Tracking# 2008-00903
Emergency adoption 9/5/08, eff. 10/1/08
Final (permanent) adoption 10/3/08, eff. 12/1/08

I:/08081201.rtf
[I:/08081201.doc]

(10 CCR 2506-1)

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Revisions to Sections B-4010, B-4010.1, B-4010.11, B-4011.21, B-4100, B-4220.11, B-4220.12, B-4222.7, B-4223, B-4223.1, B-4223.4, B-4223.5, B-4223.51, B-4224.1, B-4224.2, B-4224.3, B-4225.5, B-4230, and B-4242.11 were final (permanent) adoption of emergency rules at the at the 10/3/2008 State Board meeting, with an effective date of 12/1/2008 (Rule-making# 08-8-12-1).  Statement of Basis and Purpose and specific statutory authority for these revisions were incorporated by reference into the rule. These materials are available for review by the public during normal working hours at the Colorado Department of Human Services, Boards and Commissions Division, State Board Administration.

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B-4010  GENERAL PROVISIONS [Rev. eff. 12/1/08]
This material sets forth rules, policies and procedures concerned with eligibility determination and certification of persons who apply to participate in the Food Stamp Program, and, if determined eligible, the requirements concerning the use of food stamps. The rules and regulations herein are promulgated in accordance with program regulations of the United States Department of Agriculture (USDA), 7 CFR 271–274 (2008), as amended, and the State Plan of Operation. The rules contained in this manual do not include any later amendments to or editions of the incorporated material. Copies of 7 CFR Parts 271 through 274 are available for inspection during normal working hours or by contacting: Director, Food Assistance Programs Division, Colorado Department of Human Services, 1575 Sherman Street, Denver, Colorado 80203. 
B-4010.1  PURPOSE [Rev. eff. 12/1/08]
The purpose of the Food Stamp program as expressed by the United States Congress in Section 2 of the Food and Nutrition Act of 2008, Public Law No. 110-246 (codified at 7 USC 2011), is as follows: 
“It is declared to be the policy of Congress, in order to promote the general welfare, to safeguard the health and well-being of the Nation's population by raising levels of nutrition among low-income households. Congress hereby finds that the limited food purchasing power of low-income households contributes to hunger and malnutrition among members of such households. Congress further finds that increased utilization of food in establishing and maintaining adequate national levels of nutrition will promote the distribution in a beneficial manner of the Nation's agricultural abundance and will strengthen the Nation's agricultural economy, as well as result in more orderly marketing and distribution of foods. To alleviate such hunger and malnutrition, a food stamp program is herein authorized which will permit low-income households to obtain a more nutritious diet through normal channels of trade by increasing food purchasing power for all eligible households who apply for participation.” 
B-4010.11  REDUCTION, SUSPENSION OR CANCELLATION PROCEDURES [Em. eff. 10/1/08, permanent eff. 12/1/08]
The Food and Nutrition Act of 2008 directs the Secretary of Agriculture to reduce, suspend or cancel food stamp benefits if it is necessary to keep program spending within the limits set by Congress. Upon notification from FNS, the State Office shall instruct food stamp offices to reduce, suspend or cancel food stamp benefits for one or more months. Food stamp offices shall take immediate action in accordance with the following procedures: 
A.  Reduction of benefits
If the State Office instructs the food stamp offices to reduce monthly food stamp allotments, the State shall notify the food stamp offices of the date the reduction is to take effect. If an allotment reduction is necessary, allotments shall be reduced for each household size by the same percentage. If a benefit reduction is necessary, all households shall be guaranteed a minimum allotment of $14 for one and two person households, unless the reduction is ninety percent or more. Revised issuance tables reflecting the percentage of reduction shall be provided to all food stamp offices.
The food stamp offices will adjust allotments at the point of issuance. If an FS-9 (household issuance record) system is utilized, the county/state issuance offices shall record, in the certification data section of the FS-9 Card, the coupon allotment that the household was eligible to receive. The food stamp issuance office shall record, in the record of issuance section of Form FS-9, the coupon allotment that the household was issued. This will provide record of benefits household was entitled to receive and benefits the household actually received under required benefit reduction.
B.  Suspension and Cancellation
If the State Office instructs the food stamp offices to suspend or cancel Food Stamp Program Benefits, the food stamp offices shall be informed of the date that the suspension or cancellation shall take effect. Upon receipt of this date, the counties shall take immediate action to effect the suspension or cancellation. This action shall include notification of certification and issuance personnel, as well as eligible households (see B-4010.15). In the event that cancellation or suspension of benefits is necessary, the provision for a $14 minimum benefit level shall be disregarded and all households shall have their benefits suspended or cancelled.
If allotments are cancelled or suspended, food stamp offices shall record, in the certification data section of the FS-9 Card, the monthly allotment the household was entitled to receive.

