasons other than the current work efforts of an individual. No earned income exclusions or work expense deductions may be applied to unearned income as defined. In the Food Stamp Program the standard deductions and dependent care, shelter, and medical deductions are to be applied to unearned income as appropriate [see 1240-01-04-.17(8)]. Unearned income is considered available to meet food/maintenance needs as described in previous sections.

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-104; 7 C.F.R. 273.9 and 273.10; 45 C.F.R. 233.20; and PL 97- 35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-04-.19 TREATMENT OF EARNED INCOME

(1) Earned income is defined as that total income which an HH/AG earns by its own work efforts, either salary, wages or commissions paid to the HH/AG as an employee, or profits from selfemployment in an enterprise (including farming) which it may carry on independently or jointly with another person or persons. It includes earnings over a period of time from which settlement is made at one given time. (For AFDC purposes, this would include earned income tax credits.) It includes paid annual leave, vacation time, sick leave, pay while on maternity leave, and bonuses when they are subject to Income Tax and FICA. It also includes income from rental property for food stamps when a member of the HH/AG is actively engaged in the management of the property at least an average of 20 hours per week, and for AFDC when the aid group member is actively engaged in producing such income regardless of the amount of time spent in earning that income. It does not include and income such as pensions or benefits accruing as compensation or reward for service or compensation for lack of employment; for example, RSDI benefits, VA benefits, Unemployment Compensation, etc., nor Military Allotments, allotments from Job Corps participants, or return from capital investments.

(2) Food Stamps Only. All gross income, which is received or expected to be received, (during a food stamp certification period) is considered available in relation to the appropriate maximum income level for food stamp purposes, with three exceptions:

(a) When income is excluded or disregarded as defined:

(b) When income is so infrequent or irregular that it cannot reasonably be anticipated, but not in excess of $30 per quarter; and (c) When a household contains a member who is 60 years of age or over, or a member who receives Supplemental Income (SSI) benefits under Title XVI, of the Social Security Act, or disability or blindness payments under Titles I, II, X, XIV or XVI of the Social Security Act.

(3) AFDC Only. All gross earned income, received or anticipated for members of the assistance unit and their responsible relatives is considered available in relation to the gross income standard with two exceptions:

(a) Only the deemed income of a stepparent or of a parent/legal guardian of a minor parent considered available;

(b) Job Training Partnership Act earnings of a child recipient or other type earnings of a full-time student during the six month exclusion period are not considered available.

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-104; 7 C.F.R. 273.9; 45 C.F.R. 233.20; PL 97-35; and PL 98- 369 § 2640.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-04-.20 POLICIES REGARDING DETERMINATION OF NET INCOME - FOOD STAMPS

ONLY. Net income determines the amount of allotment per household size.

(1) Generally, net earned income is considered to be gross earnings minus an 18% earned income deduction, and, if income is from self-employment, minus costs of doing business.

(2) Adjusted monthly income is gross earned and unearned income less all appropriate deductions.

(3) Work Expense Deduction. Expenses directly attributable to costs of employment are considered as a deduction from earned income as described in the following sections:

(a) A standard allowance of 18% of gross earnings is deducted from gross income as work expense allowance. No additional deductions (i.e., taxes, union dues, transportation, etc.) except for dependent care, can be allowed as work expenses.

(b) Payments for the actual costs for the care of a child or other dependent when necessary for a household member to accept or continue employment, seek employment in compliance with the job search criteria, (or an equivalent effort by those not subject to job search), or attend training or education preparatory to employment, are allowed in addition to the 18% earned income deduction. However, the dependent care deduction cannot exceed the maximum allowable amount or in combination with shelter cost deductions. The dependent care deduction may be made from any income as long as the care is required for reasons listed above.

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-104; PL 97-35; 7 C.F.R. 273.9; and 45 C.F.R. 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-04-.21 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, 14-27-104, and 71-1-105; 7 C.F.R. 273.99; 45 C.F.R. 233.20; PL 97-35; and PL 98-369 §§ 2622, 2623, 2642.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed January 7, 1985; effective February 6, 1985. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-04-.22 CALCULATING NET INCOME AND BENEFIT LEVELS - FOOD STAMPS

(1) Net Monthly Income. To determine a household’s net monthly income, the following method and sequence will be used:

(a) Add the gross monthly income earned by all household members minus earned income exclusions to determine the household’s total gross earned income.

(b) Multiply the total gross earned income by 18% and subtract that amount to determine the net monthly earned income.

(c) Add to net monthly earned income the total monthly unearned income of all household members, minus income exclusions.

(d) Subtract the standard deduction.

(e) If the household is entitled to an excess medical deduction, determine if total medical expenses exceed $35 per month. If so, subtract that portion which exceeds $35.

(f) Subtract monthly dependent care expenses, if any, up to the maximum amount allowed.

(g) Total the allowable shelter expenses to determine shelter costs. Subtract from total shelter costs 50% of the household’s monthly income after all the above deductions have been subtracted. The remaining amount, if any, is the excess shelter cost. If there is no excess shelter cost, the net monthly income has been determined. If there is excess shelter cost, computer the shelter deduction according to paragraph (h) of this

section.

(h) Subtract the excess shelter cost up to the maximum amount allowed (unless the household is entitled to the full amount of its excess shelter expenses) from the household’s monthly income after all other applicable deductions. Households not subject to the shelter standard shall have the full amount exceeding 50% of the net income subtracted. The household’s net monthly income has been determined.

(i) If the initial month’s benefits calculated to be less than $10.00 (before or after proration) for any household, no benefits will be issued in the initial month.

(2) Prorating Initial Month’s Benefits. The amount of the household’s benefits for the initial month of certification will be based on the day of the month it applies for benefits. The following procedures shall be used to determine the amount of initial benefits:

(a) A household’s benefit level for the initial month of certification will be based on the day of the month it applies for benefits. Using a 30-day calendar month households shall receive benefits prorated from the day of application to the end of the month. A household applying on the 31 st of a month will be treated as though it applied on the th day of the month. The term initial month means the first month for which the household is certified for participation in the Food Stamp Program or the first month following any period during which the household was not certified for participation. If the prorated benefits for the initial month of certification are computed to be less than $10.00, no benefits will be issued for the initial month.

(b) Reserved for future use.

(c) Those households which are certified using the expedited service procedures and which apply for benefits after the 15 th of the month shall be certified for benefits prorated from the day of application to the end of the application month and also for the following month with no proration of benefits. However, the benefits for the month following the month of application shall not be issued until all necessary verification, not already provided, has been provided. The second month’s benefits shall be issued not later than the fifth working day from the date the verification was provided by the household or the first of the second month, whichever is later.

(d) If an application for recertification is submitted after the household’s certification period has expired, that application shall be considered an initial application and benefits for that month prorated.

(e) Eligible households which are entitled to no benefits shall be denied on the basis that its net income exceeds the level below which benefits are issued.

History

• Authority: T.C.A. §§ 14-27-104, 14-27-105, and 14-27-106; PL 99-198; and 7 C.F.R. 273.7, 273.8, 273.9, and 273.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed April 15, 1986; effective July 14, 1986.

Tenn. Comp. R. & Regs. 1240-01-04-.23 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105; PC 640, Public Acts of 1986; PL 97-35; 45 C.F.R. 233.20; and P.C. 918.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed March 3, 1983; effective April 4, 1983. Amendment filed September 4, 1984; effective October 4, 1984. Amendment filed September 29, 1986; effective December 29, 1986. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-04-.24 TREATMENT OF INCOME FROM SELF-EMPLOYMENT

When the HH/AG includes a person(s) who receives income from self-employment, instructions in the following sections should be used to arrive at the monthly amount of gross profit which is used to calculate countable income. These sections shall also deal with the determination of gross profit from self-employment, i.e., the deductions and exclusions that are applicable only to income from self-employment.

(1) Determining Self-Employment Income.

(a) Situations for Averaging Income - Food Stamps.

1. When Income Is for a Year. Self-employment income which represents an annual support shall be annualized over a 12-month period, even if the income is received in only a short period of time. If self-employment income is intended to support the person on an annual basis, this self-employment income shall be annualized even if the HH receives income from other sources in addition to selfemployment. If self-employment income is received once annually, the income would be averaged over a 12-month period beginning with the month the income is received. If self-employment income is received more often than once a year, the 12-month period should begin in the month the latest income was received. If a person is under contract, the 12-month period should begin the first month the person receives payment under the contract. If the averaged amount does not accurately reflect the household’s actual circumstances because of a substantial increases or decreases in business, the income determination will be based on anticipated earnings.

2. When Self-Employment Income Is Received Monthly. Self-employment income which is received on a monthly basis but which represents a HH’s annual support shall normally be averaged over a 12-month period. If the averaged amount does not accurately reflect the household’s actual circumstances because the HH has experienced a substantial increase or decrease in business, self-employment income shall be calculated based on anticipated earnings.

3. When Self-Employment Income Is Only Part of Total Income. Self-employment income which is intended to meet the HH’s needs for only part of the year shall be averaged over the period of time the income is intended to cover.

4. Cases of New Businesses. If a household’s self-employment enterprise has been in existence for less than a year, the income from that self-employment enterprise shall be averaged over the period of time the business has been in operation and the monthly amount projected for the coming year. If the business has been in operation for such a short time that there is insufficient information to make a reasonable projection, the household may be certified for food stamps for less than a year until the business has been in operation long enough to base a longer projection.

(b) Determining Self-Employment Income - AFDC.

1. Annual Income. Income which is received annually, and/or which is an integral

part of annual income, will be totaled and prorated over 12 months, even if the income is received only once or over a period of time shorter than 12 months.

Such income is usually derived from farming but may also apply to other selfemployment enterprises. Annual income will be prorated over 12 months even if a person has income from sources other than self-employment. Income received once annually will be prorated over 12 months beginning with the month the income is received. Income which represents annual income but which is received periodically during a year will be totaled and averaged over 12 months.

This average figure will be used to project future income (if all other factors remain relatively constant). If a self-employed person is under contract, the 12month period begins the first month the person receives payment under the contract.

2. Income From Migrant Labor, Seasonal Work. An estimated average monthly income from migrant labor, seasonal farm work and other seasonal employment will be considered during the months it is received.

3. Monthly Self-Employment Income. When self-employment income is received monthly, the average monthly income will be estimated based on past income and substantial changes in circumstances which have occurred, such as an increase or decrease in business.

4. Self-Employment As Part of Total Income. Self-employment income which is obtained only for a specific period of time will be averaged over the months it is received.

5. Income From a New Business. When a self-employment enterprise has been in operation less than a year, the AFDC grant payment will be based on current income and a change will be made at the time a client reports income on which a more reasonable projection can be made, or when a pattern of average income is discovered.

(2) Special Income Consideration.

(a) Rental Property.

1. Food Stamps Only. Income derived from rental property is considered earned income for the 18% earned income deduction/work expense allowance. Income from rental property always has the cost of doing business deducted.

2. AFDC Only. Income derived from rental property is considered as earned income if the individual(s) is actively engaged in producing such income. The amount of time the individual spends in producing such income is not a criterion for determining whether or not the income is earned or unearned. To be considered earned income the individual must bear some responsibility in earning the income. This responsibility may include managerial activities. However, if the individual carries no specific responsibility in earning the income, such as where rental properties are in the hands of rental agencies and the check is forwarded to the individual or where an individual rents farm land to others and receives a money payment, the income would not be classified as earned income. The costs of doing business is an allowable deduction regardless of whether the income is earned or unearned.

(b) Capital Gains Are Income. The proceeds from the sale of capital goods or equipment are calculated in the same manner as a capital gain for federal income tax purposes.

Even if only 50% of the proceeds from the sale of capital goods or equipment is taxed for federal income tax purposes, the worker shall count the full amount of the capital gain as income.

(c) Reserved for future use.

(3) Costs of Producing Self-Employment Income.

(a) When a member of the HH receives income from self-employment, he/she shall be required to keep a record of expenses incurred in the production of this income.

(b) Expenses.

1. Allowable costs of producing self-employment income include, but are not limited to:

(i) Identifiable costs of labor (salaries, employers share of SS, insurance, etc.)

(ii) Stock, raw materials, seed and fertilizer, feed for livestock (iii) Rent and cost of building maintenance (iv) Business telephone costs (v) Costs of operating a motor vehicle when required in connection with the operation of the business.

(vi) Interest paid to purchase income producing property.

(vii) Insurance premiums and taxes paid on income producing property.

(viii) Costs of feed for work stock.

(ix) Costs of meals and equipment for children for whom day care is provided in the A/R’s home.

2. Unallowable Deductions. The following are not considered as costs of producing self-employment income, and shall not be deducted from the household’s selfemployment income:

(i) Payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery and other durable goods;

(ii) Net losses from previous periods;

(iii) Federal, state, and local income taxes, money set aside for retirement purposes, and other work-related personal expenses (such as transportation to and from work). These expenses are accounted for by the 18% earned income deduction in food stamps and the flat work expense allowance in AFDC;

(iv) Costs of producing home produce intended for family consumption;

(v) Family living expenses;

(vi) Depreciation.

(4) Determining Monthly Income When Averaged - Food Stamps/AFDC. For the period of time over which self-employment is determined, add all gross self-employment income (including capital gains), exclude the costs of producing the self-employment income, and divide the self-employment income by the number of months over when the income will be averaged. If the cost of producing self-employment income exceeds the income derived from selfemployment as a farmer, such losses shall be offset against any other countable income in the household. For purposes of this provision, to be considered a self-employed farmer, the farmer must receive or anticipate receiving annual gross proceeds of $1,000 or more from the farming enterprise.

(5) Determining Monthly Income When Anticipated - Food Stamps/AFDC. For those HH/AG’s whose self-employment income is not averaged but is instead calculated on an anticipated

basis, add any capital gains the household anticipates it will receive in the next 12 months, starting with the date the application is filed, and divide this amount by 12. This amount shall be used in successive certification periods/months during the next 12 months except that a new average monthly amount shall be calculated over this 12-month period if the anticipated amount of capital gains changes. The anticipated monthly amount of capital gains shall be added to the anticipated monthly self-employment income, and the cost of producing the selfemployment income will be subtracted. Except for depreciation, the cost of producing the self-employment income shall be calculated by anticipating the monthly allowable costs of producing the self-employment income. If the cost of producing self-employment income exceeds the income derived from self-employment as a farmer, such losses shall be offset against any other countable income in the household. For purposes of this provision, to be considered a self-employed farmer, the farmer must receive or anticipate receiving annual gross proceeds of $1,000 or more from the farming enterprises.

(6) Household/Aid Groups with Boarders - Food Stamps/AFDC.

(a) HH/AG’s that take in boarders or that operate commercial boarding houses are considered self-employed. Identifiable expenses are allowed as a cost of doing business as in any self-employment enterprise.

(b) Determining Income for Household.

1. Reserved for future use.

2. Reserved for future use.

3. Deductible Expense - Food Stamp Only. The net income from self-employment is added to other earned income and the 18% earned income deduction is applied to the total.

4. Food Stamps Only. Shelter costs the household actually incurs, even if the boarder contributed to the household for part of the household’s shelter expenses, is computed to determine if the household will receive a shelter deduction. However, the shelter costs shall not include any shelter expenses directly paid by the boarder to a third party, such as the landlord or utility company.

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-104; 7 C.F.R. 273.1 and 273.11; 45 C.F.R. 233.50; 45 C.F.R. 233.20; PL 97-35; and PL 99-198.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed August 3, 1984; effective November 13, 1984. Amendment filed April 15, 1986; effective July 14, 1986. Amendment filed September 29, 1986; effective December 29, 1986.

Tenn. Comp. R. & Regs. 1240-01-04-.25 INCOME OF RESIDENT FARM LABORERS, MIGRANT HH/AG’S, SCHOOL

EMPLOYEES, AND OTHER CONTRACTUAL EMPLOYEES.

(1) Resident Farm Laborers.

(a) Stable Income - Single Employer.

1. Farm laborers whose primary source of income is from regular farm employment with the same employer are normally employed for the entire year and receive a regular monthly salary.

2. Food Stamps. When the income is regular and does not vary from month to month, the monthly income figure will be used to determine the benefit level for the entire certification period.

3. AFDC. The regular monthly income figure will be used to determine the amount of the AFDC grant.

(b) Irregular Income - Single Employer.

1. In some instances, the HH/AG is paid for work done only during the work season, but resides year round on the farm and may receive advance or deferred payments, (sometimes known as “furnish”), during the non-work season. Some difficulty may be experienced in assigning an income figure to the farm worker whose income is high during the work season and correspondingly low during the non-work season when income is only from advance or deferred payments.

2. Food Stamps. Variation in income between work and non-work cycles may be quite substantial. Even if income is prorated unevenly over the certification period to account for variations, consideration should be given to assigning the household shorter certification periods to take into account the income actually available to the household or the household may be assigned a variable basis of issuance.

3. AFDC. Irregular income is to be averaged over a 12-month period.

(c) Regular or Irregular Income - Multiple Employers. When a farm laborer works regularly for more than one employer, the total income from all employers must be determined and then it is treated in the same manner as that received from a single employer. If work for multiple employers is irregular, the food stamp certification period should reflect actual income or variable basis of issuance should be assigned.

(2) Migrant Farm Laborers.

(a) Expedited Service - Food Stamps Only. Migrant farm laborers usually have little or no income when entering an area and may qualify for expedited services.

(b) Resources - Food Stamps/AFDC. It must be determined whether migrants have out-ofstate resources or income from real property in the home base area. A migrant family is permitted one home and lot as an exemption from resources as any other HH/AG. For example, if the applicant has a home and lot in Texas and does not own a residence in Tennessee, the Texas home will be exempted as a resource. It must be determined whether out-of-state real property is being rented or is producing income. If such property is producing income, such income must be added to all other household income in determining eligibility for AFDC and eligibility and basis of issuance for food stamps.

(c) Work/WIN Registration 1. Food Stamps. Employable members of migrant households who are not employed at least 30 hours a week or receiving weekly earnings equal to the federal minimum wage multiplied by 30 hours must register for and accept suitable employment in the same manner as other persons.

2. AFDC Only. Migrant workers must register for WIN or be determined to be exempt from the registration requirement as any other AFDC applicant/recipient.

(d) Income of Children in Migrant Households - Food Stamps. The earned income of a student under 18 years of age is exempt and must be differentiated from the rest of the household’s income. Unless income can be identified as being earned specifically by a student, the total income shall be prorated equally among the number of household members working and exclude that portion allotted to the student. This provision applies to students who are currently attending school and those who plan to return to school after academic breaks. Individuals are considered children for purposes of this provision if they are under the parental control of another household member.

(e) Income of Children in Migrant Households - AFDC. The income of children in migrant households will be treated as that of any other child for whom eligibility is being determined. If the amount of income belonging exclusively to a child cannot be determined, prorate equally the total income of all employed household members and treat the child’s prorata share as his/her own income.

(3) School Employees.

(a) Food Stamps.

1. General Provisions for Income Averaging. HH’s that derive their annual income in a period of time shorter than one year shall have that income averaged over a 12-month period, provided the income is not received on an hourly or piecework

basis. This provision includes teachers and other school employees who are under a contract which is renewable on an annual basis. Such members will be considered to be receiving compensation for an entire year even though predetermined non-work periods are involved or actual compensation is scheduled for payment during the work periods only.

2. Contract Renewal. The renewal process may involve a signing of a new contract each year; be automatically renewable; or, in cases of school tenure, rehire rights may be implied and thus preclude the use of a written contract altogether.

3. Work - Non-work Cycle. The fact that such a contract is in effect for an entire year does not necessarily mean that the contract will stipulate work every month of the year. There may be certain predictable non-work periods or vacations.

4. Income. Income from such a contract will be considered as compensation for a full year regardless of the frequency of compensation as stipulated in the terms of the contract, as determined at the convenience of the employer, or as determined at the wish of the employee.

5. Determination of Eligibility, Basis of Issuance, and Certification Periods. The annual income household members received from contractual employment described above shall be averaged over a 12-month period to determine the member’s average monthly income. To determine the HH’s eligibility, all other monthly income from other HH members will be added to this average monthly income and income exclusions and deductions applied in the normal manner.

6. Exception. Policy as stated in 1240-01-04-.25(3)(a)5. does not apply to recipients of emergency food stamp assistance issued under an FNS declared disaster. In case of emergency food stamp assistance, special rules apply which are dictated at the time of the emergency.

(b) AFDC. The average monthly income of school employees will be considered available during the months it is received.

(4) Income of Other Contractual Employees-AFDC. The average monthly income of persons employed on a contractual basis (other than school employees) will be considered as income during the period covered by the contract.

(5) Temporary Employment of Person Under Contract - FS/AFDC. After the appropriate earned income exclusions, disregards and deductions, income from temporary employment will be budgeted as available only in the months received. The same procedures outlined in the

section below on Unemployment Compensation will be followed.

(6) Unemployment Compensation - FS/AFDC. Unemployment compensation is counted as income only in the months in which it is received. It is not to be annualized along with other annualized income from contractual employment. The monthly amount of the unemployment compensation benefit will be added to the monthly amount of income from employment to determine income available to meet current needs.

History

• Authority: T.C.A. §§ 14-8-106 and 14-27-104; PL 97-35; and 7 C.F.R. 273.11.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-04-.26 REPEALED

History

• Authority: T.C.A. § 14-8-106; PL 97-35; PL 98-369 § 2640; 45 C.F.R. 233.20; and PC 918.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed September 4, 1984; effective October 4, 1984. Repeal filed January 7, 1985; effective February 6, 1985.

Tenn. Comp. R. & Regs. 1240-01-04-.27 STANDARDS OF NEED/INCOME

The following tables show the income standards, food stamp coupon allotment (Thrifty Food Plan), standard income deduction, maximum shelter/dependent care deductions, and standard utility/telephone allowances to be used in the Food Stamp Program to determine eligibility and level of benefits. (Tables I through VII). Table VIII shows the maximum income level, consolidated standard of need, and the possible standard payment amounts to be used in the AFDC program to determine eligibility and level of benefits.

(1) Food Stamp Standards.

(a) Food Stamp Gross Monthly Income Standards. The gross monthly income standard is used to determine whether a household is eligible; it is not used to determine the actual amount of the coupon allotment.

1. If the household’s gross monthly income (before deductions) exceeds the gross income standard for the number of persons in the household, the household is not eligible for food stamps.

2. If the household’s gross monthly income (before deductions) is equal to or less than the gross income standard for the number of persons in the household, the household may be eligible. At this point, the net income standard shall be applied to the household’s net income as instructed in 1240-01-04-.27 (1)(b).

Table I No. of Persons in Household 1 2 3 4 5 6 7 8 9 10 Gross Income Standard $1174 $1579 $1984 $2389 $2794 $3200 $3605 $4010 $4416 $4822 For each additional member add $406 (b) Net Monthly Income Standards-Food Stamps. The Net Monthly Income Standard is used to determine whether a household is eligible. It is NOT used to determine the actual amount of their coupon allotment. This standard applies to all households including household containing a member who is elderly or disabled.

1. If a household’s available income (after exclusions and deductions) exceeds the Net Monthly Income Standard for the number of persons in the household, a household is not eligible for Food Stamps.

2. If a household’s available income (after exclusions and deductions) equals or is less than the appropriate Net Monthly Income Standard for the number of persons in the household, the household is eligible for a Food Stamp allotment.

Table II No. of Persons in Household 1 2 3 4 5 6 7 8 9 10 Maximum Net Income $903 $1215 $1526 $1838 $2150 $2461 $2773 $3085 $3397 $3709 For each additional member add $312 (c) Basis of Coupon Issuance - Value of the Thrifty Food Plan. The Thrifty Food plan shows the maximum coupon allotment that can be authorized for a household of any given size, and is used to determine the actual amount of the coupons for which the household qualifies.

1. Calculate 30% of a household’s available income (after exclusions and deductions).

2. Subtract that amount from the maximum coupon allotment for the appropriate household size to determine the value of the coupon allotment. The minimum allotment for one and two person households is $16.00 even if thirty percent of those household’s net income subtracted from the Thrifty Food Plan is less than $16.00. For all other household’s sizes, the allotment is based on the actual amount derived from the preceding calculations.

3. If after using the appropriate formula the result ends in 1 through 99 cents, the amount shall be rounded down to the nearest lower whole dollar. If the computation results in an allotment of less than $10, then no issuance shall be made for the initial month.

Table III No. of Persons in Household 1 2 3 4 5 6 7 8 9 10 Maximum Coupon Allotment $200 $367 $526 $668 $793 $952 $1052 $1202 $1352 $1502 For each additional member add $150 (d)

Table IV-A Standard Deduction Household Size 6+ Standard Deduction $142 $142 $142 $153 $179 $205 Table IV-B Food Stamp Deductions Maximum Dependent Care No Limit Maximum Shelter Deduction for Non-Elderly/Disabled Households $458 Maximum Shelter Deduction for Elderly/Disabled Households No Maximum (e)

TABLE V-A

Food Stamp Standard Utility Allowance Household Size 1 2 3 4 5 6 7 8 9 10 or more Standard Utility Allowance $314 $326 $338 $350 $360 $372 $384 $396 $408 $419 Table V-B Food Stamp Basic Utility Allowance Household Size 1 2 3 4 5 6 7 8 9 10 or More Basic Utility Allowance $126 $126 $126 $126 $126 $126 $126 $126 $126 $126 The Basic Utility Allowance is to be used for households who are not eligible for the Standard Utility Allowance because they do not incur a major heating or cooling expense, but who do incur utility costs such as electricity for lighting, gas for cooking, water/sewerage, or garbage pickup.

(f) TABLE VI Food Stamp Standard Telephone Allowance Household Size 1 2 3 4 5 6 7 8 9 10 or More Telephone Standard $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 (g) The Homeless Shelter Standard may be used in determining eligibility and amount of benefits. It is intended to offset such expenses as may reasonably be expected to be incurred for households in which all members are homeless individuals but are not receiving free shelter throughout the month.

TABLE VII

Homeless Household Shelter Allowance Household Size 1 2 3 4 5 6 7 8 9 10 or more Homeless Shelter Standard 143 143 143 143 143 143 143 143 143 143 1. A homeless individual is an individual who lacks a fixed and regular nighttime residence, or an individual who has a primary nighttime residence that is:

(i) a supervised publicly or privately operated shelter designed to provide temporary living accommodations;

(ii) an institution that provides a temporary residence for individuals intended to be institutionalized;

(iii) a temporary accommodation in the residence of another individual if the accommodation in the residence is for no more than 90 days; or (iv) a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.

(2) AFDC Standards.

(a) Consolidated Need Standard (CNS). The Department has developed a consolidated standard of need based on size of the assistance unit, which indicates the amount of income the assistance group would need to meet subsistence living costs according to allowances set by the state for items including food, clothing, fuel, lights, household operations, personal incidentals and shelter. The CNS which determines a nonresponsible relative’s eligibility to be included in an assistance unit, also is used as a

basis for determining the gross income standard and the standard payment amount.

(b) Gross Income Standard. This standard is set by federal law at 185% of the consolidated standard of need. If the gross countable income of an assistance unit exceeds this standard, then the assistance unit is not eligible for AFDC.

(c) Standard Payment Amount. Tennessee does not meet 100% of need as defined by the Consolidated Need Standard. Rather, a maximum payment by family size, dependent on funds available, is paid. An assistance payment is determined as follows:

1. If the assistance unit’s net income (after allowable exclusions and deductions) equals or exceeds their consolidated need, then the assistance unit is not eligible for AFDC.

2. If the assistance unit’s net income is less than their consolidated need, then the monthly grant amount is the smaller of a maximum by family size (standard payment amount) or the deficit if it is $10 or more. If the deficit is $1 - $9, the assistance unit is eligible for Medicaid Only, and is deemed to be an AFDC recipient group.

3. The minimum monthly grant which can be paid is $10. Assistance units otherwise eligible for grant less than $10 are eligible for Medicaid benefits as deemed AFDC recipients.

(d) AFDC Need/Payment - Standards.

Table VIII Number of Persons in Assistance Unit 1 2 3 4 5 6 7 8 9 10 Gross Income Standard 777 1110 1252 1289 1489 1507 1633 1655 1838 1875 Consolidated Need Standard 420 600 677 697 805 815 883 895 994 1014 Standard Payment Amount 95 142 185 226 264 305 345 386 425 467 Minimum AFDC Payment $10 per month for any assistance unit.

Number of Persons in Assistance Unit 11 12 13 14 15 16 17 18 19 20 Gross Income Standard 1929 1977 2020 2055 2083 2109 2131 2149 2162 2173 Consolidated Need Standard 1043 1069 1092 1111 1126 1140 1152 1162 1169 1175 Standard Payment Amount 508 549 589 630 670 711 750 790 831 871 Minimum AFDC Payment $10 per month for any assistance unit.

The AFDC standard payment for an assistance unit of three (3) persons represents 37.0% of the consolidated need for an assistance unit of that size. The payments for units composed of different numbers of recipients represent an upward or downward adjustment of the percentage in the preceding sentence which is necessary to maintain the payment at a level not more or less than that paid in fiscal Year 1993-1994.

(e) Reserved.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 71-1-105, and 71-5-304; 7 U.S.C.A. § 2014 and 2017(a); 7 C.F.R. §§ 272.9, 273.9, and 273.10; PL 110-246, Title IV §§ 4102, 4103, and 4107, June 18, 2008; and PL 111-5, Division A, Title I § 101, February 17, 2009.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1981. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed November 9, 1982; effective December 9, 1982. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed March 3, 1983; effective April 4, 1983. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed August 19, 1983; effective September 19, 1983. Amendment filed December 6, 1983; effective January 5, 1984. Amendment filed September 4, 1984; effective October 4, 1984. Amendment filed September 28, 1984; effective December 14, 1984. Amendment filed December 27, 1985; effective March 16, 1985. Amendment filed October 29, 1985; effective January 14, 1986. Amendment filed November 21, 1985; effective February 12, 1986. Amendment filed December 31, 1985; effective March 17, 1986. Amendment filed April 15, 1986; effective July 14, 1986. Amendment filed July 23, 1986; effective October 29, 1986. Amendment filed November 28, 1986; effective February 28, 1987. Amendment filed April 7, 1987; effective July 29, 1987. Amendment filed February 9, 1988; effective May 29, 1988. Amendment filed February 12, 1988; effective April 29, 1988. Amendment filed July 23, 1992; effective October 28, 1992. Amendment filed September 29, 1994; effective December 14, 1994. Amendment filed November 18, 1996; effective February 1, 1997. Amendment filed April 4, 1997; effective June 18, 1997. Amendment filed September 18, 2001; effective December 2, 2001. Amendment August 28, 2002; effective November 11, 2002. Amendment filed December 11, 2002; effective February 24, 2003. Amendment filed February 27, 2004; effective May 12, 2004. Amendments filed December 9, 2004; effective February 22, 2005. Amendments filed December 5, 2005; effective February 18, 2006. Amendment filed December 11, 2006; effective February 24, 2007. Amendments filed November 16, 2007; effective January 30, 2008. Amendments filed December 30, 2008; effective March 15, 2009. Amendment filed July 7, 2009; effective October 5, 2009. Amendment filed September 22, 2009; effective December 21, 2009. Amendments filed November 9, 2009; effective February 7, 2010. Amendment filed November 30, 2010; effective February 28, 2011.

Tenn. Comp. R. & Regs. 1240-01-04-.28 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-1-105, 14-8-106(2), and 71-1-105; PL 97-35; PL 98-369 § 2632; and 45 C.F.R. § 233.20 (a)(3)(ii)(D).
• Administrative History: Original rule filed December 2, 1983; effective January 1, 1984. Amendment filed January 7, 1985; effective February 6, 1985. Amendment filed September 19, 1985; effective December 14, 1985. Amendment filed October 9, 1987; effective January 27, 1988. Repeal filed February 20, 2024; effective May 20, 2024.

Chapter 1240-01-05 Destitute Households - Food Stamps

Tenn. Comp. R. & Regs. 1240-01-05-.01 DESTITUTE AND ZERO NET INCOME HOUSEHOLDS ELIGIBLE FOR EXPEDITED

SERVICE. The following households shall have their eligibility determined on an expedited basis provided that their total liquid resources as defined in 1240-1-4-.07(l) do not exceed $100.

(1) Households with less than $150 in countable monthly gross income.

(2) Migrant or seasonal farmworker households who are destitute as defined in 1240-1-5-.04.

History

• Authority: TCA §§14-27-104; 14-27-105; 14-27-106; 7 CFR 273.2 and 273.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed March 28, 1983; effective April 27, 1983.

Tenn. Comp. R. & Regs. 1240-01-05-.02 PRESCREENING

The county office's application procedures shall be designed to carefully identify immediately all households eligible for expedited service at the time the household requests assistance.

For example, the receptionist, volunteer, intake worker or other employee shall be responsible for screening applications as they are filed or as individuals come in to apply or request information by telephone. In addition all such applicants shall be read their “rights” from the Guide for Pre-Screening.

History

• Authority: TCA §§14-27-104; 14-27-105; 14-27-107; 7 CFR 273.2 and 273.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed March 28, 1983; effective April 27, 1983.

Tenn. Comp. R. & Regs. 1240-01-05-.03 MONITORING

The County Director and first line supervisor are responsible for designating an employee(s) to perform the initial prescreening task and shall insure that this function is carried out to the fullest extent with each and every Food Stamp inquiry. The County Director and first line supervisor shall also take steps to insure that all households filing an application and qualifying for expedited service are processed within the timeliness standards outlined in Section 1240-1-5-.05. In instances where non-compliance is noted, corrective action shall be taken immediately.

History

• Authority: TCA §§14-27-104; 14-27-105; 14-27-107; 7 CFR 273.2 and 273.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed March 28, 1983; effective April 27, 1983.

Tenn. Comp. R. & Regs. 1240-01-05-.04 DEFINITIONS OF DESTITUTE MIGRANT OR SEASONAL FARMWORKER

HOUSEHOLDS. Migrant or seasonal farmworker households may have little or no income at the time of application and may be in need of immediate food assistance, even though they receive income at some other time during the month of application. These households are considered destitute if they meet the criteria as defined in -- 1 of 5 --

Section 1240-1-5-.03(a), (3) and (4). Households other than migrant or seasonal farmworker households shall not be classified as destitute.

(1) Source Of Income Defined. A migrant or seasonal farmworker's source of income shall be considered to be the grower for whom the migrant is working at a particular point in time, and not the crew chief. A migrant who moves from one grower to another is considered to have moved from a terminated to a new source.

(2) Destitute Households - Terminated Income Source.

(a) Migrant or seasonal farmworker households whose only income for the month of application was from a terminated source and whose liquid resources do not exceed $100 are considered destitute. Terminated source is defined as:

1. Income was received prior to the date of application; and 2. Income that is received monthly or more frequently will not be received again from the same source in the month of application or in the month following application; or 3. Income that is normally received less often than monthly will not be received in the month the next payment is normally received.

(b) These households include migrant households which have received their last wages from a grower or farmworker’s who have received expedited services because they may be without income for some time, and may not be able to wait as long as 30 days for food assistance.

(3) Destitute Households - New Source.

(a) Migrant or seasonal farmworker households whose only income for the month of application is from a new source and whose liquid resources do not exceed $100 are considered destitute.

New source is defined as:

1. Income of more than $25 will not be received from the new source by the 10th calendar day following the date of application;

2. Income that is normally received on a monthly basis or more frequently is considered as a new source if income of more than $25 has not been received from that source within 30 days prior to the date the application was filed; or 3. Income that is normally received less often than monthly is considered as new source if income of more than $25 was not received within the last normal interval between payments.

(b) These households may expect to start receiving income from a new employer, but may be totally without income for a number of weeks before the new income begins. Therefore, they may be unable to meet current food needs.

(4) Destitute Households - Both Sources. Households may receive income both from a terminated source prior to the date of application and income from a new source, after the date of application. Such households are considered destitute if they receive no other income in the month of application and income of more than $25 from the new source will not be received by the 10th day after the date of application. -- 2 of 5 --

History

• Authority: TCA §§14-27-104; 14-277-I05; 7 CFR 273.2 and 273.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed March 28, 1983; effective April 27, 1983.

Tenn. Comp. R. & Regs. 1240-01-05-.05 PROCESSING STANDARDS

(1) For households entitled to expedited service (including residents of drug addiction/alcoholic treatment centers and other group living arrangements), the county office will determine eligibility timely to assure that coupons are provided to the household on or before the seventh calendar day following the application date. Expedited service timeliness standards do not begin until the household files an application.

(2) Late Determinations. If the pre-screening required in 1240-1-5-.02 failed to identify a household as being entitled to expedited service and the case manager subsequently discovers that the household is entitled to expedited service, the county must provide benefits to the household on or before the seventh calendar day following the date of discovery.

History

• Authority: TCA §§4-5-202; 71-1-105; 71-3-157; 71-3-158; PL 104-193; CFR 273.2.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed August 5, 1986; effective November 29, 1986. Amendment filed May 8, 1987; effective August 29, 1987. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-05-.06 DETERMINING ELIGIBILITY AND LEVEL OF BENEFITS

(1) Income Considered For Households With Less Than $150 Monthly Gross Income. The eligibility and benefit level for all households with less than $150 gross monthly income shall be calculated in the same manner as any other household.

(2) Income Considered For Destitute Households. Households meeting the criteria in section 1240-1-5- .04(2), Destitute Households-Terminated Source, shall have their eligibility and level of benefits calculated for the month of application by considering only income which is received between the first of the month and the date of application. Households meeting the criteria in section 1240-1-5-.04(3), Destitute Households-New Source, shall have any income received after the date of application disregarded. Households meeting both source criteria is defined in section 1240-1-5-.04(4) shall have income considered if it is received between the first of the month and the date of application and shall have any income disregarded received after the date of application.

(a) Exception-Travel Advances. Some employers provide travel advances to cover the travel costs of new employees who must journey to the location of their new employment. To the extent that these payments are excluded as reimbursement, receipt of travel advances will not affect the determination of whether a household is destitute. However, if the travel advance is by written contract an advance of wages that will be subtracted from wages later earned by the employee, rather than a reimbursement, the wage advance shall count as income. In addition, the receipt of a wage advance for travel costs of a new employee shall not affect the determination of whether subsequent payments from the employer are from a new source of income, nor whether a household shall be considered destitute.

(3) Households which apply after the 15th of the month and are entitled to expedited service, whether or not all verifications have been provided, shall have their benefits prorated from the day of application to the end of the application month and also will be certified for the following month with no proration of benefits. Benefits for the actual month of application and the next calendar month are -- 3 of 5 -issued simultaneously. However, the benefits for the next month shall not be issued until all necessary verification, not already provided, has been provided.

(4) When Expedited Procedures Apply. The above procedures apply at initial application and at certification, but only for the first month of each certification period. At recertification, income from a new source is disregarded in the first month of the new certification period if income or more than $25 will not be received from this new source by the 10th calendar day after the date of the household's normal issuance cycle. At recertification (timely reapplication), households are designated destitute solely to receive entitlement to special income calculation procedures (i.e. disregard of income from a new source in the first month of the certification period).

(5) Households which apply after the 15th of the month, which are eligible for expedited service, and whose verification is not postponed must be issued their second month’s benefits at the same time the initial month’s benefits are issued.

History

• Authority: TCA §§4-5-202; 71-1-105; 71-3-157; 71-3-158; PL 104-193; 7 CFR 273.2.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-05-.07 VERIFICATION FOR EXPEDITED SERVICE

In all cases, the applicant’s identity (i.e. the identity of the person making the application) shall be verified through a collateral contact or readily available documentary evidence. Reasonable efforts shall be made to verify all other factors of eligibility within the expedited processing standards. However, verification of factors other than identity may be postponed to expedite certification.

History

• Authority: TCA §§14-27-104; 14-27-108; 7 CFR 273.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 28, 1981; effective October 13, 1981. Amendment filed March 28, 1983; effective April 27, 1983.

Tenn. Comp. R. & Regs. 1240-01-05-.08 CERTIFICATION PERIODS

(1) Normal Certification Periods. Households that are certified on an expedited basis and have provided all necessary verification required in rule 1240-1-16 prior to certification shall be assigned a normal certification period.

(2) Households which apply after the 15th day of the month must be assigned a two month certification period if eligible for the month of application and the subsequent month.

(3) Optional Certification Periods.

(a) If verification was postponed, the worker may certify these households for the month of application only. However, at the worker's option, a normal certification period may be assigned to those households which circumstances would otherwise warrant a longer certification period. However, in either case, benefits will not be continued past the month of application if verification continues to be postponed.

1. These cases shall be held in a suspense file until verification is provided within the month of application. If verification is not provided by the TWISS computer cut-off date, the ATP card must be held and benefits terminated. -- 4 of 5 -- 2. If certified only for the month of application, the household must reapply and complete the certification requirements which were postponed.

2. If a certification period longer than one month is assigned, the worker shall notify the household using a designated document that no further benefits will be issued until the postponed verification is completed and that if the postponed verification is not completed within 30 days of the date of application, benefits will be terminated. The notice shall also advise the household that if verification results in changes in the household's eligibility or level of benefits, the worker shall act on those changes without an advance notice of adverse action.

(i) When households which apply for benefits after the 15th of the month provide the postponed verification, the second month's benefits shall be issued within five working days from receipt of the verification or the first of the second month, whichever is later.

(ii) Exception - migrant households eligible for expedited service and applying after the 15th of the month and which are assigned certification periods of no longer than one month, will be notified in writing that they shall provide postponed verification from sources within the state before a second month's benefits are issued and will provide all verification from out-of-state sources before being issued benefits for the third month. Migrants shall be entitled to postponed outof-state verification only once each season. If a migrant household requesting expedited services has already received this exception during the current season, the county office shall allow the postponement of out-of-state verification only for the initial month's issuance.

(4) Limit On Number Of Expedited Certifications. There is no limit to the number of times a household may be certified under the expedited procedures, so long as, prior to each expedited certification, the household either:

(a) Completes the verification requirements that were postponed at the last expedited certification; or (b) Was certified under normal processing standards since the last expedited certification.

(5) Ineligible For Expedited Service. Households requesting, but not entitled to, expedited service shall have their application processed according to normal standards.

History

• Authority: TCA §§14-24-104 and 14-27-104; 7 CFR 273.2 and 273.10; PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed November 9, 1982; effective December 9, 1982. -- 5 of 5 --

Chapter 1240-01-06 Medicaid Coverage AFDC Only

Tenn. Comp. R. & Regs. 1240-01-06-.01 REPEALED

History

• Authority: T. C.A. §§ 4-3-1204, 4-5-201, et seq., 4-5-202, 4-5-209, 14-3-102, 71-1-105, 71-3-152, 71-3- 153, 71-3-154, and 71-3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq., 42 U.S.C. § 608(a)(6)(A), and 42 U.S.C. § 1396u-1; 45 C.F.R. § 206.10; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31, 47 CFR 206.10; PL 97- 35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Public Necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-06-.03 REPEALED

History

• Authority: T. C.A. §§ 4-5-201 et seq., 4-5-202, 71-1-105(12), and 71-5-102, 42 U.S.C. §§ 1396 et seq., and TennCare Medicaid Section 1115 Demonstration Waiver.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed January 7, 1985; effective February 6, 1985. Repeal filed December 11, 2007; effective February 24, 2008.

Tenn. Comp. R. & Regs. 1240-01-06-.04 REPEALED

History

• Authority: T. C.A. §§ 4-3-1204, 14-8-106, and 71-1-105; and 45 CFR 435.10 and 435.11.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-06-.0 2 REPEALED

History

• Authority: T. C.A. §§ 4-3-1204, 4-5-201 et seq., 4-5-202, 71-1-105, 71-1-105(12), 71-5-102, 71-5-106, 71-5-107, and 71-5-109; 42 U.S.C. § 1315, 42 U.S.C. §§ 1396 et seq., 42 U.S.C. 1396(a)(10)(A)(i)(III) and (IV), 42 U.S.C. § 1396a(e)(4), and 42 U.S.C. 1396a(l)(1), 45 CFR 206.10, PL 97-35, PL 98-369 § 2362; TennCare Medicaid Section 1115 Demonstration Waiver. Administrative History. Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal and new rule filed January 7, 1985; effective February 6, 1985. Repeal and new rule filed December 11, 2007; effective February 24, 2008. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-06-.05 RESERVED FOR FUTURE USE

History

• Authority: T. C.A. § 14-8-106 and 45 CFR 435.10 and 435.11.
• Administrative History: Original rule filed August 15, 1980, effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-06-.06 REPEALED

History

• Authority: T. C.A. §§ 4-3-1204, 4-5-201 et seq., 4-5-202, 71-1-105, 71-1-105(12), 71-5-102, 71-5-106, 71-5-107, and 71-5-109; 42 U.S.C. § 608(a)(11), 42 U.S.C. § 1315, 42 U.S.C. §§ 1396 et seq., 42 U.S.C. § 1396u-1 and 42 U.S.C. § 1396a(e)(1); and TennCare Medicaid Section 1115 Demonstration Waiver.
• Administrative History: Original rule filed August 15, 1980, effective September 29, 1980. New rule filed January 7, 1985; effective February 6, 1985. Repeal and new rule filed December 11, 2007; effective February 24, 2008. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-06-.07 RESERVED FOR FUTURE USE

History

• Authority: T. C.A. § 14-8-106 and 45 CFR 435.10 and 435.11.
• Administrative History: Original rule filed August 15, 1980, effective September 29, 1980.

Chapter 1240-01-07 Periods of Eligibility

Tenn. Comp. R. & Regs. 1240-01-07-.01 PERIODS OF ELIGIBILITY

This section outlines Departmental policies concerning the establishment of periods of eligibility for HH/AG's requesting either AFDC, Food Stamps, or both from the Tennessee Department of Human Services.

(1) Establishing Certification Period - Food Stamps Only. The period of eligibility for a Food Stamp household is its certification period. Definite periods of time are established within which a household shall be eligible to receive benefits. At the expiration of each certification period, entitlement to Food Stamp benefits ends. Benefits shall not be continued beyond the end of a certification period without a new determination of eligibility, even if the household has requested a fair hearing of an adverse action.

(a) Conformance with Calendar Months - Foods Stamps. Food stamp certification periods shall conform to calendar months. The month of application shall generally be the first month of the certification period for initial applications. Upon recertification, the certification period will begin with the month following the last month of the previous certification period.

(2) Determining Length of Certification Period for Food Stamp Households. Households shall be assigned the longest certification periods possible based on the predictability of the household's circumstances. Households must be certified for at least three months except as discussed in Chapter 1240-01-07-.01 (2)(b). In no circumstances may a certification period extend beyond one year.

(a) Variable Benefit Levels Within a Certification Period. The household's allotment will vary from month to month within the certification period to reflect changes anticipated at the time of certification, unless the household elects the averaging techniques in

Chapter 1240-01-04-.17.

(b) Exceptions to Three Month Certification Periods - Food Stamp Only.

1. AFDC/Food Stamp Household Certification Periods - Food Stamp Only.

Households in which all members are included in an AFDC grant shall have their Food Stamp recertification done to the extent possible at the same time the recertification for AFDC is made. The household shall be assigned definite certification periods not to exceed 12 months.

2. Food Stamp Households Certified After the 15th of the Month. Households eligible for a certification period of three months or less shall, at the time of certification, have their certification periods increased by one month, if the certification process is completed after the 15th day of the month of application and the household's circumstances warrant the longer certification period.

3. Households Experiencing Changes. Either before or after the 15th day of the month of application, households shall be certified for one or two months, as appropriate, when the household cannot reasonably predict what its circumstances will be in the near future.

4. Unstable Households - Food Stamps Only. Households shall be certified for one or two months when there is substantial likelihood of frequent and significant changes in income or household status.

5. Stable Households. Households shall be certified for up to six months if there is little likelihood of changes in income or household status.

6. Unemployable Households. Households consisting entirely of unemployable or elderly persons (60 years or older) with very stable incomes shall be certified for up to 12 months provided other household circumstances are expected to remain stable.

7. Certain Self-Employed Households. Households whose primary source of income is from self-employment (including self-employed farmers) or from regular farm employment with the same employer shall be certified for up to 12 months, provided the income can readily be predicted and household circumstances are not likely to change. Annual certification periods may be assigned to farm workers who are provided their annual salaries on a scheduled monthly basis which does not change as the amount of work changes.

History

• Authority: T. C.A. §§ 14-8-106, 14-8-111, and 14-8-115; 45 CFR 206.10; and PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed June 21, 1983; effective September 14, 1983.

Tenn. Comp. R. & Regs. 1240-01-07-.02 REPEALED

History

• Authority: T. C.A. §§ 4-3-1204, 14-8-106, 14-8-111, 14-8-115, and 71-1-105 and 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Chapter 1240-01-08 Definitions and Abbreviations

Tenn. Comp. R. & Regs. 1240-01-08-.01 or a member of the household, or to children under 18 years of age under the parental control of a member of the household, or to either parents living with their natural, adopted, or stepchildren or such children living with such parents, unless at least one parent is elderly or disabled.

2. Boarder status shall not be extended to persons paying less than a reasonable monthly payment for meals. An individual furnished both meals and lodging by the household, but paying compensation less than a reasonable amount, will be considered a member of the household which provides the meals and lodging.

(b) AFDC. A boarder is a person who lives as a member of a family, but who pays a fee for this privilege. His/her board rate covers his/her portion of mutual living expenses and his/her food. Any profit a family or HH/AG realizes from a boarder belongs to the person or the HH/AG including the person to whom he/she pays board.

(10) Boarding House. A boarding house is an establishment which is recognized by the community as a commercial enterprise which offers meals and lodging for compensation. In counties without licensing requirements, a boarding house shall be defined as a commercial establishment which offers meals and lodging for compensation with the intention of making a profit.

(11) Caretaker. A caretaker for AFDC purposes is a specific relative of a child who is providing a home for the child, exercising primary responsibility for the care and control of the child, is in need according to Department standards, is not an SSI beneficiary, and wishes to be included in the AFDC aid group. A caretaker is counted statistically as an AFDC recipient and an allowance is made for the caretaker in the AFDC grant.

(12) Certification Period. A certification period is an assigned period of time during which a household is eligible and certified to receive Food Stamp benefits.

(13) Child Caring Institution. A child caring institution is an institution which provides twenty-four hour care to more than 12 children.

(14) Communal Dining Facility. A communal dining facility is a public or non profit private establishment, approved by FNS, which prepares or serves meals for elderly persons or for Supplemental Security Income (SSI) recipients and their spouses.

(15) Department. The Department is the Tennessee Department of Human Services, an office of which is located in each county in the State of Tennessee.

(16) Dependent Child AFDC Only. "Dependent child" means a needy child under the age of eighteen (18), except as otherwise herein provided, who has been deprived of parental support or care by reason of death, continued absence from the home, or physical or mental incapacity of a parent, and whose legally responsible relatives are not able to provide adequate care and support of such child without public assistance, and who is living with his father, mother, grandfather, grandmother, brother, sister, stepfather, stepmother, stepbrother, stepsister, uncle, aunt, first cousin, nephew, or niece, in a place of residence maintained by one or more of such relatives as his or their own home, or is living in the home of a nonrelative or in a child-caring institution under the terms and conditions set forth in Title IV,

Section 408, Federal Social Security Act. For purpose of assistance under this program a "dependent" shall also include any person between the ages of sixteen (16) and eighteen (18) years and is attending school in conformity with the Federal Social Security Act as amended.

(17) Designated Agent. A person named by an individual requesting AFDC to act for him/her in filing an application, gathering required information, representing him/her at a fair hearing, etc. The designated agent acts for the applicant/recipient in such matters but cannot receive/expend the person's AFDC grant unless he/she is also the person's legally appointed guardian or has been named alternate/ protective payee.

(18) Disability.

(a) FS (Work Registration). A mental or physical impairment which renders a person incapable of gainful employment either permanently or temporarily.

(b) Food Stamps (Determining eligibility for medical deduction, excess shelter deductions, use of income standards, and separate household status for parent/child and sibling rules). An individual is considered disabled if he/she meets any of the following criteria:

1. Receives SSI benefits under Title XVI of the Social Security Act or disability or blindness payments under Titles I, II, X, XIV or XVI of the Social Security Act.

2. Receives federally or state administered supplemental benefits under section 212(a) of Public Law 93-66.

3. Receives disability retirement benefits from a governmental agency because of a disability considered permanent under section 221(i) of the Social Security Act.

4. Is a veteran receiving VA benefits for a service or non-service connected disability rated or paid as total, or is considered by VA standards to be need of regular aid and attendance, or considered permanently housebound.

5. Is a disabled surviving spouse of a veteran and is considered by VA standards to be in need of regular aid and attendance or permanently housebound.

6. Is a disabled surviving child of a veteran and is considered permanently incapable of self-support by VA standards.

7. Is a surviving spouse or child of a veteran and entitled to VA compensation for a service connected death or VA pension benefits for a non-service connected death and has a disability considered permanent under the Social Security Act. 8 . Receives an annuity payment under section 2.(a)(1)(iv) of the Railroad Retirement Act of 1984 and is determined to be eligible to receive Medicare by the Railroad Retirement Board.

8. Receives an annuity payment under section 2.(a)(i)(v) of the Railroad Retirement Act of 1984 and is determined to be disabled based on the criteria used under Title XVI of the Social Security Act.

(c) Food Stamps (Determining eligibility for separate household status of elderly individuals who live with others and who do not purchase and prepare meals separately from others.). Disability for this purpose is defined as any disability considered permanent under the Social Security Act or other non-disease-related, severe, permanent disabilities which prevent individuals from purchasing and preparing their own meals.

(d) AFDC (Eligibility). A mental and/or physical condition, total or partial, permanent or temporary, which restricts a person's occupation/activity to the extent that he/she cannot provide his/her child care and support.

(e) WIN (Registration-AFDC). A mental and/or physical condition, total or partial, permanent or temporary, which prevents a person's participation in a manpower work or training program.

(19) Documentation. Documents in substantiation of a client's statement about factors of eligibility - documentary evidence.

(20) Drug Addiction And Alcoholic Treatment And Rehabilitation Center. A treatment program certified by the appropriate state agency of the State of Tennessee as a bona fide treatment program and conducted by a private, non-profit organization or institution. Residents of such programs may apply for Food Stamp Program benefits with an authorized representative employed by the treatment program acting as the authorized representative for all applicant households.

(21) Earned Income. That total income which an A/R earns by his/her own efforts; either salary, wages or commissions paid to him/her as an employee, or profits from self-employment in an enterprise (including farming), which he/she may carry on independently or jointly with another person or persons. It includes earnings over a period of time for which settlement is made at one given time. It does not include any income such as pensions or benefits accruing as compensation or reward for service or compensation for lack of employment; for example, RSDI benefits, VA benefits, UMW benefits, strike benefits, Unemployment Compensation, etc., nor Military Allotments, allotments from Job Corps participants, or return from capitol investments or income provided by another agency.

(22) Elderly Person. For Food Stamp Program purposes a person 60 years of age or older. A person who is 59 years of age but who will become 60 years of age during the application month will be treated as an elderly person from the date of application.

(23) Eligible Foods - Food Stamp Program (a) Any food or food product intended for human consumption except alcoholic beverages, tobacco and hot foods, and hot food products prepared for immediate consumption.

(b) Seeds and plants to grow foods for the personal consumption of eligible food stamp households.

(c) Meals prepared and delivered by an authorized meal delivery service to households eligible to use coupons to purchase delivered meals or to households eligible to use coupons for communal dining at communal dining facilities for the elderly, for SSI households, or both.

(d) Meals prepared and served by an authorized drug addict or alcoholic treatment and rehabilitation center to households eligible to use coupons to purchase those meals.

(e) Meals prepared and served by an authorized group living arrangement facility to residents who are blind or disabled recipients of benefits under Title II or Title XVI of the Social Security Act.

(f) Meals prepared by and served by a shelter for battered women and children to its eligible residents.

(24) Excluded Household Members. Ineligible aliens who are defined as individuals who do not meet the citizenship or eligible alien status; individuals who are ineligible due to failure to provide or apply for an SSN; and individuals who are disqualified because of intentional program violation or failure to comply with Food Stamp Program work requirements.

(25) Fair Hearing. A procedure whereby an appeal may be made by persons whose applications are denied, not acted upon with reasonable promptness, or who are otherwise aggrieved by the agency's interpretation of any provision of the FS/AFDC laws and regulations as it affects their situations.

(26) Food And Nutrition Service (FNS). The division of the United States Department of Agriculture which supervises the Food Stamp Program at the federal level.

(27) Food Stamp Act. The Food Stamp Act of 1977 (PL 95-133), including any subsequent amendments thereto.

(28) Foster Boarding Home. A licensed or approved home in which twenty-four hour care is provided to a person who lives as a member of the family.

(29) Foster Care. Care provided to a person in a licensed or approved Foster Boarding Home when the person's own home is not available to him/her.

(30) Reserved (31) Full-Time Employee. A person who works 30 hours per week or more or has weekly earnings equal to the Federal minimum wage times 30 hours.

(32) General Assistance Agency. Any agency using local funds to provide financial assistance to individuals and families.

(33) Grantee Relative. A specified relative who receives an AFDC grant for a child or children in his/her care. This person may or may not be included in the aid group.

(34) Group Living Arrangement. A public or private non-profit residential setting that serves no more than sixteen (16) residents and that is certified by the Department of Mental Health. To be eligible for food stamp benefits, a resident of such a group living arrangement must be blind or disabled and receiving benefits under Title II or Title XVI of the Social Security Act.

(35) Guardian. An individual named by a court of competent jurisdiction (usually the County Court) to manage the affairs of an adult who has been adjudicated mentally incompetent or one who has been named to manage the affairs and/or person of a minor.

(36) Homestead. The home and surrounding property which is not separated from the home by intervening property owned by others. Public rights of way, such as roads which run through the surrounding property and separate it from the home, will not affect its classification as a homestead.

(37) Household. For Food Stamp purposes, a group of people who customarily purchase and prepare food together for home consumption. For program purposes, an individual living alone may be a household.

(38) Identification Card (ID). A card which identifies the bearer as eligible to receive and use food coupons.

(39) Income. A recurring gain or benefit measured in money amounts.

(40) Inmate Of Public Institution. A person living in a public institution unless (1) he has definite plans to leave the institution within the current or succeeding month; or (2) he is free to leave on his own volition at any time. See Section 1240-01-31 for Food Stamp policies regarding persons residing in facilities for the treatment of drug addiction/alcoholism.

(41) Inquiry. A request for information about the Family Assistance programs. Inquiries are not applications for assistance and no permanent records of inquiries are kept.

(42) Immigration And Naturalization Service (INS). The Immigration and Naturalization Service of the United States Department of Justice which has jurisdiction over determining the alien status of all residents of the United States.

(43) Institution Of Higher Learning. Any institution providing post-high school education, including but not limited to, colleges, universities, and vocational or technical schools at the post-high school level.

(44) Low Income Household. For Food Stamp purposes, a household whose annual income does not exceed 125% of the Office of Management and Budget guidelines.

(45) Mail Issuance. The method by which eligible households receive their Food Stamps by mail each month.

(46) Mass Changes. Certain changes initiated by the State or Federal Government which may affect the entire Family Assistance case load or significant portions of the case load.

(47) Meal Delivery Service. A non-profit meal delivery service authorized by FNS which provides prepared meals to eligible Food Stamp household members over 60 years of age and their spouses or members (and spouses) who are housebound, physically handicapped, or otherwise disabled to the extent that they are unable to adequately prepare all their meals.

(48) Medicaid. A Federal and State funded medical insurance program administered in this state by the Tennessee Department of Public Health - Medicaid Division. Benefits are available only for certain groups of people. The federal base for the program is Title XIX of the Social Security Act as amended.

(49) Medicare. A hospital insurance benefit and supplemental medical insurance benefit program administered by the Social Security Administration for certain individuals who receive Social Security benefits. Administered under Title XVIII of the Social Security Act as amended.

(50) Minor. A minor is a person under 18 years of age unless his/her minority has been removed at an earlier age by court action.

(51) Net Income. Gross income less appropriate exclusions and work allowances.

(52) Office Of Family Assistance (OFA). The division of the US DHHS which supervises the administration of the AFDC Program.

(53) Overissuance. The amount of food coupons issued to a household which exceeds the amount the household was eligible to receive.

(54) Overpayment. The amount of cash assistance paid to an AFDC family which they were not eligible to receive, i.e., they were totally ineligible or received assistance greater than that to which they were entitled.

(55) Payee. The person to whom an AFDC grant check is made payable.

(56) Prevailing Rate Of Return. The current usual monetary yield on real/personal property of similar type and usage in the area in which the property is located.

(57) Private Institution. A facility which provides, under private management, shelter, custodial care, personal services and, in some instances, nursing care to two or more persons unrelated to the owner or manager. It is usually entirely supported by private funds. It may, however, receive contributions from public funds and still be considered a private institution, if the governmental unit does not exercise any administrative control. Private institutions include such facilities as hospitals, nursing homes, child caring institutions, and homes for the aged. The institution may be operated by an individual, or it may be under the auspices of a church, a fraternal organization, or a private board.

(58) Program. May refer to either the Food Stamp Program conducted under the Food Stamp Act and Regulations or the Aid to Families with Dependent Children (AFDC) Program conducted under Title IV-A of the Social Security Act and Regulations. If not specifically designated, "program" must be read as pertaining to either program depending on the context of the material.

(59) Program Violations (a) Food Stamps 1. Intentional Program Violation occurs when a person intentionally has:

(i) Made a false or misleading statement or has misrepresented, concealed, or withheld facts related to the Food Stamp Program; or (ii) Traded Food Stamp coupons for guns, ammunition, explosives, or controlled substances; or (iii) Committed any act that constitutes a violation of the Food Stamp Act, the Food Stamp Program regulations, or any State statute relating to the use, presentation, transfer, acquisition, receipt, or possession of Food Stamp coupons or ATPs.

2. Inadvertent Household Error. An inadvertent household error caused by a misunderstanding or unintended error on the part of the household. 3 Administrative Error. An administrative error is an error caused by the worker or Department.

(b) AFDC. Whoever knowingly obtains or attempts to obtain or aids or abets any person to obtain, by means of a willfully false statement or representation or by impersonation or other device, assistance for a dependent child to which such child is not entitled, or assistance greater than that to which such child is entitled, shall be guilty of a felony and punishable accordingly.

(60) Project Area.

(a) A county within the State of Tennessee which has been designated as an administrative unit for Food Stamp Program operations; or (b) A geographic area, usually a county, served by one WIN-ES Office.

(61) Protective Payee. An individual (selected by the A/R when possible or by the staff of the Department when necessary) named by the Department of Human Services to receive and expend an AFDC grant for the benefit of a recipient who:

(a) Refuses to participate in WIN.

(b) Refuses to assign support rights/cooperate with the IV-D agency.

(c) Because of physical/mental/emotional disorder, youth or immaturity, or demonstrated inability to manage money, is in need of the assistance of a payee. See Section 1240- 01-18.

(62) Public Institution. A facility which provides shelter, custody or care, and is the responsibility of a governmental unit or over which a governmental unit exercises administrative control.

(63) Recipient. A person who receives an AFDC payment is included in the aid group and is counted statistically as a caretaker, second parent, or dependent child, including a child receiving AFDC-FC.

(64) Recertification/Redetermination Of Eligibility.

(a) Recertification. The processing of an application for recertification for Food Stamps prior to the end of a predefined certification period of a household.

(b) Redetermination of Eligibility. The periodic investigation of each AFDC case which is required in order to establish that the family continues to be eligible for assistance. The terms redetermination of eligibility, review, and periodic review are used interchangeably.

(65) Referral (a) A specific request for assistance or service to a specific individual which is received from or sent to an agency, individual, or other program within the Department of Human Services.

(b) Family Assistance staff will usually receive referrals in written form in relation to an application or active case. Such referrals are to be made a part of the case record.

(c) Referrals by Family Assistance staff may be made on applications and active cases to Social Services, Division of Vocational Rehabilitation, Services to the Blind, or an agency which provides financial aid such as the Social Security Administration, Veterans Administration, and so on. Referrals may be in written form and if so, a copy of the referral is to be made a part of the case folder.

(66) Relative Or Specified Relative.

(a) For AFDC purposes, any blood relative, including those of half-blood; first cousins, nephews and nieces. This includes relationships to persons of preceding generations as denoted by prefixes of grand, great, or great-great.

(b) Stepfather, stepmother, stepbrother, and stepsister.

(c) Legally adoptive parents of the child or of the child's parents, the natural and other legally adopted children of such persons, and the blood relatives of such persons, including first cousins, nephews, and nieces.

(d) Legal spouses of any of the persons named in the three above groups. This applies even though the marriage may have been terminated by death or divorce. There must be a legally recognized relationship existing in addition to a blood relationship in order to be considered a specified relative.

(67) Relocation Payment. A payment to a person who is displaced from his home as a result of HUD assisted or other federally assisted program or project subject to the provisions of the Federal Uniform Relocation Assistance and Real Property Acquisition Act of 1970. The relocation payment is the amount paid to cover moving costs and for homeowners the amount of payment made as a grant over and above the amount paid to him/her for his/her equity in property, to purchase replacement housing. For Renters, the amount paid to assist in obtaining replacement housing (rented or to be purchased).

(68) Resident. A household living in the county in which it files an application for participation. In AFDC, a person who is living in the state voluntarily and not for a temporary purpose, that is, with no intentions of presently removing therefrom; or one living in the state who has come into the state in order to seek or take employment. A child is residing in the state if he/she is making his/her home in the state. Temporary absence from the state with subsequent returns to the state, or intent to return when the purposes of the absence have been accomplished, shall not interrupt the continuity of residence.

(69) Residents Of Institutions. For Food Stamp purposes, individuals who reside in an institution and the institution provides them with the majority of their meals as part of the institution's normal services and the institution has not been authorized to accept Food Stamp coupons.

Residents of institutions are not eligible for participation in the Food Stamp Program, with the following exceptions:

(a) Residents of federally subsidized housing for the elderly, built under Section 202 of the Housing Act of 1959 or Section 236 of the National Housing Act.

(b) Narcotic addicts or alcoholics who, for the purpose of regular participation in a drug or alcohol treatment and rehabilitation program, reside at a facility or treatment center. In AFDC, individuals who reside in an institution. A resident of a public institution is not eligible for assistance unless he/she is a patient in a public medical institution. A resident in a private institution may be eligible if he/she is temporarily absent from home or meets requirements for AFDC-FC.

(c) Disabled or blind individuals who are residents of group living arrangements (as defined in the definitions section, 1240-01-08-.11(34) and who receive benefits under Title II (RSDI) or Title XVI (SSI) of the Social Security Act.

(d) Residents of shelters for battered women and children as defined in 1240-01-08- .01(75). Such persons shall be considered individual household units for the purpose of applying for and participating in the program.

(70) Retail Food Store (a) An establishment or recognized department of an establishment or a house-to-house trade route, whose eligible food sales volume is more than 50 percent staple food items for home preparation and consumption;

(b) Public or private communal dining facilities and meal delivery services and drug addict or alcoholic treatment and rehabilitation programs and public or private non-profit group living arrangements or public or private non-profit shelters for battered women and children;

(c) Any private non-profit cooperative food purchasing venture, including and those whose members pay for food prior to receipt of the food; and (d) A farmers market.

(71) Roomer. Individual to whom a household furnishes lodging, but not meals, for compensation.

(72) Second Parent. A parent who meets the following conditions:

(a) Both parents are in the home with the eligible child and are married to each other. This applies only in AFDC cases in which a disabled natural or adoptive parent is living in the home with the eligible child. If the disabled parent is designated caretaker, the other parent may be designated second parent. A stepparent can qualify as second parent but only if the child’s natural or adoptive parent is disabled and in the home.

(b) The second parent is not receiving SSI.

(c) The second parent is included in the aid group.

(73) Secretary. The Secretary of the United States Department of Agriculture or, if so used, the Secretary of the United States Department of Health and Human Services.

(74) Services. In addition to services related to eligibility for program benefits, services to applicants and recipients shall also include the release of information from program files that is deemed necessary to protect the safety and / or well-being of the applicant / recipient, in the event that the applicant / recipient is reasonably considered to be a danger to him / herself or others based on information provided by the applicant / recipient or his / her household or assistance group. The release of information in these circumstances shall be considered integral to the administration of the program.

(75) Set Of Children. A "set" of children is defined as one child, or two or more children who are full brothers and/or sisters, or half-brothers and/or sisters, i.e. having;

(a) The same father and mother; or (b) The same mother but different fathers; or (c) The same father but different mothers.

(76) Shelter For Battered Women And Children. Public or private non-profit residential facility that serves battered women and their children. If such a facility serves other individuals, a portion of the facility must be set aside on a long-term basis to serve only battered women and children. The shelter must also be a residence which serves meals to its residents to qualify for the special provisions.

(77) Special Action. A purposeful contact between a Family Assistance staff member and a family which is made between recertification/redeterminations of eligibility in order to explore a particular event which was anticipated or reported to the worker and which would have some effect on an individual's (or family's) continued eligibility for benefits.

(78) Special Care. Nursing Care, personal care, and/or household services which are medically required by and being purchased by a person receiving FS/AFDC.

(79) Special Review. A limited review of selected factors of eligibility in a selected sample of FS/AFDC cases when this is required based on Quality Control findings.

(80) Spouse. For Food Stamp purposes either of two individuals;

(a) Who would be defined as married to each other under applicable state laws; or (b) Who are living together and are holding themselves out to the community as husband and wife by representing themselves as such to relatives, friends, neighbors, or tradespeople. For AFDC purposes a legal husband or wife.

(81) State. The State of Tennessee.

(82) State Agency. The agency of State Government which has the responsibility for the administration of the Food Stamp and Public Assistance Programs within the state. In Tennessee, this is the Tennessee Department of Human Services.

(83) Student. An individual attending at least half time, as defined by the institution, any kindergarten, pre-school, grade school, high school, vocational or technical school, training program, college, or university. Enrollment in a mail, self-study, or correspondence course does not qualify such person as a student. Participation in the Job Corps qualifies a person as a student. for AFDC purposes only. A student remains a student during official school vacation periods if he has definite plans to enroll at the beginning of the next school term.

(84) Full-Time Student. A child must have a schedule equal to a full-time curriculum for the school he is attending.

(85) Part-Time Student. A child must have a schedule equal to a one-half of a full-time curriculum in the school he is attending. See sections regarding Work Registration, WIN Registration, and Exclusion of Income.

(86) Supplemental Security Income (SSI). Monthly cash payments made under the authority of Title XVI of the Social Security Act, as amended, to eligible aged, blind, and disabled persons.

(87) Thrifty Food Plan. The diet required to feed a family of four persons consisting of a man and a woman 20 through 54, a child 6 through 8 and a child 9 through 11 years of age, determined in accordance with the Secretary's calculations. The cost of such a diet shall be the basis of uniform allotments for all households regardless of their actual composition, except that the Secretary shall make household size adjustments in the thrifty food plan taking into account economies of scale.

(88) Underissuance/Underpayment. The amount by which Food Stamp coupons or AFDC payments provided to a HH/AG are less than the amount they were eligible to receive.

(89) Unearned Income. Any payments received without the current work efforts of the person, such as but not limited to, unemployment benefits, SSA and SSI benefits, workmen's compensation payments, gifts and contributions, etc.

(90) United States Department Of Agriculture. The agency of the Federal Government authorized by the United States Congress to administer the Food Stamp Program.

(91) United States Department Of Health And Human Services. The agency of the Federal Government authorized to administer the federally aided public assistance programs.

(92) Vendor. A person or organization which provides goods and/or services to an individual or family.

(93) Vendor Payment.

(a) A payment made in money on behalf of a HH/AG to a third party; or (b) A payment made by the agency directly to a provider of goods/services as in AFDC- FC, Medicaid payments to a hospital or nursing home, etc.

History

• Authority: TCA §§ 4-5-201 et seq., 4-5-202, 71-1-105, 71-3-157, and 71-3-158; 7 C.F.R. § 272.1(c)(1)(i), 7 CFR 273.16 and 45 C.F.R. § 205.50(a)(1)(i).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 19, 1981; effective January 25, 1982. Amendment filed April 2, 1982; effective May 17, 1982. Amendment filed July 20, 1982; effective October 13, 1982. Amendment filed March 3, 1983; effective April 4, 1983. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed May 17, 1983; effective June 16, 1983. Amendment filed August 5, 1986; effective November 29, 1986. Amendment filed September 29, 1986; effective December 29, 1986. Amendment filed May 8, 1987; effective August 29, 1987. Amendment filed April 4, 1997; effective June 18, 1997. Amendment filed July 21, 2010; to have been effective October 19, 2010. A two day stay of the effective date was filed September 20, 2010 by the Tennessee Department of Human Services; new effective date October 21, 2010.

Tenn. Comp. R. & Regs. 1240-01-08-.02 ABBREVIATIONS

(1) AFDC - Aid to Families with Dependent Children (2) AG - Aid Group (AFDC)

(3) A/R - Applicant/Recipient (AFDC)

(4) BENDEX - Beneficiary Data Exchange (RSDI)

(5) CETA - Comprehensive Employment & Training Act (6) DHHS - Department of Health & Human Services (7) DHS - Department of Human Services (8) ES or DES - Tennessee Department of Employment Security (9) FA - Family Assistance (10) FNS - Food and Nutrition Services USDA (11) FS - Food Stamps (12) GA - General Assistance (13) HH - Household (FS)

(14) HH/AG - Household/Aid Group (15) HIB - Hospital Insurance Benefits (Part A)

(16) IM or IMS or IMU - Income Maintenance, Service, Unit (17) OTI - Out-of-Town Inquiry (18) QC - Quality Control (19) RSDI - Retirement, Survivors, Disability Insurance (20) SAU - Separate Administrative Unit (WIN Services)

(21) SDX - State Data Exchange (SSI)

(22) SMIB - Supplemental Medical Insurance Benefits (Part B)

(23) SSA - Social Security Administration (24) SSA-DO - SSA District Office (25) SSN - Social Security Number (26) S&P - Systems and Procedures (27) SSI - Supplemental Security Income (28) TCA - Tennessee Code Annotated (29) TWISS - Tennessee Welfare Integrated Service System (30) USDA - United States Department of Agriculture (31) VA - Veterans Administration (32) WIN - Work Incentive Program (33) WIN-ES - WIN Unit in the Department of Employment Security

History

• Authority: TCA §§14-8-106 and 14-27-104; 7 CFR 271. 1.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Chapter 1240-01-09 Transitional Food Stamp Eligibility

Tenn. Comp. R. & Regs. 1240-01-09-.01 ELIGIBILTY REQUIREMENTS

(1) A Families First group with earnings whose case is closed because their income exceeds the Families First income standards may be eligible for five (5) months of Transitional Food Stamps (TFS) if they are part of a currently certified food stamp case.

(a) The Families First closure may be because of new or increased earnings, or because another circumstance occurred in the case which caused existing earnings (with or without other income) to exceed the Families First income standard.

(2) Transitional benefits begin the first month following closure of the Families First case, or as soon as is administratively feasible, and continue for a maximum of five (5) months.

(3) A household member who leaves the Transitional Food Stamp household during receipt of TFS benefits must re-apply for regular food stamp benefits in order to re-gain food stamp eligibility.

He/she may not continue to receive Transitional Food Stamp benefits in a separate household.

(4) Transitional benefits continue throughout the five-month period unless the household re-applies and is approved for Families First or re-applies for regular food stamp benefits.

(5) Only eligible food stamp household members are eligible for Transitional Food Stamps; i.e., ineligible or disqualified individuals are not eligible for TFS.

(6) All food stamp household members do not have to have been receiving Families First to be eligible for transitional benefits. However, if there is an open Families First case remaining within the food stamp household, the food stamp household is not eligible for Transitional Food Stamps.

History

• Authority: T.C.A.§§ 4-5-201 et seq., 4-5-202, 71-1-105, 71-3-154, and 71-5-304; 7 U.S.C.A. §§ 2012(c), 2015(c) and 2020(s); 42 U.S.C.A. § 601 et seq.; 7 C.F.R. § 273.12(f)(4); P. L. 107-171 § 4115; and 69 Federal Register 20724 and 20728, April 16, 2004.
• Administrative History: Original rule filed December 15, 2004; effective February 28, 2005.

Tenn. Comp. R. & Regs. 1240-01-09-.02 DETERMINING THE TRANSITIONAL FOOD STAMP BENEFIT

(1) Determine the Transitional Food Stamp allotment by using the earned and unearned income that was in the food stamp budget prior to Families First closure and removing the Families First grant from the computation.

(2) Assign the household a new certification period that conforms with the five-month transitional period.

History

• Authority: T.C.A.§§ 4-5-201 et seq., 4-5-202, 71-1-105, 71-3-154 and 71-5-304; 7 U.S.C.A. §§ 2012(c), 2015(c) and 2020(s); 42 U.S.C.A. § 601 et seq.; 7 C.F.R. § 273.12(f)(4); P. L. 107- 171 § 4115; and 69 Federal Register 20724 and 20728, April 16, 2004.
• Administrative History: Original rule filed December 15, 2004; effective February 28, 2005.

Tenn. Comp. R. & Regs. 1240-01-09-.03 CHANGES

(1) A Transitional Food Stamp household is not required to report changes during the five-month period unless a household member leaves the household and applies for food stamps in another household.

(2) The TFS household may apply to be re-certified for the regular Food Stamp Program at any time while receiving Transitional Food Stamps.

(3) A TFS household that wishes to increase the level of food stamp benefits because of changes that have occurred must re-apply for re-certification through the regular Food Stamp Program. This includes changes such as an increase or decrease in household size or loss of earnings or other income.

(4) The Transitional Food Stamp household is not required to report any changes in household circumstances to the worker during the five (5) months of TFS.

(a) No action should be taken on the Transitional Food Stamp case unless the recipient requests case closure or re-applies for food stamps in the regular program and is approved, or applies for Families First and is approved.

(b) Any reported change would be applied to the regular food stamp benefits following the TFS period, when a new food stamp certification period is authorized.

(c) If a household member is disqualified for an Intentional Program Violation during the TFS period, the disqualification must be imposed on the individual and the benefits adjusted accordingly.

(d) Allotment reduction must be applied if a claim is established.

History

• Authority: T.C.A.§§ 4-5-201 et seq., 4-5-202, 71-1-105, 71-3-154 and 71-5-304; 7 U.S.C.A. §§ 2012(c), 2015(c) and 2020(s); 42 U.S.C.A. § 601 et seq.; 7 C.F.R. § 273.12(f)(4) and 7 C.F.R. § 273.18(g); P. L. 107-171 § 4115; and 69 Federal Register 20724 and 20728, April 16, 2004.
• Administrative History: Original rule filed December 15, 2004; effective February 28, 2005.

Tenn. Comp. R. & Regs. 1240-01-09-.04 RE-CERTIFICATION FOR REGULAR FOOD STAMP BENEFITS

(1) A household may apply for the regular Food Stamp Program at any time during the TFS period.

(a) If a household applies for re-certification during the transitional period but does not follow through with the application or is determined to be ineligible for the regular Food Stamp Program, transitional benefits should be continued for the remainder of the five-month period.

1. If the household applies for regular benefits during the transitional period and is determined eligible but is entitled to a benefit amount lower than its transitional benefit, the household should be encouraged to withdraw its application and continue to receive transitional benefits.

2. If the household chooses not to withdraw its application, the re-certification process should be completed and the lower benefit authorized beginning with the first month of the new certification period.

(b) If the household applies for the regular Food Stamp Program and is found eligible for benefits higher than its transitional benefits and the TFS benefits have already been issued for the first month of regular Food Stamp eligibility, the worker should authorize the approval and issue the household a supplement for the difference.

History

• Authority: T.C.A.§§ 4-5-201 et seq., 4-5-202, 71-1-105, 71-3-154 and 71-5-304; 7 U.S.C.A. §§ 2012(c), 2015(c) and 2020(s); 42 U.S.C.A. § 601 et seq.; 7 C.F.R. § 273.12(f)(4); P. L. 107-171 § 4115; and 69 Federal Register 20724 and 20728, April 16, 2004.
• Administrative History: Original rule filed December 15, 2004; effective February 28, 2005.

Tenn. Comp. R. & Regs. 1240-01-09-.05 ENDING TRANSITIONAL FOOD STAMP BENEFITS

(1) Transitional Food Stamp households will be sent an appointment notice for re-certification the month before the end of the five-month certification period.

(2) If a household does not respond to the appointment notice, the TFS certification will expire and the case will be automatically closed.

History

• Authority: T.C.A.§§ 4-5-201 et seq., 4-5-202, 71-1-105, 71-3-154 and 71-5-304; 7 U.S.C.A. §§ 2012(c), 2015(c) and 2020(s); 42 U.S.C.A. § 601 et seq.; 7 C.F.R. § 273.12(f)(4); P. L. 107-171 § 4115; and 69 Federal Register 20724 and 20728, April 16, 2004.
• Administrative History: Original rule filed December 15, 2004; effective February 28, 2005.

Chapter 1240-01-10 General Provisions

Tenn. Comp. R. & Regs. 1240-01-10-.01 RESERVED FOR FUTURE USE

History

• Authority: TCA §§14-8-106 and 14-27-104; 7 CFR 271.1.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-10-.02 RESERVED FOR FUTURE USE

History

• Authority: TCA §§14-8-106 and 14-27-104; 7 CFR 271.1.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-01-.03 PURPOSE OF THE FOOD STAMP PROGRAM

The Food Stamp Program is designated to promote the general welfare and to safeguard the health and well-being of the Nation's population by raising the levels of nutrition among low-income households. Section 2 of the Food Stamp Act of 1977 states, in part:

“Congress hereby finds that the limited food purchasing power of low-income households contributes to hunger and malnutrition among members of such households. To alleviate such hunger and malnutrition, a food stamp program is herein authorized which will permit low-income households to obtain a more nutritious diet through normal channels of trade by increasing food purchasing power to all eligible households who apply for participation.”

History

• Authority: TCA §§14-17-104 through 14-8-126; 7 CFR 271.1.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-10-.04 LEGAL BASIS FOR ADMINISTRATION OF THE PROGRAMS

(1) Legal Basis For The AFDC Program. The AFDC Program is established under the Social Security Act of 1935 as amended, (Title IV, Part A) and the Aid and Services to Needy Families with Children Law (TCA §§14-8-101 through 14-8-126).

(2) Legal Basis For The Food Stamp Program (a) The Food Stamp Program is authorized by the Food Stamp Act of 1977 (Title XIII, PL 95- 113). Regulations issued pursuant to the Act are contained in 7 CFR Parts 270-282. The Tennessee Department of Human Services is empowered by TCA §14-27-104, to comply with any requirement that may be imposed, or opportunity presented, by federal law or regulation for the provision of Food Stamp benefits to Tennessee's Food Stamp applicants and recipients.

(b) The provisions of Title 18 of the United States Code, Crime and Criminal Procedure relative to counterfeiting, misuse, and alteration of obligations of the United States are applicable to Food Stamp coupons. Any unauthorized issuance, use, transfer, acquisition, alteration, possession, or presentation of coupons or ATP cards may subject any individual, partnership, corporation, -- 1 of 2 -or other legal entity to prosecution under Sections 15(b) and (c) of the Food Stamp Act or under any other federal, state, or local law, regulation, or ordinance.

Penalties for obtaining and/or redeeming coupons without authority are contained in TCA §14- 27-114.

History

• Authority: TCA §§14-27-104 through 14-8-126; 7 CFR 271.1.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. -- 2 of 2 --

Chapter 1240-01-11 Reserved for Future Use

Tenn. Comp. R. & Regs. 1240-01-11 Reserved for Future Use

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

FAMILY ASSISTANCE DIVISION

Authority: TCA §§14-8-106 and 14-27-104; 7 CFR 271.1. Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. -- 1 of 1 --

Chapter 1240-01-12 Rights and Responsibilities

Tenn. Comp. R. & Regs. 1240-01-12-.01 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. §§ 14-8-112 and 14-27-104; and 7 CFR 272.7 and 45 CFR 205.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-12-.02 NONDISCRIMINATION

(1) Compliance Provision. The Tennessee Department of Human Services, at all administrative levels, shall not discriminate against any applicant or participant in any program aspect, for reasons of age, race, color, sex, handicap, religious creed, national origin, or political belief.

Discrimination in any aspect of program administration is prohibited by the Food Stamp Act of 1977 (Title XIII, PL 95-113), The Age Discrimination Act of 1975 (PL 94-135), The Rehabilitation Act of 1973 (PL 93-112, § 504), and Title VI of the Civil Rights Act of 1964 (42 USC § 2000d.). Enforcement may be brought under any applicable Federal law. Title VI complaints shall be processed in accord with 7 CFR Part 15, USDA’s regulations on nondiscrimination including AFDC Title VI complaints.

(2) Filing Discrimination Complaints.

(a) Discrimination Complaints - Food Stamps Only. Individuals who believe that they have been subject to discrimination for reasons of age, race, color, sex, handicap, religious creed, national origin, or political beliefs, may file a written complaint with the Secretary of Agriculture or the Administrator, FNS, Washington, DC 20250.

1. FNS Discrimination. Requirements (Food Stamps Only).

(i) The complaint must contain the following information:

(I) The name, address and telephone number or other means of contacting the person alleging discrimination.

(II) The location and name of the organization or office which is accused of discriminatory practices.

(III) The nature of the incident or action or the aspect of program administration that led the person to allege discrimination.

(IV) The reason for the alleged discrimination (age, race, color, etc.).

(V) The complaint will be registered and will be processed through the same system as the Fair Hearing process.

(VI) A summary report of the complaint findings will be submitted to the Secretary or FNS Administrator by the Commissioner of Human Services.

(b) Filing Discrimination Complaints - AFDC Only.

1. Who May Complain. Any individual or his/her representative may file with the county, regional or the state office of the Department of Human Services, or with the Federal Department of Health and Human Services (DHHS), a complaint concerning discriminatory practices or actions on the part of the Department or any agency institution, organization, or medical care vendors or practitioners that participate in any way in federal aided welfare programs by providing aid, care, or services. The Department will investigate each complaint promptly to determine whether it is justified and, if justified, what corrective action is appropriate.

2. Requirements for Discrimination Complaints.

(i) Complaints will be filed in writing. If the complainant is not willing to complete the official form, he/she may write a letter setting forth his/her grievance.

(ii) Upon receipt of a written complaint, a complete investigation shall be made promptly. When it is found that discrimination has occurred, corrective action shall be planned immediately. In any instance, a written report of the investigation must be made within 30 calendar days after the date the complaint is filed.

(iii) Complaints of discrimination will be registered and processed through the same system as the Fair Hearing process.

(iv) When the complaint applies to discriminatory actions on the part of contracting agencies, individuals, or institutions from which assistance or service is purchased or secured by the Department, the complainant will be interviewed to secure as much information as possible concerning the nature of the complaint, circumstances which precipitated it, and the date the alleged act occurred. This information will be forwarded to the Commissioner.

3. Public Notification of Nondiscrimination Compliance.

(i) A leaflet outlining the complaint procedure will be available in each county office.

(ii) All Tennessee Department of Human Services Offices will prominently display a nondiscrimination poster.

(iii) The Department shall insure that recipients and other low-income households shall have access to information regarding nondiscrimination statutes and policies, complaint procedures, and the rights of participants.

4. Data Collection on Households by Racial/Ethnic Category - Food Stamps Only (i) Categories. Data shall be collected on all applicant/participant households by racial/ethnic category.

(I) Applicants may be requested to identify voluntarily their race or ethnicity on the application form, but such information will not affect eligibility or the level of benefits.

(II) When the information on racial/ethnic data is not voluntarily provided by the household on the application form, the worker at the intake interview must make this determination by observation.

(ii) Reserved for future use.

History

• Authority: T.C.A. §§ 14-8-112 and 14-27-104; and 7 CFR 272.7 and 45 CFR 205.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-12-.03 AVAILABILITY OF INFORMATION

(1) Public Information.

(a) Official Policy Instructions. Tennessee Family Assistance Plan of Operation, Federal Procedures, Tennessee Department of Human Services Family Assistance Manuals and supplemental instructions issued for use in serving households applying for AFDC or Food Stamps shall be issued to all staff involved in the determination of eligibility for such assistance and shall be maintained in the county and state offices of DHS for examination by the public on regular work days during regular office hours.

(b) Availability of State and Federal Instructions to the Public. Copies of the Family Assistance Manual are made available to public custodians who request the manual for use by the public, are centrally located, and publicly accessible to a substantial number of the recipient population, and agree to accept responsibility for filing all amendments and changes forwarded to them by DHS. Copies sufficient to meet such custodian needs are issued without charge initially and when the Family Assistance Manual is reprinted in its entirety. Any other manuals requested by such custodians may be furnished at a charge related to the cost of production. Other groups, agencies, or individuals serving a substantial recipient population who request the manual, agree to file all amendments and changes forwarded to them by DHS, and who commit themselves to using the manual for informational purposes may be furnished copies of the manual, at the discretion of the Commissioner or his/her designee, at a charge related to the cost of production. Upon request, specific policy materials necessary for an applicant/recipient or his/her representative to determine whether a fair hearing should be requested or to prepare for a hearing will be made available to the applicant/recipient and/or his/her representative without charge. Food Stamp Regulations, plans of operation, and Federal Procedures which affect the public shall be maintained in the local and state offices. In addition, copies of the aforementioned may be obtained by writing or contacting the Southeast Regional Office, United States Department of Agriculture, Food and Nutrition Service, 1100 Spring Street N.W., Room 200, Atlanta, GA 30309.

(c) Other printed materials - Food Stamps and AFDC. The Tennessee Department of Human Services will provide other printed materials, such as brochures, pamphlets, leaflets, etc., that clearly describe basic financial and nonfinancial eligibility criteria, the application process, and participants rights and responsibilities. In Food Stamps this written information shall be made available to local social security offices, Department of Employment Services Offices, and other agencies and organizations assisting in the State Outreach Program.

(2) Hotline Service - Food Stamps.

(a) The Tennessee Department of Human Services will operate a food stamp toll-free hotline service.

(b) The hotline service number will be posted in all Food Stamp offices and will be included on printed material.

History

• Authority: T.C.A. § 14-8-106 and 45 CFR 205.70.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-12-.04 USES FOR FOOD COUPONS - FOOD STAMP ONLY

(1) Food coupons are designed for use by participants to purchase eligible foods, including seeds and plants, for home consumption and use.

(2) Special Uses. Certain households have been authorized to use their coupons to obtain prepared meals or to facilitate their obtaining food. These authorized special uses are:

(a) Communal Dining. Eligible household members, 60 years of age or over, or SSI recipients and their spouses, may use coupons issued to them to purchase meals prepared especially for them at communal dining facilities authorized by FNS for that

purpose. Communal dining facilities include senior citizen centers, apartment buildings occupied primarily by elderly people or SSI households, public or private nonprofit establishments (eating or otherwise) that feed elderly persons or SSI recipients, and federally subsidized housing for the elderly at which meals are prepared for and served to the residents. It shall also include private establishments that contract with an appropriate state or local agency to offer meals at concessional prices to elderly persons or SSI recipients.

(b) Meals-on-Wheels. Eligible household members 60 years of age or over, or members who are housebound, feeble, physically handicapped, or otherwise disabled to the extent that they are unable to adequately prepare all their meals, and their spouses may use all or any part of the coupons issued to them to purchase meals from a nonprofit meal delivery service authorized by FNS. Meal delivery service means a political subdivision, a private non-profit organization, or a private establishment with which the state or local agency has contracted for the preparation and delivery of meals at a concessional price to the people listed above and which is authorized by FNS.

(c) Addicts And Alcoholics In Treatment Programs. Members of eligible households who are narcotic addicts or alcoholics, and who are participating regularly in a drug or alcoholic treatment and rehabilitation program, may use all or part of the coupons issued to them during the course of such programs to purchase meals prepared for them by a private non-profit organization or institution. Such institution or organization must be approved by the Tennessee Department of Mental Health and Mental Retardation or by FNS if the center wishes to redeem food coupons as a retailer.

(d) Group Living Arrangement. A public or private non-profit residential setting that serves no more than sixteen (16) residents and that is certified by the Department of Mental Health. To be eligible for Food Stamp benefits, a resident of such a group living arrangement must be blind or disabled and receiving benefits under Title II or Title XVI of the Social Security Act.

History

• Authority: T.C.A. § 14-3-102 and 45 CFR 234.11.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-12-.08 COMPLAINT PROCEDURE FOR PROGRAM MATTERS

(1) Federal Level Responsibility (Food Stamps). Persons or agencies desiring program inf ormation or wishing to file a complaint may contact the FNS Regional Office.

(2) State Level Responsibility - Food Stamps/AFDC.

(a) Formal Complaints. The Tennessee Department of Human Services will provide a fair hearing to any person or household aggrieved by any action which affects their eligibility, level of benefit, or participation in the Family Assistance Program.

(b) Informal Complaints - AFDC. Persons or agencies desiring program information or wishing to file a complaint may contact any or all of the following:

1. Director of the local county office of the Tennessee Department of Human Services;

2. Director, Financial Assistance Policy; or 3. Commissioner.

History

• Authority: T.C.A. § 14-27-104; 45 CFR 272.1; and PL 97-35.
• Administrative History: Originally filed August 15, 1980; effective September 29, 1980. Amendment filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-12-.05 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, 14-27-104, and 71-1-105; 7 CFR 272.1; and PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-12-.06 FOOD STAMP COUPONS AS INCOME

The coupon allotment provided any eligible household shall not be considered income or resources for any purpose under any federal, state, or local laws, including but not limited to, laws on taxation, welfare, and public assistance programs.

History

• Authority: T.C.A. § 14-27-104 and 7 CFR 272.1.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-12-.07 NO AID REDUCTION BECAUSE OF FOOD STAMP PARTICIPATION

No participating State or political subdivision shall decrease any assistance otherwise provided an individual or individuals because of the receipt of a coupon allotment.

History

• Authority: T.C.A. § 14-27-104 and 7 CFR 272.1.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Chapter 1240-01-13 Case Record Management

Tenn. Comp. R. & Regs. 1240-01-13-.01 CASE RECORD MANAGEMENT

(1) Reserved for Future Use.

(2) Reserved for Future Use.

(3) Reserved for Future Use.

(4) Reserved for Future Use.

(5) Confidentiality Of Case Records.

(a) The Department of Human Services in Tennessee, in accordance with the laws of this State and the Federal statutes pertaining to this subject, has adopted the policy of maintaining the confidential nature of Family Assistance information. This same policy applies to all case records. whether Family Assistance or otherwise.

(b) Information Considered Confidential. In general, the information listed below will be considered as confidential:

1. Case records.

2. Lists of Family Assistance recipients.

3. Reports of investigations and medical investigations.

4. Names and addresses of Family Assistance recipients.

5. All other information known to the agency in connection with Family Assistance and other services.

6. Information contained on applications and on various forms.

(c) Exceptions to 1240-01-13-.01(5)(b) above:

1. Release to law enforcement officials to assist in prosecuting fraud against the Department or of child abuse.

2. Release to appropriate agencies assisting in collection of child support in the AFDC program.

3. Release to service providers, such as mental health professionals, providing services to abusive or neglectful parents.

4. Release to Employment Security for work registration requirements or WIN.

5. Release to the child's guardian ad litem in child custody and guardianship cases.

6. Disbursement report. AFDC only.

7. Total expenditure of funds.

8. Number of recipients and other statistical information.

9. Social data continued in general studies.

10. Reports on surveys.

(d) Release of Information to the Applicant/Recipient or His/Her Representative.

1. Food Stamp Records. Information in Food Stamp records will be made available upon written request to a responsible member of the Food Stamp household, the household's currently authorized representative, or a person acting on the household's behalf during normal business hours. If the person seeking to inspect the record is not a member of the household, the currently authorized representative, or a licensed attorney representing the household, written authorization from the household for the person to act on its behalf is required.

However, the county office may withhold confidential information such as the names of individuals who have disclosed information about the household without the household's knowledge, or the nature or status of pending criminal prosecutions.

2. AFDC Records. The applicant/recipient shall have adequate opportunity at any reasonable time to examine, copy, and make notes about the contents of the case file about his/her circumstances maintained by DHS. The applicant/recipient may be accompanied and assisted by another individual, including a non-lawyer, to review the file with him/her. When the applicant/'recipient has secured the service of an attorney, the attorney and that attorney's authorized non-lawyer employee shall have access at any reasonable time and upon written request to examine, copy, and make notes about the contents of the A/R's case file. The attorney must provide a written request which:

(i) includes the attorney's confirmation that the A/R has retained him/her as counsel;

(ii) provides assurance that the confidential nature of the information will be preserved;

(iii) provides assurance that the information will be used only for the

purpose for which it is made available.

The individual granted access to the case record can only be the applicant/recipient, an individual accompanying and assisting the A/R in the A/R's presence, the A/R's attorney, or that attorney's non-lawyer employee whom the attorney supervises. Identification of the individual requesting access will be verified, unless she/he is known to the worker or other staff in the office.

3. Merged Records. AFDC/FS. When individuals who are permitted access to the Food Stamp case, but not the AFDC case record, request access to the merged record, information regarding the AFDC program will be temporarily removed from the case folder.

4. Protection of Case Material - AFDC/FS. A staff member will remain with an applicant/recipient, a claimant, or his/her representative who is reviewing a case folder document or is copying material from the folder to ensure that no material is removed from and subsequently not returned to the folder and to ensure that the original document (not the copy) is replaced in the folder.

5. Access to Sensitive Data - AFDC/FS. While an applicant/recipient or his/her representative cannot be denied access to any portion of the case folder, at times there is information in the folder which could be damaging to the person.

This is particularly true of medical/psychiatric/psychological reports. Also, some material is labeled "Confidential" by the provider. When such circumstances exist and the person is represented by an attorney, the attorney will be asked to consider the advisability of him/her having access to the documents but withholding them from the applicant/recipient. However, this decision must be made by the attorney/client and not by DHS staff.

6. Interpretation of Case Material - AFDC/FS. Staff will make no effort to interpret or explain forms, documents, or other information contained in a case folder being reviewed by an applicant/recipient or his/her representative.

7. Making Copies of Information in Case Record - AFDC/FS. Applicant/recipient or their representatives are to be permitted to make copies of any pertinent information which they are allowed to see. Upon an appellant's/his/her representative(s) request, one copy of portions of the case file relevant to the fair hearing/fraud hearing shall be furnished free of charge. When copying equipment is available, copies of other case file material may be furnished to an A/R, or an appellant, or an applicant/recipient's/appellant’s representative at a charge of 10 cents per page (e.g., a charge of 20 cents would be made if the front and back of one page were copied). Under no circumstances will an applicant/recipient or his/her representative be permitted to remove a case folder from the county office. Neither will a staff member be furnished to take a folder from the office for the purpose of making copies of file material.

(e) Release of Information to Persons Other Than the Recipient or Someone Acting on His/Her Behalf. Except as specified below, no information from case records in the possession of this Department is to be released to anyone outside this Department other than the Applicant/Recipient or his/her representative. The exceptions to this policy:

1. Food Stamps Only. Use or disclosure of information obtained from Food Stamp applicant households exclusively for the Food Stamp Program is restricted to the following persons:

(i) Persons directly connected with the administration or enforcement of the provisions of the Food Stamp Act or regulations, other federal assistance programs, or federally assisted state programs which provide assistance on a means-tested basis to low income individuals;

(ii) Employees of the Comptroller General's office of the United States for audit examination authorized by any other provision of law; and (iii) Local, state, or federal law enforcement officials, upon their written request, for the purpose of investigating an alleged violation of the Food Stamp Act or regulations. The written request must include the identity of the individual requesting the information, his authority to do so, the violation being investigated, and the identity of the person on whom the information is sought.

(iv) Local, state, or federal law enforcement officials may receive the address, Social Security Number, and (if available) photograph of a Food Stamp recipient if the officer furnishes the recipient’s name and notifies the Department that the individual:

(I) is fleeing to avoid prosecution, custody, or confinement for a felony; or (II) is violation a condition of parole or probation; or (III) has information necessary for the officer to conduct an official duty related to items (I) and (II); and I. locating or apprehending the household member must be an official duty of the officer making the request; and II. the request is being made in the proper exercise of an official duty.

2. AFDC Only - Sharing of Information with Other Agencies. In the administration of the Family Assistance program and in connection with the individual case situations, information may be given as operates to the welfare of the individual, if the disclosure of such information does not operate to his/her embarrassment or possible exploitation. Information may be shared in these situations, when the following safeguards are observed:

(i) The inquiring agency or individual has given assurance that the confidential nature of the information will be preserved.

(ii) The agency or individual has given assurance that the information will be used only for the purposes for which it is made available, such purposes being reasonably related to the purposes of the Family Assistance Program, and the function of the inquiring party.

(iii) The standards of protection established by the agency or individual are equal to those established by the Department.

3. Release to Law Enforcement Officials - AFDC Only. Information may be released to appropriate law enforcement officials as may be needed by them in the apprehension and/or conviction of felons. This exception does not authorize release of information to assist process servers or others needing it for civil reasons.

4. Release Pursuant To Valid Subpoena Or Court Order - Food Stamps/AFDC.

The Department will comply with a valid subpoena or court order for the release of information. If the subpoena would allow unrestricted access to the records, however, the court will be asked to limit the scope of discovery.

5. Disbursement Records Available To The Public In County Offices - AFDC Only.

(i) Disbursement records shall be placed in a binder provided for this purpose in a convenient place in the office so they will be available to the public.

(I) A copy of House Bill No. 322 (March, 1953) shall be pasted on the inside of the front cover of the binder.

(II) A register for the signatures of individuals who inspect the disbursement records shall be maintained as a permanent record.

The date of inspection shall be included on the register.

(ii) It is unlawful for an individual to copy disbursement records. If such an attempt is made, the staff present shall call the individual's attention to the law. If the individual should persist in his/her effort, a law enforcement officer shall be called and asked to stop the illegal act.

(iii) Reserved for future use.

History

• Authority: TCA §§14-1-105(12); 14-8-106; 14-8-119, and 14-27-104(2); 7 CFR 272.1 (as amended 49 Federal Register 48680) and 45 CFR 205.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 23, 1983; effective September 22, 1983. Amendment filed April 30, 1985; effective May 30, 1985. Amendment filed March 10, 1986; effective June 14, 1986. Amendment filed April 3, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-13-.02 OTHER REQUESTS FOR INFORMATION

All other requests for information received by the Department or any of its divisions should be referred through channels to the Director of Family Assistance.

(1) Reserved for future use.

(2) Reserved for future use.

(3) Applications by Department Employees and Their Relatives. To avoid conflict of interest and insure privacy, special handling is given to Tennessee Department of Human Services employees and their relatives who apply for and receive Family Assistance benefits.

(a) The County Director or Regional Director, as appropriate, must be made aware of applications, recertifications, or case reviews for Family Assistance from an employee of the Department or from an employee's mother, father, grandparents, brother, sister, aunt, uncle, child, or member of the employee's household. Such actions are to be processed by a first-line Supervisor or other person designated by the County Director or Regional Director as appropriate.

(b) Each county shall develop a plan for limited access to these case records by other staff members and the employee himself/herself.

History

• Authority: TCA §14-8-119; 45 CFR 205.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-13-.03 RESERVED FOR FUTURE USE

History

• Authority: TCA §14-8-119; 45 CFR 205.50.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Chapter 1240-01-14 Application Process

Tenn. Comp. R. & Regs. 1240-01-14-.01 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 206.10.
• Administrative History: Original rule filed August 15. 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.02 VOLUNTARY WITHDRAWAL

The Household/Aid Group may voluntarily withdraw its application at any time prior to the determination of eligibility.

History

• Authority: T.C.A. § 4-8-106 and 45 C.F.R. 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.03 PROMPTNESS

(1) Food Stamps Only. The HH/AG must be given an opportunity to participate no later than thirty (30) days after an application is filed. Expedited service shall be available to HH/AG in immediate need. Benefits must be provided retroactively to the month of application for HH/AG who have completed the application process and been determined eligible.

(2) AFDC Only. The standard of promptness for completing AFDC applications shall be 45 days from the date of application.

(a) Exceptions. This standard will be adhered to in all instances except those over which the agency has no control. Such instances are limited to:

1. Inability to secure an immediate or early appointment with a physician for the

purpose of obtaining a general physical examination (when incapacity of a parent is claimed as the basis of the child’s deprivation).

2. Delay in submitting medical information to the county office by the physician.

3. Failure of another agency to supply in a timely manner requested information required to establish eligibility.

4. Failure of the applicant, or person acting for him, to furnish information that he has been advised is required to establish eligibility.

(b) Reserved for Future Use.

History

• Authority: T.C.A. § 14-8-106 and 45 C.F.R. 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.04 FILING AN APPLICATION

An application is a signed document submitted to the Human Services Department on which the HH/AG has requested assistance for Food Stamps, Family Assistance or Medicaid. Applications can be filed in person, by authorized representative, by a person’s legally appointed guardian (AFDC only), or by mail. Applications shall be made in the county of residence during working hours.

(1) Same Day Filing - Food Stamps/AFDC. Any person inquiring about making application for Food Stamps, AFDC, or Medicaid shall be advised of their right of same-day filing. To assure that all applicants are advised of their right to file an application on the same day they contact the Family Assistance Office, the county shall post signs in their certification office which explain that right, and shall include information about same-day filing in out-reach materials and on the application form. These posters and information materials will be provided by the state office. The county shall provide an application to anyone requesting one. If an application is filed, the date of application shall be recorded on the application form. The applicant shall also be advised that he/she does not have to be interviewed before filing an application. For Food Stamps an incomplete application may be filed as long as the form contains the applicant’s name, address, and the signature of either a responsible member of the household/aid group or the HH/AG’s authorized representative.

(2) Reserved for Future Use.

(3) Mailing Applications - Food Stamps/AFDC. If the household has contacted the county office by telephone but does not wish to come to the office to file the application that same day and instead prefers receiving an application through the mail, the county shall mail an application form to the household on the same day the written request or telephone call is received.

(4) Contacting the “Wrong” Office - Food Stamps/AFDC.

(a) If a county has designated certification offices to serve specific areas of the county, applicants may at times contact (in person or by phone) the “wrong” office. If so, the “wrong” office must still assist the applicant as follows:

1. Advise the applicant of same-day filing and mailing or an application.

2. Give the applicant the address and telephone number of the correct or appropriate office.

3. Offer to forward the applicant’s application to the appropriate office that same day if the applicant has completed enough information on the form to submit it.

(b) The applicant must be informed that the application is not considered filed and the processing standards do not begin until the application is received in the appropriate office. If an application is mailed to the wrong office, that office shall mail the application to the appropriate office the same day it is received.

(5) Food Stamps/AFDC Applications. The county office shall conduct a single interview at initial and subsequent applications. AFDC applicants also applying for Food Stamps shall be interviewed by one worker for both types of assistance. However, eligibility and benefit levels shall be based on food stamp criteria for Food Stamps and Public Assistance criteria for AFDC. Certification shall be in accordance with notice and procedural requirements of the Food Stamp regulations and AFDC regulations accordingly.

History

• Authority: T.C.A. § 14-8-108 and 45 C.F.R. 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.05 PRESCREENING

(1) Food Stamps Only. The county’s application procedures shall be designed to identify applicants who are eligible for expedited service at the time they request assistance.

(2) AFDC Only. It is the policy of the Department to determine eligibility of AFDC applications in chronological order. However, when the application interview or referral indicates that an emergency situation exists, such applications will be given emergency priority.

History

• Authority: T.C.A. § 14-8-106.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.06 DISPOSITION OF APPLICATIONS

An application continues in the application stage until an action is taken. This action consists of:

(1) Approval of application.

(2) Denial or rejection of application due to death, withdrawal of application, loss of contact, failure to provide or obtain information necessary to determine eligibility or ineligibility based on program regulations.

(3) Pending of Application.

History

• Authority: T.C.A. § 14-8-110 and 45 C.F.R. 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.07 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. § 14-8-110 and 45 C.F.R. 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.08 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. § 14-8-110 and 45 C.F.R. 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.09 APPLICATION PROCESS - FOOD STAMPS ONLY

Households found eligible after consideration of the non-financial criteria section 1240-01-03 should have their food stamp income compared to the monthly income eligibility standards for the appropriate household size to determine if the household is eligible based on financial criteria. Households which do not contain a member who is elderly or disabled (see definition of “elderly” and “disabled” in 1240-01-08-.01) are subject to a gross income limit of 130 percent of the Office of Management and Budget nonfarm poverty guideline. To determine this limit, nonexempt gross income shall be added together, and this sum shall be compared to the eligibility limit for the appropriate household size. If the monthly income exceeds the amount shown on Table I, section 1240-01-04-.27, the household is ineligible. If the monthly income is less than or equal to the gross income limit, normal procedures allowing deductions shall be followed. All households including households containing an elderly or disabled member (as defined in section 1240-01-08-.01) are subject to the net monthly income standards in Table II, section 1240-01-04-.27.

(1) Determining the Monthly Allotment - Food Stamps Only.

(a) General. The household’s monthly allotment shall be equal to the Thrifty Food Plan as defined in section 1240-01-04-.27 for the household’s size reduced by 30 percent of the household’s net monthly income as calculated in section 1240-01-04-.27. After multiplying the net income 30 percent, the result shall be rounded by using the appropriate rounding procedures prior to subtracting the amount from the Thrifty Food Plan.

(2) Proration of Initial Month’s Benefits. The amount of the household’s benefits for the initial month of certification will be based on the day of the month it applies for benefits. The following procedures shall be used to determine the amount or initial benefits:

(a) A household’s benefit level for the initial month of certification will be based on the day of the month it applies for benefits. Using a 30-day calendar month, households shall receive benefits prorated from the day of application to the end of the month. A household applying on the 31st of a month will be treated as though it applied on the 30th of the month. The term certified for participation in the Food Stamp Program or the first month following any period which the household was not certified for participation.

If the prorated initial month’s benefits are computed to be less than $10.00, no benefits will be issued for the initial month.

(3) If an application for recertification is submitted after the household’s certification period has expired, that application shall be considered an initial application and benefits for that month will be prorated.

(4) Eligible households which are entitled to no benefits shall be denied participation on the grounds that their net income exceeds the level below which benefits are issued.

(a) For those eligible households which are entitled to no benefits in their initial month of application, but are entitled to benefits in subsequent months, the period of certification will begin with the month of application.

(b) With an Unverified Deductible Expense. If a household is claiming actual utility expenses in excess of the State Agency’s utility standard and the expense would actually result in a deduction, the expenses must be verified. If the actual utility expenses cannot be verified before the 30 days allowed to process the application expire, the State Agency shall use the standard utility allowance, provided the household is entitled to use the standard. If the household wishes to claim expenses for an unoccupied home, the worker shall verify the actual utility expenses for the unoccupied home in every case and shall not use the standard utility allowance.

(c) Other Deductible Expenses. If a deductible expense must be verified and obtaining the verification may delay the Food Stamp certification, the worker shall advise the household that the eligibility and benefit level may be determined without providing a deduction for the claimed but unverified expense. Shelter costs would be computed without including the unverified components. The standard utility allowance shall be used if the household is entitled to claim it and has not verified higher actual costs. If the expense cannot be verified within 30 days of the date of application, the worker shall determine the eligibility and benefit level without providing a deduction for the unverified expense. If the household subsequently provides the missing verification, the worker shall redetermine the benefits and provide increased benefits, if any, in accordance with the timeliness standards. The household shall be entitled to the restoration of lost benefits as a resulting of the disallowance of the expense only if the expense could not be verified within the 30 days processing standard because the worker failed to allow the household sufficient time to verify the expense.

History

• Authority: T.C.A. §§ 14-8-106, 14-8-108, 14-27-104, and 14-27-105; PL 97-35; and 7 C.F.R. 273.2 and 273.10 (2).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed March 28, 1983; effective April 27, 1983.

Tenn. Comp. R. & Regs. 1240-01-14-.10 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, 14-8-108, 14-27-104, and 71-1-105; PL 97-35; and 7 C.F.R. 273.2.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-14-.11 PROVIDING NOTICES OF ELIGIBILITY - FOOD STAMPS ONLY

Every applicant found eligible to participate in the Food Stamp Program shall be provided with a written notice of eligibility as soon as a determination is made but no later than 30 days after the date of the initial application.

History

• Authority: T.C.A. §§ 14-8-106, 14-8-108, and 14-27-104 and 7 C.F.R. 273.2.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.12 ACTIONS BASED ON INELIGIBILITY AND DELAYED ELIGIBILITY DETERMI-

NATION - FOOD STAMPS ONLY.

(1) Ineligible. Each household that is denied eligibility based on either financial or nonfinancial criteria shall be provided with a written notice of denial.

(2) Delayed Eligibility. If an eligibility determination cannot be made within the 30-day processing standard, the worker shall determine if the delay was caused by the county or the household.

Specific actions must be taken depending on whether the county or the household caused the delay.

History

• Authority: T.C.A. §§ 14-8-106, 14-8-108, and 14-27-104 and 7 C.F.R. 273.2.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.13 PROCEDURES FOR REAPPLICATION AND ADDING INDIVIDUALS - AFDC ONLY

(1) Reapplication. If application for AFDC is made on a case which was denied or closed within three months prior to month of reapplication, it will not be necessary to verify information obtained at the previous application unless the information has changed. If an application is made three months after denial or closure, then the entire application process will be followed.

(2) Adding Individuals to the AFDC Grant. A request for an individual to be included in the AFDC grant is in effect an application for assistance for that individuals. The request must be in writing on a prescribed form and the application date will be the day the Application Form is received in the designated county office.

(a) If the request is made by telephone, the county will date the application form as the date the request was made before sending it to the recipient to be completed. The recipient must be informed that the individual will be added retroactive to the date the request was made only if the form is returned to the appropriate county office within ten calendar days. If the application is received in the county office after the 10 days has elapsed, the otherwise eligible individual will be added as of the date the form is received in the office.

(b) To add a newborn child the above procedure will be followed. However, the child may be added back to the date of birth only if the request is made within 10 days of the child’s birth and the Application Form is received in the appropriate county office within 10 days of the date of the request.

History

• Authority: T.C.A. §§ 14-8-106, 14-8-108, and 14-27-104 and 7 C.F.R. 273.2.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-14-.14 SSI/FOOD STAMP JOINT APPLICATION

This section describes the joint application processing procedures and action that must be taken by the Social Security Administration and the Department of Human Services when an SSI household applies for food stamps at the Social Security Administration Office. Certification of these households must be accomplished by joint processing. The application will be taken by the Social Security Administration and eligibility determination will be made by the Department. The Food Stamp Act of 1977 provides for certain households containing applicants for and recipients of Supplemental Security Income (SSI) to apply for food stamps at offices of the Social Security Administration. Many SSI recipients are also eligible for food stamps, but have found participation difficult. To make it easier for SSI recipients to obtain food stamps, the Secretaries of Agriculture and Health and Human Services have developed a procedure by which households in which all members are SSI recipients could apply for food stamps at the Social Security Office.

(1) SSI Households. For purposes of this section, SSI is defined as Federal SSI payments made under Title XVI of the Social Security Act, federally administered optional supplemental payments under Section 1616 of that act, or federally administered mandatory supplementary payments under 212 (a) of Public Law 93-66. Pure SSI households are those households in which all members are applying for or are participating in SSI.

(a) Entitlement to Joint Processing. Joint processing of food stamp allocations at the SSI Office will be limited to pure SSI households; that is, households in which all members are applicants for or recipients of SSI, and who are neither certified for food stamps nor have applied for food stamps within the past 30 days or do not have an application pending for food stamps. These household’s food stamp eligibility and benefit levels shall be based solely on food stamp eligibility criteria in accordance with the notice, procedural, and timeliness requirements of the Food Stamp Act of 1977 and its implementing regulations. The county office shall make an eligibility determination based on information provided by SSA and/or by the household.

(2) Responsibilities of SSA.

(a) Initial Application and Eligibility Determination.

1. The SSA Office will complete and forward food stamp applications to the local Food Stamp Office when SSI households apply for food stamps at the SSA Office. Whenever a member of the household consisting only of SSI applicants or recipients applies for SSI or at redetermination for SSI at the SSA Office, the SSA shall inform the household of:

(i) Its right to apply for food stamps at the SSA Office without going to the Food Stamp Office; and (ii) Its right to apply at a Food Stamp Office if it chooses to do so.

2. Filing an Application. For purposes of this joint processing procedure, SSA will use the National Food Stamp Application Form instead of the DHS Application for Assistance. An application for food stamps is a signed form FNS-385 Application for Food Stamps submitted to SSA by the SSI household.

Applications may be filed in person, by mail or by an authorized representative.

Application must be made during regular working hours.

3. Handling of Application for Food Stamps. The SSA will accept and complete food stamp application for pure SSI households received at the SSA Office and forward them within one working day after receipt of a signed application to a designated county office. Form SSA 42.33, Social Security Administration Transmittal for Food Stamp Applications, which will contain references to verification obtained by the SSA employee will also be forwarded to the designated county office with the signed application form.

4. Interviewing Households. Households in which all members are applying for or participating in SSI will not be required to see a state eligibility worker or otherwise be subjected to an additional state interview. The SSI household must be interviewed by SSA and submit a signed application prior to eligibility determination by DHS. Interviews may be held in the following manner:

(i) Telephone Interview. If SSA takes and SSI application or redetermination on the telephone from a member of the pure SSI household, a food stamp application shall also be completed during the telephone interview. In these cases, the food stamp application shall be mailed to the claimant for signature for return to the SSA Office or to the designated county office.

The county office shall not require the household to be interviewed again in the Food Stamp Office.

(ii) Face to Face Interview. The SSA will accept and complete applications from pure SSI households at the SSA Office. All signed applications received by SSA shall be forwarded to the designated DHS Office within one working day after receipt of the signed application.

5. Prescreening for Expedited Service. The SSA shall prescreen all applications for entitlement to expedited service on the day the application is received in the SSA Office and shall mark “Expedited Processing” on the first page of each household’s application that appears to be entitled to expedited service. The SSA will inform households which appear to meet the criteria for expedited service that benefits may be issued a few days sooner if the household applies directly at the Food Stamp Office. The household may take the application from SSA to the Food Stamp Office for screening, an interview, and processing of the application.

6. Standard of Promptness. The SSA shall forward applications received from SSI households to the designated Food Stamp Office within one working day after receipt of a signed application.

7. Reserved for Future Use.

8. SSI Recipients Redetermined by Mail. The SSA shall send a stuffer to SSI recipients redetermined by mail informing them of their right to file a food stamp application at the SSI Office (if they are members of a pure SSI household) or at the local Food Stamp Office and their right to an out of office interview to be performed by the county office if the household is unable to appoint an authorized representative.

9. Referral of Non SSI Households. The SSA shall refer non SSI households and those in which not all members have applied for or receive SSI to the correct Food Stamp Office. The county office shall process those applications in accordance with the timeliness standards in 1240-01-17.

(b) Recertification.

1. Jointly processed households which have received Form HS-0258, Notice Concerning Your Application or Redetermination, shall be entitled to make a timely application for food stamp recertification at the SSA Office when the following criteria are met:

(i) The food stamp certification is ending;

(ii) Household is still pure SSI;

(iii) Initial food stamp application was filed with SSA;

(iv) Household chooses to file with SSA.

2. The SSA Office shall accept the application of a pure SSI household and forward the completed application, SSA 42.33 Social Security Administration Transmittal for Food Stamp Applications, and any available verification to the designated Food Stamp Office.

(3) Responsibilities of the Department (DHS). The county office shall make an eligibility determination and issue food stamp benefits to eligible SSI households whose application are forwarded by SSA.

(a) Providing Address of County Office. The local Food Stamp Office shall designate an address for the SSA to forward food stamp applications and accompanying information.

(b) Contacting the Wrong Office. If the application for food stamps is sent to the wrong office by SSA, the application should be sent to the correct office by the county office within one working day of its receipt in the wrong county office.

(c) Informational Material for Applicants. The State Office shall provide the county office with informational material to be forwarded to the SSA Office serving the area. This material will include the following information:

1. Address and telephone number of the household’s correct Food Stamp Office.

2. Information for the applicant/recipient. The informational material will contain the following:

(i) The remaining actions to be taken in the application process;

(ii) That a household should be notified of the food stamp determination within 30 days and should contact the DHS Office if it receives no notification within 30 days or has other questions or problems;

(iii) The client’s rights and responsibilities;

(iv) How and where to obtain coupons; and (v) How to use coupons, including the commodities clients may purchase with food coupons.

(d) Determining Participation. The county office shall determine if members of SSI households whose applications are forwarded by the SSA are already participating in the Food Stamp Program.

(e) Disposition of Applications. The application continues in the application stage until action is taken to approve or deny the case. Disposition of the application should be made in accordance with 1240-01-14-.07.

(f) Standard of Promptness.

1. Normal Processing. The worker shall make an eligibility determination and issue food stamps to eligible SSI households within 30 days following the date the application was received by the SSA. Applications shall be considered filed for normal processing standards when the signed application is received by SSA.

2. The worker shall prescreen all applications received from the SSA for entitlement to expedited service on the date the application is received in the correct Food Stamp Office. For SSI households entitled to expedited service, the county office shall mail the household’s ATP card or coupons no later than the close of business of the 5th calendar day following the date the application was received in the correct county office.

(g) The county office shall complete the application process and approve or deny timely application for recertification in accordance with 1240-01-19-.01. A face-to-face interview shall be waived if requested by a household consisting entirely of SSI participants unable to appoint an authorized representative. The county office shall provide these households with Form HS-0258, Notice Concerning Your Application or Redetermination, in accordance with 1240-01-19-.01 except that such notification shall inform households consisting entirely of SSI recipients that they are entitled to a waiver of a face-to-face interview if the household is unable to appoint an authorized representative.

(4) Verification Procedures. Regardless of whether the SSA or the county office conducts the interview, the required verification must be made prior to a certification of the household for food stamp benefits. Verification is the use of third party information or documentation to establish the accuracy of the application. Form SSA 42.33, Social Security Administration Transmittal for Food Stamp Applications, shall be used for verification purposes of information on the application form. However, the worker shall insure that information required as listed below is verified prior to certification of households initially applying in accordance with 1240-01-16.

(a) Verification for Expedited Processing. The worker shall postpone the verification required above. However, the household’s identity and residency must be verified through a collateral contact or readily available documentary evidence in accordance with section 1240-01-05-.07. The SSA 42.33, Social Security Administration Transmittal for Food Stamp Applications, shall be used for verification. SDX and Bendex may be used to verify information.

(b) Contact with the Household. After the application is received from the SSA, the worker shall not contact the household further in order to obtain information for certification for food stamp benefits unless the application is improperly completed; mandatory verification is missing; or the worker determines that certain information on the application is questionable. The applicant shall not be required under any circumstances to appear at the Food Stamp Office to finalize the eligibility determination. Further contact with the household made in accordance with this subparagraph shall not constitute a second food stamp certification interview.

(c) Methods of Verification.

1. The county office shall not require the household to personally present verification at a Food Stamp Office. The following may be used to verify information:

(i) Form SSA 42.33 Social Security Administration Transmittal for Food Stamp Applications;

(ii) SDX;

(iii) Bendex. Bendex may be used to verify benefit payments or individuals receiving SSI or SSA;

(iv) Documentary Evidence;

(v) Collateral Contact;

(vi) Home Visit.

2. Form SSA 42.33 and SDX/Bendex are the sources of verification that the worker shall use unless they do not contain the necessary information to determine eligibility for food stamps. If the necessary information cannot be verified from these sources, the worker may use an alternate method in accordance with 1240-01-16.

(5) Assigning Certification Periods. Households certified under joint processing procedures shall be certified for up to twelve months in accordance with 1240-01-07 Periods of Eligibility and

Tenn. Comp. R. & Regs. 1240-01-05-.08 Destitute Households.

(6) SSI Determination Results in Denial. In cases jointly processed in which the SSI determination results in denial and the worker believes that food stamp eligibility may be affected, the worker shall send the household Form HS-0258, Notice Concerning Your Application or Redetermination, advising that the certification period will expire at the end of the month following the month in which the notice is sent and that it must reapply if it wishes to continue to participate. Then notice shall also explain that its certification period is expiring because of changes in circumstances which may affect food stamp eligibility or benefit level and that the household may be entitled to an out-of-the-office interview in accordance with

Tenn. Comp. R. & Regs. 1240-01-15-.06 .

(7) Changes in Circumstances. When changes occur within the certification period which affect the household’s eligibility or level of benefits, action must be taken to adjust the benefits.

(a) Household Responsibilities. Households shall report changes in accordance with 1240- 01-19-.04 of Volume II of the Family Assistance Manual.

(b) Worker’s Responsibilities.

1. The worker shall inform the household at each application and recertification of its responsibility to report changes, and action shall be taken on such changes in accordance with 1240-01-19-.04 of Volume II of the Family Assistance Manual.

2. The worker shall monitor the SDX tape on a regular basis to determine the disposition of the application for SSI. Action shall be taken within 10 days of learning of the determination of applications for SSI to adjust benefits in accordance with 1240-01-19-.04 of Volume II of the Family Assistance Manual.

(8) SSI Households Applying at the County Office. The county office shall allow SSI households to submit food stamp applications at the local Food Stamp Office. In such cases, all verifications, including that pertaining to SSI Program benefits, shall be provided by the household, by SDX or Bendex, or obtained by the county office rather than being provided by the SSA.

(9) Restoration of Lost Benefits. The county office shall restore to the household benefits which were lost whenever the loss was caused by an error by the county office or by the SSA through joint processing. Such an error shall include, but not be limited to, the loss of an applicant’s food stamp application after it has been filed with SSA. Lost benefits shall be restored in accordance with 1240-01-21.

(10) Work Registration Requirements. Household members who are applying for SSI and for food stamps under joint processing procedures shall have the requirement for work registration waived until:

(a) They are determined eligible for SSI and thereby become exempt from work registration; or (b) They are determined ineligible for SSI and, where applicable, a determination of their work registration status is then made through recertification procedures in accordance with 1240-01-14-.14(6) or through other means.

(11) Mass Changes. The county office shall be responsible for automatically adjusting a household’s food stamp benefit level to reflect the cost-of-living increases received in Social Security and SSI benefits.

(12) Recertification. The county office shall complete the application process and approve or deny timely applications for recertification in accordance with Volume II of the Family Assistance Manual. A face to face interview shall be waived if requested by a household consisting entirely of SSI participants unable to appoint an authorized representative. The county office shall provide these households with Form HS-0258 Notice Concerning Your Application on Redetermination in accordance with 1240-01-19-.01 except that such notification shall inform households consisting entirely of SSI recipients that they are entitled to a waiver of a face-toface interview, if the household is unable to appoint an authorized representative. SSI households which have received Form HS-0258 Notice Concerning Your Application or Redetermination shall be entitled to make a timely application for food stamp recertification at the SSA office. The SSA shall accept and forward the application and supporting verification to the local food stamp office. These households shall not be required to appear at a second office interview; however, the county office may conduct an out-of-office interview, if necessary.

History

• Authority: T.C.A. §§ 14-27-104 and 14-27-107; PL 97-35; and 7 C.F.R. 272.2(k)(i) and 273.2(i)(2).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 10, 1981; effective January 25, 1982. Amendment filed March 28, 1983; effective April 27, 1983.

Tenn. Comp. R. & Regs. 1240-01-14-.15 CATEGORICALLY ELIGIBLE HOUSEHOLDS - SNAP ONLY

(1) Basic Categorical Eligibility. Except as otherwise provided herein, households consisting entirely of SSI and/or Temporary Assistance for Needy Families (TANF) recipients are categorically eligible for the Supplemental Nutrition Assistance Program (SNAP), regardless of whether the requirements in chapters 1240-01-03 and/or 1240-01-04 are met. “Recipients” include the following individuals:

(a) Persons who receive or are authorized to receive TANF cash assistance or SSI benefits;

(b) Persons whose TANF grant or SSI payment is being recouped or has been suspended temporarily (i.e., the TANF grant is suspended for one month in the retrospective cycle because of extra income in a given month);

(c) Persons approved for TANF, but who do not receive a payment because they are eligible for a grant of less than $10.00; and (d) Persons receiving Medicaid only are not considered recipients for this purpose.

(2) Expanded Categorical Eligibility. Except as otherwise provided herein, households containing a member who receives or is authorized to receive non-cash or in-kind TANF services are categorically eligible for SNAP, regardless of whether the requirements in chapters 1240-01- 03 and/or 1240-01-04 are met.

(a) Households under expanded categorical eligibility must have a gross monthly income at or below 200% of the Federal poverty level and a net monthly income at or below 100% of the Federal poverty level.

(b) Households under expanded categorical eligibility shall have their eligibility verified in accordance with 7 C.F.R. § 273.2(j).

(3) Exceptions to basic and expanded categorical eligibility.

(a) Notwithstanding the provisions in paragraphs (1) and (2), a household is not categorically eligible, and is subject to all SNAP eligibility requirements if:

1. Any member is disqualified for an Intentional Program Violation;

2. The head of the household is disqualified for failure to comply with SNAP work requirements; or 3. Any member of the household is ineligible under 7 C.F.R. § 273.11 by virtue of a conviction for a drug-related felony, for being a fleeing felon or a probation or parole violator, or for having a conviction of certain crimes and not being in compliance with the sentence.

(b) Notwithstanding any other provision of these rules, the following individuals cannot be included as eligible members of an otherwise categorically eligible household:

1. Ineligible aliens;

2. Students who are ineligible under the student provisions;

3. Institutionalized individuals [except those listed in rule 1240-01-02-.02(4)(b)]; or 4. Ineligible because of failure to comply with a SNAP work requirement.

(4) Standard Eligibility. Households that do not meet the criteria for basic or expanded categorical eligibility shall have eligibility determined as set forth elsewhere in division 1240- 01.

(5) Any household certified to receive benefits shall lose eligibility for benefits immediately upon receipt by any individual in the household of substantial lottery or gambling winnings, as defined in 7 C.F.R. § 273.11(r)(2). The household shall remain ineligible until they meet the allowable resource and income requirements for standard eligibility.

History

• Authority: T.C.A. § 71-5-304; 7 U.S.C. § 2014; and 7 C.F.R. §§ 273.2(j) and 273.11(r).
• Administrative History: Original rule filed November 28, 1986; effective February 28, 1987. Amendments filed January 15, 2026; effective April 15, 2026.

Chapter 1240-01-15 Interviewing for Eligibility

Tenn. Comp. R. & Regs. 1240-01-15-.01 RESERVED FOR FUTURE USE

History

• Authority: TCA §§14-8-106 and 14-8-109.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-15-.02 RESERVED FOR FUTURE USE

History

• Authority: TCA §§14-8-106 and 14-8-109.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-15-.03 MANDATORY INTERVIEWING

A face-to-face interview will be conducted with all applicant/recipient HH/AGs by a qualified eligibility worker prior to initial certification/approval; prior to recertification for Food Stamps; and at annual redetermination of eligibility for AFDC (twelve [12] month face-toface review).

(1) The interview will be conducted in the county Department of Human Services office or other Food Stamp certification (for Food Stamp purposes) site except when the office interview is waived.

(2) The interview will be conducted as an official and confidential discussion of household circumstances.

The applicant's right to privacy will be protected during the interview. Facilities will be of adequate size and layout to assure privacy and protect the confidentiality of the interview.

(3) The person interviewed must be:

(a) Food Stamps. Head of household, spouse, any other responsible member of the household or an authorized representative who is an adult and who has knowledge of the household's circumstances.

(b) AFDC. The applicant/recipient. If the A/R has a guardian or designated agent this person must also be interviewed, but no grant can be approved/continued without contact with the A/R unless he/she is hospitalized.

History

• Authority: TCA §§14-8-106(2); 14-8-109, and 14-24-104(2); 7 CFR 273.2(e).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 2, 1983; effective January 1, 1984.

Tenn. Comp. R. & Regs. 1240-01-15-.04 SCHEDULING INTERVIEWS

(1) AFDC Only. The county will schedule face-to-face or out-of-office interviews as promptly as possible after the filing of applications in order to ensure that eligible AUs have an AFDC check mailed within forty-five days after the application is filed.

(2) Food Stamp Only. The county will schedule face-to-face or out-of-office interviews as promptly as possible after the filing of applications in order to ensure that eligible HHs receive an opportunity to participate in the Food Stamp Program within 30 days after the application is filed. If a HH fails to appear for the first interview, the county shall attempt to schedule another interview during the application-processing period. The interview will be rescheduled by the county without requiring the HH to provide good cause for failing to appear. If the HH does not appear for the rescheduled interview, the county need not schedule any further interviews unless the HH requests that another interview be scheduled. A request for Food Stamps cannot be approved/continued until the HH has satisfied the interview requirements.

History

• Authority: TCA §§14-8-106(2); 14-8-109, and 14-27-104(2); 7 CFR 273.2(e).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 2, 1983; effective January 1, 1984. Amendment filed May 8, 1987; effective August 29, 1987.

Tenn. Comp. R. & Regs. 1240-01-15-.05 SINGLE INTERVIEW

When an HH/AG is applying for both Food Stamps and AFDC, a single intake or initial interview will be held to fulfill the requirements of both programs. More than one interview may be required in order to clarify information provided, resolve inconsistencies, view documents presented in support of the client's statements, etc. during the application or recertification/redetermination period. The additional interview(s) for these and similar purposes will not violate the "single interviews" requirements.

History

• Authority: TCA §14-8-106.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-15-.06 WAIVER OF OFFICE INTERVIEW

(1) Food Stamp. The office interview shall be waived upon request by any household which is unable to appoint an authorized representative and which has no household members able to come into the Food Stamp Office because they are 65 years of age or older, or are mentally or physically handicapped.

The office interview shall also be waived if requested by any household which is unable to appoint an authorized representative and lives in a location which is not served by a certification office. The county shall waive the office interview on a case by case basis for any household which is unable to appoint an authorized representative and which has no household members able to come to the Food Stamp office because of transportation difficulties or similar hardships which the county determines warrants a waiver of the office interview. These hardship conditions include, but are not limited to: illness, car of a household member, prolonged severe weather, or work hours which preclude in-office interview. The county shall determine if the transportation difficulty or hardship reported by a household warrants a waiver of the office interview and shall document in the case filed why a request for a waiver was granted or denied.

(a) Telephone Interview and Home Visits. The county may offer households for whom the office interview is waived the alternatives of either a telephone interview or home visit. Home visits shall be used only if the time of the visit is scheduled in advance with the household.

(b) Verification of Out-of-Office Interviews. Waiver of the face-to-face interview does not exempt the household from the verification requirements, although special procedures may also be used to permit the household to provide verification and thus obtain its benefits in a timely manner, such as substituting a collateral contact in cases where documentary verification would normally be provided. Waiver of the face-to-face interview shall not affect the length of the household's certification period.

(2) AFDC. It is preferred that the required face-to-face interview with the AFDC client be conducted in the county Department of Human Services office or in the client's home.

(a) Telephone Contacts. Telephone contacts are acceptable means of obtaining/transmitting information between redeterminations of eligibility, but are not acceptable as the only personal contact with a client prior to action on an AFDC application or at the time of redetermination of eligibility.

(b) Home Visits. It may sometimes be advisable in AFDC to contact the client in the home during the application/redetermination process, but there is no requirement that a home visit must routinely be made prior to case action. Home visits are to be made when the worker/supervisor believes one is necessary and when hardship circumstances require a home visit in order to fulfill the face-to-face interview requirement.

History

• Authority: TCA §§14-8-106 and 14-8-109.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-15-.07 GENERAL INTAKE INFORMATION

In addition to the eligibility requirements for the Food Stamp/ AFDC programs, certain other information must be given an applicant during the initial interview. This information is to be given orally and in writing when written information is requested and/or deemed appropriate.

(1) Food Stamps and AFDC.

(a) The client is to be informed that he/she is the first source of information concerning his eligibility, and that it is his/her responsibility to provide factual information which substantiates his/her statements about eligibility factors. He/She will be advised that if he/she is unable to secure the needed documentary evidence which may be required to establish his/her eligibility, and if the reason he/she is unable to secure this information is a valid one and he/she asks for assistance in gathering the necessary evidence, such help will be provided. He/She will also be advised that the Department must have substantiating information about certain factors of eligibility and will be making contacts with individuals and organizations in a position to know the facts of his/her circumstances in order to obtain this information. If there is some individual or organization he/she specifically does not wish the Department to contact, the name of such individual or organization must be entered on the release of information form. If it is found that this individual or organization is the only acceptable source for obtaining required information and he/she continues to refuse permission to contact, then his/her eligibility for assistance cannot be determined.

(b) That discrimination because of age, race, color, sex, handicap, religious creed, national origin, or political belief is unlawful.

(c) That information about his/her HH/AG is held in confidence with the agency.

(d) That the Federal Privacy Act can affect his/her HH/AG.

(e) That he/she has the right to appeal any agency action he/she believes to be discriminatory or unfair or when action on his/her request for assistance is not taken with reasonable promptness.

(f) That it is unlawful for anyone to charge, either directly or indirectly, for help to him/her in filing his/her application with the agency.

(g) That the agency has 30 days for Food Stamps and 45 days for AFDC in which to determine his/her eligibility and provide assistance with his/her help and cooperation (except when the HH/AG is entitled to expedited service for Food Stamps).

(h) That he/she has the responsibility to provide truthful information about his/her circumstances, substantiating information when requested, and if he/she is approved for assistance, to report any change in his/her circumstances within 10 days of the date the change becomes known to the HH/AG.

(i) That he/she is entitled to be referred to Social Services if he/she requests this and will be so referred if evidence of child neglect or abuse is observed.

(2) Food Stamp Only. If an HH is applying for Food Stamps, the above explanations are to be given. In addition the HH will be informed:

(a) That all unemployed HH members ages 18-59 who are not exempted, must register for and accept work and fulfill other work registration requirements.

(b) That Food Stamps may be used only to purchase eligible food items.

(c) That if his/her request is approved he/she will receive Food Coupons.

(d) That if he/she so requests his/her Food Stamps can be mailed to him/her (special provisions are made for Mail Issuance areas).

(3) AFDC Only. If an A/R is applying for AFDC only, explanations listed under (1) above are to be given. In addition, he/she will be informed:

(a) That he/she and each member of the AG must furnish or apply for Social Security Numbers.

(b) That he/she must assign child support rights to the Department of Human Services.

(c) That he/she may claim good cause for failure to cooperate with the Child Support Agency under specific circumstances.

(d) That any child support collected directly or through the Child Support Unit must be turned over to the Department of Human Services to reimburse the State for the AFDC payment.

(e) That all members of the AG ages 16 and over must register for WIN, unless exempt.

(f) That, if approved, he/she will receive a money payment assuming the grant is $10 or greater.

(g) That, if approved, he/she may use his/her grant as he/she sees fit in order to meet the needs of his/her family.

(h) That approval and payment can be made only after he/she is found to meet all eligibility requirements.

(i) The availability of SSI (when age or disability is a factor).

(j) That if he/she might be eligible for other benefits (except SSI) he/she must apply for and accept the benefit.

History

• Authority: TCA §§ 4-5-201 et seq., 4-5-202, 4-5-209, 14-8-106, 14-27-104, 71-1-105, 71-3-152, 71-3-153 and 71- 3-154; 71-3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq.; 42 U.S.C. § 608(a)(6)(A); 45 C.F.R. § 206.10; Deficit Reduction Act 2005 (Pub. L. 109-171 § 7301, February 8, 2006); and 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31, 7 CFR 273.2; 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Public Necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Tenn. Comp. R. & Regs. 1240-01-15-.08 FAILURE/REFUSAL TO COOPERATE IN ELIGIBILITY PROCESS - FOOD STAMPS/

AFDC.

(1) In order to determine eligibility, the information on the application must be complete and signed, the HH/AG must be interviewed, and information on the application and about family circumstances must be verified as required. The HH/AG will be informed that this agency cannot guarantee to complete the application within 30 days for Food Stamps and 45 days for AFDC unless he/she cooperates by supplying requested information promptly. The worker and client (guardian, agent, etc.) will come to an agreement as to what necessary information the client will supply and what information the worker will obtain.

(a) Refusal to Cooperate - FS/AFDC. If an HH/AG refuses to cooperate with the agency in the process of determining eligibility, either initial or continuing eligibility, the application will be denied or assistance discontinued at the time or refusal (whether or not 30/45 days have expired). It is important to differentiate between refusal and failure to cooperate. For a determination of refusal to be made, the HH/AG must be able to cooperate but clearly demonstrate that if he/she will not take actions that it can take and which are required to complete the application process. If there is any question as to whether HH/AG has merely failed to cooperate, as opposed to refused to cooperate, the request for assistance will not be denied or terminated, but the client will be given reasonable opportunity to cooperate. Once denied or terminated for refusal to cooperate, the HH/AG may reapply, but will not be determined eligible until full cooperation is given. This policy applies to applications and any subsequent review of eligibility, including regular redeterminations, recertifications, reviews generated by reported changes, and reviews by quality control staff.

(b) Refusal to Cooperate With Quality Control Reviewer - Food Stamps Only. If a household, which has been denied/terminated for refusal to cooperate with a state or federal quality control reviewer, reapplies within 95 days from the end of the annual review period for a state review, or seven months from the end of the annual review period for a federal review, the household must cooperate with the quality control reviewer and complete the review before it may be determined eligible. If such household reapplies after such 95 days or seven month period referenced above, it may be determined eligible without cooperating with the quality control reviewer, but must provide verification of all eligibility factors.

(2) Failure To Cooperate - AFDC Only.

(a) Active Cases. Failure by the recipient to provide information within his/her competence or keep a scheduled appointment for continuing eligibility purposes or to contact the Department requesting help in securing information or rescheduling an appointment will be considered a refusal to cooperate. A ten-day advance notice of closure will be initiated in these instances.

(b) Applications. Denial of AFDC application for failure to provide requested information prior to the expiration of the 45-day time limit is possible if loss of contact has been established and documented or if the applicant fails to respond to a second request for information or fails to appear for a second scheduled interview. The client's failure to respond to either is considered a refusal to cooperate and is denied on that basis. If the client contacts the Department and provides the information needed to determine eligibility by the 45th day after the date of application or appears for another scheduled interview and is eligible, assistance will be provided as soon as possible retroactive to the date of application or date of eligibility. The case will not be considered overdue for processing since the client failed to provide information or be interviewed within time frames established by the Department.

History

• Authority: TCA §§14-8-106(2) and 14-27-104; 7 CFR 273.2; 45 CFR 206.10(c)(2)(ii) and 206.10(c)(3)(i).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 2, 1983; effective January 1, 1984. Amendment filed September 4, 1984; effective October 4, 1984. Amendment filed July 23, 1987; effective October 28, 1987.

Chapter 1240-01-16 Verification Procedures

Tenn. Comp. R. & Regs. 1240-01-16-.01 INTRODUCTION TO VERIFICATION PROCEDURES

(1) Definition: Verification is the process of confirming or substantiating information provided by the applicant/recipient.

(2) For cases of ineligibility, the worker may render a decision based on the HH/AGs unverified statement.

(3) In order to render a decision of eligibility, the worker must be able to make a firm determination of eligibility based on verified points of eligibility.

(4) If a client fails to meet any one point of eligibility, he/she is not eligible for any benefits.

(5) Proper documentation and accurate verification are crucial in reducing the QC error rate. The agency must obtain adequate verification for all items that are mandated at application, reported changes, and at recertification, to assure that eligibility and level of benefits have been correctly determined. All pertinent factors pertaining to the case must be fully documented in the case file.

(a) The worker must substantiate statements made by the HH/AG on the application, regarding the nonfinancial eligibility factors, which must be verified prior to approval of a HH/AG for benefits. Verification must be obtained by documentary evidence, through collateral contacts, or by a home visit to the HH/AG.

(b) Verification required for determining AFDC eligibility shall not delay the household's Food Stamp benefits if the worker has sufficient verification within 30 days of the date of application for Food Stamp requirements, but does not have sufficient verification to meet the PA requirements.

History

• Authority: T.C.A. §§ 14-8-106; 14-8-109, and 14-27-104; 7 C.F.R. 273.2; and 45 C.F.R. 233.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 17, 1982; effective September 16, 1982.

Tenn. Comp. R. & Regs. 1240-01-16-.02 RESPONSIBILITIES FOR PROVIDING VERIFICATION

Securing adequate verification is a joint responsibility between the HH/AG and the worker. The HH/AG has the primary responsibility for providing documentary evidence to support its statement and to resolve any questionable information.

The HH/AG may supply documentary evidence in person, through the mail, or through an authorized representative. The worker must accept any reasonable documentary evidence and must primarily be concerned with how adequately the verification proves the statements on the application. If it would be impossible for the HH/AG to obtain documentary evidence in a timely manner or if the HH/AG has presented insufficient documentation, the eligibility worker must either offer to assist the HH/AG in obtaining the documentary evidence or shall use a collateral contact or home visit.

History

• Authority: T.C.A. §§ 14-8-106, 14-8-109, and 14-27-104; 7 C.F.R. 273.2; and 45 C.F.R. 233.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 17, 1982; effective September 16, 1982.

Tenn. Comp. R. & Regs. 1240-01-16-.03 VERIFICATION AT INITIAL APPLICATION

At application the worker must examine both financial and nonfinancial factors of eligibility for Food Stamps and AFDC. Information provided by the applicant/recipient on each factor must be examined and must be verified.

(1) Identity (a) For AFDC purposes, the identity of the person making application and all aid group members must be verified prior to approval.

(b) For Food Stamp purposes, the identity of the person making the application shall be verified. Where an authorized representative applies on behalf of a household, the identity of both the authorized representative and the head of the household shall be verified through documentary evidence, or if unavailable, a collateral contact.

(2) Residence. There is no durational requirement for either Food Stamps or AFDC.

(a) AFDC. The aid group must be living in the State.

(b) Food Stamps. Households must be living in the county in which they file application. In unusual cases, such as migrants and farm workers, homeless households, or households newly arrived in the county, if verification of residency cannot be readily accomplished, the worker may accept the household's statement that it resides in the county.

(3) Alien Status. In both the Food Stamp and AFDC programs, the worker must verify alien status if members of the HH/AG are identified on the application of aliens. If the proper INS documentation is not available, the worker must accept other forms of documentation or information from INS that the aliens are eligible aliens.

(4) Social Security Numbers. Social Security numbers reported to the agency by the HH/AU must be verified for each HH/AU member, in both the Food Stamp and AFDC programs.

(5) Household Size /Aid Group Composition. In Food Stamps, the number of persons in the household must be verified prior to approval. In AFDC, the worker must verify that persons for whom AFDC is requested live together and that the person requesting AFDC has responsibility for the aid group.

(6) Resources (7) Gross Non-Exempt Income (8) Medical Expenses - Food Stamps (9) Dependent Care Costs (10) Shelter Costs - Food Stamps (11) Loans (12) Other Mandatory Verification - AFDC Only (a) Relationship (b) Living with a Specific Relative (c) Deprivation of Parental Support/Care (d) Age (e) Marital Status (f) School Attendance (g) Striker Status (13) Questionable Information. For both AFDC and Food Stamps, the worker must verify factors other than those listed above if such factors are questionable and would affect the HH/AGs eligibility or level of benefits. Questionable information can be information on the application which is:

(a) Inconsistent with statements made by the applicant;

(b) Inconsistent with other information on the application or previous application;

(c) Inconsistent with information received by the worker.

(d) Questionable information is not limited to the above three criteria if in the prudent judgment of the worker and/or supervisor the information provided by the household appears to be unreasonable when considered in relation to the other household circumstances.

History

• Authority: T.C.A. §§ 14-8-106, 14-8-109, and 14-27-104; PL 99-198; 51 Federal Register 98 (May 21, 1986); 7 C.F.R. 273.2; 7 C.F.R. 273.6; and 34 C.F.R. 206.10, 232.10, and 233.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed March 28, 1983; effective April 27, 1983. Amendment filed May 17, 1983; effective June 16, 1983. Amendment filed September 29, 1986; effective December 29, 1986.

Tenn. Comp. R. & Regs. 1240-01-16-.04 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. § 14-8-106; PL 97-35; and 45 C.F.R. 233.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 28, 1981; effective October 13, 1981. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal filed August 17, 1982; effective September 16, 1982.

Tenn. Comp. R. & Regs. 1240-01-16-.05 VERIFICATION OF REPORTED CHANGES

In both Food Stamps and AFDC, recipients are required to report changes during their certification/approval period within 10 days of the date the change becomes known to the HH/AG. Changes reported by the client/discovered by the agency between redeterminations of eligibility are subject to the same verification procedures/requirements that apply at the initial determination of eligibility, except that previously verified gross income which has changed by $25 or less, or the source of which has not changed, need not be reverified. Such changes will be taken into account in determining eligibility and amount of benefits and any necessary change in allotment/grant eligibility will be authorized. If the change is a request to add an individual to the aid group, this individual will be treated as an applicant and all eligibility factors for this person will be verified as for any other new applicant.

History

• Authority: T.C.A. §§ 14-8-106, 14-8-109, and 14-27-104; 7 C.F.R. 273.2; and 45 C.F.R. 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 17, 1982; effective September 16, 1982.

Tenn. Comp. R. & Regs. 1240-01-16-.06 VERIFICATION AT RECERTIFICATION

In Food Stamps and AFDC, the worker must examine both financial and nonfinancial factors of eligibility. Information provided by the HH/AG must be verified. The verification requirements are not the same for both programs. The verification requirements for recertification/redetermination are described in this section.

(1) Food Stamps. For Food Stamp purposes, any information, changed or unchanged, may be verified at recertification if it is a factor in determining eligibility and/or the benefit level. The following items must be verified at recertification:

(a) Identity (b) Residency (c) Household Size (d) Alien Status (e) Social Security Number (f) Income (g) Liquid Resources (h) Dependent Care Expenses (i) Medical Expenses (j) Shelter Costs (k) Actual Utility Costs (1) Entitlement to the Utility Standard (m) Questionable Information (n) Loans (2) AFDC. An AFDC grant must continue unchanged until it is established that eligibility for a lesser or an increased amount exists, or until it is established that all or part of an aid group is no longer eligible for assistance. A redetermination of eligibility cannot be considered complete until the facts of the situation are obtained and recorded, and an authorization is entered into the system: continue a grant unchanged; continue an increased or decreased grant; or terminate assistance to be effective a particular month. For AFDC purposes, at redetermination, factors of eligibility subject to change must be verified as follows:

(a) Residence (b) Composition of AG (c) WIN (d) Deprivation of Support (e) Living with a Relative (f) Enumeration - SSNs (g) Pregnancy (h) Gross Income (i) Deductible Expenses 0) Resources (k) Transfer of Assets (1) Striker Status

History

• Authority: T.C.A. §§ 14-8-106, 14-8-109, and 14-27-104; 7 C.F.R. 273.2 (f)(8)(i)(c); and 45 C.F.R. 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 17, 1981; effective September 16, 1982. Amendment filed May 17, 1983; effective June 16, 1983.

Tenn. Comp. R. & Regs. 1240-01-16-.07 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. §§ 14-8-106, 14-8-109, and 14-27-104; PL 97-35; 7 C.F.R. 273.2; and 45 C.F.R. 233.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal filed August 17, 1982; effective September 16, 1982.

Tenn. Comp. R. & Regs. 1240-01-16-.08 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. §§ 14-8-106, 14-8-109, and 14-27-104; 7 C.F.R. 273.2; and 45 C.F.R. 233.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed August 17, 1982; effective September 16, 1982.

Tenn. Comp. R. & Regs. 1240-01-16-.09 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. §§ 14-8-106 and 14-8-109; PL 97-35; and 45 C.F.R. 233.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Repeal filed August 17, 1982; effective September 16, 1982.

Tenn. Comp. R. & Regs. 1240-01-16-.10 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. §§ 14-8-106, 14-8-109, and 14-27-104; 7 C.F.R. 273.2; and 45 C.F.R. 233.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed August 17, 1982; effective September 16, 1982.

Tenn. Comp. R. & Regs. 1240-01-16-.11 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. §§ 14-8-106, 14-8-109, and 14-27-104; 7 C.F.R. 273.2; and 45 C.F.R. 233.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed August 17, 1982; effective September 16, 1982.

Chapter 1240-01-17 Timeliness Standards

Tenn. Comp. R. & Regs. 1240-01-17-.01 RESERVED FOR FUTURE USE

History

• Authority: TCA §§14-8-106 and 14-8-110; 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-17-.02 GENERAL TIMELINESS STANDARD

The process of determining eligibility for Food Stamps and AFDC shall proceed as promptly as possible after an application is filed. The standard of promptness for determining eligibility for Food Stamps is 30 days and for completing applications for AFDC shall be no later than 45 days from the date the HH/AG or its representative files the application.

(1)Standard For Households With Zero Net Income And Destitute Households - Food Stamps Only.

Households with zero net income and households destitute of income shall be certified on an expedited basis as described in Section 1240-1-5.

(2)Standards For Households Applying For Food Stamps And Public Assistance. Households applying for both Food Stamps and AFDC shall be processed as promptly as possible and in accordance with the timeliness standards for Food Stamps set forth in this section. If the household is applying for AFDC and its intention to apply for Food Stamps is unclear, the worker shall determine at the interview, or in other contact with the household, whether or not the household wants the PA Application processed for Food Stamp purposes.

History

• Authority: TCA §§14-8-106 and 14-8-110; 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-17-.03 ACTION WHEN FOOD STAMP DETERMINATION PRECEDES AFDC DETERMINA-

TION. As a result of differences in Food Stamp and AFDC Application processing procedures, the worker may have to determine Food Stamp eligibility prior to determining eligibility for AFDC payments. Action on the Food Stamp portion of the application shall not be delayed nor the application denied on the grounds that the AFDC determination has not been made. If the worker can anticipate the amount and the date of receipt of AFDC payment but the payment will not be received until a subsequent month, the worker shall vary the household's Food Stamp benefit level according to the payment and notify the household. Portions of initial payments intended to retroactively cover a previous month shall be disregarded as a lump sum payment. If the amount or the month of receipt of the initial AFDC payment cannot be reasonably anticipated at the time of the Food Stamp eligibility determination, the payment shall be handled as a change in circumstances. The worker is required to send Notice of Disposition if the receipt of the AFDC grant reduces or terminates the household's Food Stamp benefits.

However, the household is not entitled to a 10 day advance Notice of Adverse Action because the household was notified in advance on the Application Form for Assistance that its benefits could be reduced or terminated when the grant was received. Households whose AFDC applications are denied shall not be required to file a new Food Stamp Application but shall have their Food Stamp eligibility determined or continued on the basis of the original application filed jointly for PA and Food Stamp purposes and any other documented information obtained subsequent to the application which may have been used in the AFDC determination and which is relevant to Food Stamp eligibility or level of benefits.

History

• Authority: TCA §§14-8-106 and 14-8-110; 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-17-.08 WHEN TO DENY AN APPLICATION AT THE END OF THE DAY WHEN APPLICANT

FAILS TO SHOW FOR TWO SCHEDULED INTERVIEWS - FOOD STAMPS/AFDC. If the household has failed to appear for two scheduled interviews and has made no subsequent contact with the county to express interest in pursuing the application, the household is denied and sent a Notice of Disposition denying the case on the 30th day following the date of application for Food Stamps and 45 days for AFDC. The household must file a new application if it wishes to participate in the program.

History

• Authority: TCA §14-8-106.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-17-.09 FAILURE TO MEET TIMELINESS STANDARD - FOOD STAMPS ONLY

There are instances in which the worker will not have sufficient information to approve or deny an HH/AG. In such cases, action must be taken by the worker to determine the cause of the delay. The following action must be taken if timeless standards are not met.

(1)Criteria For Denial And Initial Action - Food Stamps. If the worker cannot make an eligibility determination within 30 days and cannot deny the household, the cause of the delay is determined and certain actions are taken to determine whether the delay was caused by fault of the household or the county office. The term "fault" is used only to determine the household's entitlement to benefits for the month's delay.

(2)Determining Cause Of The Delay - Food Stamps. The worker must first determine the cause of the delay using the following criteria:

(a)Household Caused Delay - Food Stamps. The delay shall be considered the fault of the household if the household has failed to complete the application process when the worker has taken all the action he or she is required to take to assist the household. The worker must have taken the action in 1240-1-17-.09(3) below before a delay can be considered the fault of the household.

(b)County Caused Delay - Food Stamps. A delay shall be considered the fault of the county office if the worker failed to take the actions below in §1240-1-17-.09(3). Further, the fault is the county office's if the household met its obligation in a timely manner but the county office failed to complete the application process by the 30th day.

(3)Actions By The County Office. The worker must take the following actions and the household not take the counterpart action for a delay to be caused by the household.

(a)The worker must have offered or attempted to offer assistance in completion of the application for those households that have failed to complete the application form.

(b)The worker must have informed the household of the need to register for work, and given the household at least 10 days from the date of notification to register a household member for work, if one or more members of the household have failed to register for work.

(c)The worker must have provided assistance when it is necessary for the household to provide documentary evidence to support its income statement and questionable information and must have allowed the household sufficient time prior to the 30th day of the application to provide the missing verification. Sufficient time is at least 10 days from the date of the county office’s initial request for the particular verification that was missing.

(d)The county office must have attempted to reschedule the initial interview within 30 days of the date the application was filed for all households that have failed to appear for an interview.

However, if the household has failed to appear for the first interview and a subsequent interview is postponed at the household's request or cannot otherwise be rescheduled until after the 20th day but before the 30th day following the date the application was filed, the household must appear for the interview, bring verification, and register members for work by the 30th day. If the household has missed both scheduled interviews and requests another interview, any delay is then the fault of the household.

(e)If the county office fails to provide required assistance in completion of the application form, required assistance in obtaining documentary evidence to support its income, medical expenses or questionable information, fails to give the household sufficient time, or fails to timely schedule the required interviews, the fault is then the county's.

(f)When the delay was the fault of the county, the household's benefit level for the initial month of certification shall be based on the day of the month it filed its application for benefits.

(4)Delays Caused By The Household.

(a) Benefit Entitlement. The household loses its entitlement to benefits if by the 30th day following the date of application the worker cannot take further action on the application due to the fault of the household.

(b)Notifying the Household at End of 30 Days for Household-Caused Delays. The worker shall send the household Form HS-0751 (Notice of Disposition), denying the household on the 30th day following the day application was filed. The notice should include what verification is needed to complete the application process and that the household should report any changes in circumstances.

(c)Reopening the Case After a Notice of' Denial is Sent. If a Notice of Denial is sent and the household takes the required action within 60 days of the date the application was filed, the worker shall reopen the case without requiring a new application.

(d)Further Action by County After Notice of Denial is Sent. No further action by the worker is required after the Notice of Disposition denying the household is sent if the household fails to take required action within 60 days of the date the application was filed.

(e)Providing Benefits. The household is not entitled to benefits for the month of application when the delay was the fault of the household. However, if the household was at fault for the delay in the first 30-day period, but is found to be eligible during the second 30-day period, the worker shall provide benefits prorated from the day of the month that the eligibility determination is made.

(f)Delays Caused by the County in Initial 30 Days. Whenever a delay in the initial 30-day period is the fault of the county, the worker shall take immediate corrective action. A notice of pending status must be sent. A Notice of Denial cannot be sent for county caused delays.

(g)Pending Application. The worker shall not deny the application if the delay was caused by the county, but shall instead notify the household by the 30th day after the application was filed that its application is being held pending. The worker shall also notify the household of any action it must take to complete the application process.

(h)Action Taken During Second 30-Days. If the county caused the delay during the first 30 days and the household is found to be eligible during the second 30 day period, the household shall be entitled to benefits retroactive to the day it applied for benefits. If, however, the household is found to be ineligible, the worker shall deny the application.

(5)Delays Beyond 60 Days.

(a)County Caused Delay - All Information Received. If the county is at fault for not completing the application process by the end of the second thirty day period, and all the information necessary to complete the application has been received, the worker must continue to process the original application until an eligibility determination is made. If the household is determined eligible and the county was at fault for the delay in the initial 30 days, the household must receive its initial benefits retroactive to the day of the month it applied for benefits.

(b) County Caused Delay - Information Incomplete. If the county is at fault for not completing the application process by the end of the second 30 day period (60) days, but the case file is not complete enough to reach an eligibility determination, the worker should deny the case and notify the household to file a new application unless the original application can be processed immediately and the household notified of the action that will be taken.

(c)Case Denied at End of Sixty Days. If the county is at fault and the case is denied, the household shall also be advised of its possible entitlement to benefits lost as a result of county caused delays.

(d)County Caused Both Delays. If the county was also at fault for the delay in the initial (30) days, the amount of benefits lost would be calculated from the day of the month the application was filed.

(e)Household Caused Delay in Second Thirty Days. If the household is at fault for not completing the application process by the end of the second 30-day period, the worker shall deny the application and require the household to file a new application if it wishes to participate.

(f)Household/Aid Group Full Thirty Days. The worker cannot deny the HH/AG prior to the 30th day for failure to provide verification. The case file must be held open for the entire 30 days and the HH/AG given all that time to complete the application process.

History

• Authority: TCA §§14-8-106, 14-27-104; PL 97-35; 7 CFR 273.2, 273.10; 45 CFR 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 23, 1982.

Tenn. Comp. R. & Regs. 1240-01-17-.05 PROVIDING NOTICES TO HOUSEHOLDS AND AID GROUPS - NOTICES OF

ELIGIBILITY.

(1)Initial Application - Time Limit For Providing Notice Of Eligibility - Food Stamps/AFDC. The worker shall provide applicants with a written notice, Notice of Disposition, as soon as a determination is made, but no later than 30 days after the date of the initial application for Food Stamps and 45 days for AFDC.

(2)Contents Of Notice. Notice of Disposition must inform the HH/AG of the following information:

(a)The HH/AG must be informed of the amount of the benefits and of the variation in the benefit level based on changes anticipated at the time of approval. If the initial allotment/check contains benefits for both the month of application and the current month’s benefits, the notice shall explain that the initial benefits include more than one month's benefits. It shall also indicate the monthly allotment and/or check amount for the remainder of the eligibility period assigned.

(b)The HH/AG must be informed of the beginning and ending date of the Food Stamp certification period and/or the month and year in which the AFDC grant will begin.

(c)The HH/AG must be advised of its right to a fair hearing and of the name and telephone number of the person to contact for additional information. If there is an individual or organization available that provides free legal representation, the HH/AG shall also be advised of the availability of the service.

(d)The HH/AG who is a Food Stamp and Public Assistance recipient shall be informed that the certification period for Food Stamps will expire the month after the next review for AFDC eligibility or in one year, whichever comes first.

(e)The HH/AG must be advised of other information which would be useful, such as a reminder to report changes in circumstances and the need to reapply for continued participation at the end of the certification period for Food Stamps and that the continued eligibility for AFDC will be redetermined by a review every six months.

History

• Authority: TCA §§14-8-106, 14-8-111, 14-8-112, and 14-315; 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-17-.06 NOTICES FOR SPECIAL CASES

(1)Expedited Applications - Food Stamps. In cases where a household's application is approved on an expedited basis without verification and the application indicates the household is eligible in subsequent months, the Form HS-0751 (Notice of Disposition) shall explain that the household must complete the verification requirements that were postponed at the last expedited certification or have been certified under normal processing standards since the last expedited certification. If the eligibility worker has elected to assign a longer certification period to some households certified on an expedited basis, the notice shall also explain the special conditions of the longer certification period, and the consequences of failure to provide the postponed verification.

(2)Notice For Recertification - Food Stamps. The worker shall provide households that have filed an application by the 15th of the last month of their certification period with either a Notice of Eligibility or a Notice of Denial by the end of the current certification period. The worker shall provide households that have received a notice of denial not later than 30 days after the date the household had to obtain its last allotment.

(3)Providing Notice Of Denial To Ineligible HH/AGs - Food Stamps/AFDC. Each HH/AG denied eligibility shall be provided Notice of Disposition denying the case and explaining:

(a) The basis for the denial, including specific rule number used as the basis of denial for AFDC;

(b)The HH/AG's right to request a fair hearing;

(c)The telephone number of the Department of Human Services office;

(d)If possible, the name of the person to contact for additional information;

(e)If there is an individual or organization available that provides free legal representation the notice shall also advise the household of the availability of the service; and (f)The right to apply at any time.

History

• Authority: TCA §§14-8-106, 14-8-111, 14-8-112, and 14-315; 45 CFR 205.10; 206.10.
• Administrative History: Original rule filed August 15, 1990; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-17-.11 APPLYING FOR AFDC AND APPEARING POTENTIALLY ELIGIBLE FOR SSI - AFDC

(1)Parent or Other Relative Applying for AFDC and Appearing Potentially Eligible for SSI - AFDC.

When the parent or other relative who is making application for AFDC appears to be potentially eligible for SSI, the applicant will be asked whether application has been made for SSI. If application for SSI has not been made, a brief explanation of the program will be given and it will be suggested that application for SSI be made. Whether or not the aged, blind, or disabled person states that he has made or will make application for SSI, if the person wishes to be included in the AFDC aid group and is otherwise eligible as caretaker or second parent, he is included and all of his income and resources are taken into consideration. When notification of approval for SSI is received, the person will be removed from the AFDC aid group promptly. No advance notice is required since the person will be receiving assistance in another category.

(2)Parent or Other Relative Included in SSI Determination and Wishing to Apply as AFDC Needy Caretaker. When a parent or other relative applies for AFDC after the other parent or the spouse of the other relative has applied for or received SSI benefits, the county department will let him/her know that he/she can make application for the children and for himself/herself to be included as needy caretaker, but that he/she cannot be considered in AFDC as long as he/she is included in the SSI determination. The worker will assist him/her in understanding the advantages and disadvantages of each provision and in making a choice. If the parent or other relative wishes to relinquish SSI involvement and be included in the AFDC budget, the worker will, on receipt of the notice from the SSI office, make the necessary change in the AFDC budget and payment, including Medicaid, to include the parent or other relative as a needy caretaker.

History

• Authority: TCA §§14-8-106 and 14-27-104; 7 CFR 273.2, 273.10; 45 CFR 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-17-.07 TIME LIMIT FOR PROVIDING NOTICE OF DENIAL - FOOD STAMPS/AFDC

Households and Aid Groups that are found to be ineligible shall be sent a notice of denial as soon as possible but not later than 30 days following the date of application was filed for Food Stamps, or 45 days for AFDC.

Information obtained during the intake interview in some instances is sufficient for the intake worker to determine that the applicant is ineligible at intake and therefore can be denied at that point.

History

• Authority: TCA §§14-8-106 and 14-8-111; 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-17-.04 OPPORTUNITY TO PARTICIPATE

(1)Providing ATP Card And Issuance Facility - Food Stamps. An opportunity to participate in the Food Stamp Program consists of providing households with an ATP card and having an issuance facility open and available for the household to obtain its allotment. If the ATP card or coupons are mailed, an opportunity to participate has been provided if the ATP or coupons are mailed at least two (2) days prior to the expiration of the 30-day processing standard. If the ATP card is mailed on the 28th day, an issuance office must be open on the 30th day in order for the ATP card to be transacted after it is received. The worker must ensure that the ATP card is mailed at least two (2) days in advance of the 30th day and assure that the ATP card can be transacted after it is received, but before the 30 day standard expires.

(2)Providing AFDC Grant - AFDC. An opportunity to participate in the AFDC Program consists of providing eligible aid groups with an AFDC grant within 45 days after a completed application is filed. An opportunity to participate has been provided, if the AFDC check is mailed prior to or on the 45th day after the application is filed.

History

• Authority: TCA §§14-8-106 and 14-8-110; 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-17-.10 SSI RECIPIENT

(1)Reserved for Future Use.

(2)Definitions. For Food Stamp purposes, the following definitions will apply to SSI households:

(a)SSI means monthly cash payments made under the authority of Title XVI of the Social Security Act, as amended, to the aged, blind, and disabled.

(b)SSI recipient means an individual, or an individual and his/her eligible spouse, who receive(s)

SSI.

(c)Essential person means an individual who lives in the home of the recipient and his/her needs must have been considered in determining the grant of the eligible individual under the state PA plan in effect during December 1973. The essential person must not be eligible for SSI in his or her own right. In a cash-out state an essential person may be considered a household member.

(d)Cash-out State means a state designated by the Department of Health, Education and Welfare to have specifically included the bonus value of Food Stamps in its state supplemental payment. As of February 1, 1979, the cash-out States are California, Massachusetts, and Wisconsin.

(3)Eligibility Standards SSI Recipients - Food Stamps Only.

(a)General. SSI recipients, except those in cash-out states, may apply for and participate in the program and must meet all income and resource standards, as well as all nonfinancial eligibility criteria. The county office shall not require persons potentially eligible for SSI to make application for SSI benefits as a condition of Food Stamp eligibility.

(b)Reserved for Future Use.

(c)Reserved for Future Use.

History

• Authority: TCA §§14-8-106 and 14-27-104; 7 CFR 273.2, 273.10; 45 CFR 233.20.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Chapter 1240-01-18 Authorization of Grants and Allotments

Tenn. Comp. R. & Regs. 1240-01-18-.01 AUTHORIZATION OF GRANTS AND ALLOTMENTS - INTRODUCTION

(1) Food Stamps Only. Food Stamp allotments may be obtained either by issuance of an “Authorization to Participate” (ATP) HS-0758 card entitling the household to receive coupons of a specified value, or direct mail issuance.

(2) AFDC Only. An AFDC grant may be in the form of an assistance check issued directly to the recipient or other designated payee or a vendor payment issued to a provider of specified services on behalf of the recipient (as in situations involving Foster Home Care).

History

• Authority: T.C.A. §§ 14-3-102 and 14-8-103; PL 97-35; and 45 CFR 233.110, 234.11, 234.60.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-18-.02 RESPONSIBILITY FOR AUTHORIZATION

(1) The County Director has been designated as the agent of the Regional Director for purposes of making case decisions relating to eligibility, the extent of need, and the amount of the grant, if any. The County Director is authorized to delegate the authority for officially signing the authorizing document. The signature of the County Director or his/her designee is not required on documents authorizing benefit changes in the following circumstances:

(a) When the position of County Director is vacant or when the County Director is absent, the Regional Director or his/her designated agent will sign authorization documents.

(b) When the A/R is a close relative of some member of the county staff, all authorization or change of status forms relating to that A/R will be signed by the Regional Director.

(c) Should the state office, for some special reason, assume responsibility for a decision and for executing an authorization document, the signature of the Commissioner will remove the need for the signature of the County Director or his/her designee.

(2) The circumstances in which the State Office, rather than the County Office, will act to authorize, change, or discontinue an award are as follows:

(a) The state office reserves the right to review any decision made by a County Director or a Regional Director. This includes the right to make or have made any additional investigation which is indicated and the right to execute the authorization document if such action is indicated.

(b) When a decision results from a hearing in an appeal case, the authorization document itself will be executed by the State Office or in the County Office according to instructions of the Appeals Examiner.

(c) In some instances when changes in law or policy affecting classes of recipients occur, such changes may be implemented by listing or other devices.

History

• Authority: T.C.A. §§ 14-8-106 and 14-8-107; and PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982.

Tenn. Comp. R. & Regs. 1240-01-18-.05 DESIGNATION OF ALTERNATE PAYEE, PROTECTIVE PAYEE OR AUTHORIZED

REPRESENTATIVE. In AFDC aid groups, the person to whom a check is issued is usually the caretaker relative of the dependent children in the aid group. For Food Stamp households, it is usually the designated head of household. In some situations it will be necessary to name another person to receive and expend the benefits on behalf of the HH/AG.

(1) Legally Appointed Guardian as The Payee - AFDC Only.

(a) Adults.

1. Eligibility.

(i) If a person has a duly appointed guardian, the guardian must be named payee for the grant. The guardian will be expected to give information regarding his/her ward's circumstances as they relate to eligibility for AFDC and to assume responsibility for reporting changes in his/her ward's circumstances and to serve as payee for the grant.

2. Reserved for Future Use.

(b) Children. In AFDC, the guardian of a child may receive AFDC for the child only if the guardian is within the specified degree of relationship and when the child is in his/her home. When a relative, with whom a child lives, has a legally appointed guardian, the guardian must file the application for his/her ward and be named payee for the grant. In such instances, the child must live with the relative, but it is not necessary that he/she be in the home of the relative's guardian.

(2) Designation Of Alternate Payee In AFDC. An alternate payee can be designated only in emergency situations and may be continued only for the length of time necessary to explore available resources and make arrangements for the continuing care of the AFDC child.

(a) Ordinarily this period should not exceed three months.

(b) The alternate payee is expected to act for the grantee relative in relation to the child.

He/She is expected to see to it that the child has shelter, food, clothing, and adequate supervision during the emergency period.

(c) The alternate payee may be related or unrelated to the child. He/She may be living in the same home with the child or apart from the child if he/she is carrying out his/her responsibilities of acting for the grantee-payee/relative.

(d) The alternate payee must be someone who can fulfill this requirement, such as a relative, concerned neighbor, or friend. No employee of the Department and no institution may be designated alternate payee.

(e) Reserved for Future Use.

(f) Authorization and Changes in Payment.

1. Authorization for payments to alternate payees can be made only on active cases.

2. The use of an alternate payee in AFDC in emergency situations is intended to continue in effect a payment which was being made at the time the emergency arose. Any necessary changes in grant amount are to be made as quickly as possible. It is not permissible to divide a grant into two or more payments to several alternate payees.

3. No adjustment or change will be authorized in respect to the grant for the month in which the emergency arose except to authorize that it be paid to the alternate payee in the event the emergency arose before the grantee relative had received and/or endorsed the check.

(3) Designation Of Protective Payee - AFDC Only.

(a) There are two instances when a Protective Payee may be named for the AFDC grant.

These instances are:

1. When the worker is notified that a caretaker relative has refused to participate in WIN without good cause.

2. When a caretaker relative has not assigned support rights to the State or has failed to cooperate in establishing paternity/securing support without good cause.

3. Reserved.

4. Reserved.

5. Reserved.

(b) through (d) Reserved.

(4) Criteria For Selection of Protective Payee. The selection of protective payees is made by the recipient or with his/her participation and consent to the extent possible. The person selected as protective payee may be a relative (other than the applicant's/recipient's spouse), a friend, a neighbor, an employee of the Department of Human Services (other than the County Director, special investigative staff, or staff having responsibility for the determination of eligibility for AFDC) or an employee of another agency providing service to the family. The person must be one who has or can develop an interest in the client, is of good character, who has the time, energy, and ability to provide this service.

(5) Reserved.

(6) Time Limits In The Use Of Protective Payments - AFDC Only. In WIN cases and cases in which the relative has not assigned support rights or has failed to cooperate without good cause and it is necessary to name a protective payee, the arrangements may continue indefinitely. The grant will continue to be paid to a protective payee until the caretaker relative complies with WIN program requirements or assigns support rights/cooperates and there is at least one eligible AFDC child or until the caretaker relative becomes exempt from the registration requirement.

(7) Reserved.

(8) Authorized Representative - Food Stamps Only.

(a) An authorized representative must be:

1. Designated in writing by the head of the household or the spouse or another responsible member of the household; and 2. An adult who is sufficiently aware of relevant household circumstances. In the event the only adult member of a household is classified as a non-household member, that person may be designated as the authorized representative for the minor household members;

2. The head of the household, spouse or any other responsible member of the household may designate an authorized representative to act on behalf of the household in one or all of the following capacities:

(b) Making Application for the Program. When the head of the household or the spouse cannot make application, another household member may apply or an adult nonhousehold member may be designated as the authorized representative for that

purpose. Form HS-0169 (Application for Assistance) should be signed by the head of the household designating this authorized representative. The head of the household or the spouse should prepare or review the application whenever possible, even though another household member or the authorized representative will actually be interviewed. The worker shall inform the household that the household will be held liable for any overissuance which results from erroneous information given by the authorized representative, except when the authorized representative is in a drug and alcoholic center.

(c) Obtaining the Coupons. An authorized representative may be designated to obtain coupons. These designations shall be made at the time the application is completed and an authorized representative shall be named on the ID card. The authorized representative for coupon issuance may be the same individual designated to make application and obtain coupons. The household should be encouraged to name an authorized representative for obtaining coupons in case of illness or other circumstances which might result in an inability to obtain coupons. The household may also designate an emergency authorized representative at a later date. An emergency authorized representative is someone who obtains coupons when neither a household member nor the authorized representative is able to obtain them because of unforeseen circumstances. An emergency authorized representative shall be designated in writing on the ATP card each time an emergency authorized representative is used.

(d) Using the Coupons. The authorized representative may use coupons to purchase food for the household's consumption, with the full knowledge and consent of the household, provided the authorized representative has the household's ID card.

(e) Drug Addict/Alcoholic Treatment Centers as Authorized Representatives. Narcotics addicts or alcoholics who regularly participate in a drug or alcoholic treatment program on a resident basis may voluntarily elect to participate in the Food Stamp Program if the treatment center in which they reside has been authorized by the appropriate state agency as a bona fide treatment center. The residents shall apply and be certified for program participation through the use of an authorized representative, who shall be an employee of and designated by the private nonprofit organization or institution. Since the organization or institution is applying on behalf of each addict or alcoholic, they shall receive and spend the coupon allotment for food prepared by or for the addict or alcoholic. The organization or institution shall also be responsible for complying with the requirements set forth in Section 1240-1-31.

(f) Reserved for Future Use.

(g) Restrictions on Authorized Representatives.

1. County Office employees who are involved in the certification and/or issuance processes and retailers that are authorized to accept food coupons may not act as authorized representatives without the specific written approval of the Regional Supervisor or his/her designee, and only if that official determines that no one else is available to serve as an authorized representative.

2. Individuals disqualified for fraud shall not act as authorized representatives during the period of disqualification, unless the individual disqualified is the only adult member of the household able to act on its behalf and the worker has determined that no one else is available to serve as an authorized representative. The worker shall separately determine whether these individuals are needed to apply on behalf of the household to obtain coupons and to use the coupons for food for the household.

History

• Authority: T.C.A. §§ 14-27-104, 14-8-106, and 14-8-111; 7 CFR 273.1; and 45 CFR 233.90, 234.60, and 235.70.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed April 30, 1985; effective July 14, 1985.

Tenn. Comp. R. & Regs. 1240-01-18-.06 AUTHORIZATION OF RETROACTIVE ASSISTANCE - AFDC ONLY

(1) Retroactive Initial Payments to Approved Applicants.

(a) Currently Eligible Applicants. When it is established that an applicant is eligible for assistance in the month the decision is being made, then the worker considers whether the applicant would have been eligible for the month during which he/she applied and for any months between application and approval. If the applicant is currently eligible and would have been eligible during the month he/she applied and subsequent month(s) prior to approval, a single retroactive payment can be made to begin with the date of application and to cover each month from application to the month of approval.

If the applicant is currently eligible but would not have been eligible during the month he/she applied, then the retroactive payment can be authorized to begin with the first day of the month in which eligibility was attained.

(b) Currently Ineligible Applicants. If an applicant is not currently eligible because of a change in his/her circumstances which occurred after application and prior to the current month, a retroactive payment may be made for the period from the application date to the month the decision of ineligibility is made. However, if the application and the change in circumstances which caused ineligibility occurred during the same month, payment for that month cannot be made, unless the change was the death of the applicant and he/she would have been eligible for the month had he/she lived.

(2) Retroactive Assistance Payments to Recipients Are To Be Authorized:

(a) To correct an agency error which caused a recipient to be deprived of at least $1.00 per month in assistance.

(b) To compensate for the time lag between the date of application and the month of initial payment. A single retroactive payment is to be authorized to cover the amount of assistance the applicant should have received from the date of application to the effective month of approval.

(c) To compensate for the agency's erroneous exclusion from an aid group of an eligible individual for whom assistance was requested.

(3) Reserved.

History

• Authority: T.C.A. §§ 14-27-104, 14-8-106, and 14-8-111; 7 CFR 273.1; and 45 CFR 233.90, 234.60, and 235.70.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 2, 1983; effective January 1, 1984.

Tenn. Comp. R. & Regs. 1240-01-18-.03 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 235.70.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-18-.04 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 235.70.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Chapter 1240-01-19 Continuing Responsibilities

Tenn. Comp. R. & Regs. 1240-01-19-.01 RECERTIFICATION - FOOD STAMPS ONLY

The Worker shall complete the application process and approve or deny timely applications for recertification prior to the end of the household’s current certification period. The county office shall provide eligible households with an opportunity to participate by the household’s normal issuance cycle in the month following receipt of a timely application. The Eligibility Worker shall not continue benefits to households beyond the end of the certification period unless the household has been recertified. The joint processing requirement for PA households shall continue to apply to applications for recertification.

(1) Notice of Expiration of Certification. The Eligibility Worker shall provide each household with Form HS-0258 (Notice Concerning Your Application or Redetermination) just prior to or at the start of the last month of the household’s certification period with the exception of PA households whose applications were jointly processed for Food Stamp and PA benefits.

(a) Receipt of Notice by the Household. Households that must receive Form HS-0258 (Notice Concerning Your Application or Redetermination) must receive it during the month immediately prior to the household’s last month of certification. If the household is certified for one month or if the household was certified for 2 months and the application was approved the month following the month of application, the Form HS- 0458 (Notice Concerning Your Application or Redetermination) shall be provided at the time of certification. The county office shall include with the Notice Concerning Your Application or Redetermination an application form and an appointment for an interview. Regardless of when the interview date is assigned, the household has timely applied if the application is received by the 15th day of the last month of certification.

(b) Content of the Notice. The Notice of expiration shall contain:

1. The date the current certification period ends;

2. The date by which the household must file an application to receive uninterrupted benefits;

3. The household’s right to request an application and have the county office accept an application (as long as it is signed and contains a legible name and address);

4. The address of the office where the application must be filed;

5. The consequences of the household’s failure to comply with the Notice Concerning Your Application or Redetermination;

6. The household’s right to file the application by mail or through an authorized representative; and 7. The household’s right to a fair hearing if the county office refuses to accept as good cause the household’s reason for failure to comply with Form HS-0258 (Notice Concerning Your Application or Redetermination).

(c) Submission of Application for Recertification. Households provided Form HS-0258 (Notice Concerning Your Application or Redetermination) at the time of certification as discussed in 1240-01-19-.01(1)(a) shall have 15 days from the date the notice is received to file a timely application for recertification. If such filing deadline is after the end of the certification period, the household’s benefits will not be prorated if it reapplied timely. All other households which submit identifiable applications by the 15th day of the last month of the certification period shall be considered to have made timely application for recertification. To aid the county office in determining if adequate time has been permitted, the county office shall use the postmark on the Notice Concerning Your Application or Redetermination, plus two days for mailing time. In cases of dispute the household may demonstrate that the Form HS-0258 (Notice Concerning Your Application or Redetermination) was not, in fact, received in a timely manner.

(2) Notification of Recertification. The Worker shall act on timely reapplications to provide uninterrupted benefits to households determined eligible. The Worker shall take action on timely reapplications within the time standards specified in (a) and (b) below, and provide the household an opportunity to participate by the household’s normal issuance in the month following receipt of the timely reapplication, even if the opportunity is outside of the normal issuance system.

(a) Thirty Days After Last Allotment Purchase. Households that were provided Form HS- 0258 (Notice Concerning Your Application or Redetermination) at the time of certification and have timely reapplied shall be notified of their eligibility or ineligibility and provided an opportunity to participate, if eligible, not later than 30 days after the date the household had an opportunity to obtain its last allotment.

(b) End of Current Certification Period. For those households that have filed an application by the 15th of the last month of their certification period, and who have appeared for the scheduled interview after filing the application, and who have timely provided all necessary verification, the Worker shall approve or deny the application and notify the household of its determination by the end of the current certification period. In addition, for households determined eligible, the county office shall provide an opportunity to participate by the household’s normal issuance cycle in the month following receipt of the timely reapplication, even if the county office must provide an opportunity to participate outside of the normal issuance system. Households which have timely reapplied, but due to an agency error are not determined eligible in sufficient time to provide for issuance in the household’s normal issuance cycle for the following month, shall receive an ATP card and an opportunity to participate upon being determined eligible, even if the county office must provide an opportunity to participate outside the normal issuance system.

(3) County Office Failure to Act on Applications for Recertification. County offices’ failure to provide eligible households which filed a timely application for recertification with an opportunity to participate in accordance with the above provisions shall be considered an administrative error. These households shall be entitled to restoration of lost benefits if, as a result of such error, the household was unable to participate for the month following the expiration of the certification period.

(4) Household Failure to Submit a Timely Reapplication. A household which fails without good cause to submit a timely application for recertification, to appear for an interview scheduled after the household timely filed its application for recertification, or to provide necessary verification timely subsequent to filing the application, loses its right to uninterrupted benefits.

Households which refuse to cooperate in providing information shall be denied. Any application not submitted in a timely manner shall be treated as an application for initial certification, except that for applications received within 30 days after the certification period expires, previously verified income, medical expenses, or actual utility expenses need not be verified if the source has not changed and the amount has changed by $25 or less.

(a) Good Cause for Failure to Timely Reapply. If the Worker determines that the household’s failure to make timely application or to otherwise complete the certification process in a timely manner was for good cause, the household shall be entitled to restoration of lost benefits, if, as a result of its failure, the household was unable to participate in the month following the expiration of its certification period. The determination of good cause shall be made on a case-by-case basis and shall include, but not be limited to, failure to receive timely notice of expiration of personal illness.

History

• Authority: T.C.A. §§ 14-1-105, 14-8-115, and 14-27-104; Federal Register, Volume 51, Number 60 (March 28, 1986); and 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 5, 1986; effective November 29, 1986.

Tenn. Comp. R. & Regs. 1240-01-19-.02 REDETERMINATION OF ELIGIBILITY - AFDC ONLY

A redetermination of eligibility for every AFDC case is required at least once in each six months period. In other words, at least every sixth monthly payment must be supported by a complete redetermination of eligibility.

(1) through (7) Reserved for Future Use.

History

• Authority: T. C.A. § 14-8-115 and 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-19-.03 SPECIAL ACTIONS - AFDC ONLY

For some cases more frequent contacts than each 6 months will be necessary in order to insure continued eligibility for recipients for AFDC. (A complete redetermination of eligibility may or may not be required.).

History

• Authority: T. C.A. § 14-8-115 and 45 CFR 206.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-19-.04 CHANGES DURING THE CERTIFICATION PERIOD - FOOD STAMPS OR BETWEEN

REVIEWS - AFDC. When changes occur during the certification period which affect a household/assistance unit’s eligibility or level of benefits, the following actions are taken to adjust the benefits. Household/assistance unit, and county office responsibilities are as follows:

(1) Household/Assistance Unit Responsibilities. Certified household/assistance units which are not monthly reporting must report the following within 10 days of the date the change becomes known to the household/assistance unit:

(a) Food Stamp Households - Changes in sources of income or in the amount of gross monthly income of more than $25.00 of all household members, except changes in an AFDC grant;

(b) AFDC Assistance Units - All changes in the source of income or in the amount of income;

(c) Changes in residence and the resulting changes in shelter costs and, for AFDC purposes, other concurrent changes in circumstances;

(d) The acquisition of a licensed vehicle not fully excludable under 1240-01-04-.10;

(e) Food Stamps Only - When cash on hand, stocks, bonds, and money in the bank account or savings institution reach or exceed a total of $1,500.00;

(f) AFDC Only - When cash on hand, stocks, bonds and money in the bank account or savings institution reach or exceed the allowable personal property reserve. See rule

Tenn. Comp. R. & Regs. 1240-01-19-.05 MASS CHANGES - FOOD STAMPS ONLY

Certain changes are initiated by the Department or Federal Government which may affect the entire caseload or significant portions of the caseload. These changes include annual adjustments to the net income eligibility standards and the shelter/dependent care deduction; semi-annual adjustment to the Thrifty Food Plan and standard deductions; annual and seasonal adjustments to AFDC and other changes in the eligibility criteria based on legislative or regulatory actions.

(1) Federal Food Stamp Program Changes. These include federal adjustments to eligibility standards, allotments, and deductions. These adjustments shall go into effect for all households at a specific point in time. Semi-annual adjustments to the Thrifty Food Plan and the standard deduction shall be effective for all issuances in January and July. Annual adjustments to the shelter/dependent care deduction and the eligibility standards shall be effective for all July issuances.

(2) Food Stamp Program Changes.

(a) State annual adjustments and seasonal variations to the utility standard shall be effective for all issuances in the month specified by the state office. Although a Notice of Disposition (Form HS-0751) is not required, prior publicity of adjustments shall be made from the state office:

1. Through the news media;

2. By printing posters for certification offices, issuance locations or other sites frequented by certified households; or 3. Notices will be included with all ATP cards and PA checks.

(b) Households whose certification periods overlap a seasonal variation in the utility standard shall be advised at the time of initial certification when the adjustment will occur and what the variation in the benefit level will be, if known.

(3) Mass Changes Resulting from Implementation of the Food Stamp Act Of 1977. The worker shall send an individual Notice of Disposition (Form HS-0751) to each household that receives a reduction or termination in benefits during its certification period due to these regulations. The Notice of Disposition shall explain to the household that the change is the result of changes in federal law and that although the household has the right to request a fair hearing, benefits will be continued pending the fair hearing only if the household believes its eligibility or benefit level was computed incorrectly under the new law, or that the new law is being misapplied or misinterpreted.

(4) Mass Changes in Federal Benefits. Households shall not be responsible for reporting changes in their federal benefits such as Social Security and SS1 payments. County offices shall treat cost-of-living increases and other mass changes in federal benefits, such as Social Security and SSI payments, as a mass change in accordance with procedures provided by the state office. If not handled as a mass change, individual Advance Notice of Disposition shall be required as described in 1240-01-19-.07.

(5) Mass Changes in Public Assistance - Food Stamp Only. When the Department makes an overall adjustment to AFDC payments, corresponding adjustments in the household’s Food Stamp benefit shall be handled as a mass change. When the county office has at least 30 days advance knowledge of the amount of the AFDC adjustment, the county office shall recompute Food Stamp benefits to be effective in the same month as the AFDC change. If the county office does not have sufficient notice, the Food Stamp change shall be effective not later than the month following the month in which the AFDC change was made. Form HS- 0751 (Notice of Disposition) is not required when a household’s Food Stamp benefits are reduced or terminated as a result of a mass change in the AFDC grant. However, a statement will be included with all ATP cards and AFDC checks giving individual notices to households to inform them of a change. If a household requests a fair hearing, benefits shall be continued at the former level only if the issue being appealed is that Food Stamp eligibility or benefits were improperly computed and not the fact that benefits are reduced because of the mass change.

History

• Authority: T.C.A. §§ 14-8-106 and 14-8-111 and 45 CFR 205.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-19-.06 CHANGES AFFECTING AFDC HOUSEHOLDS

Except for changes in AFDC grant, such households have the same reporting requirement as any other assistance group.

(1) Households shall be notified through use of Form HS-0751 (Notice of Disposition) whenever their benefits are altered as a result of changes in AFDC benefits or whenever the Food Stamp certification period is shortened to reflect changes in the household’s circumstances. If the certification period is shortened, the household’s certification shall not end any earlier than the month following the month in which the worker determines that the certification period should be shortened, allowing adequate time for the worker to send Form HS-0258 (Notice Concerning Your Application or Redetermination), and for the household to timely reapply as provided in this Section. If the AFDC benefits are terminated but the household is still eligible for Food Stamp benefits, members of the household shall be advised of Food Stamp work registration requirements, if applicable, as their WIN registration exemption no longer applies.

(2) Whenever a change results in the reduction or termination of the household’s AFDC benefit within its Food Stamp certification period, and the worker has sufficient information to determine how the change affects the household’s Food Stamp eligibility and benefit level, the worker shall take the following actions:

(a) If a change in household circumstances requires both a reduction or termination in the PA payment and a reduction or termination in Food Stamp benefits, the worker shall issue Form HS-0751 (Notice of Disposition) for AFDC and Food Stamps. If the household requests a fair hearing within the period provided by the Notice of Disposition, the household’s Food Stamp benefits shall be continued on the basis authorized immediately prior to sending the notice. If the fair hearing is requested for both programs’ benefits, the hearing shall be conducted according to procedures in § 1240-01-30. However, the household must reapply for Food Stamp benefits if the Food Stamp certification period expires before the fair hearing process is completed. If the household does not appeal, the change shall be made effective in accordance with the procedures specified in § 1240-01-19-.06(3).

(b) If the household’s Food Stamp benefits will be increased as a result of the reduction or termination of AFDC benefits, the worker shall issue Form HS-0751 (Notice of Disposition) but shall not take any action to increase the household’s Food Stamp benefits until the household decides whether it will appeal the AFDC adverse action notice. If the household decides to appeal the AFDC action and its AFDC benefits are continued, the household’s Food Stamp benefits shall continue at the previous basis. If the household does not appeal, the worker shall make the Food Stamp changes effective in accordance with the procedures specified in § 1240-01-10-.07(6) except that the time limits for the worker to act on changes which increase a household’s Food Stamp benefits shall be calculated from the date the AFDC advance notice period expires.

(3) Whenever a change results in the termination of a household’s AFDC benefits within its Food Stamp certification period, and the worker does not have sufficient information to determine how the AFDC change affects the household’s Food Stamp eligibility and benefit level (such as when an absent parent returns to a household, rendering the household categorically ineligible for AFDC, and the worker does not have any information on the income of the new household member), the worker shall not terminate the household’s Food Stamp benefits but shall instead take the following action:

(a) If Form HS-0751 (Notice of Disposition) has been sent, the worker shall wait until the household’s AFDC notice of adverse action period expires or until the household requests a fair hearing, whichever comes first. If the household requests a fair hearing on the AFDC action and its AFDC benefits are continued pending appeal, the household’s Food Stamp benefits shall be continued at the same basis.

(b) If Form HS-0751 (Notice of Disposition) is not required, or the household decides not to request a fair hearing and continuation of its AFDC benefits, the worker shall send the household Form HS-0258 (Notice Concerning Your Application or Redetermination) which informs the household that its certification period will expire at the end of the month following the month the notice of expiration, Form HS-0258 (Notice Concerning Your Application or Redetermination), is sent, and that it must reapply if it wishes to continue to participate. The Notice of Expiration shall also explain to the household that its certification period is expiring because of changes in its circumstances which may affect its Food Stamp eligibility and benefit level.

History

• Authority: T.C.A. §§ 14-8-106 and 14-8-111 and 45 CFR 205.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-19-.07 NOTICE OF ADVERSE ACTION - FOOD STAMPS/AFDC

Prior to any action to reduce or terminate a HH/AG’s benefits within a certification period (FS) or at any time in AFDC, the worker shall, except as provided in 1240-01-19-.07(7) and (8), provide the household advance notice before such action is taken. In AFDC, 10 days advance notice is required before the action is taken. In Food Stamps, notice may be given as late as the date the household would normally receive its allotment if the household reports the information which results in the reduction or termination in writing. Such a written report must be signed by a household member. This is true only when the worker can determine the household’s allotment or ineligibility solely on the basis of the household’s written report. If the FS household is not sufficient for the worker to determine the allotment or ineligibility, 10 days advance notice must be given before action is taken to reduce or terminate the allotment.

(1) An adverse action is defined as:

(a) A reduction in coupon allotment or grant;

(b) The termination of the HH/AG’s program benefits:

1. Within the certification period (Food Stamps);

2. At any time (AFDC).

(c) The reduction in length of a certification period (Food Stamp);

(d) Removal of a person from the aid group (AFDC).

(2) Food Stamp Only. In the case of changes reported during the last month of a certification period which will result in a reduction of program benefits beginning with a new certification period, a Notice of Disposition (Form HS-0751) will not be required.

(3) Food Stamp Only. When a current certification period expires at the end of the assigned time period, eligibility ceases. These situations are not terminations, therefore, provisions concerning adverse action do not apply, nor is the household eligible for continuation of benefits, as described in paragraph (4) below.

(4) If the adverse notice period ends on a weekend or holiday, and a request for a fair hearing and continuation of benefits is received the next working day after the weekend or holiday, the county office shall consider the request timely received. If the household requests a hearing, the worker must explain that continuation of benefits is strictly at the HH/AGs option and should the HH/AG elect to have its benefits continued, demand will be made for the value of any Food Stamp coupons overissued or any AFDC overpayments prior to or during the period such benefits are continued, if the hearing official’s decision is adverse to the HH/AG.

(5) Form HS-0751, Notice of Disposition (Adverse Action) will be completed in the original and one copy with the original given to or mailed to the HH/AG and the duplicate filed in the case record.

(a) Food Stamps Only. The Notice Disposition (Notice of Adverse Action) is not to be used as a “call-in ” device to obtain required verification or information as a result of a household’s change in circumstances. In cases where a change is reported or the worker becomes aware of a change in the household’s circumstances which may result in the decrease or termination of that household’s Food Stamp benefits, but further verification is required, such as noted in § 1240-01-16-.07, then the worker shall send the household Form HS/1056, Request for Verification, within the required timeliness standards for changes. The Notice of Disposition (Notice of Adverse Action) should only be used after the household has been provided with the Request for Verification (Form HS-1056) and has been given 10 days to respond. If the household does not respond to the request within the 10 day period, the worker shall then provide the household with a Notice of Disposition, advising it that action is being taken to terminate its benefits. Once the household has been provided with the Notice of Disposition (Notice of Adverse Action), the notice cannot be “voided” if a household provides the requested information, with only one exception. (The notice may be voided when a household member whose household is being terminated for failure to register for employment submits a work registration form during the advance notice period. This household would not have to file a new application.)

(b) Reserved for future use.

(6) Timing of Notice. The Notice of Disposition shall be considered timely if the advance notice period includes at least 10 days from the date the notice is mailed to the date upon which the action takes effect. Also, if the adverse notice period ends on a weekend or holiday, and a request for a fair hearing or continuation of benefits is received the day after the weekend or holiday, the county office shall consider the request timely received.

(7) Changes Not Requiring Advance Notice - Food Stamp Only. Form HS-0751 (Notice of Disposition) is not required when:

(a) Mass Change. The Department initiates a mass change.

(b) Notice of Death or Moved from County. The county office receives notification that all members of a household have died or that the household has moved from the county.

(c) Completion of Restoration of Lost Benefits. The household has been receiving an increased allotment to restore lost benefits, the restoration is complete, and the household was previously notified in writing of when the increased allotment would terminate.

(d) Anticipated Changes in the Monthly Allotment. The household’s allotment varies from month to month within their certification period to take into account changes which were anticipated at the time of certification.

(e) Disqualification of Fraud. A household member is disqualified for fraud in accordance with § 1240-01-20 or the benefits of the remaining household members are reduced or terminated to reflect the disqualification of that household member.

(f) Benefit Reduction Upon Approval of the Household’s AFDC Grant Application. The household jointly applied for AFDC and Food Stamp benefits and had been receiving Food Stamp benefits pending the approval of the AFDC grant and was notified by the worker at the time of certification that Food Stamp benefits would be reduced upon approval of the AFDC grant.

(g) Households Certified on Expedited Basis Contingent on Verification. The worker has elected to assign a longer certification period to a household certified on an expedited

basis and for whom verification was postponed, provided the household has received Form HS-0751 (Notice of Disposition) stating that the receipt of benefits beyond the month of application is contingent on its providing the verification which was initially postponed and that the worker may act on the verified information without further notice.

(h) Converting a household from cash repayment to benefit reduction as a result of failure to make cash repayment as discussed in § 1240-01-20-.08(b).

(i) Residents of Drug or Alcoholic Treatment Centers or Group Living Arrangements. The state office terminates the eligibility of a resident of a drug or alcoholic treatment center or a group living arrangement when the facility either loses its certification through the Department of Mental Health or has its status as an authorized representative suspended due to FNS disqualifying it as a retailer. However, if residents of a group living arrangement have applied for Food Stamps on their own behalf, they are still eligible to participate and a Notice of Adverse Action would not be appropriate.

(j) Household voluntarily requests that the case be terminated. Such a request must be in writing or made in the presence of the eligibility counselor. A notice must be sent to the household to confirm the request.

(k) It is determined that the household will not be living in the county and will be unable to obtain its next allotment.

(8) Changes Not Requiring Advance Notice of Adverse Action - AFDC Only. Ten (10) days advance notice of adverse action is not required when:

(a) The agency has factual information confirming the death of the recipient or of an AFDC payee when there is no relative available to serve as a new payee and no person can be named alternate payee.

(b) The agency receives a clear written statement signed and dated by the recipient that he/she no longer wishes assistance.

(c) The recipient has been admitted or committed to an institution where he/she is not eligible to receive assistance.

(d) The recipient has entered a skilled nursing home or intermediate care facility and vendor payments will be authorized through Medicaid.

(e) The money payment to the recipient is to be discontinued and protective or vendor payments are to be authorized.

(f) The recipient’s whereabouts are unknown and agency mail directed to him/her has been returned by the Post Office indicating no forwarding address. The recipient’s checks to which he/she is entitled will, however, be made available to him/her if his/her whereabouts become known during the payment period.

(g) The recipient has moved out-of-state or has been accepted for assistance in another state.

(h) An AFDC child is removed from the home as the result of a judicial determination or is voluntarily placed in foster care by his/her parents or legal guardian.

(i) The Department has received notification that a member of the AFDC aid group has been approved for SSI.

(j) Assistance is to be discontinued as the result of an appeal decision which upholds the county office and an authorization document cannot be submitted by the “cutoff” date.

(9) Effect of Changes or Appeals During Advance Notice Period - AFDC Only. If during the 10 day advance notice period a recipient presents information about a change in his/her circumstances or additional factual information which alters the decision to reduce or terminate a grant or if a recipient appeals the decision, action to be taken as follows:

(a) Appeals - If a recipient appeals during the advance notice period, action in relation to the grant will be delayed until after the appeal decision;

(b) Changes in Circumstances or Additional Information - If a recipient reports a change in circumstances or presents additional evidence during the advance notice period which changes the decision, the authorization form is pulled from Central Control files; and 1. If there should be no change in grant, the case will be returned to the files. A revised Notice of Disposition shall be sent to the Recipient advising him/her of the change in the decision.

2. If the grant should be increased, the increase is to be authorized. A revised Notice of Disposition shall be sent to the A/R advising him/her of the change in the decision.

