(1) If any member of the assistance unit fails or refuses without good cause as defined in ARM 37.78.508 to comply with an employment related or training activity as defined in (8), the first sanction will result in the reduction of the monthly TANF Cash Assistance payment by an amount equal to one person's share of the payment for one month. The second and subsequent sanctions will result in case closure and the imposition of a one month ineligibility period. This rule does not apply to households who are receiving TANF extended benefits as defined in ARM 37.78.202. The imposition of a sanction ends the currently negotiated FIA/WoRC Employability Plan the last day of the penalty month. A sanction is considered imposed even if a fair hearing is requested and continued benefits are issued.

(2) During the penalty period for the first sanction, the income and resources of a sanctioned individual will continue to be considered in determining eligibility and grant amount for the assistance unit.

(3) For TANF Cash Assistance program participants, the penalty period for the first sanction will count toward the time limits provided in ARM 37.78.201.

(4) A sanctioned individual must negotiate and sign a new Family Investment Agreement prior to the end of the sanction penalty period for the first sanction or the household's TANF Cash Assistance will terminate at the end of the sanction penalty period.

(5) If the TANF Cash Assistance case closes because the sanctioned individual did not end the sanction by negotiating a new FIA during the penalty period, the household must serve a one month ineligibility period for the first sanction as long as the sanctioned individual is a required filing unit member.

(6) The food stamp allotment for a sanctioned individual's household will not increase as a result of cash assistance sanctioning.

(7) During the penalty period, child care assistance will continue if:

(a) child care is necessary to allow the TANF Cash Assistance participant to perform employment-related or training activities, as defined in (8), which are required by the Family Investment Agreement; and

(b) the sanctioned individual participates in specified employment-related or training activities throughout the penalty period. If the sanctioned individual fails to comply with any employment-related or training activity during the penalty period, child care assistance will be discontinued and will not be reinstated during the penalty period even if the sanctioned individual begins to comply or participate.

(8) "Employment-related or training activities", as specified in (7)(a), means activities specified on the FIA/WoRC Employability Plan or in the tribal NEW plan which are directly intended to promote economic self-sufficiency.

(9) If a sanctioned individual requests a hearing to challenge the sanction and receives continued benefits pending the hearing, the sanction will not be imposed until a final decision is obtained. If a final decision upholding the sanction is obtained, the assistance received during the penalty period pending the fair hearing will be considered an overpayment.