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B-4011.21  Waiver of Office Interview [Rev. eff. 12/1/08]
The office interview shall be waived if requested by any household which is unable to appoint an authorized representative and which has no household members able to come to the food stamp office because they are sixty (60) years of age or older, or have a mental or physical disability, or residents of a shelter for battered women and children. The food stamp office shall waive the office interview on a case-by-case basis for a household whenever desirable, such as an instance when the household is unable to appoint an authorized representative and which has no household member able to come to the food stamp office because of transportation difficulties or other hardships. The household must be notified that the face-to-face interview will be waived in favor of a telephone interview on a case-by-case basis because of a household hardship which may prevent the customer from coming to the office. These hardship conditions include, but are not limited to:
A.  Illness or the need to care for someone;
B.  Work schedule; 
C.  Loss of pay or fear of loss of job;
D.  The household members are sixty years of age or older;
E.  The household member is mentally or physically disabled;
F.  The household has an adult who has earned income; 
G.  The household has an adult in school or training;
H.  Residency is in a rural area;
I.  Prolonged severe weather;
J.  Transportation difficulties including if the household does not own a vehicle or does not have transportation available; 
K.  Family violence or harassment or stalking;
L.  Work hours or employment training hours; and 
M.  Any other challenge which precludes an in-office interview. The food stamp office shall document in the case file the reason that a requested waiver was granted or denied.
The food stamp office shall conduct a telephone interview or a home visit in cases in which the office interview is waived. Home visits shall be scheduled in advance with the household. Waiver of the office interview does not exempt the household from the verification requirements, although special procedures may be used, and shall not affect the household's certification period.

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B-4100  FOOD STAMP APPLICANT HOUSEHOLDS [Em. eff. 10/1/08, permanent eff. 12/1/08]
All applications shall be submitted on behalf of a household. A household may be composed of any of the following individuals or groups of individuals:
A.  An individual living alone.
B.  An individual living with others but customarily purchasing food and preparing meals for home consumption separate and apart from the other.
C.  A group of individuals living together for whom food is customarily purchased in common and for whom meals are prepared together for home consumption.
D.  An individual who is sixty (60) years of age or older, and the spouse of such individual, living with others, who is unable to purchase and prepare meals because he/she suffers from a disability considered permanent under the Social Security Act or suffers from a non-disease-related, severe, permanent disability.  However, the income (all nonexempt earned and unearned income) of the other members (excluding the disabled person and spouse) with whom the individual resides cannot exceed 165% of the non farm poverty level according to household size as shown below: 

Household Size	Income Limit	
1	$1,430	
2	1,925	
3	2,420	
4	2,915	
5	3,410	
6	3,905	
7	4,400	
8	4,895	
Each Additional Member	+  495	

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B-4220.11  Net Income for Eligibility [Em. eff. 10/1/08, permanent eff. 12/1/08]
A household which contains an elderly or disabled member as defined in Section B-4214.1, Subsection C, shall be eligible for food stamp benefits if its monthly nonexempt earned and unearned income, less the earned income, standard, medical, dependent care and unlimited excess shelter deduction does not exceed the maximum net income level.  The maximum monthly income level is the federal poverty level according to household size as shown below.
If a household contains a member who is 59 years old on the date of application, but who will become 60 before the end of the month of application, the food stamp office shall determine the household's eligibility as if the person is 60 years of age.
MAXIMUM NET INCOME LEVELS				
Household Size	Maximum Monthly Net Income	
1	$ 867	
2	1,167	
3	1,467	
4	1,767	
5	2,067	
6	2,367	
7	2,667	
8	2,967	
For each additional household member add $300.		