3. If the original decision to reduce or terminate the grant is unchanged, authorization for the action is submitted after the advance notice period had expired.

History

• Authority: T.C.A. §§ 14-1-105, 14-8-106, 14-8-111, and 14-27-104; Federal Register, Volume 51, Number 60 (March 28, 1986); 7 CFR 273.13(a)(3); 47 CFR 205.10; and PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed May 17, 1983; effective June 16, 1983. Amendment filed August 5, 1986; effective November 29, 1986.

Tenn. Comp. R. & Regs. 1240-01-19-.08 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. § 14-8-116.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-19-.09 COUNTY TO COUNTY TRANSFERS - AFDC ONLY

(1) Transfer of Recipient from County to County - AFDC Only. The Public Assistance laws provide that AFDC recipients may move from county to county within the state and still be entitled to receive assistance in the county to which they have moved, provided they continue to be eligible. There is the further legal stipulation that the county from which the recipient has moved shall transfer all necessary records relating to the recipient to the county to which he has moved.

(2) Reserved For Future Use.

History

• Authority: T.C.A. § 14-8-116.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-19-.10 COUNTY TO COUNTY TRANSFERS - FOOD STAMPS ONLY

(1) Transferring a Case from One County to Another County Within the State. A Food Stamp household may move from county to county within the state and still be entitled to receive benefits in the county to which it has moved, provided the household continues to meet the eligibility criteria. The transfer process involves divided responsibilities between the county from which the household moved and the county to which the household transfers. Therefore, each county involved must take prompt action in meeting its responsibilities.

(2) Reserved For Future Use.

(3) Reserved For Future Use.

History

• Authority: T.C.A. § 14-8-116.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-19-.11 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. § 14-8-116.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-19-.12 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-19-.13 REPEALED

History

• Authority: T.C.A. §§ 14-8-106, 14-27-104; 7 CFR 273.19.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed November 9, 1982; effective December 9, 1982.

Tenn. Comp. R. & Regs. 1240-01-19-.14 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-19-.15 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-19-.16 ACCRUAL RIGHTS TO A CHECK - AFDC ONLY

(1) Once an AFDC applicant has been found eligible for assistance and an award has been duly authorized, he/she has a right to the initial payment provided he/she was alive on the date on which his application is filed, except as noted in paragraph (3) below.

(a) The right to the initial public assistance payment and payments retroactive to date of application accrues on the date the authorization for payment is signed by the County Director, provided payment is authorized for the same calendar month.

(b) If the initial payment is for the calendar month following that in which payment is authorized, the right to payment accrues on the first day of the calendar month for which payment is to be made.

(2) The right to a continuing public assistance payment accrues on the first day of a calendar month for which payment is to be made, provided the recipient is alive and eligible for payment on that day, except as noted in paragraph (3) below.

(3) However, no applicant/recipient is eligible for an assistance payment made for any month in which:

(a) The A/R (or legally responsible relative in the home) was on strike as of the last day of the month; or (b) The A/R received income in excess of Department standards which causes ineligibility for more than one month.

History

• Authority: T.C.A. §§ 14-8-106(2) and 14-8-110; PL 97-35; 45 CFR 233.20(a)(3)(D); and 45 CFR 233.106.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 2, 1983; effective January 1, 1984.

Tenn. Comp. R. & Regs. 1240-01-19-.17 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, 14-8-111, and 71-1-105.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-19-.18 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, 14-8-111, and 71-1-105 and 45 CFR 205.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-19-.19 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-27-104, and 71-1-105; and 7 CFR 273.11, 273.12, 273.13, 273.14, and 273.19.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-19-.20 REPLACEMENT OF LOST/STOLEN ATP CARDS - FOOD STAMPS ONLY

(1) General. This section covers the replacement of ATP cards lost or stolen in the mail prior to receipt, undeliverable ATPs, and ATPs stolen or destroyed after receipt.

(2) Replacement of ATP Stolen or Lost in the Mail Prior to Receipt.

(a) The Eligibility Worker shall authorize a replacement ATP for ATPs stolen or lost in the mail prior to receipt only:

1. If the ATP is reported stolen or lost in the mail in the period of its intended use; and 2. If the household requesting the replacement has not already been issued two replacements in the previous 5 months.

Note: A replacement of a replacement is considered as two replacements. If a household receives a replacement of a replacement ATP, the household is not entitled to another replacement for the next 5 months.

(b) Period of Intended Use.

1. If the ATP was issued on or before the 20th of the month, the period of intended use is the month during which it was issued.

2. If the ATP was issued after the 20th of the month, the period of intended use is 20 days from their issuance date.

(c) Reserved for future use.

(d) Deny or Delay Replacements When Fraud Is Indicated.

1. The Eligibility Worker shall deny or delay replacement of the ATP in cases in which documentation indicates that the request for replacement is fraudulent.

This would include but is not limited to the following:

(i) The household’s original ATP has already been transacted and the signature on the original ATP matches the signature on the replacement request.

(ii) The household was not issued an ATP for the time in question.

2. The household shall be informed of its right to a fair hearing to contest the denial or delay of the ATP. The denial or delay of the replacement ATP shall remain in effect pending the hearing decision.

(3) Lost or Misplaced ATP Cards. The Eligibility Worker shall not authorize a replacement ATP card to a household which reports that its ATP card was lost or misplaced after being received.

(4) Stolen/Destroyed ATP Cards. A household may request a replacement for an ATP card which it had received but which was subsequently destroyed in a household disaster such as fire or flood or stolen.

(a) Household’s Responsibilities.

1. To qualify for a replacement, the household must report the theft/destruction of the ATP card to the local Food Stamp office within 10 days of the incident or within the period of intended use, whichever is earlier.

2. The household must also sign a Non-Receipt Affidavit/Replacement Authorization:

(i) Attesting to the theft/destruction of the household’s ATP card;

(ii) Stating that the original ATP will be returned to the state agency if recovered by the household; and (iii) Stating that the household is aware of the penalties for intentional misrepresentation of the facts.

(b) Period of Intended Use.

1. For ATPs issued on or before the 20th of the month, the period of intended use is the month of issuance.

2. For ATPs issued after the 20th of the month, the period of intended use is 20 days from their issuance date.

(c) County Office’s Responsibilities.

1. Eligibility Worker’s Responsibility.

(i) Reserved for future use.

(ii) Reserved for future use.

(iii) Examine the case record for notation of previous requests by the household for replacement of an ATP reported stolen or destroyed subsequent to receipt.

(I) Replacement of an ATP reported as stolen subsequent to receipt shall be made only once in a 6 month period. If in the previous 5 months the household has been issued a replacement for an ATP reported as stolen subsequent to receipt, then a request for a replacement of a stolen ATP shall be denied.

(II) Replacement of an ATP or coupons reported as destroyed subsequent to receipt shall be made only once in a 6 month period. If in the previous 5 months the household has been issued a replacement for either coupons or an ATP reported as destroyed subsequent to receipt, then replacement shall be denied.

(iv) Issue a replacement ATP card, if warranted, within 10 calendar days of receipt of the request for replacement.

(d) In cases in which an ATP replacement is requested, but documentation exists substantiating that the request for replacement is fraudulent, replacement of the ATP shall be denied or delayed. However, in that event the household shall be informed of its right to a fair hearing to contest the denial or delay of the replacement ATP. The denial or delay shall remain in effect pending the hearing decision. To deny or delay a replacement the Eligibility Worker must have documentation substantiating fraud, such as a match between the signature on the original ATP that had been transacted and the signature on the replacement request.

(e) FNS Disasters. Where FNS has issued a disaster declaration and the household is eligible for emergency Food Stamp benefits, the household shall not receive both the disaster allotments and a replacement allotment.

History

• Authority: T.C.A. § 14-27-104 and 7 CFR 273.11, 273.12, 273.13, 273.14, and 273.19.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed March 1, 1982; effective April 15, 1982.

Tenn. Comp. R. & Regs. 1240-01-19-.21 REPLACEMENT ALLOTMENTS - FOOD STAMPS ONLY

(1) Coupons Lost in the Mail Prior to Receipt.

(a) The Eligibility Worker shall authorize replacement coupons only:

1. If the coupons are reported stolen from the mail or lost in the mail in the period of intended use; and 2. If the non-receipt is reported in the period of their intended use; and 3. If the household requesting the replacement has not already been issued two replacements in the previous 5 months.

(b) Period of Intended Use.

1. If the coupons are issued on or before the 25th of the month, the period of intended use is the month of issuance.

2. If the coupons are issued after the 25th of the month, the period of intended use is 20 days from their issuance date.

(c) County Office Responsibilities. When a household reports the nondelivery of an allotment of coupons issued through the mail the Eligibility Worker shall:

1. Reserved for future use.

2. Reserved for future use.

3. Provide the replacement no more than 10 days after the report of nondelivery has been received.

(2) Lost, Stolen, or Misplaced Coupons. The Eligibility Worker shall not authorize a replacement allotment to a household which reports that its coupons were lost, stolen, or misplaced after being received.

(3) Destroyed Coupons. A household may request a replacement for that portion of its allotment which it had received but which was subsequently destroyed in a household disaster such as fire or flood.

(a) Household’s Responsibilities.

1. To qualify for replacement, the household must report the destruction of the coupons to the local Food Stamp office within 10 days of the incident or within the period of intended use, whichever is earlier.

2. The household must also sign a Form HS-0461 (Non-Receipt Affidavit/Replacement Authorization):

(i) Attesting to the destruction of the household’s Food Stamps;

(ii) Stating that the original coupons will be returned to the state agency if recovered by the household; and (iii) Stating that the household is aware of the penalties for intentional misrepresentation of the facts.

(b) Period of Intended Use.

1. If the coupons are issued on or before the 25th of the month, the period of intended use is the month of issuance.

2. If the coupons are issued after the 25th of the month, the period of intended use is 20 days from their issuance date.

(c) County Office’s Responsibilities.

1. Reserved for future use.

2. Replacement of coupons.

(i) Replacement of an ATP or coupons reported as destroyed subsequent to receipt shall be made only once in a 6 month period.

(ii) If in the previous 5 months the household has been issued a replacement for either coupons or an ATP reported as destroyed subsequent to receipt, then replacement shall be denied.

3. Issue replacement coupons, if warranted, within 10 calendar days of receipt of the request for replacement.

4. Indicate in the case record that a replacement has been provided.

(d) FNS Disasters. Where FNS has issued a disaster declaration and the household is eligible for emergency Food Stamp benefits, the household shall not receive both the disaster allotment and a replacement allotment under 1240-01-19-.20 (4) above.

(4) Replacement of Food Destroyed in a Disaster/Partial Allotments. In cases in which food purchased with Food Stamps is destroyed in a disaster affecting a participating household, that household may be eligible for replacement of the actual value of loss, as follows:

(a) The value replaced shall not exceed one month’s Food Stamp allotment.

(b) The loss must be reported within 10 calendar days of the incident.

(c) Verification of the disaster. The Eligibility Worker shall verify the disaster through:

1. A collateral contact;

2. A community organization such as the Fire Department or the Red Cross; or 3. A home visit.

(d) If the household meets the above criteria, the household shall be provided a replacement allotment within 10 calendar days of the reported loss.

(e) Replacement of food destroyed in a disaster shall be made, subject to the above criteria, in cases of an individual household disaster such as fire, as well as in natural disasters affecting more than one household.

(f) FNS disasters. In cases where FNS has issued a disaster declaration and the household is otherwise eligible for emergency Food Stamp benefits, the household shall not receive both the disaster allotment and a replacement allotment under this provision.

(5) Partial Allotments.

History

• Authority: T.C.A. §§ 14-27-104 and 7 CFR 273.11, 273.12, 273.13, 273.14, and 273.19.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 10, 1981; effective January 25, 1982. Amendment filed March 1, 1982; effective April 15, 1982.

Tenn. Comp. R. & Regs. 1240-01-19-.22 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-27-104, and 71-1-105; and 7 CFR 273.11, 273.12, 273.13, 273.14, and 273.19.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-19-.23 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-27-104, and 71-1-105; and 7 CFR 273.11, 273.12, 273.13, 273.14, and 273.19.
• Administrative History: Original rule filed August 14, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-04-.07 ;

(g) Food Stamps Only - When household’s monthly medical expenses change by more than $25;

(h) Food Stamps Only - Work Registration - change in work registration status of any household member.

(2) Food Stamps Only. An applying household must report all changes related to its Food Stamp eligibility and benefits at the certification interview. Changes as provided in (1) above which occur after the interview but before the date of the Notice of Disposition must be reported by the household within 10 days of the date of the notice.

(3) How Changes Are Reported - Food Stamps/AFDC. The change may be reported by telephone, in person, or by mail using Form HS-0746 (Change Report Form). The 10 day period shall begin with the date the changes become known to the household/aid group. The change will be considered as reported by the household on the date the report of change is received by the county or, if mailed, the date the envelope is postmarked.

(4) Failure to Report. If the county office discovers that the household failed to report a change, as required by rule 1240-01-19-.04, and as a result received benefits to which it was not entitled, the county office shall complete Form HS-0287 (Claim Determination and Restoration of Lost Benefits). If the discovery is made within the certification period, the household is entitled to Form HS-0751 (Notice of Disposition) if the household’s benefits are reduced. Failure to report a change shall not automatically be construed to be suspected fraud. Individuals shall not be disqualified for failure to report a change, unless the individual is disqualified in accordance with the fraud disqualification procedure. If a household should lose benefits because of a failure to make a timely report, as required by rule 1240-01-19- .04(2), the household is not entitled to restoration of lost benefits.

(5) County Office Responsibilities - Food Stamps/AFDC. The county office shall not impose any reporting requirements on households except as noted above. Neither shall the county office treat the submission of the changes as a waiver of the household’s right to a Notice of Adverse Action, unless an AFDC recipient has indicated in writing the he/she understands the report will reduce or terminate assistance (AFDC Only).

(6) Providing the Change Form - Food Stamps/AFDC. A change report (Form HS-0746) and a “postage paid” envelope shall be provided to newly certified households at the time of certification and at recertification, if the household needs a new form. A new form shall be sent to the household whenever a Change Report Form is returned by the household. A Change Report may be provided to households more often if necessary. Although households should be encouraged to complete and return the change form when a change is being reported, changes reported over the telephone or in person by the household shall be acted on in the same manner as those reported on the Change Report Form and mailed or otherwise delivered to the worker.

(7) Food Stamps Only. A household cannot receive an increase in Food Stamp benefits due to a decrease in income resulting from intentional noncompliance with any requirements of a federal, state, or local welfare program which is means-tested and distributes public funded benefits.

(8) Changes Which Increase Benefits and Require Issuance of a Supplementary Allotment - Food Stamps Only. For changes which result in an increase in a household’s benefits due to the addition of a new household member who is not a member of another certified household, or due to a decrease of $50 or more in the household’s gross monthly income, the worker shall make the change effective not later than the first allotment issued 10 days after the date the change was reported. However, in no event shall these changes take effect any later than the month following the month in which the change is reported. Therefore, if the change is reported after the 26th of the month and it is too late for the worker to adjust the following month’s allotment, the worker shall issue a supplementary ATP or otherwise provide an opportunity for the household to obtain the increase in benefits by the 10th day of the following month, or the household’s normal issuance cycle in that month, whichever is later.

(9) Changes Which Increase Benefits and Do Not Require Issuance of a Supplementary Allotment - Food Stamps Only. For changes which result in an increase in a household’s benefits and do not require the issuance of a supplementary ATP, the worker shall make the changes effective no later than the first allotment issued 10 days after the date the change was reported to the county office.

(10) Changes Which Reduce Benefits - Food Stamps Only. If the household reports a change, or the worker becomes aware of a change in the household’s circumstances, which could ultimately result in the decrease or termination of that household’s Food Stamp benefits, the worker must first verify the change that has been reported or otherwise made known to the worker before any decrease or termination of benefits can be enforced, unless it is evident or apparent to the worker that the change will result in a definite reduction or termination of the household’s benefits (for example, a household member moving out of the household), or a request for termination of benefits due to a household member going to work. The HH should be given 10 days to provide the verification and should be advised that failure to respond to this request could result in a termination of their benefits. The worker shall not, at any time, require the household to come in for an interview. If the HH fails to respond to the Request for Verification within the 10 day period, the worker will then mail the HH Form HS-0751 Notice of Disposition (Notice of Adverse Action). This will provide the household with timely and adequate notice that action is being taken to terminate benefits, in accordance with rule

Chapter 1240-01-20 Overpayments and Claims

Tenn. Comp. R. & Regs. 1240-01-20-.01 CLAIMS AGAINST HOUSEHOLDS

(1)Establishing Claims Against Households. The Department shall establish a claim against any household that has received more food stamp benefits than it is entitled to receive, except as provided in (2) of this section. Claims shall be classified as follows:

(a)Inadvertent Household Error Claims. A claim shall be handled as an inadvertent household error claim if the overissuance was caused by a misunderstanding or unintended error on the part of the household. Instances of inadvertent household error which may result in a claim include, but are not limited to, the following: 1.The household unintentionally failed to provide the state agency with correct or complete information; or 2.The household unintentionally failed to report to the state agency changes in its household circumstances and the recipient or responsible person states that he/she did not understand his/her responsibility to provide full information or to report changes in circumstances or he/she did not understand the eligibility requirements and the record does not show that all of these considerations were explained; or 3.The household received benefits or more benefits than it was entitled to receive pending a fair hearing decision, because the household requested a continuation of benefits based on the mistaken belief that it was entitled to such benefits.

(b)Administrative Error Claims. A claim shall be handled as an administrative error claim if the overissuance was caused by the Department. Instances of administrative error which may result in a claim include, but are not limited to the following: 1.A county office failed to take prompt action on a change reported by the household. 2.A county office incorrectly computed the household's income or deductions or otherwise assigned an incorrect allotment. 3.A county office incorrectly issued duplicate ATPs to a household which were subsequently transacted. 4.The county office continued to provide a household food stamp allotments after its certification period had expired without benefit of a recertification. 5.The county office failed to provide a household a reduced level of food stamp benefits because its public assistance grant changed.

(c)Intentional Program Violation. A claim shall be handled as an intentional program violation claim only if: 1.An administrative disqualification hearing official or a court of appropriate jurisdiction has determined that a household member committed intentional program violation as defined in Section 1240-1-20-.02; or 2.The household member is disqualified as a result of signing a waiver of his/her administrative disqualification hearing; or 3.The household member signed a disqualification consent agreement in cases of pre-trial diversion, (2)Instances When Claims Shall Not Be Established. A claim shall not be established against any household if an overissuance occurred as a result of the following:

(a)Procedural Errors. The county office failed to ensure that a household fulfilled the following procedural requirements: 1.Signed the application form; or 2.Completed a current work registration form; or 3.Was certified in the correct project area.

(b)Expired ATP. A household transacted an expired ATP card, unless the household altered its ATP card.

(3)Calculate The Amount Of Claims. The amount of an overissuance claim shall be equal to the difference between the allotment the household received and the allotment the household should have received for each month of overissuance. Once the amount of a claim is established, the county shall offset the claim against any amount of lost benefits that have not yet been restored to the household.

(a)Inadvertent household and administrative error claims shall be calculated based on the amount of overissuance which occurred during the 12 months preceding the date the overissuance was discovered.

(b)Intentional program violation claims shall be calculated back to the month the act of intentional program violation occurred, but no more than six years prior to discovery, providing case record and issuance information are available. No claim shall be calculated for any month prior to March 1, 1979.

(c)In cases involving reported (or non-reported) changes, the county shall determine the month the overissuance initially occurred as follows: 1.If the household inadvertently or intentionally failed to report a change in its circumstances within the required time frame, the first month of overissuance shall be the first month in which the change would have been effective had it been timely reported. 2.If the household timely reported a change, but the county did not act on the change within the required time frame, the first month affected by the county's failure to act shall be the first month the county would have made the change effective had it timely acted. 3.In no event shall the county determine as the first month in which the change would have been effective any month later than two months from the month in which the change in household circumstances occurred.

(d)When a household has failed to report earned income in a timely manner, no earned income deduction, as described in 1240-1-4-.17(8)(a)6.(i), shall be allowed in determining the amount of overissuance that has occurred.

History

• Authority: TCA §§14-27-106, 14-27-113; 7 CFR 273.18.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1985; effective July 28, 1985. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-20-.02 INTENTIONAL PROGRAM VIOLATIONS

For the purpose of determining through administrative disqualification hearings whether or not a person has committed an intentional program violation, intentional program violations shall consist of having intentionally made a false or misleading statement; misrepresented, concealed, or withheld facts; traded food stamp coupons for guns, ammunition, explosives, or controlled substances; or committed any act that constitutes a violation of the Food Stamp Act, the Food Stamp Program regulations, or any state statute relating to the use, presentation, transfer, acquisition, receipt or possession of Food Stamp coupons.

(1)Administrative Responsibility. The Department shall be responsible for investigating any case of alleged intentional program violation and ensuring that appropriate cases are acted upon either through administrative disqualification hearings or referral to a court of appropriate jurisdiction. Individuals accused of intentional program violation may waive their rights to administrative disqualification hearings (as outlined in rule 1240-1-20-.06) or sign disqualification consent agreements for cases of pre-trial diversion. The requirements and procedures relating to administrative disqualification hearings, waiver of the hearing, and referrals for prosecution are outlined in Chapter 1240-5-.14 “Intentional Program Violations”.

(2)Disqualification Penalties.

(a)Individuals Who Commit Intentional Program Violations. If an administrative disqualification hearing official or a court of appropriate jurisdiction determines that a household member has committed an intentional program violation as defined in the introduction to this section, or if the household member signs a waiver of right to an administrative disqualification hearing or an administrative consent agreement, that individual shall be disqualified from participation in the Food Stamp Program as follows: 1.One year for the first violation. 2.Two years for the second violation, or for the first occasion of a finding by a federal, state, or local court of the trading of coupons for a controlled substance as defined in 8 USC 802. 3.Permanently for the third violation. 4.Permanently if convicted of trafficking in food stamp benefits of $500 or more, or for the second occasion of a finding by a federal, state or local court of the trading of coupons for a controlled substance as defined in 8 USC 802, or for the first occasion, based on a finding by a federal, state or Local court of the trading of firearms, ammunition or explosives for coupons. 5.Ten (10) years if found to have made a fraudulent statement or representation with respect to identity or residence in order to receive multiple benefits simultaneously. 6.The length of time specified by a court of appropriate jurisdiction. If the court fails to impose a disqualification period, the state agency shall impose the disqualification penalties in parts 1. through 5. above, unless the penalties are contrary to the court order.

(b)One or more intentional program violations which occurred prior to April 1983 shall be considered as only one previous violation when determining the appropriate penalty to impose.

(c)The disqualification shall apply only to the individual who is found to have committed the intentional program violation, or who signed a waiver to the administrative disqualification hearing, or who signed a disqualification consent agreement. It does not apply to the entire household.

(d)Remaining Household Members. Once a household member is disqualified for an intentional program violation, the Department shall impose allotment reduction as the means of restitution.

(e)Notification to Applicant Households. The Department shall inform the household in writing of the disqualification penalties for intentional program violation each time it applies for program benefits.

(f)Imposition of Disqualification Penalties. 1.The disqualification penalties outlined in paragraph (2)(a) of this section shall apply only to individuals disqualified for acts of intentional program violation which occurred either during a certification period based on an application form containing these penalties or after receipt of written notification from the Department of these penalties. If the act of intentional program violation which led to the disqualification occurred prior to written notification of these disqualification penalties, the household member shall be disqualified in accordance with the disqualification periods in effect at the time of the rendering of such determination. However, no disqualification penalty may be imposed which is contrary to court order. 2.Appropriate disqualification penalties [as outlined in paragraph (2)(a) of this section] shall be imposed (unless contrary to court order) on household members in the following instances:

(i)An administrative disqualification hearing official rules that the household member has committed an intentional program violation. The disqualification period shall begin with the first month which follows the date the household member receives written notification of the hearing decision as cited in Section 1240-5-14-.04.

(ii)The household member suspected of intentional program violation signs the waiver of right to an administrative disqualification hearing, and the signed waiver is received within the time frame specified by the Department. The disqualification period shall begin with the first month which follows the date the household receives written notification of the disqualification as cited in Section 1240-5-14- .05.

(iii)A court of appropriate jurisdiction finds the household member guilty of intentional program violation. In such cases, the Department shall disqualify the individual for the length of time specified by the court. If the court fails to impose a disqualification period, the Department shall impose a disqualification period in accordance with paragraph (2)(a) of this section. If the court does not specify a date for initiating the disqualification period, the Department shall initiate the disqualification period as soon as is administratively feasible.

(iv)The household member suspected of intentional program violation signs a consent agreement in cases of pre-trial diversion. The period of disqualification shall begin as soon as it is administratively feasible after the date the household member signed the disqualification consent agreement. 3.Once a disqualification penalty has been imposed against an individual, the period of disqualification shall continue uninterrupted until completed regardless of eligibility of the disqualified member's household. The disqualified member's household shall continue to be responsible for repayment of the overissuance which resulted from the disqualified member's intentional program violation, regardless of its eligibility for benefits.

History

• Authority: TCA §§4-5-202; 71-1-105(12); 71-5-313 and 71-5-314; 7 CFR 273.16; and PL 104-193.
• Administrative History: Original rule filed August 15, 1980; effective September 24, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983. Amendment filed April 4, 1997; effective June 18, 1997. Amendment filed July 28, 2000; effective October 11, 2000.

Tenn. Comp. R. & Regs. 1240-01-20-.03 ADMINISTRATIVE DISQUALIFICATION HEARING

The Department shall conduct administrative disqualification hearings for individuals accused of intentional program violation in accordance with the requirements and procedures outlined in Section 1240-5-14-.04.

History

• Authority: TCA §§14-27-113, 14-27-114; 7 CFR 273.16(e).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983.

Tenn. Comp. R. & Regs. 1240-01-20-.04 WAIVED ADMINISTRATIVE DISQUALIFICATION HEARING

An individual is allowed to waive his/her right to an administrative disqualification hearing in accordance with the requirements and procedures outlined in Section 1240-5-14-.05.

History

• Authority: TCA §§14-27-113, 14-27-114; 7 CFR 273.16(f).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983.

Tenn. Comp. R. & Regs. 1240-01-20-.05 COURT REFERRALS

The Department shall refer appropriate cases of alleged intentional program violation for prosecution by a court of appropriate jurisdiction in accordance with the procedures and requirements outlined in Section 1240-5-14-.06.

History

• Authority: TCA §14-27-114; 7 CFR 273.16(g).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1985; effective July 28, 1983.

Tenn. Comp. R. & Regs. 1240-01-20-.06 PRE-TRIAL DIVERSION

Individuals referred for prosecution for intentional program violation may be allowed to sign disqualification consent agreements in cases of pre-trial diversion. The procedures are outlined in this section.

(1)Advance Notification. The accused household member shall be provided with advance written notification of the consequences of consenting to disqualification in cases of pre-trial diversion. The written notification shall include at a minimum:

(a)A statement for the accused individual to sign that he/she understands the consequences of consenting to disqualification, along with a statement that the head of household must also sign the consent agreement if the accused individual is not the head of household.

(b)A statement that consenting to disqualification will result in disqualification and a reduction in benefits for the period of disqualification, even though the accused individual was not found guilty of civil or criminal misrepresentation or fraud.

(c)A warning that the disqualification penalties for intentional program violation under the Food Stamp Program which could be imposed are: a six month disqualification for the first violation, 12-month disqualification for the second violation, and permanent disqualification for the third violation; and a statement of which penalty will be imposed as a result of the accused individual having consented to disqualification.

(d)A statement of the fact that the remaining household members, if any, will be held responsible for repayment of the resulting claim, unless the accused individual has already repaid the claim as a result of meeting the terms of the agreement with the prosecutor or the court order.

(2)Imposition Of Disqualification Penalties. If the household member suspected of intentional program violation signs the disqualification consent agreement, the household member shall be disqualified in accordance with Section 1240-1-20-.02.

(3)Notification Of Disqualification. If the household member suspected of intentional program violation signs the disqualification consent agreement, the Department shall provide written notice to the household as follows:

(a)The household member who is being disqualified shall be informed of the disqualification and the date the disqualification will take effect.

(b)The remaining household members, if any, shall be notified of the allotment they will receive during the period of disqualification or that they must reapply because the certification has expired. In addition, the Department shall provide a written demand letter for restitution as described in Section 1240-1-20-.07.

History

• Authority: TCA §§14-27-115, 14-27-114; 7 CFR 273.16(h).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 18, 1983.

Tenn. Comp. R. & Regs. 1240-01-20-.07 COLLECTING CLAIMS AGAINST HOUSEHOLDS

(1)Criteria For Initiating Collection Action.

(a)Inadvertent Household and Administrative Error Claims. The Department shall initiate collection action against the household on all inadvertent household or administrative error claims unless the claim is collected through offset or one of the following conditions applies: 1.The total amount of the claim is less than $35, and the claim cannot be recovered through allotment reduction. (Collection action will be initiated at such time that multiple claims of under $35 total $35 or more.) 2.The Department has documentation which shows that the household cannot be located. 3.An inadvertent household error claim is being referred for possible prosecution or for administrative disqualification, and the Department determines that collection action will prejudice the case. In these instances, collection action may be postponed.

(b)Intentional Program Violation Claims. If a household member is found to have committed intentional program violation (by an administrative disqualification hearing official or a court of appropriate jurisdiction) or has signed a waiver of right to an administrative disqualification hearing, or an administrative consent agreement, the Department shall initiate collection action against the individual/household, unless one of the following conditions applies: 1.The household has repaid the overissuance already. 2.The Department has documentation which shows the household cannot be located. 3.The Department determines that collection action will prejudice the case against a household member who has been referred for prosecution.

(2)Initiating Collection On Claims. The Department shall initiate collection action by providing the household a written demand letter containing following information:

(a)The amount owed by the household.

(b)The reason for the claim.

(c)The period of time the claim covers.

(d)Any offsetting that was done to reduce the claim.

(e)How the household may pay the claim.

(f)The household's right to a fair hearing if the household disagrees with the amount of the claim, unless the household has already had a fair hearing on the amount of the claim as a result of consolidation of the administrative disqualification hearing with the fair hearing.

(g)Information regarding free legal representation, if there is an individual or organization available that provides free legal representation.

(h)For inadvertent household error and intentional program violation claims, the household shall be informed of: 1.The length of time the household has to decide which method of repayment it will choose and inform the Department of its decision. 2.The fact that the household's allotment will be reduced if the household fails to agree to make restitution.

(i)For administrative error claims, the household shall be informed of the availability of allotment reduction as a repayment method if the household prefers to use this method.

(3)Action Against Households Which Fail To Respond To Collection Action.

(a)If the household against which collection action has been initiated for repayment of an administrative error, an inadvertent household error, or intentional program violation claim is currently participating in the program and does not respond to the written demand letter within twenty (20) days of the date the notice is mailed for an administrative error or an inadvertent household error or within five (5) days of the date the notice is mailed for an intentional program violation, the Department will reduce the household's Food Stamp allotment as soon as is administratively feasible.

(b)If any nonparticipating household against which collection action has been initiated for repayment of a claim does not respond to the first demand letter, additional demand letters shall be sent at reasonable intervals, such as 30 days until the household has responded by paying or agreeing to pay the claim, until the criteria for suspending collection action, as specified in paragraph (4) of this section, have been met, or until the Department initiates other collection actions.

(c)The Department may also pursue other collection action, as appropriate, to obtain restitution of a claim against any household which fails to respond to a written demand letter for repayment of any inadvertent household error, administrative error, or intentional program violation claim.

(4)Suspending Collection Of Claims.

(a)Inadvertent Household and Administrative Error Claims. An inadvertent household or administrative error claim may be suspended if no collection action was initiated because of conditions specified in paragraph (1)(a) of this section. If collection action of an inadvertent household error claim against a nonparticipating household or of any administrative error claim may be suspended when: 1.The household cannot be located; or 2.The cost of further collection action is likely to exceed the amount that can be recovered.

(b)Intentional Program Violation Claims. The Department may suspend collection action on intentional program violation claims when: 1.The Department has documentation that the household cannot be located; or 2.For nonparticipating households the Department has sent at least one demand letter for claims under $100, at least two demand letters for claims between $100 and $400, and the cost of further collection action is likely to exceed the amount that can be recovered.

(5)Terminating Collection Of Claims. A claim may be determined uncollectible after it is held in suspense for 3 years. The Department may use a suspended or terminated claim to offset benefits in accordance with rule 1240-1-20-.09.

(6)Collection Action When The Household Composition Changes. When the membership of a household with an overissuance claim changes, collection action will be initiated as follows:

(a)Inadvertent Household and Administrative Error Claims. The Department shall initiate collection from the household containing the head of the household at the time the overissuance occurred. If repayment cannot be obtained from such a household, the Department shall initiate collection from any household containing an adult who was a member of the household in which the overissuance occurred.

(b)Intentional Program Violation Claims. The Department shall initiate collection action against the household which contained intentional program violation and which received the overissuance for which the claim was established. If repayment cannot be obtained from the person who committed the intentional program violation the Department shall initiate collection action against the household containing the individual who was head of the household at the time the act(s) of intentional program violation occurred. If repayment can not be obtained from such household, the Department shall initiate collection against any household containing an adult who was a member of the household in which the overissuance occurred.

(7)Methods Of Collecting Payments. The Department shall collect payments for claims against households as follows:

(a)Lump Sum. The household may repay a claim by lump sum: 1.If the household is financially able to pay the claim at one time, the Department shall collect a lump sum cash payment. However, the household shall not be required to liquidate all of its resources to make this one lump sum payment; 2.If the household is financially unable to pay the entire amount of claim at one time and prefers to make a lump sum cash payment as partial payment of the claim; or 3.If the household chooses to make a lump sum payment of food stamp coupons as full or partial payment of the claims.

(b)Installments. 1.The Department shall negotiate a payment schedule of regular installments with the household for repayment of any amounts of the claim not repaid through a lump sum payment. The household may use food stamp coupons as full or partial payment of any installment. If the full claim or remaining amount of the claim cannot be liquidated in 3 years, the Department may compromise the claim by reducing it to an amount that will allow the household to pay the claim in 3 years. The Department may use the full amount of the claim (including any amount compromised) to offset benefits. 2.If the household fails to make a payment in accordance with the established repayment schedule (either a lesser amount or no payment), the Department shall send the household a notice explaining that no payment or an insufficient payment was received. The notice shall inform the household that it may contact the Department to discuss renegotiation of the payment schedule. The notice shall also inform the household that unless the overdue payments are made or the Department is contacted to discuss renegotiation of the payment schedule, the allotment of a currently participating household against which an inadvertent household error or intentional program violation claim has been established may be reduced without a notice of adverse action. 3.If the household responds to the notice, the Department shall take one of the following actions as appropriate:

(i)If the household makes the overdue payment and wishes to continue payments based on the previous schedule, permit the household to do so;

(ii)If the household requests renegotiation, and if the Department concurs with the request, negotiate a new payment schedule;

(iii)If the household requests renegotiation of the amount of its repayment schedule but the Department believes that the household's economic circumstances have not changed enough to warrant the requested settlement, the Department may continue renegotiation until a settlement can be reached. The Department shall have the option to invoke allotment reduction against a currently participating household for repayment of an inadvertent household error or intentional program violation claim if a settlement cannot be reached. 4.If a currently participating household against which an administrative error or inadvertent household error or intentional program violation claim has been established fails to respond to the notice, the Department shall invoke allotment reduction. The Department may also invoke allotment reduction if such a household responds by requesting renegotiation believes that the household's economic circumstances have not changed enough to warrant the requested settlement. If allotment reduction. is involved, no notice of adverse action is required. 5.In cases where the household is currently participating in the program and a payment schedule is negotiated for repayment of an inadvertent household error or intentional program violation claim, the Department shall ensure that the negotiable amount to be repaid each month through installment payments is not less than the amount which could be recovered through allotment reduction. 6.Once negotiated, the amount to be repaid each month through installment payments shall remain unchanged regardless of subsequent changes in the household's monthly allotment.

However, both the Department and the household shall have the option to initiate renegotiation of the payment schedule if they believe that the household's economic circumstances have changed enough to warrant such action.

(c)Allotment Reduction. 1.The Department shall collect payments for administrative error claims, inadvertent household error claims, and intentional program violation claims from households currently participating in the program by reducing the household's Food Stamp allotments. 2.Prior to reduction, the Department shall inform the household of the appropriate formula for determining the amount of food stamps to be recovered each month and the effect of that formula on the household's allotment, and of the availability of other methods of repayment. If the household requests to make a lump sum cash and/or food stamp coupon payment as full or partial payment of the claim, the Department shall accept this method of payment. 3.The Department shall reduce the household's allotment to recover any amount of an administrative error, inadvertent household error, or intentional program violation claim not repaid through a lump sum cash and/or Food Stamp coupon payment unless a payment schedule has been negotiated with the household. The provision for a $10 minimum benefit level for households with one and two members only shall apply to the allotment prior to reduction. 4.If the full or remaining amount of the claim cannot be liquidated in 3 years, the Department may compromise the claim by reducing it to an amount that will allow the household to make restitution within 3 years. 5.The Department may use the full amount of the claim (including any amount compromised) to offset benefits. 6.The amount of food stamps to be recovered each month through allotment reduction shall be determined as follows:

(i)Administrative Error and Inadvertent Household Error Claims. For these claims, the amount of food stamps shall be the greater of 10 percent of the household's monthly allotment or $10 per month.

(ii)Intentional Program Violation Claims. For intentional program violations claims, the amount of food stamps shall be the greater of 20 percent of the household's monthly entitlement or $10 per month.

(8)Overpaid Claims. If a household has overpaid a claim, the Department shall pay the household any amounts overpaid as soon as possible after the overpayment becomes known.

(9)Interstate Claims Collection. When a household moves to another state, the Department shall initiate or continue collection action against the household for any overissuance to the household which occurred while it was under the Department's jurisdiction.

History

• Authority: TCA §§4-5-202, 71-1-105, 71-3-157, 71-3-158; PL 104-193; 7 CFR 273.18.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 17, 1982; effective September 16, 1982. Repeal and new rule filed June 28, 1983; effective July 28, 1983. Amendment filed September 29, 1986; effective December 29, 1986. Amendment filed April 4, 1997; effective June 18, 1997.

Tenn. Comp. R. & Regs. 1240-01-20-.08 RESERVED FOR FUTURE USE

History

• Authority: TCA §14-27-113; 7 CFR 273.18.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed August 17, 1982; effective September 16, 1982. Repeal and new rule filed June 28, 1983; effective July 28, 1983.

Tenn. Comp. R. & Regs. 1240-01-20-.09 RESTORATION OF LOST BENEFITS

(1)Entitlements. The county office shall restore to the household benefits which were lost whenever the loss was caused by an administrative error, or whenever an administrative disqualification decision for intentional program violation is subsequently reversed, or whenever federal regulations specifically state that a household is entitled to restoration of lost benefits. Benefits shall be restored for not more than twelve months prior to whichever of the following occurred first:

(a)The date the state agency receives a request for restoration from a household; or (b)The date the state agency is notified or otherwise discovers that a lost to a household has occurred.

(2)The county office shall restore to households benefits which were found by any judicial action to have been wrongfully withheld.

(3)If the judicial action is the first action the recipient has taken to obtain restoration of lost benefits, then benefits shall be restored for a period of not more than twelve months from the date the court action was initiated.

(4)When the judicial action is a review of a county office action, the benefits shall be restored for a period of not more than twelve months from the first of the following dates:

(a)The date the state agency receives a request for restoration; or (b)If no request for restoration is received, the date the fair hearing action was initiated; but (c)Never more than one year from when the state agency is notified of or discovers the loss.

(5)Errors Discovered By The County Office. If the county office determines that a loss of benefits has occurred, and the household is entitled to restoration of those benefits, the county office shall automatically take action to restore any benefits that were lost. No action by the household is necessary. However, benefits shall not be restored:

(a)If the benefits were lost more than 12 months prior to the month the loss was discovered by the county office in the normal course of business; or (b)If the benefits were lost more than 12 months prior to the month the county office was notified in writing or orally of a possible loss to a specific household.

(6)Notification And Method Of Restoration.

(a)Notification to the Household. 1.When it is determined by the county office that a loss of benefits has occurred, the household shall be notified, in writing, of the following:

(i)Entitlement to restored benefits;

(ii)The amount of benefits to be restored;

(iii)Any offsetting that was done;

(iv)The method of restoration; and (v)The right to appeal through the fair hearing process if the household disagrees with any aspect of the proposed lost benefit restoration. 2.Reserved for Future Use. 3.Reserved for Future Use.

(b)Method of Restoration. 1.Regardless of whether a household is currently eligible or ineligible, the county office shall restore lost benefits to a household by issuing an allotment equal to the amount of benefits that were lost. The amount restored shall be issued in addition to the allotment currently eligible households are entitled to receive. 2.Deviations. The county office shall honor reasonable requests by households to restore lost benefits in monthly installments if, for example, the household fears that excess coupons may be lost or stolen, or that the amount to be restored is more than it can use in a reasonable period of time.

(c)Household Composition Changes. Whenever lost benefits are due a household and the household's membership has changed. the county office shall restore the lost benefits to the household containing a majority of the individuals who were household members at the time the loss occurred. If the county office cannot locate or determine the household which contains a majority of the household members, the county office shall restore the lost benefits to the household containing the individual who was head of the household at the time the loss occurred.

(d)Reserved for Future Use.

(e)Reserved for Future Use.

(7)Computing The Amount To Be Restored. After correcting the loss for future months and excluding those months for which benefits may have been lost prior to the twelve (12) month time limits described in Section 1240-1-21-.01, the county shall calculate the amount to be restored as follows:

(a)Incorrect Allotment. If the household was eligible but received an incorrect allotment, the loss of benefits shall be calculated only for those months the household participated.

(b)Delay, Denial, or Termination. If the loss was caused by an incorrect delay, denial, or termination of benefits, the months affected by the loss shall be calculated as follows: 1.If an eligible household's application was erroneously denied, the month the loss initially occurred shall be the month of application or for an eligible household filing a timely reapplication, the month following the expiration of its certification period. 2.If an eligible household's application was delayed, the months for which benefits are lost shall be calculated in accordance with procedures in Section 1240-1-17 of the Family Assistance Manual for determining the delay was caused by the household or by the county office. 3.If a household's benefits were erroneously terminated, the month the loss initially occurred shall be the first month benefits were not received as a result of the erroneous action. 4.After computing the date the loss initially occurred, the loss shall be calculated for each month subsequent to that date until either the first month the error is corrected or the first month the household is found ineligible.

(c)Determination of Eligibility. For each month affected by the loss, the county office shall determine if the household was actually eligible. In cases where there is not information in the household's case file to document that the household was actually eligible, the county office shall advise the household of what information must be provided to demonstrate eligibility for these months. For each month the household can't provide the necessary information to demonstrate its eligibility, the household shall be ineligible.

(d)Calculation of Benefits. For the months the household was eligible, the county office shall calculate the allotment the household should have received. If the household received a smaller allotment than it was eligible to receive, the difference between the actual and correct allotment equals the amount to be restored.

(e)Offsetting Claims. If a claim against a household is unpaid or held in suspense as provided in

Section 1240-1-20 of the Family Assistance Manual, the amount to be restored shall be offset against the amount due on the claim before the balance, if any, is restored to the household. At that point in time when the household is certified and received an initial allotment, the initial allotment shall not be reduced to offset claims, even if the initial allotment is paid retroactively.

(8)Disputed Benefits.

(a)Household Disagrees With State Agency. 1.If the county office determines that a household is entitled to restoration of lost benefits, but the household does not agree with the amount to be restored as calculated by the county office or any other action taken by the county to restore lost benefits, the household may request a fair hearing within 90 days of the date the household is notified of its entitlement to restoration of lost benefits. 2.If a fair hearing is requested prior to or during the time lost benefits are being restored, the household shall receive the lost benefits as determined by the county office, pending the results of the fair hearing. 3.If the fair hearing decision is favorable to the household, the county shall restore lost benefits in accordance with that decision.

(b)State Agency Disagrees With Household. 1.If a household believes it is entitled to restoration of lost benefits but the county office, after reviewing the case file, does not agree, the household has 90 days from the date of the county office's determination to request a fair hearing. The county office shall restore lost benefits to the household only if the fair hearing decision is favorable to the household. 2.Benefits lost more than 12 months prior to the date the county office was initially informed of the household's possible entitlement to lost benefits shall not be restored.

(9)Entitlement To Lost Benefits For Individuals Who Were Disqualified For Intentional Program Violation.

(a)Individuals disqualified for intentional program violation are entitled to restoration of any benefits lost during the months they were disqualified only if the disqualification decision is subsequently reversed. The months covered in the restoration must not exceed 12 months prior to the date the county received notification.

(b)For each month the individual was disqualified, the amount to be restored, if any, shall be determined by comparing the allotment the household received with the allotment the household would have received had the disqualified member been allowed to participate.

(c)If the household received a smaller allotment than it should have received, the difference equals the amount that should have been restored.

(d)Participation in an administrative disqualification hearing in which the household contests the State Agency assertion of intentional program violation shall be considered notification that the household is requesting restored benefits.

History

• Authority: TCA §§14-27-104, 14-27-106, 14-27-109, 14-27-110; 7 CFR 273.17.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983. Amendment filed October 14, 1983; effective November 14, 1983.

Tenn. Comp. R. & Regs. 1240-01-20-.10 REPEALED

History

• Authority: TCA §§14-27-104, 14-27-106, 14-27-109, 14-27-110; 7 CFR 273.17.
• Administrative History: Original rule filed August 15, 1980; effective September 28, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983.

Tenn. Comp. R. & Regs. 1240-01-20-.11 REPEALED

History

• Authority: TCA §§14-27-104 14-27-106 14-27-109 14-27-110; 7 CFR 273.17.
• Administrative History: Original rule filed August 15, 1980; effective September 28, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983.

Chapter 1240-01-21 Repealed

Tenn. Comp. R. & Regs. 1240-01-21-.01 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 233.20(a)(13).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed December 2, 1983; effective January 1, 1984. Repeal and new rule filed October 9, 1987; effective January 27, 1988. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-21-.09 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 233.20(a)(13).
• Administrative History: New rule filed October 9, 1987; effective January 27, 1988. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-21-.02 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 233.20(a)(13).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed December 2, 1983; effective January 1, 1984. Repeal and new rule filed October 9, 1987; effective January 27, 1988. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-21-.03 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 233.20(a)(13).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed December 2, 1983; effective January 1, 1984. Repeal and new rule filed October 9, 1987; effective January 27, 1988. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-21-.04 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 233.20(a)(13).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed December 2, 1983; effective January 1, 1984. Repeal and new rule filed October 9, 1987; effective January 27, 1988. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-21-.05 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 233.20(a)(13).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed December 2, 1983; effective January 1, 1984. Repeal and new rule filed October 9, 1987; effective January 27, 1988. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-21-.06 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 233.20(a)(13).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed December 2, 1983; effective January 1, 1984. Repeal and new rule filed October 9, 1987; effective January 27, 1988. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-21-.07 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 233.20(a)(13).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed December 2, 1983; effective January 1, 1984. Repeal and new rule filed October 9, 1987; effective January 27, 1988. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-21-.08 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and 45 CFR 233.20(a)(13).
• Administrative History: New rule filed October 9, 1987; effective January 27, 1988. Repeal filed February 20, 2024; effective May 20, 2024.

Chapter 1240-01-22 Repealed

Tenn. Comp. R. & Regs. 1240-01-22-.01 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, 71-1-105(12), 71-3-109, and 71-3-120; 42 USCA § 616; and 45 CFR §§ 235.112 and 235.113.
• Administrative History: Original rule filed April 15, 1993; effective May 30, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-22-.06 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, 71-1-105(12), 71-3-109, and 71-3-120; 42 USCA § 616; and 45 CFR §§ 235.112 and 235.113.
• Administrative History: Original rule filed April 15, 1993; effective May 30, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-22-.02 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, 71-1-105(12), 71-3-109, and 71-3-120; 42 USCA § 616; and 45 CFR §§ 235.112 and 235.113.
• Administrative History: Original rule filed April 15, 1993; effective May 30, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-22-.03 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, 71-1-105(12), 71-3-109, and 71-3-120; 42 USCA § 616; and 45 CFR §§ 235.112 and 235.113.
• Administrative History: Original rule filed April 15, 1993; effective May 30, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-22-.04 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, 71-1-105(12), 71-3-109, and 71-3-120; 42 USCA § 616; and 45 CFR §§ 235.112 and 235.113.
• Administrative History: Original rule filed April 15, 1993; effective May 30, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-22-.05 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, 71-1-105(12), 71-3-109, and 71-3-120; 42 USCA § 616; and 45 CFR §§ 235.112 and 235.113.
• Administrative History: Original rule filed April 15, 1993; effective May 30, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Chapter 1240-01-31 Drug Addict and Alcoholic Treatment Centers and Group Living Arrangements - Food Stamps Only

Tenn. Comp. R. & Regs. 1240-01-31-.01 DRUG ADDICT AND ALCOHOLIC TREATMENT CENTERS - FOOD STAMPS ONLY

(1)Authorization Of Drug And Alcoholic Treatment Centers. Drug and alcoholic treatment centers must be authorized to receive and utilize food coupons on behalf of eligible recipients/residents, via an authorized representative employed by the treatment program. The program must meet the following criteria prior to the certification of residents by Family Assistance Certification personnel:

(a)The program must be certified by the Department of Mental Health as a bona fide treatment program.

(b)The program must be conducted by a private, non-profit organization or institution, or a publicly operated community health center. (The program must be authorized by FNS only if it wishes to redeem Food Stamps through wholesalers.)

(2)Eligibility As Household Members.

(a)Non-Residents. Members of eligible households, including single person households, who are narcotic addicts or alcoholics and who regularly participate in a drug or alcoholic treatment and rehabilitation program on a non-resident basis may use coupons to purchase food prepared for them during the treatment program. This treatment program may be operated by a private non-profit organization or institution authorized by the Department of Mental Health as a bona fide treatment center.

(b)This treatment program may be operated by a non-profit organization or institution or a publicly operated community health center authorized by the Department of Mental Health as a bona fide treatment center.

(3)Residents of treatment centers shall apply and be certified through the use of an authorized representative who is an employee of and designated by the private non-profit organization or institution or a publicly operated community health center that is administering the treatment and rehabilitation program.

(4)Certification Policy.

(a)Reserved for future use.

(b)Expedited Service. For those residents of treatment centers and rehabilitation centers who are entitled to expedited service, the eligibility worker shall mail an ATP or have an ATP available to be picked up no later than seven working days following the filing date. If eligibility for the initial application is expedited, the eligibility worker shall complete verification and documentation requirements prior to the issuance of a second coupon allotment.

(c)One Person Households. Residents of treatment centers have their eligibility determined as one-person households.

(d)Normal Processing Standards. When normal processing standards apply, the eligibility worker shall complete the verification and documentation requirements prior to making an eligibility determination for the initial application.

(e)Rights of Certified Residents. Resident households have the same rights to notices of adverse action, fair hearings, and entitlement to lost benefits, as do all other Food Stamp households.

A resident of a center has a right to an application and has the right to same day filing.

However, the interview, verification, and other certification procedures must be accomplished through the authorized representative.

(f)Exemption from Work Registration. As stated in Section 1240-1-3-.45(3)(e), regular participants in drug addiction or alcoholic treatment and rehabilitation programs, either in a resident or non-resident basis, are exempt from work registration requirements.

(g)Verification of Participation for Work Registration Exemption. The regular participation of an addict or alcoholic in a treatment program may be verified through the organization or institution operating the program before granting the exemption, if the information is questionable. To be considered questionable the information on the application must be inconsistent with statements made by the applicant or the authorized representative with other information on the application or previous application, or with information known to or received by the eligibility worker prior to certification.

(h)Certification Periods. Because of the substantial likelihood of frequent and significant changes and the inability to predict circumstances in the near future, residents of treatment centers are certified usually for 1 or 2 months. However, if a longer certification period is warranted a longer period must be assigned. Households certified after the 15th, whose circumstances warrant it, should have the certification period increased by one month. Residents provided expedited services are given certification periods in accordance with Section 1240-1-5.

(5)Basis For Center Participation. Drug addiction or alcoholic treatment and rehabilitation program means any drug addiction or alcoholic treatment and rehabilitation program recognized as a tax exempt organization by the Internal Revenue Service. Such organization or institution must be certified by the Tennessee Department of Mental Health which is the agency designated by the Governor of Tennessee as responsible for state programs for alcoholics and drug addicts. Under Public Law 91-616, Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970 and Public Law 92-255, Drug Abuse and Treatment Act of 1972, such agencies can be designated as providing treatment that can lead to the rehabilitation of drug addicts or alcoholics.

(6)Center Responsibilities.

(a)Monthly Reports. Each treatment and rehabilitation center shall be asked to provide the county with a certified list of currently participating residents signed by the center director.

The county office shall require the listing on a monthly basis.

(b)When the Participant Leaves the Center. The treatment center shall at each certification: 1.Provide resident households with their ID card and any untransacted ATP cards issued for the household when the household leaves the treatment center. The departing household shall also receive its full allotment if issued by direct mail and if no coupons have been spent on behalf of that individual household. These procedures are applicable any time during the month. However, if the coupons have already been issued and any portion spent on behalf of the individual and the household leaves the treatment and rehabilitation program prior to the 16th day of the month, the treatment center shall provide the household with one-half of its monthly coupon allotment. If the household leaves after the 16th day of the month and the coupons have already been issued and used, the household does not receive any coupons. 2.That once the household leaves the treatment center, the center is no longer allowed to act as that household's authorized representative and that the treatment center shall return any ATPs or coupons received on behalf of households which are no longer residents of the center. 3.That the treatment center shall provide the household, if possible, with a change report form and to instruct the household to use the form to report their new address and other circumstances after leaving the center. The center must advise the household to return the form to the appropriate office of the eligibility worker within 10 days.

(c)For Reporting Changes. The treatment center shall notify the county office of changes in the household's income or other household changes in circumstances. The treatment center must also notify the eligibility worker when the addict or alcoholic leaves the treatment center.

Changes in the household's circumstances shall be processed by using the same standards that apply to all other Food Stamp households.

(d)Returning ATP or Coupons. The treatment center shall return the household's ATP or coupons and the ID card to the Food Stamp office if received after the individual has left the center.

(e)Center Liability. The organization or institution is responsible for any misrepresentation or fraud which it knowingly commits in the certification of center residents. As an authorized representative, the organization or institution must be knowledgeable about the household's circumstances and should carefully review those circumstances with residents prior to applying on their behalf. The organization or institution is strictly liable for all losses or misuse of food coupons held on behalf of residents and for all overissuances which occur while the households are residents of the treatment center.

(f)Center Penalties and Disqualifications. The organization or institution may be penalized or disqualified by FNS if it is determined either administratively or judicially that coupons were misappropriated or used for purchases that did not contribute to a certified household's meals.

The county office shall promptly notify the local FNS office when it has reason to believe that an organization or institution is misusing coupons in its possession. The county office shall not take any action against the organization or institution prior to the FNS action.

(g)Claims for Overissuance. The county office shall establish a claim against the treatment center for overissuances of food coupons held on behalf of resident claims if any overissuances are discovered during an investigation or hearing procedure for redemption violations.

(h)Disqualified Treatment Center. County offices will receive notification if FNS disqualifies an organization or institution as an authorized retail food store and the county office shall suspend the authorized representative status of that organization or institution for the same period.

(7)Residents of drug addict and alcoholic treatment centers that lose their FNS authorization to accept and redeem coupons or lose their certification through the Department of Mental Health shall not be eligible to participate. The residents are not entitled to a Notice of Adverse Action (Form HS-0751, Notice of Disposition), but shall receive a written notice explaining the termination and when it will become effective.

History

• Authority: TCA §§14-27-104; 7 CFR 273.1 and 273.11; PL 99-198.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed April 15, 1986; effective July 14, 1986.

Tenn. Comp. R. & Regs. 1240-01-31-.03 SHELTERS FOR BATTERED WOMEN AND CHILDREN - FOOD STAMPS ONLY

(1)Shelters For Battered Women And Children - Definition. Shelter for battered women and their children means a public or private non-profit facility that serves battered women and their children.

If the facility serves other individuals, a portion of the facility must be set aside on a long-term basis to serve only battered women and children to meet the criteria for eligibility in a shelter for battered women and children.

(2)Application Process. Prior to certifying residents of a shelter for battered women and their children, the worker must determine whether the shelter meets the definition in (1) above of this section. The worker must apply the criteria established in the Program's definition of a shelter for battered women and their children in order to arrive at a determination, and document the relevant facts for future reference. However, if the facility has FNS Authorization to redeem coupons at wholesalers, the worker is not required to make a determination as to whether the facility meets the program definition. The fact that the facility is authorized by FNS should be documented in the case record.

(a)Residents of shelters for battered women and children shall apply as separate households: 1.Through use of an authorized representative employed and designated by the shelter; 2.On their own behalf; or 3.Through an authorized representative of their own choice.

(b)Residents of shelters are exempted from the prohibition against participating in more than one county in any month. This provision is limited to women and children leaving the household containing the person who subjected them to abuse. 1.Their former household may be certified for participation in the program and its certification may be based on the household size that includes the women and children who have just left. Shelter residents who are included in such certified households may apply for and (if otherwise eligible) participate in the program as separate households if the certified household which includes them contains the person who subjected them to abuse. In this instance, shelter residents who are included in such certified households may receive an additional allotment as a separate household in a given month. Such residents can receive the additional allotment only once a month regardless of the number of times the battered women and their children return to the former household and are forced to take refuge in a shelter more than once in a given month. 2.Shelter residents whose former household was not certified for program participation prior to the member(s) entering the shelter may be certified for program benefits as separate households, if otherwise eligible. Such residents can only receive one allotment per month, regardless of the number of times they return to the former household and are forced to return to the shelter.

(c)Income and Resources. Residents of shelters for battered women and children who apply as separate households shall be certified solely on the basis of their income and resources. The only expenses that should be taken into consideration are the expenses for which they are responsible in determining deductions for the household. These households shall be certified without regard to the income, resources, and expenses of their former household. Jointly held resources with members of the former household shall be considered as inaccessible resources in accordance with 1240-1-4-.09.

(d)Processing Standards. Residents eligible for expedited service shall be handled in accordance with 1240-1-5. Other residents who make application and are not eligible for expedited service shall be handled under normal procedures in 1240-1-14.

(e)Verification. Information for verification of the residents' circumstances may be obtained from documents possessed by the household, information obtained from the facility, or collateral contacts.

(f)Certification Period. Households shall be assigned a one month certification period in accordance with 1240-1-7 due to the frequent short stay in such facilities.

(g)Use of Coupons. Residents may use the coupons to purchase meals prepared for them at a shelter which is authorized by FNS to redeem at wholesalers, or which redeem at retailers as the authorized representative of the participating household.

(3)Reducing The Former Household's Benefits. The worker must take prompt action to ensure that the former household's eligibility and/or allotment reflects the changes in the former household composition. This is considered as a reported change and should be acted on in accordance with the procedures in 1240-1-19.

(4)Reporting Changes.

(a)If the resident has made application on his/her own behalf, the household is responsible for reporting changes to the county office in accordance with the provisions that apply to all other Food Stamp households in accordance with 1240-1-19-.04.

(b)If the shelter is acting as authorized representative, it shall notify the county office of changes in the household's circumstances, etc. in accordance with the provisions that apply to all other Food Stamp households.

(5)Household Leaves The Shelter For Battered Women And Children.

(a)Facility Has Use of Coupons. When the household leaves the shelter for battered women and children, the shelter, either acting as authorized representative or retaining use of the coupons on behalf of the residents, shall provide residents with their ID card (if applicable) and any untransacted ATP cards. Also, the departing household shall receive its full allotment if the monthly allotment has been issued and no coupons have been spent on behalf of that individual household. Once the resident leaves, the shelter no longer acts as authorized representative for the household. The shelter shall return any household's ATP card or coupons to the county office if they are received after the household has left the shelter.

(b)Household Retains Use of Coupons. Households which retain use of their own coupons are entitled to keep the coupons when they leave the shelter.

(6)Shelter For Battered Women And Children Responsibilities. The reporting responsibilities and reviews for drug and alcohol treatment centers and group living arrangements also apply to shelters for battered women and children.

(7)Eligibility Of Residents Residing In Shelters For Battered Women And Children Which Do Not Provide Meals. Residents of shelters which do not provide meals may participate in the program, if otherwise eligible, as any other household. Such residents are not considered as residing in an institution; therefore, the special provisions in this section do not apply, i.e., receiving more than one allotment in a given month.

History

• Authority:TCA §14-27-104; 7 CFR 273.11.
• Administrative History: Original rule filed April 2, 1982; effective May 17, 1982.

Tenn. Comp. R. & Regs. 1240-01-31-.04 SHELTERS FOR THE HOMELESS

(1)Definition. A shelter for the homeless is a public or private non-profit facility that provides temporary shelter and meals to the homeless.

(2)Verification. Before any resident of a shelter for the homeless may be determined eligible, there must be verification that the shelter meets the definition as stated in paragraph (1) of this rule.

(3)Certification Periods. A resident of a shelter for the homeless who is determined eligible will be assigned a one or two month certification period.

(4)Mailing The ATP Card Or Coupons. Food Stamp benefits will be mailed to the local county DHS office for pick up by the recipient. They will not be mailed to the shelter where the recipient resides.

(5)An employee of a shelter for the homeless may not act as the authorized representative for a resident of that shelter.

(6)An eligible resident may use his/her Food Stamp coupons to purchase food for self-preparation and/or to purchase prepared meals served by the shelter if the shelter is approved by the Food and Nutrition Service (FNS) to accept Food Stamp coupons.

Tenn. Comp. R. & Regs. 1240-01-31-.02 GROUP LIVING ARRANGEMENTS

(1) Resident Of Group Living Arrangements. Disabled or blind residents of a group living arrangement who receive benefits under Title II of Title XVI of the Social Security Act may voluntarily apply for the Food Stamp Program. The county shall certify these residents using the same provisions that apply to all other households. Prior to certifying any residents, the county shall verify that the group living arrangement is authorized by FNS or the Department of Mental Health and Retardation. Once the county verifies that the institution is authorized by the Department of Mental Health and Retardation, it must also verify that it is a non-profit residence.

(2)Application Process.

(a)Residents of group living arrangements shall either apply and be certified: 1.Through use of an authorized representative employee and designated by the group living arrangement; 2.Apply and be certified on their own behalf; or 3.Through an authorized representative of their own choice.

(b)The group living arrangement shall determine if any resident may apply for Food Stamps on his or her own behalf; the determination should be based on the resident's physical and mental ability to handle his or her own affairs. The group living arrangement is encouraged to consult with any other agencies providing services to individual residents prior to a determination.

(c)All of the residents of the group living arrangement do not have to be certified either through an authorized representative or individually in order for one or the other method to be used.

Applications shall be accepted for any individual applying as a one person household or for any grouping of residents applying as a household as defined in 1240-1-2-.02.

(d)If the resident applies using the facility as an authorized representative, the group living arrangement may either receive and spend the coupon allotment for food prepared by and/or served to the eligible resident or allow the eligible resident to use all or any portion of the allotment on his or her own behalf. The same provisions applicable in 1240-1-31-.01(4)(b), (d), (e) and (6)(c) to residents of treatment centers also apply to blind or disabled residents of group living arrangements when the facility acts as the resident's authorized representative.

(e)If the residents are certified on their own behalf, the coupon allotment may either be: 1.Returned to the facility to be used to purchase meals served either communally or individually to eligible residents; 2.Used by eligible residents to purchase and prepare food for their own consumption; and/or 3.Used to purchase meals prepared and served by the group living arrangement.

(f)If the group living arrangement has its status as an authorized representative suspended by FNS as discussed in 1240-1-31-.01(6)(h), residents applying on their own behalf shall still be able to participate if otherwise eligible.

(3)Reporting Changes.

(a)If the resident has made application on his or her own behalf, the household is responsible for reporting changes to the county office in accordance with the provisions that apply to all other Food Stamp households as stated in 1240-1-19-.04.

(b)If the group living arrangement is acting in the capacity of an authorized representative, the group living arrangement shall notify the county office of changes in the household’s income or other household circumstances in accordance with the provisions that apply to all other Food Stamp households. The group home shall also notify the county office when the individual leaves the group living arrangement. (See Section 1240-1-19-.04) The group living arrangement shall return any household’s ATP card or coupons to the county office if they are received after the household has left the group living arrangement.

(4)Household Leaves The Group Living Arrangement.

(a)Facility Has Use of Coupons. 1.When the household leaves the facility, the group living arrangement, either acting as an authorized representative or retaining use of the coupons on behalf of the residents (regardless of the method of application) shall provide residents with their ID card (if applicable) and any untransacted ATP cards. Also, the departing household shall receive its full allotment if the monthly allotment has been issued and no coupons have been sent on behalf of that individual household. These procedures are applicable any time during the month. 2.When an individual leaves the group living arrangement prior to the 16th day of the month and coupons have already been issued and any portion spent on behalf of the individual, the facility shall provide the household with its ID card (if applicable) and one-half of its monthly coupon allotment. If the household leaves after the 16th of the month and the coupons have already been issued and used, the household does not receive any coupons. 3.When a group of residents has been certified as one household and has returned the coupons to the facility to use, the departing residents shall be given a pro rata share of one-half of the household’s monthly coupon allotment if leaving prior to the 16th day of the month.

EXAMPLE

Three residents have been certified as one household within the group living arrangement facility. Their monthly coupon allotment would be $165.00; onehalf of this amount is $83.00. Therefore, each person's pro rata share would be one-third of $83.00 or $28.00. 4.Once the resident leaves, the group living arrangement no longer acts as his or her authorized representative. 5.The group living arrangement shall, if possible, provide the household with a Change Report Form to report to the county office the individual's new address and other circumstances after leaving the group living arrangement and shall advise the household to return the form to the appropriate office in the county within 10 days.

(b)Household Retains Use of Coupons. 1.If a resident or a group of residents apply on their own behalf and if they retain use of their own coupons, these individuals are entitled to keep the coupons when they leave the group living arrangement. If a group of residents has applied as one household, a pro rata share of the remaining coupons shall be provided to any departing household member.

EXAMPLE

A group of four residents apply as one household. Their monthly coupon allotment is $209.00. One of the four residents leaves the facility on the 18th of the month. The group has $100.00 of coupons remaining. The individual leaving would receive one-fourth of the $100.00 coupons or $25.00 in coupons. 2.Although the household is responsible for reporting changes in household circumstances, the group living arrangement shall, if possible, provide the household with a Change Report Form to report to the county office the individual's new address and other circumstances after leaving the group living arrangement. The facility should also advise the household to return the form to the appropriate office in the county within 10 days.

(5)Liabilities. The same provisions regarding misrepresentation and fraud applicable to drug and alcoholic treatment centers also apply to group living arrangements when the facility is acting as an authorized representative [see 1240-1-31-.01(6)(e) and (f)]. These provisions are not applicable if a resident has applied on his or her own behalf. The resident applying on his or her own behalf shall be responsible for overissuances as would any other Food Stamp household (see 1240-1-20).

(6)Use Of Coupons By Residents.

(a)Group living arrangements may purchase and prepare food to be consumed by eligible residents on a group basis if residents normally obtain their meals at a center location as part of the group living arrangement services or if meals are prepared at a central location for delivery to the individual residents.

(b)If residents purchase and/or prepare food for "home consumption" as opposed to communal dining, the group living arrangement shall ensure that each resident's Food Stamps are used for meals intended for that resident.

(c)If the resident retains use of his or her own coupon allotment, he or she may either use the coupons to purchase meals prepared for them by the facility or to purchase food to prepare meals for their own consumption.

History

• Authority:TCA §14-27-104; 7 CFR 273.11.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-31-.05 CERTIFICATION OF HOMELESS MEAL PROVIDERS

The Department is required by the Food and Nutrition Service (FNS) to assure that adequate evidence exists for it to certify homeless meal providers as eligible to receive Food Stamp coupons. The Department will develop procedures to gather and verify such evidence.

History

• Authority: TCA §14-27-104; PL 99-570.
• Administrative History: Original rule filed July 23, 1987; effective October 28, 1987.

Chapter 1240-01-32 Strikers

Tenn. Comp. R. & Regs. 1240-01-32-.01 DEFINITION OF STRIKERS

A striker is anyone involved in a strike or concerted stoppage of work by employees and any concerted slowdown or other interruption of operations by employees. This includes a stoppage of work due to the expiration of a collective bargaining agreement.

History

• Authority: TCA §14-27-104; 7 CFR 273.1 and 273.7.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed July 13, 1984; effective October 14, 1984.

Tenn. Comp. R. & Regs. 1240-01-32-.02 PERSONS NOT CONSIDERED STRIKERS

Persons who do not meet the program criteria for strikers include the following:

(1)Any employee engaged in a lockout;

(2)Employees unable to work as a result of other striking employees;

(3)Employees who are not participating in a strike, but are not working due to fear of personal injury if they cross a picket line;

(4)Any striking household member who is exempt from work registration requirements prior to the strike;

(5)Any person who loses his/her job because of their participation in a strike.

History

• Authority: TCA §14-27-104; 7 CFR 273.1 and 273.7.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed December 10, 1981; effective January 25, 1982. New rule filed July 13, 1984; effective October 14, 1984.

Tenn. Comp. R. & Regs. 1240-01-32-.03 HOUSEHOLD ELIGIBILITY

Households with striking members shall be ineligible to participate in the Food Stamp Program unless the household was eligible for benefits the day prior to the strike and is otherwise eligible at the time of application.

History

• Authority: TCA §14-27-104; 7 CFR 273.1 and 273.7.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed July 13, 1984; effective October 14, 1984.

Tenn. Comp. R. & Regs. 1240-01-32-.04 TREATMENT OF INCOME AND RESOURCES

(1)Income. The striking household member(s)' income shall be determined by using the monthly earned income from the job on which the strike occurred as if the household member were still working or the striking member's current income, whichever is higher. A household currently participating in the program at the time of the strike will remain eligible. However, earnings from the job (prior to the strike) will continue to be counted. A household will not receive an increase in benefits due to the decrease in income which is attributed to the strike. Other changes which occur, such as household size, will be taken into consideration for budget purposes.

(2)Resources. All countable resources shall be considered in determining eligibility of the household.

This includes any countable resources available at the time of the strike and any other resources currently on hand as of the application month. However, vehicles normally exempt for equity value because they are used for commuting do not lose the exclusion during the strike.

History

• Authority:TCA §14-27-104; 7 CFR 273.1 and 273.7.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed July 13, 1984; effective October 14, 1984.

Tenn. Comp. R. & Regs. 1240-01-32-.05 WORK REGISTRATION REQUIREMENTS

Strikers are subject to the work registration requirements in Rule 1240-1-3-.42 unless exempt by some provisions in that section. An individual who goes on strike but met the exemption criteria for work registration prior to the strike will not be considered a striker.

History

• Authority: TCA §14-27-104; 7 CFR 273.1 and 273.7.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed December 10, 1981; effective January 25, 1982. New rule filed July 13, 1984; effective October 14, 1984.

Tenn. Comp. R. & Regs. 1240-01-32-.06 RESERVED FOR FUTURE USE

History

• Authority: TCA §§14-27-104, 14-27-105, and 14-27-106; 7 CFR 273.1(g); CFR 7(j); PL 97-35.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed March 3, 1983; effective April 4, 1983. Repeal filed July 13, 1984; effective October 14, 1984.

Chapter 1240-01-33 Reserved for Future Use

Tenn. Comp. R. & Regs. 1240-01-33 Reserved for Future Use

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

FAMILY ASSISTANCE DIVISION -- 1 of 1 --

Chapter 1240-01-34 Repealed

Tenn. Comp. R. & Regs. 1240-01-34 Repealed

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

DIVISION OF FAMILY ASSISTANCE

REPEALED

Authority: T.C.A. §4-5-202; 71-1-105 and 42 USC §601 et seq. Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10 1981; effective January 22, 1982.

Repeal filed July 28, 2000; effective October 11, 2000. -- 1 of 1 --

Chapter 1240-01-35 Repealed

Tenn. Comp. R. & Regs. 1240-01-35-.01 REPEALED

History

• Authority: T. C.A. §§ 4-3-1204, 14-3-102, 14-8-106, and 71-1-105.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed July 20, 1982; effective October 13, 1982. Repeal filed February 20, 2024; effective May 20, 2024.

Chapter 1240-01-36 Caretaker - SSI Child - AFDC

Tenn. Comp. R. & Regs. 1240-01-36-.01 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 14-8-106, and 71-1-105 and Social Security Act, Title IV-A, Section 402(a)(24).
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-36-.02 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. § 14-8-106;
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-36-.03 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. § 14-8-106;
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-36-.04 RESERVED FOR FUTURE USE

History

• Authority: T.C.A. § 14-8-106;
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Chapter 1240-01-37 Repealed

Tenn. Comp. R. & Regs. 1240-01-37-.01 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, and 71-1-105(12); and 45 CFR § 233.120.
• Administrative History: Original rule filed September 1, 1993; effective November 15, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-37-.06 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, and 71-1-105(12); and 45 CFR § 233.120.
• Administrative History: Original rule filed September 1, 1993; effective November 15, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-37-.02 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, and 71-1-105(12); and 45 CFR § 233.120.
• Administrative History: Original rule filed September 1, 1993; effective November 15, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-37-.03 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, and 71-1-105(12); and 45 CFR § 233.120.
• Administrative History: Original rule filed September 1, 1993; effective November 15, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-37-.04 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, and 71-1-105(12); and 45 CFR § 233.120.
• Administrative History: Original rule filed September 1, 1993; effective November 15, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-37-.05 REPEALED

History

• Authority: T.C.A. §§ 4-3-1204, 71-1-105, and 71-1-105(12); and 45 CFR § 233.120.
• Administrative History: Original rule filed September 1, 1993; effective November 15, 1993. Repeal filed February 20, 2024; effective May 20, 2024.

Chapter 1240-01-38 Reserved for Future Use

Tenn. Comp. R. & Regs. 1240-01-38 Reserved for Future Use

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

FAMILY ASSISTANCE DIVISION -- 1 of 1 --

Chapter 1240-01-39 Reserved for Future Use

Tenn. Comp. R. & Regs. 1240-01-39 Reserved for Future Use

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

FAMILY ASSISTANCE DIVISION -- 1 of 1 --

Chapter 1240-01-40 Repealed

Tenn. Comp. R. & Regs. 1240-01-40-.01 REPEALED

History

• Authority: T. C.A. §§ 4-3-1204, 14-8-106, and 71-1-105; and 45 CFR 205.146;
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Tenn. Comp. R. & Regs. 1240-01-40-.02 REPEALED

History

• Authority: T. C.A. §§ 4-3-1204, 14-8-106, and 71-1-105; and 45 CFR 205.146;
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. Repeal filed February 20, 2024; effective May 20, 2024.

Chapter 1240-01-41 Repealed

Tenn. Comp. R. & Regs. 1240-01-41 Repealed

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

FAMILY ASSISTANCE DIVISION

REPEALED -- 1 of 1 --

Chapter 1240-01-42 Repealed

Tenn. Comp. R. & Regs. 1240-01-42 Repealed

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

FAMILY ASSISTANCE DIVISION

REPEALED -- 1 of 1 --

Chapter 1240-01-43 Protection of Children

Tenn. Comp. R. & Regs. 1240-01-43-.01 PROTECTION OF CHILDREN

(1) Reserved for future use.

(2) Federal Regulations and state law require that Family Assistance staff be alert to possible signs of neglect, abuse, or exploitation of the children we serve and to make referrals to law enforcement officials or DHS Social Services as appropriate.

(3) The Family Assistance staff is to report and refer immediately to the Social Services Division any observations of neglect or abuse of children so that the Social Worker can provide any needed Protective Services. Examples of observable neglect are:

(a) A child is malnourished, ill-clad, dirty, or without proper shelter;

(b) A child is physically abused or cruelly treated;

(c) A child is without proper supervision and is left unattended or is allowed to wander about without parental direction;

(d) A child is overworked or exploited;

(e) A child is seriously ill and the parents neglect or refuse to provide the necessary medical care and treatment;

(f) A child is emotionally disturbed and his/her disturbance appears to be the result of physical, mental, or emotional incapacity of his parents or of other manifestations of family breakdown, such as severe marital conflict;

(g) A child is denied normal experiences that produce feelings of being loved, wanted, secure, and worthy.

History

• Authority: 45 CFR 233.90 [S.R.S.-A.T.-77-7 (APA), January 18, 1977].
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980. -- 1 of 1 --

Chapter 1240-01-44 Repatriated Citizens

Tenn. Comp. R. & Regs. 1240-01-44-.01 CARE AND TREATMENT OF MENTALLY ILL NATIONALS RETURNED FROM

FOREIGN COUNTRIES. Public Law 86-571, approved July 5, 1960, provides a program of return to the US, reception, temporary care, treatment, and assistance for citizens of the US who have been adjudged insane in a foreign country and who are in need of care and treatment in a mental hospital.

(1)Only US citizens in foreign countries certified by appropriate authorities as being mentally ill and in need of care and treatment in a mental hospital are eligible for this service.

(2)Arrangements for reception into the US and immediate service are made through the US Department of State.

(3)Once immediate service has been provided and it is determined that the person is in need of continuing care treatment assistance, the State Department makes arrangements with an agency in the state to which the person may be transferred (in Tennessee, DHS) to provide for further service to the person.

History

• Authority: 45 CFR 211.1 through 211.15.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Tenn. Comp. R. & Regs. 1240-01-44-.02 ASSISTANCE FOR US CITIZENS RETURNED FROM FOREIGN COUNTRIES

Section 1113 of the Social Security Act, as amended, provides a program of temporary assistance to US citizens or dependents of US citizens who have been brought back to the US from a foreign country because of destitution or illness or because of war, threat of war, invasion, or similar crisis.

(1)Arrangements for reception into the US and provision of immediate assistance are made through the US Department of State. After immediate reception, the returned citizen (dependent) may be transferred to his/her residence or to the place in which relatives or friends who have interest in the citizen reside.

(2)The State Department arranges with an agency in the state to which the citizen is being sent, (in Tennessee the DHS) to provide necessary assistance/service.

(3)Through (5) Reserved for future use.

(6)The returned citizen will have all of his/her rights protected as any other client of the agency. The citizen will be informed that his/her own income and resources must be used first to meet his/her needs.

If he/she has inadequate income/resources and assistance is provided, he/she will be expected to repay such assistance based on his/her ability to do so.

History

• Authority: 45 CFR 212.1 through 212.10.
• Administrative History: Original rule filed August 15, 1980; effective September 29, 1980.

Chapter 1240-01-45 Purpose, Scope, Application of Rules, Definitions and Right to Apply - Families First Program

Tenn. Comp. R. & Regs. 1240-01-45-.01 PURPOSE, SCOPE AND APPLICATION OF RULES

(1) Pursuant to the requirements of Public Chapter 950 (1996), the Families First Act of 1996, the Families First (Temporary Assistance) Program was created to replace the Aid to Families with Dependent Children (AFDC) program in order to reform the program of economic assistance to needy families in Tennessee. These rules implement the Families First program as authorized by the Public Act 950 (1996), and as codified in Title 71 of the Tennessee Code Annotated; the federal Temporary Assistance for Needy Families (TANF) block grant under Title IV-A of the Social Security Act; the Personal Responsibility Act of 1996 (P.L. 103-196); and, the Deficit Reduction Act of 2005 (P.L. 109-171), as amended.

(2) Pursuant to Tennessee Code Annotated, Section 71-3-157(d), the Department of Human Services is directed to administer the program of economic assistance to families under Title IV-A of the Social Security Act pursuant to federal statutes or regulations as they continue to exist after the effective date of Public Chapter 950 on September 1, 1996 or pursuant to any waivers authorized by the federal government as a result of the enactment of Public Chapter 950 (1996).

(3) Effective Date of Waiver; Applicable Rules for Eligibility or Appeals of Cases Determined During Waiver Period.

(a) A waiver to operate the Families First program under certain exceptions to federal law was granted to the State of Tennessee by the U.S. Department of Health and Human Services on July 25, 1996 until June 30, 2007.

(b) Upon review of cases or upon review of eligibility determinations, all initial eligibility determinations prior to the expiration of the waiver shall be reviewed, or determined on appeal, pursuant to applicable terms of the waiver and otherwise applicable law during such period. All eligibility determinations after June 30, 2007, shall be reviewed, or determined on appeal, pursuant to the terms of applicable law then in effect. Where terms of the waiver and federal or state law or regulations are in conflict, the terms of the waiver control during the waiver's effective dates.

(4) In order to provide continued specific interpretation of certain responsibilities of the Department of Human Services under Title IV-A, Title IV-D, and Title XIX of the Social Security Act which continue to be necessary for the administration of the Families First program, the provisions of paragraph (5) referencing Chapters 1240-01-02 through 1240-01- 44 inclusive, Rules of the Tennessee Department of Human Services, Family Assistance Division, as they existed prior to September 1, 1996 or prior to the implementation date of Public Chapter 950 (1996), or as they may be amended thereafter, will apply to Chapter 1240-01-45 through 1240-01-56, but only where not otherwise in conflict with, or superseded by:

(a) The specific requirements of 1240-01-45 through 1240-01-56;

(b) Federal law or regulations or action transmittals or interpretations of the United States Department of Health and Human Services, as they exist or are amended, or by federal or state court orders which affect Chapter 1240-01-01—1240-01-56 or which otherwise affect the Department of Human Services’ responsibility under Title IV-A, Title IV-D and Title XIX of the Social Security Act.

(5) The following provisions of Chapters 1240-01-02 through 1240-01-44, as limited by Paragraph (4), and as they relate to the Title IV-A, Title IV-D, and Title XIX Medicaid programs concerning the operation of the Families First program, are incorporated by reference into the Families First Program:

(a) Chapter 1240-01-13 - Case Records Management.

(b) Chapter 1240-01-14 - Application Process.

(c) Chapter 1240-01-15 - Interviewing for Eligibility.

(d) Chapter 1240-01-16 - Verification Procedures.

(e) Chapter 1240-01-17 - Timeliness Standards.

(f) Chapter 1240-01-18 - Authorization of Grants and Allotments.

(g) Chapter 1240-01-19 - Continuing Responsibilities.

(h) Chapter 1240-01-43 - Protection of Children.

(6) (a) Families First, also referred to as Temporary Assistance or Temporary Assistance to Needy Families (TANF), means the program to provide economic support and other support services to families which is provided by the State of Tennessee utilizing funds made available by the Congress of the United States and the Secretary of the Federal Department of Health and Human Services to the State of Tennessee pursuant to the Social Security Act, and any state funds which may be appropriated by the General Assembly designated to support the temporary assistance program.

(b) Throughout Chapter 1240-01-01 through Chapter 1240-01-44 and Chapters 1240-01- 45 through 1240-01-56, and where the context requires, the use of the term “Families First” shall encompass the Temporary Assistance (TA)/Temporary Assistance to Needy Families (TANF) program referenced in Public Chapter 950 (1996), and references to the receipt or application for “Families First” shall, only where the context so requires, mean Temporary Assistance or Temporary Assistance to Needy Families.

(c) Any existing references to “Aid to Families with Dependent Children” or “AFDC” shall be construed to refer to the Families First program.

(7) Nothing in this Chapter shall be construed to modify existing Food Stamp regulations in Chapters 1240-01-01 through 1240-01-44 except as otherwise required by federal or state law or regulation, as they are amended, or federal or state court order, or action transmittals or policy interpretations of the United States Department of Agriculture, or any federal waiver requirements.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, and 71- 3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq.; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); Acts 2007, Chapter 31; Public Chapter 950 (1996); Section 1115 of the Social Security Act; 42 U.S.C. §§ 601-617; and 45 C.F.R. 201-257.
• Administrative History: Original rule filed December 2, 1996, effective February 15, 1997. Public Necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Tenn. Comp. R. & Regs. 1240-01-45-.02 DEFINITIONS

Listed below are definitions of some of the frequently used terms used by the Department of Human Services in the Families First program. This list is not inclusive and should be read in the context of instructions/policies contained in the Families First Handbook of the Family Assistance Manual.

(1) Absence. Refers to an individual who is physically not in the home.

(2) Adoptive Parent. The mother and/or father of a child whose parental relationship to the child has been formally established by order of a court of competent jurisdiction.

(3) Alleged Father. The natural father of a child born out of wedlock for whom paternity has not been established.

(4) Assistance or Temporary Assistance. Cash benefits paid to an eligible Families First group.

(5) Assistance Group. A group of individuals for whom Families First is requested or authorized.

An assistance group may also be referred to as an AG.

(6) Caretaker. A relative within a specified degree of relationship to the child who provides a home for the child, exercises primary responsibility for care and control of the child, and is included in the assistance group.

(7) Child or Children. A person or persons under 18 years of age, or a person who has not reached his/her 19th birthday and who is a full-time student expected to graduate by the 19th birthday.

(8) Continued Absence of the Parent from the Home (Reference State Rule 1240-01-47-.26 (Absence of a Parent) of these rules).

(a) Continued absence of the parent from the home constitutes the reason for deprivation of parental support or care when the parent is out of the home, the nature of the absence is such as either to interrupt or to terminate the parent’s functioning as a provider of maintenance, physical care, or guidance for the child, and the known or indefinite duration of the absence precludes counting on the parent’s performance of the function of planning for the present support or care of the child. If these conditions exist, the parent may be absent for any reason, and may have left only recently or some time previously.

(b) A parent whose absence is occasioned solely by reason of the performance of active duty in the uniformed services of the United States (as defined in section 101(3) of the Title 37, United States code) is not considered absent from the home.

(c) A parent who is a convicted offender but is permitted to live at home while serving a court-imposed sentence by performing unpaid public work or unpaid community service during the workday is considered absent from the home.

(9) Custody. Immediate charge and control exercised by a person (or an authority) over another.

Legal custody is granted by a court of competent jurisdiction.

(10) Department. The Department of Human Services.

(11) Dependent Child. A needy child age 17 or younger who is deprived of parental support or care because at least one parent is dead, absent, physically or mentally incapacitated, or unemployed. Included in this definition also is a child age 18 who is deprived of parent support or care and is a full-time student in a secondary school or an equivalent level of vocational or technical school, and is reasonably expected to complete the course of education/training before age 19 or in the month of his/her 19th birthday.

(12) Disability. Disability is considered to exist if an individual has been approved for Social Security or SSI on the basis of his/her disability, Veterans Benefits based on his/her 100% disability, or Black Lung benefits based on his/her disability.

(13) Diversion. An option for assistance groups determined eligible for Families First where the family can get a one-time lump sum grant and/or child care assistance instead of a monthly recurring grant. AGs able to choose the diversion option must meet other criteria beyond Families First eligibility as described in 1240-01-49-.09.

(14) Family. A family is an eligible group of children and parent(s) or caretaker relatives living in a common residence.

(15) Family Cap. A ceiling on assistance group grant payments for a period of eligibility that occurs when a child is born to the assistance group at least 10 months from the date of application for Families First or the date of implementation of the Families First program, whichever is later.

(16) Grantee Relative. A person who receives Families First for children in his/her care. A grantee relative may be a relative other than a parent. A relative other than a parent may be included in or excluded from the AG, depending on case circumstances, but is not required to be included in the group.

(17) Guardian/Conservator. A guardian is a person who has been named to manage the affairs and/or the person of a minor; a conservator is an individual who has been named to manage the affairs and/or the person of a minor.

(18) Half-Siblings. Half-brothers/sisters who share one natural or adoptive parent.

(19) Home. A home is considered to be a family setting maintained (or in the process of being established) by the relative who requests Families First for a child living with him/her. Under thi s definition, the family setting may include, but is not limited to, a fixed address, a homeless shelter, or no stationary location. A home exists as long as the relative exercises care and control of the child, even though either the child or the relative is temporarily absent from the customary family setting.

(20) Incapacity. Incapacity is deemed to exist when a parent of a dependent child has a physical or mental defect, illness, or impairment. The incapacity shall be supported by competent medical testimony and must be of such a debilitating nature as to reduce substantially or eliminate the parent’s ability to support or care for the otherwise eligible child and must be expected to last for a period of at least 30 days. Incapacity may be a reason for deprivation or may be a reason for a temporary exemption from a work requirement.

(21) Joint Custody. Legal custody of a child held simultaneously by two or more persons. Usually, joint custody is granted to parents of children when the parents are divorced.

(22) Legal Father. The biological father of a child married to the child’s mother; the mother’s husband when a child is born during the marriage; the child’s legally adoptive father; the natural father whose paternity of a child has been legally established.

(23) “Living With.” Occupying a place of residence maintained by a specified relative as his/her own home and the home of the child for whom Families First assistance is requested.

(24) Marriage During the Receipt of Assistance. A legal union between a caretaker and another individual during a period of Families First eligibility.

(25) Minor. A person under 18 years of age. A minor is considered a dependent child if he/she is living with a specified relative who is requesting/receiving assistance for him/her. A minor parent may apply for assistance for her/himself and his/her child as a separate assistance group if living outside of a parent’s home, or when living in the parent’s home and the parent does not choose to apply for that minor (and his/her siblings, if appropriate), or the parent is ineligible for assistance.

(26) Natural Parent. The birth mother; the biological father of a child born in or out of wedlock.

(27) Payee. The person to whom a Families First grant check is payable.

(28) Protective Payee. The person other than the caretaker or grantee relative to whom a Families First grant is made payable. A protective payee has responsibility for administering the payment for the benefit of the assistance group.

(29) Relative Within a Specified Degree of Relationship. Any blood relative, i.e., father, mother, brother, sister, uncle, aunt, first cousin, nephew, niece, or first cousin once removed. This includes relationships to persons of the preceding generations as denoted by prefixes of grand, great or great-great, and those of half-blood; stepfather, stepmother, stepbrother and stepsister; legally adoptive parents of the child or of the child’s parents; the natural and other legally adopted children of such persons and the blood relatives of such persons, including persons within the 5th degree of relationship to the child for whom assistance is requested.

Termination of parental rights does not affect a child’s blood relationship to his natural extended family. However, adoption of a child or his/her parent establishes a legal relationship to a new set of relatives - both immediate and extended families. The adopted relatives within specified degrees of relationship and the blood relatives within specified degrees of relationship qualify to receive Families First for an adopted child. Legal spouses of any of the above-named relatives are considered to be within the specified degree of relationship to the child. This applies even though the marriage may have been terminated by death or divorce. In determining whether any of these relationships exist, for the purpose of either granting or denying assistance, only the necessary blood relationship must be established.

(30) Set of Children. A set of children is one child, or two or more children who are whole brothers and/or sisters, half-brothers and/or sisters, or adoptive brothers and/or sisters.

(31) Stepparent. A person who is not the natural or adoptive parent of the child, but who is married to the child’s natural or adoptive parent.

(32) SSI Beneficiary. A person who receives Supplemental Security Income benefits through the Social Security Administration.

(33) Step-Siblings. Stepbrothers/sisters share no natural or adoptive parent, but their respective parents are married to each other.

(34) Support. Refers to the furnishing of a means of livelihood or sustenance.

(35) Supportive Services. Those services deemed essential by the state for a Families First participant to become engaged in countable work, training or educational activities or continue engagement in countable work, training or educational activities.

(36) Technically Eligible. Meets all non-financial Families First eligibility requirements.

(37) Temporary Absence. Being away from the home for a short period of time (usually not to exceed three months) with a specific intention of returning to the home on or about a specific date. (Reference State Rule 1240-01-47-.20 (Living in the Relative’s Home) of these rules).

(38) Whole Siblings or Siblings. Brothers/sisters who share the same mother and father.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, and 71- 3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq.; 42 U.S.C. 607(c) and (d); 45 C.F.R. 233.90, 45 C.F.R. § 233.90(c)(1)(iii), 45 C.F.R. § 233.90(c)(1)(v)(A) and (B), 45 C.F.R. § 260.31, and 45 C.F.R. 261.2; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); Acts 2007, Chapter 31; Public Chapter 950 (1996); 42 U.S.C. §§ 601-617; Section 1115 of the Social Security Act; and 45 C.F.R. 201-257.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public Necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007. Amendment filed January 20, 2009; effective April 5, 2009.

Tenn. Comp. R. & Regs. 1240-01-45-.03 RIGHT TO APPLY

(1) Any person wishing to do so shall have the right to apply for Families First without delay.

(2) Information about programs of assistance administered by the Department of Human Services shall be provided to any person requesting it.

(3) Applications must be filed in the Department of Human Services county office of the applicant’s residence and must be on a form prescribed by the agency. The application must be filed by the applicant himself/herself, his/her authorized representative or designated agent, or someone acting responsibly for him/her.

(4) An applicant may be assisted by an individual of his/her choosing in the various aspects of the application/redetermination of eligibility process. However, it is unlawful for any person/agency to charge or receive any thing of value, either directly or indirectly, for providing such assistance to a person requesting aid.

(5) Reserved for future use.

(6) Proof of eligibility is not required of a person prior to his/her filing an application.

(7) The right to file an application shall not be denied to any person even though it is apparent to the worker that eligibility for Families First benefits does not exist.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, and 71- 3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq.; 42 U.S.C. § 608(a)(6)(A); 45 C.F.R. § 206.10; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); Acts 2007, Chapter 31; Public Chapter 950 (1996); and 45 C.F.R. 206.10.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Chapter 1240-01-46 Family Assistance Unit - Families First Program

Tenn. Comp. R. & Regs. 1240-01-46-.01 ASSISTANCE GROUPS

(1) Families First benefits may be provided to an individual or to a group of people. The people applying for or receiving Families First benefits are referred to as an assistance group. This is abbreviated as AG.

History

• Authority: T.C.A. §§ 4-5-201, et seq., and 71-1-105; Public Chapter 950 (1996); and 45 C.F.R. 206.10.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-46-.02 FILING UNIT AND ASSISTANCE GROUP

(1) Filing Unit Defined. The filing unit is the group of individuals for whom assistance is sought.

(a) Any individual has the right to file an application for assistance.

(b) An application filed on behalf of a dependent child must include the following:

1. Any blood related or adoptive brother or sister living in the home including half siblings, who meet the age, deprivation and relationship requirements of Families First eligibility; and 2. Any natural or adoptive parent(s) including an incapacitated or an unemployed parent living in the home.

(2) Assistance Group Defined. The assistance group is the group of individuals for whom assistance is authorized.

(a) The assistance group must include the following persons, unless excluded under subparagraph (c) of this rule:

1. A dependent child; and 2. Any blood related, or adoptive brother or sister living in the home, including half siblings; and 3. Any natural or adoptive parent(s) including an incapacitated or an unemployed parent living in the home, except that this requirement shall not apply to the natural or legal parent whose income is within the limits specified in 1240-01-47- .23, who marries the other natural or legal parent who is a recipient of Families First benefits and the marriage took place during the receipt of Families First benefits; provided, however, that this exception no longer applies if Families First assistance is terminated, even though the family may subsequently reapply and be found eligible.

(b) The following persons will be included in the assistance group if an application is filed on their behalf and they are eligible:

1. Parent of a minor parent;

2. Stepbrothers/sisters with no natural or adoptive parent living in the home (or they can have a separate filing/assistance unit);

3. Stepparent living in the home with the child, when a natural/adoptive parent is incapacitated;

4. Parent(s) or other caretaker relative of an SSI child(ren), when there are no other eligible children. Both parents are eligible if one is incapacitated or unemployed;

5. Grantee relative other than a parent;

6. The natural parent or stepparent of a child who marries the child’s parent during the period of receipt of Families First benefits, unless the new spouse falls under the exception found in 1240-01-47-.23(5).

(c) The following persons must be excluded from the assistance unit:

1. Individuals who receive SSI benefits;

2. Aliens who would be included but for the citizenship and alienage requirements in rule 1240-01-47-.06;

3. Aliens who would be included, but are ineligible due to the deemed income or resources of their sponsors or due to sponsorship by an agency or organization;

4. An unmarried minor parent who is sanctioned for failure to meet the school attendance requirement at 1240-01-47-.15(2);

5. An individual who is ineligible for a period of 10 years because he/she has been convicted in a federal or state court of having made a fraudulent statement or misrepresentation with respect to residence in order to receive AFDC, Families First, Food Stamps, Medicaid/TennCare or Supplemental Security Income (SSI) benefits from two States simultaneously.

6. Fleeing felons and probation/parole violators. No member of an aid group who is otherwise eligible to participate in the Families First Program shall be eligible to participate in the program as a member of that or any other aid group during which the individual is:

(i) fleeing to avoid prosecution, or custody or confinement after conviction, under the law of the place from which the individual is fleeing, for a crime, or attempt to commit a crime, that is a felony under the law of the place from which the individual is fleeing or that, in the case of New Jersey, is a high misdemeanor under the law of New Jersey; or (ii) violating a condition of probation or parole under a federal or state law.

7. An individual convicted of a felony offense that occurred after August 22, 1996 under federal or state law which involved the possession, use or distribution of a controlled substance, unless the individual is complying with or has already complied with all obligations (including any substance abuse treatment requirements) imposed by the criminal court, and (i) The conviction was not classified as a Class A felony, or its equivalent if the offense occurred outside of Tennessee, and (ii) Is currently participating in a substance abuse treatment program approved by the Department of Human Services; or (iii) If not actively participating in a substance abuse treatment program approved by the Department of Human Services, is currently enrolled in such a program, but is on a waiting list for participation, and enters the treatment program at the first opportunity; or (iv) Has satisfactorily completed a substance abuse program approved by the Department of Human Services; or (v) A treatment provider licensed by the Department of Health, Division of Alcohol and Drug Abuse Services, has determined that the individual does not need substance abuse treatment according to TennCare guidelines.

(3) Dependent Child Defined. A dependent child is a needy child under the age of eighteen (18) who is deprived of parental support or care because one or both parents are absent from the home, deceased, physically/mentally incapacitated, or unemployed.

(a) In order to be eligible for assistance, the child must also live with a relative within one of the following degrees of kinship:

1. Any blood relative, i.e., father, mother, brother, sister, uncle, aunt, first cousin, nephew, niece or first cousin once removed. This includes relationships to persons of the preceding generations as denoted by prefixes of grand, great or great-great and those of half blood;

2. Stepfather, stepmother, stepbrother and stepsister;

3. Legally adoptive parents of the child or of the child’s parents, the natural and other legally adopted children of such person and the blood relatives of such persons, including first cousins, first cousins once removed, nephews and nieces; and 4. Legal spouses of any of the persons named in the three above groups. This may apply even though the marriage has been terminated by death or divorce.

(b) Any relative filing an application on behalf of a child must meet all of the following criteria:

1. Provide a home for the child;

2. Exercise primary responsibility for the care and control of the child.

(4) Grantee Relative Defined. A grantee relative is a relative other than the natural or adoptive parent who files an application on behalf of a child. He/she may or may not request to be included in the assistance group, but is the payee.

(5) Legal Conservator/Guardian Defined. A legal conservator is an individual named by a court of competent jurisdiction to manage the affairs of an adult who has been adjudicated mentally or physically incapacitated; a legal guardian is a person who has been named to manage the affairs and/or person of a minor.

(a) A guardian is not eligible to be included in the assistance group unless he/she is a relative within the degree specified.

(b) A guardian may file an application in behalf of a dependent child and be appointed payee for the grant. The child must, however, live in the home of a relative to be eligible.

(c) If the child lives with a relative who has a legally appointed conservator, the conservator must file the application and be named payee for the grant.

(6) Half Brothers/Sisters Defined. Half brothers/sisters are siblings who share a natural or adoptive parent. These must be included in the same assistance group.

(7) Stepbrothers And Stepsisters Defined. Stepbrothers/sisters are siblings who do not share a natural or adoptive parent, but their respective parents are married to each other. Sets of children who are stepsiblings to each other, with no common parent or sibling, should be included in separate AGs.

(8) Stepparent Defined. The spouse of the natural or adoptive parent. The income of a stepparent is deemed available to the dependent child except when the stepparent marries the child’s natural or adoptive parent during the receipt of assistance. If assistance is terminated and later resumed, this income exemption no longer applies.

(9) Minor Child Defined. A minor child is any individual under eighteen (18) years of age.

(a) Minor Applicant. A minor applying for assistance for his/her child must be included in the assistance group with said child.

1. Parent(s) of a minor parent. The income of a parent(s) living with a minor applicant is deemed available to the assistance group. The parent of the minor parent may be added to the assistance group if application is made and he/she is eligible. In such case, the minor parent is the “dependent child.”

(10) Pregnant Woman As An Applicant. An assistance group may consist of one person, a pregnant woman if it has been medically verified that the expected child is to be born within four months, and the woman and expected child (if born) would meet all other eligibility criteria.

(a) Abortion, Miscarriage or Surrender for Adoption. Assistance to a pregnant woman is terminated at the time the pregnant woman aborts the pregnancy, miscarries, or surrenders the child for adoption.

(11) Supplemental Security Income (SSI) Recipients. An SSI recipient is any person receiving Supplemental Security Income benefits from the Social Security Administration.

(a) SSI recipients are ineligible to be included in the assistance group. Their income/resources are excluded for all other filing/assistance group members.

(b) The caretaker of an eligible SSI child may be approved as the only assistance group member, if there are no other eligible children in the home and the parent meets all other eligibility criteria.

(12) Minor Parents.

(a) A Families First applicant under age 18, who has never been married and is pregnant or has a dependent child in his/her care, must live in the home with his/her parent, legal guardian, or other adult relative, or in a foster home, maternity home or other supportive living arrangement supervised by an adult as a condition of eligibility for herself or himself and the child.

(b) This requirement does not apply if:

1. The Department determines after investigation that there is good cause for the separate living arrangement and the health or safety of the applicant or the dependent child(ren) would be jeopardized if they were required to live in one of the arrangements specified; or 2. The person applying for assistance has no parent, other adult relative or legal guardian whose whereabouts are known; or 3. No parent, other adult relative or legal guardian of the applicant allows the applicant to live in his/her home; or 4. There is good cause not to require the minor to comply with subparagraph (a).

Good cause reasons may include, but are not limited to such situations as illegal substance abuse, abuse of alcohol, physical or mental abuse of the applicant or child, serious overcrowding in the home, or dangerous or potentially dangerous physical environment in the home of the adult relative, guardian, or other living arrangement.

(c) Failure to meet this requirement or to have a good cause for failing to meet it results in ineligibility for the minor parent and the child(ren).

(d) When the minor parent meets the requirement or is found to have good cause for failing to meet it:

1. Include the minor parent in any existing Families First AG with his/her siblings, if she/he lives in the home with a parent. The minor parent’s child may be included in the AG, as well, but cannot receive a separate grant.

2. Include only the minor and his/her child(ren) in the AG when the minor’s parent in the home does not receive Families First or when the minor has been determined to meet the criteria for maintaining a separate residence.

3. Deem the income of the non-recipient parent living with a minor parent applicant/recipient as available to the AG.

4. Name a payee to receive the minor parent’s grant when:

(i) The minor is age 14 or under; or (ii) The minor parent lives with a parent, other adult relative or a legal guardian; or (iii) The services of a payee are needed to assist the minor parent in managing the grant.

(e) Marriage does not emancipate a minor for purposes of eligibility for Families First.

However, a married minor or a minor who has ever been married does not have to meet the requirement to live with a parent, other adult relative, or legal guardian to be eligible for Families First.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-1-105(12), 71-3-152, 71-3-153, 71- 3-154, 71-3-154(k), and 71-3-158(d)(2)(D); 21 U.S.C. § 862a(d); 42 U.S.C. §§ 601, et seq.; 42 U.S.C. § 603; 42 U.S.C. § 1315(a); Acts of 1996, Chapter 950; Acts of 2002, Chapter 715, §§ 1, 2 (July 1, 2002); 45 C.F.R. 206.10 and 233.107; § 1115 of the Social Security Act; PL 104-193 § 821(k); 45 C.F.R. § 233.90; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002. Amendment filed December 11, 2002; effective February 24, 2003. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Chapter 1240-01-47 Non-Financial Eligibility Requirements - Families First Program

Tenn. Comp. R. & Regs. 1240-01-47-.01 NON-FINANCIAL ELIGIBILITY REQUIREMENTS

Every applicant and recipient of Families First must meet certain technical eligibility requirements other than financial eligibility.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Chapter 950 (1996), Section 1115 of the Social Security Act, and 45 C.F.R. 233.10.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.02 RESIDENCE

(1) As a condition of eligibility to receive benefits, an AG must reside in Tennessee. The Families First application is to be filed in the county of residence for processing purposes.

(2) No individual may receive benefits as a member of more than one assistance group or in more than one county or state within the same month. There is no durational residence requirement for Families First.

(a) Definition of a Resident 1. For the purpose of the Families First Program, a resident is defined as one who:

(i) Is living in the state (or county) voluntarily with the intention of making his/her home here and not for a temporary purpose. A child is a resident of the state (or county) in which he/she is living other than on a temporary

basis. (Persons in the state or county for visits or vacations are not residents.); or (ii) Is living, at the time of application, in the state (or county), not receiving benefits from another locality, and who entered the state (or county) with a job commitment or to seek employment. For this purpose, a child is a resident of the state (or county) where the caretaker is a resident.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.40.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.03 TEMPORARY ABSENCES

Temporary absences from the state (or county), with subsequent returns to the state or intent to return once the purpose of the absence has been accomplished, do not terminate residence. Residence is retained until abandoned. A decision to continue assistance to a recipient out of state will be based on two factors:

(1) Whether it can be established that he/she is actually maintaining any identifiable living arrangement in Tennessee and he/she has plans to return to Tennessee; and (2) Whether he/she has applied for or is receiving assistance in the state where he/she presently is. If it cannot be established that the recipient is maintaining a home in Tennessee or it is established that he/she has applied for or is receiving assistance in the state where he/she is, it will be assumed that he/she intends to remain out of Tennessee and assistance from this state will be discontinued. If he/she does not return to Tennessee within 3 months, Families First will be discontinued.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.40.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.04 TERMINATION OF RESIDENCE

(1) When a Families First recipient notifies the department (or it is learned that he/she is moving out of state, payments must be terminated promptly within current fiscal and notice constraints. If a recipient is moving to another county within the state, the case is to be transferred to the new county.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.40.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.05 REPORTING ADDRESSES

An applicant/recipient may have both a physical address and a mailing address. If the two are different, both addresses will be required. A mailing address only, such as post office box, general delivery, or a rural route, will not be sufficient as it does not indicate that the AG resides in the county. If the address is a rural route, information must be given to identify the exact location of the home.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.40.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.06 BASIC ELIGIBILITY REQUIREMENTS

(1) As a condition of eligibility to receive Families First benefits, an individual must be either:

(a) A citizen of the United States; or (b) An alien lawfully admitted for permanent residence or otherwise permanently residing in the United States under color of law as described in Section 1240-01-47-.12.

1. The United States is defined as the 50 states and the District of Columbia, Puerto Rico, Guam, and the Virgin Islands. In addition, nationals from American Samoa or Swain’s Island are considered US citizens for eligibility purposes.

2. An ineligible alien will be excluded from the Families First assistance group, but may receive a grant for children in his/her care if they are eligible.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.50.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.07 VERIFICATION OF US CITIZENSHIP

An applicant’s statement that he/she and members of the AG are US citizens must be affirmed by signature on the Department’s Application or Review of Eligibility (HS-0169). Each adult member of the AG is required to sign the form.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.50.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.08 METHOD OF VERIFICATION OF US CITIZENSHIP

Acceptable forms of verification of citizenship include birth certificates, religious records, voter registration cards, certificates of citizenship or naturalization provided by INS, such as Identification Cards for use of Resident Citizens in the US (INS Form 1-179 or INS Form 1-197) or US passports. If the above forms of verification cannot be obtained and the person can provide a reasonable explanation as to why verification is not available, a signed statement will be accepted from someone who is a US citizen which declares, under penalty of perjury, that the member in question is a US citizen. The signed statement shall contain a warning of the penalties for helping someone commit fraud.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.50.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.09 PROMPTNESS OF CASE ACTION - QUESTIONABLE CITIZENSHIP

(1) When there is a question as to whether a member of an AG is in fact a US citizen, prompt action is to be taken on the application as follows: the person whose US citizenship cannot be verified within the promptness standard will be excluded from the AG. The income and resources of the excluded individual will not be taken into consideration in determining eligibility or the amount of payment for the remaining members unless the excluded member is a parent, spouse of an AG member or stepparent living in the home. Determination of eligibility and authorization of payment will not be denied or delayed pending determination of citizenship of the individual in question. When it is subsequently verified that the person is a US citizen he/she may be added to the assistance group (no new application required).

Payments retroactive to the date of application (but not prior to 10/1/94) may be made if all other eligibility requirements were met at that time.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.50.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.10 ELIGIBLE ALIENS

(1) General Requirements. In addition to US Citizens, certain aliens who are otherwise eligible are eligible to receive Families First benefits. The alien status of each individual in the AG listed on the application as an alien is to be determined prior to certification/approval. INS documents presented or secured by the applicant/recipient shall be the primary source of verification of alien status. The Systematic Alien Verification for Entitlements (SAVE) system must be used to validate the alien’s documents and status.

(2) Description Of Eligible Aliens.

(a) Citizens and eligible aliens. The Department shall prohibit participation in the program by any person who is not a resident of the United States and one of the following:

1. A United States citizen; or 2. An alien that, under federal laws and regulations, is permitted to receive Families First benefits funded by federal TANF dollars. These eligible aliens may include, but are not necessarily limited to, certain individuals lawfully present in the United States as a result of the application of the Immigration and Nationality Act and the Immigration Reform and Control Act of 1986.

(3) Aliens who apply for Families First for the first time must have the income and resources of their sponsor considered in determining their eligibility for assistance. The income and resources of the sponsor shall be considered for a period of three years after the alien’s entry into the United States. A sponsor is a person who signed an affidavit or other statement accepted by INS as an agreement to support an alien as a condition of the alien’s admission for permanent residence in the United States. The alien is responsible for obtaining the cooperation of his/her sponsor and for providing the information necessary to determine the alien’s eligibility. This will include material provided in support of the alien’s immigration application. Failure to obtain the sponsor’s cooperation or to supply the information will result in denial/closure of the application/case. Aliens who are exempted from this provision are aliens who were: paroled into the United States as refugee; granted political asylum by the Attorney General; admitted as Cuban or Haitian entrants; admitted under Section 203(a)(7) of the Immigration and Nationality Act prior to April 1, 1980; admitted under Section 207(c) of the Act after March 31, 1980; alien children of sponsors or of sponsor’s spouse; or recipients of AFDC prior to October 1, 1981 or a former AFDC or Families First recipient who reapplies in the future. Any alien under the sponsorship of a public or private agency/organization is not eligible to receive Families First within three years of entry into the Country unless it is proven (and documented) that the agency is unable to meet their sponsorship obligations to the alien. (This may mean that the agency is no longer in existence.) The alien is required to submit documentary evidence as is available to facilitate this determination. Exception: An alien granted permanent resident status through the legalization process is ineligible for a five year period beginning with the date on which she/he was granted temporary resident status.

(a) Establishing Income and Resource Amounts. The following steps are necessary in establishing the amount of income and resources which shall be deemed from the sponsor to the alien, whether or not these are actually available to the alien.

1. Income (i) Determine the gross earned and unearned income of the sponsor and the sponsor’s spouse (the latter’s income will be considered even if the marriage occurred after the affidavit of support was executed). If the sponsor and/or spouse receive Families First or SSI, no income is to be considered available to the alien.

(ii) Deduct from the gross earned income (wages, salaries or net earnings from self employment) 20% of the total of such amounts or $175.00, whichever is less.

(iii) Deduct the standard of need for the number of individuals living with the sponsor who are claimed by the sponsor and/or the sponsor’s spouse as dependents for federal personal income tax liability.

(iv) Deduct the amount the sponsor and/or his/her spouse pays to individuals outside the home who are claimed as dependents for federal income tax purposes.

(v) Deduct any amount paid by the sponsor and/or his/her spouse for child support or alimony to individuals living outside the home.

(vi ) The remaining income shall be considered as unearned income to the alien and shall be added to the alien’s own income in determining eligibility for assistance.

(vii) Follow Families First budgeting procedures beginning with the Gross Income Standard test.

2. Resources. The provision of considering the income and resources of the sponsor as available to the alien is not waived even though the sponsor may have revoked his/her sponsorship agreement. In those situations where the sponsor has absconded and his/her whereabouts is unknown, the alien(s) would not be eligible for assistance for the period of time for which the sponsor is liable for support, as need could not be established. Income and resources which are deemed to a sponsored alien shall not be considered available to unsponsored members of the alien’s family except to the extent the income and resources are actually available. Unsponsored members are not ineligible simply because a sponsored member fails to provide information regarding his/her sponsor. The following are steps to be taken in determining the amount of resources to be deemed from the sponsor to the alien:

(i) Determine the amount of countable resources of the sponsor and the sponsor’s spouse as though the sponsor was applying for Families First.

(ii) Deduct $1500.00 from the total countable resources.

(iii) The balance of the resources shall be considered available to the alien and added to the alien’s own countable resources in determining eligibility.

(b) Multiple Sponsorship. When it is determined that an individual has agreed to sponsor multiple families, the amount to be deemed to the eligible families shall be divided equally among the families who are applying for assistance. If only one family applies for Families First, then the total amount of the sponsor’s liability (income and resources) shall be applied to the family so applying.

(c) Liability for overpayments. Both the sponsor of the alien and the alien shall be jointly and severally liable for any overpayment made to such alien during the three year period following the alien’s entry into the United States, if such overpayment was due to the sponsor’s failure to provide correct information except where it can be established that the sponsor was without fault or where good cause for failure to provide such information can be established. The same procedure for handling overpayments shall be applicable to aliens as for any other Families First recipient.

(d) Establishing Good Cause. Good cause for failure of the sponsor to provide correct information to the Department includes the following:

1. The Department fails to request information regarding the sponsor’s income and resources.

2. The sponsor has had no direct contact with the Department concerning his/her income and resources and he/she is unaware of the information provided by the sponsored alien.

3. Social and/or language barriers preclude the sponsor’s understanding and ability to provide the correct information.

4. Other unusual circumstances exist which indicate the failure to provide correct information is beyond the sponsor’s control.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, 71-3-154, 71-3-158, Public Acts of 1996, Chapter 950, 42 USCA §1315(a), and 45 C.F.R. 233.50 and 233.51.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed December 19, 2003; effective March 3, 2004.

Tenn. Comp. R. & Regs. 1240-01-47-.11 NELIGIBLE ALIENS

All aliens other than those listed in 1240-01-47-.10(2)(a) are ineligible for Families First benefits.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.50 and 233.51.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.12 VERIFICATION OF ALIEN STATUS

Verification of alien status must be by the applicant prior to approval.

(1) Required Verification of Alien Status. Aliens identified in 1240-01-47-.10(2) have been lawfully admitted to the US and are therefore eligible for benefits on this basis. They must also meet other eligibility requirements. These aliens will be able to present (or obtain) one of the following types of verification of their status:

(a) Immigration and Nationality Services (INS) Form I-151 or I-551 - Alien Registration Receipt Card or the Re-Entry Permit, a passport booklet for lawful permanent resident aliens.

(b) If an INS Form I-94 is annotated with the letter (A) through (L), this is verification that the alien does not meet citizenship requirements for Families First purposes and is ineligible for benefits. If, however, the alien can present other documentation from INS that he does meet requirements, this will be acceptable. INS Form I-94, Arrival Departure Record, which will be acceptable only if annotated with:

1. Section 212(d)(5) or 243(h) of the Immigration and Nationality Act, or an (S) indicating Haitian Nationals; or 2. One of the following terms and a combination of the following terms:

(i) Refugee;

(ii) Parolee or paroled;

(iii) Conditional entry or entrant; or (iv) Asylum.

(c) There may be considerable delay (because of methods of issuance) in the receipt of Form I-551 by an alien recently admitted to the US. Passport booklets stamped with the annotation Processed for I-551, Temporary Evidence of Lawful Admission for Permanent Residence will be acceptable verification of eligible alien status.

(d) Unless an Iranian has documentation of status as listed in 1240-01-03-.12(2)(a), (regardless of date of entry to the US) he is not eligible for Families First.

(e) Temporary Resident Card, Form I-688, means that an amnesty alien has been approved for temporary residence. If the form is coded to show the alien was admitted under Section 245A, the alien is not eligible. If the form is coded to show the alien was admitted under Section 210, the alien is eligible until the expiration date stated on the face of the document.

Forms such as I-688A, Employment Authorization Card or Employment Authorization Document (EAD) and I-689 show that an alien has applied for admission. They are not acceptable documents to show that a person has been admitted under an eligible

section. In addition, Form I-181-B cannot be used as acceptable verification.

(f) If the INS Form I-94 does not bear any of the above annotations, the alien may state the reason and submit other conclusive verification, such as a notice, letter or identification card that establishes that the alien has been admitted for permanent residence as a legal alien.

(2) Need For Documentation. If the INS Form I-94 does not bear any of the above annotations, the alien may state the reason and submit other conclusive verification, such as a notice, letter or identification card that establishes that the alien has been admitted for permanent residence as a legal alien. Other evidence of eligible status includes:

(a) Verification of the client’s classification under Section 101(a)(15), 101(a)(20), 207, 208, 212(d)(5), 243, 249 of the Immigration and Nationality Act; or (b) Form G-641 (Application for Verification of Information from Immigration and Naturalization Service Records) when it is properly annotated at the bottom by an INS representative that the alien was admitted lawfully for permanent residence or paroled for humanitarian reasons; or (c) A court order stating that deportation has been withheld pursuant to section 243(h) of the Immigration and Nationality Act;

(d) The client may contact INS or otherwise obtain the necessary verification. If the AG does not wish to contact INS, give the AG the option of withdrawing the application or participating without the ineligible alien. If the client wishes and signs a written consent, the worker will contact INS to obtain clarification of the alien’s status.

(3) Inability to Obtain INS Documentation. If an alien is unable to provide any INS document at all, then the worker has no responsibility to contact INS on the alien’s behalf. If the proper INS documentation is not available, the alien may state the reason and submit other conclusive verification. The worker shall accept other forms of documentation or corroboration from INS that the alien is classified pursuant to Sections 101(a)(15), 101(a)(7), 212(d)(5), 243 or 249 of the Immigration and Nationality Act or other conclusive evidence such as a court order stating that deportation has been withheld pursuant to Section 243(h) of the Immigration and Nationality Act.

(a) Systematic Alien Verification for Entitlements (SAVE) System Procedures. The SAVE System is the process of verifying the alien’s immigration status by validating the alien’s INS documents through the Immigration and Naturalization Service (INS).

1. Benefits may not be denied or reduced pending verification of an alien’s documentary evidence through SAVE.

2. One of the following SAVE verification procedures must be used to establish an alien’s status.

(i) Primary Verification. By telephone, using the INS’ Alien Systematic Verification Index (ASVI) data base as the primary verification method.

(ii) Secondary Verification. Complete INS Form G-845 for each applicant who is not a US citizen and submit to INS.

(4) Certification/Approval of Remaining AG Members. Aliens who do not meet requirements as specified will be excluded from the Families First budget and grant. Their income and resources will not be taken into consideration in the determination of eligibility/payment for assistance group members unless the alien is a legally responsible relative of the AG member(s). In the case of an ineligible alien parent, income is deemed to the eligible dependent child using the stepparent deeming formula. If the alien subsequently presents acceptable verification of alien status which results in his/her meeting eligibility requirements, he/she will be added to the AG (and his/her income and resources taken into consideration) effective the date verification is received in the county office. (No new application is required).

Payment may be made retroactive to the date of application (but not prior to 10/1/94) if all other eligibility requirements were met as of that date.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, 71-3-154(l), Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.50.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002.

Tenn. Comp. R. & Regs. 1240-01-47-.13 SOCIAL SECURITY ENUMERATION REQUIREMENTS

(1) Enumeration is the procedure by which the Social Security Administration (SSA), in cooperation with the Department, assigns and/or verifies social security numbers (SSN) for Families First applicants/recipients.

The SSN will be used by the Department only in the administration of the Family Assistance Program.

(2) As a condition of eligibility to receive Families First each applicant/recipient must:

(a) Furnish to the Department a Social Security Account Number (SSN) or numbers if more than one has been issued; or (b) If an individual’s account number is unknown or one has not been issued to him, application for an SSN must be filed;

(c) The Social Security Administration will not accept an application for a social security number for an unborn child. Such application can be submitted only after the child is born.

(3) This eligibility requirement applies to the grantee relative, caretaker, second parent, and each child in the Families First AG. A person who does not furnish or apply for a Social Security Number is not eligible to receive Families First. If an otherwise eligible A/R does furnish or apply for an SSN he/she may be approved for Families First benefits.

(4) Informing Requirement.

(a) Federal law and regulations require that each applicant or recipient be advised of the

regulation requiring that he/she furnish a Social Security Number to this Department and how the number is to be used.

(b) If, after an explanation is given, individual(s) who are required to furnish or apply for a Social Security Number refuse to do so, they shall be excluded from the Families First AG.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 205.52.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.14 AGE REQUIREMENTS

(1) To be eligible for Families First a child must be under 18 years of age or age 18, but less than 19 if a full-time student in a secondary school or the equivalent level of vocational or technical training and is reasonably expected to complete the program before reaching age 19.

Payment may be made for an otherwise eligible child for the month in which he/she attains age 18 years.

(2) There is no eligibility requirement regarding the age of the caretaker, grantee relative, or second parent.

(3) Attainment of Specific Age.

(a) For Families First eligibility purposes a person is considered to have attained a certain age on the anniversary of his/her birth.

(b) The age of a Families First child must be proven to fall within the age limit given in the preceding paragraph prior to approval or continuation of benefits.

(c) Adults. There is no requirement that the age of the grantee relative, second parent, caretaker, legal guardian or conservator be proved.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, 71-3-154(h)(2)(B), Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.39.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002.

Tenn. Comp. R. & Regs. 1240-01-47-.15 SCHOOL ATTENDANCE

(1) All school age children are required to attend school, including kindergarten, where available, unless good cause is established for non-attendance.

(a) The Department of Human Services will accept the school’s determination as to whether the child is in attendance or truant.

(b) A home schooling program which is recognized by the county/city Board of Education will be acceptable in meeting the school attendance requirement for a school age child; however, a parent/caretaker relative who is home-schooling his/her children will not be exempt from the Families First Employment and Training participation requirement.

(c) Failure to comply with the school attendance requirement will result in a 20 percent reduction in the assistance group’s cash payment.

1. The penalty will be assessed whenever the child is truant unless it is determined that there was good cause for failure of the child to attend school.

2. Good cause for non-attendance includes a verified illness that prohibits attendance, suspension from school with reentry forbidden and no alternative school available, removal of the child from the school by the courts, and other verified situations which prevent the child from attending.

3. The school attendance requirement applies to all assistance groups, whether or not the caretaker is included in the AG.

(i) This requirement extends to all minors in the AG, including married minors and minor parents.

4. Compliance with the requirement following a period of non-compliance will result in the reinstatement of the 20 percent effective the next calendar month.

5. The maximum penalty that can be assessed against an AG for failure to comply with the school attendance requirement is 20 percent, even if more than one child is truant.

(2) An individual who is not the head of household, who has not reached eighteen (18) years of age, who has a child who is at least sixteen (16) weeks of age in such person’s care, and who has not successfully completed a high school education or its equivalent, will be removed from the Families First AG unless the individual participates in educational activities directed toward the attainment of a high school diploma or its equivalent.

(3) An individual who is the head of his/her household, who has not reached twenty (20) years of age, who has a child who is at least sixteen (16) week s of age in such person’s care, and who has not successfully completed a high school education or its equivalent, will be subject to sanction for his/her entire AG unless the individual participates in:

(a) Educational activities directed toward the attainment of a high school diploma or its equivalent; or (b) Thirty (30) hours of countable work activities as described in 1240-01-49-.03.

(4) Earned Income Exclusions/Disregards for Student Child Recipients.

(a) Exclusion of Earnings for a Full-Time Student. Earnings of a child recipient who is a full-time student are excluded for the gross income standard test and grant computations up to six months each calendar year. An additional exclusion for purposes of the GIS test may be applied to earnings from JTPA employment for up to six months each calendar year.

(b) Disregard of Earnings for a Full-Time Student or a Part-Time Student not Employed Full-Time.

1. If a child’s gross earnings are within the gross income standard, the earnings of a child recipient who is a full-time student or a part-time student not employed fulltime are disregarded.

2. For a part-time student employed full-time, or for a child recipient without student status, the applicable earned income disregards ($150, child/dependent care) are applied.

3. For purposes of applying these exclusions/disregards, a student is a child recipient attending school, college, university, or a course in vocational or technical training designed to prepare him/her for gainful employment and includes participation in the Job Corps Program under JTPA.

(5) The caretaker/parent is required to report any change in a child’s school attendance (e.g., a child drops out of school).

(6) A student retains student status during official school vacations and breaks if he/she met requirements prior to the vacation/break and intends to return to school after the vacation/break.

(7) A child who is receiving elementary/secondary or equivalent level vocational/technical instruction from a homebound teacher meets student requirements. A homebound teacher is a certified teacher employed by the school in which the child is enrolled.

(8) Participation in correspondence courses, other courses of home study, apprenticeships and rehabilitation programs other than academic or instructional, vocational/technical training, does not qualify a child as a student.

(9) A child who is age 18 but not yet 19 may be eligible for Families First as a dependent child if she/he is a full-time student in a secondary school or the equivalent level of vocational or technical training and is reasonably expected to complete the program before reaching age 19.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, and 71- 3-154(h), 71-3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq., 42 U.S.C. § 607(c)(2)(C), 42 U.S.C. § 607 (c), (d) and (e), 42 U.S.C. § 608(a)(4), and 42 U.S.C. § 608(a)(6)(A), 42 USC §1315(a), Public Acts of 1996, Chapter 950, 45 C.F.R. § 261.2 and 45 C.F.R. 233.20, §1115 of the Social Security Act; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002. Public necessity rule filed July 2, 2007; expires December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Tenn. Comp. R. & Regs. 1240-01-47-.16 PERSONAL RESPONSIBILITY PLAN

(1) Personal Responsibility Plans Required for Eligibility.

(a) As a condition of eligibility for the entire AU, the caretaker (both parents in a two (2) parent AU) who applies for or receives Families First/TANF must sign a Personal Responsibility Plan (PRP). Signing the PRP indicates an intent to comply with the requirements of the plan. The PRP is developed by the Department in consultation with the caretaker relative and:

(b) Requires that all caretakers (both parents in a two (2) parent AU):

1. Agree to cooperate with child support enforcement activities;

2. Assure that the children in the AU receive regular immunizations and health checks;

3. Agree to participate in thirty (30) hours per week of activities as described in

Tenn. Comp. R. & Regs. 1240-01-49-.03 if not exempt;

4. Agree not to falsify work and/or educational activities documentation, such as providing a falsified employer’s statement, attendance, etc. to verify thirty (30) hours per week of activities;

5. Assure that the children in the AU attend school, including kindergarten;

6. Agree to attend two (2) or more parent-teacher conferences within a school year with the child(ren)’s teacher to review the child(ren)’s status in school if the Department determines that the need is identified relative to the child(ren) in the AU;

7. Agree to attend a minimum of eight (8) hours of parenting classes if the Department determines that the need is identified relative to the child(ren) in the AU;

8. Agree to participate, in such support services that the child(ren) may require to overcome school, family, or other barriers that may interfere with the AU’s ability to become self-sufficient, as determined pursuant to the Department’s policy; and 9. Agree to proper use of the electronic benefit transfer card, including agreement not to access public assistance benefits through an electronic benefit transfer card at:

(i) Any point of sale device or automated teller machine located in any liquor store, casino, gambling casino, gaming establishment, or adult cabaret as prohibited under Chapter 1240-01-58; or (ii) Any point of sale device located in any tobacco store as prohibited under

Chapter 1240-01-58.

(2) As a condition of eligibility for him/herself, the minor parent who is a dependent child in an AU must sign a PRP. Signing the PRP indicates the intent to comply with the requirements of the plan listed in subparagraph (b), parts 1.-8. above. Subparagraph (b), part 9. above does not apply to a minor parent who is a dependent child in an AU.

(3) As a condition of eligibility for the entire AG/AU, the minor parent who is a caretaker of his/her own AG/AU must sign a Personal Responsibility Plan. Signing the PRP indicates the intent to comply with the requirements of the plan. The PRP requirements are the same as those listed in 1240-01-47-.16(1)(a) above.

(4) The Department or its designees will provide benefits such as child care and transportation necessary to assist the individual in complying with the requirements set out in the Personal Responsibility Plan.

(5) Failure, without good cause, to comply with the provisions of the PRP shall result in the following sanctions:

(a) Failure to comply with the work requirement shall result in a mandatory period of case closure pursuant to rule 1240-01-49-.04.

(b) Failure to comply with the prohibited uses of the electronic benefit transfer card as described under Chapter 1240-01-58 shall result in reimbursement of the illegally transferred funds to the Department and/or prohibition from receipt of temporary cash assistance benefits by means of direct cash payment or electronic benefit transfer card.

(c) The following failures shall each result in a twenty percent (20%) reduction in temporary cash assistance, not to exceed forty percent (40%) for concurrent violations, until compliance is met:

1. Failure of one or more of the children in the AU to comply with the school attendance requirement.

2. Failure to meet the immunization and health check requirement for one or more children in the AU.

3. Failure to comply with the requirement to attend two (2) or more parent-teacher conferences if the Department determines that the need is identified for one or more child(ren) in the AU.

4. Failure to attend a minimum of eight (8) hours of parenting classes if the Department determines that the need is identified for one or more child(ren) in the AU.

5. Failure to participate in support services as provided in paragraph (1)(b)(8) if the Department determines that the need is identified for one or more child(ren) in the AU.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 4-5-209, 71-1-103, 71-1-104, 71-1-105, 73-1-126, 71-3- 192, 71-3-103, 71-3-104, 71-3-108(d)(2)(D), 71-3-152, 71-3-153 and 71-3-154; 71-3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq., 42 U.S.C. § 603, 42 U.S.C. § 604(i); 42 U.S.C. § 607(c), (d) and (e); 42 U.S.C. § 608(a)(2), (3) and (12), 42 U.S.C. § 608(b)(3); 42 U.S.C. § 609(a)(14) and 42 U.S.C. §§ 654 and 657; 45 C.F.R. § 261.2, 45 C.F.R. § 261.12 and 45 C.F.R. § 261.14; and Public Acts of 1996, Chapter 950, § 1115 of the Social Security Act; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007. Amendments filed April 2, 2014; effective July 1, 2014. Amendment filed April 2, 2015; effective July 1, 2015. Emergency rule filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016.

Tenn. Comp. R. & Regs. 1240-01-47-.17 IMMUNIZATIONS AND HEALTH CHECKS FOR MINOR CHILDREN

(1) To be eligible for Families First a caretaker must meet the immunization schedule for all minor children in the AG, as defined by the Department of Health and must have all minor children in the AG screened according to the schedules in the Tennessee Checkups for Children and Teens program. Failure, without good cause, to meet these requirements will result in a 20 percent reduction in the Families First assistance payment until compliance.

(2) The penalty will be assessed whenever it is determined that the appropriate immunization or screening schedules have not been met for a child in the AG unless it is determined that there was good cause for failure to meet the schedule.

(3) Good Cause for failure to meet an immunization or health screening schedule includes a verified illness that resulted in inability to make or keep an appointment, or religious beliefs as a part of the caretaker’s stated faith that prohibits such immunizations and/or health screenings.

(4) The immunization and health check requirement applies to all assistance groups, whether or not the caretaker is included in the AG.

(5) Compliance with the requirement following a period of non-compliance will result in the reinstatement of the 20 percent effective the next calendar month.

(6) The maximum penalty that can be assessed against an AG for failure to comply with this requirement is 20 percent, even if a scheduled immunization and/or health check for more than one child has been missed.

(7) The worker shall advise all Families First applicants and recipients of the availability of standard childhood immunizations through the Health Department.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, and Public Acts of 1996, Chapter 950, §1115 of the Social Security Act.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.18 RELATIONSHIP REQUIREMENTS

(1) To be eligible for Families First, a child must live with a relative (or relatives) within the following degrees of relationship:

(a) Father, mother, brother, sister, uncle, aunt, first cousin, nephew, niece or first cousin once removed. This includes relationships to persons of the preceding generations as denoted by prefixes of grand, great or great-great and those of half-blood;

(b) Stepfather, stepmother, stepbrother and stepsister;

(c) Legally adoptive parents of the child or of the child’s parents, the natural and other legally adopted children of such persons and the blood relatives of such persons as listed in this section at (1)(a) and (b) who is within the 5th degree of relationship to the child for whom Families First is requested. Termination of parental rights does not affect a child’s blood relationship to his natural extended family. However, adoption of a child or his/her parent establishes a legal relationship to a new set of relatives-both immediate and extended families. The adopted relatives within specified degrees of relationship and the blood relatives within specified degrees of relationship qualify to receive Families First for an adopted child;

(d) Legal spouses of any of the persons named in the three above groups. This applies even though the marriage may have been terminated by death or divorce.

(2) In determining whether any of these relationships exist, for the purpose of either granting or denying assistance, only the necessary blood relationship must be established.

History

• Authority: T. C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.90.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.19 EVIDENCE REGARDING RELATIONSHIP

(1) In order to receive Families First for a child, it must be established that the applicant/grantee relative is within one of the specified degrees of relationship to the child. Documentary evidence of relationship is required except as follows:

(2) In the absence of any documentary proof of relationship, the relative’s statement as to the reason(s) there is no proof, plus his/her detailed statement as to how he/she is related to the child, plus at least one notarized statement from a person in a position to know the facts of the situation in which he/she describes the relationship and how he/she knows it to be true will be acceptable.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.90.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.20 LIVING IN THE RELATIVE’S HOME

(1) To be eligible for Families First a child must live in a place of residence maintained by the relative as his or her own home and the home of the child.

(2) A home is considered to be a family setting maintained (or in the process of being established) by the relative who requests Families First for a child in his/her care and control.

Usually the child continuously shares the same household with the applicant relative. A child is considered to be living in the relative’s home as long as the applicant/relative continues to provide care and control of the child even though circumstances may require temporary absence of either the child or the relative from the customary family setting.

(3) A relative has care and control of a child if he/she is providing day to day care, support, supervision, and has major responsibility for these parental obligations.

(4) Temporary Absence.

(a) Temporary absence of the child or relative is one of short duration with specific intentions of returning on or about a specific date. Any absence of either the child or the grantee relative which will extend beyond a 3 month period will be reviewed to determine whether this relative does, in fact, retain the care, supervision, and control of this child for a major portion of each month.

(b) Assistance may be granted to a relative for a child who is temporarily out of the home when, for example, the child:

1. Goes away for a visit;

2. Is in a hospital temporarily for treatment;

3. Attends summer camp;

4. Attends an accredited or approved school away from home for the purpose of academic education or vocational or technical training because school facilities to meet this child’s special needs are not available in his/her own community. It must be documented that the child does have special needs which cannot be met in his/her home community;

5. Attends college or university or other vocational or technical school on a scholarship or other grant that is not available in his/her own community and his/her parents or other relatives retain responsibility for his/her care and control;

6. Is in a psychiatric facility and has not been placed there by a court order and is only temporarily out of the home; or 7. Is in a maternity home.

(c) Assistance may continue to be paid to a relative who is temporarily out of the home when, for example, the relative:

1. Goes away for a visit;

2. Is providing some care for a spouse or child who is hospitalized;

3. Is attending a specialized training facility not available in his/her home community (as through the auspices of Services for the Blind or Vocational Rehabilitation);

4. Is hospitalized for acute illness or injury, is in a maternity home or convalescent care facility for the purpose of obtaining special care not available in the home;

5. Is temporarily absent for the purpose of setting up a home to which he/she will move his/her children;

6. Enters a psychiatric facility and has not been placed there by Court Order and is only temporarily absent from the home for a period of time not to exceed three (3) months.

(d) When it cannot be established that the child lives in the home of the applicant/grantee relative or when the applicant/grantee relative states that the child is temporarily absent, it must be established that the applicant/grantee relative does, in fact, retain full responsibility for the child’s care and control. This determination will be based on the following information:

1. The whereabouts of the child and the date of departure and the expected date of return to the home.

2. The reason for the child’s absence and the person responsible for the plan.

3. The responsibility the applicant/grantee relative has for the child while he/she is away from home; and 4. Actual arrangements being made for the child’s return to the home.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.90.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.21 ELIGIBILITY OF MATERNITY HOME RESIDENTS

(1) Eligibility for a person residing in a maternity home is determined as though the person was currently living in her own home. A period of time spent in a maternity home is defined as a temporary absence from one’s usual home and eligibility is established based on the circumstances which exist in that usual home.

(2) Applications from Maternity Home Residents.

(a) Applications from women who are entering (or plan to enter) a maternity home are accepted and processed in the county of usual residence, i.e., the person’s “home county.”

(b) Applications from women who are in a maternity home are accepted and processed in the county where the maternity home is located.

(3) Eligibility for Applicants in a Maternity Home.

(a) A maternity home resident must meet all technical and financial Families First eligibility requirements as any other Families First applicant.

(b) A pregnant woman with no other children may request Families First for herself only (as a pregnant woman), or a pregnant woman with children living with her may request assistance for herself and her dependent children in the home.

1. As a pregnant woman with no other children in the home:

(i) She must have reached her 6th month of pregnancy;

(ii) She must meet all eligibility requirements as though the unborn child were born and living with her; and (iii) The income of a spouse in the home must be considered and/or the income of a parent of a minor must be deemed to the minor pregnant woman. (See exception for SSI recipients.); and (iv) The applicant must not be receiving Families First as a dependent child with her siblings in the home.

2. As the applicant relative of dependent children in the home:

(i) Pregnancy does not have to be verified (when an applicant relative has children for whom Families First is requested, her pregnancy is not an issue);

(ii) The dependent child(ren) in the home must meet all eligibility requirements and she must meet all requirements as caretaker relative;

(iii) The income of a spouse in the home will be considered and the income of a parent of a minor will be deemed to the minor applicant. (See exception for SSI recipients.);

(iv) The applicant must not be receiving Families First as a dependent child with her sibl ings in the home.

(c) If the home situation is being dissolved, the current home situation of the maternity home resident is considered in determining her eligibility.

(4) Eligibility for Recipients Residing in or Entering a Maternity Home.

(a) No change in a Families First grant or filing unit is made when a recipient is residing in or entering a maternity home.

(b) An alternate payee will be named to receive the grant if necessary.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.90.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.22 INDIVIDUALS NOT ELIGIBLE TO RECEIVE FAMILIES FIRST

(1) Those persons who are inmates of any institution. An inmate is a person living in an institution who is not free to leave on his/her volition or has been committed by court order.

(2) Those persons who are in facilities owned and/or operated by the Department of Corrections.

(3) An A/R cannot receive Families First for a dependent child when the child is residing in a child caring facility (except day care). A child born to a mother who is herself in foster care may receive regular Families First payments if all eligibility requirements are met and the child is actually living in the home with the mother.

(4) A person for whom foster care board or adoption assistance payments are made from federal, state or local funds is not eligible for Families First, with the following exception: for a child for whom adoption assistance is paid, if the child’s exclusion from the AG (along with the exclusion of his/her income) would reduce the amount of Families First benefits the adoptive family would receive, then the child is to be included in the AG and his/her income, including the adoption assistance payment must be counted.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.10.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.23 DEPRIVATION OF PARENTAL SUPPORT/CARE

A child who is otherwise eligible for Families First must be found to be in need by Famili es First standards and to be deprived of parental support and/or care. Deprivation must be due to any one of the following:

(1) Death of one or both parents;

(2) Incapacity of a parent;

(3) Absence/Continued Absence from the home in which the child lives of one or both parents, under the criterion described in 1240-01-47-.26(3)(a) of these rules. (The absent parent may have left only recently or some time previously and deprivation of parental support or care by reason of “Absence/Continued Absence” must be reviewed and substantiated at each determination/redetermination of eligibility as provided in 1240-01-47-.26(5) of these rules); or (4) Unemployment of one or both parents.

(5) Exception: When the custodial parent marries during the period the caretaker is receiving Families First, the caretaker has the option to exclude the new spouse and the new spouse’s income from the AG for the three months following the month of marriage.

(a) Reserved for future use.

(b) Reserved for future use.

(c) Reserved for future use.

(d) Reserved for future use.

(6) Exception: When the custodial and non-custodial parents share custody of their child(ren) on a 50/50 basis, whether deprivation of parental support or care by reason of Absence/Continued Absence from the home exists will be determined under criterion as described in 1240-01-47-.26(3)(a) of these rules.

(a) When parents state they share custody exactly 50/50, it must be determined what the parents are actually doing with regard to co-parenting. Though a court order may divide the children’s living arrangements and parenting responsibilities 50/50, the parents may not, in fact, be following the court order. If the parents do co-parent exactly 50/50 and the parental functions of guidance and physical care are not interrupted, then we must look at the family as an intact family and consider the income of both parents to determine if the family is financially eligible under the Families First guidelines. If the family is under the GIS and CNS standards (reference Gross Income Standard (GIS) and Consolidated Need Standard (CNS) at State Rule 1240-01-50-.20), then the “applicant” parent would be able to receive Families First, if otherwise eligible.

(b) The “applicant” in true 50/50 co-parenting situations will be the parent who is the first to apply for Families First. If one parent is already receiving Families First for their children, and the second parent applies, the second parent’s application will be denied if the parents are still co-parenting 50/50. If both parents come in together to apply, it will be the parents’ responsibility to decide which one of them will receive benefits for the children.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153 and 71-3-154; 71- 3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq. and 42 U.S.C. 603; Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.90, 45 C.F.R. § 233.90(c)(1)(iii) and 233.100, §1115 of the Social Security Act; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007. Amendments filed January 20, 2009; effective April 5, 2009.

Tenn. Comp. R. & Regs. 1240-01-47-.24 DEATH OF A PARENT

A child may be found to be deprived of parental support/care by reason of the documented death of one or both parents.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.90.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.25 INCAPACITY OF A PARENT

(1) A child may be considered to be deprived of parental support/care when at least one of two parents living in the home is incapacitated. Incapacity is deemed to exist when one parent has a physical or mental defect, illness or impairment. The defect, illness or impairment must be:

(a) Supported by competent medical testimony;

(b) Of such a debilitating nature as to reduce substantially, or eliminate the parent’s ability to support or care for the otherwise eligible child; and (c) Expected to last for a period of at least 30 days.

Note: In making the determination of ability to support the Department of Human Services shall take into account the limited employment opportunities for handicapped individuals.

(2) Incapacity shall be determined as follows:

(a) Current receipt by the parent of RSDI or SSI benefits based upon disability or blindness is acceptable proof of incapacity for Families First purposes. However, eligibility for RSDI or SSI benefits is not necessary to prove incapacity. Incapacity for Families First purposes does not require that a defect, illness, or impairment be as severe, or last as long as required for establishing disability or blindness for RSDI or SSI purposes;

(b) Obvious incapacity can be approved in the county office for a period of up to 12 months;

(c) Receipt by the incapacitated person of VA 100% disability benefits based on his/her disability;

(d) Receipt by the incapacitated person of Black Lung benefits based on his/her own condition; or (e) All other claims of incapacity must be forwarded to the Medical Evaluation Unit (MEU).

(3) Review/Redetermination of Incapacity-Six-month Review/Redetermination. The RSDI/SSI disability status must be reverified at each six month case review. When the parent’s RSDI/SSI payment is terminated and the parent claims continued Families First eligibility based on incapacity, it will be necessary to establish incapacity through the Medical Evaluation Unit (MEU). Terminated RSDI/SSI individuals may continue eligible as incapacitated while the necessary information is being secured and submitted to the MEU. If the client fails to cooperate without good cause or refuses to cooperate, the case must be closed.

(4) Periods of Incapacity for Families First.

(a) The period of incapacity established by the Medical Evaluation Unit (MEU) is subsequent to the period of incapacity approved by the county. Verification of continued incapacity must be made at the end of the MEU approval period if continued incapacity is claimed.

(b) On applications/reapplications denied by the MEU but approved on the local level, the MEU’s decision of nonapproval is effective at the end of the approval period made by the county. The case will then be closed by the county office without being resubmitted to the MEU unless additional new medical information is available.

(c) For an active incapacity case denied by the MEU, the case will be closed as soon as adverse notification procedures permit.

(d) If there is any indication the client is no longer incapacitated, the complete medical file will be resubmitted to MEU with current medical-social information including the facts which indicate that incapacity no longer exists.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.90, §1115 of the Social Security Act.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-47-.26 ABSENCE OF A PARENT

(1) A child may be determined to be deprived of parental support or care by reason of the “Absence/Continued Absence” of one or both parents from the home in which the child lives under criterion as described in 1240-01-47-.26(3)(a) below.

(a) As a condition of eligibility for the entire assistance group for Families First, the remaining parent or other applicant/grantee relative must give required information about the absent parent(s) and cooperate with the IV-D child support agency as necessary.

(b) If the facts establish the allegedly absent parent has a separate living arrangement from the child(ren) for whom Families First is requested and is not providing financial maintenance, physical care or guidance sufficient to meet the child’s needs, deprivation of parental support or care by reason of “Absence/Continued Absence” from the home under the criterion described in 1240-01-47-.26(3)(a) below may be determined to exist.

(2) Deprivation of parental support or care by reason of Absence/Continued Absence from the home under criterion as described in 1240-01-47-.26(3)(a) below may exist due to any of the following:

(a) Divorce of natural parents and only one or no parent remains in the home with the child(ren);

(b) Separation of parents;

(c) Desertion of one or both parents;

(d) Imprisonment of one or both parents;

(e) Institutionalization of one or both parents;

(f) At least one parent is serving a court-imposed sentence of unpaid public service while residing at home;

(g) Single parent adoptions.

(3) Deprivation of parental support or care by reason of “Absence/Continued Absence” from the home exists when:

(a) At least one parent is absent from the home and the nature of the absence:

1. Interrupts or terminates the parent’s functioning as a provider of financial maintenance, physical care or guidance for the child; and 2. The known or indefinite duration of the absence precludes counting on the parent to perform his/her function of planning for the present support or care of the child.

If these conditions exist, the parent may be absent for any reason, and may have left only recently or some time previously. (Reference 1240-01-47-.26(3)(b) and (f) below for “Absence” due to court-imposed unpaid public service and active duty in the uniformed services of the U.S.).

(b) “Absence” Due to Court-Imposed Unpaid Public Service.

1. A child is to be considered deprived of parental support and/or care by reason of continued absence from the home when:

(i) A parent has been convicted of an offense and is under sentence of a court; and (ii) The sentence requires, and the parent is performing, unpaid public work or community service during working hours which totally precludes gainful employment; and (iii) The parent is permitted by the court to live at home while serving the sentence.

2. Real and personal property belonging to the convicted parent is to be treated in accordance with rule 1240-01-50-.07(2).

3. Any unearned income except SSI belonging to the convicted parent and excess above his/her own needs will be counted as available to the family.

4. The convicted offender living at home and performing unpaid work:

(i) Cannot be included in the aid group;

(ii) Cannot be the payee;

(iii) Is not a Families First applicant/recipient so is not required to participate in Families First Employment and Training;

(iv) Must not be treated as an absent parent in relation to the child support requirements.

(c) Alleged Parent Defined. The natural father of a child born out of wedlock whose paternity has not been judicially established.

1. The mother or other relative applying for assistance for such a child is required to provide all the facts known to establish the identity of the alleged father and child unless good cause exists for not doing so. The relative is also advised of services available to assist in such identification process.

(d) In single parent adoptions, absence of one parent exists because there is only one parent. There are no child support requirements in these cases.

(e) Stepparent Cases. Deprivation on the basis of absence exists even though the parent who remains in the home has remarried and the stepparent is also in the home.

1. To determine whether such a child is in need according to Department standards, the income of the stepparent living in the home will be deemed to be available to the stepchildren. In addition, the income of a stepparent in the military service and outstationed will be deemed to the stepchildren.

(i) Exception: When a Families First custodial parent marries during receipt of assistance, exception at 1240-01-47-.23(5) applies.

(f) Active Duty in Uniformed Service of the US (Army, Navy, Air Force, Marine Corps, Coast Guard, Environmental Sciences Administration, and US Public Health Service).

Absence does not exist when the parent is away from the home in which a child is living (for whom Families First is requested/received) solely by reason of the parent’s performance of active duty in a uniformed service of the US. Likewise a stepparent in the uniformed service is considered as “in the home” for purposes of deeming income to the stepchildren (see Exception in paragraph (e) above). The A/R will be required to apply to have an allotment sent directly to him/her if a grant is approved.

(4) Duration of Absence. Where “Absence/Continued Absence” under the criterion described in 1240-01-47-.26(3)(a) above is determined to exist, the absent parent may have left only recently or some time previously. Deprivation of parental support or care by reason of “Absence/Continued Absence” must be reviewed and substantiated at each determination/redetermination of eligibility as provided in 1240-01-47-.26(5) below.

(5) Verification/Documentation. The fact of continued absence (when absence is the basis for deprivation of support/care) must be considered and substantiated at each determination/redetermination of eligibility.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153 and 71-3-154; 71- 3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq. and 42 U.S.C. 603; Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.90 and 45 C.F.R. § 233.90(c)(1)(iii), §1115 of the Social Security Act; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007. Amendments filed January 20, 2009; effective April 5, 2009.

Tenn. Comp. R. & Regs. 1240-01-47-.27 UNEMPLOYMENT OF A PARENT

(1) A child may be considered to be deprived of parental support/care based on the unemployment of a parent when the principal wage earner (PWE) parent in the home meets all the conditions set forth in this section.

(2) The principal wage earner is the parent (in a two parent home) who had the greater amount of earnings in the 24 month period ending with (and including) the month immediately preceding the application month. If both parents have the same amount of income, the family and the agency will designate the principal wage earner. The principal wage earner must meet the following conditions:

(a) Is not working and has not been employed for 30 days prior to receipt of assistance; or (b) Is employed less than 100 hours per month; or (c) Is employed 100 hours per month or more; but 1. The excess is of a temporary nature; and 2. The 100 hour rule was met in the 2 months prior to the current month and is expected to be met in the month following the current month; and (d) Is not on strike; and (e) Does not refuse to apply for or accept unemployment compensation to which he/she may be entitled; and (f) Has not refused, without good cause, a bona fide offer of employment or training for employment within one (1) month prior to the effective month of eligibility or during the receipt of assistance; and (g) Has a recent connection to the work force, which is established if:

1. The PWE parent is currently receiving unemployment compensation; or 2. Received at least one unemployment compensation payment during the 12 months immediately preceding the month of application for Families First; or 3. The PWE parent earned at least $50 in each of any 6 quarters within a 13 calendar quarter period ending within one (1) year prior to application for Families First.

(3) Once eligibility as an unemployed parent has been determined:

(a) The PWE must comply with the Families First work requirement on her/his Personal Responsibility Plan; and (b) The second parent in the home must comply with the Families First work requirement on her/his Personal Responsibility Plan.

(4) Reserved for future use.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, and 71- 3-154(g); 71-3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq., 42 U.S.C. § 604(i); 42 U.S.C. § 607(c), (d) and (e); 42 U.S.C. § 608(a)(2) and (3), 42 U.S.C. § 608(b)(3); 42 U.S.C. § 609(a)(14), 42 U.S.C. §§ 654 and 657 and 42 USC § 1315(a), Public Acts of 1996, Chapter 950, and 45 C.F.R. § 233.90, 45 C.F.R. 233.100, 45 C.F.R. § 261.2, 45 C.F.R. § 261.12 and 45 C.F.R. § 261.14 and §1115 of the Social Security Act; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Chapter 1240-01-48 Child Support Requirements

Tenn. Comp. R. & Regs. 1240-01-48-.01 CHILD SUPPORT REQUIREMENTS

(1) Introduction. The Office of Child Support Services is the agency with responsibility for the administration of the requirements under Title IV-D of the Social Security Act to locate absent parents, establish paternity, collect support payments, and recover any overpayments due to the family’s retention of assigned support.

(2) Support is defined as court-ordered or voluntary money payments made to or on behalf of, any member of a Families First assistance unit by an absent parent (legally recognized parent, or natural parent who admits paternity). Such support is assigned to the state, pursuant to state law, as a condition of Families First eligibility. Spousal support is also assigned if it was ordered at the time of the child support order by a court.

(3) Conditions of Families First Eligibility Relating to Child Support. As a condition of Families First eligibility for him/herself, each applicant for or recipient of aid on behalf of a child must:

(a) Assign to the state any rights to support from any other person that the A/R may have in behalf of any member of the assistance group. This assignment includes past support rights which have accrued at the time of such assignment. There is no waiver of the assignment requirement.

(b) Cooperate with the state in:

1. Identifying and locating the absent parent(s);

2. Establishing paternity if necessary;

3. Obtaining support payments.

4. Identify any third party that may be liable for care and services available under the state’s Title XIX state plan in behalf of the applicant/recipient or any other family member for whom the A/R is applying for or receiving assistance.

(c) As an element of cooperation, turn over to the state any support paid directly to the applicant/recipient, whether voluntary or court-ordered.

(4) Summary of the Treatment of Support Payments.

(a) When an assignment is in effect on a Families First case, any support paid to or on behalf of the assistance group members must go to the Department to be disbursed in accordance with federal regulations.

(b) Support may or may not be court ordered. Prior to the establishment of an order of support, the actual monthly amount of voluntary support, less the child support bonus, is tested against the grant or appropriate need standard to (re)determine eligibility. In case of court ordered support, the court ordered amount, less the child support bonus, is tested against the appropriate need standard. Any excess amount paid over the court ordered amount of support by the absent parent is used by Child Support to reimburse arrearages owed the state and federal governments for the Families First payment. If there are no arrearages, the overage is credited to “futures” to be used for reimbursement purposes as needed.

(c) If the support payment, less the child support bonus, is insufficient to meet the family’s needs by DHS grant standards, the family receives the full Families First grant to which it is entitled, disregarding the support. The support payment is used to reimburse state and federal Families First funds expended on the family.

(d) If the support payments do meet the needs of the family (or children), the Families First case must be terminated.

(5) Cases Subject to Support Procedures. Any Families First case in which eligibility is based upon absence of a parent is subject to child support requirements and will be referred to Child Support upon approval of the Families First case and at the time of an addition of a child(ren) to the assistance group. Cases in which the grant is less than ten dollars ($10.00) must also be referred to IV-D. Referrals for the absent parent(s) of a minor parent who is the caretaker of her Families First case or a minor parent who is a dependent child in a Families First case are also required. The following types of Families First AGs are exempt from support processes and are not referred to the IV-D agency even where eligibility is based on absence:

(a) “Caretaker Only” cases in which the needy child is an SSI recipient.

(b) Absence due to court ordered public service in lieu of incarceration.

(c) Single parent adoptions.

(d) Assistance units consisting of a pregnant woman only.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, and 71- 3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq., 42 U.S.C. § 608(a)(2) and (3), 42 U.S.C. 608(a)(6)(A), 42 U.S.C. § 608(b)(3), 42 U.S.C. § 609(a)(5) and (14), and 42 U.S.C. §§ 654 and 657; Public Acts of 1996, Chapter 950; 45 C.F.R. 232; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Tenn. Comp. R. & Regs. 1240-01-48-.02 REFERRALS BY IV-A TO THE IV-D AGENCY

(1) Upon approval of Families First benefits for a case which is subject to child support procedures, pertinent information will be referred to the IV-D agency where it will be used in locating the absent parent(s), establishing paternity, obtaining and enforcing support orders, and/or redirecting support payments to this department.

History

• Authority: T.C.A. §§ 4-5-201, et seq., and 71-1-105, Public Acts of 1996, Chapter 950; and 45 C.F.R. 232.2.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-48-.03 ASSIGNMENT OF SUPPORT RIGHTS

As a condition of eligibility, the Families First applicant/recipient is deemed to have assigned to the state any rights to support, on behalf of all members of the Families First assistance group, and which have accrued at the time the assignment is made. The assignment requirement cannot be waived. If a client refuses to assign support rights, Families First assistance will be denied or closed.

(1) Notice to the A/R of the Assignment Requirement. A written and verbal explanation of this eligibility requirement and the sanctions for refusal must be given to each Families First applicant to whom the requirement applies.

(2) Refusal to Assign Support Rights.

(a) If an applicant/recipient refuses to assign support rights, Families First assistance will be denied or closed.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, and 71-3-124; Public Acts of 1996, Chapter 950; 45 C.F.R. 232.11; and § 1115 of the Social Security Act.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-48-.04 COOPERATION IN CHILD SUPPORT ACTIVITIES

Cooperation in obtaining support and establishing paternity is a condition of Families First eligibility for each applicant/recipient unless good cause for refusal to cooperate is established. The determination of whether a client has refused to cooperate is a Child Support Enforcement function. The determination of whether good cause exists for a waiver of the cooperation requirement is the responsibility of the IV-A agency.

(1) Cooperation Requirements. Each A/R is required to cooperate by engaging in any activity or providing information necessary for child support enforcement, including but not limited to the following:

(a) Assisting in identifying and locating the absent parent of each child in the assistance group;

(b) Assisting in the establishment of paternity for each Families First child for whom this service is appropriate;

(c) Assisting in obtaining support for each member of the assistance group;

(d) Appearing for scheduled interviews as necessary to provide relevant verbal or written information or documentary evidence;

(e) Appearing as a witness in court or other hearings or proceedings, if necessary;

(f) Providing information, or attesting to lack of information, under penalty of perjury;

(g) After assigning support rights, turning over to DHS any and all support payments which are covered by the assignment and are received directly by the A/R either from the absent parent or through a court or other third party.

(2) Notice to the Applicant/Recipient. At application, a written and verbal explanation of the requirement for cooperation with child support activities and the penalties for refusal to cooperate will be provided in addition to information regarding the client’s right to claim good cause for refusal to cooperate. If the client claims good cause for non-cooperation or requests further clarification, he/she shall be given a further written notice describing the circumstances and evidence necessary for a good cause determination.

(a) Acknowledgment of Notice 1. The client’s signature on the Department’s application for assistance acknowledges that he/she understands:

(i) That support rights are assigned to the state;

(ii) Any support payments received by the client after approval of the Families First payment must be turned over to DHS; and (iii) How to forward such payments to DHS.

2. Reserved for future use.

(3) Refusal to cooperate.

(a) It is the responsibility of Child Support Enforcement to determine if a client has failed or refused to cooperate.

(b) Reasonable judgment will be exercised in determining whether there has been willful non-cooperation or extenuating circumstances.

(c) If the client has refused to cooperate, the Department will apply the sanctions to the case (unless there is good cause for the lack of cooperation) and notify the client of the action.

(d) Failure to cooperate (without good cause) and the resultant application of sanctions to the case do not preclude support actions on the case by the IV-D agency.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, and 71-3-124; 42 USC § 654(29); 42 USC § 1315(a); and PL 104-193 § 301(a).
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002.

Tenn. Comp. R. & Regs. 1240-01-48-.05 GOOD CAUSE FOR REFUSAL TO COOPERATE

A client claiming good cause for refusal to cooperate has the burden of establishing the existence of a good cause circumstance.

(1) Client Requirements. To establish good cause, the client will be required to:

(a) Specify the circumstances which he/she believes provide sufficient good cause for noncooperation;

(b) Substantiate the good cause circumstances; and (c) If requested, provide sufficient information to permit an investigation.

(2) Good Cause Circumstances. Only when one of the following circumstances is substantiated will it be determined that the client’s cooperation is against the best interests of the child and there is good cause for refusal to cooperate:

(a) The client’s cooperation is reasonably anticipated to result in physical or serious emotional harm to the child for whom support is to be sought; or (b) The client’s cooperation is reasonably anticipated to result in physical or serious emotional harm of such nature or degree that it reduces his/her capacity to provide adequate care for the child; or (c) Proceedings to establish paternity or collect support in the particular case would be detrimental to the child because the child was conceived as a result of incest or forcible rape; or (d) Legal proceedings for the adoption of the child are pending before a court of competent jurisdiction; or (e) The client is currently (for a period of not more than three months) being assisted by a public or licensed private social agency to decide whether to keep the child or relinquish for adoption.

(3) Proof of Good Cause Claims.

(a) The decision of good cause will be based upon evidence supplied by the client within 20 days after the claim is made. Only in exceptional situations, and with supervisory approval, will the Department grant a client’s request for an additional period of time.

Otherwise, the claim will be denied.

(b) The determination may be based upon an investigation by the Department in certain limited circumstances, such as in cases of anticipated physical harm when the A/R states there is no documentary evidence, and in cases where the evidence submitted by the A/R is questionable and so requires further verification and/or investigation.

(c) Corroborative Evidence.

1. Documentary Evidence. Evidence submitted by the client will be carefully evaluated to determine whether it actually verifies the claim. The following types of evidence may be used to substantiate a good cause claim:

(i) Birth certificates or medical or law enforcement records which indicate that the child was conceived as the result of incest or forcible rape;

(ii) Court documents or other records which indicate that legal proceedings for adoption are pending before a court of competent jurisdiction;

(iii) Court, medical, criminal, child protective services, social services, psychological, or law enforcement records which indicate that the absent parent might inflict physical or emotional harm on the child or caretaker relative if cooperation is required;

(iv) Medical records which indicate emotional health history and present emotional health status of the caretaker relative or the child for whom support would be sought, or written statements from a mental health professional indicating a diagnosis or prognosis concerning the emotional health of the caretaker relative or the child.

(v) A written statement from a public or licensed private social agency that the A/R is being assisted by the agency to resolve the issue of whether to keep the child or relinquish the child for adoption; and (vi) Notarized statements from individuals other than the A/R with knowledge of the circumstances on which the good cause claim is based.

2. Emotional Harm Documentation. For every good cause determination based in whole or in part upon anticipated emotional harm to the child or caretaker, the following points will be considered:

(i) The present emotional state of the individual;

(ii) The emotional health history of the individual;

(iii) The intensity and probable duration of the emotional impairment;

(iv) The degree of cooperation to be required; and (v) The extent to which the child will be involved in the paternity establishment or support enforcement activity.

3. Securing Documents. The client has the primary responsibility for obtaining any necessary documents. However, the Department will secure information that is available to it through automated sources or when it is more reasonable for the agency to secure the information.

4. Additional Information Required. If an examination of the evidence indicates that additional information is necessary in order to make a decision, the Department will promptly notify the client, specifying the type of document which is needed.

5. Documentary Evidence Not Available - Physical Harm. An investigation will be conducted when a good cause claim of anticipated physical harm appears credible without substantiating evidence and such evidence is not available.

6. Documentary Evidence Insufficient for Determination. If the A/R’s statement and the evidence submitted do not provide a sufficient basis for making a decision, the Department may further verify the claim and, where necessary, conduct an investigation. The investigation may include contact of the absent parent if necessary for a determination. Prior to such contact, however, the client will be notified so that he/she may:

(i) Present additional corroborative evidence to make the contact unnecessary;

(ii) Withdraw the application for assistance or have the case closed; or (iii) Have the good cause claim denied.

(4) Granting or Continuation of Assistance During Good Cause Determination. If the client has complied with the requirement for providing corroborative evidence, assistance shall not be denied, delayed, or discontinued pending the determination of whether or not good cause for refusal to cooperate exists.

(5) Decisions on Good Cause Claims.

(a) Time Standards for Processing Claim.

1. A final decision on each good cause claim must be made within 45 days of the date the claim is made.

2. The time standard may be exceeded only if:

(i) Information required to verify and/or investigate the claim could not be obtained within the time standard, or (ii) The client did not provide corroborative evidence within the 20 day period specified in (3)(a) above and supervisory approval for the extension has been granted.

3. The client must be advised promptly in writing of the decision and the basis for the determination.

(b) Approval of Good Cause Claim. If the evidence and/or the investigation substantiate that good cause exists, the Department will notify the client, advising him/her that the Office of Child Support Services will not proceed with any activities to establish paternity and/or secure support in relation to the particular absent parent and child(ren) as long as the good cause circumstances exist.

(c) Periodic Review of Approved Good Cause Claims. The decision will be reviewed at each eligibility redetermination only if the original decision was based on a circumstance that is subject to change.

(d) Denial of Good Cause Claim.

1. A good cause claim may be denied if:

(i) The client has not furnished evidence within 20 days and has not requested assistance in obtaining the evidence nor requested and been granted an extension of the time limit;

(ii) The evidence submitted does not substantiate the claim and the client has not submitted additional evidence which does corroborate it;

(iii) The client has not provided information necessary for an agency investigation if this is needed; or (iv) Documentary evidence or agency investigation substantiate that the claim is not valid.

2. If the decision is that good cause does not exist, the client will be notified of the decision and given an opportunity to cooperate, withdraw the application for assistance, or have the case closed. In the event of continued refusal to cooperate, the IV-D sanctions will be applied to the case.

3. A redetermination of a previously denied claim of good cause will be made only if there is new documentary evidence or information provided which indicates a need for further action or investigation. A client who has been penalized for failure to cooperate after his/her good cause claim was denied must remain under penalty unless good cause is later substantiated (or the client demonstrates willingness to cooperate.)

(6) Coordination with the IV-D Agency. The IV-D agency will be kept advised of good cause activities on approved Families First cases.

History

• Authority: T.C.A. §§ 4-5-201, et seq., and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. 232.40 through 232.47.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-48-.06 CHILD SUPPORT SANCTIONS

(1) If a caretaker relative fails or refuses to comply with either the assignment requirement or, without good cause, the cooperation requirement, establishment of paternity, and establishing or modifying a child support order, the assistance group will be ineligible for Families First until compliance is met. Cooperation is required by all caretakers regardless of whether they are included in the assistance group.

(a) Reserved for future use.

(2) Notice to the A/R. The application of sanctions to a case for refusal to assign support rights or to cooperate in support activities will be accompanied by advance notice.

(3) Reserved for future use.

(4) Discontinuance of Sanctions. Sanctions for failure or refusal to comply with the child support requirements will be removed if the client demonstrates willingness to comply.

(a) If, upon reapplying for Families First the previously non-compliant caretaker agrees to assign support rights and to cooperate fully with all child support requirements, compliance will be considered to have occurred, and will continue to be assumed until he/she demonstrates otherwise.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, and 71- 3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq., 42 U.S.C. § 608(a)(2) and (3), 42 U.S.C. 608(a)(6)(A), 42 U.S.C. § 608(b)(3), 42 U.S.C. § 609(a)(5) and (14), and 42 U.S.C. §§ 654 and 657; Public Acts of 1996, Chapter 950; 45 C.F.R. 232.12; § 1115 of the Social Security Act; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Tenn. Comp. R. & Regs. 1240-01-48-.07 BUDGETING PROCEDURES

(1) Applications.

(a) Support from an absent parent is considered as currently available income in the initial determination of eligibility. Support payments, less the child support “bonus”, are used to test eligibility. If the family is eligible, a grant is approved excluding the support.

(b) Support received during the period the application is pending may be retained by the family and counted as income in determining the amount of the initial payment due the family. The client must forward support payments to the state beginning with the first payment received after being notified of the Families First approval. Any support received and retained after approval is subject to IV-D recovery.

(2) Active cases. For active Families First cases not under sanctions, the Families First payment is computed without regard to support payments except in the following types of cases:

(a) If the recipient or IV-D reports (or the worker discovers) that support is being received directly and retained:

1. If the recipient refuses to agree to submit any subsequent support payments to IV-D, the worker must apply sanctions by closing the case.

2. If the A/R agrees to submit future support payments to IV-D, no action will be taken by the IV-A worker unless the amount of support causes ineligibility, or IV- D notifies IV-A that the A/R has failed to follow through with forwarding the support or has refused to cooperate in any way with recovery efforts.

(b) When support collections plus other income equal or exceed the Consolidated Need Standard (CNS) for the family, IV-D will notify IV-A to redetermine eligibility for Families First. Such redetermination must be completed within 30 days of the notification of the collection. IV-A must then notify IV-D of the result. Budget calculations will be based on the CNS minus the voluntary/court ordered amount of the support collected after deduction of the child support bonus, plus other net countable income. The total amount of any retained voluntary support minus the child support bonus is counted in this redetermination. The ordered amount or the actual amount of support collected, whichever is less, is counted in this redetermination when the retained support is court ordered. If there is a deficit, assistance should continue. If the Department terminates the grant, only the excess of the court ordered amount of the collection over the grant amount will be paid to the family from the collection causing ineligibility.

(c) When a current month’s collection exceeds the amount required to pay the bonus and to reimburse the federal and state shares for the Families First grant for that month, the excess up to the court ordered amount must be distributed to the family by IV-D. Such excess payments are counted as income in the Families First budget for the month they are received by the family.

History

• Authority: T.C.A. §§ 4-5-201, et seq., and 71-1-105, Public Acts of 1996, Chapter 950; and 45 C.F.R. 232.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-48-.08 TREATMENT OF SUPPORT PAYMENTS

(1) When an assignment is in effect on a Families First case, any support paid on behalf of the assistance group members must go to the state to be disbursed by the IV-D agency in accordance with federal regulations.

(2) If the payments are insufficient to meet the AG’s needs by DHS standards, the AG receives the full grant to which it is entitled, disregarding the support, which is used to reimburse state and federal Families First funds expended on the family.

(3) If the payments do meet the needs of the AG, the Families First grant must be terminated and the current support payments will then go to the AG. Should payments not continue at a level sufficient to meet the AG’s needs, the family may reapply for Families First.

(4) When support is collected by the IV-D agency in behalf of an AG receiving Families First cash assistance, the collected amount of support will be paid to the AG in an amount up to the lesser of the collection or the AG’s unmet need.

(a) Unmet need is determined by subtracting the following from the AG’s consolidated need standard:

1. The grant amount paid to the AG in the month the collection is received by the IV-D agency; and 2. The income counted in the budget to determine the amount of the AG’s grant in the month the collection is received by the IV-D agency.

History

• Authority: T.C.A. §§ 4-5-201, et seq., and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. 232.20 through 232.21.
• Administrative History: Original rule filed December 2, 1996; effective 15, 1997.

Chapter 1240-01-49 Families First Work Requirements

Tenn. Comp. R. & Regs. 1240-01-49-.01 FAMILIES FIRST WORK REQUIREMENTS

(1) The Department of Human Services administers the Families First Program directly and through contractual arrangements with other entities to provide or arrange for employment, training, education, and support services for Families First recipients. All Families First adult recipients in the AG must participate in the Families First work requirements unless they are exempt from this requirement.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, and 71- 3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq., 42 U.S.C. § 602, 42 U.S.C. § 607(c), (d) and (e), 42 U.S.C. § 608 and 42 U.S.C. § 609; Public Acts of 1996, Chapter 950, and 45 C.F.R. 250, 45 C.F.R. § 260.30, 45 C.F.R. § 260.31, 45 C.F.R. § 261.2, 45 C.F.R. § 261.10, 45 C.F.R. § 261.30, 45 C.F.R. § 261.31, and 45 C.F.R. § 261.32; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public Necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Tenn. Comp. R. & Regs. 1240-01-49-.02 EXEMPTION DETERMINATION

(1) The following individuals are exempt, except as otherwise provided in this Chapter, from participation in the Families First/TANF work and/or educational requirements:

(a) An individual who is disabled. An individual is disabled if the individual:

1. Has been approved for Social Security Disability (Title II) or Supplemental Security Income on the basis of his/her disability;

2. Receives Veterans benefits on the basis of his/her one hundred percent (100%) disability; or 3. Receives Black Lung benefits based on his/her disability;

(b) An individual who is determined to be incapacitated for the purpose of participating in a work and/or educational activities requirement. The incapacity determination shall be made according to paragraph (2);

(c) An individual for whom an incapacity determination, under paragraph (2), is pending;

(d) An individual who is age sixty-five (65) or older;

(e) An individual who is needed in the home to care for an in-home relative who is disabled as determined by a physician or a licensed or certified psychologist, and no other appropriate member of the household is available to provide the needed care;

(f) An individual who is the caretaker, in a single-parent household, of a child under one (1) year of age; provided, however, the Department may reduce the exemption to sixteen (16) weeks for persons who were exempt but chose to volunteer to fulfill the work and/or educational requirements;

(g) An individual who is one (1) of two (2) parents in a two-parent household caring for a child under age sixteen (16) weeks; and (h) A non-parental caretaker who chooses not to be included in the assistance group.

(2) Evaluation of Disabled Individuals and Individuals Alleging Incapacity for Participation in Work and/or Educational Activities.

(a) The Department shall refer a Families First/TANF applicant/recipient, who alleges incapacity, to the Department’s Medical Evaluation Unit (MEU) when:

1. The Families First/TANF recipient alleges incapacity to work that is expected to last for a period of at least (30) days; or 2. An incapacity evaluation is necessary to determine deprivation of parental support. MEU shall determine whether incapacity exists that would deprive a child of parental support.

(b) For purposes of the MEU determination, incapacity is deemed to exist when the defect, illness, or impairment is:

1. Supported by competent medical evidence; and 2. Expected to last for a period of at least thirty (30) days.

(c) Review of MEU Incapacity Status. For incapacity determinations made by the MEU, incapacity status shall also be reviewed and verified at the end of the MEU approval period if continued incapacity is claimed.

1. Individuals who were recently terminated from Social Security Disability/SSI disability benefits who claim continued incapacity may continue to be exempt as incapacitated while the necessary information is being secured and submitted to the MEU.

2. If the client fails to cooperate with the MEU without good cause or refuses to cooperate, the exemption on the basis of incapacity ends.

(d) Period of Incapacity for Families First/TANF recipients exempt from work and/or educational requirements.

1. At any time, if there is any indication the Families First/TANF recipient is no longer incapacitated, the recipient’s complete medical file shall be resubmitted to the MEU with current medical-social information, including the facts which indicate that incapacity no longer exists.

2. For an active incapacity exemption denied by the MEU, the exemption will be terminated as soon as the recipient is notified.

(e) Effective July 1, 2014, the Department shall refer all Families First recipients/applicants, who are disabled or who are deemed incapacitated for longer than six (6) months, as determined by MEU, to the Division of Rehabilitative Services (DRS) to undergo an evaluation. The DRS shall determine, under Chapter 1240-08-04, whether the Families First/TANF recipient/applicant is eligible for DRS services that would provide the individual an opportunity to voluntarily fulfill the Families First/TANF work and/or educational activities requirement, consistent with his/her capabilities.

1. Any Families First/TANF recipient who voluntarily participates in the DRS program shall have the opportunity to volunteer for the work and/or educational activities requirement for Families First/TANF.

2. There is no requirement for financial participation in the DRS program by the individual for receiving any vocational rehabilitation services if the individual is determined eligible for Families First/TANF cash assistance.

(3) Voluntary Participation in Families First/TANF Work and/or Educational Activities.

(a) Any individual who is exempt from the Families First/TANF work and/or educational requirements under this rule, except SSI recipients and Child Only caretakers, may choose to volunteer to participate in the work and/or educational activities.

(b) Any individual who voluntarily chooses to participate in the Families First/TANF work and/or educational requirements may retain exempt status if he/she chooses not to comply, except those individuals who are caretakers, in a single-parent household, of a child at least sixteen (16) weeks of age.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-102, 71-3-104, 71-3- 104(h)(3)(A)-(G), and 71-3-108(d)(2)(D); 42 U.S.C. §§ 601 et seq., 42 U.S.C. § 602; 42 U.S.C. § 607(c), (d), and (e); 42 U.S.C. § 608; 42 U.S.C. § 608(b); 42 U.S.C. § 609, 42 U.S.C. § 1315(a); Public Acts of 1996, Chapter 950, 45 C.F.R. 233.90(c)(iv), and 45 C.F.R. 250.30, § 1115 of the Social Security Act; 45 C.F.R. § 260.30; 45 C.F.R. § 260.31; 45 C.F.R. § 233.90, 45 C.F.R. § 261.2(b) through (m); 45 C.F.R. § 261.2(n); Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Public Acts of 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007. Repeal and new rule filed April 2, 2014; effective July 1, 2014.

Tenn. Comp. R. & Regs. 1240-01-49-.03 FAMILIES FIRST WORK REQUIREMENT PROVISIONS

(1) An individual, unless otherwise exempt, will be required to participate in work or work-related activities for thirty (30) hours per week as set forth in his/her Personal Responsibility Plan (PRP). At least twenty (20) hours must be spent working in core activities; the remaining ten (10) hours must be spent in core or non-core activities.

(2) Activities that will be included as a part of the Families First work requirements include:

(a) Core Activities. Core Activities must be used to meet the first twenty (20) hours of the work requirement and can be used to meet the entire work requirement. The use of core activities to meet the Families First work requirement is subject to allowances or restrictions on these activities, as defined by federal law and regulation. Unless expanded through federal law or regulation, core activities are:

1. Unsubsidized Employment.

2. Job search and job readiness assistance.

3. Work Experience.

4. Community Service.

5. Vocational Education.

6. On-the-job training.

7. Subsidized work. Families First participants can be placed in private or public sector subsidized work positions.

(b) Non-core Activities. Non-core activities can be used to fulfill up to ten (10) hours of the Families First work requirement as long as the recipient is engaged in twenty (20) hours of core activities. The use of non-core activities to meet the Families First work requirement is subject to allowances or restrictions on these activities, as defined by federal law and regulation. Unless expanded through federal law or regulation, noncore activities are:

1. Job Skills Training Directly Related to Employment.

2. Education Directly Related to Employment.

3. Satisfactory attendance at secondary school or in a GED course, for those who do not yet have a high school diploma.

(c) Reserved for future use.

(d) Reserved for future use.

(e) Reserved for future use.

(f) Reserved for future use.

(g) Reserved for future use.

(h) Reserved for future use.

(i) Reserved for future use.

(j) Reserved for future use.

(k) Reserved for future use.

(3)

Reserved for future use (4) The Families First work requirement can be met through satisfactory attendance at secondary school, in the case of a minor parent recipient who:

(a) has not completed secondary school; and (b) is a caretaker who is nineteen (19) years of age or younger.

(5) A minor parent who is eligible as a dependent child must attend school. Failure to comply with this requirement will result in the needs of the non-compliant individual being removed from the grant.

(6) A caretaker who is in the residential program at Renewal House is in compliance with the Families First work requirement if she is in good standing with Renewal House program requirements.

(7) Participation in Vocational Rehabilitation services will meet the Families First work requirement.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, and 71- 3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq., 42 U.S.C. § 602, 42 U.S.C. § 607(c), (d)(1) through (12) and (e), 42 U.S.C. § 608, 42 U.S.C. § 609; Public Acts of 1996, Chapter 950, and 45 C.F.R. §§ 250.30 through 32; 45 C.F.R. 234.60, § 1115 of the Social Security Act; 45 C.F.R. § 260.30, 45 C.F.R. § 260.31, 45 C.F.R. § 261.2(b) through (m), 45 C.F.R. § 261.2(n), 45 C.F.R. § 261.10, 45 C.F.R. § 261.30, 45 C.F.R. § 261.31 and 45 C.F.R. § 261.32; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Tenn. Comp. R. & Regs. 1240-01-49-.04 FAILURE TO COMPLY, CONCILIATION, GOOD CAUSE, AND SANCTIONS

(1) The Department shall sanction a Families First/TANF recipient who is required to participate in a work and/or educational activities requirement and who fails without good cause, to participate in the required work and/or educational activities in his/her Personal Responsibility Plan.

(a) Failure to participate in required work and/or educational activities includes, but is not limited to, refusal to cooperate in the required activities, failure to make satisfactory progress in the required activities, failure to meet minimum attendance standards for the required activities, refusal to participate in the activities directed towards the recipient’s employment goals, falsifying employment documentation, refusal to accept suitable employment, refusal to participate in Family Focused Solutions (FFS) if FFS hours are being used as job search/ job readiness hours, or voluntarily quitting employment without good cause.

1. Following non-compliance with required work and/or educational activities, a sanction shall make the entire assistance unit (AU) ineligible during the mandatory period of case closure when the Families First/TANF recipient to be sanctioned is the caretaker or either parent in a two (2) parent AU.

2. Following non-compliance with required work and/or educational activities, a sanction shall be applied to remove a Families First/TANF recipient from the AU when that individual is a minor parent who is also a dependent child in an AU.

(b) Failure to make satisfactory progress shall be determined by a Families First/TANF recipient’s grades in educational activities, objective performance measurements of the recipient’s employer, or other objective criteria for the measurement of a recipient’s performance for each specific work and/or educational activity. The recipient is responsible for obtaining such written documentation as the Department determines may be necessary to verify satisfactory progress.

(c) Exempted Individuals Volunteering. If a Families First/TANF recipient chooses to volunteer to participate in the work and/or educational activities requirement, the recipient may retain exempt status if he/she choose not to comply, except those individuals who are caretakers, in a single-parent household, of a child at least sixteen (16) weeks of age.

(2) Attendance Standards and Good Cause.

(a) All Families First/TANF work and/or educational activities requirements are mandatory, unless otherwise provided in this Chapter. Recipients shall be sanctioned for any unexcused absences from Families First/TANF work and/or educational activities requirements. A recipient’s first unexcused absence is considered non-compliance and is grounds for a sanction.

(b) Good cause may excuse a Families First/TANF recipient’s failure to comply with their work and/or educational activities requirement. Good cause reasons include, but are not limited to, the following:

1. Recipient is determined through medical evidence to be physically or mentally unable to perform the work and/or educational activities requirement assigned;

2. Recipient lacks child care;

3. Recipient has a serious household emergency;

4. Recipient meets a work and/or educational activities requirement exemption criterion;

5. Recipient’s health or safety is at risk;

6. Recipient lacks transportation;

7. Recipient voluntarily quits employment with good cause as set forth in Rule

Tenn. Comp. R. & Regs. 1240-01-49-.05 APPEALS AND HEARINGS

The Department of Human Services is responsible for hearing appeals on any disputed matter relating to Families First eligibility and amount of grant and any Families First work requirement dispute including but not limited to a referral to Families First service providers, effective participation in Families First work requirements, whether good cause for failure to participate exists, and imposition of sanctions. These appeals will be conducted according to appeal procedures set forth in Chapter 1240-5 and Title 4, Chapter 5, Part 3 of the Administrative Procedures Act and which shall not be more narrow than those in existence on August 31, 1996.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 4-5-301, et seq., 71-1-105, 71-3-152, 71-3-153, 71-3-154, and 71-3-158(d)(2)(D); 42 U.S.C. §§ 601 et seq. , 42 U.S.C. § 602, 42 U.S.C. § 607(c)(2)(C), 42 U.S.C. § 607(c), (d)(1) through (12) and (e), 42 U.S.C. § 608, 42 U.S.C. § 608(a)(4) and 42 U.S.C. § 609; Public Acts of 1996, Chapter 950, Title 4, Chapter 5, Part 3, and 45 C.F.R. §§ 205.10 and 250.36, 45 C.F.R. 205.10, 45 C.F.R. § 260.30, 45 C.F.R. § 260.31, 45 C.F.R. § 261.2(b) through (m), 45 C.F.R. § 261.2(n), 45 C.F.R. § 261.10, 45 C.F.R. § 261.30, 45 C.F.R. § 261.31 and 45 C.F.R. § 261.32; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006) and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Tenn. Comp. R. & Regs. 1240-01-49-.06 VOLUNTARY QUIT

(1) Any member of an AU with a work and/or educational activities requirement, including either parent in a two-parent AU, shall not voluntarily quit employment, without good cause, within the two (2) months prior to the month of application, during the month of application, or during the application processing period for Families First/TANF cash assistance.

(a) If any member of an AU with a work activities requirement voluntarily quits employment as set forth in this section, the application will be pended.

(b) An AU is eligible for Families First/TANF cash assistance after a voluntary quit prior to or during the application processing period when:

1. The Families First/TANF applicant meets all eligibility criteria; and 2. The Families First/TANF applicant complies with required work and/or educational activities for ten (10) consecutive business days after application.

(2) If, during receipt of Families First/TANF cash assistance, any member of an AU with a work activities requirement, including either parent in a two-parent AU, voluntarily quits employment without good cause, the individual and/or AU shall receive a sanction as set forth in Rule 1240-01-49-.04.

(3) Good cause to avoid a voluntary quit sanction includes, but is not limited to:

(a) Complications of pregnancy which render the mother incapacitated, as certified by a physician;

(b) The individual was required to return to work prior to the end of sixteen (16) weeks of leave following the birth of a child;

(c) Existing child care became unavailable and substitute child care could not be arranged, for reasons beyond the caretaker’s control;

(d) Transportation was unavailable and the employee submits evidence that substitute transportation could not be arranged;

(e) The employee was needed in the home to care for an ill or disabled family member;

(f) The employer refused to allow time off for the employee to attend to a temporary family emergency;

(g) The job paid less than minimum wage based on the number of hours actually worked;

(h) There was discrimination by the employer based on age, race, sex, color, handicaps, religious beliefs, national origins, or political beliefs;

(i) Work demands or conditions rendered continued employment unreasonable;

(j) The employee accepted other employment with at least comparable gross wages;

(k) The employee left a job in connection with patterns of employment in which workers frequently move from one employer to another;

(l) The employer failed to provide reasonable accommodations for the employee pursuant to the Americans with Disabilities Act; or (m) The employer violated any federal, state, or local employment law in the employer’s treatment of the employee.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 71-1-105(12), 4-5-209, 71-3-101 through 71-3-115, 71-3- 104(a), (d), (g) and (h), 71-1-105, 71-3-107(c)(1) and (f), and 71-3-108(d)(2)(D), 42 U.S.C. §§ 601 et seq., 42 U.S.C. § 602, (c), (d), 42 U.S.C. § 607 and (e), 42 U.S.C. § 608, 42 U.S.C. § 608(b)(3), 42 U.S.C. § 609, 42 U.S.C.A. § 1315; Federal Waiver of July 26, 1996, 42 U.S.C. § 1315(a), Acts of 1996, Chapter 950, and § 1115 of the Social Security Act, 45 C.F.R. § 261.2, 45 C.F.R. § 261.10, 45 C.F.R. § 261.14, 45 C.F.R. § 261.30, 45 C.F.R. § 261.31, and 45 C.F.R. § 261.32; Deficit Reduction Act 2005 (Pub. L. 109- 171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Public Acts of 2007, Chapter 31, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002. Amendment filed December 13, 2002; effective February 26, 2003. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007. Repeal and new rule filed April 2, 2014; effective July 1, 2014.

Tenn. Comp. R. & Regs. 1240-01-49-.07 STRIKERS

(1) Definitions.

(a) The term “strike” includes any strike or other concerted stoppage of work by employees (including a stoppage by reason of expiration of a collective bargaining agreement) and any concerted shutdown or other concerted interruption of operation by employees.

(b) The term “participating in a strike” means an actual refusal in concert with others to provide services to one’s employers.

(2) Eligibility Factors.

(a) If a parent with whom the children live is participating in a strike, the entire assistance group is ineligible for as long as the parent is on strike. The parent does not have to be a member of the assistance group to cause ineligibility.

(b) If an assistance group member other than a parent is participating in a strike, that individual is ineligible for assistance as long as she/he is on strike.

(c) If a payment of Families First benefits has already been made for any month(s) in which a parent or other assistance group member participated in a strike as of the last day of the month, the payment (or the individual’s share) for the entire month constitutes an overpayment subject to recovery.

History

• Authority: T.C.A. §§ 4-5-201, et seq., and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.106.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-49-.08 DEFINITIONS

For purposes of this Chapter:

(1) “Adverse Action Notice” is a computer generated notice sent to a Families First/TANF recipient when a negative action is taken on a Families First/TANF case.

(2) “Assistance Unit (AU)” means the “aid group (AG)” or group of people applying for or receiving Families First/TANF cash assistance benefits.

(3) “Caretaker” is a relative within a specified degree of relationship to the child who:

(a) provides a home for the child; and (b) exercises primary responsibility for care and control of child.

(4) “Child Care” means the provision of supervision and protection, and at a minimum, meeting the basic needs of a child or children for less than twenty-four (24) hours a day. Child care is provided when necessary for the participant to take part in work or training activities while the AU is receiving Families First/TANF cash assistance.

(5) “Child Only caretaker” is a caretaker who is either a non-parental relative who is not included in the AU or a caretaker receiving SSI benefits.

(6) “Conciliation” means a ten (10) calendar day period of time given to a Families First/TANF recipient to establish good cause for failure to comply with their work activities requirements following the issuance of a notice of adverse action, unless the tenth (10th) day falls on a weekend or holiday.

(7) “Department” means the Department of Human Services.

(8) “Employee” means the Families First/TANF recipient and/or caretaker, who works in the service of another person, private entity, or governmental entity.

(9) “Employment” means the relationship between an employee and his/her employer consisting of the employee’s work responsibilities for the employer.

(10) “Families First” refers to the temporary public assistance program provided under Temporary Assistance for Needy Families (“TANF”), administered by the Department pursuant to Title IV-A of the Social Security Act and title 71, chapter 5, part 3 of the Tennessee Code Annotated.

(11) “Family Focused Solutions (“FFS”)” refers to a Families First/TANF support service whose

purpose is to provide supportive assistance to Families First/TANF recipients who may have barriers to employment.

(12) “Incapacity” is deemed to exist when one parent has a physical or mental defect, illness, or impairment. The incapacity shall be supported by competent medical testimony and must be of such a debilitating nature as to reduce substantially, or eliminate the parent’s ability to support or care for the otherwise eligible child and be expected to last for a period of at least thirty (30) days. Incapacity may be a reason for deprivation or may be a reason for a temporary exemption from a work activities requirement.

(13) “Sanction” means the period of time during which a Families First/TANF case is closed due to lack of adequate participation in required work and/or educational activities.

(14) “Support Services” means the transportation, optical, dental, and other services which are provided by the Families First/TANF work activity contractor when necessary for participation in work and/or educational activities.

(15) “Work activities” means the work and/or educational activities performed in return for cash assistance benefits that provide a Families First/TANF recipient with an opportunity to acquire the general skills, training, knowledge, and work habits necessary to obtain employment.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-1-105(12), 71-3-101 through 71-3- 115, 71-3-104(a), (d)(1)(B) and (C), (g) and (h), 71-3-107(c)(1) and (f), and 71-3-108(d)(2)(D); 42 U.S.C. §§ 601 et seq. , 42 U.S.C. § 602, 42 U.S.C. § 607(c)(2)(C), 42 U.S.C. § 607(c), (d)(1) through (12) and (e), 42 U.S.C. § 608, 42 U.S.C. § 608(a)(4) and 42 U.S.C. § 609; 42 U.S.C.A. § 1315; Federal Waiver of July 26, 1996; Acts of 1996, Chapter 950, and 45 C.F.R. §§ 250.34 through 250.36, § 1115 of the Social Security Act, 45 C.F.R. § 260.30, 45 C.F.R. § 260.31, 45 C.F.R. § 261.2(b) through (m), 45 C.F.R. § 261.2(n), 45 C.F.R. § 261.10, 45 C.F.R. § 261.30, 45 C.F.R. § 261.31 and 45 C.F.R. § 261.32; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006) and Public Acts of 2007, Chapter 31.
• Administrative History: Original rule filed December 13, 2002; effective February 26, 2003. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007. Repeal and new rule filed April 2, 2014; effective July 1, 2014.

Tenn. Comp. R. & Regs. 1240-01-49-.09 DIVERSION PROGRAM AND ELIGIBILTY REQUIREMENTS

(1) General. The Families First Diversion Program is an alternative to the receipt of ongoing cash assistance under the Families First/Temporary Assistance for Needy Families (TANF). The

purpose of the Diversion program is to provide an applicant with sufficient financial support to cover an immediate and compelling financial need that would divert the applicant’s need to receive ongoing Families First/TANF cash assistance.

(2) Eligibility for diversion grant. The Department shall evaluate applications for cash assistance to determine whether a diversion grant may be appropriate to meet an applicant’s immediate and compelling financial need.

(a) To receive a diversion grant, the Department must determine that the applicant is eligible to receive Families First/TANF.

1. A “child only” applicant, an applicant who is either a non-parental relative who is not included in the Assistance Unit or a caretaker receiving SSI benefits, shall not be eligible for a diversion grant.

2. If eligible for Families First/TANF, the applicant shall have the option to receive a diversion grant to cover an immediate and compelling financial need instead of receiving ongoing monthly cash assistance.

(b) The diversion grant shall:

1. Meet an applicant’s immediate and compelling needs, as determined by the Department, so that an applicant or recipient can avoid temporary cash assistance; and 2. Not cover the same type of immediate need met by a previous diversion grant, unless the Department determines that the applicant has a new and verified emergency.

(c) Each applicant shall be required to submit appropriate documentation to verify immediate and compelling financial needs.

(3) Calculation of the diversion grant.

(a) The Department shall calculate the amount of a diversion grant, on a case-by-case

basis, based upon the aggregate amount of monthly temporary cash assistance an applicant is eligible to receive, not to exceed twelve (12) months.

(b) The applicant’s temporary cash assistance lifelong eligibility period shall be reduced by the number of months equal to the total cash amount of the diversion grant that the applicant receives.

(4) A diversion grant is an alternative to ongoing Families First/TANF benefits. A recipient of a diversion grant is ineligible to receive temporary cash assistance for the number of months of temporary cash assistance equal to the total cash amount of the diversion grant.

(5) A recipient of a diversion grant may be eligible to receive at least twelve (12) months of subsidized child care, if the recipient is employed at least thirty (30) hours per week upon application.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, 71-3-102, 71-3-103, and 71-3-104; 42 U.S.C. §§ 601 et seq., 45 C.F.R. § 233.90; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454-01 (June 29, 2006); 42 U.S.C. § 9858c(c)(2)(N)(i-iii) .
• Administrative History: Original public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007. Repeal and new rule filed April 2, 2015; effective July 1, 2015. Emergency rules filed September 30, 2016; effective through March 29, 2017. Amendments filed December 8, 2016; effective March 8, 2017.

Chapter 1240-01-50 Financial Eligibility Requirements - Families First Program

Tenn. Comp. R. & Regs. 1240-01-50-.01 FINANCIAL ELIGIBILITY REQUIREMENTS

This chapter provides the policies for consideration of resources and income for all assistance groups (including legally responsible grantee relatives) applying for Families First. If any nonfinancial criterion is not met, the application may be denied without a determination of financial eligibility.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.02 RESOURCE ELIGIBILITY STANDARDS

Eligibility shall exist if the value of nonexempt resources, both liquid and non-liquid assets for the AG, do not exceed $2,000. Resources in excess of this limit result in ineligibility.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; 45 C.F.R. § 233.20; and § 1115 of the Social Security Act.
• Administrative History: Original rule files December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.03 APPLICATION OF RESOURCE LIMITS

The AG shall report all resources at the time of application. The AG’s resources at the time the application is filed and at each redetermination of eligibility shall be used to determined if the AG’s resources meet the eligibility standard.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.04 VERIFICATION OF RESOURCES

The value of resources will be verified prior to approval and at each redetermination of eligibility.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.05 EXEMPT RESOURCES

In determining the resources of an AG, only the following shall be exempt:

(1) Home And Lot.

(a) The home owned or being purchased and occupied by the Families First assistance group and the property surrounding the home which is not separated from the home by intervening property owned by others is exempt. Public rights of way (such as roads and/or other public easements) which run through the property surrounding the home do not affect its classification as homestead property. Temporary absences from the home do not affect the classification and/or exemption of the home if the assistance group has not acquired another home and intends to return to the exempted home at a specified time. Proceeds from the sale of homestead property or from a recovery due to a casualty/disaster loss of same, will remain exempt for three months following receipt of the proceeds if the AG expresses an intent to reinvest in the same homestead or in a substitute homestead.

(2) Other Property.

(a) Basic Maintenance Items. Excluded are basic maintenance items essential to daily living such as clothing, furniture, appliances, and other similar essential household goods and equipment of limited value.

(b) Certain Real Property. Real property which is not exempted as a homestead pursuant to 1240-01-50-.05(1) is exempt as a resource if the recipient is making a good faith effort to sell and signs an agreement to repay the Families First grant received during the period of exemption. Exemption of the property, not to exceed nine (9) months, causes an overpayment except when the net proceeds plus other resources at the beginning of the exclusion period are within the resource limit.

Repayment of the grant is made from the sale proceeds not to exceed the total of the net proceeds. Any proceeds remaining after repayment of the grant is considered a resource.

If assistance is terminated for any reason prior to the end of the 9-month exemption period, the assistance group has an overpayment subject to the usual collection procedures.

(c) Burial Plots. One burial plot for each family member may be excluded from consideration as a resources.

(3) Exempt Vehicles.

(a) One operable family motor vehicle used to provide transportation of persons or goods in which the equity value is $4,600 or less.

1. Equity is determined by deducting the amount of encumbrances from the fair market value. Fair market value is the value listed in the N.A.D.A. Used Car Guide.

2. If a vehicle is not listed in the N.A.D.A. Guide, or its value is claimed to be different from the value listed, its value may be taken as that stated by one reputable automobile dealer.

(b) Equity value over $4,600 of one vehicle, and equity value of all other vehicles owned by an AG member will be counted as a resource to the AG and will be applied to the $2,000 resource limit set forth in 1240-01-50-.02.

(4) Burial Policies. Burial policies (not prepaid burial agreements) shall be considered exempt for resource purposes.

(5) Pension Funds. The cash value of pension plans or funds shall be exempt.

(6) Inaccessible Resources. The cash value of resources which are not currently accessible to the assistance group or which cannot reasonably be brought to a condition of current availability are exempted. Nonavailability of such resources must be determined prior to approval and at each redetermination of eligibility. Also, resources whose cash value is not accessible to the AG are exempt, such as, but not limited to: security deposits on rental property or utilities; property in probate; real property which the AG is making a good faith effort to sell at a reasonable price and which has not been sold; and jointly owned resources determined to be inaccessible.

(a) Irrevocable Trust Funds 1. When a person applying for or receiving Families First has a trust which is claimed as inaccessible, she/he (or in the case of a child, his/her parent or other relative caring for him/her) will have 60 days from the date of application/redetermination, or from the time the trust is reported/discovered to attempt to have this resource made currently available. The following are exceptions:

(i) If the trust is established by a will, the terms of the trust will be followed as written; or (ii) If a trust is producing regular income which is available to the beneficiary, the body of the trust will not be considered a currently available resource, but the income will be counted in the determination of eligibility/amount of payment.

(iii) If a trust has been set up for a minor (usually until age 18) and the amount of the trust account is $5,000 or less, the caretaker will not be required to attempt to make the trust accessible. In most instances, the legal fees involved in such an attempt would erode the value of the trust to the extent that it would not be cost effective to bring it to a state of availability.

2. If the caretaker is willing to seek to have the trust made currently available, he/she may be included in the assistance unit. If such a person does not initiate action to make the trust available within 60 days, the caretaker will be removed from the assistance group.

3. If the caretaker has initiated the necessary action, assistance may be continued pending further orders of the court. The court’s decision, as written in a new or amended order, will be binding. If all or part of the funds in trust are made available at any time, they must be taken into account when received.

(b) Prepaid Burial Agreements or Burial Trusts. Exclude one burial agreement with equity value of $1,500 or less (whether revocable or irrevocable) per family member as a resource.

(c) Equipment. Equipment used in a self-employed enterprise to produce income is considered an inaccessible resource.

(7) Resources Excluded By Law. The following types of payments are excluded by law from consideration as income or as resources in the determination of eligibility and level of benefit:

(a) Relocation Assistance Payments. Relocation payments received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 are excluded.

(b) Alaska Native Claims Payments and Sac and Fox Indian Claim Payments received under the Alaska Native Claims Settlement Act, PL 92-203, § 21(a) and the Sac and Fox Indian Claims Agreement, PL 94-189 are excluded.

(c) Payments for Certain Indian Tribes. Payments derived from certain submarginal lands of the United States which are held in trust for certain Indian Tribes are excluded.

(d) Job Training and Partnership Act. Payments received pursuant to the Job Training and Partnership Act (JTPA).

(e) Payments from Disposition of Funds of Ottawa Indians. Payments made to the Grande River of Ottawa Indians under PL 94-540 are excluded.

(f) Student Grants and Loans. Education grants and loans to Families First AG members (or stepparents or parents of a minor in the home) are excluded.

(g) Energy Assistance Payments. Any payments or allowance made by any federal, state or local organization for the purpose of energy assistance are not counted.

(h) Domestic Volunteer Service Act. Payments received by volunteers for services performed in programs stipulated in the Domestic Volunteer Service Act of 1973 as amended are excluded.

(i) Payments from Crisis Intervention Program. One-time payments to assist with utility costs from the Crisis Intervention Program are excluded.

(j) Benefits from Food Programs. The following benefits from food programs are excluded:

1. WIC;

2. Value of Food Stamps;

3. Value of school lunches or other school food programs.

(k) Allowances paid under PL 104-204 to children of Vietnam veterans who are born with spina bifida are excluded.

(8) Resources Of Non-AG Members. Resources of non-AG members, other than those who are disqualified because of an intentional program violation or a Families First Employment and Training Program sanction, are excluded.

(9) Other Exempt Resources.

(a) Earmarked Resources. Any governmental payments which are designated for the restoration of the home which has been damaged in a disaster if the household is subject to a legal sanction if the funds are not used as intended are exempt.

(b) Prorated Income. Resources, such as those of students or self-employed persons, which have been prorated and counted as income, are exempt.

(c) Indian Lands. Indian lands held jointly with the tribe, or land that can be sold only with the approval of the Bureau of Indian Affairs are exempt.

(d) Livestock and poultry consumed as home produce.

(e) Up to $5,000 in profits from a business enterprise may be placed in escrow in a Low Income Entrepreneurial Escrow Account with a micro-lending intermediary program and shall be excluded as a resource; interest earned by such funds shall also be excluded.

(f) Proceeds from the sale of exempt property if received as a lump sum will be exempt for a period of up to three (3) months following the sale if intended to be used to replace the exempt resource.

(g) Up to $5,000 in an Individual Development Account for career development goals for a Families First recipient who is a part of an Individual Development Account Pilot Project.

(10) Handling Of Excluded Funds.

