Rule-making#: / 13-8-19-1
Office/Division or Program: Office of Economic Security/Food Assistance / Rule Author: Amanda Dyer / 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.)
The purpose of the proposed rule change is to adjust the benefit amounts and to include the maximum and minimum benefit allotments that a household can receive in the food assistance rules.
The American Recovery and Reinvestment Act of 2009 (ARRA) authorized a temporary increase of 13.6% in the maximum benefit allotment a household is eligible to receive beginning April 1, 2009, and also increased the minimum allotment a one- or two-person household can receive. These temporary increases end October 31, 2013. Due to the temporary increases ending, the maximum and minimum benefit allotments have been adjusted by the United States Department of Agriculture, Food and Nutrition Service (USDA, FNS). The changes are effective November 1, 2013.
In previous years, updates to the maximum and minimum benefit allotments were communicated to county departments through an Agency Letter. However, this practice is no longer consistent with clarification received from the Office of Legislative Legal Services. As such, the current maximum and minimum allotments that have been in effect since April 1, 2009 are not outlined in rule. The Food Assistance Program is proposing to take this opportunity to promulgate the current maximum and minimum allotments into rule in addition to the changes that are effective November 1, 2013.
The Food Assistance Program is proposing to revise the following rules.
1. Revise Section B-4230, “Coupon Allotments and Identification Cards,” to include the charts that outline the maximum and minimum monthly benefit allotments for the time period April 1, 2009 through October 31, 2013, and the new amounts that are effective November 1, 2013. The maximum and minimum monthly allotments are set by USDA, FNS in accordance with federal regulations (7 CFR 271.2 and 273.10(e)(2)(ii)(C)).
Technical cleanup is also being completed to revise outdated terminology.
2. Revise Section B-4010.12, “Affected Allotments,” which incorrectly declares that all one- or two-person households shall be guaranteed a minimum allotment of ten dollars ($10).
3. Revise Section B-4230.1, “Initial Monthly Allotment Proration,” to remove the statement that the minimum benefit will be provided to all county departments through an Agency Letter and include a cross-reference to rule B-4230, which will have a chart of the minimum allotment.
Initial Review / 10/04/2013 / Final Adoption / 11/08/2013Proposed Effective Date / 11/01/2013 / EMERGENCY Adoption / 10/04/2013
DOCUMENT 2
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[Note: “Strikethrough” indicates deletion from existing rules and “all caps” indicates addition of new rules.]
STATEMENT OF BASIS AND PURPOSE (continued)
4. Revise Section B-4430.4, B, “Methods of Collecting Payments on Claims,” which incorrectly lists the minimum allotment as ten dollars ($10). Technical cleanup is also being completed to revise outdated terminology.
An emergency rule-making (which waives the initial Administrative Procedure Act noticing requirements) is necessary:
X / to comply with state/federal law and/orto preserve public health, safety and welfare
Explain: An emergency rule-making is necessary in order to have the new maximum and minimum food assistance benefit allotment amounts promulgated into rule by the federally mandated effective date of the change, which is November 1, 2013.
Authority for Rule:
State Board Authority: 26-1-107, C.R.S. (2013) - State Board to promulgate rules; 26-1-109, C.R.S. (2013) - state department rules to coordinate with federal programs; 26-1-111, C.R.S. (2013) - state department 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)
26-2-301, C.R.S. (2013) - designates the state Department of Human Services to administer the Food Assistance Program;
26-2-302, C.R.S. (2013) - requires that the Food Assistance Program be in compliance with federal requirements
Food, Conservation and Energy Act of 2008 (2008 Farm Bill);
7 CFR 2713.10(e)(2)(ii)(C) - minimum benefit amount;
7 CFR 273.10(e)(4) - maximum benefit amount;
The American Recovery Reinvestment Act of 2009 (ARRA) authorized the changes to the maximum and minimum benefit allotments
STATEMENT OF BASIS AND PURPOSE (continued)
Yes / X / NoYes / X / No
Does the rule incorporate material by reference?
Does this rule repeat language found in statute?
If yes, please explain.
The program has sent this proposed rule-making package to which stakeholders?
● Office of Economic Security Sub-Pac
● Food Assistance monthly meeting with ten large counties
● Aurora Community Connection
● Hunger Free Colorado
● Share Our Strength/Cooking Matters
● Care and Share
● Weld Food Bank
Attachments:
Regulatory Analysis
Overview of Proposed Rule
Stakeholder Comment Summary
Rule-making Form SBA-3a (09/12)
Title of Proposed Rule: / Update to the Maximum and Minimum Benefit Allotment for Food AssistanceRule-making#: / 13-8-19-1
Office/Division or Program:Office of Economic Security/Food Assistance / Rule Author: Amanda Dyer / 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?
Food assistance applicants and participants are the affected persons.
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?
Changes to the maximum and minimum allotments will have an adverse effect on food assistance participants since the changes will result in a decrease to a household’s ongoing monthly benefit amount. It cannot be determined how much each household’s benefits will decrease since a household’s monthly benefit amount depends on many factors, such as income, household size, and expenses. However, the chart below illustrates the amount of reduction for those households that receive the maximum food assistance allotment. Households that receive the maximum allotment are those household that have little to no income. The reduction is required by federal law and cannot be prevented, delayed, or modified by the state of Colorado. All households currently receiving assistance were mailed a letter in September notifying them of the decrease that is effective November 1, 2013.