B-4220.12  Gross Income Eligibility Determination [Em. eff. 10/1/08, permanent eff. 12/1/08]
A household (including a household considered destitute) which does not contain an elderly or disabled member, as defined in Section B 4214.1, Subsection C, may be eligible if its monthly non exempt earned and unearned income does not exceed the gross income level.  The gross income level is 130% of the federal poverty level according to household size, as shown below.
MAXIMUM GROSS INCOME LEVELS				
Household Size	Maximum Monthly Gross Income	
1	$1,127	
2	1,517	
3	1,907	
4	2,297	
5	2,687	
6	3,077	
7	3,467	
8	3,857	
For each additional household member add $390.	  	

Except for households which are categorically eligible a household without an elderly or disabled member shall be ineligible for food stamps if its monthly income, before deductions, exceeds the gross income level.  In such case, there is no computation to consider deductions. Instead, a Form FS 4, Notice of Action, is completed to deny the household.
A household whose income does not exceed the gross income level shall then have its eligibility for benefits computed allowing the earned income, the standard, and the limited dependent care/excess shelter deductions, as appropriate.  Such a household will be eligible only if its monthly gross income less allowable food stamp deductions is below the eligibility level as shown in the maximum net income levels table in Section B 4220.11. A household which exceeds the eligibility level must be denied.

