Title of Proposed Rule: / Expanded Categorical Eligibility Based on House Bill 10-1022 and Technical Cleanup
Rule-making#: / 10-7-19-1
Office or Division/Program: Office of Self Sufficiency/ Food Assistance Program / Rule Author: Carol Saile / Phone: 303-866-2538
E-Mail:

STATEMENT OF BASIS AND PURPOSE

Summary of the basis and purpose for the rule or rule change. (State what the rule says or does, explain why the rule or rule change is necessary and what the program hopes to accomplish through this rule.)

Federal regulations at 7 CFR 273.2(j)(2) allows states to confer Expanded Categorical Eligibility (ECE) to households that receive services funded with Temporary Assistance to Needy Families (TANF)/Maintenance of Effort (MOE) funds. The services that the household receives must be intended to further one of the four TANF purposes and are not provided as a cash benefit.

House Bill 10-1022, signed into law June 10, 2010, requires the Colorado Department of Human Services to implement policy for broad-based categorical eligibility for the Food Assistance Program following federal rules and guidelines. The program must, to the extent permitted under federal law, eliminate any asset test in determining eligibility for Food Assistance benefits. Colorado will be providing information on available services intended to further purpose four (4) of TANF. By implementing Expanded Categorical Eligibility and eliminating the asset test, Colorado will be promoting savings among low-income households and will be helping to make more low-income families eligible. Expanded Categorical Eligibility will simplify the application process for applicants and current recipients who will no longer be required to produce verification of assets. This will reduce the workload at the county level and will result in fewer quality control errors.

Upon implementation of Expanded Categorical Eligibility, Colorado will no longer consider resources when determining eligibility for most income-eligible households. Additionally, and as required under federal regulations, households containing an elderly or disabled member will have the maximum gross income limit set at two hundred percent (200%) of the Federal poverty level, if eligible under Expanded Categorical Eligibility rules. Households that do not contain an elderly or disabled member will continue to be subject to the current maximum gross income standard, which is one hundred thirty percent (130%) of the Federal poverty level. After all applicable deductions, the net income of all Expanded Categorical Eligibility households must be at or below one hundred percent (100%) of the Federal poverty level.

An emergency rule-making (which waives the initial Administrative Procedure Act noticing requirements) is necessary:

to comply with state/federal law and/or
to preserve public health, safety and welfare

Explain:

Initial Review / 11/05/2010 / Final Adoption / 12/03/2010
Proposed Effective Date / 02/01/2011 / EMERGENCY Adoption / N/A

DOCUMENT 1

______

[Note: “Strikethrough” indicates deletion from existing rules, “all caps” indicates addition of new rules,

and brackets denote changes since initial review.]

STATEMENT OF BASIS AND PURPOSE (continued)

Authority for Rule:

State Board Authority: 26-1-107, C.R.S. (2010) - State Board to promulgate rules; 26-1-109, C.R.S. (2010) - State Board rules to coordinate with federal programs; 26-1-111, C.R.S. (2010) - State Board to promulgate rules for public assistance and welfare activities.

Program Authority: (give federal and/or state citations and a summary of the language authorizing the rule-making)

26-2-305.5, C.R.S., as added by H.B. 10-1022 - requires Colorado to implement a broad-based eligibility program for Food Assistance.

7 CFR 273.2(j)(2) - Food and Nutrition Services, Department of Agriculture regarding categorically eligibility, and PA and SSI households

Yes / X / No
Yes / X / No

Does the rule incorporate material by reference?

Does this rule repeat language found in statute?

If yes, please explain.

State Board Administration will send this rule-making package to Colorado Counties, Inc., Office of State Planning and Budgeting, and the Joint Budget Committee. The program has sent this proposed rule-making package to which stakeholders?

Self Sufficiency Sub-PAC Group

All County Departments of Social/Human Services

CDHS Colorado Works Program and Adult Financial Program

Attachments:

Regulatory Analysis

Overview of Proposed Rule

Stakeholder Comment Summary

Rule-making Form SBA-3a (08/09)

Title of Proposed Rule: / Expanded Categorical Eligibility Based on House Bill 10-1022 and Technical Cleanup
Rule-making#: / 10-7-19-1
Office or Division/Program: Office of Self Sufficiency/ Food Assistance Program / Rule Author: Carol Saile / Phone: 303-866-2538

REGULATORY ANALYSIS

(complete each question; answers may take more than the space provided)

1. List of groups impacted by this rule:

Which groups of persons will benefit, bear the burdens or be adversely impacted by this rule?

All households eligible for Expanded Categorical Eligibility will benefit from the absence of an asset test.

County eligibility workers will benefit from Expanded Categorical Eligibility policy due to a decrease in verification requirements.