Household Size / Maximum monthly allotmentEffective April 1, 2009 / Maximum monthly allotment Effective November 1, 2013
1 / $ 200 / $ 189
2 / $ 367 / $ 347
3 / $ 526 / $ 497
4 / $ 668 / $ 632
5 / $ 793 / $ 750
6 / $ 952 / $ 900
7 / $1,052 / $ 995
8 / $1,202 / $1,137
Each additional person / $150 / $142
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)
Changes to CBMS are necessary to implement the new maximum and minimum allotments. This change is considered a regular, annual system maintenance cost.
County Fiscal Impact
There are no county fiscal impacts.
Federal Fiscal Impact
There are no federal fiscal impacts.
Other Fiscal Impact (such as providers, local governments, etc.)
There are no other impacts associated with this rule change.
4. Data Description:
List and explain any data, such as studies, federal announcements, or questionnaires, which were relied upon when developing this rule?
The Colorado Food Assistance Program does not have any discretion in developing the maximum and minimum benefit allotments or preventing or delaying the decrease from occurring. Federal announcements informing states of the changes were used when developing this rule.
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.
There are no alternatives to this rule-making since guidance received from the Office of Legislative Legal Services requires that changes in food assistance benefit amounts be promulgated in rule by the effective date of the change.
Rule-making Form SBA-3a (09/12)
Title of Proposed Rule: / Update to the Maximum and Minimum Benefit Allotment for Food AssistanceRule-making#: / 13-8-19-1
Office/Division or Program: Office of Economic Security/Food Assistance / Rule Author: Amanda Dyer / 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
4010.12 / Households shall be guaranteed a minimum allotment of $10 for one or two person households. / Remove the reference to $10 and include a cross reference to rule B-4230, which will contain a chart of the current minimum allotment. / __ / Yes / X / No4230 / Allotment tables will be adjusted as announced by the USDA, and the information will be sent in an Agency Letter to all county departments. / Add a table of the maximum and minimum allotments. / __ / Yes / X / No
4230.1, E / The current amount of the minimum benefit will be sent in an Agency Letter to all county departments. / Include a cross reference to rule B-4230, which will contain a chart of the current minimum allotment. / __ / Yes / X / No
4430.4 / Households receiving a minimum $10 allotment will have their benefits reduced in accordance with the provisions of this section when repaying an overpayment through allotment reduction. / Remove the reference to $10 and include a cross reference to rule B-4230, which will contain a chart of the minimum allotment. / __ / Yes / X / No
Rule-making Form SBA-3c (10/08)
Title of Proposed Rule: / Update to the Maximum and Minimum Benefit Allotment for Food AssistanceRule-making#: / 13-8-19-1
Office/Division or Program: Office of Economic Security/Food Assistance / Rule Author: Amanda Dyer / Phone: 303-866-2538
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, and Sub-PAC):
No other program areas were included in the development of these proposed rules. The Office of Legislative Legal Services has provided direction on how to handle annual updates to the Program and stated that the annual updates must be promulgated into rule.
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:
● Office of Economic Security Sub-Pac
● Food Assistance monthly meeting with ten large counties
● Aurora Community Connection
● Hunger Free Colorado
● Share Our Strength/Cooking Matters
● Care and Share
● Weld Food Bank
Are other State Agencies (such as Colorado 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 / NoHave these rules been reviewed by the appropriate Sub-PAC Committee?
Yes / X / NoDate presented ______. Were there any issues raised? ____ Yes __X__ No
If not, why: The rule-making package will be shared with the Sub-PAC committee during the October 2013 meeting. Sub-PAC members been informed of the changes that are occurring to the maximum and minimum allotments and the impact it will have on food assistance participants and county departments.
Comments were received from stakeholders on the proposed rules:
Yes / X / NoIf “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-3d (12/11)
(10 CCR 2506-1)
B-4010.12 AFFECTED ALLOTMENTS
Whenever suspension or cancellation of allotments is ordered for a particular month, it shall affect all households. If a reduction is ordered, reduced benefits shall be calculated for all households for the designated month. However, all households shall be guaranteed a THE minimum allotment of $10 for one or two person households, unless the reduction is ninety percent or more. Refer to section B-4230, “Benefit Allotments,” for the current amount of the minimum allotment.
Allotments or portions of allotments representing restored or retroactive benefits for a prior unaffected month would not be reduced, suspended or cancelled, even though they are issued during a month in which cancellation, suspension or reduction is in effect.
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B-4230 COUPON Benefit ALLOTMENTS AND IDENTIFICATION CARDS [Eff. 07/01/09]
After eligibility has been established, the monthly coupon benefit allotment will be determined. The eligibility technician shall use either the basis of issuance charts furnished under separate transmittal letter or the following formula to determine the monthly allotment.
A. Multiply the net monthly income by thirty percent (30%).
B. Round the product up to the next whole dollar if it ends in 1 through 99 cents.
C. Subtract the result from the Thrifty Food Plan maximum monthly benefit allotment table shown below for the appropriate household size. If computation results in $1, $3, or $5, round up to $2, $4 or $6 respectively.
D. Except for an initial month, if the allotment for a one- or two-person household is less than $10 the minimum monthly allotment, round the allotment up TO the minimum benefit allowed for one- or two-person household as outlined in the table below. If the calculation of benefits for an initial month is less than ten dollars ($10), then no benefits shall be issued to the household for the initial month.