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B-4222.7  EXCLUDED BY OTHER FEDERAL STATUTE [Em. eff. 10/1/08, permanent eff. 12/1/08]
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11.  Military combat payments received by a member of the United States Armed Forces deployed to a designated combat zone shall be excluded from the household income for the duration of the member’s deployment as long as the additional payment was not received immediately prior to serving in a combat zone. 
12.  Mandatory deductions from military pay for education purposes while the individual is enlisted.
(P.L. No. 99-576, Veterans' Benefits Improvement and Health-Care Authorization Act of 1986, Section 303(a)(1), 8/7/86.) Section 216 of P.L. No. 99-576 authorizes stipends for participation in study of Vietnam-Era veterans' psychological problems which are not excluded from income.
13.  Payments to U.S. citizens of Japanese ancestry and resident Japanese aliens of up to $20,000 each and payments to certain eligible Aleuts of up to $12,000 each. (P.L. No. 100-383, Civil Liberties Act of 1988.)
14.  Emergency assistance payments made by a state or local agency for migrants or seasonal farm-workers in the jobstream. (P.L. No. 100-387.)
15.  Benefits received from the special supplemental food program for women, infants and children (WIC), including coupons which can be exchanged for food at farmers' markets or part of a WIC demonstration project, (P.L. No. 92-443). This payment is excluded as an in-kind benefit. (P.L. No. 100-435, Section 501, 9/19/88, amended Child Nutrition Act)
16.  P.L. No. 100-485, Section 301, the Family Support Act, 10/31/88 which amended Section 402 (g)(1)(E) of the Social Security Act. The value of any child care payments made under Title IV-A of the Social Security Act, including transitional child care payments, are excluded from income.
17.  Payments made from the Agent Orange Settlement Fund (P.L. No. 101-201). All payments from the Agent Orange Settlement fund or any other fund established pursuant to the settlement in the Agent Orange product liability litigation are excluded from income retroactive to January 1, 1989. The disabled veteran will receive yearly payments. Survivors of deceased disabled veterans will receive a lump-sum payment. These payments were disbursed by the AETNA insurance company.
P.L. No. 101-239, 12/19/89, the Omnibus Budget Reconciliation Act of 1989, Section 10405, also excludes payments made from the Agent Orange settlement fund or any other fund established pursuant to the settlement in the Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.) from income in determining eligibility or the amount of benefits under the Food Stamp Program.
Note: P.L. No. 102-4, Agent Orange Act of 1991, 2/6/91, authorized veterans' benefits to some veterans with service connected disabilities resulting from exposure to Agent Orange. These VA payments are not excluded by law.
18.  P.L. No. 101-508, Section 5801, which amended Section 402(i) of the Social Security Act, 11/5/90. At-risk block grant child care payments made under section 5801 are excluded from being counted as income for food stamp purposes and no deduction may be allowed for any expense covered by such payments.
19.  P.L. No. 101-508, 11/5/90, the Omnibus Budget Reconciliation Act of 1990, Title XI Revenue Provisions, Section 11111, Modifications of Earned Income Tax Credit, subsection (b) provides that any earned income tax credit shall not be treated as income. This provision is effective with taxable years beginning after December 31, 1990.
20.  Any payment made to an Employment First participant for costs that are reasonably necessary and directly related to participation in the Employment First program. These costs include, but are not limited to, dependent care costs, transportation, other expenses related to work, training or education, such as uniforms, personal safety items or other necessary equipment, and books or training manuals. These costs shall not include the cost of meals away from home. Also, the value of any dependent care services provided for or arranged by the Employment First Unit is excluded.
21.  Amounts necessary for the fulfillment of a Plan for Achieving Self-Support (PASS) under Title XVI of the Social Security Act (P.L. No. 102-237). This money may be spent in accordance with an approved PASS or deposited into a PASS savings account for future use.
22.  Any money received from the Radiation Exposure Compensation Trust Fund pursuant to P.L. No. 101-426 as amended by P.L. No. 101-510.
23.  P.L. No. 102-586, signed 11/4/92, Section 8, amended the Child Care and Development Block Grant Act Amendments of 1992 by adding a new Section 658S to exclude the value of any child care provided or arranged, or any amount received as payment for such care or reimbursement for costs incurred for such care from income for purposes of any other federal or federally assisted program that bases eligibility, or the amount of benefits, on need.