Food Assistance policy does not anticipate an adverse impact for any group.

2. Describe the qualitative and quantitative impact:

How will this rule-making impact those groups listed above? How many people will be impacted? What are the short-term and long-term consequences of this rule?

Implementation of this rule is anticipated to:

● Increase participation among working families;

● Promote asset accumulation among low-income families, leading to self-sufficiency;

● Reduce workload for county staff due to a decrease in verification requirements;

● Reduce the number of case processing errors;

● Have a multiplier affect on the economy. According to research information provided by the Food and Nutrition Services of the United States Department of Agriculture, every $5 in new food assistance generates $9.20 in total community spending.

3. Fiscal Impact:

For each of the categories listed below explain the distribution of dollars; please identify the costs, revenues, matches or any changes in the distribution of funds even if such change has a total zero effect for any entity that falls within the category. If this rule-making requires one of the categories listed below to devote resources without receiving additional funding, please explain why the rule-making is required and what consultation has occurred with those who will need to devote resources.

State Fiscal Impact (Identify all state agencies with a fiscal impact, including any Colorado Benefits Management System (CBMS) change request costs required to implement this rule change)

The costs of Colorado Benefits Management System changes to include Expanded Categorical Eligibility have not yet been finalized. Federal funds, allocated to the State under the Department of Defense Act and set aside for Food Assistance Program administration, have been set aside to cover the anticipated cost of implementing H.B. 10-1022.

County Fiscal Impact

None

Rule-making Form SBA-3b (10/08)

Title of Proposed Rule: / Expanded Categorical Eligibility Based on House Bill 10-1022 and Technical Cleanup
Rule-making#: / 10-7-19-1
Office or Division/Program: / Rule Author: Carol Saile / Phone: 303-866-2538

REGULATORY ANALYSIS (continued)

Federal Fiscal Impact

Federal funds, allocated to the State through the Department of Defense Act for the purpose of supporting Food Assistance administrative costs, have been budgeted for the automated system changes associated with implementing H.B. 10-1022.

Other Fiscal Impact (such as providers, local governments, etc.)

None

4. Data Description:

List and explain any data, such as studies, federal announcements, or questionnaires, which were relied upon when developing this rule?

Federal document MPSNAP-300: FA 6-1

5. Alternatives to this Rule-making:

Describe any alternatives that were seriously considered. Are there any less costly or less intrusive ways to accomplish the purpose(s) of this rule? Explain why the program chose this rule-making rather than taking no action or using another alternative.

None

Rule-making Form SBA-3b (10/08)

Title of Proposed Rule: / Expanded Categorical Eligibility Based on House Bill 10-1022 and Technical Cleanup
Rule-making#: / 10-7-19-1
Office or Division/Program: Office of Self Sufficiency/ Food Assistance Program / Rule Author: Carol Saile / Phone: 303-866-2538

OVERVIEW OF PROPOSED RULE

Compare and/or contrast the content of the current regulation and the proposed change.

Section Numbers / Current Regulation / Proposed Change /

Stakeholder Comment

Throughout the rules, Food “Stamp” has been updated to Food “Assistance” / __ / Yes / X / No
4011.1 / Outlines application processing and defines categorical eligibility / Defines basic and expanded categorical eligibility in addition to standard eligibility; details application processing procedures / __ / Yes / X / No
4011.134 / Details Supplemental Security Income categorical eligibility / Revised to address residents of public institutions / __ / Yes / X / No
4011.22 / Interviews for public assistance households / Revises that the benefit level of basic categorical eligibility households is not based solely on Food Assistance criteria / __ / Yes / X / No
4011.3, B-D / Verification and documentation / Updates the language regarding basic categorically eligible households; revises criteria for initial application to include expanded categorical eligibility / __ / Yes / X / No
4220 / Financial criteria / Revises financial criteria to apply to all households except those deemed basic categorical eligibility / __ / Yes / X / No
4220.1 / Income eligibility standards / Defines gross and net income limits for all households / __ / Yes / X / No
4220.11 / Net income eligibility / Details net income eligibility for all households; deletes chart and adds language regarding this information being published annually in an agency letter / __ / Yes / X / No
Section Numbers / Current Regulation / Proposed Change /