(a) Excluded liquid assets that are kept in a separate account and that are not commingled in an account with non-excluded funds, shall retain their resource exclusion for an unlimited period of time.

(b) Resources which have been excluded as prorated income that are commingled in an account with non-excluded funds shall retain their exclusion for the period of time over which they have been prorated as income (i.e., they will not be counted as both income and resources during the same period of time).

(c) All other excluded monies which are commingled with non-excluded funds shall retain their exemption for six months from the date they are commingled. After six months all funds in the commingled account other than those in (a) above are counted as a resource.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, 71-3-154(a)(2), and 71-3-155(d); Public Acts of 1996, Chapter 950; 38 U.S.C. § 1805(d); 42 U.S.C. § 1315(a); 45 C.F.R. § 233.20; 45 C.F.R. § 233.20(a)(3)-(7) and (11); PL 104-204 § 421(b); and § 1115 of the Social Security Act.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002.

Tenn. Comp. R. & Regs. 1240-01-50-.06 COUNTABLE RESOURCES

The fair market value of liquid resources and the fair market value less encumbrances (equity) of non-liquid resources are used to determine the total countable resources available to the AG.

(1) The Following Are Counted As Liquid Resources:

(a) Cash on hand.

(b) A checking or savings account in a bank or other savings institution including credit union. (In a checking account, only that amount which exceeds known monthly income is counted as a resource.)

(c) Savings certificates.

(d) Stocks and bonds.

(e) Burial Agreements. Count the equity value in excess of $1,500 of one burial agreement per assistance unit member if the burial agreement is revocable and accessible.

(f) Proceeds from the sale of exempt property, which was received as a lump sum and intended to be used to replace the exempt resource, if retained longer than three (3) months.

(g) Proceeds from estate settlement, if received as a lump sum.

(h) Individual Retirement Accounts (IRAs and Keogh Plans). The cash value, minus any penalty for early withdrawal, of IRAs and funds in Keogh plans shall be considered accessible resources, unless the AG can establish otherwise.

(i) Other Non-Recurring Lump Sum/Retroactive Payments. Lump sum liquid resources such as the following are considered a resource in the month received, unless specifically excluded from consideration as a resource by other federal laws and regulations;

1. Retroactive Payments such as RSDI, Veterans Benefits, Unemployment Compensation and Workers Compensation;

2. Windfalls, cash gifts, prizes and awards;

3. Income tax refunds;

4. Tax rebates and credits;

5. Refunds of security deposits on rental property or utilities;

6. Vacation pay withdrawn in a lump sum payment by an employee who has been laid off. If the employee chooses not to withdraw his/her vacation pay and leaves the vacation time with the employer in case he/she is called back to work, the value of the vacation pay is counted as a resource.

(j) Resources of Non-AG Members. Resources of individuals disqualified because of an intentional program violation or a Families First Employment and Training program sanction count in their entirety to the remaining AG members.

(2) Countable Non-Liquid Resources.

(a) Unless otherwise exempt, the equity in all non-liquid resources shall be counted as a resource. Examples are as follows:

1. Non-exempt licensed and unlicensed vehicles;

2. Non-exempt buildings;

3. Non-exempt land;

4. Recreational properties;

5. Property such as boats, vacation homes and mobile homes, or other property not specifically excluded;

6. Non-exempt personal property; and 7. Insurance policies:

(i) The total cash value of all policies is considered in relation to the personal property reserve.

(ii) The owner of insurance is considered to be the insured person named in the policy, unless otherwise specified by the insurance company.

(b) Resources of individuals disqualified because of an intentional program violation or a Families First Employment and Training program sanction count in their entirety to the remaining AG members.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; 45 C.F.R. § 233.20; and § 1115 of the Social Security Act.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.07 SPECIAL RESOURCE SITUATIONS

(1) Jointly Owned Resources. An individual’s pro rata share of jointly owned resources will be considered as available unless such resources are inaccessible.

(a) When the individual can demonstrate that he/she has access to less than a pro rata share, only the portion to which he/she has access will be counted toward the assistance group’s resource level.

(b) Resources are considered inaccessible to the assistance group if they cannot be practically subdivided and access to their value is dependent on the agreement of the joint owner who refuses to comply.

(c) When determining the AG’s resource level, ineligible aliens residing with the household shall be considered household members. The resources of an ineligible alien will be counted only when the ineligible alien is the parent or spouse of an AG member.

(d) Real property that the AG cannot sell because it only has a life estate, use rights, lifetime occupancy, or dower rights, shall also be considered inaccessible to the AG.

(e) Victims Compensation Awards.

1. Victims Compensation Awards paid in behalf of minors will be treated as irrevocable trusts if:

(i) The minor’s parent, other caretaker relative or guardian entered into an agreement with the State Claims Commission as to the uses to be made of the funds and signed such an agreement; and (ii) The funds are deposited in accordance with the agreement; and (iii) The funds remain on deposit or are used only according to the terms of the agreement. Any funds withdrawn and used for goods/services not specified in the agreement will be treated as income in the month received.

2. Victims Compensation Awards paid to adults (age 18 or older) in their own behalf will continue to be treated as non-recurring lump sums.

(2) Resources Of Legally Responsible Relatives.

(a) The availability of a resource often depends on the individual’s legal right to share property which may be in the possession of another person. Therefore, the following rules apply to the treatment of resources of legally responsible relatives of an A/R who live in the home with him/her.

1. Resources of a spouse.

(i) Real and personal property belonging to the spouse of a relative other than a parent of the dependent child(ren) are not deemed to the assistance group. Real and personal property belonging exclusively to an SSI beneficiary is totally disregarded in determining the eligibility of his/her spouse and the AG in which his/her spouse is included. If property is jointly owned, that portion of the property which belongs to the SSI beneficiary is disregarded. If the proportionate share cannot be determined, the property is considered available in its entirety to each.

(ii) In stepparent situations, real and personal property belonging exclusively to a stepparent is considered available to the assistance group only when the stepparent is included in the AG.

2. Minor Recipients.

(i) When a minor in the AG lives with his/her parent(s), the resources of the parent(s) are not deemed to the AG which includes the minor unless the parent(s) are also included in that unit. Resources belonging to an SSI beneficiary parent of a child in the AG are disregarded.

The resources of a child are not considered available to his/her parents or siblings unless the child is included in the AG.

(ii) When the A/R is a minor living with a relative other than a parent, the resources of the relative are not considered available to the A/R or the A/R’s child unless the relative is included in the AG.

The resources of a stepparent are not considered available to a child unless the stepparent is included in the AG.

3. Other Relatives. The resources of relatives other than a parent are not considered available to the child(ren) in the AG unless the relative is included in the AG. If resources of a relative exceed defined limits, neither the grantee rel ative nor the grantee relative’s spouse may be included in the AG.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.08 INCOME

The following sections describe the treatment of income and budgeting to determine eligibility and level of benefits.

(1) General Policy. All sources of income are to be explored and gross nonexempt income from all sources shall be verified prior to approval or continuation of benefits. The applicant/recipient has primary responsibility for providing acceptable verification of income; the worker will secure the verifications when the information is available to the agency through existing automated sources, or when it is more reasonable to the Department to secure the information.

(2) Requirement To Apply For Other Benefits. As a condition of eligibility for Families First, a person who is reasonably certain to be entitled to any other cash benefit or tax credit (other than SSI) must apply for and accept such benefit or tax credit for himself/herself and/or any member of the AG. Failure to apply for or to accept the benefit renders the applicant/grantee relative ineligible to be included as a member of the AG. His/her needs may not be taken into consideration in the Families First budget, and his/her income must be considered available to the remaining AG.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.09 INCOME ELIGIBILITY STANDARDS

(1) Gross income as defined is tested against a Gross Income Standard (GIS) which is 185% of the Consolidated Need Standard for the appropriate number of people. If the gross income is greater than this standard by any amount, the family/individual is not eligible for Families First. If gross income is equal to or less than the GIS for the appropriate number of people, then net income is computed and this amount is used to determine eligibility and amount of payment. If there is a deficit of $1.00 or more between the need standard and net income, eligibility on this basis exists. Payment is the lesser of the deficit or a standard payment amount (maximum payment) for the family size, except that no payment can be made in a monthly amount less than $10.00.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.10 DEFINITION OF INCOME

Assistance Group income shall mean all monies from whatever source, earned or unearned, except the exclusions listed in 1240-01-50-.11.

(1) Earned Income. Earned income is income which is derived from the work efforts of an individual as wages, salaries, commissions, or as profits from self-employment enterprise, including farming, carried on either alone or jointly. It includes bonuses, vacation pay, pay received while on maternity leave and sick pay when mandatory deductions are made.

Garnished or diverted wages, etc. are also considered in determining gross earned income.

The following types of income are considered earned income:

(a) Wages, salaries, commissions;

(b) Profit from self-employment enterprise such as:

1. Farming;

2. Small business enterprises;

3. Roomers/boarders;

4. Rental receipts. Receipts from rental property owned/being purchased by an individual when he/she is actively engaged in the production of the income are earned income.

5. Total gains of any capital goods or equipment related to the business, excluding the costs of doing business.

(c) Training and rehabilitation allowances. Any wages paid for on-the-job training or public service employment are earned income, except JTPA earnings of child applicants/recipients. Training allowances and incentive payments in Families First Employment and Training and JTPA projects are excluded as income.

(d) Severance pay;

(e) Vacation, sick, longevity and bonus pay, when mandatory deductions are made;

(f) Allowances and other benefits under the National and Community Service Trust Act of 1993.

(2) Unearned Income. Unearned income is any income which does not meet the definition of earned income. No earned income exclusions or deductions may be applied to unearned income. Unearned income includes, but is not limited to:

(a) Unemployment compensation.

(b) Workman’s (workers) compensation.

(c) Vacation, sick, longevity and bonus pay when mandatory deductions are not made.

(d) Interest, dividends, royalties and all other direct money payments which can be construed to be a gain or benefit.

(e) Assistance payments or other need based payments not otherwise excluded.

(f) Pensions and benefits such as annuities, retirement, veterans, disability, Social Security, military or Job Corps allotments.

(g) Child support and alimony.

(h) Regular cash contributions.

(i) Money withdrawn from the body of a trust or interest/dividends paid to an A/R.

(j) Non-IV-E foster care board payments made on behalf of a minor mother who receives Families First for her own child. If the child of the minor parent is also in foster care on non-IV-E funds, his/her board payment must also be counted as unearned income.

(k) Rehabilitation payments made under Services to the Blind or Vocational Rehabilitation or other such programs are unearned income. Costs directly associated with a rehabilitation program and borne by a participant are deducted from the gross payment and the remainder is income.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.11 PAYMENTS/BENEFITS EXCLUDED IN ELIGIBILITY DETERMINATION

Certain payments and benefits are excluded under federal law/regulation from consideration as income in determining eligibility for Families First.

(1) Relocation Assistance Payments received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

(2) Any funds distributed per capita to or held in trust for members of any Indian tribe under PL 92-254, PL 93-134 or PL 94-540.

(3) Payments received under the Alaska Native Claims Settlement Act (PL 92-203, § 21(a)) payments by the Indian Claims Commission to the Confederated Tribes and Bands of the Yakima Indian Nation or the Apache Tribe of the Mescalara Reservation (PL 95-443); payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Maine Indians Claims Settlement Act of 1980 (PL 96-429, § 5); payments of relocation assistance to members of the Navajo and Hopi Tribes (PL 93-531).

(4) Receipts distributed to members of certain Indian tribes referred to in § 6, PL 94-114.

(5) Benefits received from the Nutrition Programs for the Elderly (Title VII) under the Older Americans Act of 1965.

(6) The value of supplemental food assistance received under the Child Nutrition Act of 1966 (WIC), as amended, and the special food service program for children under the National School Lunch Act, as amended.

(7) Payments for supportive services and reimbursements of out-of-pocket expenses made to individual volunteers serving as health aids, senior companions, RSVP foster grandparents and any other programs under Title II pursuant to § 418 of PL 93-113.

(8) VISTA payments, when the total amount of payments, adjusted for hours served, is determined by the Chief Executive Officer of the Corporation for National and Community Service to be less than the minimum wage.

(9) Job Training Partnership Act (JTPA) Payments for Dependent Children, as follows:

(a) Exclude JTPA earned income (wages and compensation in lieu of wages) for a dependent child applicant or recipient for up to six months per calendar year in the Gross Income Standard (GIS) test and in computing the grant.

(b) Exclude all unearned JTPA needs based and supportive service payments.

(10) JTPA Payment for Other than Dependent Children, as follows:

(a) Exclude unearned payment in determining eligibility and amount of assistance if paid for one of the following reasons:

1. Supportive services such as transportation, child care, medical and other services needed to enable the individual to work.

2. Assistance payments for needs other than those covered by the Families First grant amount, or for unmet need.

(11) Experimental Housing Allowance Program payments made under annual contribution contracts entered into prior to January 1, 1975 under § 23 of the US Housing Act of 1937, as amended.

(12) Nazi Persecution Payments.

(13) Educational grants, loans, scholarships, stipends and/or college work study payments made to or in behalf of a Families First AG member (or a stepparent in the home or parent in the home of a minor Families First parent) in determining eligibility and amount of payment.

(14) Child Support Bonus Payment. Exclude the first $50 per month received by the family on a currently obligated child support collection.

(15) Energy Assistance Payments made by any Federal, State, Local agency or charitable organization to meet energy assistance needs.

(16) Agent Orange Settlement Payments.

(17) Earned Income Tax Credits (EITC).

(18) Certain benefits and payments are not defined as income for Families First eligibility purposes:

(a) Cash items.

1. Business costs of producing self-employment income such as but not limited to:

(i) Wages, salaries, benefits paid to/for employees;

(ii) Inventories and supplies;

(iii) Seeds, fertilizer, pesticides, herbicides, etc.;

(iv) Utilities at place of business.

2. Clothing allowance for disabled veterans intended for additional clothing needs resulting from the use of prosthetic or orthopedic devices.

3. Educational grants, loans, scholarships, stipends, and/or work study payment made to or in behalf of a Families First AG member, or stepparent in the home or parent of a minor parent in the home.

4. Foster Care board payments made to foster parents for the care of a foster child by a child placing agency. A service fee paid to foster parents, is however, income. This is an amount paid to the foster parents for providing care and is in addition to the board payment.

5. Legally obligated payments otherwise payable to an AG which are diverted by the provider to a third party, unless this arrangement is made at the request of an AG member.

6. Loans which represent an obligation and not a benefit such as chattel mortgages and personal notes. Such loans may be provided by an individual or by a commercial lending institution.

7. Monies received and used for the care and maintenance of a non-assistance group member who is not the parent, spouse, or stepparent of a dependent child living in the home.

(i) Payments for multiple beneficiaries are to be prorated evenly among the intended beneficiaries to determine individual shares. If intended beneficiaries include both AG and non-AG members, the individual shares of the AG members (their responsible relatives) will be considered income to the AG/relative.

8. Income belonging to non-AG members, unless they are parents, spouses, or stepparents of AG members in the home.

9. Reimbursements for out-of-pocket expenses incurred (or to be incurred) by volunteers and/or employees in the performance of their duties.

10. Retroactive Families First and SSI payments.

11. Payments that are made either directly to Families First recipients or to a third party for rent or utilities under Section 8 of the US Housing Act.

12. Payments for utilities made to or on behalf of Families First recipients through any federal, state, or local energy assistance plan.

13. Support payments (child and related spousal support) received by an AG but transferred to the IV-D agency as assigned support.

14. That portion of payments made by Vocational Rehabilitation which represents a direct cost to an individual for participation in that program.

15. Casual and inconsequential income (monetary gifts/contributions) not exceeding $30 per quarter received by each Families First recipient.

16. Recoupments withheld by the provider to repay a prior overpayment.

(b) Non-Cash Items. Any gain or benefit not in the form of money payable directly to an AG such as non-monetary or in-kind benefits.

(19) Allowances paid under PL 104-204 to children of Vietnam veterans who are born with spina bifida.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, and 71-3-154(a)(5); Public Acts of 1996, Chapter 950; 38 U.S.C. § 1805(d); 42 U.S.C. § 1315(a); 45 C.F.R. § 233.20; and PL 104-204 § 421(b).
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002.

Tenn. Comp. R. & Regs. 1240-01-50-.12 INCOME INCLUDED IN THE ELIGIBILITY DETERMINATION

Except for the payments/benefits specifically excluded above, all other payments received by AG members (including a parent, spouse or stepparent living in the home) are treated as income in the determination of eligibility and level of benefits in the Families First program.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.13 DETERMINATION OF AVAILABLE INCOME

The amount of income available to meet maintenance needs is to be determined in establishing eligibility for Families First benefits in accordance with definitions given previously and in accordance with the instructions given in chapters 1240-01-50- .13(1) through 1240-01-50-.20. Currently available income as defined (except that specifically excluded, disregarded, or deducted), is considered in the determination of eligibility and amount of payment.

(1) Projecting Income. A prospective method of determining eligibility and payment in the Families First program is used.

(a) At the time of case action a decision is made concerning the amount of income to be considered available for a future period. The worker anticipates monthly income the AG will have in the coming month and uses this figure to calculate the amount of benefits.

(b) Anticipating Income. At the time of application/redetermination an AG may expect changes in circumstances to occur in the future; in particular, changes relating to the receipt of income.

1. Only currently available income will be used to project the amount of ongoing available income unless the amount and date of receipt of expected income is known with reasonable certainty or unless some change has occurred. If the exact amount/month of receipt of the income is not known, only that portion of it which can reasonably be anticipated shall be considered as income.

(c) When any change in AG circumstances is expected, including a change in income, the AG will be required to report the change within 10 days of the change.

1. Counting Anticipated Income in Month Received. Income anticipated with reasonable certainty during the period under consideration shall be counted as income only in the month(s) it is expected to be received, unless the income is averaged or prorated.

2. Income in Past 60 Days. Income received during the past 60 days shall be used as an indicator of anticipated income. However, past income shall not be used for any month in which a change in income has occurred or can be anticipated.

(i) If income fluctuates to the extent that a 60-day period alone cannot provide an accurate indication of anticipated income, the worker and the AG may use a longer period of time if it will provide an accurate indication of anticipated fluctuations in future income.

(ii) Similarly, if the family’s income fluctuates seasonally, it may be appropriate to use the most recent season comparable to the time of year, rather than the last 60 days, as one indicator for the time of year.

(iii) In no event shall the worker automatically attribute to the AG the amounts of any past income. Past income shall not be used as an indicator of anticipated income when changes in income have occurred or are anticipated to occur.

3. Recurring Monthly Benefits. Recipients of state or federal benefits such as SSI or Social Security benefits shall not have their monthly income from such sources varied merely because mailing cycles may cause two payments to be received in one calendar month and none in the next month.

4. Withheld Wages. Wages held at the request of the employee shall be considered income to the AG in the month the wages would otherwise have been paid by the employer. Wages held by the employer as a general practice, even if in violation of the law, are not counted as income to the AG unless an AG anticipates that it will ask for and receive an advance, or an AG anticipates that it will receive income from previously withheld wages not previously counted as income.

Advances on wages shall only count as income if reasonably anticipated.

(2) Converting Income To Monthly Amounts. Since need determination and calculation of benefit amount are made on a monthly basis, income and expenses available to an AG must be stated in monthly amounts. The following methods will be used to convert income to monthly amounts.

(a) Hourly or Piece Work Wages. Estimate the amount of income to be expected as the result of a week’s work based on hours/days produced. Use the weekly earnings figure to determine monthly income.

(b) Weekly Income. Multiply weekly income by 4.3 to determine monthly income.

(c) Bi-Weekly Income. Multiply amount received each two weeks by 2.15 to determine monthly income.

(d) Semi-Monthly Income. Add the two amounts received to determine monthly income.

(e) Monthly Income. When a wage earner is employed and paid on a monthly basis accept his/her verified monthly wage/salary as monthly income.

(f) Annual Income. Income which is received annually, or which is an integral part of annual income will be totaled and prorated over 12 months. Such income is usually earned income derived from a farming or other self-employment enterprise. Income which by contract or otherwise could be generally considered as annual income, but which is received in a shorter period of time will be considered as income in the months during which it is received. An estimated average income from migrant labor, seasonal farm work, and other seasonal employment will be considered during the months such income is received.

(3) Rounding/Truncating. If the difference between need and income is not a whole dollar amount, when the deficit is less than the maximum grant for that family size, round to the next lower dollar to determine the Families First grant amount.

(4) Income At Application.

(a) Income in Application Month. The eligibility and level of benefits for AGs submitting an initial application will be based on circumstances for the entire calendar month in which the AG filed its application. The income received during the application month (i.e., that already received by the day of application plus that which is anticipated with reasonable certainty to be received in that month) is used to determine initial eligibility and the benefit amount for that one (1) month.

(b) Effects of Changes During the Application Processing Period. An AG may be eligible in the application month based on circumstances existing in that month, but ineligible in the subsequent month because of changes which occur. The AG is entitled to benefits for the application month even when the processing of the application results in benefits being issued/paid in the subsequent month. An AG may be ineligible in the application month based on circumstances existing in that month, but eligible in the subsequent month because of changes which occur. The application must be denied so that the AG will receive proper notice within application processing time limits. A new application must be filed so that eligibility can be determined for the period following the period the AG was ineligible.

(5) Anticipated Changes And Benefit Amounts. Adjustments in the Families First grant are made on the basis of reported or discovered changes. The grant amount for the month of application will differ from the grant amount in subsequent months. If a change in income is reported and the change is ongoing, the new amount is to be used to project future ongoing income. If income fluctuates, an estimated average monthly income will be established and this amount will be considered in the determination of eligibility and the amount of payment.

(6) Income At Redetermination. Eligibility and amount of payment at the time of redetermination will be based on circumstances which prevail at that time. Currently available income will be used to project the average amount of income to be available in the coming months.

(7) Consideration Of Income Belonging To Particular Individuals. The income of all persons who share a living arrangement must be explored, but all individuals’ incomes may or may not be considered in the determination of eligibility and amount of payment as described below:

(a) The countable gross income, earned and unearned, of all assistance group members and their responsible relatives in the home plus the deemed income of a stepparent living in the home and of a parent of a minor parent living in the home must be considered as available. The gross amount is tested against the Gross Income Standard (185% of the appropriate consolidated need standard for the family size). If the gross amount is less than the GIS, the countable net income for the AG is compared to the CNS for the family to determine eligibility and amount of payment. No income of parents and spouses is diverted to their ineligible dependents living in the home except in the deeming budgets of stepparents and parents of minor parents living in the home.

(b) Legal Spouses. The income belonging to one or both members of a legally married couple is considered available to each other as long as they are living together, except the income of a spouse who is an SSI recipient is disregarded in determining the other spouse’s eligibility. If a couple presents themselves as married they are to be considered as married. If they later claim to not be legally married, the burden of proof of their unmarried status will be upon the couple.

1. Exception. When a Families First custodial parent marries during receipt of assistance, exception at 1240-01-47-.23(5)(d) applies.

(c) Parents. Parents living in the home with the dependent child(ren) must be included in the AG and/or their total income counted as available in its entirety unless the parent is an SSI recipient. However, in the case of an ineligible alien parent living in the home with his/her dependent child, income is deemed to the eligible dependent child using the stepparent deeming formula in (d)1.- 6. below.

1. Exception. When a Families First custodial parent marries during receipt of assistance, exception at 1240-01-47-.23(5)(d) applies.

(d) Stepparents/Parents of Minor Parents. Income shall be deemed available to AG members from a stepparent living in the home with a stepchild for whom assistance is requested, and from a parent living in the home with a minor parent who has requested assistance in his/her own right for a child in his/her care.

1. The amount of income to be deemed is determined as follows:

(i) Determine gross monthly income as defined for Families First;

(ii) Deduct the flat work expense amount of $150 from earned income only;

(iii) Deduct the appropriate Consolidated Need Standard (CNS) for the stepparent or parent and his legal dependents (for IRS tax purposes) living in the home who are not included in the AG. (If the stepparent’s or parent’s income is not taxable, use those individuals he/she could claim under IRS rules.);

(iv) Deduct amounts actually paid to individuals not living in the home who are (or could be) claimed by the stepparent or parent as dependents for income tax purposes; and (v) Deduct amounts actually paid for alimony or child support to individuals not living in the home other than those covered in step 4. above;

(vi) The remainder is income deemed to the stepchildren or minor children (or child of an illegal alien) as appropriate.

2. Exception. When a Families First custodial parent marries during receipt of assistance, exception at 1240-01-47-.23(5)(d) applies.

(e) Income of Children. Income that a technically ineligible child (i.e., a child who does not meet the age, deprivation, relationship, citizenship requirements) has in his/her own right, including “earmarked” income such as Social Security benefits, or which is specifically designated for a particular child, such as child support, is not considered available to the AG. The child’s own income is, however, considered available to his/her own children in the home.

(f) Applicant/Grantee Relatives Other than Parents. The income of a relative other than the parent(s) of children for whom Families First is requested or received is counted in determining eligibility and amount of payment for the children only when the relative is included in the AG. When the grantee relative is included in the AG, all of the income of that relative’s spouse living in the home must be considered available to the AG.

(8) Individuals Whose Income Is Not To Be Considered.

(a) SSI recipients.

(b) Ineligible relatives other than parents/stepparents as long as they are not included in the AG.

(c) Unrelated household members.

(d) Individuals living outside the home.

(9) Deductions From Gross Income. The only deductions from gross income which are permitted in determining net income are:

(a) The earned income disregards, where applicable;

(b) Income which has been excluded from consideration will not be taken into account in determining need and amount of assistance for any other individual.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, 71-3-154, and 71-3-155; Public Acts of 1996, Chapter 950; 42 U.S.C. § 1315(a); 45 C.F.R. § 233.20; 45 C.F.R. § 233.20(a)(1)-(7) and (11); and § 1115 of the Social Security Act.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002.

Tenn. Comp. R. & Regs. 1240-01-50-.14 TREATMENT OF UNEARNED INCOME

Unearned income is money which is received for reasons other than the current work efforts of an individual. No earned income exclusions or work expense deductions may be applied to unearned income as defined.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.15 TREATMENT OF EARNED INCOME

(1) Earned income is defined as that total income which an AG earns by its own work efforts; either salary, wages or commissions paid to the AG as an employee, or profits from selfemployment in an enterprise (including farming) which it may carry on independently or jointly with another person or persons. It includes earnings over a period of time from which settlement is made at one given time. It includes paid annual leave, vacation time, sick leave, pay while on maternity leave, and bonuses when they are subject to Income Tax and FICA.

(2) All gross earned income, received or anticipated for members of the assistance group is considered available in relation to the gross income standard (GIS), with the following exceptions:

(a) Only the deemed income of a stepparent or of a parent of a minor parent receiving Families First in his or her own right is considered available (when the stepparent or parent of a minor parent is in the home);

(b) Job Training Partnership Act earnings of a child recipient or other type earnings of a full-time student during the six month exclusion period are not considered available;

(c) EITC payments are excluded, whether received as a monthly amount or as an annual amount.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.16 DETERMINATION OF NET INCOME

(1) Net income is that which is available to determine need and/or amount of assistance after application of all appropriate exclusions and disregards.

(a) Excluded income is not counted in determining financial eligibility based on the Gross Income Standard (GIS) test or in computing the grant amount.

(b) Disregarded income is that portion of earned income which is subtracted from gross earnings (or net gross earnings from self-employment) in arriving at net countable income. Disregarded income includes:

1. The earnings of a child recipient who is a full-time student or part-time student working less than full-time, if the GIS test is met. The child’s earnings are combined with the rest of the AG’s gross countable income to determine whether the total family income exceeds the GIS;

2. A flat work expense of $150, and child/dependent care.

(c) Net Income is determined, as follows; the requirements of each step must be met before progressing to the next step:

1. Determine the total gross income (or net gross income from self-employment) for all members of the AG and any sanctioned and/or disqualified individuals;

2. Exclude excludable income;

3. Compare the total countable gross income (earned and unearned) to the GIS for the AG size. If gross income exceeds the GIS, the AG is ineligible; if gross income is less than or equal to the GIS; continue.

4. Disregard earnings of a child recipient with student status (full-time student or

part-time student not working full-time) who is no longer eligible for the six month earned income exclusion.

5. Apply earned income disregards to the earnings of each individual with earnings in the following order:

(i) Earned income disregard of $150;

(ii) Child/Dependent Care deduction as paid up to $175 per child/dependent age 2 or over; as paid up to $200 per child under age 2, per month.

(I) A deduction for payments for dependent care cannot be made when care is provided by:

I. The parent, stepparent, or guardian of a child;

II. A person who is a member of the AG of which the dependent is a member; or III. The spouse of the dependent.

(2) Earned Income Penalties. If one of the following penalty situations occur during an individual’s receipt of Families First, do not allow the earned income disregards ($150 disregard and child/dependent care):

(a) For any individual who is not a caretaker or the parent of a dependent child, the penalty will be applied if he/she, without good cause, reduced earnings or terminated or refused employment. Good cause includes, but is not limited to unsafe or unhealthy working conditions, pay at less than the Federal minimum wage, lack of adequate child care, or lack of transportation;

(b) For any individual who fails, without good cause, to make a timely report of income causing an overpayment. Good cause circumstances include, but are not limited to severe illness, accident, hospitalization or natural disaster which prevents the client from reporting timely.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; 45 C.F.R. § 233.20; and § 1115 of the Social Security Act.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.17 CALCULATING NET INCOME AND BENEFIT LEVELS

(1) The Department has developed a consolidated standard (CNS) of need based on the size of the assistance group for subsistence items including the following, less any discounts for other sources of assistance:

(a) Safe, healthful housing;

(b) A low-cost adequate food budget as recommended by the USDA Thrifty Food Plan;

(c) An allowance for essential medical care;

(d) Minimum clothing for health and decency; and (e) Other necessary items including, but not limited to, transportation, personal care and educational expenses.

(2) The Families First payment does not meet 100% of need as defined by the consolidated need standard. The maximum payment per family size is set, dependent on available state and federal funds. Income available to the AG (after all appropriate disregards and deductions have been applied) is subtracted from the consolidated need standard. Payment is the lesser of the resulting deficit or the maximum payment per family size.

(3) If an assistance group’s available income equals or exceeds the CNS for the appropriate family size, the AG is not eligible for a Families First grant. If there is a deficit of one dollar ($1.00) to nine dollars, ninety-nine cents ($9.99), no payment can be made, but the AG is deemed to be an eligible Families First assistance group for other purposes, as long as all other points of eligibility continue to be met. If the deficit is ten dollars ($10.00) or more and other eligibility requirements are met, payment will be made.

(4) Payments.

(a) Families First payments are issued on a monthly basis and are paid for the current month.

(b) Initial payments are made beginning with the date of application if all other eligibility factors are met at that time, or at the first of the month in which eligibility is achieved, whichever is later.

(c) The amount of the payment will be:

1. The deficit, after countable income has been subtracted from the CNS, but not less than $10.00 per month; or 2. A maximum payment amount for each family size, which is based on available state and federal funds.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-3-152, 71-3-153, 71-3-154, 71-3- 155, and 71-3-158(d)(2)(D); Public Acts of 1996, Chapter 950; Public Acts of 2007, Chapter 31; 42 U.S.C. §§ 601, et seq.; 42 U.S.C. § 608(a)(6); 45 C.F.R. § 233.20; Deficit Reduction Act 2005 (PL 109-171 §§ 7101 and 7102, February 8, 2006); and 71 Federal Register 37454 (June 29, 2006).
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Tenn. Comp. R. & Regs. 1240-01-50-.18 TREATMENT OF INCOME FROM SELF-EMPLOYMENT

(1) Determining Income From Self-Employment.

(a) Annual Income. Income which is received annually, and/or which is an integral part of annual income will be totaled and prorated over 12 months, even if the income is received only once or over a period of time shorter than twelve months. Such income is usually derived from farming but may also apply to other self-employment enterprises.

Annual income will be prorated over 12 months even if a person has income from sources other than self-employment. Income received once annually will be prorated over 12 months beginning with the month the income is received. Income which represents annual income but which is received periodically during a year will be totaled and averaged over 12 months. This average figure will be used to project future income (if all other factors remain relatively constant). If a self-employed person is under contract, the 12-month period begins the first month the person receives payment under the contract.

(b) Income from Migrant Labor, Seasonal Work. An estimated average monthly income from migrant labor, seasonal farm work and other seasonal employment will be considered during the months it is received.

(c) Monthly Self-Employment Income. When self-employment income is received monthly, the average monthly income will be estimated based on past income and substantial changes in circumstances which have occurred, such as an increase or decrease in business.

(d) Self-Employment as Part of Total Income. Self-employment income which is obtained only for a specific period of time will be averaged over the months it is received.

(e) Income From a New Business. When a self-employment enterprise has been in operation less than a year, the Families First grant will be based on current income and a change will be made at the time the AG reports income on which a more reasonable projection can be made, or when a pattern of average income is discovered.

(2) Special Income Consideration.

(a) Rental Property.

1. Income derived from rental property is considered as earned income if the individual is actively engaged in producing such income. “Actively engaged” means the individual has some responsibility in earning the income. This responsibility may include managerial activities. However, if the individual has no specific responsibility in earning the income, such as where rental properties are in the hands of rental agencies and the check is forwarded to the individual or where an individual rents farm land to others and receives a money payment, the income would not be classified as earned income. The cost of doing business is an allowable deduction regardless of whether the income is earned or unearned.

(b) Capital Gains. The proceeds from the sale of capital goods or equipment are calculated in the same manner as a capital gain for Federal income tax purposes. Even if only 50% of the proceeds from the sale of capital goods or equipment is taxed for Federal income tax purposes, the worker shall count the full amount of the capital gain as income.

(3) Costs Of Producing Income From Self-Employment.

(a) When a member of the AG is self-employed, he/she shall be required to keep a record of expenses incurred in the production of this income.

(b) Expenses.

1. Allowable costs of producing income from self-employment include, but are not limited to:

(i) Identifiable costs of labor (salaries, employers share of Social Security, insurance, etc.);

(ii) Stock, raw materials, seed and fertilizer, feed for livestock;

(iii) Rent and cost of building maintenance;

(iv) Business telephone costs;

(v) Costs of operating a motor vehicle when required in connection with the operation of the business;

(vi) Interest paid to purchase income producing property;

(vii) Insurance premiums and taxes paid on income producing property;

(viii) Costs of feed for work stock; and (ix) Costs of meals and equipment for children for whom day care is provided in the self-employed person’s home 2. Unallowable Deductions. The following are not considered as costs of producing self-employment income and shall not be deducted from the AG’s selfemployment income;

(i) Payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery and other durable goods;

(ii) Net losses from previous periods;

(iii) Federal, state, and local income taxes, money set aside for retirement purposes, and other work-related personal expenses (such as transportation to and from work). (These expenses are accounted for in the flat work expense deduction/disregard.);

(iv) Costs of producing home produce intended for family consumption;

(v) Family living expenses;

(vi) Depreciation.

(4) Determining Monthly Income When Averaged. For the period of time over which selfemployment is determined, add all gross self-employment income (including capital gains), exclude the costs of producing the self-employment income, and divide the self-employment income by the number of months over which the income will be averaged.

(5) Determining Monthly Income When Anticipated. For those AGs whose self-employment income is not averaged, but instead is calculated on an anticipated basis, add any capital gains the AG anticipates it will receive in the next 12 months (starting with the date the application is filed) and divide this amount by 12. Use this amount in successive months unless the anticipated amount of capital gains changes. Add the anticipated monthly amount of capital gains to the anticipated monthly self-employment income and subtract the cost of producing the income. Except for depreciation, calculate the cost of producing the selfemployment income by anticipating the monthly allowable costs of producing the selfemployment income.

(6) Assistance Groups With Boarders.

(a) AGs that take in boarders or that operate commercial boarding houses are considered self-employed. Identifiable expenses are allowed as a cost of doing business as in any self-employment enterprise.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.19 INCOME OF RESIDENT FARM LABORERS, MIGRANT ASSISTANCE GROUPS,

SCHOOL EMPLOYEES AND OTHER CONTRACTUAL EMPLOYEES.

(1) Resident Farm Laborers.

(a) Stable Income - Single Employer.

1. Farm laborers whose primary source of income is from regular farm employment with the same employer are normally employed for the entire year and receive a regular monthly salary.

2. The regular monthly income figure will be used to determine the amount of the Families First grant.

(b) Irregular Income - Single Employer.

1. When an AG member is paid for work done only during the work season, but resides year round on the farm, he/she may receive advance or deferred payments (sometimes known as “furnish”) during the non-work season. This irregular income shall be averaged over a 12 month period.

(c) Regular or Irregular Income - Multiple Employers. When a farm laborer works regularly for more than one employer, the total income from all employers must be counted.

(2) Migrant Farm Laborers.

(a) Resources. It must be determined whether migrants have out-of-state resources or income from real property in their home area. A migrant family is permitted one home and lot as an exempt resource, as any other Families First AG. If an AG owns out-ofstate real property it must be determined if it is being rented or is producing income. If it is producing income, such income must be added to all other AG income in determining need and amount of assistance.

(b) Employment and Training. Migrant workers must participate in the Families First Employment and Training program as any other applicant or recipient.

(c) Income of Children in Migrant AGs. Income of a child in a migrant AG is treated the same as that of any other child for whom Families First eligibility is being determined. If the amount of income belonging to a particular child cannot be determined, prorate equally the total income of all employed AG members and treat the child’s prorata share as his/her own income.

(3) School Employees. The average monthly income of school employees will be considered available during the months it is received.

(4) Income Of Other Contractual Employees. The average monthly income of persons employed on a contractual basis (other than school employees) will be considered as income during the period covered by the contract.

(5) Temporary Employment Of A Person Under Contract. Income from temporary employment will be budgeted as available only in the months received.

(6) Unemployment Compensation. Unemployment compensation is counted as income only in the months it is received.

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; Public Acts of 1996, Chapter 950; and 45 C.F.R. § 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-50-.20 STANDARD OF NEED/INCOME

(1) Families First Cash Assistance Standards (a) Consolidated Need Standard (CNS). The Department has developed a consolidated standard of need based on size of the assistance group (AG), which indicates the amount of income the assistance group would need to meet subsistence living costs according to allowances set by the state for items including food, clothing, shelter and utilities, transportation, medical care, personal incidentals, and school supplies. The CNS is used as the basis for determining the gross income standard (GIS), the standard payment amount (SPA), and the Differential Grant Payment Amount (DGPA).

(b) Gross Income Standard (GIS). This standard is set at One Hundred Eighty-Five Percent (185%) of the consolidated need standard. If the gross countable income of an assistance group exceeds this standard, the Assistance Group (AG) is not eligible for Families First.

(c) Standard Payment Amount (SPA). Tennessee does not meet One Hundred Percent (100%) of need as defined by the consolidated need standard. Rather, a maximum payment by family size, dependent on available State and Federal funds is paid, except in the instances specified in 1240-01-50-.20(1)(e).

(d) Differential Grant Payment Amount (DGPA). A Families First Assistance Group which meets any one of the criteria listed below will be eligible for a grant based on the Differential Grant Payment Amount (DGPA). The DGPA is a maximum payment by family size, dependent on funds available, except in the instances specified in subparagraph (e) below. AGs that are eligible to receive the DGPA are:

1. AGs with no eligible adult in the AG. This exemption does not apply if the sole reason there is no adult in the AG is due to penalty or sanction or if the adult is an ineligible alien.

2. AGs in which the caretaker is age sixty-five (65) or older.

3. AG in which the caretaker is age sixty (60) or older as of July 1, 2007.

4. AGs in which the caretaker is disabled.

5. AGs in which the caretaker must provide in-home care for a relative who lives in the home who is disabled and requires full-time care.

(e) Family Benefit Cap 1. No additional benefits will be issued due to the birth of a child when the birth occurs more than ten (10) calendar months after the later of:

(i) The date of application for Families First, or (ii) The date of implementation of the Families First program (September 1, 1996), as provided by T.C.A. § 71-3-151, unless:

(I) The child was conceived as the result of verified rape or incest;

(II) The child is the firstborn (including all children in the case of a multiple birth) of a minor included in the Families First grant who becomes a first-time minor parent;

(III) The child does not reside with his/her parent;

(IV) The child was conceived in a month the AG was not receiving Families First; or (V) The child was already born prior to the later of the date of application for Families First or the date of implementation of Families First, and the child has entered or returned to the home.

2. The additional child will be included in the need standard for the purpose of determining Families First eligibility. The income of the child, including child support, will be applied against the need standard in determining the Families First payment amount for the family. The child will be considered a Families First recipient for all other purposes.

3. The family benefit cap will not apply to a subsequent period of eligibility for families who reapply for Families First subsequent to receipt of cash assistance as long as the reason for prior case closure was other than a failure to comply with work or child support enforcement requirements or other Personal Responsibility Plan provisions, and the parent/caretaker had cooperated with the Department as defined in departmental policies for the Families First program.

(i) Departmental policies and rules with which the parent/caretaker must cooperate include, but are not limited to:

(I) Child support cooperation requirements, such as identifying the absent parent, meeting with child support enforcement staff, submitting a child for blood testing, and testifying in court if necessary;

(II) Carrying out and fulfilling Personal Responsibility Plan provisions and requirements; or (III) Carrying out and fulfilling Work Plan provisions and requirements.

(f) An assistance payment is determined as follows:

1. If the assistance group’s net income (after allowable exclusions and deductions) equals or exceeds their consolidated need, the assistance group is not eligible.

2. If the assistance group’s net income is less than their consolidated need, the monthly grant amount is the smaller of a maximum payment amount by family size (SPA or DGPA, as appropriate) or the deficit if it is ten dollars ($10) or more.

If the deficit is one dollar ($1) - nine dollars ($9), the AG is eligible for Medicaid (TennCare) only, and is deemed to be a Families First recipient group.

In the case of an AG receiving Families First because one or both parents are unemployed, if the Principal Wage Earner (PWE) receives Unemployment Compensation (UC) the UC benefit is deducted from the grant amount determined after deducting all other countable income from the CNS, to determine the actual amount of Families First payment for the AG.

3. The minimum monthly grant which can be paid is ten dollars ($10).

(g) Families First Need/Payment Standards 1. The following table shows the maximum income level and consolidated standard of need to be used in the Families First program to determine eligibility and amount of payment.

Number of Persons in Assistance Group 1 2 3 4 5 6 7 8 9 10 Gross Income Standard 1806 2535 2866 3241 3487 3717 3924 4114 4255 4390 Consolidated Need Standard 976 1370 1549 1752 1885 2009 2121 2224 2300 2373 Number of Persons in Assistance Group 11 12 13 14 15 16 17 18 19 20 Gross Income Standard 4695 4836 4956 5067 5173 5278 5374 5469 5561 5650 Consolidated Need Standard 2538 2614 2679 2739 2796 2853 2905 2956 3006 3054 2. The Families First standard payment amount (maximum payment) for an assistance group of three (3) persons represents 25.0% of the consolidated need for an assistance group of that size. The Families First standard payment amount (maximum payment) for all assistance group sizes shall be determined as provided in T.C.A. § 71-3-105(f).

3. The Families First maximum differential grant payment amount for an assistance group of three (3) persons represents 31.4% of the consolidated need for an assistance group of that size.

(i) The Families First maximum differential grant payment amount for assistance groups of one (1) through five (5) persons shall be one hundred dollars ($100) greater than the maximum standard payment for each respective assistance group size.

(ii) The Families First maximum differential grant payment amount for assistance groups of six (6) or more persons shall be the same as the maximum standard payment for each respective assistance group size.

4. Work Incentive Program.

(i) Families First recipients will be eligible to receive Work Incentive Program payments when the recipient becomes financially ineligible due to an increase in earned income, provided the recipient continues to meet all other eligibility criteria.

(ii) Incentive participants will receive the Work Incentive Program payments for no more than six (6) months with the payment amount being determined by issuing the maximum grant allotment for all eligible household members at the time the recipient became financially ineligible due to the increase in earned income.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105; 71-3-101, et seq.; 71-3-104; and 71-3-105; 42 U.S.C. §§ 601, et seq.; 42 U.S.C. § 1315; 45 C.F.R. § 233.20; 45 C.F.R. § 261.2(b)-(n); 45 C.F.R. § 261.10; and 45 C.F.R. § 261.30-.32.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed October 10, 1997; effective December 24, 1997. Amendment filed September 24, 1998; effective December 8, 1998. Amendment filed November 18, 1999; effective January 31, 2000. Amendment filed September 29, 2000; effective December 13, 2000. Amendment filed October 3, 2001; effective December 17, 2001. Amendment filed August 28, 2002; effective November 11, 2002. Amendment filed December 13, 2002; effective February 26, 2003. Amendment filed August 20, 2003; effective November 3, 2003. Repeal and new rule filed September 21, 2004; effective December 5, 2004. Public necessity rule filed July 1, 2005; effective through December 13, 2005. Repeal and new rule filed August 23, 2005; effective November 6, 2005. Public necessity rule filed July 3, 2006; effective through December 15, 2006. Amendment filed August 25, 2006; effective November 8, 2006. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed August 20, 2007; effective November 3, 2007. Amendment filed October 1, 2007; effective December 15, 2007. Public necessity rule filed July 1, 2008; effective through December 13, 2008. Amendment filed September 10, 2008; effective November 24, 2008. Amendments filed August 31, 2018; effective November 29, 2018. Amendments filed April 1, 2021; to have become effective June 30, 2021. However, a 1-day stay of the effective date of the rule was filed June 7, 2021; new effective date July 1, 2021.

Tenn. Comp. R. & Regs. 1240-01-50-.21 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq. and 71-1-105; 42 U.S.C. § 657; and PL 104-193 § 302(a).
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Repeal filed July 5, 2002; effective September 18, 2002.

Chapter 1240-01-51 Periods of Eligibility

Tenn. Comp. R. & Regs. 1240-01-51-.01 ELIGIBILITY FOR FAMILIES FIRST - TIME LIMITS

(1) Receipt of Families First cash benefits will be limited to sixty (60) months, as calculated in paragraphs (2) and (3) below, unless the assistance group meets certain extension criteria, as specified in paragraph (4) below.

(a) Reserved for future use.

(b) Reserved for future use.

(2) Calculation of sixty (60) -month time limit.

For persons who were eligible for and received a Families First grant prior to July 1, 2007, then any month prior to July 1, 2007 that was exempt from, or that was otherwise not countable toward, the sixty (60) -month time limit pursuant to applicable law, these rules as in effect prior to such date, or pursuant to the Department’s U.S. Department of Health and Human Services Families First waiver of July 25, 1996 as it existed prior to July 1, 2007, shall not be counted toward the sixty (60) -month time limit; provided, however, that for applications or re-application (reapplication means the person has been off the program for at least thirty (30) days) for Families First made on or after July 1, 2007, all months in which a TANF grant was received in any other state or territory on or after August 22, 1996 shall be counted. Months of receipt of Families First or TANF grants accrued after July 1, 2007 shall be counted per applicable laws and rules in effect on and after such date. Therefore, any months accrued in another state before July 1, 2007 will continue to be exempt as long as the person doesn’t leave Families First then re-apply. Otherwise, all accrued months will be counted and any months accrued while on TANF in other states after July 1 will also be counted.

(3) Exclusions from Countable Months. For the purpose of calculating the months for which assistance is received under the sixty (60) -month time limit, the following months will not count:

(a) Months in which Families First cash assistance was received as a dependent child by a caretaker who later makes application for Families First as an adult.

(b) Reserved for future use.

(c) Months during which an AG did not receive a Families First grant. This could be due to the AG qualifying for a grant less than ten dollars ($10.00) or to the AG having a recoupment of their grant that left the AG with a grant less than ten dollars ($10).

(d) Months during which the AG is in a sanction status which results in no benefit being paid to the entire unit.

(e) Reserved for future use.

(f) Reserved for future use.

(g) Reserved for future use.

(h) Reserved for future use.

(4) Extensions To The sixty (60) -Month Time Limits. The following AGs may qualify for an extension to the 60-month time limit for the periods the circumstances below exist:

(a) AGs in which the caretaker is age sixty-five (65) or older;

(b) AGs in which the caretaker is age sixty (60) as of July 1, 2007;

(c) AGs in which the caretaker is disabled;

(d) AGs in which the caretaker must provide in-home care for a relative who lives in the home (e.g., parent, spouse, child) who is disabled and requires full-time care;

(e) AGs in which the caretaker is temporarily incapacitated.

(f) AGs with extenuating circumstances, such as a temporary significant life crisis as defined by policy.

(g) AGs reaching sixty (60) months between July 1, 2007 and July 1, 2008. These AGs will receive a six (6) -month extension.

(h) AGs with a non-parent grantee relative who is not included in the AG and who is not included as a recipient of Families First.

(5) The extensions to the sixty (60) -month time limit found in subparagraphs (4)(a) through (h) will be granted based on funding availability and on the ability of the Department to maintain compliance with federal time limit restrictions.

(6) Two parent Assistance Units. The number of lifetime months for a two-parent household will be the same for both adults. The lifetime total for an AG that is formed when two adults combine households will be that of the adult with the higher number of months accrued. For example, if the adults in a two-parent AG that has accrued 25 months separate, and either parent applies for Families First, the time count for the new case will begin at 26 months. In a second example, if a parent with 10 countable months marries a parent with 15 countable months and they have a child in common, one AG will be formed with a time count of 15 months. If they stay together for 12 months and then separate and reapply, each parent will have a time count of 27 months.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 4-5-209, 71-1-105, 71-1-105(12), 71-3-151 through 71-3- 165, 71-3-154(d)(1)(B) and (c), 71-3-157(c)(1) and (f), and 71-3-158(d)(2)(D), Acts of 1996, Chapter 950, and 42 U.S.C.A. §1315; Federal Waiver of July 26, 1996 pursuant to §1115 of the Social Security Act; 42 U.S.C. §§ 601 et seq., 42 U.S.C.§ 607(c) and (d), 42 U.S.C. § 608(a)(7) and 42 U.S.C. § 609(a)(9); 45 C.F.R. § 261.2(b) through (m), 45 C.F.R.§ 261.2(n), 45 C.F.R. § 261.10, 45 C.F.R. § 261.14, 45 C.F.R. § 261.30; Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed June 21, 2002; effective September 4, 2002. Amendment filed December 13, 2002; effective February 26, 2003. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Chapter 1240-01-52 Families First Underpayments and Overpayments

Tenn. Comp. R. & Regs. 1240-01-52-.01 DEFINITIONS

(1)Administrative (Agency) Error. An overpayment or underpayment caused by an error made by any representative of the Department of Human Services. Administrative errors may include, but are not limited to:

(a)Failure to take timely action on a change reported by the AG or known to the department;

(b)Incorrect computation of the AG’s income or deductions, or authorization of an incorrect grant amount; or (c)Incorrect application of policy.

(2)Claim. The data describing a debt due the state and the unpaid balance of that debt.

(3)Collection. The process of collecting an overpayment.

(4)Grant (Benefit) Reduction. Process of recovering an overpayment from an active assistance group by withholding an amount equal to 10% of the payment standard from the monthly Families First check, so that the AG retains, for any payment month, from the combined aid, income, and liquid resources (without application of earned income disregards) not less than 90% of the amount payable to a family of the same composition with no other income.

(5)Improper Payment Error. An overpayment caused by a change that was reported timely but caused ineligibility for the month the change occurred. An improper payment error occurs when the AG was overpaid because the caretaker relative was on strike as of the last day of the month. For the purpose of this section, “caretaker relative” is defined as any natural or adoptive parent.

(6)Inadvertent Client Error. A misunderstanding or unintentional failure on behalf of the A/R to provide correct information or to report changes timely and accurately.

(7)Intentional Program Violation. An intentional program violation is an action by an individual for the

purpose of establishing or maintaining a family’s eligibility for Families First, or for increasing or preventing a decrease in the amount of the grant, which is intentionally a false or misleading statement, or a misrepresentation, concealment or withholding of facts, or any act intended to mislead, misrepresent, conceal, or withhold facts or propound a falsity.

(8)Overpayment. Benefits received by an AG which exceed the amount of benefits they were eligible to receive.

(9)Suspected Intentional Program Violation. A determination made by the agency that an overpayment has occurred because the client intentionally provided information that was possibly incorrect or misleading.

(10)Underpayment. Benefits received by an AG that are less than the amount of benefits they were eligible to receive.

History

• Authority: TCA §§4-5-201 et seq. and 71-1-105; Public Chapter 950 (1996); 45 CFR 233.20; 45 CFR 233.106.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-52-.02 LEGAL PROVISIONS

Title IV-A, Section 402(a)(22) of the Social Security Act and 45 CFR 233.20(a)(13) require prompt recovery of overpayments and correction of underpayments. The law provides for criminal prosecution of individuals who fraudulently receive Families First benefits to which they are not entitled.

History

• Authority: TCA §§4-5-201 et seq., 71-1-105, and 71-3-120; Public Chapter 950 (1996); 45 CFR 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-52-.03 OVERPAYMENTS AND CLAIMS

(1)A claim must be established against any assistance group that received more Families First benefits than they were eligible to receive, regardless of the reason for the overpayment.

(2)Overpayments may occur as a result of:

(a)Administrative (agency) error;

(b)Inadvertent client error;

(c)Improper payment error; or (d)Suspected intentional program violation.

History

• Authority: TCA §§4-5-201 et seq. and 71-1-105; Public Chapter 950 (1996); 45 CFR 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-52-.06 ESTABLISHING THE PERIOD AND AMOUNT OF THE OVERPAYMENT

(1)The policies and need/payment standards that were in effect during the time the overpayment occurred must be used to establish the period and amount of the overpayment. An overpayment can be established for any prior period if the circumstances and overpayment can be determined.

(2)The amount of the gross overpayment is the difference between all IV-A benefits the assistance group received and the benefits they were entitled to receive. The net overpayment is determined by reducing the gross overpayment by any IV-D reimbursements of the grant.

(3)Overpayment Determinations. Overpayments/ineligibility begin the month a change could have been effected if timely reported by the client or if the case action had been completed timely by the Department.

(4)Earned Income Penalty. When the individual responsible for causing the overpayment has earned income, the earned income disregards are not allowed when calculating the amount of the overpayment.

History

• Authority: TCA §§4-5-201 et seq. and 71-1-105; Public Chapter 950 (1996); 45 CFR 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-52-.04 CORRECTION OF FAMILIES FIRST UNDERPAYMENTS

(1)A Families First underpayment occurs when an assistance group receives less cash assistance than they were entitled to.

(2)Corrective Action must be taken to restore benefits retroactively any time an underpayment for a prior period is discovered.

History

• Authority: TCA §§4-5-201 et seq. and 71-1-105; Public Chapter 950 (1996); 45 CFR 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-52-.05 PROCEDURES FOR PROCESSING CLAIMS

Procedures for processing claims in each county are to be established by the district and county administrative staff. The provisions at 1240-1-19-.07 regarding notice of adverse action and right to appeal shall be followed.

History

• Authority: TCA §§4-5-201 et seq. and 71-1-105; Public Chapter 950 (1996); 45 CFR 205.120.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-52-.07 COLLECTION OF FAMILIES FIRST OVERPAYMENTS

(1)Collection action must be initiated after the overpayment has been established and the claim prepared.

(2)The overpayment must be recovered from:

(a)The assistance group which was overpaid; or (b)Any AG of which the caretaker and/or other adult member of the overpaid AG has subsequently become a member.

(3)The net overpayment will be collected through:

(a)Grant reduction;

(b)Lump sum repayment; or (c)Installment payments, through a repayment agreement. If an active recipient fails to make a scheduled installment payment, the case may go immediately to grant reduction.

History

• Authority: TCA §§4-5-201 et seq. and 71-1-105; Public Chapter 950 (1996); 45 CFR 233.20.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Chapter 1240-01-53 Families First Intentional Program Violations

Tenn. Comp. R. & Regs. 1240-01-53-.01 INTENTIONAL PROGRAM VIOLATIONS DEFINED

An intentional program violation is an action by an individual for the purpose of establishing or maintaining a family’s eligibility for Families First, or for increasing or preventing a decrease in the amount of the grant, which is intentionally a false or misleading statement, or a misrepresentation, concealment or withholding of facts, or any act intended to mislead, misrepresent, conceal, or withhold facts, or propound a falsity.

History

• Authority: T.C.A. §§4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 CFR 235.112 and 235.113.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-53-.02 NOTICE OF POLICY REGARDING DISQUALIFICATION PENALTIES

All Families First applicants must be provided a written notice informing them of the disqualification penalties for fraud under chapter 1240-5-15 at the time of application.

History

• Authority: T.C.A. §§4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 CFR 235.112 and 235.113.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-53-.03 PRE-HEARING INVESTIGATION REQUIREMENTS

Prior to conducting an administrative disqualification hearing under chapter 1240-5-15, an investigation of an allegation that a person committed an intentional program violation must be conducted.

History

• Authority: T.C.A. §§4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 CFR 235.112 and 235.113.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-53-.04 ADMINISTRATIVE ACTIONS PENDING DISQUALIFICATION PROCEEDINGS

Pending the outcome of a disqualification proceeding, pursuant to chapter 1240-5-15, DHS may take any necessary action to discontinue, terminate, suspend, or reduce assistance, or change the manner or form of payment to a protective, vendor, or two-party payment for reasons unrelated to the reason for the disqualification hearing.

History

• Authority: T.C.A. §§4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 CFR 235.112 and 235.113.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-53-.05 DISQUALIFICATION PENALTIES

(1)Scope. An individual who, on the basis of a plea of guilty, nolo contendere, or otherwise, is found to have committed an intentional program violation after the results of an administrative disqualification hearing (ADH) by a state or federal court will be disqualified from participating in the Families First program. The disqualification penalty is limited to the individual(s) found guilty of having committed an intentional program violation.

(2)Penalty. An individual found to have committed an intentional program violation as set forth in this

chapter shall not have his/her individual needs taken into account when determining the assistance group’s need and amount of assistance, but any resources and income of the disqualified individual will be considered available to the assistance group, except that the earned income disregards shall be applied to any earnings of the disqualified individual.

(3)Duration of Penalty. Upon the first occasion of any such offense, the individual’s needs shall not be taken into account for six (6) months; twelve (12) months upon the second occasion of any such offense; and permanently upon the third or a subsequent occasion of any such offense.

(4)Applicability of Penalty. In cases where a disqualification penalty and other sanctions or penalties apply, the disqualification penalties affect the individual concerned and cannot be substituted for other sanctions under the Families First program (e.g., failure to participate in the Families First Employment and Training program or to cooperate with Child Support Enforcement) but may run concurrently with other sanctions which are in place. After the disqualification period expires, the person will have to meet all eligibility requirements before being added to the Families First AG.

(5)Imposition of the Disqualification Penalty.

(a)A disqualification penalty will be imposed only after the issuance of a Final Administrative Order finding the individual guilty of committing an intentional program violation and the period of disqualification will commence no later than the second month following the date of the Final Order, or, in the event of a finding by a state or federal court that the individual is guilty of committing an intentional program violation, the penalty will be imposed according to the terms of the court order. If the court order is silent on imposition of the penalty, the penalty will begin no later than the second month following the date of the court order.

(b)Where the individual’s disqualification results from a prior receipt of AFDC or Families First and the case is closed, the disqualification will run as if the person were an active recipient.

(6)Notice of Disqualification. The Department of Human Services shall cause to be sent to the individual who has been found to have intentionally violated this program by a Final Order as found in rule 1240- 5-15 or has entered into a consent agreement as provided in rule 1240-1-53-.06 a notice which contains at least the following:

(a)The period of disqualification as provided for in this section;

(b)The amount of payment, if any, the AG will receive during the disqualification period; and (c)In cases of an individual’s disqualification resulting from a prior receipt of assistance, the disqualification will run as if the person were an active recipient.

(7)Stay of Penalty. Any period for which a disqualification penalty is imposed shall remain in effect, without possibility of an administrative stay, unless and until a finding upon which the penalty was based is subsequently reversed by a court of appropriate jurisdiction; but in no event shall the duration of the period for which the penalty is imposed be subject to review.

Even if the case is closed, the period of disqualification continues as if it were an active case.

History

• Authority: T.C.A. §§4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 CFR 235.112 and 235.113.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-53-.06 COURT ACTIONS ON CONSENT AGREEMENTS

(1)The Department of Human Services may enter into an agreement with the local district attorney’s office allowing said district attorney to enter into consent agreements with accused intentional program violators. The agreement shall be filed with a court of competent jurisdiction and approved by the court. Prior to entering into a consent agreement with the accused individual, the district attorney’s office shall send advance written notice to the accused of the consequences of entering into such an agreement. The advance written notice, prepared by the Department of Human Services, shall contain at a minimum the following:

(a)A statement for the accused individual to sign that he/she understands the consequences of signing the agreement, along with a statement that the caretaker relative must also sign the agreement if the accused individual is not the caretaker relative;

(b)A statement that signing the agreement will result in a reduction in payment for the appropriate period; and (c)A statement of which disqualification period will be imposed as a result of the accused individual signing the agreement.

(d)After the court confirms the agreement, the Department will provide a written notice to the individual which specifies the period of disqualification (which shall be no later than the first day of the second month which follows the date of the notice), and the amount of the payment the unit will receive during the disqualification period. However, if the court specifies the date for initiating the disqualification period, the Department shall disqualify the accused individual in accordance with the court order. If an individual whose case has been terminated signs a consent agreement, the disqualification period shall begin no later than the first day of the second month which follows the date of notice.

History

• Authority: T.C.A. §§4-5-201 et seq., 71-1-105, 71-3-120, 71-3-157, 71-3-158, Public Acts of 1996, Chapter 950, and 45 CFR 235.110, 235.112, and 235.113.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002.

Chapter 1240-01-54 Child Care - Families First Program

Tenn. Comp. R. & Regs. 1240-01-54-.01 FAMILIES FIRST CHILD CARE

If child care is required to enable a Families First recipient to accept or hold employment or to engage in employment-related activities, the Department can provide for the cost of child care in either of two ways. The recipient may choose the manner in which child care will be provided, as described in (1) and (2) below, whichever is most advantageous to the AG.

(1) Deduct the cost of child care from earnings in accordance with 1240-1-50-.16(1)(c)5.(ii); or (2) Direct payment to a child care provider for the cost of care (up to established maxima).

(3) When Families First eligibility is dependent on the deduction of child care from earnings, this will be the method used to provide child care for that individual.

(4) Families First child care cannot be used for persons not included in the AG (e.g., a grandmother who is the caretaker of children in the AG, but is not herself included in the AG.)

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, 45 C.F.R. § 255.2 and 255.3, and § 1115 of the Social Security Act.
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997.

Tenn. Comp. R. & Regs. 1240-01-54-.02 TRANSITIONAL CHILD CARE COVERAGE

(1) Transitional Child Care (TCC) shall be provided following the effective date of the Families First/TANF case closure for a minimum of a twelve (12) month period of time, beginning with the month following the effective date of the Families First/TANF closure for any reason except for closures resulting from circumstances described in paragraphs (3) or (4). If the recipient does not request TCC at case closure and then later requests TCC, then TCC will only be provided for the remaining months in the twelve (12) month period of time that followed case closure.

(2) TCC for a minimum of twelve (12) months shall be provided when:

(a) The caretaker has a minimum of thirty (30) hours per week in allowable activities, as defined by policy;

(b) The individual’s gross wages equal the current federal minimum wage when averaged over the number of hours worked per week; and (c) Total family income is below the income level established in State Transitional Child Care policies. This income level will be set at sixty percent (60%) of the state median income or higher.

(3) An Assistance Unit (AU) is eligible for TCC for at least three (3) months, beginning with the month after the Families First/TANF AU becomes ineligible when the case is closed due to noncompliance with work and/or educational activities requirements.

(4) Eligibility for Transitional Child Care (TCC) ends and does not begin again until re-application for Families First, when:

(a) The AU moves out of state;

(b) There is no eligible adult;

(c) The only child in the assistance unit leaves the home;

(d) The case has no minor parent (Eligible Child) in the AU who has signed a Personal Responsibility Plan;

(e) The case that was approved for interim benefits is later found to have been ineligible for Families First;

(f) The caretaker fails to cooperate with child support establishment and enforcement requirements as determined by the Department; or (g) The established period of TCC eligibility ends.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105; 71-3-104(b)(1); 71-3-107; 71-3-108; 42 USCA § 1315(a); 42 U.S.C. § 9858c(c)(2)(N)(i-iii).
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Amendment filed July 5, 2002; effective September 18, 2002. Amendment filed November 24, 2003; effective February 7, 2004. Repeal and new rule filed April 2, 2014; effective July 1, 2014. Emergency rules filed September 30, 2016; effective through March 29, 2017. Amendments filed December 8, 2016; effective March 8, 2017.

Chapter 1240-01-55 Repealed

Tenn. Comp. R. & Regs. 1240-01-55 Repealed

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

FAMILY ASSISTANCE DIVISION

REPEALED

Authority: T.C.A. §§ 4-5-201, 4-5-202, 4-5-209, 71-1-105; 71-3-158(d)(2)(D); and 71-3-163; 42 U.S.C. §§ 601 et seq. and 42 U.S.C. § 608(a)(6)(A); Deficit Reduction Act 2005 (Pub. L. 109-171 §§ 7101 and 7102, February 8, 2006); 71 Federal Register 37454 (June 29, 2006); and Acts 2007, Chapter 31. Administrative History: Original

rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Amendment filed October 1, 2007; effective December 15, 2007.

Chapter 1240-01-56 Pilot Projects - Families First Program

Tenn. Comp. R. & Regs. 1240-01-56-.01 PATHWAYS TO PROSPERITY PILOT PROGRAM

(1) Pursuant to T.C.A. § 71-3-104(a)(2), the Department shall operate a two-year pilot program establishing an optional alternative temporary assistance pathway offering enhanced cash assistance and/or enhanced support services for families with individuals who are actively pursuing a degree, professional certification, or other educational advancement.

(2) Definitions.

(a) “Enhanced cash assistance” means twice the amount of cash assistance for which the family would qualify under Chapter 1240-01-50.

(b) “Enhanced support services” means services provided to address barriers or other impediments to an individual’s pursuit of educational advancement or ability to obtain and maintain employment, including, but not limited to, services such as vehicle repair, dental services, and optical services.

(3) In addition to the eligibility requirements of T.C.A. § 71-3-104(a)(1) for temporary assistance under the Families First Program, to participate in this pilot program:

(a) An individual must be actively participating in the Families First work requirement; and (b) An individual must be actively pursuing a degree, professional certification, or other educational advancement.

(4) A family may elect that all enhanced temporary assistance for which the family qualifies under this pilot program be provided as enhanced support services, rather than enhanced cash assistance.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105; and 71-3-104(a)(2).
• Administrative History: Original rule filed December 2, 1996; effective February 15, 1997. Public necessity rule filed July 2, 2007; expired December 14, 2007. Repeal filed October 1, 2007; effective December 15, 2007. New rule filed October 13, 2023; effective January 11, 2024.

Chapter 1240-01-57 Families First Eligibility - Drug Screening and Testing

Tenn. Comp. R. & Regs. 1240-01-57-.01 PURPOSE

(1) The purpose of this Chapter is to establish a process to screen for, and, if appropriate, test for the use of drugs, as defined in this Chapter, by applicants for Families First/TANF benefits, and to refer persons found to be using such drugs for a substance abuse evaluation and any necessary treatment; and (2) Provide for the appropriate use of Families First/TANF benefits for the children of recipients.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-3-1201 et seq., 21 U.S.C. § 862b.
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014.

Tenn. Comp. R. & Regs. 1240-01-57-.02 DEFINITIONS

For the purposes of this Chapter:

(1) “Assistance Unit (AU)” means the “aid group (AG)” or group of people applying for or receiving Families First/TANF cash assistance benefits.

(2) “Applicant” is an individual who makes application for Families First/TANF cash assistance.

(3) “Caretaker relative” means the father, mother, grandfather or grandmother of any degree, brother or sister of the whole or half-blood, stepfather, stepmother, stepbrother, stepsister, aunt or uncle of any degree, first cousin, nephew or niece, the relatives by adoption within the previously named classes of persons, and the biological relatives within the previous degrees of relationship, and the legal spouses of persons within the previously named classes of persons, even if the marriage has been terminated by death or divorce, with whom a child is living.

(4) “Chain of custody” means the methodology of tracking specified materials or substances for the purpose of maintaining control and accountability from initial collection to final disposition for all such materials or substances, and providing for accountability at each stage in handling, testing and storing specimens and reporting test results.

(5) “Child” or “children” means:

(a) A person or persons under eighteen (18) years of age; or (b) A person who has not attained nineteen (19) years of age and who is a full-time student in a secondary school or the equivalent and who is expected to graduate by the person’s nineteenth birthday.

July, 2014 2 (6) “Confirmation test,” “confirmed test” or “confirmed drug test” means a second analytical procedure used to identify the presence of a specific drug as defined in this Chapter, or its metabolite, in a specimen, which test must be different in scientific principle from that of the initial test procedure and must be capable of providing requisite specificity, sensitivity and quantitative accuracy.

(7) “Department” means the Department of Human Services.

(8) “Drug” means marijuana, cocaine, methamphetamine, amphetamine, and opiates, such as, but not limited to, morphine.

(9) “Drug screening” consists of a questionnaire regarding the Families First applicant’s current and prior use of drugs as defined in paragraph (8).

(10) “Drug test” or “test” means any chemical, biological or physical instrumental analysis administered by an authorized drug testing agency, using the applicant’s urine, for the

purpose of determining the presence or absence of a drug or its metabolites pursuant to this

Chapter.

(11) “Drug testing agency” means an entity that has the required credentials as established by regulatory or certification authorities to administer tests using a person's urine, blood or DNA that will detect and validate the presence of drugs in such person's body.

(12) “Drug treatment period” is the length of the treatment plan, not to exceed six (6) months. If the treatment plan requires more than six (6) months in a continuum of care, the Families First applicant may take a drug test at the end of six (6) months of treatment to determine the applicant’s continued eligibility for Families First benefits.

(13) “Drug treatment program” means a service provider that provides confidential, timely and expert identification, assessment and resolution of drug or alcohol abuse problems affecting persons, including residential/in-patient drug treatment and outpatient drug treatment.

(14) “Families First” refers to the temporary public assistance program provided under Temporary Assistance for Needy Families (TANF), pursuant to Title IV-A of the Social Security Act.

(15) “Five (5) panel test” means a drug test for marijuana, cocaine, methamphetamine, amphetamine, and opiates that uses a specimen of the applicant’s urine.

(16) “Initial drug test” means a procedure that qualifies as a “screening test” or “initial test.”

(17) “Legal guardian” means a person or entity that has the legal authority to provide for the care, supervision or control of a minor child as established by law or court order.

(18) “Medical review officer (MRO)” means a licensed physician who has knowledge of substance abuse disorders, laboratory testing procedures and chain of custody collection procedures; who verifies positive, confirmed test results; and who has the necessary medical training to interpret and evaluate a Families First/TANF recipient’s positive test result in relation to the recipient’s medical history and current, valid prescription(s), or any other relevant biomedical information.

(19) “Minor” is a person less than eighteen (18) years of age. A minor is considered a “dependent child” if he/she is living with a specified relative and is otherwise eligible.

(20) “New applicant” is an applicant who has not received prior cash assistance under the Families First/TANF program or has not received cash assistance under the Families July, 2014 3 First/TANF program for at least one (1) month due to case closure, for any reason, prior to the application date.

(21) “New application” means that the applicant has not received prior cash assistance under the Families First/TANF program or has not received cash assistance under the Families First/TANF program for at least one (1) month due to case closure, for any reason, prior to the application date.

(22) “Protective payee” means a caretaker relative or a legal guardian of the child; provided, however, that the person defined as a caretaker relative or guardian who is the applicant for Families First/TANF benefits who tests positive for the use of a drug as defined in this

Chapter shall be excluded from this definition.

(23) “Recovery support” means a group or resource for drug abuse treatment and recovery, which includes self-help and support groups, such as, but not limited to, Narcotics Anonymous.

(24) “Specimen” means tissue, fluid or a product of the human body capable of revealing the presence of drugs or their metabolites.

(25) “Treatment plan” is a document used by an approved drug treatment agency that specifies an applicant’s drug treatment program, activities, and continuum of care for a defined time period, subject to continuing assessments. The drug treatment plan may include residential treatment, out-patient treatment, or recovery support groups, or resources for assistance with the Families First/TANF recipient’s drug abuse recovery.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-3-1201 et seq., 21 U.S.C. § 862b.
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014.

Tenn. Comp. R. & Regs. 1240-01-57-.03 PROGRAM OF SUSPICION-BASED DRUG TESTING

(1) Effective July 1, 2014, the Department’s Families First/TANF Program shall conduct a drug screening of new Families First/TANF applicants to determine whether there is reasonable cause to believe the applicant engages in the use of drugs as defined in this Chapter.

(2) Except as provided in subparagraphs (a) and (b) of this paragraph (2), all new Families First/TANF applicants who are eighteen (18) years of age or older and who are otherwise eligible to receive Families First/TANF benefits as defined in Chapters 1240-01-47, 1240-01- 50, and 1250-01-51 are required to submit to the drug testing requirements under this

Chapter, subject to the Department’s finding of reasonable cause.

(a) Dependent children less than eighteen (18) years of age are exempt from the drug screening and testing, provided, however, that any minor parent who is a new Families First/TANF applicant who does not live with a parent, legal guardian, or other adult caretaker relative must submit to drug screening and any required drug testing.

(b) In a two (2)-parent household, only one (1) parent, the new Families First/TANF applicant, shall be required to submit to the drug screening and testing requirements of this Chapter.

(3) The Department’s drug screening and testing program for new Families First/TANF applicants is separate from any employer-required drug screening and/or drug test.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-3-1201 et seq., 21 U.S.C. § 862b.
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014. July, 2014 4

Tenn. Comp. R. & Regs. 1240-01-57-.04 DRUG SCREENING

(1) Effective July 1, 2014, new Families First/TANF applicants shall submit a completed drug screening questionnaire as a part of the eligibility determination for Families First/TANF cash assistance.

(2) Refusal and/or failure, without good cause, to submit a completed drug screening questionnaire shall result in denial of the applicant’s Families First/TANF application.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-3-1201 et seq., 21 U.S.C. § 862b.
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014.

Tenn. Comp. R. & Regs. 1240-01-57-.05 REASONABLE CAUSE

(1) If the Department determines that there is reasonable cause to believe that a new Families First/TANF applicant is using drugs as defined in this Chapter, the applicant shall submit to a drug test at a drug testing agency approved by the Department.

(2) Initial Drug Screening to Determine Reasonable Cause.

(a) Reasonable cause shall exist when the applicant’s completed drug screening questionnaire contains one or more “yes” responses.

(b) Any applicant who answers “yes” to one or more questions on the drug screening questionnaire must submit to a drug test.

(c) Any Families First/TANF applicant/recipient who has a current, valid prescription or prescriptions for a drug or drugs, as defined in this Chapter, may present the prescription(s) to the drug testing agency and/or medical review officer (MRO) as well as inform the agency and/or MRO of any over-the-counter medication the individual is currently taking after submitting to a drug test. No drug for which an applicant has a current, valid prescription shall be a basis for denial of Families First/TANF benefits pursuant to this Chapter.

(3) Failure to complete the drug screening questionnaire or to submit to a drug test based on the results of the drug screening questionnaire, without good cause, shall result in denial of the applicant’s Families First/TANF application.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-3-1201 et seq., 21 U.S.C. § 862b.
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014.

Tenn. Comp. R. & Regs. 1240-01-57-.06 DRUG TEST

(1) All drug tests conducted pursuant to this Chapter shall consist of a five (5) panel drug test, as defined in this Chapter, and be administered by an approved drug testing agency that uses a specimen of the applicant’s urine. All drug tests, including any confirmation test, required under this Chapter shall be paid for by the Department.

(2) Confirmation Test. If a Families First/TANF applicant tests positive for the presence of drugs, as defined in this Chapter, the drug testing agency shall perform a confirmation test using the same urine specimen from the initial positive drug test.

(a) The results of the confirmation tests shall be verified by a MRO in relation to an applicant’s biomedical history as well as any current, valid prescriptions and over-thecounter medication.

July, 2014 5 (b) The Department shall use the MRO’s report, providing an evaluation of the confirmation test, to determine whether the applicant/recipient is eligible for Families First/TANF and whether to refer the applicant/recipient for a substance abuse evaluation.

(3) An applicant who tests positive for a drug as defined by this Chapter shall be ineligible for Families First/TANF, except as otherwise provided by this Chapter.

(4) All drug testing procedures, including chain of custody, specimen handling, and performance of the drug test, shall be in conformity with the requirements of the Tennessee Drug-Free Workplace Act, compiled at T.C.A. § 50-9-101 et seq. to the extent that no requirement is more broad than that provided in T.C.A. § 71-3-1201 et seq. or this Chapter.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-3-1201 et seq., 21 U.S.C. § 862b.
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014.

Tenn. Comp. R. & Regs. 1240-01-57-.07 REFERRAL FOR SUBSTANCE ABUSE EVALUATION, TREATMENT, INELIGIBILITY

FOR BENEFITS, APPEALS.

(1) Drug Treatment Referral. If the results of the confirmation test indicate usage of drugs as defined in this Chapter, the Department shall refer the Families First/TANF recipient for a substance abuse evaluation to determine the appropriate treatment plan and/or recovery support group or resource.

(a) If, as a result of the substance abuse evaluation, the Families First/TANF recipient is determined not to need any drug treatment or drug recovery support, the recipient shall be exempt from the drug treatment requirements under this Chapter and shall continue to be eligible for Families First/TANF benefits.

(b) After submitting to a substance abuse evaluation, if the Families First/TANF recipient is determined to require drug abuse treatment and/or recovery support, the Department, in conjunction with the agency performing the substance abuse evaluation, shall refer the recipient to an appropriate drug treatment facility and/or recovery support group or resource to begin the drug treatment/recovery support plan. The recipient shall have ten (10) business days, after a referral for treatment is made, to provide the Department any of the following, as required under the drug treatment plan:

1. Verification of enrollment in an approved drug treatment program;

2. Verification of placement on a waiting list for an approved drug treatment program; or 3. Verification of attendance at approved recovery support resource meeting.

(c) If the Families First/TANF recipient is placed on a waiting list for enrollment in an approved drug treatment program, the recipient shall continue to receive benefits during the waiting list period; provided, however, the recipient is not eligible for immediate enrollment in any other comparable drug treatment program.

(d) The recipient shall receive benefits for the duration of the drug treatment period, not to exceed six (6) months.

1. The drug treatment period shall begin with the date of the first treatment session in the drug treatment program or the first date of attendance at a drug recovery support group/resource meeting.

July, 2014 6 2. To receive Families First/TANF benefits for the duration of the drug treatment program, not to exceed six (6) months, the recipient must provide the Department with evidence of ongoing compliance with the drug treatment program or recovery support resource, including, but not limited to, verification of attendance and participation in the program on a weekly basis or as otherwise necessitated by the individual treatment plan.

3. If the drug treatment plan requires more than six (6) months in a continuum of care, the Families First/TANF recipient may submit to a drug test at the end of six (6) months of treatment to determine the recipient’s continued eligibility for Families First/TANF benefits.

(e) At the conclusion of the drug treatment period, the Families First/TANF recipient shall submit to another five (5) panel drug test in accordance with this Chapter.

1. If the recipient tests positive for drugs as defined in this Chapter, validated by a confirmation test and evaluated by a MRO, the recipient shall be ineligible to receive cash assistance benefits for six (6) months from the date of the positive confirmation test.

2. After the six (6) month disqualification period, if the disqualified individual reapplies for Families First/TANF benefits, the applicant shall submit to a drug test, conducted pursuant to this Chapter. If the applicant tests positive for drugs as defined in this Chapter, in a subsequent drug test, validated by a confirmation test, the recipient shall be ineligible to receive Families First/TANF benefits for one (1) year from the date of the positive confirmation test.

(2) If the recipient fails to begin, participate in, and/or complete, the drug treatment/recovery support resource program after a Department referral for a substance abuse evaluation, the recipient shall be ineligible for cash assistance benefits for six (6) months.

(a) Good cause. The Families First/TANF recipient may submit verification of good cause to the Department for his/her failure to begin, complete, and/or participate in the drug treatment program/recovery support resource.

1. The Department shall determine whether an individual has good cause for failure to begin, participate in, and/or complete the drug treatment/recovery support resource program by considering the exigency of the applicant’s circumstances, whether failure to comply is the result of circumstances beyond the applicant’s control and the requirements of the applicant’s drug treatment and/or recovery support program.

2. If the Department determines that good cause exists, the Department shall work in collaboration with the substance abuse evaluation agency and/or the drug treatment program to amend the recipient’s drug treatment plan so that the recipient is able to complete the requirements of the drug treatment plan consistent with his/her abilities.

3. The recipient shall not receive cash assistance benefits for longer than six (6) months during drug treatment prior to undergoing a subsequent drug test, as set forth below.

4. If, after amending the recipient’s drug treatment plan to meet the recipient’s needs and abilities, the recipient fails to begin, participate in, or complete the drug treatment program, the recipient shall be ineligible for six (6) months. After July, 2014 7 the six (6) month disqualification period, the recipient shall submit to another drug test, pursuant to subparagraph (b) below.

(b) At the conclusion of the six (6) month disqualification period, the Families First/TANF recipient shall submit to another five (5) panel drug test in accordance with this

Chapter. If the recipient tests positive for drugs as defined in this Chapter, in a subsequent drug test, validated by a confirmation test and verified by a MRO, the recipient shall be ineligible to receive Families First/TANF benefits for one (1) year from the date of the positive confirmation test.

(3) Protective Payees.

(a) If a caretaker relative is found ineligible to receive Families First/TANF benefits as a result of a positive drug test or failure to begin, participate in, and/or complete the drug treatment/recovery support resource program, that caretaker relative shall be removed from the Assistance Unit and the dependent child’s eligibility for Families First/TANF benefits shall not be affected.

(b) The Department shall designate a protective payee, either a caretaker relative or legal guardian of the child, to receive the dependent child’s Families First/TANF benefits for a child less than sixteen (16) years of age; provided, however, for purposes of this

Chapter, that no person who is the applicant for Families First/TANF benefits and tests positive for the use of drugs as defined in this Chapter shall serve as a protective payee.

(4) The Families First/TANF recipients participating in a drug treatment or recovery support program under this Chapter shall receive necessary child care services during drug treatment, provided, however, the recipient is participating in a work or educational activities requirement as required by the Families First/TANF program.

(5) Appeals. A Families First/TANF applicant or recipient may appeal any denial of eligibility for Families First/TANF benefits under this Chapter according to appeal procedures set forth in

Chapter 1240-5 and Title 4, Chapter 5, Part 3 of the Uniform Administrative Procedures Act.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-3-1201 et seq., 21 U.S.C. § 862b, 42 U.S.C. § 608(b)(2)(A)(v).
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014.

Tenn. Comp. R. & Regs. 1240-01-57-.08 CONFIDENTIALITY

(1) Except as provided in paragraph (2), the Department shall not disclose, without the applicant/recipient’s written consent, any information, interviews, reports, statements, memoranda, drug screening and other questionnaires, drug tests results and samples, or any related materials:

(a) To any law enforcement authorities;

(b) For use in any public or private proceedings or in a discovery proceeding related to any legal proceedings;

(c) For use or received as evidence in any civil or criminal proceedings; or (d) For any other public or private use.

(2) Any information received as a part of the drug testing program may be used in accordance with the administration of the Families First/TANF program, in any proceedings concerning the protection or permanency of children, in adjudicating any claim or action arising from the July, 2014 8 administration of the Families First/TANF program, or in reporting child abuse, child sexual abuse, or child neglect.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-3-1201 et seq., 21 U.S.C. § 862b.
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014.

Chapter 1240-01-58 Electronic Benefit Transfer Card - Prohibited Uses

Tenn. Comp. R. & Regs. 1240-01-58-.01 PURPOSE

The purpose of this Chapter is to prevent public assistance benefits, provided pursuant to the Families First/TANF program, from being used in any EBT transaction in any liquor store, casino, gambling casino, gaming establishment, adult cabaret, or tobacco store.

History

• Authority: T.C.A. §§ 4-5-201 et seq.; 57-2-101(1); 71-3-126; 42 U.S.C. § 603; 42 U.S.C. § 608(a)(12).
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016.

Tenn. Comp. R. & Regs. 1240-01-58-.02 DEFINITIONS

For purposes of this Chapter:

(1) “Adult cabaret” is an establishment that features, as a principal use of its business, entertainers, waiters, or bartenders who expose to public view of the patrons within such establishment, at any time, the bare female breast below a point immediately above the top of the areola, human genital, pubic region, or buttocks, even if partially covered by opaque material or completely covered by translucent material, including swim suits, lingerie, or latex covering. “Adult cabaret” includes a commercial establishment that features entertainment of an erotic nature, including exotic dancers, strippers, male or female impersonators, or similar entertainers.

(2) “Assistance Unit (AU)” means the “aid group (AG)” or group of people applying for or receiving Families First/TANF cash assistance benefits.

(3) “Automated teller machine (ATM)” is an electronic cash dispensing device from which an account holder may withdraw cash, including public assistance benefits, using an electronic benefit transfer card.

(4) “Casino,” “gambling casino,” or “gaming establishment,” means an establishment with a primary purpose of accommodating the wagering or gambling of money. The term “casino,”

“gambling casino,” or “gaming establishment” does not include either:

(a) A grocery store which sells groceries including staple foods and which also offers, or is located within the same building or complex as, casino, gambling, or gaming activities; or (b) Any other establishment that offers casino, gambling, or gaming activities incidental to the principal purpose of the business.

(5) “Department” means the Department of Human Services.

(6) “Electronic benefit transfer (EBT) card” is a debit card which allows the EBT card holder to access public assistance benefits through an ATM or point of sale device.

(7) “EBT transaction” means the use of a credit or debit card service, automated teller machine, point-of-sale terminal, or access to an online system for the withdrawal of funds or the processing of a payment for merchandise or a service.

(8) “Families First” refers to the temporary public assistance program administered by the Department and provided under the federal Temporary Assistance for Needy Families (TANF), pursuant to Title IV-A of the Social Security Act.

(9) “Gambling” means risking anything of value for a profit whose return is to any degree contingent on games of chance associated with casinos, including, but not limited to, slot machines, roulette wheels and the like.

(10) “Intoxicating Liquor” means and includes alcohol, spirits, liquors, wines, and every liquid or solid, patented or not, containing alcohol, spirits, liquor or wine, and capable of being consumed by human beings.

(11) “Knowingly” means that an EBT card user, merchant, or business entity has actual knowledge that the EBT card contains public assistance benefits and the ATM or point of sale device used for the illegal transaction is located in a liquor store, casino, gambling casino, gaming establishment, adult cabaret, or tobacco store (however, ATM use is permitted in tobacco stores). The term “knowingly” may be established by direct or circumstantial evidence of knowledge that the EBT card contains public assistance benefits and the ATM or point of sale device is located in a liquor store, casino, gambling casino, gaming establishment, adult cabaret, or tobacco store.

(12) “Liquor store” is any retail establishment which sells exclusively or primarily intoxicating liquor. The term “liquor store” does not include a grocery store which sells both intoxicating liquor and groceries including staple foods.

(13) “Located in”. An ATM, POS device, or other online system used for the withdrawal of funds or processing of payments is “located in” a liquor store, casino, gambling casino, gaming establishment, adult cabaret, or tobacco store, when the ATM, POS device, or other online system is located on any part of the merchant’s business property, which is either owned or leased by the merchant.

(14) “Point of sale (POS) device” is any terminal at which a customer makes a payment to a merchant in exchange for goods or services, including any manual or electronic terminal where a Families First/TANF recipient may complete a retail transaction using an EBT card.

(15) “Protective payee” is a person, other than the caretaker or grantee relative who is disqualified from directly receiving public assistance benefits under this Chapter, to whom a Families First/TANF grant is made payable for the benefit of the qualified members of the AU.

A protective payee has responsibility for administering the payment for the benefit of the AU.

(16) “Public assistance benefits” means money, in cash or in other forms of exchange, provided directly or indirectly to a Families First/TANF recipient through the Families First/TANF program.

(17) “Tobacco store” means a licensed retail store that derives its largest category of sales from the sale of loose tobacco, cigars, cigarettes, pipes, and other smoking accessories.

History

• Authority: T.C.A. §§ 4-5-201 et seq.; 4-51-102; 7-51-1102; 39-17-501; 39-17-1802(13); 57-3-101; 71-3- 103; 71-3-126, 42 U.S.C. § 601 et seq.; 42 U.S.C. § 608(a)(12)(B).
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016.

Tenn. Comp. R. & Regs. 1240-01-58-.03 PROHIBITED USES

(1) It is illegal for any Families First/TANF recipient to knowingly use an EBT card to purchase any goods or services through a POS device or any other online system used to process payments or access public assistance benefits through an ATM or other online system used for the withdrawal of funds located in any of the following businesses:

(a) Liquor store;

(b) Casino;

(c) Gambling casino;

(d) Gaming establishment; or (e) Adult cabaret.

(2) It is illegal for any Families First/TANF recipient to knowingly use an EBT card to purchase any goods or services through a POS device or any other online system used to process payments located in any of the following businesses:

(a) Tobacco store.

(3) It is illegal for any person or business entity, or any agent or employee of the person or business entity, to knowingly accept public assistance benefits from an EBT card for the purchase of any goods or services in the following locations:

(a) Liquor store;

(b) Casino;

(c) Gambling casino;

(d) Gaming establishment;

(e) Adult cabaret; or (f) Tobacco store.

History

• Authority: T.C.A. §§ 4-5-201 et seq.; 7-51-1102; 39-17-501; 57-3-101; 71-3-126, 42 U.S.C. § 608(a)(12)(B).
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016.

Tenn. Comp. R. & Regs. 1240-01-58-.04 MONITORING AND PENALTIES

(1) Any Families First/TANF recipient or caretaker must submit to the Department a signed Personal Responsibility Plan (PRP) acknowledging his/her understanding that it is illegal to knowingly use an EBT card containing public assistance benefits at any POS device, ATM, or other online system used for the processing of payments or withdrawal of funds located in any liquor store, casino, gambling casino, gaming establishment, adult cabaret, or tobacco store (however, ATM use is permitted in tobacco stores) to purchase any goods or services as described in this Chapter.

(2) The Department shall monitor EBT transactions on a quarterly basis to determine whether there is any illegal use of EBT cards under this Chapter.

(a) Any Families First/TANF recipient or caretaker who knowingly participates or knowingly allows another to use the recipient’s EBT card in an EBT transaction at an ATM machine, POS device, or other online system used for processing of payments or withdrawal of funds in any prohibited business location shall be subject to the following penalties:

1. First or Second Violation. The Families First/TANF recipient or caretaker shall be required to reimburse the Department for the amount of the purchase at a POS machine or the amount of the cash withdrawn and used from an ATM.

2. Third or Subsequent Violation. The Families First/TANF recipient or caretaker shall be required to reimburse the Department for the amount of the purchase at the POS machine or the amount of cash withdrawn and used from an ATM, and:

(i) The Families First/TANF recipient or caretaker shall be permanently prohibited from accessing temporary public assistance benefits, to the extent permitted by federal law, by means of direct cash payment or an EBT card.

(ii) The Department shall afford the Families First/TANF recipient or caretaker an administrative hearing prior to taking any action to disqualify the individual from direct receipt of public assistance benefits.

(iii) The Department shall designate a protective payee to administer the temporary public assistance grant for the benefit of the AU in the event a Families First/TANF recipient or caretaker is prohibited from receipt of public assistance benefits by means of direct cash payment or an EBT card under this Chapter.

3. Any illegal EBT transaction under this Chapter shall be classified as an overpayment and the Department shall initiate collection proceedings pursuant to

Chapter 1240-01-52.

(b) Any person or business entity, or any agent or employee of the person or business entity, which knowingly accepts EBT card purchases for any goods or services at any prohibited business location, shall be subject to the following penalties:

1. First Violation. The first violation shall result in a civil penalty of one thousand dollars ($1,000).

2. Second Violation. The second violation within five (5) years of the first violation shall result in a civil penalty of twenty-five hundred dollars ($2,500).

3. Third or Subsequent Violation. The third or subsequent violation within five (5) years shall result in a civil penalty of five thousand dollars ($5,000).

4. The Department may refer any person or business entity that violates this

Chapter to the district attorney for that district, who may bring an action to suspend the business license and permits of the person or business entity for one (1) year for any violation under this Chapter.

5. The Department may bring a civil action to enforce any civil penalties assessed to any person or business entity under this Chapter in a complaint filed in the chancery court of the county where the person or business entity is located.

(3) The Department may, at its discretion and to the extent permitted under federal law, take action to block POS devices, online systems used for the withdrawal of funds or processing of payments, and ATMs located in any prohibited location from accepting an EBT card transaction.

History

• Authority: T.C.A. §§ 4-5-201 et seq.; 71-3-126; 42 U.S.C. § 608(a)(12).
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016.

Tenn. Comp. R. & Regs. 1240-01-58-.05 APPEALS

Any Families First/TANF recipient, merchant, or business entity the Department determines has illegally used an EBT card or unlawfully engaged in an EBT transaction under this Chapter shall have the right to an appeal conducted according to appeal procedures set forth in Chapter 1240-05 and Title 4, Chapter 5,

Part 3 of the Uniform Administrative Procedures Act.

History

• Authority: T.C.A. §§ 4-5-201 et seq.; 4-5-301 et seq.; 71-3-126.
• Administrative History: Original rule filed April 2, 2014; effective July 1, 2014.

1240-02 Child Support Services Division

Chapter 1240-02-01 Forms for Establishing and Modifying Support Orders

Tenn. Comp. R. & Regs. 1240-02-01-.01 PETITION FORMS

(1) The following form, or another form containing all of the information herein, may be used to commence an action to establish a support order pursuant to T.C.A. § 36-5-401 et seq.

IN THE _____________ COURT OF ______________ COUNTY, TENNESSEE

STATE OF TENNESSEE ex. rel., _____________________________________ Petitioner Docket No. ________________ v.

IV-D No. ________________ _____________________________________ Respondent PETITION TO SET SUPPORT Comes the Petitioner, and would respectfully request this Honorable Court to issue an order of support for the minor children:

__________________________, DOB _________________

__________________________, DOB _________________

__________________________, DOB _________________

__________________________, DOB _________________

Petitioner alleges he/she is the:

(check one) ____ mother ____ father ____ non-parent caretaker of the above-named child(ren) who are in his/her physical custody. Petitioner alleges the child(ren) have been in his/her physical custody since:

(check one) ____ birth ____ date of physical custody ___________________________________ Petitioner alleges there is no other person or entity entitled to support for these child(ren) for the time petitioner has had physical custody.

Petitioner alleges Respondent(s) is/are the legal parent(s) of the child(ren) and have a duty to support the child(ren).

WHEREFORE, PETITIONER PRAYS:

1. That this petition be filed and proper process issue.

2. That this Court set current and retroactive child support for said child(ren) in accordance with the State guidelines, including medical support for said child(ren), to be paid by income assignment to Central Collections.

3. That the Respondent be ordered to pay the costs of this cause.

4. For such other and further relief as this cause may require. _______________________________ Petitioner _______________________________ Petitioner’s Address and Phone _______________________________ STATE OF TENNESSEE COUNTY OF ____________________ _____________________________________, petitioner, being first duly sworn, affirms that the petitioner has read the foregoing petition, knows the contents of the petition, and that the petition is true and correct to the best of petitioner’s knowledge, information and belief. _____________________________ Petitioner Sworn to and subscribed before me this ____ day of ________________, 20. _______________________________ NOTARY PUBLIC / CLERK My commission expires: _________________ (2) The following form, or another form containing all of the information herein, may be used to commence an action to modify a support order pursuant to T.C.A. § 36-5-401 et seq. Where the petition language indicates a choice between Petitioner or Respondent, circle the appropriate choice.

IN THE _____________ COURT OF ______________ COUNTY, TENNESSEE

STATE OF TENNESSEE ex. rel., _____________________________________ Petitioner Docket No. ________________ v.

IV-D No. ________________ _____________________________________ Respondent PETITION FOR MODIFICATION Comes the Petitioner / Respondent, and would respectfully show this Honorable Court that an order was entered herein whereby the Respondent was ordered to pay support for the minor children:

__________________________, DOB _________________

__________________________, DOB _________________

__________________________, DOB _________________

_________________, DOB _________________ in the amount of $ monthly. Petitioner / Respondent alleges that it is appropriate to modify child support for the following reason(s): _____________________________________________________________________________ ____________________________________________________________________________ , which results in a significant variance according to the child support guidelines.

WHEREFORE, PETITIONER / RESPONDENT PRAYS:

1. That this petition be filed and proper process issue.

2. That this Court modify the child support for said children in accordance with the State guidelines, including medical support, with support to be paid by income assignment to the state Central Collections unit for said children.

3. That the Petitioner / Respondent be ordered to pay the costs of this cause.

4. For such other and further relief as this cause may require. _____________________________________ Petitioner / Respondent _____________________________________ Petitioner’s / Respondent’s Address and Phone _____________________________________ STATE OF TENNESSEE COUNTY OF ____________________ _____________________________________, being first duly sworn, affirms that he/she has read the foregoing petition, knows the contents of the petition, and that the petition is true and correct to the best of his/her knowledge, information and belief. ____________________________________ Petitioner / Respondent Sworn to and subscribed before me this ____ day of ________________, 20. ____________________________________ NOTARY PUBLIC / CLERK My commission expires: _________________ (3) The following form, or another form containing all of the information herein, may be used to commence an action to enforce a support order pursuant to T.C.A. § 36-5-401 et seq.

IN THE _____________ COURT OF ______________ COUNTY, TENNESSEE

STATE OF TENNESSEE ex. rel., _____________________________________ Petitioner Docket No. ________________ v.

IV-D No. ________________ _____________________________________ Respondent PETITION TO ENFORCE CHILD SUPPORT Comes the Petitioner, and would respectfully show this Honorable Court that an order was entered herein whereby the Respondent was ordered to pay support for the minor child(ren):

__________________________, DOB _________________

__________________________, DOB _________________

__________________________, DOB _________________

__________________, DOB _________________ in the amount of $ monthly. Petitioner alleges Respondent is not paying support according to the terms of the order.

WHEREFORE, PETITIONER PRAYS:

1. That this petition be filed and proper process issue.

2. That this Court enforce the child support for said child(ren) by any means the court finds appropriate, including but not limited to income assignment, issuance of liens on real and/or personal property of respondent, requiring a bond or security to assure payment.

3. That the Respondent be ordered to pay the costs of this cause.

4. For such other and further relief as this cause may require. _____________________________________ Petitioner _____________________________________ Petitioner’s Address and Phone _____________________________________ STATE OF TENNESSEE COUNTY OF ____________________ _____________________________________, petitioner, being first duly sworn, affirms that the petitioner has read the foregoing petition, knows the contents of the petition, and that the petition is true and correct to the best of petitioner’s knowledge, information and belief. ____________________________________ Petitioner Sworn to and subscribed before me this ____ day of ________________, 20. ____________________________________ NOTARY PUBLIC / CLERK My commission expires: _________________

History

• Authority: T.C.A. §36-5-406.
• Administrative History: New rule filed December 17, 1985; effective January 14, 1986. Amendment filed March 24, 2009; effective June 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-01-.02 AFFIDAVIT FORM

The following form may be used with the Petition to Set Support and Petition for Modification found in Rule 1240-02-01-.01(1) and (2). Where the petition language indicates a choice between Petitioner or Respondent, circle the appropriate choice.

IN THE _____________ COURT OF ______________ COUNTY, TENNESSEE

STATE OF TENNESSEE ex. rel., _____________________________________ Petitioner Docket No. ________________ v.

IV-D No. ________________ _____________________________________ Respondent AFFIDAVIT Comes the Petitioner / Respondent, and being first duly sworn, states (select all that apply and fill in the blanks):

1. The child(ren) named in the petition reside with me: _____ less than 50% of the time _____ exactly 50% of the time _____ more than 50% of the time 2. _____ I am married to the petitioner / respondent, but we are living separately. _____ I have never been married to the petitioner/ respondent. _____ I am divorced from the petitioner / respondent by order of the _________ Court of _______ County, ______ (state), Docket number _______________, effective date ____________.

2. The child(ren) spend _______ (number) days per month/year with the respondent, with each day being more than twelve (12) consecutive hours in a twenty-four (24) hour period. 4. _____ There is not an order for the support of the child(ren). _____ The most recent order for support of the child(ren) is from the _________ Court of _________ County, ______ (state), Docket number _______________, effective date ______, in the amount of $ per month.

3. I pay for the child(ren)’s medical insurance, at a cost of $________ monthly.

4. I pay for the child(ren)’s dental insurance, at a cost of $________ monthly.

5. I pay for work-related child care for the child(ren) at a cost of $________ monthly.

6. The deductible or co- pay for the child(ren)’s medical care is $_________ per _______________________ (visit, month, annual).

7. I pay $_____________ per month for the child(ren)’s recurring medical expenses.

8. The child(ren) participate in the following enriching and/or extracurricular activities at a cost of $_________ monthly: ________________________________________________ ________________________________________________________________________ 11. The child(ren) incur the following educational expenses at an average monthly cost of $___________ : ___________________________________________________________ ________________________________________________________________________ 12. My average gross monthly income from all non-exempt sources is $___________.

9. I am the legal parent of _____ (number) other qualified minor children who live in my home 50% of the time or more.

10. I am the legal parent of _____ (number) of minor children who live in my home less than 50% of the time. Over the last 12 months I have provided support for these children in the average amount of $_________ monthly. ___________________________________ Petitioner / Respondent Sworn to and subscribed before me this ____ day of ________________, 20. ____________________________________ NOTARY PUBLIC / CLERK My commission expires: _________________

History

• Authority: T.C.A. §36-5-406.
• Administrative History: New rule filed December 17, 1985; effective January 14, 1986. Amendment filed March 24, 2009; effective June 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-01-.03 NOTICE OF HEARING FORM

The following form may be used to notify respondent that a Petition to establish, modify or enforce support has been filed against him/her, pursuant to T.C.A. §36-5-401 et seq., and to notify the respondent of the time, date and location of the hearing thereon:

IN THE _____________ COURT OF ______________ COUNTY, TENNESSEE

STATE OF TENNESSEE ex. rel., _____________________________________ Petitioner Docket No. ________________ v.

IV-D No. ________________ _____________________________________ Respondent NOTICE OF HEARING TO THE PETITIONER / RESPONDENT, ___________________________________________ Notice is hereby given to you, _____________________________ that the Petitioner / Respondent will appear before the Honorable _____________________________, Referee / Judge of the ___________ Court for ______________ County, Tennessee, on the ____ day of ___________, 20 at _______ o’clock ___.m. You may be represented by a lawyer if you chose. This hearing will be held at the following place: _____________________________________________________________________________ _____________________________________________________________________________ The Petitioner / Respondent will be requesting the Court: (check appropriate section) _____ Order support for the child(ren) listed in the attached Petition to Set Support. _____ Enforce the order of support as set out in the attached Petition to Enforce Support. _____ Modify support as set out in the attached Petition to Modify Support.

IF YOU WANT TO TELL YOUR SIDE TO THE COURT, YOU MUST BE AT THE HEARING. BRING

PROOF OF YOUR GROSS MONTHLY INCOME TO THE HEARING. IF YOU DO NOT COME TO THE

HEARING, THE COURT WILL DECIDE BASED ONLY ON THE PETITIONER’S / RESPONDENT’S

TESTIMONY AND MAY ISSUE AN ORDER GRANTING THE RELIEF SOUGHT IN THE PETITION. _____________________________________

CLERK

Certificate of Service I certify that a copy of this Notice and Petition with any attachments was given to Petitioner / Respondent and was served on Petitioner / Respondent by mailing, return receipt requested, on the ____ day of __________ 20 ___. ___________________________________ CLERK

History

• Authority: T.C.A. §36-5-406.
• Administrative History: New rule filed December 17, 1985; effective January 14, 1986. Amendment filed March 24, 2009; effective June 7, 2009.

Chapter 1240-02-02 Forms for Withholding of Income for Child Support

Tenn. Comp. R. & Regs. 1240-02-02-.01 PURPOSE AND SCOPE OF RULES

(1) The forms contained in this Chapter relating to the issuance of Orders for the withholding (assignment) of income of obligors of support shall be mandatory forms, pursuant to the provisions of T.C.A §36-5-501(o), for use by Clerks of all of the various courts of Tennessee which establish and enforce child support orders, and by the Department of Human Services and its contractors.

(2) These forms may be generated by computer by the Tennessee Child Support Enforcement System (TCSES), as well as individually by the Department, its contractors or by the Clerks of Tennessee courts by word processing or other suitable means, and minor changes in formatting of the information shall not affect the validity of these forms for the purposes intended. Provided, however, that the form titled Income Withholding for Support is a form required by the United States Department of Health and Human Services and shall remain substantially as it is drafted.

(3) Forms reproduced for actual transmission to affected persons or entities may also contain highlighting or shading of areas of the forms for easier reading and emphasis of the contents or may contain state logos. Spaces for information indicated on the forms shall be utilized only to the extent applicable in the particular case.

History

• Authority: T.C.A. §§4-5-202, 8-21-403, 36-5-116, 36-5-501, and 71-1-132(c); 42 U.S.C. §§651 et seq., 42 U.S.C. §§652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii), 654b(a), and 666(a)(8) and (b); 45 C.F.R. §§303.6(c)(1), 303.7, and 303.100; and United States Department of Health and Human Services Office of Child Support Enforcement Action Transmittal 04-05 (July 15, 2004).
• Administrative History: Original rule filed December 17, 1985; effective January 14, 1986. Amendment filed October 17, 1986; effective January 27, 1987. Amendment filed August 25, 1989; effective October 13, 1989. Repeal and new rule filed December 7, 1994; effective February 20, 1995. Repeal and new rule filed October 14, 1999; effective December 28, 1999. Amendment filed August 17, 2005; effective October 31, 2005. Amendment filed September 8, 2009; effective December 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-02-.02 DEFINITIONS

(1) “Arrearage or “Arrears” means any occasion on which the full amount of support ordered for or on behalf of a minor child, or for a spouse or former spouse of the obligor with whom the child is living to the extent the spousal support would be included for the purposes of 42 U.S.C. § 654a(e)(4), is not paid by the due date for arrears as defined in T.C.A. § 36-5- 101(f)(1) unless an income assignment is in effect and the payer of income is paying pursuant to subsection T.C.A. § 36-5-501(g), thus the date payment is made is affected by the operation of the income assignment. Arrears or arrearage may also be known as and referred to in these rules as “past-due” or “overdue” support.

(2) “Business entity” means any private or public, profit or non-profit organization, association or institution of any kind which produces goods, products, or which performs services of any kind.

(3) “Child support” or “support” for purposes of this chapter means a judgment, decree, or order, whether temporary, final or subject to modification issued by a court of competent jurisdiction or an administrative agency of competent jurisdiction, for the support and maintenance of a child, including a child who has attained the age of majority under the law of the state which issued the order, and shall include the support of a parent with whom the child is living, and which order, judgment or decree provides for monetary support, health care, arrearages, or reimbursement, and which may include related costs and fees, interest, penalties, income withholding, attorneys fees and other relief.

(4) “Clerk” means, for purposes of this chapter, the official and his or her employees who maintain the court records for any court involving child or spousal support cases and who provide any related services in such cases.

(5) “Delinquency“ or “Delinquent” shall have the same meaning as the terms “arrearage” or “arrears”.

(6) “Department” means the Tennessee Department of Human Services or its contractors who provide child support services in the courts of Tennessee to the Department as part of the Department’s responsibilities under Title IV-D of the Social Security Act.

(7) “Employer” means the person, corporation or other business entity who or which engages a person to perform any services for compensation and shall include the federal government, a state government or any political subdivision thereof, and any institution or other business entity which has in its control funds due to be paid to a person who is obligated to pay child support.

(8) “Income assignment” or “Income withholding” means the process by which the income due or to be paid or credited to an employee or other recipient of income is, for the purpose of paying child or spousal support, directed by an Income Withholding for Support Order to be withheld by the employer or other payer of income pursuant to an original or modified child or spousal support order of the court or an administrative order of the Department of Human Services, its contractor or other Title IV-D child support agency.

(9) “Income Withholding for Support” refers to the form promulgated by the United States Department of Health and Human Services (HHS) which is the basic form required by HHS to be utilized for orders for withholding of the income of an employee or other recipient of income within Tennessee and for issuance to employers or other payers of income to obligors in other states. The form “Income Withholding for Support” is an Order for Income Assignment, and is also known as, and may be referred to in these rules as an “Order for Income Withholding”, “Order for Income Assignment” or “Income Assignment”, “Income Assignment Order” or “Assignment”, and shall have the same meaning unless otherwise clearly required by the context.

(10) “Obligee” means the person or agency to whom an obligation of child or spousal support is owed by an obligor.

(11) “Obligor” means the person who owes a duty of support for a child to the child’s parent or caretaker.

(12) “Spousal support” means a legally enforceable obligation assessed against an individual for the support of a spouse or former spouse who is living with a child or children for whom the individual also owes support. Income assignments pursuant to this chapter shall apply to obligations for support of spouses as defined in this Paragraph and in Paragraph (3).

(13) “TCSES” means the Tennessee Child Support Enforcement System operated by the Department of Human Services containing data and functions for the recording of child or spousal support data and for collection, distribution, and disbursement of child and spousal support payments.

History

• Authority: T.C.A. §§4-5-202, 36-5-501, 71-1-132(c), 42 U.S.C. §§651 et seq., 42 U.S.C. §§652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii) and 666(a)(8) and (b), 45 C.F.R. §§303.6(c)(1), 303.7, and 303.100.
• Administrative History: Original rule filed December 17, 1985; effective January 14, 1986. Amendment filed October 17, 1986; effective January 27, 1987. Amendment filed August 25, 1989; effective October 13, 1989. Repeal and new rule filed December 7, 1994; effective February 20, 1995. Repeal and new rule filed October 14, 1999; effective December 28, 1999. Amendment filed September 8, 2009; effective December 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-02-.03 ISSUANCE OF INCOME WITHHOLDING FOR SUPPORT

(1) Criteria for Issuance.

(a) Income Withholding for Support shall be ordered by the court for any order of child support issued, modified, or enforced on or after July 1, 1994 unless the provisions of T.C.A. § 36-5-501(a)(2) or § 36-5-116(a)(1) apply.

(b) The Income Withholding for Support Order shall be issued by the Clerk of the Court, or by the Department or its contractors in Title IV-D cases, regardless of whether support payments are in arrears on the date of the order and shall include an amount sufficient to satisfy an accumulated arrearage, if any, within a reasonable time.

(c) When any Income Withholding for Support Order is issued, for purposes of calculating any arrears, it shall be rebuttably presumed that one-half of the amount payable for current support shall be a reasonable amount which should be ordered for making a reduction of an arrearage.

(d) The Income Withholding for Support Order may include an amount to pay medical expenses which the obligor is obligated or ordered to pay.

(e) The amount withheld shall not exceed fifty percent (50%) of the obligor’s income after FICA, withholding taxes, and a health insurance premium which covers the child are deducted.

(f) The Income Withholding shall include an amount necessary to cover the fee due the Court Clerk or the Department, as appropriate. Court Clerks or the Department may issue an Income Withholding Order to recover court costs or fees which the obligor fails to pay.

(2) In all cases in which the court has ordered immediate income assignment, the Clerk of the Court, or the Department of Human Services or its contractor in Title IV-D support cases, shall within two (2) business days issue an Income Withholding Order as described in 1240- 02-02-.04 to an employer once the employer of a support obligor is identified.

(3) No order of the court shall be necessary to issue an Income Withholding Order in circumstances where no previous Income Withholding Order has issued or in circumstances in which the obligor of child support was not subject to income withholding pursuant to the provisions of T.C.A. § 36-5-501(a)(2), and the records of the court or the Department show the obligor to be in arrears as defined in T.C.A. § 36-5-101(f)(1) and T.C.A. § 36-5- 501(b)(1)(G).

(4) If the support payments were previously ordered paid directly to the custodial parent, guardian or other caretaker of the child, and the obligor is in arrears as defined in T.C.A. § 36-5-101(f)(1) and T.C.A. § 36-5-501(b)(1)(G), the custodial parent, guardian or custodian may complete an Affidavit of Arrearage pursuant to 1240-02-02-.11 to request the issuance of an Income Withholding for Support Order by, respectively, the Clerk or the Department of Human Services. No order of the court shall be necessary for the issuance of an Income Withholding for Support Order pursuant to this paragraph.

(5) Income Withholding for Support Order issued by the Clerk in Non-Title IV-D Cases.

(a) When an Income Withholding for Support Order is issued by the Clerk of the Court in non-Title IV-D cases, and if the obligor requests a hearing pursuant to T.C.A. § 36-5- 501(c)(1) regarding the withholding within fifteen (15) days of the date of the notice, or the date of personal service, if used, the Clerk shall promptly docket the case with the magistrate or court as provided by Tennessee Code Annotated, Title 36, Chapter 5,

Part 4 and shall give notice to all parties, and shall take any other action as is necessary to ensure that the court meets the time frame in subparagraph (b).

(b) In all cases in which the obligor requests a hearing, the magistrate or court shall conduct a hearing and make a determination, and the Clerk shall notify the obligor and the employer of the decision of the court or magistrate within forty-five (45) days of the date of the issuance of the Income Withholding for Support.

(6) Transmission of Orders and Notices.

(a) The notices and orders required to be issued pursuant to this Chapter shall be transmitted to any employer of an obligor and to obligors by any method chosen by the Court or the Department, including but not limited to: certified mail, return receipt requested; regular mail; electronic mail; facsimile transmission; or by personal service, and may be generated by computer or on paper. If a notice or order is returned or otherwise not deliverable, then service shall be had by any alternative method chosen by the Court or the Department, as described in the preceding sentence. Service by mail is complete upon mailing.

(b) In all cases in which an immediate assignment of income has not been previously ordered, or in which an obligor who is ordered to pay child support in which either an immediate income assignment was not required by the court due to good cause provisions as found by the court, or in which there is a written agreement by the parties for alternative payment arrangements, the Notice of Income Assignment required by this Chapter to be sent to an obligor shall be issued within two (2) business days of the date the Income Withholding for Support is sent to the employer. The notice must be sent to the address of the obligor, if known, or to the obligor at the address of the employer of the obligor if the obligor’s employer’s address is unknown.

(c) The notices and orders required by this chapter need not be entered in the minutes of the court, but shall be in the records of the case in the court when an Income Withholding for Support Order is issued.

(d) Before taking action against an employer or other payer of income for failure to comply with this part, the Court or Department or its contractor shall ensure that service of the notice and order was made by certified mail, return receipt requested, or by personal service.

(e) Electronically reproduced signatures, if necessary, shall be effective to issue any orders or notices pursuant to this Chapter.

(7) Proof of mailing the Income Withholding for Support Order and notices sent by the Department or its contractors shall be evidenced by a screen print from the TCSES computer system showing the date of mailing which shall be prima facie evidence of the date of mailing.

(8) The local Title IV-D child support office will be responsible for defending all administrative appeals of any such orders in Title IV-D support cases and appeals filed pursuant to T.C.A. § 36-5-1003.

History

• Authority: T.C.A. §§4-5-202, 36-5-501, 71-1-132(c), 42 U.S.C. §§651 et seq., 42 U.S.C. §§652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii) and 666(a)(8) and (b), 45 C.F.R. §§303.6(c)(1), 303.7, and 303.100.
• Administrative History: Original rule filed December 17, 1985; effective January 14, 1986. Amendment filed October 17, 1986; effective January 27, 1987. Amendment filed August 25, 1989; effective October 13, 1989. Repeal and new rule filed December 7, 1994; effective February 20, 1995. Repeal and new rule filed October 14, 1999; effective December 28, 1999. Amendment filed September 8, 2009; effective December 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-02-.04 will be attached to the Notice form in Paragraph (6).

(4) The Department may combine the language in this form with language of the notices issued by the Department described in this Chapter to provide notice of various actions taken by the court or actions taken administratively by the Department, and the form may be modified and transmitted by the TCSES system to contain, as may be applicable, combinations of the language in any of those notices on one form.

(5) Appeals.

(a) The obligor may contest this Notice of Income Assignment by filing a written request for an administrative hearing with the local child support office shown on the Notice within fifteen (15) days of the mailing of the Notice. The grounds for contesting the Notice are limited to a determination of the correct identity of the person(s) or entity(ies) to whom or to which the administrative action is directed, to whether there is a mistake of fact involving the action, and, if the court has not already determined the amount of arrears or the amount of the payment:

1. A determination of the amount of arrearage;

2. Whether the amount of payments on the arrearage is reasonable as to the amount to be paid and the time over which the obligation is to be paid.

(b) If the obligor contests the Notice of Income Assignment within the above time limit, a hearing will be promptly set. The employer will continue to withhold income unless a decision favorable to the obligor is rendered. The obligor and the employer will be notified of the decision within forty-five (45) days of the date the Income Withholding for Support (also called an Order for Income Assignment or Income Assignment) was issued. If an unfavorable decision is rendered, the obligor has a right to further appeal the decision as described in the Department’s hearing order following the decision.

(6) Form:

STATE OF TENNESSEE

DEPARTMENT OF HUMAN SERVICES

NOTICE OF ISSUANCE OF INCOME ASSIGNMENT DUE TO DELINQUENCY

You are hereby notified that due to a delinquency in your child support payments in the amount of $__________ as of the _____ day of __________, ______, or due to your failure to pay your obligation on the date ordered, your employer, or other person, corporation, or institution which is a payer of income has been directed, pursuant to Tennessee Code Annotated, § 36-5-501, to withhold income payable to you to satisfy your support obligation in the amounts and for the purposes shown in the attached Income Withholding for Support (Order for Income Assignment).

Your total arrearage as of the ______ day of ___________, ______, is $ _________ plus twelve (12%) per annum simple interest.

You may contest this Notice of Income Assignment by filing a written request for an administrative hearing with the local child support office at the address above within fifteen (15) days of the mailing of this notice as noted above. The grounds for contesting the Notice are limited to a determination of the correct identity of the person(s) or entity(ies) to whom or to which the administrative action is directed, to whether there is a mistake of fact involving the action, and, if the court has not already determined the amount of arrears or the amount of the payment:

1. A determination of the amount of arrearage;

2. Whether the amount of payment on the arrearage is reasonable as to the amount to be paid and the time over which the obligation is to be paid.

If you contest this Notice of Income Assignment within the above time limit, a hearing will be promptly set.

Your employer will continue to withhold income unless a decision favorable to you is rendered. You and your employer will be notified of the decision within forty-five (45) days of the date the Income Withholding for Support (also called an Order for Income Assignment or Income Assignment) was issued.

If an unfavorable decision is rendered, you have a right to further appeal the decision as described in the Department’s hearing order following the decision.

It is your responsibility to keep the Court Clerk and the local child support office informed of the name and address of your current employer, whether you have access to health insurance coverage, and if so, the health insurance policy information. You must also immediately notify the Court Clerk and the local child support office of any changes in, or any additional employment, including the name and address of the new employer. Your new employer will be notified of the Order for Income Assignment.

An Order for Income Assignment shall be mandatory as long as current support or arrearages are still owed.

Clerks of court are authorized to issue an Order for Income Assignment to the employer or payer of income of the obligor and to institute the process to assign income when the obligor fails to pay court costs, but shall not have priority over the Order for Income Assignment for child or spousal support.

History

• Authority: T.C.A. §§ 4-5-202, 8-21-403, 36-5-116, 36-5-501, 36-5-1002, and 71-1-132(c); 42 U.S.C. §§ 651 et seq., 42 U.S.C §§ 652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii), 654b(a), and 666(a)(8) and (b); 45 C.F.R. §§ 303.6(c)(1), 303.7, and 303.100; and United States Department of Health and Human Services Office of Child Support Enforcement Action Transmittal 04-05 (July 15, 2004).
• Administrative History: Original rule filed October 14, 1999; effective December 28, 1999. Amendment filed August 17, 2005; effective October 31, 2005. Amendment filed September 8, 2009; effective December 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-02-.05 INFORMATION FOR WITHHOLDING BY TENNESSEE EMPLOYERS/PAYERS OF

INCOME.

(1) The Income Withholding for Support, also referred to as an Order for Income Assignment, Income Assignment, Income Assignment Order, or Assignment, must be implemented no later than fourteen (14) calendar days after the date noted at the top-right portion of that form, the date of personal service, or the other date of any other form of transmission of this notice.

(2) The payments may be deducted from the employee’s or income recipient’s wages, or other income, either weekly, biweekly, semimonthly, or monthly to coincide with his/her pay periods or other periods for payment of income, but must be sent to the Department’s centralized collection unit at the address shown on page 2 of that Order within seven (7) days of the date the employee or income recipient is paid along with the date the deduction was made.

(3) “Employer, person, corporation or institution,” who or which may be required to withhold income, includes the federal government, the State and any political subdivision thereof and any other individual or business entity which has in its control funds due to be paid to a person who is obligated to pay child support.

(4) The amount withheld for support may not be in excess of fifty percent (50%) of the net wages of an employee or other income due an income recipient after the deduction of FICA, withholding taxes, and health insurance premiums which cover the child(ren).

(5) This Order for Income Assignment is binding until further notice by the issuer. If the payor of income fails to withhold income in accordance with the provisions of this Order, the payor is liable for any amount up to the accumulated amount which should have been withheld from the income of the employee or income recipient. In addition, the payor may be subject to financial penalties pursuant to T.C.A. § 36-5-501(p). Compliance with this Order shall operate as a discharge of liability to the affected employee or other recipient of income as to that portion of the employee’s or recipient’s income affected by the Order.

(6) T.C.A. § 36-5-501(i) provides that the employer, person, corporation, or institution that is ordered to comply with this order shall be subject to a fine for a Class C misdemeanor if the income assignment is used as a basis to refuse to employ a person or to discharge the employee or for any disciplinary action against the employee, or if the employer fails to withhold the amounts from the employee or fails to pay such amount to the Clerk of the Court or the Department of Human Services as may be directed by the Order.

(7) Withholding of support in accordance with this notice shall have priority over any other legal process under state law against the same wages or other income for debts other than child support.

(8) If the payor is unable to deduct the full amount specified in this order due to the fifty percent (50%) limitation, the payment should also specify, for each obligor, the individual’s income after taxes, FICA, health insurance premiums deducted to cover the child(ren), and whether the payor has received prior Income Assignments which prevent the payor from fully complying with this order.

(9) The payor may, at its discretion, charge the employee or other recipient of income an amount of up to five percent (5%), not to exceed five dollars ($5) per month, for costs in complying with this order. This amount could vary upward depending on changes in the law at T.C.A. § 36-5-501(l).

(10) If a payor is required to withhold support from more than one person, it is allowable to combine withheld amounts in a single payment to each appropriate court or other entity ordering the assignments; however, the payor must provide a listing indicating which portion of the single payment is attributable to each individual.

(11) The date the support was deducted from the obligor’s paycheck must be provided with each payment transmitted to the Department.

(12) Pursuant to T.C.A. § 36-5-501(g), the payor is required to notify the Department when the employee terminates employment or if income payments are terminated and provide the Department the last known address of the employee/recipient of income and the name and address of his/her new employer, or new source of income, if known. The Income Assignment is binding upon successive employers fourteen (14) days after it is transmitted to them.

(13) Priorities for Payments if More Than One Income Withholding for Support Is Received.

If the employer, person, corporation or institution or other payer of income receives more than one (1) Income Assignment against the employee/obligor, priority in deducting income shall be as follows:

(a) First priority: To all orders for amounts due for current support due a child;

(b) Second priority: To all orders for amounts due for arrearages due a child;

(c) Third priority: To all orders for amounts due for current support due a spouse;

(d) Fourth priority: To all orders for amounts due for arrearages due a spouse; and, (e) Fifth priority: To all statutory fees and court costs.

(14) The payor must honor all withholdings to the extent the total amount withheld from wages does not exceed fifty percent (50%) of the employee's wages or a recipient’s income after FICA, withholding taxes, and a health insurance premium which covers the child(ren) are deducted.

(15) Multiple Income Assignments for One Employee or Recipient of Income.

If the payor receives any Order for Income Assignment for current child support against the employee’s income which would cause the deductions from any two (2) or more assignments for current child support to exceed fifty percent (50%) of the employee’s income after FICA, withholding taxes, and a health insurance premium which covers the child(ren) are deducted, the following process shall be utilized:

(a) Determine the total of all current child support ordered withheld by all Income Assignments received for the employee or recipient of income;

(b) Then calculate the percentage that each current child support order represents of the total;

(c) The available income will be allocated by the payor according to the percentage which each Income Assignment for current child support bears to the total of all Income Assignments involving this employee or recipient of income for current child support.

(d) In the event all current child support obligations are met from the assignments and child support arrearages exist in more than one case and there is not sufficient income to pay all ordered child support arrearages, then the child support arrearages will be allocated by the payor on the same basis as in steps a - c.

(16) The payor must provide for each case the following information: docket number, county, state, full ordered amount, the percentage that each current support order represents of the total ordered amounts from all income assignments ordered for this employee or recipient of income, and the date the amount is deducted from the employee’s or recipient’s income.

(17) Example of a Proration for Multiple Income Assignment.

(a) Assume an employee’s net income after taxes, FICA, and a health insurance premium to cover the child(ren) is deducted is $900. Therefore, the available income for use in the income assignment is only $450 (50% maximum of the employee’s net income).

(b) If the employee is ordered to pay $250.00 per month under support order A; $200.00 per month for support order B; and $150.00 per month for support order C; then the total of all income assignments is $600.00. This total exceeds income available for income assignment [after deduction for taxes, FICA, and health insurance premiums which cover the child(ren)].

(c) Pay the amount of the available income that each Income Assignment represents as a percentage of the total of all Income Assignments as follows:

1. Order A = $250/$600, or 42%, x $450 = $189.00;

2. Order B = $200/$600, or 33%, x $450 = $148.50;

3. Order C = $150/$600, or 25%, x $450 = $112.50;

(d) If the employee has sufficient available income to satisfy all current child support orders, but not all ordered child support arrearages, apply the same proration procedure to the child support arrearage payment as shown above.

(18) Income assignments for child and/or spousal support have priority over a garnishment order issued by the Social Security Administration.

History

• Authority: T.C.A. §§ 4-5-202, 8-21-403, 36-5-116, 36-5-501, and 71-1-132(c); 42 U.S.C. §§ 651 et seq., 42 U.S.C §§ 652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii), 654b(a), and 666(a)(8) and (b); 20 C.F.R § 422.435(e)(2), 45 C.F.R. §§ 303.6(c)(1), 303.7, and 303.100; and United States Department of Health and Human Services Office of Child Support Enforcement Action Transmittal 04-05 (July 15, 2004).
• Administrative History: Original rule filed December 17, 1985; effective January 14, 1986. Amendment filed October 17, 1986; effective January 27, 1987. Amendment filed August 25, 1989; effective October 13, 1989. Repeal and new rule filed December 7, 1994; effective February 20, 1995. Repeal and new rule filed October 14, 1999; effective December 28, 1999. Repeal and new rule filed August 17, 2005; effective October 31, 2005. Amendment filed September 8, 2009; effective December 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-02-.06 COURT CLERK’S NOTICE TO OBLIGOR OF ISSUANCE OF INCOME

ASSIGNMENT DUE TO DELINQUENCY.

(1) The Notice form in Paragraph (5) shall be used by the Clerk of Court for the purpose of providing notice to an obligor of support in Tennessee that an Income Withholding for Support has been issued which will direct the obligor’s employer or payer of income to withhold income from an obligor of support to meet the child or spousal support obligation.

(2) This Notice is used:

(a) When, pursuant to T.C.A. § 36-5-501(b)(1)(B) no Order for Income Assignment had been previously issued for any reason, and where the records of the Clerk or the Department of Human Services show the obligor is currently delinquent;

(b) When, pursuant to T.C.A. § 36-5-501(b)(1)(D) an Affidavit of Arrearage pursuant to

Tenn. Comp. R. & Regs. 1240-02-02-.07 DEPARTMENT NOTICE TO OBLIGOR OF ISSUANCE OF INCOME ASSIGNMENT

(1) The Notice form in Paragraph (5) shall be used by the Department of Human Services or its contractors which establish or enforce support under Title IV-D of the Social Security Act for the purpose of providing notice to an obligor of support in Tennessee that an initial Income Withholding for Support (Order for Income Assignment) has been issued which will direct the obligor’s employer or payer of income to withhold income from an obligor of support to meet the child or spousal support obligation.

(2) For an initial Order for Income Assignment, the Federal Income Withholding for Support form referenced in 1240-02-02-.04(1)(a) will be attached to the Notice form in Paragraph (5).

(3) The Department may combine the language in this form with language of the notices issued by the Department described in this Chapter to provide notice of various actions taken by the court or actions taken administratively by the Department, and the form may be modified and transmitted by the TCSES system to contain, as may be applicable, combinations of the language in any of those notices on one form.

(4) Appeals.

(a) The obligor may contest this Order of Income Assignment by filing a written request for an administrative hearing with the local child support office shown on the Order within fifteen (15) days of the mailing date of the Order. The grounds for contesting the initial Order are the correct identity of the individual subject to the order, and a mistake of fact, or for an Order due to a delinquency, the amount of support not paid, the timeliness of the support paid, or the reasonableness of the amount ordered to be paid to reduce the arrears.

(b) If the obligor contests the Order of Income Assignment within the above time limit, a hearing will be promptly set. The employer will continue to withhold income unless a decision favorable to the obligor is rendered. The obligor and the employer will be notified of the decision within forty-five (45) days of the date the Order of Income Withholding for Support (also called an Order for Income Assignment or Income Assignment) was issued. If an unfavorable decision is rendered, the obligor has a right to further appeal the decision as described in the Department’s administrative order following the decision.

(5) Form:

STATE OF TENNESSEE

DEPARTMENT OF HUMAN SERVICES

NOTICE OF ISSUANCE OF INCOME ASSIGNMENT

TO: _________________________________________

_________________________________________

_________________________________________

FROM: ____________________________________

____________________________________

____________________________________

MAILING DATE OF NOTICE: ___________________________________

Pursuant to a court order, statutory requirements directing payment by Income Withholding for Support (Order for Income Assignment), or administrative actions by the Department of Human Services, you have been ordered to pay your child support obligation by means of an income assignment. This is to notify you that your employer, or other person, corporation, or institution which is a payer of income has been directed, pursuant to Tennessee Code Annotated, § 36-5-501, to withhold income payable to you to satisfy your support obligation in the amounts and for the purposes shown in the attached Income Withholding for Support (Order for Income Assignment).

You may contest this Order of Income Assignment by filing a written request for an administrative hearing with the local child support office at the address above within fifteen (15) days of the mailing of this Order as noted above. The grounds for contesting the Order are the correct identity of the individual subject to the order, and a mistake of fact, or for an Order due to a delinquency, the amount of support not paid, the timeliness of the support paid, or the reasonableness of the amount ordered to be paid to reduce the arrears.

If you contest this Order of Income Assignment within the above time limit, a hearing will be promptly set.

Your employer will continue to withhold income unless a decision favorable to you is rendered. You and your employer will be notified of the decision within forty-five (45) days of the date the Income Withholding for Support (also called an Order for Income Assignment or Income Assignment) was issued.

If an unfavorable decision is rendered, you have a right to further appeal the decision as described in the Department’s administrative order following the decision.

It is your responsibility to keep the Court Clerk and the local child support office informed of the name and address of your current employer, whether you have access to health insurance coverage, and if so, the health insurance policy information. You must also immediately notify the Court Clerk and the local child support office of any changes in, or any additional employment, including the name and address of the new employer. Your new employer will be notified of the Order for Income Assignment.

An Order for Income Assignment shall be mandatory as long as current support or arrearages are still owed.

Clerks of court are authorized to issue an Order for Income Assignment to the employer or payer of income of the obligor and to institute the process to assign income when the obligor fails to pay court costs, but shall not have priority over the Order for Income Assignment for child or spousal support.

History

• Authority: T.C.A. §§ 4-5-202, 8-21-403, 36-5-116, 36-5-501, and 71-1-132(c); 42 U.S.C. §§ 651 et seq., 42 U.S.C §§ 652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii), 654b(a), and 666(a)(8) and (b); 45 C.F.R. §§ 303.6(c)(1), 303.7, and 303.100; and United States Department of Health and Human Services Office of Child Support Enforcement Action Transmittal 04-05 (July 15, 2004).
• Administrative History: Original rule filed October 14, 1999; effective December 28, 1999. Amendment filed August 17, 2005; effective October 31, 2005. Amendment filed September 8, 2009; effective December 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-02-.08 DEPARTMENT NOTICE TO OBLIGOR OF ISSUANCE OF INCOME ASSIGNMENT

DUE TO DELINQUENCY.

(1) The Notice form in Paragraph (6) shall be used by the Department of Human Services or its contractor which establish or enforce support under Title IV-D of the Social Security Act for the purpose of providing notice to an obligor of support in Tennessee that an Income Withholding for Support (Order for Income Assignment) has been issued which will direct the obligor’s employer or payer of income to withhold income from an obligor of support to meet the child or spousal support obligation.

(2) This Notice is used:

(a) When, pursuant to T.C.A. § 36-5-501(b)(1)(B) no Order for Income Assignment had been previously issued for any reason, and where the records of the Clerk or the Department of Human Services show the obligor is currently delinquent;

(b) When, pursuant to T.C.A. § 36-5-501(b)(1)(D) an Affidavit of Arrearage pursuant to

Tenn. Comp. R. & Regs. 1240-02-02-.11 AFFIDAVIT OF ARREARAGE

(1) The Affidavit form in Paragraph (2) shall be completed by the custodial parent, the guardian, or other caretaker of the child and shall be used by the Clerk of the Court or by the Department of Human Services or its contractor for the purpose of supporting the issuance of an Income Withholding for Support (Order for Income Assignment) pursuant to Rule 1240- 02-02-.04. It will only be used in conjunction with the request of a custodial parent, a guardian, or other caretaker to whom child or spousal support was previously paid directly, because no Order for Income Assignment had been issued, for any reason, when the obligor of support is now alleged to be in arrears in the affidavit filed by the custodial parent, the guardian, or other caretaker of the child.

(2) Form:

STATE OF TENNESSEE

STATE OF TENNESSEE

COUNTY OF __________________

AFFIDAVIT OF ARREARAGE

First being duly sworn, affiant would state:

I am _____________________________, <Custodial Parent/Guardian/Caretaker of the Child>.

I do hereby swear or affirm that to the best of my knowledge, information and belief, as of ___________ , the Respondent, _________________________________, is in arrears for support in the total amount of $ ______________________, which was calculated as follows:

Month Year _______________ Amount $_ Month Year _______________ Amount $_ Month Year _______________ Amount $_ Month Year _______________ Amount $_ Month Year _______________ Amount $_ Month Year _______________ Amount $_ Month Year _______________ Amount $_ Month Year _______________ Amount $_ Month Year _______________ Amount $_ Month Year _______________ Amount $_ Month Year _______________ Amount $_ Month Year _______________ Amount $_ __________________________________________ Name-Please Print __________________________________________ Signature __________________________________________ Date Further affiant sayeth not.

Sworn to and subscribed before me this __________ day of ______, . _______________________________________ Notary Public/Court Clerk My commission expires:

History

• Authority: T.C.A. §§4-5-202, 36-5-501, 71-1-132(c), 42 U.S.C. §§651 et seq., 42 U.S.C. §§652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii) and 666(a)(8) and (b), 45 C.F.R. §§303.6(c)(1), 303.7, and 303.100.
• Administrative History: Original rule filed October 14, 1999; effective December 28, 1999. Amendment filed September 8, 2009; effective December 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-02-.09 DEPARTMENT NOTICE TO OBLIGOR OF INCREASE IN INCOME ASSIGNMENT

TO ADMINISTRATIVELY REDUCE ARREARS.

(1) The Notice form in Paragraph (5) shall be used by the Department of Human Services or its contractors which establish or enforce support under Title IV-D of the Social Security Act for the purpose of providing notice to an obligor of support in Tennessee that, due to an accumulated arrears balance in the support payments, an increase in the amount of support has been directed by the Department pursuant to T.C.A. § 36-5-501(b)(1)(B)-(E) to reduce the accumulated arrears balance by a reasonable amount within a reasonable timeframe, and a modification has been made to the previously issued Income Withholding for Support (Order for Income Assignment) which will direct the obligor’s employer or payer of income to withhold additional income from an obligor of support to meet the child or spousal support obligation.

(2) The form referenced in 1240-02-02-.04(1)(a) will be attached to the Notice form in Paragraph (5).

(3) The Department may combine the language in this form with language of the notices issued by the Department described in this Chapter to provide notice of various actions taken by the court or actions taken administratively by the Department, and the form may be modified and transmitted by the TCSES system to contain, as may be applicable, combinations of the language in any of those notices on one form.

(4) Appeals.

(a) The obligor may contest this Notice of Increase in Income Assignment by filing a written request for an administrative hearing with the local child support office shown on the Notice within fifteen (15) days of the mailing of the Notice. The grounds for contesting the Notice are limited to a determination of the correct identity of the person(s) or entity(ies) to whom or to which the administrative action is directed, to whether there is a mistake of fact involving the action, and, if the court has not already determined the amount of arrears or the amount of the payment:

1. A determination of the amount of arrearage;

2. Whether the payment on the arrearage is reasonable as to the amount to be paid and the time over which the obligation is to be paid.

(b) If the obligor contests the Notice of Income Assignment within the above time limit, a hearing will be promptly set. The employer will continue to withhold income unless a decision favorable to the obligor is rendered. The obligor and the employer will be notified of the decision within forty-five (45) days of the date the Income Withholding for Support (also called an Order for Income Assignment or Income Assignment) was issued. If an unfavorable decision is rendered, the obligor has a right to further appeal the decision as described in the Department’s hearing order following the decision.

(5) Form:

STATE OF TENNESSEE

DEPARTMENT OF HUMAN SERVICES

NOTICE OF INCREASE IN INCOME ASSIGNMENT TO ADMINISTRATIVELY REDUCE ARREARS

TO: ____________________________________

____________________________________

____________________________________

FROM: ____________________________________

____________________________________

____________________________________

MAILING DATE OF NOTICE: ___________________________________

Our records indicate that you are delinquent on your child support or spousal payments of at least $________ as of ____________________.

Pursuant to Tennessee Code Annotated, § 36-5-501(b)(1)(B)-(E), you are hereby notified that, in addition to all sums you are currently paying by previously ordered income assignments, $______________ per ________________ has been added to reduce the aforementioned delinquency. The amount set forth above has been determined to be a reasonable amount which will reduce the delinquency in a reasonable amount of time.

You may contest this Notice of Income Assignment by filing a written request for an administrative hearing with the local child support office at the address above within fifteen (15) days of the mailing of this notice as noted above. The grounds for contesting the Notice are limited to a determination of the correct identity of the person(s) or entity(ies) to whom or to which the administrative action is directed, to whether there is a mistake of fact involving the action, and, if the court has not already determined the amount of arrears or the amount of the payment:

1. A determination of the amount of arrearage;

2. Whether the payment on the arrearage is reasonable as to the amount to be paid and the time over which the obligation is to be paid.

If you contest this Notice of Income Assignment within the above time limit, a hearing will be promptly set.

Your employer will continue to withhold income unless a decision favorable to you is rendered. You and your employer will be notified of the decision within forty-five (45) days of the date the Income Withholding for Support (also called an Order for Income Assignment or Income Assignment) was issued.

If an unfavorable decision is rendered, you have a right to further appeal the decision as described in the Department’s hearing order following the decision.

It is your responsibility to the keep the Court Clerk and the local child support office informed of the name and address of your current employer, whether you have access to health insurance coverage, and, if so, the health insurance policy information. You must also immediately notify the Court Clerk and the local child support office of any changes in, or any additional employment, including the name and address of the new employer. Your new employer will be notified of the Order for Income Assignment.

An Order for Income Assignment shall be mandatory as long as current support or arrearages are still owed.

Clerks of court are authorized to issue an Order for Income Assignment to the employer or payer of income of the obligor and to institute the process to assign income when the obligor fails to pay court costs, but shall not have priority over the Order for Income Assignment for child or spousal support.

History

• Authority: T.C.A. §§ 4-5-202, 8-21-403, 36-5-116, 36-5-501, 36-5-1002, and 71-1-132(c); 42 U.S.C. §§ 651 et seq., 42 U.S.C §§ 652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii), 654b(a), and 666(a)(8) and (b); 45 C.F.R. §§ 303.6(c)(1), 303.7, and 303.100; and United States Department of Health and Human Services Office of Child Support Enforcement Action Transmittal 04-05 (July 15, 2004).
• Administrative History: Original rule filed October 14, 1999; effective December 28, 1999. Amendment filed August 17, 2005; effective October 31, 2005. Amendment filed September 8, 2009; effective December 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-02-.10 DEPARTMENT NOTICE OF ENROLLMENT IN HEALTH CARE COVERAGE

(1) The Notice form in Paragraph (4) shall be used by the Department of Human Services or its contractors which establish or enforce support under Title IV-D of the Social Security Act for the purpose of providing notice to an obligor of support in Tennessee, as directed on the Modified Income Withholding for Support (Order for Income Assignment), that, following a change of employers by the obligor, the obligor’s employer has been directed to enroll the obligor’s child(ren) who are subject to the court order for support in health care coverage provided by the obligor’s employer.

(2) For a modification of a previous Income Withholding for Support (Order for Income Assignment) which now includes a notice of enrollment in health care, the form referenced in 1240-02-02-.04(1)(a), will be attached to the Notice form in Paragraph (4).

(3) The Department may combine the language in this form with language of the notices issued by the Department described in this Chapter to provide notice of various actions taken by the court or actions taken administratively by the Department, and the form may be modified and transmitted by the TCSES system to contain, as may be applicable, combinations of the language in any of those notices on one form.

(4) Form:

STATE OF TENNESSEE

DEPARTMENT OF HUMAN SERVICES

NOTICE OF ENROLLMENT OF CHILDREN IN HEALTH CARE COVERAGE

Pursuant to T.C.A. § 36-5-101(h) and the attached Income Withholding for Support (also called an Order for Income Assignment, Income Assignment Order, Income Assignment or Assignment), your employer has been directed, to enroll the following child(ren) in your family healthcare plan offered by your employer:

____________________________ DOB __________ SSN:____________________

____________________________ DOB __________ SSN:____________________

____________________________ DOB __________ SSN:____________________

____________________________ DOB __________ SSN:____________________

You may contest this Notice of Enrollment by filing a written request for an administrative hearing with the child support office shown above within fifteen (15) calendar days of the mailing date of this Notice and by filing a copy of your written appeal request with your employer within the same timeframe. If you do not file the request with your employer, the above-named child(ren) will be enrolled in any family healthcare coverage available to you through your employer even if your appeal is timely filed with the local child support office. The grounds for contesting the enrollment are limited to a mistake of identity or fact involving the action and the reasonableness of the cost of the insurance.

If you contest this Notice of Enrollment within the above time limit, a hearing will be promptly set. If you fail to timely file a copy of your appeal of the Notice of Enrollment for health insurance coverage, your employer will enroll and continue the health care coverage for your child(ren) pending the appeal decision. You and your employer will be notified of the decision within forty-five (45) days of the date the Income Withholding for Support (also called an Order for Income Assignment or Income Assignment), and the Notice or Enrollment contained on that form, was issued. If an unfavorable decision is rendered, you have a right to further appeal the decision as described in the Department’s administrative order following the decision.

It is your responsibility to keep the Court Clerk and the local child support office informed of the name and address of your current employer, whether you have access to health insurance coverage, and if so, the health insurance policy information. You must also immediately notify the Court Clerk and the local child support office of any changes in, or any additional employment, including the name and address of the new employer. Your new employer will be notified of the Order for Income Assignment.

History

• Authority: T.C.A. §§ 4-5-202, 8-21-403, 36-5-101(f), 36-5-116, 36-5-501, 36-5-1002, and 71-1-132(c); 42 U.S.C. §§ 651 et seq., 42 U.S.C §§ 652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii), 654b(a), and 666(a)(8) and (b); 45 C.F.R. §§ 303.6(c)(1), 303.7, and 303.100; and United States Department of Health and Human Services Office of Child Support Enforcement Action Transmittal 04-05 (July 15, 2004).
• Administrative History: Original rule filed October 14, 1999; effective December 28, 1999. Amendment filed August 17, 2005; effective October 31, 2005. Amendment filed September 8, 2009; December 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-02-.12 MODIFIED INCOME WITHHOLDING FOR SUPPORT (ORDER FOR INCOME

ASSIGNMENT).

(1) For a modification of the amount of a previous Income Withholding for Support (Order for Income Assignment), the Notice form in Paragraph (3) will be attached, by the Department of Human Services or its contractors enforcing child support under Title IV-D, to the modified Order.

(2) Appeals.

(a) The obligor may contest this Notice of Income Assignment by filing a written request for an administrative hearing with the local child support office shown on the Notice within fifteen (15) days of the mailing of the Notice. The grounds for contesting the Notice are that the income withholding is improper due to a mistake of fact, or the amount withheld is improper due to a mistake of fact.

(b) If the obligor contests the Notice of Income Assignment within the above time limit, a hearing will be promptly set. The employer will continue to withhold income unless a decision favorable to the obligor is rendered. The obligor and the employer will be notified of the decision within forty-five (45) days of the date the Income Withholding for Support (also called an Order for Income Assignment or Income Assignment) was issued. If an unfavorable decision is rendered, the obligor has a right to further appeal the decision as described in the Department’s administrative order following the decision.

(3) Form:

STATE OF TENNESSEE

DEPARTMENT OF HUMAN SERVICES

NOTICE OF MODIFICATION OF INCOME ASSIGNMENT

TO: ____________________________________

____________________________________

____________________________________

FROM: ____________________________________

____________________________________

____________________________________

MAILING DATE OF NOTICE: ___________________________________

Pursuant to a court order, statutory requirements directing payment by Income Withholding for Support (Order for Income Assignment), or administrative actions by the Department of Human Services, you have been ordered to pay your child support obligation by means of an income assignment. This is to notify you that the original Income Withholding for Support (Order for Income Assignment) has been modified and that your employer, or other person, corporation, or institution which is a payer of income has been directed, pursuant to T.C.A. § 36-5-501, to withhold a greater or lesser amount of income payable to you to satisfy your support obligation.

Your income assignment has been modified in the following manner: _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ You may contest this Notice of Modification Income Assignment by filing a written request for an administrative hearing with the local child support office at the address above within fifteen (15) days of the mailing of this notice as noted above. The grounds for contesting the Notice are that the income withholding is improper due to a mistake of fact, or the amount withheld is improper due to a mistake of fact.

If you contest this Notice of Income Assignment within the above time limit, a hearing will be promptly set.

Your employer will continue to withhold income unless a decision favorable to you is rendered. You and your employer will be notified of the decision within forty-five (45) days of the date the Income Withholding for Support (also called an Order for Income Assignment or Income Assignment) was issued.

If an unfavorable decision is rendered, you have a right to further appeal the decision as described in the Department’s administrative order following the decision.

It is your responsibility to keep the Court Clerk and the local child support office informed of the name and address of your current employer, whether you have access to health insurance coverage, and if so, the health insurance policy information. You must also immediately notify the Court Clerk and the local child support office of any changes in, or any additional employment, including the name and address of the new employer. Your new employer will be notified of the Order for Income Assignment.

An Order for Income Assignment shall be mandatory as long as current support or arrearages are still owed.

Clerks of court are authorized to issue an Order for Income Assignment to the employer or payer of income of the obligor and to institute the process to assign income when the obligor fails to pay court costs, but shall not have priority over the Order for Income Assignment for child or spousal support.

History

• Authority: T.C.A. §§ 4-5-202, 8-21-403, 36-5-116, 36-5-501, and 71-1-132(c); 42 U.S.C. §§ 651 et seq., 42 U.S.C §§ 652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii), 654b(a), and 666(a)(8) and (b); 45 C.F.R. §§ 303.6(c)(1), 303.7, and 303.100; and United States Department of Health and Human Services Office of Child Support Enforcement Action Transmittal 04-05 (July 15, 2004).
• Administrative History: Original rule filed October 14, 1999; effective December 28, 1999. Public necessity rule filed May 20, 2005; effective through November 1, 2005. Amendments filed August 17, 2005; effective October 31, 2005. Amendment filed September 8, 2009; effective December 7, 2009.

Tenn. Comp. R. & Regs. 1240-02-02-.13 NOTICES TO AND APPEALS BY OBLIGORS OF OUT-OF-STATE

EMPLOYERS/PAYERS OF INCOME.

(1) In any circumstances in this Chapter in which the Clerk or the Department is required to send a Notice to the obligor, the information described in the Notice in Paragraph (3) shall be included in the Notice, or it shall be attached as a separate notice to any Notice required to be sent by this Chapter to inform the obligor of the obligor’s appeal rights.

(2) An obligor whose out-of-state employer or payer of income is sent any Income Withholding for Support (Order for Income Assignment) Order established by this Chapter may appeal the Order pursuant to the provisions of Section 506 of the Uniform Interstate Family Support Act (UIFSA)[codified in Tennessee at Tennessee Code Annotated (T.C.A.) § 36-5-2506].

(3) Form:

STATE OF TENNESSEE

NOTICE OF APPEAL RIGHTS FOR OBLIGORS

OF OUT-OF-STATE EMPLOYER/PAYERS OF INCOME

As an obligor of child or spousal support whose employer or payer of income in a state other than Tennessee receives either the attached initial Income Withholding for Support (Order for Income Assignment) or the attached modified Income Withholding for Support (Order for Income Assignment) from the State of Tennessee, you may appeal the issuance of the Order pursuant to the provisions of

Section 506 of the Uniform Interstate Family Support Act (UIFSA)[codified in Tennessee at T.C.A. § 36-5- 2506].

These provisions are as follows:

1. An obligor may contest the validity or enforcement of an income-withholding order issued in Tennessee and received directly by your employer in this state in the same manner as if the order had been issued by a tribunal of the state of your employer or payer of income [UIFSA

Section 604] [T.C.A. § 36-5-2604] (Choice of Law) applies to the contest.

2. The obligor shall give notice of the contest to:

(a) The Tennessee child support office noted in the attached Order;

(b) Your employer or payer of income named in the attached Order that has received an income withholding order; and (c) The person [the caretaker of the child] or agency [the Tennessee Court or Tennessee Child Support office] designated to receive payments in the income-withholding order or if no person or agency is designated, to the person who is the recipient of the support.

3. Section 604 of UIFSA [T.C.A. § 36-5-2604] provides that:

(a) The law of Tennessee governs the nature, extent, amount, and duration of current payments and other obligations of support and the payment of arrearages under the order.

(b) In a proceeding for arrearages before a Tennessee tribunal, Tennessee’s statute of limitations governs. Effective July 1, 1997, there is no statute of limitations for child support obligations in Tennessee, meaning that support can be collected at any time and can always be collected until the support obligation is satisfied.

History

• Authority: T.C.A. §§ 4-5-202, 8-21-403, 28-3-110, 36-2-321, 36-5-103, 36-5-116, 36-5-501, 36-5-2506, 36-5-2604, and 71-1-132(c); 42 U.S.C. §§ 651 et seq., 42 U.S.C §§ 652(a)(11), 654(9)(E), 654a(g)(1)(A)(ii), 654b(a), and 666(a)(8) and (b); and 45 C.F.R. §§ 303.6(c)(1), 303.7, and 303.100.
• Administrative History: Original rule filed October 14, 1999; effective December 28, 1999. Amendment filed August 17, 2005; effective October 31, 2005. Amendment filed September 8, 2009; effective December 7, 2009.

Chapter 1240-02-03 Miscellaneous IV-D

Tenn. Comp. R. & Regs. 1240-02-03-.01 REPEALED

History

• Authority: T.C.A. §14-1-105 and Public Chapter 890, Acts of 1986.
• Administrative History: Original rule filed January 23, 1986; effective February 22, 1986. Repeal filed July 23, 1986, effective October 29, 1986.

Tenn. Comp. R. & Regs. 1240-02-03-.02 FEDERAL TAX REFUND INTERCEPT PROGRAM

(1) “Past-Due Support” — The amount of support determined under a court order or an order of an administrative process established under state law for support and maintenance of a child or of a child and the parent with whom the child is living, which has not been paid.

(2) In order for a past-due support obligation to qualify for a federal tax refund intercept, the following requirements must be met:

(a) When past-due support is owed in a case in which there has been an assignment to the state making the request for offset of support rights under Tennessee Code Annotated § 71-3-124 or 42 U.S.C. § 671(a)(17);

1. The amount of past-due support must be at least one hundred fifty dollars ($150).

2. For purposes of complying with part (a)1, the state may combine assigned support amounts from the same obligor in multiple cases to reach one hundred fifty dollars ($150). Amounts under this subparagraph may not be combined with amounts that have accrued under subparagraph (b) in order to reach one hundred fifty dollars ($150); or (b) When past-due support is owed in a case in which an application for IV-D services has been filed with the IV-D Agency, but in which there has been no assignment of support rights pursuant to subparagraph (a);

3. The amount of past-due support must be at least five hundred dollars ($500); and 2. In this part the term "past-due support" means the amount of a delinquency, determined under a court order, or an order of an administrative process established under State law, for support and maintenance of a child (whether or not a minor), or of a child (whether or not a minor) and the parent with whom the child (whether or not a minor) is living.

4. For purposes of complying with part (b)1, the state may combine support amounts from the same obligor in multiple cases where the IV-D agency is providing IV-D services to reach five hundred dollars ($500). Amounts under this subparagraph may not be combined with amounts that have accrued under subparagraph (a) in order to reach five hundred dollars ($500); and (c) The Department has in its records:

5. A copy of the order and any modifications upon which the amount referred is based which specify the date of issuance and amount of support; and 2. A copy of the payment record, or, if there is no payment record, an affidavit signed by the custodial parent attesting to the amount of past-due support owed; and 3. In non-title IV-A cases in which support rights have not been assigned under subparagraph (a), the obligee parent’s current address; and (d) Before submittal to the federal Office of Child Support Enforcement, the Department has verified the accuracy of the name and social security number of the obligor and the accuracy of the amount of past-due support. If the Department has previously verified this information, it need not reverify it.

(3) Any individual who has received notice that his/her federal tax refund is or will be intercepted and applied to a past due support obligation, may request and receive a fair hearing as provided in 1240-5- 3-.01. If an individual requests a hearing upon receipt of a pre-offset notice, he/she may not request a hearing upon receipt of a post-offset notice.

(a) If the hearing results in a deletion of, or decrease in, the amount referred for offset, the Department will notify the Federal Office of Child Support Enforcement of the deletion or decrease.

(b) If, as a result of the hearing, an amount which has already been offset is found to have exceeded the amount of past due support owed, the Department will refund the excess amount to the absent parent.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 8-21-403, 36-5-101(e), 36-5-116, 71-1-105 and 71-1-132; 42 U.S.C. §§ 654b, 664, 666, 667 and 671; and 45 C.F.R. §§ 301.1, 302.56, 303.72 and 303.72(a) (as amended by 50 FR 19651, 19652).
• Administrative History: Original rule filed January 23, 1986; effective February 22, 1986. Amendment filed August 25, 1989; effective October 13, 1989. Amendment filed July 1, 2005; effective September 14, 2005. Amendment filed September 10, 2007; effective November 24, 2007.

Tenn. Comp. R. & Regs. 1240-02-03-.03 CHILD SUPPORT PROCESSING FEE

(1) Pursuant to T.C.A. §§ 8-21-403 and §§ 36-5-116, the Department of Human Services reduces the fee paid by the obligor for the collection and distribution of child support through the central collection system from five percent (5%) as set forth in T.C.A. §§ 8-21-403 and 36-5-116 to zero percent (0%).

(2) This fee reduction and new fee amount shall become effective upon implementation of this Rule.

(3) This Rule shall have no effect on the child support processing fee due to the court clerks that by law would otherwise continue to be paid by the obligor for the collection and distribution of child support through the court clerk.

History

• Authority: T.C.A. §§4-5-201 et seq., 8-21-403, 36-5-116, and 42 USC §§654b and 666.
• Administrative History: Original rule filed August 26, 2002; effective November 9, 2002.

Chapter 1240-02-04 Child Support Guidelines

Tenn. Comp. R. & Regs. 1240-02-04-.01 LEGAL BASIS, SCOPE, AND PURPOSE

(1) Federal and State Legal Requirements for the Establishment and Application of Child Support Guidelines.

(a) Title IV-D of the Social Security Act (42 U.S.C. §§ 651-669), specifically 42 U.S.C. § 667 and 45 C.F.R. § 302.56, requires that states establish guidelines for setting and modifying child support award amounts in each state. Tennessee Code Annotated §§ 36-5-101(e), 71-1-105(a)(15), and 71-1-132 implement these requirements and direct the Tennessee Department of Human Services to establish those guidelines to enforce the provisions of federal law.

(b) The Tennessee Department of Human Services is the authorized state agency for the enforcement of the child support program in the State of Tennessee under Title IV-D of the Social Security Act. The Department of Human Services will comply with federal and state requirements to promulgate Child Support Guidelines to be used in setting awards of child support.

(c) Pursuant to 42 U.S.C. § 667 and 45 C.F.R. § 302.56, the Child Support Guidelines must be made available to all persons in the state whose duty it is to set or modify child support award amounts in all child support cases.

(d) Pursuant to federal laws and regulatio ns, the Child Support Guidelines established by a state must, at a minimum:

1. Be applied by all judicial or administrative tribunals and other officials of the state who have power to determine child support orders in the state as a rebuttable presumption as to the amount of child support to be awarded in child support cases and result in a presumptively correct child support orders;

2. Provide that the child support order is based on the Alternate Residential Parent’s (ARP’s) earnings, income, and other evidence of ability to pay that:

(i) Takes into consideration all earnings and income of the alternate residential parent;

(ii) Takes into consideration the basic subsistence needs of the ARP who has a limited ability to pay by incorporating a low-income adjustment, such as a self support reserve or some other method determined by the State; and (iii) If imputation of income is authorized, takes into consideration the specific circumstances of the ARP (and at the State’s discretion, the PRP) to the extent known, including such factors as the ARP’s assets, residence, employment and earnings history, job skills, educational attainment, literacy, age, health, criminal record and other employment barriers, and record of seeking work, as well as the local job market, the availability of employers willing to hire the ARP, prevailing earnings level in the local community, and other relevant background factors in the case.

3. Be based on specific descriptive and numeric criteria and result in the computation of the child support obligation;

4. Address how the parents will provide for the child’s health care needs through private or public health care coverage and/or through cash medical support; and 5. Provide that incarceration may not be treated as voluntary unemployment in establishing or modifying support orders.

(e) Federal law and regulations further provide that the amount of child support mandated by the Guidelines may be rebutted if the tribunal setting or modifying support includes, in writing, in the order:

1. The reasons the tribunal deviated from the presumptive amount of child support that would have been paid pursuant to the Guidelines;

2. The amount of child support that would have been required under the Guidelines if the presumptive amount had not been rebutted; and 3. A finding by the tribunal that states how, in its determination, (i) Application of the Guidelines would be unjust or inappropriate in the particular case before the tribunal; and (ii) The best interests of the child or children who are subject to the support award determination are served by deviation from the presumptive guideline amount.

(2) Effective Date and Applicability.

(a) The Child Support Guidelines established by this Chapter shall be applicable in every judicial or administrative action to establish, modify, or enforce child support, whether temporary or permanent, whether the action is filed before or after the effective date of these rules, where a hearing which results in an order establishing, modifying, or enforcing support is held after the effective date of these rules.

(b) The Child Support Guidelines shall be applied to all of the following cases involving the establishment, modification, or enforcement of child support:

1. Divorce or separate maintenance actions of married persons who are living separately, who have children of the marriage, including those actions in which a marital dissolution agreement or parenting plan is executed.

(i) If the parties stipulate to the child support to be paid for the support of the parties’ children, the stipulations, whether in a marital dissolution agreement, parenting plan, or in any other document establishing the amounts to be paid for the support of the parties’ children, shall be reviewed by the tribunal before approval.

(ii) No hearing shall be required as to the amount of child support awarded in such cases. However, the tribunal shall use the Guidelines in reviewing the adequacy of child support obligations negotiated by the parties, including provisions for medical care, and, if the negotiated agreement does not comply with the Guidelines or contain the findings of fact necessary to support a deviation, the tribunal shall reject the agreement.

(iii) In such stipulations, the order approving the agreement or parenting plan or other document:

(I) Shall establish a specific numerical dollar figure for support to be paid at specified intervals (weekly, biweekly, semimonthly, monthly).

The final child support order shall not be expressed as a percentage of the parent’s income.

(II) If the agreement does not state the amount of support calculated under the Guidelines, the order of the tribunal approving the agreement shall state the amount of support proposed in the agreement and the guideline amount and shall provide in writing:

I. The reasons the tribunal deviated from the presumptive amount of child support that would have been paid pursuant to the Guidelines;

II. The amount of child support that would have been required under the Guidelines if the presumptive amount had not been rebutted; and III. A finding by the tribunal that states how, in its determination, A. Application of the Guidelines would be unjust or inappropriate in the particular case before the tribunal; and B. The best interests of the child or children who are subject to the support award determination are served by deviation from the presumptive guideline amount.

2. Paternity determinations;

3. Actions involving orders for custody of a child, whether in state trial or juvenile tribunals, including actions where the State is seeking, or is given, custody of a child due to abuse, dependency, delinquency or unruliness of the child, or in any case in which legal or physical custody of the child is transferred to a private or public agency or to any entity for any other reason;

4. Domestic violence orders of protection;

5. Any other actions in which the provision of support for children is established by law; and 6. Actions seeking interstate enforcement of support orders for any of the reasons in parts 1.-5. above.

(3) The major goals in the development and application of these Guidelines are, to the extent possible, to:

(a) Decrease the number of impoverished children living in single parent families by establishing guidelines that encourage regular, on-time payments to all families and increase the number of ARPs working and supporting their children;

(b) Make child support orders more equitable by ensuring more consistent treatment of persons in similar circumstances while establishing an accurate child support order and obtain compliance with the order based on the real circumstances of the parties and the best interests of the child in the case before the tribunal are taken into consideration;

(c) Improve the efficiency of the tribunal process by promoting settlements and by giving tribunals and parties guidance in establishing appropriate levels of support orders;

(d) Encourage parents paying support to maintain contact with their child;

(e) Ensure that, when parents live separately, the economic impact on the child is minimized while setting an accurate order based upon the ability to pay, and, to the extent that either parent enjoys a higher standard of living, the child shares in that higher standard;

(f) Ensure that a minimum amount of child support is set for parents with a low income in order to maintain a bond between the parent and the child, to establish patterns of regular payment, and to enable the child support enforcement agency and party receiving support to maintain contact with the parent paying support; and (g) Allocate a parent’s financial child support responsibility from the parent’s income among all of the parent’s children for whom the parent is legally responsible in a manner that gives equitable consideration, as defined by the Department’s Guidelines, to children for whom support is being set in the case before the tribunal and to other children for whom the parent is legally responsible and supporting.

(4) These Guidelines are a minimum base for determining child support obligations. The presumptive child support order may be increased according to the best interest of the child for whom support is being considered, the circumstances of the parties, and the rules of this

chapter.

History

• Authority: T.C.A. §§ 4-5-202, 36-5-101(e), 37-1-151, 71-1-105(a)(12) and (15), and 71-1-132; 42 U.S.C. §§ 654 and 667; and 45 C.F.R. § 302.56.
• Administrative History: New rule filed December 18, 1987; effective February 1, 1988. Amendment filed August 25, 1989; effective October 13, 1989. Amendment filed September 1994; effective December 14, 1994. Repeal and new rule filed November 4, 2004; effective January 18, 2005. Repeal and new rule filed April 6, 2006; effective June 20, 2006. Stay of effective date of rule filed April 19, 2006; new effective date of rule June 26, 2006. Amendments filed February 10, 2020; effective May 10, 2020.

Tenn. Comp. R. & Regs. 1240-02-04-.02 DEFINITIONS

(1) “Adjusted Gross Income” — The Adjusted Gross Income (AGI) is the net determination of a parent’s income, calculated by modifying the parent’s gross income as follows:

(a) Adding to the parent’s gross income any social security benefit paid to the child on the parent’s account;

(b) Deducting from gross income any applicable self-employment taxes being paid by the parent; and (c) Deducting from gross income any credits as set forth in these Rules for the individual parent’s other children for whom the parent is legally responsible and is actually supporting.

(2) “Adjusted Support Obligation” — The adjusted support obligation (ASO) is the Basic Child Support Obligation (BCSO) from the Child Support Schedule (CS Schedule), adjusted for parenting time as set forth in these Rules, health care insurance, work-related childcare expenses, and recurring uninsured medical expenses.

(3) “Adjustments for Additional Expenses” — The additional expenses associated with the cost of health care insurance for the child, work-related childcare, and recurring uninsured medical expenses are not included in the Basic Child Support Obligation (BCSO) and must be added to the BCSO to determine the Adjusted Support Obligation (ASO).

(4) “Alternate Residential Parent (ARP)” — The “alternate residential parent” (ARP) is the parent with whom the child resides less than fifty percent (50%) of the time.

(5) “Basic Child Support Obligation” — The Basic Child Support Obligation (BCSO) is the amount of support displayed on the Child Support Schedule (CS Schedule) which corresponds to the combined Adjusted Gross Income (AGI) of both parents and the number of children for whom support is being determined. The BCSO amount is rebuttably presumed to be the appropriate amount of basic child support to be provided by both parents prior to consideration of any adjustments for parenting time or additional expenses. However, if the obligor’s adjusted gross income falls within the shaded area of the CS Schedule, the BCSO may be computed using only the obligor’s income. [see “Self Support Reserve” definition]

(6) “Caretaker” — The person or entity providing primary care and supervision of a child. The caretaker is the child’s Primary Residential Parent. The caretaker may be a parent of the child, a non-parent person or agency who voluntarily or, pursuant to tribunal order or other legal arrangement, is providing care and supervision of the child (for example, the child’s grandparent). A caretaker may be a private or public agency or person not related to the child providing custodial care and supervision for the child through voluntary or involuntary placement by the child’s parent, non-parent relative, or other designated caretaker, or by court order or other legal arrangement (for example, a foster parent). In these rules, the designation “non-parent caretaker” refers to a private or public agency, a non-parent person who may or may not be related to the child, or another designated caretaker who provides the primary care and supervision for the child.

(7) “Child” — “Child” includes the plural “children,” and “children” includes the singular “child,” where the context requires. For purposes of this chapter, “child” means:

(a) A person, not otherwise emancipated, who is less than eighteen (18) years of age or a person who reaches eighteen (18) years while in high school until the person graduates from high school or until the class of which the person is a member when the person attains eighteen (18) years of age graduates, whichever occurs last; or (b) A person who is disabled pursuant to Tennessee Code Annotated § 36-5-101(k).

(8) “Child Support Schedule” — The Child Support Schedule (CS Schedule or Schedule) is a chart which displays the dollar amount of the BCSO corresponding to various levels of combined AGI of the children’s parents and the number of children for whom a child support order is being established or modified. The Schedule shall be used to calculate the BCSO, according to the rules in this chapter. The shaded area on the schedule represents the SSR amount. Deviations from the Schedule shall comply with the requirements of 1240-02-04-.07.

(9) “Combined Adjusted Gross Income” — The amount of AGI calculated by adding together the AGI of both parents. This amount is then used to determine the BCSO for both parents for the number of chil dren for whom support is being calculated in the case immediately under consideration. However, if the obligor’s AGI falls within the shaded area of the CS Schedule, a comparison must be completed to determine if the BCSO is computed using only the obligor’s income.

(10) “Days” — For purposes of this chapter, a “day” of parenting time occurs when the child spends more than twelve (12) consecutive hours in a twenty-four (24) hour period under the care, control or direct supervision of one parent or caretaker. The twenty-four (24) hour period need not be the same as a twenty-four (24) hour calendar day. Accordingly, a “day” of parenting time may encompass either an overnight period or a daytime period, or a combination thereof. In extraordinary circumstances, routinely incurred parenting time of shorter duration may be cumulated as a single day for parenting time purposes.

(11) “Department” — The Tennessee Department of Human Services.

(12) “Fifty-fifty Parenting/Equal Parenting” — For purposes of this chapter, parenting is fifty-fifty (50-50) or equal when the parents of the child each spend fifty percent (50%) of the parenting time with that child. On the Child Support Worksheet, each parent will be designated as having one hundred eighty-two point five (182.5) days with the child. For purposes of calculating the support obligation, fifty-fifty/equal parenting is a form of standard parenting.

(13) “Final Child Support Order” — The presumptive child support order (PCSO) adjusted by any deviations ordered by the tribunal or adjusted to the minimum child support order.

(14) “Health Insurance” — Health insurance includes medical, vision, and dental coverage for the minor child(ren), if available at a reasonable cost.

(15) “Legally Responsible for a Child” — For purposes of this chapter, a person is “legally responsible for a child” or legally obligated for a child or children when the child is or has been:

(a) Born of the parent’s body;

(b) Born of the parents’ marriage if the child is born during the marriage or within three hundred (300) days after termination of the marriage by death, annulment, declaration of invalidity, or divorce;

(c) Legally adopted by the parent;

(d) Voluntarily acknowledged by the parent as the parent’s child pursuant to Tennessee Code Annotated § 24-7-113 or pursuant to the voluntary acknowledgement procedure of any other state or territory that comports with Title IV-D of the Social Security Act; or (e) Determined to be the child of the parent by any tribunal of this State, any other state or territory, or a foreign country pursuant to a reciprocal agreement or treaty.

(16) “Obligee” — The parent or caretaker that receives payment of the child support obligation from the Obligor. The Obligee can be either the PRP, the ARP, or the non-parent caretaker of the child(ren).

(17) “Obligor” — The parent that is responsible for payment of the child support obligation to the Obligee. The Obligor can be either the PRP or ARP of the child(ren), but in no case shall the Obligor be a child’s non-parent caretaker.

(18) “Parent” — For purposes of this chapter, “parent” means a person who:

(a) Gave birth to the child;

(b) Was married to the mother of the child at the time of the birth of the child or within three hundred (300) days after termination of the marriage by death, annulment, declaration of invalidity, or divorce;

(c) Legally adopted the child;

(d) Voluntarily acknowledged the child pursuant to Tennessee Code Annotated § 24-7-113 or pursuant to the voluntary acknowledgement procedure of any other state or territory of the United States that comports with Title IV-D of the Social Security Act; or (e) Has been determined to be a parent of the child by any tribunal of this State, any other state or territory, or a foreign country pursuant to a reciprocal agreement or treaty.

(19) “Parenting Time Adjustment” — Adjustment to the BCSO based upon parenting time.

(20) “Percentage of Income” — The Percentage of Income (PI) for each parent is obtained by dividing each parent’s AGI (see paragraph (1) above) by the combined total of both parents’ AGI. The PI is used to determine each parent’s pro rata share of the BCSO, as well as each parent’s share of the amount of additional expense for health insurance, work-related childcare costs, and recurring uninsured medical expenses. [Also see paragraph (23) below – “pro rata”]

(21) “Presumptive Child Support Order.”

(a) The “Presumptive Child Support Order” (PCSO) is the amount of support to be paid for the child derived from the parent’s proportional share of the basic child support obligation, adjusted for parenting time, plus the parent’s proportional share of any additional expenses.

(b) This amount is rebuttably presumed to be the appropriate child support order.

(22) “Primary Residential Parent (PRP).”

(a) The “primary residential parent” (PRP) is the parent with whom the child resides more than fifty percent (50%) of the time. The PRP also refers to the parent designated as such by Tennessee Code Annotated § 36-6-402 and, if not determined by these rules, the parent designated as such by the tribunal.

(b) A non-parent caretaker that has physical custody of the child is the child’s PRP for the purposes of these rules. See: Tennessee Code Annotated §§ 36-5-101(b); 71-3- 124(a)(6)

(c) If a primary residential parent has not been otherwise designated, the primary residential parent will be determined consistent with the criteria of subparagraphs (a) and (b) above.

(23) “Pro rata.”

(a) For the purposes of this chapter, “pro rata” refers to the proportion of one parent’s Adjusted Gross Income to both parents’ combined Adjusted Gross Income, or to the proportion of one parent’s support obligation to the whole support obligation. [Also see paragraph (20) above – “percentage of income”]

(b) A parent’s pro rata share of income is calculated by combining both parents’ Adjusted Gross Income and dividing each parent’s separate Adjusted Gross Income by the combined Adjusted Gross Income.

(c) A parent’s pro rata share of the basic support obligation is calculated by multiplying the basic child support obligation obtained from the Child Support Schedule by each parent’s pro rata percentage of the combined Adjusted Gross Income.

(24) “Reasonable Cost of Insurance” — When the Order states that insurance should be provided when available at a reasonable cost, the cost of insurance is considered reasonable to the parent responsible for providing medical support for the child(ren) if the cost does not exceed five percent (5%) of his or her gross income. If adding vision and/or dental insurance for the child(ren) increases the total cost of the insurance to more than 5% of gross income, only medical insurance is required.

(25) “Self Support Reserve (SSR)” — The minimum amount of income required to meet the basic subsistence needs of a parent as determined under 1240-02-04-.03 is considered the self support reserve. The obligor is eligible for the SSR adjustment if his/her income falls within the shaded area of the CS Schedule. The SSR adjustment amount shall be compared to the obligor’s proportionate share using the combined AGI of the parents to determine the BCSO from the CS Schedule and multiplying by the PI. The lesser amount of the two establishes the Calculated BCSO Owed.

(26) “Split Parenting”— For purposes of this chapter, “split parenting” can only occur in a child support case if there are two (2) or more children of the same parents, where one (1) parent is PRP for at least one (1) child of the parents, and the other parent is PRP for at least one (1) other child of the parents. In a split parenting case, each parent is the PRP of any child spending more than fifty percent (50%) of the time with that parent and is the ARP of any child spending more than fifty percent (50%) of the time with the other parent. A split parenting situation will have two (2) PRPs and two (2) ARPs, but no child will have more than one (1) PRP or ARP.

(27) “Standard Parenting” — For purposes of this chapter, “standard parenting” refers to a child support case in which all of the children supported under the order spend more than fifty percent (50%) of the time with the same PRP. There is only one (1) PRP and one (1) ARP in a standard parenting case.

(28) “Theoretical Support Order” or “Theoretical Order” — A theoretical support order is a hypothetical order which allows the finder of fact to determine the amount of a child support obligation if an order existed. In these rules, a theoretical order is used to determine the amount of credit allowed as a deduction from a parent’s gross income for a parent’s qualified other children who are receiving support from that parent, whether or not the support is provided pursuant to a child support order.

(29) “Tribunal” — A judicial or administrative body or agency granted legal authority to determine disputed issues within its jurisdiction including, but not limited to, the establishment, modification, or enforcement of child support and paternity issues.

(30) “Uninsured Medical Expenses” — For the purposes of this chapter, the child’s uninsured medical expenses include, but are not limited to, health insurance co-payments, deductibles, and such other costs as are reasonably necessary for orthodontia, dental treatment, asthma treatments, physical therapy, vision care, and any acute or chronic medical/health problem, or mental health illness, including counseling and other medical or mental health expenses, that are not covered by insurance.

(31) “Variable Multiplier.”

A mathematical formula based upon the number of days the ARP spends with the child and the amount of the BCSO which is used in the calculation of a parenting time adjustment in parenting situations where the ARP spends ninety-two (92) or more days per calendar year with a child, or an average of ninety-two (92) days with all applicable children.

(32) “Work-Related Childcare Costs.”

(a) For the purposes of this chapter, work-related childcare costs mean expenses for the care of the child for whom support is being determined which are due to employment of either parent or non-parent caretaker.

(b) In an appropriate case, the tribunal may consider the childcare costs associated with a parent’s job search or the training or education of either parent necessary to obtain a job or enhance earning potential, not to exceed a reasonable time as determined by the tribunal, if the parent proves by a preponderance of the evidence that the job search, job training, or education will benefit the children being supported.

(c) Childcare costs shall be projected for the next consecutive twelve (12) months and averaged to obtain a monthly amount.

History

• Authority: T.C.A. §§ 4-5-202, 36-5-101(e), 71-1-105(a)(12) and (15), and 71-1-132; 42 U.S.C. § 667; and 45 C.F.R. § 302.56.
• Administrative History: New rule filed December 18, 1987; effective February 1, 1988. Amendment filed August 25, 1989; effective October 13, 1989. Amendment filed September 29, 1994; effective December 14, 1994. Repeal and new rule filed November 4, 2004; effective January 18, 2005. Repeal and new rule filed April 6, 2006; effective June 20, 2006. Stay of effective date of rule filed April 19, 2006; new effective date of rule June 26, 2006. Amendments filed February 10, 2020; effective May 10, 2020.

Tenn. Comp. R. & Regs. 1240-02-04-.03 THE INCOME SHARES MODEL

(1) General Basis.

The Tennessee Child Support Guidelines are based on an Income Shares Model. This model presumes that both parents contribute to the financial support of the child in pro rata proportion to the actual income available to each parent.

(b) The Income Shares model differs from the Department’s prior Flat Percentage model, established in 1989, which calculated the amount of the child support award based upon the net income of the non-custodial or alternate residential parent and which assumed an equivalent amount of financial or in-kind support was being supplied to the child by the custodial or primary residential parent. Although federal law requires consideration of only the income of the alternate residential parent, under the Income Shares model, both parents’ actual income and actual additional expenses of rearing the child are considered and made part of the support order.

(2) The Income Shares model, which is used by over forty (40) other states, is generally based on economic studies of child-rearing costs, including those of David Betson, Erwin Rothbarth, and Ernst Engel, and studies conducted by the United States Department of Agriculture and the United States Department of Labor’s Bureau of Labor Statistics involving expenditures for the care of children.

(3) The Child Support Guidelines established by this chapter were developed and adjusted as needed based upon:

(a) Studies of child-rearing costs conducted by David Betson, Erwin Rothbarth, and Ernst Engel which utilized information on child-rearing costs conducted by the United States Department of Agriculture and the United States Department of Labor’s Bureau of Labor Statistics;

(b) Comments on these Guidelines by advocacy groups, judges, child support magistrates, attorneys, legislators, Title IV-D child support contractors and staff of the Tennessee Department of Human Services, and oral and written comments resulting from public hearings;

(c) The work and input of the Tennessee Department of Human Services’ Child Support Guidelines Task Force established in 2002. The Task Force was established to assist the Department in reviewing and considering changes to the existing Child Support Guidelines that were originally adopted in 1989 and based upon the Flat Percentage Model;

(d) Review of the child support guidelines of other states;

(e) Recommendations made to states generally by the United States Office of Child Support Enforcement regarding measurements of child-rearing costs and their use in establishing child support guidelines;

(f) The Income Shares Advisory Committee established in 2005 pursuant to 2005 Tenn.

Pub. Acts 403; and (g) A Task Force established in 2017 in order to address requirements outlined in the federal “Flexibility, Efficiency, and Modernization in Child Support Enforcement Programs” final rule of 2016, located at Fed. Reg. Vo. 81, No. 244 (Dec. 20, 2016).

(4) Assumptions and Methodology Used in the Income Shares Model.

(a) Determination of the Basic Child Support Obligation.

1. The Income Shares Model incorporates a numerical schedule, designated in these Guidelines as the CS Schedule or Schedule, found in Rule 1240-02-04- .09, that establishes the dollar amount of child support obligations corresponding to various levels of parents’ combined AGI, the number of children for whom the child support order is being established or modified, and taking into consideration SSR requirements.

2. The Schedule is used to determine the BCSO, according to the rules in this

chapter.

3. Each parent’s share of the BCSO is determined by prorating the child support obligation between the parents in the same ratios as each parent’s individual AGI is to the Combined AGI.

4. If custody or guardianship of a child is awarded to a person or entity other than a parent of the child as defined in 1240-02-04-.02(15), the child support obligation shall be calculated on the Worksheet according to the rules for standard parenting, and each parent will be responsible for paying his/her share of the final obligation to the non-parent caretaker of the child. If only one parent is available, then that parent’s income alone is considered in establishing the child support award. The income of a non-parent caretaker is not considered. If the tribunal is able to order both parents to pay support for the children, the tribunal shall assign each parent a Pro Rata share of the additional expenses.

5. When a child is placed in State custody, the Department of Children’s Services may set the initial child support order without using the worksheet.

(b) Child Support Schedule Assumptions.

1. The Child Support Schedule is based on the Combined AGI of both parties.

2. Self Support Reserve (SSR).

(i) The guidelines include a SSR that ensures obligors have sufficient income to maintain a minimum standard of living based on 90% of the 2020 federal poverty level for one person ($957 gross income per month).

(ii) If the obligor’s AGI falls within the shaded area of the CS Schedule and the SSR is used, the BCSO is computed using only the obligor’s income. This shaded area incorporates a SSR of $957 (90% gross income of the 2020 federal poverty level for one person). In all other cases, the BCSO is computed using the combined AGIs of both parents.

(iii) If the obligation using only the obligor’s monthly gross income is an obligation within the shaded area of the CS Schedule, that amount shall be compared to the obligor’s proportionate share using both parents’ monthly gross incomes. The lesser amount establishes the BCSO. If the SSR is applied, the obligor will not receive the parenting time credit.

3. Taxation Assumptions.

(i) All income is earned income subject to federal withholding and the Federal Insurance Contributions Act (FICA/Social Security).

(ii) The ARP will file as a single wage earner claiming one withholding allowance, and the PRP claims the tax exemptions for the child or tax benefits associated with the child such as the Federal Earned Tax Credit (EITC).

(iii) The Schedule’s combined obligation includes the tax adjustments for federal withholding and the Federal Insurance Contributions Act (FICA/Social Security).

4. The Schedule is based upon the 1996-1999 Consumer Expenditures Survey, conducted by the U.S. Bureau of Labor Statistics, and updated to 2003 levels by adjusting for the rise in the Consumer Price Index since 1996.

(i) The Schedule has been evaluated as part of each guidelines review in consideration of the most current economic data on the cost of raising children, more current expenditures data and price level data, and changes in Tennessee incomes. This information does not overwhelmingly indicate that substantial changes to the Schedule are necessary.

(ii) The Schedule also incorporates the 2018 federal poverty level for one person based on the 2016 federal requirement for states to consider the obligor’s subsistence needs.

5. Basic Expenses.

(i) The Schedule assumes that all families incur certain child-rearing expenses and includes in the BCSO an average amount to cover these expenses for various levels of the parents’ combined income and number of children. The bulk of these child-rearing expenses is comprised of housing, food, and transportation. The share of total expenditures devoted to clothing and entertainment is also included in the BCSO but is relatively small compared to the other three items.

(ii) Basic educational expenses associated with the academic curriculum for a public school education, such as fees, books, and local field trips, are also included in the BCSO as determined by the Schedule.

(iii) The BCSO does not include the child’s health Insurance premium, workrelated childcare costs, the child ’s uninsured medical expenses, special expenses, or extraordinary educational expenses because of the highly variable nature of these expenses among different families.

6. Extraordinary Education Expenses.

(i) Extraordinary education expenses including, but not limited to, tuition, room and board, fees, books, and other reasonable and necessary expenses associated with special needs education or private elementary and secondary schooling are not included in the basic child support schedule.

(ii) Extraordinary educational expenses may be added to the presumptive child support order as a deviation.

7. Special Expenses.

(i) Special expenses include, but are not limited to, summer camp, music or art lessons, travel, school-sponsored extra-curricular activities, such as band, clubs, and athletics, and other activities intended to enhance the athletic, social, or cultural development of a child that do not otherwise qualify as mandated expenses like health insurance premiums and workrelated childcare costs.

(ii) Special expenses incurred for child rearing which are quantified shall be considered and may be added by the tribunal to the Presumptive Child Support Order (PCSO) as a deviation when this category of expenses exceeds seven percent (7%) of the monthly Basic Child Support Obligation (BCSO).

(c) In the Income Shares model, it is presumed that the PRP spends his or her share of the child support obligation directly on the child and that the ARP share is only one component of the total child support obligation.

(d) Adjustments to the BCSO.

1. In addition to basic support set forth in the Schedule, the child support award shall include adjustments that account for each parent’s pro rata share of the child’s health insurance premium costs, uninsured medical expenses, and workrelated childcare costs, as provided in 1240-02-04-.04(8). These costs are not included in the Schedule because they are highly variable among cases.

2. The BCSO shall also be adjusted based upon the parenting time of the ARP.

(5) Revisions to the Child Support Schedule.

(a) The CS Schedule will be reviewed by the Department, as required by T.C.A. § 36-5- 101(e) and by Federal law, and revised, if necessary, to account for changes in the BCSO due to tax changes and/or to account for changes in child rearing costs as reported by the Consumer Expenditures Survey conducted by the U.S. Bureau of Labor Statistics and to reflect authoritative economic studies of child rearing costs. If significant changes in tax laws and child rearing costs warrant, the Department may review and revise the CS Schedule prior to the regular review.

(b) Any revised CS Schedule published subsequent to the first Schedule appearing in Rule

Tenn. Comp. R. & Regs. 1240-02-04-.04 DETERMINIATION OF CHILD SUPPORT

(1) Required Forms.

(a) These rules contain a Child Support Worksheet, a Credit Worksheet, Instructions for both Worksheets, and the Child Support Schedule which shall be required to implement the child support order determination. The Child Support Worksheet calculator can be found at the Department’s website.

(b) The use of the Worksheets promulgated by the Department is mandatory in order to ensure uniformity in the calculation of child support awards pursuant to the rules. A Worksheet shall be used with the exception referenced in 1240-02-04-.04(h) below when a child is placed in State custody.

(c) In the event that the language contained in the Worksheets, Instructions, or Schedule conflicts in any way with the language of subchapters 1240-02-04-.01 – .07, the language of those subchapters is controlling.

(d) The Credit Worksheet shall be used for listing information regarding a parent’s qualified other children and/or for calculating the appropriate credit for support provided to a parent’s other qualified children.

(e) The completed Worksheets must be maintained as part of the official record either by filing them as exhibits in the tribunal’s file or as attachments to the order.

(f) Any child support obligation determined by calculations made using the Department Worksheets shall also be reflected in the tribunal’s order, together with a description of any additional expenses the parent is to pay as part of the child’s support as well as any deviations from the presumptive child support order.

(g) Worksheets, Instructions, and the Child Support Schedule, as promulgated by the Department, may be produced by the Department with different formatting and additional highlights for use by the courts, the bar, the public, Department personnel, and the Department’s contractors.

(h) When the child is placed in State custody, the Department of Children’s Services may set the initial child support order without using the worksheet.

(2) In all cases, the top of the Child Support Worksheet shall be completed with the applicable case identifying information, including the names and dates of birth of the child for whom support is being determined in the case.

(3) Gross income.

(a) Determination of Gross Income.

1. Gross income of each parent shall be determined in the process of setting the presumptive child support order and shall include all income from any source (before deductions for taxes and other deductions such as credits for other qualified children), whether earned or unearned, and includes, but is not limited to, the following:

(i) Wages;

(ii) Salaries;

(iii) Commissions, fees, and tips;

(iv) Income from self-employment;

(v) Bonuses;

(vi) Overtime payments;

(vii) Severance pay;

(viii) Pensions or retirement plans including, but not limited to, Social Security, Veterans Affairs Department, Railroad Retirement Board, Keoughs, and Individual Retirement Accounts (IRAs);

(ix) Interest income;

(x) Dividend income;

(xi) Trust income;

(xii) Annuities;

(xiii) Net capital gains;

(xiv) Disability or retirement benefits that are received from the Social Security Administration pursuant to Title II of the Social Security Act or from the Veterans Affairs Department, whether paid to the parent or to the child based upon the parent’s account;

(xv) Workers compensation benefits, whether temporary or permanent;

(xvi) Unemployment insurance benefits;

(xvii) Judgments recovered for personal injuries and awards from other civil actions;

(xviii) Gifts that consist of cash or other liquid instruments, or which can be converted to cash, or which can produce income such as real estate, or which reduces a parent’s living expenses such as housing paid by others; in whole or in part;

(xix) Inheritances that consist of cash or other liquid instruments, or which can be converted to cash, or which can produce income such as real estate;

(xx) Prizes;

(xxi) Lottery winnings;

(xxii) Alimony or maintenance received from persons other than parties to the proceeding before the tribunal; and (xxiii) Actual income earned during incarceration by an inmate.

2. Imputed Income.

(i) Imputing additional gross income to a parent is appropriate in the following situations:

(I) If a parent has been determined by a tribunal to be willfully underemployed or unemployed; or (II) When there is no reliable evidence of income due to a parent failing to participate in a child support proceeding or a parent failing to supply adequate and reliable financial information in a child support proceeding; or (III) When the parent owns substantial non-income producing assets, the court may impute income based upon a reasonable rate of return upon the assets.

(ii) Determination of Willful Underemployment or Unemployment.

The Guidelines do not presume that any parent is willfully underemployed or unemployed. The purpose of the determination is to ascertain the reasons for the parent’s occupational choices, to assess the reasonableness of these choices in light of the parent’s obligation to support his or her child(ren), and to determine whether such choices benefit the children.

(I) A determination of willful underemployment or unemployment is not limited to choices motivated by an intent to avoid or reduce the payment of child support.

I. The determination may be based on any intentional choice or act that adversely affects a parent’s income.

II. Under the Guidelines, however, incarceration of a parent shall not be treated as willful underemployment or unemployment for the purpose of establishing or modifying a child support order.

(II) Once a parent has been found to be willfully underemployed or unemployed, additional income can be allocated to that parent to increase the parent’s gross income to an amount which reflects the parent’s income potential or earning capacity, and the increased amount shall be used for child support calculation purposes. The additional income allocated to the parent shall be determined using the following criteria:

I. The parent’s past and present employment; and II. The parent’s education and training.

(III) A determination of willful underemployment or unemployment shall not be made when an individual enlists, is drafted, or is activated from a Reserve or National Guard unit for full-time service in the Armed Forces of the United States.

(iii) Factors to be Considered When Determining Willful Underemployment or Unemployment.

The following factors may be considered by a tribunal when making a determination of willful underemployment or unemployment:

(I) The parent’s past and present employment;

(II) The parent’s education, training, and ability to work;

(III) The State of Tennessee recognizes the role of a stay-at-home parent as an important and valuable factor in a child’s life. In considering whether there should be any imputation of income to a stay-at-home parent, the tribunal shall consider:

I. Whether the parent acted in the role of full-time caretaker while the parents were living in the same household;

II. The length of time the parent staying at home has remained out of the workforce for this purpose; and III. The age of the minor children.

(IV) A parent’s extravagant lifestyle, including ownership of valuable assets and resources (such as an expensive home or automobile), that appears inappropriate or unreasonable for the income claimed by the parent;

(V) The parent’s role as caretaker of a handicapped or seriously ill child of that parent, or any other handicapped or seriously ill relative for whom that parent has assumed the role of caretaker which eliminates or substantially reduces the parent’s ability to work outside the home, and the need of that parent to continue in that role in the future;

(VI) Whether unemployment or underemployment for the purpose of pursuing additional training or education is reasonable in light of the parent’s obligation to support his/her children and, to this end, whether the training or education will ultimately benefit the child in the case immediately under consideration by increasing the parent’s level of support for that child in the future; and (VII) Any additional factors deemed relevant to the particular circumstances of the case.

(iv) Imputing Income When There is No Adequate and Reliable Evidence of Income.

(I) When Establishing an Initial Order.

I. If a parent fails to produce adequate and reliable evidence of income (such as tax returns for prior years, check stubs, or other information for determining current ability to support or ability to support in prior years for calculating retroactive support); and II. The tribunal has no adequate and reliable evidence of the parent’s income or income potential;

III. Then, in such cases, the tribunal must take into consideration the specific circumstances of the parent to the extent known, including, but not limited to, the following factors:

A. Assets;

B. Residence;

C. Employment and earnings history;

D. Job skills;

E. Educational attainment;

F. Literacy;

G. Age;

H. Health;

I. Criminal record and other employment barriers;

J. Records of seeking work;

K. The local job market;

L. The availability of employers willing to hire the parents;

M. Prevailing earnings level in the local community; and N. Other relevant background factors.

IV. If imputation of income is authorized, gross income for the current and prior years shall be determined by imputing annual gross income of forty-three thousand seven hundred sixty-one dollars ($43,761) for male parents and thirty-five thousand nine hundred thirty-six dollars ($35,936) for female parents. These figures represent the full time, year-round workers’ median gross income, for the Tennessee population only, from the American Community Survey of 2016 from the U.S. Census Bureau.

(II) When Modifying an Existing Order I. If a parent fails to produce adequate and reliable evidence of income (such as tax returns for prior years, check stubs, or other information for determining current ability to support); and II. The tribunal has no adequate and reliable evidence of that parent’s income or income potential;

III. Then, in such cases, the tribunal must take into consideration the specific circumstances of the parent to the extent known, including, but not limited to, the following factors:

A. Assets;

B. Residence;

C. Employment and earnings history;

D. Job skills;

E. Educational attainment;

F. Literacy;

G. Age;

H. Health;

I. Criminal record and other employment barriers;

J. Records of seeking work;

K. The local job market;

L. The availability of employers willing to hire the parents;

M. Prevailing earnings level in the local community; and N. Other relevant background factors.

IV. After increasing the gross income of the parent failing or refusing to produce evidence of income by an increment not to exceed ten percent (10%) per year for each year since the support order was entered or last modified, the tribunal shall calculate the BCSO using the increased income amount as that parent’s gross income.

V. If the order to be modified is not an income shares order, and the parent who fails or refuses to provide reliable evidence of income was not required to produce evidence of income under the prior order, the tribunal shall determine that parent’s income under the directions of subpart (iv)(I) above.

(III) In either circumstance in subpart (iv)(I) or (II) above, upon motion to the tribunal served upon all interested parties pursuant to the Tennessee Rules of Civil Procedure, the parent may provide the reliable evidence necessary to determine the appropriate amount of support based upon this reliable evidence. Under this circumstance, the parent is not required to demonstrate the existence of a significant variance otherwise required for modification of an order under 1240-02-04-.05. In ruling on a proper motion, the tribunal may modify the amount of current support prospectively.

(IV) Arrearages accrued or retroactive amounts due under an order based upon imputed income shall not be forgiven or modified under this section.

3. Self-Employment Income.

(i) Income from self-employment includes income from, but not limited to, business operations, work as an independent contractor or consultant, sales of goods or services, and rental properties, etc., less ordinary and reasonable expenses necessary to produce such income.

(ii) Ordinary and Reasonable Expenses of Self-Employment Necessary to Produce Income.

(I) Excessive promotional expenses, excessive travel expenses, excessive car expenses or excessive personal expenses, or depreciation on equipment, the cost of operation of home offices, etc., shall not be considered reasonable expenses.

(II) Amounts allowed by the Internal Revenue Service for accelerated depreciation or investment tax credits shall not be considered reasonable expenses.

4. Fringe Benefits.

(i) Fringe benefits for inclusion as income or “in-kind” remuneration received by a parent in the course of employment, or operation of a trade or business, shall be counted as income if they reduce personal living expenses.

(ii) Such fringe benefits might include, but are not limited to, company car, housing, or room and board.

(iii) Basic Allowance for Housing (BAH), Basic Allowance for Subsistence (BAS), and Variable Housing Allowances (VHA) for service members are considered income for the purposes of determining child support.

(iv) Fringe benefits do not include employee benefits that are typically added to the salary, wage, or other compensation that a parent may receive as a standard added benefit (e.g., employer-paid portions of health insurance premiums or employer contributions to a retirement or pension plan).

5. Federal Benefits.

(i) Federal benefits, including veteran’s benefits and Social Security Title II benefits, received by a child shall be included as income to the parent on whose account the child’s benefit is drawn and applied against the support obligation ordered to be paid by that parent. The child’s benefit is only considered when it springs from the parent’s account. For example, if a child is drawing benefits from the Mother’s Social Security account, the amount of the child’s benefit is added to the Mother’s income, and the amount of the child’s benefit is subtracted from the Mother’s child support obligation. If the child’s benefit is drawn from the child ’s own disability, the child’s benefit is not added to either parent’s income and not deducted from either parent’s obligation.

(ii) Child Support Greater Than the Benefit.

If after calculating the parent’s gross income as defined in 1240-02-04- .04(3), including the countable federal benefits in subpart 5.(i) above, and after calculating the amount of the child support obligation using the Child Support Worksheet, the amount of the child support award due from the parent on whose account the child is receiving benefits is greater than the benefit paid on behalf of the child on that parent’s account, then that parent shall be required to pay the amount exceeding the benefit as part of the child support award in the case.

(iii) Child Support Equal to or Less Than the Benefit.

(I) If after calculating the parent’s gross income as defined in 1240-02- 04-.04(3), including the countable benefit paid for the child, referred to in subpart 5.(i) above, and after calculating the amount of the child support obligation using the Child Support Worksheet, the amount of the child support award due from the parent on whose account the child is receiving benefits is less than or equal to the benefit paid to the caretaker on behalf of the child on that parent’s account, the child support obligation of that parent is met and no additional child support amount must be paid by that parent.

(II) Any benefit amounts as determined by the Veteran Affairs Department or the Social Security Administration and sent to the caretaker by either agency for the child’s benefit which are greater than the support ordered by the tribunal shall be retained by the caretaker for the child’s benefit and shall not be applied to prospective support or be used as a reason for decreasing the child support order.

I. This provision is in reference to ongoing monthly, federal benefits and does not pertain to lump sum awards sent directly to the caretaker.

II. In such case as a lump sum award sent directly to a caretaker, if an arrearage exists, said lump sum shall be applied to the arrears balance and shall not be considered a retroactive modification of support.

III. Any lump sum payment over and above the arrears balance shall be retained by the caretaker for the benefit of the minor child and not applied to prospective support.

(iv) The tribunal shall make a written finding in the support order regarding the use of the federal benefit in the calculation of the child support obligation.

(b) Variable income such as commissions, bonuses, overtime pay, dividends, etc. shall be averaged over a reasonable period of time consistent with the circumstances of the case and added to a parent’s fixed salary or wages to determine gross income.

(c) Excluded from gross income are the following:

1. Child support payments received by either parent for the benefit of children of another relationship; or 2. Benefits received from means-tested public assistance programs such as, but not limited to:

(i) Families First, Temporary Assistance for Needy Families (TANF), or similar programs in other states or territories under Title IV-A of the Social Security Act;

(ii) Supplemental Nutrition Assistance Program (SNAP), also known as Food Stamps, or the value of food assistance provided by way of electronic benefits transfer procedures by the Food Stamp agency;

(iii) Supplemental Security Income (SSI) received under Title XVI of the Social Security Act;

(iv) Benefits received under 42 U.S.C. § 402(d) for disabled adult children of deceased disabled workers; and (v) Low Income Heating and Energy Assistance Program (LIHEAP) payments.

3. The child’s income from any source, including, but not limited to, trust income and Social Security benefits drawn on the child’s disability; and 4. Adoption Assistance subsidy under Tennessee’s Interstate Compact on Adoption Assistance, found at T.C.A. §§ 36-1-201 et seq., or another state’s adoption assistance subsidy which is based on the Adoption Assistance and Child Welfare Act (42 U.S.C. § 670 et seq.).

(d) Under no circumstance shall the tribunal fail to order a basic support obligation if the parent has non-exempt gross income. See Rule 1240-02-04-.03(4)(a)4.

(4) Adjustments to Gross Income for Self-Employed Parents.

(a) The Child Support Schedule includes deductions from a parent’s gross income for the employee’s share of the contributions for the first six and two-tenths percent (6.2%) in Federal Insurance Contributions Act (FICA) and one and forty-five hundredths (1.45%) in Medicare taxes. The full tax rate, fifteen and three-tenths percent (15.3%), is a total of twelve and four-tenths percent (12.4%) for social security (old-age, survivors, and disability insurance) and two and nine-tenths percent (2.9%) for Medicare (hospital insurance). All net earnings of at least four hundred dollars ($400) are subject to the Medicare part. Employers pay one-half of an employee’s FICA and Medicare taxes.

(b) For a self-employed parent who is paying self-employment tax, an amount for FICA — six and two-tenths percent (6.2%) Social Security plus one and forty-five hundredths percent (1.45%) Medicare as of 1991, or any amount subsequently set by federal law as FICA tax — shall be deducted from that parent’s gross income earned from selfemployment, up to the amounts allowed under federal law, and actually paid by the parent.

(c) Social Security tax withholding (FICA) for high-income persons may vary during the year. Six and two-tenths percent (6.2%) is withheld on the first one hundred twentyeight thousand four hundred dollars ($128,400) of gross earnings (for wage earners in 2018). A maximum of seven thousand nine hundred sixty dollars and eighty cents ($7,960.80) of FICA tax will be withheld in a year.

(d) Self-employed persons are required by law to pay the full FICA tax of twelve and four tenths percent (12.4%) up to the gross earnings limit of one hundred twenty-eight thousand four hundred dollars ($128,400) and the full Medicare tax rate of two and nine tenths percent (2.9%) on all earned income. One half of each amount is already accounted for in the BCSO amounts on the Schedule. The additional Medicare Tax of nine tenths percent (0.9%) applies to an individual’s Medicare wages that exceed two hundred thousand dollars ($200,000) per year.

(e) Any self-employment tax paid up to one-half of the maximum amounts due in a year shall be deducted from gross income as part of the calculation of a parent’s Adjusted Gross Income, as indicated in Part II of the CS Worksheet.

(f) When calculating credits for other qualified children under paragraph (5) below, any self-employment tax paid shall also be deducted on the Credit Worksheet from a parent’s gross income for the purposes of calculating a theoretical child support order.

(g) The percentages and dollar amounts established or referenced in this paragraph (4) with respect to the payment of self-employment taxes shall be adjusted by the Department or by the tribunal, as necessary, as relevant changes occur in the federal tax laws.

(5) Adjustments to Gross Income for Qualified Other Children.