24.  P.L. No. 101-610, Section 17(d), 11/16/90, National and Community Service Act (NCSA) of 1990, provides that Section 142(b) of the JTPA applies to projects conducted under Title I of the NCSA as if such projects were conducted under the JTPA. Title I includes three Acts:
●  Serve-America: the Community Service, Schools and Service-Learning Act of 1990
●  American Conservation and Youth Service Corps Act of 1990
●  National and Community Service Act
There are about 47 different NCSA programs and they vary by state. Most of the payments are made as a weekly stipend or for educational assistance. The Higher Education Service-Learning program and the AmeriCorps umbrella program come under this title. The National Civilian Community Corps (NCCC) is a federally managed AmeriCorps program. The Summer for Safety program is an AmeriCorps program under which participants earn a stipend and a $1,000 post-service educational award. The National and Community Service Trust Act of 1993 (P.L. No. 103-82, 9/23/93) amended the National and Community Services Act of 1990, but did not change the exclusion.
25.  P.L. No. 101-625, Section 22(i), Cranston-Gonzales National Affordable Housing Act, 11/28/90, 42 U.S.C.S. 1437t(i), provides that no service provided to a public housing resident under this section (Family Investment Centers) may be treated as income for purposes of any other program or provision of state or federal law.
This exclusion applies to services such as child care employment training and counseling, literacy training, computer skills training, assistance in the attainment of certificates of high school equivalency, and other services. The exclusion does not apply to wages or stipends.
P.L. No. 101-625, Section 522(i)(4), excludes most increases in the earned income of a family residing in certain housing while participating in HUD demonstration projects authorized by P.L. No. 101-625. Demonstration projects are authorized by P.L. No. 101-625 for Chicago, Illinois, and three other locations. The affected offices will be contacted individually regarding these projects.
26.  P.L. No. 103-286, Section 1(a), 8/1/94, Section 1(a), provides in part that payments made to individuals because of their status as victims of Nazi persecution shall be disregarded in determining eligibility for and the amount of benefits or services to be provided under any federal or federally assisted program which provides benefits or services based, in whole or in part, on need.
27.  P.L. No. 103-322, Section 230202, 9/13/94, Amendments to Section 1403 of the Crime Act of 1984 (42 U.S.C. 10602) provides in part that, notwithstanding any other law, if the compensation paid by an eligible crime victim compensation program would cover costs that a federal program or a federally financed state or local program would otherwise pay:
a.  Such crime victim compensation program shall not pay that compensation.
b.  The other program shall make its payments without regard to the existence of the crime victim compensation program.
Based on this language, payments received under this program must be excluded from income for food stamp purposes.
28.  P.L. No. 104-204, 9/25/96, requires that allowances paid under this law to children of Vietnam veterans who were born with spina bifida be excluded from income.
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B-4223  DEDUCTIONS FROM INCOME [Em. eff. 10/1/08, permanent eff. 12/1/08]
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Households may elect to have medical expenses averaged as described in the section “Determining Medical Expenses”. Expenses that have been averaged are subject to the reporting requirements contained in the section “Changes Households are Required to Report”.
Actual or averaged expenses that result in deductions for medical, dependent care and shelter costs shall be anticipated. (Households who expect changes cannot have their expenses averaged solely on the basis of the last several bills.)
Expenses that are billed on a weekly or biweekly basis shall be converted to a monthly figure utilizing the FS-16 conversion chart.
The following subsections contain the only deductions allowed from a household's monthly income.
B-4223.1  STANDARD AMOUNT [Em. eff. 10/1/08, permanent eff. 12/1/08]
A standard deduction of 8.31% of the Federal poverty income guidelines for the household size will be used to calculate the amount allowed to all households. The established standard amount will be adjusted annually as announced by the Food and Nutrition Service, USDA. The calculation of 8.31% of the Federal poverty income guidelines for eligible members will be used for all households up to the household size of six. All households with 6 or more eligible members will use the six person standard deduction.