Stakeholder Comment

4220.12 / Details gross income eligibility for households / Adds language that details gross income eligibility for an expanded categorically eligible household with an elderly or disabled member; deletes chart and adds language regarding this information being published annually in an agency letter / __ / Yes / X / No
4224 / Details resource eligibility for all household members / Deletes current section and adds language that says that expanded categorical eligibility households have satisfied the outlined resource eligibility criteria; outlines documentation criteria and details resource eligibility standards / __ / Yes / X / No
4230.1, E / Initial monthly allotment proration / Revises to say that amount of minimum benefit will be sent via agency letter / __ / Yes / X / No
4242.11, A, B / Changes households are required to report / Adds language defining reporting requirements for six month and 24 month certification periods; adds exception for households eligible under expanded categorical eligibility rules that contain an elderly or disabled member who is required to report changes in household income if the amount exceeds 200% of Federal Poverty level; revises requirements regarding simplified reporting / __ / Yes / X / No
4430.2 / Agency errors and inadvertent household errors / Revises for categorical eligibility / __ / Yes / X / No
4430.21, G / Calculating a claim for categorically eligible households / Revises rule for households eligible under basic categorical eligibility / __ / Yes / X / No

Rule-making Form SBA-3c (10/08)

Title of Proposed Rule: / Expanded Categorical Eligibility Based On House Bill 1022 and Technical Cleanup
Rule-making#: / 10-7-19-1
Office or Division/Program: Office of Self Sufficiency/ Food Assistance Program / Rule Author: Carol Saile / Phone: 303-866-2538
E-Mail:

STAKEHOLDER COMMENT SUMMARY

DEVELOPMENT

The following individuals and/or entities were included in the development of these proposed rules (such as other Program Areas, Legislative Liaison, Sub-PAC, and the Child Welfare Action Committee):

Self Sufficiency Sub-PAC; Food Assistance Corrective Action Plan (CAP) Workgroup

THIS RULE-MAKING PACKAGE

The following individuals and/or entities were contacted and informed that this rule-making was proposed for consideration by the State Board of Human Services:

All County Departments of Social/Human Services

CDHS Colorado Works Program and Adult Financial Program

Are other State Agencies (such as the Department of Health Care Policy and Financing) impacted by these rules? If so, have they been contacted and provided input on the proposed rules?

Yes / X / No

Have these rules been reviewed by the appropriate Sub-PAC Committee?

X / Yes / No

Date presented _October 7, 2010___. Were there any issues raised? ____ Yes _X_ No

If not, why.

Comments were received from stakeholders on the proposed rules:

Yes / X / No

If “yes” to any of the above questions, summarize and/or attach the feedback received by specifying the section and including the Department/Office/Division response. Provide proof of agreement or ongoing issues with a letter or public testimony by the stakeholder.

Rule-making Form SBA-3c (10/08)

10 CCR 2506-1

FOOD ASSISTANCE PROGRAM CERTIFICATION B4011.1 Cont.

B4011.1 APPLICATION PROCESSING

Rev. eff. The application process includes the filing and completion of an application form, being

10/1/81 interviewed and providing required and requested verification.

The food stamp ASSISTANCE office shall act promptly on all applications and provide food stamp ASSISTANCE benefits retroactive to the month of application to those households that have completed the application process and have been determined TO BE eligible. However, the allotment BENEFITS for an initial month of application shall be prorated to cover the number of days from the date of application to the end of the month. (See B4230.1)

Rev. eff. Households applying for public assistance shall be notified of their right to apply for food

11/1/01 stamp ASSISTANCE benefits at the same time, and shall be allowed to apply for food stamp ASSISTANCE at the same time they apply for public assistance benefits. County offices shall not apply additional conditions or processing requirements that are beyond those prescribed by State Food Stamp ASSISTANCE rules.

Beginning with the benefit month of March 2011, expanded categorical eligibility rules shall be used to determine eligibility for food assistance benefits. During the application process the food assistance office shall determine if all members of the household making an application for food assistance are eligible under expanded categorical eligibility rules. households that do not qualify under expanded categorical eligibility rules as outlined in Section B-4011.1, A, 1, a, will have their eligibility determined using either basic categorical eligibility or standard food assistance rules. The food stamp office shall determine during the application process if all members of the household making application for food stamp receive or are eligible to receive cash benefits from Title IV-A (Colorado Works), a program considered as Title IV-A Maintenance of Effort (MOE) that is funded with State money, or in-kind benefits or services from the Title IV-A Program; SSI; Old Age Pension (OAP); Aid to the Needy Disabled (AND); or, Aid to the Blind (AB) programs. Except for residents of public institutions who apply jointly for SSI and food stamp benefits prior to their release from a public institution, households in which all members receive or are eligible to receive Title IVA benefits, SSI benefits, OAP, AND, AB, or a combination of these benefits are deemed to be categorically eligible to receive food stamps. Households which are categorically eligible for food stamps do not require further verification of net or gross income, resources, residency, SSN, or sponsored alien information beyond that gathered by the categorically eligible program. Title IV-A, Title IV-A MOE, SSI, OAP, AND, or AB programs only have to authorize benefits for recipients in order for the recipient to be considered categorically eligible.