(a) In addition to the adjustments to gross income for self-employment tax provided in 1240-02-04-.04(4) above, credits for either parent’s other children, who are qualified under this subparagraph, shall be considered by the tribunal for the purpose of reducing the parent’s gross income. Adjustments are available for a child:

1. For whom the parent is legally responsible; and 2. The parent is actually supporting; and 3. Who is not before the tribunal to set, modify, or enforce support in the case immediately under consideration.

(b) Children for whom support is being determined in the case under consideration, stepchildren, and other minors in the home that the parent has no legal obligation to support shall not be considered in the calculation of this credit.

(c) To consider a parent’s qualified other children for credit, a parent must present documentary evidence of the parent-child relationship to the tribunal. By way of example, and not by limitation, documentary evidence could include a birth certificate showing the child’s name and the parent’s name, or a court order establishing the parent-child relationship.

(d) Use of Credits.

1. Credits against income are available for all of the parent’s other children who meet the qualifications in subparagraph (a) above including, but not limited to: a child being supported in the parent’s home; a child being supported by the parent under a child support order in another case; and/or a child who does not live in the parent’s home and is receiving support from the parent, but not pursuant to a court order.

2. Credits against income for other qualified children are calculated and recorded on the Credit Worksheet and then entered on the Child Support Worksheet for the purpose of reducing the parent’s gross income on the Child Support Worksheet. However, the credit amounts are not subtracted from the parent’s gross income on the Credit Worksheet when calculating a theoretical child support under this paragraph (5).

(e) Calculation of Credit for Qualified Other Children.

1. “In-Home” Children.

(i) To receive a credit against gross income for qualified other children whose primary residence is with the parent seeking credit, but who are not part of the child support order being determined, the parent must establish a legal duty of support and that the child resides with the parent fifty percent (50%) or more of the time.

(I) By way of example, and not by limitation, documents that may be used to establish that the parent and child share the same residence include the child’s school or medical records showing the child’s address and the parent’s utility bills mailed to the same address, court orders reflecting the parent is the primary residential parent or that the parent shares the parenting time of the child 50% of the time.

(II) Children may be deemed to be living in the parent’s household though living away from the parent to attend private school [Kindergarten through grade 12].

(ii) The available credit against gross income for either parent’s qualified “inhome” children is seventy-five percent (75%) of a theoretical support order calculated according to these Guidelines, using the Credit Worksheet, the parent’s gross income less any self-employment taxes paid, the total number of qualified other children living in the parent’s home, and the Schedule.

2. “Not-In-Home” Children.

(i) To receive a credit against gross income for child support provided for qualified other children whose primary residence is not in the home of the parent seeking credit, that is, the child resides with this parent less than fifty percent (50%) of the time, the parent must establish the legal duty of support and provide documented proof of support paid for the other child consistently over a reasonable and extended period of time prior to the initiation of the proceeding that is immediately under consideration by the tribunal, but in any event, such time period shall not be less than twelve (12) months.

(ii) “Documented Proof of Support” includes:

(I) Physical evidence of monetary payments to the child’s caretaker, such as canceled checks or money orders.

(II) Evidence of payment of child support under another child support order, such as a payment history from a tribunal clerk or child support office or from the Department’s internet child support payment history.

(III) Evidence of “in kind” remuneration such as food, clothing, diapers or formula which has been reduced to a monetary amount approved by the court in the qualified other child’s case or affirmed by the receiving parent in the other case.

(iii) The available credit against gross income for either parent’s qualified “notin-home” children is the actual documented monetary support of the qualified other children, averaged to a monthly amount of support paid over the most recent twelve (12) month period up to a maximum of seventy-five percent (75%) of a theoretical support order calculated according to these Guidelines, using the Credit Worksheet, the parent’s gross income less any self-employment taxes paid, the total number of qualified other children living less than fifty percent (50%) of the time in the parent’s home, and the Schedule.

3. The credits allowed pursuant to this subparagraph shall be calculated according to the instructions in this chapter alone, using the Credit Worksheet.

4. The amount of a theoretical order allowed as a credit against gross income under

part 1. or 2. above is subject to the limitation of 1240-02-04-.07(2)(g).

5. An order may be modified to reflect a change in the number of children for whom a parent is legally responsible only upon compliance with the significant variance requirement of 1240-02-04-.05.

(6) The Schedule of Basic Child Support Obligations.

(a) Rule 1240-02-04-.09 contains the CS Schedule which shall be used to determine the combined obligation of both parents for the support of their children based upon their monthly combined AGI and the number of children who are the subject of the child support determination. However, if the obligor’s AGI falls within the shaded area of the CS Schedule, a comparison must be done to determine if the BCSO is computed using only the obligor’s income. The CS Schedule, in chart form, displays the amount of the BCSO prior to adjustments for parenting time and additional expenses and is presumed correct for the combined income of the parents and the number of children for whom support is being determined.

(b) Rounding Rule for Determination of BCSO.

When the combined Adjusted Gross Income falls between amounts shown in the Schedule, round up to the next amount of combined Adjusted Gross Income. The rounded-up number shall be used to determine the BCSO from the CS Schedule for the number of children for whom support is being determined.

(7) Adjustment for Parenting Time.

(a) These Guidelines presume that, in Tennessee, when parents live separately, the children will typically reside primarily with one parent, the PRP, and stay with the other parent, the ARP, a minimum of every other weekend from Friday to Sunday, two (2) weeks in the summer, and two (2) weeks during holidays throughout the year, for a total of eighty (80) days per year. The Guidelines also recognize that some families may have different parenting situations and, thus, allow for an adjustment in the child support obligation, as appropriate, in compliance with the criteria specified below.

(b) Parenting Time.

1. The adjustment is based upon the ARP’s number of days of parenting time with the children in the case under consideration.

2. Fifty-Fifty / Equal-Parenting Situations.

In this situation, there is no PRP and/or ARP designation based upon parenting time. Accordingly, the PRP / ARP designation will be made as follows, solely for the purpose of calculating the parenting time adjustment:

(i) Fifty-Fifty / Equal-Parenting.

The Father or Parent 2 is deemed the ARP when calculating the parenting time adjustment solely for an equal parenting situation.

(ii) Fifty-Fifty / Equal-Parenting Combined with Split Parenting.

The Father or Parent 2 is deemed the ARP when calculating the parenting time adjustment for an equal parenting situation in conjunction with a split parenting situation.

(iii) Fifty-Fifty / Equal-Parenting Combined with Standard Parenting.

The ARP in the standard parenting situation will also be the ARP in the equal parenting situation when calculating the parenting time adjustment for an equal parenting situation in conjunction with a standard parenting situation.

3. No more than one (1) day of credit for parenting time can be taken in any twentyfour (24) hour period, i.e., only one parent can take credit for parenting time in one twenty-four (24) hour period. Except in extraordinary circumstances, as determined by the tribunal, partial days of parenting time that are not consistent with this definition shall not be considered a “day” under these Guidelines.

Routinely incurred parenting time of shorter duration may be cumulated as a single day for parenting time purposes.

4. Average Parenting Time.

If there are multiple children for whom support is being calculated, and the ARP is spending a different amount of time with each child, then an annual average of parenting time with all of the children shall be calculated. For example, if the ARP has sixty-seven (67) days of parenting time per year with Child A, eighty-four (84) days of parenting time per year with Child B, and one hundred thirty-two (132) days of parenting time per year with Child C, then the Parenting Time Adjustment would be calculated based upon ninety-four (94) days of parenting time [67 + 84 + 132 = 283 / 3 = 94]. The Income Shares Worksheet formula will automatically calculate this average by using the actual number of days spent with each child.

For this purpose, standard rounding rules apply.

(c) In cases of split parenting, both parents are eligible for a parenting time adjustment for the child(ren) for whom the parent is the ARP unless a SSR is applied.

(d) In a non-parent caretaker situation, neither parent is eligible for a parenting time adjustment. However, a SSR may be applicable.

(e) Parenting time adjustments are not mandatory, but presumptive. The presumption may be rebutted in a case where the circumstances indicate the adjustment is not in the best interest of the child.

(f) Due to the method for calculation of the adjustment, it is anticipated, in a case where the PRP has greater income than the ARP and the ARP has a high level of parenting time with the child, that support may be due from the PRP to the ARP to assist with the expenses of the children during the times spent with the ARP. In this circumstance, a support payment from the PRP to the ARP is allowed. The SSR is also considered in this circumstance.

(g) The automated child support worksheet provided by the Department will automatically calculate all parenting time adjustments when the user enters the requested information. No manual calculation is required, however, instructions for manual calculation are provided in these rules. See: Rule 1240-02-04-.08(2)(c)5.

(h) Reduction in Child Support Obligation for Additional Parenting Time.

1. If the ARP spends ninety-two (92) or more days per calendar year with a child, or an average of ninety-two (92) days with all applicable children, an assumption is made that the ARP is making greater expenditures on the child during his/her parenting time for transferred costs such as food and/or is making greater expenditures for child-rearing expenses for items that are duplicated between the two (2) households (e.g., housing or clothing). A reduction to the ARP’s child support obligation may be made to account for these transferred and duplicated expenses, as set forth in this chapter. The amount of the additional expenses is determined by using a mathematical formula that changes according to the number of days the ARP spends with the child and the amount of the BCSO. The mathematical formula is called a “variable multiplier.”

2. Upon reaching the threshold of ninety-two (92) days, the variable multiplier shall be applied to the BCSO, which will increase the amount of the BCSO in relation to the ARP’s parenting time, in order to account for the child-rearing expenses incurred by the ARP during parenting time. These additional expenses are divided between the parents according to each parent’s PI. The PRP’s share of these additional expenses represents an amount owed by the PRP to the ARP and is applied as a credit against the ARP’s obligation to the PRP.

3. The presumption that more parenting time by the ARP results in greater expenditures which should result in a reduction to the ARP’s support obligation may be rebutted by evidence.

4. Calculation of the Parenting Time Credit.

(i) First, the variable multiplier is determined by multiplying a standard per diem of .0109589 [2 / 182.5] by the ARP’s parenting time determined pursuant to paragraph (7)(b) above. For example, the 94 days of parenting time calculated in the example from part (7)(b)4. above is multiplied by .0109589, resulting in a variable multiplier of 1.0301366 [94 x .0109589].

(ii) Second, the variable multiplier calculated in subpart (i) above is applied to the amount of the parties’ total BCSO, which results in an adjusted BCSO.

For example, application of the variable multiplier determined above for ninety-four (94) days of parenting time to a BCSO of one thousand dollars ($1000) would result in an adjusted BCSO of one thousand thirty dollars and fourteen cents ($1030.14) [$1000 x 1.0301366].

(iii) Third, the amount of the BCSO is subtracted from the adjusted BCSO. The difference is the child-rearing expenses associated with the ARP’s additional parenting time. In the example above, the additional childrearing expenses associated with the ninety-four (94) days of parenting time would be thirty dollars and fourteen cents ($30.14) [$1030.14 - $1000].

(iv) The additional child-rearing expenses determined in subpart (iii) above are pro-rated between the parents according to each parent’s percentage of income (PI). The PRP’s share of these additional expenses is applied as an adjustment against the ARP’s pro-rata share of the original BCSO. For instance, if the PRP’s PI is forty percent (40%), the PRP’s share of the additional expenses in the example above would be twelve dollars and six cents ($12.06) [$30.14 x 40%]. The twelve dollars and six cents ($12.06) is applied as a credit against the ARP’s share of the BCSO, resulting in a child support obligation for the ARP of five hundred eighty-seven dollars and ninety-four cents ($587.94) [$1000 x 60% = $600 - $12.06].

(v) Once the BCSO is reduced for parenting time, only one parent will owe a BCSO. Once it is determined who that one parent is, that parent’s AGI and number of children for whom support is being determined shall be checked against the “shaded area” to determine if the SSR applies to that parent. If it does, the BCSO shall be the lower of the amount from (iv) or the shaded area based on the obligor’s AGI and number of children for whom support is being determined. In the example above, (iv) indicates that the ARP’s share of the BCSO is five hundred eighty-seven dollars and ninety-four cents ($587.94). If the ARP’s income is four thousand eight hundred ninety dollars ($4,890) per month, the ARP’s income does not fall into the shaded area and no additional adjustment is made. If the circumstance is as described in (f) where the PRP owes the ARP, which can result from the calculation if the PRP has greater income than the ARP and the ARP has a high level of parenting time with the child, then the BCSO shall be the lower of the PRP’s BCSO from (iv) and the PRP’s AGI using the shaded area and the number of children for whom support is being determined.

(i) Increase in Child Support Obligation for Less Parenting Time.

1. If the ARP spends sixty-eight (68) or fewer days per calendar year with the child(ren) in the case, or an average of sixty-eight (68) days with all applicable children, the ARP’s child support obligation may be increased for the lack of parenting time. The first step in calculating the increase is to determine the number of days fewer than sixty-nine (69) the ARP spends with the child and then divide this number of days by three hundred sixty-five (365). For example, if the ARP has sixty-eight (68) days of parenting time, the percentage of days is 0.002739726 [69 - 68 = 1; 1/365].

2. The second step i s to multiply the percentage of days by the ARP’s share of the BCSO. For example, if the ARP’s share of the BCSO is one thousand two hundred dollars ($1,200), and the parenting time is sixty-eight (68) days, the increased share of support is three dollars and twenty-nine cents ($3.29) [0.002739726 x $1,200 = $3.29]. If the ARP’s share of the BCSO is adjusted for the SSR, the percentage of days would also be multiplied to the ARP’s share of the BCSO 3. The increased share of support is added to the ARP’s share of the BCSO resulting in the adjusted BCSO. Continuing the example from above, the ARP’s increased BCSO is one thousand two hundred three dollars and twenty-nine cents ($1,203.29). [$1,200 + $3.29]

3. The presumption that less parenting time by the ARP should result in an increase to the ARP’s support obligation may be rebutted by evidence.

(i) In an action to modify an existing child support order to reflect a change in parenting time, the parent seeking the credit must prove a significant variance pursuant to 1240-02-04-.05 when comparing the current order to the proposed order with application of the parenting time adjustment.

(8) Adjustments for Additional Expenses.

(a) The CS Schedule does not include the cost of the child’s health insurance premium, uninsured medical expenses, or work-related childcare costs.

1. The additional expenses for the child’s health/dental insurance premium, recurring uninsured medical expenses, and work-related childcare shall be included in the calculations to determine child support.

2. The amount of the cost for the child’s health insurance premium, recurring uninsured medical expenses, and work-rel ated childcare shall be determined as indicated below in subparagraphs (b), (c), and (d) and added to the BCSO as “Additional Expenses” or “add-ons.”

3. The total amount of the cost for the child’s health insurance premium, recurring uninsured medical expenses, and work-related childcare shall be divided between the parents pro rata based upon the PI of each parent to determine the total Presumptive Child Support Order and shall be included in the written order of the tribunal together with the amount of the BCSO.

4. If the health insurance premium and/or the work-related child care is/are being paid by the ARP, the payment shall be reflected in the child support order to identify the amount and nature of the obligation, but shall not be included in the ARP’s income assignment. The order shall require that these expenses continue to be paid by the ARP in the same manner as they were being paid prior to the instant action.

5. Amounts paid by a non-parent caretaker for either child care or health care expenses shall be included in the calculation for payment by the parents.

6. The amount of the health, vision, and dental care insurance premium paid for the benefit of the child(ren), such as a parent or step-parent who carries coverage for the child(ren), may be included and credited in the worksheet under that respective parent’s column.

(b) Health Insurance Premiums.

1. If Health Insurance that provides for the health care needs of the child can be obtained by a parent at reasonable cost, then an amount to cover the cost of the premium(s) shall be added to the BCSO as indicated above in subparagraph (a).

2. In determining the amount to be added to the order for this cost, only the amount of the insurance cost attributable to the children who are the subject of the support order shall be included.

3. If coverage is applicable to other persons and the amount of the health insurance premium attributable to the child who is the subject of the current action for support is not available to be verified, the total cost to the parent paying the premium shall be pro-rated by the number of persons covered so that only the cost attributable to the children who are the subject of the order under consideration is included. Enter the monthly cost on the Child Support Worksheet in the column of the parent paying the premium. If Health Insurance coverage is provided for the children at issue at no additional cost to the parent, no amount for this expense should be included on the Worksheet.

(c) Work-Related Childcare Expenses.

1. Childcare expenses necessary for either parent’s employment, education, or vocational training that are determined by the tribunal to be appropriate, and that are appropriate to the parents’ financial abilities and to the lifestyle of the child if the parents and child were living together, shall be averaged for a monthly amount and entered on the Worksheet in the column of the parent initially paying the expense.

2. If a childcare subsidy is being provided pursuant to a means-tested public assistance program, only the amount of the childcare expense actually paid by either parent or the non-parent caretaker shall be included in the calculation.

3. If either parent or the non-parent caretaker is the provider of childcare services to the child for whom support is being determined, the value of those services shall not be added to the basic child support obligation when calculating the support award.

4. The childcare expense shall be paid to the childcare provider by the parent incurring the expense. The other parent’s pro rata share of the expense shall be included in the calculation that results in the child support order.

(d) Uninsured Medical Expenses.

1. The child’s uninsured medical expenses including, but not limited to, deductibles, co-pays, dental, orthodontic, counseling, psychiatric, vision, hearing and other medical needs not covered by insurance are not included in the basic child support schedule and shall be the financial responsibility of both parents.

2. If uninsured medical expenses are routinely incurred so that a specific monthly amount can be reasonably established, a specific dollar amount shall be added to the basic child support obligation to cover those established expenses. These expenses shall be pro-rated between the parents according to each parent’s percentage of income.

3. If uninsured medical expenses are not routinely incurred so that a specific monthly amount cannot be reasonably established, a specific dollar amount shall not be added to the basic child support obligation but the court order shall specify that these expenses shall be paid by the parents as incurred according to each parent’s percentage of income unless some other division is specifically ordered by the tribunal.

4. If a parent fails to pay his/her pro rata share of the child’s uninsured medical expenses, as specified in the child support order, within a reasonable time after receipt of evidence documenting the uninsured portion of the expense, the other parent, the non-parent caretaker, the State, or its IV-D contractors may enforce payment of the expense by any legal action permitted by law.

5. Every child support order shall specify how the parents are to pay both known and unknown medical expenses as they are incurred.

(e) Calculations for Additional Expenses.

1. The amounts paid by each parent and by a non-parent caretaker, where applicable, for the child’s health insurance premium, recurring uninsured medical expenses, and/or work-related childcare costs shall be entered on the Child Support Worksheet to be used in calculating the total additional expenses.

2. Each parent’s pro-rata share of all additional expenses paid by the other parent and/or non-parent caretaker shall be calculated using each parent’s PI.

(9) Adjusted Support Obligation (ASO).

(a) In standard parenting situations, the ASO is the parent’s share of the BCSO owed to the other parent or non-parent caretaker plus the parent’s share of any additional expense paid by the other parent and/or non-parent caretaker for the child’s health insurance premium, recurring uninsured medical expenses, and work-rel ated childcare; or (b) In split parenting situations, the ASO is each parent’s BCSO for the children in the other parent’s primary care plus each parent’s share of any additional expense paid by the other parent for the children’s health insurance premium, recurring uninsured medical expenses, and work-related childcare.

(c) If a parenting time adjustment has been calculated in any case, that parent’s share of the BCSO is adjusted as specified in 1240-02-04-.04(7), then each parent’s ASO is calculated as indicated above in either subparagraph (a) or (b).

(d) In standard parenting situations, after consideration of additional expenses, the PRP’s ASO may exceed the ARP’s ASO. In such circumstances, it is permissible for a child support obligation to be paid by the PRP to the ARP. [See also 1240-02-04-.04(7)(h)]

(10) No adjustment to gross income shall be made in the calculation of a child support obligation which seriously impairs the ability of the PRP in the case under consideration to maintain minimally adequate housing, food, and clothing for the children being supported by the order and/or to provide other basic necessities, as determined by the court.

(11) Presumptive Child Support Order.

(a) The Presumptive Child Support Order (PCSO) is the result of the calculations under these Guidelines, rounded to the nearest whole dollar, and is the amount of support for which the obligor is responsible prior to consideration of any deviations.

(b) Deviations from this amount must be supported by written findings in the support order, as required by 1240-02-04-.07(1).

(c) The completed Worksheet(s) must be maintained as part of the official record either by filing them as exhibits in the tribunal’s file or as attachments to the order except when the child is placed in State custody and the initial child support order is set by the Department of Children’s Services without the Worksheet.

(d) Payments of child support shall be ordered to be paid in a specific dollar amount on a weekly, biweekly (every two weeks), semimonthly, or monthly basis.

(12) Minimum Child Support Order.

(a) It is the obligation of all parents to contribute to the support of their children with a minimum child support order of at least one hundred ($100) per month unless as indicated in parts (b) and (d) below.

(b) This provision does not apply:

1. If the obligor’s only source of income is Supplemental Security Income (SSI);

2. When the federal benefit for a child results in a calculation of support owed to be less than the minimum amount; or 3. When the Parenting Time Adjustment results in an amount less than the minimum child support order.

(c) The Tribunal shall make a written finding upon evidence submitted and taking all circumstances into consideration to set the current obligation at the minimum order amount.

(d) In its discretion, the Court may deviate from the minimum child support order by either setting a higher or lower support order.

History

• Authority: T.C.A. §§ 4-5-202, 36-5-101(a), 36-5-101(a)(1), 36-5-101(e), 36-5-103(f), 71-1-105(12), (15), and (16), and 71-1-132; 42 U.S.C. §§ 652 and 667; and 45 C.F.R. §§ 302.56, 303.8 and 303.31.
• Administrative History: New rule filed August 25, 1989; effective October 13, 1989. Amendment filed September 29, 1994; effective December 14, 1994. Amendment filed July 22, 1997; effective October 5, 1997. Amendment filed September 29, 2003; effective December 13, 2003. Repeal and new rule filed November 4, 2004; effective January 18, 2005. Emergency rule filed March 3, 2005; effective through August 15, 2005. Amendment filed June 1, 2005; effective August 15, 2005. Repeal and new rule filed April 6, 2006; effective June 20, 2006. Stay of effective date of rule filed April 19, 2006; new effective date of rule June 26, 2006. On July 10, 2008, the Government Operations Committee stayed amendments fil ed May 8, 2008; to be effective July 22, 2008; new effective date August 15, 2008. Amendments filed February 10, 2020; effective May 10, 2020.

Tenn. Comp. R. & Regs. 1240-02-04-.05 MODIFICATION OF CHILD SUPPORT ORDERS

(1) All modifications shall be calculated under the Income Shares Guidelines.

(2) Significant Variance Required for Modification of Order.

(a) Unless a significant variance exists, as defined in this section, a child support order is not eligible for modification; provided, however, the necessity of providing for the child’s health care needs shall be a basis for modification regardless of whether a modification in the amount of child support is warranted by other criteria.

(b) A significant variance is defined as at least fifteen percent (15%) difference in the current support obligation and the proposed support obligation.

(c) For all orders modified May 10, 2020 through November 6, 2020, for the case to be modified per the current Guidelines, there must be a change of circumstances, such as income or number of children to support, in addition to at least a fifteen percent (15%) change between the amount of the current support order (not including any deviation amount) and the amount of the proposed presumptive support order.

(d) For all orders modified on or after November 7, 2020, for the case to be modified per the current Guidelines, there must be a at least a fifteen percent (15%) change between the amount of the current support order (not including any deviation amount) and the amount of the proposed presumptive support order.

(3) Within fifteen (15) business days of when the Title IV-D agency learns that the obligor will be incarcerated for more than one hundred and eighty (180) calendar days, a notice may be sent to both parties informing them of the right to request the State to review and, if appropriate, adjust the order consistent with this section.

(4) To determine if a modification is possible, a child support order shall first be calculated on the Child Support Worksheet using current evidence of the parties’ circumstances. If the current child support order was calculated using the flat percentage guidelines, compare the existing ordered amount of current child support to the proposed amount of the ARP’s pro-rata share of the BCSO. If the current child support order was calculated using the Income Shares Guidelines, compare the PCSO amounts in the current and proposed orders. Do not include the amount of any previously ordered deviations or proposed deviations in the comparison. If a significant variance exists between the two amounts, such a variance would justify the modification of a child support order unless, in situations where a downward modification is sought, the obligor is willfully and voluntarily unemployed or underemployed, or except as otherwise restricted by paragraph (5) below or 1240-02-04-.04(10) above.

(5) Upon a demonstration of a significant variance, the tribunal shall increase or decrease the support order as appropriate in accordance with these Guidelines unless the significant variance only exists due to a previous decision of the tribunal to deviate from the Guidelines and the circumstances that caused the deviation have not changed. If the circumstances that resulted in the deviation have not changed, but there exist other circumstances, such as an increase or decrease in income, that would lead to a significant variance between the amount of the current order, excluding the deviation, and the amount of the proposed order, then the order may be modified.

(6) Minimum Child Support Order.

(a) It is the obligation of all parents to contribute to the support of their children with a minimum child support order of at least one hundred ($100) per month unless as indicated in parts (b) and (d) below.

(b) This provision does not apply:

1. If the obligor’s only source of income is Supplemental Security Income (SSI);

2. When the federal benefit for a child results in a calculation of support owed to be less than the minimum amount; or 3. When the Parenting Time Adjustment results in an amount less than the minimum child support order.

(c) The Tribunal shall make a written finding upon evidence submitted and taking all circumstances into consideration to set the current obligation at the minimum order amount.

(d) In its discretion, the Court may deviate from the minimum child support order by either setting a higher or lower support order.

(7) An order may be modified to reflect a change in the number of children for whom a parent is legally responsible, a Parenting Time Adjustment, and Work-Related Childcare only upon compliance with the significant variance requirement specified in Rule 1240-02-04-.05.

(8) No ordered child support is subject to modification as to any time period or any amounts due prior to the date that an action for modification is filed and notice of the action has been mailed to the last known address of the opposing parties. Any payment or installment of support under any child support order on or after the date it is due is a judgment by operation of law with the full force, effect, and attributes of a judgment, including the ability to be enforced, and is entitled as a judgment to full faith and credit. This provision applies to all child support orders issued in all Tennessee courts, including but not limited to circuit, chancery, and juvenile courts and all other tribunals with jurisdiction to modify child support, whether the order originated under an action taken by the authority of Tennessee Code Annotated Titles 36 or 37, or the equivalent law in any other state. When a lump sum award of a federal benefit is sent directly to a caretaker, if an arrearage exists, said lump sum shall be applied to the arrears balance and shall not be considered a retroactive modification of support.

History

• Authority: T.C.A. §§ 4-5-202, 36-5-101(a)(1), 36-5-101(e), 36-5-103(f), 37-1-151, 71-1-105(12), (15), and (16), and 71-1-132; 42 U.S.C. § 666-667; and 45 C.F.R. §§ 302.56 and 303.8.
• Administrative History: Original rule filed November 4, 2004; effective January 18, 2005. Emergency rule filed March 3, 2005; effective through August 15, 2005. Amendment filed June 1, 2005; effective August 15, 2005. Emergency rule filed October 14, 2005; effective through March 28, 2006. Amendment filed January 6, 2006; effective March 22, 2006. Repeal and new rule filed April 6, 2006; effective June 20, 2006. Stay of effective date of rule filed April 19, 2006; new effective date of rule June 26, 2006. On July 10, 2008, the Government Operations Committee stayed amendments filed May 8, 2008; to be effective July 22, 2008; new effective date August 15, 2008. Amendments filed February 10, 2020; effective May 10, 2020.

Tenn. Comp. R. & Regs. 1240-02-04-.09 CHILD SUPPORT SCHEDULE

Tennessee Schedule of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 150-950.00 100 100 100 100 100 1000.00 100 100 107 119 131 1050.00 100 127 142 154 166 1100.00 135 162 177 189 201 1150.00 170 197 212 224 236 1200.00 205 232 247 259 271 1250.00 240 267 282 294 306 1300.00 275 302 317 329 341 1350.00 295 337 352 364 376 1400.00 305 372 387 399 411 1450.00 315 407 422 434 446 1500.00 325 442 457 469 481 1550.00 335 477 492 504 516 1600.00 345 487 527 539 551 1650.00 355 500 562 574 586 1700.00 365 514 597 609 621 1750.00 375 528 612 644 656 1800.00 384 542 628 679 691 1850.00 394 555 644 714 726 1900.00 403 568 657 733 761 1950.00 412 580 671 748 796 2000.00 421 592 685 764 831 2050.00 430 604 699 779 857 2100.00 439 616 713 795 874 2150.00 448 628 727 810 891 2200.00 457 641 741 826 908 2250.00 466 653 754 841 925 2300.00 475 665 768 857 942 2350.00 484 677 782 872 959 2400.00 493 689 796 887 976 2450.00 501 701 809 902 992 2500.00 510 712 821 916 1007 2550.00 518 724 834 930 1023 2600.00 527 735 847 945 1039 2650.00 536 747 860 959 1055 2700.00 544 758 873 973 1070 Tennessee Schedule Of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 2750.00 553 770 886 987 1086 2800.00 561 781 898 1002 1102 2850.00 569 792 911 1015 1117 2900.00 577 802 922 1028 1130 2950.00 584 812 933 1040 1144 3000.00 592 822 945 1053 1159 3050.00 600 833 957 1067 1174 3100.00 608 844 970 1081 1190 3150.00 616 855 982 1095 1205 3200.00 624 866 995 1109 1220 3250.00 632 877 1007 1123 1236 3300.00 640 888 1020 1137 1251 3350.00 648 899 1032 1151 1266 3400.00 656 910 1045 1165 1282 3450.00 664 921 1058 1179 1297 3500.00 672 932 1070 1193 1312 3550.00 680 943 1083 1207 1328 3600.00 688 954 1095 1221 1343 3650.00 695 964 1106 1233 1356 3700.00 702 973 1116 1244 1368 3750.00 709 982 1126 1255 1381 3800.00 715 991 1136 1266 1393 3850.00 722 1000 1145 1277 1405 3900.00 729 1009 1155 1288 1417 3950.00 735 1018 1165 1299 1429 4000.00 742 1027 1175 1310 1441 4050.00 749 1036 1185 1322 1454 4100.00 756 1045 1195 1333 1466 4150.00 762 1054 1205 1344 1478 4200.00 769 1063 1215 1355 1490 4250.00 776 1072 1225 1366 1502 4300.00 779 1076 1228 1370 1507 4350.00 782 1079 1231 1372 1510 4400.00 785 1082 1233 1375 1512 4450.00 788 1085 1235 1377 1515 4500.00 791 1088 1238 1380 1518 Tennessee Schedule Of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 4550.00 794 1091 1240 1383 1521 4600.00 797 1094 1242 1385 1524 4650.00 800 1097 1245 1388 1527 4700.00 803 1100 1247 1390 1529 4750.00 806 1104 1249 1393 1532 4800.00 809 1107 1252 1395 1535 4850.00 812 1110 1254 1398 1538 4900.00 815 1113 1256 1401 1541 4950.00 819 1117 1261 1406 1546 5000.00 823 1122 1266 1411 1552 5050.00 826 1126 1270 1417 1558 5100.00 830 1131 1275 1422 1564 5150.00 834 1135 1280 1427 1570 5200.00 838 1140 1285 1432 1576 5250.00 841 1145 1290 1438 1582 5300.00 845 1149 1294 1443 1587 5350.00 849 1154 1299 1448 1593 5400.00 853 1158 1304 1454 1599 5450.00 856 1163 1309 1459 1605 5500.00 860 1167 1313 1464 1611 5550.00 864 1172 1318 1470 1617 5600.00 868 1177 1324 1476 1623 5650.00 872 1182 1329 1482 1630 5700.00 876 1187 1334 1488 1636 5750.00 880 1192 1339 1493 1643 5800.00 884 1197 1345 1499 1649 5850.00 888 1201 1350 1505 1656 5900.00 892 1206 1355 1511 1662 5950.00 896 1211 1361 1517 1669 6000.00 900 1216 1366 1523 1675 6050.00 904 1221 1371 1528 1681 6100.00 907 1225 1376 1534 1687 6150.00 911 1230 1381 1540 1694 6200.00 915 1235 1386 1545 1700 6250.00 919 1239 1391 1551 1706 6300.00 923 1244 1396 1557 1712 6350.00 926 1249 1401 1562 1718 6400.00 930 1254 1406 1568 1725 Tennessee Schedule Of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 6450.00 934 1258 1411 1573 1731 6500.00 938 1263 1416 1579 1737 6550.00 941 1267 1420 1583 1742 6600.00 942 1268 1421 1584 1743 6650.00 943 1269 1422 1585 1744 6700.00 944 1270 1423 1586 1745 6750.00 945 1271 1424 1587 1746 6800.00 946 1272 1424 1588 1747 6850.00 947 1273 1425 1589 1748 6900.00 948 1274 1426 1590 1749 6950.00 949 1275 1427 1591 1750 7000.00 950 1276 1428 1592 1751 7050.00 951 1277 1429 1593 1752 7100.00 952 1278 1430 1594 1753 7150.00 953 1279 1430 1595 1754 7200.00 954 1280 1431 1596 1755 7250.00 955 1281 1432 1597 1757 7300.00 956 1282 1433 1598 1758 7350.00 957 1283 1434 1599 1759 7400.00 958 1284 1435 1600 1760 7450.00 959 1285 1436 1601 1761 7500.00 960 1286 1437 1602 1762 7550.00 961 1288 1438 1603 1763 7600.00 962 1289 1439 1604 1765 7650.00 963 1290 1440 1605 1766 7700.00 964 1291 1441 1606 1767 7750.00 965 1292 1442 1607 1768 7800.00 967 1293 1442 1608 1769 7850.00 969 1297 1446 1613 1774 7900.00 974 1304 1454 1621 1783 7950.00 979 1310 1461 1629 1792 8000.00 984 1317 1469 1637 1801 8050.00 990 1324 1476 1646 1810 8100.00 995 1331 1483 1654 1819 8150.00 1000 1337 1491 1662 1829 8200.00 1005 1344 1498 1671 1838 8250.00 1010 1351 1506 1679 1847 8300.00 1015 1358 1513 1687 1856 Tennessee Schedule of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 8350.00 1020 1364 1521 1695 1865 8400.00 1025 1371 1528 1704 1874 8450.00 1030 1378 1535 1712 1883 8500.00 1035 1385 1543 1720 1892 8550.00 1040 1391 1550 1728 1901 8600.00 1045 1398 1558 1737 1910 8650.00 1050 1405 1565 1745 1920 8700.00 1055 1412 1572 1753 1929 8750.00 1060 1418 1580 1762 1938 8800.00 1065 1425 1587 1770 1947 8850.00 1070 1432 1595 1778 1956 8900.00 1075 1439 1602 1786 1965 8950.00 1080 1445 1610 1795 1974 9000.00 1085 1452 1617 1803 1983 9050.00 1090 1459 1624 1811 1992 9100.00 1094 1464 1629 1817 1998 9150.00 1098 1468 1634 1822 2004 9200.00 1101 1472 1639 1827 2010 9250.00 1105 1477 1643 1832 2016 9300.00 1108 1481 1648 1838 2021 9350.00 1112 1486 1653 1843 2027 9400.00 1115 1490 1657 1848 2033 9450.00 1119 1495 1662 1853 2038 9500.00 1122 1499 1667 1858 2044 9550.00 1126 1504 1671 1863 2050 9600.00 1129 1508 1676 1869 2055 9650.00 1133 1513 1681 1874 2061 9700.00 1136 1517 1685 1879 2067 9750.00 1140 1521 1690 1884 2073 9800.00 1143 1526 1694 1889 2078 9850.00 1147 1530 1699 1894 2084 9900.00 1150 1535 1704 1900 2090 9950.00 1154 1539 1708 1905 2095 10000.00 1158 1544 1713 1910 2101 10050.00 1161 1548 1718 1915 2107 10100.00 1165 1553 1722 1920 2112 10150.00 1168 1557 1727 1926 2118 Tennessee Schedule of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 10200.00 1172 1562 1732 1931 2124 10250.00 1175 1566 1736 1936 2130 10300.00 1179 1570 1741 1941 2135 10350.00 1182 1575 1746 1946 2141 10400.00 1186 1579 1750 1951 2147 10450.00 1189 1584 1755 1957 2152 10500.00 1193 1588 1759 1962 2158 10550.00 1196 1593 1764 1967 2164 10600.00 1200 1597 1769 1972 2169 10650.00 1203 1602 1773 1977 2175 10700.00 1207 1606 1778 1983 2181 10750.00 1210 1610 1783 1988 2187 10800.00 1214 1615 1787 1993 2192 10850.00 1217 1619 1792 1998 2198 10900.00 1221 1624 1797 2003 2204 10950.00 1224 1628 1801 2008 2209 11000.00 1227 1632 1805 2013 2214 11050.00 1230 1636 1809 2018 2219 11100.00 1233 1639 1814 2022 2225 11150.00 1236 1643 1818 2027 2230 11200.00 1239 1647 1822 2032 2235 11250.00 1242 1651 1826 2037 2240 11300.00 1245 1655 1831 2041 2245 11350.00 1248 1659 1835 2046 2251 11400.00 1251 1663 1839 2051 2256 11450.00 1254 1667 1844 2056 2261 11500.00 1257 1671 1848 2060 2266 11550.00 1260 1674 1852 2065 2272 11600.00 1263 1678 1856 2070 2277 11650.00 1266 1682 1861 2075 2282 11700.00 1269 1686 1865 2079 2287 11750.00 1272 1690 1869 2084 2292 11800.00 1275 1694 1873 2089 2298 11850.00 1278 1698 1878 2094 2303 11900.00 1281 1702 1882 2098 2308 11950.00 1284 1706 1886 2103 2313 12000.00 1287 1709 1890 2108 2319 Tennessee Schedule Of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 12050.00 1289 1713 1895 2113 2324 12100.00 1292 1717 1899 2117 2329 12150.00 1295 1721 1903 2122 2334 12200.00 1298 1725 1907 2127 2340 12250.00 1301 1729 1912 2132 2345 12300.00 1304 1733 1916 2136 2350 12350.00 1307 1737 1920 2141 2355 12400.00 1310 1741 1925 2146 2360 12450.00 1313 1744 1929 2151 2366 12500.00 1316 1748 1933 2155 2371 12550.00 1319 1752 1937 2160 2376 12600.00 1322 1756 1942 2165 2381 12650.00 1325 1760 1946 2170 2387 12700.00 1328 1764 1950 2174 2391 12750.00 1331 1767 1954 2178 2396 12800.00 1334 1771 1958 2183 2401 12850.00 1336 1774 1962 2187 2406 12900.00 1339 1778 1966 2192 2411 12950.00 1342 1782 1970 2196 2416 13000.00 1345 1785 1974 2201 2421 13050.00 1347 1789 1978 2205 2425 13100.00 1350 1793 1982 2209 2430 13150.00 1353 1796 1985 2214 2435 13200.00 1356 1800 1989 2218 2440 13250.00 1358 1803 1993 2223 2445 13300.00 1361 1807 1997 2227 2450 13350.00 1364 1811 2001 2231 2455 13400.00 1367 1814 2005 2236 2459 13450.00 1370 1818 2009 2240 2464 13500.00 1372 1821 2013 2245 2469 13550.00 1375 1825 2017 2249 2474 13600.00 1378 1829 2021 2254 2479 13650.00 1381 1832 2025 2258 2484 13700.00 1383 1836 2029 2262 2489 13750.00 1386 1839 2033 2267 2493 13800.00 1388 1842 2036 2270 2497 13850.00 1391 1845 2038 2273 2500 Tennessee Schedule of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 13900.00 1393 1848 2041 2276 2503 13950.00 1395 1850 2044 2279 2506 14000.00 1398 1853 2046 2282 2510 14050.00 1400 1856 2049 2285 2513 14100.00 1402 1858 2052 2288 2516 14150.00 1405 1861 2054 2291 2520 14200.00 1407 1864 2057 2294 2523 14250.00 1409 1867 2060 2297 2526 14300.00 1411 1869 2062 2300 2529 14350.00 1414 1872 2065 2303 2533 14400.00 1416 1875 2068 2306 2536 14450.00 1418 1877 2070 2309 2539 14500.00 1421 1880 2073 2312 2543 14550.00 1423 1883 2076 2315 2546 14600.00 1425 1885 2078 2317 2549 14650.00 1428 1888 2081 2320 2553 14700.00 1430 1891 2084 2323 2556 14750.00 1432 1894 2087 2326 2559 14800.00 1434 1896 2089 2329 2562 14850.00 1437 1899 2092 2332 2566 14900.00 1439 1902 2095 2335 2569 14950.00 1441 1904 2097 2338 2572 15000.00 1444 1907 2100 2341 2576 15050.00 1446 1910 2103 2344 2579 15100.00 1448 1913 2105 2347 2582 15150.00 1451 1915 2108 2350 2585 15200.00 1453 1918 2111 2353 2589 15250.00 1455 1921 2113 2356 2592 15300.00 1457 1923 2116 2359 2595 15350.00 1460 1926 2119 2362 2599 15400.00 1462 1929 2121 2365 2602 15450.00 1464 1932 2124 2368 2605 15500.00 1467 1934 2127 2371 2609 15550.00 1469 1937 2130 2374 2612 15600.00 1471 1940 2132 2377 2615 15650.00 1474 1942 2135 2380 2618 15700.00 1476 1945 2138 2383 2622 Tennessee Schedule Of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 15750.00 1478 1948 2140 2386 2625 15800.00 1480 1950 2143 2389 2628 15850.00 1483 1953 2146 2392 2632 15900.00 1485 1956 2148 2395 2635 15950.00 1487 1959 2151 2398 2638 16000.00 1490 1961 2154 2401 2641 16050.00 1492 1964 2156 2404 2645 16100.00 1494 1967 2159 2407 2648 16150.00 1497 1969 2162 2410 2651 16200.00 1499 1972 2164 2413 2655 16250.00 1501 1975 2167 2416 2658 16300.00 1503 1978 2170 2419 2661 16350.00 1506 1980 2172 2422 2665 16400.00 1508 1983 2175 2425 2668 16450.00 1510 1986 2178 2428 2671 16500.00 1513 1988 2181 2431 2674 16550.00 1515 1991 2183 2434 2678 16600.00 1517 1994 2186 2437 2681 16650.00 1520 1997 2189 2440 2684 16700.00 1522 1999 2191 2443 2688 16750.00 1524 2002 2194 2446 2691 16800.00 1526 2005 2197 2449 2694 16850.00 1529 2007 2199 2452 2697 16900.00 1531 2010 2202 2455 2701 16950.00 1533 2013 2205 2458 2704 17000.00 1536 2015 2207 2461 2707 17050.00 1538 2018 2210 2464 2711 17100.00 1540 2021 2213 2467 2714 17150.00 1543 2024 2215 2470 2717 17200.00 1545 2026 2218 2473 2721 17250.00 1547 2029 2221 2476 2724 17300.00 1550 2032 2223 2479 2727 17350.00 1552 2034 2226 2482 2730 17400.00 1554 2037 2229 2485 2734 17450.00 1556 2040 2232 2488 2737 17500.00 1559 2043 2234 2491 2740 Tennessee Schedule Of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 17550.00 1561 2045 2237 2494 2744 17600.00 1563 2048 2240 2497 2747 17650.00 1566 2051 2242 2500 2750 17700.00 1568 2053 2245 2503 2753 17750.00 1570 2056 2248 2506 2757 17800.00 1573 2059 2250 2509 2760 17850.00 1575 2062 2253 2512 2763 17900.00 1577 2064 2256 2515 2767 17950.00 1579 2067 2258 2518 2770 18000.00 1582 2070 2261 2521 2773 18050.00 1584 2072 2264 2524 2777 18100.00 1586 2075 2266 2527 2780 18150.00 1589 2078 2269 2530 2783 18200.00 1591 2081 2272 2533 2786 18250.00 1593 2083 2275 2536 2790 18300.00 1596 2086 2277 2539 2793 18350.00 1598 2089 2280 2542 2796 18400.00 1600 2091 2283 2545 2800 18450.00 1602 2094 2285 2548 2803 18500.00 1605 2097 2288 2551 2806 18550.00 1607 2099 2291 2554 2809 18600.00 1609 2102 2293 2557 2813 18650.00 1612 2105 2296 2560 2816 18700.00 1614 2108 2299 2563 2819 18750.00 1616 2110 2301 2566 2823 18800.00 1619 2113 2304 2569 2826 18850.00 1621 2116 2307 2572 2829 18900.00 1623 2118 2309 2575 2833 18950.00 1625 2121 2312 2578 2836 19000.00 1628 2124 2315 2581 2839 19050.00 1630 2127 2318 2584 2842 19100.00 1633 2130 2321 2588 2847 19150.00 1637 2134 2324 2592 2851 19200.00 1640 2138 2328 2596 2855 19250.00 1643 2141 2331 2600 2859 19300.00 1646 2145 2335 2603 2864 Tennessee Schedule of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 19350.00 1650 2149 2338 2607 2868 19400.00 1653 2152 2342 2611 2872 19450.00 1656 2156 2345 2615 2877 19500.00 1660 2160 2349 2619 2881 19550.00 1663 2163 2352 2623 2885 19600.00 1666 2167 2356 2627 2889 19650.00 1669 2171 2359 2631 2894 19700.00 1673 2175 2363 2634 2898 19750.00 1676 2178 2366 2638 2902 19800.00 1679 2182 2370 2642 2906 19850.00 1683 2186 2373 2646 2911 19900.00 1686 2189 2377 2650 2915 19950.00 1689 2193 2380 2654 2919 20000.00 1692 2197 2384 2658 2923 20050.00 1696 2200 2387 2662 2928 20100.00 1699 2204 2390 2665 2932 20150.00 1702 2208 2394 2669 2936 20200.00 1705 2211 2397 2673 2940 20250.00 1709 2215 2401 2677 2945 20300.00 1712 2219 2404 2681 2949 20350.00 1715 2223 2408 2685 2953 20400.00 1719 2226 2411 2689 2958 20450.00 1722 2230 2415 2693 2962 20500.00 1725 2234 2418 2696 2966 20550.00 1728 2237 2422 2700 2970 20600.00 1732 2241 2425 2704 2975 20650.00 1735 2245 2429 2708 2979 20700.00 1738 2248 2432 2712 2983 20750.00 1741 2252 2436 2716 2987 20800.00 1745 2256 2439 2720 2992 20850.00 1748 2259 2443 2724 2996 20900.00 1751 2263 2446 2727 3000 20950.00 1755 2267 2450 2731 3004 21000.00 1758 2271 2453 2735 3009 21050.00 1761 2274 2457 2739 3013 21100.00 1764 2278 2460 2743 3017 Tennessee Schedule of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 21150.00 1768 2282 2463 2747 3021 21200.00 1771 2285 2467 2751 3026 21250.00 1774 2289 2470 2755 3030 21300.00 1778 2293 2474 2758 3034 21350.00 1781 2296 2477 2762 3038 21400.00 1784 2300 2481 2766 3043 21450.00 1787 2304 2484 2770 3047 21500.00 1791 2307 2488 2774 3051 21550.00 1794 2311 2491 2778 3056 21600.00 1797 2315 2495 2782 3060 21650.00 1800 2318 2498 2786 3064 21700.00 1804 2322 2502 2789 3068 21750.00 1807 2326 2505 2793 3073 21800.00 1810 2330 2509 2797 3077 21850.00 1814 2333 2512 2801 3081 21900.00 1817 2337 2516 2805 3085 21950.00 1820 2341 2519 2809 3090 22000.00 1823 2344 2523 2813 3094 22050.00 1827 2348 2526 2817 3098 22100.00 1830 2352 2530 2820 3102 22150.00 1833 2355 2533 2824 3107 22200.00 1837 2359 2536 2828 3111 22250.00 1840 2363 2540 2832 3115 22300.00 1843 2366 2543 2836 3119 22350.00 1846 2370 2547 2840 3124 22400.00 1850 2374 2550 2844 3128 22450.00 1853 2378 2554 2848 3132 22500.00 1856 2381 2557 2851 3137 22550.00 1859 2385 2561 2855 3141 22600.00 1863 2389 2564 2859 3145 22650.00 1866 2392 2568 2863 3149 22700.00 1869 2396 2571 2867 3154 22750.00 1873 2400 2575 2871 3158 22800.00 1876 2403 2578 2875 3162 22850.00 1879 2407 2582 2879 3166 22900.00 1882 2411 2585 2882 3171 Tennessee Schedule of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 22950.00 1886 2414 2589 2886 3175 23000.00 1889 2418 2592 2890 3179 23050.00 1892 2422 2596 2894 3183 23100.00 1896 2426 2599 2898 3188 23150.00 1899 2429 2602 2902 3192 23200.00 1902 2433 2606 2906 3196 23250.00 1905 2437 2609 2910 3200 23300.00 1909 2440 2613 2913 3205 23350.00 1912 2444 2616 2917 3209 23400.00 1915 2448 2620 2921 3213 23450.00 1918 2451 2623 2925 3218 23500.00 1922 2455 2627 2929 3222 23550.00 1925 2459 2630 2933 3226 23600.00 1928 2462 2634 2937 3230 23650.00 1932 2466 2637 2941 3235 23700.00 1935 2470 2641 2944 3239 23750.00 1938 2473 2644 2948 3243 23800.00 1941 2477 2648 2952 3247 23850.00 1945 2481 2651 2956 3252 23900.00 1948 2485 2655 2960 3256 23950.00 1951 2488 2658 2964 3260 24000.00 1955 2492 2662 2968 3264 24050.00 1958 2496 2665 2972 3269 24100.00 1961 2499 2669 2975 3273 24150.00 1964 2503 2672 2979 3277 24200.00 1968 2507 2675 2983 3281 24250.00 1971 2510 2679 2987 3286 24300.00 1974 2514 2682 2991 3290 24350.00 1977 2518 2686 2995 3294 24400.00 1981 2521 2689 2999 3299 24450.00 1984 2525 2693 3003 3303 24500.00 1987 2529 2696 3006 3307 24550.00 1991 2533 2700 3010 3311 24600.00 1994 2536 2703 3014 3316 24650.00 1997 2540 2707 3018 3320 24700.00 2000 2544 2710 3022 3324 Tennessee Schedule of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 24750.00 2004 2547 2714 3026 3328 24800.00 2007 2551 2717 3030 3333 24850.00 2010 2555 2721 3034 3337 24900.00 2014 2558 2724 3037 3341 24950.00 2017 2562 2728 3041 3345 25000.00 2020 2566 2731 3045 3350 25050.00 2023 2569 2735 3049 3354 25100.00 2027 2573 2738 3053 3358 25150.00 2030 2577 2742 3057 3362 25200.00 2033 2581 2745 3061 3367 25250.00 2036 2584 2748 3065 3371 25300.00 2040 2588 2752 3068 3375 25350.00 2043 2592 2755 3072 3380 25400.00 2046 2595 2759 3076 3384 25450.00 2050 2599 2762 3080 3388 25500.00 2053 2603 2766 3084 3392 25550.00 2056 2606 2769 3088 3397 25600.00 2059 2610 2773 3092 3401 25650.00 2063 2614 2776 3096 3405 25700.00 2066 2617 2780 3099 3409 25750.00 2069 2621 2783 3103 3414 25800.00 2073 2625 2787 3107 3418 25850.00 2076 2628 2790 3111 3422 25900.00 2079 2632 2794 3115 3426 25950.00 2082 2636 2797 3119 3431 26000.00 2086 2640 2801 3123 3435 26050.00 2089 2643 2804 3127 3439 26100.00 2092 2647 2808 3130 3443 26150.00 2095 2651 2811 3134 3448 26200.00 2099 2654 2814 3138 3452 26250.00 2102 2658 2818 3142 3456 26300.00 2105 2662 2821 3146 3460 26350.00 2109 2665 2825 3150 3465 26400.00 2112 2669 2828 3154 3469 26450.00 2115 2673 2832 3158 3473 26500.00 2118 2676 2835 3161 3478 Tennessee Schedule of Basic Child Support Obligations Monthly Combined Adjusted One Two Three Four Five + Gross Child Children Children Children Children Income Monthly Combined Child Support Obligation 26550.00 2122 2680 2839 3165 3482 26600.00 2125 2684 2842 3169 3486 26650.00 2128 2688 2846 3173 3490 26700.00 2132 2691 2849 3177 3495 26750.00 2135 2695 2853 3181 3499 26800.00 2138 2699 2856 3185 3503 26850.00 2141 2702 2860 3189 3507 26900.00 2145 2706 2863 3192 3512 26950.00 2148 2710 2867 3196 3516 27000.00 2151 2713 2870 3200 3520 27050.00 2154 2717 2874 3204 3524 27100.00 2158 2721 2877 3208 3529 27150.00 2161 2724 2880 3211 3533 27200.00 2164 2728 2884 3215 3537 27250.00 2167 2731 2887 3219 3541 27300.00 2170 2735 2890 3223 3545 27350.00 2173 2738 2894 3227 3549 27400.00 2177 2742 2897 3230 3553 27450.00 2180 2746 2900 3234 3557 27500.00 2183 2749 2904 3238 3562 27550.00 2186 2753 2907 3242 3566 27600.00 2189 2756 2911 3245 3570 27650.00 2193 2760 2914 3249 3574 27700.00 2196 2764 2917 3253 3578 27750.00 2199 2767 2921 3257 3582 27800.00 2202 2771 2924 3260 3586 27850.00 2205 2774 2927 3264 3590 27900.00 2208 2778 2931 3268 3595 27950.00 2212 2781 2934 3272 3599 28000.00 2215 2785 2938 3275 3603 28050.00 2218 2789 2941 3279 3607 28100.00 2221 2792 2944 3283 3611 28150.00 2224 2796 2948 3287 3615 28200.00 2227 2799 2951 3290 3619 28250.00 2231 2803 2954 3294 3624 Tennessee Schedule of Basic Child Support Obligations For combined adjusted gross income in excess of $28,250.00:

One child: 2231 plus 6.81% of all income in excess of 28250 Two children: 2803 plus 7.22% of all income in excess of 28250 Three children: 2954 plus 7.77% of all income in excess of 28250 Four children: 3294 plus 8.05% of all income in excess of 28250 Five + children: 3624 plus 8.66% of all income in excess of 28250

History

• Authority: T.C.A. §§ 4-5-202, 36-5-101(e), 71-1-105(a)(12), (15), and (16), and 71-1-132; 42 U.S.C. § 667; and 45 C.F.R. § 302.56.
• Administrative History: Original rule filed November 4, 2004; effective January 18, 2005. Amendments filed February 10, 2020; effective May 10, 2020. Amendments filed July 2, 2021; to have become effective September 30, 2021. However, a 1-day stay of the effective date of the rules was filed July 28, 2021; new effective date October 1, 2021.

Tenn. Comp. R. & Regs. 1240-02-04-.06 RETROACTIVE SUPPORT

(1) Unless the rebuttal provisions of Tennessee Code Annotated §§ 36-2-311(a)(11) or 36-5- 101(e) have been established by clear and convincing evidence provided to the tribunal, then, in cases in which initial support is being set, a judgment must be entered to include an amount of monthly support due up to the date that an order for current support is entered.

(2) Retroactive child support shall not be awarded for a period of more than five (5) years from the date the action for support is filed unless the court determines, for good cause shown according to Tennessee Code Annotated §§ 36-2-311(a)(11) or 36-5-101(e), that a different award of retroactive child support is in the interest of justice. The burden to show that a longer time period of retroactive support is in the interest of justice is on the PRP.

(3) Deviations from the presumption that a judgment for retroactive support shall be awarded back to the date of birth of the child, the date of the separation of the parties, or the date of abandonment of the child shall be supported by written findings in the tribunal’s order that include:

(a) The reasons the tribunal, pursuant to Tennessee Code Annotated §§ 36-2- 311(a)(11)(A) or 36-5-101(e)(1)(C), deviated from the presumptive amount of child support that would have been paid pursuant to the Guidelines; and (b) The amount of child support that would have been required under the Guidelines if the presumptive amount had not been rebutted; and (c) A written finding by the tribunal that states how, in its determination, 1. Application of the Guidelines would be unjust or inappropriate in the particular case before the tribunal; and 2. The best interests of the child or children who are subject to the support award determination are served by deviation from the presumptive guideline amount.

(4) The retroactive support amount shall be calculated as follows, using the Guidelines in effect at the time of the hearing on retroactive support:

(a) For the monthly BCSO, apply the Guidelines in effect at the time of the order, using the Child Support Worksheet. Use the average monthly income of both parents over the past two (2) years as the amount to be entered for “monthly gross income,” unless the tribunal finds that there is adequate evidence to support a different period of time for use in the calculation and makes such a finding in its order. Do not include any current additional expenses on the retroactive worksheet. Complete the worksheet for the retroactive monthly amount, and multiply the amount shown on the worksheet as the “Final Child Support Order” times the number of months the tribunal has determined to be the appropriate period for retroactive support.

(b) An additional amount may be added onto the judgment for retroactive support calculated above in subparagraph (a) to account for the ARP’s share of amounts paid by the primary residential parent for childcare, the child’s health insurance premium, and uninsured medical expenses over the retroactive period under consideration, and other expenses allowed under Tennessee Code Annotated § 36-2-311.

(c) Add the total amount from subparagraph (a) above to the amount from subparagraph (b) for the total retroactive support due. The retroactive support amount as calculated in subparagraphs (a) and (b) above is presumed to be correct unless rebutted by either party.

(4) A periodic payment amount shall be included in the support order, in addition to any prospective amount of current support, to eliminate the retroactive judgment for support within a reasonable time. Payment of the monthly amount as ordered shall be considered compliance with the retroactive order, however, the department may use additional means of collection to reduce this judgment without regard to the timeliness of the periodic payment.

History

• Authority: T.C.A. §§ 4-5-202, 36-2-311, 36-5-101(a), 36-5-101(e), 71-1-105(12), (15), and (16), and 71- 1-132; 42 U.S.C. § 667; and 45 C.F.R. § 302.56.
• Administrative History: Original rule filed November 4, 2004; effective January 18, 2005. Repeal and new rule filed April 6, 2006; effective June 20, 2006. Stay of effective date of rule filed April 19, 2006; new effective date of rule June 26, 2006. On July 10, 2008, the Government Operations Committee stayed amendments filed May 8, 2008; to be effective July 22, 2008; new effective date August 15, 2008. Amendments filed February 10, 2020; effective May 10, 2020.

Tenn. Comp. R. & Regs. 1240-02-04-.07 DEVIATIONS FROM THE CHILD SUPPORT GUIDELINES

(1) Consideration of the Child’s Best Interests; Written Findings to Support the Deviation.

(a) The amounts of support established by these Guidelines are rebuttable.

(b) The tribunal may order as a deviation an amount of support different from the amount of the presumptive child support order if the deviation complies with the requirements of this paragraph (1) and with this chapter. The amount or method of such deviation is within the discretion of the tribunal provided, however, the tribunal must state in its order the basis for the deviation and the amount the child support order would have been without the deviation. In deviating from the Guidelines, primary consideration must be given to the best interest of the child for whom support under these Guidelines is being determined.

(c) When ordering a deviation from the presumptive amount of child support established by the Guidelines, the tribunal’s order shall contain written findings of fact stating:

1. The reasons for the change or deviation from the presumptive amount of child support that would have been paid pursuant to the Guidelines; and 2. The amount of child support that would have been required under the Guidelines if the presumptive amount had not been rebutted; and 3. How, in its determination, (i) Application of the Guidelines would be unjust or inappropriate in the particular case before the tribunal; and (ii) The best interests of the child for whom support is being determined will be served by deviation from the presumptive guideline amount.

(d) No deviation in the amount of the child support obligation shall be made which seriously impairs the ability of the PRP in the case under consideration to maintain minimally adequate housing, food, and clothing for the children being supported by the order and/or to provide other basic necessities, as determined by the court.

(2) Deviation from the Guidelines may be appropriate for reasons in addition to those previously established in 1240-02-04-.01 – .06 when the tribunal finds it is in the best interest of the child, in accordance with the requirements of paragraph (1) above and the following procedures:

(a) Consideration of Needs of the Children and Income and Expenses of the Parents for Purposes of Deviation.

1. In making its determination regarding a request for deviation pursuant to this

chapter, the tribunal shall consider all available income of the parents as defined by this chapter and shall make a written finding that an amount of child support other than the amount calculated under the Guidelines is reasonably necessary to provide for the needs of the minor child or children for whom support is being determined in the case immediately under consideration.

2. If the circumstances that supported the deviation cease to exist, the child support order may be modified to eliminate the deviation irrespective of compliance with the significant variance requirement of 1240-02-04-.05.

(b) In cases where the child is in the legal custody of the Department of Children’s Services, the child protection or foster care agency of another state or territory, or any other child -caring entity, public or private, the tribunal may consider a deviation from the Presumptive Child Support Order (PCSO) if the deviation will assist in accomplishing a permanency plan or foster care plan for the child that has a goal of returning the child to the parent(s), and the parent’s need to establish an adequate household or to otherwise adequately prepare herself or himself for the return of the child clearly justifies a deviation for this purpose. At the tribunal’s discretion, an initial order may be established by the Department of Children’s Services without the necessity of a Worksheet.

(c) If parenting time-related travel expenses are substantial due to the distance between the parents, the tribunal may order the allocation of such costs by deviation from the PCSO, taking into consideration the circumstances of the respective parties as well as which parent moved and the reason that the move was made.

(d) Extraordinary Expenses.

The Schedule includes average child rearing expenditures for families based upon the parents’ monthly combined income and number of children. Extraordinary expenses are in excess of these average amounts and are highly variable among families. For these reasons, extraordinary expenses are considered on a case-by-case basis in the calculation of support and are added to the basic support award as a deviation so that the actual amount of the expense is considered in the calculation of the final child support order for only those families actually incurring the expense. These expenses may be, but are not required to be, divided between the parents according to each parent’s PI.

1. Extraordinary Educational Expenses.

(i) Extraordinary educational expenses may be added to the presumptive child support as a deviation. Extraordinary educational expenses include, but are not limited to, tuition, room and board, lab fees, books, fees, and other reasonable and necessary expenses associated with special needs education or private elementary and/or secondary schooling that are appropriate to the parents’ financial abilities and to the lifestyle of the child if the parents and child were living together.

(ii) In determining the amount of deviation for extraordinary educational expenses, scholarships, grants, stipends, and other cost-reducing programs received by or on behalf of the child shall be considered.

(iii) If a deviation is allowed for extraordinary educational expenses, a monthly average of these expenses shall be based on evidence of prior or anticipated expenses and entered on the Worksheet in the deviation

section.

2. Special Expenses.

(i) Special expenses incurred for child rearing which can be quantified may be added to the child support obligation as a deviation from the PCSO. Such expenses include, but are not limited to, summer camp, music or art lessons, travel, school-sponsored extra-curricular activities, such as band, clubs, and athletics, and other activities intended to enhance the athletic, social or cultural development of a child, but that are not otherwise required to be used in calculating the child support order as are health insurance premiums and work-related childcare costs.

(ii) A portion of the basic child support obligation is intended to cover average amounts of these special expenses incurred in the rearing of a child. When this category of expenses exceeds seven percent (7%) of the monthly BCSO, then the tribunal shall consider additional amounts of support as a deviation to cover the full amount of these special expenses.

(e) In instances of extreme economic hardship, such as in cases involving extraordinary medical needs not covered by insurance or other extraordinary special needs for the child of a parent’s current family [child living in the home with the parent for whom the parent is legally responsible], deviation from the Guidelines may be considered when the tribunal finds the deviation supported by the criteria of 1240-02-04-.07(1). In such cases, the tribunal must consider all resources available for meeting such needs, including those available from agencies and other adults.

(f) Unless all gross income is exempt, the tribunal must order a basic support obligation.

See Rule 1240-02-04-.03(4)(a)4.

(g) Statutory Limitation on the Child Support Obligation – Rebuttal and Deviation.

1. When the presumptive child support order exceeds the amount found by multiplying a net income of ten thousand dollars ($10,000) by the percentages set out below, pursuant to Tennessee Code Annotated § 36-5-101(e)(1)(B), a PRP seeking support in excess of the amount provided by the applicable percentage must prove by a preponderance of the evidence that more than this amount is reasonably necessary to provide for the needs of the child.

The percentages are:

(i) One child = Twenty-one percent (21%), [or two thousand one hundred dollars ($2100)];

(ii) Two children = Thirty-two percent (32%), [or three thousand two hundred dollars ($3200)];

(iii) Three children = Forty-one percent (41%), [or four thousand one hundred dollars ($4100)];

(iv) Four children = Forty-six percent (46%), [or four thousand six hundred dollars ($4600)]; and (v) Five or more children = Fifty percent (50%), [or five thousand dollars ($5000)]

2. Application of Statutory Threshold to Child Support Determination.

(i) If the PCSO calculated under these rules exceeds the amount specified above for the number of children for whom support is being calculated, then the amount of the PCSO shall be limited to the amount specified above for the number of children for whom support is being calculated, absent the rebuttal provided for in part 1.

(ii) If the PRP proves the need for support in excess of the amount provided for in part 1., the tribunal shall add an appropriate amount to the PCSO of the ARP as a deviation.

(iii) The court may require that sums paid pursuant to this subparagraph be placed in an educational or other trust fund for the benefit of the child.

History

• Authority: T.C.A. §§ 4-5-202, 36-5-101(e), 71-1-105(a)(12) and (15), and 71-1-132, 42 U.S.C. § 667; and 45 C.F.R. § 302.56.
• Administrative History: Original rule filed November 4, 2004; effective January 18, 2005. Repeal and new rule filed April 6, 2006; effective June 20, 2006. Stay of effective date of rule filed April 19, 2006; new effective date of rule June 26, 2006. Amendments filed February 10, 2020; effective May 10, 2020.

Tenn. Comp. R. & Regs. 1240-02-04-.08 WORKSHEETS AND INSTRUCTIONS

(1) General Instructions.

(a) The Child Support Worksheet and Credit Worksheet provided by the Department are mandatory for use in calculating the appropriate child support obligation under these Guidelines. The completed Worksheet(s) must be maintained as part of the official record eit her by filing them as exhibits in the tribunal’s file or as attachments to the order except in cases where the child is in state custody. See 1240-02-04-.03(4)(a)6.

(b) The Child Support Worksheet, Credit Worksheet, Instructions for Worksheets, and Child Support Schedule are part of the Tennessee Child Support Guidelines and can be found on the Department’s website. In the event that the language contained in the Worksheets, Instructions or CS Schedule conflicts in any way with the language of subchapters 1240-02-04-.01 – .07, the language of those subchapters is controlling.

(c) The designations in the Instructions correspond to the designations on the Worksheet, including parts and line numbers, to allow simple correlation of the Instructions to the Worksheets. The headings for each part are only for ease of identification of the various parts on the Worksheet.

(d) Use of Columns on the Worksheets.

1. Column A shall be used for the Mother’s or Parent 1’s information.

2. Column B shall be used for the Father’s or Parent 2’s information.

3. Column C shall be used for the non-parent Caretaker’s information.

(2) Instructions for Child Support Worksheet.

(a) Part I – Identification.

1. In Part I of the Child Support Worksheet, enter the case specific information on the top section of the form: name of Mother or Parent 1 and Father or Parent 2 (and/or non-parent caretaker where applicable), each parent designated as either PRP, ARP, or split (if split, both parents shall be designated as such), the docket number, court name, and TCSES case number (if applicable), name and date of birth of each child for whom support is being determined, and the number of days each child spends with each parent and/or non-parent caretaker.

2. If the parents spend an equal amount of time with any child, enter one hundred eighty-two point five (182.5) days for each parent with that child.

3. If calculating support owed by both parents to a non-parent caretaker, enter both TCSES numbers and both docket numbers on the same line, separated by a forward slash (/).

(b) Part II – Adjusted Gross Income.

1. Monthly Gross Income. [Rule 1240-02-04-.04]

(i) Line 1 – Enter each parent’s monthly gross income in the appropriate column. Do not include child support payments received on behalf of other children or benefits received from means-tested public assistance programs.

(ii) Line 1a – Social Security Benefit for Child – Enter in the parent’s column the amount of any social security benefit paid to a child on the account of that parent.

(iii) Line 1b – Self-Employment Tax. [Rule 1240-02-04-.04(4)]

Enter on Line 1b of this Worksheet the average monthly amount of any self-employment tax paid by the parent.

(iv) Line 1c – To the amount on Line 1, add the amount on Line 1a and subtract the amount on Line 1b. Enter the result on Line 1c.

2. Line 1d / 1e – Adjustments Against Gross Income for Qualified Other Children. [Rule 1240-02-04-.04(5)]

Adjustments shall be considered for either parent for qualified other children who are receiving support from the parent. A parent seeking credit for qualified other children must enter all pertinent information on the Credit Worksheet in order to calculate the correct amount of the credit. Instructions for the Credit Worksheet are below in Rule 1240-02-04-.08(3)].

(i) Line 1d – For qualified other children living in the home of the parent fifty percent (50%) or more of the time, enter in the appropriate column on Line 1d the amount of the credit from Line 5 of the Credit Worksheet.

(ii) Line 1e – For qualified other children living in the home of the parent less than fifty percent (50%) of the time, enter in the appropriate column on Line 1e the amount of the credit from Line 10b of the Credit Worksheet.

3. Line 2 – Adjusted Gross Income (AGI). [Rule 1240-02-04-.02(1)].

Subtract any amounts on Lines 1d and 1e from Line 1c. Enter the remainder as each individual parent’s AGI in the appropriate column of Line 2.

4. Line 2a – Combined Adjusted Gross Income (AGI). [Rule 1240-02-04-.02(1)].

Add together the amounts on Line 2, Columns A and B, to arrive at the combined AGI and enter this amount in the space provided on Line 2a.

5. Line 3 – Percentage Share of Income (PI). [Rule 1240-02-04-.02(19) and .04]

Calculate the individual parent’s percentage share (PI) of the combined Adjusted Gross Income by dividing each parent’s Line 2 by the combined figure on Line 2a. Enter the resulting percentages on Line 3 in Column A and B as appropriate.

The sum of Line 3, Column A and Column B, must equal one hundred percent (100%).

(i) For this purpose, standard rounding rules apply.

(ii) If application of standard rounding rules should cause the total of both parent’s PI to exceed 100%, the lower PI should be rounded down and the higher PI should be rounded up.

6. Line 3a – Means-Tested Income. [Rule 1240-02-04-.04(3)(c)2.]

Means-tested income is a payment available to people who can demonstrate that their income is below specified limits, such as Supplemental Security Income (SSI) received under Title XVI of the Social Security Act.

(i) A ‘Y’ for Yes should be placed on the Worksheet if the parent has no other source of income other than means-tested income.

(ii) Support should be set at zero if the only source of income for the Obligor is means-tested.

(c) Part III – Each Parent’s Share of the BCSO.

1. Line 4 – Basic Child Support Obligation (BCSO). [Rule 1240-02-04-.02(5), .04(6) and .09]

(i) Standard Parenting.

(I) Determine the “Basic Child Support Obligation” from the CS Schedule based upon the combined Adjusted Gross Income of the parents from Line 2a and the number of children for whom support is being determined. Enter the amount on Line 4 in the column of the PRP.

(II) An amount will be entered in only one column on Line 4.

(ii) Split Parenting.

(I) A BCSO shall be calculated for each parent based upon the combined Adjusted Gross Income of the parents from Line 2a and the number of children living more than 50% of the time in the household of that parent.

(II) An amount shall appear in each parent’s column on Line 4.

(iii) Fifty-fifty/Equal Parenting.

(I) Except as provided below in item (iii)(II) and subpart (iv), the Mother or Parent 1 assumes the role of PRP for all children in fifty-fifty/equal parenting situations for purposes of calculating the BCSO, therefore, the BCSO for these children shall be entered in the Mother’s column.

(II) When calculating support in a fifty-fifty/equal parenting situation in conjunction with a standard parenting situation, the BCSO for the child(ren) in the fifty-fifty/equal parenting situation will be assigned to the Father or Parent 2 in situations where the Father or Parent 2 is the PRP for all other children in the case under consideration.

(iv) Non-parent Caretaker Situations.

(I) If only one parent is available, a BCSO shall be calculated based upon the Adjusted Gross Income of that parent.

(II) If both parents are available, a BCSO shall be calculated based upon the combined Adjusted Gross Income of both parents.

(III) The amount calculated pursuant to item (I) or (II) above shall be entered in the column of the non-parent caretaker on Line 4.

(v) When the combined Adjusted Gross Income falls between two amounts on the Schedule, round up to the next higher amount. Use the rounded-up number to determine the BCSO on the CS Schedule for the number of children for whom support is being determined. [Rule 1240-02-04-.04(6)(b)]

2. Line 4a – Share of BCSO Owed. [Rule 1240-02-04-.02(19), (22) and .04]

(i) Standard Parenting.

(I) The ARP’s share of the BCSO owed to the PRP shall be calculated by multiplying the BCSO in the column of the PRP on Line 4 by the ARP’s PI from Line 3. The result shall be placed in the ARP’s column on Line 4a.

(II) No amount shall be calculated for the PRP. A zero ($0.00) amount shall be entered in the PRP’s column.

(ii) Split Parenting.

(I) Each parent’s share of the BCSO entered on Line 4 in the column of the other parent shall be calculated by multiplying the BCSO by the parent’s PI from Line 3.

I. Mother’s or Parent 1’s child support obligation for the children for whom the Father or Parent 2 is the PRP is calculated by multiplying the BCSO entered in Father’s or Parent 2’s column on Line 4 by the Mother’s or Parent 1’s PI from Line 3.

II. Father’s or Parent 2’s child support obligation for the children for whom the Mother or Parent 1 is the PRP is calculated by multiplying the BCSO entered in Mother’s or Parent 1’s column on Line 4 by the Father’s or Parent 2’s PI from Line 3.

(II) An amount shall be calculated for each parent and entered in the appropriate column on Line 4a.

(iii) Fifty-fifty/Equal Parenting.

(I) When calculating support in fifty-fifty/equal parenting situations, whether alone or in conjunction with a split parenting situation, the Father or Parent 2 will owe a pro-rata share of the BCSO entered for the Mother or Parent 1 on Line 4. The amount shall be entered in the Father’s or Parent 2’s column on Line 4a. See Rule 1240-02-04- .08(2)(c)2.(iii) and (c)5.(iv) for exception.

(II) When calculating support in a fifty-fifty/equal parenting situation in conjunction with a standard parenting situation, the ARP will owe his/her share of the BCSO entered for the PRP on Line 4. The amount shall be entered in the ARP’s column on Line 4a.

(iv) Non-parent Caretaker Situations.

(I) If only one parent is available, one hundred percent (100%) of the BCSO entered on Line 4 shall be transferred to the parent’s column on Line 4a.

(II) If both parents are available, each parent’s pro-rata share of the BCSO from Line 4 shall be calculated and entered in the appropriate column on Line 4a.

3. Line 4b – BCSO if SSR is applied. [Rule 1240-02-04-.02(25)]

(i) Standard Parenting.

(I) If the ARP’s monthly AGI and the respective number of children for whom support is being ordered falls within the shaded area of the CS Schedule, enter that amount on ARP’s Line 4b.

(ii) Split Parenting.

(I) If the Mother’s or Parent 1’s AGI only (Line 2) and the number of children for whom the Father or Parent 2 is the PRP falls within the shaded area of the CS Schedule, enter that amount on Line 4b.

(II) If the Father’s or Parent 2’s AGI only (Line 2) and the number of children for whom the Mother or Parent 1 is the PRP falls within the shaded area of the CS Schedule, enter that amount on Line 4b.

(iii) Fifty-fifty/Equal Parenting.

(I) If a parent’s monthly AGI and the respective number of children for whom support is being ordered falls within the shaded area of the CS Schedule, enter that amount on Line 4b unless there is a split parenting situation.

(II) If there is fifty-fifty/equal parenting and split custody, use the split parenting BCSO adjusted for the SSR as defined in (ii) “Split Parenting” above, enter that amount on Line 4b.

(iv) Non-parent Caretaker Situations.

(I) If only one parent is available and the parent’s monthly AGI and the respective number of children for whom support is being ordered falls within the shaded area of the CS Schedule, enter that amount on Line 4b.

(II) If both parents are available and either or both parent’s monthly AGI and the respective number of children for whom support is being ordered falls within the shaded area of the CS Schedule, enter that amount on Line 4b.

4. Line 5 – Each Parent’s Average Parenting Time. [Rule 1240-02-04-.04(7)(b)]

(i) If there are multiple children in the case under consideration and each child has the same amount of parenting time, then this amount shall be used for purposes of calculating the parenting time adjustment.

(ii) If there are multiple children in the case under consideration and each child has a different amount of parenting time, then an average amount of parenting time is used for calculating the parenting time adjustment.

(I) Calculate the average number of days of parenting time for the ARP by adding together the number of days for the children with whom the ARP spends one hundred eighty-two and one-half (182.5) days or less and dividing the total by the number of such children. For instance, if the ARP spends one hundred forty (140) days with Child A, one hundred fifty (150) days with Child B, and one hundred eighty-two and one-half (182.5) days with Child C, the ARP’s average parenting time to be entered on Line 5 is one hundred fiftyeight (158) days [140 + 150 + 182.5 = 472.5 / 3 = 158].

(II) For split parenting, a separate average will be calculated for each parent as an ARP, including for the Mother or Parent 1 only the days for the children with whom the Mother or Parent 1 spends less than one hundred eighty-two and one-half (182.5) days. For the Father or Parent 2, all children with whom the Father or Parent 2 spends one hundred eighty-two and one-half (182.5) days or less shall be included. For instance, if the Mother or Parent 1 spends two hundred (200) days with Child A, one hundred eighty-two and one-half (182.5) days with Child B, one hundred forty (140) days with Child C, and eighty-six (86) days with Child D, Mother’s or Parent 1’s average parenting time is one hundred thirteen (113) days [140 + 86 = 226 / 2 = 113]. [See Rule 1240-02-04-.04(7)(b)]

(iii) Enter the amount of each parent’s parenting time, or average parenting time, in the appropriate column on Line 5.

5. Parenting Time Adjustment. The following provisions apply to the Parenting Time Adjustments which may be applicable to Lines 5a, 5b, 6a, or 6b depending on the ARP’s parenting days. [Rule 1240-02-04-.02(18) and .04(7)]

(i) Parenting time adjustments may be used to reduce or to increase the BCSO of the ARP.

(ii) In split parenting situations, the adjustment may be applicable to the BCSO of either or both parents in the role as ARP.

(iii) Except as otherwise provided in subpart (iv) below, when calculating a parenting time adjustment for a fifty-fifty/equal parenting situation, the Father or Parent 2 assumes the role of the ARP for the child in the fiftyfifty/equal parenting situation and, as such, the adjustment for the child in the fifty-fifty/equal parenting situation shall be assigned to the Father or Parent 2. If calculating a parenting time adjustment for a fifty-fifty/equal parenting situation in conjunction with either a standard or split parenting situation, the BCSO allocated to the Mother’s or Parent 1’s household shall be pro-rated between the child in the fifty-fifty/equal situation and the child living primarily with the Mother or Parent 1, and two separate parenting time adjustments shall be calculated for the Father or Parent 2. For instance, if a $1200 BCSO has been allocated to Mother’s or Parent 1’s household for 3 children, one of whom spends 182.5 days with each parent, $400 would be allocated to the child in the fifty-fifty/equal parenting situation, and $800 would be allocated to the other two children living primarily with the Mother or Parent 1. A parenting time adjustment for 182.5 days would be calculated for a BCSO of $400. A separate parenting time adjustment would be calculated for the remaining $800 based upon the Father’s or Parent 2’s average parenting time with the other two children.

(iv) When calculating a parenting time adjustment in a fifty-fifty/equal parenting situation in conjunction with a standard parenting situation in which the Father or Parent 2 has primary custody of all children who are not in the fifty-fifty/equal parenting situation, the adjustment for the children in the fif ty-fifty/equal parenting situation will, instead, be assigned to the Mother or Parent 1.

(v) Calculation of the Parenting Time Credit.

(I) First, the variable multiplier is determined by multiplying .0109589 [2 / 182.5] by the ARP’s parenting time entered on Line 5. For example, the 145 days of parenting time calculated in the example from item 3.(ii)(I) above is multiplied by .0109589, resulting in a variable multiplier of 1.5890405 [145 x .0109589].

(II) Second, the variable multiplier calculated in subpart (v)(I) above is applied to the amount of the parties’ combined BCSO, which results in an adjusted BCSO. For example, application of the variable multiplier determined above for 145 days of parenting time to a BCSO of one thousand dollars ($1000) would result in an adjusted BCSO of one thousand five hundred eighty-nine dollars and four cents ($1589.04).

(III) Third, the amount of the BCSO is subtracted from the adjusted BCSO. The difference is the child-rearing expenses associated with the ARP’s additional parenting time. In the example above, the additional child-rearing expenses associated with the 145 days of parenting time would be five hundred eighty-nine dollars and four cents ($589.04). [$1589.04 - $1000].

(IV) The additional child-rearing expenses determined in subpart (v)(III) above are pro-rated between the parents according to each parent’s percentage of income (PI). The PRP’s share of these additional expenses is applied as an adjustment against the ARP’s share of the BCSO. For instance, if the PRP’s PI is forty percent (40%), the PRP’s share of the additional expenses in the example above would be two hundred thirty-five dollars and sixty-two cents ($235.62) [$589.04 x 40%]. The two hundred thirty-five dollars and sixty-two cents ($235.62) is applied as a credit against the ARP’s share of the BCSO, resulting in a child support obligation for the ARP of three hundred sixty-four dollars and thirty-eight cents ($364.38) [$1000 x 60% = $600 - $235.62].

(V) The amount calculated in subpart (v)(IV) above shall be entered on Line 6, and will be used to decrease the BCSO.

(vi) Calculating Increase for Lack of Parenting Time.

(I) The ARP’s child support obligation may be increased for the lack of the ARP’s parenting time. The first step in calculating the increase is to determine the number of days fewer than sixty-nine the ARP spends with the child, then divide this number by three hundred sixty-five. For example, if the ARP has (68) days of parenting time, the multiplier is 0.002739726. [69 - 68 = 1; 1/365]

(II) The second step is to multiply the percentage of days calculated in

subpart (vi)(I) above by the ARP’s share of the BCSO. For example, if the ARP’s share of the BCSO is one thousand two hundred dollars ($1,200), and the parenting time is sixty-eight (68) days, the increased share of support is three dollars and twenty-nine cents ($3.29). [0.002739726 x $1,200 = 3.29]

(III) The increased share of support is added to the ARP’s share of the BCSO to find the adjusted BCSO. Continuing the example, the ARP’s increased BCSO is one thousand two hundred three dollars and twenty-nine cents ($1,203.29). [$1,200 + $3.29]

(IV) The amount calculated in subpart (vi)(III) above shall be entered on Line 6 and will be used to increase the BCSO.

(vii) From Line 4a, add or subtract, as appropriate, the amount from Line 6 and enter the result on Line 7 as each parent’s adjusted BCSO.

(viii) Any negative amount in a parent’s column resulting from the calculation required by subpart 5.(v) shall be entered on Line 7 as a positive amount in the column of the other parent.

6. Line 5a – Parenting Time Adjustment (68 or less days). Complete Line 5a only if a parent has the child(ren) for 68 or less days; otherwise leave Line 5a blank.

(i) Calculating Increase for Lack of Parenting Time.

(I) The ARP’s child support obligation may be increased for the lack of the ARP’s parenting time. This amount is calculated by using the following formula:

I. Subtract number of days (Line 5) from 69 and divide the result by 365 II. Next, multiply the result above by the lower BCSO amount from Line 4a or Line 4b.

III. Enter the results on Line 5a.

A. For standard parenting or fifty-fifty/equal parenting, enter in ARP parent column on Line 5a.

B. For non-parent caretaker situations, enter in both Mother or Parent 1 and Father or Parent 2 columns on Line 5a.

C. For split parenting, enter in both Mother or Parent 1 and Father or Parent 2 columns on Line 5a.

(II) For example, when the combined gross income (Line 2a) is $8,150, the ARP’s parenting days are 65 (Line 5) and the Share of BCSO is $600 (Line 4a).

I. (69 days - 65 days) / 365 = .010958904 x $600 = $6.58 II. $6.58 would be entered on Line 5a for this example.

7. Line 5b – Adjusted BCSO (68 or less days). Complete Line 5b only if a parent has the child(ren) for 68 or less days; otherwise leave Line 5b blank.

(i) Take the lower BCSO from Line 4a or 4b and add Line 5a to this amount.

Enter the calculated amount on Line 5b.

(I) For standard parenting or fifty-fifty/equal parenting, enter in ARP parent column on Line 5b.

(II) For non-parent caretaker situations, enter in both Mother or Parent 1 and Father or Parent 2 columns on Line 5b.

(III) For split parenting, enter in both Mother or Parent 1 and Father or Parent 2 columns on Line 5b.

8. Line 6a – Parenting Time Adjustment (92 or more days). Complete Line 6a only if a parent has the child(ren) for 92 or more days; otherwise leave Line 6a blank.

(i) Calculation of the Parenting Time Credit.

(I) The ARP’s child support obligation may be decreased for additional parenting time. This amount is calculated by using the following formula:

I. Multiply .0109589 by Line 5 (Avg Days with Children) and subtract 1.

II. Next, take the result from above and multiply that amount by Line 4 (BCSO for PRP).

III. Lastly, multiply the result from above by Line 3 (PRP’s PI%) and enter on Line 6a.

(II) For example, when the combined gross income (Line 2a) is $8,150, the ARP’s parenting days are 145 (Line 5), the BCSO is $1000 (Line 4) and the Mother or Parent 1’s Percentage of Income (Line 3) is 40% I. (.0109589 x 145) - 1 = 0.5890405 x $1000 x .40 = $235.62 II. $235.62 would be entered on Line 6a for this example.

9. Line 6b – Adjusted BCSO (92 or more days). Complete Line 6b only if a parent has the child(ren) for 92 or more days; otherwise leave Line 6b blank.

(i) The amount calculated on Line 6a is used to decrease the BCSO.

(ii) Subtract the amount on Line 6a from the amount on Line 4a. This amount must be entered on to Line 6b.

(I) For standard parenting or fifty-fifty/equal parenting, enter in ARP parent column on Line 6b.

(II) For non-parent caretaker situations, enter in both Mother or Parent 1 and Father or Parent 2 columns on Line 6b.

(III) For split parenting, enter in both Mother or Parent 1 and Father or Parent 2 columns on Line 6b.

(iii) If the difference between the ARP’s Line 4a and the ARP’s Line 6a is positive, it is placed on the ARP’s Line 6b. If the difference is negative, it is placed on the PRP’s Line 6b.

10. Line 7 – Calculated BCSO.

(i) Parenting Time between 69 to 91 days.

The calculated BCSO is the lower of the ARP’s Line 4a and the ARP’s Line 4b.

(ii) Parenting Time of 68 days or less.

The calculated BCSO is the amount shown on Line 5b.

(iii) Parenting Time of 92 or more days.

The calculated BCSO is the lower amount shown on Line 4b and that parent’s Line 6b.

(iv) Split Parenting.

The calculated BCSO is the lower of the amount shown on Line 6b and that parent’s Line 4b.

(v) Any negative amount in a parent’s column resulting from the calculation on Line 6b shall be entered on Line 7 as a positive amount in the column of the other parent.

(d) Part IV – Adjustments for Additional Expenses. [Rule 1240-02-04-.04(8)]

1. General Instructions.

(i) This Part includes only health insurance premiums, recurring uninsured medical expenses, and work-related childcare expenses.

(ii) If expenses are not incurred regularly, a monthly amount shall be calculated by averaging the expense over a twelve (12) month period.

(iii) Only amounts actually paid are included in the calculation. Payments that are made by a parent’s employer, but not deducted from the parent’s wages, shall not be included.

(iv) Only the portion of the health insurance premium actually attributable to the children for whom support is being determined and actually paid by the parent is included. If the actual amount of the health insurance premium that is attributable to the child who is the subject of the current action for support is not available or cannot be verified, the total cost of the premium shall be divided by the number of persons covered by the policy to determine a per person cost. This amount is then multiplied by the number of children who are the subject of this action and are covered by the policy.

$_____ ÷ ___________ = $__________ X ___________ = ____________

Total No. of Persons Per Person No. of Children Child’s Portion Premium Covered by Policy Cost Subject to Order of Premium (v) Additional expenses of a non-parent caretaker shall be included in calculating the amount of these expenses.

2. Line 8a – Children’s Portion of Health Insurance Premium. [Rule 1240-02-04- .04(8)(b)]

Enter on Line 8a in the column of the parent, or non-parent caretaker, responsible for payment the amount that is, or will be, paid by a parent for health insurance for the children for whom support is being determined.

3. Line 8b – Recurring Uninsured Medical Expenses. [Rule 1240-02-04-.04(8)(d)]

(i) If uninsured medical expenses are routinely incurred so that a specific monthly amount can be reasonably established, enter that amount on Line 8b in the column of the parent, or non-parent caretaker, responsible for payment. These known expenses shall be divided between the parents pro rata.

(ii) If uninsured medical expenses are not routinely incurred so that a specific monthly amount cannot be reasonably established, no amount should be entered on Line 8b. Every child support order shall specify that these unknown expenses shall be paid by the parents as they are incurred, to be divided pro-rata unless otherwise ordered by the tribunal.

4. Line 8c – Work-related Childcare Expenses. [Rule 1240-02-04-.04(8)(c)]

On Line 8c, enter in the column of the parent, or non-parent caretaker, responsible for paying the amount of any work-related childcare expense for the child for whom support is being determined.

5. Line 9 – Total Additional Expenses. [Rule 1240-02-04-.04(8)]

Total the amounts on Lines 8a, 8b, and 8c, Columns A, B, and C and enter the results for each column on Line 9, representing the total amount of additional expenses paid by each parent and/or non-parent caretaker.

6. Line 10 – Each Parent’s Share of Additional Expenses. [Rule 1240-02-04-.04(8)]

(i) Two Parents.

Calculate each parent’s share of the total additional expenses paid by the other parent by multiplying each parent’s percentage of income (PI) from Line 3 times the other parent’s total additional expenses from Line 9. Enter the results on Line 10. [Line 3, Column A, times Line 9, Column B for the Mother’s or Parent 1’s share of additional expense paid by Father or Parent 2; Line 3, Column B times Line 9, Column A for the Father’s or Parent 2’s share of additional expenses paid by Mother or Parent 1.]

(ii) Two Parents With a Non-Parent Caretaker on Same Docket.

(I) Expenses Paid by Non-parent Caretaker.

Calculate each parent’s share of the total additional expenses paid by the non-parent caretaker by multiplying each parent’s percentage of income (PI) from Line 3 times the total additional expenses of the non-parent caretaker from Line 9. [Line 3, Column A, times Line 9, Column C for the Mother’s or Parent 1’s share of additional expenses paid by the non-parent caretaker; Line 3, Column B times Line 9, Column C for the Father’s or Parent 2’s share of additional expenses paid by the non-parent caretaker.]

(II) Expenses Paid by a Parent.

Calculate each parent’s share of the total additional expenses paid by the other parent as indicated above in subpart (i).

(III) Subtract the larger obligation calculated in subpart (ii)(II) above from the smaller. In the column with the larger amount, add the difference to any amount calculated in subpart (ii)(I) above. In the column with the smaller amount, subtract the difference to any amount calculated in subpart (ii)(I) above. Enter results on Line 10 in Columns A and B.

(iii) One Parent With a Non-parent Caretaker.

The full amount of any additional expenses paid by a non-parent caretaker is owed by the parent and shall be placed in the parent’s column on Line 10.

7. Line 11 – Adjusted Support Obligation – BCSO Plus Parent’s Share of Additional Expenses. [Rule 1240-02-04-.02(2) & .04(9)]

To calculate each parent’s total obligation to the other parent for the parent’s prorata share of the BCSO and the parent’s pro-rata share of additional expenses paid by the other parent, add the amount on Line 7 in each column to the amount on Line 10 in each column. The result is each parent’s adjusted support obligation and shall be entered on Line 11.

(e) Part V – Presumptive Child Support Order / Modification of Current Support.

1. Line 12 – Presumptive Child Support Order. [Rule 1240-02-04-.02(20) & .04(11)]

(i) Except as indicated below in subpart (ii), the PCSO to be entered on Line 12 is the difference between the larger ASO on Line 11 and the smaller ASO on Line 11. The parent with the larger ASO on Line 11 is the obligor, and the PCSO shall be entered in that parent’s column on Line 12.

(ii) In non-parent caretaker situations, the amount on Line 11, in either or both columns, represents an amount of support owed by that parent to the nonparent caretaker. The amount from either or both columns shall be entered in total on Line 12 as the PCSO for that parent.

(iii) Statutory Threshold.

(I) Standard Parenting Situations.

If the amount of the PCSO exceeds the amount specified in 1240-02- 04-.07(2)(g)1. for the number of children for whom support is being calculated, then the amount of the PCSO entered on Line 12 shall be limited to the amount specified in 1240-02-04-.07(2)(g)1. for the number of children for whom support is being calculated. An opportunity to rebut this limitation is provided in 1240-02-04- .07(2)(g)2.

(II) Split Parenting Situations.

If the ASO on Line 11 for either parent exceeds the amount specified in 1240-02-04-.07(2)(g)1. for the number of children for whom support is being calculated, then that amount shall be limited to the amount specified in 1240-02-04-.07(2)(g)1. for the number of children for whom support is being calculated prior to making the calculation required in subpart (i) above. An opportunity to rebut this limitation is provided in 1240-02-04-.07(2)(g).

2. Line 13a – For Modification of Current Child Support Order. [Rule 1240-02-04- .05]

(i) To determine if a modification is possible, first calculate an order on Lines 1-12 of the Child Support Worksheet using current evidence of the parties’ circumstances.

(ii) Indicate whether the order to be modified is an order most recently established or modified under the flat percentage guidelines or under the income shares guidelines.

(iii) On Line 13a, enter the amount of the current child support order in the case under consideration. If the order is calculated under the flat percentage guidelines, use the current support amount. If the order is calculated under income shares, use the presumptive child support order (PCSO).

3. Line 13b – Amount Required for Variance to Exist.

To determine the amount needed to comply with the significant variance requirement, multiply the amount from Line 13a by the percentage required in

part 2.(ii) above. Enter the result on Line 13b.

4. Line 13c – Significant Variance Amount. [Rule 1240-02-04-.05]

(i) For flat percentage orders, from the column of the obligor parent, subtract the lesser of Lines 4a and 13a from the greater and enter the result on Line 13c. If Line 13c is equal to or greater than Line 13b, the significant variance requirement has been met and the child support obligation may be modified to the presumptive amount entered on Line 12.

(ii) For income shares orders, subtract the lesser of Lines 12 and 13a from the greater and enter result on Line 13c. If Line 13c is equal to or greater than Line 13b, the significant variance requirement has been met and the child support obligation may be modified to the presumptive amount entered on Line 12.

(f) Part VI – Deviations and Final Child Support Obligation.

1. Line 14 – Deviations. [Rule 1240-02-04-.07]

(i) Specify the reason for the deviation and enter on Line 14 the amount that will be added to or subtracted from the Presumptive Support Order.

(ii) The order must include written findings supporting the deviation as outlined in 1240-02-04-.07(1).

2. Line 15 – Adjusted for Minimum Order (Y/N). [Rule 1240-02-04-.04(12) and Rule 1240-02-04-.05(6)]

(i) ‘Y’ for Yes should be placed on the Worksheet if the minimum order should be applied. Once a ‘Y’ is placed on the Worksheet, the Final Child Support Order will be set at $100.

(ii) ‘N’ for No should be placed on the Worksheet if the minimum order is not applied.

3. Line 16 – Final Child Support Order. [Rule 1240-02-04-.02(13)]

To the Presumptive Support Order amount on Line 12, add/subtract as appropriate any amount on Line 14 and enter the result on Line 16 as the Final Child Support Order.

4. Line 17 – Social Security Benefits.

If a child to be supported under the order receives social security benefits on the account of the parent who will pay support under this order, and such benefit was added to that parent’s gross income on Line 1a according to rule 1240-02-04- .04(3)(a)5., then enter the amount of that child’s benefit entered on Line 1a and subtract that amount from that parent’s obligation. The parent is relieved from directly making that portion of the obligation so long as the benefit is being paid by social security.

5. The completed Worksheet must be maintained as part of the official record either by filing it as an exhibit in the tribunal’s file or as an attachment to the order.

Payments of child support shall be ordered to be paid in a specific dollar amount on a weekly, biweekly (every two weeks), semimonthly (twice a month), or monthly basis.

(3) Instructions for Credit Worksheet.

(a) The Credit Worksheet is to be utilized to calculate the available credit against the parent’s gross income for qualified other children. The amount of any credit calculated on the Credit Worksheet shall be transferred to the appropriate line on the Child Support Worksheet.

(b) Part I – Identification.

In Part I of the Credit Worksheet, enter the case specific information: name of Mother or Parent 1 and Father or Parent 2 (and/or non-parent caretaker where applicable), each parent designated as either PRP, ARP, or split (if split, both parents shall be designated as such), the docket number, court name, and TCSES case number (if applicable).

(c) Part II – Calculation of Credit for Qualified Other Children.

1. A child is qualified for the credit available in this Part II if the parent is legally responsible for the child’s support, the parent is actually supporting the child, and the child is not before the tribunal to set, modify, or enforce support in the case immediately under consideration.

2. Line 1 – Applicable Gross Income from Child Support Worksheet. [Rule 1240-02- 04-.04(3)]

From the Child Support Worksheet, subtract the amount on Line 1b from the amount on Line 1 and enter the result on Line 1 of the Credit Worksheet.

3. Line 2 – Identify Qualified Other Children Living 50% or More of the Time in the Home of the Parent Seeking the Credit. [Rule 1240-02-04-.04(5)]

In the spaces provided, enter the names and dates of birth of the qualified other children living fifty percent (50%) or more of the time in the home of the parent seeking the credit. Do not consider children for whom support is being calculated in the case for which credit is being considered, step-children, or other minors in the home that the parent has no legal obligation to support. If more space is needed, use the Additional Credit Worksheet promulgated by the Department.

4. Line 3 – Number of Qualified Other Children in the Parent’s Home.

Enter on Line 3 of the Credit Worksheet the number of qualified other children from Line 2 living fifty percent (50%) or more of the time in the parent’s home. If there are no qualified other children, skip to Line 6.

5. Line 4 – Calculate Theoretical Order.

(i) Using the gross income of the parent from Line 1 and the number of qualified other children from Line 3, find the amount of child support on the CS Schedule that the parent would pay for the qualified other children living fifty percent (50%) or more of the time in the parent’s home if a theoretical order were issued for those children. Enter this amount on Line 4 of the Credit Worksheet.

(ii) If the amount of the theoretical order exceeds the amount specified in 1240-02-04-.07(2)(g)1. for the number of children for whom support is being calculated, then the amount of the theoretical order entered on Line 4 shall be limited to the amount specified in 1240-02-04-.07(2)(g)1. for the number of children for whom support is being calculated.

6. Line 5 – Calculate Credit Amount.

Multiply the theoretical order amount from Line 4 by seventy-five percent (75% or 0.75). Enter the result on Line 5 of the Credit Worksheet and on Line 1d of the Child Support Worksheet.

7. Line 6 – Identify Qualified Other Children Living Less Than 50% of the Time in the Home of the Parent Seeking the Adjustment. [Rule 1240-02-04-.04(5)]

In the spaces provided, enter the names and dates of birth of the qualified other children living in the parent’s home less than fifty percent (50%) of the time. Do not consider children for whom support is being calculated in the case for which credit is being considered, step-children or other minors for whom the parent has no legal obligation. If more space is needed, attach an additional sheet to this Worksheet.

8. Line 7 – Number of Qualified Other Children Living in the Parent’s Home Less Than 50% of the Time.

Enter on Line 7 the number of qualified other children from Line 6 who reside less than fifty percent (50%) of the time in the home of the parent claiming the credit.

9. Line 8 – Determine Actual Support. [Rule 1240-02-04-.04(5)(e)2.(ii)]

Determine the dollar amount of documented monetary support actually provided by the parent to the caretaker, such as canceled checks or money orders, over the most recent twelve (12) month period, expressed as a monthly average.

Documented monetary support can include evidence of payment of child support under another child support order. Determine the monthly average by dividing the annual amount of support provided by twelve (12). Enter the result on Line 8 of the Credit Worksheet.

10. Line 9 – Calculate Theoretical Order.

(i) Using the income for this parent from Line 1 and the number of qualified other children from Line 7, use the CS Schedule to find the amount of child support the parent would pay for the qualified other children living in the parent’s home less than fifty percent (50%) of the time if a theoretical order were issued for those children. Enter the amount on Line 9.

(ii) If the amount of the theoretical order exceeds the amount specified in 1240-02-04-.07(2)(g)1. for the number of children for whom support is being calculated, then the amount of the theoretical order entered on Line 9 shall be limited to the amount specified in 1240-02-04-.07(2)(g)1. for the number of children for whom support is being calculated.

11. Lines 10a and 10b – Calculate Maximum Amount.

(i) Line 10a – Multiply the theoretical order amount from Line 9 by seventyfive percent (75% or 0.75) and enter the result on Line 10a.

(ii) Line 10b – Compare the results from Line 8 and Line 10a and enter the lesser amount for the credit on Line 10b of the Credit Worksheet and on Line 1e of the Child Support Worksheet. Do not exceed the lesser of the actual support or seventy-five percent (75%) of the theoretical order.

(This space intentionally left blank.)

(4) Child Support Worksheet.

State of Tennessee – Child Support Worksheet

Part I. Identification PRP ARP SPLIT Indicate the status Name of Mother or Parent 1: of each parent or Name of Father or Parent 2: caretaker by placing Name of non-parent Caretaker: an “X” in the TCSES case #: appropriate column Docket #:

Court name:

Name(s) of Child(ren)

Date of Birth Days with Mother or Parent 1 Days with Father or Parent 2 Days with Caretaker

Part II. Adjusted Gross Income Mother or Parent 1 / Column A Father or Parent 2 / Column B Non-parent Caretaker / Column C $ $ 1 Monthly Gross Income 1a Federal benefit for child + + 1b Self-employment tax paid - - 1c Subtotal $ $ Use Credit Worksheet 1d Credit for In-Home Children - to calculate line items 1e Credit for Not In Home Children - - 1d and 1e. 2 Adjusted Gross Income (AGI) $ $ 2a Combined Adjusted Gross Income $ 3 Percentage Share of Income (PI) % % 3a Means-tested Income only (Y/N)

Part III. Parents’ Share of BCSO 4 BCSO allotted to primary parent’s household $ $ $ 4a Share of BCSO owed to primary parent $ $ 4b BCSO if Self Support Reserve (SSR) is applied $ $ 5 ARP parent’s average parenting time 5a Parenting time adjustment (68 or less days) $ $ 5b Adjusted BCSO (68 or less days) $ $ 6a Parenting time adjustment (92 or more days) $ $ 6b Adjusted BCSO (92 or more days) $ $ 7 Calculated BCSO $ $ State of Tennessee – Child Support Worksheet

Part IV. Additional Expenses Mother or Parent 1 / Column A Father or Parent 2 / Column B Non-parent Caretaker / Column C 8a Children’s portion of health insurance premium $ $ $ 8b Recurring Uninsured Medical Expenses $ $ $ 8c Work-related childcare $ $ $ 9 Total expenses $ $ $ 10 Share of additional expenses owed $ $ 11 Adjusted Support Obligation (ASO) $ $

Part V. Presumptive Child Support / Modification of Current Support Obligation Column 12 Presumptive Child Support Order (PCSO) $ $ * Enter the difference between the greater and smaller numbers from Line 11, except in non-parent caretaker situations.

Current Order Flat % ____ (N / Y)

Modification of Current 13a Current child support order amount for the obligor parent $ $ Child Support Order 13b Amount required for significant variance to exist $ $ 13c Actual variance between current order and PCSO / BCSO $ $

Part VI. Deviations and Final Child Support Order Deviations must be substantiated by 14 Deviations (Specify): $ $ written findings in the Child Support Order 15 Adjusted for minimum order (Y/N) 16 Final Child Support Order (FCSO) $ $ 17 FCSO adjusted for federal benefit, Line 1a, Obligor’s column $ $ Comments, Calculations, or Rebuttals to Schedule Preparer’s Use Only Name: Date:

Title:

(5) Credit Worksheet.

State of Tennessee – Credit Worksheet

Part I. Identification PRP ARP SPLIT Indicate the status Name of Mother or Parent 1: of each parent or Name of Father or Parent 2: caretaker by placing Name of non-parent Caretaker: an “X” in the TCSES case #: appropriate column Docket #:

Court name:

Part II. Other Children Column A Column B Parent Income 1 Applicable gross income from CS worksheet $ $ Information In-Home Children 2 Below, list qualified children living in the parent’s home (if none, skip to line 6):

Name(s) of Child(ren) for PRP Date of Birth Name(s) of Child(ren) for ARP Date of Birth 3 Number of qualified children living in the parent’s home # # 4 Theoretical child support order (this parent’s income on CS Schedule for number of children from line 3) $ $ 5 75% of theoretical child support order from line 4 $ $ Not-In-Home Children 6 Below, list qualified children not living in the parent’s home:

Name(s) of Child(ren) for PRP Date of Birth Name(s) of Child(ren) for ARP Date of Birth 7 Number of qualified children not living in the parent’s home # # 8 Average monthly amount of documented monetary support $ $ 9 Theoretical child support order (this parent’s income on CS Schedule for number of children from line 7) $ $ 10a 75% of theoretical child support order from line 9 $ $ 10b Allowable credit for not-in-home children $ $

History

• Authority: T.C.A. §§ 4-5-202, 36-5-101(a)(1), 36-5-101(e), 36-5-103(f), 71-1-105(a)(12), (15), and (16), and 71-1-132; 42 U.S.C. § 667; and 45 C.F.R. § 302.56 and 303.8.
• Administrative History: Original rule filed November 4, 2004; effective January 18, 2005. Emergency rules filed March 3, 2005; effective through August 15, 2005. Amendments filed June 1, 2005; effective August 15, 2005. Repeal and new rule filed April 6, 2006; effective June 20, 2006. Stay of effective date of rule filed April 19, 2006; new effective date of rule June 26, 2006. On July 10, 2008, the Government Operations Committee stayed amendments filed May 8, 2008; to be effective July 22, 2008; new effective date August 15, 2008. Amendments filed February 10, 2020; effective May 10, 2020.

Chapter 1240-02-05 Liens for Child Support

Tenn. Comp. R. & Regs. 1240-02-05-.01 PURPOSE AND SCOPE

(1) Section 368 of the Personal Responsibility and Work Opportunity Reconciliation (Welfare Reform) Act of 1996 (Public Law 104-193) codified at 42 United States Code Annotated 666(a)(4) requires that all states have laws in effect that cause liens to arise by operation of law against all real and personal property owned by a child support obligor who has overdue support payments, and 42 United States Code Annotated §654a(g) and (h) and §666(c)(1)(G) require that automated systems be utilized in the process of enforcing those liens.

(2) Federal law at 42 USC §666 (c)(1)(G) requires that where there is a support arrearage, the states have in effect provisions to satisfy both current support obligations and arrearages by allowing the State to intercept or seize from State or local agencies or any other person or entity holding any assets of an obligor including periodic or lump-sum payments such as, but not limited to, unemployment compensation, workers’ compensation, and other benefits, and judgments, settlements and lottery winnings, by attaching and seizing assets of the obligor held in financial institutions, by attaching public and private retirement funds, by imposing liens on the property of an obligor by operation of law and by enforcing the liens against child support obligors by the sale of property and distribution of the proceeds.

(3) Tennessee Code Annotated, §36-5-901(b)(1) and (3) permit the Department to file notices of a lien arising under paragraphs (1) and (2) on the real and personal property in the appropriate place for the filing of such liens or security interests in the property of a child support obligor, and allows for the filing of such liens by automated processes where feasible.

(4) The purpose of this Chapter is to establish procedures for the establishment of liens in favor of the Department of Human Services for the collection of current support and overdue support pursuant to the Title IV-D child support program and to establish procedures for the enforcement of those liens.

History

• Authority: T.C.A. §§4-5-202; 36-5-901 et seq.; 36-5-912; 36-5-1001 et seq.; 45-19-101; 71-1-132; 42 USC §§ 654a (a), (g) and (h), and 666(c)(1)(G).
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.02 DEFINITIONS

For purposes of this Chapter the following terms shall have the following meanings:

(1) “Administrative action” means procedures undertaken by the Department or its contractors by administrative order pursuant to law or regulations.

(2) “Arrears” or “Arrearage” means any occasion on which the full amount of support ordered for or on behalf of a minor child, or for a spouse or former spouse of the obligor with whom the child is living to the extent the spousal support would be included for the purposes of 42 U.S.C. 654A(4), is not paid by the due date which causes the support to become “in arrears” as defined in T.C.A. § 36-5-101(f)(1), unless an income assignment is in effect and the payer of income is paying pursuant to subsection § 36-5-501(g), thus the date payment is made is affected by the operation of the income assignment.

(a) T.C.A. § 36-5-101(f)(1) defines “in arrears” as the circumstances existing when the full amount of child support is not paid by the date upon which the ordered support is due.

The unpaid amount at that time is “in arrears, and shall become a judgment for the unpaid amounts.

(b) Arrears or arrearage may also be known as and referred to in these rules as “overdue” support or “past-due” support.

(c) Arrears shall include the totals of all amounts of support that are not paid and that remain unpaid by the obligor at the time a lien is perfected, or which become due as arrears subsequent to the perfection of the lien.

(3) “Child support” or “support” for purposes of this Chapter means a judgment, decree, or order, whether temporary, final or subject to modification issued by a court of competent jurisdiction or an administrative agency of competent jurisdiction, for the support and maintenance of a child, including a child who has attained the age of majority under the law of the state which issued the order, and shall include the support of a parent with whom the child is living, and which, judgment, decree or order provides for monetary support, health care, arrearages, or reimbursement, and which may include related costs and fees, interest, penalties, income withholding, attorneys fees and other relief.

(4) “Current support obligation” means the amount of support due each month pursuant to a judicial or administrative order.

(5) “Department” means the Tennessee Department of Human Services, or its contractors who provide child support services to the Department in the courts of Tennessee, or by way of administrative processes and accompanying due process procedures, as part of the Department’s responsibilities under Title IV-D of the Social Security Act. The Department is the single state child support agency pursuant to Title IV-D of the Social Security Act, 42 USC 651 et seq.

(6) “Final Order” means for purposes of this Chapter, an order, whether administrative or judicial, for seizure or sale of an obligor’s property shall be final when the obligor either fails to appeal the order in a timely way as provided by this Chapter or when the administrative or judicial remedies provided by this Chapter or by Tennessee Code Annotated, §§ 36-5-901 et seq. and §§ 36-5-1001 et seq. have been exhausted.

(7) “Financial institution” means for purposes of this Chapter:

(a) A depository institution, as defined in Section 3(c) of the Federal Deposit Insurance Act (12 USC §1813(c) );

(b) An institution-affiliated party, as defined in Section 3(u) of such Act (12 USC §1813 (u));

(c) Any Federal credit union or State credit union as defined in Section 101 of the Federal Credit Union Act (12 USC §1752), including for the purposes of this Chapter an institution-affiliated party of such a credit union, as defined in Section 206 of such Act (12 USC §1786);

(d) Any benefit association, insurance company, safe deposit company, money-market mutual fund, securities broker/dealer or similar entity authorized to conduct business in this State.

(8) “Levy” means the imposition of a claim of the Department upon the property of the obligor and shall include an administrative order issued by the Department for seizure or encumbrance of any assets or property of the obligor.

(9) “Lien” means a claim or charge on property for payment of a debt, obligation or duty, and in particular, the duty of child support.

(10) “Lien obligation” means that once a lien has been perfected by automated means or by notice of lien or by other methods, the amount of the lien will reflect the amount due by an obligor on the date of seizure, or if by automated means, the amount shown on the TACSLR lien screen.

(11) “Obligee” means the person or agency to which a duty of child or spousal support is owed by an obligor.

(12) “Obligor” means the person who owes a duty of support to a child or the child’s parent or caretaker.

(13) (a) “Overdue support” means for purposes of this Chapter, any occasion on which the full amount of ordered support for or on behalf of a minor child, or for a spouse or former spouse of the obligor with whom the child is living to the extent spousal support would be included for the purposes of 42 U.S.C. § 654(4), is not paid by the due date for arrears as defined in T.C.A. § 36-5-101(f)(1) unless an income assignment is in effect and the payer of income is paying pursuant to § 36-5-501(g), thus the date payment is made is affected by the operation of the income assignment.

(b) “Overdue support” shall include all amounts of support that are in arrears as defined in T.C.A. § 36-5-101(f)(1) and 1240-02-05-.02(2)(b) and that remain unpaid by the obligor at the time the lien is perfected or which become due as arrears subsequent to the perfection of the lien.

(c) The term “overdue support” may be used interchangeably with “arrears” or “past due support as described in 1240-02-05-.02(2)(b).

(14) “Past-due” support shall have the same meaning as “arrears” or “overdue support” as defined in 1240-02-05-.02(b).

(15) “Qualified domestic relations order” means a domestic relations order, as defined in 29 USC §1056(d), which creates or recognizes the existence of an alternate payee’s right, or assigns to an alternate payee the right, to receive all or a portion of the benefits payable with respect to a participant under a pension plan and which meets the requirements of 29 USC §1056(d).

(16) “Register” or “Register of Deeds” means the county official whose office is responsible for the recording of documents and other information relative to real property transactions, liens on property, and other documents as required by law.

(17) “Secretary of State’s Division of Business Services” means the Division of the Department of State which, among other responsibilities, files and maintains records of financing statements on secured transactions under the Uniform Commercial Code (UCC), as well as amendments, releases, assignments, continuations and terminations, and maintains information about, and copies of, filed documents.

(18) “TACSLR” means the Tennessee Automated Child Support Lien Registry which is to be established and operated in the future by the Department of Human Services containing data and functions through an internet based application for the recording by that application, or, if determined appropriate, in the offices of the Registers of Deeds, the Office of the Secretary of State, and other appropriate locations, of any information to establish and perfect liens on the real and personal property of support obligors.

(19) “TCSES” means the Tennessee Child Support Enforcement System operated by the Department of Human Services containing data and functions for the recording of child or spousal support data and for collection, distribution, and disbursement of child and spousal support payments.

(20) (a) “Title IV-D” means Title IV-D of the Social Security Act codified at 42 United States Code Annotated § 651 et seq. Title IV-D establishes the joint Federal/State child support enforcement program in effect in all States and Territories of the United States.

(b) The Department of Human Services is the Title IV-D support enforcement agency for the State of Tennessee and through that program provides legal services for establishment, modification and enforcement in Title IV-D support cases.

(c) Title IV-D support cases include both the obligations which are owed to the State of Tennessee through the assignment of rights of Families First or Aid to Families with Dependent Children (AFDC), also “welfare” recipients, and services provided to obligees who are not, or may never have been recipients of Families First or AFDC, and who have applied for support services through the Department or its contractors.

(d) In addition, the Department is required by Federal regulations to provide services through the offer of Title IV-D services to obligors who seek modifications of their support obligation or who may seek establishment of paternity.

History

• Authority: T.C.A. §§4-5-202; 36-5-901 et seq.; 36-5-912; 36-5-1001; 71-1-132; 29 USC §1056(d); 42 USC §§654a (a), (g) and (h); 659(i), and 666(c)(1)(G) and (c)(3).
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002. Amendments to rules 1240-02-05-.02(2) and (2)(a) and to 1240-02-05-.02(13)(a), (b) and (c) filed October 29, 2009; to be effective January 27, 2010; however on January 26, 2010, the Department of Human Services stayed the rules; new effective date February 26, 2010.

Tenn. Comp. R. & Regs. 1240-02-05-.03 LIENS FOR CHILD SUPPORT ARREARAGES

(1) Scope of the Lien.

(a) In any case of child or spousal support enforced by the Department or its contractors under Title IV-D of the Social Security Act in which arrears are owed by an obligor who resides or owns property in this state, a lien shall arise by operation of law against all real and personal property, tangible or intangible, then owned or subsequently acquired by the obligor against whom the lien arises for the amounts of overdue support owed and the amount of penalties, costs or fees as provided in this Chapter.

(b) The personal or real property, tangible or intangible, of the obligor that is subjected to the lien required by this part shall include all existing property at the time of the lien’s perfection, or acquired thereafter, even if a prior order for overdue support or arrears only specifies a certain amount of overdue support or arrears that was owed by the obligor at the time of such order.

(c) The notice of lien required to be filed or recorded under this Chapter and T.C.A. §36-5- 901(b), or any renewal of the lien, shall be effective until the duty of child or spousal support is completely paid.

(2) The Department may file its notice of lien, which shall be effective and perfected upon filing against all real and personal property of the child support obligor:

(a) Directly with the person or entity holding the assets of the obligor;

1. The receipt of such notice by that person or entity shall be adequate notice of the Department’s lien upon the obligor’s assets of any kind which are held by the person or entity or which may come into that person’s or entity’s possession or control.

2. Subject to the priorities of 1240-02-05-.05, or the subordination of these liens to orders or judgments pursuant to T.C.A. §36-5-905(c)(1)(A) and (c)(1)(B), and subject to any exemptions allowed by T.C.A. §36-5-906, payment or transfer to the obligor or other persons or entities of the funds, property, or other assets of any kind which are encumbered by the lien subsequent to the receipt of such notice, the person or entity receiving such notice shall be liable to the Department for any assets transferred after notice of the lien to the extent of the overdue support, penalties, costs or fees as allowed by this chapter or by law, up to the value of the transferred assets, in an action in the appropriate court of the county in which the order of support is being enforced.

3. The Department may choose, in its sole discretion, to enforce the overdue obligation against either the obligor, the transferee, or both; or (b) Through exclusive use the establishment of an internet application maintained by the Department on the Department of Human Services’ Tennessee Child Support Enforcement System (TSCES) system, or in combination with other methods provided by this Chapter or by law; or (c) With the register of deeds office in the appropriate county by any means provided by existing law; or (d) By means of a computer terminal arrangement in the office of the register of deeds, or other state or local office where information regarding the existence of a lien on real or personal property is maintained; or (e) By any combination of the above, or by any other means provided by law for the filing and perfecting of liens.

(3) The notice, or other evidence of the lien, shall show the existence, amount and date of the lien or security interest involving an obligor for persons researching the title to real or personal property or who may be seeking the status of any security interests or liens affecting any real or personal property possessed or controlled by, or titled to, an obligor.

(4) When necessary to perfect the lien with third parties when perfection has not occurred by automated means or where the notice or order of seizure, encumbrance or sale is inappropriate, the Department may use the Notice of Lien form issued by the United States Department of Health and Human Services’ Office of Child Support Enforcement on April 4, 2001 in Action Transmittal 01-06, or any subsequently modified forms, for the filing of notice of any administratively issued liens pursuant to this Chapter. Rule 1240-02-05-.16 contains the Notice of Lien. Modification of any existing Federal forms shall not invalidate any form used pursuant to these rules.

(5) Nothing herein shall require the Department to file a notice of lien for the seizure of, encumbrance, or levy on an obligor’s assets held by a state or local agency, by a court or administrative tribunal, by a lottery, by a financial institution or by a public or private retirement fund pursuant to T.C.A. §36-5-904(a)(1)-(3) and Rule 1240-02-05-.03(2)(a)-(e), or to obtain any income withholding from any employer or other payer of income as otherwise permitted under Tennessee Code Annotated, Title 36, Chapter 5, Part 5.

(6) Nothing herein shall limit the Department’s authority to file or enforce its liens for support by any method otherwise provided by law for the establishment or enforcement of liens.

History

• Authority: T.C.A. §§4-5-202; 36-5-901(a)(1); 36-5-904; 36-5-912; 36-5-1001; 45-19-101; 50-6-223; 71- 1-132; 29 USC §1056(d), 42 USC §§ 654a (a), (g) and (h); 659(i) and 666(c)(1)(G) and (c)(3); U.S. Department of Health and Human Services, Office of Child Support Enforcement, Action Transmittal, 01- 06, April 4, 2001.
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.04 FULL FAITH AND CREDIT TO LIENS OF OTHER STATE CHILD SUPPORT

AGENCIES.

(1) Full faith and credit shall be accorded to liens arising in any other State or territory for cases of child or spousal support enforced by the Title IV-D child support enforcement agency of the other State or territory as a result of the circumstances described in T.C.A. §36-5-901(a) for all overdue support, as defined in the other State or territory, when that other State or territory agency or other entity complies with the Federal or Tennessee procedural rules relative to the recording or filing of liens that arise within this State.

(2) The Department of Human Services may enforce the liens arising pursuant to this section by any means available for enforcement of its liens.

History

• Authority: T.C.A. §§ 4-5-202; 36-5-901 et seq., 36-5-902; 36-5-912; 36-5-1001; 71-1-132, 42 USC.§§ 654a (a), (g) and (h); 659(i), and 666(c)(1)(G) and (c)(3).
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.05 , the person or entity to whom or to which the order was directed shall pay or deliver to the Department, pursuant to its direction, the assets of the obligor that are held or that come into the possession or control of the person or entity and that are necessary to comply with the terms of the Department’s administrative order.

(11) Sale of property that has been seized from an obligor in physical or constructive possession of the property may proceed following exhaustion of administrative or judicial processes provided in this Chapter, applicable provisions of T.C.A. §36-5-1001 et seq. and the procedures for sale provided by these rules.

(12) Pursuant to T.C.A. §36-5-905(g), all persons or entities complying with any administrative order issued pursuant to this section shall be absolutely immune from any liability, civil or criminal, for compliance with the terms of such order or attempted compliance in good faith with such order.

History

• Authority: T.C.A. §§4-5-202; 36-5-901 et seq.; 36-5-912; 45-19-101; 42 USC §654a(h), and 42 USC §666(a)(14), (17)(C).
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.06 ENFORCEMENT OF LIENS BY ADMINISTRATIVE SEIZURE OR SALE ORDER

(1) In cases where there is an arrearage of child or spousal support in a Title IV-D child support case or in which a lien arises pursuant to T.C.A. §36-5-901, the Department may, without further order of a court, secure the assets of the obligor to satisfy the current obligation and the arrearage by:

(a) Intercepting or seizing periodic or lump-sum payments or benefits due the obligor:

1. From a state or local agency;

2. From judgments of any judicial or administrative tribunal, settlements approved by any judicial or administrative tribunal, and lottery winnings;

(b) Attaching or seizing assets of the obligor or the assets in which the obligor has an interest that are in the possession of any other person or entity, or that are held in any financial institution as defined in 1240-02-05-.02;

(c) Attaching public and private retirement funds; and (d) Imposing liens in accordance with this Chapter and §36-5-901 et seq. and, in appropriate cases by forcing the sale of the obligor’s legal or equitable interest in the property and distributing the proceeds of such sale.

(2) Enforcement of Lien.

(a) The Department may enforce the provisions of Rule 1240-02-05-.03 and T.C.A. §36-5- 901 et seq. by issuance of an administrative order to any person or entity directing the seizure, encumbrance or sale of any assets of an obligor.

(b) The order shall direct the person or entity to hold or encumber, subject to any due process procedures provided to the obligor, all assets of any kind of the obligor who is subject to the order, pending the outcome of the administrative due process procedures provided by this Chapter.

(c) The order shall be based upon and issued pursuant to an existing judicial or administrative order, which has previously established support under which an arrearage, due to overdue support, as defined in T.C.A. §36-5-901, has occurred.

(3) The administrative order for seizure or sale of assets may be issued upon determination by the Department, as shown by records of the support obligation, that arrears involving the obligor’s support obligations exist.

(4) Notice to the Obligor.

(a) There shall be no requirement of advance judicial or administrative notice or hearing prior to the seizure or encumbrance of the obligor’s property by administrative order, but the Department will not permit the final disposition of any property seized or encumbered under the lien enforcement procedures until the exhaustion of administrative and judicial remedies as provided in this Chapter at 1240-02-05-.13.

(b) Process and Form of Notice .

1. A notice to the obligor against whom the administrative order for seizure or sale of assets is directed shall be sent by mail to the last address of record possessed by the Department as shown on TCSES.

2. The notice shall be sent within five (5) days of the issuance of the administrative seizure order.

3. The notice shall inform the obligor of the fact that the obligor’s assets have been the subject of an administrative order and that they have been seized or are subject to sale and are being held, may be conveyed to the Department or may be sold, subject to the right to an administrative hearing to contest the seizure or sale of such assets.

4. The notice shall specify the sum demanded and shall contain, in the case of personal property, an account of the property actually seized and, in the case of real property, a description with reasonable certainty of the property seized. In the case of assets in a financial institution, it shall be sufficient to notify the obligor of the seizure of any assets of the obligor that may be held by any institution to which the order is directed.

(5) All administrative orders for seizure or sale shall be subject to and subordinate to:

(a) Any order or automatic stay by the United States Bankruptcy Court affecting an asset of the obligor;

(b) An attachment or execution under any judicial process in effect at the time of the administrative seizure order, pending modification of such court’s orders;

(c) A priority under Rule 1240-02-05-.05; or (d) A claim for reasonable attorneys fees, subject to the limitations on such fees by the rules of the Tennessee Supreme Court, whether evidenced by a court order, a statutory provision, or a contract.

(6) An administrative order for the seizure of pension and retirement funds shall comply with the provisions for a qualified domestic relations order pursuant to 29 USC §1056(d), if applicable.

(7) If the assets of the obligor are known by the person or entity which received such administrative order to be subject to any orders of the United States Bankruptcy Court, or to any attachment, execution or existing lien, that person or entity shall notify the Department at the address contained in the order within ten (10) days after receipt of the administrative order. With respect to deposit accounts of the obligor, the depository financial institution shall inform the Department of the unencumbered balances of such accounts.

(8) Method of Issuance of Administrative Order of Seizure or Sale.

(a) Form of Issuance and Effectiveness.

1. The order may be issued, and shall be effective, if issued to the holder of property or to the person or entity in possession of, or obligated with respect to property, or rights to, property of the obligor.

2. The order may be issued electronically or magnetically, or manually by a paper document approved by the Department.

3. The administrative order of seizure may also be issued, and shall be effective, if issued to the holder of the property of the obligor or to the person or entity in possession of, or obligated with respect to property or rights to, property of the obligor, if the order is transmitted electronically or magnetically by use of any computer data match process that is based upon any information available to the Department showing that the person whose property is to be seized or encumbered is a child support obligor owing overdue support as defined in this

Chapter.

4. The order shall be based upon any information showing to the Department or its contractors or other agents that the person whose property is to be seized is an obligor owing overdue support as defined in this Chapter.

(b) Seizure Orders for Less Than the Full Amount.

1. When an administrative order is issued by the Department pursuant to any provisions of law or regulations or pursuant to agreements entered pursuant to T.C.A. §45-19-101(a) or (b) directing the encumbrance, escrow, seizure or surrender of assets of an obligor consisting of a demand deposit account, or an account accessible by a check or negotiable order of withdrawal for the purpose of satisfying a lien for past-due child support, the Department may direct that only a portion of such accounts, up to the amount necessary to satisfy the existing lien for past-due child support, be encumbered, escrowed, seized or surrendered.

2. If less than the whole amount of the account is sought, the Department’s order shall direct the financial institution to withhold a specific percentage or a specific dollar amount of those types of accounts.

(9) To satisfy overdue support, an order of seizure or sale may be issued to the obligor if the obligor is in physical possession of property sought to be sold, and the order shall direct that the obligor hold property subject to the provisions of this Chapter.

(10) Duty of Recipient of Administrative Order of Seizure.

(a) Upon receipt of the administrative order of seizure, whether received electronically, magnetically or otherwise, the person or entity which has possession of the assets of the obligor shall immediately seize, hold, and encumber such assets, as directed by the Department, pending further direction from the Department as to the disposition of the assets or pending any further orders of any court of competent jurisdiction.

(b) The person or entity must secure in an escrow account for such purpose, or by such other reasonable means, such assets of the obligor in its possession, and must take any other steps deemed reasonable to preserve any real or personal property.

(c) Upon receipt of directions from the Department that all due process procedures have been completed or were waived in any manner, and subject to the provisions of paragraph (5) and subject to the priority for the Department’s liens as described in Rule

Tenn. Comp. R. & Regs. 1240-02-05-.07 REBUTTABLE PRESUMPTION REGARDING OWNERSHIP

(1) There shall be a rebuttable presumption concerning property which is subject to the provisions of this Chapter, except where otherwise clearly noted by the evidence of title or otherwise, or where legal ownership of property is otherwise clearly stated, that at least onehalf of all real or tangible personal property that is titled to or in the possession of the obligor is owned by the obligor who is subject to the lien provisions of this Chapter.

(2) All jointly held accounts in any financial institution shall be rebuttably presumed to be available in whole to the obligor.

History

• Authority: T.C.A. §§4-5-202; 36-5-901et seq.; 36-5-903, and 36-5-912.
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.08 EXEMPTIONS FROM SALE/ENUMERATION OF EXEMPTIONS

(1) There shall be exempt from sale of personal property subject to lien pursuant to this Chapter:

(a) Wearing apparel and school books. Such items of wearing apparel and such school books as are necessary for the obligor or for members of the obligor’s family and the family bible or other book containing the family’s religious beliefs;

(b) Fuels, Provisions, Furniture, And Personal Effects. If the obligor is the head of the family, so much of the fuel, provisions, furniture, and personal effects in the obligor’s household, and of the arms for personal use, livestock, and poultry of the obligor, as does not exceed five thousand dollars ($5,000) in value; and, (c) Books And Tools Of A Trade, Business, Or Profession. So many of the books and tools necessary for the trade, business or profession of the obligor as do not exceed in the aggregate two thousand five hundred dollars ($2,500) in value.

(2) Appraisal.

(a) The agent of the Department seizing property of the type described in paragraph (1) shall appraise and set aside to the owner the amount of such property declared to be exempt.

(b) If the obligor objects at the time of the seizure to the valuation fixed by the agent making the seizure, the Commissioner or the Commissioner’s agent shall summon three (3) disinterested individuals who shall make the valuation. These individuals shall consist of any persons aged eighteen (18) years of age and above deemed by the Commissioner or the Commissioner’s agent to have sufficient ability to understand the reasons for the valuation and to possess objectivity in the process who are not related to the person and who are not otherwise employed or under contract with the Department or related to an employee or contractor of the Department, and who have demonstrated some experience in the valuation of property.

(3) No Other Property Exempt. No property or rights to property shall be exempt from levy or seizure other than the property specifically made exempt by paragraph (1).

History

• Authority: T.C.A. §§4-5-202; 36-5-901 et seq.; 36-5-906, and 36-5-912.
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.09 PROCEDURES FOR SALE OF PROPERTY

(1) Property Located in the State of Tennessee.

The procedures in this Chapter will be utilized for the sale of real or personal tangible property located within the State of Tennessee which has been subject to an administrative seizure and sale order issued by the Department of Human Services after such order has become final.

(a) The Department of Human Services may utilize the same methods and rules for the seizure and sale of property as are established by the Department of Revenue pursuant to the provisions of Tennessee Code Annotated, Title 67, Chapter 1, Part 14 for the collection of taxes and those rules adopted by the Tennessee Department of Revenue to the extent that the rights and duties set forth therein are consistent with the provisions of state and federal laws administering the child support program established pursuant to Title IV-D of the Social Security Act. All references therein to taxes and taxpayers and collection of taxes shall be interpreted by the Department of Human Services in applying those procedures to relate to the collection of child support and payment of such collections to the state and/or to the obligee of the child support obligation.

(b) The Department of Human Services may contract with the Department of Revenue or any other state agency or private contractor to provide services related to the seizure or disposition of property subject to the liens established by Tennessee Code Annotated, Title 36, Chapter 1, Part 9, or this Chapter.

(2) Property Located in a State Other Than Tennessee.

If an administrative seizure and sale order of the Department of Human Services pertains to real or personal tangible property located in a state other than Tennessee, the laws of that other state will apply to the seizure and sale of that property.

History

• Authority: T.C.A. §§4-5-202, 36-5-901 et seq., 36-5-905, 36-5-912, and 36-5-1006.
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002. Amendment filed August 17, 2005; effective October 31, 2005.

Tenn. Comp. R. & Regs. 1240-02-05-.10 EFFECT OF FINAL ORDER/CONVEYANCE OF TITLE

(1) A final order of seizure or a sale of the obligor’s property pursuant to this Chapter shall be effective to convey and vest title of all assets subject to the order in the Department or in the purchaser that are not inferior to any interest described in 1240-02-05-.05 or subject to the provisions of 1240-02-05-.06(5).

(2) Following the expiration of time for any appeals of the final order of seizure or sale, the Commissioner or the Commissioner’s agent may convey title to personal property by a final order of disposition of assets or by executing a certificate of title or may execute a quitclaim deed conveying title to real property to the purchaser. The purchaser shall be responsible for all costs of recording title to the property conveyed by the Commissioner.

(3) Until real estate is sold, the Commissioner or his or her delegate may, in the exercise of his or her discretion and if such action is deemed to be in the best interest of the Department or the obligee, lease such property to the obligor or any other person considered to be an acceptable lessee by the Commissioner or his or her delegate.

(4) In cases where real estate has or may become the property of the Department in payment of or security for a support obligation and such obligation shall have been paid, together with any interest, penalties and costs thereon, to the Department at any time from the date of the acquisition of such real estate to the date of sale of such to another person, the Commissioner or his or her delegate may release by deed, or otherwise convey, such real estate to the obligor from whom it was taken, or to his or her heirs or other legal representatives.

(5) The Commissioner or his or her delegate shall account for the proceeds of all sales or leases, or releases of the property and for all expenses connected with the maintenance, sale, lease or release of the property, and the net proceeds shall be paid over by the Commissioner or the delegate and distributed as required by law and by the support orders of the court.

History

• Authority: T.C.A. §§4-5-202; 36-5-901et seq., 36-5-905(f), and 36-5-912.
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.11 AUTHORITY OVER SEIZED OR SOLD PROPERTY

(1) The Commissioner or the Commissioner’s agent shall have charge of all real estate or personal property which is or shall become the property of the Department by seizure or judgment under any provision of this Chapter or any other Title of the Tennessee Code Annotated, or which has been or shall be assigned, set off, or conveyed by purchase or otherwise to the Department in payment of child support obligations, debts or penalties arising thereunder, or which has been or shall be vested in the Department by mortgage or other security for the payment for such obligations and of all trusts created for the use of the Department in payment of such obligations, debts or penalties due the Department.

(2) Any assets of the obligor which are vested in the Department may be used as required or permitted under State and Federal law or regulations relative to the distribution and disbursement of support payments collected by a Title IV-D agency, to pay to the obligee for prior child support, medical support or spousal obligations which have remained unpaid or to repay the State of Tennessee or the Federal government for any cash assistance payments made on behalf of a child or the child’s caretaker. Any amount collected on behalf of another State or Territory shall be paid by the Department to that State or Territory’s child support receipting unit.

History

• Authority: T.C.A. §§4-5-202; 36-5-901 et seq.; 36-5-908, and 36-5-912.
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.12 RELEASE OF LIEN

(1) At any time after the child support obligation has been paid, the person holding title to the property on which the lien is placed may request the Department to release the lien. If the Department does not release the lien within sixty (60) days of the request, it shall be liable for court costs in any action to remove the lien if the obligor is the prevailing party.

(2) The Department may cause the issuance of releases of liens by:

(a) Filing the release with the register of deeds or any other appropriate state or local office as provided under any method authorized pursuant to law;

(b) Recording the release of the lien by electronic means as provided by T.C.A. §36-5-907 on the same internet application as the Department utilizes pursuant to T.C.A. § 36-5- 901 for the establishment of liens; or (c) Provision by the Department of copies of the release of liens to any person or entity requesting a release for filing or recording of the release by that person or entity or to release. The copies of the release may be conveyed by facsimile transmission, and may be in such form as Department may prescribe. If a facsimile transmission is utilized pursuant to this paragraph, it shall be supplemented by a copy of suitable quality if the facsimile’s quality is not adequate for purposes of recording by the Register of Deeds or other appropriate official. The obligor is responsible for all costs to have the release filed if necessary.

History

• Authority: T.C.A. §§4-5-202; 36-5-901 et seq.; 36-5-907, and 36-5-912.
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.13 DUE PROCESS PROCEDURES

(1) Administrative Review of the Notice of Lien.

(a) Once a lien has been imposed by the Department of Human Services on real or personal property of the obligor, wherever located, pursuant to the requirements of

Rule 1240-02-05-.13, a party may administratively appeal the criteria in subparagraphs (3)(a) – (c) below, related to the underlying child support obligation and propriety of the lien, at such time as the existence of the lien has actually prevented or is preventing a transaction related to the real or personal property, such as a transfer or sale of the property, referred to herein as an “adverse action.”

(b) The party seeking administrative review of the propriety of the lien shall file a written request for administrative review with the Department within fifteen (15) calendar days of the notice of the adverse action referenced in subparagraph (a) above.

(c) Notwithstanding the location of the real or personal property subject to the lien, all administrative reviews pursuant to this paragraph will be conducted by the Tennessee Department of Human Services according to the requirements of Tennessee law.

(2) Administrative Review of Order and/or Notice of Seizure and Sale of Assets.

(a) Administrative seizure, levy, or sale of real or personal property will be effected according to the laws of the State in which the real or personal property is located.

(b) Administrative review of the propriety of the seizure, levy, or sale of real or personal property will be conducted according to the laws of the State in which the real or personal property is located.

(c) Property Located Within the State of Tennessee.

1. The person seeking administrative review of the Department’s administrative order of seizure, or levy, or sale upon the person’s assets located in the State of Tennessee shall file a written request with the office of the Department indicated in the notice given in Rule 1240-02-05-.06(4) within fifteen (15) calendar days of the date of the notice of seizure or sale.

2. Any person or entity who or which is owner of a joint account in any financial institution, or whose or which property interest has been seized due to the presumption of joint ownership as provided in T.C.A. § 36-5-903, shall have standing to appeal any order or notice of seizure or sale of assets pursuant to this Chapter.

(d) Notwithstanding the requirements of subparagraphs (b) above, administrative review of issues related to the underlying child support obligation on which the seizure, levy, or sale is based will be conducted by the Department pursuant to the laws of the State of Tennessee.

(3) Administrative Review Conducted in the State of Tennessee.

(a) The issues available for administrative review under this Rule shall be limited to:

1. Rule 1240-02-05-.13(3)(a)(1) expired June 30, 2010 as per Public Chapter 1085 of the Acts of 2010.

2. Whether there is a mistake of fact involving the action by the Department;

3. Whether the amount of the obligation is correct;

4. The extent of the obligor’s interest in the assets; and 5. Whether good cause exists not to seize, sell, levy upon, distribute or otherwise dispose of all or a part of such assets.

(b) Upon review pursuant to the criteria of subparagraph (a), the hearing officer may direct that there is a mistake as to the identity or interest of the person whose assets have been seized or levied upon and dismiss the order, or may direct that all or only a portion of the assets be disposed of, or that there be some other order for the disposition of the assets of the obligor in order to satisfy the support arrearage.

(c) The Department’s hearing officer or the reviewing court may grant any relief of a preliminary or temporary nature relative to the obligor’s assets, as may be appropriate under the circumstances, pending the entry of the final order.

(d) The hearing officer may not forgive any support arrearages upon review of any administrative order.

(e) Use of Court and TCSES Records at Hearings.

1. The record of support, as certified by the clerk of the court, or as shown by the Department’s child support computer system (TCSES) shall be admissible in the hearing without further foundation testimony, and shall constitute a rebuttable presumption as to the amount of support which is in arrears and which is owed by the obligor in any review pursuant to this Chapter.

2. The hearing officer shall have no authority to rule the information submitted pursuant to this paragraph is not sufficient for proof of the arrears unless clear evidence is presented by the obligor to overcome the rebuttable presumption established by the clerk’s or the Department’s records.

(f) Use of Affidavits.

1. If submitted to the opposing party ten (10) days prior to the administrative hearing, the affidavit of a keeper or custodian of any other records, including, but not limited to, the records of any financial institution or the Department of Human Services or any other government or private entity, concerning any matter before the hearing officer, shall be admitted by the hearing officer unless an objection to its admission is submitted five (5) days prior to the hearing.

2. If an objection to the admission of the affidavit is filed and is upheld by the hearing officer, the hearing officer shall continue the case to permit the production of records or the taking of any further testimony, which may be necessary to resolve the issues.

(g) In order to expedite the review of these matters, the hearing officer shall have discretion to take testimony of any party or witness by telephone or video or by other electronic technology, and documents may, in the hearing officer’s discretion, be submitted by facsimile transmission or by any other electronic technology.

(h) Judicial review of the Department’s administrative decision shall be conducted according to the provisions of T.C.A. §36-5-1003.

History

• Authority: T.C.A. §§4-5-202; 24-7-121; 36-5-901 et seq.; 36-5-905(c); 36-5-907; 36-5-912; 36-5-1001 et seq.; and 36-5-1001(a)(1)(E).
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002. Repeal and new rule filed August 17, 2005; effective October 31, 2005. Amendment to rule 1240-02-05-.13(3)(a)1. filed October 29, 2009; to be effective January 27, 2010; however on January 26, 2010, the Department of Human Services stayed the rule; new effective date February 26, 2010. Rule 1240-02-05-.13(3)(a)(1) expired June 30, 2010 as per Public Chapter 1085 of the Acts of 2010.

Tenn. Comp. R. & Regs. 1240-02-05-.14 NON-INTERFERENCE WITH DEPARTMENT’S ACTIONS

(1) No person or entity who has been served with an administrative order, administrative subpoena, or request for information or records shall take any measures to defeat the administrative action of the Department during the pendency of the review of such action by the administrative hearing officer or by the reviewing court.

(2) The Department or its contractor may seek injunctive relief to prevent any actions which would defeat its administrative actions.

History

• Authority: T.C.A. §§4-5-202; 36-5-901 et seq.; 36-5-1004, and 36-5-1006.
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.15 LIABILITY FOR FEES AND COSTS

The individual or entity to whom or to which the administrative order is issued pursuant to this Chapter and which is enforced by the reviewing court shall be liable for all costs of the court proceedings, and shall be liable to the Department for the cost of any private or contract or government attorney representing the state and for the time of any of its Title IV-D state office staff or contractor staff utilized in litigating the administrative lien, administrative seizure order, administrative order, administrative subpoena or request.

History

• Authority: T.C.A. §§4-5-202, 36-5-901 et seq.; 36-5-1005, and 36-5-1006.
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002.

Tenn. Comp. R. & Regs. 1240-02-05-.16 CHILD SUPPORT LIEN NOTICE AND INSTRUCTIONS

(1) Description.

(a) The Department or its contractors in the Title IV-D program may use the form in paragraph (2) as necessary to give notice of the existence of the lien in intrastate cases, or, in interstate cases as provided by Federal law. Following the form are instructions for its use.

(b) Forms reproduced for actual transmission to affected persons or entities may also contain highlighting or shading of areas of the forms for easier reading and emphasis of the contents or may contain state logos. Spaces for information indicated on the forms shall be utilized only to the extent applicable in the particular case.

(2) Form.

The form, number OMB-0970-0153, and instructions are available in Adobe PDF at: http://www.acf.hhs.gov/programs/cse/forms/ “Notice of Lien Form and Instructions ”. This form is required by the United States Department of Health and Human Services (HHS) to be used when enforcing child support obligations by lien. It shall be used in intrastate and interstate cases.

History

• Authority: T.C.A. §§4-5-202; 36-5-901 et seq.; and 36-5-912; 42 U.S.C. §§ 652, 654(9)(E); and 666; and United States Department of Health and Human Services Office of Child Support Enforcement Action Transmittal 01-06 (April 4, 2001) and Action Transmittal 05-04 (January 4, 2005).
• Administrative History: Original rule filed December 18, 2001; effective March 3, 2002. Public necessity rule filed May 20, 2005; effective through November 11, 2005. Amendments filed August 17, 2005; effective October 31, 2005. Amendment to rule 1240-02-05-.16(2) filed October 29, 2009; to be effective January 27, 2010; however on January 26, 2010, the Department of Human Services stayed the rule; new effective date February 26, 2010.

Chapter 1240-02-06 Review and Adjustment of Child Support Orders

Tenn. Comp. R. & Regs. 1240-02-06-.01 PURPOSE AND SCOPE OF RULES

(1) These rules establish procedures for the review and adjustment of child support orders being enforced by the Tennessee Department of Human Services under Title IV-D of the Social Security Act, 42 U.S.C. §§ 651-669, and pursuant to the requirement of 42 U.S.C. § 666(a)(10) and T.C.A. § 36-5-103, as amended.

(2) These rules do not apply to child support cases not being enforced by the Department.

(3) These rules are applicable to child support orders being enforced by the Department by judicial order, or administrative order issued by the Department.

History

• Authority: T.C.A. §§ 4-5-202; 36-5-103(f); 71-1-105(1), (12), and (16); 71-1-132; Acts 2004, Ch. 728; 42 U.S.C. § 666(a)(10); 45 C.F.R.§ 303.8.
• Administrative History: Original rule filed October 21, 2004; effective January 4, 2005.

Tenn. Comp. R. & Regs. 1240-02-06-.02 DEFINITIONS

(1) Alternate residential parent—The “alternate residential parent” (ARP) is the parent who is not designated as the primary residential parent. (See paragraph (8)). This parent is also referred to as the “non-custodial parent.”

(2) Caretaker—The person or entity that provides care and supervision of a child on a full-time basis. This person may be a relative of the child who voluntarily or, pursuant to tribunal order or other legal arrangement, is providing care and supervision of the child; or this may be a private or public agency providing custodial care and supervision for the child by voluntary placement by the child’s caretaker, parent or relative or by other designated caretaker or by court order or other legal arrangement.

(3) Custodial parent—For purposes of this Chapter, the parent having primary custody of the child. For purposes of this Chapter, the term has the same meaning as “primary residential parent.”

(4) Department—The Tennessee Department of Human Services.

(5) Non-custodial parent—For purposes of this Chapter, the parent that does not have primary custody of the child. The term has the same meaning as “alternate residential parent.”

(6) Obligee—The person to whom the child support is paid.

(7) Obligor—The person required to pay support.

(8) Primary residential parent—The “primary residential parent” (PRP) refers to the parent designated as such by T.C.A. § 36-6-402, and has the same meaning as the “custodial parent.”

(9) Review and adjustment—The process, required by federal and state law applicable only to Title IV-D child support cases being enforced by the Tennessee Department of Human Services, in which existing orders for child support are evaluated by the Department to determine if they should be increased or decreased or should remain unchanged based upon criteria set forth in state and federal law and this

Chapter.

(10) Significant variance—The standard for modification of a support order required to increase or decrease the amount of a child support order as established in the Department’s child support guidelines.

(11) Substantial change of circumstances—A significant variance as defined in the Department’s child support guidelines.

(12) Title IV-D—The provision of the federal Social Security Act containing requirements for the operation of the federal/state child support program that provides for the establishment, modification and enforcement of child support. The Tennessee Department of Human Services is the Title IV-D enforcement agency for Tennessee.

History

• Authority: T.C.A. §§ 4-5-202; 36-5-103(f); 71-1-105(1), (12), and (16); 71-1-132; Acts 2004, Ch. 549; Acts 2004, Ch. 728; 42 U.S.C. § 666(a)(10); 45 C.F.R.§ 303.8.
• Administrative History: Original rule filed October 21, 2004; effective January 4, 2005.

Tenn. Comp. R. & Regs. 1240-02-06-.03 REVIEW, ADJUSTMENT CYCLES; EVIDENCE STANDARDS

(1) Every three (3) years, in any support order subject to enforcement under Title IV-D of the Social Security Act, the Department shall initiate a review upon request by the custodial or non-custodial parent, or any other caretaker of the child, or, if there is an assignment of support pursuant to T.C.A. § 71-3-101, et seq., the Department shall automatically initiate a review, and, in either case, if appropriate under the child support guidelines, the Department shall seek an adjustment of the support order in accordance with child support guidelines established pursuant to T.C.A. § 36-5-101(e) without a requirement for proof of or showing of any other change in circumstances. Evidence of a “significant variance,” as defined by the Department’s child support guidelines, between the current support order and the amount that would be ordered under the Department's child support guidelines, must be demonstrated to permit an adjustment of the order. The provisions of Chapter 1240-2-4, Child Support Guidelines, must be referenced for further requirements and exceptions relative to application of the significant variance rule.

(2) Between three-year cycles, in any support order subject to enforcement under Title IV-D of the Social Security Act, upon request of the custodial or non-custodial parent, or any other caretaker of the child, or, upon the request of the Department, if there is an assignment of support pursuant to T.C.A. § 71-3- 101, et seq., the Department shall review, and, if the available evidence demonstrates to the Department that there has been a substantial change in circumstances, the Department shall seek an adjustment to the support order in accordance with the guidelines established pursuant to T.C.A. § 36- 5-101(e). For purposes of this subparagraph, a “substantial change in circumstances” shall be a “significant variance,” as defined by the Department’s child support guidelines at Chapter 1240-2-4, between the amount of the current order and the amount that would be ordered under the Department’s child support guidelines.

(3) The review and adjustment in paragraphs (1) and (2) may be conducted by the court, or by the Department by issuance of an administrative order by the Department or its contractors.

History

• Authority: T.C.A. §§ 4-5-202, 36-5-101(e), 36-5-103(f), 71-1-105(1), (12), (15) and (16), 71-1-132; Acts 2004, Ch. 728; 42 U.S.C. §§ 664, 666(a)(10) and 667; and 45 C.F.R. §§ 302.56 and 303.8.
• Administrative History: Original rule filed October 21, 2004; effective January 4, 2005. Amendment filed September 10, 2007; effective November 24, 2007.

Tenn. Comp. R. & Regs. 1240-02-06-.04 NOTICES OF REVIEW, REVIEW ALTERNATIVES AND APPEALS

(1) Form of Notices-Exceptions.

Except as otherwise provided in paragraphs (3) and (4), all notices under this Chapter shall be sent by regular U.S. mail to the non-custodial parent and to the custodial parent or other caretaker of the child at the address provided by them as reflected in the Department’s official child support records.

(2) Notice to Custodial and Non-Custodial Parent and Caretaker of a Requested Review.

(a) When a review is requested by the parties or initiated by the Department, the Department shall give written notice to the non-custodial parent, the custodial parent and/or the caretaker of the child that a review of the order of support has been initiated.

(b) The notice shall include information regarding the opportunity available to the non-custodial parent, the custodial parent and/or the caretaker of the child to present to the Department evidence about income of the parties, expenses for the children, any credits which the party may wish to be considered, or other matters which may have an effect on the appropriate amount of child support due under the child support guidelines.

(c) When the review is complete, the Department shall give written notice of the review findings to the non-custodial parent, the custodial parent and/or the caretaker of the child.

(3) Notice of Intent to Administratively Adjust the Child Support Order.

If the Department elects to seek the adjustment of the support order by issuance of an administrative order, notice of the proposed administrative adjustment to the order of support may be sent by regular U.S. mail, certified mail, return receipt requested, electronic mail, or facsimile transmission to the last known address of the non-custodial parent, the custodial parent and/or the caretaker of the child thirty (30) calendar days prior to the issuance of the administrative order adjusting the order of support; provided, however, if the initial notice is determined to be undeliverable, then before administratively adjusting an order of support, the Department shall ensure that service of the notice of its intent to administratively adjust the support order is confirmed by certified mail or by personal service.

(4) Election by Custodial Parent, Non-Custodial Parent, and/or Caretaker to Utilize Judicial Review of Proposed Adjustment.

(a) The non-custodial parent, the custodial parent and/or the caretaker of the child shall have the right to contest the proposed administrative adjustment to the order of support within thirty (30) days of the mailing date of the notice of the proposed administrative adjustment to the order of support, or within thirty (30) days of the date of service by certified mail or personal service if the initial notice is determined to be undeliverable, by filing a motion for a hearing on the proposed adjustment with the court having jurisdiction to modify the order of support and by providing written notice of the hearing to the Department by copy of such motion.

(b) The review by the court shall be completed within timeframes established by federal law or

regulation, which is one hundred eighty (180) days as of the effective date of this Chapter, or as may be otherwise amended by federal law or regulations.

(c) If the non-custodial parent, the custodial parent and/or the caretaker of the child contests the proposed administrative adjustment pursuant to the procedure in this paragraph, no further administrative appeal to the Department shall be available, and appeal of the determination of the court regarding the support order shall be made pursuant to the Tennessee Rules of Appellate Procedure.

(5) Administrative Adjustment If Judicial Review Is Not Elected.

(a) If, upon receipt of the notice provided by the Department pursuant to paragraph (3) above, neither the non-custodial parent, the custodial parent, nor the caretaker of the child contests the proposed administrative adjustment to the order of support according to the requirements of subparagraph (4)(a) above, the Department shall issue the administrative order adjusting the order of support.

(b) A copy of an administrative order adjusting the child support order shall be sent to the clerk of the court that has jurisdiction over the child support order which has been administratively adjusted, and the administrative order shall be filed in the court record.

(c) A copy of the administrative order shall be sent to the non-custodial parent, the custodial parent and/or the caretaker of the child by the Department by general mail to the last known address shown in the Department’s records with notice to the non-custodial parent, the custodial parent and/or the caretaker of the child of the right to appeal the administrative order adjusting the child support order.

(d) If an order of support is adjusted by administrative order of the Department pursuant to this paragraph, the non-custodial parent, the custodial parent and/or the caretaker of the child shall have the right to administratively appeal the adjustment by requesting the appeal to the Department as provided in T.C.A. §§ 36-5-1001, et seq. and T.C.A. §§ 4-5-301, et seq.

(e) The non-custodial parent, the custodial parent and/or the caretaker of the child may request a stay of the administrative order pursuant to the provisions of the Uniform Administrative Procedures Act compiled in T.C.A. §§ 4-5-303, et seq.

(f) The appeal from any decision resulting from the administrative appeal shall be to the court having jurisdiction of the support order, and shall be subject to the limited scope of review as provided pursuant to T.C.A. § 36-5-1003.

(6) Notice of the right to request a review, and, if appropriate, adjustment of the child support order shall be sent to the non-custodial parent, the custodial parent and/or the caretaker of the child by the Department at least every three (3) years for a child subject to an order being enforced pursuant to Title IV-D of the Social Security Act. The notice may be included in the order.

(7) The review and adjustment may be delayed if the best interests of the child so require. Such interests would include the threat of physical or emotional harm to the child if the review and adjustment were to occur or the threat of severe physical or emotional harm to the child's custodial parent or caretaker.

History

• Authority: T.C.A. §§ 4-5-202; 36-5-103(f); 36-5-807; 71-1-105(1), (12), and (16); 71-1-132; Acts 2004, Ch. 728; 42 U.S.C. § 666(a)(10); 45 C.F.R.§ 303.8.
• Administrative History: Original rule filed October 21, 2004; effective January 4, 2005.

1240-03 Medical Services Division

Chapter 1240-03-01 General Rules

Tenn. Comp. R. & Regs. 1240-03-01-.01 NECESSITY AND FUNCTION

The Department of Human Services has responsibility to determine eligibility for medical assistance in accordance with Title XIX of the Social Security Act and Federal regulations. T.C.A. § 71-5-102 empowers the Department to comply with any requirement that may be imposed or opportunity presented by Federal law for the provision of medical assistance to Tennessee’s indigent citizenry. Federal regulations set forth definitions for words and/or phrases used by the Department in policies pertaining to the provision of medical assistance. [42 C.F.R. § 435.4].

History

• Authority: TCA §§ 4-5-201 et seq., 4-5-202, 71-1-105(12), 71-5-102, 71-5-109 and 71-5-111; 42 U.S.C. §§ 1396 et seq.; and 42 C.F.R. § 435.4.
• Administrative History: Original rule filed June 14, 1976; effective July 14, 1976. Amendment filed June 9, 1981; effective October 5, 1981. Amendment filed April 22, 2008; effective July 6, 2008.

Tenn. Comp. R. & Regs. 1240-03-01-.02 DEFINITIONS

(1) Definitions of terms or phrases utilized in regulations relating to the Medical Assistance Program are as follows:

(a) Aid to Families with Dependent Children (AFDC). Refers to the name of the cash assistance program for Families and Children prior to the passage of the Welfare Reform Act in July 1996.

(b) Aid to Families with Dependent Children – Medicaid Only (AFDC-MO (Section 1931)).

Refers to Section 1931 of the Social Security Act [42 U.S.C. § 1396u-1] which requires that any family group that qualifies for Medicaid based on AFDC-MO regulations prior to July 16, 1996 be tested for eligibility in this group.

(c) Bureau of TennCare (herein referred to as “TennCare” or as “Bureau”). The division of the Tennessee Department of Finance and Administration (the single state Medicaid agency) that administers the TennCare Program. For the purposes of these rules, the Bureau of TennCare shall represent the State of Tennessee and its representatives.

(d) Caretaker relative. The father, mother, grandfather or grandmother of any degree, brother or sister of the whole or half-blood, stepfather, stepmother, stepbrother, stepsister, aunt or uncle of any degree, first cousin, nephew or niece, the relatives by adoption within the previously named classes of persons, and the biological relatives within the previous degrees of relationship, and the legal spouses of persons within the previously named classes of persons, even if the marriage has been terminated by death or divorce, with whom a child is living. A Caretaker relative may be included in the AFDC-MO Category if he/she is related in the previous degrees of relationship with a child in the home who is under age eighteen (18) years of age or a child who has not attained nineteen (19) years of age and who is a full-time student in a secondary school or the equivalent and who is expected to graduate by the nineteenth birthday.

[TCA § 71-3-153]

(e) Categorically Needy. Categorically Needy individuals are entitled to the broadest scope of medical assistance benefits. All recipients of Medicaid based on Section 1931- AFDC-MO and the SSI program for the aged, blind or disabled are Categorically Needy. In addition, many adults, families, pregnant women and children who do not receive cash assistance receive the Categorically Needy level of benefits for Medicaid Only assistance.

(f) CHOICES 217-Like Group. Individuals age sixty-five (65) and older and adults age twenty-one (21) and older with physical disabilities who meet the Nursing Facility (NF) level of care criteria, who could have been eligible for Home and Community Based Services (HCBS) under 42 C.F.R. § 435.217 had the state continued its 1915(c) HCBS Waiver for persons who are elderly and/or physically disabled, and who need and are receiving HCBS as an alternative to NF care. This group exists only in the Grand Divisions of Tennessee where the CHOICES Program has been implemented, and participation is subject to the enrollment target for CHOICES Group 2.

(g) CHOICES Group 1. Individuals of all ages who are receiving Medicaid-reimbursed care in a NF.

(h) CHOICES Group 2. Individuals age sixty-five (65) and older and adults age twenty-one (21) and older with physical disabilities who meet the Nursing Facility level of care and who qualify for TennCare either as SSI recipients or as in an institutional category (i.e., as members of the CHOICES 217-Like demonstration population), and who need and are receiving HCBS as an alternative to NF care. TennCare has the discretion to apply an enrollment target to this group.

(i) CHOICES Member. An individual who has been enrolled by the Bureau of TennCare into the CHOICES Program.

(j) Code of Federal Regulations (C.F.R.). Federal regulations which transfer to regulatory form the specific requirements of Federal law.

(k) Co-insurance. Coinsurance amounts payable by the recipient under the provisions of Title XVIII, Part B for covered medical services rendered under the Medicare Program and becoming due after satisfaction of the deductible liability. [42 U.S.C. §§ 1395j et seq.]

(l) Deductible. Amounts payable by the recipient which fall within an aged beneficiary’s deductible liability imposed by Title XVIII, Part B. Health Insurance for the Aged. [42 U.S.C. §§ 1395j et seq.]

(m) Eligible individual. A person who has applied for medical assistance and has been found to meet all applicable conditions for eligibility pertaining to Tennessee’s Medical Assistance Program.

(n) Enrollment Target. The maximum number of individuals that can be enrolled in CHOICES Group 2 at any given time, subject to exceptions defined by the Bureau of TennCare. The enrollment target is not calculated on the basis of "unduplicated participants." Vacated slots in CHOICES Group 2 may be refilled immediately, rather than being held until the next program year, as is required in the HCBS waiver programs.

(o) Excess income. That portion of the income of the individual or family group, which exceeds amounts allowable to the individual or family group as disregarded income or income protected for basic maintenance and which results in a determination of ineligibility.

1. Excess Resources. That portion of the liquid assets or other resources of the individual or family group in excess of the amounts which may be retained for the individual or family group's security and personal use, not exempted from consideration or otherwise accounted for by special specified circumstances, and which result in a determination of ineligibility.

2. Spenddown. The process by which excess income is utilized for recognized medical expenses and which, when depleted, results in a determination of eligibility if all other eligibility factors are met.

(p) Families First (FF). Tennessee’s TANF program (Temporary Assistance for Needy Families) which provides cash assistance to families with dependent children. [42 U.S.C. §§ 601 et seq.]

(q) Inpatient services. Those services rendered for any acute or chronic condition, including maternal and mental health care, which cannot be rendered on an outpatient

basis.

(r) Joint Custody. Legal custody of a child held simultaneously by two (2) or more caretaker relatives. The caretaker relatives must exercise care and control of the child.

(s) Level 1 Nursing Facility care. The level of Medicaid reimbursement provided for nursing facility services delivered to residents eligible for Medicaid-reimbursement of NF services determined by TennCare to meet the medical eligibility criteria set forth in

Rule 1200-13-01-.10(4) by a NF that meets the requirements set forth in Rule 1200-13- 01-.03, and in accordance with the reimbursement methodology for Level 1 NF Care set forth in Rule 1200-13-01-.03.

(t) Level 2 Nursing Facility care. The level of Medicaid reimbursement provided for nursing facility services delivered to residents eligible for Medicaid-reimbursement of NF services determined by TennCare to meet the medical eligibility criteria set forth in

Rule 1200-13-01-.10(5) by a NF that meets the requirements set forth in Rule 1200-13- 01-.03, and in accordance with the reimbursement methodology for Level 2 NF Care set forth in Rule 1200-13-01-.03.

(u) Long-Term Care Program. One of the programs offering long-term care services to individuals enrolled in TennCare. Long-Term Care Programs include institutional programs (NFs and ICFs/MR), as well as HCBS offered either through the CHOICES Program or through a section 1915(c) HCBS waiver program.

(v) Medicaid. The State program of medical assistance as administered by the Department in compliance with Title XIX of the Social Security Act [42 U.S.C. §§ 1396 et seq.] and which is designed to provide for the medical care needs of Tennessee's medically indigent citizenry.

(w) Medical assistance drug list. A listing of drugs covered under the Medical Assistance Program, which includes the drug code, description, dosage strength, covered unit form, maximum dosage covered, and per unit price.

(x) Medically Needy. Individuals whose income or resources are under a certain limit and allows them to qualify for Medicaid by spending down their medical expenses.

(y) Medicare. The Federal program under Title XVIII of the Social Security Act [42 U.S.C. §§ 1395 et seq.] providing medical benefits to persons receiving Social Security Retirement payments or who have received Social Security benefits based on disability for a period of twenty-four (24) consecutive months.

1. Part A of Title XVIII. Hospital Insurance Benefits provides hospital care, nursing home care, and home health visits, subject to deductibles and co-insurance. [42 U.S.C. § 1395c]

2. Part B of Title XVIII. Supplementary Medical Insurance provides additional medical benefits to those persons eligible for Part A or any person sixty-five (65) years of age, but only if enrolled in the program and paying the monthly premium. [42 U.S.C. § 1395j]

(z) Medicare Savings Program. The mechanisms by which low-income Medicare beneficiaries can get assistance from Medicaid in paying for their Medicare premiums, deductibles, and/or coinsurance. These programs include the Qualified Medicare Beneficiary (QMB) program, the Specified Low Income Medicare Beneficiary (SLMB) program, and the Qualified Individual (QI) program.

(aa) Nursing Facility (NF). A Medicaid-certified NF approved by the Bureau of TennCare.

(bb) Outpatient services. Services provided, in other than inpatient circumstances, for any condition detrimental to the individual recipient’s physical or mental health which cannot be taken care of in the home situation.

(cc) Patient Liability. The amount determined by DHS which a Medicaid Eligible is required to pay for covered services provided by a NF, an ICF/MR, an HCBS waiver program, or the CHOICES Program.

(dd) Program of All-Inclusive Care for the Elderly (PACE). A program for dually eligible enrollees in need of long-term care services that is authorized under the Medicaid State Plan, Attachment 3.1-A, #26.

(ee) Poverty Groups. Assistance groups whose gross income does not exceed various percentages of the Federal Poverty Level Income Standard.

(ff) Qualified Disabled and Working Individual (QDWI). A person who is under age sixtyfive (65) who has lost their Medicare Part A coverage because they returned to work, despite their disability, and have an option to purchase Medicare Part A for an indefinite period and for whom Medicaid pays the Medicare Part A, if income is not more than two hundred percent (200%) of the federal poverty level and resources are not more than twice the SSI limit ($4,000 for an individual, $6,000 for a couple) and is not otherwise eligible for Medicaid.

(gg) Qualified Long Term Care Insurance Policy. A long term care insurance policy issued on or after October 1, 2008, that has been pre-certified by the Tennessee Department of Commerce and Insurance pursuant to State Rule 0780-01-61 as:

1. A policy that meets all applicable Tennessee Long Term Care Partnership requirements; or 2. A policy that has been issued in another Partnership state and which is covered under a reciprocal agreement between such other state and the State of Tennessee.

(hh) Qualified Medicare Beneficiary (QMB). A person who is eligible for Medicare Part A and for whom Medicaid pays the Medicare premium, coinsurance and deductible for Medicare covered services and whose income is not more than one hundred percent (100%) of the federal poverty level and resources are not more than twice the SSI resource limit ($4,000 for an individual and $6,000 for a couple). Effective beginning with January 1, 2010, the resource limit is $6,600 for an individual and $9,910 for a couple.

(ii) Qualifying Individual 1 (QI1) (also referred to as a Specified Low-Income Beneficiary (SLIB)). A person who is eligible on a "first come, first served basis" for Medicaid to pay the Medicare Part B premium, if the individual is eligible to receive Part A Medicare, is not otherwise eligible for Medicaid and income is not more than one hundred thirty-five percent (135%) of the federal poverty level and resources are not more than twice the SSI resource limit ($4,000 for an individual and $6,000 for a couple). Effective beginning with January 1, 2010, the resource limit is $6,600 for an individual and $9,910 for a couple.

(jj) Services. In addition to services related to eligibility for program benefits, services to applicants and recipients shall also include the release of information from program files that is deemed necessary to protect the safety and / or well-being of the applicant / recipient, in the event that the applicant / recipient is reasonably considered to be a danger to him / herself or others based on information provided by the applicant / recipient or his / her household or assistance group. The release of information in these circumstances shall be considered integral to the administration of the program.

(kk) Specified Low-Income Medicare Beneficiary (SLMB). A person who is eligible for Medicare Part A and for whom Medicaid pays Medicare Part B premiums, if income is not more than one hundred twenty percent (120%) of the federal poverty level and resources are not more than twice the SSI limit ($4,000 for an individual, $6,000 for a couple). Effective beginning with January 1, 2010, the resource limit is $6,600 for an individual and $9,910 for a couple.

(ll) Statewide E/D Waiver. The Section 1915(c) HCBS Waiver project approved for Tennessee by the Centers for Medicare and Medicaid Services (CMS) to provide services to a specified number of Medicaid-eligible adults who reside in Tennessee, who are aged or have physical disabilities, and who meet the medical eligibility (or level of care) criteria for reimbursement of Level 1 NF services.

(mm) Supplemental Security Income (SSI). A federal income supplement program funded by general tax revenues and is designed to help aged, blind and disabled individuals who have little or no income. Applications for SSI benefits are filed at the Social Security office. Individuals who are eligible for SSI are automatically entitled to Medicaid. [42 U.S.C. §§ 1382 et seq.]

(nn) Temporary Assistance for Needy Families (TANF). Program which was created by the Welfare Reform Law of 1996. TANF became effective July 1996 and replaced what was then commonly known as the AFDC program. [42 U.S.C. §§ 601 et seq.]

(oo) TennCare CHOICES in Long-Term Care (called "CHOICES"). The program in which NF services for TennCare eligibles and HCBS for individuals aged sixty-five (65) and older and/or adults aged twenty-one (21) and older with physical disabilities are integrated into TennCare’s managed care delivery system.

(2) Definitions of terms or phrases utilized in Medicaid Spenddown, Standard Spend Down and TennCare Standard.

(a) Call-in Line. The toll-free telephone single point of entry used during a period of open enrollment (as announced by the Bureau of TennCare) to enroll new applicants in the Standard Spend Down Program (SSD).

(b) Caretaker relative. The father, mother, grandfather or grandmother of any degree, brother or sister of the whole or half-blood, stepfather, stepmother, stepbrother, stepsister, aunt or uncle of any degree, first cousin, nephew or niece, the relatives by adoption within the previously named classes of persons, and the biological relatives within the previous degrees of relationship, and the legal spouses of persons within the previously named classes of persons, even if the marriage has been terminated by death or divorce, with whom a child is living. A caretaker relative may be considered for SSD if he/she is related in the previous degrees of relationship with a child in the home who is under age eighteen (18) years of age or a child who has not attained nineteen (19) years of age and who is a full-time student in a secondary school or the equivalent and who is expected to graduate by the nineteenth birthday. [TCA §71-3-153]

(c) Continuous eligibility. Enrollment in a Medicaid Medically Needy, Standard Spend Down or TennCare Standard eligibility category with no break in coverage.

(d) Continuous enrollment. Certain individuals determined eligible for the TennCare Program may enroll at any time during the year. Continuous enrollment is limited to persons in the following two (2) groups:

1. TennCare Medicaid enrollees; or 2. Individuals who are losing their Medicaid, who are uninsured, who are under 19 years of age, and who meet the qualifications for TennCare Standard as “Medicaid Rollovers” in accordance with the provisions of these rules.

(e) Open enrollment. A designated period of time determined by the Bureau of TennCare, during which individuals may apply for enrollment in TennCare Standard or Standard Spend Down.

1. The following individuals may apply for TennCare Standard as uninsured or medically eligible persons during a period of open enrollment:

(i) Uninsured individuals whose incomes fall within the poverty levels established for the period of open enrollment being held;

(ii) Individuals qualifying as medically eligible as defined in these rules and whose incomes fall within the poverty levels established for the period of open enrollment being held.

2. Individuals applying for the Standard Spend Down Program may apply during a period of open enrollment announced by the Bureau of TennCare in accordance with these rules.

(f) Standard Spend Down. The demonstration category composed of adults aged twentyone (21) and older who are not eligible for Medicaid but who meet the requirements for Standard Spend Down that are outlined in these rules and those of the TennCare Bureau.

(g) TennCare Standard. That part of the TennCare program which provides coverage for Tennessee residents who are not eligible for Medicaid but who meet the requirements for TennCare Standard that are outlined in these rules and those of the TennCare Bureau.

(h) Transition Group. Existing Medicaid Medically Needy adults age twenty-one (21) or older enrolled as of October 5, 2007, who have not yet been assessed for transition to the Standard Spend Down Demonstration population for non-pregnant adults twentyone (21) or older.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 4-5-208, 71-1-105, 71-1-105(12), 71-3-153, 71-3- 158(d)(2)(D), 71-5-101, 71-5-103, 71-5-111, and 71-5-1401 et seq.; Acts 2007, Ch 31, § 11; Acts 2008, Chapter 1190, 42 U.S.C. § 423, 42 U.S.C. §§ 601 et seq.; 42 U.S.C. §§ 1382 et seq.; 42 U.S.C. § 1382(b), 42 U.S.C. §§ 1395 et seq.; 42 U.S.C. § 1395i-2a] 42 U.S.C. § 1395w-114(a)(3)(D), 42 U.S.C. §§ 1396 et seq., 42 U.S.C. § 1396a(a)(10)(E); 42 U.S.C. § 1396a(e)(4); 42 U.S.C. § 1396d(p)(1), (2) and (3), 42 U.S.C. § 1396d(p)(1)(C), 42 U.S.C. § 1396d(s); 42 U.S.C. § 1396p(b)(1)(C)(iii) and (b)(5), 42 U.S.C. § 1396r and 42 U.S.C. § 1396u-1; 42 C.F.R. § 431.302, 42 C.F.R. § 435.4; 45 C.F.R. § 233.90(c); PL 101- 508 § 5103(e); PL 98-21 § 134, PL 100-203 § 9116, PL 104-193, and PL 109-171 § 6021; PL 110-275, Title I, § 112, TennCare II Medicaid Section 1115 Demonstration Waiver and Acts 2008, Chapter 1190.
• Administrative History: Original rule filed June 14, 1976; effective July 14, 1976. Amendment filed April 23, 1997; effective July 7, 1997. Public necessity rule filed July 2, 2007; effective through December 14, 2007. Amendment filed September 25, 2007; effective December 9, 2007. Public necessity rule filed January 24, 2008; effective through July 7, 2008. Amendment filed April 22, 2008; effective July 6, 2008. Amendment filed February 24, 2009; effective May 10, 2009. Amendment filed August 5, 2009; effective November 3, 2009. Emergency rule filed March 1, 2010; effective through August 28, 2010. Amendment filed May 25, 2010; effective August 23, 2010. Amendment filed July 21, 2010; to have been effective October 19, 2010; a two day stay of effective date was filed September 20, 2010 by the Tennessee Department of Human Services; new effective date October 21, 2010.

Chapter 1240-03-02 Coverage Groups Under Medicaid

Tenn. Comp. R. & Regs. 1240-03-02-.01 NECESSITY AND FUNCTION

The Department of Human Services has responsibility to determine eligibility for medical assistance in accordance with Title XIX of the Social Security Act.

T.C.A. §§ 71-5-102 , 71-5-104 and 71-5-106 empower the Department to comply with any requirement that may be imposed or opportunity presented by Federal law for the provision of medical assistance in Tennessee. Federal regulations set forth the mandatory and optional groups of the Medicaid Program [42 C.F.R. §§ 435.100, 435.200 and 435.300].

History

• Authority: T.C.A. §§4-5-201 et seq., 4-5-202, 71-1-105(12), 71-5-102, 71-5-104, 71-5-106, 71-5-109 and 71-5-111; 42 U.S.C. §§ 1396 et seq.; and 42 C.F.R. §§ 435.100, 435.200 and 435.300.
• Administrative History: Original rule filed June 14, 1976; effective July 14, 1976. Amendment filed June 9, 1981; effective October 5, 1981. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed April 22, 2008; effective July 6, 2008.

Tenn. Comp. R. & Regs. 1240-03-02-.02 COVERAGE OF THE CATEGORICALLY NEEDY

The following groups of categorically needy individuals, if otherwise eligible, are covered:

(1) Recipients Of Cash Assistance (Money Payments).

(a) All individuals receiving foster care maintenance payments or adoption assistance payments under Title IV-E of the Social Security Act are deemed eligible for Medicaid.

(b) All individuals receiving a benefit under Title XVI, Supplemental Security Income Program.

(c) All individuals receiving a State Supplemental payment.

(2) Medicaid Only (Non-Money Payment).

(a) Effective July 1, 2007, Medicaid and Families First de-linked. Eligibility for Families First will no longer mean automatic entitlement to Medicaid coverage. Families First applicants and recipients who also desire Medicaid must apply and have eligibility determined separate and apart from Families First.

1. Medicaid eligibility for Families First applicants and recipients, as well as Medicaid eligibility for those who are not applying for Families First will be considered in the AFDC-MO category. AFDC-MO provides Medicaid under

Section 1931 of Title XIX of the Social Security Act [42 U.S.C. § 1396u-1] to individuals who meet the AFDC eligibility requirements in effect prior to July 16, 1996 in accordance with certain modifications approved by the Centers for Medicare and Medicaid Services (CMS) to Tennessee’s State Plan as outlined in the Attachment 2.6-A, Supplement 12, page 1 and 2 of the State Plan.

(i) An AFDC-MO case terminated for earnings or increased earnings will continue eligible for Medicaid Only for an additional twelve (12) calendar months beginning with the month in which the family becomes ineligible for assistance except for the caretaker who is sanctioned for failure to comply with child support services. [42 U.S.C. § 608(a)(11), 42 U.S.C. § 1315, 42 U.S.C. § 1396u-1, 42 U.S.C. § 1396r-6 and 42 U.S.C. § 1396a(e)(1)]

(ii) Effective July 1, 2007 an AFDC-MO case terminated for receipt of spousal or child support will continue eligible for Medicaid Only for an additional twelve (12) months beginning with the month the family becomes ineligible for assistance.

(b) Any person or family who would be eligible for Families First/AFDC or SSI except for a requirement which is specially prohibited under Title XIX of the Social Security Act.

(c) Any Social Security beneficiary who would be currently eligible for Families First/AFDC or SSI if the Social Security increase in September, 1972, was disregarded, provided:

1. He received Old Age Assistance (OAA), Assistance for the Blind (AB), Assistance for the Disabled (AD), or Aid For Dependent Children (AFDC) in August 1972; and 2. Was also entitled to Social Security monthly benefits for August 1972.

(d) All aged, blind or disabled individuals in skilled or intermediate care as patients in the month of December 1973, who:

1. Would have received an OAA, AB, or AD money payment had they not been in skilled or intermediate care; and 2. Were certified for Medicaid Only on the basis of need for skilled or intermediate care; and 3. Continue to be eligible for Medicaid coverage because they:

(i) Continue to be patients in skilled or intermediate care facilities;

(ii) Continue to require skilled or intermediate care; and (iii) Continue to meet all requirements as an OAA, AB, or AD Medicaid Only care according to policy in effect in December 1973, as contained in Volume II of the Public Welfare Manual.

(e) Any aged, blind, or disabled (AABD) individual who loses eligibility for Supplemental Security Income (SSI) benefits due to a Social Security (Title II) cost of living increase beginning in July 1977, but who would be eligible for SSI if cost of living adjustments received since their SSI termination were disregarded.

(f) Any aged, blind or disabled (AABD) individual institutionalized in a medical institution (i.e., one organized to provide medical care) or in Home and Community Based Services (HCBS) offered either through the CHOICES Program or through a Section 1915(c) of the Social Security Act [ 42 U.S.C. § 1396n(c)] HCBS waiver program who has income equal to or less than three hundred percent (300%) of the SSI Federal Benefit Rate and who meet all applicable technical and financial eligibility criteria.

1. TennCare CHOICES Program has two (2) components:

(i) Nursing Facility Services.

(ii) Home and Community Based Services (HCBS) for adults who are elderly or physically disabled.

2. There are two groups in TennCare CHOICES.

(i) CHOICES Group 1. Participation in CHOICES Group 1 is limited to Medicaid enrollees of all ages who qualify for and are receiving Medicaidreimbursed Nursing Facility services. Medicaid eligibility for long-term care services is determined by the Department of Human Services (DHS).

Medical (or level of care) eligibility is determined by TennCare as specified in Rule 1200-13-01-.10. Persons in CHOICES Group 1 must be enrolled in TennCare Medicaid and qualify for Medicaid-reimbursement of long-term care services.

(ii) CHOICES Group 2. Individuals age sixty-five (65) and older and adults age twenty-one (21) and older with physical disabilities who meet the Nursing Facility level of care and who qualify for TennCare either as SSI recipients or in the CHOICES 217-Like group and who need and are receiving HCBS as an alternative to NF care. Eligibility for the CHOICES 217-Like Group will be determined using the technical and financial criteria of the institutional eligibility category. TennCare has the discretion to apply an enrollment target to this group.

(I) SSI eligibles, who are determined eligible for SSI by the Social Security Administration. SSI eligibles are enrolled in TennCare Medicaid.

(II) The CHOICES 217-Like Group, as defined in Rule 1200-13-01-.02.

Financial and categorical eligibility are determined by the Department of Human Services. Persons who qualify in the CHOICES 217-Like Group in accordance with Rule 1200-13-14-.02 are enrolled in TennCare Standard.

(g) Individuals who would be eligible for cash assistance (Families First/AFDC or SSI) except for their institutional status.

(h) Pregnant women who meet the income and resource standards of the Families First/AFDC cash assistance program. If eligible for and receiving Medicaid on the date of delivery, eligibility automatically continues for two full calendar months, beginning with the month following the month of delivery.

(i) A newborn infant may remain eligible for medicaid for a period of up to one year on the following conditions:

1. The mother was eligible for medicaid at the time the infant was born;

2. The mother would be eligible for medicaid if she were still pregnant; and 3. The child remains in the same household as the mother.

(j) Caretakers and their deprived children to age 21 when income from a sibling(s)

(including half or step sibling) causes ineligibility for money payment.

(k) Pregnant women and infants up to one (1) year old who meet the income standards based on one hundred eighty-five percent (185%) of the federal poverty guidelines for the family size. If an application is made no later than delivery date and the pregnant woman is eligible at any time during the application processing period, eligibility continues without regard to income changes throughout the pregnancy. Eligibility continues for the pregnant woman two (2) full calendar months after the month pregnancy ends regardless of changes in the pregnant woman’s eligibility status. A woman eligible under this subparagraph will receive full coverage in addition to pregnancy-related services. For purposes of this subparagraph, “pregnancy-related services” may mean any service eligible for coverage under the Medicaid program that potentially affects the pregnancy.

(l) Children age six or older who were born on or after October 1, 1983, whose family income does not exceed 100% of the Federal poverty guidelines and who meet all eligibility requirements.

(m) Any aged, blind, or disabled individual who loses eligibility for Supplemental Security Income (SSI) benefits due to any increase in income other than a Social Security (Title II) cost-of-living increase beginning in July 1977, but who would be eligible for SSI if cost of living adjustments received since their SSI termination were disregarded.

(Commonly known as the Pickle Amendment.)

(n) Effective January 1, 1998, individuals who meet eligibility requirements for Specified Low-Income Beneficiaries (SLIB) except that income is greater than one hundred twenty percent (120%) of federal poverty guidelines, but not greater than one hundred thirty-five percent (135%) may be eligible for state buy-in of Part B Medicare premiums, if not currently eligible for or receiving Medicaid or TennCare on “first come, first served” basis up to the State’s allocation of federal funds. This group is referred to as Qualifying Individuals 1 (QI1).

(o) Individuals under age 21 (or to age 22 if completing a course of treatment begun prior to the 21st birthday) receiving inpatient psychiatric care in a facility accredited by the Joint Commission for Accreditation of Hospitals.

(p) Legal aliens; immigrants who are not age sixty-five (65) or older, blind, disabled, or under age eighteen (18); undocumented aliens; and other aliens who do not have permanent resident status, including illegal aliens as specified under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) and the Deficit Reduction Act of 2005 (DRA), if otherwise eligible, may qualify for emergency medical services where the individual has a medical condition, including emergency labor and delivery, manifested by acute symptoms of sufficient severity which, if not attended to immediately, could reasonably be expected to result in placing the patient's health in serious jeopardy, severe impairment to bodily functions, or serious dysfunction of any bodily organ or part.

(q) Pregnant women who meet the applicable income levels for the categorically needy (i.e., those whose total income does not exceed one hundred eighty-five percent (185%) of the Federal poverty guidelines and who are determined eligible by a qualified provider for a presumptive eligibility period in accordance with Section 1920 of the Social Security Act) are eligible for ambulatory prenatal services. Only one (1) presumptive period of eligibility is allowed for each pregnancy.

(r) Qualified Medicare Beneficiaries who are entitled to Medicare Part A may be eligible for a State buy-in of their Medicare premiums, coinsurance and deductibles, if their resources do not exceed two hundred percent (200%) of the SSI resource limit for an individual or couple, as provided at 42 USC § 1382b and whose incomes do not exceed one hundred percent (100%) of the current federal poverty guidelines. Effective beginning with January 1, 2010, the resource limit is $6,600 for an individual and $9,910 for a couple.

(s) Qualified Disabled and Working Individuals who have not attained the age of 65, who would not otherwise be eligible for Medicare, who continue to meet the Social Security Administration's definition of disability or blindness (Title II), and whose entitlement to disability benefits ended solely because such individual's earnings exceeded the substantial gainful activity amount are eligible for a state buy-in of their Medicare Part A premiums, effective July 1, 1990 forward, provided such individual’s income does not exceed 200% of the federal poverty guidelines applicable to a family of the size involved, provided such individual's resources do not exceed twice the maximum amount of resources that an individual or a couple may have under the SSI program and provided that the individual is not otherwise eligible for Medicaid.

(t) Children born on or after October 1, 1983, who have obtained the age of one year old but who have not obtained the age of six years old where family income does not exceed 133% of the Federal poverty guidelines and who meet all eligibility requirements.

(u) Specified Low-Income Medicare Beneficiaries (SLMB) who meet all of the requirements for Qualified Medicare Beneficiaries (QMB) but whose incomes are greater than one hundred percent (100%) but not greater than one hundred twenty percent (120%) of the current federal poverty guidelines may be eligible for state payment of their Part B (medical insurance ) Medicare premiums if not Medicaid eligible.

(v) Disabled Widows and Widowers.

1. Any disabled widows or widowers who are between the ages of 50 and 59 and were entitled to Title II widow and widowers Social Security Benefits during December 1983 and lost their Supplemental Security Income (SSI) benefits under Title XVI as a result of elimination of the actuarial reduction factor in January 1984 but who would have continued SSI eligibility if the Social Security increase, which arose from the elimination of the actuarial reduction factor and all subsequent Cost of Living Adjustments (COLA), is disregarded provided that application for this benefit was made no later than July 1, 1987.

2. Any disabled widow or widower who lost eligibility for SSI benefits because of receiving at age 60 a spouse’s retirement benefit under Title II may remain eligible for Medicaid on the following conditions:

(i) They are not entitled to Medicare Part A coverage; and (ii) They would be eligible for SSI if cost of living adjustments and the spouse’s retirement benefits were disregarded.

3. Any disabled widow(er) or disabled divorced surviving spouse who lost SSI eligibility due to a receipt of Title II benefits which were received pursuant to 1990 changes in disability criteria of 42 USC §423 may remain eligible for Medicaid on the following conditions:

(i) They are not entitled to Medicare Part A coverage; and (ii) They would continue to be eligible for SSI if the Title II benefit was not counted as income.

(w) Disabled adult children who lose SSI eligibility after July 1, 1987 because of the receipt of or an increase in benefits for Disabled Adult Children under Title II will remain eligible for Medicaid if the initial entitlement under Title II above and/or cost of living increase, whichever caused the ineligibility for SSI, were disregarded.

(x) Women who have been found to have breast or cervical cancer including a precancerous condition, through the National Breast and Cervical Cancer Early Detection Program, who are under age sixty-five (65) and are uninsured and not otherwise eligible for Medicaid or receiving TennCare Standard are eligible to receive Medicaid in the Breast and Cervical Cancer category.

(3) Children Under 21 In Special Living Arrangements.

(a) Children in foster care or a subsidized adoptive home;

(b) Children under the supervision of the Department, or approved public child care agency (if the Department is providing some portion of the child’s cost of care), or a licensed private, non-profit child-care or child planning agency; and (c) Who are in need according to the Families First/AFDC-FC Income and Resource Standards.

Authority T.C.A. §§ 4-5-201 et seq., 4-5-202, 4-5-208, 71-1-105(12), 71-3-158(d)(2)(D), 71-5-101, 71-5- 102, 71-5-103, 71-5-106, 71-5-109, 71-5-111 and 71-5-1401 et seq.; Acts 2007, Chapter 31 § 11 and Acts 2008, Chapter 1190; 8 U.S.C. §§ 1611, 1612, 1613 and 1641, 42 U.S.C. § 423 note, 42 U.S.C. § 608(a)(2), 42 U.S.C. § 608(a)(6), 42 U.S.C. § 608(a)(11), 42 U.S.C.§ 672(h), 42 U.S.C. § 673(b), 42 U.S.C. § 1315, 42 U.S.C. §§ 1382 et seq., 42 U.S.C. § 1382b, 42 U.S.C. § 1395w-114(a)(3)(D), 42 U.S.C. §§ 1396 et seq., 42 U.S.C. § 1396a(a)(10)(A)(i), 42 U.S.C. § 1396a(a)10(A)(i)(1V), 42 U.S.C. § 1396a(a)(10)(E); 42 U.S.C. § 1396d(p)(1)(c), 42 U.S.C. § 1396a(e)(1)(A), 42 U.S.C. § 1396a(e)(4)(5) and (6), 42 U.S.C. 1396a(l)(1)(D), 42 U.S.C. § 1396a(aa), 42 U.S.C. 1396b(v)(1), 42 U.S.C. § 1396d(p)(1),(2) and (3), 42 U.S.C. § 1396d(s), 42 U.S.C. § 1396n(c), 42 U.S.C. § 1396r, 42 U.S.C. § 1396r-6, 42 U.S.C.§ 1396u-1; 20 C.F.R. 416.1205(c); 42 C.F.R. §§ 435.4, 435.100, 42 C.F.R. 435.200, and 42 C.F.R. 435.831; PL 94-566 §503; PL 98-21 §134; PL 99-509 §9401; PL 100-203 §9116; PL 101-508 §5103(e), PL 104-193 §§103 and 431 and PL 109-171 § 6036 and 7101; 71 PL 110-275, Title I, § 112, FR 39214 (July 6, 2006), and Acts 2008, Chapter 1190. Administrative History: Original rule filed June 14, 1976.

Amendment filed September 15, 1977; effective October 14, 1977. Amendment filed June 9, 1981; effective October 5, 1981. Amendment filed November 30, 1981; effective January 14, 1982. Repeal and new rule filed August 17, 1982; effective September 16, 1982. Amendment filed October 14, 1983; effective November 14, 1983. Amendment filed January 7, 1985; effective February 6, 1985.

Amendment filed May 23, 1986; effective August 12, 1986. Amendment filed August 9, 1989; effective September 13, 1989. Amendment filed January 31, 1990; effective March 17, 1990. Amendment filed May 1, 1991; effective June 15, 1991. Amendment filed December 30, 1993; effective March 15, 1994.

Amendment filed April 23, 1997; effective July 7, 1997. Amendment filed October 26, 2001; effective January 9, 2002 Public Necessity rule filed June 1, 2007; expires November 13, 2007. Public necessity

rule filed July 2, 2007; effective through December 14, 2007. Amendment filed August 30, 2007; effective November 13, 2007. Amendments filed September 25, 2007; effective December 9, 2007. Amendment filed April 22, 2008; effective July 6, 2008. Amendments filed August 5, 2009; effective November 3, 2009. Emergency rule filed March 1, 2010; effective through August 28, 2010. Amendments filed May 25, 2010; effective August 23, 2010.

Tenn. Comp. R. & Regs. 1240-03-02-.03 COVERAGE OF THE MEDICALLY NEEDY

The following groups of medically needy individuals, if otherwise eligible, are covered:

(1) Pregnant women in one or two-parent families who, but for income and resources, would be eligible as Categorically Needy (Families First/AFDC) and who meet the Medically Needy financial requirements shall remain eligible without regard to income changes and for two (2) full calendar months of postpartum coverage regardless of changes in circumstances.

(2) Aged, blind and disabled non-pregnant individuals age twenty-one (21) and older are no longer eligible for coverage as Medically Needy. Effective April 30, 2005 enrollment in the Medically Needy Category was closed to new enrollees except for children under age twentyone (21) and pregnant women. Currently eligible Medically Needy Adults will be given the opportunity to apply for Standard Spend Down. Individuals who are subsequently approved will be given coverage for a period of twelve (12) months from their begin date.

(a) Prior to actual enrollment in Standard Spend Down, the Transition Group enrollees were looked at for eligibility in an open category of Medicaid through the ex parte review process. Transition Group enrollees not found eligible in an open category of Medicaid, will be selected for Standard Spend Down processing through the Request for Information (RFI) process.

(3) Children under age twenty-one (21), Caretaker.

(a) All children under age twenty-one (21) who meet the Medically Needy technical and financial eligibility requirements. The caretaker of such children is also covered if:

1. The caretaker is pregnant; or 2. The caretaker is under age twenty-one (21).

(b) Both parents of a dependent child, if both parents are under age twenty-one (21) may be covered, if otherwise eligible.

(c) Newborns of women in one or two-parent families are covered effective from date of birth and continue as long as the child is living with the mother and the mother is Medicaid eligible or if she would be Medicaid eligible, if she were pregnant, up to one (1) year.

(4) Pregnant women and children under twenty-one (21) are classified as Exceptional Medically Needy or Spenddown Medically Needy. Persons are exceptional Medically Needy if eligibility is due to their regular monthly income being equal to or below the medically needy eligibility standards.

(5) Whenever a pregnant woman or child under twenty-one (21) has income which prevents their qualifying as Exceptional Medically Needy eligibility on the basis of income, spenddown eligibility is determined pursuant to these rules.

(6) Individuals who meet Standard Spend Down (SSD) criteria:

(a) Tennessee residents who have been determined to be eligible for the Standard Spend Down (SSD) program.

(b) Individuals enrolled must meet the following criteria:

1. Must be aged twenty-one (21) or older;

2. Must not be pregnant; or 3. Must meet one of the following criteria:

(i) Be sixty-five (65) years of age or older, or (ii) Be blind, as defined in rule 1240-03-03-.02(3); or (iii) Be disabled, as defined in rule 1240-03-03-.02(4); or (iv) Be a “caretaker relative” of a Medicaid-eligible dependent child as defined in T.C.A. § 71-3-153; and 4. Must meet the financial eligibility criteria for income and resources that apply to Medically Needy pregnant women and children eligible under the State plan.

These criteria are found at rules 1240-03-03-.05 and 1240-03-03-.06.

History

• Authority: T.C.A. §§4-5-201 et seq., 4-5-202, 71-1-105(12), 71-5-102, 71-5-106 and 71-5-109; 42 U.S.C.§ 1315, and 42 USC §1396 et seq., 42 USC §1396a(a)(10)(A)(ii); PL 100-485 §401; 42 USC §1396a(e)(4) and (1)(1); and 42 CFR §435.831, 42 C.F.R. § 435.210 and 42 C.F.R. § 435.201; and TennCare II Medicaid Section 1115 Demonstration Waiver.
• Administrative History: Original rule filed June 14, 1976; effective July 14, 1976. Amendment filed September 15, 1977; effective October 14, 1977. Amendment filed June 9, 1981; effective October 15, 1981. Repeal and new rule filed August 17, 1982; effective September 16, 1982. Amendment filed January 7, 1985; effective February 6, 1985. Amendment filed February 26, 1985; effective March 28, 1985. Amendment filed September 19, 1985; effective December 14, 1985. Amendment filed May 23, 1986; effective August 12, 1986. Amendment filed May 23, 1988; effective August 29, 1988. Amendment filed August 9, 1989; effective September 23, 1989. Amendment filed January 31, 1990; effective March 17, 1990. Amendment filed August 17, 1992; effective October 8, 1992. Amendment filed December 30, 1993; effective March 15, 1994. Amendment filed April 23, 1997; effective July 7, 1997. Amendment filed October 26, 2001; effective January 9, 2002. Repeal and new rule filed April 22, 2008; effective July 6, 2008.

Tenn. Comp. R. & Regs. 1240-03-02-.04 ENROLLMENT FOR STANDARD SPEND DOWN INDIVIDUALS

(1) Transition Group enrollees not found eligible in an open category of Medicaid, will be selected for Standard Spend Down processing through the Request for Information (RFI) process. The TennCare waiver gives the State the authority to establish an enrollment cap and to limit open enrollment periods to the number of individuals who can be admitted under the cap.

(2) Categories for enrollment in the Standard Spend Down (SSD) program are as follows:

(a) Category 1. People who are not eligible for Medicaid at the time the SSD program is implemented and who meet the criteria for the new SSD program. (Bureau of TennCare will announce open enrollment for SSD).

(b) Category 2. People who, at the time the SSD program is implemented, are eligible for Medicaid in a non-pregnant adult Medically Needy category, who have completed their twelve (12) months of Medicaid eligibility, who have been found to be ineligible for any other Medicaid category, and who have been determined to meet the criteria of the SSD program.

(3) Applicants in the above categories will be enrolled as follows:

(a) Category 1 (applicants who will be allowed to apply when announced by the Bureau of TennCare) will be enrolled only through a single toll-free telephone point of entry (the Call-in Line) initiated in periods of acceptance of new applications. In each open enrollment period, the State will determine a specified number of calls that it will accept through the Call-in Line based on the number of Category 1 applications that, together with projected pending applications from Category 2, the State estimates it can process within Federal timeliness standards. The number of calls to be accepted in open enrollment periods will also be based on the number of remaining slots available under the enrollment target and the number of slots necessary to reserve for non-pregnant Medically Needy adults in Category 2. The State will not accept or track calls received outside of open enrollment periods.

(b) For Category 2 individuals, the State will determine their SSD eligibility on a rolling

basis in conjunction with their termination from Medicaid, and shall reserve sufficient slots within the enrollment target to ensure that all such persons who are eligible may be accepted in the SSD category.

Upon implementation of the SSD program, the State will review all Category 2 individuals for either eligibility in a new Medicaid category or approval as a Standard Spend Down eligible. After the review of all Category 2 individuals is complete and it is determined how many additional enrollees can be added to the SSD program without exceeding the enrollment cap, the State will begin enrolling persons in Category 1.

(4) New open enrollment periods as announced by the Bureau of TennCare. Once the State has reached its targeted enrollment, new open enrollment periods will be scheduled when enrollment in the SSD program drops to ninety percent (90%) of target enrollment. Any subsequent open enrollment periods will remain open until a pre-determined number of calls to the Call-in Line have been received. The number of calls to be received will be based on the State’s determination of the minimum number of applications necessary to fill open slots in the program and the number of applications the State estimates it can process in a timely manner in accordance with Federal standards. The State’s decision to open or close enrollment is a policy decision that is within the State’s discretion and the State is not required to provide fair hearings for challenges to these decisions.

(5) Initial application period for Category 1 (as announced by the Bureau of TennCare).

The State will establish an initial target enrollment figure based on the State’s determination of the minimum number of applications the State estimates it can process in a timely manner in accordance with Federal standards. The State’s decision to open or close enrollment is a policy decision that is within the State’s discretion and the State is not required to provide fair hearings for challenges to these decisions. A toll-free Call-in Line to receive requests for applications will be established and requests will be processed as follows:

(a) Callers to the Call-in Line will be asked for basic demographic information and will be assigned a unique identifier.

(b) After conducting a match to verify that callers are not already enrolled in TennCare Medicaid and if they are not Medicaid-eligible, the State will send each non-enrolled caller a written application form, accompanied by a letter advising the individual of the requirement to complete, sign, and return the application within thirty (30) days.

(Those callers who are already enrolled in TennCare Medicaid will be sent letters advising them that they currently have benefits and need not apply.)

(c) Completed signed applications received by the State by the 30-day deadline established by the State will be evaluated for Medicaid eligibility and SSD eligibility.

Applications received after the deadline will not be reviewed for SSD eligibility but will still be processed for Medicaid eligibility. There will be no “good cause” exception to the written application deadline set by the State. If the State does not receive an application by the deadline, the State will send the individual a letter advising him or her that since no application was received, the State will not make an eligibility determination for him or her, but the individual is free to apply for SSD during any open enrollment period and to apply for Medicaid at any time. No hearings will be granted to individuals concerning this process who have not timely submitted signed applications unless the individual alleges a valid factual dispute that he or she did submit a signed, written application within the deadline.

(d) Since all SSD applications received during an open enrollment period will be processed and either approved or denied, there is no requirement for the State to maintain a “waiting list” of potential SSD applicants. No applications submitted in one open enrollment period will be carried forward to future open enrollment periods. The State will determine SSD eligibility within the timeframes specified by Federal regulations at 42 C.F.R. 435.911; such timeframes will begin on the date a signed written application is received by the State.

(6) Effective date of eligibility. The effective date provisions outlined below only apply to SSD eligibility and do not apply to other categories of TennCare eligibility.

(a) The effective date of SSD eligibility for individuals whose enrollment is originally initiated through the Call-in Line and who submit a timely signed application will be the later of:

1. The date that their call was received by the Call-in Line; or 2. The date spenddown is met (which must be no later than the end of the one month budget period – in this case, the end of the month of the original call to the Call-in Line).

(b) The effective date of eligibility for the Transition Group is the later of:

1. The date of the application; or 2. The date that spenddown is met – in this case, the end of the month that the application is received by the Department of Human Services.

(c) The effective date of eligibility for Medically Needy pregnant women and children under age twenty-one (21) is the later of:

1. The date of application; or 2. The date that spenddown is met – in this case, the end of the month that the application is received by the Department of Human Services.

(7) Period of eligibility. All enrollees in the SSD demonstration category will have an eligibility period of twelve (12) months from the effective date of the eligibility. At the end of the 12month period the enrollee will need to have his eligibility redetermined in order to establish SSD or Medicaid eligibility. The duration of the eligibility period for SSD eligibility is the same as that used for Medically Needy pregnant women and children in TennCare Medicaid.

History

• Authority: T.C.A. §§4-5-201 et seq., 4-5-202, 71-1-105(12), 71-5-102 and 71-5-109; 42 U.S.C. §§ 1396 et seq., 42 U.S.C. § 1396a(a)(10)(A)(ii), 42 U.S.C. § 1396a(e)(4) and 42 U.S.C. § 1315; and TennCare II Medicaid Section 1115 Demonstration Waiver.
• Administrative History: Original rule filed June 17, 1976; effective July 14, 1976. Amendment filed June 9, 1981; effective October 5, 1981. Amendment filed November 30, 1981; effective January 14, 1982. Repeal filed August 17, 1982; effective September 16, 1982. New rule filed April 22, 2008; effective July 6, 2008.

Chapter 1240-03-03 Technical and Financial Eligibility Requirements for Medicaid

Tenn. Comp. R. & Regs. 1240-03-03-.01 NECESSITY AND FUNCTION

The Department of Human Services has responsibility to determine eligibility for medical assistance in accordance with requirements of Title XIX of the Social Security Act. T.C.A. §§ 71-5-102, 71-5-104 and 71-5-106 empower the Department to comply with any requirement that may be imposed or opportunity presented by Federal law for the provision of medical assistance to Tennessee’s indigent citizenry. Federal regulations set forth the resource and income standards and the technical requirements by which eligibility for Medicaid is determined. [42 C.F.R. §§ 435.400, 435.500, 435.600, 435.700 and 435.800].

