This rule finalizes provisions of a proposed rulemaking published Dec. 17, 1996. It revises the current requirement that households report a change of more than $25 in monthly gross income by increasing the reporting threshold for unearned income to $50 and by allowing state agencies two options for reporting requirements for changes in the amount of earned income. The rule also provides state agencies with the option of establishing a quarterly reporting system for all nonexempt households. The rule also includes a technical amendment addressing procedures for the handling of certain recurring income in a retrospective budgeting system.