Rule-Making Standards and Procedures s16

Title of Proposed Rule: / Food Assistance Federal Fiscal Year 2015 Standard Utility Allowance Update and Cost of Living Adjustments
Rule-making#: / 14-8-12-1
Office/Division or Program: Office of Economic Security/ Division of Food and Energy Assistance / Rule Author: Karen Dyke / Phone: 303-866-4328
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 proposed rule change is necessary to be in compliance with federal regulations and serves two purposes:

A. The first purpose is to revise five (5) Food Assistance Program rules (10 CCR 2506-1) to outline the Federal Fiscal Year (FFY) 2015 income eligibility standards and deductions that are adjusted annually to be effective each October 1st. The adjustments are based on a cost of living adjustment (COLA) as determined by the United States Department of Agriculture, Food and Nutrition Service (USDA, FNS). Colorado received the FFY15 COLA adjustments on August 4, 2015. The following eligibility standards and deductions will be updated:

● Gross income standard for one hundred thirty percent (130%), one hundred sixty five percent (165%), and two hundred percent (200%) of the Federal Poverty Level (FPL)

● Net income standard for 100% of the FPL

● Standard deduction

● Maximum shelter deduction

● Maximum and minimum benefit allotments

The Food Assistance Program proposes revising the following five (5) rules:

1. Revise Section 4.207.3, “Benefit Allotment,” to outline the FFY15 maximum and minimum benefit allotments [and to remove prior year’s standards].

2. Revise Section 4.401.1,C, “Gross Income Eligibility Determination,” to incorporate the FFY15 gross monthly income eligibility standard for 130%, 165%, and 200% of the Federal Poverty Level (FPL) [and to remove prior year’s standards].

3. Revise Section 4.401.2, D, “Net Income Eligibility Determination,” to incorporate the FFY15 net monthly income eligibility standard for 100% of the FPL [and to remove prior year’s standards].

4. Revise Section 4.407.1, “Standard Deduction,” to incorporate the FFY15 standard deduction [and to remove prior year’s standards].

5. Revise Section 4.407.3, B, “Excess Shelter Deduction,” to incorporate the FFY15 shelter deduction cap [and to remove prior year’s standards].

Initial Review / 09/05/2014 / Final Adoption / 10/03/2014
Proposed Effective Date / 10/01/2014 (emergency)
12/01/14 (final/permanent) / EMERGENCY Adoption / 09/05/2014

DOCUMENT 3

______

[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)

B. The second purpose is to revise Section 4.407.31, A-D, “Four-Tiered Mandatory Standard Utility Allowance,” to incorporate the FFY 2015 standard utility allowances (SUA). Federal regulation 7 CFR 273.9(d)(6)(iii)(B) requires states to annually review its standard utility allowance and to make adjustments based on changes in the current cost of living.

The Colorado Food Assistance Program utilizes a four-tiered mandatory Standard Utility Allowance when determining a household’s shelter deduction and food assistance allotment. Households with income and who are responsible for paying utility costs are eligible to receive a utility deduction based on one of the four tiers.

Colorado received federal approval to continue to utilize the Consumer Price Index for all Urban Consumers (CPI-U) to determine the FFY 2015 SUA amounts, which resulted in a 1.88% increase to each of the four tiers when using CPI-U data from May 2013 through June 2014.

The [______] FFY15 SUA amounts are as follows:

SUA Tier / Rule / [__] / FFY15
Heating and Cooling Utility Allowance (HCUA) / Section 4.407.31, A, 4 / [__] / $462
Basic Utility Allowance (BUA) / Section 4.407.31, B, 3 / [__] / $291
One Utility Allowance (OUA) / Section 4.407.31, C, 3 / [__] / $55
Telephone Allowance / Section 4.407.31, D, 2 / [__] / $74

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

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

Explain: An emergency rule-making is necessary in order to maintain compliance with federal regulations regarding the FFY 2015 SUA and COLA increases. These changes must be promulgated into rule by the mandatory implementation date of October 1, 2014.

Authority for Rule:

State Board Authority: 26-1-107, C.R.S. (2012) - 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 Colorado Department of Human Services as the responsible agency to administer the Food Assistance Program in the state of Colorado;

26-2-302, C.R.S. (2013) - prohibits any interference that would prevent the Colorado Department of Human Services from complying with federal mandates prescribed under the federal “Food Stamp Act” as amended.