History

• Authority: T.C.A. §§4-5-201 et seq., 4-5-202, 71-1-105(12), 71-5-102, 71-5-104, 71-5-106, 71-5-109 and 71-5-111; 42 C.F.R. §§ 435.400, 435.500, 435.600, 435.700 and 435.800; and 42 U.S.C. §§ 1396 et seq.
• Administrative History: Repeal and new rule filed June 14, 1976; effective July 14, 1976. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed April 22, 2008; effective July 6, 2008.

Tenn. Comp. R. & Regs. 1240-03-03-.02 TECHNICAL ELIGIBILITY FACTORS

To be eligible for Medicaid, families or individuals, whether classified as Categorically Needy or Medically Needy, must meet the following requirements, where applicable:

(1) Children otherwise covered under 1240-03-02-.02(3) or adults must not be inmates of a public institution, as that term is defined by Federal regulations and policy.

(2) An aged individual must be at least 65 years of age.

(3) A blind individual must meet the definition of blindness as contained in Title II and XVI of the Social Security Act relating to OASDI and SSI, 42 C.F.R. §435.530.

(4) A disabled individual must meet the definition of permanent and total disability as contained in Titles II and XVI of the Social Security Act relating to OASDI and SSI. Eligibility based on disability is determined in accordance with requirements set out by Titles XVI and XIX of the Social Security Act , 42 C.F.R. §§435.540, 435.541, and 435.911. As Tennessee is a 1634 State, the disability decision made by the Social Security Administration (SSA) for Supplemental Security Income (SSI) applicants is binding on the State Agency's decision for Medicaid only based on disability except when the individual applies for:

(a) Medicaid only and has not applied for SSI or has applied for SSI but was ineligible for a reason other than disability; or (b) SSI at the Social Security Administration and applies to the State Agency for Medicaid only and the Social Security Administration does not make a disability determination within 90 days from the date of application for Medicaid only; or (c) Medicaid only and alleges that a different or additional disabling condition exists and was not considered by the Social Security Administration; or (d) Medicaid only more than 12 months after SSI disability denial and alleges that the disabling condition has changed or deteriorated or applies in less than 12 months of the Social Security Administration's determination alleging his/her condition has changed/deteriorated but the Social Security Administration refused to consider these new allegations and/or he/she is no longer financially or technically (other than disability) eligible for SSI.

(5) An individual must be a citizen of the United States, a naturalized citizen, certain American Indians born outside of the United States, or a qualified alien, unless applying for emergency medical services assistance as an illegal or undocumented alien or one lawfully admitted for residence who is not aged, blind, disabled, or under age eighteen (18). Aliens who entered the United States on or after August 22, 1996 have a five (5) year bar before potential eligibility for TennCare Medicaid unless they meet the exceptions to the five (5) year bar as outlined in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).

(a) Each applicant/recipient is required to provide documentary evidence of citizenship and identity when applying for medical assistance. This requirement shall not apply to an individual declaring to be a citizen or national of the United States if they are:

1. A recipient of Medicare; or 2. A recipient of Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI); or 3. A child who is a recipient of foster care or adoption assistance under Title IV-B of the Social Security Act; or 4. A child who is a recipient of foster care or adoption assistance under Title IV-E of the Social Security Act.

(b) All documents must be originals or certified by the issuing agency.

(6) A child up to age twenty-one (21) or a pregnant woman.

(7) An individual must be a resident of the State of Tennessee, as defined by federal regulations at 42 C.F.R. § 435.403, Tennessee Code Annotated § 71-5-120, and as further defined by the Bureau of TennCare.

(8) By accepting medical assistance through the Medicaid program, every recipient is deemed to assign to the State of Tennessee all third party insurance benefits or other third party sources of medical support or benefits. Failure to cooperate in establishing the paternity of dependent children, or in securing or collecting third party medical insurance, benefits or support is grounds for denying or terminating medical eligibility.

(9) Asset Disregards for Qualifying Long Term Care Insurance Policies (a) Individuals who purchase a qualified long term care insurance policy may have certain assets disregarded in the determination of eligibility for TennCare. The Department of Human Services (DHS) shall disregard an individual’s assets up to the amount of payments made by the individual’s qualifying long-term care insurance policy for services covered under the policy at the time of TennCare application.

(b) The amount of the individual’s assets properly disregarded under these provisions shall continue to be disregarded through the lifetime of the individual.

(c) Assets which were disregarded for purposes of Medicaid eligibility determination during the person’s lifetime are also protected from estate recovery. When the amount of assets disregarded during the person’s lifetime was less than total benefits paid by the qualified long term care insurance policy, additional assets may be protected in the estate recovery process up to the amount of payments made by the individual’s qualifying long term care policy for services covered under the policy. If no assets were disregarded during the person’s lifetime, the personal representative may designate assets to protect from estate recovery up to the lesser of the two options specified above, even if a qualified long term care policy’s benefits were not completely exhausted.

(10) Institutionalized individuals in a medical institution (i.e., one organized to provide medical care, including nursing and convalescent care) must be likely to be continuously confined for at least thirty (30) consecutive days going forward, as evidenced by an approved NF Preadmission Evaluation eligibility segment which, when combined with the days already confined, total at least 30 days, prior to attaining Medicaid eligibility based on institutionalization. Medicaid eligibility in a NF is retroactive to the later of: a) the date of admission; or b) the date of application when thirty (30) consecutive days of institutionalization is met. Coverage of Home and Community Based Services (HCBS) offered either through CHOICES Program or through a Section 1915(c) of the Social Security Act HCBS waiver program requires a determination that the individual needs, and is likely to receive, HCBS services for thirty (30) consecutive days going forward. The effective date of eligibility in the CHOICES 217-Like Group shall be the date the application is approved by DHS, unless TennCare has granted Immediate Eligibility pursuant to Rule 1200-13-01- .05(3)(f), in which case, the effective date of eligibility in the CHOICES 217-Like HCBS Group shall be the effective date of Immediate Eligibility granted by TennCare. In no instance shall the effective date of eligibility precede the date the application was filed with DHS.

(11) As a condition of receiving medical assistance through the Medicaid program, each applicant or recipient must furnish his or her Social Security Number (or numbers, if he/she has more than one) during the application process. If the applicant/recipient has not been issued a number, he/she must assist the eligibility worker in making application for a number or provide verification that he/she has applied for a number and is awaiting its issuance.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 71-1-105(12), 71-5-101, 71-5-102, 71-5-103, 71-5-106, 71-5-107, 71-5-109, 71-5-111, 71-5-120, 71-5-141 and 71-5-1401 et seq.; Acts 2008, Chapter 1190; 8 U.S.C. §§ 1611, 1612, 1613, and 1641, 42 U.S.C. § 402, 42 U.S.C. § 423, 42 U.S.C. § 672, 42 U.S.C § 673, 42 U.S.C. § 1315, 42 USC §§ 1382c(a)(3) and (4), 42 U.S.C. §§ 1396 et seq., 42 U.S.C. § 1396a(a)(10)(A)(ii)(I) and (V)(VI); 42 U.S.C. § 1396b(v)(1) and (x)(1), (2) and (3); 42 U.S.C. § 1396d and 42 U.S.C. 1396n(c); 1396(b)(1)(C)(iii) and (b)(5); 42 C.F.R. §§ 435.210, 435.217, 435.300, 435.301, 435.403, 435.406, 435.407, 435.530, 435.540, 435.622, and 435.914(c); PL 104-193 §§ 401, 402, 403 and 431, PL 109-432, Division B, Title IV § 405, December 20, 2006, and PL 109-171 § 6036, 6021; 71 FR 39214 (July 6, 2006); TennCare Medicaid Section 1115 Demonstration Waiver; and Acts 2008, Chapter 1190.
• Administrative History: Repeal and new rule filed June 14, 1976; effective July 14, 1976. Amendment filed September 15, 1977; effective October 14, 1977. Amendment filed June 9, 1981; effective October 5, 1981. Amendment filed August 28, 1981; effective November 30, 1981. Amendment filed November 30, 1981; effective January 14, 1982. Repeal and new rule filed August 17, 1982; effective September 16, 1982. Amendment filed September 4, 1984; effective October 4, 1984. Amendment filed September 19, 1985; effective October 19, 1985. Amendment filed May 23, 1986; effective August 12, 1986. Amendment filed July 31, 1987; effective September 13, 1987. Amendment filed August 9, 1989; effective September 23, 1989. Amendment filed August 17, 1992; effective October 8, 1992. Amendment filed December 30, 1993; effective March 15, 1994. Amendment filed June 5, 1995; effective August 18, 1995. Amendment filed May 1, 2003; effective July 15, 2003. Public Necessity Rule filed June 1, 2007; expired November 13, 2007. Public necessity rule filed July 2, 2007; effective through December 14, 2007. Amendment filed August 30, 2007; effective November 13, 2007. Amendment filed December 11, 2007; effective February 24, 2008. Amendments filed April 22, 2008; effective July 6, 2008. Amendment filed February 24, 2009; effective May 10, 2009. Emergency rule filed March 1, 2010; effective through August 28, 2010. Amendments filed May 25, 2010; effective August 23, 2010.

Tenn. Comp. R. & Regs. 1240-03-03-.03 RESOURCE LIMITATIONS FOR CATEGORICALLY NEEDY

(1) Applicants for medical assistance as Categorically Needy in an AFDC related coverage group are permitted to retain resources as described in rule 1240-01-50-.02 pertaining to the Families First/AFDC cash assistance program. Excluded resources are those excluded in the Families First/AFDC cash assistance program as reflected in rule 1240-01-50-.05 and countable resources are determined by using the Families First/AFDC policy reflected in rule

Tenn. Comp. R. & Regs. 1240-03-03-.04 INCOME LIMITATIONS FOR THE CATEGORICALLY NEEDY

(1) Applicants and recipients for medical assistance as Categorically Needy in an AFDC-MO (Section 1931 of the Social Security Act [42 U.S.C. § 1396u-1]) coverage group are subject to the Centers for Medicare and Medicaid Services (CMS) approved earned income deduction. To calculate the deduction, select the Families First Consolidated Need Standard (CNS) for the appropriate Aid Group (AG) size and subtract ninety dollars ($90) plus thirty dollars ($30) or one hundred and twenty dollars ($120) from the Families First CNS for the AG size. After deducting one hundred and twenty dollars ($120) from the CNS, subtract onethird (1/3) of the balance of the CNS. In addition, subtract the entire amount of the current Families First standard earned income disregard to arrive at the AFDC-MO earned income deduction.

Example: Current CNS for Aid Group size one (1) is $658.

Step 1: Subtract ninety ($90) plus thirty ($30) or $120 from $658. $658 minus $120 is $538.

Step 2: One third (1/3) of $538 is $179. $538 minus $179 is $359.

Step 3: $359 minus $250 (Families First standard earned income disregard) is $109. $109 is the AFDC-MO earned income disregard for a 1 person AG size.

Eligible AFDC-MO applicants and recipients with earned income receive the Families First standard earned income disregard plus the AFDC-MO earned income disregard. In the example above, the AFDC-MO individual would receive a combined earned income deduction of $359.00 ($250 Families First standard earned disregard and $109 AFDC-MO earned income disregard).

(2) Except as otherwise provided in paragraph (3) of this rule, SSI-related coverage groups are subject to income definitions and exclusions from income and policies as provided in 42 C.F.R. § 435.725, 42 C.F.R. 435.1005, 42 U.S.C. § 1382a and at 20 C.F.R. Part 416,

Subpart K Income.

(a) Any aged, blind or disabled individual confined to long term nursing care in a facility must be likely to be continuously confined for at least thirty (30) consecutive days, as evidenced by an approved NF Preadmission Evaluation eligibility segment which, when combined with the days already confined, total at least 30 days, prior to attaining Medicaid eligibility or if enrolled in a HCBS waiver program offered either through the CHOICES Program or through a Section 1915(c) HCBS waiver program and likely to receive HCBS services for at least 30 consecutive days going forward, may have countable income equal to or less than 300% of the SSI/FBR beginning the month of admission.

(b) The otherwise eligible individual confined to a long-term care facility is required to assume some of his/her cost of care.

1. Personal Needs Allowance: $50 for an individual. The personal needs allowance for each person receiving Medicaid in a Nursing Facility or an Intermediate Care Facility for persons with Mental Retardation is $50.

(i) The maximum personal needs allowance for persons participating in CHOICES Group 2 is 300% of the SSI Federal Benefit Rate.

(ii) The maximum personal needs allowance for persons participating in one of the State’s Section 1915(c) HCBS waivers is as follows:

(I) The Statewide HCBS E/D Waiver: 200% of the SSI Federal Benefit Rate.

(II) The Statewide MR Waiver: 200% of the SSI Federal Benefit Rate.

(III) The Arlington MR Waiver: 200% of the SSI Federal Benefit Rate.

(IV) The Self-Determination MR Waiver: 300% of the SSI Federal Benefit Rate.

2. Effective April 1, 2009, spousal dependent allocation not to exceed two thousand seven hundred thirty-nine dollars ($2,739) per family, and adjusted annually per federal law, which includes:

(i) the spousal allocation using a standard maintenance amount (SMA) based upon one hundred fifty percent (150%) of the federal poverty level for two (2) persons for one (1) year divided by twelve (12) months, minus the community spouse’s available countable income in addition to excess shelter expenses that exceed thirty percent (30%) of the SMA, in addition to (ii) The dependent allocation which equals the SMA minus each dependent’s gross countable income divided by three. Department relatives include all individuals who can be or are claimed for Federal income tax purposes by either spouse; and (iii) The Medically Needy Income Standard (MNIS) will be used to determine the dependent allocation when there is no community spouse.

(c) Qualified Medicare Beneficiaries may be income eligible if such an individual's total income does not exceed one hundred percent (100%) of Federal Poverty Guidelines.

(d) The otherwise eligible individual confined to a long-term care facility is required to assume some of his/her cost of care.

The following deductions are made from the total income available for the cost of longterm nursing home care in the following order:

1. Personal Needs Allowance: $50 for an individual.

2. Allocation to eligible dependent(s) at home reduced by the amount of the dependent's own income.

3. Monthly costs for health insurance premium(s) paid by the eligible individual.

4. Payments for medical or remedial care recognized under state law, but not encompassed within the State's Medicaid plan subject to the following criteria.

Non-Covered Medical Expenses (i) Reserved for future use.

(ii) Eyeglasses and necessary related services. Deductions can only be made for the following services and must be the lesser of the provider’s usual and customary charges, billed charges, or the amounts indicated in the TennCare fee schedule.

Examination and refraction Frame Lenses (bifocal)

Lenses (single)

(iii) Hearing aids and necessary related services. Deductions can only be made for the following services and must be the lesser of the provider’s usual and customary charges, billed charges, or the amounts indicated in the TennCare fee schedule.

Audiogram Ear mold Hearing aid Batteries Hearing aid orientation (iv) Dental services.

(I) In addition to the deductions from the total income available for the cost of long-term nursing home care authorized by rules and regulations of the Department of Human Services, Division of Medical Services for an eligible individual confined to a long-term care facility, a deduction shall also be authorized and made from such total income available for the costs of routine and emergency dental services paid by the eligible individual.

(II) Deductions for such routine and emergency dental services, as defined by the Bureau of TennCare, shall only be made for those purposes and in such amounts as determined annually by the Bureau of TennCare’s dental fee listing, whether such services are provided at a dental office, on-site at the long-term care facility, or through a mobile dental services provider that contracts with the long-term care facility.

(v) Specialized chairs such as electric wheelchairs. Deductions will be restricted to the lesser of the Medicare prevailing charges or the Medicaid established fee.

(vi) Charges for nursing home days incurred as the result of bed-holds or therapeutic leave days when the recipient is away from the nursing facility are not allowable deductions. These charges are allowed only when the individual is in an Intermediate Care Facility for the Mentally Retarded (ICF/MR). (TennCare allows a ten (10) day bed hold).

(vii) Charges incurred by the nursing facility for failure to timely submit or renew a previously submitted Pre-Admission Evaluation (PAE) are not allowable deductions .

5. Patient liability overcharges adjustment.

(e) Qualified Disabled Working Individual may be income eligible, if the individual income does not exceed 200% of the Federal Poverty Guidelines.

(f) Specified Low-Income Medicare Beneficiaries (SLMB) may be income eligible, if the individual’s income does not exceed 120% of Federal Poverty Guidelines.

(g) Qualified Individuals 1 (QI-1) may be income eligible if the individual’s income does not exceed one hundred thirty-five percent (135%) of Federal Poverty Guidelines.

(h) Reserved.

(3) Post-eligibility treatment of income for individuals participating in Home and Community Based Services (HCBS) offered either through CHOICES Program or through a Section 1915(c) of the Social Security Act HCBS waiver program will be determined as follows:

(a) Total gross income will consist of the eligible individual's own income after deduction of the personal needs allowance (maintenance need based on the SSI/FBR for an individual living in the home) has been made for the participating individual and spouse, if applicable.

(b) An allocation will be made to the community spouse and/or dependents as indicated in Paragraph (2)(b)2. herein.

(c) Deductions cited in 1240-03-03-.04(2)(d) will be made from the total gross income with the exception of the personal needs allowance.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 4-5-208, 71-1-105(12), 71-5-101, 71-5-102, 71-5-103, 71- 5-106, 71-5-111, 71-5-140, 71-5-147 and 71-5-1401 et seq.; Acts 2008, Chapter 1190; 42 U.S.C. § 1302, 42 U.S.C. § 1382a, 42 U.S.C. § 1382b, 42 U.S.C. §§ 1396 et seq., 42 U.S.C. §§ 1396a(a)(10), 1396a(a)(50) and (51), and 1396a(1), (q) and (r); 42 U.S.C. § 1396d(p) and (s), 42 U.S.C. § 1396a(q), 42 U.S.C. § 1396r-5, 42 U.S.C. §§ 1396r-5(b) and 5(d)(3)(B) and (C); 42 C.F.R. §§ 435.700, 435.725, 435.726, 435.735, and 435.845; PL 99-272, PL 100-360 § 301, and PL 100-360 § 303.
• Administrative History: Repeal and new rule filed June 14, 1976; effective July 14, 1976. Repeal and new rule filed August 17, 1982; effective September 16, 1982. Amendment filed June 27, 1985; effective July 27, 1985. Amendment filed July 31, 1987; effective September 13, 1987. Amendment filed August 5, 1988; effective November 29, 1988. Amendment filed November 30, 1988; effective January 14, 1989. Amendment filed August 9, 1989; effective September 23, 1989. Amendment filed May 1, 1991; effective June 15, 1991. Amendment filed April 23, 1997; effective July 7, 1997. Amendment filed October 26, 2001; effective January 9, 2002. Amendment filed May 1, 2003; effective July 15, 2003. Public necessity rule filed July 2, 2007; expires December 14, 2007. Amendment filed September 25, 2007; effective December 9, 2007. Amendment filed April 22, 2008; effective July 6, 2008. Amendments filed August 5, 2009; effective November 3, 2009. Emergency rule filed March 1, 2010; effective through August 28, 2010. Amendments filed May 25, 2010; effective August 23, 2010.

Tenn. Comp. R. & Regs. 1240-01-50-.06 . Lump sum payments are treated as income in the month of receipt and a resource if retained thereafter.

(2) Applicants for medical assistance as Categorically Needy in an SSI-related category are permitted to retain resources in an amount not to exceed SSI limits except for Qualified Medicare Beneficiaries (QMBs), Specified Low-Income Medicare Beneficiaries (SLMBs), Qualifying Individuals 1 (QI1) (also referred to as Specified Low-Income Beneficiaries (SLIBs)), and Qualified Disabled Working Individuals who are permitted to retain resources in an amount not to exceed two hundred percent (200%) of the SSI limits. Effective beginning with January 1, 2010, the resource limit for QMBs, SLMBs and QI1s increased to $6,600 for an individual and $9,910 for a couple.

(a) Resources excluded from consideration in determination of eligibility for medical assistance are:

1. For SSI related cases (aged, blind, and disabled individuals):

(i) A homestead may be exempt if used as a home by the applicant/recipient, spouse, and/or dependent/relative. If absent from the home with intent to return, an individual may retain a homestead for an unlimited period of time. Based on current market values, individuals with an equity interest in their home greater than five hundred thousand dollars ($500,000) are ineligible for Medical assistance for either institutional care or Home and Community Based Services (HCBS) offered either through the CHOICES Program or through a Section 1915(c) HCBS waiver program. This provision shall not apply with respect to an individual if the spouse of an individual, or such individual’s child who is under age 21, or is blind or permanently and totally disabled is lawfully residing in the individual’s home. Beginning in the year 2011, the five hundred thousand dollar ($500,000) limit on home equity will increase each year. The increase will be based on the percentage increase in the Consumer Price Index (CPI) for all urban consumers, rounded to the nearest one thousand dollars ($1,000).

(ii) All life insurance, if the total face of all policies does not exceed fifteen hundred dollars ($1500) per owner.

(iii) One motor vehicle of unlimited value is excluded in its entirety, if it meets any one of the following conditions:

(I) It is necessary for employment; or (II) It is necessary to obtain medical treatment of a specific or regular medical problem; or (III) It has been modified for operation by or transportation of a handicapped person; or (IV) It is necessary because of climate, terrain, distance, or similar factors to provide transportation to perform essential daily activities.

I. If no motor vehicle is excluded under the above provisions, one motor vehicle is excluded to the extent equity value does not exceed forty-six hundred dollars ($4,600). If the equity value exceeds forty-six hundred dollars ($4,600), the excess is counted against the resource limit.

II. The equity value of any other motor vehicle is counted unless also excludable under 1240-03-03-.03(2)(a)1(iii) above or qualified as property under an approved plan for self-support or necessary for self-support in a business or non-business income producing activity. If no motor vehicle is excluded under the above provisions, one motor vehicle is excluded to the extent equity value does not exceed forty-six hundred dollars ($4,600). If the equity value exceeds forty- six hundred dollars ($4,600), the excess is counted against the resource limit.

III. The equity value of any other motor vehicle is counted unless qualified as property under an approved plan for self-support or necessary for self-support, in a business or non-business income producing activity, or fifteen hundred dollars ($1,500) of the equity value is set aside for burial reserve.

(iv) Personal effects and household goods of two thousand dollars ($2,000) or less equity value.

(v) Property essential to self-support can include real and personal property (for example, land, buildings, equipment and supplies, motor vehicles, and tools etc.) used in a trade or business; nonbusiness income-producing property (such as, houses or apartments for rent, land other than home property, etc.); and property used to produce goods or services essential to an individual’s daily activities. Liquid resources other than those used as a part of a trade or business are not property essential to self-support. If the individual’s principal place of residence qualified under the home exclusion (1240-03-03-.03(2)(a)1(i) above), it is not considered in evaluating property essential to self-support.

(I) Property used in a trade or business or nonbusiness incomeproducing activity.

I. When property is used in a trade or business or nonbusiness income-producing activity, only the individual’s (or spouse, if any) equity in the property is counted. Exclude as essential for self-support up to six thousand dollars ($6,000) in equity and count only the amount that exceeds six thousand dollars ($6,000), if the net income totals at least six percent (6%) of the equity.

II. If the work activity produces less than a six percent (6%) rate of return due to circumstances beyond the individual’s control such as due to illness or crop failure and the individual is expected to resume the activity, the equity up to six thousand dollars ($6,000) continues to be excluded. If the individual’s total equity in the property is producing six percent (6%) income but is over the six thousand dollars ($6,000) equity limit, the amount of equity exceeding the six thousand dollars ($6,000) is counted as a resource.

III. If the individual owns more than one (1) piece of property and each produces income, each is looked at to see if the six percent (6%) rule is met and then the amounts of the individual’s equity in all of those properties producing six percent (6%) are totaled to see if the total equity is six thousand dollars ($6,000) or less. The equity in those properties that do not meet the six percent (6%) rule is counted toward the allowable resource limit of two thousand dollars ($2,000) for an individual. If the total equity in the properties producing six percent (6%) income is over the six thousand dollars ($6,000) equity limit, the amount of equity exceeding six thousand dollars ($6,000) is counted as a resource toward the allowable resource limit.

Example: Charlotte operates a farm. She owns 3 acres of land on which her home is located. She also owns 10 acres of farm land not connected to her home. There are 2 tool sheds and 2 animal shelters located on the 10 acres. She has various pieces of farm equipment that are necessary for her farming activities. We exclude the house and the 3 acres under the home exclusion (20 C.F.R. § 416.1212). However, we look at the other 10 acres of land, the buildings and equipment separately to see if her total equity in them is no more than $6,000 and if the annual rate of return is 6 percent of her equity. In this case, the 10 acres and buildings are valued at $4,000 and the few items of farm equipment and other inventory are valued at $1,500. Charlotte sells produce which nets her more than 6 percent for this year. The 10 acres and other items are excluded as essential to her selfsupport and they continue to be excluded as long as she meets the 6-percent annual return requirement and the equity value of the 10 acres and other items remains less than $6,000.

Additional Example: At redetermination, Mr. Jones (the community spouse) states he now lives in an apartment and has rented the couple’s formerly excluded homestead which has an equity value of $10,000. Although, the property produces a 6% rate of return, $4,000 of its equity cannot be excluded under this subpart (v).

(II) Property that represents government authority to engage in an income-producing activity.

I. Property that represents the authority granted by a governmental agency to engage in an income-producing activity is excluded as property essential to self-support if it is used in a trade or business or nonbusiness income-producing activity or not used due to circumstances beyond the individual’s control and there is a reasonable expectation that the use will resume.

Example: John owns a commercial fishing permit granted by the State Commerce Commission, a boat and fishing tackle.

The boat and tackle have an equity value of $6,500. Last year, John earned $2,000 from his fishing business. The value of the fishing permit is not determined because the permit is excluded under the exception. The boat and tackle are producing in excess of a 6 percent return on the excluded equity value, so they are excluded up to $6,000. The $500 excess value is counted toward the allowable resource limit of $2,000 for an individual.

(III) Property required by employer.

I. Personal property required by the individual’s employer for work is not counted regardless of value, while the individual is employed. Examples of this type of personal property include tools, safety equipment, uniforms and similar items.

(IV) Property used to produce goods or services essential to daily activities.

I. Nonbusiness property is considered to be essential for an individual’s (and spouse, if any) self-support if it is used to produce goods or services necessary for his or her daily activities. This type of property includes real property such as land which is used to produce vegetables or livestock only for personal consumption in the individual’s household (for example, corn, tomatoes, chicken, cattle). Property used to produce goods or services or property necessary to perform daily functions is excluded if the individual’s equity in the property does not exceed six thousand dollars ($6,000).

For example: Bill owns a small unimproved lot several blocks from his home. He uses the lot, which is valued at $4,800, to grow vegetables and fruit only for his own consumption. Since his equity in the property is less than $6,000, the property is excluded as necessary to self-support.

(vi) Burial space for self, spouse and immediate family members.

(I) Burial space is defined to include conventional grave sites, crypts, mausoleums, urns, or other repositories which are customarily and traditionally used for the remains of deceased persons.

(II) Immediate family includes the applicant's or recipient's minor and adult children, step-children, adopted children, brothers, sisters, parents, adoptive parents, and spouses of these persons.

(vii) Funds used to purchase a promissory note, loan or mortgage, if the repayment terms are actuarially sound, provide for payments to be made in equal amounts during the term of the loan with no deferrals or balloon payments, and the balance is not cancelled upon the death of the lender.

(viii) Funds used to purchase a promissory note, loan or mortgage, if the repayment terms are actuarially sound, provide for payments to be made in equal amounts during the term of the loan with no deferrals or balloon payments, and the balance is not cancelled upon the death of the lender.

(ix) Funds, which are not commingled, are subject to the limits specified below, which are designated as set aside for expenses connected with the individual's burial, cremation or other funeral arrangements.

(I) The maximum revocable amount which may be set aside is fifteen hundred dollars ($1,500) for the applicant/recipient and fifteen hundred dollars ($1,500) for his/her spouse.

(II) The maximum revocable amount is reduced by an amount equal to funds held in an irrevocable burial trust, contract or agreement.

(III) The maximum irrevocable burial fund, agreement or contract established by the individual is six thousand dollars ($6,000) plus cost of transporting the body.

(IV) Irrevocable burial contract or agreements established by a funeral home/director for an individual must be a reasonable amount and must have an itemized list of costs, goods and services that reflect fair market value.

(x) Other resources determined to be unavailable to the applicant/recipient due to circumstance beyond his/her control.

(b) In SSI related cases all other resources such as, but not limited to bank accounts, money on hand, stocks, bonds, cash value of life insurance on which the total face value exceed fifteen hundred dollars ($1,500), real property, other than incomeproducing and homestead property (including cemetery plots) not exempt in 1240-03- 03-.03(2)(a)1(i) and (v), non-excluded motor vehicles and revocable burial agreements, unless exempt as in 1240-03-03-.03(2)(a)1(iii) and (viii) shall be counted toward the resource limit per family size.

(c) Resource eligibility will exist for the entire month, if the applicant/recipient's total countable resources are at or below the resource limit at any time during the month in question.

(3) Transfer of Assets.

(a) Countable assets under this paragraph (3) include all real and personal property except a home and title transferred to the individual’s-- 1. Spouse;

2. Minor child under age twenty-one (21) or adult disabled or blind child;

3. Sibling who has equity interest in the property and has resided in the home for at least one (1) year prior to the individual’s institutionalization;

4. Child [other than those in part 2 above] who resided in the home at least two (2) years immediately preceding the individual’s institutionalization and who provided care that permitted the individual to stay in the home rather than a medical or nursing facility; or 5. To another for the sole benefit of the community spouse or the individual’s child who is blind or permanently and totally disabled, or under age twenty-one (21).

(b) The period of ineligibility for nursing home vendor payments through the CHOICES Program for assets transferred within sixty (60) months of application for long term care nursing services will be determined by dividing the uncompensated value of the transferred asset by the average monthly nursing home private pay rate. In determining the penalty for a transfer a State may not round down or disregard any fractional period of ineligibility. There is no limit on the maximum months of ineligibility. The penalty continues until expired unless hardship is considered to exist and the institutionalized individual has no available resources (other than the uncompensated value) in excess of the resource limitations and the application of the penalty will result in loss of essential nursing care, which is not available from any other source.

(c) If an asset has been found to be transferred for less than fair market value within the sixty (60) month look-back period, the penalty period begins the month the individual becomes eligible for nursing home care through the CHOICES Program or the month of the transfer, whichever is later. The penalty period runs consecutively even if the individual leaves the nursing home for a period of time and later returns. If a penalty period is imposed for new applicants, Medicaid requires a notice of penalty. If a penalty period is imposed on an individual who is already receiving Medicaid, a ten (10) day adverse action notice is required.

(d) Any multiple transfers made within the look-back period will be treated as a single transfer and calculated as a single period of ineligibility, which would begin on the date the individual is eligible for medical assistance and would otherwise be receiving institutional level care if not for the imposition of the penalty period, or the date of transfer, whichever is later. For example, if an individual’s spouse makes an uncompensated transfer of assets of one thousand dollars ($1,000) in each of the sixty (60) months of the look-back period, the State would add the transfers together to arrive at a total amount of sixty thousand dollars ($60,000), divide that by the average private pay rate, and impose one continuous period of ineligibility. The penalty period would start with the earliest date specified under Tennessee’s Medicaid plan.

(e) The transfers indicated below, if occurring on or after February 8, 2006, may be considered a transfer of assets for less than fair market value with respect to an individual applying for Medicaid based on institutionalization:

1. If the transfer of assets occurs within sixty (60) months of application for institutional care.

2. If the institutionalized individual, his/her spouse, or any person, court or administrative body with authority to act on behalf of, or at the direction or request of, the individual or his/her spouse, establishes a trust or similar device, which includes the individual’s assets and cannot be used by or for the individual’s benefit, if it occurred within sixty (60) months of application for institutional care.

3. If an asset is held jointly by the institutionalized individual with another person and the individual or other owner reduces or eliminates the institutionalized individual’s ownership or control of the asset.

4. Penalty.

(i) The institutionalized individual may be subject to penalty if the transfer was completed by himself/herself; the individual’s spouse; a person (including a court) or administrative body with legal authority to act in place of, or on behalf of, or at the direction or request of the institutionalized individual or his/her spouse.

(ii) The transfer of assets will be subject to a penalty period of ineligibility for nursing home vendor payments determined by dividing uncompensated value of the transferred asset by the average monthly nursing home charge at the private pay rate unless satisfactory proof is provided that the individual intended to dispose of assets for fair market value; or assets were transferred exclusively for a purpose other than to qualify for Medicaid; or transferred assets have been returned to the individual; or it is determined that the penalty period would work an undue hardship as defined in (3)(b) above.

(iii) Transfer of an asset for individuals enrolled in HCBS either through the CHOICES Program or through Section 1915(c) of the Social Security Act negates any eligibility under 42 C.F.R. § 435.217. The penalty for HCBS waiver recipients is the non-payment for waiver services, the receipt of which is an eligibility requirement for the HCBS category. The individual would remain ineligible until the look back period had expired, or until such time as he/she entered a nursing facility. Upon entry into a nursing facility, the penalty period would commence and continue for the appropriate period of time.

(iv) Assets include all income and resources, including the home, unless transferred as indicated in (a) above, of the institutionalized individual and his/her spouse (including income and/or resources the individual is entitled to, but does not receive because of any action by the individual or his/her spouse, or a person (including a court) or administrative body with legal

authority to represent the individual, his/her spouse, or who acts at the direction or request of the individual and his/her spouse).

(f) Any contractual provision requiring the resident to deposit entrance fees must take into account the required allocation of resources or income to the community spouse before determining the resident’s cost of care. In addition the entrance fee paid to the Continuing Care Retirement Community (CCRC) or life care community is treated as a resource to an individual for purposes of determining Medicaid eligibility. The following three (3) conditions must all be met in order for the entrance fee to be considered an available resource:

1. Any portion of the entrance fee is refunded or used to pay for care under the terms of the entrance contract should other resources of the individual be insufficient; and 2. The entrance fee, or any portion thereof, is refundable under the terms of the contract when the individual dies or terminates the contract and leaves the CCRC or life care community, whether or not any amount is actually refunded; and 3. The entrance fee does not confer an ownership interest in the community.

(g) Funds used to purchase a loan, mortgage or promissory note must be treated as a transfer of assets unless it has a repayment term that is actuarially sound, provides for payments to be made in equal amounts during the term of the loan with no deferral or balloon payment, and prohibits cancellation of the balance upon the death of the lender. If an individual purchases a home from a nursing home applicant and the purchase agreement does not meet the criteria of this subparagraph (g), the value of the home will be the outstanding balance due as of the date of the application for Medicaid.

(h) A life estate interest purchased by a nursing home applicant in another individual’s home shall be treated as a transfer of assets unless the nursing home applicant resides in the home for a period of at least one (1) year after the date of the purchase.

(4) Funds paid into irrevocable burial agreements that are in compliance with T.C.A. §62-5-401 et seq. are not counted as a resource. The agreement must be irrevocable as provided in T.C.A. §62-5-403(a)(2).

(5) Medicaid Qualifying Trust.

(a) Funds from a Medicaid qualifying trust, as defined below, are deemed to be available to the applicant/recipient as provided below when an application for Medicaid is filed on or after June 1, 1986 and a countable resource to that applicant/recipient.

(b) For purposes of this rule, a “Medicaid qualifying trust” is a trust, or similar legal device, established prior to August 11, 1993 (other than by will) by an individual (or an individual’s spouse) under which the individual may be the beneficiary of all or part of the payments from the trust and the distribution of such payments is determined by one or more trustees who are permitted to exercise any discretion with respect to the distribution to the individual.

(c) The amounts from the trust deemed available to an applicant/recipient is the maximum amount of payments that may be permitted under the terms of the trust to be distributed to the applicant/recipient, assuming full exercise of discretion by the trustee or trustees for the distribution of the maximum amount to the applicant recipient.

(d) The provisions of this paragraph shall apply without regard to:

1. Whether or not the Medicaid qualifying trust is irrevocable or is established for purposes other than to enable an applicant/recipient to qualify for Medicaid; or 2. Whether or not the discretion described in subparagraphs (b) and (c) is actually exercised.

(6) Undue hardship shall exist when an application of a transfer of assets provision would deprive the individual of medical care such that the individual’s health or life would be endangered or of loss of food, clothing, shelter, or other necessities of life.

(a) The individual, the individual’s responsible party, or the facility in which an institutionalized individual resides may file an undue hardship claim on behalf of the applicant/recipient. DHS will determine whether a hardship exists and notify the applicant/recipient within thirty (30) days of filing.

(b) If undue hardship is determined not to exist, the denial of undue hardship may be appealed within forty (40) days.

(c) While an application is pending for an undue hardship waiver and the applicant meets the criteria in 1240-03-03-.03 (6) above, the state will provide for nursing facility services in order to hold the bed for the individual at the facility, but not in excess of ten (10) days.

(7) Annuities.

(a) For any new application or recertification for medical assistance for long-term care services, the applicant must include a description and disclosure of any interest the applicant or the community spouse may have in an annuity.

(b) The annuity must be treated as a transfer of assets unless it is irrevocable and nonassignable, actuarially sound, and provides payments in equal amounts during the term of the annuity, with no deferral or balloon payments.

(c) The purchase of an annuity will be treated as a transfer of assets for less than fair market value unless:

1. The State of Tennessee is named as the remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the annuitant. This provision applies to annuities purchased by an applicant or by a spouse, or transactions made by the applicant or spouse.

2. If there is a community spouse and/or a minor or disabled child, the State is named in the next position after those individuals.

(i) If the State has been named after a community spouse and/or a minor or disabled child, and any of those individuals or their representatives dispose of any of the remainder of the annuity for less than fair market value, the State may then be named in the first position.

(ii) A child is considered disabled if he or she meets the definition of disability found at Section 1614(a)(3) of the Social Security Act (42 U.S.C. § 1382c(a)(3)).

(d) In addition to the provisions in (c)1 or 2 above, an annuity purchased by or on behalf of the annuitant who has applied for medical assistance will not be treated as a transfer of assets if the annuity meets any of the following conditions in part 1 or part 2 or all of the conditions in part 3 below.

1. The annuity is – (i) An individual retirement annuity according to section 408(b) of the Internal Revenue Code of 1986 (IRC) (26 U.S.C. § 408(b)), or (ii) Deemed Individual Retirement Account (IRA) under a qualified employer plan according to section 408(q) of the IRC (26 U.S.C. § 408(q)), or 2. The annuity is purchased with proceeds from – (i) A traditional IRA (IRC § 408(a) (26 U.S.C. § 408(a)), or (ii) Certain accounts or trusts which are treated as traditional IRAs (IRC § 408 (c)) (26 U.S.C. § 408(c)), or (iii) Simplified retirement account (IRC § 408 (p)) (26 U.S.C. § 408(p)), or (iv) A simplified employee pension (IRC § 408 (k)) (26 U.S.C. § 408(k)), or (v) A Roth IRA (IRC § 408 (A) (26 U.S.C. § 408(A)), or 3. The annuity meets all of the following— (i) The annuity is irrevocable and non-assignable, (ii) The annuity is actuarially sound, and (iii) The annuity provides payments in equal amounts, with no deferred or balloon payments.

2. If an annuity is absent of such proof as outlined in this subparagraph (d), the purchase of the annuity will be considered a transfer for less than fair market value which is subject to a penalty. The burden is on the institutionalized individual, or his or her representative, to produce the necessary documentation.

(e) The issuer of the annuity must notify the State when there is a change in the disbursement of income or principal from the annuity.

(f) The application for assistance, including the application for recertification, must include for long-term care services the required disclosure under Section 1917(e)(1) and (2) of the Social Security Act (42 U.S.C. § 1396p(e)(1) and (2) ) as provided in subparagraph (a) above. Failure to complete an application form that meets these requirements will not affect the individual’s eligibility for Medicaid; however, the individual will not be eligible for coverage of long-term care services unless the appropriate form is completed and signed.

(g) If the annuity is not subject to penalty as transferred assets, it must still be evaluated as income or resources, including spousal income or resources, and in the posteligibility calculation, as appropriate.

1. A revocable annuity can be canceled and the funds used to purchase the annuity can be refunded to the purchaser. If the owner or payee may be changed, the annuity is assignable and can be sold on the secondary market.

(i) If an annuity meets one or both of the criteria of revocable or assignable, it is a countable resource. If the annuity is revocable, the resource value is the amount that the purchaser would receive if the annuity is canceled. If the annuity is assignable, the resource value is the amount the annuity can be sold for on the secondary market.

(ii) If an annuity purchased by or for an individual who has applied for medical assistance with respect to nursing facility or other long-term care services is a countable resource, it is not treated as a presumptive transfer of assets for less than fair market value. However, assessing an annuity as a countable resource does not preclude an evaluation of the purchase of the annuity as a transfer of assets for less than fair market value if an assessment is warranted based on the circumstances. For example, if an assignable annuity is sold on the secondary market for less than its fair market value, a transfer of assets for less than fair market value may have occurred.

(h) The provisions of this paragraph (7) shall apply to all transactions occurring on or after February 8, 2006, including the purchase of an annuity and any other transaction that changes the course of payments to be made or the treatment of income and principal under an existing annuity, such as additions of principal, elective withdrawals, request to change the distribution of the annuity, elections to annuitize the contract and other similar actions.

(i) Routine changes which occur, based on the terms of an annuity which existed prior to February 8, 2006, and which do not require a decision, election, or action to take effect are not considered a transaction. Routine changes would also include an address change or death or divorce of a remainder beneficiary and other similar circumstances.

1. For example, if an annuity purchased in June 2001 included terms which require distribution to begin five years from the date of purchase, and payouts consequently begin, as scheduled, in June 2006, this will not be considered a transaction since no action was required to initiate the change.

2. Changes which are beyond the control of the individual, such as changes in law, a change in the policies of the issuer, or a change in terms based on other factors, such as the issuer’s economic conditions, are not considered transactions.

(8) Qualified Income Trust (QIT).

(a) Individuals who are receiving or will receive nursing facility services or home and community based services (HCBS) offered either through the CHOICES Program or through a Section 1915(c) HCBS waiver program and whose income exceeds the Medicaid Income Cap (MIC) may establish an income trust, referred to as a Qualified Income Trust (QIT) or “Miller Trust”. Funds placed in a QIT that meets the standards set forth in paragraph (8) are not treated as available resources or income for purposes of determining the individual’s TennCare eligibility.

(b) A QIT is a trust consisting only of the individual’s pension income, Social Security Income, and other monthly income that is created for the purpose of establishing income eligibility for TennCare coverage when an individual is or soon will be confined to a nursing facility, HCBS or ICF/MR waiver program offered either through the CHOICES Program or through a Section 1915(c) HCBS waiver program.

(c) An individual is eligible to establish a QIT if his or her income is above the level at which he or she would be financially eligible for nursing facility, HCBS offered either through the CHOICES Program or through a Section 1915(c) HCBS waiver program, or ICF/MR care under Medicaid.

1. The amount of income that an applicant/recipient places in a QIT cannot be limited nor can it be counted when testing income against the Medicaid Income Cap (MIC). If the applicant/recipient’s income that is not placed in a QIT is over the MIC, the individual is not financially eligible for nursing home Medicaid.

2. This Department of Human Services State Rule 1240-03-03-.03(8) shall apply to an income trust established on or after July 1, 2005 and with the undue hardship provision in Section 1613(e) of the Social Security Act. Hardship may be considered to exist when the institutionalized spouse and/or his/her spouse would have resources in excess of the resource limit, is otherwise eligible and for whom Medicaid ineligibility would result in loss of essential nursing care, which is not available.

(d) A QIT must meet the following criteria:

1. The trust must be irrevocable and cannot be modified or amended in whole or in

part by the Grantor at any time. However, the Trustee or a court of competent jurisdiction shall have the right and jurisdiction to modify any provision of the trust to the extent necessary to maintain the eligibility of the Grantor for medical assistance.

2. Other than disbursements under Part 3 below, each month the Trustee may only make disbursements from the trust for:

(i) A personal needs allowance up to the amount recognized under Tennessee Medicaid policies. As of January 1, 2010, this amount is Fifty Dollars ($50) per month;

(ii) Up to Twenty Dollars ($20) in necessary expenses for management of the trust (i.e., bank charges);

(iii) A spousal income allocation in the amount permitted under Tennessee Medicaid policies;

(iv) Expenses for health insurance premiums for health insurance coverage of the Grantor other than Medicaid; and (v) Expenses for qualifying medical or remedial care received by the Grantor, to the extent such care is recognized under Tennessee law as provided in Department of Human Services State Rule 1240-03-03-.04(2)(d) but not covered as medical assistance under the State’s Medicaid program.

3. Each month the Trustee shall distribute the entire amount of income remaining in the trust after any disbursements made under Part 2 above to the State of Tennessee, Bureau of TennCare (or directly to the nursing facility or HCBS provider or Managed Care Organization (MCO) offered either through the CHOICES Program or through a Section 1915(c) HCBS waiver program, as directed by the Bureau of TennCare), up to the total amount of expenditures for medical assistance for the Grantor.

4. The sole beneficiaries of the trust are the Grantor for whose benefit the trust is established and the State of Tennessee (Bureau of TennCare). The trust terminates upon the death of the Grantor, or if the trust is no longer required to establish Medicaid eligibility in the State of Tennessee, if nursing facility or HCBS offered either through the CHOICES Program or through a Section 1915(c)

HCBS waiver program is no longer medically necessary for the Grantor, or if the Grantor is no longer receiving such services.

5. The trust must provide that upon the death of the Grantor or termination of the trust, whichever occurs sooner, the State of Tennessee (Bureau of TennCare) shall receive all amounts remaining in the trust up to the total amount of medical assistance paid by the State on behalf of the individual.

6. Amounts remaining in the trust that are owed to the State must be paid to the Bureau of TennCare within three (3) months after the death of the individual or termination of the trust, whichever is sooner, along with an accounting of the disbursements from the trust. The Bureau of TennCare may grant an extension if a written request is submitted within two months of the termination of the trust.

(9) Assessment of Resources and Community Spouse Resource Allowance.

(a) Resources owned by either spouse, or by both spouses together, are considered equally available to both spouses at the beginning of a continuous period of institutionalization (i.e., 30 consecutive days in nursing care) for persons institutionalized after September 30, 1989. If an assessment of resources is requested by the institutionalized or community spouse or by either spouse’s authorized representative, an assessment will be made within thirty (30) days of receipt of all relevant documentation from the requesting party(ies). If either spouse is dissatisfied with the Department’s assessment of the community spouse’s resource allowance at the point an application for Medicaid has been filed, either spouse has a right to a fair hearing with respect to the determination, which shall be held within thirty (30) days of the date a request for hearing is made.

(b) The community spouse resource allowance is equal to the greater of:

1. Effective April 1, 2009 one-half (1/2) of the total resources owned by both spouses not to be less than twenty-one thousand nine hundred twelve dollars ($21,912) nor greater than one hundred nine thousand five hundred sixty dollars ($109,560) and adjusted annually per federal law;

2. The amount established after a fair hearing by the Department of Human Services; or 3. The amount transferred under a court order against the institutionalized spouse for the support of the community spouse, using Tennessee’s Medicaid eligibility standards, regardless of any other state laws relating to community property or the division of marital property.

(c) The maximum amount of income of the institutionalized spouse must be allocated to the community spouse before increasing the resource allocation.

(d) Spouses must be legally married pursuant to the laws of the State of Tennessee; and (e) The community spouse resource allowance determined by the assessment will be deducted from the value of all available resources owned by both spouses as of the first month for which assistance is requested. After the initial month of eligibility, no resources of the community spouse will be considered available to the institutionalized spouse.

(f) Allocation of Additional Resources to the Community Spouse.

1. Additional resources may be allocated to the community spouse through the administrative appeals process, in accordance with the criteria specified below, in order to make up any shortfall between the allocation of income as specified in

Tenn. Comp. R. & Regs. 1240-03-03-.05 RESOURCE LIMITATIONS FOR THE MEDICALLY NEEDY AND STANDARD

SPEND DOWN.

(1) Applicants for medical assistance are permitted to retain resources in an amount not to exceed the SSI limits. An additional $100 in resources is allowed for each additional person in AFDC related coverage groups over those provided for in the SSI regulations.

(2) Excluded Resources.

(a) Resources excluded from consideration in the determination of eligibility for AFDC related medical assistance are those excluded in the Families First/AFDC cash assistance program in rule 1240-01-50-.05.

(b) Resources excluded from consideration for Standard Spend Down and institutionalized individuals who are aged, blind and disabled are those excluded by SSI regulations at 20 C.F.R. Part 416.

(3) Countable Resources.

(a) Countable resources for AFDC related cases are determined by using the policies of the Families First/AFDC cash assistance program as reflected in rule 1240-01-50-.06.

(b) Countable resources for Standard Spend Down and institutionalized individuals who are aged, blind and disabled are determined by using SSI policy at 20 C.F.R. Part 416 and as indicated in Rule 1240-03-03-.03(9) for institutionalized individuals with a spouse living in the community.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 4-5-202, 71-1-105(12), 71-5-102, 71-5-106, and 71-5-109; 42 U.S.C. §§ 1396 et seq., 42 USC §1396r-5 and 42 U.S.C. § 1315; 42 C.F.R. § 435.845; 20 C.F.R. § 416.1205(c); PL 98-369 §2611, PL 99-272 §§ 9501 and 9506, PL 100-360 §303.
• Administrative History: Repeal and new rule filed June 14, 1976; effective July 14, 1976. Amendment filed April 28, 1980; effective July 12, 1980. Repeal and new rule filed August 17, 1982; effective September 16, 1982. Amendment filed February 26, 1985; effective March 28, 1985. Amendment filed May 8, 1987; effective August 29, 1987. Amendment filed March 7, 1988; effective June 29, 1988. Amendment filed August 9, 1989; effective September 23, 1989. Amendment filed May 1, 1991; effective June 15, 1991. Amendment filed April 23, 1997; effective July 7, 1997. Amendment filed April 22, 2008; effective July 6, 2008.

Tenn. Comp. R. & Regs. 1240-03-03-.06 INCOME LIMITATIONS FOR THE MEDICALLY NEEDY AND STANDARD SPEND

DOWN.

(1) In medically needy cases for pregnant women and children under age twenty-one (21), countable income is determined by using the Families First/AFDC cash assistance program’s income definitions and policies. Refer to Families First/AFDC income rules 1240-01-50-.08,

Tenn. Comp. R. & Regs. 1240-01-50-.10 through 1240-01-50-.15, 1240-01-50-.16, and 1240-01-50-.17 through 1240- 01-50-.19, with the following exceptions:

(a) The earned income disregard of thirty dollars ($30.00) plus one-third (1/3) of the remainder is granted in a medically needy case only if the applicant has received Families First/AFDC in at least one (1) of the last four (4) months. In such a situation the disregard is applied only for a four (4) month period.

(b) The maximum cap or gross income of one hundred eighty-five percent (185%) of the Families First/AFDC need standard does not apply to medically needy due to the spend-down provision.

(2) Persons applying as Medically Needy must have a deduction for incurred cost of medical/health insurance premiums, deductibles and co-payments.

(a) Costs incurred for medical insurance premiums, co-payments and deductibles; and (b) Expenses incurred for necessary medical and remedial services that are recognized under State law, but not included in the State plan for medical assistance.

(3) Determination of countable income of an individual or family.

(a) The countable income of an individual or family, once determined, is tested against the following standard, depending upon the number of individuals for whom application is made:

Size of Family Monthly Two hundred forty-one dollars ($241) (effective July 1, 1999) 2 and above One hundred thirty-three and one-third percent (133 1/3%) of the maximum money payment which could be made to a family of the same size under Families First/AFDC (Refer to Families First Handbook for payment levels and ratably reduced standard of need.)

(4) Countable medical or remedial expenses for determination of spenddown eligibility.

(a) Medical and remedial expenses that remain unpaid, have not been written off by the health care provider, and that are the client’s responsibility, may, pursuant to this paragraph (4), be applied to any excess income to reduce income in order to qualify for eligibility in the spenddown category.

(b) For new applicants during open enrollment periods as announced by the Bureau of TennCare or persons currently Exceptionally Eligible who did not meet spenddown criteria in order to qualify during their last eligibility determination, the following medical/remedial expenses will be counted toward the reduction of income in the Standard Spend Down coverage group:

1. Expenses incurred during the month of application, whether paid or unpaid;

2. Expenses paid during the month of application, regardless of when such bills were incurred;

3. Expenses incurred during the three (3) calendar months prior to the month of application whether paid or unpaid.

(i) Expenses paid during the three (3) calendar months prior to the month of application will not be counted unless such expenses were also incurred during those three (3) calendar months.

(ii) Any expenses incurred before the three (3) calendar months prior to the month of application will not be counted unless payment is made on those expenses during the month of application, in which case only the amount paid during the month of application is counted.

(iii) When any new applicants apply again after their first year of eligibility, countable medical or remedial expenses will be limited to the expenses incurred or paid as described in parts 1, 2 and 3(i) and (ii) to expenses for the new month of application and three (3) calendar months prior to the new month of application, plus any unpaid expenses that were previously verified and documented as part of this new spenddown process, i.e., only those expenses incurred or paid during the month of application and expenses incurred during the three (3) calendar months prior to that month of application. Verified expenses can be carried over as long as the individual remains continuously eligible, the expenses remain unpaid and are not written off by the provider. If the individual loses eligibility at any point, or if the individual ever qualifies as Exceptionally Eligible in the future, the carryover of unpaid medical expenses ends, and the individual is limited to the expenses listed in subparagraph (b)1, 2 and 3(i) and (ii).

(iv) When an Exceptionally Eligible individual re-applies, no carryover of expenses is permitted because spenddown criteria were not required to qualify as Exceptionally Eligible, and the individual is limited to the expenses listed in (b)1, 2, and 3(i) and (ii). If thereafter, the individual does have to meet spenddown criteria to re-qualify, then, for the continuous eligibility period thereafter, applicable expenses that were verified and documented in any eligibility determination, after the period in which the person qualified as Exceptionally Eligible, that remain unpaid will be counted. Any medical/remedial expenses that otherwise may have been used to qualify for medically needy coverage under spenddown criteria in the period prior to the period in which the individual did not have to meet spenddown criteria to qualify for medically needy coverage cannot be carried over in order to establish eligibility.

(c) For current medically needy eligibles, the following medical/remedial expenses will be counted toward the reduction of income in medically needy coverage groups:

1. Expenses incurred during the month of application, whether paid or unpaid;

2. Expenses paid during the month of application, regardless of when such bills were incurred;

3. Expenses incurred during the three (3) calendar months prior to the month of application; whether paid or unpaid.

(i) Expenses paid during the three (3) calendar months prior to the month of application will not be counted unless such bills were also incurred during those three (3) calendar months.

(ii) Any expenses incurred before the three (3) calendar months prior to the month of application will not be counted unless:

(I) Payment is made on those expenses during the month of application, in which case only the amount paid during the month of application is counted; or (II) All of the following are satisfied:

I. Those expenses were previously verified in order to meet spenddown criteria;

II. The individual has remained continuously eligible in a spenddown category since that time;

III. The individual met a spenddown criteria during each period of eligibility in order to qualify; and IV. The expenses remain unpaid and have not been written off by the provider.

A. When the circumstances of subitem (II)IV exist, the carryover that has not been previously deducted from income for purposes of qualifying for spenddown can be applied. The carryover expense can include an unused portion or an entirely unpaid expense.

B. Only in cases of individuals who are currently eligible, expenses incurred before the three (3) calendar months prior to the initial month of application may be carried over, but only unpaid expenses that were previously verified and documented in the DHS eligibility data system as part of the spenddown process will be counted. Expenses that had not been provided earlier to determine eligibility cannot be counted.

C. To be counted, the expenses must have remained unpaid, and only the portions not used earlier to qualify under spenddown criteria are counted.

4. Not all expenses incurred during the entire continuous eligibility period will be counted towards spenddown eligibility. Only expenses identified in (c)1, 2 and 3 above including qualifying carryover expenses from earlier spenddown determinations will be counted.

5. When a gap in eligibility occurs or there is any period of eligibility in which the individual has no excess income, the individual must re-qualify under subparagraph (b) above.

(5) Patient liability for institutionalized individuals whose gross income exceeds the categorical Medicaid income cap and the individual has established a qualified income trust will be determined by using the deductions listed within rule 1240-03-03-.04(2)(d) and by comparing the remainder to the Medicaid reimbursement rate for the long-term care being provided.

History

• Authority: T.C.A. §§ 4-5-201 et seq, 4-5-202, 71-1-105(12) 71-5-102, 71-5-106 , 71-5-109; 42 U.S.C. §§ 1396 et seq, 42 USC §1396r-5 and 42 U.S.C. § 1315, 42 U.S.C. §1396a(a)(10)(A)(ii)(I); 20 C.F.R. § 416.1205(c), 42 C.F.R. 435.210, 435.300, and 435.301; 42 USCA §1396a(a)(17)(D) and (q); 42 C.F.R. §§435.831, 435.832, 435.845, and 435.1007; PL 98-369 §2611, PL 99-272 §§ 9501 and 9506, PL 100- 360 §303; and TennCare II Medicaid Section 1115 Demonstration Waiver.
• Administrative History: Repeal and new rule filed June 14, 1976; effective July 14, 1976. Amendment filed September 15, 1977; effective October 14, 1977. Amendment filed June 9, 1981; effective October 5, 1981. Repeal and new rule filed August 17, 1982; effective September 16, 1982. Amendment filed September 4, 1984; effective October 4, 1984. Amendment filed May 23, 1986; effective August 12, 1986. Amendment filed July 23, 1986; effective October 29, 1986. Amendment filed May 8, 1987; effective August 29, 1987. Amendment filed March 7, 1988; effective June 29, 1988. Amendment filed April 8, 1988; effective July 27, 1988. Amendment filed August 9, 1989; effective September 23, 1989. Amendment filed May 1, 1991; effective June 15, 1991. Amendment filed August 17, 1992; effective October 8, 1992. Amendment filed December 30, 1993; effective March 15, 1994. Amendment filed April 23, 1997; effective July 7, 1997. Amendment filed October 26, 2001; effective January 9, 2002. Public necessity rule filed January 24, 2008; effective through July 7, 2008. Amendments filed April 22, 2008; effective July 6, 2008.

1240-04 Standards for Regulated Institutions

Chapter 1240-04-01 Licensure Rules for Child Care Agencies

Tenn. Comp. R. & Regs. 1240-04-01-.01 through 1240-04-01-.19 apply to all licensed categories of child care agencies unless otherwise noted within the rules. The requirements set forth in 1240-04-01- .20 through 1240-04-01-.23 apply to the specific class of care identified in each section.

(3) Purpose of Licensing.

(a) The purpose of licensing is the protection of children while under the care of child care agencies licensed by the Department of Human Services and to promote developmentally appropriate practices that enhance early learning and foster parental engagement.

(b) The basic requirements in these rules seek to maintain the adequate health, safety, and supervision of children while in a licensed care setting.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-1-105; 71-1-105(a)(5) and (a)(12); 71-3-501, et seq.; and 71-3-502(a)(2); and Acts 2000, Ch. 981, §§ 8 and 14.
• Administrative History: Original rule certified June 10, 1974. Amendment filed March 16, 1978; effective April 17, 1978. Amendment filed March 17, 1980; effective June 29, 1980. Repeal and new rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed April 30, 1996; effective July 14, 1996. Amendment filed September 29, 2000; effective December 13, 2000. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022.

Tenn. Comp. R. & Regs. 1240-04-01-.02 DEFINITIONS

(1) Active Play. Activity that is appropriate for a child’s age and abilities, involves moving the whole body and makes the heart beat faster, and includes any activity that involves moderate to vigorous bursts of high energy.

(2) Administrative Closure. Closure of an incomplete application after notification of deficiencies.

(3) Administrative Hearing. A hearing that is held under the Uniform Administrative Procedures Act, Title 4, Chapter 5, Part 3 of the Tennessee Code Annotated, rather than a court of law, that is conducted by an administrative law judge from the Secretary of State’s Office or by an administrative hearing officer of the Department of Human Services. The purpose of the hearing is to allow a child care agency the opportunity to challenge legal enforcement actions taken by the Department.

(4) Ambulation. The ability to walk from place to place.

(5) Applicant. The owner or owner’s authorized representative who is required, pursuant to the provisions of these rules, to sign the application for a license.

(6) Armed Security Guard/Officer. A security guard/officer who at any time wears, carries, possesses or has access to a firearm or any facsimile of any firearm that may leave the impression that the person is armed and who works in plainclothes or wears dress of a distinctive design or fashion or dress having any symbol, badge, emblem, insignia or device that identifies or tends to identify the wearer as a security guard/officer.

(7) Auxiliary Staff. Full- and part-time employees of the child care agency who do not provide caregiving services, including but not limited to custodial, food service and maintenance staff.

(8) Child or Children. A person or persons under eighteen (18) years of age.

(9) Child Care. As defined by T.C.A. § 71-3-501, the provision of supervision and protection, and meeting, at a minimum, the basic needs of a child for less than twenty-four (24) hours a day.

(10) Child Care Agency or Agency. A place or facility, regardless of whether it is currently licensed, that is operated as a “family child care home,” a “group child care home,” a “child care center,” or a “drop-in child care center,” that provides child care for three (3) or more hours per day to five (5) or more children who are not related to the primary educator.

(11) Child Care Agency Board of Review. A committee established to review actions initiated by the Department of Human Services and the Department of Children’s Services to deny, revoke, or otherwise limit any license, except for summary suspension of, or probation involving, a license; any civil penalties imposed by the Department of Human Services; or any safety plan implemented by the Department of Human Services that will be, or has been, in effect ninety (90) days or more.

(12) Child Care Center. Any place or facility operated by any person or entity that provides child care for three (3) or more hours per day for at least thirteen (13) children who are not related to the primary educator.

(13) Child Development Associate (CDA). A person who has earned an early childhood educational credential granted by the National Council for Professional Recognition. This credential is only recognized, for purposes of these rules, if issued by the above named organization.

(14) Commissioner. The Commissioner of the Department of Human Services.

(15) Communicable Disease. An illness due to an infectious agent which is transmitted directly or indirectly to a well person from an infected person.

(16) Continuous License. A license issued to a child care agency following its provisional licensure period and after the agency has demonstrated its ability to attain and maintain compliance with all licensing laws and regulations.

(17) Curriculum. A planned program of activities and experiences that promotes learning and social and emotional development and includes the content that children are to learn, the processes through which children achieve the identified curricular goals, what educators do to help children achieve these goals, and the context in which teaching and learning occur.

(18) Department (DHS). The Tennessee Department of Human Services and its authorized representatives.

(19) Developmentally Appropriate Practice (DAP). Principles and guidelines that are appropriate to each child’s age and developmental status and responsive to the social and cultural context in which they live.

(20) Director. The on-site child care center staff member who has responsibility for the overall operation of the center.

(21) Drop-In Child Care Center.

(a) A place or facility operated by any person or entity providing child care, at the same time, for fifteen (15) or more children, who are not related to the primary educator, for short periods of time, not to exceed fourteen (14) hours per week and for not more than seven (7) hours per day for any individual child during regular working hours (Monday- Friday, 6:00 a.m. to 6:00 p.m.).

(b) A drop-in center may provide child care during evenings (after 6:00 p.m.) and weekends (Friday, 6:00 p.m - Sunday, 10:00 p.m.) so long as the drop-in center provides no more than a total of twenty (20) hours per week, exclusive of snow days when the school of the affected child is closed.

(c) Training requirements for the staff of this class of child care agency shall be limited to basic health and safety precautions and the detection and reporting of child abuse and neglect for children in care.

(d) Drop-in centers that provide child care for no more than two (2) hours per day with a maximum of ten (10) hours per week without compensation, while the parent/guardian or other custodian is engaged in short-term activities on the premises of the organization, shall register as providing casual care and shall not be deemed to be a drop-in center or regulated as a drop-in center.

(22) Educator. An adult individual, whether paid or unpaid, including the Primary Educator, who is responsible for meeting the supervision, protection, and basic needs of the child, and who is used to meet the adult:child ratios required by these rules. For the purposes of these rules the term educator is equivalent to caregiver as defined by T.C.A. § 71-3-501.

(23) Family Child Care Home. Any place or facility which is operated by any person or entity that provides child care for three (3) or more hours per day for at least five (5) children, but not more than seven (7) children who are not related to the primary educator.

(24) Field Trip. Any off-site activity which occurs away from the general premises of the child care agency’s licensed facility.

(25) Five (5) Panel Test. A drug test for marijuana, cocaine, methamphetamine, amphetamine, and opiates that uses a specimen of the individual’s urine.

(26) Group Child Care Home. Any place or facility operated by any person or entity that provides child care for three (3) or more hours per day for at least eight (8) children who are not related to the primary educator, but not more than twelve (12) children or fifteen (15) children if approved for three (3) additional school-agers.

(27) High School Diploma. A document recognizing graduation from an accredited institution, public or private, based on the issuing state’s or country’s required number of academic credits and includes passing a GED test or equivalent as defined by Tennessee law.

(28) Inaccessible. Inaccessible means that the item is located in a place that is unable to be reached by children in that classroom. This location may vary, depending on what age the children are in the classroom where the item is located, such as being placed on a high shelf in an infant room or locked in a locked cabinet in a preschool room.

(29) Infant. A child who is six (6) weeks through twelve (12) months of age or until ambulation.

(30) Insurance Terms.

(a) General Liability Insurance. Provides coverage for legal liability of businesses arising out of business operations for bodily or personal injury and property damage.

(b) Auto Liability Insurance. Provides coverage if an insured is legally liable for bodily injury or property damage caused by an accident arising out of ownership or operation of an automobile.

(c) Medical Payment Insurance. Provides coverage for necessary medical expenses regardless of who has been assigned fault.

(d) Sexual Abuse and Molestation Insurance. Provides coverage against claims arising from alleged sexual misconduct or molestation by an employee or other representative of an insured.

(31) Licensee. The owner, to whom a license to operate a child care agency is issued.

(32) Licensed Capacity. The designated maximum number of children permitted in the care and supervision of a licensed child care agency as determined by the Department based upon available indoor space, age of children, adult:child ratios, and group size.

(33) Name-to-Face Roll Call. When a caregiver calls out each child’s name and looks directly into the child’s eyes, gaining the child’s attention, which not only visually acknowledges the child’s presence, but also reminds the child that the caregiver is aware of their on-going activities.

(34) Non-Traditional Hours. Child care services offered between the hours of 6:00 p.m. and 6:00 a.m. Monday through Friday, and weekend child care.

(35) Owner. The individual or entity who has legal and administrative responsibility for the management and control of a child care agency.

(36) Physical Restraint. The use of body contact by staff with a child/youth to restrict freedom of movement or normal access to his or her body.

(37) Practicum Student. A staff member, either paid or unpaid, that is enrolled in a higher education program, has completed a background check and “Before You Begin” training(s), and who may be counted in ratios if eighteen (18) years of age or over but never left alone with children. Apprentices also fall under this definition. This definition applies to all licensed child care programs – centers, family, group, and drop-in.

(38) Pre-School Child. A child who is at least thirty-one (31) months of age and who has not entered kindergarten.

(39) Primary Educator. The adult on site at a family or group child care home who is directly responsible for care, education, and supervision of children in a child care home and for the daily operation of a child care home. For the purpose of these rules, the term primary educator is equivalent to primary caregiver as referenced in T.C.A. § 71-3-501.

(40) Provisional License. A license issued to a child care agency for one hundred twenty (120) days for the purpose of allowing the child care agency to demonstrate their ability to attain and maintain compliance with all licensing laws and regulations. Such provisional license may continue in effect, unless suspended if the Department fails to issue a continuous license after the one hundred twenty (120) day period if the Department determines an extension is necessary to allow the child care agency to demonstrate ability to maintain compliance with licensing laws and regulations.

(41) Related. Children, step-children, grandchildren, step-grandchildren, siblings of the whole or half-blood, step-siblings, nieces, nephews or foster children of the primary educator.

(42) Restricted License. A license which, either at the time of issuance, or during the license’s existence, is reduced in its operational authority so that the child care agency’s ability to provide certain child care related services are limited because the Department has determined that one or more areas of the child care agency’s operations are not in compliance with child care laws or regulations or the child care agency’s operations are, or have, posed a risk to the health, safety or welfare of children in the agency’s care or the agency’s operations pose the potential of such risk. A restricted license may also be imposed by the Child Care Agency Board of Review as part of its review of the licensing status of a child care agency in the same manner and for the same reasons as such a license is issued or imposed by the Department. A restricted license may be appealed to the Child Care Agency Board of Review.

(43) Safety Plan. A mandatory plan applicable to a child care agency as a result of an investigation. A safety plan may require, but is not limited to, the exclusion or restriction of any individuals from access to children, the closure or restriction of any part of the child care agency, the modification or elimination of services at the child care agency, the re-inspection of the child care agency, the training of child care agency management, staff or volunteers.

(44) School-Age Child. A child who has entered kindergarten through seventeen (17) years of age. A child may be considered school-age during the summer immediately preceding their entry into kindergarten.

(45) Screen Time. Instances in which television, videos, video games, cell phones, computers, and other digital devices are used, excluding adult-directed presentations using screens (ex.

Power Point, slideshow, Smart/Whiteboards) provided such media are educational and used interactively with children.

(46) Seclusion. The confinement of a child/youth alone in a room or an area where the child/youth is physically prevented from leaving. Seclusion includes, but is not limited to, instances in which a child/youth is confined by a locked or closed door.

(47) Serious Incident. Serious incident includes but is not limited to: any incident involving serious injuries; any reports made to the Department of Children’s Services and/or law enforcement; anytime it is necessary to call 911; any incident that may result in staff exclusion from child care per 1240-04-01-.07; any transportation accidents and/or moving violations including traffic citations (such as a driver cited for speeding) that occur when children are in a child care agency operated vehicle; and any child or adult fatality at the child care agency; any incident of children leaving the premises without supervision, or children left unsupervised (in a classroom, on the playground or any other area of the facility, at a field trip location, or being left in a vehicle) that may result in imminent harm.

(48) Serious Injury. An injury that requires treatment from an outside medical professional or facility such as an emergency medical technician, physician, health clinic, or hospital.

(49) Shift Care. Care that is provided in a way that accommodates multiple shifts of children during traditional and non-traditional hours while maintaining adult:child ratio, group sizes, and licensed capacity during overlaps in drop-off/pick up times.

(50) Specialized Services. Services provided to children with special needs by individuals having extensive training or expertise in a particular field such as speech/language therapy, physical therapy, play therapy, mental health counseling, or health care treatments, etc.

(51) Staff. Full- and part-time paid educators and employees of the child care agency, including Directors and Assistant Directors (52) Student Assistant. A non-ratio staff member aged sixteen (16) through eighteen (18), that is paid or unpaid, enrolled in a technical program through their high school and has completed a background check and “Before You Begin” training(s). This definition applies to all licensed child care programs – centers, family, group, and drop-in.

(53) Substitute. Paid or unpaid persons who are replacements for regular staff.

(54) Sugar Sweetened Beverages. Beverages with added sweeteners (such as flavored milk, soft drinks, fruit drinks with added sugar, sports drinks, and energy drinks).

(55) Time Out. A means of correcting undesirable behavior by removing the child from the environment, placing the child in a quiet place away from the group for a few minutes, and then talking about the problem.

(56) TDHS eLicensing System. The system of record for all child care agencies licensed by the Department of Human Services as of the effective date of these rules.

(57) TNPAL. Tennessee Professional Archive of Learning (TNPAL) is the central repository and system of record for all child care training and professional development.

(58) Toddler. A child who is thirteen (13) months through thirty (30) months of age.

(59) Unsupervised Contact with a Child. When a person who is not an approved staff person has access to a child and no other approved staff person is present with the child and supervising.

(60) Volunteer. A person who provides services for a child care agency without payment and who is used to supplement the regular staff.

History

• Authority: T.C.A. §§ 71-1-105(a)(5) and (a)(12); 71-3-501, et seq.; 71-3-502(a)(2); and 71-3- 502(a)(4)(B).
• Administrative History: Original rule certified June 10, 1974. Amendment filed March 16, 1978; effective April 17, 1978. Repeal and new rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed July 1, 1993; effective September 14, 1993. Amendment filed November 18, 1999; effective January 31, 2000. Amendment filed September 29, 2000; effective December 13, 2000. Amendment filed August 30, 2001; effective November 13, 2001. Amendment filed November 21, 2002; effective February 4, 2003. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.03 REQUIREMENTS FOR LICENSURE AS A CHILD CARE AGENCY

(1) Upon receipt of an application for a license and throughout the licensing period, immediate access during operating hours to all areas of the child care facility shall be granted to all Department representatives and other inspection authorities (i.e., fire safety, sanitation, health, the Department of Children’s Services, etc.).

(2) Scope of Licensed Operation.

(a) All programs shall operate within:

1. Their licensed capacity;

2. The approved hours of operation;

3. The specific age ranges of children served;

4. The services offered;

5. At the address designated on the license;

6. Any restrictions stated on the license;

7. Their same ownership and legal business status as listed on the license; and 8. Within the licensed and approved child care space.

(3) Multiple Child Care Agencies Operated by a Licensee at the Same Location.

(a) If two (2) or more child care agencies are located on the same property, each child care agency shall independently meet the requirements for a license.

(b) A child care agency shall not operate on the same property as an unlicensed, unregulated, or exempt child care agency unless approved in advance by the Department.

(c) If more than one licensed child care agency occupies the same building, the programs shall not share space and children from each child care agency shall not intermingle.

Exception to shared space: The programs may share the same cafeteria, gym, or playground space as long as children from each program are not using the space at the same time.

(4) All child care agencies subject to the licensure requirements of this chapter shall:

(a) Register as a user through the provider portal, and (b) Utilize the provider portal to submit information needed to maintain the provider record and compliance with these requirements.

Accommodations for submission of materials outside the provider portal will be made on a case-by-case basis upon request.

History

• Authority: T.C.A. §§ 71-1-105(a)(5) and (a)(12); 71-3-501, et seq.; 71-3-502(a)(2) and (3); 71-3- 503(b)(6), (7), (9), and (12); 71-3-507; and 71-3-508(c).
• Administrative History: Original rule certified June 10, 1974. Amendment filed March 16, 1978; effective April 17, 1978. Repeal and new rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed July 1, 1993; effective September 14, 1993. Amendment filed April 30,1996; effective July 14, 1996. Amendment filed September 29, 2000; effective December 13, 2000. Amendment filed September 29, 2003; effective December 13, 2003. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.04 PROCEDURES FOR OBTAINING A LICENSE

(1) Evaluation Process.

(a) The application, fee, and any supporting documentation shall be submitted to the Department during the provisional license process.

(b) The Department shall issue a license upon demonstration of:

1. Successful completion of the provisional licensure period, including receipt of four (4) in-person monitoring visits satisfactory to the Department as demonstrating sustainable child care operations; and 2. Compliance with all laws and licensing regulations governing the specific classification of child care agency.

(c) The agency shall maintain a license upon demonstration of:

1. Compliance history throughout the licensing period;

2. Payment in full of all assessed civil penalties and other monies owed the state; and 3. Submission of required documentation, including required annual inspections, as determined by the Department.

(d) A license is not transferable to a new address or a new owner.

(e) Failure to meet the requirements for maintenance of a license may result in the denial of the continuation of the license.

(f) If the Department determines that the conditions of the applicant’s facility, its methods of care, or other circumstances warrant, the Department may issue a restricted license that permits operation of a child care agency but limits the child care agency’s authority in one (1) or more areas of operation.

(g) Business Organization.

1. The organization of every child care agency shall be such that legal and administrative responsibility is clearly defined in writing in the form and manner directed by the Department and shall accompany the application for a license.

2. Documentation of the child care agency’s business organization shall be made in the form and manner directed by the Department. The application shall include copies of the business organization filings with the Tennessee Secretary of State Division of Business and Charitable Organizations.

History

• Authority: T.C.A. §§ 71-1-105(a)(5) and (a)(12); 71-3-501, et seq.; 71-3-502(a)(2) and (d)(5); and 71-3- 508(c).
• Administrative History: Original rule certified June 10, 1974. Amendment filed March 16, 1978; effective April 17, 1978. Repeal and new rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed April 30, 1996; effective July 14, 1996. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.05 OWNERSHIP, ORGANIZATION, AND ADMINISTRATION

(1) Child Care Agency Program Description.

(a) An applicant shall submit a written program description to the Department that includes the following information:

1. All services and types of care to be offered;

2. Ages of children accepted;

3. Hours of operation;

4. Description of food service; and 5. If applicable, plans for sharing outdoor equipment and space with children not enrolled in the child care agency.

(b) Notification of changes to the program description shall be submitted to the Department at least ten (10) calendar days prior to making the change.

(2) Finances.

(a) The applicant shall provide a proposed budget that demonstrates adequate funding for both preliminary and ongoing costs associated with staffing, equipment and safe operation.

(b) Relevant financial records of the child care agency shall be immediately available to the Department upon request.

(3) Records of Subsidized Child Care and Food Supplement Payments.

(a) A child care agency that receives any funding from the Department or its contractors to subsidize the cost of child care or the cost of providing meals or snacks shall maintain and make available immediately upon request of any auditing or licensing authority the following:

1. Complete and accurate record of payments received;

2. Children’s attendance;

3. A record of food served for each program in which the child care agency participates; and 4. Any other records required by the Department or any other child care agency for reimbursement for the child’s care and/or feeding.

(4) Insurance Coverage.

(a) General liability, automobile liability, medical payment, and sexual abuse and molestation insurance coverage shall be maintained on the vehicles owned, operated, or leased by the child care agency and on the operations of the child care agency’s facilities as follows:

1. Family and Group Child Care Homes: General liability coverage on the operations of the child care agency facilities shall be maintained in a minimum amount of:

(i) Three Hundred Thousand Dollars ($300,000) per occurrence; and (ii) Three Hundred Thousand Dollars ($300,000) general aggregate coverage.

2. Child Care Centers and Drop-In Child Care Centers: General liability coverage on the operations of the child care agency facilities shall be maintained in a minimum amount of:

(i) Five Hundred Thousand Dollars ($500,000) per occurrence; and (ii) Five Hundred Thousand Dollars ($500,000) general aggregate coverage.

3. Medical payment coverage for injuries to children resulting from the operation of the child care agency shall be maintained in the minimum amount of Five Thousand Dollars ($5,000).

4. Automobile Coverage for Child Care Agencies that Transport Children:

(i) Automobile liability coverage.

(I) Family and Group Homes: Automobile liability coverage shall be maintained in a minimum amount of three hundred thousand dollars ($300,000), combined single limit of liability.

(II) Child Care Centers: Automobile liability coverage shall be maintained in a minimum amount of five hundred thousand dollars ($500,000), combined single limit of liability.

(ii) Medical payment coverage for injuries to children being transported in vehicles owned, operated or leased by the child care agency shall be maintained in the minimum amount of five thousand dollars ($5,000).

5. Sexual abuse and molestation coverage for situations resulting from the operation of the child care agency shall be maintained in the minimum amount of one hundred thousand dollars ($100,000) per occurrence and three hundred thousand dollars ($300,000) in the aggregate. This coverage can be obtained as an individual policy or as part of broader coverage such as through a general liability or homeowner’s policy.

(b) A standard homeowner’s policy is not sufficient to provide the coverage requirements for a child care facility outlined in this section.

(c) The requirements of this paragraph shall not apply to a child care agency that is under the direct management of a self-insured administrative Department of the state, a county or a municipality, or any combination of those three (3), or that has, or whose parent entity has a self-insurance program that provides, as determined by the Department, the coverages and the liability limits required by these rules.

(d) Unless subparagraph (c) is applicable, non-profit corporations that administer Head Start child care programs and are defined as government entities for the purposes of the governmental tort liability act (T.C.A. §§ 29-20-101 et seq.) shall have the insurance required by subparagraph (a) above.

(e) Documentation that the necessary insurance is in effect, or that the administrative Department or other entity is self-insured, shall be maintained in the records of the child care agency and shall be available for review by the Department. Documentation shall include the declarations page of the insurance policy and this documentation shall reflect, at a minimum, the requirements described above.

(5) Enrollment Restrictions.

(a) Enrollment of children under six (6) weeks of age is prohibited.

(b) Any child care agency licensed by the Department shall place the following children ahead of any civilian (non-military) parents or guardians on a waiting list, including: children who have a parent or legal guardian who is an active duty member of the armed forces; children who have a parent who was killed or died as a direct result of injuries received during a qualifying period of armed conflict; children who have a parent who has been reported as a prisoner of war or missing in action while serving honorably during a qualifying period of armed conflict; and children who have a parent who was a former prisoner of war or was formerly missing in action while serving honorably during a qualifying period of armed conflict.

(c) Children shall not be in care for more than twelve (12) hours in a twenty-four (24) hour period except in special circumstances.

(d) Individualized plans for the care of a child in excess of twelve (12) hours due to special circumstances shall be signed by the parent/guardian and primary educator/director and approved in advance by the Department. Plans shall be updated annually.

(e) The child care agency shall not admit a child into care until the parent/guardian has supplied the child care agency with a completed application, valid Tennessee Department of Health Official Immunization Certificates record (for children over two (2) months of age), and a health history. There is an exception after an initial eligibility determination for children who are homeless and/or children in state custody. Those children may receive care prior to providing all required documentation as determined by the Department. Care without such documentation of immunizations shall not exceed sixty (60) days.

(f) The child care agency shall maintain written documentation that the parent/guardian performed an on-site visit to the child care agency prior to the child being enrolled into care and that the child care agency provided and reviewed parent engagement strategies recognized by the Department with the parent during the required preplacement visit. A pre-placement visit is not required for children of homeless families.

(6) Home Schooling.

(a) Home schooling shall not take place during child care hours unless a qualified primary educator, in addition to the home schooling parent/guardian, is available to supervise the child care agency and to care for the enrolled children.

(b) Home schooling conducted during child care operating hours shall be conducted in a space separate from the designated child care space.

(7) Non-Traditional Hours.

(a) Care services during non-traditional hours may be offered by a child care agency as an additional component to conventional care services, or the child care agency may exclusively provide care services during non-traditional hours.

(b) In order for a child care agency to offer care during non-traditional hours, the Department shall issue a license bearing a notation that the child care agency is authorized to provide care during non-traditional hours.

(c) A child care agency may not offer extended care during non-traditional hours without the Department’s approval.

(8) Child Care Agency Drug Testing Policy.

(a) Child care agencies shall establish a drug testing policy for all staff that have direct contact with children, as defined by the Department, with a child in the care of the child care agency.

(b) The policy shall:

1. Specify when and how testing should be completed;

2. Provide for immediate and effective enforcement action in the event of a positive drug test; and 3. Require drug testing based upon reasonable suspicion that employees, directors, licensees, or operators of a child care agency, or other persons providing services under contract or for remuneration for the agency are engaged in the use of illegal drugs.

(c) The child care agency shall provide the policy to all staff that have direct contact with children upon the individual’s employment with the child care agency.

(d) The child care agency shall maintain drug test results for all currently employed staff members who are subject to drug testing and for five (5) years after employment is terminated. All drug test results shall be immediately provided to the Department upon request.

(e) Drug testing results are confidential and may be disclosed only for purposes of enforcing this part.

(f) The Department may require the licensee or operator of a family child care home who has direct contact with children to submit to a drug test at the expense of the licensee or operator, when reasonable suspicion exists.

(g) A child care agency that does not comply with this section is subject to the Department:

1. Denying the application for a license or;

2. Suspending or revoking a license issued.

(9) Parent Communication and Engagement.

(a) The child care agency shall ensure that a copy of the child care agency’s policies, procedures, and the Department’s Summary of Licensing Requirements is supplied to the parents/guardians upon admission of the child.

(b) The child care agency’s policies shall include, at a minimum:

1. Criteria for the disenrollment of children;

2. Specific criteria concerning the release of children;

3. Written parental permission for observation of children by non-child care agency staff;

4. Behavior management techniques;

5. Hours of operation;

6. Late fees;

7. Rates;

8. Inclement weather;

9. Emergency policy;

10. Whether the environment is smoke free;

11. Meal service policy;

12. Shaken baby syndrome/abusive head trauma/child maltreatment, to include:

(i) Recognizing potential signs and symptoms;

(ii) Creating strategies for coping with crying, fussing or distraught children; and (iii) Understanding the development and vulnerabilities of the brain in infancy and early childhood; and 13. Child care agency after-hours contact telephone phone number in case of an emergency.

(c) Parents/guardians shall be permitted to see the professional credential(s) of staff upon request.

(d) The child care agency shall have ongoing communication with parents/guardians to include curriculum, changes in personnel, changes in policies and/or substantive licensing requirements, and any changes affecting children’s routine care, and shall document such communication in writing.

(e) Child care agencies shall provide information about the benefits of immunizing children against influenza and other communicable diseases as requested by the Department each August or September to parents/guardians of all children enrolled in the child care agency and document such communication in writing.

(f) The child care agency shall use a developmental checklist recognized by the Department as a guide for conducting annual individual parent meetings to discuss the child’s progress and development. Documentation of the meetings must be maintained in the child’s record. This is not required for school-age children participating in afterschool programs.

(g) All child care agencies shall disseminate materials and information to parents/guardians, as required by the Department.

(h) Child care agencies shall obtain training relevant to the special needs of the children in care and shall consult with parents/guardians and appropriate service providers regarding techniques used in the home to ensure the children’s safety. If children with special needs are enrolled, Section 504 of the federal Rehabilitation Act of 1973 and the Americans with Disabilities Act (ADA) guidelines shall be consulted regarding the reasonable accommodations a child’s disability may require and complied with.

(i) Specialized Services.

1. The provision of specialized services shall be conducted only by individuals who hold the appropriate license or certification and with written permission by the parent/guardian and shall be documented in the child’s record.

2. Any information exchanged regarding specialized services that is shared with or received from third parties shall also be documented in each child’s record.

(j) During operating hours, parents/guardians shall be permitted immediate access to their children, unless an Order of Protection or other legal document otherwise restricts or prohibits such access.

(k) Documented permission, including prior notification and consent for each field trip, shall be obtained from the parents/guardians prior to the child’s removal from the premises for a field trip.

(l) Authorized Removal of Children.

1. An authorized investigator with the Department of Children’s Services or law enforcement may take a child off the premises of the child care agency if he/she has obtained custody of the child as follows:

(i) Voluntary placement agreement with the parent/guardian;

(ii) Court order;

(iii) Emergency assumption of custody under T.C.A. § 37-1-113 without parent/guardian permission;

(iv) If the child’s parent or legal guardian is present and approves; or (v) In conjunction with investigative procedures under the child abuse laws.

2. The child care agency shall request visual confirmation of an investigator’s identification.

(10) Notifying Parents/Guardians.

(a) The child care agency shall post the following in a clearly visible location and obtain parents’/guardians’ signatures indicating they have read the document:

1. A formal notice of a critical licensing violation that put a child at imminent risk of harm or resulted in actual harm;

(i) Critical violations include but are not limited to the following:

(I) Transportation;

(II) Ratios;

(III) Supervision;

(IV) Failure to properly dispense or store medications;

(V) Background checks/Failure to complete or failure to exclude;

(VI) Failure to store hazardous items;

(VII) Failure to properly remove or secure firearms;

(VIII) Corporal punishment;

(IX) Failure to report suspected abuse or neglect;

(X) Falsification of documents required by the Department;

(XI) Failure to have CPR/first aid certification as required by the Department;

(XII) Six (6) or more minor violations of any type within a three (3) month period; or (XIII) Three (3) or more minor violations of the same type within a three (3) month period.

2. Any issuance of a legal enforcement order;

3. Any decision rendered by the Child Care Agency Board of Review pursuant to

Chapter 1240-04-05;

4. An Order affecting the child care agency’s operations issued by any court of law; or 5. Notice of probation.

(11) Right to Privacy/Confidentiality.

The licensee and child care agency staff shall not disclose or knowingly permit the use by other persons, any information concerning a child or family enrolled at the child care agency except as required by law.

(12) Posting Required Documentation.

(a) The following shall be posted near the main entrance where staff, parents, and others may view them:

1. The child care agency license;

2. Current child care agency quality rating improvement system score;

3. The child care agency’s operating hours;

4. The Department’s toll-free Child Care Complaint Hotline phone number and email address; and 5. The Department of Children’s Services’ Central Intake Child Abuse Hotline number.

(b) “No Smoking” signs shall be posted in a conspicuous manner at each entrance to the facility.

(c) Required adult:child ratios and group size shall be posted in every classroom.

(d) Items that must be accessible in a place where staff, parents, and others may view:

1. A link to the electronic location of applicable Department licensing rules and a hard copy on-site available for reference;

2. Weekly menu;

3. Daily schedule;

4. Notice of requirements to report child abuse;

5. Emergency procedures; and 6. Record of fire and other emergency drills.

(e) Any other materials shall be posted as directed by the Department.

(13) The child care agency shall have a written expulsion policy.

(a) The policy shall be:

1. Clearly articulated to staff and parents;

2. Developmentally appropriate and consistent; and 3. Non-discriminatory in practice and impact.

(b) Other options shall be considered prior to expulsion, such as but not limited to reducing the number of days or amount of time the child may attend, or if applicable, referrals to a behavioral health program or other appropriate supporting program.

(c) Procedures shall be developed to allow for a planned transition of a child to another program if expulsion must occur.

(d) Aggregate data that includes reasons for expulsions shall be maintained and reported to the Department on a Department-approved form when such expulsions take place and as requested.

(14) Data Reporting. Child care agencies shall submit data as requested by the Department:

(a) Quarterly on topics such as but not limited to: active enrollment, homeless children, non-traditional hours, English as a Second Language/dual language learners, and children with disabilities; and (b) As it occurs: death/serious injuries, child abuse.

(15) Falsification of any information or documentation is prohibited.

History

• Authority: 7 C.F.R. § 226.15(e); T.C.A. §§ 39-17-1803; 71-1-105(a)(5) and (a)(12); 71-3-501, et seq.; 71- 3-502(l); and 71-3-512.
• Administrative History: Original rule certified June 10, 1974. Amendment filed March 16, 1978; effective April 17, 1978. Amendment filed June 7, 1982; effective September 30, 1982. Repeal and new rule filed December 6, 1983; effective January 5, 1984. Amendment filed June 27, 1985; effective September 13, 1985. Amendment filed October 9, 1987; effective January 27, 1988. Amendment filed April 30, 1996; effective July 14, 1996. Public necessity rule filed October 1, 2008; effective through March 15, 2009. Amendment filed December 29, 2008; effective March 14, 2009. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.06 STAFF

(1) Responsibility for Staff.

(a) Owners, directors, and primary educators shall be responsible for:

1. Selecting qualified and capable staff;

2. The supervision, training, and evaluation and performance management of the staff;

3. The efficient operation of the child care agency’s program; and 4. Providing written policy to staff that includes job functions, qualifications, lines of

authority, staff performance evaluations, and disciplinary process.

(b) Annual Evaluations.

1. Teaching staff, assistant directors, and directors shall be evaluated on the performance of their duties at least annually.

2. Records of performance evaluations shall be maintained in the educator’s files and made available to the Department upon request.

(2) Organizational Management.

(a) Family and group home child care agencies must notify parents in advance of person(s) in charge during the primary educator’s absence.

(b) The primary educator/director shall identify and notify staff of the person in authority in the event of his/her absence.

(c) The child care agency shall be responsible for all volunteers and service providers/contractors providing services to the child care agency.

1. Service providers or contractors shall never be alone with children unless:

(i) Written authorization is obtained from a parent/guardian for the child prior to receiving the service;

(ii) Written authorization is obtained from a parent/guardian naming the service provider or contractor as their authorized representative for the purposes of releasing the child to them; and (iii) The service provider or contractor shall provide identification prior to signing the child out or delivering the service and shall sign the child back in upon completion of service.

(d) The Director shall be on-site for at least fifty percent (50%) of the agency’s monthly hours of operation.

1. Reasonable time away for a leave of absence, professional development, or community engagement will be accommodated.

2. This requirement does not apply to licensed drop-in child care centers.

(3) General Child Care Agency Staff Qualifications.

(a) Staff involved in transporting children are subject to general qualifications in addition to the requirements and qualifications detailed in the transportation rules found in this

chapter.

(b) Every staff person shall be capable of performing his/her duties satisfactorily.

(c) A staff member shall be designated to be in charge of the child care agency in the absence of the primary educator/director and the name of the person in authority shall be communicated to staff. Such person shall be familiar with child care agency policies and procedures.

(d) The primary educator/director or designee shall ensure that the staff person is physically, mentally, and emotionally capable of safely and appropriately providing care for children.

(e) Examinations to Determine Physical, Mental, and Emotional Status.

1. A child care agency may, upon reasonable cause/suspicion require any persons having significant contact with children to obtain physical/mental health evaluations to determine their ability to satisfactorily perform their job duties.

(f) Prior to having contact with children, each new employee shall receive orientation in, and have a working knowledge of the following items:

1. Program philosophy and policies;

2. Job description;

3. Emergency health and safety procedures;

4. Behavior management procedures;

5. Detection, reporting, and prevention of child abuse;

6. Procedures for receiving and releasing children;

7. Safe sleep procedures;

8. Meal service and safe food preparation policies;

9. Supervision during high risk activities such as eating and outdoor play;

10. Food allergies;

11. Expectations for communications with parent/guardian;

12. Disease control and health promotion, including childhood obesity and the beneficial health impacts of physical activity;

13. An overview of licensing requirements; and 14. Information on risks of Cytomegalovirus (CMV) to female employees of childbearing age.

(g) Prior to having contact with children, each new employee shall complete training in the following areas:

1. Shaken baby syndrome/abusive head trauma/child maltreatment; and 2. Pre-service training as recognized by the Department which shall include all federally required components.

(h) Documentation of the requirements in subparagraphs (f) and (g) shall be maintained in the staff file.

(4) Substitutes and Practicum Students.

(a) Before a substitute or practicum student has contact with children at the agency, the agency is required to train the substitute or practicum student on the agency policies and procedures regarding emergency preparedness plans, reporting of child abuse, neglect, and maltreatment, and safe sleep practices.

(b) Substitutes and Practicum Students providing services for more than thirty-six (36) hours in a calendar year shall:

1. Meet the background check requirements prior to beginning their duties;

2. Meet the same requirements as regular staff for the physical examination required by these rules; and 3. Have a minimum of four (4) hours of annual training if they acted as substitutes/educators for more than thirty-six (36) hours in the previous calendar year.

(c) Substitutes that do not meet the requirements listed in subparagraphs (a) and (b) above shall never be left alone with children. Practicum students shall never be left alone with children. Documentation of direct supervision of substitutes without such background checks and practicum students shall be maintained in agency files.

(d) Child care agencies shall document and report service hours of every substitute staff or practicum student as may be required by the Department.

(5) Volunteers.

(a) Volunteers may not be counted to meet the adult:child ratios and shall never be left alone with children except parents/guardians may be counted in the adult:child ratio at a field trip location.

(6) Education/Training Requirements.

(a) This chart provides the educational and training requirements that must be completed by staff prior to having contact with children:

Position Minimum Age Education Training Requirements Family and Group Homes Primary Educator 18 HS Diploma or equivalent 1. Child care agency orientation session during the pre-licensure period;

2. Licensing Rules and Regulations Training, including building and physical premises safety;

3. Shaken Baby/Abusive Head Trauma/Child Maltreatment Training prior to contact with children;

4. Pre-Service Training (Before You Begin);

5. Sudden Infant Death Syndrome Training prior to contact with children if the agency provides care for infants.

Family/Group Educator Assistant 16 None 1. Licensing Rules and Regulations Training, including building and physical premises safety;

2. Shaken Baby/Abusive Head Trauma/Child Maltreatment Training prior to contact with children;

3. Pre-Service Training (Before You Begin);

4. Sudden Infant Death Syndrome Training prior to contact with children if the agency provides care for infants.

Child Care Center Director Graduation from an accredited 4-year college or be a registered nurse with less than a 4-year degree and 1 year of full-time experience with children in a group setting; or 36 hours of coursework at least 30 of which shall be in business management, child or youth development, early childhood education or a closely related field or a TN Early Childhood Administrator Credential; and 2 years of full-time experience with children in a group setting; or High School diploma (or equivalent as recognized by state law) and Tennessee Early Childhood Training Alliance Certificate for 30 clock hours of Administrator Orientation training or the equivalent as recognized by the Department and 4 years of full-time experience with children in a group; or Continuously employed as an on-site child care director or a child care agency owner as of the effective date of these rules.

1. Child care agency orientation session during the pre-licensure period;

2. Licensing Rules and Regulations Training, including building and physical premises safety;

3. Shaken Baby/Abusive Head Trauma/Child Maltreatment Training prior to contact with children;

4. Pre-Service Training (Before You Begin);

5. Sudden Infant Death Syndrome Training prior to contact with children if the agency provides care for infants.

Child Care Center Student Assistant Current enrollment in technical child care educational program 1. Licensing Rules and Regulations Training, including building and physical premises safety;

2. Shaken Baby/Abusive Head Trauma/Child Maltreatment Training prior to contact with children;

3. Pre-Service Training (Before You Begin);

4. Sudden Infant Death Syndrome Training prior to contact with children if the agency provides care for infants.

Child Care Center Assistant Director HS Diploma/equivalent and 2 years of experience 1. Child care agency orientation session during the pre-licensure period;

2. Licensing Rules and Regulations Training, including building and physical premises safety;

3. Shaken Baby/Abusive Head Trauma/Child Maltreatment Training prior to contact with children;

4. Pre-Service Training (Before You Begin);

5. Sudden Infant Death Syndrome Training prior to contact with children if the agency provides care for infants.

Child Care Center Educator None or HS Diploma/equivalent if only educator for group or to meet group requirement 1. Licensing Rules and Regulations Training, including building and physical premises safety;

2. Shaken Baby/Abusive Head Trauma/Child Maltreatment Training prior to contact with children;

3. Pre-Service Training (Before You Begin);

4. Sudden Infant Death Syndrome Training prior to contact with children if the agency provides care for infants.

Drop-In Child Care Center Director HS Diploma/equivalent and 1 year of experience 1. Child care agency orientation session during the pre-licensure period;

2. Pre-Service Training (Before You Begin).

Drop-In Child Care Center Educator 18 HS Diploma/equivalent 1. Licensing Rules and Regulations Training, including building and physical premises safety;

2. Pre-Service Training (Before You Begin).

(b) This chart provides the training requirements and expectations for educators, primary educators, assistant directors, and directors for each class of licensed care during the provisional licensure period. These training requirements also apply to new employees.

Please note that all hours earned during the provisional licensure period count towards the first-year hourly training requirements.

Position Provisional Licensing Period (first 120 days) Training Requirements (These requirements are also applicable to new employees hired after the provisional licensure period, to be completed within the first four (4) months of employment.)

Family and Group Homes Primary Educator 1. 3 hours on developmental learning standards (TN-ELDS);

2. New Director Training;

3. Transportation Training (if applicable at the agency) before providing transportation. Training will include anyone responsible for the transportation of children;

4. First Aid Training (within 90 days of employment);

5. CPR Training (within 90 days of employment);

6. Personal Safety Training (one representative from the agency);

7. Small Business Academy;

8. Additional training hours as determined by the Department.

Family/Group Home Educator 1. 3 hours on developmental learning standards;

2. Transportation Training (if applicable at the agency) before providing transportation;

3. First Aid Training (within 90 days of employment);

4. CPR Training (within 90 days of employment);

5. Additional training as identified by the Department.

Child Care Center Director 1. 3 hours on developmental learning standards (TN-ELDS);

2. New Director Training;

3. Transportation Training (if applicable at the agency) before providing transportation. Training will include anyone responsible for the transportation of children;

4. First Aid Training (within 90 days of employment);

5. CPR Training (within 90 days of employment);

6. Personal Safety Training (one representative from the agency);

7. Small Business Academy;

8. Additional training hours as determined by the Department.

Child Care Center Student Assistants Additional training hours as determined by the Department.

Child Care Center Assistant Director 1. 3 hours on developmental learning standards (TN-ELDS);

2. New Director Training;

3. Transportation Training (if applicable at the agency) before providing transportation. Training will include anyone responsible for the transportation of children;

4. First Aid Training (within 90 days of employment);

5. CPR Training (within 90 days of employment);

6. Personal Safety Training (one representative from the agency);

7. Additional training hours as determined by the Department.

Child Care Center Educator 1. 3 hours of applicable developmental learning standards (TN-ELDS).

If an educator has a Bachelor’s or Associate’s degree in child development or a related field, or a CDA or CCP credential recognized by the Department, that educator shall instead comply with the training requirements for experienced educators during the 1st year.

2. Transportation Training (if applicable at the agency) before providing transportation. Training will include anyone responsible for the transportation of children;

3. First Aid Training (within 90 days of employment);

4. CPR Training (within 90 days of employment);

5. Personal Safety Training (one representative from the agency);

6. Additional training hours as determined by the Department.

Drop-In Child Care Center Director 1. In the first 3 months, Department Rules Training and Pre-Service Training (Before You Begin);

2. First Aid Training (within 90 days of employment);

3. CPR Training (within 90 days of employment);

4. Additional training hours as determined by the Department.

Drop-In Child Care Center 1. First Aid Training (within 90 days of employment);

Educator 2. CPR Training (within 90 days of employment);

3. Additional training hours as determined by the Department.

(c) This chart provides the first-year and ongoing training requirements and expectations as defined by your role as educators, primary educators, assistant directors, substitutes, and directors for each class of licensed care. During the first year, any hours earned during the provisional licensure period count towards the hourly requirements.

Primary Educator – Family or Group Home Training Hours/Notes Annual Training 18 hours total Health and Safety At least 6 of the 18 total hours Pre-Literacy and Literacy Skills and Education Implementation At least 3 of the 18 total hours Adverse Childhood Experiences Every 5 years – length not specified 4 hours of the 18 total hours may be earned by conducting training. Hours earned during the pre-licensure and provisional licensure period may count towards these total hours.

Educator – Family or Group Home Training Hours/Notes Annual Training 12 hours total Health and Safety At least 6 of the 12 total hours Pre-Literacy and Literacy Skills and Education Implementation At least 3 of the 12 total hours Adverse Childhood Experiences Every 5 years – length not specified 4 hours of the 12 total hours may be earned by conducting training. Hours earned during the pre-licensure and provisional licensure period may count towards these total hours.

Director – Single-Site Center Training Hours/Notes Earn credit during the year in 1 academic course (in administration, child development, early childhood education, health/safety or related field) from accredited academic institution, or Annual Training At least 24 total hours Health and Safety At least 6 of the 24 total hours Pre-Literacy and Literacy Skills and Education Implementation At least 3 of the 24 total hours Adverse Childhood Experiences Every 5 years – length not specified 4 hours of the 24 total hours may be earned by conducting training.

Assistant Director – Center Training Hours/Notes Earn credit during the year in 1 academic course (in administration, child development, early childhood education, health/safety or related field) from accredited academic institution, or Annual Training At least 18 total hours Administration, Management or Supervisory training At least 4 hours of the 18 total hours Pre-Literacy and Literacy Skills and Education Implementation At least 3 of the 18 total hours Health and Safety At least 6 of the 18 total hours Adverse Childhood Experiences Every 5 years – length not specified 4 hours of the 18 total hours may be earned by conducting training. Hours earned during the pre-licensure and provisional licensure period may count towards these total hours.

Educator – Center Training Hours/Notes Annual Training 12 total hours Pre-Literacy and Literacy Skills and Education Implementation At least 3 of the 12 total hours Health and Safety At least 6 of the 12 total hours Adverse Childhood Experiences Every 5 years – length not specified 4 hours of the 12 total hours may be earned by conducting training.

Educators who hold one of the following degrees/credentials as recognized by the Department shall instead comply with the training requirements for experienced educators after the first year: Bachelor’s or Associate’s degree in child development or a related field; CDA credential;

Certified Child Care Professional (CCP) credential.

Substitute – Center Training Hours/Notes Health and Safety At least 4 total hours Director – Drop-In Center Training Hours/Notes Annual Training At least 6 total hours Health and Safety At least 3 of the 6 total hours Administration, Management, or Supervisory At least 3 of the 6 total hours Adverse Childhood Experiences Every 5 years – length not specified 2 hours of the 6 total hours may be earned by conducting training. Hours earned during the pre-licensure and provisional licensure period may count towards these total hours.

Educator – Drop-In Center Training Hours/Notes Annual Training – Health and Safety At least 3 total hours Adverse Childhood Experiences Every 5 years – length not specified 1 hour of the 3 total hours may be earned by conducting training. Hours earned during the prelicensure and provisional licensure period may count towards these total hours.

Clarifications:

Child Care and Development Block Grant (CCDBG) Health and Safety Training Topics: Family, Group, and Center Staff cycle through the requisite topics every three years. Drop-in staff cycle through the topics every 4 years.

Required topics: prevention and control of infectious diseases (including immunization); SIDS and use of safe sleep practices; administration of medication; prevention/response to food allergies; building and physical premises safety; prevention of shaken baby syndrome, abusive head trauma, and child maltreatment; emergency preparedness and response planning; storage of hazardous materials and biocontaminants; precautions in transporting children (if applicable); first aid and CPR; recognition and reporting of child abuse and neglect; child development, including the major domains (cognitive, social, emotional, physical development and approaches to learning).

History

• Authority: T.C.A. §§ 37-1-603(b)(1)(A); 71-1-105(a)(5) and (a)(12); 71-3-501, et seq.; 71-3-502(a)(2); and 71-3-507.
• Administrative History: Original rule certified June 10, 1974. Amendment filed March 16, 1978; effective April 17, 1978. Amendment filed June 7, 1982; effective September 30, 1982. Repeal and new rule filed December 6, 1983; effective January 5, 1984. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed November 10, 2025; effective February 8, 2026.

Tenn. Comp. R. & Regs. 1240-04-01-.07 CRIMINAL BACKGROUND CHECK AND STATE REGISTRY/RECORDS REVIEW

PROCEDURES.

(1) Criminal Background and Abuse Registry Disclosures and Reviews; Fingerprinting Requirements.

(a) The following persons are required to have a background check no more than ninety (90) days before having access to any child care agency:

1. Any person who owns or operates a child care agency;

2. Any person who applies to work in a child care agency as an employee, director or manager;

3. Any person who will provide substitute services to a child care agency for more than thirty-six (36) hours in a calendar year and who is counted in the adult:child ratio; and 4. Any person who is fifteen (15) years of age or older who will reside in a child care agency.

(b) New background checks are required when the staff member has been separated from employment from a child care provider within the state for a period of more than 180 consecutive days.

(c) Background checks are required for all staff at least every five (5) years.

(d) Requirements for disclosure of criminal/juvenile and state register history and fingerprinting, are provided by T.C.A. § 71-3-507 and as required by the Child Care and Development Block Grant Act. Such requirements may include filling out additional forms as necessary for out-of-state registry and criminal background checks.

(2) Responsibility for Providing Fingerprint Sample; Prohibition of Contact with Children Prior to Completion of Criminal History Review.

(a) The Department will pay for the costs of performing one background check per person per child care agency per year.

(b) The child care agency shall be responsible for costs associated with the background check if:

1. The fingerprint sample is rejected and the fingerprint sample must be resubmitted;

2. The child care agency submits a second fingerprint sample for an individual more than one (1) time within a thirty (30) day period; or 3. The child care agency submits a fingerprint sample for a person who is not a resident or a person who has been selected by the child care agency, substitute pool, or staffing agency to fill a position as an employee, or substitute who will work directly with children.

(c) No person shall be employed with, be a licensee or operator of, provide substitute services to, or have unsupervised contact with children in a child care agency prior to the completion of the criminal history review, as documented by either:

1. A Final Clearance Letter; or 2. A Conditional Letter allowing the applicant to work under supervision of another fully cleared applicant, until all of the results from other state(s) have been issued.

(3) Prohibited Criminal, Juvenile, Vulnerable Persons or Sex Offender Registry, Abuse or Neglect or Driving History; Exclusion from Contact with Children.

(a) No person shall be employed, be a licensee or operator, or provide substitute services, reside, or have any access to children in a child care agency if the criminal background check identifies an excludable criminal offense for which the person has:

1. Been convicted of, or pled guilty or no contest to (or to a lesser included offense);

2. Been, or currently is, the subject of a juvenile petition or finding that would constitute a criminal offense or lesser included offense if the child were an adult; or 3. Been named in a pending warrant, indictment, presentment, or petition.

(b) An excludable criminal offense involves:

1. The physical, sexual or emotional abuse or neglect of a child;

2. A crime of violence against a child or any person;

3. Any offense, including a lesser included offense, involving the manufacture, sale, distribution or possession of any drug; or 4. Any offense that presents a threat to the health, safety or welfare of children.

4. The criminal offenses for which a person will be excluded from a child care agency include but are not limited to the following offenses as well as their lesser included offenses (and including convictions for equivalent offenses in other states or jurisdictions):

(i) Aggravated arson (T.C.A. § 39-14-302);

(ii) Aggravated assault (T.C.A. § 39-13-102);

(iii) Aggravated child abuse (T.C.A. § 39-15-402);

(iv) Aggravated child neglect (T.C.A. § 39-15-402);

(v) Aggravated cruelty to animals (T.C.A. § 39-14-212);

(vi) Aggravated kidnapping (T.C.A. § 39-13-304);

(vii) Aggravated rape (T.C.A. § 39-13-502);

(viii) Aggravated rape of a child (T.C.A. § 39-13-531);

(ix) Aggravated robbery (T.C.A. § 39-13-402);

(x) Aggravated sexual battery (T.C.A. § 39-13-504);

(xi) Aggravated sexual exploitation of a minor (T.C.A. § 39-17-1004);

(xii) Aggravated vehicular homicide (T.C.A. § 39-13-218);

(xiii) Arson (T.C.A. § 39-14-301);

(xiv) Assault (T.C.A. § 39-13-101);

(xv) Carjacking (T.C.A. § 39-13-404);

(xvi) Child abuse, child neglect or endangerment (T.C.A. § 39-15-401);

(xvii) Criminal attempt, under T.C.A. § 39-12-101, to commit any criminal offense that requires exclusion from child care;

(xviii) Criminal exposure to HIV (T.C.A. § 39-13-109);

(xix) Criminal homicide (T.C.A. § 39-13-201);

(xx) Criminally negligent homicide (T.C.A. § 39-13-212);

(xxi) Cruelty to animals (T.C.A. § 39-14-202);

(xxii) Custodial interference (T.C.A. § 39-13-306);

(xxiii) Domestic abuse in violation of an order of protection or in violation of a restraining order (T.C.A. § 39-13-113);

(xxiv) Domestic assault (T.C.A. § 39-13-111);

(xxv) Drug offenses (felony or misdemeanor, possession, manufacturing, sale, distribution, etc.);

(xxvi) Especially aggravated burglary (T.C.A. § 39-14-404);

(xxvii) Especially aggravated kidnapping (T.C.A. § 39-13-305);

(xxviii)Especially aggravated robbery (T.C.A. § 39-13-403);

(xxix) Especially aggravated sexual exploitation (T.C.A. § 39-17-1005);

(xxx) Exploitation of a minor by electronic means (T.C.A. § 39-13-529);

(xxxi) False imprisonment (T.C.A. § 39-13-302);

(xxxii) First degree murder (T.C.A. § 39-13-202);

(xxxiii)Incest (T.C.A. § 39-13-302);

(xxxiv)Indecent exposure (T.C.A. § 39-13-511);

(xxxv) Involuntary labor servitude (T.C.A. § 39-13-307);

(xxxvi)Kidnapping (T.C.A. § 39-13-105);

(xxxvii)Rape (T.C.A. § 39-13-503);

(xxxviii)Rape of a child (T.C.A. § 39-13-522);

(xxxix)Reckless endangerment (T.C.A. § 39-13-103);

(xl) Reckless homicide (T.C.A. § 39-13-215);

(xli) Robbery (T.C.A. § 39-13-401);

(xlii) Second degree murder (T.C.A. § 39-13-210);

(xliii) Sexual battery (T.C.A. § 39-13-505);

(xliv) Sexual battery by an authority figure (T.C.A. § 39-13-527);

(xlv) Sexual exploitation of a minor (T.C.A. § 39-17-1003);

(xlvi) Solicitation of a minor (T.C.A. § 39-13-528);

(xlvii) Stalking (T.C.A. § 39-17-315);

(xlviii) Statutory rape (T.C.A. § 39-13-506);

(xlix) Statutory rape by an authority figure (T.C.A. § 39-13-532);

(l) Trafficking a person for sexual servitude (T.C.A. § 39-13-309);

(li) Vehicular assault (T.C.A. § 39-13-106);

(lii) Vehicular assault while intoxicated (T.C.A. § 39-13-106);

(liii) Vehicular homicide (T.C.A. § 39-13-213);

(liv) Voluntary manslaughter (T.C.A. § 39-13-211); and (lv) Weapons offenses (unlawful possession, carrying, use, etc.).

(c) No person may be employed as a driver or serve as a driver for a child care agency if the person:

1. Is currently charged with; or 2. Has been convicted of, or pled guilty to, within the last five (5) years any of the following criminal offenses:

(i) Vehicular homicide;

(ii) Accidents involving death or personal injury;

(iii) Accidents involving damage to a vehicle;

(iv) Driving under the influence of an intoxicant, drug or drug producing stimulant; or (v) Any felony involving the use of a motor vehicle while under the use of any intoxicant.

(4) Exclusion from access to child care based on a listing on a state registry.

(a) No person shall be employed, be a licensee or operator, provide substitute services, reside, or have any access to children in a child care agency if the results of the state registry review identify the person as being:

1. Listed on the Vulnerable Persons Registry;

2. Listed on the Sexual Offender Registry; or 3. Substantiated in the records of the Department of Children’s Services as a perpetrator of abuse or neglect of a child.

(5) A person who has been excluded from child care agency and/or adult day care center access due to a criminal offense or registry listing has the option of requesting a waiver from the exclusion. The request for a waiver shall be sent to the Department’s Director of Field Operations for Adult and Child Care Licensing.

(a) The request for a waiver shall state the basis for the request, including any extenuating or mitigating circumstances that would, in the individual’s opinion, clearly warrant an exemption from the exclusion. Any documentary evidence may also be submitted with the request.

(b) Requests for waivers shall be reviewed by an advisory committee. A waiver will be granted only if the person can show that extenuating circumstances exist that clearly justify granting a waiver. The committee shall make a recommendation to the Department’s Director of Child and Adult Care Licensing of whether to grant or deny the waiver request. The Director has full discretion over the final decision on whether to grant or deny the requested waiver.

(c) Any person who is the subject of an exclusion who is dissatisfied with the decision of the Department’s Director of Child and Adult Care Licensing regarding a waiver may appeal such decision in writing to the Department by filing a written request for an appeal with the Department’s Division of Appeals and Hearings within ten (10) days of the date of notice of the denial of the waiver to the individual, and may request an administrative hearing pursuant to the Uniform Administrative Procedures Act, compiled in title 4 chapter 5, part 3 of the Tennessee Code Annotated.

(d) The following offenses are not waivable and persons with such a conviction may not seek a waiver:

1. Appearing on a state sex offender registry or repository or the National Sex Offender Registry;

2. Felony convictions of murder; child abuse or neglect; a crime against children, including child pornography; spousal abuse; a crime involving rape or sexual assault; kidnapping; arson; physical assault or battery;

3. A drug-related offense committed during the preceding 5 years; or 4. A violent misdemeanor committed as an adult against a child, including: child abuse, child endangerment, sexual assault, or a misdemeanor involving child pornography.

History

• Authority: T.C.A. §§ 71-1-105(a)(5) and (a)(12); 71-3-501, et seq.; 71-3-502(a)(2); 71-3-507; and 71-3- 508(c).
• Administrative History: Original rule certified June 10, 1974. Amendment filed March 16, 1978; effective April 17, 1978. Repeal and new rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed November 21, 2002; effective February 4, 2003. Amendment by Acts of 2003, Public Chapter 412, §§ 1(c) and 3 filed June 25, 2003; effective July 1, 2003. Amendment filed September 29, 2003; effective December 13, 2003. Amendment filed October 21, 2004; effective January 4, 2005. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.08 RECORD KEEPING

(1) General Record Requirements.

(a) All records required by this chapter shall be maintained in an organized manner onsite, in a centralized location, or available electronically, and made readily available upon Department request.

(2) General Children’s Records.

(a) The child care agency shall maintain a file for each child in a central location within the child care agency.

(b) A child’s records shall be kept for one (1) year following the child’s leaving the child care agency; however, the health record shall be returned to the parent/guardian upon request when the child leaves the child care agency.

(c) All children, including related children younger than age nine (9), shall have required records on file before care is provided.

Exception: After an initial eligibility determination, children of homeless families and/or children in state custody may receive care prior to providing required documentation as determined by the Department.

(d) General Requirements - Children’s Records shall include:

1. A current information form, containing the following:

(i) The child’s name and date of birth;

(ii) Name of parents/guardians;

(iii) Child’s and parents’/guardians’ home addresses and phone numbers;

(iv) Parents’/guardians’ business addresses, phone numbers, and work hours (if applicable);

(v) Any diagnosed disabilities for children who have special needs, medical conditions (including allergies) or relevant history of the child;

(vi) For a child with life-threatening allergies, a written plan of action endorsed by the child’s pediatrician or licensed medical provider;

(vii) Name, address, and telephone number of a physician to call in case of an emergency;

(viii) Written consent of parents/guardians regarding emergency medical care; and (ix) The name and address (home and business or school) and current phone number of an emergency contact.

2. A written statement stating to whom the child shall be released.

3. Written transportation agreement, if applicable, between parent/guardian and the child care agency regarding daily transportation between the home and the child care agency and the child care agency and the school.

4. Daily attendance records that include the full name and time in and time out for each child shall be maintained on-site but not necessarily in the individual child’s file.

5. Daily attendance records shall be kept for one (1) year after the child has left the child care agency.

6. An individual attendance list shall be maintained in each classroom.

7. The child care agency shall obtain individual permission slips signed and dated by the parent/guardian for each field trip prior to the activity.

8. A signed Personal Safety Curriculum Notification Form indicating the parent/guardian have been provided an opportunity to review the personal safety curriculum offered by the child care agency and have been notified of the child sexual abuse/personal safety curriculum.

(e) Immunization Record Requirements.

1. The child care agency shall have a Tennessee Department of Health Official Immunization Certificate before accepting any child age two (2) months or older into care. All required vaccinations must be completed by eighteen (18) months of age.

2. Exceptions to immunization record requirements may be made only if:

(i) The child’s physician or a state or local health department provides a signed and dated statement giving a medical reason why the child should not be given a specified immunization;

(ii) The child’s parent provides a signed written statement that such immunizations conflict with his/her religious tenets and practices; or (iii) If care for children of homeless families and/or children in state custody is needed before documentation of immunizations can be confirmed. Care without documentation of immunizations shall not exceed sixty (60) days.

3. Before a school-age child is accepted for care, the center shall have on file a statement from the parent or school that the child’s immunizations are current and that his or her health record is on file at the specified school which the child attends.

(f) Children’s Record Requirements.

1. The following information shall be documented and shared with all educators of an infant, toddler or non-verbal child during the day:

(i) Time and amount of feeding;

(ii) Any incidence of excessive spitting up;

(iii) Toileting;

(iv) Times of diaper changes;

(v) Sleep patterns; and (vi) Developmental progress.

2. Before a child under the age of sixty (60) months of age is accepted for care, the parent/guardian shall provide documentation, signed or stamped by a physician or licensed medical provider, that the child has completed a well-child examination unless the children are homeless and/or in state custody. If the children of homeless families and/or children in state custody are accepted for care, they may supply well-child documentation no more than sixty (60) days after enrollment. This record shall be kept on file at the child care agency for one (1) year.

3. Each infant, toddler and pre-school child shall have a transition plan for moving from one age group to another.

(g) School-Age Children’s Record Requirements.

1. The information form shall list the name, address, and phone number of the school the child attends.

2. The records of any child who is five (5) years old in a child care agency which lacks approved kindergarten status for purposes of T.C.A. § 49-6-201 shall include a signed acknowledgment by the child’s parent or guardian that recognizes that the child’s attendance does not satisfy the mandatory kindergarten prerequisite for the child’s enrollment in first grade. The statement of acknowledgment shall be signed by the parent or guardian and maintained in the child’s file.

(h) Record Requirements for Children with Special Needs. The child care agency will maintain a written activity record that consists of daily activities and behavior and information pertinent to the needs of the individual child.

(3) Staff Record Requirements.

(a) The child care agency shall maintain a file for all staff in a central location within the child care agency.

(b) Staff records shall be maintained for at least one (1) year following the separation of the staff from the child care agency.

(c) Staff records shall include the following information for each staff member:

1. The name, birth date, the social security number, address, and telephone number;

2. An emergency contact name/phone number/address;

3. Documentation of education and certificates of conferences and workshops attended in the preceding year, as recorded in the TNPAL system;

4. Documentation signed by the examining licensed physician, nurse practitioner or physician’s assistant, verifying that the staff person is physically, mentally and emotionally capable of safely and appropriately providing care for children in a group setting, if the staff person is an educator, owner, operator, director, manager, or will otherwise have unsupervised contact with children. The documentation shall be on file within ten (10) calendar days of employment or work start date;

5. Documentation that staff have been screened and/or tested for all communicable diseases as required by the Department of Health prior to having contact with children;

6. Written employment history verified in a written statement that employment

history has been checked prior to employment;

7. Documentation of annual performance reviews including personnel and corrective actions;

8. Date of employment and date of separation, as applicable, from the child care agency;

9. Daily attendance (including time in/out);

10. Signed and completed criminal history disclosure form; and 11. Verification of criminal and juvenile background check results, the vulnerable person’s and sex offender registries results, and the results of a review of the protective services records of the Departments of Children’s and Human Services.

(d) In addition, driver records shall contain the following information:

1. Copy of driver license showing proper endorsements;

2. Verification of a valid driver license and driver history check;

3. Annual physical exam;

4. Verification of a clear drug screen prior to assuming driving duties; and 5. Verification of Cardiopulmonary Resuscitation and First Aid Certification.

(e) Substitute and Volunteer Records. Records of substitutes and volunteers shall include their names, addresses, telephone numbers and hours and dates of service.

(f) Substitute Pool Records. All staff records shall be available on-site where the substitute is working either as print copies or web-accessible documents.

History

• Authority: T.C.A. §§ 71-1-105(a)(5) and (a)(12); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule certified June 10, 1974. Amendment filed March 16, 1978; effective April 17, 1978. Repeal and new rule filed December 6, 1983; effective January 5, 1984. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-01-.07). Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.09 INCIDENT REPORTING

(1) Reports of Incidents, Illnesses, Accidents, Injuries, and Fatalities.

(a) Incidents, accidents, injuries, and signs of illness shall be reported to the parent/guardian no later than the child’s release to the parent/guardian or authorized representative on the date of occurrence.

(b) Serious injuries or signs of serious illness shall be reported to the parent/guardian immediately.

(c) The child care agency shall not delay seeking emergency treatment due to a delay in contacting the parent/guardian.

(d) Incidents, accidents, injuries, and signs of serious illness to children shall be documented immediately with the following information:

1. Child’s name and date of birth;

2. Name of the person writing the report;

3. Date and time;

4. Date and time of completion of incident report;

5. Description of incident and circumstances; and 6. Action(s) taken by the child care agency.

(e) The documentation shall be provided to the parent/guardian the same day of the incident, and filed in the child’s record.

(f) The child care agency shall notify the Department of all serious incidents the same day of the incident, by emailing or calling the Complaint Hotline or making the submission through the provider portal. Serious incidents include but are not limited to the following:

1. Any injury that requires medical treatment beyond on-site first aid;

2. Reports made to the Department of Children’s Services, law enforcement, or anytime it is necessary to call 911;

3. Any incident that may result in staff exclusion from child care as a result of an excludable offense (see background check requirements);

4. Transportation accidents and moving violations that occur when children are in the vehicle;

5. Any child or adult fatality at the child care agency; and 6. Any incident of children leaving the premises without supervision, or children left unsupervised (in a classroom, on the playground or any other area of the facility, at a field trip location, or being left in a vehicle) that may result in imminent harm.

(g) Serious injuries must be reported to the Department using the Department-provided form and must be submitted the same day the injury occurred.

(h) Serious incidents involving suspected child abuse or neglect must be reported to the Department of Children’s Services.

History

• Authority: T.C.A. §§ 71-1-105(a)(5) and (a)(12); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule certified June 10, 1974. Amendment filed March 16, 1978; effective April 17, 1978. Repeal and new rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-01-.08). Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.10 DUTY TO REPORT CHILD ABUSE AND NEGLECT

(1) Duty to Report Child Abuse and Neglect.

(a) Duty to Report.

1. Every operator, owner, licensee, director, primary educator or staff member of, or substitute staff member or volunteer in, a child care agency licensed by the Department of Human Services is individually responsible and required to immediately report any reasonable suspicion of child abuse or neglect to either the Department of Children’s Services and/or local law enforcement or the judge of the juvenile court in the county of the child’s residence, pursuant to T.C.A. §§ 37-1-403 and 37-1-605.

2. Any statement from a child reasonably indicating abuse/neglect of that child or another child or any evidence of abuse/neglect observed on a child shall be immediately reported by staff to the Department of Children’s Services and/or to local law enforcement or to the judge of the juvenile court in the county of the child’s residence.

3. Determining Suspicion of Abuse/Neglect.

(i) The child care agency and/or individual staff shall not delay reporting possible abuse or neglect in an attempt to investigate or verify the abuse/neglect allegations.

(ii) The child care agency shall limit questioning of the child to basic inquiries necessary to determine if any reasonable possibility of abuse or neglect exists. No suggestions as to the validity of the child’s statements shall be made to the child during this time.

(iii) The child care agency shall not attempt to validate (or “prove”) the allegation prior to making a report as required by the law.

4. Each child care agency shall develop written procedures, approved by the Department, for staff to follow when reporting suspected abuse or neglect that is alleged to have occurred in the child care agency.

(b) Prohibited Procedures for Reporting Suspected Child Abuse or Neglect/Penalties.

1. A child care agency shall not develop or implement any policy that inhibits, interferes with or otherwise affects the duty of any staff, including substitutes and volunteers, to report suspected abuse or neglect of a child.

2. A child care agency shall not require staff to report to the child care agency or seek the approval of child care agency management or ownership prior to any individual staff member reporting the suspected abuse or neglect.

3. A report required by subparagraph (a) above shall not be made to any other entities or persons, including, but not limited to, hospitals, physicians, or educational institutions as an alternative to, or substitute for complying with, subparagraph (a) above.

4. A person required to report by subparagraph (a) above shall not suggest, advise or direct a parent/guardian or caretaker of a child enrolled in the child care agency to make a report of suspected child abuse or neglect regarding that parent’s/guardian’s or caretaker’s own child who is enrolled in the child care agency as an alternative to, or substitute for complying with subparagraph (a) above.

(c) Child Care Agency Duties During Investigations of Child Abuse and Neglect; Custodial

Authority of Children.

1. Every operator, owner, licensee, primary educator, staff member, substitute staff member or volunteer in a child care agency licensed by the Department of Human Services shall fully cooperate with all agencies involved in the investigation of child abuse or neglect and with the Department of Human Services.

2. The child care agency shall provide access to records of children and staff to the Departments of Children’s and Human Services and to law enforcement agencies.

3. The child care agency shall allow appropriate investigators to interview children and staff.

4. The child care agency shall not interfere with an abuse or neglect investigation.

5. The child care agency shall protect the child by reviewing the investigator’s identification.

6. The child care agency shall maintain confidentiality of the investigation and shall not disclose the investigation or details of the investigation directed by the Department of Children’s Services, law enforcement or the Department of Human Services.

(d) Upon notification of a pending abuse/neglect investigation of any individual who is a child care agency staff member or resident of a family or group child care home, the licensee shall enter into a safety plan with the Department regarding the individual’s access to the child care agency and to children in the care of the child care agency.

(e) All child care agency staff, including auxiliary staff, shall receive documented, Department-approved training annually regarding proper procedures to report child abuse and neglect.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 37-1-113; 37-1-401, et seq.; 37-1-601, et seq.; 37-1-605; 37-5-512; 71-1-105(5) and (12); 71-3-501, et seq.; 71-3-502(a)(2); and 71-3-508.
• Administrative History: Original rule filed April 22, 1992; effective June 6, 1992. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-01-.09). Amendments filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-01-.11 SUPERVISION

(1) Supervision. When children are not within the direct sight and sound of an adult, the term “supervision” means:

(a) For children six (6) weeks of age through nine (9) years of age, the adult must be able to hear the child at all times, must be able to see the child with a quick glance, and must be able to physically respond immediately.

(b) For children six (6) weeks of age through five (5) years of age during mealtime, an adult must be in the direct sight and sound of children while the children are eating.

(c) For children ten (10) years of age and older, the adult shall know the whereabouts and activities of the children at all times and must be able to physically respond immediately.

(d) For children ages ten (10) years and above who are grouped with children under ten (10) years of age, the minimum supervision requirements for children ages six (6) weeks through nine (9) years, shall be followed.

(e) Each child shall be greeted and received by the specific educator assigned who will have ultimate responsibility and accountability for their supervision, oversight and care upon the child’s arrival.

(f) Helper devices such as mirrors, electronic sound monitors, etc. may be used as appropriate to meet these requirements.

(2) Supervision Procedures.

(a) To ensure the health and safety of all children enrolled, the management of the child care agency shall maintain a system that enables all children to receive a level of supervision that is appropriate to their age and their developmental, physical and mental status. The child care agency staff shall be within sight and sound of the children in their care at all times, be aware of their activities, and be able to intervene appropriately.

(b) Staff shall conduct a visual inspection of all areas of the building and grounds immediately after closing the child care agency for the day in order to ensure that no children have been unintentionally left in any part of the child care agency’s facilities.

(c) If any child is left unattended at any time, the child care agency is subject to legal enforcement action. A child left unattended includes, but is not limited to a child:

1. Walking out of a child care agency without the knowledge of staff;

2. Being left in a classroom or any other area of the facility;

3. Being left on the playground;

4. Being left at a field trip location; or 5. Being left on a vehicle.

(d) Procedures for Release of Children from the Care of the Child Care Agency.

1. Children shall be released to only the child’s parent/guardian, or other person authorized by the parent/guardian in accordance with the child care agency’s policies, unless otherwise directed by the Department of Children’s Services or law enforcement authorities.

2. The child care agency shall verify the identity of the parent/guardian or other authorized person and shall require presentation of a photo identification for comparison with the child’s file if the educator does not recognize the individual.

3. In the event an unauthorized person requests release of a child, authorization may be obtained by calling the parent/guardian.

(i) The child care agency shall document the date and time of the contact, to whom he/she spoke, and to whom the child was released.

(ii) The child care agency shall verify the identity of the unauthorized person by requiring presentation of a photo identification.

4. The person to whom the child is released shall sign the child out of the child care agency as required in subparagraph (e) below.

5. The child care agency shall immediately call 911 or other local emergency services number if anyone whose behavior may place a child at imminent risk attempts to pick up a child.

(e) Sign-In/Sign-Out Procedures.

1. Child care agencies shall maintain a daily sign-in and sign-out sheet or electronic sign-in or sign-out record that includes:

(i) Each child’s printed or typed full name;

(ii) Date;

(iii) Time of entry;

(iv) Time of departure; and (v) Name of the individual who brought the child to the child care agency and the individual’s name that picked up the child from the child care agency.

2. Child care agency staff shall only sign children in and out of the child care agency when transported to the child care agency by the child care agency’s transportation service or local school transportation system and no parent/guardian or authorized representative is present or at the discretion of the Department.

3. These sign-in and sign-out sheets or electronic records shall be maintained for one (1) year and shall be kept on-site and immediately available.

(3) Meal and Snack Time Supervision.

(a) During meal and snack time, staff shall maintain direct supervision of children between six (6) weeks and five (5) years of age and maintain supervision of children between six (6) and nine (9) years of age.

(b) During meal and snack times, educators that are providing supervision are prohibited from engaging in any activities unrelated to mealtime while children are eating.

(c) Child care agencies shall develop and follow a written mealtime supervision plan that addresses:

1. Room arrangement that will allow staff to directly supervise each child at all times;

2. Individual staff duties to ensure age-appropriate supervision can be given to each child at all times;

3. Individual children’s needs, including high risk behaviors; and 4. Interruptions and emergencies.

(d) Mealtime supervision plans shall be updated as needed.

(e) The mealtime supervision plan shall be prominently posted in each area where food is served.

(4) Playground Supervision.

(a) The same supervision requirements are applicable on the playground as in the classroom.

(b) Child care agencies shall develop and follow a written playground supervision plan that includes:

1. Arrival and departure procedures;

2. Playground design and placement of equipment;

3. Individual staff duties to ensure age-appropriate supervision can be given to each child at all times;

4. Individual children’s needs, including high risk behaviors;

5. Emergency procedures, including communication with other staff; and 6. Name-to-face roll call before leaving classroom and upon arrival at playground and prior to leaving playground and upon arrival in classroom.

(c) Playground supervision plans shall be updated as needed.

(5) Supervision During Transitions.

(a) Child care agencies shall develop and follow a written plan that includes the use of a name-to-face roll call when transitioning children to and from the classroom, including:

1. Restroom breaks;

2. Kitchen/cafeteria;

3. Gyms or other indoor play areas;

4. Transportation drop-off/pick up sites; and 5. Any other location in the area that children are transitioned to or from the classroom.

(6) Supervision During Field Trips.

(a) Child care agencies shall provide direct supervision to each child at all times during field trips.

(b) The adult:child ratio shall be doubled during field trips. Exception: for family and group homes, the adult:child ratio during field trips shall be increased by one (1).

(c) The child care agency shall monitor attendance by checking attendance as follows:

1. Prior to leaving the child care agency;

2. Upon arrival at each destination;

3. At the beginning and end of each activity (such as lunch, breaks, etc.);

4. Upon departing each destination; and 5. Upon arrival at the child care agency.

(7) Supervision in and Near Water.

(a) When children are engaged in activities in or near a body of water, the following requirements shall be met:

1. Swimming Ratio Chart Age Group Adult:Child Ratio Six (6) weeks – Twelve (12) months 1:1 Thirteen (13) months – Thirty-five (35) months 1:2 Three (3) years 1:3 Four (4) years 1:4 Five (5) years 1:5 School-age (Kindergarten and above) 1:10 2. One (1) adult present shall have a current certificate in advanced aquatic lifesaving skills. This person shall supervise from above the level of the swimmers. This person may be the lifeguard provided by the facility.

2. The lifeguard, including those provided by a swimming facility, shall not be included in the required adult:child ratio while performing lifeguard duties.

(8) Safe Sleep Supervision Procedures.

(a) To reduce the risk of Sudden Unexpected Infant Death (SUID), including Sudden Infant Death Syndrome (SIDS), suffocation and other sleep-related deaths, child care agencies shall follow safe sleep practices.

1. Infants shall sleep in cribs or play yards with a firm sleep surface with a fitted sheet;

2. No infant shall be allowed to sleep on a sofa, soft mattress, adult bed, in a car seat, in a swing, or in other restraining devices;

3. Infants shall be positioned on their backs for sleeping;

4. Bibs shall be removed prior to placing infants in a crib for sleeping;

5. Soft bedding is prohibited and includes, but is not limited to, pillows, bumper pads, blankets, quilts, comforters, stuffed toys, and other soft items;

6. Mobiles and other toys that attach to any part of the crib are prohibited;

7. It is not necessary to reposition infants once they have demonstrated the ability to turn front to back and back to front independently;

8. Any cribs or other sleeping equipment prohibited by federal product safety regulations shall not be permitted;

9. Infants shall be touched by an educator every fifteen (15) minutes in order to check breathing, body temperature and position;

10. If a child appears not to be breathing, the child care agency shall immediately begin CPR and immediately call for emergency medical assistance;

11. The child care agency shall have a written policy describing safe sleep practices and provide a copy of that policy and training to all educators and volunteers assuming infant-caregiving duties;

12. All infant educators shall follow safe sleep procedures;

13. Infants that arrive asleep in car seats or fall asleep in any piece of equipment other than a crib must be immediately removed and placed on their back in a crib;

14. Avoid letting the infant overheat and ensure infants are dressed appropriately for the environment (no greater than 1 layer more than an adult would wear in the same environment); and 15. Any practice that is an exception to the above procedures shall not be used without written authorization from a physician.

(9) Naptime Supervision and Requirements for Naptime (a) At naptime, after the children have settled down, adult:child ratios for ages thirty-one (31) months and above may be reduced by fifty percent (50%) in each classroom as long as the children are adequately protected and all of the following requirements are met:

1. At least one (1) adult educator shall be awake and supervising the children in each nap room/sleeping area;

2. There are enough adults on the premises so that the adult:child ratio required for children when they are awake shall be met immediately; and 3. Ratios for children six (6) weeks through thirty (30) months shall be maintained.

(b) Maximum group size limits do not apply.

(10) Requirements for Nighttime Care.

(a) If there is a sleeping or resting child during nighttime, there shall be at least one (1) adult educator awake and supervising.

1. The educator shall be able to hear the child at all times, shall be able to see the child with a quick glance, and shall be able to physically respond immediately.

2. Helper devices such as mirrors, electronic sound monitors, etc. may be used as appropriate to meet these requirements.

History

• Authority: T.C.A. §§ 71-1-105(a)(5) and (a)(12); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-01-.10). Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.12 HEALTH AND SAFETY

(1) The on-site staff shall be responsible for the daily health and safety of children in care.

(2) The child care agency shall ensure that the child care environment and practices support child health and safety.

(3) The receiving educator shall observe each child upon arrival each day for signs of illness and injury.

(4) Designated staff shall immediately contact a parent/guardian when a child shows sign of illness or infection.

(5) The receiving educator shall document any obvious marks or injuries and shall note any comments from the parents pertaining to the marks or injuries.

(6) A child showing signs of illness shall be cared for apart from other children to the extent that supervision can be maintained for all children, and the parent shall be contacted and arrangements made for pick up.

(7) A child’s temperature shall be taken using a non-invasive method unless otherwise prescribed by a physician.

(8) Universal and standard precautions, as defined by the Centers for Disease Control, shall be followed when handling or cleaning bodily fluids.

(9) First Aid.

(a) A standard first aid kit, as defined by the current National Health and Safety Performance Standards: Guidelines for Out-of-Home Child Care shall be accessible to all staff, and all staff shall be familiar with its contents and use.

(b) All staff shall obtain first aid training within ninety (90) days of employment. At least one staff member who has current certification in first aid from a certifying organization recognized by the Department shall be on-site at all times.

1. The training/certification shall be applicable to the ages present in the classroom:

(i) Infant/Child first aid; and/or (ii) Adult first aid if children over age twelve (12) are present.

(c) Current and comprehensive first aid information shall be prominently posted in each area that children use.

(d) Non-Traditional Hour First Aid Requirements. One (1) staff person on duty at all times shall have current certification or the equivalent in first aid from a certifying organization recognized by the Department.

(10) Cardiopulmonary Resuscitation (CPR) Requirements.

(a) All staff on duty shall receive training in Cardiopulmonary Resuscitation (CPR) as recognized by the Department within ninety (90) days of employment. At least one staff member who has certification in CPR from a certifying organization recognized by the Department shall be present on-site at all times.

1. The training/certification shall be applicable to the ages present in the classroom:

(i) Infant/Child CPR; and/or (ii) Adult CPR if children over age twelve (12) are present.

(11) Communicable Diseases.

(a) A child diagnosed with a reportable communicable disease shall have proof of treatment prior to readmission if necessary.

(b) Parents/guardians of every child enrolled shall be notified immediately if a diagnosed reportable communicable disease has been identified in the child care agency.

(c) The child care agency shall report the occurrence of any reportable communicable disease to the local health department no later than the end of the day on which it is discovered.

(d) The list of required reportable communicable diseases is maintained by the Tennessee Department of Health and is available at: https://www.tn.gov/health/cedep/reportable-diseases.html (12) Medications.

(a) Receiving Medications.

1. All medications shall be received from the parent/guardian by a designated staff person.

2. The designated staff person(s) shall:

(i) Obtain the parent’s/guardian’s written authorization to administer each medication;

(ii) Document that the medicines or drugs are in the original container, are not expired, and are labeled with the child’s name;

(iii) Document the specific dosage and times the medication is to be administered to the child; and (iv) Document that the parent/guardian has provided the child care agency with instructions on the means and method of administration.

(b) Administering Medications.

1. All medications shall be administered by a staff person or persons who have received training in medication administration. Online training is available through the American Academy of Pediatrics at no cost.

2. The following documentation shall be maintained in the child’s file and a copy provided to the parent/guardian:

(i) Medication was administered according to parent/guardian or health care provider instruction, including times and amounts of medications administered;

(ii) Any side effects observed;

(iii) Name of staff person administering medication to child; and (iv) Unused medication was returned to the parent/guardian.

3. Medication shall never be administered in bottles or infant feeders unless authorized by a physician. Educators shall ensure that medication administered in this way is not accessible to other children.

(c) Accessibility of Medications.

1. Medication shall not be accessible to children unless a physician’s authorization for the current school year is on file that allows a school-age child to have selfadministered medication.

2. All medication shall be stored in a child-proof compartment or container.

3. If medications requiring refrigeration are kept in a refrigerator used for food storage, the medicine shall be put in a leak-proof, child-proof container.

4. Medication requiring emergency administration, as prescribed by a licensed medical professional, e.g. an “Epi-Pen” or asthma inhaler, may be kept in an unlocked container that is inaccessible to children.

(d) Diaper cream, ointments, sunscreens and lotions shall be inaccessible to children.

(13) Prohibited Practices and Products.

(a) Smoking.

1. Smoking/vaping is not permitted in any indoor area or vehicle of the child care agency at any time.

2. Smoking/vaping is not permitted on the playground or in any outdoor area accessible to children during the time children are present.

3. Smoking/vaping is not permitted within fifty (50) feet of the child care agency entrance.

4. “No Smoking” signs shall be posted conspicuously at each child care entrance, as required by state law.

(b) Alcoholic Beverages.

1. The use of alcoholic beverages is not permitted in a child care agency during the hours of operation.

2. Alcoholic beverages stored in areas of the child care agency where care is provided shall not be accessible to children.

(c) Illegal activities, inappropriate activities, or any activities that otherwise place children at risk that occur on the premises, property, or in a vehicle on the property of the child care agency.

(d) Kitchen knives and other potentially dangerous utensils or tools shall be secured so that they are inaccessible to children.

(e) All items labeled “keep out of reach of children” shall be stored so that they are inaccessible to children.

(f) Personal belongings of residents and staff (such as, but not limited to, contents of purses, backpacks, coat pockets, diaper bags, etc.) shall be inaccessible to children at all times.

(14) Firearms and Weapons.

(a) Firearms shall not be permitted on the premises of a child care agency, in any vehicle used to transport children for the child care agency, or in the presence of a child.

1. In a private residence, deadly weapons and potentially hazardous items, such as power tools, are permitted on the premises, but shall be kept locked, out of sight, and inaccessible to children at all times. Firearms kept in a private residence shall be locked and unloaded with ammunition locked up separately.

2. The provisions of this subparagraph (a) are not applicable to law enforcement officers or to armed security guards/officers meeting all registration and training requirements as set forth in Tennessee Code Annotated, Title 62, Chapter 35 for providing security or patrol services at or in a public school, public charter school, private school, or church-related school.

(15) Diapering.

(a) Children shall be checked regularly throughout the day to determine if they are wet or soiled.

(b) Children shall be diapered/changed and cleaned promptly when wet or soiled.

(c) The diapering area and/or toileting area shall be located near a hand-washing station and shall be located in a separate area from the food preparation area.

(d) Diapering surfaces shall be off the floor and nonporous.

(e) Children shall never be left unattended on an off-the-floor diapering surface.

(f) Educators shall provide rich social interchanges such as smiling, talking, touching, singing, calling child by name, and engaging in eye contact.

(g) Educators shall utilize sanitary diapering procedures:

1. Adults shall wash their hands, using soap and running water, following each diaper change;

2. The child’s hands shall be cleaned when soiled;

3. Diapering surface shall be washed with soap and water and sanitized after diapering each child;

4. Soiled diapers and wipes shall be disposed of in such a manner as to prevent access by children and to prevent cross-contamination;

5. The required diapering procedure shall be used with children of all ages and abilities who require diapering;

6. Pre-school and school-age children requiring assistance with toileting needs shall receive assistance in a location designated for that purpose which provides privacy from other children and adults;

7. Children who require diapering may be diapered on a nonporous, washable diapering surface that adequately protects the floor from contamination and is not located in the food preparation area; and 8. The floor beneath and surrounding the diapering surface shall be immediately cleaned and sanitized if the area has become contaminated after each diapering.

(h) Cleaning, Sanitizing and Disinfecting.

1. Child care agencies shall use U.S. Environmental Protection Agency (EPA)registered products for cleaning, sanitizing and disinfecting. Environmentally friendly products may be used if they have been certified by Green Seal, UL/EcoLogic, and/or EPA’s Safer Choice.

2. Cleaning, sanitizing and disinfecting products should not be used in close proximity to children, and adequate ventilation should be maintained when the products are in use.

3. Bleach and Water solution:

(i) Agencies should refer to current Department of Health guidelines on making an appropriate bleach solution.

(ii) After cleaning the area with soap and water solution, spray or wipe the surfaces with disinfectant/bleach and water. Make sure to allow surfaces to fully air dry.

(16) Staff Health.

(a) Staff members with signs of a communicable disease shall not be present, and the child care agency shall take prompt steps to prevent further spread of the illness.

History

• Authority: T.C.A. §§ 71-1-105(a)(5); 39-17-1803; 71-3-501, et seq.; 71-3-502(a)(2)-(3); and 71-3-508.
• Administrative History: Original rules filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.13 FOOD AND FOOD SERVICE

(1) Meal and Snack Time Procedures.

(a) Staff shall wash their hands with soap and water before and after preparing and serving meals and snacks. Children shall wash their hands with soap and water before and after meals, snacks, and bottle feeding.

(b) An educator shall be present near the table or high chair where a child is eating.

Educators shall not be engaged in any activities unrelated to mealtime while children are eating.

(c) Children shall be seated at appropriately sized tables and chairs while eating.

(d) Educators shall engage children in developmentally appropriate conversation to include nutrition and healthy eating choices.

(e) Child care agencies shall work to teach children appropriate portion sizes by serving meals and snacks using plates, bowls, and cups that are developmentally suited to their nutritional needs.

(f) An infant shall be held while drinking from a bottle if the infant is too young to use a high chair.

(g) Educators shall ensure that infants have completed feeding and swallowed all milk/formula before being laid down for a nap.

(h) Children shall be restrained using the manufacturer’s safety restraint while sitting in a high chair or similar seating device.

(i) Bottles may be served from the refrigerator without warming.

(j) If desired, bottles may be warmed:

1. Under running warm tap water; or 2. In a container of warm water no warmer than one hundred twenty degrees Fahrenheit (120°F) for no more than five minutes.

(k) Bottles shall not be propped, and a child shall not be given a bottle while lying flat.

(l) Children shall not be permitted to carry a bottle with them throughout the day.

(m) Children shall not have food or drink while in beds, cots, cribs or on mats.

(n) Prevention of Injuries by Bottle Warmers, Crock Pots and Microwaves:

1. Crock pots are prohibited for use as bottle warmers;

2. Crock pots shall be kept in the kitchen area for cooking meals and shall be inaccessible to children;

3. Microwave ovens and their immediate surrounding area, including cords, shall not be accessible to infants, toddlers, or pre-school children;

4. To prevent scalding, liquid and solid foods heated in a microwave shall be stirred and carefully checked for “hot spots” prior to serving;

5. School-age children shall use microwaves only under direct supervision;

6. Breast milk and formula shall not be heated in a microwave oven; and 7. All heated bottles shall be checked for safe temperatures before serving.

(2) Choking Prevention.

(a) Solid foods (including cereal) shall not be given to children with normal eating abilities in bottles or infant feeders unless written authorization from a physician is on file.

(b) It is the responsibility of the supervising educator to ensure that food is not accessible or served until it has been chopped, diced, cut or mashed and is appropriate for each child’s age, and individual eating, chewing and swallowing ability.

(c) Food shall not be given to a child until the supervising educator is able to provide focused attention to the child.

(d) Educators shall check that no food is left in the mouth of an infant/toddler before putting the infant/toddler down to sleep.

(e) The supervising educator is prohibited from performing other classroom duties unrelated to food service during mealtime.

(f) Children shall not be permitted to wear teething necklaces, pacifiers, or any item around their neck or attached to their clothing that are potentially hazardous and associated with choking.

(3) Food Preparation.

(a) Powdered milk shall not be substituted for fluid milk, formula, or breast milk.

(b) Formulas shall be used as directed on the container or as directed in writing by a physician.

(c) Once milk, formula, or breast milk has been warmed, it shall not be re-warmed or returned to the refrigerator.

(d) Breast milk and formula remaining in bottles after a feeding shall be disposed of in accordance with the timeframes recommended by the Centers for Disease Control and Prevention.

(e) Frozen breast milk shall be labeled with the date it was expressed and the name of the child.

(f) Food, formula, milk, or breast milk brought from home shall be:

1. Labeled with the child’s name;

2. Labeled with the date the item(s) were received; and 3. Shall be refrigerated immediately, if applicable.

(g) Previously opened baby food jars shall not be accepted in the child care agency.

(h) If food is fed directly from the jar by the educator, the jar shall be used for only one feeding and discarded.

(4) Nutrition.

(a) If the child care agency provides food, it shall be in accordance with the USDA’s Child and Adult Care Food Program (CACFP) nutritional guidelines.

(b) No sugar sweetened beverages shall be served to children at any time by the child care agency.

(c) Whether provided by the parent or the child care agency, the following meals/snacks shall at a minimum be offered to children based on their hours of attendance:

1. Breakfast or morning snack;

2. Lunch;

3. Afternoon snack;

4. A child in care for ten (10) hours or more shall be offered an additional snack or meal;

5. Breakfast shall be provided to children who arrive before 7:00 a.m. and have not had breakfast at home unless they are school-age children at the facility for before care; and 6. Care during non-traditional hours: For a child who is in care for extended or nighttime hours, meals and snacks will be offered in accordance with the child’s hunger and the hours of attendance.

(5) Food Service.

(a) A child shall not be forced to eat.

(b) Food shall not be withheld from a child.

(c) Children shall be given adequate time to eat.

(d) Food shall not be used as a reward. This does not prohibit special events such as a holiday celebration or a birthday party.

(e) Food Allergies.

1. Information about individual children’s food allergies shall be posted prominently, both where food is prepared and where food is served.

2. For a child with life-threatening allergies, a written plan of action endorsed by the child’s pediatrician or licensed medical provider shall be posted where the educator has immediate access.

3. Any child’s food allergies and the accommodations and precautions in place to address food allergies shall be prominently noted.

4. Outline child care agency procedures that reduce cross-contamination of allergenic foods and other inadvertent exposure to allergens for any child with food allergies.

(f) A weekly menu that includes all snacks and foods served shall be posted and followed.

(g) Meal and snack substitutions shall be noted on the menu in advance.

(h) The feeding schedule for an infant shall be in accordance with the child’s need.

(i) When caring for nursing children, the child care agency shall make accommodations that support and facilitate a family’s decision to continue breast feeding.

(6) High Chairs and Tables.

(a) When children are capable of using a high chair, they shall be allowed to do so and to experiment with food, with feeding themselves, and shall be allowed to eat with fingers or a spoon.

(b) High chairs and tables on which food is prepared and served shall be washed with soap and water and sanitized directly prior to and after snacks and meals.

(c) Floors under tables and high chairs on which food is served shall be swept and/or vacuumed after each meal and cleaned as needed.

(7) Dishes and Utensils.

(a) Napkins and individual break-resistant utensils, glasses/cups and appropriate dishware shall be provided for children who eat independently.

(8) Food Storage.

(a) Foods requiring refrigeration or cold storage shall be maintained at forty degrees Fahrenheit (40°F) or below.

(b) Foods requiring hot storage shall be maintained at an internal temperature of one hundred forty degrees Fahrenheit (140°F) or above.

(c) Frozen foods shall be maintained at a temperature of zero degrees Fahrenheit (0°F) or below.

(d) Thermometers shall be placed in all refrigerators, freezers and all other cold storage equipment.

(e) No poisonous or toxic materials, except those required for sanitization purposes, may be used or stored in a food-service area of a facility.

(9) Food Sanitation.

(a) All food shall be protected from contamination during storage, preparation, transportation, and serving.

(b) The child care agency shall not serve home-preserved food or raw milk to children in care.

(c) Raw fruits and vegetables prepared on-site shall be washed before use.

(d) Milk and food shall not be placed on the table longer than fifteen (15) minutes prior to the beginning of the meal to avoid contamination and spoilage.

(e) All re-useable utensils, cups, and dishware shall be made from nontoxic materials.

(f) All re-useable utensils, cups, and dishware shall be thoroughly cleaned and sanitized after each use.

(g) Single-service articles shall be made from nontoxic materials and shall be stored, handled, and dispensed in a sanitary manner.

(h) All utensils and food-contact surfaces or equipment used in the preparation, transportation, service, display, or storage of food shall be thoroughly cleaned and sanitized prior to and after each use.

History

• Authority: T.C.A. §§ 71-1-105(a)(12) and 71-3-501, et seq.
• Administrative History: Original rules filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.14 ;

19. Outdoor play or equipment;

20. Napping or sleeping equipment for each child six (6) weeks to five (5) years in care for six (6) or more hours;

21. Bedding labeled with each child’s name or corresponding code;

22. Time limitation on the use of television, radio, video, computers, and personal electronic devices;

23. A reclining rest period for children in care six (6) or more hours;

24. Individual educator attention to each child described in 1240-04-01-.15;

25. Educational activities described in 1240-04-01-.15(7);

26. Plans for bedtime rituals/routines;

27. Developmental checklist of developmental milestones upon disenrollment; and 28. Requirement regarding when toilet learning is started.

History

• Authority: T.C.A. §§ 71-3-501, et seq., and 71-3-502(a)(2).
• Administrative History: Original rules filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.15 PROGRAM, LANGUAGE, AND LITERACY DEVELOPMENT

(1) Schedule and Routines.

(a) Each child shall be provided an opportunity to participate in the program activities.

(b) The environment shall support the development of each child’s independence and selfhelp skills.

(c) Routines such as snacks, meals, and rest shall occur at approximately the same time each day.

(d) There shall be a balance between child’s choice and educator-directed activities.

(e) There shall be a balance between vigorous activity and quiet play or rest throughout the day.

(f) The child care agency shall plan for and provide distinctive arrival and departure routines that will support children in their transitions.

(g) The educator(s) shall give individual attention to each child throughout the day to include the following activities:

1. For infants/toddlers:

(i) The educator shall hold and comfort children that are upset;

(ii) The educator shall provide rich social interchanges such as smiling, talking, touching, rocking, singing, and reading;

(iii) The educator shall respond to the child’s sound;

(iv) The educator shall engage in interactive play that includes activities such as movement, dance, musical games, pretend play and finger play;

(v) The educator shall be attuned to child’s needs and respond;

(vi) Children that lack mobility shall have an opportunity to experience their environment by engaging in the following activities daily:

(I) Being read to individually or in small groups;

(II) Carrying them around in order to explore the classroom;

(III) Allowing them to touch a variety of objects; and (IV) Naming and identifying objects.

(vii) A variety of culturally diverse books shall be available for children to explore including board, cloth, and soft vinyl books; and (viii) For infants less than (6) months of age, each infant shall have direct supervised tummy time every day when they are awake and alert. Engage with infants on the ground each day to optimize adult-infant interactions.

Infants should be placed on a firm, safe surface such as a non-plush carpet, mat, or rug for tummy time, with no soft materials placed under or around the infant during tummy time. If the infant falls asleep during tummy time, educators shall immediately place the infant in a crib on their back and follow all safe sleep procedures.

2. For pre-school children:

(i) The educator shall engage in pretend play;

(ii) The educator shall provide age-appropriate puzzles and blocks;

(iii) The educator shall encourage children to talk with each other;

(iv) The educator shall provide opportunities for problem-solving activities;

(v) The educator shall provide opportunities for writing;

(vi) The educator shall provide opportunities for creative activities;

(vii) A variety of culturally diverse books shall be available for children to handle including board, cloth, and soft vinyl books;

(vi ii) The educator shall read to individually or in a group daily;

(ix ) The educator shall provide sorting and identifying activities; and (x) The educator shall provide opportunities for helping with daily classroom and self-care routines.

3. For school-age children:

(i) The educator shall provide opportunities for group activities and cooperative play;

(ii) The educator shall provide activities that foster gaining a sense of competence and developing pride in their accomplishments;

(iii) The educator shall provide activities that promote learning to make decisions with others;

(iv) The educator shall provide opportunities for learning to share and take turns;

(v) The educator shall provide activities that foster coordination of large and small muscles; and (vi) The educator shall provide opportunities for increasing problem-solving skills and for conflict resolution.

(h) Upon arrival, infants and toddlers shall be removed from car seats immediately.

(i) Children shall never be left unattended in any restraining device, including swings and high chairs.

(j) Children shall not be kept in restraining devices such as swings and high chairs, or similar seating devices for longer than fifteen (15) minutes.

Exception: Children may remain in high chairs while eating.

(k) The educator shall plan and provide developmentally appropriate opportunities for children to interact with one another.

(l) The educator shall provide opportunities for children to play alone or do homework, if they choose, in a small, quiet area away from other activities while maintaining supervision requirements in 1240-04-01-.11.

(m) School-age children shall be encouraged to participate in planning their own schedules and activities.

(n) Care during non-traditional hours. Children shall be given the same opportunities for developmentally appropriate activities during non-traditional care hours as during conventional care hours.

(2) Electronic Media and Devices.

(a) If electronic media, including but not limited to television, videos/DVDs, or video/computer games, or personal electronic devices are used, they shall be limited as follows:

1. For children less than two (2) years of age, use of electronic media and other electronic devices is prohibited.

2. Television and video/DVD viewing shall be limited to one (1) hour per day and for educational or physical activities only.

Exception: Viewing time may exceed one (1) hour per day for special activities such as movie time as long as the total average time per week does not exceed one hour per day.

3. Computer and personal electronic device time is limited to one (1) hour per day.

4. Television and video/DVD viewing is not allowed during meal or snack time.

5. Exceptions:

(i) Use of electronic media for personal recorded messages from relatives serving abroad in the military is not limited.

(ii) Use of electronic media during transition times when there is a single educator such as during preparation of a meal is limited to the duration of the transition.

(iii) School-age children may use computers for completion of homework with no time limitations.

(iv) All children may participate in activities that utilize computers and electronic devices for educational programs.

(b) If used, computers which allow internet access by children shall be equipped with monitoring or filtering software, or other type of software protection that limits children’s access to inappropriate websites, e-mail, and instant messages.

(c) Videos, movies, and video/computer games shall be previewed by staff for content.

(d) Programs, movies, computer games, and music with violent or adult content shall not be permitted in children’s presence.

(e) Programs, movies, computer games, and music shall be developmentally appropriate for the viewers.

(f) Child care agencies shall inform parents in writing of any scheduled media program viewing.

(g) Other activity choices shall be available to children who do not wish to participate in media time.

(3) Outdoor Play and Playground Routines.

(a) Children of all ages, including infants, who are in care more than three (3) daylight hours, shall have a daily opportunity for outdoor play when the temperature range, after adjustment for wind chill and heat index, is between thirty-two degrees and ninety-five degrees Fahrenheit (32°F and 95°F) and it is not raining.

Exception: Child care agencies where outdoor play is prohibitive or dangerous, as determined in the discretion of the Department, may substitute unoccupied indoor space providing fifty (50) square feet per child, subject to approval by the Department.

(b) Agencies shall develop written policies promoting physical activity and shall strive to remove any potential barriers for children to participating in physical activity.

(c) Outdoor play and moderate to vigorous indoor or outdoor physical activity shall be available as follows:

1. Weather permitting, infants shall be taken outside two to three times per day.

2. Toddlers and preschoolers shall have sixty (60) to ninety (90) minutes of outdoor play per day for full-time programs.

Exception: Indoor activity can be increased if adverse weather does not permit outdoor play.

3. Toddlers shall have sixty (60) to ninety (90) minutes of moderate to vigorous physical activity per eight (8) hour day for full-time programs.

4. Preschoolers shall have ninety (90) to one hundred and twenty (120) minutes of moderate to vigorous physical activity per eight (8) hour day for full-time programs.

5. Physical Activity Requirements for Part-Time Providers:

Number of Hours in Operation hours hours hours hours hours hours Approximate Minutes Required 15 25 30 40 45 50 (d) Children shall be properly dressed, and the length of time outside adjusted according to the weather conditions and the age of the children.

(e) Educators shall be alert for any signs of weather-related distress, including dehydration, heat stroke and frostbite.

(f) Each child care agency shall develop simple playground rules that use positive language. Staff shall verbally communicate these rules to children prior to outdoor play.

(g) Staff shall plan and implement activities that engage all children in developmentally appropriate active, physical play such as skipping, running, and jumping.

(4) Reclining Rest Period.

(a) All children in care for six (6) hours or more shall have an opportunity for a reclining rest period. This is not required for school-age children attending only before and after care or if the children attending the center are on a lengthy field trip.

(b) Children who are fatigued shall be offered an opportunity to rest in addition to scheduled rest periods.

(c) Each child shall be allowed to form his or her own patterns of sleep.

(d) When awake, a child shall not be left in a crib/bed or on a cot or mat for any length of time that is unreasonable for the developmental age of the child.

(e) No child shall be forced to lie down or nap or be forced to stay on a cot or on a mat for an extended period of time.

1. Children shall be allowed to participate in a quiet activity if not asleep within a reasonable time or if they wake up prior to the end of the rest period.

(f) Nap Room Environment.

1. Areas where a child sleeps shall have adequate lighting which allows the educator to see each child with a quick glance and respond appropriately to each child’s physical and emotional needs.

2. If music is played in areas where children sleep, the music shall be soothing and soft enough so children can be heard.

(5) Behavior Management and Guidance.

(a) Behavioral interventions shall be developmentally appropriate, with consideration given to the attention spans and skills of individual children.

(b) Discipline shall be reasonable, appropriate, and in terms the child can understand.

(c) Potentially shaming, humiliating, frightening, verbally abusive, injurious discipline methods, and/or techniques that isolate the child are prohibited.

(d) Discipline shall not be related to food, rest, or toileting. Food shall not be used or withheld as a form of discipline. Active play opportunities shall not be withheld from children who have misbehaved.

(e) Spanking and all types of corporal punishment are prohibited.

(f) Mechanical and chemical restraints are prohibited.

(g) Educators shall focus upon positive behavior and on the individual child’s strengths.

(h) The educator shall address each incident of unacceptable behavior by using methods of positive guidance and discipline to help the child manage his/her behavior.

(i) Each time a child is engaging in unacceptable behavior the educator shall first redirect the child’s attention and substitute a desirable activity prior to disciplining the child.

(j) Less restrictive, positive behavior management techniques shall be employed before using time-out.

(k) Time-out may be used to intervene with a child whose behavior is disruptive to the group or hurtful to other children and who does not respond to educator redirection or guidance.

1. Time-out shall be reasonable and developmentally appropriate and shall not include restraint or seclusion.

2. The length of each time-out session shall be based on the age of the child and shall not exceed one (1) minute per each year of age of the child; provided, however, that no child under thirty-six (36) months shall be placed in time out.

3. Time-out shall take place in an appropriate location within sight of the educator.

4. Restraining devices such as high chairs, cribs, or car seats shall not be used for time-out.

5. Redirection or a similar approach shall be used for children younger than thirtysix (36) months of age.

(l) Physical Restraint and Seclusion. The following is not considered physical restraint and is considered acceptable:

1. Physical touch associated with prompting, comforting, or assisting that does not prevent the service recipient’s freedom of movement or normal access to his or her body.

2. Physical restraint and seclusion are emergency safety interventions, not therapeutic techniques, and are implemented in a manner designed to protect the child/youth’s safety, dignity, and emotional well-being.

3. The use of physical restraint is allowed only in the case of an emergency when the child/youth is at imminent danger of self-harm or of harming others and no other option exists to protect the safety of the child/youth and staff members.

4. Clothing may not be removed from a child/youth in conjunction with the use of physical restraint or seclusion, other than that which has been determined to place the child/youth or others at risk.

(6) Physical Care - Toileting.

(a) Toilet learning shall be done in cooperation with the parents, and communication with parents shall be maintained throughout the process.

(b) Toilet learning shall not be started until a child is able to understand, to demonstrate some degree of bodily control, to do what is asked of them, and to communicate their need to use the bathroom.

(c) Children shall not be made to sit on the potty or toilet for more than five (5) minutes at a time.

(d) Children who are toilet learning shall be cleaned and assisted as needed in a safe, sanitary manner.

(7) Educational Activities.

(a) Activities shall be intentionally planned based upon the developmental age of the child.

(b) A daily program shall provide developmentally appropriate opportunities for learning math, literature, science, and health, as well as opportunities for self-expression through a variety of creative and multi-cultural activities such as art, music, movement, and dramatic play.

(c) Indoor physical activities, requiring children to use both large and small muscles, shall be provided for children of each age group.

(d) For infants and toddlers, a portion of the day shall include floor time to optimize adultinfant interactions, including direct supervised tummy time for infants less than six (6) months of age, for activities that develop physical, social, language and cognitive skills.

The floor shall be clean and safe. Infants should be placed on a firm, safe surface such as a non-plush carpet, mat, or rug for tummy time, with no soft materials placed under or around the infant during tummy time. If the infant falls asleep during tummy time, educators shall immediately place the infant in a crib on their back and follow all safe sleep procedures.

(e) Educators shall listen to and respond verbally to infants and toddlers throughout the day.

(f) The director or primary educator shall observe and document the use of the applicable developmental learning standards.

(8) Personal Safety Curriculum Components and Guidelines.

(a) For ages three (3) years through school age, a personal safety curriculum shall be provided at least once a year.

(b) The personal safety curriculum shall include a Department-recognized component for the prevention of child abuse.

(c) For children four (4) years of age and older, a child sexual abuse prevention component shall be included.

(d) The child care agency may choose terminology and instructional methods for this curriculum that provides clear, effective and appropriate instruction to the children in personal safety, including the prevention of all forms of child abuse.

(e) Personal Safety Instruction Requirements for School-Age Children.

1. For school-age children, the curriculum shall include instruction for reporting physical, sexual or verbal abuse.

2. School-age children shall not be required to receive personal safety instruction from the child care agency if they annually receive the personal safety instruction required under this paragraph (8) from their school or other educational setting, as approved by the Department.

3. Documentation of Personal Safety Instruction in Educational Settings.

(i) Written documentation that annual personal safety instruction as required by this paragraph (8) is being provided in a public educational setting to each child enrolled in the child care agency shall be maintained on file with the Department.

(ii) For children who do not attend public schools, the child care agency shall maintain documentation that each school-age child enrolled in the child care agency is receiving annual personal safety instruction as required by this subparagraph (e).

(f) The personal safety curriculum used shall be made available to parents/guardians for review. The child care agency shall use a notification form developed by the Department to document that the parents/guardians have been notified of the curriculum and of their opportunity to review.

(g) The record of each enrolled child shall include a copy of the signed notification form.

(h) If requested, child care agency staff shall meet with the parents/guardians to discuss the curriculum.

(i) Specific requirements for drop-in centers are described in 1240-04-01-.23.

(9) Care during non-traditional hours. Child care agencies providing nighttime care shall meet the following additional requirements:

(a) Quiet, calming activities shall be provided preceding bedtime, such as reading or listening to a story or soft music. In addition, children shall receive individual attention from educators as needed.

(b) Routine personal hygiene shall be encouraged and supervised. A plan shall be made with parents/guardians for maintaining children’s routines such as tooth brushing, bath time, and bedtime rituals.

(10) The parents/guardians shall be consulted in developing a plan to meet the individual needs of a child with special needs.

History

• Authority: T.C.A. §§ 71-1-105(a)(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rules filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.16 PHYSICAL FACILITIES

(1) A license shall not be issued unless all of the following requirements are met:

(a) An annual inspection verifying compliance with all applicable state and local fire and environmental requirements which includes:

1. Inspection by the State Fire Marshal’s Division of the Tennessee Department of Commerce and Insurance or their designee; and 2. The General Environmental Division of the Tennessee Department of Health.

Exception: For before or after school programs operated in a school building, the fire inspection that shows compliance of the premises for purposes of school operations shall satisfy the inspection requirement for licensing of the before or after school child care program delivered on school premises.

(b) The physical facilities (indoor and outdoor) present no apparent hazards; and (c) The physical facilities are otherwise deemed appropriate by the Department for the safe care of children.

(2) Additional approvals are required:

(a) Prior to relocation; and (b) Prior to occupying newly renovated space, newly constructed space, new building additions, or previously unlicensed space.

(3) The child care agency shall maintain documentation of required inspections and the approvals.

(4) Continuing Compliance.

(a) The child care agency shall maintain compliance with all applicable codes.

(b) The child care agency shall additionally comply with any updated standards issued by the Department of Health and the State Fire Marshal.

(5) The child care agency shall not be located in a building used for purposes which would be hazardous to the children.

(6) The child care agency shall not be located in a building that would prohibit outdoor play unless the Department grants an exception to the agency.

(7) The child care agency shall ensure that the physical facilities are:

(a) Safe;

(b) Clean;

(c) In good repair; and (d) Free from hazards and clutter.

(8) Telephones and Other Communication Devices.

(a) At least one (1) working telephone shall be available at the child care agency.

(b) The telephone number shall be made available to parents.

(9) Outdoor Play/Care Area.

(a) Outdoor play areas shall contain a minimum of fifty (50) square feet of usable play space for each child using the area at any one time.

(b) The outdoor play area shall be enclosed by a fence or barrier at least four (4) feet in height and shall not be accessible to the public while children are in care.

Exception: A child care agency may request that the Department, in its discretion, waive such requirement upon a clear showing that the lack of such fence or barrier poses no apparent or potential risk to children.

(c) The areas where children play or are cared for shall be properly maintained:

1. A pre-play/care inspection of the outdoor play area shall be completed by the child care agency prior to each use by children.

2. The play/care areas shall be free of hazardous conditions, items, or materials.

Exception: Potentially hazardous items/materials shall be kept inaccessible to children, except when utilized in an intentional manner as part of a planned, supervised activity.

3. All such play/care areas shall be free of all animal wastes.

4. Sandboxes must be covered when not in use.

(10) General Sanitation and Safety of Building and Grounds.

(a) Children shall not be present if an adequate water supply is not available for handwashing and plumbing is not operating properly.

(b) Water Supply.

1. The drinking water supply shall be from a source approved by the health

authority having jurisdiction.

2. Drinking water shall be available to all children upon request throughout the day.

(c) Sewage and Waste Disposal.

1. Children shall not be present if the sewage is not operating.

2. Connection to a public sewage disposal system shall be made where possible.

3. The use of a private sewage disposal system shall have the approval of the local Department of Environment and Conservation Division of Ground Water Protection and it shall be operating satisfactorily at all times.

4. All garbage shall be removed from the building daily.

5. All outdoor garbage storage receptacles shall be outside and kept closed.

6. The area surrounding outdoor garbage receptacles shall be kept clean.

(d) Building, Grounds and Pools.

1. The building shall be kept clean and maintained in good repair, without unsafe cracks, leaks, or plumbing that is in disrepair.

2. All outside doors and windows of the licensed space shall be in good repair.

3. Adequate natural and/or artificial lighting shall be provided throughout the facility.

4. All rooms used by children shall be maintained at a temperature of between sixty-eight degrees to seventy-eight degrees Fahrenheit (68°F to 78°F) by means of heating, cooling or ventilation sources approved for use.

5. Children shall not be present if the indoor temperature cannot be maintained between sixty-eight degrees to seventy-eight degrees Fahrenheit (68°F to 78°F).

6. Stoves, hot radiators, steam and hot water pipes, fans, or other potentially hazardous items shall be inaccessible to children.

7. The use of unvented fuel burning heaters is prohibited.

8. The use of portable heaters is prohibited.

9. The building and grounds shall be kept free of broken glass, trash and debris.

10. Building and grounds shall be kept free of unprotected ponds, wells, cisterns, unused refrigerators and similar hazards.

11. Swimming pools shall be made inaccessible to children through the use of fences and locked gates. Swimming is prohibited in Drop-In Care.

12. Swimming pools and/or wading pools shall not be used without prior approval by the local health department.

13. Grounds, tire swings and containers shall have adequate drainage to prevent standing water that can breed mosquitoes and other insects.

14. Animals shall be:

(i) In good health and immunized in accordance with local health authority;

(ii) Free of fleas, ticks and other parasites;

(iii) Contained in a way that does not allow unsupervised access; and (iv) Kept away from all food storage and preparation or service areas.

(v) Cages, fish tanks or other containment devices shall be cleaned regularly.

15. Reptiles and amphibians shall not be kept as pets due to the risk of Salmonella.

History

• Authority: T.C.A. §§ 71-1-105(a)(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rules filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.17 TRANSPORTATION

(1) Transportation shall comply with all state laws and these rules.

(2) Child care agencies shall not transport children without prior written approval by the Department.

(3) Prior to providing child care transportation services of any type, directly or by contract, all new and existing child care agencies shall provide a written statement to the Department that includes:

(a) Scope of transportation that will be offered;

(b) A list and description of the vehicles that will be used, including color, make, and model of vehicle, the license plate number, and provisions for how the child care agency will address emergency situations if the temporary use of alternate vehicles is necessary;

(c) Copies of any contracts, agreements or arrangements with any third parties for transportation; and (d) Policies, procedures, and staff training plans to ensure that all transportation staff properly performs all duties related to the following requirements:

1. Child care agencies shall adhere to child-safety restraint requirements set forth in state law;

2. Child care agencies shall account for each child when loading or unloading to ensure that no child is left on a vehicle unattended;

3. Child care agencies shall conduct vehicle emergency evacuation drills quarterly;

4. Use of cell phones and texting devices is prohibited while en route;

Exception: Limited use of cell phones and texting devices by vehicle monitors, who are not driving, to communicate with the child care agency or parents, is allowable, but personal calls are prohibited.

5. Child care agencies shall institute plans for emergency communication during transportation;

6. Carrying, possessing, or storing firearms or other weapons in vehicles is prohibited;

7. Routine transportation shall be limited to forty-five (45) minutes each way;

(i) An individualized plan may be approved by the Department allowing the child care agency to exceed this time frame if signed by the parent/guardian and the child care agency.

(ii) Field trip travel time is not limited for school-agers.

8. Child care agencies shall have current documentation of medical and liability insurance as required by law;

9. Child care agencies shall use Department-approved vehicle monitoring devices for all vehicles designed to transport six (6) passengers or more;

(i) Exceptions:

(I) Vehicles in which all the children being transported are five (5) years of age and in kindergarten, or older, unless any of the children are developmentally or physically disabled or non-ambulatory;

(II) Vehicles used exclusively for field trips; or (III) Vehicles used by family or group child care homes.

10. Child care agencies shall maintain documentation of daily inspections and necessary repairs or other appropriate action taken before transporting children that includes:

(i) A visual inspection of the vehicle’s tires for wear and adequate pressure;

(ii) A visual inspection for working headlights and tail lights, signals, mirrors, wiper blades and dash gauges;

(iii) An inspection for properly functioning child and driver safety restraints;

(iv) An inspection for properly functioning doors and windows;

(v) An inspection for the presence of safety equipment required by these rules or any other provisions of law or regulations, and repair or replacement as necessary based upon visual evidence of the need to do so;

(vi) A determination that the vehicle has adequate fuel; and (vii) An inspection for, and cleaning of, debris from the vehicle’s interior.

11. Hazardous Temperatures and Extreme Weather;

(i) Staff shall consider the special needs of individual children when determining if children can be transported safely during extreme temperatures;

(ii) Child care agency staff shall monitor the interior temperature of a vehicle when transporting children during extreme weather conditions to ensure child safety.

12. Emergency Transportation;

(i) The child care agency shall notify the Department immediately or no later than one business day following emergency transportation that requires the use of alternate vehicles.

(4) The child care agency is fully responsible for compliance with all transportation rules, regardless of whether the agency provides transportation directly, through a third party by contract, or otherwise.

(5) The child care agency shall be fully responsible for the children during transportation on any vehicle which it operates, for which it contracts, or which is otherwise under its direction or control.

(6) The child care agency shall maintain responsibility for all children until the children are signed off the vehicle by the parent/guardian or authorized individual.

(7) Exceptions for Field Trips.

(a) Child care agencies that are not licensed to transport on a regular basis may provide transportation for up to four (4) field trips per calendar year.

(b) Drivers for these four (4) field trips shall comply with driving regulations that apply to all drivers in Tennessee:

1. Proof of at least a valid Class D driver license;

2. Proof of adequate insurance required by Tennessee law; and 3. Vehicles shall have and use age-appropriate restraints for all adults and children being transported.

(c) All rules regarding monitoring of children apply, except for the requirement of the vehicle to have a monitoring device.

(d) Vehicle capacity and cargo rules shall be followed during these four (4) field trips.

(e) Vehicles utilized for these four (4) field trips, which are designed to carry ten (10) or more passengers but which do not conform to all Federal Motor Vehicle Safety Standards (FMVSS) governing either “large” school buses or “small” school buses are prohibited.

(f) Vehicles utilized for these four (4) field trips are not required to have signage required by 1240-04-01-.17(13).

(8) Supervision of Children during Transportation.

(a) An adult shall be in the vehicle whenever a child is in the vehicle.

(b) An adult shall be seated behind the steering wheel if the motor is running and children are being loaded and/or are on board.

(c) Adult Monitor Requirements.

1. An adult monitor, in addition to the driver, is required to be in the vehicle for transportation of four (4) or more children ages six (6) weeks through five (5) years of age, who are not in kindergarten.

2. An adult monitor, in addition to the driver, is required to be in the vehicle on all routes exceeding thirty (30) minutes for children ages six (6) weeks through five (5) years of age who are not in kindergarten, regardless of the total number being transported.

3. An adult monitor, in addition to the driver, is required to be in the vehicle for transportation of twenty (20) or more children ages five (5) years of age and older.

4. An adult monitor, in addition to the driver, is required to be in the vehicle for transportation of four (4) or more non-ambulatory children (permanent or temporary) of any age.

5. An adult monitor shall not be seated in the front passenger seat, but shall be seated in the vehicle in a position that allows each child’s activities to be observed and that allows the monitor to respond immediately should there be an emergency.

(9) Responsibility for Loading, Unloading and Accounting for Each Child.

(a) Passenger Log:

1. A passenger log provided by, or in a format approved by, the Department shall be used to account for each child during transportation.

2. The first and last name of each child received for transport shall be recorded on the passenger log.

3. Either the driver of the vehicle or the monitor shall be designated by the child care agency as the person responsible for completing the log.

4. Passenger logs shall be maintained for one (1) year.

(b) Loading Procedures:

1. As each child is loaded onto the vehicle the time shall be recorded onto the passenger log.

2. If the child was loaded from home, the parent/guardian or other authorized person will also sign the log indicating that the child was placed on the vehicle.

(c) Unloading Procedures:

1. The individual designated by the child care agency as responsible for the log shall update it immediately upon the child being released from the vehicle. The log shall be updated by the designated staff member by:

(i) Recording the time the child was released; and (ii) Initialing next to the time of release.

2. The parent/guardian or other authorized person shall sign the log indicating that the child was released to them.

(d) Confirming That Every Child Is Off of the Vehicle After Each Trip Destination 1. Immediately upon unloading the last child the driver shall:

(i) Physically walk through the vehicle;

(ii) Inspect all seat surfaces, under all seats and in all compartments or recesses in the vehicle’s interior;

(iii) Sign the passenger log, with the driver’s full name; and (iv) Give the passenger log to the reviewer.

2. Reviewer responsibilities:

(i) The child care agency shall designate a staff person as a reviewer to conduct an additional inspection once the vehicle has been unloaded.

(ii) The reviewer shall:

(I) Have no other responsibilities at the time of the vehicle inspection;

(II) Physically walk through the vehicle;

(III) Inspect all seat surfaces, under all seats and in all compartments or recesses in the vehicle’s interior;

(IV) Reconcile the passenger log with the child care agency’s master sign-in and out sheet to verify that each child is off the vehicle and accounted for in the child care agency;

(V) Sign the passenger log with the reviewer’s full name; and (VI) Immediately notify the director or other individual designated in charge of any discrepancies between the passenger log and the master sign-in and out sheet.

3. Additional responsibilities for a family or group home with a single educator:

(i) In circumstances when an additional adult is not available the primary educator shall develop a Department-approved alternative system for ensuring that all children are off the vehicle.

(e) Loading/Unloading Children at School.

1. When children are transported to school, they shall be released in accordance with the following procedures:

(i) Children shall be unloaded only at the location designated by the school;

(ii) Children shall be unloaded from the child care agency’s vehicle only at the time the school is officially open with staff present to receive them;

(iii) When possible, the driver/monitor shall watch the children who are unloaded from the vehicle walk through the entrance door designated by the school for the children;

(iv) Any additional procedures established by the school shall be followed;

(v) Passenger logs shall be completed in accordance with this Rule 1240-04- 01-.17.

2. After all the children have been unloaded at school, the vehicle shall return to the child care agency for the vehicle inspection procedures outlined above.

3. When children are picked up from school they shall be loaded on the vehicle at the location designated by the school. Passenger logs shall be completed in accordance with this Rule 1240-04-01-.17.

4. The child care agency shall develop a written policy approved by the Department that contains procedures for the driver to follow in the event that a child scheduled to be picked up does not report to the vehicle.

(f) Unloading Children at the End of the Day. If a vehicle does not return to the child care agency for the final inspection, the child care agency shall develop procedures approved by the Department, to:

1. Verify that all children are off the vehicle; and 2. Verify that each child was released to the parent/guardian or authorized individual.

(10) Transportation Staff Qualifications.

(a) Driver Qualification. Except as provided in part 2., all drivers and monitors employed by the child care agency or provided through contract or otherwise, shall comply with all applicable transportation staff qualifications set forth in this chapter.

Exception: Drivers providing transportation for up to four (4) off-site trips per year are only subject to the qualifications in 1240-04-01-.17(3)(h)2.

(b) Documentation of all transportation staff qualifications, including a clearance letter from the Department that specifically states that the individual is clear to drive, shall be kept on file at the child care agency and be available to the Department upon request.

(c) Driver License. At a minimum, the driver shall possess a current, valid Tennessee driver license with an “F” (“For Hire”) endorsement or a valid driver license from the state of residence and recognized by the Department of Safety as meeting the minimum qualifications for transportation of children enrolled in the child care agency in the applicable type of vehicle in which the children are being transported.

(d) Health Examinations for Drivers.

1. The child care agency or the contractor shall maintain documentation, updated annually and signed by the examining licensed medical professional, verifying that the driver is physically, mentally and emotionally capable of safely and appropriately providing transportation for children.

(e) Drug Screenings for Drivers.

1. Individuals, including contractors, shall pass a drug screening test no later than ten (10) days prior to assuming driving duties.

2. At a minimum, the drug screening shall utilize a five (5) panel test as defined by this chapter.

3. The child care child care agency shall immediately review the results.

4. In the event of a positive drug screen result, the child care agency shall immediately:

(i) Notify the Department and prohibit the individual from any duties involving any children; and (ii) Comply with a safety plan that excludes the individual from driving until the individual passes a drug screen test and is otherwise approved, in writing, by the Department, to provide driving duties.

5. The child care agency shall be responsible for verifying that a contractor, or other person or entity providing transportation for compensation to the child care agency, has not employed or assigned any driving duties to any individual who fails to pass a drug screen as required by this subparagraph.

6. Based upon reasonable suspicion, the Department may require that a driver to have a drug screening test.

(i) If the results are positive for illegal drug use, such person shall be subject to a safety plan that excludes the individual from driving duties until the individual passes a drug screen test and is otherwise approved, in writing, by the Department, to provide driving duties.

(f) Required Transportation Training.

1. Prior to assuming their duties, and no less often than every six (6) months thereafter, all drivers, monitors and reviewers and persons who may become responsible at any time for transportation shall complete and have documented Department-recognized training in:

(i) All Department transportation rules;

(ii) The proper daily safety inspection of the vehicle as required by these rules;

(iii) The proper use of child safety restraints required by these rules;

(iv) The proper loading, unloading, and tracking of children as required by these rules;

(v) The proper use of a bloodborne pathogen kit, first aid kit, and other required vehicle emergency equipment as required by these rules;

(vi) The proper verification procedures for the evacuation of the vehicle based upon the type of vehicle and the ages of the children served; and (vii) The developmentally appropriate practices applicable to the behavior management and supervision of children during transportation.

2. Driver/Monitor Training Requirements.

(i) The child care agency shall maintain documentation of completion of any training and testing required, provided, or otherwise approved by the Department.

(ii) All drivers and monitors shall obtain Department-approved annual training.

(g) Emergency Aid Training. All drivers and monitors, or staff who may become responsible at any time for transportation, shall hold current certification in:

1. Infant/Child Cardiopulmonary Resuscitation (CPR) or equivalent from the American Red Cross, the American Heart Association, or other certifying organization as recognized by the Department; and (i) The certification shall be applicable to the ages present on the vehicle:

(I) Infant/Child CPR; and/or (II) Adult CPR if children over age twelve (12) are present.

2. A first aid course from a certifying organization recognized by the Department.

(i) The certification shall be applicable to the ages present on the vehicle:

(I) Infant/Child first aid; and/or (II) Adult first aid if children over age twelve (12) are present.

(h) The child care agency shall ensure that volunteers meet the requirements described in 1240-04-01-.17(3)(h)2., and that any individuals who do not appear to be capable of driving for any reason, including, but not limited to, the use of alcohol or drugs, are not permitted to provide transportation for off-site trips.

(11) Vehicle Requirements and Inspections.

(a) The requirements of this paragraph do not apply to vehicles used exclusively for the provision of the allowed four (4) field trips as defined in 1240-04-01-.17(3)(h)1.

(b) The following equipment shall be maintained in the vehicle and stored in a manner which is not readily accessible to children:

1. Fire extinguisher – a pressurized UL approved dry chemical extinguisher with a minimum rating of 2A:10BC, equipped with a pressure gauge which indicates that the extinguisher is sufficiently charged;

2. Emergency reflective triangles;

3. First aid kit;

4. Seat-belt cutter or similar device manufactured and designed to immediately release the vehicle’s child restraint system(s) in an emergency;

5. Bloodborne pathogenic clean-up kit; and 6. Working flashlight.

(c) The driver or monitor assigned to the vehicle shall be familiar with the location and use of all equipment required under subparagraph (b) above.

(d) The child care agency shall maintain documentation that:

1. Maintenance of the vehicle used for the transportation of children has been performed by a certified mechanic in accordance with the maintenance schedule recommended by the vehicle manufacturer; and 2. The vehicle has received regular inspections.

(e) Vehicle Safety Standards.

1. All vehicles utilized by a child care agency which are designed to carry ten (10) or more passengers shall conform to all Federal Motor Vehicle Safety Standards (FMVSS) governing either “large” school buses or “small” school buses.

(f) Vehicle Inspections.

1. All child care vehicles that are designed by the vehicle manufacturer to carry ten (10) or more passengers shall be inspected as required by the Department.

2. With prior approval by the Department, a qualifying replacement vehicle may be used for up to fourteen (14) business days without inspection.

(g) Vehicles that do not pass the inspections required shall not be used until necessary repairs have been made and approved in writing by the Department.

(h) Capacity Limitations and Cargo Requirements.

1. The total number of adults and children in vehicles used for the transportation of children enrolled in the child care agency shall never exceed the manufacturer’s rated passenger capacity.

2. All cargo, luggage or equipment of any type shall be adequately secured at all times in such manner as to protect the passengers in case of accident or emergency maneuvers.

(12) Passenger Safety Restraints.

(a) The provisions of this paragraph apply to all transportation, including transportation used for field trips.

(b) All vehicles shall have a rear seat that has been factory-installed or professionallyretrofitted.

1. The rear seat shall have factory-installed or professionally-retrofitted passenger restraint anchorages and passenger restraints as required by the provisions of this paragraph for the age and size of the passengers being transported and the type of vehicle being used.

2. Passenger restraint devices which are designed by the manufacturer to be attached to the seat by the end-user, e.g., add-on restraint systems such as infant carriers and harness systems, are not required to be factory-installed.

(c) All restraints shall be used in accordance with the restraint manufacturer’s instructions and shall be secured to the vehicle in accordance with the vehicle manufacturer’s and the restraint manufacturer’s instructions.

(d) Passenger air bags shall remain turned off unless an adult or a child fifteen (15) years of age or older is riding in the front passenger seat of the vehicle.

(e) No child or adult shall ride on the floor of a vehicle.

(f) No child shall be placed with another child in the same restraint device.

(g) Children under four (4) years of age shall always be placed in a rear seat of the vehicle. For the purposes of this paragraph, a “rear seat” in any vehicle which is categorized as a “school bus” shall mean any passenger seat that has been factoryinstalled or professionally-retrofitted and that is located behind the bus driver or behind the bus entrance which is directly to the right of the bus driver.

(h) All vehicles shall have qualifying restraints based upon the class of the vehicle in accordance with state and federal law.

(i) Child Restraint Requirements under Applicable State or Federal Law. In addition to the requirements set forth in subparagraphs (a) through (h) above, all children shall be restrained in accordance with the requirements for child passenger restraint systems set forth in T.C.A. §§ 55-9-601-55-9-603 and any applicable federal law or regulation.

(j) Adult Restraint Requirements. Adults shall be restrained in accordance with applicable state or federal law or regulation.

(13) Vehicle Signage Requirements.

(a) On each side of the vehicle the following information shall be displayed in a block font that is not less than one and one-half inches (1 1/2”) in height:

1. The name of the child care agency and emergency contact phone number for the child care agency; and 2. The words “Child Care Transportation Complaints” followed by the Department’s toll-free Child Care Complaint Hotline phone number.

(b) On the rear of the vehicle the following information shall be displayed:

1. The name of the child care agency and the words “Child Care Transportation Complaints” followed by the Department’s toll-free Child Care Complaint Hotline phone number in black letters in a block font not less than one inch (1”) in height.

Exception: Display of the Complaint number is not required on passenger automobiles used for transportation by the child care agency with a manufacturer’s rated seating capacity of six (6) or fewer passengers.

(c) Special Requirements for Centralized Transportation. Central transportation operations or any other entity that may own or operate more than one (1) child care agency and which may provide centralized transportation services for its child care agencies, and contractors, or other transportation service providers under the direction or control of the child care agency that may provide centralized transportation services to more than one child care agency, may substitute for the name and phone number of the child care agency the full name and emergency contact number of the central operator, contractor or other transportation service providers under the direction or control of the child care agency. If the name on the vehicle does not clearly designate the child care agency or entity as one providing child care transportation, language such as “Child Care Transportation Vehicle” or “Child Care Transportation Services”, or similar language approved by the Department, shall be displayed on the vehicle in a manner that demonstrates, as determined by the Department, that the vehicle is providing child care transportation.

(d) Exceptions to Vehicle Identification Requirements:

1. Vehicles used exclusively for the provision of the allowed four (4) field trips as defined in 1240-04-01-.17(3)(h)1.

2. Vehicles used exclusively for the limited provision of emergency transportation, e.g., as a result of the mechanical breakdown of the regular child care vehicle.

3. The Department may, in its discretion, waive the requirements of this paragraph (9) if circumstances clearly warrant such an exemption.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 55-9-601 through 55-9-603; 71-1-105(a)(5); 71-3-501, et seq.; 71- 3-502(a)(2); and 71-3-502(d)(7)(C)(iii); 49 C.F.R. §§ 571, et seq.; and 49 C.F.R. § 571.208.
• Administrative History: Original rules filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022.

Tenn. Comp. R. & Regs. 1240-04-01-.18 EMERGENCY PREPAREDNESS

(1) All persons or entities operating a child care agency as defined in this chapter, excluding drop-in child care centers and those programs and facilities exempt from licensing as provided in T.C.A. § 71-3-503, shall, in consultation with appropriate local authorities and local emergency management, develop a written multi-hazard plan to protect children in the event of emergencies, including, but not limited to, fires, tornados, earthquakes, chemical spills, and floods. Such plans must address the following components: evacuation, relocation, shelter-in-place and lock down, staff and volunteer emergency preparedness training and practice drills, communication and reunification with families, continuity of operations, and accommodation of infants and toddlers, children with disabilities, and children with chronic medical conditions.

(2) All child care agencies shall also inform parents and guardians of children attending the child care agency of the plan. The child care agency shall comply with all other requirements related to emergency preparedness provided under T.C.A. § 71-3-517.

(3) The Department may temporarily waive certain provisions of child care licensing and Quality Rating Improvement System rules when a state of emergency is declared by the Governor or the Governor’s designee, or by activation of the Tennessee Emergency Management Plan (“TEMP”) pursuant to T.C.A. § 71-3-517.

(4) The Department may also waive, on a temporary basis, certain provisions of the child care licensing and Quality Rating Improvement System rules as they pertain to a particular child care agency as needed on an individual basis in case of a single incident such as a fire or other type of disaster.

(5) All child care agency staff persons shall be trained on the plan annually.

History

• Authority: T.C.A. §§ 71-1-105(a)(5) and 71-3-517.
• Administrative History: Original rules filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.19 TENNESSEE PROFESSIONAL ARCHIVE OF LEARNING

(1) The Tennessee Professional Archive of Learning (TNPAL): The system of record for all training and professional development as of the effective date of these rules.

(2) All agency staff subject to pre-service and/or ongoing training/professional development requirements shall:

(a) Create a user profile for TNPAL, and (b) Utilize TNPAL as the system of record for meeting all related training/professional development requirements.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(a)(5); and 71-3-501, et seq.
• Administrative History: New rule filed March 31, 2022; effective June 29, 2022.

Tenn. Comp. R. & Regs. 1240-04-01-.20 SPECIFIC REQUIREMENTS FOR FAMILY CHILD CARE HOMES

(1) Required Adult:Child Ratios.

(a) Adult:Child ratios shall be maintained by the child care agency while the children are on the premises of the child care agency, including outdoors or on the playground.

(b) A child care family home shall not exceed licensed capacity.

(c) Adult:Child Ratio Requirements for Family Child Care Homes.

1. No more than seven (7) children may be present at any one time; except up to twelve (12) children may be present if any number above seven (7) are related to the primary educator.

2. If the family child care home is the occupied residence of the primary educator, children related to the primary educator nine (9) years of age or older will not be counted in determining the maximum number of children permitted if those children are provided a separate space from that occupied by the family child care home.

3. Children related to the primary educator nine (9) years of age or older may interact with children in the licensed family child care home provided that the required level of care and supervision is not compromised.

4. The number of educators in a family child care home required to supervise children enrolled in the home shall comply with one of the options listed on the chart below.

Maximum Number of Children and Ages (including children related to the primary educator under nine (9) years of age)

Educators Required Seven (7) or fewer children; and no more than four (4) under two (2) years Seven (7) or fewer children; and five (5) or more under two (2) years More than seven (7) children; and no more than four (4) under two (2) years More than seven (7) children; and five (5) or more under two (2) years (d) A qualified educator shall be on-site any time that the primary educator is not on-site during child care operating hours.

(e) All staff responsible for food service, preparation, or supervision shall be trained on the mealtime supervision.

(2) Licensed Capacity of Physical Space.

(a) The maximum number of children who may be present inside a physical space shall be determined in accordance with the minimum square footage requirements.

(b) The Department may, in its discretion, restrict the child care agency’s licensed capacity below the maximum set forth in these rules.

(c) If the number of children exceeds seven (7) at one time or the care is provided in one room of the home, the area shall provide thirty (30) square feet per child of usable play space.

(d) For the purposes of calculating square footage requirements, the following space or area will not be counted:

1. Restrooms;

2. Hallways;

3. Kitchen;

4. Office space; and 5. Space used by cribs or large pieces of furniture.

(e) Adequate Plumbing Facilities. The child care agency shall have the minimum number of functional toilets and hand-washing stations in accordance with the:

1. Requirements of any applicable local ordinances and regulations;

2. Proximity of the plumbing to the classroom(s); and 3. Ages of the children served.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(a)(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rules filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022.

Tenn. Comp. R. & Regs. 1240-04-01-.21 SPECIFIC REQUIREMENTS FOR GROUP CHILD CARE HOMES

(1) Required Adult:Child Ratios.

(a) Adult:child ratios shall be maintained at all times while the children are on the premises, including outdoors or on the playground.

1. All children, including related children younger than age nine (9), shall be counted in the ratio and group size and shall have required records on file before care is provided.

2. The maximum number of children present in a group child care home shall not exceed twelve (12).

(i) Exception:

(I) If the group child care home is in the occupied residence of the primary educator, children nine (9) years of age or older and related to the primary educator are not counted if those children are provided a separate space from that occupied by the group child care home; and (II) Up to three (3) additional school-age children, related or unrelated to the primary educator, may be in care before and after school, on school holidays, on school snow days and during summer vacation.

3. Children related to the primary educator who are nine (9) years of age or older may interact with the children in the licensed group child care home provided that the required level of care and supervision is not compromised.

4. Adult:child ratios and group sizes in group child care homes may exceed requirements by up to ten percent (10%), rounded to the nearest whole number, no more frequently than three (3) days per week.

(i) At no time shall the licensed capacity be exceeded.

(ii) Infant and toddler groups may never exceed the required ratios and group sizes.

(iii) The Department may terminate this variance in individual cases under provisions for issuance of a restricted license pursuant to T.C.A. § 71-3- 502.

(iv) Group Child Care Home child care agencies who use the variance may, at the Department’s discretion, be required to obtain fire approval prior to enrolling additional children.

(b) The number of educators required shall comply with one of the options listed on the Chart below.

Group Home Ratio and Group Size Chart:

Number of Children Ages of Children Educators Required Twelve (12) – Fifteen (15)

(any number over twelve (12) must be school-age)

No more than twelve (12) children three (3) years of age or older Twelve (12) – Fifteen (15)

(any number over twelve (12) must be school-age)

Up to nine (9) children under three (3) years of age; and No more than four (4) present under two (2) years of age Twelve (12) – Fifteen (15)

(any number over twelve (12) must be school-age)

Ten (10) or more under three (3) years of age (c) If school-age children are enrolled, a school-age program shall be provided.

(d) If four (4) or more infants/toddlers attend a group child care home, they shall have a separate and distinct space and their own educator.

1. The space shall provide thirty (30) square feet per child.

2. Barriers shall be sufficient to provide separation without isolating children.

(e) If attendance drops to seven (7) or fewer children, family child care home ratios apply.

(f) Naptime Supervision and Requirements for Naptime and Nighttime Care.

1. If there is a sleeping or resting child, there shall be at least one (1) adult educator awake and supervising the child.

(i) The educator shall be able to hear the child at all times, shall be able to see the child with a quick glance, and shall be able to physically respond immediately.

(ii) Helper devices such as mirrors, electronic sound monitors, etc. may be used as appropriate to meet these requirements.

2. Adult:child ratios shall be maintained.

(2) Primary Educator Qualifications for Group Child Care Homes.

(a) Owners who are employed elsewhere shall ensure that a primary educator is always on-site.

(b) The primary educator shall not be employed at any other job during the hours of operation unless the Department has approved the primary educator’s employment in an official capacity in a program sponsored or recognized by the Department.

(c) An educator shall be on-site any time that the primary educator is not on-site during child care operating hours.

(3) Educator Qualifications for Group Child Care Homes.

(a) Educators/Assistants sixteen (16) through seventeen (17) years of age may assist a primary educator and be counted in the ratio if the individual is:

1. Never left alone with children; and 2. Always under the direct supervision of a primary educator.

(4) All staff responsible for food service, preparation, or supervision shall be trained on the mealtime supervision plan as described in 1240-04-01-.11(3)(c).

(5) Licensed Capacity of Physical Space.

(a) A minimum of thirty (30) square feet of usable indoor play space shall be provided for each child.

(b) The maximum number of children who may be present inside a physical space shall be determined in accordance with the minimum square footage requirements.

(c) The Department may restrict the child care agency’s licensed capacity below the maximum.

(d) The following shall not be counted toward to the square footage requirements:

1. Restrooms;

2. Hallways;

3. Kitchen;

4. Office space; and 5. Any space used by cribs or large pieces of furniture.

(e) Adequate Plumbing Facilities. The child care agency shall have the minimum number of functional toilets and hand-washing stations in accordance with the:

1. Requirements of any applicable local ordinances and regulations;

2. Proximity of the plumbing to the classroom(s); and 3. Ages of the children served.

History

• Authority: T.C.A. §§ 71-1-105(a)(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rules filed May 1, 2018; effective July 30, 2018. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.22 SPECIFIC REQUIREMENTS FOR CHILD CARE CENTERS

(1) Required Adult:Child Ratios.

(a) Adult:child ratios in this paragraph shall be maintained by the child care agency while the children are on the premises of the child care agency, including outdoors or on the playground.

(b) Adult:Child Ratio Requirements for Child Care Centers.

1. Adult:child ratios and group sizes in child care centers may exceed requirements set by the rule of the Department of Human Services by up to ten percent (10%), rounded to the nearest whole number, no more frequently than three (3) days per week.

(i) At no time shall the licensed capacity be exceeded.

(ii) Infant and toddler groups may never exceed the required ratios and group sizes.

(iii) The Department may terminate this variance in individual cases under provisions for issuance of a restricted license pursuant to T.C.A. § 71-3- 502.

(iv) Child care centers that use the variance may, at the Department’s discretion, be required to obtain fire approval prior to enrolling additional children.

2. When more than twelve (12) children are present on the premises, a second adult shall be physically available on the premises.

