(a) The Texas Department of Human Services (DHS) may not disqualify a household member for an intentional program violation until the hearing officer determines the person committed an intentional program violation. A pending hearing does not affect the household member's or the household's right to be certified and participate in the program.
(b) DHS reduces or terminates benefits if:
  (1) DHS has documentation substantiating the household is ineligible or eligible for fewer benefits (even if these facts suggest an intentional program violation and lead to an administrative disqualification hearing); or
  (2) the household fails to request a fair hearing and continued benefits pending the hearing.
(c) DHS may adjust benefits if it has facts substantiating the household's failure to report a change in its circumstances. DHS does not yet have to demonstrate that the failure to report was an intentional program violation.
(d) Pending the hearing, DHS determines the eligibility and benefit level of the household according to usual procedures. If the suspected action does not affect the household's current circumstances, the household:
  (1) continues to receive its allotment based on the latest certification action; or
  (2) is recertified based on a new application and current circumstances.
(e) DHS terminates benefits, however, if:
  (1) the certification period has expired; and
  (2) the household fails to reapply after receiving an expiration notice.

Source Note: The provisions of this §357.527 adopted to be effective February 1, 1994, 18 TexReg 9857; transferred effective September 1, 2004, as published in the Texas Register September 17, 2004, 29 TexReg 9013