STATEMENT OF BASIS AND PURPOSE (continued)

Agricultural Act of 2014 (2014 Farm Bill) - federal program authority ;

7 CFR 273.9(a) - federal regulations pertaining to income eligibility thresholds for the program ;

7 CFR 273.9(d)(1)(i) - federal regulations pertaining to the standard deduction;

7 CFR (d)(6)(ii) - federal regulations pertaining to the maximum shelter deduction;

7 CFR (d)(6)(iii) - federal regulations pertaining to the maximum standard utility allowances;

7 CFR 273.10(e)(4)(i) - federal regulations pertaining to the maximum Food Assistance allotment levels.;

7 CFR 273.10(e)(2)(ii)(C) - federal regulations pertaining to the minimum Food Assistance allotment levels for eligible one and two person households;

7 CFR 273.12(e) - federal regulations pertaining to mass changes.

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.

The program has sent this proposed rule-making package to which stakeholders?

Office of Economic Security Sub-PAC; Food Assistance Performance Improvement Plan monthly meeting which consists of representatives from the ten largest counties

Attachments:

Regulatory Analysis

Overview of Proposed Rule

Stakeholder Comment Summary

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 Program participants and applicants will be affected by this rule change.

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?

Applicants and participants in the Food Assistance Program will not be adversely affected by this rule change. Increases to the standard deduction, shelter expense deduction, four-tiered standard utility allowance, benefit allotment amounts, and income threshold guidelines have the potential to increase current benefit amounts for participants and increase program accessibility for future applicants. Food assistance benefits will not be decreased as a result of the FFY15 adjustments.

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)

Costs associated with the Colorado Benefits Management System to incorporate these changes have already been allocated in the system maintenance budget.

County Fiscal Impact

There are no county fiscal impacts associated with this rule change.

Federal Fiscal Impact

There are no federal fiscal impacts associated with this rule change.

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

There are no other fiscal impacts associated with this rule change.

REGULATORY ANALYSIS (continued)

4. Data Description:

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

Federal memorandums from the Food and Nutrition Service as well as data from the 2014 Consumer Price Index for all Urban Consumers were used in the development of 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.

No available alternatives exist to incorporate these program changes state-wide.

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

4.207.3, E / The maximum monthly Food Assistance benefit allotments and the minimum allotment for households are represented in table form / Add a column to each table representing the increases for FFY 2015 [and remove prior year’s standards] / __ / Yes / X / No
4.401.1, C / The gross income limits for households subject to income thresholds for 130%, 165%, and 200% of the federal poverty level are represented in table form / Add an additional table representing the gross income limits assessed for FFY 2015 [and remove prior year’s standards] / __ / Yes / X / No
4.401.2, D / The net income limits reflecting 100% of the federal poverty level are represented in table form as applicable to each household size / Add an additional table representing the net income limits assessed for FFY 2015 [and remove prior year’s standards] / __ / Yes / X / No
4.407.1 / The standard deduction that applies to all households is represented in table form / Add a row to the existing table to include values for FFY 2015 [and remove prior year’s standards] / __ / Yes / X / No
4.407.3 / A table format outlines the highest possible shelter expense deduction for households whose monthly shelter expenses exceed 50% of the total countable income after income deductions are applied. This is referred to as the shelter deduction cap. / Add a row to the existing table to incorporate FFY 2015 increases [and remove prior year’s standards] / __ / Yes / X / No
4.407.31, A, 4 / The standard utility allowance is based on a four tiered model per utility type. For households incurring heating and cooling costs, the HCUA deduction is granted. / Add a row to the existing table to incorporate FFY 2015 increases [and remove prior year’s standards] / __ / Yes / X / No
4.407.31, B, 3 / For households incurring more than one utility expense which does not include heating and cooling, the BUA deduction is granted. / Add a row to the existing table to incorporate FFY 2015 increases [and remove prior year’s standards] / __ / Yes / X / No
4.407.31, C, 3 / For households incurring just one non heating or cooling or telephone expense, the OUA deduction is granted. / Add a row to the existing table to incorporate FFY 2015 increases [and remove prior year’s standards] / __ / Yes / X / No
4.407.31, D, 2 / For households incurring only a telephone expense, the telephone allowance is granted. / Add a row to the existing table to incorporate FFY 2015 increases [and remove prior year’s standards] / __ / Yes / X / No

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):

Additional program areas were not solicited for input in the development of these proposed rules as the cost of living adjustments are determined by USDA, FNS, and the SUA amounts are based on federal approval. Past guidance from the Office of Legislative Legal Services and the Food and Nutrition Service has supported the practice of incorporating SUA and COLA changes into state 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 Performance Improvement Plan monthly meeting which consists of representatives from the ten largest counties

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 / No

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

Yes / x / No

Date presented _September ______. Were there any issues raised? ____ Yes ____ No

If not, why. These changes will be presented to the Sub-PAC committee in September.