(c) Child Care Ratio and Group Size Charts.

1. Chart 1 - Age Grouping.

Age of Children Adult:Child Ratio Maximum Group Size Six (6) weeks – Fifteen (15) months 1:4 8 Twelve (12) – Thirty (30) months 1:6 12 Two (2) years 1:7 14 Three (3) years 1:9 18 Four (4) years 1:13 24 Five (5) years 1:16 24 School-age (currently registered and attending school) 1:20 No Max 2. Chart 2 - Age Grouping.

Age of Children Adult:Child Ratio Maximum Group Size Six (6) weeks – Thirty (30) months 1:5 10 Twelve (12) months – Thirty-Six (36) months 1:6 12 Two (2) – Four (4) years 1:8 16 Two and one-half (2½) – Three (3) years (Thirty (30) – Forty-seven (47) months) 1:9 18 Two (2) – Three (3) years 1:8 16 Two and one-half (2½) – Five (5) years 1:11 20 Two and one-half (2½) – Twelve (12) years 1:11 20 Three (3) – Four (4) years 1:12 24 Three (3) – Five (5) years 1:13 24 Four (4) – Five (5) years 1:16 24 Four (4) – Six (6) years 1:16 24 Five (5) – Twelve (12) years 1:20 No Max Kindergarten through Fifth Grade (ages five (5) – eleven (11) years) 1:20 No Max Sixth Grade through Twelfth Grade (ages eleven (11) – seventeen (17) years) 1:20 No Max 3. Chart 3 - Allowable Combined Grouping and Adult:Child Ratio Chart for first/last hour and one-half (½) of each day only:

Age of Children Adult:Child Ratio Maximum Group Size Two and one-half (2½) – Five (5) years 1:11 20 Three (3) – Twelve (12) years 1:15 20 Four (4) – Twelve (12) years 1:20 20 Thirteen (13) – Seventeen (17) years 1:20 20 (d) Assignment of Children to Groups.

1. Each child shall be on roll in a defined group and assigned to that group with a specific educator(s).

2. Maximum group size requirements, as established in subparagraph (c) above, shall be maintained at all times with the exception of meals served in common dining rooms, napping in common nap rooms, or outdoors on the playground.

3. Infants shall have a separate space and shall never be grouped with children older than thirty (30) months of age.

4. Care during non-traditional hours. Children age thirteen (13) months and older may be grouped together while sleeping in overnight care.

5. Children shall be kept with the same group throughout the day.

6. Children shall not be promoted to a new group until required based upon the age and developmental needs of the child.

7. Groups excluding infants and toddlers may be combined for short periods for a special activity (e.g., special assembly, visiting performers or community helpers, etc.) of no more than sixty (60) minutes duration per day as long as adult:child ratios are met.

8. Pre-school and school-age groups may be combined for up to one and one-half (1½) hours at the beginning of the day and for up to one and one-half (1½) hours at the end of the day as set forth in Adult:Child Ratio Chart 3 in 1240-04-01- .22(1)(c)3.

9. Groups of children may never be mixed as part of the regular routine or operation.

Exception: Pre-school and school-age groups may be mixed based upon emergencies, holidays or low attendance days.

10. Child care agencies shall define grouping for each classroom.

(e) Each group shall have a designated classroom with enough space for the entire group.

(f) Child care centers shall provide written lesson plans for each group of children.

(g) When more than twelve (12) children in first grade and above are present, a separate educator, a separate group, a separate space, and a separate program shall be provided for them.

(2) Licensed Capacity of Physical Space.

(a) The maximum number of children who may be present inside a physical space, i.e., the child care agency’s “licensed capacity”, shall be determined in accordance with the minimum square footages set forth in this subparagraph.

(b) The Department may, in its discretion, and as determined to be reasonably necessary to maintain the health and safety of the children in care, restrict the child care agency’s licensed capacity below the maximum set forth in these rules.

(c) A minimum of thirty (30) square feet of usable indoor play space shall be provided for each child in each classroom.

(d) Each nap room shall contain a minimum of thirty (30) square feet of floor space per child.

(e) Locations providing teen parenting, occupational/career, and technical education classes shall have a separate space for the group, with a minimum of thirty-five (35) square feet of usable play space per child that is apart from the classroom space for students. The designated separate space may be located in the same room and divided by movable barriers less than four (4) feet in height.

(f) The following are not counted toward required square footage:

1. Restrooms;

2. Halls;

3. Kitchen;

4. Office space; or 5. Any space used by cribs or large pieces of furniture.

(g) Rooms with sufficient floor space may be divided by a barrier at least four (4) feet in height for use by more than one (1) group if each area is adequately equipped and arranged and that each group shall have the security of a stable classroom space.

(h) Adequate Plumbing Facilities. The child care agency shall have the minimum number of functional toilets and hand-washing stations in accordance with the:

1. Requirements of any applicable local ordinances and regulations;

2. Proximity of the plumbing to the classroom(s); and 3. Ages of the children served.

(3) Meals and Snacks. Any person responsible for preparing meals or snacks shall not be included in the adult:child ratio while preparing meals/snacks or doing related tasks, such as washing dishes.

(4) Schedules and Routines. In an infant or toddler room with more than one (1) educator, each educator shall be responsible for providing consistent care for specific infants and toddlers.

Consistent care includes, but is not limited to, planning and record keeping for the child, communication, general interaction with and routine care of the child.

(5) Interim Director. Following the issuance of a license, a child care center may operate without an on-site director for a period of no more than sixty (60) days total within the licensing year.

A qualified person, as determined by the Department, shall be in charge in the interim.

History

• Authority: T.C.A. §§ 71-1-105(a)(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rules filed May 1, 2018; effective July 30, 2018. Amendments filed October 5, 2018; effective January 3, 2019. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-01-.23 SPECIFIC REQUIREMENTS FOR DROP-IN CHILD CARE CENTERS

(1) Record Keeping. The following records shall be maintained in an organized manner at the drop-in center and made available to the Department upon request:

(a) A signed statement from the parent/guardian verifying that the child or children are in good health and current with immunizations; and (b) Written consent of the parent/guardian regarding emergency medical care including verification of any food or other allergies from the parent/guardian.

(2) Admission of Children and Communication with Parents.

(a) Before accepting a child for care, the parent/guardian shall provide a statement regarding the estimated amount of time that the parent/guardian anticipates that the child will be in attendance at the drop-in center.

(b) An individual child may not exceed seven (7) hours of care per day or fourteen (14) hours of care per week during regular working hours (Monday - Friday, 6:00 a.m. to 6:00 p.m.).

(c) A drop-in center may provide child care during evenings (after 6:00 p.m.) and weekends (Friday, 6:00 p.m. - Sunday, 10:00 p.m.) so long as the drop-in center provides no more than a total of twenty (20) hours of care per week, exclusive of snow days when the school of the affected child is closed.

(d) The drop-in center shall maintain and make available to the Department attendance records verifying that no child receives care in excess of the maximum allowable hours.

(3) Personal Safety Curriculum.

(a) The child care agency shall familiarize staff with the following required personal safety materials and be prepared to discuss them with parents:

1. “Personal Safety Tips for Children and Their Parents”; and 2. “Personal Safety Curriculum Notification Form for Drop-In Child Care Centers.”

(b) The child care agency shall provide parents of children ages three (3) and over with a copy of the above forms.

(c) The child care agency shall maintain a copy of the Personal Safety Curriculum Notification Form signed by the parent/guardian on file at the child care agency.

(4) Care of School-Age Children on Snow Days.

(a) A drop-in center may not accept any school-age child for care on snow days unless the license specifically authorizes the licensee to provide such care.

(b) The number of school-age children that a drop-in center may accept at any given time shall be determined by the Department based upon the amount of floor space.

(c) No child thirteen (13) years of age or older may be cared for by a drop-in center on a snow day.

(d) The center shall annually provide the Department with an updated list of trained educators and staff available for emergency call duty.

(5) Transportation. Transportation is prohibited.

(6) Staff Qualifications.

(a) Director of a Drop-In Child Care Center.

1. The drop-in center shall have an on-site director.

Exception: A drop-in child care center may operate without an on-site director no more than sixty (60) days total within the licensing year.

(7) Supervision and Grouping of Children.

(a) Age Categories and Adult:Child Ratios.

1. Children shall be placed in age-appropriate groups and with adequate adult educator supervision as established in parts 2. – 4. below.

2. Age Grouping.

Age of Children Adult:Child Ratio Six (6) weeks – Fifteen (15) months 1:4 Twelve (12) months – Thirty (30) months 1:7 Two (2) years 1:9 Three (3) years 1:12 Four (4) years 1:15 Five (5) years (not in Kindergarten) 1:18 School-age (Kindergarten and above) 1:22 3. Multi-Age Grouping.

(i) The adult:child ratio of a multi-age grouping shall be determined by the age of the majority of the children in the group; provided, however:

(I) No majority age: If the ages of the children are evenly divided, the adult:child ratio shall be determined by the age of the youngest child in the group.

(II) Infants: The adult:child ratio of any group containing an infant shall be determined solely by the number of infants in the group.

(ii) The adult:child ratio for any multi-age grouping containing three (3) or more infants is 1:4.

(iii) The adult:child ratio for a multi-age group containing infants is as follows:

Majority Age of Children Present One Infant Two Infants Twelve (12) months – Thirty (30) months 1:7 1:6 Two (2) years 1:9 1:6 Three (3) years 1:8 1:7 Four (4) years 1:10 1:9 Five (5) years (not in Kindergarten) 1:18 1:13 School-age (Kindergarten and above) 1:22 1:15 4. When more than fourteen (14) children are present, children under two (2) years of age shall have their own designated area.

(8) Nutritional Needs.

(a) A meal or a snack shall be available every three (3) hours according to a normal pattern as follows:

1. Three (3) to five (5) hours: One (1) meal or snack; and 2. Five (5) to six (6) hours: Two (2) meals or snacks.

(b) Care during non-traditional hours: For a child who is in care for extended or nighttime hours, meals and snacks will be offered in accordance with the child’s hunger and the hours of attendance.

(c) If the child care agency provides food, it shall be in accordance with the USDA’s Child and Adult Care Food Program (CACFP) nutritional guidelines.

(9) Licensed Capacity of Physical Space.

(a) The maximum number of children who may be present inside a physical space shall be determined in accordance with the minimum square footage. The Department may, in its discretion, restrict the child care agency’s licensed capacity below the maximum set forth in these rules.

(b) A minimum of thirty (30) square feet of usable indoor play space shall be provided for each child.

(c) Each nap room shall contain a minimum of thirty (30) square feet of floor space per child.

(d) For the purposes of calculating square footage requirements, the following shall not be counted:

1. Restrooms;

2. Hallways;

3. Kitchen;

4. Office space; or 5. Any space used by cribs or large pieces of furniture.

(e) Rooms with sufficient floor space, as defined by the requirements set forth in these rules, may be divided by a barrier at least four (4) feet in height and used for more than one (1) group.

(f) Adequate Plumbing Facilities. The child care agency shall have the minimum number of functional toilets and hand-washing stations in accordance with the:

1. Requirements of any applicable local ordinances and regulations;

2. Proximity of the plumbing to the classroom(s); and 3. Ages of the children served.

(10) Staff shall have documentation of all children’s allergies and how to deal with any allergic reaction.

(11) Staff shall review emergency preparedness and fire procedures and shall physically walk through the evacuation process every quarter.

(12) Prohibited Activities and Rules Not Applicable to Drop-In Child Care Centers:

(a) Prohibited Activities:

1. Swimming;

2. Transportation;

3. Provision of specialized services.

(b) Rules Not Applicable to Drop-In Child Care Centers:

1. Completed child application, immunization certificates (for children over two (2) months of age), and health history prior to admission;

2. Written documentation of parent/guardian pre-enrollment visit;

3. License notation to provide care during non-traditional hours;

4. Parent/guardian signed receipt of polices and summary of licensing requirements;

5. Ongoing parent/guardian communication regarding curriculum, personnel changes, and changes in child’s routine care;

6. Posting a report card;

7. Emergency procedure practice drills for the children;

8. Written action plan for each child with life-threatening allergies;

9. Immunization requirement exceptions;

10. Documentation of specific infant, toddler, or non-verbal child activities under children’s records;

11. Documentation of well-child exam prior to care (child under sixty (60) months);

12. Parent/guardian signed kindergarten status acknowledgement;

13. Daily written activity record for children with special needs;

14. Records regarding proof of staff education;

15. Staff sign-in of children during transportation;

16. First aid certification for all staff during non-traditional hours;

17. Accommodations that support and facilitate a family’s decision to continue breast feeding;

18. Sufficient indoor equipment, materials, and toys based upon the activities in

Chapter 1240-04-02 Repealed

Tenn. Comp. R. & Regs. 1240-04-02-.01 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-3-501, et seq.; 71-3-501(8); 71-3-502(a)(2) and (3); and 71-3-509.
• Administrative History: Chapter 1240-04-02 assigned a new control number, removed and renumbered to 0250-04-02 filed and effective March 25, 1999. New rule filed November 15, 2004; effective January 29, 2005. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-02-.10 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Chapter 1240-04-02 assigned a new control number, removed and renumbered to 0250-04-02 filed and effective March 25, 1999. New rule filed November 15, 2004; effective January 29, 2005. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-02-.02 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-3-501, et seq.; 71-3-501(8); 71-3-502(a)(2); and 71-3- 503.
• Administrative History: Chapter 1240-04-02 assigned a new control number, removed and renumbered to 0250-04-02 filed and effective March 25, 1999. New rule filed November 15, 2004; effective January 29, 2005. Amendment filed November 14, 2006; effective January 28, 2007. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-02-.03 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-3-501, et seq.; 71-3-501(8); and 71-3-502(a)(2).
• Administrative History: Chapter 1240-04-02 assigned a new control number, removed and renumbered to 0250-04-02 filed and effective March 25, 1999. New rule filed November 15, 2004; effective January 29, 2005. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-02-.04 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Chapter 1240-04-02 assigned a new control number, removed and renumbered to 0250-04-02 filed and effective March 25, 1999. New rule filed November 15, 2004; effective January 29, 2005. Amendment filed November14, 2006; effective January 28, 2007. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-02-.05 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-1-105(5) and (12); 71-3-501, et seq.; 71-3-501(8); 71- 3-502(a)(2); and Acts 2016, ch. 839.
• Administrative History: Chapter 1240-04-02 assigned a new control number, removed and renumbered to 0250-04-02 filed and effective March 25, 1999. New rule filed November 15, 2004; effective January 29, 2005. Amendment filed November 14, 2006; effective January 28, 2007. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-02-.06 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Chapter 1240-04-02 assigned a new control number, removed and renumbered to 0250-04-02 filed and effective March 25, 1999. New rule filed November 15, 2004; effective January 29, 2005. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-02-.07 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 4-5-209; 71-3-501, et seq.; 71-3-502; 71-3-502(a)(2); 71- 3-502(l); and Acts 2008, ch. 1032.
• Administrative History: Chapter 1240-04-02 assigned a new control number, removed and renumbered to 0250-04-02 filed and effective March 25, 1999. New rule filed November 15, 2004; effective January 29, 2005. Public necessity rule filed October 1, 2008; effective through March 15, 2009. Amendment filed December 29, 2008; effective March 14, 2009. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-02-.08 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 37-1-101, et seq.; 37-1-113; 37-1-401, et seq.; 37-1-601, et seq.; 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Chapter 1240-04-02 assigned a new control number, removed and renumbered to 0250-04-02 filed and effective March 25, 1999. New rule filed November 15, 2004; effective January 29, 2005. Amendment filed November 14, 2006; effective January 28, 2007. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-02-.09 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Chapter 1240-04-02 assigned a new control number, removed and renumbered to 0250-04-02 filed and effective March 25, 1999. New rule filed November 15, 2004; effective January 29, 2005. Repeal filed May 1, 2018; effective July 30, 2018.

Chapter 1240-04-03 Repealed

Tenn. Comp. R. & Regs. 1240-04-03-.01 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-1-105(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule certified June 10, 1974. Amendment filed April 3, 1980; effective May 18, 1980. Repeal and new rule filed October 6, 1986; effective November 20, 1986. Amendment filed April 22, 1992; effective June 6, 1992. Repeal and new rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.16 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.02 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-1-105(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule certified June 10, 1974. Amendment filed April 3, 1980; effective May 18, 1980. Repeal and new rule filed October 6, 1986; effective November 20, 1986. Amendment filed January 7, 1987; effective April 29, 1987. Amendment filed April 22, 1992; effective June 6, 1992. Amendment filed July 1, 1993; effective September 14, 1993. Repeal and new rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed September 29, 2000; effective December 13, 2000. Amendment filed October 17, 2001; effective December 31, 2001. Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.03 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-1-105(5); 71-3-501, et seq.; 71-3-502(a)(2) and (3); and 71-3-503(a)(6), (8), and (9).
• Administrative History: Original rule certified June 10, 1974. Amendment filed April 3, 1980; effective May 18, 1980. Repeal and new rule filed October 6, 1986; effective November 20, 1986. Amendment filed January 7, 1987; effective April 29, 1987. Amendment filed April 22, 1992; effective June 6, 1992. Amendment filed July 1, 1993; effective September 14, 1993. Repeal and new rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Withdrawal of repeal of 1240-04-03-.03(4)(f) and (1) filed August 31, 1998. Amendment filed September 29, 2000; effective December 13, 2000. Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.04 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-1-105(5); 71-3-501, et seq.; 71-3-502(a)(2); and 71-3- 508(c).
• Administrative History: Original rule certified June 10, 1974. Amendment filed April 3, 1980; effective May 18, 1980. Repeal and new rule filed October 6, 1986; effective November 20, 1986. Amendment filed April 22, 1992; effective June 6, 1992. Repeal and new rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.05 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-1-105(5); 71-3-501, et seq.; 71-3-502(a)(2), and Acts 2016, ch. 839.
• Administrative History: Original rule certified June 10, 1974. Amendment filed April 3, 1980; effective May 18, 1980. Repeal and new rule filed October 6, 1986; effective November 20, 1986. Amendment filed April 22, 1992; effective June 6, 1992. Repeal and new rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Repeal and new rule filed June 20, 2006; effective September 3, 2006. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.06 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-1-105(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule certified June 10, 1974. Amendment filed April 3, 1980; effective May 18, 1980. Amendment filed June 7, 1982; effective September 30, 1982. Amendment filed June 27, 1985; effective September 13, 1985. Repeal and new rule filed October 6, 1986; effective November 20, 1986. Amendment filed January 7, 1987; effective April 29, 1987. Amendment filed April 22, 1992; effective June 6, 1992. Repeal and new rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 18, 1999; effective January 31, 2000. Amendment filed September 29, 2000; effective December 13, 2000. Amendment filed August 27, 2001; effective November 10, 2001. Amendment filed November 21, 2002; effective February 4, 2003. Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.07 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-1-105(5); 71-3-501, et seq.; 71-3-502(a)(2); 71-3-507; and Acts 2016, ch. 839.
• Administrative History: Original rule certified June 10, 1974. Amendment filed April 3, 1980; effective May 18, 1980. Repeal and new rule filed October 6, 1986; effective November 20, 1986. Amendment filed April 22, 1992; effective June 6, 1992. Repeal and new rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Withdrawal of new rule 1240-04-03-.07(4)(e) and (m)1. filed August 31, 1998. Amendment filed September 29, 2000; effective December 13, 2000. Stay of effective date filed December 8, 2000 by The House Government Operations Committee for subparts 3, 4, 11, 12, 13, and 14 of subparagraph (e) of paragraph (4). The new effective date for these subparts is February 13, 2001. Amendment filed August 27, 2001; effective November 10, 2001. Amendment filed October 17, 2001; effective December 31, 2001. Amendment filed September 29, 2003; effective December 13, 2003. Repeal and new rule filed June 20, 2006; effective September 3, 2006. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.08 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule certified June 10, 1974. Amendment filed April 3, 1980; effective May 18, 1980. Repeal and new rule filed October 6, 1986; effective November 20, 1986. Amendment filed April 22, 1992; effective June 6, 1992. Repeal and new rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.09 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 4-5-209; 71-1-105(5); 71-3-501, et seq.; 71-3-502; 71-3- 502(a)(2); 71-3-502(l); and 2008 Acts, ch. 1032.
• Administrative History: Original rule certified June 10, 1974. Amendment filed April 3, 1980; effective May 18, 1980. Repeal and new rule filed October 6, 1986; effective November 20, 1986. Repeal and new rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998, new effective date October 31, 1998. Repeal and new rule filed June 20, 2006; effective September 3, 2006. Public necessity rule filed October 1, 2008; effective through March 15, 2009. Amendment filed December 29, 2008; effective March 14, 2009. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.10 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 37-1-113; 37-1-401, et seq.; 37-1-403; 37-1-601, et seq.; 37-1-605; 39-17-1601, et seq.; 71-1-105(5); 71-3-501, et seq.; 71-3-502(a)(2); 71-3-508; and 20 U.S.C. §§ 6081, et seq.
• Administrative History: Original rule certified June 10, 1974. Amendment filed April 3, 1980; effective May 18, 1980. Repeal and new rule filed October 6, 1986; effective November 20, 1986. Amendment filed April 22, 1992; effective June 6, 1992. Repeal and new rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 21, 2002; effective February 4, 2003. Amendment by Acts of 2003, Public Chapter 412, §§ 1(c) and 3 filed June 25, 2003; effective July 1, 2003. Amendment filed September 29, 2003; effective December 13, 2003. Amendment filed October 18, 2004; effective January 1, 2005. Amendment filed August 3, 2005; effective October 17, 2005. Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.11 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-03-.10). Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.12 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-01-.11). Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.13 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 55-9-601 through 55-9-603; 71-1-105(5); 71-3-501, et seq.; 71-3- 502(a)(2); 71-3-502(d)(7)(C)(iii); 49 C.F.R. §§ 571, et seq.; and 49 C.F.R. § 571.208.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-01-.12). Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.14 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date of repeal and new rule filed July 21, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed October 17, 2001; effective December 31, 2001. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-01-.13). Repeal and new rule filed June 20, 2006; effective September 3, 2006. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-03-.15 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5); 71-3-501, et seq.; and 71-3-502(a)(2).
• Administrative History: Original rule filed November 21, 2002; effective February 4, 2003 (Formerly

Chapter 1240-04-04 Repealed

Tenn. Comp. R. & Regs. 1240-04-04-.01 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105; 71-3-501, et seq.; and Acts 2000, ch. 981, §§ 8 and 14.
• Administrative History: Original rule certified June 10, 1974. Repeal and new rule filed October 28, 1976; effective January 14, 1977. Repeal filed March, 17, 1980; effective June 29, 1980. New rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed April 30, 1996; effective July 14, 1996. Amendment filed September 29, 2000; effective December 13, 2000. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-04-.11 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 55-50-102(11) and (20); 71-1-105(5); 71-3-501, et seq.; 71-3-502(a)(2); and 49 C.F.R. Part 571.
• Administrative History: Original rule filed November 21, 2002; effective February 4, 2003. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-04-.02 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 71-1-105(5); 71-3-105(5); 71-3-501, et seq.; 71-3- 502(a)(2); 71-3-502(4)(B); Acts 2000, ch. 981, §§ 3(a)(4) and 14; and Acts 2016, ch. 839.
• Administrative History: Original rule certified June 10, 1974. Repeal and new rule filed October 28, 1976; effective January 14, 1977. Repeal filed March 17, 1980; effective June 29, 1980. New rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed July 1, 1993; effective September 14, 1993. Amendment filed November 18, 1999; effective January 31, 2000. Amendment filed September 29, 2000; effective December 13, 2000. Amendment filed August 30, 2001; effective November 13, 2001. Amendment filed November 21, 2002; effective February 4, 2003. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-04-.03 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-209; 71-1-105; 71-3-501, et seq.; 71-3-502(a)(2); 71-3-508(c); Acts 2000, ch. 981, §§ 8 and 14; Acts 2003, ch. 412, § 2; and Acts 2016, ch. 839.
• Administrative History: Original rule certified June 10, 1974. Repeal and new rule filed October 28, 1976; effective January 14, 1977. Repeal filed March 17, 1980; effective June 29, 1980. New rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed July 1, 1993; effective September 14, 1993. Amendment filed September 29, 2000; effective December 13, 2000. Amendment filed September 29, 2003; effective December 13, 2003. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-04-.04 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(12); and 71-3-501, et seq.
• Administrative History: Original rule filed June 10, 1974. Repeal and new rule filed October 28, 1976; effective January 14, 1977. Repeal filed March 17, 1980; effective June 29, 1980. New rule filed December 6, 1983; effective January 5, 1984. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed April 30, 1996; effective July 14, 1996. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-04-.05 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 4-5-209; 71-1-105(12); 71-3-501, et seq.; 71-3-502; 71-3- 502(l); and 2008 Acts, ch. 1032.
• Administrative History: Original rule certified June 10, 1974. Repeal and new rule filed October 28, 1976; effective January 14, 1977. Repeal filed March 17, 1980; effective June 29, 1980. New rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Public necessity rule filed October 1, 2008; effective through March 15, 2009. Amendment filed December 29, 2008; effective March 14, 2009. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-04-.06 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 37-1-603(b)(1)(A); 71-1-105(5) and (12); 71-3-501, et seq.; 71-3-502(a)(2); and Acts 2016, ch. 839.
• Administrative History: Original rule certified June 10, 1974. Repeal and new rule filed October 28, 1976; effective January 14, 1977. Repeal filed March 17, 1980; effective June 29, 1980. New rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Emergency rules filed July 1, 2016; effective through December 28, 2016. Amendments filed September 28, 2016; effective December 27, 2016. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-04-.07 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; 4-5-209; 55-50-102(11) and (20); 71-1-105(5); 71-3-501, et seq.; 71-3-502(a)(2); 71-3-508(c); 2003 Acts, ch. 412, §§ 1(c), 2, and 3; and 49 C.F.R. Part 571.
• Administrative History: Original rule certified June 10, 1974. Repeal and new rule filed October 28, 1976; effective January 14, 1977. Repeal filed March 17, 1980; effective June 29, 1980. New rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed November 21, 2002; effective February 4, 2003. Amendment by Acts of 2003, Public Chapter 412, §§ 1(c) and 3 filed June 25, 2003; effective July 1, 2003. Amendment filed September 29, 2003; effective December 13, 2003. Amendment filed October 18, 2004; effective January 1, 2005. Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-04-.08 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(12); and 71-3-501, et seq.
• Administrative History: Original rule certified June 10, 1974. Repeal and new rule filed October 28, 1976; effective January 14, 1977. Repeal filed March 17, 1980; effective June 29, 1980. New rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-04-.07). Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-04-.09 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(12); and 71-3-501, et seq.
• Administrative History: Original rule certified June 10, 1974. Repeal and new rule filed October 28, 1976; effective January 14, 1977. Repeal filed March 17, 1980; effective June 29, 1980. New rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-04-.08). Repeal filed May 1, 2018; effective July 30, 2018.

Tenn. Comp. R. & Regs. 1240-04-04-.10 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(12); and 71-3-501, et seq.
• Administrative History: Original rule certified June 10, 1974. Repeal and new rule filed October 28, 1976; effective January 14, 1977. Repeal filed March 17, 1980; effective June 29, 1980. New rule filed December 6, 1983; effective January 5, 1984. Amendment filed October 9, 1987; effective January 27, 1988. Repeal and new rule filed April 22, 1992; effective June 6, 1992. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-04-04-.09). Repeal filed May 1, 2018; effective July 30, 2018.

Chapter 1240-04-05 Procedures Affecting Licenses of Child Care Agencies

Tenn. Comp. R. & Regs. 1240-04-05-.01 PURPOSE AND SCOPE

(1) These rules shall apply to all child care agencies licensed by the Department of Human Services pursuant to T.C.A. §§ 71-3-501 et seq. and to all proceedings held before the Child Care Agency Board of Review established pursuant to T.C.A. §§ 71-3-501 et seq. Any conflict between these rules and those governing specific classes of child care agencies shall be resolved by reference to these rules.

(2) These rules establish procedures for the application and issuance of licenses for child care agencies; the placement on probation of a child care agency by the Department of Human Services; the imposition of a civil penalty by the Department of Human Services against a licensee of a child care agency, the summary suspension of licenses of child care agencies and the denial, revocation, or restriction of licenses by the Department of licenses of child care agencies licensed by the Department of Human Services pursuant to T.C.A. §§ 71-3- 501 et seq.

(3) All persons or entities operating a child-care center, a family-child care home, a group child care home, a drop-in center as defined by T.C.A. § 71-3-501 and the rules of the Department of Human Services must be licensed by the Department as provided by T.C.A. §§ 71-3-501 et seq. and the rules of the Department unless otherwise exempted by T.C.A. § 71-3-503 and the rules of the Department.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105; 71-3-501, et seq., and Acts 2000, ch. 981, §§ 1-4 and 14.
• Administrative History: Chapter 1240-04-05 has been assigned a new control number, removed and renumbered to chapter 0250-04-05 filed and effective March 25, 1999. New rule filed September 29, 2000; effective December 13, 2000.

Tenn. Comp. R. & Regs. 1240-04-05-.02 DEFINITIONS

(1) Applicant. The owner or owner’s representative who is required, pursuant to the provisions of these rules, to sign the application for a license.

(2) Application. The form for, and the process of, applying for a license from the Department of Human Services.

(3) Child care agency. A place or facility, regardless of whether it is currently licensed, that is operated as a “family child care home”, a “group child care home”, a “child care center”, or a “drop-in child care center”, that provides child care for three (3) or more hours per day to five (5) or more children who are not related to the primary educator.

(4) Child Care Agency Board of Review, Board of Review or Board. A committee established to review actions initiated by the Department of Human Services and the Department of Children’s Services to deny an application for licensure, revoke a license, or otherwise limit any license, except for summary suspension of, or probation involving, a license; any civil penalties imposed by the Department of Human Services; or any safety plan implemented by the Department of Human Services that will be, or has been, in effect ninety (90) days or more.

(5) Civil Penalty. A financial sanction imposed by the Department of Human Services against a child care agency that has violated a licensing regulation.

(6) Commissioner. The Commissioner of the Department of Human Services.

(7) Continuous License. A license issued to a child care agency following its provisional licensure period and after the agency has demonstrated its ability to attain and maintain compliance with all licensing laws and regulations.

(8) Denial. The decision of the Department of Human Services not to issue a provisional or continuous license.

(9) Department (DHS). The Tennessee Department of Human Services and its authorized representatives.

(10) Hearing Official. The administrative judge assigned to conduct summary suspension hearings or for Child Care Agency Board of Review hearings as may be permitted by law.

(11) Law. The statutory or regulatory provisions affecting the operation of a child care agency.

(12) License. A permit issued by the Department to a child care agency, authorizing the licensee to provide child care in accordance with provisions of the license, the law, and the regulations of the Department. Issuance of a license is not an endorsement by the Department of child care methods or of an agency's operational philosophy.

(13) Licensee. The person, agency, group, or entity to whom or to which a license to operate a child care agency is issued by the Department.

(14) Provisional license. A license issued to a child care agency for one hundred twenty (120) days for the purpose of allowing the child care agency to demonstrate their ability to attain and maintain compliance with all licensing laws and regulations. Such provisional license may continue in effect, unless suspended if the Department fails to issue a continuous license after the one hundred twenty (120) day period if the Department determines an extension is necessary to allow the child care agency to demonstrate ability to maintain compliance with licensing laws and regulations.

(15) Reapplication. Application for a new license following denial or revocation of a license.

(16) Restricted license. A license which, either at the time of issuance, or during the license’s existence, is reduced in its operational authority by the Department so that the child care agency’s ability to provide certain child care related services are limited because the Department has determined that one or more areas of the agency’s operations are not in compliance with child care laws or regulations or the agency’s operations are, or have posed, a risk to the health, safety or welfare of children in the agency’s care or the agency’s operations pose the potential of such risk. A restricted license may also be imposed by the Child Care Agency Board of Review as part of its review of the licensing status of a child care agency in the same manner and for the same reasons as such a license is issued or imposed by the Department. A restricted license may be appealed to the Child Care Agency Board of Review.

(17) Revocation. The permanent removal of an existing license.

(18) Summary Suspension. The emergency suspension of a license for violation(s) of licensing laws or regulations needed to adequately protect the health, safety, or welfare of children in a child care agency. Summary suspension may be ordered in circumstances that have resulted in death, injury, or harm to a child or that have posed or threatened to pose a serious and immediate threat of harm or injury to a child based upon the intentional or negligent failure to comply with licensing laws or regulations.

History

• Authority: T.C.A. §§ 71-1-105(a)(5); 71-3-501, et seq.; and 71-3-509(e).
• Administrative History: Chapter 1240-04-05 has been assigned a new control number, removed and renumbered to chapter 0250-04-05 filed and effective March 25, 1999. New rule filed September 29, 2000; effective December 13, 2000. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-05-.03 LICENSING PROCESS

(1) Licensing Criteria.

(a) A license for the operation of a child care agency is issued and its continued approval is based upon the following general criteria:

1. The safety, welfare and best interests of the children in the care of the agency;

2. The capability, training and character of the persons providing or supervising the care to the children;

3. The quality of the methods of care and instruction provided for the children;

4. The suitability of the facilities provided for the care of the children; and 5. The adequacy of the methods of administration and the management of the child care agency, the agency’s personnel policies, and the financing of the agency.

(b) Failure to attain or maintain the criteria in subparagraph (a) either alone, or in conjunction with failure to attain or maintain compliance with any other regulations governing the specific class of child care agency, may be the basis for refusal to grant a license, or for placing the child care agency on probation, or for suspension, denial or revocation of the agency’s license.

(2) The Department shall assist applicants or licensees in meeting the child care standards of the Department unless the circumstances demonstrate that further assistance is not compatible with the continued safety, health or welfare of the children in the agency’s care and that regulatory action affecting the agency’s license is warranted. It is the responsibility of the applicant/licensee to comply with all regulations of the Department of Human Services and those regulations of any other federal, state or local regulatory agency which are necessary for the proper operation of a child care business and to demonstrate to the Department a good faith commitment to attaining and maintaining compliance with all applicable licensing standards. All costs and expenses arising from or related to meeting the child care standards of the Department shall be borne entirely by the applicant or licensee; provided, however, the Department may, in its discretion, provide from available funds technical assistance to child care agencies, and for the training of child caregivers and directors.

(3) If a licensee is denied, or if a license is revoked or suspended, or if any applicant for a license cannot meet the standards, then the Department shall offer reasonable assistance to the parent, guardian, or custodian of the child in planning for the placement of such children in licensed child care agencies or other suitable care.

(4) Application for an Initial License. Application for an initial license to operate a child care agency shall be made in writing to the Department in such manner as the Department determines and shall be accompanied by the appropriate fee set forth in the fee schedule in paragraph (14).

(5) Provisional License.

(a) If the Department determines that the applicant for an initial license has presented satisfactory evidence that the facility which is proposed for the care of children has received fire safety and environmental safety approval, that the applicant and the personnel who will care for the children are capable in all substantial respects to care for the children and that the applicant has the ability and intent to comply with the licensing law and regulations, the Department may issue a provisional license to the applicant. No provisional license will be issued until, at a minimum, fire safety and environmental safety inspections have been conducted and the applicant has received approval from the appropriate agencies.

(b) If the Department determines that the conditions of the applicant’s facility, its methods of care or other circumstances warrant, it may issue a restricted provisional license which limits the agency’s authority in one or more areas of operation.

(c) The purpose of the provisional license is to permit the license applicant to begin the operation of a child care agency after meeting certain minimum requirements and to demonstrate during the provisional licensing period that it has the ability to attain and maintain compliance with all licensing laws and regulations.

(d) Within one hundred twenty (120) days of the issuance of the provisional license, the Department shall determine if the applicant has demonstrated that it meets all of the requirements for the issuance of a license for the classification of child care agency for which the application was made.

(6) Continuous License.

(a) If the Department determines that the applicant for any license has complied with all licensing regulations for the classification of child care agency for which application was made, the Department may issue a license or may, if appropriate, issue a restricted license as provided in subparagraph (b).

(b) If the Department determines that the conditions of the applicant’s facility, its methods of care or other circumstances warrant, it may issue a restricted license which limits the agency’s authority in one or more areas of operation.

(7) License Information.

(a) Based upon information provided in the license application or as may be requested by the Department, the license shall describe the ownership of the child care agency, the person who is charged with the day-to-day management of the child care agency, and, if the agency is owned by a person other than the director, or if the agency is under the ownership or direction or control of any person or entity who is not also the on-site director or manager of the agency, the license shall also state the corporate or other name of the controlling person or entity, its address and telephone number where the parents, guardians or custodians may have contact regarding the agency’s operations.

(b) If the child care agency is operated by a public or private non-profit entity and is subject to the control or direction of a board of directors or other oversight authority, the license shall list the name, address and telephone number of the chairman of the board or other executive head of such controlling body.

(8) Posting of License.

The licensee shall post the license in a clearly visible location as determined by the Department so that parents or other persons visiting the agency can readily view the license and all the information on the license.

(9) Before and After School Services.

(a) In order for a child care agency to offer before or after school services, the Department will issue a license bearing a notation that the agency is authorized to provide such services.

(b) An agency is not authorized to offer such services unless the license bears such a notation.

(10) In granting a license, the Department may limit the total number of children who may be enrolled at the agency regardless of the agency’s physical capacity or the size of its staff.

(11) License Status Following Application or Appeal.

(a) If the Department fails to issue or deny a license within one hundred twenty (120) days of the granting of the provisional license, the provisional license shall continue in effect, unless suspended as provided in 1240-04-05-.04(5), until such determination is made.

(b) If a license is denied following the issuance of a provisional license, and if a timely appeal is made of the denial of the license, the provisional license shall remain in effect, unless suspended as provided in 1240-04-05-.04(5), until the Child Care Agency Board of Review renders a decision regarding the denial of the license.

(12) If a provisional or continuous license is denied, or a continuous license is restricted, the applicant may file an appeal as provided in T.C.A. § 71-3-509 and other applicable laws and rules governing the Child Care Agency Board of Review.

(13) Transfers of Licenses.

(a) Except as provided in this chapter, no license for a child care agency shall be transferable from one location to another or from one licensee/operator to another, and the transfer by sale or lease, or in any other manner, of the operation of the child care agency to any other person or entity shall void the existing license immediately and any pending appeal involving the status of the license, and the child care agency shall be required to close; provided that if the transferee has made application for, and is granted, a provisional license, the child care agency may continue operation under the direction of the new licensee. The new licensee in such circumstances may not be the transferor or any person or entity acting on behalf of the transferor.

(b) Notice of Termination to Buyer/Lessee/Transferee.

1. Except for transfers subject to the provisions of subparagraph (d), at least thirty (30) days before the sale, lease, or transfer by any other means, of a child care agency, the licensee/owner/management of the child care agency shall notify in writing the buyer, lessee or other prospective transferee of the child care agency that the license of the child care agency is not transferable and that upon the effective date of the transfer, the license of the child care agency will automatically terminate and of the need to seek a provisional license from the Department for continued operation of the child care agency.

2. The licensee/owner/management of the child care agency shall notify in writing the Department at the same time the notice required by part 1 is sent and shall clearly identify the date of the transfer and the identity of the prospective buyer/lessee/transferee.

(c) If the Department determines that any person or entity has transferred nominal control of a child care agency to any persons or entities who are determined by the Department to be acting on behalf of the purported transferor in order to circumvent a

history of violations of the licensing law or regulations or to otherwise attempt to circumvent the licensing law or regulations or any prior licensing actions instituted by the Department, the Department may deny the issuance of any license to the applicant.

The denial of the license may be appealed as provided in T.C.A. § 71-3-509 and other applicable laws and rules governing the Child Care Agency Board of Review.

(d) The license of any child care agency shall not be voided nor shall any pending appeal be voided pursuant to this paragraph solely for the reason that the child care agency is subject to judicial orders directing the transfer of control or management of a child care agency or its license to any receiver, trustee, administrator or executor of an estate, or any similarly situated person or entity.

(e) If the current licensee dies or is incapacitated, and provided that no licensing violations require the suspension, denial or revocation of the child care agency's license, the Department may grant family members of the licensee, or administrators or executors of the licensee, a new provisional license to continue operation for a period of one hundred and twenty (120) days. At the end of such period, the Department shall determine whether a license should be granted to a new licensee as otherwise provided in this chapter.

(f) Nothing in this paragraph (13) shall be construed to prevent the Department from taking any regulatory or judicial action as may be required pursuant to the licensing laws and regulations that may be necessary to protect the children in the care of such child care agency.

(14) Application Fees.

The following application fees shall apply to applications for initial licenses for child care agencies licensed by the Department:

(a) Family child care homes: $100.00 (b) Group child care homes: $125.00 (c) Child care centers (Less than 100 children): $200.00 (d) Child care centers (More than 100 children): $400.00 (e) Child care centers (More than 250 children): $500.00 (f) Drop-in centers: $200.00

History

• Authority: T.C.A. §§ 71-1-105(a)(5); 71-3-501, et seq.; and 71-3-502.
• Administrative History: Chapter filed and effective March 25, 1999. New rule filed September 29, 2000; effective December 13, 2000. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-05-.04 VIOLATIONS OF LICENSING REGULATIONS

(1) Right of Inspection.

(a) It is the duty of the Department, through its duly authorized agents, to inspect at regular intervals, without previous notice, all child care agencies or suspected child care agencies, as defined in T.C.A. § 71-3-501.

(b) The Department is given the right of entrance, privilege of inspection, access to accounts, records, and information regarding the whereabouts of children under care for the purpose of determining the kind and quality of the care provided to the children and to obtain a proper basis for its decisions and recommendations.

(c) If refused entrance for inspection of a licensed, approved or suspected child care agency, the chancery or circuit court of the county where the licensed, approved or suspected child care agency may be located may issue an immediate ex parte order permitting the Department's inspection upon a showing of probable cause, and the court may direct any law enforcement officer to aid the Department in executing such order and inspection. Refusal to obey the inspection order may be punished as contempt.

(d) Except where court orders prohibit or otherwise limit access, parents or other caretakers of children in the care of a child care agency licensed pursuant to T.C.A. §§ 71-3-501 et seq. shall be permitted to visit and inspect the facilities and observe the methods for the care of their children at any time during which the children are in the care of the agency and, except those records of other children in the care of the agency and their parents or caretakers, shall further be permitted to inspect any records of the agency which are not privileged, or are not otherwise confidential, as provided by law or regulation, and the parents’ or caretakers’ access for these purposes shall not be purposely denied by the agency.

(e) Any violation of the rights given in this paragraph is a Class A misdemeanor.

(2) Probation.

(a) If, during the licensing period, the Department determines that a child care agency is not in compliance with the laws or regulations governing its operation, and, if after reasonable written notice to the child care agency of the non-compliance, the Department determines that the violation or related violations remain uncorrected, the Department may place the licensed child care agency on probation for a definite period of not less than thirty (30) days nor more than sixty (60) days as determined by the Department. The Department shall provide the child care agency a written notice describing the violation of the licensing rules that support the basis for the probationary status.

(b) If placed on probation, the agency shall immediately post a copy of the probation notice, together with a list provided by the Department of the violations which were the

basis for the probation, in a conspicuous place as directed by the Department and with the agency's license, and the agency shall immediately notify in writing the custodians of each of the children in its care of the agency's status, the basis for the probation and of the agency’s right to an informal review of the probationary status.

(c) If the child care agency requests an informal review within two (2) business days of the imposition of probation, either verbally or in writing, an informal review of the probationary status shall be conducted by Department licensing personnel who were not involved in the decision to impose the probation. The child care agency may submit any written or oral statements as argument to the licensing supervisor or designee within five (5) business days of the imposition of the probation. Written and oral statements may be received by any available electronic means. The licensing supervisor or designee shall render a decision in writing upholding, modifying or lifting the probationary status within seven (7) business days of the imposition of the probation.

(d) If the licensing supervisor or designee did not lift the probation under subparagraph (c), the agency may also appeal such action in writing to the Commissioner within five (5) business days of the receipt of the notice of the licensing supervisor or designee’s decision regarding the agency’s probationary status as determined in subparagraph (c). If timely appealed, the Department shall conduct an administrative hearing pursuant to the contested case provisions of T.C.A. §§ 4-5-301 et seq. concerning the Department’s action within fifteen (15) business days of receipt of the appeal and shall render a decision in writing within seven (7) business days following conclusion of the hearing. The hearing officer may uphold, modify or lift the probation.

(e) The imposition of probation pursuant to the provisions of this paragraph (2) shall be discretionary with the Department, and shall not be a prerequisite to any licensing action, to impose a civil penalty or to suspend, deny or revoke a license of a child care agency.

(3) Civil Penalties.

(a) General Provisions.

1. If the Department determines that there exists any violation with respect to any person or entity required to be licensed pursuant to T.C.A. §§ 71-3-501 et seq., the Department may assess a civil penalty against such person or entity for each separate violation of a statute, rule or order pertaining to such person or entity in an amount ranging from Fifty Dollars ($50.00) for minor violations up to a maximum of One Thousand Dollars ($1,000.00) for major violations or violations resulting in death or injury to a child. Each day of continued violation constitutes a separate violation.

2. Any recommendation made by licensing staff for a civil penalty shall be reviewed and approved by the Department’s state office management and the Department’s legal staff before being imposed.

(b) Civil Penalties Schedule.

1. Major Violations.

(i) For any violation of any licensing laws or regulations that, due to negligence or intentional disregard of licensing law or regulations, results in serious injury to, or death of, a child, the Department may assess a civil penalty in a range from Seven Hundred Fifty Dollars ($750.00) up to One Thousand Dollars ($1,000.00). The Department shall determine the amount of the penalty based upon the extent of the injury to the child and whether the injury or death of the child was the result of negligence or intentional disregard of the licensing regulations. Consideration of the licensee’s history of prior violations shall also be a factor in the determination of the amount of the civil penalty.

(ii) For any violation of any licensing laws or regulations that, due to negligence or intentional disregard of licensing law or regulations, results in an injury to a child, the Department may assess a civil penalty in a range from Five Hundred Dollars ($500.00) up to Seven Hundred Dollars ($700.00). The Department shall determine the amount of the penalty based upon the extent of the injury and whether the injury to the child was the result of negligence or intentional disregard of the licensing regulations.

Consideration of the licensee’s history of prior violations shall also be a factor in the determination of the amount of the civil penalty.

(iii) For any violation of any licensing laws or regulations that, due to negligence or intentional disregard of licensing law or regulations, results in children leaving the child care agency premises without supervision, or children left unsupervised that may result in imminent harm, the Department may assess a civil penalty in a range from Seven Hundred Fifty Dollars ($750.00) up to One Thousand Dollars ($1,000.00). The Department shall determine the amount of the penalty based upon the extent of the potential harm to the child and whether the potential harm to the child was a result of negligence or intentional disregard of the licensing regulations. Consideration of the licensee’s history of prior violations shall also be a factor in the determination of the amount of the civil penalty.

(iv) For violations of the following categories of regulations the Department may impose a civil penalty of Two Hundred Dollars ($200.00) for the first violation, Three Hundred Dollars ($300.00) for the second violation, and Four Hundred Dollars ($400.00) for the third and any subsequent such violation:

(I) Failure to follow any rule related to the proper transportation of children by employees, substitutes, volunteers, agents or contractors of the child care agency;

(II) Violation of adult:child ratio requirements;

(III) Failure to complete required background checks on staff;

(IV) Use of corporal punishment/inappropriate discipline;

(V) Lack of Insurance;

(VI) Failure to report suspicion of abuse or neglect;

(VII) Falsification of documents required by the Department;

(VIII) Failure to have CPR/first aid certification as required by the Department;

(IX) Lack of proper supervision of children;

(X) Failure to properly dispense or store medications;

(XI) Failure to remove persons from access to children following notification of a prohibited criminal background or pending criminal charge or following notification of the person’s validated status as a perpetrator of child abuse;

(XII) Failure to properly store hazardous items such as, but not limited to, cleaning products, pesticides, hazardous chemicals, or other poisonous items; and (XIII) Failure to properly remove or secure firearms within the child care agency area which are under the ownership or control of the child care agency or its staff, substitutes, or other persons permitted access to the children; or failure to prevent exposure of children in the child care agency’s care to firearms which are under the control of the child care agency or its staff, substitutes, or other persons who have been permitted by the child care agency to have access to the children.

(v) The existence of six (6) or more minor violations of any type in any period of three (3) or more months shall constitute a major violation and may be subject to a civil penalty imposed by the Department of Two Hundred Dollars ($200.00) in addition to the penalty for each minor violation. Three (3) or more minor violations of the same regulation in any period of three (3) or more months shall constitute a major violation and may be subject to a civil penalty imposed by the Department of Two Hundred Dollars ($200.00) in addition to the penalty for each minor violation.

2. Minor Violations.

(i) A minor violation shall be any rule violation not described as a major violation in part 1.

(ii) Each minor violation may subject the licensee to a civil penalty of Fifty Dollars ($50.00).

(c) The Department shall assess any civil penalty that it imposes in an order that states the reasons for the assessment of the civil penalty and the amount of the penalty.

(d) The order may be served on the licensee personally by an authorized agent of the Department who shall complete an affidavit of service, or the order may be served by certified mail, return receipt requested.

(e) The licensee may appeal the penalty to the Child Care Agency Board of Review by filing a request for an appeal in writing with the Commissioner within ten (10) days of the personal service of the order or mailing date of the order. The hearing on the appeal shall be heard within ninety (90) days unless continued for good cause shown.

(f) Civil penalties assessed pursuant to this subsection shall become final ten (10) days after the date an order of assessment is served if not timely appealed, or, if timely appealed, within seven (7) days following entry of the Board’s order unless the Board’s order is stayed.

(g) Remedies for Failure to Pay Civil Penalty.

1. If the violator fails to pay an assessment when it becomes final, the Department may apply to the Chancery Court of Davidson County, Tennessee for a judgment and seek execution of such judgment.

2. No application for a new license will be accepted by the Department until a civil penalty that has become final has been paid in full. Failure to pay in full a civil penalty which has become final is grounds for denial of a pending application for a provisional or continuous license and, further, is grounds for revocation of an existing license.

(h) The determination to impose a civil penalty shall be discretionary with the Department and shall not be a prerequisite to any other licensing action to suspend, deny or revoke a child care agency’s license. Civil penalties may also be used in conjunction with the probation, suspension, denial or revocation of a license.

(4) Denial and Revocation of Licenses.

(a) If the Department determines that any applicant for a provisional license or an existing licensee has failed to maintain compliance with licensing laws or regulations after reasonable notice, consistent with the safety of the children in the care of the child care agency, of such failure and a reasonable opportunity to demonstrate compliance with licensing laws or regulations, the Department may deny the application for the provisional license or may revoke the existing license; provided, however, the Department at any time may deny a provisional license if the applicant fails to meet the initial requirements for its issuance; and, provided, further, if the Department determines that repeated or serious violations of licensing laws or regulations warrant the denial or revocation of the license, then, notwithstanding any provisions of T.C.A. § 4-5-320 or this paragraph to the contrary, the Department may seek denial or revocation of the license regardless of the licensee's demonstration of compliance either before or after the notice of denial of the application or before or after notice of the revocation of the license.

(b) Notwithstanding the provisions of T.C.A. § 4-5-320, the notice of denial or revocation may be served personally by an authorized representative of the Department who shall verify service of the notice by affidavit, or the notice may be served by certified mail, return receipt requested.

(c) If application for the provisional or initial license is denied or if an existing license is revoked, the applicant may appeal the denial or revocation by requesting in writing to the Department a hearing before the Child Care Agency Board of Review within ten (10) days of the personal delivery or mailing date of the notice of denial or revocation.

Failure to timely appeal shall result in the expiration of any existing license immediately upon the expiration of the time for appeal.

(d) The hearing shall be held in accordance with the hearing procedures before the Child Care Agency Board of Review pursuant to the licensing law.

(e) If timely appeal of the denial or revocation is made, then, pending the hearing upon the denial or revocation, the child care agency may continue to operate pending the decision of the Child Care Agency Board of Review unless the license is summarily suspended as provided in paragraph (5).

(5) Summary Suspension of Licenses.

(a) Subject to the following provisions of this section, if the Department determines at anytime that the health, safety or welfare of the children in care of the child care agency imperatively requires emergency action, and incorporates a finding to that effect in its order, summary suspension of the license may be ordered by the Department pending any further proceedings for revocation, denial or other action.

Summary suspension may be ordered in circumstances that have resulted in death, injury or harm to a child or which have posed or threatened to pose a serious and immediate threat of harm or injury to a child based upon the intentional or negligent failure to comply with licensing laws or regulations.

(b) Contents of the Order of Summary Suspension.

1. The licensee shall be provided written notice of the issuance of the order of summary suspension and shall be notified that the licensee has the opportunity for an informal hearing before an administrative law judge or before a hearing officer who is not an employee of the Department (except as provided in part (e)3.) within three (3) business days of the issuance of the order of summary suspension.

2. The Department shall set forth with specificity in its order the legal and factual

basis for its decision, stating therein the specific laws or regulations which were violated by the agency, and shall state with specificity in the order the reasons that the issuance of the order of summary suspension is necessary to adequately protect the health, safety or welfare of children in the care of the child care agency.

3. The order shall state the time, date and location of a show cause hearing to determine if the suspension is appropriate, shall state the issues involved as described in subparagraph (f) and shall notify the licensee of the right to be represented by counsel.

(c) The notice may be personally delivered by any authorized representative of the Department to any person in charge of or reasonably believed to be in charge or who may be supervising the agency at the time of delivery. If such person is not the licensee, the order shall also be sent to the licensee by certified mail, return receipt requested, but the effect of the order shall not be delayed by mail delivery. The order shall contain a certificate of service or shall have attached to it a certificate verifying its service by personal delivery, and, if required, by certified mail service.

(d) The order shall be effective upon entry by the Commissioner, or the Commissioner’s designee, at such time as directed by the order. Upon receipt of the order by any person to whom the order is delivered at the child care agency, the agency shall cease or limit its operations at such time and in such manner as the order directs.

(e) Hearing Official and Authority.

1. Hearings on summary suspension orders shall be heard by an administrative law judge from the Administrative Procedures Division of the Secretary of State’s Office, if the administrative law judge is available within the time frames for a summary suspension hearing.

2. If the Administrative Procedures Division of the Secretary of State’s Office informs the Department that an administrative law judge is unavailable, the Department may obtain an administrative law judge or hearing officer who is not an employee of the Department except as provided herein. The substitute administrative law judge or hearing officer may be obtained by the Department by contract with a private attorney or by contract or agreement with another state agency. If the Administrative Procedures Division of the Office of the Secretary of State informs the Department that the Division’s contested case docket prevents the scheduling of a hearing on the issuance of a summary suspension order within the initial timeframes set forth in this subparagraph and if the Department is unable to obtain a private or state agency administrative law judge or hearing officer to hear the show cause hearing on the summary suspension order within the timeframes set forth in this part, the Department may utilize a hearing officer from the Department’s Division of Appeals and Hearings.

3. The administrative law judge or hearing officer shall have authority, as otherwise permitted in this section and subject to the provisions of subparagraph (h), to enter orders binding on the Department resulting from show cause hearings involving summary suspension orders.

(f) Hearing Procedures.

1. The informal hearing described by this subdivision shall not be required to be held under the contested case provisions of T.C.A. §§ 4-5-301 et seq.

2. The hearing is intended to provide an informal, reasonable opportunity for the licensee to present to the hearing official the licensee's version of the circumstances leading to the suspension order and any measures taken to correct the violations leading to the suspension.

3. The only issues to be considered are whether the public health, safety or welfare imperatively required emergency action by the Department and what, if any, corrective measures have been taken by the child care agency following the violation of the licensing laws or regulations cited by the Department and prior to the issuance of the order of summary suspension, that would eliminate the danger to the health, safety or welfare of the children in the care of the agency.

(g) Hearing Order.

1. Upon conclusion of the hearing, the administrative law judge or hearing officer shall render a decision immediately regarding the status of the agency’s license and shall state the basis for the decision.

2. The administrative law judge or hearing officer may lift, modify, or continue the suspension based upon the evidence presented and the stipulations and agreements of the parties.

3. The hearing order containing findings of fact and conclusions of law to support the decision shall be reduced to writing within fifteen (15) days after the hearing and shall be sent to the parties and their counsel.

(h) Revocation, Denial of the License Following Suspension or Modification of the Order of Summary Suspension by the Department.

1. Subsequent to the hearing on the summary suspension, the Department may proceed with revocation or denial of the license or other action as authorized by this part, regardless of the decision concerning summary suspension of the license, or the Commissioner, upon satisfactory proof that the conditions warrant, may by further order, lift or reduce the restrictions contained in the order of summary suspension without further order by the administrative law judge or hearing officer, or, may, upon agreement of the licensee, further modify the order by imposing new, additional or different restrictions or conditions upon the licensee or the licensee’s operations. A summary suspension order entered by the Department may be lifted or modified by the Department following its entry by the Department as provided in this part, before, or after, a case is docketed with the Child Care Agency Board of Review, without further approval of the Board or a Board panel.

2. If the Department determines that revocation or denial of the license is warranted following suspension, those proceedings shall be promptly instituted and determined as authorized by the licensing law.

3. Unless extended by agreement of the licensee, the order of summary suspension shall be dissolved upon motion of the licensee unless the Department has issued a notice of denial or revocation of the license within thirty calendar (30) days of the summary suspension order’s entry.

History

• Authority: T.C.A. §§ 4-5-301, et seq.; 71-1-105(a)(5); 71-3-501, et seq.; and 71-3-509.
• Administrative History: Chapter 1240-04-05 has been assigned a new control number, removed and renumbered to chapter 0250-04-05 filed and effective March 25, 1999. New rule filed September 29, 2000; effective December 13, 2000. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-05-.05 RESTRICTED LICENSES FOR CHILD CARE AGENCIES

(1) Limitation of Authority (a) In determining whether to deny, revoke or summarily suspend a license, the Department may choose to deny, revoke or suspend only certain authority of the licensee to operate and may permit the licensee to continue operation, but may restrict or modify the licensee’s authority to provide certain services or perform certain functions, including, but not limited to: transportation or food service, enrollment of children at the agency, the agency’s hours of operation, the agency’s use of certain parts of the agency’s physical facilities or any other function of the child care agency which the Department determines should be restricted or modified to protect the health, safety or welfare of the children.

(b) The restrictions shall be contained in the notice of denial or revocation or in the order of summary suspension entered by the Department and shall state the basis for the restriction and the specific areas of operation which are to be limited.

(c) The restrictions shall remain on the license until the next license issuance anniversary date unless modified or removed pursuant to paragraph (4) below. If the Department determines that the restrictions on the license should continue, the child care agency may appeal to the Child Care Agency Board of Review.

(2) The actions by the Department authorized by this section may be appealed to the Child Care Agency Board of Review as otherwise provided by the licensing law for any denial or revocation, or as provided in this chapter for summary suspensions of licenses.

(3) Appeal and Status of Restricted License.

(a) If the licensee does not appeal the issuance of a restricted license or the summary suspension of authority to operate, it may petition the Department to request that the restrictions be removed or altered.

(b) If timely appeal is made, then, pending the hearing upon the restricted license, the child care agency may continue to operate pending the decision of the Child Care Agency Board of Review unless the license is summarily suspended as provided in Section .04(5).

(4) The Department may, at any time, modify or remove the restrictions on the license upon order of the Commissioner, or the Commissioner’s designee.

History

• Authority: T.C.A. §§ 71-1-105(a)(5); 71-3-501, et seq.; and 71-3-509(f).
• Administrative History: Chapter 1240-04-05 has been assigned a new control number, removed and renumbered to chapter 0250-04-05 filed and effective March 25, 1999. New rule filed September 29, 2000; effective December 13, 2000. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-05-.06 REAPPLICATION PERIODS

(1) When an application for a license has been denied, or a license has been revoked, on one (1) occasion, the child care agency may not reapply for a license for a period of one (1) year from the effective date of the denial or revocation order if not appealed, or, if appealed, from the effective date of the Child Care Agency Board of Review’s or reviewing court’s order.

(2) If an application for a license has been denied, or a license has been revoked, on two (2) occasions, the child care agency may not reapply for a license for a period of two (2) years from the effective date of the denial or revocation if not appealed or, if appealed, from the effective date of the Child Care Agency Board of Review’s or reviewing court’s order.

(3) If an application for a license has been denied, or a license has been revoked on three (3) occasions, the agency shall not receive another license for the care of children.

(4) No person who served as full or part owner or as director or as a member of the management of a child care agency shall receive a license to operate a child care agency if that person participated in such capacity in a child care agency which has been denied a license, or which had a license revoked, on three (3) occasions.

(5) Waivers (a) The time restrictions in paragraphs (1) and (2) may be waived by the Child Care Agency Board of Review in the hearing in which the denial or revocation is sustained, or, if requested by the former licensee in writing to the Commissioner, in a separate subsequent hearing before the Child Care Agency Board of Review or, in the discretion of the Commissioner, upon review by the Commissioner. No waiver may be granted for any permanent restriction imposed pursuant to paragraph (3).

(b) The agency must show to the Child Care Agency Board of Review’s or the Commissioner’s satisfaction, by a preponderance of the evidence, that the agency has corrected the deficiencies which led to the denial or revocation, and that the child care agency can demonstrate that it has the present and future ability, and is willing, to maintain compliance with licensing laws or regulations.

(c) The decision of the Child Care Agency Board of Review or the Commissioner shall be reduced to an order, which shall be a final order pursuant to Title 4, Chapter 5, Part 3 of the Tennessee Code Annotated, and may be appealed pursuant to T.C.A. § 4-5-322.

(6) For purposes of this section, unless otherwise specified in the order, the “effective date of the board’s or court’s order” shall mean the date the order is entered by the Chair of the Child Care Agency Board of Review or panel chair or vice-Chair of the Child Care Agency Board of Review.

History

• Authority: T.C.A. §§ 71-1-105(a)(5); 71-3-501, et seq.; and 71-3-509(g).
• Administrative History: Chapter 1240-04-05 has been assigned a new control number, removed and renumbered to chapter 0250-04-05 filed and effective March 25, 1999. New rule filed September 29, 2000; effective December 13, 2000. Amendments filed August 22, 2025; effective November 20, 2025.

Chapter 1240-04-06 Repealed

Tenn. Comp. R. & Regs. 1240-04-06-.01 REPEALED

History

• Authority: T.C.A. §§44-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.02 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed September 29, 2000; effective December 13, 2000. Amendment filed October 17, 2001; effective December 31, 2001. Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.03 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.04 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.05 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.06 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 18, 1999; effective January 31, 2000. Amendment filed September 29, 2000; effective December 13, 2000. Amendment filed August 28, 2001; effective November 11, 2001. Amendment filed November 21, 2002; effective February 4, 2003. Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.07 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Withdrawal of 1240-4-6-.07(4)(f) and (l)(i) filed on August 31, 1998. The new effective date for the above part is February 13, 2000. Amendment filed September 29, 2000; effective December 13, 2000. Stay of effective date filed December 8, 2000 by The House Government Operations for subparts 2, 7 and 8 of subparagraph (f) of paragraph (4). The new effective date for these subparts is February 13, 2001. Amendment filed August 28, 2001; effective November 11, 2001. Amendment filed October 17, 2001; effective December 31, 2001. Amendment filed September 29, 2003; effective December 13, 2003. Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.08 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.09 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.10 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 21, 2002; effective February 4, 2003. Amendment by Acts of 2003, Public Chapter 412, §§1(c) and 3 filed June 25, 2003; effective July 1, 2003. Amendment filed September 29, 2003; effective December 13, 2003. Amendment filed October 18, 2004; effective January 1, 2005. Amendment filed August 3, 2005; effective October 17, 2005. Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.11 REPEALED

History

• Authority: T.C.A. §§44-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-4-6-.10). Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.12 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-4-6-.11). Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.13 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-4-6-.12). Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.14 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed May 26, 1998; effective August 9, 1998. Stay of effective date filed July 17, 1998; new effective date August 31, 1998. Stay of effective date filed by the Government Operations Committee of the Tennessee General Assembly on August 28, 1998; new effective date October 31, 1998. Amendment filed November 21, 2002; effective February 4, 2003 (Formerly 1240-4-6-.13). Repeal filed June 20, 2006; effective September 3, 2006.

Tenn. Comp. R. & Regs. 1240-04-06-.15 REPEALED

History

• Authority: T.C.A. §§4-5-202; 71-1-105(12); and 71-3-502.
• Administrative History: Original rule filed November 21, 2002; effective February 4, 2003. Repeal filed June 20, 2006; effective September 3, 2006.

Chapter 1240-04-07 Quality Rating and Improvement System for Child Care Agencies

Tenn. Comp. R. & Regs. 1240-04-07-.01 PURPOSE AND SCOPE

(1) This chapter implements the provisions of T.C.A., § 71-3-502, by establishing a system for evaluating all child care agencies licensed by the Department of Human Services.

(2) This system will consist of four (4) required evaluations throughout the licensing year for each child care agency, a summary of which shall be posted at each child care agency.

(3) This system allows parents and caretakers of children to make more informed choices regarding the child care options available for their children and to encourage the improvement of child care for Tennessee's children.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; and 71-3-502(a)(2) and (j) .
• Administrative History: Original rule filed October 30, 2001; effective January 13, 2002. Repeal and new rule filed October 21, 2008; effective January 4, 2009. Amendments filed March 31, 2022; effective June 29, 2022.

Tenn. Comp. R. & Regs. 1240-04-07-.02 DEFINITIONS

(1) Bonus Payment. An amount paid through the Child Care Certificate Program that is above and beyond the basic subsidy rate and is based upon the score achieved by a child care agency.

(2) Certificate Payment. Payments made through Child Care Certificate Program to a participating agency, either at the basic subsidy rate or at the higher rate paid to an eligible child care agency based upon the agency's quality rating improvement system score.

(3) Child Care Agency. A place or facility, regardless of whether it is currently licensed, that is operated as a “family child care home”, a “group child care home”, a “child care center”, or a “drop-in child care center”, that provides child care for three (3) or more hours per day to five (5) or more children who are not related to the primary educator.

(4) Child Care Certificate Program. A Tennessee Department of Human Services program that provides financial assistance to eligible families to help cover the cost of child care.

(5) Child Care Environment. The organization of space, interactions of children with each other and with staff, the variety and type of activities offered by the child care agency, the schedule of activities for children, and opportunities provided for staff and parents relating to the areas of professional growth, parental involvement, intentional teaching, and social-emotional development.

(6) Child Care Resource & Referral (CCR&R). A statewide network of regionally located agencies that assist parents, child care professionals, and the community by offering information on child care and by providing technical assistance, consultation, resource materials, and training to child care agencies.

(7) Civil Penalty. A financial sanction imposed by the Tennessee Department of Human Services against a child care agency that has violated a licensing regulation.

(8) Compliance History. A record of an agency's history with respect to attaining and maintaining compliance with applicable licensing laws and regulations.

(9) Department. The Department of Human Services.

(10) Director. The on-site child care center staff member for a child care agency who has overall responsibility for the daily oversight of all staff, direct child care services, and overall operation of the center.

(11) Educator. An individual, whether paid or unpaid, including the Primary Educator, who is responsible for meeting the supervision, protection, and basic needs of the child, and who is used to meet the adult:child ratios required by these rules. For the purposes of these rules the term educator is equivalent to caregiver as defined by T.C.A. § 71-3-501.

(12) Early Care and Education. A system that includes pre-kindergarten, Head Start, and licensed center-based, group, and home child care programs, dedicated to the care, education, protection, supervision or guidance of children beginning at birth.

(13) License. A permit issued by the Department to a child care agency authorizing the agency (the licensee) to provide child care in accordance with the provisions of the license, the law, and the regulations of the Tennessee Department of Human Services.

(14) Primary Educator. The adult on site at a family or group child care home who is directly responsible for care, education and supervision of children. For the purpose of these rules, the term primary educator is equivalent to primary caregiver as referenced in T.C.A. § 71-3- 501.

(15) Quality Rating Improvement System. The system by which all childcare agencies will be evaluated. This system incorporates four (4) evaluations over the course of a year of all childcare agencies.

History

• Authority: T.C.A. § 71-3-502(a)(2) and (j).
• Administrative History: Original rule filed October 30, 2001; effective January 13, 2002. Repeal and new rule filed October 21, 2008; effective January 4, 2009. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-07-.03 QUALITY RATING AND IMPROVEMENT SYSTEM

(1) The license monitoring process shall include an evaluation of the child care agency for a quality rating improvement system scorecard in accordance with the provisions set forth in this chapter.

(2) A child care agency shall receive an annual quality rating improvement system score that sets forth the agency’s overall score based upon applicable criteria contained within each component area.

(3) The component areas, as determined by the Department, measure certain key indicators of performance set forth in T.C.A. § 71-3-502(j), as indicated below:

(a) Health and Safety; and (b) Teacher/Child Interactions.

(4) Monitoring Visits.

(a) For the purpose of generating an annual quality rating improvement system score, monitoring visits shall consist of four (4) quarterly visits each year, except for programs that are closed during the summer. These agencies will have three (3) quarterly visits and one (1) quarterly visit prior to or just after the three (3) month closure.

(b) Each visit will be conducted at a different time of the day to get a look at the entire program throughout the year.

(c) During each quarterly monitoring visit, twenty-five percent (25%) of the Health and Safety section categories and one hundred percent (100%) of Teacher/Child Interactions will be scored.

(d) An agency must complete four (4) monitoring visits in a federal fiscal year in order to receive a Quality Rating Improvement System (QRIS) score.

(5) In addition to critical health and safety items, during each quarterly monitoring visit, one of four (4) categories from the Health and Safety section will be scored with a total value of 60 points. The four (4) categories are listed below:

(a) Supervision Practices/Facilities/Equipment;

(b) Record Keeping;

(c) Healthy Weight and Disease Prevention; and (d) Organizational Structure.

(6) Assignment of Scores.

(a) The score for each component area of the Health and Safety section indicates the agency’s compliance with departmental licensing regulations.

(b) Each element indicator on the classroom observation tool is scored based on “required evidence.” Therefore, in order to achieve a score of “met” on an item, all of the required evidence must be either visually observed or documented during the teacher interview when the classroom observation tool is administered during each quarterly visit.

(c) The total combined score possible for the Teacher/Child Interactions and Health and Safety sections is 100.

(d) Upon completion of the quarterly visit, prior to departure, the Licensing Consultant (LC) will review the scoresheet with the agency director or primary educator and discuss areas of high performance and strategies for areas that may have been deficient. If time or schedule does not allow for the director and/or educator to meet on this day the LC will schedule a time either in person, video chat, or through a telephone conversation within five (5) business days to review.

(7) The agency’s official quality rating improvement system scorecard and license shall be posted together in a conspicuous area at the child care agency, as may be directed by the Department.

(8) Violations.

(a) Agencies found to be in violation of licensing requirements during a live monitoring visit will have points deducted from the item from where the violation was found.

(b) Agencies found to be in violation of critical health and safety items and/or teacher/child interactions items between monitoring visits will have points deducted from the item where the violation was found on the next monitoring visit.

(c) Each critical violation will result in a points deduction off the final visit score.

(d) At the conclusion of the annual quality rating period, if staff at the child care agency have not completed all training requirements, points will be deducted from the annual quality rating improvement system score before posting.

History

• Authority: T.C.A. § 71-3-502(a)(2) and (j).
• Administrative History: Original rule filed October 30, 2001; effective January 13, 2002. Repeal and new rule filed October 21, 2008; effective January 4, 2009. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-07-.04 CERTIFICATE BONUSES

(1) All licensed child care agencies are eligible to receive at least the base rate of reimbursement paid through the Child Care Certificate Program if they enter into the contract with the Department to participate in the Child Care Certificate Payment Program.

(2) A licensed child care agency is eligible to receive bonus payments through the Child Care Certificate Program as indicated below:

(a) Agencies attaining an annual Quality Rating Improvement System score of 80-89 shall receive the base rate plus a percentage of the base rate as a bonus payment at the discretion of the Department based upon budgetary considerations.

(b) Agencies attaining an annual Quality Rating Improvement System score of 90-100 shall receive the base rate plus a percentage of the base rate as a bonus payment at the discretion of the Department based upon budgetary considerations.

History

• Authority: T.C.A. § 71-3-502(a)(2) and (j).
• Administrative History: Original rule filed October 30, 2001; effective January 13, 2002. Repeal and new rule filed October 21, 2008; effective January 4, 2009. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022. Amendments filed August 22, 2025; effective November 20, 2025.

Tenn. Comp. R. & Regs. 1240-04-07-.05 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; and 71-3-502(a)(2) and (j).
• Administrative History: Original rule filed October 30, 2001; effective January 13, 2002. Amendment filed May 22, 2007; effective August 7, 2007. Repeal and new rule filed October 21, 2008; effective January 4, 2009. Amendments filed May 1, 2018; effective July 30, 2018. Repeal filed March 31, 2022; effective June 29, 2022.

Tenn. Comp. R. & Regs. 1240-04-07-.06 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; and 71-3-502(a)(2) and (j).
• Administrative History: New rule filed October 21, 2008; effective January 4, 2009. Amendments filed May 1, 2018; effective July 30, 2018. Repeal filed March 31, 2022; effective June 29, 2022.

Tenn. Comp. R. & Regs. 1240-04-07-.07 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; and 71-3-502(a)(2) and (j).
• Administrative History: New rule filed October 21, 2008; effective January 4, 2009. Amendments filed May 1, 2018; effective July 30, 2018. Repeal filed March 31, 2022; effective June 29, 2022.

Tenn. Comp. R. & Regs. 1240-04-07-.08 APPEAL PROCESS

(1) Upon receiving its annual scoring results, a child care agency may choose to appeal any part of its Quality Rating Improvement System (QRIS) score.

(2) This appeal will include a review of the agency’s average score over the course of the four (4) licensing visits.

(3) Intradepartmental Review.

The appeal process shall begin with the request for an Intradepartmental Review, to be conducted according to the policies and procedures established by the Department.

(a) The request for an Intradepartmental Review shall be in writing and shall include:

1. A statement that identifies the specific information and/or rating that is in dispute;

2. A statement that identifies the basis upon which the agency is alleging that an error has occurred;

3. Supporting documentation with the written request; and 4. If the information required by this subparagraph (a) is not provided by the child care agency, the appeal may be dismissed at the sole discretion of the Department.

(b) Issues considered during the Intradepartmental Review shall be limited to:

1. Whether, at the time of the evaluation, the agency was provided proper credit for compliance with the criteria required in each of the component areas; and/or 2. Whether the agency’s rating was otherwise correctly calculated.

(c) The written request for Intradepartmental Review must be received by the Department within twenty (20) business days following the date of mailing of the issuance of the official Quality Rating Improvement System scorecard and license to the child care agency.

(d) Intradepartmental Review is an informal process not subject to the contested case provisions of the Administrative Procedures Act, T.C.A. §§ 4-5-301 et seq. and shall precede, and must be completed before, any Administrative Hearing.

(e) In conducting the Intradepartmental Review, the Department may take any of the following actions as deemed appropriate in its discretion:

1. Request additional information from the child care agency and/or third parties;

2. Examine additional documentation from the child care agency and/or third parties; and/or 3. Conduct an informal hearing, not subject to the provisions of T.C.A. §§ 4-5-301 et seq., that may include statements from the child care agency and/or third parties.

(f) The Department shall complete the review and render a written decision to the child care agency within forty-five (45) business days of receipt by the Department of the written request for review.

(g) Upon receiving the written decision from the Intradepartmental Review, the agency may request an Administrative Hearing, as provided for in paragraph (4) below.

(h) Upon completion of the Intradepartmental Review, the agency shall receive the rating resulting from the review process, as well as the certificate payments that are commensurate with that rating.

(4) Administrative Hearing.

(a) A request for Administrative Hearing must be submitted to the Department by the agency within ten (10) business days after the mailing date of the Department’s written decision from the Intradepartmental Review.

(b) The issues addressed in the Administrative Hearing are limited to the issues raised during the Intradepartmental Review.

(c) The Administrative Hearing shall be conducted as a contested case proceeding by the Department’s Appeals and Hearings Division according to T.C.A. §§ 4-5-301 et seq.

(d) The hearing officer shall render a written decision within thirty (30) business days after the hearing and shall send a copy of such decision to the Department and to the child care agency.

(e) Bonus Payments.

1. If the agency requests an Administrative Hearing, the agency’s bonus payments shall be based upon the results of the most recently completed score.

2. If the Administrative Hearing results in an increase to the agency’s score which warrants an increase in the amount of the bonus payment, the Department will pay to the agency the difference between the two amounts that accrued during the Administrative Hearing process.

(5) Issuance of a New Quality Rating Improvement Score (a) If the results of any process established in paragraphs (3) and (4) above should require the issuance of a new Quality Rating Improvement System scorecard, such scorecard shall be issued to the child care agency within thirty (30) business days of issuance of the written decision.

(b) Immediately upon receipt of the new Quality Rating Improvement System score, the child care agency shall post the QRIS Score as directed by the Department.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-202; and 71-3-502(a)(2) and (j).
• Administrative History: New rule filed October 21, 2008; effective January 4, 2009. Amendments filed May 1, 2018; effective July 30, 2018. Amendments filed March 31, 2022; effective June 29, 2022.

Chapter 1240-04-08 Repealed

Tenn. Comp. R. & Regs. 1240-04-08 Repealed

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

Chapter 1240-04-12 Repealed

Tenn. Comp. R. & Regs. 1240-04-12-.01 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5) and (12); and 71-3-501, et seq.
• Administrative History: Original rule filed October 29, 1990; effective December 13, 1990. Repeal filed January 8, 2019; to have become effective April 8, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 7, 2019.

Tenn. Comp. R. & Regs. 1240-04-12-.05 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5) and (12); and 71-3-501, et seq.
• Administrative History: Original rule filed October 29, 1990; effective December 13, 1990. Repeal filed January 8, 2019; to have become effective April 8, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 7, 2019.

Tenn. Comp. R. & Regs. 1240-04-12-.02 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5) and (12); and 71-3-501, et seq.
• Administrative History: Original rule filed October 29, 1990; effective December 13, 1990. Repeal filed January 8, 2019; to have become effective April 8, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 7, 2019.

Tenn. Comp. R. & Regs. 1240-04-12-.03 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5) and (12); and 71-3-501, et seq.
• Administrative History: Original rule filed October 29, 1990; effective December 13, 1990. Repeal filed January 8, 2019; to have become effective April 8, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 7, 2019.

Tenn. Comp. R. & Regs. 1240-04-12-.04 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105(5) and (12); and 71-3-501, et seq.
• Administrative History: Original rule filed October 29, 1990; effective December 13, 1990. Repeal filed January 8, 2019; to have become effective April 8, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date June 7, 2019.

1240-05 Administrative Procedures Division

Chapter 1240-05-01 Introduction

Tenn. Comp. R. & Regs. 1240-05-01-.01 APPEALS

(1) General Rule.

(a) When an appellant is dissatisfied with any adverse administrative action taken by the Department of Human Services, including failure to act upon a request or application within required time frames, which is within the discretion and control of the Department of Human Services, unless otherwise directed or limited by law or

regulation, or unless waived, he/she has the right to timely appeal for a fair hearing conducted by an impartial Department official or by a hearing official with the Department of State, at the designation of the Commissioner of Human Services.

(Proceedings involving Families First and Supplemental Nutrition Assistance Program Intentional Program Violations are set forth under Department of Human Services State Rules at Chapters 1240-05-14 and 1240-05-15.)

(b) Vocational Rehabilitation Services Appeals.

1. Appeals of decisions of the Division of Rehabilitation Services affecting Vocational Rehabilitation Services appellants and the designation of a hearing official are specifically governed by State Rule 1240-05-01-.05.

2. The conduct of appeals for the Vocational Rehabilitation Program under this

Chapter and under the Administrative Procedures Act shall be subject to the procedural provisions contained in Rule 1240-05-01-.05 because of specific provisions of Federal law and regulations governing that program, and the provisions of this Chapter and the Administrative Procedures Act are applicable only to the extent that there is no conflict with the provisions of Chapter 1240-05- 01-.05, and any conflicting provisions of this Chapter and the Administrative Procedures Act shall be resolved by reference to Chapter 1240-05-01-.05.

(c) Summer Food Service Program pursuant to 42 U.S.C. § 1761 and 7 C.F.R. § 225.13.

1. Appeals of decisions of the Department of Human Services affecting the Summer Food Service Program and the designated hearing official are specifically governed by the Federal enabling statute and rules found at 42 U.S.C. § 1761 and 7 C.F.R. § 225.13.

2. The conduct of appeals for the Summer Food Service Program under this

Chapter and under the Administrative Procedures Act shall be subject to the specific provisions of Federal law and regulations governing that program, and the provisions of this Chapter and the Administrative Procedures Act are applicable only to the extent that there is no conflict with the provisions of 42 U.S.C. § 1761 and 7 C.F.R. § 225.13.

(d) Child and Adult Care Food Program pursuant to 42 U.S.C. § 1766 and 7 C.F.R. § 226.6.

1. Appeals of decisions of the Department of Human Services affecting the Child and Adult Care Food Program and the designated hearing official are specifically governed by the Federal enabling statute and rules found at 42 U.S.C. § 1766 and 7 C.F.R. § 226.6.

2. The conduct of appeals for the Child and Adult Care Food Program under this

Chapter and under the Administrative Procedures Act shall be subject to the specific provisions of Federal law and regulations governing that program, and the provisions of this Chapter and the Administrative Procedures Act are applicable only to the extent that there is no conflict with the provisions of 42 U.S.C. § 1766 and 7 C.F.R. § 226.6.

(e) Child Care Agency Licensing Appeals.

1. Child care agency appeals of adverse administrative actions by the Department pursuant to T.C.A. § 71-3-509 involving denials, revocations or restrictions of a child care agency’s license and civil penalties or safety plans involving child care agencies are heard only by the Child Care Agency Board of Review pursuant to T.C.A. §§ 71-3-509–510 and Chapters 1240-04-05 and 1240-05-13.

(2) When any party to an adverse administrative action for child support or related administrative enforcement of child support is dissatisfied with any administrative action taken by the Department of Human Services which is within the discretion and control of the Department of Human Services, that is listed in T.C.A. §§ 36-5-1001 and 36-5-1002, or which is otherwise required to have due process procedures for administrative actions affecting the party, he/she has the right to timely appeal for a fair hearing by an impartial Department official.

(3) Administrative actions taken by the Department of Human Services pursuant to judicial order or which are the subject of pending judicial proceedings shall not be subject to review by a fair hearing.

History

• Authority: T.C.A. §§ 4-5-101, 4-5-202, 4-5-301, 36-5-1001, 36-5-1002, 71-1-105(a)(12), and 71-1-111.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective April 19, 1983. Repeal and new rule filed September 30, 2004; effective December 14, 2004. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed November 7, 2022; effective February 5, 2023.

Tenn. Comp. R. & Regs. 1240-05-01-.02 AGENCY RULE-MAKING

(1) The rules of procedure and practice to determine eligibility for the programs of assistance and services provided by the Tennessee Department of Human Services are not valid or effective against any person or party, nor may they be invoked by the agency for any purpose, until all of the requirements for rulemaking as set forth by the Tennessee Uniform Administrative Procedures Act (as amended) have been met.

(2) “Rule” means each agency statement of general applicability that implements or prescribes law or policy or describes the procedures or practice requirements of any agency. “Rule” includes the amendment or repeal of a prior rule, but does not include:

(a) Statements concerning only the internal management of state government and not affecting private rights, privileges or procedures available to the public;

(b) Declaratory order issued pursuant to T.C.A. § 4-5-223;

(c) Intra-agency memoranda;

(d) General policy statements which are substantially repetitious of existing law.

History

• Authority: T.C.A. §§ 4-5-102(10) and 4-5-207.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Repeal and new rule filed September 30, 2004; effective December 14, 2004.

Tenn. Comp. R. & Regs. 1240-05-01-.05 shall govern the procedures for review of service decisions in the Vocational Rehabilitation Program. Any conflict between the Department of Human Services rules governing contested case proceedings and the Tennessee Uniform Administrative Procedures Act, as amended, shall be controlled by the Department of Human Services Rules at 1240-05-01-.05.

History

• Authority: T.C.A. §§ 4-5-105, 49-11-601 et seq., and 71-1-105; 29 U.S.C. §§ 701 et seq., 29 U.S.C. § 705, 29 U.S.C. §§ 720 et seq., and 29 U.S.C. § 722(c); and 34 C.F.R. § 361.5 and 34 C.F.R. § 361.57.
• Administrative History: Original rule filed September 30, 2004; effective December 14, 2004. Amendments filed November 7, 2022; effective February 5, 2023. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-01-.03 LEGAL BASE

(1) Basis for hearings.

(a) Fair hearings providing due process for the resolution of appeals of decisions of the Tennessee Department of Human Services affecting persons receiving services or assistance or child support services from the Department are required by Federal and/or State law, regulations and Goldberg v. Kelly, 397 U.S. 254, 90 S.Ct. 2011 (1970) for:

1. The Supplemental Nutrition Assistance Program (SNAP) at 7 U.S.C. §§ 2020 and 2025 and at 7 C.F.R. § 273.15;

2. Temporary Assistance to Needy Families (TANF/Families First) pursuant to Title IV-A of the Social Security Act [42 U.S.C. §§ 601 et seq.] and 45 C.F.R. § 205.10;

3. Services for the blind pursuant to the Randolph-Sheppard Act pursuant to 20 U.S.C. § 107b(6) and 34 C.F.R. §§ 395 et seq.;

4. Vocational rehabilitation services pursuant to the Rehabilitation Act of 1973, as amended, 29 U.S.C. §§ 701 et seq., 720 et seq., and 722 et seq. and 34 C.F.R. §§ 361 et seq.;

5. Child support services pursuant to Title IV-D of the Social Security Act at 42 U.S.C. §§ 651 et seq. and in Tennessee Code Annotated Title 36, Chapter 5,

Part 10;

6. Summer Food Service Program pursuant to 42 U.S.C. § 1761 and 7 C.F.R. § 225.13;

7. Child and Adult Care Food Program pursuant to 42 U.S.C. § 1766 and 7 C.F.R. § 226.6;

8. Child care agency report card assessments pursuant to Chapter 1240-04-07;

9. Child care agency license probations and suspensions pursuant to T.C.A. § 71-3- 509;

10. Criminal history exclusions for persons having access to children in child care agencies or having access to adults in adult day care centers pursuant to T.C.A. §§ 71-2-403(a) and 71-3-509(e) and (f);

11. Adult day care licensing actions pursuant to T.C.A. §§ 71-2-401 et seq.; and 12. Any other programs to which due process requirements may apply.

(b) Authority for Contested Case Hearings.

1. The Commissioner of Human Services has authority to conduct or cause to be conducted hearings for fact determinations that the Department is authorized or required to make. The Commissioner, and any officer or employee of the Department upon written authorization from the Commissioner, has the power to administer oaths and affirmations, take depositions, issue subpoenas, and require the production of any books and records that may be necessary.

Hearings involving the programs providing services and assistance from the Department of Human Services shall be conducted pursuant to the contested case provisions of the Administrative Procedures Act, Tennessee Code Annotated, Section 4-5-301 et seq., except as otherwise required by law or

regulation.

2. The Commissioner of Human Services is specifically authorized to designate a hearing official in the Department of Human Services pursuant to T.C.A. § 71-1- 111 or a hearing official of the Department of State Administrative Procedures Division, to conduct contested case proceedings.

(2) Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d, prohibits discrimination in the provision of assistance or services to applicants, recipients, or beneficiaries because of their race, color, or national origin.

(3) The Tennessee Uniform Administrative Procedures Act, as amended, T.C.A. §§ 4-5-101 et seq., and T.C.A. §§ 4-5-201 et seq. provides for the use of uniform procedures for agency rulemaking.

(4) The Tennessee Uniform Administrative Procedures Act, as amended, T.C.A. §§ 4-5-301 et seq., requires the use of uniform procedures for the conduct of hearings on appeals held by all state agencies of Tennessee.

History

• Authority: T.C.A. §§ 4-5-101, 4-5-201 et seq., 4-5-301, 36-5-701 et seq., 36-5-1001–1003, 71-1- 105(a)(12), 71-1-111, and 71-3-101 et seq.; 7 U.S.C. §§ 2014, 2015, 2020(e)(10), and 2025; 20 U.S.C. § 107b; 29 U.S.C. §§ 701 et seq., 720 et seq., and 722 et seq.; 42 U.S.C. §§ 601 et seq.; 42 U.S.C. §§ 651 et seq.; 42 U.S.C. § 1396; 42 U.S.C. § 1397; 42 U.S.C. §§ 1761 and 1766; 42 U.S.C. § 6851; 42 U.S.C. § 8624(b)(13); 42 U.S.C. § 9901; 34 C.F.R. §§ 361 et seq.; 34 C.F.R. §§ 395 et seq.; and 10 C.F.R. § 440.1.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Repeal and new rule filed September 30, 2004; effective December 14, 2004. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed November 7, 2022; effective February 5, 2023. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-01-.04 SCOPE

(1) Subject to any superseding Federal or State law, and specifically subject to the superseding provisions of 1240-05-01-.01(1)(b), (c), (d) and (e), these rules shall govern contested case proceedings before the Department of Human Services and will be relied upon by hearing officials in all contested cases utilizing hearing officials.

(2) Any procedural provision of these rules, which is not subject to a superseding Federal or State law, may be suspended where clearly warranted in the interest of justice.

(3) In any situation that arises that is not specifically addressed by these rules, reference may be made to the Tennessee Rules of Civil Procedure for guidance as to the proper procedure to follow, where appropriate and to whatever extent will best serve the interests of justice and the speedy and inexpensive determination of the matter at hand.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-219, 71-1-105(12), and 71-1-111; 29 U.S.C. §§ 701 et seq., 720 et seq., and 722 et seq.; 42 U.S.C. §§ 1761 and 1766; 34 C.F.R. §§ 361 et seq.; and 7 C.F.R. §§ 225.13 and 226.6.
• Administrative History: Original rule filed January 20, 1984; effective February 19, 1984. Amendment filed April 30, 1985; effective July 14, 1985. Repeal and new chapter filed September 30, 2004; effective December 14, 2004. Amendment filed February 26, 2007; effective May 12, 2007.

Chapter 1240-05-02 Definitions

Tenn. Comp. R. & Regs. 1240-05-02-.01 DEFINITIONS

(1) The following words and terms as used in the rules for the Appeals and Hearings Division shall have the meaning described below:

(a) Administrative Law Judge. An Administrative Law Judge is an impartial hearing official of the Department of Human Services’ Appeals and Hearings Division or the Administrative Procedures Division of the Office of the Secretary of State who is licensed to practice law and is designated by the Commissioner to conduct contested case proceedings pursuant to T.C.A. §§ 4-5-301 et seq., including as provided in Vocational Rehabilitation Services appeals under State Rule 1240-05-01-.05(9). The Administrative Law Judge shall have no direct involvement in the action under consideration prior to filing of the appeal.

(b) Administrative Procedures Division, Secretary of State’s Office. The Administrative Procedures Division of the Office of the Secretary of State, 312 Rosa L. Parks Avenue, 8th Floor, William R. Snodgrass Tower, Nashville, Tennessee 37243; Telephone (615) 741-7008 which provides Administrative Law Judges to adjudicate contested case hearings involving State agencies.

(c) Adverse Administrative Action. Administrative determinations, procedures, or omissions of the Department of Human Services affecting an appellant or person who is an applicant for or recipient of assistance or services in a case involving services provided by the Department of Human Services concerning:

1. The denial of an application for assistance or services;

2. Cost sharing disputes for assistance or services;

3. The limitation, reduction, suspension, or termination of eligibility for assistance or services;

4. Failure to act upon a request or application within required time frames; or 5. The provision of child support services.

(d) Agency. The Tennessee Department of Human Services.

(e) Appeal. The process by which an appellant requests review of an adverse administrative action in accordance with procedures established in these rules.

(f) Appeals and Hearings Division, Department of Human Services. The Appeals and Hearings Division, Department of Human Services, is responsible for processing appeals involving the assistance or service programs of the Department, or any other programs that have been assigned or delegated to the Department by law, regulation, or contract.

(g) Appellant. An appellant is an individual or entity, including a sponsor, institution, or day care qualified as a responsible party engaged in the Department’s food programs, who is dissatisfied with an adverse administrative action of the Department in regard to the furnishing or denial of assistance or services or eligibility actions or the provision of child support services, and who, as a result, is requesting a fair hearing before the Appeals and Hearings Division.

(h) Applicant for Assistance. An applicant for assistance shall be the person who submits an application for assistance from an Assistance Program of the Department of Human Services or the person in whose behalf an application is submitted if the person submitting the application is applying for assistance for someone else.

(i) Applicant for Services. An applicant for services shall be the person on whose behalf a service is sought from a Service Program or the Child Support Program of the Department of Human Services, even though some other person may request the service and/or may incidentally benefit from the service.

(j) Assistance Programs. The assistance programs currently encompass Families First, Supplemental Nutrition Assistance Services, and any programs in the Adult and Community Services Division that determine eligibility for direct cash or third-party vendor payments to applicants or recipients. Additional programs may be added at a later time or programs may be terminated due to legal, policy or financial considerations.

(k) Burden of Proof.

1. The “burden of proof” refers to the duty of a party to present evidence on and to show, by a preponderance of the evidence, that an allegation is true or that an issue should be resolved in favor of that party.

2. A “preponderance of the evidence” means the greater weight of the evidence or that, according to the evidence, the conclusion sought by the party with the burden of proof is the more probable conclusion.

3. The burden of proof is generally assigned to the party who seeks to change the administrative action taken or protest the lack of timely administrative action with regard to any issue.

4. Generally, the party with the burden of proof presents his or her proof first at the hearing.

5. The hearing official makes all decisions regarding which party has the burden of proof on any issue, and determines the order of proceedings, taking into account the interests of fairness, simplicity, and the speedy determination of the matter at hand.

(l) Commissioner. The Commissioner of the Tennessee Department of Human Services.

(m) Commissioner’s Designee.

1. A person who is licensed to practice law and is designated by the Commissioner to review appeals of initial orders and to enter final orders pursuant to T.C.A. § 4- 5-315, or to review petitions for a stay or reconsideration of final orders. A Commissioner’s Designee may also be a hearing official who is an impartial official of the Department of Human Services or the Secretary of State Administrative Procedures Division who is designated by the Commissioner to conduct contested case administrative hearing proceedings.

2. The person so designated shall have no direct involvement in the adverse administrative action under consideration prior to the filing of the appeal.

(n) Contested Case. Contested case means an administrative hearing proceeding, including a declaratory proceeding conducted pursuant to T.C.A. § 4-5-223, in which the legal rights, duties or privileges of a party are required by any statute or constitutional provision to be determined by the Department after an opportunity for hearing. The Department may commence a contested case at any time with respect to a matter within its jurisdiction.

(o) Department. The Tennessee Department of Human Services.

(p) DHS Administrative Judge. A DHS Administrative Judge is an impartial official of the Department of Human Services or the Department of State who is required to be licensed to practice law and is designated by the Commissioner or his/her designated representative to conduct contested case proceedings pursuant to T.C.A. §§ 4-5-301 et seq., except where otherwise provided in Vocational Rehabilitation Services appeals under State Rule 1240-05-01-.05(9). The staff member designated as DHS Administrative Judge shall have no direct involvement in the action under consideration prior to filing of the appeal.

(q) Fair Hearing.

1. A fair hearing is a contested case proceeding before an impartial hearing official designated by the Commissioner of the Department of Human Services (including as otherwise provided in Vocational Rehabilitation Services appeals under State Rule 1240-05-01-.05(9) or other State or Federal law or regulation) in which an appellant or his/her representative may present his/her case, with or without witnesses, to determine whether action or inaction by the county, area, regional, district, child support office or state office is erroneous and should be corrected.

2. A fair hearing may combine appeals of an appellant involving any programs for which the Department and the Appeals and Hearings Division may have responsibility. If necessary for the proper resolution of an appeal involving multiple programs, separate fair hearings for an appellant involving multiple program actions for a single appellant or household may be held in the discretion of the Commissioner, the Assistant Commissioner for Appeals and Hearings or their designees, or, on motion of the parties or in his/her discretion, the hearing official.

(r) Filing. Unless otherwise provided by law or by these rules, “filing” means actual receipt by the entity designated to receive the required materials.

(s) Final Order.

1. The final decision of the Appeals and Hearings Division, or the Administrative Procedures Division where applicable, concerning contested case administrative hearing proceedings.

2. An Order on the merits of the issue is Final without further notice. If a timely Petition for Appeal pursuant to T.C.A. § 4-5-315, Petition for Reconsideration pursuant to T.C.A. § 4-5-317, or Petition for a Stay of Effectiveness pursuant to T.C.A. § 4-5-316 is filed with the Appeals and Hearings Division or the Administrative Procedures Division, where applicable, enforcement of the order is stayed pending the outcome of the Petition.

3. If the Petition for Reconsideration of the Initial Order is either denied by order of the hearing official or deemed denied by law, and a petition of appeal of the Initial Order is not timely filed, the Initial Order shall become enforceable fifteen (15) days after the entry date of the order denying the Petition for Reconsideration or the date the Petition for Reconsideration was deemed denied.

4. A statement of the procedures and time limits for seeking reconsideration or judicial review shall be included in the Order.

(t) Findings of Fact. The factual findings following the administrative hearing, enumerated in the Order, including a concise and explicit statement of the underlying facts of record to support the findings.

(u) Hearing Official. An Administrative Law Judge or DHS Administrative Judge.

(v) Initial Order.

1. The decision of the hearing official following a contested case administrative hearing proceeding.

2. The Initial Order shall contain the decision, findings of fact, conclusions of law, the policy reasons for the decision and the remedy prescribed.

3. It shall include a statement of any circumstances under which the Initial Order may, without further notice, become Final.

4. An Order on the merits of the issue is Final without further notice. If a timely Petition for Appeal pursuant to T.C.A. § 4-5-315, Petition for Reconsideration pursuant to T.C.A. § 4-5-317, or Petition for a Stay of Effectiveness pursuant to T.C.A. § 4-5-316 is filed with the Appeals and Hearings Division or the Administrative Procedures Division, where applicable enforcement of the order is stayed pending the outcome of the Petition.

5. If the Petition for Reconsideration of the Initial Order is either denied by order of the hearing official or deemed denied by law, and a petition of appeal of the Initial Order is not timely filed, the Initial Order shall become enforceable fifteen (15) days after the entry date of the order denying the Petition for Reconsideration or the date the Petition for Reconsideration was deemed denied.

6. A statement of the procedures and time limits for seeking reconsideration or other administrative relief and the time limits for seeking judicial review shall be included with the Initial Order.

7. If an Initial Order is timely appealed, the Commissioner’s designated representative shall process the appeal pursuant to Chapter 1240-05-09 of these rules.

(w) License. A license includes the whole or part of any permit, certificate, approval, registration, charter or similar form of permission required by law to engage in a business trade or profession.

(x) Licensing. Licensing includes the processes of the Department respecting the grant, denial, renewal, revocation, suspension, withdrawal or amendment of a license.

(y) Local Office.

1. A local office is the Departmental office from which the case that is being heard by the Appeals and Hearings Division originated based upon its determination of eligibility for assistance or services. It refers primarily to the county office, except Services for the Blind or Vocational Rehabilitation Services, which would be the area office.

2. In the case of Title IV-D child support appeals, the local office refers to the local Title IV-D child support office in each judicial district operated by the Department or its contractors.

(z) Notice of Hearing. The document containing a statement of the time, place, nature of the hearing, and the right to be represented by counsel; a statement of the legal

authority and jurisdiction under which the hearing is to be held, referring to the particular statutes and rules involved; and, a short and plain statement of the matters asserted, in compliance with T.C.A. § 4-5-307(b).

(aa) Party. A party means each person, entity or agency named or admitted as a participant, or properly seeking and entitled as of right to be admitted as a participant, in a contested case administrative hearing.

(bb) Person. A person means any individual, partnership, corporation, association, governmental subdivision or public or private organization of any character, including another agency.

(cc) Petition for Appeal. A pleading filed pursuant to T.C.A. § 4-5-315 with the Appeals and Hearings Division, or the Administrative Procedures Division where applicable, after entry of the Order stating the specific grounds upon which relief from the Order is requested. If an Order is subject to both a timely filed Petition for Appeal and Petition for Reconsideration, as provided in T.C.A. § 4-5-315(b), the Petition for Reconsideration is disposed of first and a new time period to file a Petition for Appeal commences as provided in State Rule 1240-05-09-.01(5).

(dd) Petition for Judicial Review. A pleading filed with the Chancery Court appealing the contested case administrative hearing decision as provided in T.C.A. § 4-5-322 and State Rule 1240-05-10-.02.

(ee) Petition for Reconsideration. A pleading filed pursuant to T.C.A. § 4-5-317 with the Appeals and Hearings Division, or the Administrative Procedures Division where applicable, after entry of the Order stating the specific grounds upon which relief from the Order is requested from the hearing official who entered the Order.

(ff) Petition for Stay of Effectiveness of an Order. A document seeking to have the agency suspend the effectiveness of an Order pending further appeal. A party may submit under T.C.A. § 4-5-316 to the Appeals and Hearings Division, or to the Administrative Procedures Division if a hearing official in the Department of State conducted the contested case proceeding, a Petition for Stay of Effectiveness of an Order within seven (7) days after its entry, unless otherwise provided by statute or stated in the Order. The Appeals and Hearings Division, or the Administrative Procedures Division as applicable, may take action on the Petition for Stay, either before or after the effective date of the Order.

(gg) Petitioner. The petitioner in a contested case proceeding is the party who has initiated the proceedings.

(hh) Pleadings. Pleadings are written statements of the facts and law which constitute a party’s position or point of view in a contested case and which, when taken together with the other party’s pleadings, will define the issues to be decided in the case.

Pleadings may be in legal form—as, for example, a “Notice of Hearing and Charges,”

“Petition for Hearing” or “Answer.” Where not practicable to put them in legal form, letters or other papers may serve as pleadings in a contested case, if necessary to define what the parties’ positions are and what the issues in the case will be.

(ii) Recipient of Assistance. The recipient of assistance shall be the person or household actually receiving assistance from an Assistance Program of the Department of Human Services.

(jj) Recipient of Services. The recipient of services is the person for whose benefit services are provided by a service program of the Department of Human Services. The recipient of services for children shall be the child for whose benefit the service is being provided. The recipient of adult protective services shall be the elderly or disabled adult for whose benefit the service is provided. The recipient of rehabilitation services or services to the blind shall be the disabled individual to whom such services are directed.

(kk) Respondent. The Respondent in a contested case proceeding is the party who is responding to the action brought by the “petitioner.”

(ll) Rule. A rule means each agency statement of general applicability that implements or prescribes law or policy or describes the procedures or practice requirements for any agency. The term includes the amendment or repeal of a prior rule, but does not include:

1. Statements concerning only the internal management of an agency and not affecting private rights, privileges or procedures available to the public; or 2. Declaratory rulings issued pursuant to T.C.A. § 4-5-223; or 3. Intra-agency memoranda; or 4. General policy statements which are substantially repetitious of existing law.

(mm) Services Programs. The service programs are those in the Division of Adult and Community Services, the Rehabilitation Services Divisions and Services for the Blind or Child Support Division that provide social, protective services, rehabilitation services or child support services to individuals.

(nn) Tennessee Rules of Civil Procedure (TRCP). The rules governing civil actions in courts of record in Tennessee or where applicable as otherwise required by statute.

(oo) Uniform Administrative Procedures Act (UAPA or APA). The Tennessee Uniform Administrative Procedures Act, as amended, codified at T.C.A. §§ 4-5-301, et seq.

History

• Authority: T.C.A. §§ 4-5-101, 4-5-201 et seq., 4-5-301 et seq., 36-5-1001 and 1002, 71-1-105(a)(12), 71- 1-111, 71-1-132, and 71-3-101 et seq.; 7 U.S.C. §§ 2014 and 2015; 20 U.S.C. § 107b; 29 U.S.C. §§ 701 et seq., 720 et seq., and 722 et seq.; 42 U.S.C. §§ 601 et seq.; 42 U.S.C. §§ 651 et seq.; 42 U.S.C. §§ 1396; 7 C.F.R. § 273.15(k)(1); 34 C.F.R. §§ 361 et seq.; 34 C.F.R. §§ 395 et seq.; 42 C.F.R. §§ 431.210(d)(2) and 431.220(b); and 45 C.F.R. § 205.10(a)(4)(iii) and (5).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed December 17, 1982; effective April 19, 1983. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed November 7, 2022; effective February 5, 2023. Amendments filed June 13, 2025; effective September 11, 2025.

Chapter 1240-05-03 Fair Hearing Requests

Tenn. Comp. R. & Regs. 1240-05-03-.01 RIGHT TO APPEAL

(1) Commencement of Action. A contested case proceeding may be commenced by original agency action, by appeal from an agency action, by request for hearing by an affected person, or by any other lawful procedure.

(2) An appellant or his/her authorized representative on his/her behalf, has a right to appeal any adverse administrative action taken by the Department in regard to the assistance or services for which he/she has applied, is receiving, or which has/have been terminated or any other adverse administrative action otherwise affecting a person’s status under a program administered by the Department of Human Services. Grievances shall be addressed to the Department’s interpretations of the law and the validity and applicability of the policies promulgated under the law as they apply to the appellant’s individual factual situation; provided that actions taken pursuant to judicial order or which are the subject of pending judicial proceedings shall not be subject to review by a fair hearing.

(3) When any party to an administrative action for child support or related administrative enforcement is dissatisfied with any action taken by the Department of Human Services which is within the discretion and control of the Department of Human Services, and that is listed in T.C.A. §§ 36-5-1001 and 36-5-1002 or which may otherwise be required by law, he/she has the right to timely appeal for a fair hearing by an impartial Department official.

(4) Methods of Filing an Appeal.

(a) Except as provided in subparagraph (b) below, the appellant or his/her representative may request a hearing by any clear expression, oral or written.

(b) Exceptions requiring appeals to be submitted in writing:

1. Appeals of the denial, revocation, restriction or probation involving an adult day care center license or the placement of an adult day care center on probation pursuant to T.C.A. §§ 71-2-401 et seq.;

2. Child support-related appeals as required by Title 36, Chapter 5 of the Tennessee Code Annotated;

3. Child care agency appeals of license denials, restrictions, revocations, civil penalties and safety plans pursuant to T.C.A. § 71-3-509 which shall be made in writing to the Director of Child Care Licensing and are heard only by the Child Care Agency Board of Review;

4. Child care agency appeals of report card assessments pursuant to Chapter 1240-04-07;

5. Child care agency license probations and suspensions pursuant to T.C.A. § 71-3- 509;

6. Summer Food Service Program and Child and Adult Care Food Program appeals as provided in State Rule 1240-05-08-.01(8) and (9); and 7. Tennessee Blind Enterprises appeals as provided in State Rule 1240-05-03- .03(1)(j)2.

(5) The Appeals and Hearings Division may process an informal resolution of an appeal as provided in State Rule 1240-05-03-.04(4) and (5).

(6) Supplemental Nutrition Assistance Program (SNAP) Cases.

(a) The Department of Human Services shall offer agency conferences to SNAP households that wish to contest a denial of expedited service. The conference shall be scheduled within two (2) working days, unless the household requests that it be scheduled later. The agency conferences shall be attended by an eligibility supervisor and/or the agency director, and by the household and/or its representative.

(b) An agency conference may lead to an informal resolution of the dispute. However, a fair hearing must still be held unless the household makes a written withdrawal of its request for a hearing, unless the withdrawal is made as provided in 1240-05-03-.04(4).

History

• Authority: T.C.A. §§ 4-5-102, 4-5-202, 36-5-1001, 36-5-1002, 71-1-105(a)(12), 71-1-111, 71-1-132, 71- 3-502, and 71-3-509; Chapter 1240-04-07; 7 C.F.R. § 273.15; 45 C.F.R. § 205.10; and 42 C.F.R. §§ 431.220 and 431.221.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-03-.02 INFORMATION REGARDING RIGHT TO APPEAL

(1) Every applicant for or recipient of services shall be informed at the time of application and at the time of any action affecting his/her claim to assistance or services:

(a) Of his/her right to a fair hearing;

(b) Of the method by which he/she may obtain a hearing; and (c) Of his/her right to be represented by an authorized representative, such as legal counsel, relative, or friend. Information and referral services shall be provided to help claimants make use of any legal services available in the community that can provide legal representation at the hearing.

(2) Advance Written Notification.

(a) Notice of intended action to discontinue, terminate, suspend, or reduce assistance or services shall be given in writing to recipients in the Families First Program (including Refugee Cash Assistance) and the SNAP Program a minimum of ten (10) days in advance before the date of intended action.

(b) Advance written notification of intended action in Vocational Rehabilitation Services cases is governed by State Rule 1240-05-01-.05(2)–(4).

(c) Notice of Appeal Rights in Child Support Administrative Actions.

Unless advance notice is not permitted by federal or state law, the obligor, obligee, or other caretaker of a child in a child support case that is subject to administrative action and that is being enforced by the Department under Title IV-D of the Social Security Act shall be given at least ten (10) days advance notice. The notice shall contain information regarding the time frames for appeal and how to file an appeal as set forth by statute and Department child support regulations.

(d) Notice of administrative actions affecting licenses of adult day care centers shall be provided pursuant to T.C.A. §§ 71-2-406 and 71-2-408 and Chapter 1240-07-10.

(e) Notice of administrative actions affecting licenses of child care agencies shall be provided pursuant to T.C.A. § 71-3-509 and Chapter 1240-04-05 and Chapter 1240-05- 13.

(f) The notices of action for the Child and Adult Care Food Program are governed by the Federal regulation at 7 C.F.R. Part 226.6.

(g) The notices of action for the Summer Food Service Program are governed by the Federal regulation at 7 C.F.R. Part 225.

(h) For the Adult and Community Service Programs listed in these rules at 1240-05-03- .03(1)(a) part 1., notice of action or notice of intended action shall be provided a minimum of ten (10) days in advance, unless required to be otherwise under Federal or State statute or regulation.

(i) Notice of intended action in the Tennessee Business Enterprises Program shall be provided a minimum of ten (10) days in advance, unless required to be otherwise under Federal or State statute or regulation.

(j) Notice of intended action to discontinue, terminate, suspend, or reduce assistance or services or to take administrative actions involving persons subject to the Department’s jurisdiction in any other programs, shall be given a minimum of ten (10) days in advance before the date of intended action, unless the notice is required to be otherwise under Federal or State statute or regulation or court order.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-301, 36-5-701 et seq., 36-5-1001–1003, 71-1-105(a)(12), 71-2-401 et seq., 71-3-104, 71-3-509, 71-4-508, 71-4-610, 71-5-106, 71-5-110, and 71-5-305; 7 U.S.C. §§ 2014, 2015, 2020(e)(10); 20 U.S.C. § 107b(6) and 107d-1; 29 U.S.C. § 722(a)(5) and (c)(2); 42 U.S.C. §§ 601 et seq.; 42 U.S.C. §§ 651 et seq.; 42 U.S.C. § 1397; 42 U.S.C. §§ 1396 et seq.; 42 U.S.C. §§ 1761 and 1766; 42 U.S.C. § 6851; 42 U.S.C. § 8624; 42 U.S.C. § 9901; 7 C.F.R. § 225.13(b)(1), 226.6(k)(5)(i), and 226.6(l)(2); 7 C.F.R. § 273.13(a)(1); 34 C.F.R. § 361.57(b)(2)(iv) and (b)(4); 34 C.F.R. § 395 et seq.; 42 C.F.R. § 431.211; 45 C.F.R. § 205.10(a)(4)(i)(A); 45 C.F.R. § 400.54; and 10 C.F.R. § 440.1.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26. 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-03-.03 TIME LIMIT FOR FILING AN APPEAL

(1) Appeals or requests for a hearing will be accepted only if they are filed within the required time limit.

(a) Adult and Community Services Program Appeals.

1. Except as otherwise specified by these rules or laws or regulations specifically applicable to a program, appellants or individuals acting in their behalf involving Adult and Community Services programs, in the:

(i) Emergency Shelter Grant Program;

(ii) Refugee Services Program;

(iii) Adult Day Care Services Program; or (iv) Homemaker Program, will be allowed thirty (30) days commencing from the date of the notice of action or notice of intended action to appeal any action of the Department.

(b) Adult Day Care Licensing Appeals.

1. The appeal of denials, revocations, or restrictions of the license of an adult day care center licensed by the Department pursuant to T.C.A. §§ 71-2-401 et seq. shall be made by petition in writing to the commissioner within ten (10) days of the date of the mailing of notice by the Department to the applicant/licensee.

2. The appeal of the decision to continue probation for an adult day care center shall be filed in writing within five (5) business days of the receipt of the notice of the Department’s decision regarding the review of the probationary status pursuant to T.C.A. § 71-2-409(2) and (3).

(c) Child and Adult Care Food Program Appeals. 7 C.F.R. § 226.6 and State Rule 1240- 05-08-.01(9) govern appeals in the Child and Adult Care Food Program.

1. Applicants and participating institutions and responsible principals and responsible individuals and day care homes will be allowed fifteen (15) days from the date on which notice of action, sent by certified mail, return receipt requested (or the equivalent private delivery service), by facsimile, or by email, is received to appeal an action of the Department of Human Services as allowed under 7 C.F.R. § 226.6(k)(2) and 7 C.F.R. § 226.6(l)(2) and (3). If the notice is undeliverable, it is considered to be received by the institution, responsible principal or responsible individual, or day care home five days after being sent to the addressee’s last known mailing address, facsimile number, or email address.

2. The receipt of the appeal requesting an administrative review pursuant to this subparagraph (c) must be acknowledged by the Department within ten (10) days of receiving the request.

3. Where inconsistencies are present between the requirements of the Tennessee Uniform Administrative Procedures Act, as amended, and the Federal regulations governing the Child and Adult Care Food Program, appeals of the Child and Adult Care Food Program will be processed in accordance with 7 C.F.R. § 226.6(k) and 226.6(l) and State Rule 1240-05-08-.01(9) and not the Uniform Administrative Procedures Act.

(d) An appeal of an agency’s dispute of the result of the Intradepartmental Review of a child care agency program assessment under Chapter 1240-04-07, shall be submitted to the Commissioner in writing within (10) business days of receiving the Department’s written decision regarding the Review.

(e) Criminal history exclusions for persons having access to children in child care agencies or having access to adults in adult day care centers pursuant to T.C.A. §§ 71-2-403(a) and 71-3-509(e) and (f) shall be filed within ten (10) days of the mailing date of the notice of exclusion or denial of a waiver of the exclusion.

(f) Child Support Appeals.

Timely filed child support appeals shall be in writing and shall be filed within:

1. Twenty (20) days from the date of service of the notice in license revocation proceedings, such as professional, business, fishing, hunting licenses, etc. under T.C.A. §§ 36-5-701 et seq.; and 2. Fifteen (15) days of the date of the notice of administrative action for all other appeals as governed under T.C.A. §§ 36-5-1001 et seq. and for all other administrative actions where otherwise not established by statute.

(g) Families First Program appellants or individuals acting in their behalf will be allowed ninety (90) days commencing from the date of the advance written notice of intended action to appeal any action of the Department.

(h) SNAP Appeals.

1. A SNAP household or its representative shall be allowed to request a fair hearing on any adverse action by the Department of Human Services within ninety (90) days of the date of such action as established by the date of the notice to the household of such action. In the event an appellant successfully appeals an adverse action, such appellant will only be entitled to receive retroactive benefits from the date that is twelve (12) months prior to the date upon which the beneficiary requests such retroactive benefits.

For example, a beneficiary begins receiving benefits from the SNAP Program on January 1, 2000. On January 1, 2003, the beneficiary determines that the amount of benefits that she has been receiving is incorrect; she actually should have been receiving a greater amount of SNAP benefits since she first entered the program on January 1, 2000. On January 2, 2003, the beneficiary contacts her local DHS office to request that her benefits be increased according to her calculations and that she receive retroactively the benefits that she believes she should have been entitled to since January 1, 2000. DHS sends the beneficiary a written notice on January 30, 2003, which states that DHS is denying her request for increased benefits and retroactive benefits. The beneficiary timely appeals this determination on February 15, 2003, and is informed that she won the appeal on March 31st, 2003. The beneficiary would be entitled to have her benefits increased going forward, and she would be entitled to retroactive benefits from January 2, 2002, to present. She would not be entitled to retroactive benefits from January 1, 2000 through January 1, 2002, because this period is more than twelve months prior to the date when the beneficiary first requested the retroactive benefits, January 2, 2003.

(i) Refugee Assistance Program appellants or individuals acting in their behalf will be allowed ninety (90) days commencing from the date of the advance written notice of intended action to appeal any action of the Department.

(j) Rehabilitation Services Appeals.

1. Vocational Rehabilitation Services Appeals.

(i) Vocational Rehabilitation Services appellants or individuals acting in their behalf, as set forth in Tennessee State Rule 1240-05-01-.05, will be allowed thirty (30) calendar days after the date of notification of the Informal Administrative Review finding to appeal any action of the Department with regard to the furnishing of, denial of, or failure to deliver Vocational Rehabilitation Services, subject to good cause exceptions as determined by the Appeals and Hearings Division.

(ii) If the appellant or appellant’s representative elects not to utilize the Informal Administrative Review, the appeal, as specified in State Rule 1240-05-01-.05(9), must be filed within thirty (30) calendar days of the date of the notice by the Division of Rehabilitation Services to the appellant of the action with regard to the furnishing of, denial of, or failure to deliver Vocational Rehabilitation Services, subject to good cause exceptions as determined by the Appeals and Hearings Division.

2. Tennessee Blind Enterprises Appeals.

(i) A manager in the Tennessee Blind Enterprises program who is dissatisfied with any action arising from the operation or administration of the vending facility program may ask for a review of the action as permitted by State

Rule 1240-06-11-.01 by filing a written request within thirty (30) days of the Department’s action with the Director of the Services for the Blind Division, Tennessee Department of Human Services; or the manager may file an appeal by a written request by the manager, or by a representative selected by the manager, within thirty (30) days of the agency’s action from which the grievance arises or within fifteen (15) days following the manager’s receipt of an administrative review decision issued by the Director of Services for the Blind Division pursuant to Rule 1240-06-11-.01.

Receipt is deemed to be five (5) days from the date of mailing for purposes of this subpart.

(ii) Appeals and arbitration proceedings related to the Randolph-Sheppard Act or the Tennessee Business Enterprises Program will be accepted only if they are filed within the time limits specified in this Chapter and State Rules 1240-06-11-.02 and .03, and must be appealed as set forth in those rules; provided, however, time frames for filing petitions for appeals, reconsideration of initial orders and final orders and stays of effectiveness of those orders in contested case proceedings conducted under the Administrative Procedures Act shall be governed by this Chapter.

(k) Summer Food Service Program Appeals. 7 C.F.R. § 225.13 and State Rule 1240-05- 08-.01(8) govern appeals in the Summer Food Service Program.

1. Applicants and participants will be allowed ten (10) days from the date on which the notice of action, sent by certified mail return receipt requested (or the equivalent private delivery service), by facsimile, or by email, is received to appeal an action of the Department of Human Services as allowed under 7 C.F.R. § 225.13(b). If the notice is undeliverable, it is considered to be received five days after being sent to the addressee’s last known mailing address, facsimile number, or email address.

2. Where inconsistencies are present between the requirements of the Tennessee Uniform Administrative Procedures Act, as amended, and the Federal regulation, appeals of the Summer Food Service Program will be processed in accordance with 7 C.F.R. § 225.13 and State Rule 1240-05-08-.01(8), and not the Uniform Administrative Procedures Act.

(2) Continuation of Assistance or Services Pending Appeal.

(a) Continuation of Eligibility for Assistance or Services in SNAP and Families First Program Appeals. Assistance for a recipient of Families First or SNAP shall continue pending the appeal, until such determination is made under 1240-05-03-.03(2)(c) below, if the appeal is received within ten (10) days from the date of the advance written notice of intended action, unless the appellant specifically requests assistance or services not be continued while the appeal is pending.

(b) If the recipient can show good cause existed for the failure to appeal within the time frames in subparagraph (a) for the SNAP and Families First Programs, assistance or services may be reinstated or continued pending appeal.

(c) Once continued, the assistance or services designated in subparagraph (a) for the SNAP and Families First Programs will, nevertheless, cease as of the earliest of the following events:

1. A change affecting the recipient’s assistance occurs while the hearing decision is pending, and the recipient fails to request a hearing after notice of the change; or 2. In SNAP cases, the certification period ends; or 3. A final decision is made by the agency that the appellant is not entitled to the assistance or services.

(d) Continuation of services in Vocational Rehabilitation Services appeals is governed under State Rule 1240-05-01-.05(5) and State Rule 1240-05-01-.05(10)(b).

(e) Continuation of services in Summer Food Service Program appeals is governed under 7 C.F.R. § 225.13(11) and State Rule 1240-05-08-.01(8).

(f) Continuation of services in Child and Adult Care Food Program appeals is governed under 7 C.F.R. § 226.6(k)(10) and State Rule 1240-05-08-.01(9).

(g) Continuation of services in Refugee Cash Assistance Program appeals is governed under 45 C.F.R. § 400.54.

(h) Continuation of services in appeals for other Programs administered by the Department is contingent upon other Federal regulations applicable to the Program.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-301, 4-5-307, 71-1-105, 71-2-408, 71-3-101, 71-3-104, 71-4-508, 71- 4-610, 71-5-106, 71-5-110, and 71-5-305; 7 U.S.C. § 2020(b), (e)(10), and (e)(11); 20 U.S.C. §§ 107d-1 and 107b(6); 29 U.S.C. § 722(c); 42 U.S.C. § 1396 et seq.; 42 U.S.C. §§ 1761 and 1766; 42 U.S.C. § 6851; 42 U.S.C. § 8624; 7 C.F.R. §§ 225.13 and 226.6; 7 C.F.R. §§ 273.13, 273.13(a)(1), 273.13(a)(3)(v), 273.15 (g) and (k), and 273.17; 34 C.F.R. §§ 361.48 and 361.57; 34 C.F.R. §§ 395.4 and 395.13; 42 C.F.R. § 431.200 et seq.; 42 C.F.R. §§ 431.210, 431.211, 431.221, 431.230, and 431.231; 45 C.F.R. § 205.10(a)(4)(i)(A) and (ii)(K); 45 C.F.R. § 205.10(a)(5)(iii) and (a)(6) and (7); and 45 C.F.R. §§ 400.23, 400.54, and 400.145.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed July 10, 1980; effective August 25, 1980. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed January 20, 1984; effective February 19, 1984. Amendment filed August 30, 1985; effective November 12, 1985. Amendment filed September 30, 2004; effective December 14, 2004. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-03-.04 DISMISSAL OF HEARING REQUESTS

(1) The Department may dismiss a request for hearing if it has been withdrawn by the appellant in writing.

(2) The Department may dismiss a previously accepted appeal, upon evidence presented at a “good cause” hearing, pre-hearing conference, or in the pleadings that the appeal was not timely filed and that “good cause” for the lack of timely filing did not exist.

(3) Upon appropriate proof, the Department may dismiss an appeal at any point in the hearing process for any of the reasons that the appeal might be denied by the Appeals and Hearings Division by rule or law, if such facts had been known by the Appeals and Hearings Division before the appeal was accepted for hearing.

(4) Dismissal Process for Informally Resolved Appeals in SNAP Program.

(a) The Department may dismiss a request for a fair hearing when the Appeals and Hearings Division determines the appeal has been resolved in the appellant’s favor and the appellant has expressed orally that he/she wishes to withdraw the request for a hearing.

(b) In such case, prior to dismissal of the appeal, the Appeals and Hearings Division will provide a written notice of confirmation to the appellant within ten (10) days of the appellant’s oral expression to withdraw the request for a fair hearing. The written notice will advise the appellant that he/she has ten (10) days from the date of the written notice confirming the withdrawal of the request for a hearing to notify the Appeals and Hearings Division that he/she wishes to reinstate the fair hearing request. If reinstatement is requested, the appeal will proceed to a hearing.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-301, 71-1-105(a)(12), 71-1-111, and 71-1-132; 42 C.F.R. § 431.223; 45 C.F.R. § 205.10(a)(5)(v); and 7 C.F.R. § 273.15(d) and (j).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed April 30, 1979; effective July 30, 1979. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-03-.07 FILING AND SERVICE OF PLEADINGS AND OTHER MATERIALS

(1) All pleadings and any other materials required to be filed by a time certain following the filing of an appeal shall be filed by delivering such materials in person or by any other manner, including by mail, provided they are actually received by the Administrative Procedures Division or the Department within the required time period.

(2) Upon the involvement of the Administrative Procedures Division in any contested case, all pleadings and other materials required to be filed or submitted prior to the contested case hearing shall be filed with the designated office, where they will be stamped with the date of their receipt.

(3) Petitions for appeal of an Initial Order and for reconsideration or stay of an Initial or Final Order may be filed with the Department or the Administrative Procedures Division, as designated in the order.

(4) Discovery materials that are not actually introduced as evidence need not be filed, except as provided at Rule 1240-05-06-.04.

(5) Copies of any and all materials filed with the Department or the Administrative Procedures Division in a contested case shall also be served upon all parties, or upon their counsel, and shall contain a statement indicating that copies have been served upon all parties. Service may be by mail or equivalent carrier or by hand delivery.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-311, 71-1-105(12), and 71-1-111.
• Administrative History: Original rule filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-03-.05 GROUP HEARINGS

The Department may respond to a group of individual hearing requests by conducting a single group hearing where the sole issue is a State or Federal law or policy or a change in State or Federal law or policy. In all group hearings, the policies governing hearings must be followed. Thus, each individual claimant shall be permitted to present his/her own case or be represented by his/her authorized representative.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-301 et seq., 71-1-105(12), and 71-1-111; 7 C.F.R. § 273.15(e); 42 C.F.R. § 431.222; and 45 C.F.R. § 205.10(a)(5)(iv).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-03-.06 TIME

(1) In computing any period of time prescribed or allowed by statute, rule, or order, the time within which any act provided by law is to be done shall be computed by excluding the first day and including the last, unless the last day is a Saturday, a Sunday, or a legal holiday, and then it shall also be excluded. When the period of time prescribed or allowed is less than seven (7) days, intermediate Saturdays, Sundays and legal holidays shall be excluded in the computation. The Notice of Hearing will provide notice of this provision or inform the applicants/recipients of the specific calendar dates by which certain actions must be taken.

(2) Except in regard to petitions for appeal, reconsideration or review under T.C.A. §§ 4-5-315, 4- 5-317 and 4-5-322, or except where otherwise prohibited by law, when an act is required or allowed to be done at or within a specified time, the hearing official may, at any time:

(a) With or without motion or notice, order the period enlarged if the request is made before the expiration of the period originally prescribed or as extended by previous order; or (b) Upon motion made after the expiration of the specified period, permit the act to be done late, where the failure to act was the result of excusable neglect. Nothing in this

section shall be construed to allow any ex parte communications concerning any issue in the proceeding that would be prohibited by T.C.A. § 4-5-304.

(3) Any waiver of the time limits in State Rule 1240-05-03-.03 is subject to the approval of the Commissioner or his/her designated representative.

History

• Authority: T.C.A. §§ 1-3-102, 4-5-202, 4-5-219, 71-1-105(12), and 71-1-111.
• Administrative History: Original rule filed February 26, 2007; effective May 12, 2007.

Chapter 1240-05-04 Notice of the Hearing

Tenn. Comp. R. & Regs. 1240-05-04-.01 NOTICE

(1) Notice of Hearing. In every contested case, a notice of hearing shall be issued by the Department that shall comply with T.C.A. § 4-5-307(b) and shall be served as provided in 1240-05-04-.01(4) of these rules.

(2) The hearing shall be conducted at a reasonable time, date, and place after adequate written notice has been given to the appellant.

(a) For contested cases in the Families First and SNAP programs, adequate written notice shall be sent at a minimum ten (10) days in advance of the date of the hearing.

(b) The notice of hearing in Child and Adult Care Food Program appeals, for actions that are subject to administrative review, is governed under 7 C.F.R. § 226.6(k)(5) and State Rule 1240-05-08-.01(9), and adequate written notice shall be sent at a minimum ten (10) days in advance of the date of the hearing.

(c) The notice of hearing in Summer Food Service Program appeals is governed under 7 C.F.R. § 225.13 and State Rule 1240-05-08-.01(8) and adequate written notice shall be sent at a minimum five (5) days in advance of the date of the hearing.

(d) For Child Support appeals adequate written notice shall be sent at a minimum fifteen (15) days in advance of the date of the hearing.

(e) For Vocational Rehabilitation appeals adequate written notice shall be sent at a minimum fifteen (15) days in advance of the date of the hearing.

(f) For Blind Services appeals adequate written notice shall be sent at a minimum fifteen (15) days in advance of the date of the hearing.

(g) The hearing on the petition requesting a hearing on the notice to deny, revoke or restrict an adult day care center license shall be held within sixty (60) days of the receipt of the petition. The notice of the hearing date shall be sent at a minimum fifteen (15) days in advance of the date of the hearing.

(h) For all other appeals not otherwise specified herein, adequate written notice shall be sent at a minimum fifteen (15) days in advance of the date of the hearing.

(i) The notice periods set forth in this paragraph may be extended for any individual or all programs by direction of the Commissioner’s designee in his/her sole discretion except where otherwise limited by statute or federal regulation.

(3) The notice shall include:

(a) The date, time, place, and nature of the hearing with instructions to the appellant to notify the Appeals and Hearings Division if he/she is unable to meet the appointment.

(b) A statement of the legal authority and jurisdiction under which the hearing is to be held, including a reference to the particular sections of the statutes and rules involved.

(c) A short and plain statement of the matters asserted. The notice will define the issues and refer to detailed statements of the matters involved, if available.

(d) Information about hearing procedures.

(e) The appellant’s option to present his/her case or be represented by a lawyer or another authorized person, including relatives, friends, or other spokesperson.

(f) The appellant’s right to inspect the files of the agency with respect to the matter under appeal and to copy from the file.

(g) The appellant’s right to present written evidence and testimony and to bring witnesses to the hearing.

(h) The process by which an appellant may petition for reconsideration of an initial or final order, if applicable.

(i) The process by which an appellant may appeal an initial order, if applicable.

(j) The appellant’s right to judicial review, if he/she is dissatisfied with the final order entered on his/her appeal.

(k) Supplemented Notice.

In the event it is impractical or impossible to include in one document every element required for notice, elements such as time and place of hearing may be supplemented in later written notice.

(4) Service of Notice of Hearing.

(a) In any case in which an appellant in Families First or SNAP has requested a hearing from the Department, a copy of the notice of hearing shall be sent to the party via regular U.S. mail at the last known address. Service of notice of the hearing for other programs administered by the Department shall be by any method permitted or required by law or program regulations governing those programs.

(b) In the event of a motion for default, the following circumstances will be taken into account in determining whether to grant the default:

1. Whether the Notice of Hearing was mailed to the last known address of the appellant or the authorized representative;

2. Whether the appellant or the authorized representative failed to contact the Department’s Division of Appeals and Hearings to request a continuance prior to the scheduled hearing; and 3. Whether the appellant or the authorized representative failed to appear for the scheduled hearing, without good cause.

(5) Filing of Documents. When a contested case is commenced, if the matter is being heard by the Administrative Procedures Division, the Department shall provide the Administrative Procedures Division with all the papers that make up the notice of hearing and with all pleadings, motions, and objections, formal or otherwise, that have been provided to or generated by the Department concerning that particular case. Legible copies may be filed in lieu of originals.

(6) Answer. The party may respond to the matters set out in the notice or other original pleading by filing a written answer with the Department in which the party may:

(a) Object to the notice upon the ground that it does not state acts or omissions upon which the Department may proceed;

(b) Object on the basis of lack of jurisdiction over the subject matter;

(c) Object on the basis of lack of jurisdiction over the person;

(d) Object on the basis of insufficiency of the notice;

(e) Object on the basis of insufficiency of service of the notice;

(f) Object on the basis of failure to join an indispensable party;

(g) Generally deny all the allegations contained in the notice or state that he/she is without knowledge as to each and every allegation, both of which shall be deemed a general denial of all charges;

(h) Admit in part or deny in part allegations in the notice and may elaborate on or explain relevant issues of fact in a manner that will simplify the ultimate issues; and (i) Assert any available defense.

(7) Amendment to Notice.

(a) The notice or other original pleading may be amended no later than ten (10) days prior to the date set for the hearing, unless the respondent shows that undue prejudice will result from this amendment. Otherwise, the notice or other original pleading may only be amended by written consent of the respondent or by leave of the hearing official or Commissioner’s designee, and leave shall be freely given when justice so requires.

(b) No amendment to the notice may introduce a new statutory or regulatory basis for denial or termination of enrollment without original service and running of times applicable to service of the original notice.

(c) The hearing official shall not grant a continuance to amend the notice or original pleading if such would prejudice a respondent’s right to a hearing and Initial Order within any mandatory time frames.

(8) Amendments to Conform to the Evidence.

(a) When issues not raised by the pleadings are tried by express or implied consent of the parties, they shall be treated in all respects as if they had been raised in the pleadings.

Such amendment of the pleadings as may be necessary to cause them to conform to the evidence and to raise these issues may be made upon motion of any party at any time; but failure to amend for this reason does not affect the result of the determination of these issues.

(b) If evidence is objected to at the hearing on the ground that it is not within the issues in the pleadings, the hearing official may allow the pleadings to be amended unless the objecting party shows that the admission of such evidence would prejudice his defense. The hearing official may grant a continuance to enable the objecting party to have reasonable notice of the amendments. However, when the individual is not represented by counsel, the burden cannot be put on such individual to object to the State’s trying of cases without proof and legal authorities set out in the pleadings, and the hearing official shall rule on whether to allow additional evidence and the need for continuances to enable the respondent further time to address the new grounds.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-301, 36-5-701 et seq., 36-5-1001–1003, 71-1-105(a)(12), 71-2-401 et seq., 71-3-104, 71-3-509, 71-4-508, 71-4-610, 71-5-106, 71-5-110, and 71-5-305; 7 U.S.C. §§ 2014, 2015, and 2020(e)(10); 20 U.S.C. § 107b(6) and 107d-1; 29 U.S.C. § 722(a)(5) and (c)(2); 42 U.S.C. §§ 601 et seq.; 42 U.S.C. §§ 651 et seq.; 42 U.S.C. § 1397; 42 U.S.C. §§ 1396 et seq.; 42 U.S.C. §§ 1761 and 1766; 42 U.S.C. § 6851; 42 U.S.C. § 8624; 42 U.S.C. § 9901; 7 C.F.R. § 225.13(b)(6), 226.6(k)(5)(vi), and 226.6(l)(2); 7 C.F.R. § 273.15(l); 10 C.F.R. § 440.1; 34 C.F.R. § 361.57(e); 34 C.F.R. §§ 395 et seq.; 42 C.F.R. § 431.240; 45 C.F.R. § 205.10(a)(8); and 45 C.F.R. § 400.54.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-04-.02 PRE-HEARING CONFERENCE

(1) In any action set for hearing the Hearing Official assigned to hear the case, upon his/her own motion or upon motion of one of the parties or their qualified representative, may direct the parties and/or the attorneys for the parties to appear before him/her for a conference to consider:

(a) The simplification of issues;

(b) The necessity or desirability of amendments to the pleadings;

(c) The possibility of obtaining admissions of fact and of documents which will avoid unnecessary proof;

(d) The limitation of the number of expert witnesses;

(e) Such other matters as may aid in the disposition of the action.

(2) The Hearing Official shall make an order which recites the action taken at the conference, the amendments allowed to the pleadings, and the agreements made by the parties as to any of the matters considered, and which limits the issues for hearing to those not disposed of by the admissions or agreements of the parties, and such order when entered controls the subsequent course of the action, unless modified at the hearing to prevent manifest injustice.

(3) Upon reasonable notice to all parties, the Hearing Official may convene a hearing or convert a pre-hearing conference to a hearing, to be conducted by the Hearing Official sitting alone, to consider arguments and/or evidence on any question of law. The Hearing Official may render an initial order on the question of law.

(4) In the discretion of the Hearing Official, all or part of the pre-hearing conference may be conducted by telephone, television, or other electronic means, if each participant in the conference has an opportunity to participate in and if technically feasible, to see the entire proceeding while it is taking place.

(5) If a pre-hearing conference is not held, the Hearing Official for the hearing may issue a prehearing order, based on the pleadings, to regulate the conduct of the proceedings.

(6) Unless precluded by law, informal disposition may be made of any appealed case by stipulation, agreed settlement, consent order or default.

History

• Authority: T.C.A. § 4-5-306.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1983; effective March 16, 1983. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-04-.03 SUBPOENAS FOR EVIDENCE AND WITNESSES

(1) The Department shall have the power in an Administrative Hearing to require the attendance of such witnesses and the production of such books, records, papers, or other tangible things as may be necessary and proper for the purpose of the hearing proceeding. It shall be the responsibility of the Hearing Official to issue the subpoena, but it shall be the responsibility of the parties involved in the case to request of the Hearing Official the issuance of a subpoena and the responsibility of the requesting party to properly serve the subpoena. Subpoenas may be served at any place within the State by certified mail in addition to means of service provided by the Tennessee Rules of Civil Procedure.

(2) The Hearing Official may at or before the time specified in the subpoena for compliance:

(a) Void or modify the subpoena if it is unreasonable and oppressive, or (b) Tax the party making the request with reasonable costs in the production of books, papers, documents, or other tangible things.

History

• Authority: T.C.A. § 4-5-311.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-04-.04 REPRESENTATION BY COUNSEL

(1) Any party to a contested case hearing may be advised and represented, at the party’s own expense, by a licensed attorney.

(2) Any party to a contested case may represent himself or herself or, in the case of a corporation or other artificial person, may participate through a duly authorized representative, such as an officer, director, or appropriate employee; provided, however, such officer may not undertake any activities that constitute the unauthorized practice of law.

(3) A party to a contested case hearing may not be represented by a non-attorney, except in any situation where federal law requires or state law specifically permits.

(4) The Department shall notify all parties in a contested case hearing of their right to be represented by counsel. An appearance by a party at a hearing without counsel may be deemed a waiver of the right to counsel.

(5) Entry of an appearance by counsel shall be made by:

(a) The filing of pleadings;

(b) The filing of a formal or informal notice of appearance; or (c) Appearance as counsel at a pre-hearing conference or a hearing.

(6) After appearance of counsel has been made, all pleadings, motions, and other documents shall be served upon such counsel.

(7) Counsel wishing to withdraw shall give written notice to the Appeals and Hearings Division, or the Department of State, Administrative Procedures Division when applicable, and the hearing official.

(8) Out-of-state counsel shall comply with T.C.A. § 23-3-103(a) and Supreme Court Rule 19, except that the affidavit referred to in Supreme Court Rule 19 shall be filed with the director of the Appeals and Hearings Division or Administrative Procedures Division, when applicable, with a copy to the hearing official presiding in the matter in which counsel wishes to appear.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-219, 4-5-301, 4-5-305, 4-5-312, 71-5-105(a)(12), and 71-1-111.
• Administrative History: Original rule filed February 26, 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-04-.05 PRE-HEARING MOTIONS

(1) Motions.

(a) Scope. This rule applies to all motions made prior to a hearing on the merits of a contested case.

(b) Parties to a contested case are encouraged to resolve matters on an informal basis; however, if efforts at informal resolutions fail, any party may request relief in the form of a motion by serving a copy on all parties and by filing the motion with the Administrative Procedures Division, the Department of Human Services’ Appeals and Hearings Division or directly with the hearing official.

(c) Any such motion shall set forth a request for all relief sought, and shall set forth grounds which entitle the moving party to relief.

(d) A motion shall be considered submitted for disposition seven (7) days after it was filed, unless oral argument is granted, or unless a longer or shorter time is set by the hearing official.

(e) Telephonic, Televised and Alternate Electronic Methods for Conducting Hearings and Pre-hearing Conferences.

In the discretion of the hearing official, and with the concurrence of the parties, any prehearing conference may be conducted by telephone, television, or other electronic means, if each participant in the conference has an opportunity to fully participate in the entire proceeding while it is taking place.

(2) Time Limits; Oral Argument.

(a) A party may request oral argument on a motion; however, a brief memorandum of law submitted with the motion is preferable to oral argument.

(b) Each opposing party may file a written response to a motion, provided the response is filed within seven (7) days of the date the motion was filed. If oral argument is requested, the motion may be argued by conference telephone call.

(3) Affidavits; Briefs and Supporting Statements.

(a) Motions and responses to motions shall be accompanied by all supporting affidavits and briefs or supporting statements. All motions and responses to them shall be supported by affidavits for facts relied upon which are not of record or which are not the subject of official notice. Such affidavits shall set forth only facts which are admissible in evidence under T.C.A. § 4-5-313, and to which the affiants are competent to testify.

Properly verified copies of all papers or parts of papers referred to in such affidavits may be attached thereto.

(b) In the discretion of the hearing official, a party or parties may be required to submit briefs or supporting statements pursuant to a schedule established by the hearing official.

(4) Disposition of Motions; Drafting the Order.

(a) When a pre-hearing motion has been made in writing or orally, the hearing official shall render a decision on the motion by issuing an order or by instructing the prevailing party to prepare and submit an order in accordance with subparagraph (b) below.

(b) The prevailing party on any motion shall draft an appropriate order, unless otherwise directed by the hearing official. This order shall be submitted to the hearing official within five (5) days of the ruling on the motion, or as otherwise ordered by the hearing official.

(c) The hearing official, after signing any order, shall cause the order to be served immediately upon the parties.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-219, 4-5-301, 4-5-308, 71-1-105(12), and 71-1-111.
• Administrative History: Original rule filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-04-.06 CONTINUANCE

(1) Continuances may be granted upon good cause shown in any stage of the proceeding. The need for a continuance shall be brought to the attention of the hearing official as soon as practicable by the appellant, by the Department, or by mutual consent of the parties.

(2) The maximum time limits for processing appeals are governed under Tennessee Department of Human Services, State Rule 1240-05-08-.01.

(3) If an appellant requests a continuance, any mandatory deadlines for conducting hearings and issuance of initial orders by a hearing official or commissioner’s designee may be extended by a like period of time. Calculation of the applicable time frame may be adjusted only to the extent that any delays are attributable to the appellant. The appellant shall only be charged with the amount of delay occasioned by the appellant’s acts or omissions, and any other delays should be deemed to be the responsibility of the Department of Human Services.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-219, 4-5-301, 4-5-308, 71-1-105(12), and 71-1-111.
• Administrative History: Original rule filed February 26, 2007; effective May 12, 2007.

Chapter 1240-05-05 The Hearing Official

Tenn. Comp. R. & Regs. 1240-05-05-.01 ROLE

(1) The Commissioner of the Department of Human Services has placed responsibility for hearings in the Appeals and Hearings Division. The hearing official is vested with full

authority in the conduct of the hearing process. The hearing official is fully responsible for conducting hearings properly and promptly in accordance with the rules and regulations established by the Department.

(2) Hearings for an appellant or household involving any program or any other persons/entities entitled to appeal any adverse administrative action may be consolidated by the Commissioner, the Assistant Commissioner for Appeals and Hearings or their designees, or by a hearing official in his or her discretion; provided, however, that if necessary to promote justice or to address issues that require separate hearings for any reason, a consolidated appeal may be separated into individual hearings.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-312, 36-5-101(f)(1), 71-1-105(12), and 71-1-111; and 42 U.S.C. § 666(a)(9).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-05-.02 AUTHORITY

(1) The hearing official shall have the authority to do the following:

(a) Schedule and conduct the hearing;

(b) Administer oaths;

(c) Issue subpoenas;

(d) Rule upon offers of proof;

(e) Regulate the course of the hearing;

(f) Set the time and place for continued hearings;

(g) Enter an Initial Order stating his/her decision;

(h) Rule on petitions for reconsideration of the Initial Order; and (i) Perform those duties or take those actions that are otherwise appropriate and necessary for the fair, timely and adequate administration of the administrative hearing process.

(2) Except for issues of subject matter jurisdiction, no hearing official, shall, on the hearing official’s own motion, raise and determine issues that were not raised in the notice of hearing, or which were not raised and tried in the course of the hearing without objection of the parties.

(3) Pursuant to T.C.A. § 36-5-101(f)(1) and 42 U.S.C.S § 666 (a)(9)(C), a hearing official is not authorized to forgive or retroactively modify any child/spousal support arrearages in a hearing considering an appeal of administrative action by the Department of Human Services in the Child Support program.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-223, 36-5-101(f)(1), 71-1-105(12), 71-1-111, 71-5-105, and 71-5-109; 7 C.F.R. § 273.15(g); 42 U.S.C.S § 666 (a)(9)(C); 42 C.F.R. § 431.220 and 42 C.F.R. § 431.221; and 45 C.F.R. § 205.10(a)(5)(iii).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed July 10, 1980; effective August 25, 1980. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-05-.03 ORDER OF PROCEEDINGS

(1) Telephonic, Televised and Alternate Electronic Methods for Conducting Hearings and Prehearing Conferences.

In the discretion of the hearing official, and with the concurrence of the parties, all or part of the contested case proceeding, including any pre-hearing conference, may be conducted by telephone, television, or other electronic means, if each participant in the conference has an opportunity to fully participate in the entire proceeding while it is taking place.

(2) Order of proceedings for the hearing of contested cases, including reconsideration hearings:

(a) The hearing official may confer with the parties prior to a hearing to explain the order of proceedings, admissibility of evidence, number of witnesses and other matters.

(b) The hearing is called to order by the hearing official.

(c) The hearing official introduces him/herself and gives a very brief statement of the nature of the proceedings, including a statement of the hearing official’s role in making factual and legal rulings.

(d) The hearing official then calls on the respondent to ask if the respondent is represented by counsel, and if so, counsel is introduced. The hearing official then introduces the petitioner’s counsel and any other officials who may be present at the hearing.

(e) The hearing official states what documents the record contains.

(f) In appropriate cases, the hearing official or petitioner reads the charges as set out in the notice with regard to the respondent, while giving references to the appropriate statutes and rules.

(g) In appropriate cases, the respondent is asked how he or she responds to the charges or disposition of his/her case. If he or she admits the charges or agrees with the disposition of his/her case, no further proof may be necessary, other than introduction of evidence pertaining to the proper penalty, if appropriate. If he or she denies the charges or fails to admit them or disagrees with the disposition of any portion of his/her case, the hearing proceeds. (Proceedings involving Families First and Food Stamp Intentional Program Violations are governed under Department of Human Services State Rules at Chapters 1240-05-14 and 1240-05-15.)

(h) The hearing official swears the witnesses.

(i) The parties are asked whether they wish to have all witnesses excluded from the hearing room except during their testimony. If so, all witnesses are instructed not to discuss the case during the pendency of the proceeding. Notwithstanding the exclusion of the witnesses, individual parties will be permitted to stay in the hearing room, and the State or any other party that is a corporation or other artificial person may have one appropriate individual, who may also be a witness, act as its party representative.

(j) Any preliminary motions, stipulations, or agreed orders are entertained.

(k) Opening statements are allowed by both the petitioner and the respondent.

(l) Moving party (usually the petitioner) calls witnesses and questioning proceeds as follows:

1. (Petitioner) moving party questions.

2. (Respondent) other party cross-examines.

3. (Petitioner) moving party redirects.

4. (Respondent) other party re-cross-examines.

5. Hearing official questions.

6. Further questions by petitioner and respondent. (Questioning proceeds as long as necessary to provide all pertinent testimony.)

(m) Other party (usually the Respondent) calls witnesses and questioning proceeds as follows:

1. (Respondent) other party questions.

2. (Petitioner) moving party cross-examines.

3. (Respondent) other party redirects.

4. (Petitioner) moving party re-cross-examines.

5. Hearing official questions.

6. Further questions by respondent and petitioner. (Questioning proceeds as long as is necessary to provide all pertinent testimony.)

(n) Petitioner and respondent are allowed to call appropriate rebuttal and rejoinder witnesses with examination proceeding as outlined above.

(o) Closing arguments are allowed to be presented by the petitioner and by the respondent.

(p) The hearing official announces the decision or takes the case under advisement.

(3) The parties are informed that an Initial Order will be written and sent to the parties and that the Initial Order will inform the parties of their appeal rights.

(4) Paragraphs (1)–(3) of this rule are intended to be merely a general outline as to the conduct of a contested case proceeding and it is not intended that a departure from the literal form or substance of this outline, in order to expedite or ensure the fairness of proceedings, would be in violation of this rule.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-219, 4-5-301, 4-5-312, 71-1-105(12), and 71-1-111.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-05-.04 DEFAULT AND UNCONTESTED PROCEEDINGS

(1) Default.

(a) The failure of a party to attend or participate in a pre-hearing conference, hearing or other stage of contested case proceedings after appropriate notice of those actions is cause for holding such party in default pursuant to T.C.A. § 4-5-309. Failure to comply with any lawful order of the hearing official, necessary to maintain the orderly conduct of the hearing, may be deemed a failure to participate in a stage of a contested case and shall be cause for a holding of default.

(b) If a party fails to attend or participate as provided in subparagraph (a) above, the hearing official may do either of the following:

1. Hold the party failing to attend or to participate in default and, after determining that the party in default has the burden of proof, adjourn the proceedings and enter an order of default setting forth the grounds for the default, that will become a Final Order without further notice as provided in State Rule 1240-05-08-.02, unless a timely filed Petition for Reconsideration is filed; or 2. Hold the party failing to attend or to participate in default and, after determining that the party not in default has the burden of proof, conduct the proceedings without the participation of the defaulting party and include in the Initial Order a written notice of default setting forth the grounds for the default. The Initial Order will become a Final Order without further notice as provided in State Rule 1240- 05-08-.02, unless a timely filed Petition for Reconsideration is filed.

(c) The hearing official shall serve upon all parties the written notice of entry of default for failure to appear as provided in part (b)1. or 2. above. The defaulting party, no later than fifteen (15) days after service of such notice of default, may file a Petition for Reconsideration as provided in T.C.A. § 4-5-317, requesting that the default be set aside for good cause shown, and stating the grounds relied upon. The hearing official may make any order in regard to such motion as is deemed appropriate, pursuant to T.C.A. § 4-5-317.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-219, 4-5-309, 4-5-317, 71-1-105(a)(12), and 71-1-111; 7 C.F.R. § 273.15(j)(1)(ii); 42 C.F.R. § 431.223; and 45 C.F.R. § 205.10(a)(5)(v).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Chapter 1240-05-06 Rules of Evidence and Discovery

Tenn. Comp. R. & Regs. 1240-05-06-.01 RULES OF EVIDENCE

(1) Evidence in Hearings. In all Department hearings, the testimony of witnesses shall be taken in open hearings, except as otherwise provided by these rules. In the discretion of the Department or at the motion of any party, witnesses may be excluded prior to their testimony.

The standard for admissibility of evidence, including admissibility of affidavits, is set forth at T.C.A. § 4-5-313.

(2) The hearing official shall admit and give probative effect to evidence admissible in a court, and when necessary to ascertain facts not reasonably susceptible to proof under the rules of court, evidence not admissible thereunder may be admitted if it is of a type commonly relied upon by reasonably prudent persons in the conduct of their affairs. The hearing official shall give effect to the rules of privilege recognized by law and to state or federal statutes or regulations protecting the confidentiality of certain records and shall exclude evidence which in his/her judgment is irrelevant, immaterial or unduly repetitious.

(3) Documentary evidence otherwise admissible may be received in the form of copies or excerpts, or by incorporation by reference to material already on file with the Department.

Upon request, parties shall be given an opportunity to compare the copy with the original, if reasonably available.

(4) Official notice may be taken of:

(a) Any fact that could be judicially noticed in the courts of this state;

(b) The record of other proceedings before the Department;

(c) Technical or scientific matters within the hearing official’s specialized knowledge; and (d) Codes or standards that have been adopted by an agency of the United States, of this state or of another state, or by a nationally recognized organization or association.

Parties must be notified before or during the hearing, or before the issuance of any Initial or Final Order that is based in whole or in part on facts or material noticed, of the specific facts or material noticed and the source thereof, including any staff memoranda and data, and be afforded an opportunity to contest and rebut the facts or material so noticed.

(5) Every party shall have the right to present evidence, to make arguments, and to confront and cross-examine witnesses.

(6) At any time not less than ten (10) days prior to a hearing or a continued hearing, any party shall deliver to the opposing party a copy of any affidavit which such party proposes to introduce in evidence, together with a notice in the form provided in 1240-05-06-.01(8) below.

Unless the opposing party within seven (7) days after delivery delivers to the proponent a request to cross-examine an affiant, the opposing party’s right to cross-examination of such affiant is waived and the affidavit, if introduced in evidence, shall be given the same effect as if the affiant had testified orally. If an opportunity to cross-examine an affiant is not afforded after a proper request is made as herein provided, the affidavit shall not be admitted into evidence. Delivery for purposes of this paragraph shall mean actual receipt.

(7) The hearing official assigned to conduct the hearing may admit affidavits not submitted in accordance with paragraph (6) above, where necessary to prevent injustice.

(8) The notice referred to in 1240-05-06-.01(6) above shall contain the following information and be substantially in the following form:

The accompanying affidavit of __________ (here insert name of affiant) will be introduced as evidence at the hearing in __________ (here insert title of proceeding). __________ (here insert name of affiant) will not be called to testify orally and you will not be entitled to question such affiant unless you notify __________ (here insert name of the proponent or the proponent’s attorney) at __________ (here insert address) that you wish to cross-examine such affiant. To be effective, your request must be mailed or delivered to __________ (here insert name of proponent or the proponent’s attorney) on or before __________ (here insert a date seven (7) days after the date of mailing or delivering the affidavit to the opposing party).

History

• Authority: T.C.A. §§ 4-5-202, 4-5-313, 71-1-105(12), and 71-1-111.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed January 12, 1979; effective May 1, 1979. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-06-.02 EXAMINATION OF CASE FILE

Any party to a contested case shall have the right to examine Department manuals and the contents of the case file with respect to the matter being contested, and all documents and records used as evidence, at a reasonable time either before the date of the hearing or during the hearing. The case record and manuals shall be provided electronically.

History

• Authority: T.C.A. § 4-5-311.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-06-.03 EX PARTE COMMUNICATION

Unless required for the disposition of ex parte matters authorized by law, members or employees of an agency assigned to render a decision or to make findings of fact and conclusions of law in an appeal shall not communicate directly or indirectly in connection with any issue involved in such proceeding with any person except upon notice and opportunity for all parties to participate, except an agency member may communicate with other members of the agency, members of the Attorney General’s staff or his personal assistants.

History

• Authority: T.C.A. § 4-5-304.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983.

Tenn. Comp. R. & Regs. 1240-05-06-.04 DISCOVERY

(1) Any party to a contested case proceeding shall have the right to reasonable discovery pursuant to T.C.A. § 4-5-311.

(2) Parties are encouraged to attempt to achieve any necessary discovery informally. When such attempts have failed, or where the complexity of the case is such that informal discovery is not practicable, discovery shall be sought and effectuated in accordance with the Tennessee Rules of Civil Procedure (TRCP).

(3) Upon motion of a party or upon the hearing official’s own motion, the hearing official may order that discovery be completed by a certain date.

(4) Any motion to compel discovery, motion to quash, motion for protective order, or other discovery related motion shall:

(a) Quote verbatim the interrogatory, request, question, or subpoena at issue, or be accompanied by a copy of the interrogatory, request, subpoena, or excerpt of a deposition which shows the question and objection or response if applicable;

(b) State the reason or reasons supporting the motion; and (c) Be accompanied by a statement certifying that the moving party or his or her counsel has made a good faith effort to resolve by agreement the issues raised and that agreement has not been achieved. Such effort shall be set forth with particularity in the statement.

(5) The hearing official shall decide any motion relating to discovery pursuant to the Uniform Administrative Procedures Act (UAPA) and the rules promulgated thereunder or the TRCP.

(6) Other than as provided in paragraph (4) above, discovery materials need not be filed with either the Department of State Administrative Procedures Division or the Appeals and Hearings Division.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-311, 71-1-105(12), and 71-1-111.
• Administrative History: Original rule filed January 12, 1979; effective May 1, 1979. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Chapter 1240-05-07 The Hearing Report

Tenn. Comp. R. & Regs. 1240-05-07-.01 CONTENTS OF REPORT

(1) The hearing record shall be maintained for not less than three (3) years.

(2) Hearing decisions are accessible to the public for inspection and copying, subject to the requirements of safeguarding case information and to the deletion of any portions that are confidential under any provision of law.

(3) The hearing record shall be available to the appellant or his/her representative at any reasonable time. The record shall include:

(a) All pleadings, notices, briefs, petitions, motions, and intermediate rulings;

(b) Exhibits;

(c) A summary of the oral testimony plus all other evidence received or considered, stipulations, and admissions;

(d) A statement of matters officially noticed;

(e) Questions and offers of proof, objections, and rulings thereon;

(f) Findings and conclusions;

(g) The tape recording, stenographic notes or symbols, or transcript of the hearing;

(h) Any Final Order, Initial Order, or Order on reconsideration;

(i) All staff memoranda or data submitted to the hearing official or members of the agency in connection with their consideration of the case; and (j) Matters placed on the record after an ex parte communication.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-319, 4-5-218(a)–(d), 71-1-105(a)(12), and 71-1-111; 7 C.F.R. § 273.15(q)(1) and (5); 42 C.F.R. § 431.244(g); and 45 C.F.R. § 205.10(a)(14) and (19).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-07-.02 RECORD OF ORAL PROCEEDINGS

A record (which may consist of a stenographic record, tape or similar electronic recording, or comprehensive notes) shall be made of all oral proceedings. Such record or any part thereof shall be transcribed on request of any party at his/her expense or may be transcribed by the Department at its expense.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-319, 71-1-105(12), and 71-1-111.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Chapter 1240-05-08 The Initial and Final Order

Tenn. Comp. R. & Regs. 1240-05-08-.01 APPEAL PROCESSING TIME FRAMES

(1) The time frames in State Rule 1240-05-08-.01 are an administrative requirement for the Department and may not be used as a basis for overturning the Department’s action if a decision is not made within the specified time frame, unless otherwise required by Federal or State law or Court Order. The time limit applies to the period extending from the date the request is received by the Department until the date the Final Order is entered, unless otherwise specified.

(2) State Rule 1240-05-01-.05 sets forth the time limits for processing appeals for Vocational Rehabilitation Services.

(3) State Rule 1240-06-11-.02 sets forth the time limits for processing appeals related to the Randolph Sheppard Act and the Tennessee Business Enterprises Program.

(4) The maximum time limit for processing appeals is ninety (90) days for the Families First Program and Services Programs, except as otherwise specified by these rules or laws or regulations specifically applicable to a program.

(5) Refugee Cash Assistance Program appeals will be processed within sixty (60) days from the date of the hearing request.

(6) SNAP Appeals will be processed within sixty (60) days. The postponement of the scheduled hearing in SNAP Appeals shall not exceed thirty (30) days, and the time limit for processing the SNAP appeal shall be extended because of:

(a) Illness of the appellant;

(b) Delay in obtaining medical evidence; or (c) Because of circumstances beyond the control of the appellant or the Department.

(7) 7 C.F.R. § 225.13 governs appeals in the Summer Food Service Program and the maximum time limit for processing appeals is nineteen (19) days for the Summer Food Service Program as follows:

(a) The time period allowed for filing the appeal, where actions are appealable as specified in 7 C.F.R. § 225.13(a), is ten (10) days from the date on which the notice of action sent by certified mail return receipt (or the equivalent private delivery service), by facsimile, or by email, is received. The appeal must be in writing.

(b) The appellant is allowed to refute the charges in the notice of action in person, or by filing written documentation with the review official. If the appeal letter does not specifically request a hearing, a review of written documentation in lieu of a hearing will occur. To be considered, written documentation must be submitted by the appellant within seven (7) days of submitting the appeal. An appellant is allowed the opportunity to review information upon which the action described in the notice of action was based.

(c) If the appellant requested a hearing in the appeal letter, the appellant shall be given at least five (5) days advance written notice of the hearing date by certified mail return receipt.

(d) If the appellant requested a hearing in the appeal letter, the hearing will be conducted within fourteen (14) days of the receipt of the appeal. However, the hearing will not be held before the appellant’s written documentation is received where the appellant has requested to submit the written documentation. The appellant may retain legal counsel or may be represented by another person. A corporation or other legally created entity may participate through a duly authorized representative, such as an officer, director, or appropriate employee; provided, however, such officer may not undertake any activities that constitute the unauthorized practice of law.

(e) Within five (5) working days after receiving the written documentation, and where a hearing was not requested in the appeal letter, the administrative review official, based on a full review of the administrative record, will inform the appellant, by certified mail, return receipt requested, of the official’s determination.

(f) Within five (5) working days after the hearing has been held, when a hearing was requested in the appeal letter, the hearing official, based on a full review of the administrative record, will inform the appellant, by certified mail, return receipt requested, of the official’s determination.

(g) 7 C.F.R. § 225.13(11) requires the Program’s administrative action to remain in effect during the appeal process.

(h) Participating sponsors and sites may continue to operate during an appeal of a termination.

(i) Reimbursement shall be paid for meals served during the appeal process if the administrative review determination overturns the Program’s administrative action that was appealed.

(j) If the sponsor or site has been terminated for the reason of imminent dangers to the health or welfare of children, the operation shall not be allowed to continue during the appeal process and this reason shall be specified in the notice of action.

(k) The determination made by the hearing official is the final administrative determination provided under 7 C.F.R. § 225.13(12), and will become the Final Order and set forth the time limits for seeking judicial review.

(8) 7 C.F.R. § 226.6(k)(5) governs appeals described in 7 C.F.R. § 226.6(k)(2) in the Child and Adult Care Food Program that are subject to administrative review by the state agency and the maximum time limit for processing appeals is sixty (60) days for the Child and Adult Care Food Program as follows:

(a) 7 C.F.R. 226.6(k)(9) makes provision for abbreviated administrative reviews. The administrative review official must limit the administrative review to a review of written submissions concerning the accuracy of the Child and Adult Care Food Program’s determination if the application was denied or the Program proposes to terminate an institution’s agreement, because of the circumstances described in 7 C.F.R. 226.6(k)(9)(i) through (iv).

(b) The time period to file an appeal to request an administrative review of an action described in 7 C.F.R. § 226.6(k)(2) that is subject to administrative review by the state agency is fifteen (15) days after the notice of the action to be taken or action proposed, sent by certified mail return receipt (or the equivalent private delivery service), by facsimile, or by email, is received. The appeal request for administrative review must be in writing.

(c) The receipt of the appeal requesting an administrative review must be acknowledged by the Department within ten (10) days of receiving the request. The appellant may retain legal counsel or may be represented by another person. A corporation or other legally created entity may participate through a duly authorized representative, such as an officer, director, or appropriate employee; provided, however, such officer may not undertake any activities that constitute the unauthorized practice of law.

(d) The appellant is allowed to inspect information on which the action was based. The information must be available for inspection from the date the appeal request is received.

(e) The appellant may dispute the findings contained in the notice of action in person, or by submitting written documentation to the administrative review official. In order to be considered, written documentation must be submitted to the administrative review official not later than thirty (30) days after receipt of the notice of action. If the written request for administrative review does not specifically request a hearing, a review of written information in lieu of a hearing will occur.

(f) At least ten (10) days advance notice of the hearing shall be given, if the appellant requested a hearing in the written appeal. The service of the advance notice of the hearing will be in accordance with State Rule 1240-05-04-.01.

(g) The determination of the administrative review official must be based solely on the information provided by the Department, the appellant, Federal and State laws, regulations, policies, and procedures governing the Child and Adult Care Food Program.

(h) The administrative review official must inform the appellant of the administrative review’s outcome within sixty (60) days of the receipt of the appeal requesting administrative review. This sixty (60) day time frame is an administrative requirement and may not be used as a basis for overturning the action if the administrative decision is not made within this time frame.

(i) 7 C.F.R. § 226.6(k)(10) requires the Child and Adult Care Food Program’s action to remain in effect during the administrative review. 7 C.F.R. § 226.6(k)(10)(i) through (iii) describes actions of the Department that are permitted or prohibited during the pendency of the administrative review.

(j) The determination made by the administrative review official is the final administrative determination provided under 7 C.F.R. § 226.6(k)(5)(x) and will become a Final Order and set forth the time limits for seeking judicial review.

(9) The maximum time limit for processing appeals is ninety (90) days for the Child Support Program, unless otherwise specified by the Tennessee Code Annotated or by rule in Chapter 1240-02.

(10) The maximum time for processing license probation appeals for child care agencies pursuant to T.C.A. § 71-3-509(b)(2) and (3) is seven (7) business days following conclusion of the hearing.

(11) The maximum time for rendering a decision regarding the Department’s assessment of a child care agency program under the provisions of Chapter 1240-04-07 is thirty (30) days following the conclusion of the hearing.

(12) The maximum time for processing license probation appeals for adult day care centers pursuant to T.C.A. § 71-2-409(2) and (3) is fifteen (15) days following the receipt of the appeal.

(13) Hearings on the denial, revocation or restriction of an adult day care center license shall be held within sixty (60) days of the receipt of the petition requesting an appeal of the licensing action by the Department.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-301, 71-1-105(a)(12), 71-1-111, and 71-4-508; 20 U.S.C. §§ 107d-1 and 107b(6); 29 U.S.C. § 722(c); 42 U.S.C. §§ 1396 et seq. and 42 U.S.C. § 1396a(a)(5); 42 U.S.C. §§ 1761 and 1766; 7 C.F.R. §§ 225.13 and 226.6; 7 C.F.R § 225.13(b)(12) and 7 C.F.R. § 226.6(k)(5)(x); 7 C.F.R. § 273.15(c); 34 C.F.R. § 361.57(b)(1)(i), (e)(1), (e)(3)(ii), and (g); 34 C.F.R. §§ 395.4 and 395.13; 42 C.F.R. §§ 431.10 and 431.244; and 45 C.F.R. §§ 400.54 and 205.10(a)(16).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed January 20, 1984; effective February 19, 1984. Amendment filed September 30, 2004; effective December 14, 2004. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-08-.02 INITIAL AND FINAL ORDERS

(1) The provisions of this subchapter shall apply to the Initial and Final Order, except Vocational Rehabilitation Services appeals which are governed under State Rule 1240-05-01-.05(9)(e) and (10) and Summer Food Service Program and Child and Adult Care Food Program appeals which are governed under State Rules 1240-05-08-.01(8) and 1240-05-08-.01(9).

(2) The hearing official shall render an Initial Order. The Initial Order shall automatically become the Final Order fifteen (15) days after it is issued unless a timely Petition for Appeal, Petition for Reconsideration or Petition for a Stay of Effectiveness is filed with the Appeals and Hearings Division or the Administrative Procedures Division, as applicable. The Final Order shall be binding upon all parties unless it is stayed, reversed or otherwise set aside through judicial review.

(3) Contents of the Order.

(a) An Initial Order or a Final Order shall include conclusions of law, the policy reasons for the decision, and findings of fact for all aspects of the order, including the remedy prescribed and, if applicable, the action taken on a Petition for Stay of Effectiveness.

(b) Findings of fact, if set forth in language that is no more than mere repetition or paraphrase of the relevant provision of law, shall be accompanied by a concise and explicit statement of the underlying facts of record to support the findings.

(c) The Initial Order or Final Order must also include a statement of the available procedures and time limits for seeking reconsideration or other administrative relief of the Initial or Final Orders and the time limits for seeking judicial review of the Final Order.

(d) An Initial Order or decision shall include a statement of any circumstances under which the Initial Order or decision may, without further notice, become a Final Order.

(e) Findings of fact shall be based exclusively upon the evidence of record in the adjudicative proceeding and on matters officially noticed in that proceeding.

(4) If an individual serving or designated to serve as a hearing official becomes unavailable, for any reason, before rendition of the Final Order or Initial Order or decision, a substitute shall be appointed as provided in T.C.A. § 4-5-302. The substitute shall use any existing record and may conduct any further proceedings as are appropriate in the interest of justice.

(5) The hearing official may allow the parties a designated amount of time after conclusion of the hearing for the submission of proposed findings.

(6) Unless such period is required to be otherwise for compliance with applicable Federal regulations as specified in Tennessee Department of Human Services, State Rule 1240-05- 08-.01, or unless such period is waived or extended with the written consent of all parties, or for good cause shown, or unless any State or Federal law or regulation requires that the order be entered in a shorter period, an Initial Order or Final Order rendered pursuant to paragraph (2) shall be rendered in writing within ninety (90) days after conclusion of the hearing or after submission of proposed findings in accordance with paragraph (5).

(7) The hearing official shall send copies of the Initial and Final Order to each party.

(8) Rule 1240-05-01-.05 sets forth the process for Final Orders in Vocational Rehabilitation Services appeals.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-302, 4-5-314, 4-5-315, 4-5-318, 71-1-105(12), and 71-1-111; 29 U.S.C. § 722(c); and 34 C.F.R. § 361.57(e)(4) and (g).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed October 9, 1987; effective January 27, 1988. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-08-.03 PUBLIC ACCESS TO FINAL ORDERS

(1) The record of the hearing and the Final Order will remain on file in the Appeals and Hearings Division State Office for any further inspection as may be needed by the parties or their representatives.

(2) Hearing decisions are accessible to the public for inspection and copying, subject to the requirements of safeguarding information which is confidential under any provision of law or regulations. Those portions of any record that contain confidential information may be deleted prior to providing access to the Final Order.

(3) The hearing record as specified in State Rule 1240-05-07-.01 shall be maintained for, not less than three (3) years.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-218(a)-(d), 4-5-319, 71-1-105(12), and 71-1-111; 7 C.F.R. § 273.15(q)(1) and (5); 42 C.F.R. § 431.244(g); and 45 C.F.R. § 205.10(a)(14) and (19).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed July 10, 1980; effective August 25, 1980. Amendment filed December 17, 1982; effective March 17, 1983. Amendment filed September 30, 2004; effective December 14, 2004. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-08-.04 REINSTATEMENT OF ASSISTANCE OR SERVICES

(1) If the Final Order is in favor of the appellant and retroactive benefits are in order, authorization will be given for retroactive benefits to be made in specific amounts and for specific months as provided for by program rules or state or federal regulations. The retroactive benefits will in no instance be authorized for any month prior to the month of incorrect action.

(2) Any benefits which are reinstated shall be done so at the benefit level in effect during the time it was determined by the Final Order that the appellant was eligible.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-301, 71-1-105(12), and 71-1-111; and 45 C.F.R. § 205.10(a)(4)(ii)(K) and (a)(18).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 17, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-08-.05 RECOVERY OF ASSISTANCE

(1) When the Final Order upholds the local office, any benefits due to continuation of assistance or services pending the hearing decision will be subject to recovery according to the procedures of the Department or as otherwise provided by law or regulation for recovering benefits except as provided in paragraph (2).

(2) Vocational Rehabilitation services are subject to recovery where services were obtained through misrepresentation, fraud, collusion or criminal conduct on the part of the individual or his/her representative as provided in 1240-05-01-.05(5)(a).

History

• Authority: T.C.A. §§ 4-5-202, 4-5-317, 71-1-105(12), and 71-1-111; 29 U.S.C. § 722(c)(7); 7 C.F.R. § 273.15(s)(2); 34 C.F.R. § 361.57(b)(4)(i); 42 C.F.R. § 431.230(b); 42 C.F.R. § 431.231(b); 45 C.F.R. § 400.54; and 45 C.F.R. § 205.10(a)(6)(i).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-08-.06 REPEALED

History

• Authority: 45 C.F.R. § 205.10(a)(6)(i), 7 C.F.R. 273.15(s)(2), 42 C.F.R. 431.230(b), and 42 C.F.R. 431.231(b).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Repeal and new rule filed September 30, 2004; effective December 14, 2004. Amendment filed February 26, 2007; effective May 12, 2007.

Chapter 1240-05-09 Reconsideration and Appeal of Orders

Tenn. Comp. R. & Regs. 1240-05-09-.01 NOTICE OF RIGHT TO A PETITION FOR RECONSIDERATION AND/OR APPEAL

OF THE INITIAL ORDER.

(1) Except in Vocational Rehabilitation Services appeals, which are governed under State Rule 1240-05-01-.05(9)(e) and (10); Child and Adult Care Food Program appeals, which are governed under State Rule 1240-05-08-.01(9); and Summer Food Service Program appeals, which are governed under State Rule 1240-05-08-.01(8), written notice of the right to Petition for Reconsideration and/or Appeal shall accompany the Initial Order mailed to the parties.

(2) A party may, under T.C.A. § 4-5-316, submit to the Appeals and Hearings Division, or to the Administrative Procedures Division if a hearing official in the Department of State conducted the contested case proceeding, a Petition for Stay of Effectiveness of an Initial Order or Final Order within seven (7) days after its entry, unless otherwise provided by statute or stated in the Initial or Final Order. The Appeals and Hearings Division, or the Administrative Procedures Division as applicable, may take action on the Petition for Stay, either before or after the effective date of the Initial or Final Order.

(3) A Petition for Appeal from an Initial Order must be filed with the Administrative Procedures Division if the hearing official with the Department of State conducted the contested case proceeding, or if the hearing was conducted by a hearing officer from the Department of Human Services, then the appeal must be filed with the Appeals and Hearings Division of the Department within fifteen (15) days after entry of an Initial Order.

(a) Pursuant to T.C.A. § 4-5-315(c), the Petition for Appeal shall state its basis.

(b) Pursuant to T.C.A. § 4-5-315(e), the parties shall be permitted an opportunity to file briefs, and the Department may afford each party an opportunity to present oral argument.

(c) Pursuant to T.C.A. § 4-5-315(f), (g), (h) and (i):

1. The Appeals and Hearings Division may cause a transcript to be prepared at the Department’s expense, of such portions of the proceeding under review as the Appeals and Hearings Division considers necessary.

2. The Appeals and Hearings Division may render a Final Order disposing of the proceeding or may remand the matter for further proceedings with instructions to the person who rendered the Initial Order. Upon remanding a matter, the Appeals and Hearings Division may order such temporary relief as is authorized and appropriate.

3. A Final Order or an order remanding the matter for further proceedings pursuant to this subparagraph (c) shall be rendered and entered in writing within sixty (60) days after receipt of briefs and oral argument, unless that period is waived or extended with the written consent of all parties or for good cause shown.

4. A Final Order or an Order remanding the matter for further proceedings under this subparagraph (c), shall identify any difference between such order and the Initial Order, and shall include, or incorporate by express reference to the Initial Order, all matters required by T.C.A. § 4-5-314(c).

(4) Also, within fifteen (15) days after entry of an Initial Order, any party may file a Petition for Reconsideration with the hearing official stating the specific grounds upon which relief is requested.

(5) If an Initial Order is subject to both a timely Petition for Reconsideration and to a Petition for Appeal, the Petition for Reconsideration shall be disposed of first; and a new fifteen (15) day period shall start to run upon disposition of the Petition for Reconsideration.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-315, 4-5-317, 71-1-105(12), and 71-1-111.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-09-.02 NOTICE OF RIGHT TO A PETITION FOR RECONSIDERATION OF A FINAL

ORDER.

(1) Except in Vocational Rehabilitation Services appeals, which are governed under State Rule 1240-05-01-.05(9)(e) and (10); Child and Adult Care Food Program appeals, which are governed under State Rule 1240-05-08-.01(9); and Summer Food Service Program appeals, which are governed under State Rule 1240-05-08-.01(8), if a separate Final Order is entered following the entry of an Initial Order, written notice of the right to petition for reconsideration of the Final Order is to accompany the Final Order to the parties.

(2) Within fifteen (15) days following the date of the Final Order, any party aggrieved by a Final Order, may file a written Petition for Reconsideration which shall specify in detail the reasons for the request. A petition for reconsideration of a final order that has become a final order by operation of law when no party timely filed a petition for reconsideration of an initial order or when the petition for reconsideration of an initial order was denied is not permitted.

(3) The filing of a petition for reconsideration is not a prerequisite for seeking administrative or judicial review.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-317, 71-1-105(a)(12), and 71-1-111.
• Administrative History: Original rule filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-09-.03 EFFECT OF FILING OF PETITION FOR RECONSIDERATION OF THE FINAL

ORDER.

(1) The filing of a Petition for Reconsideration of the Final Order shall not supersede or delay the effective date of the Final Order.

(2) The Final Order shall take effect on the date entered by the Department and shall continue in effect until the Petition for Reconsideration shall be granted or until the Final Order is stayed, superseded, modified, or set aside in a manner provided by law.

(a) A party may, under T.C.A. § 4-5-316, submit to the Appeals and Hearings Division, or to the Administrative Procedures Division if a hearing official in the Department of State conducted the contested case proceeding, a Petition for Stay of Effectiveness of an Initial Order or Final Order within seven (7) days after its entry, unless otherwise provided by statute or stated in the Initial or Final Order. The Appeals and Hearings Division, or the Administrative Procedures Division as applicable, may take action on the Petition for Stay, either before or after the effective date of the Initial or Final Order.

(3) If a change affecting the recipient’s benefits/services occurs while the reconsideration is pending, action to implement that change will not be delayed pending the decision concerning reconsideration of the Final Order.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-316, 4-5-318, 71-1-105(12), and 71-1-111; 7 C.F.R. § 273.15(k)(2)(iii); and 45 C.F.R. § 205.10(a)(6)(i)(B).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-09-.04 RECONSIDERATION OF INITIAL/FINAL ORDER

(1) Within twenty (20) days of receiving the Petition for Reconsideration of the Initial or Final Order, the hearing official or the Commissioner or his/her designated representative, who rendered the Initial or Final Order, which is the subject of the Petition for Reconsideration, shall enter a written order either:

(a) Denying the petition, as provided in T.C.A. § 4-5-317(c);

(b) Granting the petition and setting the matter for further proceedings, as provided in T.C.A. § 4-5-317(c); or (c) Granting the petition and issuing a new Initial or Final Order, as provided in T.C.A. § 4- 5-317(c).

(d) If no action has been taken on the Petition for Reconsideration within twenty (20) days, the petition shall be deemed to have been denied at the expiration of the twenty (20) day period, as provided in T.C.A. § 4-5-317(c).

(2) As provided in T.C.A. § 4-5-317(d), an order granting the petition and setting the matter for further proceedings shall state the extent and scope of the proceedings which shall be limited to argument upon the existing record; and no new evidence shall be introduced, unless the party proposing such evidence shows good cause for his/her failure to introduce the evidence in the original proceeding.

History

• Authority: T.C.A §§ 4-5-202, 4-5-317, 71-1-105(12), and 71-1-111.
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-09-.05 ADMINISTRATIVE RECOURSE WHEN AGGRIEVED BY FINAL ORDER AFFECTING

VOCATIONAL REHABILITATION SERVICES UNDER INDIVIDUAL PLANS OF EMPLOYMENT.

When an individual being provided Vocational Rehabilitation Services under an Individualized Plan of Employment (IPE) is dissatisfied with the Impartial Hearing Official’s decision resulting from the Fair Hearing as set forth in Tennessee State Rule 1240-05-01-.05(9), the individual may request review as provided in Rule 1240-05-01-.05(9) and (10).

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105(12); 29 U.S.C. § 722(c); 34 C.F.R. § 361.48; and 34 C.F.R. § 361.57(e)(4) and (g).
• Administrative History: Original rule filed January 20, 1984; effective February 19, 1984. Repeal and new rule filed September 30, 2004; effective December 14, 2004. Amendment filed February 26, 2007; effective May 12, 2007.

Chapter 1240-05-10 Judicial Review

Tenn. Comp. R. & Regs. 1240-05-10-.01 NOTICE OF ENTITLEMENT TO JUDICIAL REVIEW

Written notice of the right to seek judicial review of the Final Order and the time within which to file a Petition for Judicial Review of the Final Order shall be contained in the Initial and Final Order sent to the appellant or other party affected by adverse administrative action of the Department.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-314, 4-5-322, and 71-1-105(12).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-10-.02 METHOD FOR FILING

(1) Proceedings for review are instituted by filing a Petition for Review in a Chancery Court of Tennessee having jurisdiction within sixty (60) days after the Final Order is entered by the hearing official or by the Commissioner or his/her designated representative. Except as provided in paragraph (2), the provisions of T.C.A. § 4-5-322 are applicable to judicial review proceedings.

(2) Judicial Review of Child Support Administrative Decisions.

(a) Except as provided in subparagraph (b), the judicial review of the administrative hearing decisions of child support cases heard by the Department of Human Services under T.C.A. § 36-5-1003 shall be conducted by the court having jurisdiction of the support order provided by T.C.A. § 4-5-322, not by the court in which the petitioner resides or the Chancery Court of Davidson County, Tennessee as applicable to petitions for judicial review in contested cases involving other programs administered by the Department of Human Services.

(b) Venue for Petitions for Judicial Review in Child Support Cases When No Previous Support Order Exists or an Out-of-State Order is Being Enforced by the Department of Human Services.

1. If any administrative action of the Department involving the Title IV-D child support program is not based upon an existing order of support or paternity, the party seeking judicial review shall file the Petition for Review of the Department’s actions in the chancery court of the county of the person’s residence, or the county where an entity was served with an administrative subpoena or was notified of a request for information.

2. If the Department is enforcing any order of a Title IV-D agency of any other state and there has been no assumption of jurisdiction of the support order by a Tennessee court, the Petition for Judicial Review shall be filed in the county of the residence of the person in Tennessee against whom the request, administrative order or administrative subpoena is issued or the county where an entity was served with an administrative order, administrative subpoena or was notified of a request for information.

(c) Pursuant to T.C.A. § 36-5-101(f)(1) and 42 U.S.C.S § 666 (a)(9)(C), no judicial review may result in the forgiveness or retroactive modification of any child or spousal support arrearages.

(d) The scope of judicial review of an administrative decision involving the child support program shall be limited to the review of the record of the Department’s hearing as otherwise provided in T.C.A. § 4-5-322 for all other cases involving judicial review of agency administrative actions under the Uniform Administrative Procedures Act.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-322, 36-5-101(f)(1), 36-5-1003, 71-1-105(12), and 71-1-111; and 42 U.S.C.S § 666 (a)(9)(C).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed July 10, 1980; effective August 25, 1980. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-10-.03 CLERICAL MISTAKES

(1) Prior to any appeal being perfected by either party to Chancery Court or to such other court with jurisdiction to conduct a judicial review, clerical mistakes in orders or other parts of the record, and errors therein arising from oversight or omissions may be corrected by the hearing official at any time on the initiative of either the hearing official or on motion of any party and after such notice, if any, as the hearing official may require.

(2) The entry of a corrected order will not affect the dates of the original appeal time period.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-219, and 71-1-105(12).
• Administrative History: Original rule filed February 26, 2007; effective May 12, 2007.

Chapter 1240-05-11 Repealed

Tenn. Comp. R. & Regs. 1240-05-11 Repealed

RULES

OF THE TENNESSEE DEPARTMENT OF HUMAN SERVICES

COMMUNITY AND FIELD SERVICES DIVISION

REPEALED

Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105; and 71-3-501, et seq.; and Acts 2000, Ch. 981, §§ 10 and 14. Administrative History: Original rule filed January 19, 1977; effective February 18, 1977.

Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed May 9, 1985; effective June 8, 1985. Amendment filed December 4, 1991; effective January 18, 1992. Repeal filed September 29, 2000; effective December 13, 2000.

Chapter 1240-05-12 Adoption of Rules

Tenn. Comp. R. & Regs. 1240-05-12-.01 PROPOSAL OF RULES

(1) The Department shall adopt such rules as it deems necessary to secure satisfactory compliance with the provisions of any state or federal statutes, regulations or waivers for any programs that are within the responsibilities, authority and duties of the Department of Human Services.

(2) The Commissioner shall cause to be prepared a notice of the proposal of such rules, or of any amendments or repeals of existing rules which shall be published as required by law; provided, public necessity or emergency rules that may be authorized by law shall not require publication of the notice prior to their implementation upon approval by the Attorney General and Reporter, but such rules shall comply with all other notice and hearing provisions that may be necessary to make those rules permanent that are required by law subsequent to the implementation of the public necessity or emergency rules.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-207, and 71-1-105(12).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 17, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-12-.02 LEGAL AUTHORIZATION FOR RULES AND PROCEDURE FOR RULEMAKING

The Department of Human Services’ rules will be promulgated in accordance with the requirement of Title 4, Chapter 5 of the Tennessee Code Annotated, the provisions of state or federal laws, regulations or waivers governing the operation of the Department’s programs and the rules of the Secretary of State’s Administrative Procedures Division regarding the procedures for promulgating regulations for agencies of the State of Tennessee.

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105(12).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 17, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-12-.03 PUBLIC ACCESS TO RULES AND REGULATIONS

(1) The Department shall keep at its principal office, or publish on its website, a complete and current set of rules and regulations of the Department and its rules shall constitute public records.

(2) It shall be the duty of the Department to keep a supply of copies of its rules and to furnish printed copies of such rules upon the request of any interested persons. The Department may charge a reasonable fee for providing copies as provided in T.C.A. § 4-5-218 and Tennessee Department of Human Services Rules, Chapter 1240-09-01.

ADOPTION OF RULES CHAPTER-1240-05-12

History

• Authority: T.C.A. §§ 4-5-202, 4-5-218, and 71-1-105(12).
• Administrative History: Original rule filed January 19, 1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 17, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Tenn. Comp. R. & Regs. 1240-05-12-.04 PETITION FOR RULES

Except where the right to petition for a rule is restricted by statute to a designated group or except where the form or procedure for such petition is otherwise prescribed by statute, any municipality, corporation or any five (5) or more persons having an interest in a rule may petition the Department of Human Services requesting the adoption, amendment or repeal of such rule. The petition shall follow the requirements of T.C.A. § 4-5-201.

History

• Authority: T.C.A. §§ 4-5-201 and 71-1-105(12).
• Administrative History: Original rule filed January 19,1977; effective February 18, 1977. Amendment filed December 17, 1982; effective March 16, 1983. Amendment filed February 26, 2007; effective May 12, 2007.

Chapter 1240-05-13 Child Care Agency Board of Review

Tenn. Comp. R. & Regs. 1240-05-13-.01 PURPOSE AND SCOPE

(1) These rules shall apply to the procedures of the Child Care Agency Board of Review for the determination of the status of licenses for the operation of child care agencies issued by either the Department of Children’s Services pursuant to T.C.A. §§ 37-5-501 et seq. or for the operation of a child care agency by the Department of Human Services pursuant to T.C.A. §§ 71-3-501 et seq., and for determining the status of any civil penalties imposed by the Department of Human Services.

(2) Any conflict between these rules and the rules governing the individual class of child care agency licensed by the Department of Children’s Services or by the Department of Human Services shall be governed by these rules. Any conflicts between these rules and the licensing law are governed by the licensing law.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, and 71-3-501, et seq.; and Acts 2000, Ch. 981, §§ 11 and 14.
• Administrative History: Original rule filed September 29, 2000; effective December 13, 2000.

Tenn. Comp. R. & Regs. 1240-05-13-.02 DEFINITIONS

(1) Applicant. The person or entity seeking an initial annual license or the issuance or renewal of any annual or extended license from the Department of Children’s Services or the Department of Human Services.

(2) Application. The form for, and the process of, applying for a license from the Departments of Children’s Services or Human Services.

(3) Child care agency or agency. The person or entity providing child care as defined by the licensing law in T.C.A. §§ 37-5-501 et seq. and 71-3-501 et seq. and the rules, respectively, of the Departments of Children’s Services and Human Services.

(4) Child Care Agency Board of Review, Board of Review or Board. The entity established by T.C.A. §§ 71-3-510 and 37-5-515 to hear the appeals of the denial, revocation, or the restriction or limitation, other than summary suspensions, of licenses for child care agencies issued by the Departments of Children’s Services and Human Services, and which adjudicates civil penalties imposed by the Department of Human Services against a child care agency under its jurisdiction.

(5) Civil penalty. A financial sanction imposed by the Department of Human Services against a child care agency that has violated a licensing regulation.

(6) Commissioner. The executive head of the Department of Children’s Services or Human Services, as the context requires.

(7) Denial. The decision of the Department not to issue a license.

(8) Department. As the context requires, the term “Department”, without further description, refers to either the Department of Children’s Services or the Department of Human Services and, in such case, is dependent upon which class of child care agency is under consideration by the Department with licensing authority over the child care agency or which class of child care agency governed by the applicable Department is under consideration by the Child Care Agency Board of Review.

(9) Hearing Official. The administrative law judge or hearing officer assigned by law to conduct hearings before the Child Care Agency Board of Review.

(10) Law. The statutory or regulatory provisions affecting the operation of a child care agency.

(11) License. A permit issued by the Department of Children’s Services or the Department of Human Services to a child care agency, authorizing the licensee to provide child care in accordance with provisions of the license, the law, and the regulations of the Departments of Children’s Services or Human Services.

(12) Licensee. The person, agency, group, or entity to whom or to which a license to operate a child care agency is issued by the Departments of Children’s Services or Human Services.

(13) Probation. The process used by the Child Care Agency Board of Review or a panel of the Board as part of the hearing on an appeal by a child care agency to permit a child care agency to continue operation under conditions set by the Board or panel which may allow the Board to determine if the agency can provide adequate care for children under its supervision consistent with the licensing law and regulations governing that class of child care agency.

(14) Provisional license. A license issued to a child care agency for one hundred twenty (120) days for the purpose of allowing the child care agency to demonstrate their ability to attain and maintain compliance with all licensing laws and regulations. Such provisional license may continue in effect, unless suspended if the Department fails to issue a continuous license after the one hundred twenty (120) day period if the Department determines an extension is necessary to allow the child care agency to demonstrate ability to maintain compliance with licensing laws and regulations.

(15) Reapplication. Application for a new license following denial or revocation of a license.

(16) Restricted license. A license which, either at the time of issuance, or during the license’s existence, is reduced in its operational authority by the Departments of Children’s Services or Human Services so that the child care agency’s ability to provide certain child care related services is limited because the Department has determined that one or more areas of the agency’s operations are not in compliance with child care laws or regulations or the agency’s operations are, or have posed, a risk to the health, safety or welfare of children in the agency’s care or the agency’s operations pose the potential of such risk. A restricted license may also be imposed by the Child Care Agency Board of Review as part of its review of the licensing status of a child care agency in the same manner, and for the same reasons, as such a license is issued or imposed by either Department. A restricted license may be appealed to the Child Care Agency Board of Review.

(17) Revocation. The permanent removal of an existing license.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, 71-1-105(a)(5) and (a)(12), 71-3-501, et seq., and 71-3- 510.
• Administrative History: Original rule filed September 29, 2000; effective December 13, 2000. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-13-.03 COMPOSITION AND DUTIES OF THE BOARD

(1) The Board membership shall be composed of the Commissioners of Health and Education or their designees, the Executive Director of the Commission on Children and Youth or designee, and a member from one (1) current or previous standards committee from the Departments of Children’s Services and Human Services. Four (4) persons shall be selected from a pool of up to twelve (12) representatives at-large. These four (4) persons shall be selected by the five (5) members designated above as follows:

(a) Four (4) shall be selected to serve for one (1) year;

(b) Four (4) shall be selected to serve for two (2) years; and (c) Four (4) shall be selected to serve for three (3) years.

(d) Thereafter, each at-large representative shall be selected to serve for terms of three (3) years or until his or her successor is selected.

(e) Vacancies shall be filled for unexpired terms in the same manner as in the case of original appointments.

(2) In reviewing licensing actions under this chapter, the Board of Review shall consist of nine (9) persons selected from the Board’s membership.

(3) A quorum of the Board shall consist of five (5) persons.

(4) In establishing a quorum for the Board to conduct its review of the licensing actions of the Departments, the chair shall randomly select the names of the at-large members of the Board for the Board’s current licensing review action from the pool of twelve (12) persons selected pursuant to paragraph (1) until the nine (9) member composition is reached, or, if that is not possible, until a quorum is reached.

(5) Until a Chair is selected by the Board, the Commissioner of Education or the Commissioner’s designee shall serve as the Chair of the Board. The Board shall elect a Vice-Chair who shall serve in the absence of the Chair. If the Chair resigns, is unable to perform the duties of the Chairperson, is removed or the Chair’s term on the Board expires, the Commissioner of Education shall appoint a new Chair until the Board can elect a Chair. The Vice-Chair shall have authority to sign all orders of the Board in the absence or inability to act by the Chair, and can sign orders for actions of the panels pursuant to paragraph (6).

(6) In order to complete the work of the Board, the Chair may appoint one or more panels of the Board with a quorum of five (5) members, at least two (2) of whom shall be randomly selected at-large members selected by the Chair. The Chair of the Board shall appoint the Chair of the panel. The panel shall have complete authority to hear any case under the Board’s jurisdiction and shall have complete authority to enter any necessary orders concerning licensing actions conducted before the Board. Any orders of the panel shall be signed by the Chair of the panel, or in the absence or inability to act by the panel Chair, by the Board Chair or Vice-Chair.

(7) Consistent with the licensing laws and regulations governing the child care agency, it is the duty of the Board to impartially consider the status of the licenses of all child care agencies whose cases are presented to the Board.

(8) In rendering its decisions, the Board, consistent with the provisions of paragraph (7), shall be guided at all times by the best interests of the children in the care of the child care agency.

(9) The Board may receive legal advice on its operations and procedures from the Office of General Counsel of the Departments of Children’s Services or Human Services, consistent with the provisions of T.C.A. §§ 4-5-301 et seq.

(10) The Board shall meet quarterly, and more often as necessitated by the Board’s duties. It shall receive periodic training in its duties and procedures for the conduct of Board hearings from the program and legal staff of the Department of Human Services, in consultation and with the assistance of similar staff from the Department of Children’s Services.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, 71-1-105(a)(5) and (a)(12), 71-3-501, et seq., and 71-3- 510.
• Administrative History: Original rule filed September 29, 2000; effective December 13, 2000. Amendments filed June 13, 2025; effective September 11, 2025.

Tenn. Comp. R. & Regs. 1240-05-13-.04 RECORDING SECRETARY

(1) The Board shall have a Recording Secretary who shall be a member of the professional staff of the Department of Human Services based upon an inter-agency agreement between the Departments of Children’s Services and Human Services. In the Recording Secretary’s absence or inability to act, a member of the Department of Human Services’ professional staff may carry out the Recording Secretary’s duties.

(2) The Recording Secretary shall be responsible for maintaining the records of the Board, setting hearings with the Administrative Procedures Division of the Secretary of State’s Office, filing any necessary documents with the Administrative Procedures Division of the Secretary of State’s Office involving the initiation of licensing actions before the Board by the Departments, arranging for the attendance of Board members at the hearings, arranging the facilities to conduct the hearings before the Board, arranging hearing dates with parties and notification of parties of the times, dates and places of hearings or any continuances or rescheduling of hearings, and such other duties as may be necessary to accommodate the business of the Board.

(3) Timely appeals received by the Commissioner’s office or the Department’s licensing director shall be sent within two (2) business days to the Recording Secretary. The Recording Secretary shall keep a log of all appeals and the date an appeal was received in the Recording Secretary’s office.

(4) Upon receipt of the timely filed appeal, the Recording Secretary will contact the Administrative Procedures Division of the Secretary of State’s Office within one (1) business day to docket the appeal and to make any other arrangements for the hearing of the case.

Within three (3) business days, the Recording Secretary will file a copy of the appeal request, and a copy of the notice of licensing action by the Department which resulted in the appeal, with the Administrative Procedure’s Division of the Secretary of State’s Office.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, and 71-3-501, et seq.; and Acts 2000, Ch. 981, §§ 11 and 14.
• Administrative History: Original rule filed September 29, 2000; effective December 13, 2000.

Tenn. Comp. R. & Regs. 1240-05-13-.05 HEARING PROCEDURES

(1) Hearing Dates, Continuances and Substitute Administrative Law Judge.

(a) Hearing Date and Continuances.

1. The hearing for a timely filed appeal regarding the denial, revocation, or other restriction or limitation of a child care agency license imposed by the Department, other than the summary suspension of the license or the placement of a child care agency on probation by the Department, shall be heard by the Board of Review within thirty (30) days of the date of service of the notice of denial, revocation, restriction or limitation, unless, for good cause, the hearing date is continued. Summary suspensions of licenses shall be heard as provided in the rules or procedures of the Department.

2. A hearing regarding the imposition of a civil penalty imposed by the Department of Human Services shall be heard within ninety (90) days of the notice of the penalty unless, for good cause shown, the hearing date is continued. The Department shall not attempt recovery of a civil penalty until the time for appeal has expired, or, if appealed, the appeal process before the Board, has been exhausted.

3. For good cause as stated in an order entered on the record, the Board or the Administrative Law Judge may continue a hearing. Prior to a case being heard by the Board, the Administrative Law Judge may issue a continuance order. In order to protect the children in the care of the agency from any risk posed to their health, safety and welfare, the Board or Administrative Law Judge shall re-set the hearing at the earliest date that circumstances permit.

(b) Substitute Administrative Law Judges.

1. Substitute Administrative Law Judges in Department of Human Services Cases.

(i) If the Administrative Procedures Division of the Office of the Secretary of State certifies by letter to the Recording Secretary of the Board that the Division’s contested case docket prevents the scheduling of a hearing before the Board within the initial timeframes set forth in this chapter regarding the appeal of the denial or revocation, or restriction or other limitation of a license, other than a summary suspension of license, or for the review of a civil penalty imposed by the Department of Human Services, then the Department of Human Services shall have the authority to obtain an attorney who shall act as the Administrative Law Judge to conduct the proceedings before the Board. The substitute Administrative Law Judge may be obtained by contract with a private attorney or by contract or agreement with another state agency.

(ii) The substitute Administrative Law Judge shall have the same authority as an Administrative Law Judge of the Department of State. The hearing may be continued by order of the Board for the purpose of obtaining a substitute Administrative Law Judge. The continuance order in such case may be entered by the Board, the panel Chair, or the Vice-Chair of the Board.

2. Substitute Administrative Law Judges in Department of Children’s Services Cases.

(i) If the Administrative Procedures Division of the Office of the Secretary of State certifies by letter to the Recording Secretary of the Board that the Division’s contested case docket prevents the scheduling of a hearing before the Board within the initial timeframes set forth in this chapter regarding the appeal of the denial or revocation, or restriction or other limitation of a license, other than a summary suspension of license, then the Department of Children’s Services shall have authority to appoint a Hearing Officer from the Department to conduct the proceedings before the Board.

(ii) The substitute hearing officer shall have the same authority as an Administrative Law Judge of the Department of State. The hearing may be continued by order of the Board for the purpose of obtaining a substitute Hearing Officer. The continuance order in such case may be entered by the Board or panel Chair or the Vice-Chair of the Board.

(2) If timely appeal was made to the appropriate Department, then, pending the hearing upon the denial or revocation of a license, the child care agency may continue to operate prior to the decision of the Board or panel unless the license is summarily suspended as provided by the rules of the appropriate Department.

(3) A summary suspension order entered by the appropriate Department may be lifted or modified by that Department following its entry by that Department before or after a case is docketed without further approval of the Board or panel.

(4) After a case is docketed and prior to a hearing before the Board, any settlement or dismissal of the case involving the denial, revocation, restriction or other limitation of a license other than a summary suspension, or, any settlement or dismissal involving the imposition of a civil penalty by the Department of Human Services, shall be approved by an order of the Board Chair or panel Chair, or in the Chair’s absence or inability to act, by the Vice-Chair of the Board, or, in the absence or inability to act by the panel Chair, then by the Board Chair or Vice-Chair. Prior to approval, the Chair or Vice-Chair shall poll members of the Board or panel to determine if there is agreement of the Board members regarding approval of the settlement or dismissal and the Recording Secretary or designee shall maintain a record of the discussion and vote as required by T.C.A. §§ 4-5-312 and 4-5-319.

(5) Hearing Procedures.

(a) Hearings shall be conducted pursuant to the provisions of the Administrative Procedures Act in Title 4, Chapter 5, Part 3, of the Tennessee Code Annotated, and a record of the proceedings shall be maintained as required by T.C.A. § 4-5-319.

(b) Any party may be represented by counsel of the party’s choice.

(c) Hearing testimony may be taken by telephone in a manner that allows all parties present to hear the testimony, if approved by the hearing official.

(d) Decisions of the Board shall be based upon a majority vote of the Board or panel members present and shall be based upon a preponderance of the evidence. The decisions shall be based upon a consideration of the seriousness of the violations of the licensing regulations by the child care agency, the effect of the violations on the care of children by the child care agency, the relevant history of violations of licensing regulations by the agency and the relevant history of the agency’s ability to maintain compliance, the corrective measures taken by the child care agency to remedy the violations, and the willingness and ability of the licensee to correct any violations or to maintain compliance with the Department’s regulations.

(e) Content of Board Orders, Entry, Filing and Record of Board Orders.

1. An order of the Board or panel shall include conclusions of law, the policy reasons therefor, and findings of fact for all aspects of the order, including the remedy prescribed and, if applicable, the action taken on a petition for stay of effectiveness of the Board’s or panel’s order. Findings of fact, if set forth in language that is no more than mere repetition or paraphrase of the relevant provision of law, shall be accompanied by a concise and explicit statement of the underlying facts of record to support the findings, and a reference, if appropriate, to the exhibits entered in the case.

2. The final order, initial order or decision must also include a statement of the available procedures and the time limits for seeking reconsideration or other administrative relief and the time limits for seeking judicial review of the final order. An initial order or decision shall include a statement of any circumstances under which the initial order or decision may, without further notice, become a final order.

3. Any orders resulting from hearings before the Board or a panel of the Board shall be prepared by the party designated by the Board or panel and shall be signed by the Board or panel Chair, or Vice-Chair of the Board in the absence or inability of the Board Chair to act, or by the Board Chair or Vice-Chair in the absence or inability of the panel Chair to act. The orders shall be delivered to the Recording Secretary following signature and shall be filed by the Recording Secretary with the Administrative Procedures Division of the Office of the Secretary of State within five (5) business days following signature by the appropriate Chair. Copies of the signed orders shall be provided by the Recording Secretary to all parties.

4. The Recording Secretary shall maintain copies of all orders in the records of the Board.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, and 71-3-501, et seq.; and Acts 2000, Ch. 981, §§ 11 and 14.
• Administrative History: Original rule filed September 29, 2000; effective December 13, 2000.

Tenn. Comp. R. & Regs. 1240-05-13-.06 BOARD PROBATION AND RESTRICTED LICENSES

(1) The Board or panel, as part of its decision regarding the status of the license, may direct that the child care agency be allowed to operate on a probationary or conditional status, and may grant or continue the license with any restrictions or conditions on the agency’s authority to provide care.

(2) Such restrictions or conditions on the agency’s authority to provide care may include, but are not limited to, limitations on the agency’s ability to provide transportation or food service, enrollment of the children at the agency, the agency’s hours of operation, the agency’s use of certain parts of the agency’s physical facilities or any other function of the child care agency that the Board or panel determines should be restricted or modified in order to protect the children in the care of the agency.

(3) The specific limitations shall be set forth in the Board’s or panel’s order.

(4) No probationary or conditional status may be continued for more than six (6) months without further review by the Board or panel.

(5) If the Board or panel issues a restricted or conditional license containing limits or conditions for the agency’s operations, the licensee may seek removal of the restrictions. If satisfied that circumstances no longer warrant further restrictions or conditions on the license, the Board may remove any or all of the restrictions or conditions. The Board or panel may, at anytime, modify or remove the restrictions on the license.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, and 71-3-501, et seq.; and Acts 2000, Ch. 981, §§ 11 and 14.
• Administrative History: Original rule filed September 29, 2000; effective December 13, 2000.

Tenn. Comp. R. & Regs. 1240-05-13-.07 WAIVER OF REAPPLICATION WAITING PERIODS

(1) A licensee may request from the Board at a hearing on a denial or revocation of the agency’s license a waiver of the reapplication waiting period set forth in T.C.A. §§ 37-5-514(f) and 71- 3-509(g) for first and second denials or revocations of licenses. A former licensee may also request a separate subsequent hearing before the Board or a panel in a written request made to the Commissioner for such a hearing. The Commissioner may elect to conduct this review.

(2) No waiver may be requested by the licensee or granted by the Board or a panel, or by the Commissioner, following a third denial or revocation of the agency’s license.

(3) The agency must show to the Child Care Agency Board of Review’s or the Commissioner’s satisfaction, by a preponderance of the evidence, that the agency has corrected the deficiencies which led to the denial or revocation, and that the child care agency can demonstrate that it has the present and future ability, and is willing, to maintain compliance with licensing laws or regulations.

(4) The decision of the Board or panel, or the Commissioner, shall be reduced to an order, which shall be a final order pursuant to Title 4, Chapter 5, Part 3, and may be appealed pursuant to § T.C.A. 4-5-322.

History

• Authority: T.C.A. §§ 4-5-201, et seq., 71-1-105, and 71-3-501, et seq.; and Acts 2000, Ch. 981, §§ 11 and 14.
• Administrative History: Original rule filed September 29, 2000; effective December 13, 2000.

Chapter 1240-05-14 Intentional Program Violations

Tenn. Comp. R. & Regs. 1240-05-14-.01 unless contrary to the court order. If disqualification is ordered but a date for initiating the disqualification period is not specified, the Department shall initiate the disqualification period for currently eligible individuals within forty-five (45) days of the date the disqualification was ordered. Any other court-imposed disqualification shall begin within forty-five (45) days of the date the court found a currently eligible individual guilty of civil or criminal misrepresentation or fraud.

(a) If the individual is not eligible for the program at the time the disqualification period is to begin, the period shall be postponed until the individual applies for and is determined eligible for benefits.

(b) Once a disqualification penalty has been imposed against a currently participating household member, the period of disqualification shall continue uninterrupted until completed regardless of the eligibility of the disqualified member’s household.

However, the disqualified individual or his/her household shall continue to be responsible for repayment of the overissuance which resulted from the disqualified member’s intentional program violation regardless of its eligibility for program benefits.

(3) Notification of Disqualification. If the court finds that the household member committed intentional program violation, the Department shall provide written notice to the household member. The notice shall be provided prior to disqualification, whenever possible. The notice shall inform the household member of the disqualification and the date that disqualification will take effect. The Department shall also provide written notice to the remaining household members, if any, of the allotment they will receive during the period of disqualification or that they must reapply because the certification period has expired. In addition, the Department shall provide the written demand letter.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(a)(12), and 71-5-314; and 7 C.F.R. § 273.16(f) and (g).
• Administrative History: Original rule file d May 25, 1983; effective June 24, 1983. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed November 7, 2022; effective February 5, 2023.

Tenn. Comp. R. & Regs. 1240-05-14-.02 DEFINITION OF INTENTIONAL PROGRAM VIOLATIONS

For purposes of determining through Administrative Disqualification Hearings whether or not a person has committed an intentional program violation, intentional program violations shall consist of having intentionally:

(1) Made a false or misleading statement or having misrepresented, concealed, or withheld facts related to the SNAP Program; or (2) Traded SNAP benefits for guns, ammunition, explosives, or controlled substances as defined in 21 U.S.C. § 802; or (3) Committed any act that constitutes a violation of the Food Stamp Act, the SNAP Program regulations, or any State statute relating to the use, presentation, transfer, acquisition, receipt, or possession of SNAP benefits or ATPs.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105, and 71-5-314; and 7 C.F.R. § 273.16.
• Administrative History: Original rule filed April 30, 1979; effective July 30, 1979. Amendment filed December 17, 1982; effective March 16, 1983. Repeal and new rule filed May 25, 1983; effective June 24, 1983. Amendment filed June 13, 1997; effective August 27, 1997. Amendments filed November 7, 2022; effective February 5, 2023.

Tenn. Comp. R. & Regs. 1240-05-14-.03 NOTIFICATION TO APPLICANT HOUSEHOLDS

The Department shall inform the household in writing of the disqualification penalties for intentional program violations each time it applies for program benefits.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(a)(12), and 71-5-314.
• Administrative History: Original rule filed April 30, 1979; effective July 30, 1979. Amendment filed December 17, 1982; effective March 16, 1983. Repeal and new rule filed May 25, 1983; effective June 24, 1983. Amendment filed June 13, 1997; eff ective August 27, 1997. Amendments filed November 7, 2022; effective February 5, 2023.

Tenn. Comp. R. & Regs. 1240-05-14-.04 DISQUALIFICATION HEARINGS

The Department shall conduct Administrative Disqualification Hearings for individuals accused of intentional program violations in accordance with the requirements outlined in this section. An Administrative Disqualification Hearing shall be initiated by the Department in cases in which the Department has sufficient documentary evidence to substantiate that an individual has committed one or more acts of intentional program violation as defined by Rule 1240- 05-14-.02. Such cases may include those in which the Department believes the facts of the individual case do not warrant civil or criminal prosecution through the appropriate court system. Other cases may be those previously referred for prosecution but for which prosecution was declined by the appropriate legal authority and in previously referred cases where no action was taken within a reasonable period of time and the referral was formally withdrawn by the Department. The Department may initiate an Administrative Disqualification Hearing regardless of the current eligibility of the individual. The disqualification period for nonparticipants at the time of the hearing decision shall be deferred until the individual applies for and is determined eligible for program benefits. If the Department does not initiate Administrative Disqualification procedures or refer for prosecution a case involving an overissuance caused by a suspected act of intentional program violation, the Department shall take action to collect the overissuance by establishing an inadvertent household error claim against the household. The burden of proving intentional program violation is on the Department. The Department shall not initiate an Administrative Disqualification Hearing against an accused individual whose case is currently being referred for prosecution or subsequent to any action taken against the accused individual by the prosecutor or court of appropriate jurisdiction, if the factual issues of the cases arise out of the same or related circumstances.

(1) Consolidation of Administrative Disqualification Hearing with Fair Hearing. The Department may combine a Fair Hearing (as defined in 1240-05-02-.01(p)) and an Administrative Disqualification Hearing into a single hearing if the factual issues arise out of the same or related circumstances and the household receives prior notice that the hearings will be combined. If the Disqualification Hearing and Fair Hearing are combined, the Department shall follow the time frames for conducting Disqualification Hearings. And, if the hearings are combined for the purpose of settling the amount of the claim at the same time as determining whether or not an intentional program violation has occurred, the household shall lose its right to a subsequent Fair Hearing on the amount of the claim. However, the Department shall, upon household request, allow the household to waive the thirty (30) day advance notice period required by law when the Disqualification Hearing and Fair Hearing are combined.

(2) Disqualification Hearing Procedures.

(a) The Department shall provide Administrative Disqualification Hearings only at the State level; however, these hearings may be conducted in any of its project areas.

(b) The Department may use the same hearing officials for Disqualification Hearings and Fair Hearings or designate hearing officials to conduct Disqualification Hearings only.

(c) At the Disqualification Hearing, the hearing official shall advise the household member or representative that they may refuse to answer questions during the hearing.

(d) Within ninety (90) days of the date the household member is notified in writing that a hearing initiated by the Department has been scheduled, the Department shall conduct the hearing, arrive at a decision, and notify the household member and the local office of the decision. The household member or representative is entitled to a postponement of the scheduled hearing provided that the request for postponement is made at least ten (10) days in advance of the date of the scheduled hearing. However, the hearing shall not be postponed for more than a total of thirty (30) days and the Department may limit the number of postponements to one. If the hearing is postponed, the above time limits shall be extended for as many days as the hearing is postponed.

(e) The Department shall publish clearly written rules of procedure for Disqualification Hearings and shall make these procedures available to any interested party upon request.

(3) Advance Notice of Hearing.

(a) The Department shall provide written notice to the household member suspected of an intentional program violation at least thirty (30) days in advance of the date a Disqualification Hearing by the Department has been scheduled. If mailed, the notice shall be sent either by first class mail or certified mail, return receipt requested. The notice may also be provided by any other reliable method. If the notice is sent using first class mail and returned as undeliverable, the hearing may still be held. The thirty (30) day notice period begins upon the date of the notice. The notice shall contain at a minimum:

1. The date, time, and place of the hearing;

2. The charge(s) against the household member;

3. A summary of the evidence, and how and where the evidence can be examined;

4. A warning that the decision will be based solely on information provided by the SNAP Office if the household fails to appear at the hearing;

5. A statement that the household member or representative will have ten (10) days from the date of the scheduled hearing to present good cause failure to appear in order to receive a new hearing;

6. A warning that a determination of intentional program violation will result in disqualification either temporarily or permanently as required by 1240-05-14-.01 or current Federal Law or Federal Regulations at the time the decision is rendered. The Department will also include a statement of which penalty it believes to be applicable in the case scheduled for hearing;

7. A listing of the household member’s rights;

8. A statement that the hearing does not preclude the State or Federal Government from prosecuting the household member of intentional program violation in a civil or criminal court action nor from collecting the overissuance; and 9. A statement that the individual can call the county SNAP Office to get the name and phone number (if available) or someone who can give free legal advice. If free legal advice is not available, the county office shall provide, when called, the phone number of a lawyer referral service of the local bar association.

(b) A copy of the Department’s published hearing procedures shall be attached to the thirty (30) day advance notice or the advance notice shall inform the household of its right to obtain a copy of the Department’s published hearing procedures upon request.

(c) If no proof of receipt of notice of the disqualification hearing is obtained, a timely showing of non-receipt by the household member shall be considered good cause for not appearing at the hearing. A “timely showing” because of alleged failure to receive the written notice shall be made to the Department by the household member by a sworn, written statement signed by the household member presented to the Department’s hearing official who rendered the decision on the household member’s case within thirty (30) days of the date of written notice of the decision made at the hearing.

(d) Good cause for not appearing at the hearing due to alleged non-receipt of the written notice shall include a sworn, written statement of the household member that:

1. The mail was misdelivered by the postal service, or the mail was destroyed or inaccessible due to circumstances beyond the household’s control. Failure of any member of the household to timely acquire the mail when delivered, failure to recall having received the notice, or the failure of any individual to whom the pick-up or receipt of the mail was assigned by the household to pick up or receive the mail shall not be sufficient reason to establish good cause for purposes of the subparagraph; or 2. The individual was hospitalized during the notice period and due to such hospitalization was unable, due to a medical condition, to receive or read the notice or to appear at the hearing as a result of such hospitalization;

(e) In all other instances, the household member has ten (10) days from the date of the scheduled hearing to present reasons, other than failure to receive the written notice, to the hearing official for failure to appear at the hearing.

(4) Scheduling of Hearing. The time and place of the hearing shall be arranged so that the hearing is accessible to the household member suspected of intentional program violation.

(a) If the household member or its representative cannot be located or fails to appear at a hearing initiated by the Department without good cause, the hearing shall be conducted without the household member being represented. Even though the household member is not represented, the hearing official is required to carefull y consider the evidence and determine if intentional program violation was committed, based on clear and convincing evidence.

(b) If the household member is found to have committed an intentional program violation, but a hearing official later determines that the household member or representative had good cause for not appearing, the previous decision shall no longer remain valid and the Department shall conduct a new hearing. The Hearing Official who originally ruled on the case may conduct the new hearing. The household member has ten (10) days from the date of the scheduled hearing to present reasons indicating a good cause for failure to appear. A hearing official must enter the good cause decision into the record.

(5) Participation While Awaiting a Hearing. A pending disqualification hearing shall not affect the individual’s nor the household’s right to be certified and participate in the program. Since the Department cannot disqualify a household member for intentional program violation until the hearing official finds that the individual has committed an intentional program violation, the Department shall determine the eligibility and benefit level of the household in the same manner it would be determined for any other household. However, the household’s benefits shall be terminated if the certification period has expired and the household, after receiving its notice of expiration, fails to reapply. The Department shall also reduce or terminate the household’s benefits if the Department has documentation which substantiates that the household is ineligible or eligible for fewer benefits and the household fails to request a fair hearing and continuation of benefits pending the hearing.

(6) Criteria for Determining Intentional Program Violation. The Commissioner or his/her designated representative shall base the determination of intentional program violation on clear and convincing evidence which demonstrates that the household member(s) committed and intended to commit an intentional program violation.

(7) Decision Format. The decision of the Commissioner or his/her designated representative shall specify the reasons for the decision, identify the supporting evidence, identify the pertinent FNS Regulation, and respond to reasoned arguments made by the household member or representative.

(8) Disqualification Penalties.

(a) One or more intentional program violations which occurred prior to April 1983 shall be considered as only one previous violation when determining the appropriate penalty to impose.

(b) The disqualification shall apply only to the individual who is found to have committed the intentional program violation. It does not apply to the whole household.

(c) Remaining Household Members. Once a household member is disqualified for an int entional program violation, the Department shall impose allotment reduction as the means of restitution.

(d) Notification to Applicant Households. The Department shall inform the household in writing of the disqualification penalties for intentional program violation each time it applies for program benefits.

(e) Imposition of Disqualification Penalties.

1. The disqualification penalties outlined in paragraph (1) of 1240-05-14-.01 shall apply only to individuals for acts of intentional program violation which occurred either during a certification period based on an application form containing these penalties or after receipt of written notification from the Department of these penalties. If the act of intentional program violation which led to the disqualification occurred prior to written notification of these disqualification penalties, the household member shall be disqualified in accordance with the disqualification periods in effect at the time of the rendering of such determination. However, no disqualification penalty may be imposed which is contrary to court order.

2. Appropriate disqualification penalties (as outlined in paragraph (1) of 1240-05-14- .01) shall be imposed (unless contrary to court order) on household members in the following instances:

(i) An administrative disqualification hearing official rules that the household member has committed an intentional program violation. The disqualification period shall begin with the first month which follows the date the household member receives written notification of the hearing decision as cited in Section 1240-05-14-.04.

(ii) A court of appropriate jurisdiction finds the household member guilty of intentional program violation. In such cases, the Department shall disqualify the individual for the length of time specified by the court. If the court fails to impose a disqualification period, the Department shall impose a disqualification period in accordance with paragraph (1) of 1240-05-14- .01. If the court does not specify a date for initiating the disqualification period, the Department shall initiate the disqualification period as soon as is administratively feasible.

(iii) A household member suspected of intentional program violation signs a consent agreement in cases of pre-trial diversion. The period of disqualification shall begin as soon as it is administratively feasible after the date the household member signed the disqualification consent agreement.

3. The same act of intentional program violation repeated over a period of time shall not be separated so that separate penalties can be imposed.

4. An adverse Administrative Disqualification Hearing may be appealed to Chancery Court by petition for judicial review, but the determination of intentional program violation made by a disqualifi cation hearing official cannot be reversed by a subsequent fair hearing decision. The period of disqualification may be subject to stay or other injunctive remedy by the court in which the petition for review is filed.

5. Once a disqualification penalty has been imposed against an individual, the period of disqualification shall continue uninterrupted until completed regardless of eligibility of the disqualified member’s household. The disqualified member’s household shall continue to be responsible for repayment of the overissuance which resulted from the disqualified member’s intentional program violation, regardless of its eligibility for benefits.

(9) Notification of Hearing Decision.

(a) If the Commissioner or his/her designated representative finds that the household member did not commit the intentional program violation, the Department shall provide a written notice which informs the household member of the decision.

(b) If the Commissioner or his/her designated representative finds that the household member committed the intentional program violation, the Department shall provide written notice to the household member prior to disqualification. The notice shall inform the household member of the decision and the reason for the decision. In addition, the notice shall inform the household member of the date disqualification will take effect. If the individual is no longer participating, the notice shall inform the individual that the period of disqualification will be deferred until such time as the individual again applies for and is determined eligible for program benefits. The Department shall also provide written notice to the remaining household members, if any, of either the allotment they will receive during the period of disqualification or that they must reapply because the certification period has expired.

(c) A written demand letter for restitution must be provided. This letter informs the household of:

1. The amount owed;

2. The reason for the claim;

3. The period of time the claim covers;

4. Any offsetting that was done to reduce the claim;

5. How the household must pay the claim; and 6. The household’s right to a fair hearing if the household disagrees with the amount of the claim unless the household has already had a fair hearing on the amount of the claim as a result of consolidation of the Administrative Disqualification Hearing with the Fair Hearing.

(d) The household shall also be informed of its right to request renegotiation of any agreed to schedule should the household’s economic circumstances change.

(e) The demand letter shall provide space for the household to indicate the method of repayment and a signature block.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105, and 71-5-314; 7 U.S.C. § 2015(b); and 7 C.F.R. § 273.16.
• Administrative History: Original rule filed April 30, 1979; effective July 30, 1979. Amendment filed July 29, 1980; effective October 29, 1980. Repeal and new rule filed May 25, 1983; effective June 24, 1983. Amendment filed June 13, 1997; effective August 27, 1997. Amendments filed November 7, 2022; effective February 5, 2023.

Tenn. Comp. R. & Regs. 1240-05-14-.05 WAIVED HEARINGS

An individual is allowed to waive his/her right to an Administrative Disqualification Hearing, and the procedures shall conform to the requirements outlined in this section.

(1) Advance Notification.

(a) The Department shall provide written notification to the household member suspected of intentional program violation that the member can waive his/her right to an Administrative Disqualification Hearing. Prior to providing this written notification, the Department shall ensure that the evidence against the household member is reviewed by someone other than the eligibility worker assigned to the accused individual’s household, and that a decision is obtained that such evidence warrants scheduling a Disqualification Hearing.

(b) The written notification provided to the household member which informs him/her of the possibility of waiving the Administrative Disqualification Hearing shall include, at a minimum:

1. The date that the signed waiver must be received by the Department to avoid the holding of a hearing and a signature block for the accused individual, along with a statement that the head of household must also sign the waiver if the accused individual is not head of the household with an appropriately designated signature block;

2. A statement of the accused individual’s right to remain silent concerning the charge(s), and that anything said or signed by the individual concerning the charge(s) can be used against him/her in a court of law;

3. The fact that a waiver of the disqualification hearing will result in disqualification and a reduction in benefits for the period of disqualification even if the accused individual does not admit to the facts as presented by the Department;

4. An opportunity for the accused to specify whether or not he/she admits to the facts as presented by the agency. This opportunity shall consist of the following statements and a method for the individual to designate his/her choice:

(i) I admit to the facts as presented and understand that a disqualification penalty will be imposed if I sign this waiver; or (ii) I do not admit that the facts as presented are correct. However, I have chosen to sign this waiver and understand that a disqualification penalty will result;

5. The telephone number and name of the person to contact for additional information; and 6. The fact that the disqualified individual and/or the remaining household members, if any, will be held responsible for repayment of the resulting claim.

(2) Disqualification Penalties.

(a) One or more intentional program violations which occurred prior to April 1983 shall be considered as only one previous violation when determining the appropriate penalty to impose.

(b) The disqualification shall apply under this section only to the individual who has signed a waiver to the Administrative Disqualification Hearing, or who signed a Disqualification Consent Agreement. It does not apply to the whole household.

(c) Remaining Household Members. Once a household member is disqualified for an intentional program violation, the Department shall impose allotment reduction as the means of restitution.

(d) Notification to Applicant Households. The Department shall inform the household in writing of the disqualification penalties for intentional program violation each time it applies for program benefits.

(e) Imposition of Disqualification Penalties.

1. The disqualification penalties outlined in paragraph (1) of 1240-05-14-.01 shall apply only to individuals for acts of intentional program violation which occurred either during a certification period based on an application form containing these penalties or after receipt of written notification from the Department of these penalties. If the act of intentional program violation which led to the disqualification occurred prior to written notification of these disqualification penalties, the household member shall be disqualified in accordance with the disqualification periods in effect at the time of the rendering of such determination. However, no disqualification penalty may be imposed which is contrary to court order.

2. Appropriate disqualification penalties (as outlined in paragraph (1) of 1240-05-14- .01) shall be imposed (unless contrary to court order) on household members in the following instances:

(i) The household member suspected of intentional program violation signs the waiver of right to an administrative disqualification hearing, and the signed waiver is received within the time-frame specified by the Department. The disqualification period shall begin with the first month which follows the date the household receives written notification of the disqualification as cited in Section 1240-05-14-.05.

3. The same act of intentional program violation repeated over a period of time shall not be separated so that separate penalties can be imposed.

4. No further administrative appeal procedure exists after an individual waives his/her right to an administrative disqualification hearing and a disqualification penalty has been imposed. The disqualification penalty cannot be reversed by a subsequent fair hearing decision. The household member, however, is entitled to seek relief in a court of appropriate jurisdiction. The period of disqualification may be subject to stay by a court of appropriate jurisdiction or other injunctive remedy.

5. Once a disqualification penalty has been imposed against an individual, the period of disqualification shall continue uninterrupted until completed regardless of eligibility of the disqualified member’s household. The disqualified member’s household shall continue to be responsible for repayment of the overissuance which resulted from the disqualified member’s intentional program violation, regardless of its eligibility for benefits.

(3) Notification of Disqualification. The Department shall provide written notice to the household member prior to disqualification. The Department shall also provide written notice to any remaining household members of the allotment they will receive during the period of disqualification or that they must reapply because the certification period has expired. The notice shall conform to the requirements for notification of a hearing decision specified in 1240-05-14-.04(9). A written demand letter for restitution shall also be provided.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105, and 71-5-314; 7 U.S.C. § 2015(b); and 7 C.F.R. § 273.16.
• Administrative History: Original rule filed July 29, 1980; effective October 29, 1980. Repeal and new rule filed May 25, 1983; effective June 24, 1983. Amendment filed June 13, 1997; effective August 27, 1997. Amendments filed November 7, 2022; effective February 5, 2023.

Tenn. Comp. R. & Regs. 1240-05-14-.06 COURT IMPOSED DISQUALIFICATIONS

(1) Appropriate Cases. A court of appropriate jurisdiction with either the State, a political subdivision of the State, or the United States as prosecutor or plaintiff may order an individual disqualified from participation in the program if the court finds that individual guilty of intentional program violation.

(2) The Department shall disqualify an individual found guilty of intentional program violation for the length of time specified by the court. If the court fails to impose a disqualification period, the Department shall impose a disqualification period in accordance with the provisions in

Chapter 1240-05-15 Family First Administrative Disqualification Hearings

Tenn. Comp. R. & Regs. 1240-05-15-.01 DISQUALIFICATION HEARINGS FOR INTENTIONAL PROGRAM VIOLATIONS

(1) The Department shall conduct administrative disqualification hearings for individuals accused of intentional program violations in accordance with the requirements outlined in this Chapter.

(2) An Administrative Disqualification Hearing shall be initiated by the Department in cases in which the Department has sufficient evidence to substantiate that an individual has committed one or more acts of intentional program violation as defined by Rule 1240-01-53- .01.

(3) The Department may initiate an Administrative Disqualification Hearing regardless of the current eligibility of the individual.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(a)(12), and 71-3-120; 42 U.S.C. § 616; and 45 C.F.R. § 235.110.
• Administrative History: Original rule filed April 15, 1993; effective May 30, 1993. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed November 7, 2022; effective February 5, 2023.

Tenn. Comp. R. & Regs. 1240-05-15-.03 DISQUALIFICATION HEARINGS PROCEDURES

(1) Scope. Administrative Disqualification Hearings held under this Chapter shall be conducted by one of this Department's hearing officials pursuant to T.C.A. § 4-5-301(a)(2) and (c) and

Chapter 1240-05-05, or by administrative judges employed with the Secretary of State under T.C.A. § 4-5-301(d) if agreement between the two departments is reached. Said hearing official or administrative judge shall be impartial with no previous involvement in the intentional program violation cases before him or her.

(2) Consolidation of Actions. An administrative disqualification hearing conducted under this

Chapter may be consolidated with an individual's Fair Hearing governed by 45 C.F.R. § 205.10 and must be consolidated with a SNAP administrative disqualification hearing under 7 C.F.R. Part 273, where the circumstances which give rise to the hearing are the same or related, and where the individual receives prior notice of the consolidation. The Department may designate the same hearing official to preside at such a consolidated hearing.

(3) Continuance of Hearing.

(a) An accused individual or representative may request a continuance of the hearing provided that the request is made ten (10) days prior to the scheduled hearing.

(b) The hearing may not be continued for more than thirty (30) days.

(c) The hearing official may limit the number of continuances to one.

(4) Medical Assessments. Medical assessments shall be obtained at the Department's expense and made a part of the hearing record, if the hearing official deems it necessary.

(5) Individual's Rights to Discovery and Presentation of Case. The accused individual or his/her representative shall have adequate opportunity to:

(a) Examine the contents of his/her case file and all documents and records to be used by the agency at the hearing, at a reasonable time before the date of the hearing, and during the hearing;

(b) Present his/her case alone or with the aid of an authorized representative, to bring witnesses, establish all pertinent facts and circumstances, and to advance any arguments without undue influence; and (c) Question or refute any testimony or evidence, including the opportunity to confront and cross-examine adverse witnesses.

(6) Hearing Decisions.

(a) Hearing Officials shall enter Initial Orders pursuant to T.C.A. § 4-5-314 and rule 1240- 05-05-.04 after conducting administrative disqualification hearings, and such Initial Order shall be based exclusively on evidence and other material introduced at the hearing.

(b) The Initial Order entered in such cases shall become this Department's Final Order unless the Initial Order is reviewed under T.C.A. § 4-5-315. An individual found to have committed an intentional program violation shall be informed within the Initial Order of his/her rights to request reconsideration of, or to appeal said Initial Order.

(c) The Initial Order of the Commissioner, or his/her designated representative, must be entered in such administrative disqualification hearings within ninety (90) days of the date of the advance written notice referred to in rule 1240-05-15-.02(1)(a) unless a continuance has been granted for good cause shown.

(d) The Department's Initial Order which finds that an accused individual committed an intentional program violation shall inform the individual of the decision and the reason for the decision.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(a)(12), and 71-3-120; 42 U.S.C. § 616; and 45 C.F.R. § 235.110.
• Administrative History: Original rule filed April 15, 1993; effective May 30, 1993. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed November 7, 2022; effective February 5, 2023.

Tenn. Comp. R. & Regs. 1240-05-15-.02 ADVANCE NOTICE OF HEARING

(1) Written Notice. The Department shall provide written notice to the individual suspected of intentional program violation at least thirty (30) days in advance of the date a Disqualification Hearing initiated by the Department has been scheduled. The notice shall be mailed certified mail, return receipt requested, or be provided by any other method as long as proof of receipt is obtained, and it shall contain at a minimum:

(a) The date, time, and place of the hearing;

(b) The charge(s) against the individual;

(c) A summary of the evidence, and how and where the evidence can be examined;

(d) A warning that the decision will be based solely on information provided by the Department of Human Services if the individual fails to appear at the hearing without good cause;

(e) A statement that the individual or representative may request a continuance of the hearing;

(f) A statement that the individual or representative will have ten (10) days from the date of the scheduled hearing to present good cause for failure to appear in order to receive a new hearing;

(g) A warning that a determination of intentional program violation will result in a six-month disqualification for the first violation, a twelve-month disqualification for the second violation, and permanent disqualification for the third violation and a statement of which penalty the Department believes is applicable to the case scheduled for a hearing;

(h) A statement that the hearing does not preclude the State or Federal Government from prosecuting the household member for an intentional program violation in a civil or criminal court action nor from collecting the overpayment;

(i) A listing of individuals or organizations that may provide free legal representation to the individuals alleged to have committed intentional program violations;

(j) A statement of the accused individual's right to remain silent concerning the charge(s) and that anything said or signed by the individual concerning the charge(s) may be used against him or her in a court of law; and (k) A statement that the individual may waive his or her right to appear at the administrative hearing.

(2) Waiver of Disqualification Hearing. The agency will prepare a form entitled Waiver of Administrative Disqualification Hearing which shall be mailed with each Advance Notice of Hearing specified above which include at a minimum:

(a) The date that the signed waiver must be received by the state agency and a signature block for the accused individual along with a statement that the caretaker relative must also sign the waiver if the accused individual is not a caretaker relative with an appropriate designated signature block;

(b) A statement of the accused individual's rights to remain silent concerning the charge(s) and that anything said or signed by the individual concerning the charge(s) may be used against him or her in a court of law;

(c) The fact that waiver of the individual's right to appear at a Disqualification Hearing may result in a disqualification penalty and a reduction in the assistance payment for the appropriate period even if the accused individual does not admit to the facts as presented by the state agency; and (d) An opportunity for the accused individual to specify whether or not he or she admits to the facts as presented by the state agency.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(a)(12), and 71-3-120; 42 U.S.C. § 616; and 45 C.F.R. § 235.110.
• Administrative History: Original rule filed April 15, 1993; effective May 30, 1993. Amendment filed February 26, 2007; effective May 12, 2007. Amendments filed November 7, 2022; effective February 5, 2023.

Chapter 1240-05-16 Code of Conduct

Tenn. Comp. R. & Regs. 1240-05-16-.01 CODE OF JUDICIAL CONDUCT

Unless otherwise provided by law or clearly inapplicable in context, the Tennessee Code of Judicial Conduct, Rule 10, Canons 1 through 4, of the Rules of the Tennessee Supreme Court, and any subsequent amendments thereto, shall apply to all hearing officials of the State of Tennessee. However, any complaints regarding any individual hearing official’s conduct under the code shall be made to the chief hearing official or other comparable entity with supervisory authority over the hearing official, and any complaints about the chief hearing official shall be made to the appointing authority.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-301, 4-5-321, and 71-1-105(12).
• Administrative History: Original rule filed February 26, 2007; effective May 12, 2007.

1240-06 Tennessee Business Enterprises

Chapter 1240-06-01 General Rules

Tenn. Comp. R. & Regs. 1240-06-01-.01 NECESSITY AND FUNCTION

(1) The Department of Human Services, Services for the Blind and Visually Impaired, has responsibilities to administer the vending facility program for blind managers. The program shall be known as Tennessee Business Enterprises (TBE). The Department shall administer TBE in accordance with the Randolph-Sheppard Act, as amended, and T.C.A. § 71-4-501 et seq. T.C.A. §§ 71-1-105 and 71-4-203 empower the Department of Human Services to comply with any requirement that may be imposed by federal law or regulation.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-4-501 et seq., and 71-4-604(c); 20 U.S.C.A. § 107 et seq.; and 34 C.F.R. § 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-01-.02 DEFINITIONS

(1) Active Participation – an ongoing process of negotiations between the state licensing agency and the Committee to achieve joint planning and approval of program policies, standards and procedures affecting the overall operation of the vending facilities program, prior to their implementation by the Agency. The implementation of agreed-upon policies, standards and procedures affecting the overall operation of the vending facilities program, shall be subject to review by the Committee. It is understood that the Agency bears final authority and responsibility for the administration and operation of the vending facilities program, including the assurance of continuing, active participation with the Committee.

(2) Agency – the Tennessee Department of Human Services.

(3) Area Representative – a manager or managers who are elected to the Committee of Blind Vendors by his/her peers on a regional basis.

(4) Blind Person – a person who, after examination by a physician skilled in the diseases of the eye, has been determined to have not more than 20/200 control visual acuity in the better eye with correcting lenses, or an equally disabling loss of the visual field as evidenced by a limitation to the field of vision in the better eye to such a degree that its widest diameter subtends an angle of no greater than twenty (20) degrees.

(5) Cafeteria – A food dispensing facility capable of providing a broad variety of prepared foods and beverages (including hot meals) primarily through the use of a line where the customer serves himself from displayed selections. A cafeteria may be fully automatic, or some limited waiter or waitress service may be available and provided within a cafeteria, and table or booth seating facilities are always provided.

(6) Certification – issued by the Agency to licensed managers indicating the categories of facilities which the manager is eligible to operate.

(7) Committee of Blind Vendors (Committee) – an officially constituted body within State government, functioning as an integral part of the State's vending facility program. The Committee shall be fully representative of all licensed managers elected biennially and established, constituted, and maintained in accordance with 34 C.F.R. § 395.14.

(8) Demotion – reassignment of a licensed manager to a vending facility with projected sales of no more than eighty-five percent (85%) of the manager’s present facility. The decision to demote a manager rests solely with the Agency and is based upon the manager’s inability to effectively manage his/her present facility after making a good faith effort to do so.

(9) Instrument of Facility Assignment (IOFA) - a document which shall be executed by the Agency and the manager, covering the duties and responsibilities of each party.

(10) Internship – facility based training supervised by a qualified licensed manager as part of the entry-level training requirements.

(11) License – a written certificate issued by the Agency to a qualified blind person to operate a vending facility.

(12) Management Staff – TBE personnel who work under the immediate supervision of the Director of Services for the Blind and Visually Impaired in carrying out the statewide goals and objectives of TBE.

(13) Manager – a qualified blind person licensed by the Agency to operate a vending facility on federal or other property.

(14) Net Proceeds – net sales of a facility, less merchandise purchased and other allowable expenditures, plus any commissions, vending machine income, rebates, and/or commissions paid to the manager.

(15) Operations Manual – developed jointly by the Agency and the Committee, it contains the policies and procedures for the day-to-day administration of TBE and specific requirements for the operation of vending facilities.

(16) Permit – an agreement between the Agency and property management that prescribes the terms and conditions for operating a vending facility.

(17) Post employment services – vocational rehabilitation services for which a client is eligible after being placed into employment and the Vocational Rehabilitation Counselor has closed the case.

(18) Priority – the right of first refusal, exercised in the sole discretion of the Agency, on behalf of licensed blind vendors to operate any and all vending facilities on public properties in Tennessee.

(19) Promotion – assignment of a licensed manager to a vending facility by competitive bid process.

(20) Public Property – all property owned or leased by the State of Tennessee, or by any county, municipality, or any other entity created by act of the General Assembly to perform any function. Primary and secondary schools, and entities created under title 42, and their operation are specifically excluded from this definition. Institutions governed by the University of Tennessee System or the State University and Community College System and their operations are also specifically excluded from this definition except that the vending facilities presently in operation at such institutions on April 29, 1996, shall continue to operate at their present locations or, if necessary, at a location comparable in terms of potential patronage, with the priority established by T.C.A. § 71-4-501. Moreover, the existing priority shall extend to any new structures on any of the campuses governed by the University of Tennessee or the state university and community college system and the priority shall also extend to the establishment of at least one (1) vending facility on any new campus which is developed either by the University of Tennessee system or the state university and community college system.

(21) Ready-for-Employment List - a list of all currently licensed managers who are not permanently assigned a facility. The ranking of these managers shall be based upon the accrual of seniority, or in the absence thereof, listed in the order in which they were certified by the Agency as eligible to receive a license.

(22) Set-aside Funds - funds which accrue to the Agency from an assessment against the net proceeds of each vending facility and any income from vending machines on property which accrues to the Agency.

(23) State Agency - the Agency designated by the Commissioner of the U.S. Rehabilitation Services Administration to issue licenses to blind persons for operation of vending facilities, and to implement the operation thereof.

(24) TBE Consultant – an Agency staff person who is assigned to work directly with the manager to ensure the effective and efficient operation of the vending facility.

(25) TBE Director – the Director of Services for the Blind and Visually Impaired may delegate responsibilities as specified in these rules to a TBE Director. The Committee of Blind Vendors shall actively participate in the selection process of a TBE Director.

(26) TBE Specialist – functions as a TBE Consultant; however, this individual has additional responsibilities not necessarily related to specific facility operations.

(27) TBE Supervisor – management staff who provide direct supervision to TBE Consultant/Specialists and who have additional statewide responsibilities.

(28) Temporary Manager - one who manages a facility temporarily until such time as a permanent assignment can be made.

(29) Tennessee Business Enterprises (TBE) – the name given to the vending facility program for the blind in Tennessee.

(30) Transfer - lateral reassignment of a licensed manager to a vending facility where the annual gross sales are projected to be within a range of 15% of the annual gross sales of the manager’s previous facility.

(31) Unassigned – A vending facility that is managed by a third-party vendor who pays a commission to the Agency.

(32) Upward Mobility – Annual training required of all managers as a condition for maintaining their certification.

(33) Vending Facility – a location, structure, or space which may sell foods, beverages, confections, newspapers, periodicals, tobacco products, and other articles and services which are dispensed automatically by a machine or manually by sales personnel or attendants and which may be prepared on or off premises in accordance with applicable health laws. A vending facility may consist of automatic vending machines, cafeterias, snack bars, catering services, food concession vehicles, cart services, shelters, counters, and any appropriate equipment necessary for the sale of articles or services described above, and may encompass more than one building on a public property.

(34) Vending Machine Income - net proceeds from vending located on federal and other property which is paid directly to licensed managers or disbursed to the Agency for use as required by federal and state law.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-502, 71-4-604(c), and 71-4-702; 32 C.F.R. § 260 et seq.; 34 C.F.R. § 395 et seq., 34 C.F.R. 395.4; 34 C.F.R. § 395.1(c),(i)(s),(x) and (z), and 34 C.F.R. § 395.7.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed December 11, 1986; effective January 25, 1987. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Chapter 1240-06-02 License

Tenn. Comp. R. & Regs. 1240-06-02-.01 ISSUANCE

The Agency shall issue licenses to blind persons who are in need of employment and who are determined to be:

(1) A citizen of the United States (2) Legally blind as defined in 34 C.F.R. § 395.1(c)

(3) At least eighteen (18) years of age and (4) Qualified to manage a vending facility as evidenced by having successfully completed entry level training as well as successfully completing an on-the-job training.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-604, 71-4-604(c); 34 C.F.R. § 395 et seq., 34 C.F.R. § 395. 1(c), 34 C.F.R. § 395.4, and 34 C.F.R. § 395.7(a).
• Administrative History: Original rule filed August 30, 1978; effective November 12, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed May 15, 1984, effective August 14, 1984. Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-02-.02 DISPLAYING OF LICENSE

(1) The manager shall prominently display in his/her vending facility the license or a copy of the license.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601, 71-1-104, 71-1-105(12), and 71-4-604 (c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.4.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-02-.03 TERMINATION OF LICENSE

(1) The Agency shall issue licenses for an indefinite period, but subject to termination if, after affording the manager an opportunity for a full evidentiary hearing, the Agency finds that the vending facility is not being operated in accordance with:

(a) the rules and regulations governing the program;

(b) the terms and conditions of the permit;

(c) the duties and responsibilities of the IOFA;

(Rule 1240-6-2-.03 continued)

(d) policies and procedures as specified in the TBE Operations Manual;

(e) state law, the violation of which is, or reasonably may, result in financial or physical harm to the customers of the facility or other persons, the Department or the manager; or (f) regulations of other agencies of the State of Tennessee which have regulatory authority directly related to the operation of a vending facility.

(2) The Agency will give thirty (30) days notice in advance of terminating a manager’s license, and such advance notice shall be given only after the expiration of a thirty (30) day probationary period, except as provided in chapters 1240-6-9-.03(3) and 1240-6-3-.01.

(3) The Agency must revoke the manager’s license if:

(a) The manager resigns from TBE;

(b) The manager has an extended illness with a medically documented diagnosis of the manager’s incapacity to operate a facility; provided that the Agency has made available to the manager transfer eligibility under chapter 1240-6-5-.03(3), and that eligibility has expired;

(c) The manager loses his/her certification(s) and fails to reapply within the allotted time to attend and subsequently complete the next entry-level training class pursuant to chapter 1240-6-4-.02 (4); or (d) The manager fails to meet the definition of blindness as set forth at chapter 1240-6-1-.02(4) and 34 C.F.R. § 395.1(c). At its discretion, the Agency may require the manager to undergo an ophthalmologic examination to verify blindness. If an examination is required, the Agency will select the doctor and will pay for the office visit.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-603, and 71-4-604(c); 34 C.F.R. § 395 et seq., 34 C.F.R. § 395.1, 34 C.F.R. § 395.4, and 34 C.F.R. § 395.7.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 6, 1983; effective January 5, 1984. Amendment filed December 11, 1986; effective January 25, 1987. Amendment filed March 10, 1989, effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-02-.04 INSTRUMENT OF FACILITY AGREEMENT

(1) On the first day of business, the TBE Consultant/Specialist and the manager shall execute a document known as the “Instrument of Facility Assignment,” which shall be developed by the Agency with the active participation of the Committee. The IOFA designates the assignment as temporary or permanent and clearly defines the responsibilities of the Agency and those of the manager to assure the effective and efficient operation of the facility to which the manager has been assigned.

(2) The following three documents shall be attached to and made a part of the IOFA:

(a) Occupancy Permit Agreement (if available);

(b) Equipment Inventory Record; and (c) The completed Merchandise Inventory Record.

(Rule 1240-6-2-.03 continued)

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105 (12) and (14), 71-4-603, 71-4-604, and 71-4-604(c); 34 C.F.R. § 395 et seq., 34 C.F.R. § 395.7(a), (c); 34 C.F.R. § 395.16.
• Administrative History: Original rule filed May 25, 1983; effective June 24, 1983. Amendment filed March 10, 1989; effective June 24, 1989. Repeal filed April 27, 1998, effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-02-.05 REPEALED

History

• Authority: TCA §§14-14-404(c); 34 CFR 395.7(b).
• Administrative History: Original rule filed May 25, 1983; effective June 24, 1983. Repeal filed April 13, 1984; effective May 13, 1984.

Chapter 1240-06-03 Probationary Periods

Tenn. Comp. R. & Regs. 1240-06-03-.01 NEWLY LICENSED MANAGERS

(1) When a manager is awarded a facility on a permanent or temporary basis for the first time, he must serve a consecutive six-month performance probationary period, during which he is not eligible to bid on another facility. If, during this probationary period, the manager violates any provision as specified in chapter 1240-06-03-.02(1) or there is evidence that the manager does not have the ability to effectively manage the facility, the Agency may remove the manager from the vending facility. After the removal, the Agency will determine whether or not to proceed with termination of license, require additional training, or allow the manager’s name to be placed on the Ready-for-Employment List.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq., 34 C.F.R. § 395.7(b) and (c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-03-.02 DISCIPLINARY PROBATIONS

(1) Established managers may be placed on probation for disciplinary purposes when the Agency determines that the vending facility is not being operated in accordance with:

(a) The rules and regulations governing the program;

(b) The terms and conditions of the permit;

(c) The terms and conditions of the IOFA;

(d) Policies and procedures as specified in the TBE Operations Manual;

(e) State law, the violation of which is, or reasonably may, result in financial or physical harm to the customers of the facility or other persons, the Department or the manager; or (f) Regulations of other agencies of the State of Tennessee which have regulatory

authority directly related to the operation of a vending facility.

(2) Notice of disciplinary probation shall be sent to the manager in writing. Such notices may be hand delivered or posted in the US Mail. The probationary period shall be for a mandatory thirty (30) days. The notice of disciplinary probation must state the reason(s) for probation; steps to be taken, if any, to avoid termination; and the manager’s right to appeal the Agency’s action pursuant to Chapter 1240-06-11 of these rules.

(a) If hand delivered, the TBE Consultant/Specialist shall document that the notice has been received by the manager as evidenced by a signed acknowledgment of receipt.

The thirty (30) day probationary period begins after the time period for an appeal pursuant to Chapter 1240-06-11 has run.

(b) If a manager is not available for the TBE Consultant/Specialist to hand deliver the disciplinary notice or doing so is not cost effective, TBE may choose to mail the notice by US Mail, postage paid. TBE personnel will execute a certificate of mailing indicating the actual date of mailing, to be maintained with a file copy of the disciplinary notice.

The thirty (30) day probationary period begins after the time period for an appeal pursuant to Chapter 1240-06-11 has run.

(3) Managers who are placed on probation pursuant to paragraphs (1) and (2) of this section will not be permitted to bid.

(4) If a manager is placed on disciplinary probation for the same offense for the third time during a twelve (12) month period, the manager’s license will be terminated. This subsection will not be applicable to violations of chapter 1240-6-9-.03(1).

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7 (b) and (c).
• Administrative History: Original rule filed June 9, 1981; effective August 18, 1981. Amendment filed February 28, 1963; effective May 16, 1983. Amendment filed May 25, 1983; effective June 24, 1983. Repeal and new rule filed November 6, 1985; effective December 6, 1985. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Amendment filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-03-.03 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R.§ 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Repeal and new rule filed November 6, 1985; effective December 6, 1985. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-03-.04 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R.§ 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Repeal and new rule filed November 6, 1985; effective December 6, 1985. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-03-.05 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R.§ 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed December 11, 1986; effective January 25, 1987. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-03-.06 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R.§ 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed June 9, 1980; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-03-.07 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R.§ 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-03-.08 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R.§ 395 et seq.
• Administrative History: Original rule filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed December 11, 1986; effective January 25, 1987. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-03-.09 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R.§ 395 et seq.
• Administrative History: Original rule filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-03-.10 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R.§ 395 et seq.
• Administrative History: Original rule filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Chapter 1240-06-04 Classification and Certification

Tenn. Comp. R. & Regs. 1240-06-04-.01 FACILITY CLASSIFICATIONS

(1) Each vending facility is classified into one or more of the following categories:

(a) Category 1 - Counter Service (b) Category 2 - All Vending (c) Category 3 - Combination Counter Service and Vending (d) Category 4 - On-Site Food Preparation (e) Category 5 - On-Site Food Preparation and Vending (f) Category 6 - Cafeterias (g) Category 7 - Cafeteria and Vending (h) Category 8 - Inmate Commissaries (i) Category 9 - Inmate Commissaries and Vending (j) Category 10 - Highway Vending (2) After consultation with the area representative(s) of the Committee, the classification of new facilities or the reclassification of existing facilities shall be made pursuant to the provisions of the TBE Operations Manual.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Amendment filed July 20, 2001; effective November 28, 2001. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-04-.02 MANAGERS’ CERTIFICATION REQUIREMENTS

(1) All managers are certified by the Agency into one or more of the categories listed above in

chapter 1240-06-04-.01.

(2) Managers shall be required to complete specific Upward Mobility training requirements annually as outlined in the TBE Operations Manual in order to maintain certification(s). The Agency, with the active participation of the Committee, may designate other outside seminars, conferences, or training sessions as sufficient to meet the requirements of an Upward Mobility training session. Subject to the availability of funds, the Agency and Committee may elect to offer financial incentives for managers who attend such outside training opportunities whether they do so for Upward Mobility credit or not.

(3) Certification shall be valid through the end of the calendar year following the year in which the certification(s) was obtained or renewed.

(4) If a manager loses his/her certification(s) for failure to comply with the conditions set forth in paragraph (2) of this section, the manager is subject to loss of license and removal from the facility if, within the thirty (30) days from the loss of certification(s), the manager does not make application for the next entry-level training class for the purpose of regaining the certification(s) which have been lost. The Agency must approve the application if the manager is not delinquent with the filing of any reports required by the Agency, is not indebted to the State, and is not being currently subjected to any disciplinary action. If the manager is accepted, failure to pass the class denies the individual re-entry into the program and results in the loss of his/her facility.

(5) Paragraph (4) above shall have no application to a manager who has lost his/her certification(s) prior to the implementation of these rules. The manager may continue to operate his/her facility provided that the classification of the facility does not change. If the classification does change, the manager shall be given an opportunity to attend the next appropriate training class to obtain the certification(s) which may be required. Failure to pass the class shall result in the loss of license and removal from the facility.

(6) A manager’s certification may be extended if evidence is provided to the Agency documenting medical incapacity and/or other unavoidable circumstances of an extenuating nature which preclude the manager from meeting the requirements of 1240-06-04-.02(2) above and which has been approved in advance by the Agency.

(7) If the classification of a facility changes and the manager does not possess the necessary certification, the manager must make application, in writing, within thirty (30) days from the date (s)he is notified in writing by the Agency of the change of classification, to attend and successfully complete appropriate certification training. Failure to do so shall result in the manager being removed from the facility and placed on transfer status.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12) and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-04-.03 REPEALED

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-4-604(c), and 34 C.F.R. 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed December 11, 1986; effective January 25, 1987. Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-04-.04 REPEALED

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-4-604(c), and 34 C.F.R. 395 et seq.
• Administrative History: Original rule filed May 25, 1983; effective June 24, 1983. Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-04-.05 REPEALED

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-4-604(c), and 34 C.F.R. 395 et seq.
• Administrative History: Original rule filed May 25, 1983; effective June 24, 1983. Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-04-.06 REPEALED

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-4-604(c), and 34 C.F.R. 395 et seq.
• Administrative History: Original rule filed March 10, 1989; effective April 24, 1989. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-04-.07 REPEALED

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-4-604(c), and 34 C.F.R. 395 et seq.
• Administrative History: Original rule filed March 10, 1989; effective April 24, 1989. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-04-.08 REPEALED

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-4-604(c), and 34 C.F.R. 395 et seq.
• Administrative History: Original rule filed March 10, 1989; effective April 24, 1989. Repeal filed April 8, 2005; effective June 22, 2005.

Chapter 1240-06-05 Assignment of Managers

Tenn. Comp. R. & Regs. 1240-06-05-.01 PROMOTIONS

(1) All managers are eligible to compete for promotional opportunities if, on the date the bid announcements are closed, the manager:

(a) Is not on probation, (b) Is not delinquent in the filing of any report required by the State of Tennessee and is not delinquent in the payment of any financial obligation owed to the State of Tennessee, (c) Possesses the certification(s) required by the facility announced for bid, (d) Has not refused an award of a facility during the preceding twelve (12) months, and (e) Has not failed to appear for a scheduled interview during the preceding twelve (12) months. This provision shall not apply if the manager has withdrawn from the interview forty-eight (48) hours prior to the scheduled appearance by providing notice to the Agency.

(2) Six managers from those submitting bids shall be selected to compete for the promotion. The

basis for this selection shall be seniority, provided the manager possesses the necessary certification(s). If two or more managers are tied for the sixth and final slot in terms of seniority, those managers who are tied will be permitted to interview. Additionally, any U.S. military veteran who was honorably discharged, who is licensed and otherwise qualified but does not possess the necessary seniority to qualify as one of the top six candidates, will automatically qualify for the interview.

(3) After the candidates have been determined eligible to interview, each candidate will be interviewed by a panel consisting of one Agency representative, the area representative of the Committee, and one person jointly determined by the other two panel members. The third panel member may be an independent business person, a property management official or another person familiar with TBE. In cases where required by the permit, Property Management will be allowed to serve as the third panel member, and concurrence of the other two panel members is not required. If practical, interviews shall be conducted within fifteen (15) working days after the candidates have been determined.

(4) The panel shall rate each candidate based upon his/her record of performance for the preceding twelve (12) months, responses received to questions, the manager’s plans for the new operation, personal appearance, demeanor, and attitude. Each panel member shall rate each candidate according to the following:

(a) First Choice......................6 points (b) Second Choice.................5 points (c) Third Choice.....................4 points (d) Fourth Choice...................3 points (e) Fifth Choice......................2 points (f) Sixth Choice.....................1 point (5) The rating shall be done by ballot. The Chairperson of the panel, who shall be the Agency representative, shall collect the ballots and tabulate the ratings, which shall be verified by the other panel members. The successful manager shall be immediately offered the award. The manager must, at that time, either accept or reject the award. If the award is refused, the manager shall be precluded from having any further bids considered until one year has elapsed from the date of the refusal. If the manager is scheduled for more than one interview as a result of his/her bids on a number of facilities contained in a single bid package, then the manager may wait until the conclusion of the last interview in which the manager participates to accept or reject the award of a facility.

(6) It is understood that property management may impose additional selection criteria for managers on their properties. This may include, but is not limited to, such things as security clearance, special training, and random drug testing if such additional conditions are also required of property management’s employees. If a manager who is awarded a facility fails to meet the additional selection criteria, the manager with the next highest score who meets the additional selection criteria will be awarded the facility.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-204, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-05-.02 BID ANNOUNCEMENTS

(1) Bid announcements for a vending facility available for award shall be sent to all licensed managers within the state. The bid announcement shall be on a form developed by the Agency with the active participation of the Committee, and shall contain information needed for a manager to make an initial judgment as to his/her interest in the facility.

(2) The manager’s signature on the bid announcement shall authorize the Agency to release to members of the interview panel information relative to the record of performance of the manager for the preceding twelve (12) month period. In addition, the signature of the manager on the bid announcement authorizes the Tennessee Department of Revenue to release to the Agency all information relative to the tax status of the manager at his/her present or last facility operated.

(3) The bid announcement shall remain open for a period of fifteen (15) working days. Upon the closing of the bid announcement, the Agency shall verbally provide to the Secretary of the Committee a complete list of all managers who have submitted bids. The Secretary shall then verbally certify to the Agency the seniority ranking and the certification possessed by each manager who has submitted a bid.

(4) All bid announcements shall be posted in the U.S. Mail, postage pre-paid in a sufficient amount to insure delivery to the licensed managers. Documentation of this process shall be an affidavit attached to the computer-generated mailing list, executed by the State office personnel charged with the responsibility of the mailing, signifying the date of the posting and that all names and addresses on the list correspond with those on the envelopes addressed to the licensed managers.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-603, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-05-.03 TRANSFERS

(1) The intent of a transfer is to assure, insofar as possible, employment for a manager who faces displacement not attributable to his/her conduct, attitude or lack of performance. A transfer shall not result in a substantial financial advantage or disadvantage to the manager.

In order to assure the effectiveness of this provision, the manager’s sales for the preceding twelve (12) months shall be calculated and compared to the projected sales on the bid announcement. The greater of these two numbers shall be used to determine the range of transfer eligibility. If a vacant facility for which the manager is certified and which produces sales equal to those calculated for the displaced manager (meaning that sales may be fifteen percent (15%) above or fifteen percent (15%) below those calculated), then the manager may be considered, depending upon the manager’s seniority and the number of other managers competing for the same facility.

(2) Transfer eligibility may be established if:

(a) A determination is made to close the facility;

(b) The classification of the manager’s facility changes and the manager fails to obtain the necessary certification;

(c) A permanent loss of customers occurs equal to thirty percent (30%) of the population figures reflected on the bid announcement; or (d) The manager is on medically documented sick leave and requests to be placed on transfer status.

(3) Transfer eligibility is valid for a period of two (2) years, during which seniority continues to accrue and eligibility is maintained for all benefits. If a manager remains in his/her facility while on transfer status and the circumstances at the facility have not improved, the manager may reapply for transfer status at the end of the two-year period provided the manager has not declined a facility which falls within his/her range.

(4) Transfer eligibility is lost if the manager bids on and receives the award of a facility which produces sales within or which exceeds the manager’s transfer range, or the manager declines an award based on his/her transfer eligibility.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7 (c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-05-.04 DEMOTIONS

(1) If a manager is dedicated to the appropriate management of his/her facility and is exerting all of his/her ability to effectively operate the business but is not able to do so because of the demands of the facility, the Agency has the right to remove the manager from the facility as opposed to initiating disciplinary action. Prior to any such removal, documented observations of inadequate performance must be presented to the manager at least thirty (30) days before any removal can take place. This will allow the manager the necessary time to make any adjustments, if any can be made, to improve the efficiency and effectiveness of the facility’s operation.

(a) If, after the expiration of the allotted time, the circumstances have not changed, the Agency shall immediately remove the manager from the facility and place him/her on demotion status and the Ready-for-Employment List. The manager will maintain all benefits for a period of two (2) years and continue to accrue seniority during that period of time.

(b) The manager shall not be eligible to compete for a facility by virtue of the demotion status if the facility's annual sales exceed eighty-five percent (85%) of those of the facility from which the manager was demoted.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7 (b ).
• Administrative History: Original rule filed May 25, 1983; effective June 24, 1983. Repeal filed December 6, 1983; effective January 5, 1984. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-05-.05 PERMANENT ASSIGNMENT NOT REQUIRING BIDS

(1) If eligibility has been established under chapters 1240-06-05-.03 and 1240-06-05-.04, the Agency may make the award of the facility to the manager, without soliciting bids, provided the manager possesses the appropriate certification(s).

(2) If two or more managers have established such eligibility and are competing for the same facility, then the provisions of chapter 1240-06-05-.01 shall apply and an interview shall be conducted for purposes of selecting the manager for the assignment.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7.
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-05-.06 READY-FOR-EMPLOYMENT LIST

(1) The Ready-for-Employment List shall contain the names of all licensed managers who remain certified and who are not permanently assigned to a facility. If certification expires, the manager’s name shall be removed and (s)he will no longer be eligible to compete in the bidding process.

(2) The Agency shall rank all managers on the Ready-for-Employment List in accordance with the amount of seniority which has been accrued and the list shall contain the certification(s) for each manager. Managers having no seniority shall follow on the Ready-for-Employment List according to the date the Agency certified the manager as a licensed manager.

(3) A manager accrues seniority when permanently or temporarily assigned to a facility or when placed on transfer or demotion status.

(4) Managers who have not accrued seniority for a period of five (5) years will not be allowed to compete for vacant vending facilities through the promotion process and will have their names removed from the Ready-for-Employment List. In order to have their names placed back on the Ready-for-Employment List, they must complete entry-level training. Any manager who must attend entry level training under this provision must meet the same requirements as any new trainee.

(5) The Agency shall have the responsibility of maintaining the Ready-for-Employment List and shall provide to all members of the Committee a copy together with updates as they occur.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-05-.07 TEMPORARY MANAGERS

(1) The Agency may, if circumstances require, place a facility under temporary management. The person assigned to the facility on a temporary basis may or may not be a licensed manager.

The Agency, with the active participation of the Committee of Blind Vendors, will develop guidelines to be incorporated into the operations manual on selecting temporary managers.

(2) The Agency, with the active participation of the Committee, shall develop guidelines to review the status of facilities under temporary assignment.

(3) After a manager is selected to operate a facility on a temporary basis, the Instrument of Facility Assignment must be executed on the first day of business and the attachments appended thereto as required by chapter 1240-6-2-.04. The Agency has the authority to customize the IOFA for the temporary manager to be more restrictive than that required of licensed managers.

(4) A manager who accepts a temporary assignment pursuant to this section has no permanent rights to the facility in whole or in part.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(b) and(c).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-05-.08 MARGINAL FACILITIES

(1) It is the Agency’s intent to offer for operation vending facilities that will provide to a licensed blind vendor an income, sufficient to support them and their family. If, for whatever reason, a vending facility will no longer support a licensed blind vendor, consideration must be given to closing the facility. The Agency, with the active participation of the Committee of Blind Vendors, shall develop guidelines to be incorporated into the operations manual on when such facilities shall be closed and how any remaining vending is to be distributed to licensed blind vendors or third party vendors.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(b) and (c).
• Administrative History: New rule filed May 25, 2017; effective August 23, 2017.

Chapter 1240-06-06 Removal of Manager

Tenn. Comp. R. & Regs. 1240-06-06-.01 VOLUNTARY WITHDRAWAL OF A MANAGER

(1) If the manager determines that it is in his/her best interest, for whatever reason, to withdraw from a permanently or temporarily assigned facility, (s)he may do so and be immediately placed on the "Ready-for-Employment List" if the withdrawal is not for the purpose of avoiding disciplinary action and thirty (30) days written notice is provided. In the case of such a withdrawal, there shall be no accrual of seniority.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-06-.02 EMERGENCY REMOVAL OF A MANAGER

(1) The Agency shall remove a manager from a facility if a situation develops that prevents a manager from fulfilling his/her obligations or if there is reasonable evidence of a hazardous situation involving the manager which poses an immediate threat to the safety of the manager or others. Except for managers who have a valid drivers license issued by the Department of Safety pursuant to chapter 1340-1-2-.04(8), the Agency considers managers who drive in conjunction with their duties with TBE to be a hazardous situation which poses a threat to the safety of others. This removal may be immediate if the circumstances require. Prior to or within twenty-four (24) hours of the removal, the Agency shall contact the area representative(s) of the Committee and inform them of the action.

(2) In those facilities that require security clearance by property management such as jails, prisons, and certain Federal installations, the TBE manager must meet all such security requirements in order to service a vending facility in such locations. In the event property management rescinds security clearance for a manager, the Agency shall be forced to remove the manager from that facility. The Agency shall gather all the facts and consult with property management. If the security clearance is not reinstated, the removal will be permanent.

(3) In the event of the failure of the manager to fulfill the duties and discharge the responsibilities of operating the facility (for whatever reasons) or documented misconduct jeopardizing the existence of the facility and/or the image of the program, the Agency may declare that emergency circumstances exist; whereupon the manager may be immediately removed. In the case of such removal, the area representative(s) of the Committee shall be advised of the action prior to or within twenty-four (24) hours of the removal.

(4) In the event of a manager’s removal under paragraphs (1) or (2) of this section, the Agency must, within ten (10) working days, do one of the following:

(a) Return the manager to the facility;

(b) Mandate re-training;

(c) Place the manager on the Ready-for-Employment List; or (d) Initiate disciplinary action against the manager.

(5) In lieu of removing a manager from a facility, the Agency may choose to relieve the manager of responsibility for a portion of the facility if, in the Agency’s opinion, such action would enable the manager to fulfill his/her obligations in the remaining areas that he/she services.

This provision would only be applicable if a vending facility has satellite vending at multiple locations and it is felt that by relieving the manager of responsibility for some or all of the satellite vending locations, he/she will be better able to manage the main facility. With the active participation of the Committee of Blind Vendors, the Agency shall develop and incorporate into the operations manual guidelines on how to permanently or temporarily distribute the vending satellites removed from the manager.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(b).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-06-.03 PROPERTIES NOT COVERED BY A STATUTORY PRIORITY

(1) When a manager is operating a facility on property which is not protected under federal or state law with respect to priority or preference extended to the Agency, the Agency may, upon the request of property management, be required to remove the manager from the facility, but the Agency is bound to proceed in accordance with the terms and conditions of the permit. If the removal is a result of violation(s) of the rules, the Agency shall take disciplinary action. If the removal is not as a result of inappropriate behavior, the Agency shall place the manager on transfer status or demotion status as the circumstances require.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(b).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed December 11, 1986; effective January 25, 1987. Amendment filed March 10, 1989, effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-06-.04 DUE PROCESS FOR MANAGERS WHO ARE REMOVED

(1) If the manager is not returned to the facility within ten (10) working days of removal from the facility under chapters 1240-06-06-.02 or 1240-06-06-.03, an informal due process hearing by a hearing officer designated by the Commissioner of the Department of Human Services shall be held at the manager’s request within the ten (10) day period following removal from the facility. The hearing officer shall not have been involved in the decision to remove the manager.

(2) The purpose of the hearing, which shall be informal in nature, shall be to permit the manager to present reasons why the removal is not appropriate. The Agency shall present reasons to the hearing officer to establish probable cause to support the immediate removal of the manager. The Agency shall have the burden of proof in the hearing.

(3) The hearing officer shall make a ruling immediately following the conclusion of the hearing, reduce the findings and the conclusions to writing, and supply copies of the ruling to the manager or the manager’s representative and to the Agency. The hearing report shall become a part of the record in any disciplinary action which is initiated by the Agency involving the manager; provided, however, that the report’s findings and conclusions shall not become evidence in such proceeding, which shall be de novo. If the manager is not returned to the facility, the Agency shall proceed in accordance with chapter 1240-06-06-.03 within the ten (10) day period and the manager may appeal for an evidentiary fair hearing pursuant to

chapter 1240-6-11.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-06-.05 TEMPORARY DISPLACEMENT OF MANAGERS

(1) A manager may be temporarily displaced from his/her facility due to renovations, natural disasters, or other uncontrollable circumstances. Such managers will continue to accrue seniority and be eligible for benefits as provided in 1240-6-16. A displaced manager may request reasonable compensation for a temporary period of time from the Agency with the active participation of the Committee of Blind Vendors. Temporary compensation, if granted, shall not to exceed twelve (12) months.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: New rule filed May 25, 2017; effective August 23, 2017.

Chapter 1240-06-07 Training Program

Tenn. Comp. R. & Regs. 1240-06-07-.01 ENTRY LEVEL TRAINING

(1) All candidates for entry-level training shall go through a thorough evaluation and screening before being admitted into the training class.

(a) All entry level training for potential managers shall be conducted at a site jointly determined by the Agency and Committee. If technology and resources permit, the Agency may elect to make portions of the entry-level training available online, which may reduce actual classroom time. All candidates for the training must be referred by the Vocational Rehabilitation Program. Each candidate will undergo an evaluation to determine if they have the skills to be successful managers.

(b) The Agency shall conduct a criminal background check of all candidates. Any candidate who has been convicted of a felony will not be permitted into the training program.

(c) The Vocational Rehabilitation Counselor will obtain a drug screening on all candidates before they are referred for entry level training. Any candidate with a documented

history of substance abuse during the preceding twelve (12) months shall not be eligible for admission into entry level training.

(d) After the evaluation, the Director of Services for the Blind and Visually Impaired or a designated member of the management staff shall interview each candidate and review the evaluation and recommendations of the staff, the criminal background check, and an essay that the candidate will be required to submit. Based upon this information and responses to interview questions, the candidate will either be accepted or rejected. The duration of the academic training and the on-the-job training, as well as the curriculum to be taught shall be determined by the Agency with the active participation of the Committee.

(2) After the candidates have successfully completed all course materials as evidenced by test scores, each shall complete an internship with a currently licensed manager. The Agency shall select the manager with whom the candidate shall work and will require the manager to provide progress reports with respect to the candidate's performance. After successfully completing an internship, the candidate shall be issued a license certifying that the candidate is a licensed manager in the State of Tennessee. If the candidate cannot successfully meet the requirements imposed by an internship, and the Agency does not receive a recommendation from the manager selected to conduct the training, the Agency shall not issue the license.

(3) When the license is issued, the manager shall be certified in accordance with the training modules completed, as outlined in the Operations Manual.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.11.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-07-.02 CERTIFICATION TRAINING

(1) At the beginning of each calendar year, the Agency shall publish and circulate to all licensed managers a schedule of training dates for certification in On-Site Food Preparation, Cafeteria, and Inmate Commissary Management. Those managers who lost certification in Counter Service or Vending prior to the implementation of these rules may request training in these areas. This training shall be made available to any of these eligible managers within sixty (60) days from the date the Agency receives the request.

(2) The prerequisites for cafeteria management are that the manager has certification in on-site food preparation and has accrued twelve (12) months of seniority from a temporary or permanent assignment.

(3) The prerequisite for Commissary Management certification is that the manager has accrued seniority as referenced in Section 6.3 of the Operations Manual.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.3(11).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-07-.03 RETRAINING FOR ESTABLISHED MANAGERS

(1) The Agency shall provide specially designed retraining courses for managers who request retraining in a specific area. If the TBE Consultant/Specialist identifies an area in which the manager has a significant deficiency that can be corrected by training, the TBE Consultant/Specialist shall arrange specific remedial training to correct the deficiencies, provided that the findings of the TBE Consultant/Specialist are documented and a copy of the documentation is furnished to the manager. Managers who refuse such retraining may be subject to probation and subsequent termination of license.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.3(11).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-07-.04 UPWARD MOBILITY

(1) Each licensed manager must attend one (1) Upward Mobility training session every year in order to maintain his/her certification(s), unless the manager’s certification(s) have otherwise been extended as provided in chapter 1240-06-04-.02(6).

(2) The Agency and Committee will jointly develop and approve annual training that will meet the recertification training requirements, provided that such training is a minimum of twelve (12) hours.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-1-106, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.14(b)(5).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-07-.05 STATEWIDE MANAGERS’ MEETING

(1) The Agency and the Committee shall jointly sponsor and develop a statewide meeting for all licensed managers which will be held once annually if funds are available for the meeting. The development of the agenda shall be a common effort by the Agency and the Committee. The time and place shall be determined by the Agency and the Committee. Such Statewide Managers’ Meetings may be designated to meet the requirements of 1240-06-07.04(1) above.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-1-106, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.3(11).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-07-.06 REIMBURSEMENT

(1) The Agency shall reimburse licensed managers who participate in Agency-conducted certification training, Upward Mobility, and/or statewide managers’ meetings if out-of-town travel is necessary. Reimbursement shall be limited to travel, lodging, and meals in accordance with Tennessee Comprehensive Travel Regulations. Managers who have not accrued any seniority for a three-year period shall not be eligible for such reimbursement and must pay their own travel expenses.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-301, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.3(11).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-07-.07 POST-EMPLOYMENT SERVICES

(1) The Agency will make available post-employment services to all licensed managers to ensure that each has the opportunity to achieve maximum vocational potential. Such services shall be provided by the Agency’s Vocational Rehabilitation Program.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-301, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.3(11).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-07-.08 AGENCY ASSURANCES

(1) Pursuant to the Vocational Rehabilitation Act of 1973, as amended, the Agency shall ensure that effective programs of vocational training and other services are provided to blind persons as vocational rehabilitation services.

(2) The Agency specifically ensures that all candidates applying for, or participating in, entry level training, certification training, retraining, and upward mobility programs shall not be subjected to discrimination on the basis of race, sex, age, disability, creed, color, national origin, religion, or political affiliation.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.3(11).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Chapter 1240-06-08 Vending Facility Equipment

Tenn. Comp. R. & Regs. 1240-06-08-.01 FACILITY EQUIPMENT

(1) The Agency shall provide sufficient equipment for the use of the licensed manager. This equipment shall remain the property of the Agency. Ownership of vending facility equipment other than that provided by the Agency shall not be vested in the Agency.

(2) No alteration, change, addition, or removal of Agency equipment shall be made without prior approval of the Agency.

(3) The manager shall report immediately any incident, theft, or defacement of equipment.

(4) A manager, with prior approval from the TBE Consultant/Specialist, may lease equipment for use in the operation of the vending facility. In no event shall the Agency be held liable for the manager’s obligation under the terms of any lease or for any repairs associated with the leased equipment. The manager’s obligations to any lessor shall remain in effect without regard to removal or reassignment of any manager for any reason. For purposes of determining the amount of the manager’s set-aside assessment, the proceeds derived from sales of merchandise from leased equipment shall be regarded as income to the vending facility, provided that all expenses for leasing of equipment shall be deductible as a business expense from the gross income of the facility.

(5) Managers who want to place vending machines on full service or subcontract any part of their operations may do so only after getting prior approval from the Agency. The determining factors on whether or not such a request will be approved by the Agency will be profitability, quality of service, availability of adequate storage, and the desires of property management.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-405(b), and 71-4- 604(c); 34 C.F.R. § 395 et seq. and C.F.R. § 395.3(a)(5).
• Administrative History: Original rule filed December 11, 1986; effective January 25, 1987. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-08-.02 MAINTENANCE AND REPAIR

(1) The Agency shall maintain in good repair, or cause to be maintained in good repair, all Agency vending facility equipment and shall replace, or cause to be replaced, worn out or obsolete Agency equipment as required to assure the continued successful operation of the facility. Where used equipment is furnished to replace non-functioning, worn out or obsolete equipment, the Agency shall insure that such Agency equipment is in good working order and shall make any necessary repairs prior to installing such equipment at the vending facility.

(2) When repair and maintenance services are required, the Agency will repair the Agency income-producing equipment, or cause it to be repaired, within forty-eight (48) hours of notification by the manager, provided that parts can be obtained and the equipment is out of VENDING FACILITY EQUIPMENT 1240-06-08 warranty. In the event that the Agency fails to fulfill its obligation under this subsection, the manager shall have the right to withhold the payment of set-aside assessments which are, or become, due until the Agency equipment is repaired or replaced.

(3) Repair and maintenance will be performed using set-aside monies and federal dollars if available. If budgetary constraints require it, the Agency with the active participation of the Committee, shall develop procedures to be incorporated into the operations manual that allow for a co-payment by the manager on each repair call.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-405(b), and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.3(a)(5).
• Administrative History: Original rule filed December 11, 1986; effective January 25, 1987. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-08-.03 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R. § 395 et seq.
• Administrative History: Original rule filed December 11, 1986; effective January 25, 1987. Repeal filed April 8, 2005; effective June 22, 2005.

Chapter 1240-06-09 Setting Aside Funds

Tenn. Comp. R. & Regs. 1240-06-09-.01 SET-ASIDE ASSESSMENT

(1) The Set-Aside Assessment (or administrative fee) is a charge levied against the net proceeds of each vending facility. The manager is responsible for the payment to the Agency of this assessment each month. It represents a certain percentage of the net proceeds realized as a result of the facility’s operation. Incentives and/or discounts may be offered to those managers who meet established performance standards, pay fees on-line, hire legally blind employees, or meet other established requirements.

(2) Net proceeds are determined from gross sales, less merchandise cost and other allowable expenditures, plus commissions, vending machine income remitted to the manager under

chapter 1240-06-14, and rebates, bonuses, ATM and other fees paid to or collected by the manager. The amount of set-aside assessment may not be deducted as an expense in computing net proceeds.

(3) All funds collected as set-aside assessments are deposited into an interest-bearing account, and earned interest income shall be used for the same purposes as outlined in 1240-06-09- .02.

(4) The percentage of net proceeds to be paid to the Agency by each manager is predicated upon a schedule negotiated between the Agency and the Committee, determined to be sufficient for the TBE’s operation, while at the same time allowing for the retention of reasonable reserves by the Agency. In no event shall any negotiated schedule exceed a maximum of fifteen (15) percent as prescribed by T.C.A. § 71-4-509, nor shall any new or modified schedule be implemented without the approval of the U.S. Rehabilitation Services Administration.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-509, 71-4-604 and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.9(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered as 1240-6-8-.01) Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-09-.02 PURPOSE FOR WHICH SET-ASIDE ASSESSMENTS MAY BE USED

(1) Pursuant to the provisions of 34 C.F.R. §§ 395.8 and 395.9, funds derived from set-aside assessments can only be used for the following purposes:

(a) Maintenance and repair of equipment, (b) The purchase of new equipment, (c) The replacement of equipment, (d) Management services, (e) Assuring a fair minimum of return to vendors, and (f) The establishment and maintenance of retirement or pension funds and/or health insurance contributions, if it is so determined by a majority vote of blind vendors licensed by the State licensing agency, after such agency provides to each such vendor information on all matters relevant to such proposed purposes.

(2) The Agency shall maintain sufficient records to assure the reasonableness of the use of setaside assessments in the operation of TBE and for those purposes designated.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-501 et seq., and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. 395.9(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered as 1240-6-8-.02). Amendment filed March 10, 1989, effective April 24, 1989. Repeal and new rule filed April 27, 1998, effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-09-.03 REQUIREMENTS FOR FINANCIAL REPORTING

(1) Each vending facility manager must file with the Agency a monthly financial report of his/her business operation. The report and payment of set-aside assessments currently due the Agency shall be due on the 8th day of the month following the month in which the business was transacted. Reports shall be submitted in the format and method required by the Agency.

(2) If a manager fails, without the showing of good cause, to file the monthly financial report and/or fails to make payment of set-aside assessments as required by these rules, the manager shall be placed on probation for a period of thirty (30) days pursuant to chapter 1240-06-03-.02(1) for either one or both of these infractions. For each offense, the Agency shall assess the manager a penalty of $25.00.

(3) In the event managers file online and pay their set-aside fees via electronic transfer, the probation and penalties outlined in 1240-06-09-.03(2) above shall apply if an Automatic Clearing House (ACH) transfer is returned for insufficient funds.

(4) Falsification of records by the manager, as validated by the Agency or other state entity, will result in the termination of a manager’s license without placing the manager on probation.

The termination will be preceded by a thirty (30) day written notice by the Agency advising the manager of such action and his/her right to appeal in accordance with chapter 1240-6-11.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-501 et seq., and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.9(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-09-.04 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R. § 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 9, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed May 25, 1983; effective January 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. Amendment filed March 13, 1989; effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-09-.05 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R. § 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered as 1240-6-8-.05.) Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-09-.06 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R. § 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered as 1240-6-8-.06.). Repeal filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-04-09-.07 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, and 71-4-604(c); 34 C.F.R. § 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed November 8, 1979; effective January 29, 1980. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed November 6, 1985; effective December 6, 1985. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered as 1240-6-8-.07.) Amendment filed March 10, 1989; effective April 24, 1989. Repeal filed April 8, 2005; effective June 22, 2005.

Chapter 1240-06-10 Facility Operational Requirements

Tenn. Comp. R. & Regs. 1240-06-10-.01 DAYS AND HOURS OF OPERATION

(1) It shall be the responsibility of the manager to comply with the terms of the permit and/or the bid announcement regarding the days and hours designated for the facility to be open for business. It is required that the manager be present at least four (4) days and a minimum of thirty (30) hours each week; however, it is not necessary for the manager to be present during all of the hours that the facility is open. Exceptions to this provision must be approved in writing by the appropriate Business Enterprises Supervisor. In the absence of the manager, it is essential that a qualified employee be on duty to insure that all customers’ needs are being met and that the facility is otherwise being operated in compliance with all rules and regulations which govern its operation.

(2) During periods when the manager is absent from the facility as a result of advanced training offered by the Agency, Upward Mobility seminars, annual vacations or short-term illnesses, the manager shall designate an employee to assume the responsibilities of the business .

The manager shall advise the Agency of the person who has been selected to operate the facility.

(a) If it is anticipated or if the manager is absent from the facility for more than twenty (20) consecutive working days as a result of an illness or recently incurred disability, the manager must apply for medical sick leave and provide information as required by the Agency regarding the illness or disability.

(b) In the event the illness and/or disability are projected to be of a prolonged nature, the Agency shall grant up to a maximum of one-year sick leave. The maximum sick leave of one year is a total accrual during any five-year period of the licensed manager’s tenure as a licensed manager, excluding minor illnesses which do not exceed twenty (20) consecutive working days. If, due to medical reasons, the manager wants to be relieved of the responsibilities of the facility and the manager’s physician provides to the Agency medical documentation that the manager’s illness and/or disability is so severe that (s)he will be precluded from managing the facility, the Agency shall relieve the manager of the responsibilities and upon request, place him/her on medical transfer status, at which time the Agency shall declare the facility to be ready to be announced for bid or place it under temporary management. Under these circumstances, the manager’s transfer eligibility shall be valid for a period of two (2) years.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered as 1240-6-9-.01). Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-10-.02 PERSONAL APPEARANCE, HYGIENE AND FACILITY CLEANLINESS

(1) It shall be the obligation and responsibility of the manager to, at all times, project the image of personal cleanliness, which includes being appropriately groomed and dressed appropriately in accordance with the environment of the facility location, any terms of the permit or contract, TBE’s dress code, and/or any other dress code imposed by property management on its employees. The manager must assure that all employees adhere to the same standard. A violation of this rule by the employee shall be treated as a violation committed by the manager.

(2) The Agency, with the active participation of the Committee, shall develop a standardized dress code for managers and their employees. A copy of the dress code will be included in the Operations Manual and will be strictly enforced.

(3) Irrespective of the circumstances, the facility and all of its equipment must be kept clean and sanitary at all times. The manager will adhere to any standardized sanitation procedures developed by the Agency with the active participation of the Committee.

(4) The Business Enterprises Consultant/Specialist shall conduct periodic inspections of the vending facilities in accordance with policies and procedures developed by the Agency, with the active participation of the Committee, to ensure compliance with this section.

(5) All Health Department rules and regulations shall be observed in every respect.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered as 1240-6-9-.01). Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed September 28, 1993; effective December 13, 1993. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-10-.03 FACILITY MERCHANDISE

(1) The merchandise available for sale in a vending facility shall be in compliance with the terms and conditions of the permit. Substantial deviations from this approved merchandise shall not be made by the manager without first seeking consent of the Agency and property management. The merchandise available for sale may be prepared on or off-site, depending upon the facility equipment, the classification of the facility, and the Health Department rules to be observed. The merchandise may be sold manually and/or dispensed through the use of vending machines.

(2) The Agency shall provide the initial stock for use by the manager. It is the obligation and responsibility of the manager to have the initial level of merchandise in the facility at all times and, if necessary to meet customers’ demands, the inventory shall be increased by the manager in an amount sufficient to address the identified needs. It is required that the manager has sufficient quantity and variety of merchandise in the facility in order to satisfy the intent of this subsection. This includes properly stocking all vending machines in the facility.

(3) The value of the inventory is to be calculated at wholesale cost. Ownership of the initial stock or its current wholesale cash value shall be vested in the Agency. Ownership of all stock and/or cash above the initial inventory level shall be vested in the manager. If the TBE Consultant/Specialist suspects that the merchandise inventory is below the initial level, a complete inventory may be taken by the TBE Consultant/Specialist. The manager shall be given prior day notice of the inventory to be conducted.

(4) At the beginning of each calendar year, the manager shall conduct an inventory of all merchandise and supplies in the facility and submit it to his/her TBE Consultant/Specialist on or before February 15th of each year. In the event that a financial analysis is deemed to be appropriate at some subsequent time prior to the next scheduled inventory, the previous record referred to above shall be used as a beginning point, so that the collection of other data will be meaningful when all of it is assembled for final review.

(5) The Agency, with the active participation of the Committee, shall develop inventory control procedures, which shall be incorporated into the Operations Manual.

(6) Managers who leave TBE for whatever reason are not relieved of their responsibilities to repay any inventory shortages. The Agency may use methods that it deems appropriate to collect any such indebtedness.

(7) The manager shall determine the pricing of the merchandise to be sold in the facility provided that it is reasonably compatible with that of the vicinity competition. In some cases, pricing may be addressed in the permit and the manager is required to comply with any such provisions.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986, effective January 25, 1987. (Formerly numbered as 1240-6-9-.01) Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-10-.04 STANDARDS OF PERFORMANCE

(1) The Agency, with the active participation of the Committee, shall establish standards of performance for all managers. These standards, along with procedures for addressing managers who do not meet the standards, shall be incorporated into the Operations Manual.

The Agency shall provide periodic reports on how the manager is performing in relation to the established standards.

(2) If a manager fails to meet any of the established standards, the TBE Consultant/Specialist and the manager will jointly develop a plan of action, with specified time frames, that will enable the manager to make the necessary improvements to meet the standards. It will be the responsibility of the manager to implement agreed upon action steps to improve performance. Failure by the manager to implement such action steps will result in disciplinary action.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered as 1240-6-9-.01). Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-10-.05 PARTNERING WITH PRIVATE ENTITIES

(1) With prior approval from the Agency, managers may partner with private entities in order to meet TBE’s obligations under the permit. This may include placing vending machines on full service pursuant to chapter 1240-6-8-.01(5). Additionally, a manager may choose to partner with a private company to provide other portions of the facility operation if prior approval is secured from the Business Enterprises Consultant/Specialist. The determining factors on whether or not such a request will be approved are profitability, the quality of the service, the availability of storage, and the desires of property management. A partnering arrangement does not relieve the manager of the responsibility to ensure that service is provided in accordance with these rules and regulations and the Operations Manual.

(2) There may be facilities where the Agency, after consultation with the area representative(s) of the Committee, chooses to partner with a private entity to help it meet its obligations to property management. If the Agency has entered into such a partnering agreement with a private entity, any licensed manager who chooses to bid on the facility shall be obligated to work with the private entity in such a way as to ensure the provision of quality services.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-10-.06 PUBLIC RELATIONS WITH CUSTOMERS, SUPPLIERS, AND PROPERTY

MANAGEMENT OFFICIALS.

(1) The manager must be committed to the highest standard of honesty, integrity, and responsibility in the ethical conduct of the vending facility. The manager’s conduct in all matters must reflect positively on TBE and blind persons in general. The manager shall not engage in any conduct that might bring TBE into disrepute. The Agency, with the active participation of the Committee, shall develop and incorporate into the Operations Manual an ethics statement that must be signed by a manager as a condition of licensing.

(2) In addition to providing a high quality food service and as a means of promoting sales, it is the responsibility of the manager and his/her employees to create a pleasant and wholesome atmosphere in the facility for the customers. It is required that patrons of the business be served promptly and treated cheerfully and courteously. The manager shall accommodate, within reasonable limits, requests normally expected in any food service operation. This does not include extending credit to customers, although the manager may do so if (s)he wishes, but it must be realized that losses as a result thereof are those of the manager, and the Agency assumes no responsibility.

(3) The manager is free to negotiate with any purveyors of merchandise and/or supplies. Under no circumstances may a manager purchase merchandise and/or supplies from a corporation, partnership or other legal entities if the manager and/or an immediate family member have an interest of any type in such organizations. Normally, managers are required to purchase merchandise and supplies from recognized wholesalers; however, an exception to this provision shall be made to allow managers to purchase from retailers when it is financially advantageous to do so, or to purchase from other managers when it is convenient, provided that in no event shall the manager reflect a higher merchandise cost than (s)he was actually charged.

(4) Irrespective of the purveyor, the manager shall pay for the merchandise pursuant to the terms which are arranged with the supplier. Failure to do so shall constitute a violation of this subsection and result in a ten (10) days notice to the manager to liquidate the indebtedness. If the manager does not pay within the ten (10) day limitation, the Agency shall initiate disciplinary action.

(5) The manager shall comply with all reasonable requests of property managing officials if the requests are within the ability of the manager to meet and not in conflict with these rules or the provisions of the permit. The manager is free to accommodate the property-managing officials in other areas if (s)he chooses to do so in order to promote good public relations. If differences arise between the manager and property-managing officials, the manager shall immediately contact his/her TBE Consultant/Specialist so that a resolution might be quickly achieved.

(6) In the event that the Agency receives a complaint regarding the manager, his/her employees, and/or the operation of the facility, the TBE Consultant/Specialist will immediately investigate to determine the validity of the complaint and document the findings. If the complaint is found to be valid, the TBE Consultant/Specialist and the manager shall immediately formulate a plan of action to address the concern of the complainant.

(a) If the complaint is in writing, it shall be immediately given to the manager. If it is validated as correct, the manager shall have thirty (30) days to file a response with the Agency. Both the complaint and the response shall be placed in the permanent record for a period of one (1) year, after which time, it will automatically be purged from the record. This does not mean that the manager has thirty (30) days in which to correct problems that have been validated by the TBE Consultant/Specialist.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), and 71-4-604(c); 34 C.F.R. §395.7(c).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-10-.13 PERFORMANCE BOND

(1) In certain types of facilities as determined by the Agency, the manager will be required to maintain on account funds that have been given to him/her to prepay for products. An example would be an inmate commissary where the manager maintains the inmate trust fund. In such cases the manager shall be required by the Agency to secure a performance bond to protect these funds in the event the manager leaves the facility without turning over the balance of funds to the Agency or incoming manager.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7.
• Administrative History: New rule filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-10-.07 DRUG-FREE ENVIRONMENT

(1) The TBE vending facility is a drug-free environment. The manager shall not at any time participate in the use of illegal drugs. If there is reasonable evidence to suggest that a manager may be in violation of this section, the Agency may require that the manager undergo a drug screening at a location specified by the Agency and at the Agency’s expense.

If it is determined that the manager is using illegal drugs, an emergency situation may be declared pursuant to chapter 1240-6-6-.02.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), and 71-4-604(c); 34 C.F.R. 395.7(c).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-10-.08 NON-DISCRIMINATION

The manager of a TBE vending facility shall not discriminate against any present or prospective customer, supplier, employee, or other individual who might come into contact with the vending facility on the basis of sex, age, disability, religion, color, creed, national origin, or political affiliation.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-10-.09 INSURANCE COVERAGE

(1) Each permanently assigned or temporarily assigned manager shall be required to obtain and maintain public liability and products liability insurance coverage with limits as specified by the permit (or as designated by the Agency) and naming property management as co-insured. In addition, the manager shall be required to obtain workman’s compensation insurance if required by State law as a consequence of the number of employees. If a vehicle is required in the operation of the vending facility, the manager shall be responsible for ensuring that such vehicles are adequately insured. All expenses for insurance coverage are deductible as a business expense to the facility. Each manager is required to provide the Agency with certificates of insurance, validating that the protection is in force.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-10-.10 TAXES, PERMITS AND LICENSES

(1) The manager shall be responsible for paying all applicable state, federal, and local taxes in a timely manner and securing any necessary permits or licenses required for the operation.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-10-.11 RECORD KEEPING AND REPORTING

(1) It shall be the responsibility of each manager to establish, maintain, and retain financial, payroll, personnel, and operational records as required by law or by policies contained in the Operations Manual. The vending facility manager is required to maintain all such records for a minimum of four years. In addition, managers are expected to comply with record retention requirements of other governmental bodies.

(2) Reports required by TBE policies developed with the active participation of the Committee shall be filed promptly with the Agency. The reports and supporting documentation will be periodically reviewed by the Agency and will be subject to examination, analysis, and/or audit at any time by Fiscal Services, Internal Audit, or TBE staff. All examinations, analysis, and audits will be conducted in accordance with generally accepted auditing procedures. This provision shall not be construed to restrict any audit required by other entities of government and authorized by federal or state laws.

(3) The manager must open a separate banking account in which sufficient funds are maintained to conduct the business of the vending facility.

(4) Each vending facility manager must immediately report to the Agency, in writing, any findings resulting from a governmental audit, either state or federal, or any citation for critical violation of any health regulations or any state law related to the operation of the vending facility.

(5) Any bankruptcy action filed by the manager which directly or indirectly affects the Agency or creditors of the facility, must be reported to the Agency, in writing, within five days of filing.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395.7(c).
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-10-.12 BUSINESS PLAN

(1) Each manager will be required to develop and submit to his/her TBE Consultant/Specialist a business plan no later than Feb. 15 of each year. This plan shall set sales and profit targets for the year and strategies for achieving those targets and for meeting all performance standards. The plan shall be submitted in the format jointly developed by the Agency and Committee. Once received, the TBE Consultant/Specialist will meet with the manager to review, revise, and finalize the plan. Failure to submit or make reasonable efforts to adhere to the business plan may subject the manager to disciplinary action.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.7.
• Administrative History: New rule filed May 25, 2017; effective August 23, 2017.

Chapter 1240-06-11 Administrative Review, Evidentiary, Fair Hearing and Arbitration

Tenn. Comp. R. & Regs. 1240-06-11-.01 ADMINISTRATIVE REVIEW

(1) A manager who is dissatisfied with any action arising from the operation or administration of TBE may ask for a review of the action by filing a written request within thirty (30) days of the Agency’s action with the Director of Services for the Blind and Visually Impaired with the Department of Human Services, or the manager may file an appeal pursuant to chapter 1240-6-11-.02. If the manager elects to have a review conducted by the Director of Services for the Blind and Visually Impaired, the written request for such review, which may be filed by the manager or a chosen representative, must specify the action(s) to be reviewed and the reason(s) for the manager’s dissatisfaction.

(2) Upon receipt of a request for an administrative review, the Director of Services for the Blind and Visually Impaired shall designate a member of the management staff who shall have fifteen (15) working days to file a written response, outlining the reason or reasons for any action objected to by the manager. In filing his/her response, the Agency representative shall forward a copy to the manager and to the manager’s representative, if designated.

(3) Upon receipt of the response from the Agency representative, the manager or his/her representative shall have ten (10) working days in which to file any objections or make reply, after which the Director of Services for the Blind and Visually Impaired shall evaluate the materials submitted and issue a written decision thereon. The decision shall be issued within fifteen (15) working days following the close of the period allowed for the manager’s reply. The manager or a chosen representative may file an appeal in accordance with chapter 1240-6-11-.02 if the decision issued by the Director of Services for the Blind and Visually Impaired fails to resolve the manager’s dissatisfaction.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 and 34 C.F.R. § 395 et seq.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1989. Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-11-.02 EVIDENTIARY FAIR HEARING

(1) The Agency shall provide the manager an opportunity to seek remedy for his/her dissatisfaction with Agency action arising from the operation or administration of TBE through an evidentiary fair hearing. The manager or a representative selected by the manager shall request an evidentiary fair hearing in writing within thirty (30) days of the agency's action from which the grievance arises or within fifteen (15) days following the manager’s receipt of a decision issued by the director of services for the Blind Division pursuant to rule 1240-6-11-.01. All rules on file pertaining to the Department’s procedures for conducting fair hearings will apply to the request for a fair TBE hearing.

(2) A request for an evidentiary fair hearing, filed by the manager, or a representative selected by the manager, shall be made to the Agency on an official appeals form and shall be completed and signed by the manager or his/her representative.

(a) The request shall be sent to the Agency office in which the manager is supervised. A copy of the request shall be sent to the manager’s representative on the Committee of Blind Vendors.

(3) The evidentiary fair hearing shall be conducted in accordance with the following:

(a) Time and Place of Hearing - A fair hearing shall be held in the state office at a time and place convenient to the manager.

(b) Notice of Fair Hearing - A notice of hearing shall be given to the licensee at least fifteen (15) working days prior to the date set for the hearing.

(c) Maximum Time Limit - The overall time limit for processing a fair hearing is ninety days, except when a hearing is delayed for:

1. Illness of the manager, or 2. Delay in obtaining evidence because of circumstances beyond the control of the manager or the Agency. The time limit applies to the period extending from the date the original request is received by the Agency until the date of the decision.

(d) Hearing Officer - An administrative judge shall be an impartial official, assigned by the Commissioner or his/her designated representative, to serve as hearing officer.

(e) Right of Counsel - The licensee is entitled to legal counsel or other representation. Such counsel shall be at his/her own expense or he may wish to avail himself of any legal services available in the community at little or no cost.

(f) Issuance of Subpoenas - Subpoenas shall be issued in accordance with the state rules governing the Department of Human Services Administrative Procedures Division.

(g) Rules of Evidence - The administrative judge shall exercise every reasonable effort to obtain the most credible evidence of fact in the case.

(h) Presentation of Case - The party shall be given every opportunity to present his/her case, examine and cross-examine witnesses, present argument and rebut evidence.

(i) Transcript - A transcript shall be made of the oral evidence and shall be made available to the parties upon request. The Agency shall pay all transcript costs and other costs associated with the conduct of the hearing.

(j) Content of Record - The transcript of testimony, exhibits, and all papers, and documents filed in the hearing shall constitute the exclusive record for decision.

(k) Initial Order - An Initial Order shall be issued by the hearing officer in accordance with state law and state rules governing the Department of Human Services Administrative Procedures Division.

(l) Notice of Right to a Petition for Reconsideration and/or Appeal of the Initial Order - Written notice of the right to petition for reconsideration and/or appeal is to accompany the Initial Order mailed to the parties. A petition for appeal of an Initial Order must be filed with the Commissioner of the Department of Human Services or his/her designated representative within fifteen (15) days after entry of an Initial Order. Also, any party, within fifteen (15) days after entry of an Initial Order, may file a petition for reconsideration with the hearing officer stating the specific grounds upon which relief is requested. If an Initial Order is subject to both a timely petition for reconsideration and appeal, the petition for reconsideration shall be disposed of first; and a new fifteen (15) day period shall start to run upon disposition of the petition for reconsideration.

(m) Final Order - The Commissioner of the Department of Human Services will review the facts of the case and the Initial Order that has been entered and enter the Final Order in the case.

(n) Notice of Right to a Petition for Reconsideration of a Final Order - Written notice of the right to petition for reconsideration of the Final Order is to accompany the Final Order to the parties.

Any party who feels aggrieved by a Final Order, may within fifteen (15) days following the date of the Order, file a written petition for reconsideration which shall specify in detail the reasons for the request.

(o) Pursuant to T.C.A. § 71-4-508(a), the Agency shall have sole jurisdiction to provide administrative review or an evidentiary hearing to a licensed manager.

(4) Pursuant to T.C.A. § 71-4-508(c), the State of Tennessee does not waive its sovereign immunity under the Eleventh Amendment of the U.S. Constitution or the Constitution of the State of Tennessee.

History

• Authority: T.C.A §§ 4-5-201 et seq., 4-5-311, 49-11-601 et seq., 71-1-104; 71-1-105(12), 71-4-508(a),(c), and 71- 4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395, 395.13.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered as 1240-6-10). Amendment filed March 10, 1989; effective April 24, 1989. Amendment filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-11-.03 ARBITRATION

(1) A vending facility manager, after having been provided a full evidentiary hearing by the Agency because of dissatisfaction with some Agency action, may request the convening of an arbitration panel by the U.S. Secretary of Education, because of the decision rendered as a result of such hearing.

(2) A complaint requesting the convening of an arbitration panel must be filed by the manager or his/her representative within a reasonable period of time from the date the manager receives notification of the Final Order rendered in the full evidentiary hearing.

(3) The arbitration proceedings will be conducted pursuant to 34 C.F.R. § 395.13.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.13(c) through (h).
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed June 9, 1981; effective August 18, 1981. Amendment filed February 28, 1983; effective May 16, 1983. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Chapter 1240-06-12 Committee of Blind Vendors

Tenn. Comp. R. & Regs. 1240-06-12-.01 PURPOSE AND FUNCTIONS

(1) The Committee is a group of licensed managers elected by their peers in different geographic regions of the state to represent the managers’ interests in the operation of TBE.

(2) The general purpose of the Committee is to aid and assist the Agency in the appropriate administration of the Randolph-Sheppard program in the state. It is the joint objective of the Committee and the Agency for the Committee to have meaningful participation with the Agency in making major administrative decisions regarding policies, standards, and procedures which affect the overall operation of TBE or which eliminate, modify, or impose additional requirements upon the licensed managers.

(3) Pursuant to the provisions of 34 C.F.R. § 395.14, the Committee shall function as follows:

(a) Actively participate with the Agency in major administrative decisions, including rule, policy development, and program development decisions affecting the overall administration of the State’s vending facility program;

(b) Receive and transmit to the Agency grievances at the request of managers and serve as advocates for such managers in connection with such grievances;

(c) Actively participate with the Agency in the development and administration of a State system of transfer and promotion of managers;

(d) Actively participate with the Agency in the development of training and retraining programs for managers; and (e) Sponsor, with the assistance of the Agency, meetings and instructional conferences for managers within the State.

(4) In addition to the functions listed above, the Committee shall:

(a) Participate with the Agency in the development of the budget for the Agency each fiscal year, predicated upon all of the financial information provided to the Committee throughout the year together with the Agency’s projections, which shall be provided to the Committee in writing in July for the anticipated income and expenditures for the fiscal year in question.

(b) Make recommendations regarding the hiring of TBE management staff under the supervision of the Director in the State Office. The Committee may interview applicants for these positions and recommend its selection(s) to the Agency.

(5) The Committee may adopt those methods and procedures which it deems to be appropriate and necessary in addressing these functions, including the appointment of subcommittees as allowed by the Committee’s by-laws.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-603, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.14.
• Administrative History: Original rule filed August 30, 1978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly number 1240-6-11-.02). Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-12-.02 AGENCY’S RESPONSIBILITIES TO THE COMMITTEE

(1) The Agency shall prepare written financial reports and file them with the Committee on a quarterly and annual basis, identifying revenues received from all sources, expenses incurred, and changes in fund balances for the set-aside account and for the unassigned accounts for the period or periods covered by the reports.

(2) In order to insure the accuracy of the Ready-for-Employment List and to assist the Committee to fulfill its role of verifying seniority and certifications as part of the promotion process, the Agency shall provide to the Secretary and all other members of the Committee an updated list of all licensed managers with the pertinent information at the regularly scheduled quarterly meetings.

(3) If the Agency is considering a major administrative decision, written notice shall be provided to the Committee of the anticipated change at least twenty-one (21) days prior to participating with the Committee regarding the decision. Conversely, the Agency shall always welcome recommendations from the Committee relative to major administrative changes.

(4) After affording the Committee the time and opportunity for meaningful participation with the Agency, but when complete agreement is not achievable and a decision needs to be made, the Agency has the ultimate responsibility for the administration of the program. The Agency shall make the final determination and notify the Committee of its action in writing. This notification shall clearly state the basis for the decision and indicate the reasons for not adopting the recommendations of the Committee.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.14.
• Administrative History: Original rule filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly number 1240-6-11-.02). Amendment filed March 10, 1989; effective April 24, 1989. Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-12-.03 ELECTION OF THE COMMITTEE

(1) The full Committee shall be elected biennially in every odd numbered year. Nominees for the Committee must be licensed managers who are either permanently or temporarily assigned to a vending facility. Only licensed managers who are permanently or temporarily assigned to a vending facility may vote in the elections. Managers must manage a facility in the same regions from which membership on the Committee is being determined. The number of Committee members from each region will be determined jointly by the Agency and Committee. By seeking membership on the Committee, a manager agrees to have his record of performance for the previous twelve (12) months released for inspection by all managers to be considered when casting their votes.

(2) The Committee representative(s) in each region shall call a meeting of all managers on or prior to April 15th in each odd-numbered year. The purpose of the meeting is to determine the names of the nominees who will be competing for the available Committee seat(s) in the upcoming election. The number of nominees is limited to twice the number of representative(s) designated for the region. If there are more nominees than allowed for a region, the managers in attendance at the local meeting shall vote to determine which nominees will be submitted to the state office. It is the responsibility of the Committee representative(s) from each region to submit the names of the nominees in writing to the Agency by April 30th so that the election process may be commenced. A manager must be present at the regional meeting to nominate a candidate or have their name submitted for nomination. A manager may submit his/her own name for nomination. These meetings may be held in person or by teleconference.

(3) After the Agency has received the names of the nominees, the ballots will be prepared for each region and sent only to permanently and temporarily assigned licensed managers in the region. The ballot will identify the region and all the names of the nominees will be listed.

Additionally, space will be indicated and allowed for the names of write-in candidates, one for each seat available. The date when the ballots must be postmarked for return mailing shall also be indicated, which is twenty-one (21) calendar days from the date of the original mailing.

(a) After the Agency has completed the preparation of the ballots, an auditor from the Division of Internal Audit shall review the ballots for each region and witness the process of sealing them in envelopes. The sealed ballot, in an envelope identified only as a “ballot”, and a pre-addressed return envelope addressed to the Division of Internal Audit shall be sent to the managers by registered mail, return receipt requested. The process of depositing the ballots in the mail shall be the responsibility of the assigned auditor. In the event that a manager does not receive a ballot, the Agency will issue another, provided that information validating the non-delivery of the original ballot is received.

(b) After the expiration of twenty-eight (28) calendar days from the date of the mailing of the ballots, a date and time will be set with the Division of Internal Audit for the counting of the ballots, so that the election process can be completed by June 20th. All candidates and the members of the Committee will be notified of the date and time, so that they may be present if they so choose. In addition to the personnel from the Division of Internal Audit, there shall be one Agency official available to witness the count.

(c) In the event of a tie vote for one or more seats, a run-off election will be held. New ballots will be prepared for the managers in the particular region. The same process as described in subparagraph (a) above shall be used, except that no write-in candidates shall be permitted. The ballots shall be mailed within five (5) working days from the original date of the counting of the votes. Ten (10) working days shall be allowed for the return of the ballots. After the expiration of fifteen (15) working days from the date of the mailing of these ballots, a date and time will be set with the Division of Internal Audit for the counting of the ballots and notification will be provided as described in subparagraph (b) above so that the run-off election can be completed by July 15th. If the run-off election does not change the result, the full Committee shall select one of the candidates as the winner prior to its July meeting.

(d) After the election is complete and the membership of the new Committee is determined, the official seating of the membership shall occur in the July meeting of the Committee after all business (old and new) has been transacted for the preceding fiscal quarter, and all other matters before the outgoing Committee have been addressed.

(e) An elected member of the Committee automatically vacates the seat if the manager for whatever reason no longer has a temporary or permanent assignment or no longer meets the requirements of 1240-06-12-.03(1) in another region. Additionally, the seat is lost if a manager’s license is terminated or if the Committee determines that the manager is in violation of the by-laws adopted by the Committee. Under any of these circumstances, an election must be held in order to fill the vacancy. Within ten (10) working days of the occurrence which leads to the vacancy, the Committee shall call a meeting of all managers in the region to select nominees to compete for the available seat. Immediately upon receipt of the names of the nominees, which shall be within twenty (20) working days after the vacancy occurs, the Agency shall conduct an election in accordance with the provisions of subparagraph (c) above relating to a run-off election, except that write-in candidates shall be permitted.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395.14.
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-12-.04 COMMITTEE MEETINGS

(1) The Committee shall have four quarterly meetings each year. The meetings are to be held in January, April, July and October. The time and place of these meetings are determined by a majority vote of the Committee. TBE management staff will attend each of these meetings to provide financial information, answer questions, orally submit a report regarding the Agency’s activities during the preceding quarter, and advise the Committee of any future plans.

(2) Pursuant to the provisions of the Committee’s by-laws, special call meetings may be held under extraordinary circumstances which require emergency action by the full Committee that cannot be achieved by a telephone conference call.

(3) All members of the Committee will be reimbursed for travel, lodging and meal expenses while on official Committee business in accordance with Tennessee Comprehensive Travel Regulations. Reimbursements will be paid if the appropriate travel claim is submitted within thirty (30) days from the date the expenses were incurred. Expenses for special call meetings cannot be paid unless prior approval is sought and granted for the meeting in question.

(4) In lieu of 1240-06-12-.03(3) above, the Agency and Committee may elect to hold the biennial elections at the annual Statewide Managers’ Meeting or via the Internet provided that accessible voting machines, websites, or other methods of secret ballot can be made available. In the event elections are held at the Statewide Managers’ Meeting the provisions of 1240-06-12-.03(3)(c), (d), and (e) are still applicable.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395.14.
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Chapter 1240-06-13 Priority for the Establishment of Vending Facilities

Tenn. Comp. R. & Regs. 1240-06-13-.01 PRIORITY FOR THE ESTABLISHMENT OF VENDING FACILITIES ON PUBLIC

PROPERTIES IN TENNESSEE.

(1) Pursuant to T.C.A. § 71-4-501 et seq., any properties owned or leased by the State, or properties owned or leased by political subdivisions of the State such as county or municipal governments, must recognize the priority granted to the Agency. The Agency must be permitted to conduct surveys of public properties to determine the feasibility of establishing one or more vending facilities on a particular property. This priority is exclusive and unconditional except for cafeteria service. With respect to cafeteria operations, the Agency must submit a bid to compete to provide the service and will have priority if its bid is within the competitive range when considered with all other bids.

(a) For purposes of determining the competitive range, the Agency’s bid must be within two (2) percentage points of the bid deemed to be the winning bid. This means that if the commission of the would-be winning bid is eight (8) percent; the Agency’s proposal must offer at least six (6) percent. At its sole discretion, the Public Property may elect to enter into direct negotiations with the Agency in lieu of the above. If the results of the survey substantiate that the establishment of a vending facility is feasible, property management shall take all necessary steps to insure that the installation occurs, and that the space and the utilities required are provided (at no cost to the manager) for the operation, except telephone service. The agency shall provide the necessary alterations, plumbing and equipment, merchandise, a licensed manager, and the appropriate supervision of the manager.

(b) In the event that existing buildings are purchased or leased or new buildings are constructed by any of the entities referred to above, written notice shall be given to the Agency in ample time to afford the Agency an opportunity to make plans to provide the service.

(c) All vending facility operations, except those relating to cafeteria service, shall be governed by an agreement between the Agency and property management, known as a permit. The permit shall include the location, type of facility, space available, all necessary equipment and the operating hours of the facility. For a cafeteria service, a contract between the Agency and property management will be executed which may impose certain requirements upon the manager regarding the operation, including costs for which the manager shall be responsible. In the negotiation process between the Agency and property management regarding either the terms and conditions of an occupancy permit or a contract, the area representative(s) of the Committee shall have an opportunity to participate with the Agency in making final determinations with respect to the terms and conditions of an occupancy permit or contract. The terms and conditions of the permit may be changed after consultation with the manager for purposes of soliciting his/her input. Once the changes have been made, the revised document shall be provided to the manager. The absence of an executed permit does not relieve a manager of his/her responsibilities to otherwise comply with these rules and regulations and/or to provide effective management of the vending facility.

(d) Public Property management may not require the payment of rent, utilities, or commissions as a condition for operating a vending facility on Public Property except as provided for in 1240-06-13-.01(1) above. However, the Agency, at its discretion and with the active participation of the Committee of Blind Vendors, may negotiate less restrictive agreements that do require such payments. If such payments are negotiated and are included in the permit agreement, the licensed manager will be obligated to make such payments; however, no subsequent priority is waived either expressly or by implication.

(e) In the event that any dispute between the Agency and property management regarding the granting of the priority, or the establishment or the continued operation of the facility shall be resolved in accordance with T.C.A. § 71-4- 507.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-1-501, 71-4-507, 71- 4-603, and 71-4-604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.30.
• Administrative History: Original rule filed August 30, l978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered

Tenn. Comp. R. & Regs. 1240-06-13-.02 PRIORITY FOR UNASSIGNED VENDING MACHINE LOCATIONS

(1) Any public property that desires vending services is required pursuant to 1240-06-13-.01 above to notify the department so that a survey can be conducted. If the results of that survey suggest that the location should not be assigned to a blind vendor, the department will arrange for the service to be provided by a third party vendor. Such locations shall be referred to as “unassigned” locations. When making a decision as to whether or not to assign a blind vendor, the department will consider the following factors:

(a) Sales volume, (b) Budgetary/revenue needs of TBE, (c) Cost of installing any equipment, (d) History of the location, (e) Availability of a licensed blind vendor, (f) Any other factors the department deems pertinent relative to the specific location.

(2) The department shall have the authority to select the third party vendor to provide the desired vending services and shall execute an agreement with the third party vendor authorizing said vending services. The department may consult with any entity affected by the selection of the vendor. If a third party vendor is currently providing services, and those receiving said services are satisfied with the level and quality of services, the department may elect to allow that vendor to continue providing services provided an acceptable agreement can be negotiated.

(a) The department shall determine pricing of products to be sold. The department shall ensure that prices are fair and do not exceed prices normally charged by licensed blind vendors in other government buildings. To the extent practical, the department will attempt to ensure consistency in pricing from one unassigned location to another.

(b) The department shall negotiate a fair and competitive commission rate to be paid by the third party vendor to the department for use pursuant to 1240-6-14-.02. The third party vendor shall be required to submit written reports verifying sales and the accuracy of the commission payments. Such reports are subject to audit by the department and/or other state entities. The department shall have the right to establish other procedures as appropriate to ensure it is receiving all funds to which it is entitled.

(c) If a property management official fails to comply with subsection (1) above and arranges for vending services on his/her own and it comes to the attention of the department, representatives of the department shall notify the property management official of the non-compliance and make arrangements for the private vendor to send all future commissions from the vending machines to the department. The department shall negotiate a fair commission rate and may replace the third party vendor if an agreement cannot be reached with the company providing the service.

(d) The department, in its sole discretion, may elect to share revenue from the vending machines with the state or local government entity. This will be done primarily to offset any loss in revenue by the government entity as the result of the department assuming responsibility for the vending machines. Such an income sharing arrangement may be time limited and may impact the pricing structure of products being sold through the vending machines.

(e) The department will act to correct any documented deficiencies in service that are brought to its attention. This may include removing and replacing a third party vendor.

(f) The department, in its sole discretion, may elect to remove a third party vendor from any location and assign the vending to a licensed blind vendor. On an annual basis, the department shall provide sufficient information to the Committee of Blind Vendors so that the Committee can actively participate in decisions as to any of the unassigned locations that could be considered for assignment to a blind vendor.

(g) If any dispute arises between property management and the department as the result of enforcement of these provisions, either party shall have the right to file a complaint with the Secretary of State’s Office pursuant to Tenn. Code Ann. § 71-4-507.

(h) Revenue from unassigned locations shall be spent in accordance with 1240-6-14-.02 of these rules and regulations.

(i) The department shall maintain records of all unassigned locations and provide reports on a quarterly basis to the Committee of Blind Vendors.

(j) After affording the Committee an opportunity for active participation, the department may choose to employ adequate staff or may elect to contract with a third party entity to carry out the provisions of this section.

(k) These provisions do not apply to vending machines located at interstate rest areas.

The installation of such machines and the revenue from those machines are governed by federal guidelines.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), 71-4-603, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.14.
• Administrative History: New rule filed April 9, 2007; effective June 23, 2007.

Tenn. Comp. R. & Regs. 1240-06-13-.03 PRIORITY FOR THE ESTABLISHMENT OF VENDING FACILITIES ON FEDERAL

PROPERTIES IN TENNESSEE.

(1) Property management of each federal agency must assure that adequate space is available and utilities are provided to accommodate the establishment of one or more vending facilities.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104, 71-1-105(12), and 71-4-604(c); 20 U.S.C. § 107 et seq.; and 34 C.F.R. § 395 et seq., 34 C.F.R. § 395.30 and 34 C.F.R. Part 3.
• Administrative History: Original rule filed August 30, l978; effective November 29, 1978. Amendment filed May 25, 1983; effective June 24, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered 1240-6-12-.01). Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-13-.04 DECISIONS ON OPENING AND CLOSING FACILITIES

(1) The Agency shall make decisions about opening and closing facilities pursuant to policies and procedures developed with the active participation of the Committee and included in the Operations Manual.

(2) Decisions about adding new satellites to existing vending facilities shall be made by the Agency pursuant to policies developed with the active participation of the Committee and included in the Operations Manual.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395.30 and 34 C.F.R. Part 3.
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Chapter 1240-06-14 Vending Machine Income

Tenn. Comp. R. & Regs. 1240-06-14-.01 VENDING MACHINE INCOME FROM FEDERAL PROPERTY

(1) In the event the Agency receives income from vending machines on federal property which may or may not be in direct competition with a licensed manager, the Agency will be guided by 34 C.F.R. § 395.32 in distributing any such funds to a licensed manager. Any funds not distributed to a licensed manager shall be used by the Agency in accordance with 34 C.F.R. § 395.8 to pay for the managers’ benefits package.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 et seq., and 34 C.F.R. § 395.8(a) and (b).
• Administrative History: Original rule filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 25, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered 1240-6-14-.02). Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-14-.02 VENDING MACHINE INCOME FROM NON-FEDERAL PROPERTY

(1) Vending machine income derived from vending machines on state or other public properties pursuant to T.C.A. § 71-4-504 shall accrue to the Agency. At the conclusion of each fiscal year, the Agency, with the active participation of the Committee, shall determine the purposes for which the vending machine income may be allocated.

(2) The purposes for which vending machine income may be used are:

(a) Contributions to health insurance and/or retirement programs for vending facility managers;

(b) The purchase of new and/or replacement equipment and the repair and maintenance of such equipment, and (c) Costs associated with the training of vending facility managers.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), and 71-4-604(c); 34 C.F.R. § 395 and 34 C.F.R. § 395 et seq.
• Administrative History: Original rule filed June 9, 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 25, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered 1240-6-14-.02). Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal and new rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-14-.03 REPEALED

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; and 71-4-604(c); 34 C.F.R. § 395 et seq.
• Administrative History: Original rule filed June 9. 1981; effective August 18, 1981. Amendment filed May 25, 1983; effective June 25, 1983. Amendment filed December 11, 1986; effective January 25, 1987. (Formerly numbered 1240-6-14-.02). Repeal and new rule filed April 27, 1998; effective August 28, 1998. Repeal filed April 8, 2005; effective June 22, 2005.

Chapter 1240-06-15 Agency's Duties and Obligations

Tenn. Comp. R. & Regs. 1240-06-15-.01 AGENCY COMPLIANCE WITH LEGAL REQUIREMENTS

(1) The Agency shall administer TBE in strict accordance with 20 U.S.C. § 107 et seq., T.C.A. § 71-4-501 et seq., these rules, and the provisions of the Operations Manual.

(2) Any suggested changes proposed by the Agency or the Committee regarding these rules or the provisions of the Operations Manual must be provided to the other at least twenty-one (21) days prior to any negotiating session scheduled for the purpose of considering any revisions.

(3) The Agency shall identify to the Committee the financial needs of TBE at the beginning of each fiscal year, and provide all information necessary in order to allow the Committee to make an informed judgment regarding the use of vending machine income. The Committee shall consider the needs identified by the Agency and make its recommendations to the Agency in sufficient time to be considered in the budgetary process. In reviewing the Committee's recommendations, the Agency shall assure that a minimum of fifty percent (50%) of the total vending machine income received pursuant to T.C.A. § 71-4-504 shall be allocated for the health insurance and/or retirement program.

History

• Authority: T.C.A §§ 4-5-201 et seq., 71-1-105(12), 71-4-503, 71-4-504, 71-4-508, and 71-4-604; 34 C.F.R. § 395. 34.
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-15-.02 AGENCY’S RESPONSIBILITIES TO PROVIDE INFORMATION AND

PROGRAM REPORTING FORMS TO ALL MANAGERS.

(1) The Agency shall provide to each licensed manager a copy of these rules and regulations and a copy of the Operations Manual. These shall be provided in an accessible format if requested by the manager.

(2) The Agency must provide any information regarding the operation of TBE requested by any manager if the disclosure of such information does not violate professional ethics or infringe upon the right to confidentiality of any staff member or any other manager.

(3) The Agency must provide to all managers the reporting forms necessary to comply with TBE rules, policies and procedures. No changes or additions to reporting forms may be adopted by the Agency without first submitting recommendations to and seeking the approval of the Committee.

History

• Authority: T.C.A §§ 4-5-201 et seq., 71-1-105(12), 71-4-503, 71-4-508, and 71-4-604; 34 C.F.R. § 395.
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005. -- 1 of 1 --

Chapter 1240-06-16 Health Insurance and Retirement Program

Tenn. Comp. R. & Regs. 1240-06-16-.01 HEALTH INSURANCE ELIGIBILITY

(1) Pursuant to a majority vote of all licensed managers, vending machine income received by the Agency which is not payable to licensed managers as provided in 34 C.F.R. § 395.8 and which is sufficient in amount shall be used in accordance with 34 C.F.R. § 395.9 to provide health insurance coverage to all licensed, permanently assigned vending facility managers and eligible dependents. Managers who are not permanently assigned and who have established transfer or demotion eligibility shall continue to receive the health insurance benefits so long as there is an accrual of seniority in accordance with chapter 1240-6-5- .06(3). Licensed managers who are temporarily assigned shall not receive such coverage.

Pursuant to budgetary decisions made by the Agency and Committee, managers may be required to pay a portion of their health insurance premiums.

(2) If managers are required to pay a portion of their premiums and their checks or Automatic Clearing House (ACH) transfers are returned for insufficient funds, this will be treated as any other delinquency and shall subject the manager to the same penalties as prescribed in 1240-06-09-.03(2). Once a manager is notified by virtue of receiving a probation letter that a check or ACH transfer has been returned, he/she will have insurance coverage terminated if the manager fails to get current with all premiums due within thirty (30) days. Reinstatement will be subject to the requirements of the carrier.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), 71-4-503, 71-4-509, and 71-4-604; 34 C.F.R. § 395.
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005. Amendments filed May 25, 2017; effective August 23, 2017.

Tenn. Comp. R. & Regs. 1240-06-16-.02 RETIREMENT BENEFITS ELIGIBILITY

(1) Pursuant to a majority vote of all licensed managers, vending machine income received by the Agency which is not payable to licensed managers as provided in 34 C.F.R. § 395.8 shall be used in accordance with 34 C.F.R. § 395.9 to provide a retirement plan for all licensed, permanently assigned vending facility managers. Managers who are not permanently assigned and who have established transfer or demotion eligibility shall continue to receive the retirement benefits if there is an accrual of seniority in accordance with chapter 1240-6-5- .06(3). Licensed managers who are temporarily assigned shall not receive such benefits.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), 71-1-503, 71-4-509, and 71-4-604; 34 C.F.R. § 395.
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Tenn. Comp. R. & Regs. 1240-06-16-.03 CONTRIBUTIONS TO THE RETIREMENT PLAN

(1) The Agency shall, if the monies are available after contributing funding to the health insurance program, make contributions to a retirement plan on an annual basis, if possible.

Such contributions may be made directly to the manager or to an established retirement account depending upon the vote of the Committee.

History

• Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105(12), 71-1-503, 71-4-509, and 71-4-604; 34 C.F.R. § 395.
• Administrative History: Original rule filed April 8, 2005; effective June 22, 2005.

Chapter 1240-06-17 Procurement Requirements

Tenn. Comp. R. & Regs. 1240-06-17-.01 GENERAL

(1) It is the responsibility of the department to administer Tennessee Business Enterprises in accordance with all applicable state and federal laws, rules, and regulations. As the caretaker of funds levied against the licensed blind vendors and funds received from unassigned vending locations, the department must ensure that such funds are accounted for and expended in accordance with acceptable practices.

(2) T.C.A. 71-4-403 exempts TBE from most purchasing requirements normally required of a state entity. This exemption does not relieve the department from being a good steward of the funds. The department must ensure that goods and services are secured at the best price practical taking into consideration all factors. The department will develop internal policies to ensure that goods and services are purchased at a fair and reasonable price.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), 71-4-603, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.14.
• Administrative History: Original rule filed April 9, 2007; effective June 23, 2007.

Tenn. Comp. R. & Regs. 1240-06-17-.02 EQUIPMENT PURCHASES

(1) The department will purchase necessary equipment using funds collected pursuant to 1240-6- 9-.01 and 1240-6-14-.02 and federal vocational rehabilitation dollars if such federal funds are available. Written bids may not be required when purchasing equipment; however, TBE staff has an obligation to ensure that purchases are made in a cost effective manner. In making decisions about which equipment to purchase, the staff person shall consider costs as well as delivery time, quality, past performance of the equipment and/or supplier, trade-in allowance, decor if machines are being matched with other machines in a location, and the preferences of the licensed blind manager who will be servicing the machines.

(2) Although written bids are not required, the department may elect to solicit annual price quotes from vending machine distributors. TBE shall treat these price quotes as bids and will purchase the least expensive piece of equipment when practical if it meets the needs of the facility and the licensed blind manager.

(3) Purchases $1,000 and Less– TBE Consultant / Specialist may make these purchases without prior supervisory approval and without the need to solicit competitive bids.

(4) Purchases from $1,001 up to and including $5,000 – TBE Consultant / Specialist must obtain supervisory and the department’s Fiscal Services approval before making purchases. Written bids are not required except that any price quotes received pursuant to subsection (2) above will be considered when making purchasing decisions.

(5) Purchases Over $5,000 – Any purchase that exceeds $5,000 requires prior supervisory and Fiscal Services approval. Competitive bids will be required in accordance with the TBE’s internal policies and procedures.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), 71-4-603, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.14.
• Administrative History: Original rule filed April 9, 2007; effective June 23, 2007.

Tenn. Comp. R. & Regs. 1240-06-17-.03 CONSTRUCTION AND RENOVATIONS

(1) When installing a new vending facility or renovating an existing vending facility, the department may be required to perform construction. The department shall ensure that any construction work is done at competitive prices. The same requirements as specified in 1240- 6-17-.02 above shall apply to any construction projects.

(2) Construction projects on any state property may require approval by the State Building Commission. The department must comply with the requirements of the State Building Commission.

(3) The architect responsible for the construction project may solicit bids for such project on behalf of the department.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), 71-4-603, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.14.
• Administrative History: Original rule filed April 9, 2007; effective June 23, 2007.

Tenn. Comp. R. & Regs. 1240-06-17-.04 MERCHANDISE PURCHASES

(1) It is the responsibility of the department to provide the initial merchandise inventory for all vending facilities. When purchasing merchandise for a vending facility, the TBE Consultant / Specialist must secure supervisory and Fiscal Services approval regardless of the amount of merchandise being procured. Bids shall not be required. All merchandise shall be purchased from reputable wholesale distributors.

(2) If no wholesale distributor is available or willing to accept the department’s payment authorization, merchandise may be purchased from a licensed blind manager provided the manager sells the product at his/her actual cost.

(3) The amount of merchandise to be purchased for a vending facility shall be made in accordance with policies contained in the Operations Manual and shall be based upon projected sales volume.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), 71-4-603, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.14.
• Administrative History: Original rule filed April 9, 2007; effective June 23, 2007.

Tenn. Comp. R. & Regs. 1240-06-17-.05 PROCUREMENT OF NON-TANGIBLE GOODS AND SERVICES

(1) In order to ensure an effective and efficient operation, the department may choose to procure certain non-tangible goods and services that can be provided better and perhaps more cost effectively by third party private sector vendors. Competitive bids are not always practical.

The department shall generally negotiate a fee or pay the standard and customary rate for the service being provided.

(2) The department, after active participation by the Committee of Blind Vendors, may elect to hire its own technicians to provide vending machine maintenance and repair services or procure the services from private sector vendors. If it elects to purchase such services, the department will establish agreements with local companies who have an expertise in repairing vending machines. These agreements shall include an agreed upon hourly rate, mileage rate not to exceed the amount authorized by Comprehensive State Travel Regulations, and the amount to be paid for parts. At least once every five years, the department shall solicit bids from companies to ensure that costs are competitive. Companies expressing an interest in providing such services will be interviewed by department staff and local representatives of the Committee of Blind Vendors before a private sector vendor is selected to provide the service. Price shall not be the only factor considered when selecting the repair vendor. The department may also consider the company’s record of performance, the qualifications of its vending machine technicians, its financial resources, stability of management, and other such factors.

(3) When a piece of equipment other than a vending machine is in need of repair, the department shall contact a company that specializes in such repairs. For example, if a freezer is broken, a refrigeration company will be contacted; if the air conditioning goes out, a heating and air contractor will be contacted; and if there are plumbing issues, a licensed plumber will be contacted. Whereas bidding individual repair jobs is not practical, the department shall pay the standard and customary fee that the company charges all customers for such services.

(4) The department may choose to incorporate equipment moves into its agreements with the companies providing the vending machine repair services since most of the machines being moved are vending machines. If not, the department will solicit three bids from reputable companies willing to provide the service on an hourly rate. Bids shall be good for a predetermined time period.

(5) On certain construction or renovation projects, the department may have to secure the services of an architect. The department will pay the hourly rate that has been established by the State Building Commission.

(6) From time to time, the department may be required to procure other services on behalf of the program. The department may either pay the standard and customary fee associated with a service or negotiate agreements that ensure that quality services are being provided at fair and competitive prices.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), 71-4-603, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.14.
• Administrative History: Original rule filed April 9, 2007; effective June 23, 2007.

Tenn. Comp. R. & Regs. 1240-06-17-.06 PURCHASES RECOMMENDED BY THE COMMITTEE OF BLIND VENDORS

(1) The Committee of Blind Vendors shall be granted consideration in major administrative decisions, including, but not limited to, funds expended from those levied against licensed blind managers or received in commissions from unassigned locations. This includes making recommendations on the purchase of certain goods and services. When using nonappropriated funds, the department may abide by the recommendations of the Committee of Blind Vendors without the necessity of soliciting written bids provided the Committee considers cost when making its recommendation.

History

• Authority: T.C.A §§ 4-5-201 et seq., 49-11-601 et seq., 71-1-104; 71-1-105(12), 71-4-603, and 71-4- 604(c); 34 C.F.R. § 395 et seq. and 34 C.F.R. § 395.14.
• Administrative History: Original rule filed April 9, 2007; effective June 23, 2007.

1240-07 Community and Social Services Division

Chapter 1240-07-01 Repealed

Tenn. Comp. R. & Regs. 1240-07-01-.01 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 71-1-105, 71-1-105(12), and 71-5-401, et seq.; Public Acts of 1984, Chapter 852; and 42 U.S.C. §§ 8621, et seq.
• Administrative History: Original rule filed October 17, 1984; effective November 16, 1984. Amendment filed January 9, 1990; effective May 1, 1990. Amendment filed July 26, 2000; effective October 9, 2000. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-07-01-.07 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 14-1-105, and 71-5-401, et seq.; Public Acts of 1984, Chapter 852; and 42 U.S.C. §§ 8621, et seq.
• Administrative History: Original rule filed October 17, 1984; effective November 16, 1984. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-07-01-.02 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 71-1-105, 71-1-105(12), and 71-5-401, et seq.; Public Acts of 1984, Chapter 852; and 42 U.S.C. §§ 8621, et seq.
• Administrative History: Original rule filed October 17, 1984; effective November 16, 1984. Amendment filed September 19, 1985; effective December 14, 1985. Amendment filed January 9, 1990; effective May 1, 1990. Amendment filed July 26, 2000; effective October 9, 2000. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-07-01-.03 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 14-1-105, 14-21-101, 71-1-105(12), 71-5-401, et seq., and 71-21- 101; Public Acts of 1984, Chapter 852; and 42 U.S.C. §§ 8621, et seq.
• Administrative History: Original rule filed October 17, 1984; effective November 16, 1984. Amendment filed September 19, 1985; effective December 14, 1985. Amendment filed January 9, 1990; effective May 1, 1990. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-07-01-.04 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 14-1-105, and 71-5-401, et seq.; Public Acts of 1984, Chapter 852; and 42 U.S.C. §§ 8621, et seq.
• Administrative History: Original rule filed October 17, 1984; effective November 16, 1984. Amendment filed September 19, 1985; effective December 14, 1985. Amendment filed January 9, 1990; effective May 1, 1990. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-07-01-.05 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 71-1-105, 71-1-105(12), and 71-5-401, et seq.; Public Acts of 1984, Chapter 852; and 42 U.S.C. §§ 8621, et seq.
• Administrative History: Original rule filed October 17, 1984; effective November 16, 1984. Amendment filed September 19, 1985; effective December 14, 1985. Amendment filed January 9, 1990; effective May 1, 1990. Amendment filed July 26, 2000; effective October 9, 2000. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-07-01-.06 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 14-1-105, 14-21-101, 71-1-105, 71-5-401, et seq., and 71-21-101; Public Acts of 1984, Chapter 852; and 42 U.S.C. §§ 8621, et seq.
• Administrative History: Original rule filed October 17, 1984; effective November 16, 1984. Amendment filed September 19, 1985; effective December 14, 1985. Amendment filed January 9, 1990; effective May 1, 1990. Repeal filed October 5, 2017; effective January 3, 2018.

Chapter 1240-07-02 Repealed

Tenn. Comp. R. & Regs. 1240-07-02-.01 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 71-1-105, 71-1-105(12), and 71-5-401, et seq.; and 42 U.S.C. §§ 6851, et seq.
• Administrative History: Original rule filed September 30, 1985; effective December 14, 1985. Amendment filed July 26, 2000; effective October 9, 2000. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-07-02-.04 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 71-1-105, 71-1-105(12), and 71-5-401, et seq.; and 42 U.S.C. §§ 6851, et seq.
• Administrative History: Original rule filed September 30, 1985; effective December 14, 1985. Amendment filed January 9, 1990; effective May 1, 1990. Amendment filed July 26, 2000; effective October 9, 2000. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-07-02-.02 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 4-5-202, 71-1-105, 71-1-105(12), and 71-5-401, et seq.; and 42 U.S.C. §§ 6851, et seq.
• Administrative History: Original rule filed September 30, 1985; effective December 14, 1985. Amendment filed January 9, 1990; effective May 1, 1990. Amendment filed July 26, 2000; effective October 9, 2000. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-07-02-.03 REPEALED

History

• Authority: T.C.A. §§ 4-5-201, et seq., 14-1-105, 14-21-101, and 71-5-401, et seq.; and 42 U.S.C. §§ 6851, et seq.
• Administrative History: Original rule filed September 30, 1985; effective December 14, 1985. Repeal filed October 5, 2017; effective January 3, 2018.

Chapter 1240-07-03 Reports of Abuse, Neglect or Exploitation of Adults

Tenn. Comp. R. & Regs. 1240-07-03-.01 SCOPE OF RULES

(1) These rules shall apply to the:

(a) Investigation of any report made to the Department of Human Services of a suspected case of abuse, neglect, or exploitation of an adult as defined by the Tennessee Adult Protection Act (the Act) in Title 71, Chapter 6, Part 1 of the Tennessee Code Annotated;

(b) Release of information from the Department’s adult protective services records; and (c) Department’s indication of an individual as a perpetrator of abuse, neglect or exploitation of an adult as defined by the Act and subsequent placement on the Vulnerable Persons Registry contained in Title 68, Chapter 11, Part 10 of the Tennessee Code Annotated; the release of such indication to protect vulnerable persons; and, for the administrative due process procedures associated with that placement or release.

(2) Administrative Due Process.

(a) Administrative due process is provided by these rules to any paid caregiver who has been indicated by the Department as a perpetrator of abuse, neglect, or exploitation of an adult to determine the validity of the indication of such paid caregiver.

(b) Administrative due process is not available under these rules for any individual who is indicated in an investigation of alleged abuse, neglect or exploitation, but who is not a paid caregiver; provided, however, if such individual becomes a paid caregiver, the administrative due process procedures of this Chapter shall apply.

(c) The administrative due process provisions of this Chapter shall not apply to any release of information authorized pursuant Rule 1240-07-03-.03 except as otherwise specified by Rule 1240-07-03-.03(4) and this Chapter.

History

• Authority: TCA §§4-5-202; 68-11-1004; 71-6-101 et seq.; 71-6-102; 71-6-103(a).
• Administrative History: Chapter 1240-07-03 has been assigned a new control number, removed, and renumbered to Chapter 0250-07-03 filed and effective March 25, 1999. Original rule filed September 20, 2010; effective December 19, 2010.

Tenn. Comp. R. & Regs. 1240-07-03-.02 DEFINITIONS

(1) “Abuse” means the infliction of physical pain, injury, or mental anguish on an adult as defined in this Chapter.

Nothing in this Chapter shall be construed to mean a person is abused or neglected or in need of protective services for the sole reason that the person relies on or is being furnished treatment by spiritual means through prayer alone in accordance with a recognized religious method of healing in lieu of medical treatment.

(2) “Adult” means a person eighteen (18) years of age or older who because of mental or physical dysfunctioning or advanced age is unable to manage such person's own resources, carry out the activities of daily living, or protect such person from neglect, hazardous or abusive situations without assistance from others and who has no available, willing, and responsibly able person for assistance and who may be in need of protective services.

Provided, however, that a person eighteen (18) years of age or older who is mentally impaired, but still competent, shall be deemed to be a person with a mental dysfunction for the purposes of this Chapter.

(3) “Advanced Age” means sixty (60) years of age or older.

(4) “Capacity to consent” means the mental ability to make a rational decision, which includes the ability to perceive, appreciate all relevant facts and to reach a rational judgment upon such facts. A decision itself to refuse services cannot be the sole evidence for finding the person lacks capacity to consent.

(5) “Caretaker” means an individual or institution who has the responsibility for the care of the adult as a result of family relationship, or who has assumed the responsibility for the care of the adult person voluntarily, or by contract, or agreement.

(6) “Department (DHS)” means the Department of Human Services.

(7) “Exploitation” means the improper use by a caretaker of funds that have been paid by a governmental agency to an adult or to the caretaker for the use or care of the adult.

(8) “Indicated perpetrator” or “indication” means a paid caregiver of an adult has been determined by the Department to have committed or to have caused to be committed abuse, neglect, or exploitation of an adult.

(9) “Imminent danger” means conditions calculated to and capable of producing within a relatively short period of time a reasonable probability of resultant irreparable physical or mental harm or the cessation of life, or both, if such conditions are not removed or alleviated.

However, the Department is not required to assume responsibility for a person in imminent danger pursuant to this Chapter except when, in the Department's determination, sufficient resources exist for the implementation of the Act.

(10) “Investigation” means, but is not limited to, a personal interview with the individual reported to be abused, neglected, or exploited. When abuse or neglect is allegedly the cause of death, a coroner's or doctor's report shall be examined as part of the investigation.

(11) “Misappropriation” means any taking, possession or use of the property of a vulnerable person the elements of which constitute any criminal offense involving such property, or which constitute a violation of a fiduciary duty of a caretaker of a vulnerable person.

(12) “Neglect” means the deprivation of services by a caretaker that are necessary to maintain the health and welfare of an adult or a situation in which an adult is unable to provide or obtain the services that are necessary to maintain that individual’s health or welfare.

(13) “Paid Caregiver” or “Paid Caretaker” means:

(a) For purposes of indication of an individual as having committed abuse, neglect or exploitation of an adult, and for the purpose of providing due process prior to the release of information regarding such indication of abuse, neglect or exploitation of an adult, and for placement on the Vulnerable Persons Registry, a “paid caregiver” or “paid caretaker” is an individual who, for compensation, provides daily or periodic supervision of an adult or some level of service or activity directed toward meeting the personal needs and care of an adult, including, but not limited to, in-home care or supervision of the adult or housekeeping services for the adult, medical, psychiatric, psychological, health, and/or health-related care or services, or, as part of any aspect of meeting the personal needs and care of the adult, has access to or control of the property of the adult:

1. Through employment or through contractual arrangement with the adult or through another individual or entity;

2. By written or oral agreement with the adult; or 3. By course of conduct between such individual and the adult.

(b) For purposes of protecting vulnerable persons, a paid caretaker or paid caregiver is any person who has been indicated by the Department as a perpetrator of abuse, neglect or exploitation of an adult, who, for compensation, provides daily or periodic supervision of a vulnerable person or some level of service or activity directed toward meeting the personal needs and care of a vulnerable person, including, but not limited to, in-home care or supervision of the vulnerable person or housekeeping, child care or adult day care services for the vulnerable person, medical, psychiatric, psychological, health, and/or health-related care or services, to the vulnerable person, or, as part of any aspect of meeting the personal needs and care of the vulnerable person, has access to or control of the property of the vulnerable person:

1. Through employment or through contractual arrangement with the vulnerable person or through another individual or entity;

2. By written or oral agreement with the vulnerable person; or 3. By course of conduct between such individual and the vulnerable person.

(c) A paid caretaker or paid caregiver does not include individuals who, individually or through employment or by contract with any entity, provide services to the general public that typically consist solely of business-related services, such as, but not limited to, financial services by a bank, credit union, brokerage house, accounting or legal or other business services by individuals licensed or representing themselves to be licensed to provide such services, nor does it include repair or construction work, food services, or professional services by other licensed or unlicensed individuals or by any individual through employment or contract with any entity that does not engage in providing services of the types described in subparagraph (a).

(d) A financial institution is not a caretaker of funds or other assets, and is not a paid caretaker or paid caregiver of a vulnerable person unless such financial institution has entered into an agreement to act as a trustee of such property or has been appointed by a court of competent jurisdiction to act as a trustee with regard to the property of the adult.

(14) “Property” means all interests of any type in real property, and any interests of any type in personal property whether in monies or financial instruments of any type, goods, furnishings, and similar property; provided, however, that for purposes of reporting to the registry established by T.C.A. 68-11-1001 et seq., property shall only consist of funds paid by a governmental agency to an “adult” as defined in T.C.A. § 71-6-102, if the report of abuse, neglect, exploitation is investigated by the Department of Human Services pursuant to Title 71, Chapter 6, Part 1 of the Tennessee Code Annotated.

(15) “Protective Services” means services undertaken by the Department with or on behalf of an adult in need of protective services who is being abused, neglected, or exploited. These services may include, but are not limited to, conducting investigations of complaints of possible abuse, neglect, or exploitation to ascertain whether or not the situation and condition of the adult in need of protective services warrants further action; social services aimed at preventing and remedying abuse, neglect, and exploitation; services directed toward seeking legal determination of whether the adult in need of protective services has been abused, neglected or exploited and procurement of suitable care in or out of the adult's home.

(16) “Sexual Abuse” means the forcing, tricking, threatening or otherwise coercing of an adult, as defined by these rules, by another individual into sexual activity, involuntary exposure to sexually explicit material or language, or sexual contact against such adult's will. Sexual abuse also means sexual activities or contact with another individual when the adult is unable to give consent.

(17) "Vulnerable person" means anyone who:

(a) Is under eighteen (18) years of age; or (b) Is eighteen (18) years of age or older and, by reason of advanced age or other physical or mental condition, is vulnerable to or has been determined to have suffered from abuse, neglect or misappropriation or exploitation of property and is or has been:

1. The subject of any report of harm, abuse, neglect, or exploitation of property made to any state agency or investigative authority with responsibility to investigate those reports pursuant to Tennessee Code Annotated, Title 37,

Chapter 1, Parts 1 or 6, Title 71, Chapter 6, Part 1, or pursuant any other provision of law or regulation; or 2. Receiving protective services from a state agency pursuant to law; or 3. The victim of any criminal offense that constitutes abuse, neglect, or misappropriation or exploitation of property; or 4. In the care of either a state agency, an entity that is licensed or regulated by a state agency, or in the care of an entity providing services under the provisions of a contract between that entity and a state agency; or 5. Receiving services in the person’s home from any agency licensed or regulated by or contracted to a state agency, including, but not limited to home and community-based services, home health care, or other heath care-related services provided through state or federal funds to assist persons to remain in their homes.

(18) “Vulnerable Persons Registry” or “Registry” means:

(a) The registry established by the Department of Health under Tennessee Code Annotated, Title 68, Chapter 11, Part 10, containing the names of individuals who have abused, neglected vulnerable persons, or who have, exploited or misappropriated the property of vulnerable persons; and (b) That is used by employers when making decisions for employees or other service providers for positions which require background checks, such as for child care and adult day care agencies and other services to vulnerable persons, or by any governmental agency to review the status of persons subject to its regulatory oversight

authority.

History

• Authority: TCA §§ 4-5-202; 68-11-1004; 71-6-101 et seq.; 71-6-102; 71-6-103(a).
• Administrative History: Chapter 1240-07-03 has been assigned a new control number, removed, and renumbered to Chapter 02500-7-03 filed and effective March 25, 1999. Original rule filed September 20, 2010; effective December 19, 2010.

Tenn. Comp. R. & Regs. 1240-07-03-.03 CONFIDENTIALITY OF RECORDS AND RELEASE OF INFORMATION

(1) Except as otherwise provided pursuant to T.C.A. § 71-6-118 and these rules, all reports to the Department of abuse, neglect, or exploitation of an adult and the records of investigations of such reports are confidential.

(2) A release of information from the records of the Department pursuant to these rules resulting from a report of abuse, neglect or exploitation of an adult, shall be for purposes directly connected with the administration of Title 71, Chapter 6, Part 1, of the Tennessee Code Annotated, including the administrative processes associated with designation of an individual as an indicated perpetrator of abuse, neglect or exploitation on the Vulnerable Persons Registry established by Title 68, Chapter 11, Part 10.

(3) Information from the files, records and reports of the Department may be released for the following purposes:

(a) The use by authorized personnel of the Department for purposes directly connected with the administration of the Tennessee Adult Protection Act (the Act). Such purposes shall include, but are not limited to, the release of information by Department personnel to any other persons or entities who or which should, as determined by the Department, receive information regarding an adult from an adult protective service record, limited to the extent that is necessary, when:

1. Conducting an investigation of abuse, neglect or exploitation of an adult, including an investigation of alleged abuse, neglect or exploitation of an adult by law enforcement officials;

2. Providing protective services to the adult, including, but not limited to, medical, mental health, or rehabilitative care, public assistance eligibility determination, or other services necessary to protect the adult, or for the purpose of securing medical or mental, or other, evaluations to determine the adult caretaker’s ability to provide adequate care for the adult;

3. Providing information or services necessary for the purpose of implementing the processes required by the Vulnerable Persons Registry (the Registry) established by Title 68, Chapter 11, Part 10 to protect vulnerable persons. It shall not be a prerequisite to the release of information for the protection of vulnerable persons that the person’s indication as a perpetrator of abuse, neglect or exploitation of an adult has resulted in placement on the Registry if the release of such information is consistent with the emergency release procedures under

Rule 1240-07-03-.05; or 4. Conducting legal proceedings on behalf of the adult, pursuant to T.C.A. §§ 71-6- 101 et seq., the conservatorship laws, or pursuant to other laws affecting the status of an adult, including disclosure to any attorney, attorney ad litem or guardian ad litem retained by or appointed for such person or other litigants.

(b) The disclosure of information from the Department’s records to an employer or licensing authority of a paid caregiver that the person has been indicated as a perpetrator of abuse, neglect or exploitation of an adult for the purpose of preventing further abuse, neglect or exploitation of vulnerable persons; provided, however, the release of such information to an employer or licensing authority shall be consistent with the administrative due process provisions established by this Chapter.

(c) Release of information, including the identity of an alleged or indicated perpetrator of abuse, neglect or exploitation of an adult, to:

1. Any state or federal law enforcement agency(ies), District Attorney or United States Attorney investigating or prosecuting a case of reported abuse, neglect, or exploitation of an adult; or 2. Any state or federal grand jury by subpoena of such grand jury; or 3. Presentation of evidence through Department staff by the District Attorney or United States Attorney to such grand jury regarding abuse, neglect, or exploitation of any adult;

(d) Release of information, including the identity of an alleged or indicated perpetrator, to any state or federal social service agency or other agencies investigating cases of abuse, neglect, or exploitation of an adult or providing treatment or care for alleged or known adult victims of abuse, neglect, exploitation or misappropriation of property; or (e) Release of information, including the identity of an alleged or indicated perpetrator, to the court or administrative board or other tribunal, the officials or employees thereof in the performance of their duties, to the parties, or their legal representatives in any judicial or administrative proceeding or before any board, and to any administrative law judge or hearing officer in the course of their duties in any legal action involving the Department of Human Services before such courts, board or tribunal concerning the protection of vulnerable persons from abuse, neglect, or exploitation; provided that, in a situation when such court, administrative board, administrative law judge or hearing officer, other than the Department of Human Services, is adjudicating a case affecting the alleged perpetrator's ability to remain or become employed or licensed, such information shall be released only by order of the court, administrative law judge or hearing officer.

(4) Release of the Identity of Alleged Perpetrator of Abuse, Neglect or Exploitation.

(a) Except as provided by Rules 1240-07-03-.03(3), 1240-07-03-.05 or 1240-07-03- .06(7)(e), prior to completion of the administrative hearing process for an indicated perpetrator provided for in Rule 1240-07-03-.06, the Department may only confirm that:

1. An investigation of abuse, neglect, or exploitation of an adult has commenced or has been completed; and 2. A hearing involving the alleged perpetrator is currently pending if a timely request by the alleged perpetrator for an administrative hearing has been received by the Department.

(b) Following the completion of administrative due process that upholds the Department’s indication of a paid caregiver as a perpetrator or abuse, neglect or exploitation of an adult, the Department will disclose the identity of the indicated perpetrator as otherwise permitted by these Rules to any employer of the perpetrator who is a paid caretaker of a vulnerable person or to any licensing authority that licenses the paid caretaker of a vulnerable person, and to the Department of Health for placement of the perpetrator’s name on that department’s registry. has been assigned a new control number, removed, and renumbered to Chapter 0250-07-03 filed and effective March 25, 1999. Original rule filed September 20, 2010; effective December 19, 2010.

Tenn. Comp. R. & Regs. 1240-07-03-.04 INVESTIGATION OF REPORTS OF ABUSE, NEGLECT, OR EXPLOITATION

(1) Investigation of a report of abuse, neglect, or exploitation of an adult as defined under the Adult Protection Act contained in Title 71, Chapter 6, Part 1 of the Tennessee Code Annotated, shall be the responsibility of the Department’s Adult Protective Services Division.

(2) The process employed by Department staff for investigation and indication of an alleged perpetrator of abuse, neglect and exploitation of an adult under the Adult Protection Act contained in the Investigation Chapter and the Classification Chapter of the Policy and Procedures Manual of the Adult Protective Services Division of the Tennessee Department of Human Services, is incorporated herein by reference. The Policy and Procedures Manual is available to the public on the Department’s website at http://www.state.tn.us/humanserv/adfam/aps-manual.pdf.

(3) In appropriate circumstances, to be determined by the Adult Protective Services Division, the investigation of abuse, neglect, or exploitation of an adult may be conducted in conjunction with the Department’s Division of Adult and Child Care Licensing, as well as, but not limited to, other licensing and law enforcement authorities as appropriate.

(4) The Report of Abuse, Neglect or Exploitation.

(a) A report of abuse, neglect, or exploitation of a particular adult shall include, to the extent available, the following information:

1. For the adult, caretaker (if any), and alleged perpetrator:

(i) Name, street address, email address, phone number;

(ii) Date of birth and social security number;

2. The gender, race, and ethnicity of the adult;

3. The nature and extent of the abuse, neglect, or exploitation, including any evidence of previous abuse, neglect, or exploitation;

4. The identity of the complainant, if possible; and 5. Any other information that the individual believes might be helpful in proving the abuse, neglect, or exploitation.

(b) Notification of a report of abuse, neglect or exploitation of an adult shall be made by the Department to the appropriate:

1. Law enforcement agency in all cases in which the report involves abuse, neglect or exploitation of the adult by another person or persons; and 2. Licensing authority if the report concerns an adult who is, or at the time of the alleged harm was, receiving services from a facility that is required by law to be licensed under Title 63 of the Tennessee Code Annotated.

(c) Following an investigation of a report of abuse, neglect, or exploitation of a particular adult, a subsequent allegation of abuse, neglect, or exploitation regarding the same adult shall only constitute a new report requiring investigation and provision of services if the allegation is based upon new information, as specified in subparagraph (4)(a) above, which was not alleged in the prior report.

(5) If, upon investigation, a report leads to the indication of a paid caregiver as a perpetrator of abuse, neglect, or exploitation, the Department shall provide a notice to the indicated perpetrator pursuant to 1240-07-03-.05 or 1240-07-03-.06.

History

• Authority: TCA §§ 4-5-202; 71-6-101 et seq.; 71-6-103(a).
• Administrative History: Chapter 1240-07- 03 has been assigned a new control number, removed, and renumbered to Chapter 0250-07-03 filed and effective March 25, 1999. Original rule filed September 20, 2010; effective December 19, 2010.

Tenn. Comp. R. & Regs. 1240-07-03-.05 EMERGENCY NOTIFICATION OF FINDING OF AN INDICATED PERPETRATOR

(1) If the Department finds that a paid caregiver indicated as a perpetrator of abuse, neglect, or exploitation of an adult poses an immediate threat to the health, safety or welfare of a vulnerable person to whom the alleged perpetrator has access as a paid caregiver, the Department shall provide written notice of this finding as soon as practicable to the indicated individual and any organization(s) or individual(s) with whom the individual is associated as a paid caregiver or any authority which licenses or otherwise regulates the indicated perpetrator’s ability to engage in an occupation or profession in which the person is a paid caregiver.

(2) Notice to the indicated individual of the emergency release of the indication shall be in addition to the notice required by 1240-07-03-.04(5) and 1240-07-03-.06.

(3) Notice to organizations or individuals with whom the indicated perpetrator is associated shall contain the following information:

(a) The organization or individual shall ensure that the indicated individual is not a threat to the health, safety or welfare of any vulnerable person in their care; and (b) The indicated perpetrator has been notified of his / her rights to an administrative hearing on the allegations, and that the organization or individual shall be notified of the final decision; and (c) The Department will seek injunctive relief pursuant to T.C.A. § 71-6-104 to prevent any violation of the requirements of this notice.

(4) The indicated perpetrator shall continue to have the right to appeal the indication as specified in Rule 1240-07-03-.06 after emergency notification is sent pursuant to this rule.

History

• Authority: TCA §§ 4-5-202; 71-6-101 et seq.; 71-6-103(a); 71-6-104.
• Administrative History: Chapter filed and effective March 25, 1999. Original rule filed September 20, 2010; effective December 19, 2010.

Tenn. Comp. R. & Regs. 1240-07-03-.06 NOTICE TO AND ADMINISTRATIVE HEARINGS FOR INDICATED PERPETRATORS

(1) Notice to paid caregivers who have been indicated as perpetrators following the investigation of abuse, neglect or exploitation shall contain the following:

(a) The paid caregiver has been indicated as the perpetrator of abuse, neglect, or exploitation of an adult in a report investigated by the Department and a summary of the basis for the indication;

(b) The indicated perpetrator may, within ten (10) business days of the date of the notice, request an administrative hearing by submitting a written request for an administrative hearing to the Tennessee Department of Human Services, Appeals and Hearings Division;

(c) Subject to the requirements of the Uniform Administrative Procedures Act, Tennessee Code Annotated, §§ 4-5-301 et seq., a decision resulting from the administrative hearing that upholds the Department’s indication of the individual as a perpetrator will result in the placement of the indicated perpetrator’s name on the Vulnerable Persons Registry, and that the Department may also, as a result of such decision, release the fact that the paid caregiver has been found to be a perpetrator of abuse, neglect or exploitation of an adult, and, as a result, such finding, placement of the individual’s name on the Vulnerable Persons Registry and release of information regarding the finding, the paid caregiver’s ability to provide care, supervision, treatment or other related services to vulnerable persons as a paid caregiver may be adversely impacted; and (d) That failure to submit a written request for an administrative hearing within ten (10) business days, absent a showing of good cause, shall be a waiver of the right to the administrative due process proceeding and shall cause the indication of the paid caregiver as a perpetrator to become final and qualified for disclosure for any purposes necessary to protect vulnerable persons.

(2) Except as specified in paragraph (10) below and Rules 1240-07-03-.03(3) and 1240-07-03- .05, an administrative hearing shall be available to all paid caregivers who have been indicated by the Department as a perpetrator of abuse, neglect or exploitation of an adult prior to:

(a) The release of any information to the Department of Health for purposes of placement of the name of the perpetrator on the Vulnerable Persons Registry; or (b) The release by the Department of any information as to the perpetrator’s indicated status to any organization(s) or individual(s) with whom the indicated perpetrator is associated as a paid caregiver.

(3) To initiate a timely appeal of the notice of indication as a perpetrator of abuse, neglect, or exploitation, an indicated perpetrator shall submit a written request for an administrative hearing to the Tennessee Department of Human Services, Appeals and Hearings Division, within ten (10) business days of the date of the notice from the Department notifying the alleged perpetrator of the indication.

(4) If the indicated perpetrator timely requests a hearing, the Department shall schedule a hearing and give the indicated perpetrator adequate notice of the hearing, as provided by

Rule 1240-05-04-.01(2)(h).

(5) An indicated perpetrator who fails to timely request a hearing may still be granted a hearing upon a showing of good cause, which shall be limited to:

(a) Proof by the indicated perpetrator of failure to receive the notice required by paragraph (1) above;

(b) Severe illness of the perpetrator or severe illness or death of a close family member that prevented the indicated perpetrator from timely requesting a hearing; or (c) Some other circumstance that clearly prevented the indicated perpetrator from making a timely request for a hearing.

(6) If the indicated perpetrator fails to request a hearing, or fails to show good cause pursuant to paragraph (5) above, the indicated perpetrator’s right to a hearing is waived. The Department’s indication of the person as a perpetrator of abuse, neglect or exploitation shall then be available for dissemination for purposes consistent with this Chapter.

(7) Stay of the Administrative Process.

(a) The Department may stay all administrative proceedings under these rules if, prior to entry of a final order by the Department:

1. The indicated perpetrator has been arrested or indicted for, or otherwise charged with, any criminal offense derived from the same allegations that led to the indication by the Department of abuse, neglect or exploitation by the alleged perpetrator; or 2. The indicated perpetrator is the subject of other administrative or civil judicial proceedings that are derived from the same allegations that led to the indication of abuse, neglect or exploitation by the Department in which a determination is to be made about whether the indicated perpetrator abused, neglected or exploited the adult who was the subject of the report to the Department.

(b) The stay, if entered, shall remain in effect until final resolution (including appeals) of the other judicial or administrative proceedings, unless the hearing officer determines, upon motion of a party to the case, that the proceeding should continue, or the stay is otherwise lifted pursuant to subparagraph (d).

(c) Upon issuance of the stay, the Department shall notify the indicated perpetrator of the following:

1. That the administrative process has been stayed pending the final outcome of judicial or other administrative proceedings concerning allegations of abuse, neglect, or exploitation of an adult involving the indicated perpetrator;

2. That the administrative process will be reinstated at the point it was stayed only if the indicated perpetrator requests reinstatement in writing to the Department’s Appeals and Hearings Division within thirty (30) days of the entry of a final order by the court or administrative tribunal or a verdict or other order by a criminal court which has adjudicated the same allegation that led to the indication of abuse, neglect or exploitation by the Department, subject to the limitations of subparagraph (g) and paragraph (10) below;

3. That, if the indicated perpetrator fails to timely make such a written request, he or she shall waive his or her rights to an administrative hearing in regard to the report, and the indication of the individual as a perpetrator shall be disseminated as otherwise permitted pursuant to this Chapter.

(d) Lifting of Stay on Motion of the Parties.

If notification pursuant to subparagraph (c) is provided, and the indicated perpetrator has previously timely appealed the notice of indication, then, notwithstanding any other

rule of the Department to the contrary, the indicated perpetrator or the Department may move that the administrative proceedings adjudicating the issue of abuse, neglect or exploitation of an adult by the indicated perpetrator be set for hearing, and the hearing officer may lift such stay and proceed with the determination of the issue of whether the indicated perpetrator committed abuse, neglect, or exploitation of a adult.

(e) Release of Information During Stay.

During the stay, other than to disclose that the alleged perpetrator has pending administrative or judicial proceedings to adjudicate the allegations of abuse, neglect or exploitation of a adult, and except as provided pursuant to 1240-07-03-.03(3), or, unless the circumstances of subparagraph (f) exist, no information regarding the status of the indication will be released by the Department.

(f) Emergency Release of Information During Stay and Notice of Emergency Release.

If, during the stay, the Department’s staff determine that the indicated perpetrator poses an immediate threat to the health, safety or welfare of a vulnerable person to whom the indicated perpetrator has access, then, pursuant to 1240-07-03-.05, the Department will notify the indicated individual of such determination and any organization(s) or individual(s) with whom the individual is associated as a paid caregiver.

(g) Conclusion or Reinstatement of the Administrative Process.

1. If the same or similar evidence on which the paid caregiver was indicated by the Department as a perpetrator of abuse, neglect, or exploitation of an adult results in a criminal conviction or guilty or no contest plea for an offense against a adult, or, if the indicated perpetrator is otherwise adjudicated by a preponderance of the evidence in a civil or administrative proceeding as having perpetrated abuse, neglect or exploitation against the adult who was the subject of the report to the Department, then, following resolution of any appeals of such conviction, plea, and/or adjudication, will be conclusive evidence that the individual is the perpetrator indicated in the report. In this event, the individual will no longer have a right to a hearing under these rules with respect to that particular report. The administrative process will not be reinstated, and the Department may release information about the perpetrator as permitted under these rules.

2. If the other proceedings do not result in the conviction or finding specified in part 1 above, then, upon request of the individual in writing within thirty (30) days of the entry of a final order by the court or other administrative tribunal, or entry of a verdict by a criminal court, the administrative process will be reinstated at the point at which it was stayed.

3. If the indicated perpetrator fails to make the written request specified in part 2 above within thirty (30) days from entry of a final order in the other proceedings (including appeals), the indicated perpetrator shall waive his or her rights to an administrative hearing in regard to the report, and the indication of the individual as a perpetrator shall become final and disseminated as otherwise permitted pursuant to this Chapter.

(8) Hearing Process.

(a) The hearing shall be conducted by a hearing officer in the Appeals and Hearings Division of the Department of Human Services in accordance with the provisions of the Uniform Administrative Procedures Act, T.C.A. §§ 4-5-301 et seq., this Chapter and

Chapter 1240-05 of the rules of the Department of Human Services.

(b) The only issue for the hearing officer to determine shall be whether the preponderance of the evidence, in light of the entire hearing record, proves that the indicated perpetrator committed abuse, neglect, or exploitation of an adult.

(c) The hearing shall be held and a final order entered within ninety (90) days of the receipt of the request for an administrative hearing, unless the administrative process is stayed pursuant to Rule 1240-07-03-.06(7).

(9) Review of the Department’s decision is available as provided in the Uniform Administrative Procedures Act, T.C.A. §§ 4-5-301 et seq.

(10) Nothing in this Chapter shall be construed to require the expunction of any information from internal case records maintained by the Department based upon any finding contrary to the Department’s indication of a person as a perpetrator of abuse, neglect or exploitation.

History

• Authority: TCA §§ 4-5-202; 4-5-301 et seq.; 71-6-101 et seq.; 71-6-103(a).
• Administrative History: Chapter 1240-07-03 has been assigned a new control number, removed, and renumbered to Chapter 0250-07-03 filed and effective March 25, 1999. Original rule filed November 20, 2010; effective December 19, 2010.

Tenn. Comp. R. & Regs. 1240-07-03-.07 NOTICE OF PERPETRATOR STATUS TO THIRD PARTIES

(1) Organizations and Individuals with Whom the Indicated Perpetrator is Associated as a Paid Caregiver.

(a) Prior to completion of administrative due process, information regarding the indication can only be provided to third parties as permitted by Rules 1240-07-03-.03, 1240-07- 03-.05 or 1240-07-03-.06(7)(e) and (f).

(b) Following final resolution of the case, whether by administrative hearing order, court order, or waiver by the indicated individual, notice of the final outcome shall be provided as specified below:

1. If the indication of the paid caregiver as a perpetrator of abuse, neglect, or exploitation of an adult was upheld, the organization or individual has a continuing obligation to assure that the indicated perpetrator is not a threat to the safety of vulnerable persons in their care;

2. If notice was previously provided pursuant to Rule 1240-07-03-.05, that the indication of the paid caregiver as a perpetrator was not upheld the organization or individual no longer has a continuing obligation pursuant to the previously provided notice to assure that the paid caregiver is not a threat to the safety of any vulnerable person in their care; and 3. If the indication of the paid caregiver as a perpetrator of abuse, neglect, or exploitation of an adult was upheld, the Department may provide notice of the person’s status as an indicated perpetrator of abuse, neglect or exploitation to any organization or to any individual with which or with whom the person is associated as a paid caregiver or to any licensing authority of such person or the licensing authority of such organization or individual with which or with whom the person is associated as a paid caregiver.

(2) Vulnerable Persons Registry of the Department of Health.

(a) If, upon final resolution of the case, whether by administrative hearing order, court order, or waiver by the indicated individual, the indication of the paid caregiver as a perpetrator is upheld, the Department shall provide notification of this finding to the Department of Health to have the name of the indicated perpetrator included on the Vulnerable Persons Registry pursuant to the criteria established by T.C.A. § 68-11- 1004.

1. Notification shall consist of a copy of a final administrative order, a judicial order, or other evidence verifying that the Department or other tribunal has afforded the indicated perpetrator an opportunity for an administrative or judicial due process hearing regarding allegations of abuse, neglect or exploitation of a adult who was the subject of a report and investigation under T.C. A. §§ 71-6-101 et seq.

2. Notification shall also include the individual's last known mailing address, the definition of abuse, neglect, or exploitation as specified in Rule 1240-07-03-.02 above, and any other information that the Department of Health determines is necessary to adequately identify such individual for purposes of administrative hearings provided by T.C.A. § 68-11-1004 or to adequately identify such individual when inquiry to the Registry is made.

(b) If the indication of the paid caregiver as a perpetrator is upheld based upon a criminal adjudication, the Department shall provide to the Department of Health a copy of the criminal disposition from the Tennessee Bureau of Investigation, other federal, state or local law enforcement agency, court, or criminal justice agency, verifying that a criminal disposition against the named individual was the result of an offense against a adult for whom an investigation was also conducted by the Department of Human Services pursuant to T.C.A. §§ 71-6-101 et seq.

History

• Authority: TCA §§4-5-202; 68-11-1004; 71-6-101 et seq., 71-6-103(a).
• Administrative History: Chapter 1240-07-03 has been assigned a new control number, removed, and renumbered to Chapter 0250-07-03 filed and effective March 25, 1999. Original rule filed September 20, 2010; effective December 19, 2010.

Chapter 1240-07-04 Reserved for Future Use

Tenn. Comp. R. & Regs. 1240-07-04 Reserved for Future Use

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

COMMUNITY AND FIELD SERVICES DIVISION

Authority: TCA §§4-5-226(b)(2), 37-5-101, 37-5-105, 37-5-106, and 37-5-112(a). Administrative History:

Chapter 1240-7-4 has been assigned a new control number, removed, and renumbered to Chapter 0250-7-4 filed and effective March 25, 1999.

Chapter 1240-07-05 Reserved for Future Use

Tenn. Comp. R. & Regs. 1240-07-05 Reserved for Future Use

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

SOCIAL SERVICE DIVISION

Authority: T.C.A. §§4-5-226(b)(2); 37-5-101; 37-5-105; 37-5-106 and T.C.A. §37-5-112(a). Administrative History:

Chapter 1240-7-5 have been assigned a new control number, removed and renumbered to Chapter 0250-7-5 filed and effective March 25, 1999. -- 1 of 1 --

Chapter 1240-07-06 Reserved for Future Use

Tenn. Comp. R. & Regs. 1240-07-06 Reserved for Future Use

RULES

OF TENNESSEE DEPARTMENT OF HUMAN SERVICES

SOCIAL SERVICES DIVISION

Authority: T.C.A. §37-5-112. Administrative History: Original rule filed August 12, 1992; effective November 12, 1992. Chapter 1240-7-6 has been assigned a new control number, removed, and renumbered to Chapter 0250-7- 12 filed and effective April 2, 2001. -- 1 of 1 --

Chapter 1240-07-10 Adult Day Services Standards

Tenn. Comp. R. & Regs. 1240-07-10-.01 PURPOSE OF LICENSURE

(1) Tennessee law requires an adult day services center to be licensed by the Department unless the center is licensed by another agency of state government and, after consultation with the other state agency, the Commissioner determines that the provisions of the other licensing body adequately regulate the center’s program and that, therefore, being licensed by the Department is unnecessary.

(2) The primary purposes of licensure are the protection of adults who are participants in adult day services centers and the provision of day services designed to maintain or restore each adult’s optimal capacity for self-care through medical or social services.

(3) The following standards seek to maintain adequate health, safety and supervision of adults while in adult day services to the end that they may achieve these goals.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; and 71-2-401, et seq.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018.

Tenn. Comp. R. & Regs. 1240-07-10-.02 LEGAL BASIS FOR LICENSURE

Tennessee law requires that adult day services centers as defined in T.C.A. §§ 71-2-401 et seq. be licensed. If any center subject to these requirements currently is licensed by another agency of state government, after consultation with that agency, the Commissioner may determine that the provisions of the other licensing body adequately regulate the center’s program and the Commissioner may determine that licensing of the entity is unnecessary.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; and 71-2-401, et seq.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018.

Tenn. Comp. R. & Regs. 1240-07-10-.03 DEFINITIONS

For purposes of this chapter, the following definitions are applicable:

(1) Abuse or Neglect.

(a) “Abuse or neglect” means the infliction of physical pain, injury, or mental anguish, or the deprivation of services by a caretaker that are necessary to maintain the health and welfare of an adult or a situation in which an adult is unable to provide or obtain the services that are necessary to maintain that person’s health or welfare.

(b) “Abuse or neglect” means transporting an adult and knowingly abandoning, leaving or failing to provide additional planned transportation for the adult if the adult’s caretaker knows, or should know, that:

1. The adult is unable to protect or care for himself or herself without assistance or supervision; and 2. The caretaker’s conduct causes any of the results listed in subdivision (1)(a) or creates a substantial risk of such results.

(2) Activities of Daily Living (ADL). Those activities which indicate an individual’s independence in eating, dressing, personal hygiene, bathing, toileting, and ambulating.

(3) Administrative Hearing. A hearing that is held under the Uniform Administrative Procedures Act, Title 4, Chapter 5, Part 3 of the Tennessee Code Annotated, rather than a court of law that is conducted by an administrative law judge from the Secretary of State’s Office or by an administrative hearing officer of the Department of Human Services. The purpose of the hearing is to allow an adult day services center the opportunity to challenge legal enforcement actions taken by the Department.

(4) Adult. An individual who is eighteen (18) years of age or older.

(5) Adult Day Services Center. A facility which provides adult day services.

(6) Adult Day Services. Services provided to five (5) or more participants, for more than three (3) hours per day but less than twenty-four (24) hours per day, by a provider of such services who is not related to such participant, pursuant to an individualized plan of care designed to maintain or restore each participant’s optimal capacity for self-care through medical or social services.

(7) Appeal. A legal process that allows an adult day services center to challenge a licensing action against the center or a person to challenge an exclusion of a person from access to the center.

(8) Applicant. The owner or owner’s authorized representative who is required, pursuant to the provisions of these rules, to sign the application for a license.

(9) Assisted-Care Living Facility. A building, establishment, complex or distinct part thereof as defined by T.C.A. § 68-11-201 and licensed by the board for licensing health care facilities pursuant to T.C.A. § 68-11-209 or as further defined by Chapter 1200-08-25.

(10) Commissioner. The Commissioner of the Department of Human Services.

(11) Denial of License. The decision of the Department not to issue or renew a license.

(12) Department (DHS). The Tennessee Department of Human Services and its authorized representatives.

(13) Direct care staff. Those individuals, employees, substitutes, or volunteers, whose primary job responsibilities are the direct care of the participants.

(14) Director. The on-site manager for the center who has overall responsibility for the daily oversight of all staff and the provision of adult day services.

(15) Exploitation. The improper use by a caretaker of funds that have been paid by a governmental agency to an adult or to the caretaker for the use or care of the adult.

(16) Facility or Place. The physical location or locations that singly, or together, provide adult day services that constitute the operation of an adult day services center that must be licensed to operate legally.

(17) Falsification of Information. Includes, but is not limited to, falsified or forged records or documents relating to the care of participants by the adult day services center, including concealment of services or participants from monitoring by the Department.

(18) Fee. A processing fee for license applications assessed by the Department and submitted by the center with the application.

(19) Field Trip. Any off-site activity which occurs away from the general premises of the adult day services center’s licensed facility and beyond reasonable walking distance.

(20) Governing Board. The group of persons having final authority and responsibility for conduct of the adult day services center which are operated by a municipality, county or non-profit corporation.

(21) High School Diploma. As used in the context of caregivers’ qualifications, refers to a document recognizing graduation from an accredited institution, public or private, based on the issuing state’s required number of academic credits and includes passing a GED test or equivalent as defined by Tennessee law or its equivalent.

As used in this chapter, a certificate or statement of attendance or similar document or correspondence or video courses do not qualify as being the equivalent of a high school diploma.

(22) Home for the Aged. A home as defined in T.C.A. § 68-11-201 and as licensed by the board for licensing health care facilities pursuant to T.C.A. § 68-11-209 and Chapter 1200-08-11.

(23) Hospital. Any institution, place, building or agency as defined in T.C.A. § 68-11-201 and as licensed by the board for licensing health care facilities pursuant to T.C.A. § 68-11-209 and

Chapter 1200-08-01.

(24) Hospice. Any institution, place or agency as defined in T.C.A. § 68-11-201 and as licensed by the board for licensing health care facilities pursuant to T.C.A. § 68-11-209 and Chapter 1200-08-08.

(25) Individualized Plan. The plan of care for the participant which is also referred to as a service, support, or care plan.

(26) License. A permit issued by the Department to an adult day services center authorizing the center to provide adult day services for a specified period of time in accordance with the provisions of the license, the law, and the regulations of the Department of Human Services.

(27) Licensed Capacity. The designated maximum number of participants permitted in the care and supervision of a licensed adult day services center as determined by the Department based upon available indoor space and staff:participant ratios. Licensed capacity shall be designated on the license.

(28) Licensee. The owner, as defined by these rules, to whom a license to operate an adult day services center is issued.

(29) Nursing home. An institution, place, building or agency as defined in T.C.A. § 68-11-201 and as licensed by the board for licensing health care facilities pursuant to T.C.A. § 68-11-209 and Chapter 1200-08-06.

(30) Participant. The adult receiving services in the adult day services center.

(31) Operator/Owner. The individual(s), corporation, partnership, cooperative, or other private or public entity of any kind, or any combination thereof, who or which, either as entity, as an individual or through their authorized representatives, assumes, or is legally required to assume, ultimate legal and administrative responsibility for the management and control of an adult day services center. The operator/owner shall be the licensee for the adult day services center.

(32) Premises. A house or a building, along with its grounds, including outdoor areas, parking lots and driveways.

(33) Probation. A legal enforcement action, imposed for thirty (30) to sixty (60) days, taken after a center has been cited for a violation and failed to correct the violation after notice of an opportunity to correct.

(34) Responsible Party. The guardian, conservator, other legal representative, or other person who makes the placement of the participant with the adult day services center, to whom center staff will look for decisions regarding the participant’s care and to whom information regarding the participant’s care and status is reported by the center’s staff.

(35) Restricted License. A license which, either at the time of issuance, or during the license’s existence, is reduced in its operational authority by the Department so that the adult day services center’s ability to provide certain adult day services related services is limited because the Department has determined that one or more areas of the center’s operations are not in compliance with adult day services laws or regulations or the center’s operations are, or have posed, a risk to the health, safety or welfare of participants in the center’s care or the center’s operations pose the potential of such risk.

(36) Revocation. The permanent removal of an existing license.

(37) Senior Citizens Center. A not-for-profit or municipal agency, which serves persons fifty-five (55) years of age and older. The range of activities varies from center to center, however, most senior center agencies provide recreational and social activities, hot lunch meals, a protected environment where elderly persons can congregate, community services, employment opportunities, opportunities for volunteer services, and information, referral and consultation services. If properly licensed as an adult day services center, the senior citizens center may operate an adult day services program.

(38) Significant Contact. Means, in the context of these rules, that owners or operators are likely to have unsupervised access to participants.

(39) Staff. Full and part-time caregivers or employees of the center.

(40) Substitute. Paid or unpaid persons who are replacements for regular staff.

(41) Suspension/Summary Suspension. The temporary removal of a license for violation of licensing laws or regulations immediately affecting the health, safety, or welfare of participants in an adult day services center.

(42) Temporary License. A permit issued by the Department to a new adult day services center when an applicant for an annual license does not meet all of the requirements for such license but has presented satisfactory evidence that the facility that is proposed for the care of adults has received fire safety, environmental safety and any necessary food establishment approval, that the applicant and the personnel who will care for the adults are capable in substantially all respects to care for the adults and that the applicant has the ability and intent to comply with the licensing law and regulations. This license allows and authorizes the temporary licensee to begin adult day services operations while the center demonstrates full compliance with all other applicable regulations.

(a) The temporary license is valid, unless suspended, for up to six (6) months or until the application for an annual license is finally determined, and is issued upon application or reapplication by the applicant only if the staff and facility do not present any apparent hazards to the participants that may be in care and only if the facility has received fire safety, environmental, and any necessary food establishment approval and if the applicant and the personnel who will care for the participants are capable in all substantial respects to care for the participants and that the applicant has the ability and intent to comply with the licensing laws and regulations.

(b) If, prior to the end of the six (6) months period, evidence is provided by the applicant that such adult day services center is suitable and properly managed and that the center is in compliance with the rules governing the applicable adult day services center, the Department will issue an annual license to the adult day services center unless the Department determines that a restricted license should be issued.

(c) The Department may extend the period of the temporary license for up to an additional six (6) months if the Department determines that the applicant has made substantial progress in meeting the requirements of the law and regulations for an initial annual licensee.

(43) Volunteer. A person who provides services for an adult day services agency without payment and who is used to supplement the regular staff.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.04 ; 1240-07-10-.16

(d) The license of any center shall not be voided nor shall any pending appeal be voided pursuant to this subparagraph (c) solely for the reason that the center is subject to judicial orders directing the transfer of control or management of an adult day services center or its license to any receiver, trustee, administrator or executor of an estate, or any similarly situated person or entity.

(e) If the current licensee dies, or becomes incapacitated, and provided that no licensing violations require the suspension, denial or revocation of the center’s license, the Department may grant family members of the licensee, or administrators or executors of the licensee, a new temporary license to continue operation for a period of six (6) months. At the end of such period, the Department shall determine whether an annual or extended license should be granted to a new licensee as otherwise provided in this

chapter.

(f) Nothing in this paragraph (12) shall be construed to prevent the Department from taking any regulatory or judicial action as may be required pursuant to the licensing laws and regulations that may be necessary to protect the participant in the care of such center.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.05 PROCEDURES FOR OBTAINING A LICENSE

(1) When an individual or group is giving consideration to opening an adult day services center, the individual or group shall contact the Department of Human Services pre-licensure unit.

(2) Pre-Application Training.

(a) Prospective applicants for a new license shall attend a pre-application meeting provided by the Department that covers an overview of adult day services operation issues for consideration in determining whether to apply for a license. This training shall include components on interviewing and evaluating caregivers for service in the agency.

(b) In the case of a program that is governed by a board of directors or trustees, this meeting shall be attended by the center’s director. If the prospective applicant is not responsible for the day-to-day management of the program, this meeting shall be attended by both the prospective applicant and the director responsible for the day to day management of the adult day services center.

(c) At the discretion of the Department, pre-application training may be waived for applicants/licensees that have already completed the training through an earlier licensing process. Any waiver of this requirement must be documented and confirmed in writing.

(3) In addition to the meeting required in subparagraph (2)(a) above, all new directors shall attend, within six (6) months prior to issuance of the license, an orientation session provided by the Department which covers, at a minimum, the laws and rules governing adult day services. In the case of a program that is governed by a board of directors or trustees, this training shall be attended by a licensee or onsite director who is responsible for the day-today management of the program.

(4) Issuance of a temporary license to new adult day services centers shall require:

(a) An Application.

1. A completed application form signed by the owner or the owner’s authorized representative and all application documentation as required by the Department.

2. In order to be considered complete, an application must be accompanied by the annual application fee.

(b) Payment of Applicable Licensing Fees.

1. Licensing fees must be submitted by certified check, business check, government agency check, money order, or electronic payment method if available through the Department.

2. Current license application fees are maintained on the Department’s website.

(c) Any adult day services center operated under a grant from the Department by a public, nonprofit or local municipality and which pays an administrative fee as part of the monitoring requirements of such grant shall be exempt from the licensure fee.

(d) Business Organization Documentation.

1. The business organization of every adult day services center shall be such that legal and administrative responsibility for the center is clearly defined.

2. Documentation of the center’s business organization shall be made in the form and manner directed by the Department. The application shall include copies of the business organization filings with the Tennessee Secretary of State Division of Business Services, as applicable.

(e) Verifications.

Approval of a temporary license shall include verification that:

1. The administrative structure of the center, as required by 1240-07-10-.06, appropriately identifies and provides structures and procedures for the full-time management of the center;

2. The qualifications for management positions fully comply with the requirements in

Tenn. Comp. R. & Regs. 1240-07-10-.06 OWNERSHIP, ORGANIZATION AND ADMINISTRATION

(1) Oversight.

(a) Centers owned by a municipality, county, or non-profit corporation with ten (10) or more participants shall be operated by a governing board.

1. The governing board shall have at least four (4) members and shall meet at least quarterly with documented minutes of the meetings.

2. The members of the governing board may include individuals who are recipients of the services of the adult day services center, relatives of such recipients, or representatives of community organizations with particular interest in programs for the elderly; and 3. The members of the governing board may not include individuals who have any direct or indirect interest in any contract for supplying services to the adult day services center or have an immediate family member with any such interest.

(b) For-profit centers shall be operated by the entity or individual applying for a license.

(c) Oversight of an adult day services center shall include:

1. Providing services described in the standards established by the Department.

2. Establishing relationships with local service providers for the purposes of consultation and/or referral.

3. Ensuring that adequate financing for the center’s operation is maintained.

Governing board minutes shall show evidence of financial review and be available to the licensing staff upon request.

4. Establishing an evaluation system which considers the needs of participants, their caregivers, and effectively identifies and resolves problems.

5. Maintaining compliance with Section 504 of the Federal Rehabilitation Act of 1973 and with the Americans with Disabilities Act (ADA) as well as any other applicable federal law.

(2) Operating Procedures and Policies.

(a) Each center shall establish written policies concerning admissions; discharges; fees; hours of operation; transportation, if applicable; personnel policies; plans for emergencies and disasters; and other policies as necessary.

(b) Each center shall provide a copy of the personnel policies to all employees.

(3) Philosophy and Goals.

(a) A center shall develop, in writing, a philosophy and set of goals to provide for the health, safety, and supervision of adults.

(b) A center’s philosophy and goals may focus on a target population delineated by age group, type of impairment, medical handicap or other criteria, but may not discriminate against any participants because of age or disability.

(c) A center shall develop a system for referring applicants that are deemed not appropriate for the program to other appropriate service providers such as the Area Agency on Aging and Disability, local 211 services, etc.

(4) Multiple-Use Facilities.

(a) A multiple-use facility such as, but not limited to, a hospital, nursing home, home for the aged, assisted-care living facility, senior-citizen center, church, or school in which an adult day services center is operated shall be governed by a written agreement regarding the center’s operation.

(b) The written agreement shall include such items as time allotted for use of the space by the adult day services center; maintenance of such space; use of equipment, security, fiscal, personnel, and other shared services.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.07 PROGRAM

(1) Individuals who present a significant threat to themselves or others, or whose intellectual, emotional, or behavioral needs prevent them from benefiting from the center’s program, shall not be enrolled. The center shall refer these individuals to appropriate service providers and resources.

(2) Each center shall provide supervision and personal care of the participants as needed.

(3) The program shall be designed to maintain the dignity of, and demonstrate respect for, each participant, allow for individual choices, and allow for each participant to experience successes each day.

(4) Participants shall take part in program development and activity planning to the extent possible.

(5) A participant who appears to the center’s staff to be mentally capable of making his or her own decisions may act on his or her own behalf without having another person as responsible party.

(6) Adult day services programs located in, or affiliated with, a licensed nursing home, a licensed hospital, a licensed assisted care living facility, a licensed home for the aged, a licensed residential hospice, a senior citizens center, church, or a school may utilize the resources of the facility/agency to act as support to the adult day services program. However, adult day services are not intended to serve as a substitute for the services of skilled nursing care or a senior citizens center. The adult day services program, regardless of its location or affiliation, shall comply with the program content requirements as described in paragraph (7).

(7) Contents of the Adult Day Services Program.

(a) Participants shall be offered a variety of activities throughout the day.

(b) The adult day services program shall consist of individual and group activities and therapies offered through individualized plans for each participant which set forth measurable goals or behaviorally stated objectives.

(c) Activities and therapies shall be designed to activate, motivate, and/or retrain participants to maximize their functional capacity.

(d) The following activities shall be offered daily: physical exercise, rest, social interaction, learning opportunities, mental stimulation, and, if needed, personal care. These social, educational and life-enrichment activities may include, but are not limited to, the following: arts, crafts, music, pet therapy, outings, current events, memory-enhancing activities, history, games, puzzles, cards, physical activity, reminiscence sessions, movies, guest speakers, and presentations, discussions about feelings, and appropriate recreational activities.

(e) Although leisure activities comprise an integral part of the adult day services program, activities which are limited to passive participation, including watching television, reading, etc. shall comprise no more than 20% of the center’s planned activity schedule.

(f) Participants shall always be given free choice about whether or not to take part in a particular activity.

(g) Group size should be appropriate to the type of activity, functional capability, and individual needs of the participants.

(h) The program shall include assistance from community referrals and resources when appropriate and available.

(i) A planned activity schedule shall be posted at all times.

(j) Routines shall encourage consistency and structure.

(8) Staff Interaction with Participants.

(a) Staff shall always address participants by the name preferred by the participant.

(b) Staff shall interact with participants in a manner that maintains the dignity and sense of autonomy of the participant; and (c) Staff shall interact with each participant in a manner that displays knowledge of his/her individual needs, likes, dislikes and individualized plan.

(9) Restraints.

(a) Restraints may be applied or administered to participants only on a signed order of a physician. The signed physician’s order must be for a specified and limited period of time and must document the necessity of the restraint. There shall be no standing orders for restraints.

(b) This paragraph regarding restraints excludes passive restraints which are ancillary to a participant’s equipment such as geri chair trays, lap belts, wheelchairs, leg braces, slings, and the like.

(c) When a participant’s safety or safety of others is in imminent jeopardy, the medical professional or onsite director shall use his/her judgment to use physical restraints if a physician’s order cannot be immediately obtained.

1. A written physician’s order must be obtained as soon as possible, but no later than within seven (7) calendar days.

2. In the event that this subparagraph is used, the onsite director shall notify the Department.

(d) Locked restraints and chemical restraints are prohibited.

(10) Any center offering a program for participants with Alzheimer’s disease is subject to the requirements of T.C.A. §§ 68-11-1401, et seq.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.08 PARTICIPANTS’ RECORDS

(1) A record of each participant shall be maintained by the center for at least one (1) year after disenrollment.

(2) Each record shall contain, at a minimum, the following information regarding the participant or their primary caregiver in the event the participant is unable to make their own decisions:

(a) Acknowledgment of receipt of participant bill of rights;

1. The following list of rights shall be given to any prospective participant in the adult day service:

(i) The right to self-determination within the adult day services setting, including the opportunity to:

(I) Participate in developing or changing one’s plan for services;

(II) Decide whether or not to participate in any given activity;

(III) Be involved to the extent possible in program planning and operation;

(IV) Refuse treatment and be informed of the consequences of such refusal; and (V) End participation in the adult day services center at any time.

(ii) The right to be treated as an adult, with consideration, respect and dignity, including privacy in treatment and in care for personal needs;

(iii) The right to a thorough initial assessment, development of an individualized plan of care, and a determination of the required level of care;

(iv) The right to confidentiality and the guarantee that no personal or medial information will be released to persons not authorized under law to receive it without the participant or their legal representative’s written consent;

(v) The right to voice grievances about care or treatment without discrimination or reprisal;

(vi) The right to be free from harm, including isolation, excessive medication, abuse, neglect and/or financial exploitation;

(vii) The right to be fully informed, at the time of acceptance into the program, of services and activities available and related charges; and (viii) The right to communicate with others and be understood by them to the extent of the participant’s capability.

(b) Name, address, age, and other identifying information;

(c) Primary caregiver and/or responsible party;

(d) Emergency contact information for primary caregiver or a responsible party and medical provider for the participant;

(e) A copy of any known existing and currently effective power of attorney, any health care proxy, any advanced care directive, and any physician’s orders for scope of treatment (POST) involving the participant;

(f) A copy of any known existing and currently effective conservatorship and/or guardianship documents involving the participant;

(g) A pre-enrollment assessment, which shall include:

1. Brief psycho-social history to include: likes/dislikes, diet, living situation, family and social contacts, daily routines/schedule, habits, interests, hobbies, and spiritual preferences;

2. Basic health history to include: current medical diagnosis, current prescription and non-prescription medications (see 1240-07-10-.13), standing orders, physical disabilities or medical conditions requiring specific modes of care and/or adaptive devices (including allergies and special dietary requirements), and any existing mental health or psychiatric diagnosis, if relevant or present;

3. Documentation, if available, showing the last date that the participant was seen by a physician;

4. Current behavioral history to include: strengths, limitations in activities of daily living, behaviors impacting care and treatment;

5. Physician order for non-emergency restraint, if applicable; and 6. Additional information provided by the caregiver, family, responsible party or staff necessary for the provision of comprehensive individualized care and support.

(h) A transportation plan which shall provide:

1. A list of individuals or entities authorized to transport the participant; and 2. Necessary and appropriate documentation to transport individual participants.

(3) The record for each participant shall also include the participant’s individualized plan.

(a) The participant and his/her family/responsible parties shall be encouraged and invited to be involved in the development of the individualized plan and all subsequent revisions.

(b) Participant records shall show evidence of regular communication with the participant and/or responsible party about the individualized plan including changes to the plan and other pertinent information.

(c) Plans shall be reviewed and updated as indicated by the participant’s change in status, but at least every three (3) months.

(d) All plans, including all revisions, updates, changes, etc. shall be signed and dated by the adult day services director or designee; participant or responsible party as defined in these rules, and any third-party service providers, if applicable. If any party refuses to participate in the planning process and/or sign the plan, the plan must include a statement of this along with a brief explanation of the reason for refusal.

(e) The plan shall contain the following information regarding the participant:

1. Mental and Physical Conditions.

(i) The participant’s cognitive, emotional, and physical conditions shall be recorded upon intake into the adult day services center.

(ii) This plan shall include how these conditions will be accommodated, maintained and/or enhanced by the services provided.

2. Alzheimer’s Specific Programs.

(i) Participants with Alzheimer’s disease or other dementia shall be provided activities designed to stimulate memory that are based on best practices or special service specific to assistance with these diseases.

3. Goals and Services.

(i) The goal and services shall be clearly stated and shall specifically address the participant’s individual needs and desired outcomes of the participant.

(ii) The needs in this individualized plan shall address the personal, social, emotional, physical, cognitive strengths and, where appropriate, the educational needs of the participant.

(iii) The goal and services shall demonstrate how the participant will benefit from participation in the program.

(iv) The plan shall demonstrate how the specific services are going to be implemented in order to meet the stated goal established for the participant.

4. Progress.

(i) At the end of every three (3) month period (quarterly), a specific written progress report shall identify how the plan has been implemented and identify the specific outcomes.

(ii) If, upon review, it is determined that adequate progress towards the goal has not been achieved, the individualized plan shall be revised.

5. Any accommodation provided to meet the individual needs of the participants.

6. Significant and/or sustained changes in the participant’s mood, behavior, diet, medications, or other personal circumstances that are observed by the staff shall be documented with signatures and dates in the participant’s record.

(4) Daily attendance records shall be maintained.

(5) A written record of incidents, accidents, injuries, illnesses and emergencies involving the participant shall be maintained and shall be reported to the participant’s responsible party no later than the end of the day on which it occurred.

(6) An adult day services center located on the premises of, and operated by, a licensed nursing home, a licensed hospital, a licensed assisted-care living facility, a licensed home for the aged, or a licensed residential hospice shall clearly separate and identify participant records and activities related to the adult day services center.

(7) Records concerning participants shall be made available to emergency medical personnel whether treatment is rendered on site or participant is transported to a health care facility.

(8) Release of Information.

(a) Except as provided in subparagraph (b) below, no information from the record of a participant shall be released or disclosed except as required by law or regulation, or with the permission of the participant or participant’s responsible party.

(b) Information from any records of the center, including the records of individual participants, shall be provided upon request to the Department’s Adult Day Services licensing staff or to law enforcement officials or Adult Protective Services staff of the Department in order to investigate allegations of abuse, neglect or exploitation of any participant.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.09 CRIMINAL BACKGROUND AND STATE REGISTRY REVIEW PROCEDURES

(1) Criminal Background and Abuse Registry Disclosures and Reviews; Fingerprinting Requirements.

(a) The following persons are required to undergo a criminal background check and registry reviews before having unsupervised access to any vulnerable adult in an adult day services center:

1. Any person who owns or operates an adult day services center and has significant contact with participants;

2. Any person who applies to work in an adult day services center as an employee, director, or manager; and 3. Any person who will volunteer in an adult day services center for more than thirty-six (36) hours in a calendar year and who is counted in the staff:participant ratio; and those volunteers who have unsupervised access to the adult participants in adult day services centers and who will volunteer in the center for more than thirty-six (36) hours.

(b) Requirements for Disclosure of Criminal/Juvenile and Administrative History and Fingerprinting.

1. The individuals identified in subparagraph (1)(a) above shall be required to:

(i) Complete a criminal/juvenile/administrative findings history disclosure form;

(ii) Submit fingerprint samples for a criminal and juvenile records background check; and (iii) Complete a criminal background check/state registry review consisting of:

(I) An investigation of a person’s criminal background history by the Tennessee Bureau of Investigation and through the Federal Bureau of Investigation’s national database;

(II) An investigation of a person’s juvenile records history that is available to the Tennessee Bureau of Investigation;

(III) A review of any available juvenile court records, if determined necessary by the Department;

(IV) A search of the vulnerable persons registry, maintained by the Tennessee Department of Health;

(V) A search of the sexual offender registry, maintained by the Tennessee Bureau of Investigation; and (VI) A search of the Department of Children’s Services registry of substantiated perpetrators of abuse or neglect of children.

(2) Responsibility for Providing Fingerprint Sample; Prohibition of Contact with Participants Prior to Completion of Criminal History Review.

(a) An adult day services center shall be responsible for obtaining and submitting the fingerprint sample of any person required by this rule in the form and manner directed by the Department. The person subject to the requirements of subparagraph (1)(b), and the entities with whom they will be, or are, associated, shall be required to provide any information necessary to process the criminal history review required by this paragraph prior to such person’s assumption of any role described in subparagraph (1)(a). New background checks for existing employees who transfer to another adult day services center are only required for employees when the employee has been separated from employment from an adult day services center within the State for a period of more than 180 consecutive days.

(b) An adult day services center may not permit any person who is required to undergo a criminal background check and state registry review to assume any role described in subparagraph (1)(a) above for which the criminal background check/state registry review is required or to have unsupervised access to participants before each of the required histories/records/registries have been checked to verify that the person does not have a criminal history or is not listed on a registry that would disqualify or otherwise exclude the person.

(c) Failure to Complete or Disclose Information on Criminal Disclosure Form.

1. The failure to properly complete all sections of the Criminal/Administrative History Disclosure Form shall result in the individual being prohibited from assuming any position or status for which a background review is required by T.C.A. § 71-3-507 and subparagraph (1)(a) of this rule.

2. The failure to disclose all criminal and administrative history information may result in the person being:

(i) Excluded by the Department from working, directing, managing, operating, volunteering, or acting as a licensee in any adult day services center licensed by the Department; and (ii) Referred to the appropriate district attorney for criminal prosecution.

(d) Unless otherwise notified by the Department, the adult day services center shall be responsible for all costs associated with obtaining the fingerprint sample, and for the costs of the criminal background check by the Tennessee Bureau of Investigation. The adult day services center may require that the costs of the background check be a part of the application process by a prospective employee or volunteer, or it may pay the costs and recover the costs of the fingerprint-based background checks from the prospective employee following employment.

(3) Prohibited Criminal, Juvenile, Vulnerable Persons or Sex Offender Registry, Abuse or Neglect or Driving History; Exclusion from Contact with Participants.

(a) No person shall be employed with, be a licensee or operator of, or have any access whatsoever to participants in an adult day services center if the criminal background check identifies an excludable criminal offense for which the person has:

1. Been convicted of, pled guilty or no contest to, or to a lesser included offense;

2. Been, or currently is, the subject of a juvenile petition or finding that would constitute a criminal offense or lesser included offense if the child were an adult; or 3. Been named in a pending warrant, indictment, presentment, petition, pretrial or judicial diversion.

(b) An excludable criminal offense involves, generally:

1. The physical, sexual or emotional abuse or neglect of an adult or child;

2. A crime of violence against any human being;

3. Any offense (including a lesser included offense) involving the manufacture, sale, distribution or possession of any drug; or 4. Any offense that presents a threat to the health, safety or welfare of adults or children.

(c) No person may be employed as a driver or serve as a driver for an adult day services center if the person:

1. Is currently charged with; or 2. Has been convicted of, or pled guilty to, within the last five (5) years to one of the following criminal offenses:

(i) Vehicular homicide (T.C.A. § 39-13-213);

(ii) Accidents involving death or personal injury (T.C.A. § 55-10-101);

(iii) Accidents involving damage to a vehicle (T.C.A. § 55-10-102);

(iv) Driving under the influence of intoxicant, drug or drug producing stimulant (T.C.A. § 55-10-401); or (v) Any felony involving the use of a motor vehicle while under the use of any intoxicant.

(4) Criminal offenses for which exclusion from access to adult day services is required includes, but is not limited to, the following (including any as amended):

(a) Aggravated arson (T.C.A. § 39-14-302);

(b) Aggravated assault (T.C.A. § 39-13-102);

(c) Aggravated child abuse (T.C.A. § 39-15-402);

(d) Aggravated child neglect (T.C.A. § 39-15-402);

(e) Aggravated cruelty to animals (T.C.A. § 39-14-212);

(f) Aggravated kidnapping (T.C.A. § 39-13-304);

(g) Aggravated rape (T.C.A. § 39-13-502);

(h) Aggravated rape of a child (T.C.A. § 39-13-531);

(i) Aggravated robbery (T.C.A. § 39-13-402);

(j) Aggravated sexual battery (T.C.A. § 39-13-504);

(k) Aggravated sexual exploitation of a minor (T.C.A. § 39-17-1004);

(l) Aggravated vehicular homicide (T.C.A. § 39-13-218);

(m) Arson (T.C.A. § 39-14-301);

(n) Assault (T.C.A. § 39-13-101);

(o) Carjacking (T.C.A. § 39-13-404);

(p) Child abuse, child neglect or endangerment (T.C.A. § 39-15-401);

(q) Criminal attempt, under § 39-12-101, to commit any criminal offense that requires exclusion from child care;

(r) Criminal exposure to HIV (T.C.A. § 39-13-109);

(s) Criminal homicide (T.C.A. § 39-13-201);

(t) Criminally negligent homicide (T.C.A. § 39-13-212);

(u) Cruelty to animals (T.C.A. § 39-14-202);

(v) Custodial interference (T.C.A. § 39-13-306);

(w) Domestic abuse in violation of an order of protection or in violation of a restraining order (T.C.A. § 39-13-113);

(x) Domestic assault (T.C.A. § 39-13-111);

(y) Drug offenses (felony or misdemeanor, possession, manufacturing, sale, distribution, etc.) within the past five years;

(z) Especially aggravated burglary (T.C.A. § 39-14-404);

(aa) Especially aggravated kidnapping (T.C.A. § 39-13-305);

(bb) Especially aggravated robbery (T.C.A. § 39-13-403);

(cc) Especially aggravated sexual exploitation (T.C.A. § 39-17-1005);

(dd) Exploitation of a minor by electronic means (T.C.A. § 39-13-529);

(ee) False imprisonment (T.C.A. § 39-13-302);

(ff) First degree murder (T.C.A. § 39-13-202);

(gg) Incest (T.C.A. § 39-13-302);

(hh) Indecent exposure (T.C.A. § 39-13-511);

(ii) Involuntary labor servitude (T.C.A. § 39-13-307);

(jj) Kidnapping (T.C.A. § 39-13-105);

(kk) Rape (T.C.A. § 39-13-503);

(ll) Rape of a child (T.C.A. § 39-13-522);

(mm) Reckless endangerment (T.C.A. § 39-13-103);

(nn) Reckless homicide (T.C.A. § 39-13-215);

(oo) Robbery (T.C.A. § 39-13-401);

(pp) Second degree murder (T.C.A. § 39-13-210);

(qq) Sexual battery (T.C.A. § 39-13-505);

(rr) Sexual battery by an authority figure (T.C.A. § 39-13-527);

(ss) Sexual exploitation of a minor (T.C.A. § 39-17-1003);

(tt) Solicitation of a minor (T.C.A. § 39-13-528);

(uu) Stalking (T.C.A. § 39-17-315);

(vv) Statutory rape (T.C.A. § 39-13-506);

(ww) Statutory rape by an authority figure (T.C.A. § 39-13-532);

(xx) Trafficking a person for sexual servitude (T.C.A. § 39-13-309);

(yy) Vehicular assault (T.C.A. § 39-13-106);

(zz) Vehicular assault while intoxicated (T.C.A. § 39-13-106);

(aaa) Vehicular homicide (T.C.A. § 39-13-213);

(bbb) Voluntary manslaughter (T.C.A. § 39-13-211);

(ccc) Weapons offenses (unlawful possession, carrying, use, etc.);

(ddd) Aggravated burglary (T.C.A. § 39-14-403);

(eee) Burglary (T.C.A. § 39-14-402);

(fff) Criminal simulation (T.C.A. § 39-14-115);

(ggg) Extortion (T.C.A. § 39-14-112);

(hhh) Forgery (T.C.A. § 39-14-114);

(iii) Fraudulent use of a credit card (T.C.A. §§ 39-14-118, 39-14-105);

(jjj) Identity theft (T.C.A. § 39-14-150);

(kkk) Shoplifting (T.C.A. § 39-14-146);

(lll) Theft of property (T.C.A. § 39-14-103);

(mmm)Theft of services (T.C.A. § 39-14-104); or (nnn) Worthless checks (T.C.A. § 39-14-121).

(5) Exclusion from access to an adult day services center based on a listing on a state registry.

(a) No person shall be employed with, be a licensee or operator of, or have any access whatsoever to participants in an adult day services center if the results of the state registry review or in the equivalent administrative registries or court records in any jurisdiction in which the person has resided in the past five (5) years identify the person as being:

1. Listed on the vulnerable persons registry, maintained by the Tennessee Department of Health;

2. Listed on the sexual offender registry, maintained by the Tennessee Bureau of Investigation; or 3. Substantiated in the records of the Department of Children’s Services for abuse or neglect of a child.

(6) Supplemental Background Checks Subsequent to Licensing, Employment or Residence in an Adult Day Services Center.

(a) Pursuant to T.C.A. § 71-3-507(g)-(k), the Department may, at any time, require the review of the criminal, available juvenile records or administrative records of any individual with access, as determined by the Department, to participants in an adult day services center using the processes described in this chapter or in T.C.A. § 71-3-507, or by any other available means. All other provisions of this chapter and T.C.A. § 71-2- 403 applicable to any pre-employment or post-employment, residential or access status of any individual shall apply to any background reviews conducted pursuant to this paragraph and the results of such review.

(b) For an individual who was not subject to the background or records screening requirements required by this chapter prior to assuming a role described in subparagraph (1)(a), or prior to having access to participants in any other capacity, such individual’s existing status in such role shall be conditional upon the satisfactory outcome of any requested criminal/juvenile/administrative history disclosure, fingerprint record background check, and any vulnerable persons registry or the sex offender registry check, or any review of substantiated abuse or neglect perpetrator status with the Departments of Children’s or Human Services that may be conducted pursuant to this subparagraph.

(7) Appeal of exclusion from access to an adult day services center.

(a) A person that has been excluded from access to an adult day services center due to a criminal offense or state registry listing or in equivalent administrative registries or court records has the right to appeal the exclusion. The appeal is limited to the consideration of:

1. Whether the person being excluded is in fact the person identified in the criminal

history records or registry listing that was used to determine that the person must be excluded; or 2. Whether the crime or listing which is the basis for the exclusion has been dismissed, resulted in an acquittal, nolled, or expunged, so that the person should not be excluded.

(b) The person must make a written request for an appeal within ten (10) calendar days of the mailing date of the letter notifying him/her of the exclusion to the DHS Division of Appeals and Hearings. If timely appealed, the Department shall provide an administrative hearing pursuant to the Uniform Administrative Procedures Act, compiled in Title 4, Chapter 5, Part 3.

(8) Requests for a waiver from exclusion from access to an adult day services center.

(a) A person that has been excluded from an adult day services center access due to a criminal offense or registry listing has the option of requesting a waiver from the exclusion. The request for a waiver is sent to the Director of Adult and Child Care Licensing. A waiver will be granted only if the person can show that extenuating circumstances exist that clearly justify granting a waiver.

(b) The request for a waiver shall state the basis for the request, including any extenuating or mitigating circumstances that would, in the individual’s opinion, clearly warrant an exemption from the exclusion. Any documentary evidence may also be submitted with the request. Waivers shall be based upon extenuating circumstances that clearly warrant consideration of an exemption.

(c) Requests for waivers shall be reviewed by an advisory committee in accordance with the provisions of T.C.A. § 71-3-507. The committee shall make a recommendation to the Director of whether to grant or deny the waiver request. The Director shall make the final decision.

(d) Any person who is the subject of an exclusion who is dissatisfied with the decision of the Director of Licensing regarding a waiver must make a written request for an appeal within ten (10) calendar days of the mailing date of the letter notifying him/her of the exclusion to the DHS Division of Appeals and Hearings. If timely appealed, the Department shall provide an administrative hearing pursuant to the Uniform Administrative Procedures Act, compiled in Title 4, Chapter 5, Part 3.

(9) Any person who is excluded from providing care or services or having access to participants under any provisions of this chapter shall remain excluded pending the outcome of any appeals or exemption review or any determination that the basis for exclusion no longer exists.

(10) Nothing in this chapter shall be construed to prevent the exclusion of any individual from providing care for, or from being licensed for the care of, participants pursuant to this chapter or from having access to a participant in an adult day services center if a criminal or juvenile proceeding, registry or administrative background requiring exclusion under T.C.A. 71-2-403 or any provision of law is discovered and verified in any other manner other than through a procedure established pursuant to this chapter. All procedures, rules, and appeal processes established pursuant to this chapter for the protection of participants and the due process rights of excluded individuals shall also be applicable to such individuals.

(11) Exclusion of persons who currently have access to adult day services.

(a) A center shall immediately notify the Department if it receives information, either through first-hand knowledge or via a third party, that a person who is operating, working in, volunteering at, or has any access whatsoever to the adult day services center:

1. Is currently charged with a criminal offense;

2. Has a criminal conviction; or 3. Is listed on the state vulnerable persons registry, sexual offender registry, or Department of Children’s Services substantiated perpetrator registry.

(b) Such notification shall be made by telephoning the Department within twenty-four (24) hours of receiving such information. This shall include all information received by the center that was not included in the criminal background check/state registry review that was required to be conducted prior to the person assuming any role at the center.

(c) The exclusion of such persons from access to an adult day services center shall be pursuant to T.C.A. § 71-2-403 and paragraphs (3)-(5), above.

(12) The failure of an adult day services center to immediately exclude individuals with a criminal background history or state registry review status that requires exclusion pursuant to T.C.A. § 71-2-403 and this rule, as directed by the Department, shall be the basis for the immediate suspension, denial or revocation of the adult day services center’s license.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.10 PHYSICAL FACILITY

(1) New construction, major renovations and/or additions to existing facilities shall be constructed and maintained according to the standards of the Fire Prevention Division of the Tennessee Department of Commerce and Insurance and/or of the Division of General and Environmental Health of the Tennessee Department of Health.

(2) Any new construction, major renovations, and/or additions to existing facilities that are located on the premises of a licensed nursing home, a licensed hospital, a licensed assistedcare living facility, a licensed home for the aged or a licensed residential hospice must have been inspected and approved for fire and environmental safety standards using the Life Safety Code by the Tennessee Department of Health’s Division of Health Care Facilities prior to use as an adult day services center.

(3) Fire Safety Requirements. Prior to issuance of a temporary license and each annual license thereafter, an adult day services center shall receive an approved fire safety inspection by an appropriate fire inspection official as directed by the State Fire Marshal’s office of the Tennessee Department of Commerce and Insurance.

(4) Environmental Safety Requirements.

(a) Prior to issuance of a temporary license and each annual license thereafter, an adult day services center shall receive an approved environmental inspection by an appropriate health inspection official as directed by the Tennessee Department of Health.

(b) A separate environmental inspection as specified in subparagraph (a) above is not required for centers that:

1. Receive approval in compliance with the law as a licensed nursing home, a licensed hospital, a licensed assisted-care living facility, a licensed home for the aged or licensed residential hospice by the Tennessee Department of Health’s Division of Health Care Facilities.

2. Are located on the premises of a licensed nursing home, a licensed hospital, a licensed assisted-living facility, a licensed home for the aged or a licensed residential hospice and provides evidence that the “adult day services center” area of the facility has been inspected and approved for environmental standards using the Life Safety Code by the Tennessee Department of Health’s Division of Health Care Facilities.

(c) The director of the adult day services center shall immediately alert the Department of any deficiency identified by the Tennessee Department of Health during the course of an inspection.

(d) No license for an adult day services center located on the premises of, and operated by, a licensed nursing home, a licensed hospital, a licensed assisted-care living facility, a licensed home for the aged, or a licensed residential hospice may be issued without the written approval of the Tennessee Department of Health and the Department of Human Services that an adult day services program may be operated at the same time.

(5) The center shall have space on the ground level floor, or that is accessible by elevator or wheelchair ramps or other assistive devices, to accommodate a full range of program activities and services, which shall include, but are not limited to:

(a) Space for individual and group activities;

(b) Private office space to permit staff to work effectively;

(c) Storage space for program and operating supplies; and (d) Space for special therapies, a rest area, and a designated area to isolate the ill, which includes comfortable resting furniture that would allow participants to recline or lie down. This may be in one room or in more than one room.

(6) At least forty (40) square feet of indoor activity space per participant shall be provided, excluding floor space for bathrooms, storage areas, and rooms designated for staff use only.

(7) Adult day services centers located on the premises of, on the grounds of, or adjacent to other operations such as licensed nursing homes, licensed hospitals, licensed assisted-care living facilities, licensed residential homes for the aged, or licensed residential hospices may utilize, on a staggered or shared basis, the same facilities such as dining rooms, recreation rooms, or physical therapy rooms, provided that:

(a) Overcrowding does not occur;

(b) The staff:participant ratio set forth in 1240-07-10-.12 is maintained; and (c) The space in these other facilities shall not count toward the space requirements necessary for the conduct of the adult day services center as specified in paragraph (5) above.

(8) Programs that are located on the premises of a licensed nursing home, a licensed hospital, an assisted-care living facility, a licensed home for the aged or a licensed residential hospice or other programs in a multi-use facility shall have dedicated space that provides at least forty (40) square feet of indoor activity space per participant separate from other programs and activities in the building.

(9) Involvement of adult day services center participants in other activities in the building with participants from other programs shall be on a planned basis, as a part of the adult day services program, and supervised by adult day services staff.

(10) The center and any designated outdoor space shall be kept clean, safe and free from hazards and offensive odors.

(11) Program Equipment.

(a) Sufficient and appropriate seating space for all participants shall be provided.

(b) Sufficient table or tray space for dining and activities shall be provided.

(c) All equipment shall be safe and well maintained.

(d) Space and equipment shall be arranged for ease of use, accessibility, and to minimize noise and distractions.

(12) Safety Equipment.

The following safety equipment shall be kept on site:

(a) A first aid kit that contains at least the following: sterile and adhesive bandages, antiseptics, sterile compresses, scissors, an oral or topical thermometer and adhesive tape;

(b) Blankets;

(c) Wheelchair;

(d) Blood pressure cuff;

(e) Scale;

(f) Walkers; and (g) Locked storage space for drugs.

1. If medicine requiring refrigeration is kept in a refrigerator used for food storage, the medicine shall be put in a leak proof locked container and be properly labeled.

2. Keys for these storage containers shall be inaccessible to participants.

(13) Toilet Facilities.

(a) For the first fifteen (15) participants in the adult day services center, there shall be a minimum of two (2) toilets in the adult day services center, one (1) of which shall be wheelchair accessible. An additional toilet shall be available for each additional ten (10) participants.

(b) Fifty percent (50%) of the toilets in the adult day services center shall be wheelchair accessible.

(14) The heating/cooling system shall operate adequately to assure the comfort and safety of the participants.

(15) The center shall have a working telephone.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.11 FOOD SERVICE

(1) All adult day services centers shall comply with the applicable food service standards of the Tennessee Department of Health, including obtaining the necessary permit and submitting to all required inspections.

(2) One (1) snack shall be provided for participants who are in care for at least four (4) hours in any given day. If the four (4) hour period covers a normal meal hour, a meal shall be served in lieu of a snack, or two (2) snacks if the center is advised that the participant has been, or will be, fed this meal at his/her home.

(3) Participants shall be encouraged, but never forced, to eat.

(4) Food preparation shall be conducted in a safe and sanitary manner as required by the state health inspector.

(5) Nutritional needs shall be met in accordance with the Dietary Guidelines for Americans published by the U.S. Department of Health and Human Services and the U.S. Department of Agriculture and in accordance with each caregiver’s instructions and physician’s orders, if applicable.

(6) The center shall post a current menu in a prominent place so that it may be seen by the participants and their responsible parties in order to allow for participant choice.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.12 STAFFING AND SUPERVISION

(1) General Staff Requirements.

(a) At least one staff member who can read, write, and speak English shall always be available on site.

(b) A minimum of seventy-five percent (75%) of persons included in the staff:participant ratio shall have a high school diploma or GED.

(c) Age requirements.

1. Except as provided in part 2. below, all employees and volunteers shall be at least eighteen (18) years of age.

2. Students enrolled in high school who are at least fourteen (14) years of age:

(i) May provide office or administrative services to the center;

(ii) May provide companionship services for the participants but may not be left alone without the presence of at least one qualified staff member, eighteen (18) years of age or older;

(iii) May not supervise staff or volunteers; and (iv) Shall not be counted in the staff:participant ratio.

(d) A volunteer shall not be used to meet the staff:participant ratio unless his/her education and training meets the minimum qualifications required of direct care staff and he/she meets the background check requirements contained in these rules. A name, address, telephone number(s), and dates of service shall be recorded for each volunteer in the personnel records of the center.

(e) There shall be present at all times at least one (1) direct care staff person who is trained and certified in cardiopulmonary resuscitation (CPR) and trained in first aid, the Heimlich maneuver, and the center’s fire, safety, and emergency plans.

(f) In the absence of the director, an assistant director or other staff member shall act in the place of the director, and all staff shall be notified of this designation.

(g) Each center shall maintain an organizational chart for the facility and any updates will be provided to the Department.

(2) Director Qualifications.

(a) The director of the adult day services center shall have one or more of the following qualifications:

1. A minimum of a bachelor’s degree in social services, health, and/or related fields and one (1) year of experience working in social services, health, and/or related fields; or 2. A minimum of a bachelor’s or master’s degree (not related to social services, health, or related fields) with two (2) years work experience in social services, health and/or related fields; or 3. Sixty (60) semester hours (formal college training) in social services, health, and/or related fields and two (2) years of work experience in social services, health and/or related fields; or 4. A minimum of a master’s degree in health, social services, and/or related fields; or 5. A high school diploma or its equivalent, and five (5) years of full time work experience (in a managerial capacity) in social services, health and/or related fields.

(b) An adult day services center located on the premises of, and operated by, a sponsoring facility consisting of either a licensed nursing home, a licensed hospital, a licensed assisted-care living facility, a licensed home for the aged, or licensed residential hospice, shall comply with all adult day services licensing requirements.

(3) Training.

(a) Prior to assuming duties and responsibilities all staff, whether paid or unpaid, shall complete Department-recognized training on universal precautions, fire safety, emergency plans, infection control and infectious diseases; and Departmentrecognized training on the signs and symptoms of abuse, neglect or exploitation of an adult as specified by T.C.A. §§ 71-6-102 et seq., as well as the duty to report to the Department any abuse, neglect or exploitation of an adult as required by T.C.A. § 71-6- 103.

(b) All staff shall complete eight (8) hours of Department-recognized annual training relevant to the performance of their duties and related to the population served, the behaviors of the population served, infection control and infectious diseases and other such relevant training.

(c) Within thirty (30) days of beginning his/her duties, each staff person shall complete Department-recognized training on the signs and symptoms of abuse, neglect or exploitation of an adult as specified by T.C.A. §§ 71-6-102 et seq., as well as the duty to report to the Department any abuse, neglect or exploitation of an adult as required by T.C.A. § 71-6-103.

(4) Staff Records.

(a) An employment record shall be maintained on site for each current employee and volunteer included in the staff of the adult day services center.

(b) Hard copy or electronic files are acceptable to meet the record requirements of this paragraph.

(c) An employment record shall be maintained by the center for at least one (1) year after cessation of employment or volunteer service.

(d) An employment record for each employee and volunteer used to meet ratios shall include the following:

1. Name, telephone number, and all addresses associated with the individual, both residential and employment-related, within the twelve (12) month period prior to the hiring as an employee or acceptance as a volunteer;

2. Signed and completed criminal history disclosure form;

3. Background check clearance letter;

4. Evidence of educational background;

5. Employment history;

6. Documented verification of three (3) non-relative references;

7. Job description;

8. Annual performance evaluation;

9. Verification of required training hours; and 10. A person to be notified in case of an emergency involving the employee or volunteer.

(5) Staffing Patterns.

(a) Staff of the center shall be adequate in number and skill to ensure the safety and proper supervision of the participants, meet the individual support needs of the participants, and to carry out the objectives of the center.

(b) The direct care staff to participant ratio shall consist of at least one (1) direct care staff person for every eight (8) participants. The required number of direct care staff shall be maintained onsite.

1. Staff may assist participants with tasks as needed apart from the group, and participants may engage in activities beyond the sight of staff.

2. Staff shall know the whereabouts of participants and provide a level of supervision consistent with the needs of the participant.

(c) Volunteers may be considered in determining direct care staff:participant ratios; provided that the volunteer’s education and training meet the minimum qualifications required of direct care staff. Volunteers who do not meet these minimal requirements may not be counted in the required ratio and shall always be directly supervised by at least one (1) responsible paid direct care staff member, but may assist staff and other qualified volunteers subject to the criminal background requirements set forth in this

rule and T.C.A. § 71-2-403.

(6) Responsibility of Center for Supervision of Participants.

(a) The director of the center shall maintain a system of supervision that ensures the participant’s autonomy and freedom of choice:

1. Is appropriate to each participant’s individual needs;

2. Ensures each participant’s health and safety; and 3. Allows center personnel to know the whereabouts of each participant and to allow for immediate physical access.

(b) The system shall include a mandatory visual inspection of all areas of the building and grounds immediately prior to closing the center for the day in order to ensure that no participant has remained in any part of the center’s facilities.

(c) Devices such as mirrors, video equipment used for live stream viewing, electronic sound monitors, etc. may be used as appropriate to assist the supervision requirements.

(d) Staff shall be aware of each participant’s personal care needs while respecting the privacy of the participant.

(e) Required Staff:Participant Ratios.

1. The center shall have a plan that enables staff, in an emergency situation, to access additional staff who can respond quickly in order to maintain the required staff:participant ratio.

2. The minimum required staff:participant ratio must be increased by at least one (1) staff member during off-site activities, and then increased, as necessary, to meet any special needs of each participant and to provide adequate supervision.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; and 71-2-401, et seq.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023.

Tenn. Comp. R. & Regs. 1240-07-10-.13 MEDICATION

(1) The center shall have a written policy which allows a participant to self-medicate or which allows staff who have received medication training to supervise or provide assistance to the participant for this purpose in accordance with any requirements set by the participant’s health care practitioner.

(2) Appropriate assistance or supervision by staff includes reading labels, opening bottles, reminding participants to take medication, checking the self-administered dose against the dosage shown on the prescription, observing the participant while taking medication, reassuring participants that he/she is taking the correct dosage, and reporting any noticeable changes in the condition of a participant to a physician and/or to the responsible party.

(3) Under no circumstances shall an employee or volunteer provide any prescription medication to a participant unless under the direction of the participant’s physician.

(4) A list of current prescription and non-prescription medicines including herbals, vitamins and other supplements being taken by each participant shall be maintained by the center and updated as changes occur.

(5) All medications shall be stored in a container, labeled with the participant’s name, the name of the medication, dosage strength, frequency, method of administration, prescribing physician, and special instructions.

(6) For participants requiring assistance, the center shall maintain daily records of medications taken by the participant, including the date, the dosage, the time the medication was taken and the signature of any staff assisting.

(7) The center shall document all known medication errors, in writing, in the participant’s file; and the center shall report the incident to the director of the adult day services center, the participant’s family and/or responsible party, and the Department within twenty-four (24) hours of the incident.

(8) Discontinued and outdated drugs and containers with worn, illegible or missing labels shall immediately be returned to the responsible party or disposed of properly.

(9) An adult day services center located on the premises of and operated by a licensed nursing home, a licensed hospital, a licensed assisted-care living facility, a licensed home for the aged, or a licensed residential hospice shall be deemed to meet the requirements of this rule if, for its adult day services participants, it utilizes the same system for medication recordkeeping as it used for its other patients/clients/residents; provided, however, the records kept for the participants of the adult day services center shall be placed in individual files separate from the files of the other patients/clients/residents of the facility and shall include the information required by this rule.

(10) Medication records shall be made available to emergency medical personnel whether treatment is rendered on site or participant is transported to a health care facility.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.14 TRANSPORTATION

(1) Center Responsibility.

(a) The adult day services center shall be fully responsible for the care and supervision of any participant for whom it provides transportation.

(b) The adult day services center shall develop a written transportation plan to include routine and emergency procedures to provide for the safety of participants. Accidents, medical emergencies, and escort issues shall be addressed.

(c) The adult day services center shall provide the driver or staff transporting the participants with all relevant information for such participants, including any necessary medical information.

(2) Requirements for Tracking Participants during Transportation.

(a) The driver of the vehicle, or another designated staff person riding in the vehicle, shall use a log to record the following information for each trip made by each vehicle:

1. First and last names of each participant;

2. Run time;

3. Pick-up place and time; and 4. Delivery place and time.

(b) The log shall be updated as each participant enters or exits the vehicle.

(c) When the last participant exits the vehicle, the driver, or other designated staff person, shall physically inspect all seats and interior spaces by walking through the vehicle to ensure that all the participants being transported have exited the vehicle. The time and place of the physical inspection shall be recorded on the log and turned into the center at the end of each day.

(d) The driver/center shall maintain a plan for contacting the responsible parties or emergency contacts for participants who are absent at scheduled pick-up locations.

(3) Vehicle Occupancy.

(a) The driver will only be away from the vehicle long enough to assist each participant to his/her destination after which the driver will promptly return to the vehicle.

(b) The driver shall not leave the vehicle for personal reasons, or any reason not directly related to the transport or safety of the participants.

(4) Any vehicle used either by the adult day services center, or under the sponsorship or control of the center, which is used for transportation of participants shall be covered by vehicle liability insurance.

(5) Vehicles used to transport participants shall be maintained in safe working condition and shall comply with all applicable state laws.

(6) Participants shall not be on a vehicle for more than one and one-half hours without the opportunity for a rest stop.

(7) All vehicles used to transport participants shall have an operational fire extinguisher, emergency triangles, a seat belt cutter, a working flashlight, a first aid kit, and a bloodborne pathogens kit on the vehicle.

(8) Transportation Staff Qualifications.

Drivers of any vehicle used to transport participants shall have a proper license and endorsement required for the transportation of the number of passengers transported and the vehicle size and weight as required in Tennessee Code Annotated, Title 55, Chapter 50.

(a) All staff (volunteer and employees) responsible for transporting participants shall receive adequate training regarding these laws, as well as any center-specific procedures, which are not in conflict with these laws, prior to first performing transportation duties.

(b) All staff responsible for transportation shall receive annual training provided by the Department and shall be required to retake the initial training if the agency has a transportation violation.

(c) Completion of such training shall be documented in the staffs’/volunteers’ records.

(d) All staff responsible for transportation shall be trained and certified in first aid, CPR, and Basic Life Support.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.15 HEALTH AND SAFETY

(1) Each employee and volunteer at a center who has any knowledge of or suspects abuse, neglect, or exploitation of a participant shall immediately report such information directly to Adult Protective Services. The failure to report may be a basis for the summary suspension, revocation or denial of the center’s license to operate, or any other appropriate legal enforcement action. The failure to report may also constitute a crime.

(2) The adult day services center shall have written emergency procedures and have a posted plan for evacuation of participants, staff, volunteers, and visitors in case of fire or other emergencies such as storms, flooding, and chemical emergencies.

(a) The center shall practice these emergency procedures as required by law and shall maintain documentation of these drills for one (1) year.

(b) Fire drills shall be practiced and documented at least monthly; however, evacuations of the participants are not required during each drill.

(c) The center shall develop a written protocol for when a participant fails to exit timely or respond appropriately to the drill. The protocol shall include notification to family/responsible party.

(3) Telephone numbers for the following shall be posted:

(a) Ambulance service;

(b) Police department;

(c) Fire department;

(d) Poison control center;

(e) Local emergency management agency;

(f) The Department of Human Services, Adult Protective Services Central Intake Hotline; and (g) The Department of Human Services, Child and Adult Care Complaint Hotline.

(4) Smoking and Vaping.

(a) Pursuant to state law, smoking or vaping shall not be permitted anywhere inside the center.

(b) As required by state law, No Smoking signs shall be posted conspicuously within the facility and at each entrance to the facility.

(c) A designated outside smoking area may be provided for participants or employees who smoke or vape provided smoke or vape fumes do not infiltrate protected areas and the designated smoking areas should not be located close to the main entrance and exit to the center.

(5) Access to the Center.

(a) Upon proper identification, the Department shall have the right to enter and inspect any licensed center, or any facility that is suspected of requiring a license, with or without advance notice for the purpose of conducting its licensing responsibilities.

(b) If access to the facility is denied, the Department may seek an immediate ex parte order from the chancery or circuit court of the county where the facility is located upon a showing of probable cause that the facility is a licensed center, or is suspected of requiring a license, and that the Department has been refused entrance to conduct an inspection. The court may direct any law enforcement officer to aid the Department in executing such order and inspection. Refusal to obey such order may be punishable as civil or criminal contempt of court.

(6) The center shall notify the Department of all serious incidents within twenty-four (24) hours of such occurrence. The failure to report may be a basis for the summary suspension, revocation, or denial of the center’s license to operate.

(a) Serious incidents include, but are not limited, to the following:

1. Any injury that requires medical treatment beyond on-site first aid;

2. Reports made to Adult Protective Services that are related to an occurrence at the adult day services facility;

3. Any call to law enforcement or 911 related to incidents that are of a serious or life-threatening nature and not related to routine medical calls;

4. Any incident that may result in staff exclusion from adult care per 1240-07-10- .09;

5. Transportation accidents and traffic citations (such as a driver cited for speeding) that occur when a participant is in the vehicle;

6. Any participant fatality at the center; and 7. All known major incidents that involve assisting participants in taking medications.

History

• Authority: T.C.A. §§ 4-5-202; 71-1-105(a)(12); 71-2-401, et seq.; and 71-2-412.
• Administrative History: Original rule filed December 14, 1999; effective February 27, 2000. Repeal and new rule filed February 23, 2018; effective May 24, 2018. Amendments filed October 25, 2022; effective January 23, 2023. Amendments filed June 24, 2026; effective September 22, 2026.

Tenn. Comp. R. & Regs. 1240-07-10-.16 LICENSING VIOLATIONS/DUE PROCESS

(1) Licensing Procedures: Administrative and Judicial Actions Involving the License.

The procedures for licensing, administrative and judicial actions, probation, civil penalties, suspension, denial and revocation and procedures for appeal are contained in this chapter, T.C.A. §§ 71-2-401 et seq., and the Uniform Administrative Procedures Act, T.C.A. §§ 4-5- 301 et seq.

(2) Notice of Violation of Standards and Corrective Action.

(a) If the Department finds the adult day services center to be in violation of a state law or

regulation, the Department shall give notice to the adult day services center of the law or regulation which has allegedly been violated as well as the factual basis underlying the alleged violation.

(b) Upon receipt of such a notice, the adult day services center shall submit a Plan of Corrective Action within ten (10) business days in the form and manner directed by the Department, detailing the methods and timeframes for obtaining and maintaining compliance with all laws and regulations.

(c) If the Department determines, as a result of its inspections or investigations or those of other local, state or federal agencies or officials, or through any other means, that a plan is necessary to insure the safety of the participants in the care of the facility the Department may require the facility to implement a safety plan.

(3) Probation and Appeal.

(a) If the Department finds that an adult day services center has violated a state law or

regulation, the Department may, in its discretion, place the center on probation for thirty (30) to sixty (60) days.

(b) Prior to placing the center on probation, the Department shall provide written notice of the probation which includes the information required by subsection (2)(a) above, and which additionally details the steps for appealing the probation as set forth in subparagraph (c) below.

(c) The center may request an informal review of the probation action either verbally or in writing to the Department’s licensing staff that imposed the probation within two (2) business days of receipt of the notice. The center may submit any written or oral statements as argument to the Departmental staff person within five (5) business days of the imposition of the probation. The Departmental staff person shall render a decision in writing upholding, modifying, or uplifting the probationary status within ten (10) business days of the imposition of the probation.

If the Departmental staff person does not lift the probation, the center may also appeal such action in writing to the Commissioner within five (5) business days of the receipt of the Departmental staff person’s decision. If timely appealed, the Department shall conduct an administrative hearing in accordance with the Uniform Administrative Procedures Act within fifteen (15) business days of receipt of the appeal and will render a decision within seven (7) business days following the conclusion of the hearing.

(d) If a center is placed on probation by the Department, the center shall post a copy of this notice in a conspicuous place, in the form and manner directed by the Department.

The center shall notify in writing each participant or his/her responsible party regarding the center’s status and the basis for the probation.

(e) The decision to place a center on probation shall be discretionary with the Department and shall not be a prerequisite to any other licensing action to summarily suspend, to revoke, or to deny a license.

(f) Failure to correct a violation which caused the imposition of probation by the Department may lead to suspension, denial or revocation of the center’s license.

(4) License Denial/Revocation and Appeal.

(a) The Department may deny an application for a temporary license, initial annual license or for renewal of an existing license for failure to comply with governing laws or regulations. The Department shall provide written notice of the denial which shall include the factual and legal basis for the denial.

(b) The Department may revoke a license during its term based upon a determination that the center has failed to correct a noted violation of a governing law or regulation pursuant to paragraph (1) above. The Department shall immediately notify the licensee in writing of the Department’s intent to revoke the license within sixty (60) days and of the legal and factual basis for the revocation.

(c) Appeal Procedure.

1. A denial of a license application can be appealed by submitting a written request for a hearing to the Commissioner of the Department within ten (10) days of the mailing date of the notice. If the appeal is requested timely, a hearing shall be scheduled by the Department within sixty (60) days of receipt of the request. The hearing on the appeal shall be conducted pursuant to the provisions of the Uniform Administrative Procedures Act, T.C.A. §§ 4-5-301 et seq. During the pendency of the appeal, any existing license shall continue in effect, unless suspended/revoked, until the resolution of the administrative appeal.

2. Revocation of a license can be appealed by submitting a written request for a hearing to the Commissioner of the Department within ten (10) days of the mailing date of the notice. If the appeal is requested timely, a hearing shall be scheduled by the Department within sixty (60) days of receipt of the request. The hearing on the appeal shall be conducted pursuant to the provisions of the Uniform Administrative Procedures Act, T.C.A. §§ 4-5-301 et seq. During the pendency of the appeal, any existing license shall continue in effect, until the resolution of the administrative appeal.

(d) The Department shall continue to have the right of inspection of the adult day services center during the pendency of the revocation proceedings and may add additional violations to be considered by the hearing official by amendment of its original notice which shall be filed with the hearing official and sent to the licensee by certified mail, return receipt requested.

(5) Summary Suspension and Appeal.

(a) A license may be summarily suspended by the Department pursuant to the provisions of T.C.A. § 4-5-320 if the Commissioner, or the Commissioner’s designee, by issuing an order which finds that the public health, safety or welfare imperatively requires emergency action. The order shall be effective upon receipt by the licensee or the person having responsibility or reasonably believed to have responsibility over the operations of the adult day services center, and the center shall cease operations immediately or as otherwise directed by the order. The summary suspension order may be personally delivered immediately by a duly authorized representative of the Department.

(b) The order shall notify the licensee of the legal and factual basis for the summary suspension; shall state what action(s) must be taken by the licensee to immediately effect compliance with the licensing standards; the time, date and place of the hearing provided for in subparagraph (c) to contest the summary suspension order; and of the right to be represented by legal counsel at the licensee’s expense.

(c) The order shall be reviewed within five (5) business days of the date of the suspension order, excluding Saturdays, Sundays and legal holidays, by a hearing officer appointed by the Commissioner. The hearing shall be conducted and the order entered as follows:

1. The hearing shall be informal and shall not be conducted pursuant to the Uniform Administrative Procedures Act, T.C.A. §§ 4-5-301 et seq. The hearing shall be conducted by a hearing officer from the Department’s Appeals and Hearings Division, and the sole issue before the hearing officer shall be whether the public safety, health or welfare imperatively require emergency action by the Department due to the failure of the center to comply with any law or regulation governing the center’s operations.

2. The Department shall be required to present evidence to the hearing officer in support of the summary suspension order. The licensee shall then have an opportunity for response.

3. The hearing officer shall make a written determination of whether probable cause exists for continuance of the suspension order based upon the standard set forth in subparagraph (5)(a).

4. The order containing the hearing officer’s findings and ruling shall be issued within five (5) business days of the date of the hearing and shall be served upon the licensee and upon legal counsel for the licensee by certified mail, return receipt requested or by personal delivery.

(d) A suspension order shall be lifted by the Department or written notice by the Department of intent to revoke or deny the license, shall be served upon the licensee, within thirty (30) days of entry of the suspension order.

History

• Authority: T.C.A. §§ 4-5-201, et seq.; 4-5-301, et seq.; 4-5-320; and 71-2-401, et seq.
• Administrative History: Original rule filed February 23, 2018; effective May 24, 2018.

1240-08 Rehabilitation Services Division

Chapter 1240-08-01 Repealed

Tenn. Comp. R. & Regs. 1240-08-01-.01 REPEALED

History

• Authority: T.C.A. § 62-7-112.
• Administrative History: Original chapter moved to 1240-08-09 and new chapter 1240-08-01 filed March 22, 1985; effective June 14, 1985. Repeal filed February 29, 2024; effective May 29, 2024.

Chapter 1240-08-02 General Rules

Tenn. Comp. R. & Regs. 1240-08-02-.01 PURPOSE

The Department of Human Services, Division of Rehabilitation Services is the designated State unit that is primarily concerned with vocational and other rehabilitation of individuals with physical, cognitive, mental, and sensory disabilities. The Division of Rehabilitation Services (the Division or DRS) is responsible for the Vocational Rehabilitation (VR) Program which includes the determination of eligibility, the determination of the nature and scope of VR services, and the provision of services for individuals consistent with their strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice so that they may prepare for, secure, retain, advance in, or regain employment.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 71-1-104, and 71-1-105(a)(12); 34 C.F.R. Part 361; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-02-.02 DEFINITIONS

The words and terms as used herein have the following meanings:

(1) “Act” means the Rehabilitation Act of 1973, as amended by the Workforce Innovation and Opportunity Act of 2014, 29 U.S.C. §§ 720 et seq. Words and terms defined in federal law and regulations are adopted by reference into these rules.

(2) “Applicant” means an individual who applies to the VR Program for vocational rehabilitation (VR) services.

(3) “Appropriate Modes of Communication” means specialized aids and supports that enable an individual with a disability to comprehend and respond to information that is being communicated. Appropriate modes of communication include, but are not limited to, the use of interpreters, open and closed-captioned videos, specialized telecommunications services and audio recordings, Braille and large print materials, foreign language interpreters, materials in electronic formats, augmentative communication devices, graphic presentations, and simple language materials.

(4) “Blind” means a person who has been determined to have not more than 20/200 vision acuity in the better eye with best correction, or an equally disabling loss of the visual field as evidenced by a limitation to the field of vision in the better eye to such a degree that its widest diameter subtends an angle of no greater than 20 degrees.

(5) “Business Licenses” are defined as any license, permit, or other written authority required by a state, city, or other governmental entity in order to enter into an occupation or operate a business.

(6) “CART (Communication Access Realtime Translation)” is defined as the instant translation of the spoken word into English text using real-time software to display text on a television, video screen, or other visual display.

(7) “Client Assistance Program (CAP)” means a program available to help an individual understand the services and benefits available from VR services; request and pursue an appeal of a decision made by VR that affects the provision of VR services; and understand his or her rights and responsibilities under the law. The CAP is provided by Disability Rights Tennessee. Contact the CAP by mail at 2 International Plaza, Suite 825, Nashville, TN 37217; by phone (1-800) 342-1660 or TTY (1-888) 852-2852; or by email GetHelp@disabilityrightstn.org.

(8) “Combined/Unified State Plan” means the plan for VR services submitted by the Division to the Rehabilitation Services Administration in compliance with Title I, Rehabilitation Act of 1973, as amended by the Workforce Innovation and Opportunity Act of 2014.

(9) “Commissioner” means the executive head of the Department of Human Services.

(10) “Competitive Integrated Employment” means work that:

(a) Is performed on a full-time or part-time basis (including self-employment) and for which an individual is compensated at a rate that:

1. Is not less than the higher of the rate specified in section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. § 206 (a)(1)) or the rate required under the applicable State or local minimum wage law for the place of employment;

2. Is not less than the customary rate paid by the employer for the same or similar work performed by other employees who are not individuals with disabilities and who are similarly situated in similar occupations by the same employer and who have similar training, experience, and skills; and 3. In the case of an individual who is self-employed, yields an income that is comparable to the income received by other individuals who are not individuals with disabilities and who are self-employed in similar occupations or on similar tasks and who have similar training, experience, and skills; and 4. Is eligible for the level of benefits provided to other employees; and (b) Is at a location:

3. Typically found in the community; and 2. Where the employee with a disability interacts for the purpose of performing the duties of the position with the employees with the particular work unit and the entire work site, and, as appropriate to the work performed, other persons (e.g. customers and vendors), who are not individuals with disabilities (not including supervisory personnel or individuals who are providing services to such employee) to the same extent that employees who are not individuals with disabilities and who are in comparable positions interacts with these persons; and (c) Presents, as appropriate, opportunities for advancement that are similar to those for other employees who are not individuals with disabilities and who have similar positions.

(11) “Contributing Services” means VR services that help or cause to bring about the rehabilitation of an individual’s functional limitations in order to achieve an employment objective but does not include VR support services.

(12) “Counselor” means an employee of the Division who is designated in the job description as a VR Counselor.

(13) “Customer” or “Individual” means a person who has been referred or has applied for VR services or has been determined eligible for and receives services from VR.

(14) “Customized Employment” means competitive integrated employment, for an individual with a significant disability, that is:

(a) Based on an individualized determination of the unique strengths, needs, and interests of the individual with a significant disability;

(b) Designed to meet the specific abilities of the individual with a significant disability and the business needs of the employer; and (c) Carried out through flexible strategies, such as:

1. Job exploration by the individual; and 2. Working with an employer to facilitate placement, including:

(i) Customizing a job description based on current employer needs or on previously unidentified and unmet employer needs;

(ii) Developing a set of job duties, a work schedule and job arrangement, and specifics of supervision (including performance evaluation and review), and determining a job location;

(iii) Using a professional representative chosen by the individual, or if elected self-representation, to work with an employer to facilitate placement; and (iv) Providing services and supports at the job location.

(15) “Department” means the Tennessee Department of Human Services.

(16) “Designated State Unit” means the Division of Rehabilitation Services, which is primarily concerned with vocational and other rehabilitation of individuals with disabilities and is responsible for the administration of the State’s VR Program.

(17) “Disability” means any physical, cognitive, mental, or sensory impairment that limits an individual’s work activities and interaction with the world around them.

(18) “Disability Priority” means the order to be followed in determining eligible individuals to be provided VR services when an order of selection has been implemented.

(19) “Division” or “DRS” means the Division of Rehabilitation Services.

(20) “Due Process” means a course of informal or legal proceedings according to established rules and regulations for the enforcement and protection of customer rights.

(21) “Eligible Individual” means a person who meets the basic requirements for eligibility and whose disability priority has been determined to be in an open priority category.

(22) “Eligible Student” means a student that meets the definition of a Student with a Disability and is eligible for VR services under an Individualized Plan for Employment (IPE).

(23) “Employment Outcome” means entering or retaining full-time or, if appropriate, part-time competitive employment in an integrated labor market to the greatest extent practicable; that meets the definition for competitive integrated employment; including supported employment, customized employment, and self-employment; or any other type of employment that is consistent with an individual’s strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice.

(24) “Fair Hearing” means a contested case proceeding before an impartial hearing officer designated by the Commissioner of the Department of Human Services who shall afford the individual and the Division, or their authorized representatives, the opportunity to present their case, with or without witnesses, to determine whether action or inaction by the county, area, regional, district, or state office is erroneous and should be corrected. Each party has an opportunity to disclose all relevant facts and issues, respond to and present evidence, conduct cross-examination, and submit rebuttal evidence as permitted under the Uniform Administrative Procedures Act, T.C.A. §§ 4-5-301 et seq. Hearings may be conducted by telephone, television, or other electronic means, and shall be open to public observation unless otherwise provided by state or federal law. Hearings are conducted in accordance with the Uniform Administrative Procedures Act codified at T.C.A. §§ 4-5-101 et seq. An aggrieved party may obtain a review of any final order by appealing to the chancery court in Davidson County, the county of the official residence of the commissioner, or the county where one or more of the petitioners resides, in accordance with T.C.A. § 4-5-322. If dissatisfied with the chancery court’s decision, the individual may appeal further to the court of appeals of Tennessee, in accordance with T.C.A. § 4-5-323.

(25) “Full- or Part-Time Employment” means the number of hours considered by an employer to be full-time or part-time.

(26) “Impartial Hearing Officer” means an individual who:

(a) Is not an employee of a public agency (other than an administrative law judge, hearing examiner, or employee of an institution of higher education);

(b) Is not a member of the State Rehabilitation Council for the designated State unit;

(c) Has not been involved previously in the vocational rehabilitation of the applicant or recipient of services;

(d) Has knowledge of the delivery of VR services, the VR services State Plan, and the Federal and State regulations governing the provision of services;

(e) Has received training with respect to the performance of official duties; and (f) Has no personal, professional, or financial interest that could affect the objectivity of the individual.

(27) “Individual with a Significant Disability” means an individual:

(a) Who has a severe physical or mental impairment that seriously limits one or more functional capacities (such as mobility, communication, self-care, self-direction, interpersonal skills, work tolerance, or work skills) in terms of an employment outcome;

(b) Whose vocational rehabilitation can be expected to require multiple VR services over an extended period of time; and (c) Who has one or more physical or mental disabilities resulting from amputation, arthritis, autism, blindness, burn injury, cancer, cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, hemiplegia, hemophilia, respiratory or pulmonary dysfunction, mental illness, multiple sclerosis, muscular dystrophy, musculo-skeletal disorders, neurological disorders (including stroke and epilepsy), spinal cord conditions (including paraplegia and quadriplegia), sickle cell anemia, intellectual disability, specific learning disability, end-stage renal disease, or another disability or combination of disabilities determined on the basis of an assessment for determining eligibility and vocational rehabilitation needs to cause comparable substantial functional limitation.

(28) “Informed Choice” means an ongoing counseling and guidance and person-centered practice that ensures an individual or, as appropriate, the individual’s representative has a range of options from which to make decisions and has the skills or, to the extent possible, the opportunity to develop such skills or support for evaluating options and for making decisions that reflect the individual’s strengths, resources, priorities, concerns, abilities, capabilities, and interests, including the consequences of choosing various options, in a manner that is understandable to the individual.

(29) “Individual’s Representative” means any representative chosen by an applicant or eligible individual, as appropriate, including a parent, guardian, other family member, or advocate, unless a representative has been appointed by a court to represent the individual, in which case the court-appointed representative is the individual’s representative.

(30) “Legal Representative” means a court-appointed representative or parent of an individual under 18 years of age.

(31) “Maximum Effort” means a specific method or action to achieve a particular benefit to pay for specified VR services. It may consist of a set policy or process which may be applied in appropriate cases. For example, the Division could have a cooperative agreement with State university officials for financial assistance officers to interview and evaluate the financial need of all VR sponsored students.

(32) “Most Significantly Disabled” means an individual with a significant disability who meets VR’s criteria for an individual with a most significant disability.

(33) “Non-significantly Disabled” means an individual who does not have a significant disability.

(34) “Potentially Eligible” means a student that meets the definition of a Student with Disability and is receiving Pre-employment Transition Services.

(35) “Qualified Personnel” means personnel possessing those specific qualifications and/or credentials for persons providing a function for which such qualifications are required.

(36) “Student with a Disability” means an individual with a disability who is no younger than 14 and no older than 22 and is eligible for, and receiving, special education or related services under

Part B of the Individuals with Disabilities Education Act (IDEA) or is a student who is an individual with a disability for purposes of section 504 of the Rehabilitation Act.

(37) “Unsupervised Access” means the right or ability of a person to be unattended with funds, personal property, or personal identification information of a VR customer or program participant with no other adults present and includes those whose employment duties include direct supervisory responsibility for individuals with such access.

(38) “Unsupervised Contact” means the right or ability of a person to meet with or be unattended with a VR customer or program participant one-on-one with no other adults present and includes those whose employment duties include direct supervisory responsibility for such individuals.

(39) “Vocational Rehabilitation Counselor” or “VR Counselor” means qualified staff that assist individuals with disabilities to overcome barriers to employment and meet their employment goals by preparing for entry or re-entry into competitive integrated employment.

(40) “Vocational Rehabilitation Director” or “VR Director” means the individual who has been appointed in accordance with the hiring directives of the State’s Department of Human Resources as the head of the VR Program.

(41) “Vocational Rehabilitation (VR) Program” or “VR Program” or “VR” means the publicly funded program authorized by the Rehabilitation Act of 1973, as amended by the Workforce Innovation and Opportunity Act of 2014, 29 U.S.C. §§ 720 et seq., including the Tennessee Rehabilitation Center at Smyrna (TRCS), the VR Community Services Unit (CSU), and those funded wholly or in part through this authorization to provide employment related services consistent with the abilities, skills and interest of individuals with disabilities in a competitive, integrated setting.

(42) “Youth with a Disability” means an individual with a disability who is no younger than 14 and no older than 24. The individual may or may not be eligible for an educational program under IDEA.

History

• Authority: T.C.A. §§ 4-3-1208, 4-5-202, 4-5-301, et seq., 49-11-601, et seq., 71-1-104, and 71-1- 105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. Part 361; 34 C.F.R. §§ 370.1, et seq.; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendment filed November 10, 2009; effective April 30, 2010. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed December 18, 2019; effective March 17, 2020. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-02-.03 REPEALED

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 71-1-104, and 71-1-105(12); 29 U.S.C. §§ 720, et seq.; and 34 C.F.R. §§ 361.5 and 361.48.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-08-02-.04 PROCEDURES

(1) Procedures are developed by VR in accordance with the Rehabilitation Act of 1973, as amended by the Workforce Innovation and Opportunity Act, and federal regulations.

(2) Procedures define the requirements for service delivery and associated case management practices including allowable fees and specific requirements for authorizing services.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; and 34 C.F.R. Part 361.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-02-.05 LEGAL BASIS

The Department of Human Services, Division of Rehabilitation Services has designated the State’s VR Program as the sole State agency to administer the VR Services portion of the Unified or Combined State Plan and as such is authorized to submit the VR Services portion of the combined/unified plan as a condition for receipt of federal funds under Title I and Title VI of the Rehabilitation Act of 1973, as amended by the Workforce Innovation and Opportunity Act, and agrees to administer the VR Program in accordance with the Combined/Unified State Plan, the Act, and all applicable regulations, policies, and procedures established by the Secretary.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); 29 U.S.C. § § 720, et seq.; 34 C.F.R. § 361.13; and Executive Order No. 43 (1983).
• Administrative History: New rule filed July 12, 2002; effective September 25, 2002. (Formerly 1240-08-02-.04). Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Chapter 1240-08-03 Administration

Tenn. Comp. R. & Regs. 1240-08-03-.01 STATE AND LOCAL ORGANIZATION AND ADMINISTRATION

(1) It is the responsibility of the Division’s VR Program to provide services necessary for the rehabilitation of individuals with disabilities of Tennessee for the purpose of achieving competitive integrated employment.

(2) The authority and responsibility for administration of the VR Program affecting eligibility for the nature and scope of VR services and the provision of these services is vested in the head of the Division and the VR Program. This responsibility may not be delegated to any other entity or individual.

(3) Supervisory staff are assigned to supervise the work of VR Counselors, Pre-employment Transition Specialists, TRCS and CSU staff, and other appropriate staff.

(4) Qualified staff in accordance with VR requirements have assigned responsibilities for determining eligibility for and the provision of services in accordance with VR Program policies and procedures.

(5) Any applicant or individual who is eligible for VR services may contact any VR office or employee for assistance and may also seek assistance from the Client Assistance Program (CAP) established under 34 C.F.R. §§ 370.1 et seq.

(6) Services of the Division are provided on a non-discriminatory basis without regard to disability, race, color, sex, religion, creed, or national origin in compliance with Title VI of the Civil Rights Act of 1964 and Title V of the Vocational Rehabilitation Act of 1973, as amended.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); 34 C.F.R. Part 361; 34 C.F.R. § 370.1, et seq.; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-03-.02 REPEALED

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; and 34 C.F.R. § 361.54.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Repeal filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-03-.03 STAFF DEVELOPMENT AND TRAINING

(1) The purpose of staff development, for all staff positions, is to ensure the availability of qualified rehabilitation personnel. The Division will, to the degree possible:

(a) Provide systematic training programs to improve staff effectiveness and qualifications;

(b) Orient new staff; and (c) Provide appropriate training to all classes of personnel consistent with their needs.

(2) Training plans and curricula are developed by the Office of Learning and Professional Development within the Department with consultation from:

(a) The DRS State Office staff;

(b) The State Rehabilitation Council;

(c) Regional supervisory staff; and (d) Individual employees.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(12); 29 U.S.C. §§ 720, et seq.; and 34 C.F.R. §§ 361.16 and 361.18.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-08-03-.04 REPEALED

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(12); 29 U.S.C. §§ 720, et seq.; and 34 C.F.R. §§ 361 et seq.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-03-.05 BACKGROUND CHECKS FOR VOCATIONAL REHABILITATION EMPLOYEES,

CONTRACTORS, AND INTERNS.

(1) Background Check Requirements for Vocational Rehabilitation Employees and Interns.

(a) In accordance with 34 U.S.C. § 40102(a)(1) and T.C.A. § 4-3-1208, all current and prospective Vocational Rehabilitation (VR) employees and interns with unsupervised contact with persons served by VR, unsupervised access to the funds, personal property, or personal identification information of persons served by VR, and those whose duties include direct responsibility for such individuals shall be subject to background checks for the purpose of determining whether the individual has a history of any criminal activity, abuse, neglect, or exploitation that could pose a risk to the safety and well-being of persons served by VR.

(b) All current and prospective VR employees and interns with unsupervised contact with persons served by VR, unsupervised access to the funds, personal property, or personal identification information of persons served by VR, and those whose duties include direct responsibility for such individuals must:

1. Agree to the release and disclosure to the Department of the background information and records from any reputable source, including federal, state and local governments, the Tennessee Bureau of Investigation (TBI), and any private investigation company licensed by the State of Tennessee; and 2. Supply a fingerprint sample and submit to a state criminal history background check and investigation to be conducted by the TBI and a national criminal

history background check and investigation to be conducted by the Federal Bureau of Investigation (FBI).

(c) The cost of any background check conducted pursuant to this policy shall be paid by the Department.

(d) If an employee or prospective employee does not consent to the required background check and investigation, he or she may be deemed ineligible for employment with the Department.

(2) Review of Findings from Criminal Background Checks.

(a) All background investigation results from the TBI shall be sent to the Department’s background check unit and reviewed to determine whether the current or prospective employee, intern, or contract worker has a history of criminal convictions that could pose a safety risk for individuals receiving VR services.

(b) An individual may not be eligible for a position whose duties include unsupervised contact with persons served by VR, unsupervised access to the funds, personal property, or personal identification information of persons served by VR, and those whose duties include direct responsibility for such individuals if a background investigation finds any conviction, including but not limited to the following offenses (including convictions for equivalent offenses in other states or jurisdictions):

1. The physical, sexual or emotional abuse or neglect of a child or vulnerable person;

2. A crime of violence against a child or any person;

3. Any offense that presents a threat to the health, safety or welfare of children or vulnerable persons; or 4. A felony conviction involving a crime of dishonesty or fraud within the past ten (10) years.

(c) A criminal background check shall be conducted on all prospective employees and interns with unsupervised contact with persons served by VR, unsupervised access to the funds, personal property, or personal identification information of persons served by VR, and those whose duties include direct responsibility for such individuals prior to the commencement of work. In no event shall a person have unsupervised contact with an individual served by VR until the criminal background check has been completed.

1. After the Department offers a Conditional Offer of Employment, the applicant or transferring employee must submit to a fingerprint background check at a Department-approved site.

2. The background check will be completed prior to hire and results maintained in the Department’s official background check system. A copy of the Findings/No Findings letter will be placed in the personnel file.

(3) Current Vocational Rehabilitation Employees and Interns.

(a) Current VR employees in positions identified as having duties that include unsupervised contact with persons served by VR, unsupervised access to the funds, personal property, or personal identification information of persons served by VR, and those whose duties include direct responsibility for such individuals must comply with the investigation requirement as directed by their supervisor as a basis for continued employment in the position.

1. Employees with convictions as provided in Rule 1240-08-03-.05(2)(b) above may be deemed ineligible for employment.

2. Employees who refuse to complete the fingerprint background checks or do not get fingerprinted during the allotted time may be deemed ineligible for employment.

(b) Current VR employees and interns whose current position does not provide an opportunity for unsupervised contact with persons served by VR, unsupervised access to the funds, personal property, or personal identification information of persons served by VR, and those whose duties do not currently include direct responsibility for such individuals must have a criminal background check conducted before a change of responsibilities or positions to those that include such contact, access, or responsibility for such individuals.

(4) Alleged Errors in Background Check.

(a) The Department does not provide the applicant, employee, or intern a copy of the FBI criminal history record. He or she may obtain a copy of the record by submitting fingerprints and a fee to the FBI. Information regarding this process may be obtained at https://www.fbi.gov/services/cjis/identity-history-summary-checks. If he or she believes the FBI’s findings contain inaccurate or incomplete information, they may contact the FBI to challenge the findings.

(5) Vocational Rehabilitation Employees and Interns Reporting Requirements.

(a) Any VR employee or intern who is cited, arrested, or convicted of a crime as provided in Rule 1240-08-03-.05(2)(b) shall report this information to the investigative unit within forty-eight (48) hours of the event. The Department’s background check unit will share this information with the employee’s or intern’s direct supervisor if the event equates to a disqualifying offense.

(b) Failure of a VR employee or intern to report a citation, arrest, or conviction as provided in Rule 1240-08-03-.05(2)(b) may result in disciplinary action, up to and including termination.

(c) It is the responsibility of the direct supervisor or manager to report information obtained under Subparagraph (a) to the Department’s Director of Human Resources and to the Department’s Division of Rehabilitation Services’ Director of Operations.

(d) After obtaining all available information, including any reports or other documentation, the supervisor, in consultation with the Director of Human Resources or designee and the Department’s Division of Rehabilitation Services’ Director of Operations, may recommend any disciplinary action deemed appropriate under the circumstances for a VR employee or intern, up to and including termination.

(6) Contract Vocational Rehabilitation Workers.

(a) In accordance with 34 U.S.C. § 40102(a)(1) and T.C.A. § 4-3-1208, all VR contractors and any subcontractors, employees, or interns of those contractors whose duties will include unsupervised contact with persons served by VR, unsupervised access to the funds, personal property, or personal identification information of persons served by VR, and those whose duties will include direct responsibility for such individuals shall be subject to background checks for the purpose of determining whether the individual has a history for any criminal activity, abuse, neglect, or exploitation that could pose a risk to the safety and well-being of individuals served by VR.

(b) All VR contractors and any subcontractors, employees, or interns of those contractors whose duties will include unsupervised contact with persons served by VR, unsupervised access to the funds, personal property, or personal identification information of persons served by VR, and those whose duties will include direct responsibility for such individuals must agree to the release and disclosure to the contracting agency of their background information and records from any reputable source, including federal, state, and local governments, the Tennessee Bureau of Investigation (TBI), and any private investigation company licensed by the State of Tennessee.

(c) The cost of any background check conducted pursuant to this policy shall be paid by the contractor, unless otherwise specified by contract.

(d) The contractor shall review all background check results so that individuals in positions whose duties will include unsupervised contact with persons served by VR, unsupervised access to the funds, personal property, or personal identification information of persons served by VR, and those whose duties will include direct responsibility for such individuals have passed the background check requirements and have no convictions as provided in Rule 1240-08-03-.05(2)(b).

(e) The background check for prospective employees or interns shall be completed before entering into employment with the VR contractor or subcontractor. A copy of the background check findings shall be placed in the personnel file of the contracting agency’s employee and, upon request, a copy of the letter shall be sent to the Department.

(f) The background check shall be completed for current employees or interns as a condition for maintaining employment with the VR contractor or subcontractor. A copy of the background check findings shall be placed in the personnel file of the contracting agency’s employee and, upon request, a copy of the letter shall be sent to the Department.

(g) The provisions of this Paragraph do not apply to contracts entered into prior to the effective date of this Rule unless previously provided for by contract.

History

• Authority: T.C.A. § 4-3-1208 and 34 U.S.C. § 40102(a)(1).
• Administrative History: Original rule filed December 18, 2019; effective March 17, 2020.

Chapter 1240-08-04 Services to Individuals

Tenn. Comp. R. & Regs. 1240-08-04-.01 REFERRAL AND APPLICATION FOR VR SERVICES

(1) The VR Program will receive referrals of individuals from any source and by any means, including individuals who believe they may be eligible for VR services. The referral source must provide appropriate contact information.

(2) An individual is considered to have submitted an application when the individual or, as appropriate, the individual’s representative:

(a) Has completed an agency application form;

(b) Has completed a common intake application form in a one-stop center requesting VR services; or (c) Has otherwise requested services from VR;

(d) Has provided to VR information necessary to initiate an assessment to determine eligibility and priority for services; and (e) Is available in the State to complete the application process.

(3) VR must make application information widely available throughout the State, including onestop centers under section 121 of the Workforce Innovation and Opportunity Act.

(4) An individual’s residence may be in an adjoining state. If the individual is receiving services from the VR program in the adjoining state, the VR Counselor must contact the individual’s VR Counselor in that state to coordinate services to prevent duplication of services.

(5) Individuals seeking VR services who are minors (under 18 years of age) and who are legally emancipated from their parents or guardians must provide appropriate court documentation.

(6) Individuals applying for services must be eligible to work in the United States. An applicant who cannot be identified as a natural citizen must provide an unexpired credential of eligibility to work on the United States. Credentials may include Permanent Resident Card (I-551), U.S. Citizen ID Card (I-197), Employment Authorization Document that contains a photograph of the individual (I-766), or Identification Card for Use of Resident Citizen in the United States (I-179). An I-9 work visa may be determined acceptable when warranted for the type of employment objective.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.30 and 361.41; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal and new rules filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-04-.02 and for IPE development in accordance with Rule 1240-08-04-.03.

Diagnostic and assessment services are not provided under an IPE. Diagnostic and assessment services may be needed to diagnose physical, psychological, cognitive, neuropsychological, and sensory impairments, which includes disability-related examinations and testing when existing records do not adequately describe an individual’s current condition and to assess rehabilitation need.

(a) Diagnostic services must be provided by appropriately credentialed professionals and may not be used as a means for identifying impairments that the individual does not report.

(b) Assessment services to determine rehabilitation need may be provided in accordance with VR requirements by a registered Community Rehabilitation Provider (CRP).

(c) Financial assistance with transportation, temporary lodging, and meals necessary to participate in a diagnostic service may be provided, when justified, and is not subject to financial need.

(15) Contributing VR services and service providers are based on individual need for achieving competitive integrated employment. Contributing VR services may be provided for physical and mental restoration, training, employment, supported and customized employment, selfemployment, rehabilitation technology, students with disabilities, and other services developed by VR that have been determined necessary for an individual to achieve an employment outcome.

(a) Physical and mental restoration may be necessary to eliminate, reduce, or modify the effects of stable or slowly progressive physical or mental or emotional disorders so that an individual can return to previous work or achieve another employment outcome and includes corrective surgery or therapeutic treatment, nursing care, hospitalization, drugs and supplies, prosthetic and orthotic devices, eyeglasses and visual services, physical, occupational, and speech or hearing therapy, other medical or medically related services, and mental health services which includes therapy, medication, and treatment for substance use by voluntary referral to treatment services provided at no cost to VR.

1. Physical and mental restoration services do not include services to prolong life, prevent premature death, alleviate pain, or reduce or prevent disease unless these services may be expected to lead to or contribute to an employment outcome.

2. VR is not responsible for the treatment of conditions that are unrelated to the disability and the resulting impediment to employment.

3. Physical and mental restoration services must be completed within a reasonable period of time and will not be provided for an extended period of time.

4. Individuals who are able to return to previous work following physical and mental restoration services will not be provided post-secondary training for the purpose of changing jobs.

5. VR may purchase prescribed medications recommended by the treating physician.

6. Mental restoration services may include treatment for substance use by treatment programs licensed by the State. Treatment services must be paid through comparable services and benefits. VR will not pay for substance use treatment.

7. Some contributing services for physical or mental restoration services must be prescribed by an appropriately credentialed professional.

(b) Training includes vocational and other training services, including personal and vocational adjustment training, advanced training in, but not limited to, a field of science, technology, engineering, mathematics (including computer science), medicine, law, or business; except that no training or training services in an institution of higher education (universities, colleges, community or junior colleges, vocational schools, technical institutes, or hospital schools of nursing or any other post-secondary education institution) may be paid for with VR funds unless maximum efforts have been made by VR and the individual to secure grant assistance in whole or in part from other sources to pay for that training.

1. Personal adjustment training is disability-related and is provided to train or adapt an individual in the use of personal and adaptive equipment and techniques for the purpose of participating in VR services and to secure and maintain employment.

2. Vocational adjustment training is provided to develop and maintain an individual’s capacities necessary for achievement of an employment outcome.

3. A post-secondary training institution is approved for VR funding if the institution is:

(i) A state-operated vocational school, two-year community college, or fouryear college or university located in any of the fifty (50) U.S. states;

(ii) Approved by the U.S. Department of Education to disburse Federal Aid (Pell grant, FSEOG, etc.);

(iii) Accredited by an accrediting association recognized by the Federal Department of Education;

(iv) Registered with the State’s Higher Education Commission;

(v) Licensed by the appropriate State licensing agency; or (vi) Approved by VR.

4. Post-secondary, graduate, and post-graduate training services may be provided based on the individual’s aptitudes, abilities, capabilities, interests and work experience and the entry education level for the approved specific employment outcome. The continuing provision of post-secondary, graduate, and postgraduate training services must be based on a review of the individual’s progress and participation in services.

5. VR may not sponsor individuals in undergraduate, graduate, or post-graduate training who are in default of a Title IV school loan or who have failed to repay an overpayment of a Pell grant.

6. VR may not sponsor training services for individuals whose disabling conditions may be or have been corrected through physical or mental restoration services and who are able to return to previous or similar employment using existing or transferable skills.

7. VR will not sponsor any individual for classes that are not included in the curriculum approved by the school that is required for the degree that is necessary to achieve the specific employment outcome.

8. VR probation or suspension of post-secondary, graduate, and post-graduate training services may occur when an individual does not meet certain requirements for VR funding. These requirements include maintaining a grade point average (GPA) established by the school and for the course of study, whichever is greater, or maintain satisfactory academic progress necessary to remain in good standing with the school or complying with VR requirements for attendance, completion of classes as required, and providing grade reports and class schedules.

9. The individual must provide documentation for the purchase of any trainingrelated items required for a course.

(c) Employment includes job-related services, including job search and placement assistance, job retention services, and follow-up services and follow-along services after the completion of employment services. Employment services must result in fullor part-time competitive integrated employment (CIE) at a location typically found in the community.

1. With the exception of job retention services, employment services may be provided by VR staff, in accordance with VR requirements by a registered CRP, or other qualified employment service.

2. Part-time placements of less than fifteen (15) hours per week must be approved by VR for meeting all CIE requirements.

3. VR will determine whether a job position is typically found in the community and whether the job position is integrated for the purpose of performing the job duties.

(d) Job retention services comprise a program of VR services in order for an individual to maintain current employment or return to employment from extended leave with the same employer. Services may include workplace adjustments, accommodations, assistive technology, or orientation and mobility training necessary to perform the essential job duties.

1. Job retention services may only be provided for eligible individuals with a disability that creates permanent functional limitations and who require such services.

2. Job retention services are not subject to financial need and do not require a determination of comparable services and benefits.

3. An assessment to determine the nature and scope of job retention services must utilize the least intrusive method and be in accordance with customer choice.

4. Job retention services may not be provided for physical, mental, or sensory restoration requiring surgery and/or hospitalization or counseling services for the

purpose of eliminating, reducing, or modifying the effects of a stable or slowly progressive disabling condition; to replace aging assistive technology that continues to work for the intended purpose; to assist an individual with being more independent outside of work or at the individual’s place of work where there is no effect on job duties; to assist an individual with getting to work or back home; or to assist an individual with changing jobs.

(e) Supported employment will be provided in accordance with Rule 1240-08-11.

(f) Customized employment is based on an individualized determination of the unique strengths, abilities, interests, and informed choice of an individual with a significant disability; is designed to meet the specific abilities of the individual with a significant disability and the business needs of the employer; and is carried out through flexible strategies such as: job exploration and working with an employer to facilitate placement through task assignment, job carving, and job sharing. Customized employment services must be provided in accordance with VR requirements by a registered CRP with the appropriate training certification and must result in full- or part-time CIE at a location typically found in the community.

(g) Self-employment may be provided for eligible individuals who want to operate and/or expand a for-profit business for the purpose of manufacturing a product or providing a service for public sale in the competitive market. Self-employment services include the purchase of goods, services, and apparatus necessary for an individual to start or expand a business based on a business plan approved by VR and the cost of goods, services and apparatus approved by VR. Self-employment services do not include investments or cash funding; the purchase of vehicles, land, or franchises; the construction of buildings; interior or exterior building improvements; underwriting of loans; funding of illegal activities; or hobby ventures.

1. An assessment of an individual requesting self-employment services and the proposed business must be conducted by VR to determine if the proposed business will more than likely result in a successful employment outcome for VR.

An assessment may include but is not limited to:

(i) The business proposal and the individual’s experiences, learned skills, and abilities to perform the major tasks needed to operate the proposed business.

(ii) The individual’s capability of performing the majority of work required to operate the proposed business, including the number of hours required to operate similar businesses operated by individuals who do not have disabilities.

(iii) The business’s expected income must be comparable to the income received by individuals who are not individuals with disabilities, who are self-employed in similar businesses and who have similar training, experiences, and skills.

2. An individual must have the aptitudes, abilities and capabilities necessary for the operation of the business. VR may provide training to assist an individual with obtaining the skills necessary for the operation of the business. If an individual is unable to obtain the skills necessary for the operation of the business, VR will conduct an appropriate assessment to develop a more appropriate employment objective that will lead to CIE consistent with the individual’s strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice.

3. Individuals who have been determined to have the aptitudes, abilities and capabilities necessary for the operation of the business must develop a business plan. The individual must seek assistance from a Small Business Development Center; the Service Corps of Retired Executives; Chamber of Commerce; similar business owner; or other recognized community resources or business council to research and develop a business plan.

4. An individual’s business plan is reviewed by a team consisting of VR staff or area professionals as determined appropriate based on the type and complexity of the business. The team will make a recommendation for approval and for developing an IPE for self-employment. After an individual’s business plan is approved, changes will not be made without approval by VR.

5. If an individual’s business plan is not approved, the individual may correct identified deficiencies and re-submit the business plan for approval. If the resubmitted business plan is not approved, other types of businesses consistent with the individual’s strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice may be considered or VR may determine a more appropriate employment objective other than self-employment.

6. Costs paid by VR to purchase goods, services, and apparatus to start or expand a business are based on the specific needs of the business as documented in an approved business plan and will not exceed $10,000 unless approved by the VR Director.

7. VR will not purchase goods, services, or apparatus different in type, specification, quantity or use from what is approved by VR in the business plan. All goods, services and apparatus approved and purchased by VR must be included in the customer’s IPE prior to VR authorizing services. The individual must coordinate with VR for the purchase and delivery of all goods, services, and apparatus.

8. Pre-owned or used apparatus that may be used in the business operation must be included in the business plan. VR will not replace pre-owned or used apparatus unless an authorized authority has certified the equipment unusable for the approved business.

9. VR may assist with the purchase of additional goods, services, and apparatus in accordance with the approved business plan for up to three (3) months after business operation begins.

10. The individual must provide evidence of income for the business to VR using standard bookkeeping methods every three (3) months to document when a successful self-employment outcome is achieved.

11. If after ninety (90) days of business operation the business’s income does not meet the requirement for a successful case closure, VR will review the business’s income as provided by the individual every three (3) months thereafter for up to eighteen (18) months to determine when the business’s income meets the requirement for successful case closure.

12. If after eighteen (18) months the business’s gross annual income has not reached the requirement for a successful case closure, VR will consider the individual’s business unsuccessful. VR will discuss with the individual the possibility of other VR services.

13. For unsuccessful businesses, VR will determine the continuation of VR services based on a more appropriate employment objective, excluding self-employment, that is consistent with the individual’s strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice will lead to CIE.

14. If the individual is unable to continue with the business operation and goods and apparatus purchased by VR will no longer be used for their intended purpose, the individual is required to return the goods and apparatus to VR.

(h) Rehabilitation technology means the systematic application of technologies, engineering methodologies, or scientific principles to meet the needs of, and address the barriers confronted by, individuals with disabilities in areas that include education, rehabilitation, employment, transportation, independent living, and recreation. The term includes rehabilitation engineering, assistive technology devices, and assistive technology services.

1. Rehabilitation engineering means the systematic application of engineering sciences to design, develop, adapt, test, evaluate, apply, and distribute technological solutions to problems confronted by individuals with disabilities in functional areas, such as mobility, communications, hearing, vision, and cognition, and in activities associated with employment, independent living, education, and integration into the community.

2. Assistive technology, devices, and services includes:

(i) Assistive technology designed for use in an assistive technology device or assistive technology service.

(ii) Assistive technology devices, equipment, or product system, whether acquired commercially, modified, or customized, that is used to increase, maintain, or improve functional capabilities of individuals with disabilities.

(iii) Assistive technology services that directly assists an individual with a disability in the selection, acquisition, or use of an assistive technology device.

3. Rehabilitation technology, including telecommunications, sensory, and other technological aids and devices is exempt from a determination of the availability of comparable services and benefits.

4. Assistive technology devices and services do not include auxiliary aids and services required for public accommodation in accordance with Rule 1240-08-05- .06.

5. VR will evaluate an applicant’s or eligible individual’s need for assistive technology, devices, and services contemporaneously with its evaluation of the individual’s rehabilitation potential or trial work experiences. VR will reevaluate an individual’s need for assistive technology, devices, and services throughout the rehabilitation process on an annual basis.

(i) Students with disabilities who meet the definition in Rule 1240-08-02-.02 must, with coordination with Local Education Agencies, be provided pre-employment transition services (pre-ets) that include job exploring counseling, work-based learning experiences, counseling on opportunities for enrollment in post-secondary educational programs, workplace readiness training, and instruction in self-advocacy.

1. Students with disabilities are not required to have an eligibility of determination or priority for service or an IPE in order to receive pre-employment transition services. Pre-ets cases are managed by pre-ets specialists.

2. Students with disabilities may be referred for VR services. For students who are determined eligible for VR services, pre-ets services can continue under the preets case until the IPE is completed and the provision and documentation of preets services is transferred to the VR case.

3. Recognized education programs may include but are not limited to secondary and post-secondary education programs, non-traditional or alternative secondary education programs, including home schooling, post-secondary education programs providing transitional learning or similar programs, and other recognized educational programs, such as those offered through the juvenile justice system.

4. VR services will not take the place of academic or pre-vocational training that is the responsibility of the school system. This may include the purchase of equipment and/or assistive devices used primarily for educational purposes and/or transportation. Consideration may be given when the equipment or service is directly related to an employment service or to the achievement of an employment outcome.

5. Auxiliary aids and services required to meet ADA and Section 504 accommodations may be provided for students with sensory and communicative disorders.

6. Students enrolled in a secondary school system cannot also be enrolled in postsecondary training at VR’s expense.

7. A pre-ets case ends when a student ages out, graduates, is no longer enrolled or eligible for secondary school services, is no longer interested in receiving services, cannot be located, has been determined ineligible for VR services, or has been determined eligible for VR services and an IPE has been completed.

(j) Other services developed by VR are based on factors that have been determined necessary for an individual to participate in VR services and/or achieve an employment outcome and includes but is not limited to medical, mental, optical, speech, and audiology care and treatment and therapy, deaf-blind, surgery, hospitalization, dental, durable medical equipment, electronic equipment, job coaching, on-the-job training, physical and occupational therapy, prosthetics and orthotics, service animals, transitional and specialized services to support students in a post-secondary setting, tools and equipment, business licenses, vehicle modification, family member services, worksite and home modifications, service animals, Braille and orientation and mobility training, and comprehensive rehabilitation centers for evaluations and/or training.

1. Electronic equipment includes, but is not limited to, computer systems, CCTVs, and other electronic assistive technology devices required to accommodate a disability for the purpose of participating in a VR service or for employment, including the provision of upgrades and repairs to existing equipment. Electronic equipment must be prescribed by a qualified professional or approved by VR self-employment or for educational purposes in accordance with VR policy and procedures.

2. Family member services may only be provided for an individual who either is a relative or guardian of an applicant or eligible individual or lives in the same household as an applicant or eligible individual who has a substantial interest in the well-being of that individual and whose receipt of VR services is necessary to enable the applicant or eligible individual to achieve an employment outcome.

3. Vehicle modification services may be provided if an individual is unable to effectively and reasonably use other modes of transportation and requires appropriate transportation to prepare for, secure, retain or regain employment.

4. Worksite and home modification services may be necessary to modify a work site to permit job retention or job placement or to construct a ramp, widen a door, install handrails, etc. in an individual’s home so that the individual can participate in VR services.

(16) Support services and service providers are based on individual need for participating in contributing services as determined during IPE development or annual review of the IPE.

Support services may also be provided for diagnostic services. Support services include but are not limited to:

(a) Transportation in-state or out-of-state in order to participate in a contributing service or secure employment. An individual’s own vehicle may be used for transportation.

(b) Meals in-state or out-of-state necessary to participate in a contributing service or secure employment.

(c) Housing or lodging in-state or out-of-state necessary to participate in a contributing service or secure employment.

(d) Books, supplies, training materials, and wardrobe in order to participate in a training program.

(e) Personal supports in order to participate in a contributing service such as medication, drivers, child care, interpreters, readers and note takers, tutors, auxiliary aids, vehicle repair, professional dues, and disability-related supports.

(f) Drug screens for compliance with abstinence from substance use, to meet the requirements of employment, or, under certain circumstances, for an individual’s attendant care provider. Drug screens require approval from the individual.

(g) Background checks for program planning or for employment or, under certain circumstances, for an individual’s attendant care provider. Background checks require approval from the individual.

(h) Vehicle repair for limited repair work or parts replacement in accordance with VR policy and as determined by an ASE certified mechanic necessary to return a customer’s car to a drivable safe condition.

(i) Medication required for an individual’s impairment and to support participation in VR services and prescribed by a treating or other credentialed physician.

(j) Tutorial services determined necessary by VR to provide an individual participating in post-secondary training assistance or guidance for an individual to become an independent learner and maintain a school’s academic standard. A tutor will not be used to help an individual excel in an academic subject or to be an accommodation for academic deficiencies.

(k) Uniforms or wardrobe necessary to participate in a contributing service or secure employment.

(l) Attendant care services designed to assist an individual with a disability to perform daily living activities on or off the job that the individual would typically perform without assistance if the individual did not have a disability; to increase the individual’s ability to perform everyday activities on or off the job; necessary to the achievement of an employment outcome; and provided only while the individual is receiving other VR services. Attendant care services are not intended to supplement or replace services that would be provided regardless of participation in VR services. Attendant care services may not be provided if the intended employment outcome on the IPE will not provide the customer the ability to pay for attendant care services with the exception that attendant care services will more than likely be available through other resources after achievement of the employment outcome.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 49-11-701, et seq., 49-11-801, et seq., 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.5, 361.43, 361.47, and 361.48; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal and new rules filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-04-.03 INDIVIDUALIZED PLAN FOR EMPLOYMENT

(1) An Individualized Plan for Employment (IPE) is initiated for each eligible individual in an open priority category in a timely manner, but not later than 90 days after the date of determination of eligibility, unless VR and the eligible individual agree to the extension of that deadline to a specific date by which the IPE must be completed. VR services are provided in accordance with the approved IPE.

(2) The IPE is developed by the eligible individual or, as appropriate, the individual’s representative, with assistance available, to the extent determined appropriate by the eligible individual, from the VR Counselor or through other technical assistance. A copy of the IPE will be provided to each individual, or, as appropriate, to the individual’s representative.

(3) The IPE must be designed to achieve a specific employment outcome that is selected by the individual that is consistent with the individual’s unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice, and that will result in competitive integrated employment. It is presumed that individuals with disabilities determined eligible for VR services are capable of working in competitive integrated employment until proven otherwise.

(4) IPE development includes determining the extent of an individual’s participation in the cost of services that require such participation in accordance with Rule 1240-08-05-.02.

(5) For eligible students with disabilities, the IPE will include coordination with the goals, objectives and pre-employment transition services identified by the IDEA program determined necessary to contribute towards a projected post-school employment outcome and may be amended subsequently as necessary for services and an employment objective that will lead to competitive integrated employment. A student’s IPE must be developed, signed, and approved before the student exits the school system.

(6) An employment outcome must meet the requirements for competitive integrated employment and be consistent with the customer’s unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice and where the customer is compensated at or above the minimum wage and that the individual’s wage and level of benefits are not less than that customarily paid by the employer for the same or similar work performed by non-disabled individuals and services must have been provided under an IPE that contributed to the achievement of the employment outcome. An individual must maintain employment for ninety (90) days for a successful employment outcome and case closure in accordance with Rule 1240-08-04-.06.

(7) An individual is responsible for following the terms identified in the IPE Participant Responsibilities.

(8) The IPE must be reviewed annually to assess an individual’s progress in achieving the identified employment outcome and may be amended when a change in services or service providers is warranted and approved by VR.

(9) An individual may choose to not pursue competitive integrated employment. VR must provide an individual referral to community resources that may include extended (sheltered) employment where appropriate rehabilitation services may be provided by an entity other than VR. VR will close the case in accordance with Rule 1240-08-04-.06. An individual in extended (sheltered) employment may return to VR at any time to pursue competitive integrated employment.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 49-11-604(b), 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.5, 361.41, 361.42, 361.45, and 361.46; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal and new rules filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-04-.04 COUNSELING AND GUIDANCE, PERSON-CENTERED PRACTICES, AND

REFERRAL SERVICES.

(1) The VR Program will provide counseling and guidance and person-centered practices for applicants and eligible individuals or, as appropriate, their representatives throughout the life of the case in order to facilitate informed choice and actively directing, planning, and participating in making decisions about VR services, supports, and employment outcomes.

(2) Counseling and guidance is provided by the VR Counselor for each applicant and eligible individual or, as appropriate, the individual’s representative through one-on-one discussions with the individual and by specific activities to facilitate the provision of services and achievement of competitive integrated employment and to assist the individual or, as appropriate, the individual’s representatives to exercise informed choice.

(3) Person-centered practices are provided for applicants and eligible individuals or, as appropriate, their representative to promote an ongoing person-oriented approach that empowers an individual or, as appropriate, the individual’s representative to be actively involved in directing, planning, and participating in making decisions about the individual’s VR program by focusing on the individual’s unique strengths, abilities, capabilities, interests, personal choices, and informed choice.

(4) Referral services are provided to direct an individual to other entities for assistance and/or services not available from VR that may contribute to achievement of an employment outcome.

(5) The customer will be informed of his or her rights of appeal and how to contact a CAP representative in accordance with 1240-08-05-.06.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 49-11-604(b), 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.37, 361.41, 361.42, 361.43, and 361.48; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal and new rules filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-04-.05 VOCATIONAL REHABILITATION SERVICES

(1) The provision of VR services and support needs is based on the vocational rehabilitation and support needs of applicants and eligible individuals consistent with the individual’s strengths, resources, priorities, concerns, abilities, capabilities, interests, informed choice and VR policy and procedures as determined by an appropriate assessment conducted by the appropriate staff and identified in the individual’s IPE.

(2) VR services comprise diagnostic and assessment services necessary for the diagnosis of impairments and determining rehabilitation need, services that contribute to the achievement of competitive integrated employment, and support services that enable an eligible individual to participate in diagnostic and assessment and contributing services.

(3) VR diagnostic and assessment, contributing, and support services must be provided in accordance with VR policies and procedures.

(4) Prior to providing VR services, a determination must be made by VR as to the availability of comparable services and benefits in accordance with Rule 1240-08-05-.04 and the extent to which the comparable services or benefits can be utilized to provide or pay for the VR services.

(5) The provision of VR contributing and support services, with the exception of support services provided during diagnostic services, may be subject to the financial need of the individual as determined by VR in accordance with Rule 1240-08-05-.03. Based on the financial need assessment, some individuals may be required to participate in the cost of VR services that are subject to financial need. Refer to Rule 1240-08-05-.03 for services that are not subject to financial need.

(6) Except for diagnostic and assessment services and diagnostic and assessment support services, VR services must be provided under an IPE in accordance with Rule 1240-08-04- .03.

(7) VR has established a fee schedule for individual purchases of goods and services. Fees are authorized for payment by VR in accordance with the rules, policies, and procedures of the State’s Central Procurement Office, or in accordance with fees established by the Centers for Medicare and Medicaid Services.

(8) Goods and services may be procured through approved vendors, a federal or state funded program, contracted pre-paid services, journal voucher for another state agency, in-house service, or direct purchase by an individual by reimbursement or advanced payment in accordance with VR requirements.

(9) Price quotes in accordance with VR requirements are required prior to the purchase of tangible (material) items that exceed $5,000.

(10) Any goods or equipment purchased for a customer who later becomes unable to complete a training program or achieve an employment outcome must be returned by the customer to VR.

(11) VR services must be provided by appropriately credentialed professionals or approved service providers in accordance with VR requirements.

(12) Some VR services cannot be provided while a customer is not participating in VR services, such as during breaks between school terms or during summer vacations or while a customer is otherwise unable to participate.

(13) The individual may be required to participate in testing, training or an evaluation prior to receiving VR services.

(14) Diagnostic and assessment services are not subject to financial need and are based on individual need for determining eligibility and priority for services in accordance with Rule

Tenn. Comp. R. & Regs. 1240-08-04-.06 STANDARDS FOR CLOSING CASES

(1) VR may close a case from applicant status prior to making an eligibility determination if the applicant declines to participate in, or is unavailable to complete, an assessment for determining eligibility and priority for services, and VR has made a reasonable number of attempts to contact the applicant or, if appropriate, the applicant’s representative, to encourage the applicant’s participation.

(2) VR may close a case if an applicant does not meet eligibility requirements for VR services, the eligible individual receiving services under an IPE is incapable of achieving an employment outcome due to the severity of the individual’s disability, or the individual has chosen to not pursue competitive integrated employment.

(a) An individual does not meet eligibility requirements if:

1. There is no diagnosable impairment;

2. There is a diagnosable impairment but no substantial impediment to employment;

3. There is a diagnosable impairment and substantial impediments to employment but there are no expected VR services that will reduce, eliminate, or accommodate the participant’s impediment to employment and contribute to an employment outcome; or 4. It is determined through trial work experiences that the individual will not benefit from VR services in terms of an employment outcome.

(b) A case will not be closed because an individual is unable to achieve an employment outcome due to the severity of the individual’s disability without documenting by Trial Work Experiences clear and convincing evidence that the individual is incapable of benefiting from VR services in terms of an employment outcome due to the severity of the individual’s disability.

(c) Cases that are closed due to extended employment in a non-integrated or sheltered setting or in other employment compensated in accordance with section 14c of the Fair Labor Standards Act (sub-minimum wage) must be provided career counseling and information services at the time of case closure and every six (6) months for the first year following case closure and annually thereafter for the duration of such employment.

(d) Cases that are closed due to the severity of the individual’s disability must be reviewed twelve (12) months from case closure and annually thereafter if requested by the individual to determine potential for competitive integrated employment.

(3) VR may close a case of an individual who has achieved a successful employment outcome if all of the following requirements are met:

(a) The individual has achieved competitive integrated employment described in the individual’s IPE that is consistent with the individual’s strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice and is at a location typically found in the community (in the competitive labor market) where the individual:

1. Is compensated at not less than the legal minimum wage or at the customary rate for the same or similar work performed by employees who are not individuals with disabilities;

2. Is eligible for the level of benefits provided to other employees who are not individuals with disabilities;

3. Interacts with fellow employees for the purpose of performing the job duties within the work unit who are not individuals with disabilities;

4. Has the opportunity for advancement that is similar for other employees who are not individuals with disabilities and who have similar positions; and (b) The employment outcome has been maintained for an appropriate period of time, but not less than ninety (90) days, to ensure the stability of the employment outcome, and the individual no longer needs VR services; and (c) At the end of the appropriate period described in (b), the individual and the VR Counselor consider the employment outcome to be satisfactory and agree that the individual is performing well in the employment.

(4) VR may close a case due to intervening reasons in which the individual is not available for diagnostic assessments or continuation of services because the individual has died, has moved out of state and shows no intention of continuing with the VR program, has not been contacted after required efforts, has been institutionalized for an indefinite or extended period of time, has refused services, or is no longer interested in VR services after reasonable counseling and guidance efforts by the VR Counselor.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.5, 361.44, 361.45, 361.46, 361.55, and 361.56; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal and new rules filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-04-.07 POST-EMPLOYMENT SERVICES

(1) Post-employment services are one or more VR services limited in scope and duration that are necessary subsequent to the achievement of a successful employment outcome. The services must be necessary for an individual to maintain, regain, or advance in employment, consistent with the individual’s strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice.

(2) Post-employment services must be provided under the terms of an amended IPE.

(3) Post-employment services are subject to the same requirements for services provided prior to employment in accordance with 1240-08-04-.05. Services are subject to financial need in accordance with 1240-08-05.-02, with the exception that post-employment services are exempt from a determination of the availability of comparable services and benefits.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.5, 361.37, and 361.48; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-05-.01 .

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 49-11-604(b), 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.5 and 361.36; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal and new rules filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Chapter 1240-08-05 Services to Individuals: Related Provisions

Tenn. Comp. R. & Regs. 1240-08-05-.01 ORDER OF SELECTION AND PRIORITY FOR SERVICES

(1) When VR is unable to provide the full range of VR services to all individuals who meet the basic requirements for eligibility, VR is required to implement an Order of Selection to be followed in prioritizing individuals who meet the basic requirements for eligibility for the provision of VR services. VR determines when and if an Order of Selection will be implemented.

(2) When an Order of Selection is implemented, individuals previously determined eligible for VR services and receiving services under an IPE are not affected. An Order of Selection does not regulate the provision or authorization of diagnostic assessments.

(3) After implementation of an Order of Selection, each individual who meets the basic requirements for eligibility will be placed into the highest category justified according to paragraph (4).

(4) Disability Priority Categories and definitions for an Order of Selection are determined by VR and are based on the federal definition of an individual with a significant disability and are as follows, with the lowest numerical category being the highest priority that must be considered first for the provision of services:

(a) Disability Priority Category 1 - Most Significantly Disabled.

(b) Disability Priority Category 2 - Significantly Disabled.

(c) Disability Priority Category 3 - Not Significantly Disabled.

(d) Disability Priority Category 4 - Cannot be categorized into a higher Disability Priority Category.

(5) An individual who is eligible to receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) based on disability or blindness is presumed to be an individual who is Disability Priority Category 2 - Significantly Disabled.

(6) VR determines which disability priority categories are open for the provision of services.

(7) When an Order of Selection is implemented, those individuals who are placed into an open priority category may be served under an IPE. Those individuals who are placed in a closed priority category may not be served until the Order of Selection is lifted, the category is opened to provide services, or cases are released for the provision of services.

(8) Individuals who are assigned a disability priority category that is closed, meaning services will not be provided, will be notified in writing and must be referred to other federal and state programs, including programs that are part of the one-stop service delivery system under the Workforce Innovation and Opportunity Act.

(9) If VR will not continue to serve all individuals determined to be Disability Priority Category 1, services will be provided to new Disability Priority Category 1 individuals based upon date of application.

(10) If VR is able to open a closed disability priority category or release cases to be provided services but is unable to serve all individuals in that category, services will be provided based upon the date of application.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.5 and 361.36; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-05-.02 FINANCIAL NEEDS ASSESSMENT

(1) VR will consider the financial need of each eligible individual in determining the extent of the individual’s participation in the cost of services that require such participation.

(2) A financial need assessment (FNA) is based on an individual’s household income and financial circumstances, the number of individuals living in the household, allowed deductions, approved exceptions, and the current financial need level established by VR. The FNA will be conducted prior to development of an individual’s IPE and annually thereafter or sooner if there are changes in an individual’s financial circumstances.

(a) Household income includes the adjusted gross income (AGI) of the household contributors providing more than half of the individual’s support as shown on the most recent completed joint or separate federal income tax returns regardless of whether the individual is claimed on the tax return or lives with the individuals; other individual and/or spouse income sources such as paycheck stubs, bank statements, business income receipts or fixed income deposits; and other income from household contributors other than the eligible individual such as SSA benefits, Families First benefits or other sources.

(b) Deductions include current out-of-pocket payments being made at the time the initial FNA or an annual financial need review is completed for non-reimbursed household medical or dental expenses; medical insurance premiums for which the individual is included in the coverage; court ordered obligations other than alimony; and postsecondary educational loans of the individual, not other household members.

(c) Exceptions to participating in the cost of services may include the amount of benefit for fixed income, payments for disability-related expenses, or similar financial circumstances.

(3) Individuals who are determined to meet financial need are exempt from participating in the cost of most VR services using personal funds but are not exempt from applying for and using comparable services and benefits or from paying additional costs when services chosen by the individual exceed the allowable fees established by VR. Individuals who are determined to meet financial need include individuals:

(a) Whose household income, financial circumstances, number of individuals living in the household and deductions have been verified and documented and, based on the FNA conducted in accordance with VR policy, the financial need level is not exceeded;

(b) Who have been determined eligible for and verified and documented to be receiving SSI or SSDI benefits based on the individual’s own disability or blindness; or (c) Who have been determined eligible for and verified and documented to be receiving Families First cash benefits.

(4) Individuals who are determined to be over financial need are required to participate in the cost of services subject to need unless an exception has been approved by VR. Individual participation in the cost of services cannot exceed the amount that the individual is over need.

(5) VR may not apply a financial needs test, or require the financial participation of the individual as a condition for furnishing the following VR services:

(a) Assessment for determining eligibility and priority except those non-assessment services that are provided to an individual with a significant disability during either an exploration of the individual’s abilities, capabilities, and capacity to perform in work situations through the use of trial work experiences;

(b) Assessment for determining vocational rehabilitation needs;

(c) Vocational rehabilitation counseling and guidance;

(d) Referral and other similar services;

(e) Job-related services;

(f) Personal assistance services;

(g) Any auxiliary aid or service (e.g., interpreter services), reader services that an individual with a disability requires under section 504 of the Rehabilitation Act (29 U.S.C. 794) or the Americans with Disabilities Act (42 U.S.C. 12101, et seq.), or regulations implementing those laws, in order for the individual to participate in the VR program as authorized under this part; or (h) If the individual in need of a service has been determined eligible for Social Security benefits under titles II or XVI of the Social Security Act.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; and 34 C.F.R. § 361.54.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. New rule filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-05-.03 COMPARABLE SERVICES AND BENEFITS AND SUBROGATION

(1) In determining what VR services are provided to an individual and the scope of such services, the VR Program will consider the availability of comparable services or benefits from other sources to pay, in whole or in part, the cost of VR services unless such a determination would interrupt or delay:

(a) The progress of the individual toward achieving the employment outcome identified in the IPE;

(b) An immediate job placement; or (c) The provision of VR services to any individual who is determined to be at extreme medical risk, based on medical evidence provided by an appropriate qualified medical professional.

(2) The following VR services are exempt from a determination of comparable services:

(a) Evaluation to determine eligibility, rehabilitation needs, or priority for services;

(b) Counseling, guidance, and referral services;

(c) Vocational and other training, including vocational adjustment training, books, tools, and other training materials not provided in institutions of higher education;

(d) Placement services;

(e) Rehabilitation engineering services; and (f) Post-employment services consisting of the services listed in (a) through (e) above.

(3) Vocational and other training services in institutions of higher education may not be paid for with funds under this part unless maximum efforts have been made by VR and the individual to secure grant assistance in whole or in part from other sources to pay for the training.

Institutions of higher education include universities, colleges, community/junior colleges, vocational schools, technical institutes, or hospital schools of nursing. Comparable benefits include Pell Grants, Supplemental Educational Opportunity Grants, Tennessee Student Assistance Awards, Tennessee post-secondary education scholarships and awards administered by the Tennessee Student Assistance Corporation, and institutional grants, awards or scholarships, including fellowships or other awards. Comparable services and benefits do not include educational awards and scholarships based on merit except when an award or scholarship is earmarked to credit a student’s account.

(4) Federal and state educational grants awarded to an individual must be used to pay for educational expenses in accordance with appropriate federal, state and institutional guidelines.

(5) Comparable services and benefits may also be available for individuals eligible for Medicare or Medicaid (TennCare), Children’s Special Services, or private health insurance.

(6) If comparable services or benefits are not available to pay for VR services at the time needed, VR may pay for services until those comparable services and benefits become available.

(7) If, during the provision of services, comparable services or benefits become available or an individual’s circumstances change in such a way as to impact entitlement, VR will determine the extent of entitlement and availability and the effect on payment for the services.

(8) When an individual’s comparable services or benefits for a service are exhausted, VR may pay for the cost the service.

(9) When VR funds are expended on behalf of an eligible individual for goods or services that a third party is or becomes legally obligated to pay in compensation for an accident or injury which caused or contributed to the vocational rehabilitation eligibility, VR may exercise the right of recovery of such funds through subrogation. By accepting or receiving VR funds to pay the cost of goods and services, the individual is deemed to have agreed to and authorized such subrogation.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 71-1-104, 71-1-105(a)(12), and 71-1-123; 29 U.S.C. §§ 720, et seq.; 34 C.F.R. § 361.53; and Executive Order No.43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-05-.04 PROTECTION, USE, AND RELEASE OF PERSONAL INFORMATION

(1) All information of individuals applying for or receiving services given or made available to VR employees, in the course of the administration of the VR Program, is confidential.

Confidentiality extends to electronic information, photographs, lists of names, and personal identifiable information.

(2) The use of such information and records is limited to purposes directly connected with the administration of the VR Program.

(3) Information is not to be disclosed directly or indirectly, other than in the administration of the VR Program, unless the informed consent of the individual has been obtained in writing.

(4) Upon the individual’s written request, VR must release all information in the individual’s record to the individual or the individual’s representative, except that medical, psychological or other information deemed harmful to the individual will only be released to the individual through a designated third party. If the information comes from a separate entity, VR must follow the conditions for release of such information established by that entity.

(5) VR may release personal identifiable information to another agency or organization, in accordance with an individual’s written agreement, for its program purposes only to the extent that the information may be released to the involved individual or the individual’s representative and only to the extent that the other agency or organization demonstrates that the information requested is necessary for its program.

(6) VR may release information to an individual or organization engaged in research when the

purpose is directly connected with the administration of the VR Program, and only after the individual or organization has furnished satisfactory assurances that the information shall be used only for the purpose it was provided, and:

(a) It shall not be released to persons not connected with the study under consideration, and (b) The final product of the research shall not reveal any information that may identify any person who did not provide written consent to release the information.

(7) Reports, surveys, case studies, research projects, and other information released to entities/organizations and individuals by counselors and other VR personnel may contain statistical information and data essential to the advancement of the program, but no information identifiable with any individual shall be included without the written consent of that individual.

(8) Release of Personal Identifiable Information.

(a) VR may release personal identifiable information to an organization, state entity, or individual engaged in an audit, evaluation, or research for purposes directly connected with the administration of the VR Program, or for purposes that would significantly improve the quality of life for applicants and eligible individuals, and only if the organization, entity, or individual assures that:

1. The information will be used only for the purposes for which it is being provided;

2. The information will be released only to individuals officially connected with the audit, evaluation, or research;

3. The information will not be released to the involved individual, but will be managed in a manner to safeguard confidentiality; and 4. The final product will not reveal any personal identifying information without the informed written consent of the involved individual or the individual’s representative.

(b) Personal identifiable information will be released in response to investigations in connection with law enforcement, fraud, or abuse, unless expressly prohibited by federal or state laws or regulations, or in response to an order issued by a judge, magistrate, or other authorized judicial officer.

(c) Personal identifiable information may be released in order to protect the individual or others if the individual poses a threat to his or her safety or to the safety of others.

(9) All documents containing information about the individual and possessed by the Division or VR are property of the Division.

(10) An individual who believes that information in the record is inaccurate or misleading may request that the record be amended. If the information is not amended, the request for amendment must be documented in the record.

(11) VR employees, contractors, service providers, cooperating agencies, and interested persons must secure all customer information in appropriate locations that is overseen by qualified personnel.

(12) The Division may charge a reasonable fee for providing copies of records for purposes other than those of the VR Program in accordance with the rules of the Department at Chapter 1240-09 and state law.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. § 361.38; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-05-.05 AUXILIARY AIDS AND SERVICES

(1) A public accommodation may be necessary to ensure that no individual with a disability can be excluded, denied services, segregated or otherwise treated differently than other individuals because of the absence of auxiliary aids and services, unless the accommodation would fundamentally alter the nature of the goods, services, facilities, privileges, advantages, or accommodations being offered or would result in an undue burden, i.e., significant difficulty or expense. The term "auxiliary aids and services’’ includes:

(a) Qualified interpreters, notetakers, computer-aided transcription services, written materials, foreign language interpreters, telephone handset amplifiers, assistive listening devices, assistive listening systems, telephones compatible with hearing aids, closed caption decoders, open and closed captioning, telecommunications devices for deaf persons (TDD’s), videotext displays, or other effective methods of making aurally delivered materials available to individuals with hearing impairments;

(b) Qualified readers, taped texts, audio recordings, brailled materials, large print materials, or other effective methods of making visually delivered materials available to individuals with visual impairments;

(c) Acquisition or modification of equipment or devices; and (d) Other similar services and actions.

(2) VR will not assume the responsibility of other programs or vendors, such as post-secondary training institutions, community rehabilitation programs, physicians, psychologists, and placement agencies for providing auxiliary aids and services for public accommodation requirements.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 49-11-701, et seq., 49-11-801, et seq., 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 28 CFR 36.303; 34 C.F.R. § 361.5; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal filed October 5, 2017; effective January 3, 2018. New rule filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-05-.06 RIGHT TO ADMINISTRATIVE REVIEW, MEDIATION, AND FAIR HEARING

(1) VR will provide timely due process for applicants or recipients of services or, as appropriate, their representatives who may be dissatisfied with any determination made by VR that affects the provision of VR services.

(2) Due process may include an informal administrative review by appropriate VR supervisory staff, mediation by a qualified Mediator, or fair hearing by an Impartial Hearing Officer.

(3) VR must provide written notice in accordance with VR requirements of due process to individuals, including their representatives when appropriate, and potentially eligible students with disabilities referred for pre-employment transition services:

(a) At the time the individual applies for VR services or at the first meeting for potentially eligible students with disabilities;

(b) At the time the individual is assigned to a priority category, if VR has established an order of selection;

(c) At the time the IPE is developed; and (d) Whenever VR services for an individual are reduced, suspended, or terminated.

(4) The request for a review of a determination made by VR that affects the provision of VR services may be either oral, written or on-line. The request must be made no later than thirty (30) calendar days after the date of notification of a determination by VR. This includes a determination made as the result of an Informal Administrative Review or Mediation.

(5) Unless otherwise requested by the individual or, as appropriate, the individual’s representative, the default method for review will be by Informal Administrative Review.

(6) The VR Director must approve mediation and the availability of a qualified Mediator.

(7) Reviews requested by individuals, including their representatives when appropriate, must be conducted timely in accordance with VR requirements, including reporting to an individual or, as appropriate, the individual’s representative the outcome of the review.

(8) VR may not institute a suspension, reduction, or termination of VR services being provided to an applicant or recipient, including evaluation and assessment services and IPE development, pending a resolution through mediation, pending a decision by a hearing officer, or reviewing official, or pending informal resolution under this section unless the individual or, in appropriate cases, the individual’s representative, requests a suspension, reduction, or termination of services, or VR has evidence that the services have been obtained through misrepresentation, fraud, collusion, or criminal conduct on the part of the individual or the individual’s representative.

(9) An individual or, as appropriate, the individual’s representative, may request a fair hearing by an Impartial Hearing Officer at any time during an informal administrative review or mediation or no later than thirty (30) calendar days after the date of notification of a determination of an informal administrative review or mediation.

(10) An individual has the right to be represented by legal counsel or other representative and the right to submit evidence and other supporting information.

(11) Review made by an Impartial Hearing Officer is conducted in accordance with the requirements of the Division of Appeals and Hearings.

History

• Authority: T.C.A. §§ 4-5-202, 4-5-301, et seq., 49-11-601, et seq., and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; and 34 C.F.R. §§ 361.5, 361.13, and 361.57.
• Administrative History: New rule filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-05-.07 TENNESSEE REHABILITATION CENTER AT SMYRNA

(1) The Tennessee Rehabilitation Center at Smyrna (TRCS) is a statewide comprehensive rehabilitation and training center for applicants and eligible individuals receiving services from the Division’s VR Program.

(2) TRCS is a day and residential facility that provides services including, but not limited to, vocational training and counseling, rehabilitation services, wellness management services, and pre-employment transition services for students with disabilities.

(3) Vocational training and counseling are provided at TRCS for a variety of vocational areas that lead to a certificate, credential, or industry certification and achievement of an employment outcome.

(4) Rehabilitation services provides supports based on an individual’s disability and rehabilitation need that may include cognitive, behavioral, sensory, physical and occupational, and recreation therapies.

(5) Wellness management services provides management for an individual’s medical and psychological needs due to the individual’s disability.

(6) Pre-employment transition services are provided for students with disabilities in accordance with the student’s need for such services.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.38 and 361.51; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Rule was previously numbered 1240-08- 05-.06 but was renumbered 1240-08-05-.07 with the introduction of a new rule 1240-08-05-.06 filed February 29, 2024; effective May 29, 2024. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-05-.08 COMMUNITY VR SERVICES

(1) Community VR services for applicants and eligible individuals to prepare for and achieve competitive integrated employment and pre-employment transition services for students with disabilities are provided by the VR Community Services Unit (CSU). Services include, but are not limited to, individualized pre-plan assessments, career readiness services, individualized services based on rehabilitation need, and pre-employment transition services for students with disabilities that consists of information or activities regarding potential employment, postsecondary training, and self-advocacy.

(2) Services are provided in accordance with the individual’s rehabilitation needs.

(3) The CSU maintains standards for the provision of services.

(4) The CSU may also offer services to employers including, but not limited to, marketability, recruitment, industry outsourcing, internships, and services to injured workers.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 49-11-701, et seq., 71-1-104, and 71-1-105(a)(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. § 361.51; and Executive Order No. 43 (1983).
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Rule was previously numbered 1240-08- 05-.07 but was renumbered 1240-08-05-.08 with the introduction of a new rule 1240-08-05-.06 filed February 29, 2024; effective May 29, 2024. Amendments filed February 29, 2024; effective May 29, 2024.

Chapter 1240-08-06 Services to Groups

Tenn. Comp. R. & Regs. 1240-08-06-.01 REPEALED

History

• Authority: T.C.A. §§ 4-5-202, 49-11-604(b), 71-1-105(12), 71-4-607(b)(2), and 71-4-1201, et seq.; 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.22, 361.49, and 361.53; and Executive Order No. 43.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-08-06-.02 CONSTRUCTION OF REHABILITATION FACILITIES

(1) DRS provides construction of public or other non-profit rehabilitation facilities in conformity with federal and state law and regulations.

(2) DRS maintains a State Rehabilitation Facilities Plan, which includes an inventory of rehabilitation facilities and services available within the State and a description of the utilization patterns of the facilities and their utilization potential. Any construction of rehabilitation facilities will be in conformity with this Facilities Plan.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 71-1-104, 71-1-105(12), and 71-4-1201, et seq.; 29 U.S.C. §§ 720, et seq.; 34 C.F.R. §§ 361.60 and 361.61; and Executive Order No. 43.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-06-.03 ESTABLISHMENT OF REHABILITATION FACILITIES

(1) DRS will determine that need for the establishment of any rehabilitation facility has been demonstrated in the inventory of rehabilitation facilities contained in the State Facility Plan.

(2) Facilities will meet any departmental standards, provide primarily vocational rehabilitation services to applicants or eligible individuals, and take affirmative action to employ or advance in employment qualified individuals with disabilities.

(3) Establishment grants to facilities (public or non-profit) may be used to provide initial or additional staffing, expansion, remodeling, or alteration of existing buildings and initial equipment.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-602(4), 49-11-607(b)(1), 71-1-105(12), 71-4-602(13), 71-4-607, and 71-4-1201, et seq.; 29 U.S.C. §§ 720, et seq.; 34 CFR § 361.33; and Executive Order No. 43.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Chapter 1240-08-07 Repealed

Tenn. Comp. R. & Regs. 1240-08-07-.01 REPEALED

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., 71-1-104, 71-1-105, and 71-1-105(12); 29 U.S.C. §§ 720, et seq.; 34 C.F.R. Part 361; 34 C.F.R. §§ 361.5 and 361.48; and Executive Order No. 43.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002. Repeal filed October 5, 2017; effective January 3, 2018. -- 1 of 1 --

Chapter 1240-08-08 Grants and Projects

Tenn. Comp. R. & Regs. 1240-08-08-.01 GRANT ADMINISTRATION POLICY

The Division of Rehabilitation Services may periodically make funds available to public and/or private non-profit agencies to establish or improve community rehabilitation programs for the purpose of providing vocational rehabilitation services to applicants or eligible individuals.

(1)The amount of Federal/State financial participation in project grants shall not exceed seventy-eight and seven-tenths percent (78.7%) of the total cost.

(2)Initial and continued funding of project grants is subject to the availability of Federal funds and the grantee meeting the projected goal established for the project.

(3)Funds may be available for the needs and priorities identified by the State agency.

(4)Project directors of grantee institutions who are engaged in administration and financial management of project grants are to assure the agency that grant funds are managed in an efficient and effective manner and utilized only for the purposes for which they were granted.

History

• Authority: T.C.A. §§4-5-202, 71-1-104, 71-1-105, 49-11-601 et seq., and Executive Order No. 43.
• Administrative History: Original rule filed September 30, 1985; effective October 30, 1985. Amendment filed July 12, 2002; effective September 25, 2002.

Chapter 1240-08-09 Tennessee Rehabilitation Services - Conduct Policy

Tenn. Comp. R. & Regs. 1240-08-09-.01 SCOPE

Generally, through appropriate due process procedures, facility disciplinary measures shall be imposed for conduct which adversely affects the facility's pursuit of its rehabilitation responsibilities, which violates or shows a disregard for the rights of other members of the Tennessee Rehabilitation Center, the Community Tennessee Rehabilitation Centers, or the facility community, or which endangers property or persons on facility or facility-controlled property.

History

• Authority: TCA §§4-5-202; 71-1-105(12); 49-11-605; 49-11-608.
• Administrative History: Original rule filed June 30, 1980; effective August 14, 1980. Transferred from the Department of Education by Executive Order No. 43; effective February 11, 1983. Amendment filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed September 30, 1985; effective October 30, 1985. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-09-.02 MISCONDUCT SUBJECT TO DISCIPLINARY SANCTION

Individual or organizational misconduct which is subject to disciplinary sanction shall include, but not be limited to, the following examples:

(1) Conduct Dangerous to Others. Any act of violence or threat of violence to other persons or to oneself.

(2) Excessive Noise. Any excessive noise in the dormitories, infirmary area, administrative office area, or in the classroom area when classes are in session.

(3) Disorderly Conduct. Any individual or group behavior which constitutes criminal obscenity, lewdness, or other conduct intended to, or which could reasonably be expected to, disrupt the normal operation of a facility or the peaceful use of the facility by others.

(4) Obstruction of or Interference with Facility, Activities, or Buildings. Any intentional interference with or obstruction of any facility activity, program, event, or facilities, including the following:

(a) Any unauthorized occupancy of facility-controlled property and buildings or blockage of access to or from such facilities;

(b) Interference with the right of any facility member or other authorized person to gain access to any facility-controlled activity, program, or event; or (Rule 1240-08-09-.02 continued)

(c) Any obstruction or delay of a facility security officer or any facility official in the performance of his/her duty.

(5) Misuse of or Damage to Property. Any act of misuse, vandalism, malicious or unwarranted damage or destruction, defacing, disfiguring, or unauthorized use of property belonging to the facility including, but not limited to, fire alarms, fire equipment, elevators, telephones, facility keys, training materials, and/or safety devices; and any such act against a member of the facility community or guest of the facility.

(6) Theft, Misappropriation, or Unauthorized Sale. Any act of theft, misappropriation, or unauthorized possession or sale of facility property or any such act against a member of the facility community or a guest of the facility.

(7) Misuse of Documents or Identification Cards or Providing False Information and Withholding Information. Any forgery, alteration, or unauthorized use of facility documents, forms, records or identification cards, including the giving of any false information, or withholding of necessary information upon reasonable request.

(8) Firearms and Other Dangerous Weapons. Any unauthorized possession or use of any kind of firearm or dangerous weapon on facility property.

(9) Explosives, Fireworks, and Flammable Materials. The unauthorized possession, ignition, or detonation of any object or article which could cause damage by fire or other means to persons or property, or possession of any substance which could be considered or is used as fireworks.

(10) Alcoholic Beverages. The consumption or possession of alcoholic beverages on facility property.

(11) Drugs. The unlawful possession or use of any drug or controlled substance (including, without limitation, any stimulant, depressant, narcotic, or hallucinogenic drug or substance, or marijuana), or sale or distribution of any such drug or controlled substance on facility property.

(12) Gambling. Gambling in any form on facility property.

(13) Financial Irresponsibility. Failure to meet promptly financial responsibilities to the facility, including, but not limited to, passing a worthless check or money order in payment to the facility or to a member of the facility community acting in an official capacity.

(14) Unacceptable Conduct in Hearings. Giving false testimony or other false evidence at any hearing.

(15) Failure to Cooperate with Facility Officials. Failure to comply with directions of facility officials acting in the proper performance of their duties.

(16) Smoking in Prohibited Areas. Smoking in dormitory rooms of the facility or in any other area on campus where smoking is prohibited.

(17) Unauthorized Dormitory Access. Any unauthorized presence of male students in female dormitories, or unauthorized presence of female students in male dormitories.

(18) Car Registration. Failure of students to register any vehicle brought on campus.

(19) Identification Cards. Failure of students to carry identification cards while on facility premises.

(Rule 1240-08-09-.02 continued)

(20) Sexual Misconduct. Engaging in sexual acts on Center property.

(21) Violation of State or Federal Laws. Any violations of state or federal laws or regulations prescribing conduct or establishing offenses, which laws and regulations are incorporated herein by reference.

(22) Academic Dishonesty. Plagiarism, cheating, stealing, or any other form of academic dishonesty.

(23) Chronic Tardiness or Absenteeism.

(24) Attempts, Aiding and Abetting. Any attempt to break any of the foregoing rules of conduct, or helping or assisting in any way another person to break any of the foregoing rules.

History

• Authority: TCA §§4-5-202; 71-1-105(12); 49-11-604(b).
• Administrative History: Original rule filed June 30, 1980; effective August 14, 1980. Transferred from the Department of Education by Executive Order No. 43; effective February 11, 1983. Amendment filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed September 30, 1985; effective October 30 1985. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-09-.03 WHEN DISCIPLINARY ACTION MAY BE TAKEN

Disciplinary Action may be taken against a student for violation of the foregoing regulations which occur on facility owned, leased or otherwise controlled property, or which occur off facility premises when the conduct impairs, interferes with, or obstructs any facility activity or the missions, processes, and functions of the facility. In addition, disciplinary action may be taken on the basis of any conduct on or off campus which poses a substantial threat to persons or property within the facility community.

History

• Authority: TCA §4-5-202; 71-1-105(12); 49-11-604.
• Administrative History: Original rule filed June 30, 1980; effective August 14, 1980. Transferred from the Department of Education by Executive Order No. 43; effective February 11, 1983. Amendment filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed September 30, 1985; effective October 30, 1985. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-09-.04 PERSONNEL RESPONSIBILITIES FOR DISCIPLINARY ACTION

The facility counselors are responsible for coordinating disciplinary sanctions according to facility rules and regulations when students violate the foregoing rules.

History

• Authority: TCA §§4-5-202; 71-1-105(12); 49-11-604.
• Administrative History: Original rule filed June 30, 1980; effective August 14, 1980. Transferred from the Department of Education by Executive Order No. 43; effective February 11, 1983. Amendment filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed September 30, 1985; effective October 30, 1985. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-09-.05 DISCIPLINARY SANCTIONS

(1) Upon a determination that a student has violated any of the rules, regulations, or disciplinary offenses set forth in the regulations, the following disciplinary sanctions may be imposed, either individually or in combination, by appropriate facility officials.

(a) Restitution. A student who has committed an offense against property may be required to reimburse the facility or other owner for damage to or misappropriation of such property. Any such payment in restitution shall be limited to the actual cost of repair or replacement.

(Rule 1240-08-09-.05 continued)

(b) Warning. The appropriate facility official may notify the student that continuation or repetition of specified conduct may be cause for other disciplinary action.

(c) Reprimand. A written reprimand, or censure, may be given to any student whose conduct violates any part of these regulations. Such a reprimand does not restrict the student in any way, but does have important consequences. It signifies to the student that he or she is, in effect, being given another chance to conduct himself or herself as a proper member of the facility community, but that any further violation may result in more serious penalties.

(d) Restriction. A restriction upon a student's privilege for a period of time may be imposed.

This restriction may include, for example, denial of the right to represent the institution in any way, denial of the right to use of facilities, denial of parking privileges, denial of the right to participate in extracurricular activities, or restriction to the facility grounds.

(e) Probation. Continued enrollment of a student on probation may be conditioned upon adherence to these regulations. Any student placed on probation will be notified of such in writing and will also be notified of the terms and length of the probation.

Probation may include restrictions upon the extracurricular activities of a student. Any conduct in violation of these regulations while on probationary status may result in the imposition of a more serious disciplinary sanction.

(f) Suspension. If a student is suspended, he or she is separated from the facility for a stated period of time with conditions of readmission stated in the notice of suspension.

(g) Expulsion.

1. Expulsion with Option to Reapply. Expulsion entails separation from the facility for serious or continuous violations of Center rules and regulations. Students expelled with an option to reapply will be so informed at the time of expulsion.

Students will be given a stated period of time, usually six (6) months, after which they may reapply for TRC services. An application for readmission will be considered by the Admissions Committee and judged against standard admission criteria used for all incoming students.

2. Permanent Expulsion. This sanction entails permanent separation from the facility. The imposition of this sanction is a permanent bar to the student's readmission to the Tennessee Rehabilitation Center. This is the most severe disciplinary action available to the Center and is used only when Center officials determine that the student cannot be rehabilitated in the setting of a comprehensive rehabilitation center. Permanent expulsion does not necessarily mean the student loses access to rehabilitation services. Services can be provided through the sponsoring counselor or at other appropriate rehabilitation sites.

(h) Interim or Summary Suspension. Summary suspension may be imposed upon a finding by the appropriate institutional official that the continued presence of the accused on the facility premises poses continuing danger to persons or property or poses an ongoing threat of disrupting the academic or rehabilitative process. In any case of immediate suspension, the student shall be provided the opportunity for an administrative review/fair hearing on the suspension as soon as possible.

(2) The administrator of the facility is authorized, in his or her discretion, to subsequently convert any sanction imposed to a lesser sanction, or to rescind any previous sanction, in appropriate cases.

(Rule 1240-08-09-.05 continued)

History

• Authority: TCA. § 4-5-202; 71-1-105(12); 49-11-605.
• Administrative History: Original rule filed June 30, 1980; effective August 14, 1980. Transferred from the Department of Education by Executive Order No. 43; effective February 11, 1983. Amendment filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-09-.06 RIGHT TO ADMINISRATIVE REVIEW AND/OR FAIR HEARING

Students may request due process review of a sanction imposed upon them and are to be offered all levels of appropriate review as set forth herein prior to the imposition of the sanction, except for those circumstances justifying temporary removal or exclusion.

(1) Supervisory Review. All students who have been notified that they will be sanctioned shall be afforded the opportunity to request and receive a supervisory review of the events leading to disciplinary action with the Regional Facilities Supervisor. The supervisory review is available in all cases of sanction less severe than suspension or expulsion.

(2) Administrative Review. Students may elect to have an administrative review in cases of suspension, expulsion, summary suspension, or in any other circumstances deemed appropriate by the administrative official. If the student elects to have an administrative review, he/she will be informed that the administrative review will be held within twenty-four (24) hours of the date of receipt of notice. Immediately, the student will be informed in writing of the following: date and time of review, that the review will consider the allegations of the statement of misconduct contained in the original notification, that the student will have a right to make a personal appearance to present evidence, call witnesses in his/her behalf, and to question staff. This notice is to be formally presented in writing to the student and attached to the notice of violation. The TRC Superintendent or designee will notify the student in writing of his or her decision. The sanction will be imposed after a determination by the administrative official. If it is determined through the administrative appeal that a reversal of the previous decision is imminent, the student shall be reinstated to his/her former status immediately. Further appeals are available under the fair hearing procedures of the Division of Appeals and Hearings.

(3) Fair Hearings. Any student who has been notified that he/she will be suspended, expelled, or directed to make restitution has the right to request and receive a fair hearing on the action, as provided in Chapter 1240-05-01. The student may proceed to a fair hearing request without first requesting or receiving an administrative review.

(4) Right to Administrative Review and/or Fair Hearing. Right to Administrative Review and/or Fair Hearing policies also applies to the Tennessee Vocational Training Center facilities program and is identical to the statement above concerning the Tennessee Rehabilitation Center program, except that the supervisory review will be conducted by the Center Manager and the administrative review will be conducted by the Regional Facilities Supervisor.

History

• Authority: TCA §§4-5-202; 71-1-105(12); 49-11-604.
• Administrative History: Original rule filed June 30, 1980; effective August 14, 1980. Transferred from the Department of Education by Executive Order No. 43; effective February 11, 1983. Amendment filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-09-.07 SEARCH AND INSPECTION POLICY

(1) Search by Center Officials. The Center reserves the right to enter into facility-owned property or student property brought to the facility for the purpose of search and seizure if there is reasonable cause to believe that a student is using property for purposes which are illegal or contrary to the regulations of the facility.

(Rule 1240-08-09-.07 continued)

(a) An “Authorization to Search” may be issued when there is reasonable cause to believe that persons, objects, or materials are illegally present or in violation of Center regulations. The search authorization may be made by the Night Administrator or by the Deputy Center Director. When there is apparent danger to persons or property or a situation involving serious misconduct, any of the above persons named or any executive level staff member of the Center may authorize a search.

(b) The persons authorizing a search will normally complete the Authorization to Search Form (Form A-33) before the search is conducted. When it is not feasible to obtain a letter of authorization, oral authorization will be obtained from the Center Director or designee. The Authorization to Search will be confirmed in writing at the earliest possible time. A completed copy of the Authorization to Search Form will be filed with the Security Office and with the Office of the Center Director as soon as possible after the search. A third copy will be presented to the individual whose premises were searched. Circumstances which would authorize a search by Center officials consist of the officials observing or otherwise determining through physical senses (sound, smell, etc.) that a violation is taking place at any given time. For example, if a Center official can see illegal contraband in a resident’s room, he/she does not need the consent of the student to legally enter and confiscate the contraband.

(c) Except in apparently dangerous situations, a search will be conducted by at least two (2) persons, one of whom should be an administrative official. If feasible, the person or persons whose residence is being searched should be present during the search. A reasonable effort will be made by the Center official conducting the search to locate the student prior to conducting the search.

(d) All evidence found in such searches will be retained by the Center Security Office or by local law enforcement until disposition of the case. A statement will be given to the student listing all items seized during the search.

(e) The Center also has the option to obtain a warrant for a search by campus security or city police. In these instances, the student will be subject to the disciplinary regulations of the Center and whatever action local law enforcement deems necessary.

(2) Housing Facility Inspection. A Dormitory Supervisor will make periodic, scheduled inspections of housing facilities to see that no damage is occurring from improper cleaning, storage of food, or abuse of furnishings. As an integral part of a comprehensive rehabilitation program, room inspections will be made for students whose rehabilitation program includes vocational evaluation and work adjustment training. These inspections will be scheduled in advance. In addition, all non-honor students in vocational training will be scheduled for weekly room inspections. After thirty (30) days in honor status and evidence of proper room maintenance, room inspections may be discontinued by the student's Program Manager. These inspections are not deemed “searches.” Dormitory Supervisors will examine the facilities only for the

purpose stated.

(3) Entry for Safety and Health Inspection. The facility reserves the right of entry to dormitory rooms on an announced scheduled basis if health hazards present at the facility should necessitate such inspections.

(4) Maintenance Inspection of Center Housing Facilities. Center maintenance personnel will enter Center-owned housing facilities for routine maintenance work and in response to requests for repairs.

(5) Emergency Entry. The facility reserves the right of entry to dormitory rooms for purposes of responding to health, safety or maintenance problems of an emergency nature.

(Rule 1240-08-09-.07 continued)

(6) The "Search and Inspection Policy” of the Community Tennessee Rehabilitation Centers facilities program will follow the same policies outlined in the Search and Inspection Policy described above for the Tennessee Rehabilitation Center, except that the search authorization will be made by the Center Manager.

History

• Authority: TCA §§4-5-202; 71-1-105(12); 49-11-604.
• Administrative History: Original rule filed June 30, 1980, effective August 14, 1980. Transferred from the Department of Education by Executive Order No. 43; effective February 11, 1983. Amendment filed June 28, 1983; effective July 28, 1983. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Chapter 1240-08-10 Personal Care Assistance Program

Tenn. Comp. R. & Regs. 1240-08-10-.01 LEGAL BASIS

The legal basis for the Personal Care Assistance Program is found in Tennessee Code Annotated, Title 71, Chapter 4, Part 12; Rehabilitation Act of 1973, as amended, Sections 101(a)(6) and 103(a) 29 U.S.C. §§ 701(a)(6) and 723 (a); Code of Federal Regulations, Title 34, Sections 361.42; and Code of Federal Regulations, Title 20, Section 404.1576.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1201, et seq.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed April 22, 1997; effective July 6, 1997. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.02 DEFINITIONS

As used in this chapter, the following terms have the following meanings:

(1) “Division” means the Division of Rehabilitation Services of the Department of Human Services (also abbreviated “DRS”).

(2) “Eligibility Evaluation Team” is a team of at least two (2) persons, one (1) of whom is a licensed medical professional and one (1) of whom is a licensed occupational or physical therapist. The team is designated by the director of the Division to carry out the duties specified in Rule 1240-08-10-.05.

(3) “Employed” means engaged in activity of thirty (30) or more hours per week for which the individual receives remuneration at a rate not less than the federal minimum wage. For selfemployed individuals, the “net profit” from work activity must equate with this level of remuneration.

(4) “Family Member” means an individual's parent, grandparent, sibling, child, spouse, spouse's parent, spouse's grandparent, spouse's sibling or spouse's child.

(5) “Personal Care Assistant Services” (PCA) means services rendered at least five (5) days a week at the times of day which are required by an individual with a significant physical disability, to become physically independent in connection with actual employment. These services include, but are not limited to:

(a) Routine bodily functions, personal hygiene, bowel or bladder care;

(b) Dressing;

(c) Preparation and consumption of food;

(d) Moving into, out of, or turning in bed;

(e) Bathing;

(f) Ambulation and/or mobility; and (g) Any other similar activity of daily living as determined appropriate by the Division.

(6) “Significant Physical Disability” means a functional loss of both arms and both legs when it is anticipated that the loss will be permanent.

(7) “Ready for Employment” means an individual, who is in or has been in the rehabilitation process, has completed the rehabilitation plan, has a legitimate job offer, and is within two (2) months of remunerative employment.

(8) “Impairment Related Work Expense” means those work expenses that are impairment-related and are not reimbursed by a third party, and which are defined and allowed by Social Security Regulations in 20 C.F.R. § 404.1576.

(9) “Day Care Expense” means a work-related child care expense where the cost of child care is necessary to allow a recipient of PCA services to work.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1201, et seq.; and 20 C.F.R. § 404.1576.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed April 22, 1997; effective July 6, 1997. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.03 PURPOSE AND SCOPE

(1) These rules describe policies and procedures for providing participant-directed Personal Care Assistance (PCA) services to eligible individuals through the Division’s state-funding program.

The Program provides participant-directed PCA services to significantly disabled persons to enable them to enter or maintain remunerative employment. The Program is designed for individuals who are employed or are ready for employment (i.e., have a legitimate job offer), but who need Personal Care Assistance in order to be successful in their employment efforts.

An individual must be determined to need PCA services for not less than fourteen (14) hours per week. PCA services subsidy is limited to forty (40) hours per week.

(2) PCA Subsidies.

(a) The PCA program provides subsidies to eligible individuals who are in financial need, contingent upon the availability of funds. Eligible individuals are accepted into the Program so long as funds are available.

(b) When funds are exhausted, applications will continue to be taken, PCA evaluations performed, and the applications forwarded to the DRS State Office.

(c) A waiting list of eligible individuals will be established and maintained by a DRS staff member. Eligible individuals will be placed on the PCA program waiting list in order of the date and time their application was received. As funds become available, eligible individuals will receive services in the order they appear on the waiting list. Any individual who is not working or is otherwise ineligible or unable to participate in the PCA program must be removed from the waiting list. If he/she becomes eligible later, this individual must reapply and his/her name will be placed at the bottom of the waiting list based on date of re-application.

(3) If funds are not adequate to provide a full subsidy, a partial subsidy may be provided to the extent of available funds, except as prohibited by Rule 1240-08-10-.12. An individual receiving a partial subsidy will be the first individual on the waiting list to receive full funding when it becomes available.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1201, et seq.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.04 GENERAL ELIGIBILITY REQUIREMENTS

Subject to availability of funds, a participant-directed PCA subsidy will be provided to an individual who:

(1) Is eighteen (18) years of age or older;

(2) Has a significant disability;

(3) Is receiving or has received vocational rehabilitation services;

(4) Is employed or ready for employment;

(5) Has a need documented by PCA evaluation for not less than fourteen (14) hours a week of Personal Care Assistance, provided by one other than a family member, to enable the individual to be employed or to maintain employment;

(6) Has insufficient personal income or other support from public sources or family members, as determined under 1240-08-10-.07 and is not eligible for Personal Care Assistance under other state/federal programs;

(7) Agrees to establish an employer-employee relationship by recruiting, hiring, firing (if necessary), and supervising the person who provides PCA services;

(8) Agrees to disclose financial records pertaining to PCA program expenditures upon request by authorized Department of Human Services staff; and (9) Is able to demonstrate or establish a means to responsibly manage personal funds.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1203.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed April 22, 1997; effective July 6, 1997. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.05 APPLICATION AND ELIGIBILITY DETERMINATION

(1) Applications for PCA services may be filed at any DRS field office.

(2) A DRS staff member will meet with the applicant, and complete the application for PCA services (Form PCA-1) and the financial needs test (Form PCA-2). Verification of income is required (i.e., income tax records, paycheck stubs, Clearing House, etc.).

(3) If the applicant meets the financial needs test described in Rule 1240-08-10-.07, the DRS staff member will arrange for a PCA evaluation by the eligibility evaluation team, to determine if a need for the PCA service exists and, if so, the approximate number of hours per week.

Based on the evaluation, the eligibility evaluation team establishes the number of hours of subsidy per week the individual is to receive, and a PCA Service Plan (Form PCA-3) is developed. The non-financial eligibility determination and the determination of the hours of subsidy per week are based upon the best professional judgment of the team members.

Factors that will be considered include the individual’s ability or inability to perform normal daily tasks (as enumerated in Form PCA-4) and the time required to perform each.

(4) The individual is notified in writing of his/her eligibility for a subsidy. The individual and the DRS staff member sign the service plan, and, to the extent that funds are available, subsidy authorizations are issued by the DRS staff member.

(5) If funds are not available, the individual is notified of same in writing by the DRS staff member and given a priority standing on the waiting list based upon the application date. If a subsequent contact discloses that the individual no longer meets program eligibility requirements, that individual’s name must be removed from the waiting list. He/she would then be assigned a new priority standing based on date of application if he/she later meets eligibility requirements again.

(6) If the individual is determined ineligible to receive a PCA subsidy, he/she is notified in writing.

The notice will specify the reason for ineligibility and the right to appeal, as provided in Rule

Tenn. Comp. R. & Regs. 1240-08-10-.06 PERSONAL CARE ASSISTANCE RE-EVALUATIONS

(1) Each individual determined eligible for a Personal Care Assistance subsidy will have been evaluated by an evaluation team to determine the extent of need for Personal Care Assistance Services pursuant to Rule 1240-08-10-.05.

(2) Individuals who receive a Personal Care Assistance subsidy must be reevaluated at least annually, to determine the continuing need for PCA services and the extent of that need. If an individual is determined to be eligible for a reduced subsidy because of income changes or for fewer hours of subsidized services, the individual may receive a partial subsidy and will be notified in writing of the reduction.

(3) If an individual is determined to be ineligible following a reevaluation, he/she will be notified of such in writing as provided in Rule 1240-08-10-.05.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1201, et seq.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.07 DETERMINATION OF FINANCIAL NEED

(1) Financial need and eligibility for PCA services will be determined according to the following formula:

(a) Determine the individual's annual income, before taxes, from all sources, including wages, net profit from self-employment, interest, dividends, pensions and disability benefits such as SSDI and SSI. Do not include the spouse's income;

(b) Subtract federal income taxes from annual gross income;

(c) Subtract standard federal income tax exemptions from the remainder in subparagraph (b). Do not include spouse as an exemption if spouse's income is over five thousand dollars ($5,000) per year;

(d) Subtract FICA and mandatory pension contributions from remainder in subparagraph (c);

(e) Subtract “impairment related” work expenses not reimbursed by a third party and which are defined and allowed by Social Security Regulations in 20 C.F.R. § 404.1576. The cost of impairment related work expenses exceeding fifteen hundred dollars ($1,500)

(e.g., home or vehicle modifications, durable medical equipment such as wheelchairs) must be spread out over a period of five (5) years in equal amounts;

(f) Divide the remainder in subparagraph (e) by two (2);

(g) Subtract forty-eight hundred dollars ($4,800) from the quotient in subparagraph (f).

(2) After applying the above formula:

(a) If there is no income remaining, the program shall subsidize PCA services at the maximum allowable rate subject to a maximum of three hundred twenty dollars ($320) per week;

(b) If there is income remaining, the cost of the subsidy for PCA services provided shall be reduced by the amount of that income;

(c) If there is income remaining in excess of the maximum allowable amount for a PCA subsidy (three hundred twenty dollars ($320) per week), the individual is not eligible for a subsidy.

(3) The PCA program may supplement any other private program for Personal Care Assistance for which the individual is eligible, subject to a maximum of three hundred twenty dollars ($320) per week. The PCA program may not supplement any state or federal personal care assistance program.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1204; and 20 C.F.R. § 404.1576.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed April 22, 1997; effective July 6, 1997. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.08 AUTHORIZATION AND BILLING PROCEDURE

When PCA program eligibility has been established, along with the amount of service time needed and a plan has been developed, an Authorization and Invoice form will be issued to the individual by a DRS staff member on a monthly basis. The individual shall be provided with a sufficient quantity of “time logs” to be completed and submitted with the Authorization and Invoice form to the State Coordinator by the 15th of the following month. Any overpayment resulting from the advance payment system must be repaid by the individual.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1201, et seq.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed April 22, 1997; effective July 6, 1997. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.09 RATE OF PAYMENT FOR PCA SERVICES

(1) The maximum allowable subsidy for services of a personal care attendant is eight dollars ($8.00) per hour.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1201, et seq.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed April 22, 1997; effective July 6, 1997. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018.

Tenn. Comp. R. & Regs. 1240-08-10-.10 RESPONSIBILITIES OF INDIVIDUALS RECEIVING PCA SERVICES

As a condition of eligibility for receipt of the subsidy, individuals receiving PCA services are responsible for the following:

(1) Selecting, hiring, training, and supervising their own personal care attendants. A family member, as defined herein, may not be employed as a personal care attendant.

(2) Preparing and submitting time logs, authorizations, and other paperwork as directed by a DRS staff member.

(3) Paying the personal care attendant and accepting full responsibility for the necessary employee withholding of Social Security and Federal income tax (if the latter is applicable) from the PCA subsidy.

(4) Maintaining a financial record of payment.

(5) Promptly notifying DRS of any problems or change in the need for PCA services, or change in financial status.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1201, et seq.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1997. Amendment filed April 22, 1997; effective July 6, 1997. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.11 ANNUAL FINANCIAL REVIEW

Any significant changes in financial status must be reported by the individual throughout the year as provided in Rule 1240-08-10-.10(5). In addition, a Form PCA-2 will be sent to all individuals by DRS staff in February of each year. This form is designed to update the individual’s financial status, and must be completed and returned by June 30th of that year. Failure by the individual to complete and return the form is grounds for termination of PCA services. Individuals applying after March 1st of a year will not be subject to the annual financial review until June 30th of the year following the first full year of service.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1201, et seq.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.12 COMPARABLE BENEFITS

(1) If an individual is eligible for PCA services from any other program such as Medicaid, VA, Worker’s Compensation, etc., such comparable benefits must be used. An individual eligible or potentially eligible for PCA services under any other state/federal program must apply and provide proof of denial before being determined eligible for PCA services under the DRS program.

(2) An individual may be able to receive benefits from the DRS PCA program if he or she is eligible to receive PCA services from another private source of funding, but not if the individual receives PCA services from another state or federal program.

(3) An individual may be eligible to receive benefits from the DRS PCA program if he or she is also receiving benefits that are not PCA services from private, state, or federally funded programs that are not related to personal care assistance.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1203, et seq.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed April 22, 1997; effective July 6, 1997. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.13 TERMINATION OR REDUCTION OF SUBSIDY

A PCA subsidy may be terminated or reduced whenever a recipient fails to meet any of the eligibility requirements outlined in this chapter. If the subsidy is to be terminated or reduced, a DRS staff member will notify the individual in writing at least thirty (30) days prior to termination or reduction, giving the reasons for the action and the effective date and notifying the individual of the right to appeal that decision.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1201, et seq.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed April 22, 1997; effective July 6, 1997. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Tenn. Comp. R. & Regs. 1240-08-10-.14 APPEALS PROCESS

(1) Any applicant/recipient of services pursuant to this chapter who is aggrieved by a decision as to his/her eligibility, the number of hours approved for PCA services, and/or the amount of the subsidy has the right to request and receive an administrative review and/or a fair hearing pursuant to Chapters 1240-05-01 through 1240-05-09, provided, however, that the maximum hourly rate of the subsidy, as provided in Rule 1240-08-10-.09(1) is not appealable.

(2) An applicant/recipient of services is not required to request or receive an administrative review as a prerequisite to requesting a fair hearing.

(3) No applicant/recipient of services pursuant to this chapter may request review by the Secretary of the Federal Department of Education pursuant to 34 C.F.R. § 361.48, unless he/she is being provided vocational rehabilitation services under an Individualized Plan for Employment (IPE) pursuant to Title I of the Vocational Rehabilitation Act of 1973, as amended.

History

• Authority: T.C.A. §§ 4-5-202, 71-1-105(12), and 71-4-1201 through 71-4-1209; and 34 C.F.R. § 361.48.
• Administrative History: Original rule filed December 9, 1986; effective March 31, 1987. Amendment filed April 22, 1997; effective July 6, 1997. Amendment filed December 5, 2003; effective April 29, 2004. Repeal and new rule filed June 30, 2009; effective September 13, 2009.

Chapter 1240-08-11 Suppported Employment Services Program

Tenn. Comp. R. & Regs. 1240-08-11-.01 PURPOSE

The Department of Human Services, Division of Rehabilitation Services (DRS), Vocational Rehabilitation (VR) Program is the designated state entity for the administration of Supported Employment Services under Title VI of the Rehabilitation Act of 1973, as amended by the Workforce Innovation and Opportunity Act. This chapter sets forth the guidelines of the VR Program for Supported Employment Services.

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105(a)(12); PL 93-112, as amended by PL 99-506; and 34 C.F.R. §§ 361 and 363.1, et seq.
• Administrative History: Original rule filed August 22, 1988; effective November 29, 1988. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-11-.02 DEFINITIONS

(1) “Supported Employment” means competitive integrated employment including customized employment when appropriate, or employment in an integrated work setting in which an individual with a most significant disability, including a youth with a most significant disability, is working on a short-term basis toward competitive integrated employment that is individualized and customized consistent with the unique strengths, abilities, interests, and informed choice of the individual, including with ongoing support services for individuals with the most significant disabilities:

(a) For whom competitive integrated employment has not historically occurred, or for whom competitive integrated employment has been interrupted or intermittent as a result of a significant disability; and (b) Who, because of the nature and severity of their disabilities, need intensive supported employment and extended services after the transition from support provided by VR, in order to perform this work; or (c) Who may require transitional employment services for individuals with the most significant disabilities due to mental illness consisting of sequential placement and support, coordination with mental health services to integrate an individual’s mental health treatment with career development and placement, and job stabilization.

(2) “Extended Services” means ongoing job supports and other appropriate services that are:

(a) Needed to support and maintain an individual with a most significant disability, including a youth with a most significant disability, in supported employment;

(b) Organized or made available, singly or in combination, in such a way as to assist an eligible individual in maintaining supported employment;

(c) Based on the needs of an eligible individual, as specified in an IPE;

(d) Provided by a State agency other than VR, a private nonprofit organization, employer, or any other appropriate resource, including natural supports, after an individual is stable on the job and has made the transition from support from VR;

(e) Provided at a minimum, twice-monthly monitoring at the worksite, or under specific circumstances, off-site monitoring, of each individual in supported employment to assess employment stability and to provide for the coordination and provision of specific services at or away from the worksite that are needed to maintain employment stability;

(f) Provided to a youth with a most significant disability for a period not to exceed four years, or at such time that a youth reaches age 25 and no longer meets the definition of a youth with a disability, whichever occurs first. VR may not provide extended services to an individual with a most significant disability who is not a youth with a most significant disability.

(3) “Plan for Supported Employment” means an IPE developed in accordance with Rule 1240- 08-04-.03 that also:

(a) Specifies the supported employment services to be provided by VR;

(b) Specifies the expected extended services needed, which may include natural supports;

(c) Identifies the source of extended services or, to the extent that it is not possible to identify the source of extended services at the time the IPE is developed, includes a description of the basis for concluding that there is a reasonable expectation that those sources will become available;

(d) Provides for periodic monitoring to ensure that the individual is making satisfactory progress toward meeting the weekly work requirement established in the IPE by the time of transition to extended services;

(e) Provides for the coordination of services provided under an IPE with services provided under other individualized plans established under other Federal or State programs;

(f) To the extent that job skills training is provided, identifies that the training will be provided on site; and (g) Includes placement in an integrated setting for the maximum number of hours possible based on the unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice of individuals with the most significant disabilities.

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105(a)(12); PL 93-112, as amended by PL 99-506; and 34 C.F.R. §§ 361, 361.5, and 363.6.
• Administrative History: Original rule filed August 22, 1988; effective November 29, 1988. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-11-.03 ELIGIBILITY FOR SUPPORTED EMPLOYMENT

(1) The VR Counselor determines eligibility for supported employment based on an exploration, including a review of existing information, of the individual’s abilities, capabilities, and capacity to perform in work situations.

(2) An individual who is eligible for supported employment must meet the eligibility criteria for VR services in Rule 1240-08-04-.02. The individual must also be placed in the Most Significantly Disabled Category as outlined in Rule 1240-08-05-.01.

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105(a)(12); PL 93-112, as amended by PL 99-506; and 34 C.F.R. §§ 361, 361.5, and 363.1, et seq.
• Administrative History: Original rule filed August 22, 1988; effective November 29, 1988. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-11-.04 PROVISION OF SERVICES

(1) Supported employment services are provided on-the-job following a determination by VR and a registered CRP of an eligible individual’s rehabilitation, employment, and ongoing support needs and described in an IPE plan for supported employment. Supported employment services under the federal grant include job training, services required because of the individual’s intensive support needs on the job, and ongoing job supports.

(2) Supported employment services may be provided by VR for a period of time not to exceed twenty-four (24) months unless, under special circumstances, the eligible individual and the VR Counselor jointly agree to extend the time to achieve the employment outcome identified in the IPE.

(3) Supported employment services must be provided in accordance with VR requirements by a registered CRP with the appropriate training certification.

(4) Part-time placements of less than fifteen (15) hours per week must be approved by VR for meeting all CIE requirements.

(5) Ongoing job supports are based on individual need required to support and maintain an individual with a most significant disability in supported employment and furnished by VR from the time of job placement until the individual is stable on the job and transitions from VR services to extended services. An individual is considered to be stable on the job when ongoing job supports have been reduced to a minimum for the individual to maintain employment.

(6) Post-employment services may be provided in accordance with Rule 1240-08-04-.07.

(7) Extended services determined to be necessary for an individual to maintain employment are provided by a State agency other than VR, a private nonprofit organization, employer, or any other appropriate resource, including natural supports.

(8) Extended services for youth may be funded by a State agency other than VR or other resources; provided by natural supports; or funded by VR provided there are no other means of funding for providing the extended services and the youth has not declined VR providing extended services. If VR funds extended services for a youth with a disability, the case will not be closed until the time period for providing extended services ends.

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105(a)(12); PL 93-112, as amended by PL 99-506; and 34 C.F.R. §§ 361, 361.5, and 363.1, et seq.
• Administrative History: Original rule filed August 22, 1988; effective November 29, 1988. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed October 5, 2017; effective January 3, 2018. Amendments filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-11-.05 CASE CLOSURE

(1) An individual is considered to have achieved a successful supported employment outcome when the individual has achieved CIE; completed all supported employment services based on the individual’s strengths, abilities and interests and as listed on the individual’s IPE; transitioned to extended services; and maintained employment for at least ninety (90) days after transitioning to extended services.

(2) The decision for closing a case will be made by VR on an individual basis in accordance with VR policy.

History

• Authority: T.C.A. §§ 4-5-202 and 71-1-105(a)(12); PL 93-112, as amended by PL 99-506; and 34 C.F.R. §§ 361 and 363.1, et seq.
• Administrative History: Original rule filed August 22, 1988; effective November 29, 1988. Amendment filed July 12, 2002; effective September 25, 2002. Repeal and new rule filed June 30, 2009; effective September 13, 2009. Amendments filed February 29, 2024; effective May 29, 2024.

Chapter 1240-08-12 Independent Living

Tenn. Comp. R. & Regs. 1240-08-12-.01 PURPOSE

The Department of Human Services, Division of Rehabilitation Services (DRS), Vocational Rehabilitation (VR) Program is the designated state entity for the administration of the Independent Living and Independent Living Older Blind (age 55 and older) Federal grant authorized by the Rehabilitation Act of 1973, as amended by the Workforce Innovation and Opportunity Act of 2014, 29 U.S.C. §§ 720 et seq. for whom significant visual impairments make competitive employment extremely difficult to attain but for whom independent living goals are feasible through services that enable individuals to live as independently as possible in their homes and communities. This chapter sets forth the guidelines for Independent Living Services.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); Rehabilitation Act of 1973 Sections 751-753, as amended (codified in 29 U.S.C. 796j-7961); 34 C.F.R. Parts 361, 364, 365, and 367; 45 C.F.R. Part 1329; and Executive Order No. 43 (1983).
• Administrative History: New rules filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-12-.02 DEFINITIONS

(1) Independent Living Services Plan (ILSP) means a plan of service that is developed jointly with the individual and the Rehabilitation Teacher that has intermediate objectives, planned corresponding services, equipment needed to enhance independence, and the duration of services designed to permit individuals to carry out their daily living activities, to manage their lives more efficiently within their environment, and to reach their potential for independence, self-esteem and productivity.

(2) Rehabilitation Teacher means qualified staff that assist and support individuals with visual impairments to maximize their ability to live independently in the home and the community.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); Rehabilitation Act of 1973 Sections 751-753, as amended (codified in 29 U.S.C. 796j-7961); 34 C.F.R. Parts 361, 364, 365, and 367; 45 C.F.R. Part 1329; and Executive Order No. 43 (1983).
• Administrative History: New rules filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-12-.03 ELIGIBILITY FOR INDEPENDENT LIVING

(1) The Rehabilitation Teacher determines eligibility for Independent Living and Independent Living Older Blind services based on:

(a) The presence of a significant disability related to the loss of vision;

(b) The presence of a severe limitation in the ability to function independently in family and/or community; and May, 2024 2 (c) There is a reasonable expectation that Rehabilitation Teaching services will significantly assist the individual to improve his/her ability to function independently in the family, and/or community.

(2) For purposes of determining eligibility for services, an individual is considered to be significantly disabled if one of the following criteria is met:

(a) Blindness, both eyes, no light perception.

(b) Blindness, both eyes, with correction no more than 20/200 in the better eye or limitation in visual field within 20 degrees.

(c) Blindness, one eye, other eye defective (better eye with correction 20/60 or less, or corresponding loss in visual field (60 degrees or less).

(d) Other visual impairment wherein the corrected vision will not permit the individual to obtain a driver’s license for visual reasons.

(3) Referrals of individuals whose goal is competitive employment should be coordinated with the appropriate VR staff.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); Rehabilitation Act of 1973 Sections 751-753, as amended (codified in 29 U.S.C. 796j-7961); 34 C.F.R. Parts 361, 364, 365, and 367; 45 C.F.R. Part 1329; and Executive Order No. 43 (1983).
• Administrative History: New rules filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-12-.04 PROVISION OF SERVICES

(1) Independent living services are based on individual need and are provided in the individual’s home and community in accordance with the ILSP. Independent living services may include counseling and guidance, assessment for eligibility and to identify needs, independent living training, low vision training and devices, assistive devices and equipment, information about and referral for other appropriate services, basic mobility training, certified orientation and mobility evaluation and training, and transportation training.

(2) Services are provided or coordinated by the Rehabilitation Teacher.

(3) The availability of comparable services and benefits must be determined for purchased services.

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); Rehabilitation Act of 1973 Sections 751-753, as amended (codified in 29 U.S.C. 796j-7961); 34 C.F.R. Parts 361, 364, 365, and 367; 45 C.F.R. Part 1329; and Executive Order No. 43 (1983).
• Administrative History: New rules filed February 29, 2024; effective May 29, 2024.

Tenn. Comp. R. & Regs. 1240-08-12-.05 CASE CLOSURE

(1) A case may be closed if the individual has completed an ILSP insofar as possible and has been determined to have improved the ability to function independently in the home, or to engage in employment, or until the ILSP has been terminated due to death or a determination has been made that the individual has not or will not be expected to function more independently in the family and/or community.

(2) The decision for closing a case will be made by the Rehabilitation Teacher on an individual

basis.

May, 2024 3

History

• Authority: T.C.A. §§ 4-5-202, 49-11-601, et seq., and 71-1-105(a)(12); Rehabilitation Act of 1973 Sections 751-753, as amended (codified in 29 U.S.C. 796j-7961); 34 C.F.R. Parts 361, 364, 365, and 367; 45 C.F.R. Part 1329; and Executive Order No. 43 (1983).
• Administrative History: New rules filed February 29, 2024; effective May 29, 2024.

Chapter 1240-08-13 Title IX Compliance

Tenn. Comp. R. & Regs. 1240-08-13-.01 STATEMENT OF NONDISCRIMINATION ON THE BASIS OF SEX

The Tennessee Rehabilitation Center at Smyrna (TRCS) will comply with Title IX of the Education Amendment of 1972 and the regulations implementing this Act found at 34 C.F.R. Part 106 as amended in 2020.

History

• Authority: T.C.A. §§ 4-5-101, et seq., 4-5-202, et seq., 49-11-604, and 49-11-801, et seq.; 20 U.S.C. §§ 1681-1688; and 34 C.F.R. Part 106.
• Administrative History: New rules filed February 5, 2026; effective May 6, 2026.

Tenn. Comp. R. & Regs. 1240-08-13-.02 DEFINITIONS

(1) Complainant – A person who is alleged to be the victim of conduct that could constitute sexual harassment. A complainant may also be referred to as a party.

(2) Consent – An active agreement to participate in a sexual act. An active agreement is words and/or actions that indicate a willingness to participate in a sexual act. Consent cannot be given by an individual who is asleep; unconscious; or mentally or physically incapacitated, either through the effect of drugs or alcohol or for any other reason; or is under duress, threat, coercion, or force. Past consent does not imply future consent. Silence or an absence of resistance does not imply consent. Consent can be withdrawn at any time.

(3) Education program or activity – (a) Buildings or other locations that are part of the school’s operations, including remote learning platforms;

(b) Off-campus settings if the school exercised substantial control over the respondent and the context in which the alleged sexual harassment occurred (e.g., a school field trip to a museum); and (c) Off-campus buildings owned or controlled by a student organization officially recognized by a postsecondary school, such as a building owned by TRCS.

(4) Force/Forced – Words and/or conduct that, viewed from the perspective of a reasonable person, substantially impair(s) a person’s ability to voluntarily choose whether to take an action or participate in an activity. Examples of force include, without limitation: physical force (e.g., hitting, punching, slapping, kicking, restraining, choking, kidnapping, using a weapon, blocking access to an exit);

(a) Words and/or conduct that would cause a reasonable person to fear:

May, 2026 2 1. Physical force or other harm to the person’s health, safety, or property, or a third person’s health, safety, or property;

2. Loss or impairment of an academic benefit, employment benefit, or money;

3. Disclosure of sensitive personal information or information that would harm a person’s reputation;

4. Disclosure of video, audio, or an image that depicts the person’s nudity or depicts the person engaging in a sexual act(s); or 5. Other immediate or future physical, emotional, reputational, financial, or other harm to the person or a third person.

(5) Formal complaint – A document filed by a complainant or signed by the Title IX Coordinator alleging sexual harassment against a respondent and requesting that the TRCS or the TRCS institution investigate the allegation. At the time of filing a formal complaint, a complainant either must be participating in or attempting to participate in the TRCS or TRCS institution’s education program or activity implicated by the formal complaint.

(6) Incapacitation – A person lacks the ability to actively agree to a sexual act because the person is asleep, unconscious, under the influence of an anesthetizing or intoxicating substance such that the person does not have control over their body, is otherwise unaware that a sexual act is occurring, or their mental, physical, or developmental abilities renders them incapable of making a rational informed judgment. Incapacitation is not the same as legal intoxication.

(7) Respondent – A person who has been alleged to be a perpetrator of conduct that could constitute sexual harassment. A respondent may also be referred to as a party.

(8) Retaliation – To intimidate, threaten, coerce, or discriminate against any individual for the

purpose of interfering with any right or privilege secured by these rules or by Title IX, or because the individual has made a report or complaint, testified, assisted, or participated or refused to participate in any manner in an investigation, proceeding, or hearing. Intimidation, threats, coercion, or discrimination, including charges against an individual that do not involve sex discrimination or sexual harassment, but arise out of the same facts or circumstances as a report or complaint of sex discrimination, or a report or formal complaint of sexual harassment, for the purpose of interfering with any right or privilege secured by these rules constitutes retaliation.

(9) Sexual harassment – Conduct on the basis of sex that satisfies one (1) or more of the following:

(a) An employee of TRCS conditioning the provision of an aid, benefit, or service on an individual’s participation in unwelcome sexual conduct;

(b) Unwelcome conduct of a sexual nature determined by a reasonable person to be so severe, pervasive and objectively offensive that it effectively denies a person equal access to the institution’s education program or activity; or (c) Sexual assault as defined by federal law, dating violence as defined by federal law, domestic violence as defined by state or federal law, or stalking as defined by federal law.

(10) Tennessee Rehabilitation Center at Smyrna (TRCS) – A resource and residential campus for adult learners with disabilities who are ready to build job skills, gain certifications or achieve credentials that lead to employment success in the current labor market. Operated by the Division of Rehabilitation Services at the Tennessee Department of Human Services, the May, 2026 3 center utilizes a Career and Technical Education approach and offers Employment Development Skills courses that emphasize customer service, self-advocacy, social, wellness and soft skills necessary to maintain employment and elevate independence. The center also provides Transitional Services for the Blind that focus on functional and foundational skills for students who are blind or visually impaired.

History

• Authority: T.C.A. §§ 4-5-101, et seq., 4-5-202, et seq., 49-11-604, and 49-11-801, et seq.; 20 U.S.C. §§ 1681-1688; and 34 C.F.R. Part 106.
• Administrative History: New rules filed February 5, 2026; effective May 6, 2026.

Tenn. Comp. R. & Regs. 1240-08-13-.03 EQUITABLE TREATMENT

(1) No Title IX Coordinator, investigator, decision-maker, person designated to facilitate an informal resolution process, or anyone deciding an appeal shall have a conflict of interest or bias for or against complainants or respondents generally, or against an individual complainant or respondent.

(2) The Title IX Co-Coordinators are responsible for appointing investigators and informal resolution mediators and may appoint someone outside of the TRCS institution or someone not employed by the TRCS institution in order to avoid potential bias, a potential conflict of interest, or for other reasons. In the event of a conflict of interest or potential bias of the Title IX Coordinator, or if the Title IX Coordinator believes that another person should serve in that role for other reasons, the TRCS Superintendent and/or Assistant Superintendent shall be responsible for appointing someone to serve the functions of the Title IX Coordinator. The decision-makers, responsible for making a determination of responsibility as to the formal complaint or allegations therein, and decision-makers for the appeal of any such determination will be appointed by the Appeals and Hearings division of the Tennessee Department of Human Services.

(3) TRCS will provide a prompt, fair, and impartial investigation, adjudication, and, if applicable, disciplinary process. TRCS will treat complainants and respondents equitably, which includes an objective evaluation of all relevant evidence, including evidence that tends to prove or disprove the allegations.

(4) Credibility determinations will not be based on a person’s status as a complainant, respondent, or witness.

(5) The investigation shall proceed with a presumption that a respondent is not responsible for the alleged conduct unless and until a determination of responsibility for a violation is made at the conclusion of the decision-making process. The burden of proof and the burden of gathering evidence sufficient to reach a determination regarding responsibility for sexual harassment rests with TRCS. The parties do not carry the burden of proof.

(6) The TRCS shall provide simultaneous written notification to the parties of:

(a) Any initial, interim, or final decision by an official authorized to resolve disciplinary matters;

(b) Any available appeal procedures for that decision;

(c) Any change to that decision; and (d) When that decision becomes final.

(7) The parties will receive timely and equal access to information.

May, 2026 4 (8) TRCS will not restrict any rights protected by the First Amendment to the U.S. Constitution or restrict any other rights guaranteed by the U.S. Constitution or State of Tennessee Constitution.

History

• Authority: T.C.A. §§ 4-5-101, et seq., 4-5-202, et seq., 49-11-604, and 49-11-801, et seq.; 20 U.S.C. §§ 1681-1688; and 34 C.F.R. Part 106.
• Administrative History: New rules filed February 5, 2026; effective May 6, 2026.

Tenn. Comp. R. & Regs. 1240-08-13-.04 REPORTING SEXUAL HARASSMENT

(1) Applicability (a) Allegations of sexual discrimination or harassment that do not meet the definition of sexual harassment in these rules or otherwise do not meet the criteria for filing a formal complaint will be handled in accordance with Tenn. Rules & Regs. Ch.1240-08-09-.01.

(b) Upon receiving and assessing a report of sexual harassment and/or other sexual discrimination or harassment, the Title IX Coordinator will decide whether the criteria for proceeding under these rules, procedures, and processes are met and whether additional rules, procedures and processes may apply.

(c) These rules apply not only to conduct by students, faculty, and staff, but also to conduct by third parties, such as vendors with whom the institution contracts to provide services, and campus visitors.

(2) Reporting to Title IX Coordinator (a) Any person may report sexual harassment to the Title IX Coordinator at any time, including but not limited to, during non-business hours, by using the telephone number or electronic mail address, or office mail address listed for the Title IX Coordinator.

(b) Although reports and complaints of sexual harassment may be made at any time, reports should be made as soon as possible so that the institution is best able to address the allegation.

(c) TRCS shall publish its Title IX Coordinator’s name and contact information (mailing address, phone number, email address, etc.) in institutional materials and on its website.

(3) Supportive and Interim Measures (a) After receiving a report of potential sexual harassment, whether or not the report is a formal complaint, the Title IX Coordinator will contact the complainant to discuss the availability of interim/supportive measures, inform the complainant of their availability, and consider the complainant’s wishes with respect to potential interim/supportive measures. The Title IX Coordinator will also explain the process for filing a formal complaint.

(b) The Title IX Coordinator may implement interim, supportive, or protective measures while assessing, investigating, and resolving the report. These interim/supportive measures are non-disciplinary, non-punitive, individualized services and are offered without fee or charge to the complainant and/or respondent before or after the filing of a formal complaint or where no formal complaint has been filed.

(c) Interim/supportive measures are designed to restore or preserve equal access to the institution’s programs or activities without unreasonably burdening the other party and may include measures designed to protect the safety of all parties or the institution’s May, 2026 5 educational environment or deter sexual harassment.

(d) These measures may include, but are not limited to: living space location reassignments; mutual no-contact directives; access to counseling services and assistance in setting up an initial appointment; changing schedules, assignments, or job/study locations to lessen or minimize contact; extensions of deadlines and course-related adjustments; limiting or barring an individual’s or organization’s access to certain institutional facilities or activities; providing academic support services, such as tutoring; administrative leave; leaves of absence; institution-imposed leave or physical separation from individuals or locations.

(e) TRCS will maintain the confidentiality of such interim/supportive measures, to the extent that it can do so without impairing its ability to effectuate the interim/supportive measures or to investigate and adjudicate the complaint.

(4) Formal Complaint (a) Any person alleging to be a victim of sexual harassment that took place within an education program or activity of TRCS in the United States may file a formal complaint.

(b) A complainant who wants TRCS to conduct an investigation and take action in accordance with these rules must file a formal complaint alleging sexual harassment.

The Title IX Coordinator may also file a formal complaint.

(c) A complainant must submit a written formal complaint in person, by mail, or via electronic mail to the Title IX Coordinator. The document must contain the complainant’s physical signature or a digital signature. A formal complaint cannot be submitted anonymously.

Only the Title IX Coordinator can submit a formal complaint on behalf of another person.

(d) Although TRCS will consider the wishes of complainants, including that no investigation be conducted, TRCS will also consider their obligations under TRCS rules and applicable law. Thus, when the Title IX Coordinator receives a report of sexual harassment, the Title IX Coordinator may decide to investigate the matter, even if the complainant does not want the report investigated. If the Title IX Coordinator decides to file a formal complaint, the Title IX Coordinator is not a party to any investigation, determination or hearing process.

(e) Complainants should provide as much of the following information as possible: what happened, where, and when; names of all people involved, including witnesses (if any); supporting documentation (if any); and contact information. TRCS encourages reporting of sexual harassment even if some or all information is unavailable or cannot be provided. The Title IX Coordinator will explain their role, the options for reporting an incident, potential available interim/supportive measures, and the available resources for assistance.

(5) No Retaliation (a) Retaliating against a person who makes a report or files a complaint, participates or assists in an investigation, encourages another to file a complaint, or opposes sexual harassment (or any other form of unlawful discrimination or harassment) is prohibited.

Neither students nor anyone acting on a student’s behalf is permitted to interfere with an investigation. Retaliation or interference will result in disciplinary sanctions consistent with these rules and other rules.

(b) Retaliation is a violation of these rules regardless of whether the underlying allegation is ultimately found to have merit.

May, 2026 6

History

• Authority: T.C.A. §§ 4-5-101, et seq., 4-5-202, et seq., 49-11-604, and 49-11-801, et seq.; 20 U.S.C. §§ 1681-1688; and 34 C.F.R. Part 106.
• Administrative History: New rules filed February 5, 2026; effective May 6, 2026.

Tenn. Comp. R. & Regs. 1240-08-13-.05 INVESTIGATIONS AND OUTCOMES

(1) Intake and Assessment of Formal Complaints (a) The Title IX Coordinator will assess the nature of reports and formal complaints, including whether one (1) or more allegations meet the criteria for the filing of a formal complaint.

Formal complaints that include some allegations that, if proved, constitute sexual harassment and some that do not meet that definition will be investigated pursuant to these and other applicable rules, procedures, and processes and adjudicated in accordance with these and other applicable rules, procedures, and processes. As appropriate, the Title IX Coordinator may initiate proceedings under these rules, refer the matter to another department, and/or inform the complainant about the availability of other methods to address the allegations.

(b) As part of the assessment, the Title IX Coordinator or designee may contact the complainant and ask for information about the allegations. Supporting documents, such as emails, photos, text messages, and any other evidence should be preserved. If witnesses were present or have relevant knowledge, it is important to identify them, state what they may know, and inform the investigator how they can be contacted.

(c) Where formal complaints involving more than one (1) complainant and/or more than one (1) respondent arise out of the same facts and circumstances, the Title IX Coordinator may consolidate formal complaints.

(d) If it appears, based on an allegation of sexual harassment, that a student may constitute an immediate and direct threat to the physical health or safety of another individual, the institution will conduct an individualized inquiry and risk analysis and may place the student on interim suspension on an emergency basis. If the institution implements an interim suspension, the student shall be given the opportunity at the time of the decision, or as soon thereafter as reasonably possible, to contest the interim suspension.

Institutions shall follow the procedures set forth in Tenn. Rules & Regs. Ch.1240-08-09- .06.

(e) Participation in the formal complaint process by a complainant, respondent, institution, or other person does not waive applicable privileges, including attorney-client privilege, doctor-patient privilege, the peer review/quality improvement privilege, etc. The holder of a privilege may waive it in certain circumstances.

(2) Notice of Allegations (a) Upon receipt of a formal complaint, the Title IX Coordinator will provide written notice to known parties. A notice of allegations will be provided even if the formal complaint is dismissed at the same time or shortly after the notice of allegations issues (e.g., the allegations if proven do not meet the definition of sexual harassment). The notice of allegations will enable both parties to appeal the dismissal or to proceed under another

rule. The notice of allegations shall contain:

1. An explanation of the investigation and grievance process;

2. The availability of an informal resolution process;

May, 2026 7 3. Explanation of the allegations potentially constituting sexual harassment in sufficient detail and with sufficient time to prepare a response before any initial interview;

4. The identity of the parties involved in the incident, if known, and the date and location of the alleged incident;

5. A statement that the respondent is presumed not responsible for the alleged conduct unless and until a determination of responsibility has been issued;

6. A statement that the parties may have an advisor of their choice at meetings they are permitted to attend. The advisor may be, but is not required to be, an attorney.

(Parties may hire their own attorneys. At a live hearing only, TRCS will provide advisors to parties who do not have their own advisor);

7. Prohibitions against knowingly making false statements or knowingly submitting false information; and 8. A statement that retaliation against a person who makes a report or files a complaint, participates or assists in an investigation, encourages another to file a complaint, or opposes sexual harassment is prohibited and will result in disciplinary sanctions, up to and including dismissal.

(b) If, during the course of an investigation, the institution decides to investigate allegations about the complainant or respondent that are not included in the notice of allegations, the institution will provide additional written notice of allegations to known parties.

(3) Dismissal of Formal Complaints (a) If the Title IX Coordinator concludes that the complainant was not participating in or attempting to participate in a TRCS program or activity at the time of the formal complaint or that the conduct alleged in a formal complaint would not constitute sexual harassment even if proved, did not occur in an institution’s education program or activity, or did not occur against a person while in the United States, the Title IX Coordinator shall dismiss the formal complaint.

(b) The Title IX Coordinator may dismiss a formal complaint or any allegations in it, if at any time during the investigation or hearing a complainant notifies the Title IX Coordinator in writing that the complainant would like to withdraw the formal complaint or any allegations in it; the respondent is no longer enrolled by, employed by, or associated with TRCS; or specific circumstances prevent the TRCS from gathering evidence sufficient to reach a determination as to the formal complaint or allegations therein.

(c) The Title IX Coordinator may decide to dismiss a formal complaint of sexual harassment and refer the matter for disposition pursuant to a different rule when an allegation of sexual harassment is dismissed or when a formal complaint ceases to include an allegation of sexual harassment.

(d) Upon dismissal of a formal complaint for any reason, the Title IX Coordinator will promptly send written notice explaining the reasons for dismissal to the parties. The dismissal notice will also explain whether TRCS will investigate or respond to the allegations under another rule.

(4) Informal Resolutions (a) Because a full investigation and adjudication process may not be in the best interests of May, 2026 8 all concerned, the Title IX Coordinator may decide to offer an informal resolution process.

The informal resolution process is designed to provide flexibility in creating a resolution to a formal complaint that meets the needs of the parties and the institution. Informal resolutions may include meetings facilitated by TRCS or third parties, resolutions facilitated by the Title IX Coordinator without formal meetings, mediations, and/or restorative justice concepts. Disciplinary action may or may not be part of any informal resolution. The parties must agree in writing to participate in any informal resolution process that the Title IX Coordinator may offer.

(b) An informal resolution process is only available after the filing of a formal complaint and prior to a determination regarding responsibility. If the Title IX Coordinator believes an informal resolution may be appropriate, the Title IX Coordinator will propose an informal resolution process in either the initial notice of allegations or a subsequent written document. The Title IX Coordinator may discuss with the parties the details of how the process will work. The written notice will contain the allegations or refer to the notice of allegations; set out the informal resolution process; explain that at any time prior to agreeing to a resolution, the complainant, respondent, or the institution may withdraw from the informal resolution process and resume the investigation and adjudication process; and identify any records that will be maintained or shared related to the process.

(c) The Title IX Coordinator shall not offer or facilitate an informal resolution process to resolve allegations that an institution employee engaged in sexual harassment against a student.

(5) Investigation of Formal Complaints (a) TRCS will investigate all formal complaints, unless dismissed or resolved.

1. The institution will not access, consider, disclose, or otherwise use a party’s records that are made or maintained by a physician, psychiatrist, psychologist, or other recognized professional acting in the professional’s capacity and made or maintained in connection with the treatment to the party, unless the party voluntarily consents in writing.

2. The investigator will conduct an investigation that is appropriate under the circumstances. The investigation will include a review of documents and physical evidence, as well as interviews with the parties and other witnesses, unless they decline to be interviewed. The investigator may request access to premises, records, and documents deemed relevant. As the investigation progresses, the investigator may seek clarification, including during a subsequent interview, from any person participating in the investigation regarding the incident or their statement. A party who learns or remembers any additional information should notify the investigator immediately. The parties will have an equal opportunity to provide evidence and to identify witnesses, including fact and expert witnesses.

Parties are encouraged to provide, as soon as possible, any evidence that the party believes to be relevant and wants the investigator to consider. If at all possible, a party should provide evidence in time for the investigator to make that evidence available for inspection and review in accordance with these rules.

3. Although the parties are encouraged to provide the institution with information and evidence related to the allegations, the institution is ultimately responsible for gathering evidence sufficient to reach a determination regarding responsibility.

4. TRCS will not restrict the parties from discussing the allegations under investigation or from gathering and presenting relevant evidence. Any restrictions on the ability of the parties to discuss matters related to the proceeding but which May, 2026 9 are not under investigation will be explained in the notice of allegations.

5. Each party will have the opportunity to obtain and to be accompanied to a meeting or proceeding by an advisor of their choice, who may, but is not required to be, an attorney.

6. When a party is invited or expected to participate in a meeting, interview, or hearing, the institution will provide written notice of the date, time, location, participants, and purpose of the meeting, interview, or hearing, with sufficient time for the party to prepare to participate.

7. Both parties will have an equal opportunity to inspect and review any evidence obtained as part of the investigation that is directly related to the allegations raised in a formal complaint, including evidence that is directly related to the allegations but upon which the institution does not intend to rely in reaching a determination regarding responsibility. The institution will include both evidence that tends to prove and disprove the allegations, whether obtained from a party or other source, so that each party can meaningfully respond to the evidence prior to the conclusion of the investigation.

8. Prior to the completion of an investigation report, the institution will send to each party the evidence subject to inspection and review. Unless a party requests that the institution not do so, the institution will also send the evidence to each party’s advisor who has been identified. An institution may decide to provide access to evidence through electronic means that is not available for download. In such case, the parties and their advisors are prohibited from, directly or indirectly, photographing or reproducing such evidence (unless the party has access to the evidence independent of the portal, e.g., documents submitted by the party or publicly available information).

9. The institution will provide at least ten (10) calendar days for the parties to respond to the evidence provided for inspection and review. The investigator will share any written response with the other party and will consider any written response prior to completing the investigative report.

(6) Written Report (a) At the conclusion of the investigation, the investigator will prepare a written report. The report shall:

1. Identify the allegations;

2. Identify relevant rules;

3. Explain the procedural steps taken between receipt of the formal complaint and the conclusion of the investigation, including all notifications to the parties, interviews with the parties, interviews with other witnesses, dates of all interviews, any site visits, and the methods used to gather evidence; and 4. Fairly summarize the relevant evidence.

(b) The written report shall not make findings of fact or conclusions regarding the application of facts to these rules.

(c) At least ten (10) calendar days prior to a hearing, the investigator will send to each party the investigation report for review and written response. Unless a party requests that the May, 2026 10 institution not do so, the institution will also send the investigation report to an advisor whom the party has been identified.

(d) The parties should provide any written response within five (5) calendar days. The investigator may issue an amended investigation report if the investigator deems appropriate and if a party provides comments in sufficient time for the investigator to do so. The parties’ written responses and any amended investigation report will be sent to the decision-maker.

(7) Advisors (a) Both the complainant and the respondent will be permitted to have an advisor of their choosing present during meetings, interviews, or hearings where their attendance is permitted or expected. Nothing in these rules shall be read to require that TRCS allow a party to attend an interview of the other party or of a witness.

(b) The advisor may accompany and confer privately with a party, but the advisor may not interrupt, speak on behalf of a party, or otherwise actively participate in any meeting, except for conducting cross-examination at a live hearing.

(c) An advisor’s failure to comply may result in the termination of the meeting or the advisor no longer being permitted to be present.

(d) TRCS and institutional personnel employed in the offices responsible for the disciplinary proceedings described in these rules, personnel employed by the Office of General Counsel, and others whose participation could create a conflict of interest with their duties are not eligible to serve as advisors. The institution shall not otherwise limit the choice of an advisor.

(e) If there is a question or concern about a possible advisor, the Title IX Coordinator should be consulted. A party choosing to have an attorney present as an advisor must provide advance notice.

(8) Recordings (a) Parties are not permitted to record any meeting conducted pursuant to these rules. The investigator may record meetings.

(b) When a live hearing is conducted, the institution will create an audio recording, audiovisual recording, or transcript and make it available to the parties for inspection and review.

(9) Past Relationships and Conduct (a) Previous sexual relationships of the complainant and respondent with third parties generally are irrelevant.

(b) A past sexual relationship between the complainant and respondent may or may not be relevant. For example, past sexual encounters may provide insight on communication patterns for purposes of determining whether consent was present.

(c) Questions and evidence about a complainant’s sexual predisposition or prior sexual behavior are not relevant unless such questions and evidence about the complainant’s prior sexual behavior are offered to prove that someone other than the respondent committed the conduct alleged by the complainant, or if the questions and evidence concern specific incidents of the complainant’s prior sexual behavior with respect to May, 2026 11 respondent and are offered to prove consent.

(10) Standard of Evidence (a) In evaluating whether sexual harassment occurred, institutions shall use the preponderance of the evidence standard. A “preponderance of the evidence” means the greater weight of the evidence or that, according to the evidence, the conclusion sought by the party with the burden of proof is the more probable conclusion.

(b) The burden of proof will remain with the institution through the determination.

(11) Timeline (a) Formal complaints typically will be resolved (exclusive of any appeals) within ninety (90) calendar days of filing.

(b) Appeals typically will be resolved within thirty (30) calendar days of the filing of an appeal.

(c) Given the many variables and factors that may arise in such cases, additional time may be needed in some cases. Any departure from these time frames will be for good cause and communicated in writing or by email to both the complainant and the respondent simultaneously, along with a new timeline and explanation of the reasons. Good cause to extend the deadlines includes, but is not limited to, the absence of a party, a party’s advisor, or witness; concurrent law enforcement activity; or the need for language assistance or the accommodation of disabilities.

(d) Incompletion of the process within such time frames is not cause for dismissal of a formal complaint.

(12) Parallel Investigations with Law Enforcement (a) The filing of a police report or the pendency of civil or criminal proceedings does not preclude the institution from proceeding with its investigation and determination.

(b) The investigation and determination may be delayed until law enforcement has finished gathering evidence and indicated that the institution may proceed with an investigation, but the institution generally will not wait for the conclusion of any criminal proceeding.

(c) Civil or criminal proceedings are separate and distinct from internal institutional proceedings, and they may or may not run parallel to each other. However, the institution may be required by law to provide information in civil or criminal proceedings.

(13) Live Hearings (a) The institution will conduct a live hearing of formal complaints not dismissed in order to make a determination whether these rules have been violated. The decision-maker appointed by the Appeals and Hearings division of Tennessee Department of Human Services has the authority to maintain order at the hearing and make all decisions necessary for the fair, orderly, and expeditious conduct of the hearing. The decisionmaker shall be the final decider concerning all aspects of the hearing, including prehearing matters and at the hearing, how evidence is examined and the order of witnesses.

(b) At the request of either party, the institution will provide for the live hearing to be conducted with the parties located in separate rooms with technology enabling the decision-maker and parties to simultaneously see and hear the party or the witness May, 2026 12 answering questions.

(c) In cases involving more than one (1) respondent, any party may request separate hearings by submitting a request at least five (5) business days before the hearing. The Title IX Coordinator will decide whether to grant the request.

(d) Live hearings may be conducted with all parties physically present in the same geographic location or, at the institution’s discretion, any or all parties, witnesses, and other participants may appear at the live hearing virtually with technology enabling participants simultaneously to see and hear each other.

(e) At least fifteen (15) calendar days prior to a live hearing, the institution will provide both parties with written notice of the following:

1. The time, place, date of the hearing, and electronic access information, if applicable;

2. The name of each witness the institution expects to present or be present at the hearing and those the institution may present if the need arises;

3. The right to request a copy of the investigative file (other than portions that are protected by law or privilege), which includes all of the evidence obtained as part of the investigation that is directly related to the allegations raised in the formal complaint;

4. The right to request copies of all documents, copies of electronically stored information, and access to tangible evidence that the institution has in its possession, custody, or control and may use to support claims or defenses;

5. The right to have an advisor of the party’s choice, who may be but is not required to be an attorney, and that if the party does not have an advisor present at the hearing, the institution will provide an advisor of the institution’s choice, without fee or charge, to ask the other party and any witnesses all relevant questions and follow-up questions on behalf of that party;

6. Any party in need of an institution-provided advisor must inform the Title IX Coordinator at least five (5) business days before the hearing;

7. Any cross-examination of any other party or witness must be conducted by the advisor; and 8. Additional information may be included in the notice of hearing.

(f) When notice is sent by U.S. mail or courier service, the notice is effective on the date the notice is mailed or delivered to the courier service. When notice is hand delivered by the institution, notice is effective on the date that the notice is delivered to a party. When notice is sent by email, the notice is effective on the date that the email is sent to the parties’ preferred email account.

(g) The decision-maker may conduct a pre-hearing meeting or conference with the parties and their advisors to discuss pre-hearing issues, including any technology to be used at the hearing and the general rules governing the hearing.

(h) The decision-maker may allow a temporary delay of the process or the limited extension of time frames for good cause with written notice to the parties of the delay or extension and the reasons for the action. Good cause may include, but is not limited to, May, 2026 13 considerations such as the absence of a party, a party’s advisor, or a witness; concurrent law enforcement activity; or the need for language assistance or accommodation of disabilities.

(i) If a party fails to attend a hearing, the decision-maker may proceed without that party’s participation.

(j) During the hearing, the decision-maker will make evidence subject to review and inspection during the investigation phase available to give each party equal opportunity to refer to that evidence, including for purposes of cross-examination.

(k) Questions and evidence about the complainant’s sexual predisposition or prior sexual behavior are not relevant, unless such questions and evidence about the complainant’s prior sexual behavior are offered to prove that someone other than the respondent committed the conduct alleged by the complainant, or if the questions and evidence concern specific incidents of the complainant’s prior sexual behavior with respect to the respondent and are offered to prove consent.

(l) Only relevant cross-examination and other questions may be asked of a party or witness.

Before a complainant, respondent, or witness answers a cross-examination question or a question from someone other than the decision-maker, the decision-maker will first determine whether the question is relevant and explain any decision to exclude a question as not relevant.

(m) The decision-maker will not require, allow, rely upon, or otherwise use questions or evidence that constitute, or seek disclosure of, information protected under a legally recognized privilege, unless the person holding the privilege has waived the privilege.

(n) The decision-maker will permit each party’s advisor to ask the other party and any witnesses all relevant questions and follow-up questions, including those challenging credibility. Such cross-examination at the live hearing will be conducted directly, orally, and in real time by the party’s advisor and never by a party personally. Conducting crossexamination will be the advisor’s only opportunity to speak. Advisors will not engage in other presentation of arguments or evidence, including opening statements, closing arguments, or direct examinations.

(o) If a party does not have an advisor at the live hearing, the institution will provide without fee or charge to that party an advisor. The institution will choose the advisor.

(p) If a party or witness does not submit to cross-examination at the live hearing, the decision-maker will not rely on any statement of that party or witness in reaching a determination regarding responsibility; provided however, that the decision-maker cannot draw an inference about the determination regarding responsibility based solely on a party’s or witness’s absence from the live hearing or refusal to answer crossexamination or other questions.

(q) For good cause shown, a decision-maker may permit the participation of witnesses who were not identified by the party to the investigator, or the inclusion of evidence not provided by the party to the investigator.

(r) The decision-maker may dismiss the formal complaint or any allegations therein, if at any time during the hearing a complainant notifies the Title IX Coordinator in writing that the complainant would like to withdraw a formal complaint or any allegations therein, the respondent is no longer enrolled or employed by the institution, or specific circumstances prevent the institution from gathering evidence sufficient to reach a determination as to the formal complaint or allegations therein.

May, 2026 14 (s) If the decision-maker dismisses the formal complaint during the grievance process, the decision-maker will promptly notify the Title IX Coordinator, who will promptly send written notice of the dismissal and reasons therefor simultaneously to the parties.

(14) Written Determination (a) Within twenty (20) calendar days of the hearing, the decision-maker will issue a written determination that will be provided to the parties simultaneously.

(b) The determination becomes final either on the date that the institution provides the parties with a written result of an appeal, or if an appeal is available but not filed, the day after the deadline to appeal.

(c) The determination will include:

1. Identification of the allegations potentially constituting sexual harassment, as well as identification of any additional allegations that are being resolved but which do not constitute sexual harassment;

2. A description of the procedural steps taken between receipt of the formal complaint and the determination, including all notifications to the parties, interviews with parties and witnesses, site visits, methods used to gather other evidence, and any hearings held;

3. Findings of fact supporting the determination;

4. Conclusions regarding the application of these rules, as well as any other relevant rules, procedures, or processes to the facts;

5. A statement of, and rationale for, the result as to each allegation before the decision-maker, including a determination regarding responsibility;

6. Any disciplinary action that the decision-maker imposes on the respondent, including referral to another process;

7. Any remedies that the institution will provide designed to restore or preserve equal access to education programs and/or activities to the complainant; and 8. The permissible bases and procedures, including timelines, for appeals by the parties.

(15) Remedies and Disciplinary Action Following Determination of Violation (a) The institution will provide remedies where a determination of responsibility for sexual harassment has been made. The institution will follow these and other applicable rules before the imposition of any disciplinary sanctions for sexual harassment that are not supportive/interim measures.

(b) Remedies will be designed to restore or preserve equal access to education programs and activities and will include one (1) or more sanctions identified in Tenn. Rules and Regs. Ch. 1240-08-09-.05. Remedies may also consider improvements to the campuswide environment. Institutions should consider the impact of an incident of sexual harassment on the campus as a whole or specific groups or areas of campus. For example, specific training may be needed for a student group.

May, 2026 15 (c) The Title IX Coordinator is responsible for ensuring effective implementation of the remedies.

(16) Appeals/Post-Determination Procedures (a) Parties are permitted to appeal to the Tennessee Department of Human Services Commissioner’s Designee from a determination regarding responsibility (or no responsibility) and from a dismissal of a formal complaint or of any allegations in a formal complaint on the basis of:

1. Procedural irregularity that affected the outcome of the matter;

2. New evidence that was not reasonably available at the time the determination or dismissal was made, but only if that new evidence could affect the outcome of the matter; or 3. The Title IX Coordinator, investigator(s), or decision-maker(s) had a conflict of interest or bias for or against complainants or respondents generally or the individual complainant or respondent that affected the outcome.

(b) A party wishing to appeal a determination regarding responsibility or the dismissal of a formal complaint or any allegations therein must file a written appeal with Tennessee Department of Human Services Commissioner’s Designee, within ten (10) calendar days of the date of the determination or the dismissal. The written appeal must identify the reasons for the appeal.

(c) As to all appeals, the Title IX Coordinator will:

1. Notify the other party in writing when an appeal is filed;

2. Implement appeal procedures equally for both parties;

3. Ensure that the decision-maker(s) for the appeal is not the same person as the investigator, the decision-maker, or Title IX Coordinator; and 4. Provide each party ten (10) calendar days from the date of notice from the Title IX Coordinator to provide a written statement in support of, or challenging, the determination.

(d) The decision-maker(s) for the appeal will issue a written decision describing the result of the appeal and the rationale for the result and will provide the written decision simultaneously to the parties.

History

• Authority: T.C.A. §§ 4-5-101, et seq., 4-5-202, et seq., 49-11-604, and 49-11-801, et seq.; 20 U.S.C. §§ 1681-1688; and 34 C.F.R. Part 106.
• Administrative History: New rules filed February 5, 2026; effective May 6, 2026.

Tenn. Comp. R. & Regs. 1240-08-13-.06 SEVERABILITY

(1) If any provision of the Title IX regulations on which these rules are based is enjoined or held invalid as it applies to TRCS or the Title IX regulations’ application to any person, act, or practice is enjoined or held invalid as it applies to TRCS, the remainder of these rules or the application of its provisions to any person, act, or practice shall not be affected thereby.

(2) For conduct that occurs across revisions of these rules or other standards, complaints of sexual harassment will be addressed utilizing the procedures outlined in the rules in effect as of the May, 2026 16 date of the notice of allegations. The “Definitions” in effect as of the date of the alleged incident will be used. Complaints and reports of conduct spanning revisions of rules will be addressed using the “Definitions” in the rules in effect at the time of the most recent alleged incident.

History

• Authority: T.C.A. §§ 4-5-101, et seq., 4-5-202, et seq., 49-11-604, and 49-11-801, et seq.; 20 U.S.C. §§ 1681-1688; and 34 C.F.R. Part 106.
• Administrative History: New rules filed February 5, 2026; effective May 6, 2026.

Chapter 1240-09-01 Access to Public Records of the Department of Human Services

Tenn. Comp. R. & Regs. 1240-09-01-.01 PURPOSE AND SCOPE

These rules are promulgated for the purpose of providing procedures to allow access to records of the Tennessee Department of Human Services that are subject to the Tennessee Public Records Act, T.C.A. §§ 10-7-501 et seq., and are promulgated for the additional purpose of implementing and establishing fees to be charged for reproduction of records or for the development of records in a specific format.

History

• Authority: T.C.A. §§4-5-201 et seq., 71-1-105; 10-7-503 and 10-7-506; Tennessean v. Electric Power Board of Nashville, 979 S.W.2d 297 (Tenn. 1998); and Op. Tenn. Atty. Gen. 01-021 (Feb. 8, 2001).
• Administrative History: Original rule filed December 2, 2002; effective February 15, 2003.

Tenn. Comp. R. & Regs. 1240-09-01-.02 DEFINITIONS

(1) “Commissioner” is the executive officer in charge of the Tennessee Department of Human Services.

(2) “Commissioner’s Designee” means Deputy Commissioner, Assistant Commissioners, Staff Attorneys, Directors, Program Managers and/or Counselors of the Department of Human Services.

(3) “Labor” means the time reasonably necessary for the Department’s staff to produce the requested records and includes the time spent locating, reviewing, including the time required to assess the costs necessary for reproduction, redacting and reproducing the records.

(4) “Non-routine Copy” is a copy, whether of paper or of electronically stored data, which requires more than minimal staff assistance, i.e., odd or oversize pages, bound documents, or manipulation of electronically stored data. Any records, even if stored electronically or magnetically, shall be deemed to be non-routine copies if it is necessary for Department personnel or contractors to print the copies of the record by means of a separate screen-print for each individual page of the record.

(5) “Public Record”

(a) “Public Record” means any record of the Department that is deemed to be open to inspection of the public pursuant to the provisions of the defined in T.C.A. § 10-7- 503(a)(1): The terms “public record or records” or “state record or records” means all documents, papers, letters, maps, books, photographs, microfilms, electronic data processing files and output, films, sound recordings or other material, regardless of physical form or characteristics, made or received pursuant to law or ordinance or in connection with the transaction of official business by any governmental agency.

(b) The term “Public Record” does not include any data in any record, or any portion of a record, that is:

1. protected as confidential or privileged pursuant to any state or federal law,

regulation, court order or court rule; or 2. protected as privileged under any statutory or common law privilege; or 3. protected as any attorney work product; or 4. protected by the attorney/client or any other professional privilege, or 5. reasonably expected by its disclosure to reveal the name or location of a source that is protected by state or federal law or regulation as part of any statutory or regulatory requirements for reporting of abuse, neglect or harm, or that is protected by state or federal law or regulation as part of any statutory or regulatory requirement for the purpose of protecting any person from the threat of domestic violence.

(6) “Record”

(a) The term “Record” includes, for purposes of this Chapter, any data and/or documents developed and maintained by the Department, or that have been received and are maintained by the Department, during the normal course of the Department’s business activities.

(b) “Records” subject to this Chapter may be maintained on paper, magnetically, or electronically, on a single computer or computer system, whether on disk, tape or otherwise.

(7) “Records custodian” means the office, official or employee lawfully responsible for the direct custody and care of a public record maintained by the Department of Human Services and is not necessarily the original preparer or producer of the record. The Department of Human Services may have more than one designated records custodian.

(8) “Redacted record” means a public record otherwise open for public inspection from which protected information has been removed or obscured prior to release or inspection.

(9) “Requestor” means a Tennessee citizen requesting access to or a copy of a public record.

(10) “Routine Copy” means a paper copy of a record which, to be made, requires minimal staff assistance, i.e., pages which are either 8½ x 11 or 8½ x 14 and can be automatically printed from electronically stored records or automatically fed into a standard copier.

(11) “Safe Harbor” means a presumption of reasonableness of the costs for records reproduction for a public records custodian who adheres to the policies and guidelines established by the Office of Open Records Counsel (OORC). Under this presumption, any fee related to the production of a copy or duplication that is charged by an entity required to provide access to public records pursuant to the Tennessee Public Records Act is presumed to be reasonable if the entity adopts and implements either the OORC Schedule of Reasonable Charges or adopts charges pursuant to a separate schedule developed in accordance with the provisions of the OORC Schedule of Reasonable Charges. The aggregation of frequent and multiple requests for copies of public records and the labor fees charged as the result of that aggregation are presumed to be reasonable if the entity adopts and implements the OORC Frequent and Multiple Request Policy or a separate policy developed in accordance with the provisions of the OORC Frequent and Multiple Request Policy.

History

• Authority: T.C.A. §§4-5-201 et seq.; 4-5-202; 8-4-604(a)(3); 10-7-504(a)(7); 10-7-506; 10-7-506(a); 10- 7-503 and 71-1-105; 71-1-105(4) and (12) Tennessean v. Electric Power Board of Nashville, 979 S.W.2d 297 (Tenn. 1998); and Op. Tenn. Atty. Gen. 01-021 (Feb. 8, 2001).
• Administrative History: Original rule filed December 2, 2002; effective February 15, 2003. Amendments filed December 10, 2009; effective March 10, 2010.

Tenn. Comp. R. & Regs. 1240-09-01-.03 REQUESTS FOR ACCESS TO RECORDS

(1) Processing of Requests to View Public Records.

(a) An in-person request for access to public records of the Department shall be made during the regular business hours of the Department from 8:00 AM to 4:30 PM, Monday through Friday, except for holidays.

(b) All requests for access to public records of the Department made in-person, or by any other means, shall be directed to the Records Custodian, State Office of the Department of Human Services, 400 Deaderick Street, 15 th floor, Nashville, Tennessee 37243.

(c) All requests for access to the Department’s public records shall identify with reasonable specificity the record, set or system of records which is requested.

(d) Requests will be processed on a first-come, first-served basis; provided, that the Commissioner, or the Commissioner’s designee, may at any time alter this provision when circumstances warrant.

(2) Prior Review and Assessment for Confidential, Privileged or Protected Material/Non-Routine Requests.

(a) Review, Assessment and Redaction of Records.

1. Before providing access to the requested record, the Department’s staff shall review as quickly as reasonably possible the requested records that have been located consistent with the availability of appropriate staff and with regard to the scope of the records request, and make an assessment of the status of the records, the scope of the requested access and the time required for a response.

2. Upon review, the Department’s staff will redact any data or information prior to release of the record, or portion of the record, that it determines has, or may have, confidential, privileged or otherwise protected material in the record that is subject to the Tennessee Public Records Act.

(b) If the Department determines that none of the provisions of subparagraph (c) below apply and access can otherwise be provided immediately, it shall do so.

(c) If it appears from the Department’s review and assessment that access to the record, or the system of records, cannot be provided immediately because:

1. Additional time is required to locate and retrieve the records because the records are not stored on the site or cannot be located;

2. The record or records require redaction of confidential, privileged or otherwise protected material;

3. The record is subject to current use as part of an on-going investigation and cannot be provided without interrupting or jeopardizing the investigation and/or its timeliness, or the unavailability of the record to the Department’s staff will jeopardize the health, safety or welfare of the persons the investigation is intended to protect or the persons involved in the investigation;

4. A computer or computer system that contains the record is unable to be accessed, is undergoing maintenance or re-programming for any Departmental program purposes, and/or cannot be accessed without substantially interfering with the delivery of services to the public or without damage to the integrity, operability or functioning of any computer or computer system;

5. Production of the record or records will require development of a program or application to provide access to, or a readable format for access to, electronic or magnetic sources of the record or records; or 6. For any reason, then the Department shall inform the requestor of the assessment and the approximate time required to comply with the request and provide a summary of the basis for the assessment regarding access to the records.

History

• Authority: T.C.A. §§4-5-201 et seq.; 4-5-202; 8-4-604(a)(3); 71-1-105; 10-7-503; 10-7-504(a)(7); 10-7- 506; 10-7-506(a); 71-1-105(4) and (12); Tennessean v. Electric Power Board of Nashville, 979 S.W.2d 297 (Tenn. 1998); and Op. Tenn. Atty. Gen. 01-021 (Feb. 8, 2001).
• Administrative History: Original rule filed December 2, 2002; effective February 15, 2003. Amendments filed December 10, 2009; effective March 10, 2010.

Tenn. Comp. R. & Regs. 1240-09-01-.04 REQUESTS FOR REPRODUCTION OF RECORDS

(1) Processing of Requests for Copies of Public Records.

(a) An in-person request for copies of public records of the Department shall be made during the regular business hours of the Department from 8:00 AM to 4:30 PM, Monday through Friday, except for holidays.

(b) All requests for copies of public records of the Department made in-person, or by any other means, shall be directed to the Records Custodian, State Office of the Department of Human Services, 400 Deaderick Street, 15 th floor, Nashville, Tennessee 37243.

(c) All requests for copies of the Department’s public records must be made in writing to the Records Custodian of the Department of Human Services, and shall identify with reasonable specificity the record, set or system of records which is requested.

(d) Records requests will be processed on a first-come, first-served basis; provided, that the Commissioner, or the Commissioner’s designee, may at any time alter this provision when circumstances warrant.

(2) Prior Review and Assessment for Confidential, Privileged or Protected Material/Non-Routine Copy Requests.

(a) Review, Assessment and Redaction of Records for Copy Request.

1. Before reproducing copies of the requested record, the Department’s staff shall review as quickly as reasonably possible the requested records that have been located consistent with the availability of appropriate staff and with regard to the scope of the records request, and make an assessment of the status and scope of the copy request and the time and costs required to locate, retrieve, review, redact, and reproduce the records.

2. Upon review, the Department’s staff will redact any data or information prior to release of the record, or portion of the record, that it determines has, or may have, confidential, privileged or otherwise protected material in the record that is subject to the Tennessee Public Records Act.

(b) If the Department determines that none of the provisions of subparagraph (c) apply and copies can otherwise be provided immediately, it shall do so. If the reproduction of copies of the records is requested and the request involves the reproduction of “routine” copies, it shall inform the requesting person and shall make such records available to the requesting person as soon as reasonably possible.

(c) If it appears from the Department’s assessment that reproduction of the record, or the system of records, cannot be provided immediately because:

1. Additional time is required to locate and retrieve the records because the records are not stored on the site or cannot be located;

2. The record or records require redaction of confidential, privileged or otherwise protected material;

3. The record is subject to current use as part of an on-going investigation and cannot be provided without interrupting or jeopardizing the investigation and/or its timeliness, or the unavailability of the record to the Department’s staff will jeopardize the health, safety or welfare of the persons the investigation is intended to protect or the persons involved in the investigation;

4. A computer or computer system that contains the record is unable to be accessed, is undergoing maintenance or re-programming for any Departmental program purposes, and/or cannot be reproduced without substantially interfering with the delivery of services to the public or without damage to the integrity, operability or functioning of any computer or computer system;

5. Reproduction of the record or records will require development of a program or application to provide copies, in a readable format from, electronic or magnetic sources of the record or records, or that the person or entity has requested copies of the record in a specific format, and that such program, application or format does not currently exist; or 6. For any reason, then the Department shall inform the requestor of the assessment and the approximate time required to comply with the request, the costs to provide reproduction of the records and provide a summary of the basis for the assessment regarding the costs of reproducing the records.

History

• Authority: T.C.A. §§4-5-201 et seq., 4-5-202; 8-4-604(a)(3); 10-7-503; 10-7-504(a)(7); 10-7-506; 10-7- 506(a); 71-1-105; 71-1-105(4) and (12); Tennessean v. Electric Power Board of Nashville, 979 S.W.2d 297 (Tenn. 1998); and Op. Tenn. Atty. Gen. 01-021 (Feb. 8, 2001).
• Administrative History: Original rule filed December 2, 2002; effective February 15, 2003. Amendments filed December 10, 2009; effective March 10, 2010.

Tenn. Comp. R. & Regs. 1240-09-01-.05 FEES AND COSTS FOR REPRODUCTION OF RECORDS

(1) The Records Custodian may assess a charge of fifteen cents ($0.15) per page for each routine, standard 8½ x 11 or 8½ x14 black and white copy produced. The Records Custodian may assess a requestor a charge for a duplex copy that is the equivalent of the charge for two (2) separate copies. The Department may charge for all costs for reproduction of the record for the person or entity that has made the records request, whether the record is determined to be “routine” or “non-routine”. Copies of sizes other than 8½ x 14 may be charged at fifty cents ($.50) per page, or, if higher, the actual costs.

(2) If a public record is maintained in color, the records custodian shall advise the requestor that the record can be produced in color if the requestor is willing to pay a charge higher than that of a black and white copy, and if the equipment is available to the Department to reproduce the copy in color. If the requestor then requests a color copy, a records custodian may assess a charge of fifty cents ($0.50) per page for each 8½ x 11 or 8½ x 14 color copy produced, or, if higher, the actual costs.

(3) The Department shall not be required to reproduce copies on two (2) sides unless the equipment at the reproduction site is designed to automatically produce a two (2) sided copy on a single piece of paper.

(4) Copies, exclusive of labor, made on electronic media shall be charged at a minimum of One Dollar ($1.00) for any CD, DVD, or floppy disk if these media are available.

(5) Magnetic copies, if available, shall be charged at a minimum of One Hundred Dollars ($100.00) per magnetic tape containing 20 gigabytes.

(6) The costs of reproduction shall include the following:

(a) Department staff labor, paper and other products and rental fees, including, but not limited to, the costs of:

1. Staff labor costs utilized in locating, retrieving, reviewing redacting, and reproducing the record, including labor and other costs utilized in reviewing and assessing the estimated cost to reproduce the record; and 2. Paper or other products such as, but not limited to, copy toner or toner cartridges, inks, electronic or magnetic media including, but not limited to compact disks, DVDs, floppy disks, etc., or any per copy charges incurred by the Department on any rented equipment.

(b) Development of Computer Programs and Applications, including, but not limited to:

1. Creation of a new or modified computer program or computer application that is necessary to put the records in a readable and reproducible format or in a specific reproducible format that is requested by the person or entity seeking copies of the record; and 2. In such case, the costs of staff, contractor, or consultant specialist time required for the production of the program or application and the costs of any new or modified software or hardware necessary for the production of the records may also be charged by the Department as costs of reproduction of the record.

(c) The costs for delivering the records by mail or any other delivery services or any other mechanisms or processes, electronic, magnetic or otherwise.

(d) Any other costs associated with actually reproducing the requested records, including all charges by vendors and contractors utilized to access or reproduce the records.

(e) The records custodian shall utilize the most cost efficient method of producing the requested records.

(7) Calculation of Department Staff Labor Costs.

(a) Department staff labor costs shall be charged at either the hourly rate, for the staff person’s position as set by the Department of Human Resources, or, if paid on a salary

basis based on the annual salary, excluding the first hour of labor and benefits, including the cost of any overtime that is necessary to reproduce the record.

(b) The hourly rate is that established by the Department of Human Resources for that staff person’s position. If the staff person is paid on a salary basis, the rate paid is that based upon the annual base salary of the employee(s) excluding benefits. If an employee is not paid on an hourly basis, the hourly wage shall be determined by dividing the employee’s annual base salary by the required hours to be worked per year which will be Nineteen Hundred Fifty (1,950) hours for full-time employees. For example, an employee who is expected to work a Thirty-Seven and One-Half (37.5) hour work week and receives Thirty-Nine Thousand Dollars ($39,000) in salary on an annual basis will be deemed to be paid Twenty Dollars ($20) per hour.

(c) When the aggregate number of requests made by a requestor within a calendar month exceeds four (4), the requestor will be charged a fee for any and all labor that is reasonably necessary to produce the copies of the requested records after informing the requestor that the aggregation limit has been met.

(8) Contractor or Consultant Costs.

The costs of a contractor or consultant’s time shall be charged at the unit rates charged to the Department pursuant to the Department’s existing contract or any contract made necessary due to the copy request.

(9) Specialist Costs.

The costs of a specialist’s time shall be charged at the costs invoiced to the Department for the services provided that are related to the reproduction of the record.

(10) Copying by Requesting Person or Entity.

(a) The Commissioner, or the Commissioner’s designee, may, in his or her discretion, permit the requestor to supply the necessary equipment and supplies to make the requested copies where the records are housed or located for purposes of the records request, and all, or a portion, of the fees required by this Chapter may, in his or her discretion, be waived by the Department, but no record shall be permitted to be removed from the Department’s offices for this purpose without written approval by the Commissioner or the Commissioner’s designee.

(b) The Department may provide any personnel to observe the copying process permitted by this paragraph to protect the integrity of the records, and the costs of staff time necessary for this purpose may be charged pursuant to this Chapter.

History

• Authority: T.C.A. §§4-5-201 et seq.; 4-5-202; 8-4-604(a)(3); 10-7-503; 10-7-504(a)(7); 10-7-506; 10-7- 506(a); 71-1-105; 71-1-105(4) and (12); Tennessean v. Electric Power Board of Nashville, 979 S.W.2d 297 (Tenn. 1998); and Op. Tenn. Atty. Gen. 01-021 (Feb. 8, 2001).
• Administrative History: Original rule filed December 2, 2002; effective February 15, 2003. Amendment filed December 10, 2009; effective March 10, 2010.

Tenn. Comp. R. & Regs. 1240-09-01-.06 PAYMENT FOR RECORDS

(1) Prior to copies being made, or prior to developing a specific format for the reproduction of records, payment in full must be made to the Department, unless the payment is waived or delayed pursuant to rule 1240-09-01-.07 below.

(2) Payment for the costs of reproducing records shall be made only by cashier’s check, money order, or other reliable means as determined by the Department.

(3) The cashier’s check or money order shall be made payable to the Treasurer, State of Tennessee, and delivered to the Records Custodian.

History

• Authority: T.C.A. §§4-5-201 et seq.; 4-5-202; 8-4-604(a)(3); 10-7-503; 10-7-504(a)(7); 10-7-506; 10-7- 506(a); 71-1-105; 71-1-105(4) and (12); Tennessean v. Electric Power Board of Nashville, 979 S.W.2d 297 (Tenn. 1998); and Op. Tenn. Atty. Gen. 01-021 (Feb. 8, 2001).
• Administrative History: Original rule filed December 2, 2002; effective February 15, 2003. Amendment filed December 10, 2009; effective March 10, 2010.

Tenn. Comp. R. & Regs. 1240-09-01-.07 WAIVER OF FEES

(1) The Commissioner or the Commissioner’s designee may waive the applicable fees for copies as defined above when the amount for such copies is equal to or less than One Dollar ($1.00). Costs for reproduction of records above One Dollar ($1.00) shall be charged as otherwise required by this Chapter, unless waived pursuant to this Section.

(2) The Commissioner or the Commissioner’s designee may allow payment to be delayed under such circumstances as the Commissioner or the Commissioner’s Designee may, in his or her discretion, determine is appropriate.

(3) If the Commissioner or the Commissioner’s designee determines that the person who seeks copies of these public records is indigent under Federal poverty guidelines, then the Commissioner or the Commissioner’s designee may waive the applicable fees.

(4) Excessive or unreasonable requests for waivers, or requests that can otherwise be reasonably construed as an attempt to avoid the intended compensation for copies that exceed One Dollar ($1.00), as described in Paragraph (1), may be denied.

(5) The Commissioner or the Commissioner’s designee, may, in his or her discretion, provide copies of rules, policy, state or federal programs, guidance documents, public reports, etc., without charge:

(a) for general public information or announcement purposes to applicants for, or recipients of, services from the Department’s programs, or to provide information to such persons or their representatives in response to case-specific situations;

(b) to legislative, judicial or administrative bodies or tribunals as part of providing general or specific information or clarification regarding the Department’s programs or activities or in response to a case-specific request relative to applicants for, or recipients of, services from the Department or its employees, or for any other purpose;

(c) to other state, county or local agencies, their investigative, administrative, enforcement, regulatory, audit or law enforcement agencies, or for any other purpose;

(d) to advocacy groups, as determined by the Department, for persons served by the Department, to provide information or clarification, regarding Department programs or activities involving the Department’s programs and policies;

(e) to federal law enforcement, audit, program, administrative or regulatory agencies, or for any other purpose, or (f) if necessary to comply with any provisions of federal or state laws, court orders, regulations or policy directives.

History

• Authority: T.C.A. §§4-5-201 et seq., 71-1-105; 10-7-503 and 10-7-506; Tennessean v. Electric Power Board of Nashville, 979 S.W.2d 297 (Tenn. 1998); and Op. Tenn. Atty. Gen. 01-021 (Feb. 8, 2001).
• Administrative History: Original rule filed December 2, 2002; effective February 15, 2003.