STANDARD DEDUCTION	
Household Size	1-3        4           5           6+	
Deduction	$144     $147     $172     $197	

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B-4223.4  DEPENDENT CARE [Rev. eff. 12/1/08]
Dependent care expenses as billed to a household member or as paid by or billed to a person disqualified for being an ineligible non-citizen or failure to provide or apply for a SSN for the care of a child or disabled dependent when it is necessary for a household member to accept or continue employment seek employment, or attend training or pursue education which is preparatory to employment, shall be considered. Dependent care expenses which are paid by or billed to the disqualified person shall be divided equally among all household members and the disqualified person All except the disqualified member's share is considered for a deduction.
The dependent care deduction that is paid by or billed to individuals disqualified for intentional program violation/fraud will be allowed in its entirety. 
Only direct monetary payments to an agency or a person outside of the household will be allowable. The value of in-kind benefits paid to an attendant, such as meals, is not considered for a dependent care deduction.
A child care expense which is reimbursed or paid for by the JOBS program under Title IV-F of the Social Security Act or the Transitional Child Care (TCC) program shall not be a deductible expense.
The total dollar amount that the household is responsible to pay for dependent care expenses is deductible.
Refer to the section “Excess Medical” if the attendant care is for a household member who is age sixty (60) or older or who receives SSI or Social Security disability payments, the attendant costs, including meals provided, shall be considered as a medical expense.
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B-4223.5  EXCESS SHELTER [Em. eff. 10/1/08, permanent eff. 12/1/08]
A.  Households shall receive a deduction for the allowable monthly shelter costs that are in excess of 50% of the household's income after all other deductions. Shelter expenses are allowed as billed to a household member or as paid or billed to a disqualified individual. Shelter costs which are paid by or billed to a person disqualified for fraud shall be allowed as a deduction for eligible members in their entirety. Shelter costs, paid or billed to a person disqualified for being an ineligible alien or for failure to provide a Social Security number shall be divided evenly among all household members and the disqualified individual. All except the disqualified person's pro rata share is counted as a shelter cost of the household.
B.  The shelter deduction cap shall not exceed $446 per month. The shelter limit applies to households that do not contain an elderly and/or a disabled member. Elderly or disabled members are defined in Section B 4214.1, Subsection C. Those households containing an elderly or disabled individual shall receive an excess shelter deduction for the monthly cost of shelter that exceeds 50% of the household's monthly income after all other applicable deductions.
C.  Homeless households shall be entitled to use a standard estimate of shelter expenses for households in which all members are homeless and are not receiving free shelter throughout the calendar month.  The USDA Food and Nutrition Service provides a current estimate of $143 and will update this figure annually when the shelter cap for other households is adjusted.
All homeless households which incur or reasonably expect to incur shelter costs during a month shall be eligible for the estimate unless higher shelter costs are verified, at which point the household may use actual shelter costs rather than the estimate. If a homeless household has difficulty in obtaining traditional types of verification of shelter costs, the worker shall use prudent judgment in determining if verification obtained is adequate. Homeless households which incur no shelter costs during the month shall not be eligible for the standard estimate.
D.  The household may claim both the costs of its actual residence and those for a home that is not occupied by the household because of (1) employment or training away from home, (2) illness, or (3) abandonment caused by a natural disaster or casualty loss. For costs of a home vacated by the household to be included in the household's shelter costs, the household must intend to return to the home; the current occupants of the home, if any, must not be claiming the shelter costs for food stamp purposes; and the home must not be leased or rented during the absence of the household.
E.  Allowable shelter costs shall include only the following:
1.  Continuing charges for the shelter, including rent, mortgages, condo, and association fees or other continuing charges leading to the ownership of the shelter such as loan repayments for the purchase of a mobile home, including interest on such payments.
2.  Property taxes, State and local assessments, and insurance on the structure itself, but not separate costs for insuring furniture or personal belongings.
3.  Charges to repair or rebuild a home substantially damaged or destroyed due to a natural disaster such as a fire or flood. Allowable expenses are those that have not been and will not be reimbursed by private or public relief agencies, insurance companies or any other source.
4.  Utility costs which include charges for heating and cooking fuel; cooling costs or fuel used for purposes other than heating and cooling; water and sewer; well installation and maintenance; septic tank installation and maintenance; garbage and trash collection fees; and, fees charged by the utility provider for initial installation of the utility.
5.  A telephone allowance for one telephone. One time deposits shall not be included as shelter costs.
B 4223.51  Four Tiered Mandatory Standard Utility Allowance [Em. eff. 10/1/08, permanent eff. 12/1/08]
Effective October 1, 2008, a four tiered mandatory standard utility allowance deduction will be implemented in determining a household’s excess shelter deduction. 
A.  Households cannot claim actual utility expenses and are only entitled to one of the four utility allowances. 
B.  No utility expenses can be allowed as an income exclusion for self-employed households when a mandatory utility allowance is given to the household.
C.  The four tiers are as follows: 
1.  Heating and Cooling Utility Allowance (HCUA)
“Cooling costs” are defined as utility expenses relating to the operation of air conditioning systems, room air conditioners, swamp coolers or evaporative coolers. Fans are not an allowable cooling cost. 
A heating and cooling utility allowance (HCUA) is available only to households who: 
a.  Incur or anticipate a heating or cooling expense separate and apart from their rent or mortgage.
b.  Received a Low-Income Energy Assistance Program (LEAP) payment at their current residence. 
c.  Live in private rental housing and are billed by their landlords on the basis of individual usage or are charged a flat rate separately from their rent for heating and cooling. 
d.  Share a residence and who incur at least a portion of the heating or cooling cost; each household will be entitled to the full HCUA.
e.  Live in public housing and are responsible for excess heating and/or cooling costs. 
A food assistance household, which incurs or anticipates a heating or cooling expense on an irregular basis, may continue to receive the HCUA between billing periods.  For example, a food assistance household who heats with electricity three months a year is allowed the HCUA year-round.  A food assistance household who buys fuel oil once a year for heating is allowed the HCUA year-round. 
Operation of a space heater, electric blanket, heat lamp, cooking stove and the like when used as a supplemental heating source are allowable costs, but do not qualify a household for the HCUA.
2.  Basic Utility Allowance (BUA) 
The Basic Utility Allowance (BUA) is mandated for any households that are not entitled to the HCUA (do not incur a heating or cooling expense) and that incur at least two non-heating or non-cooling utility costs, such as electricity, water, sewer, trash, cooking fuel, or telephone. 
If more than one assistance group shares in paying non-heating or non-cooling utility costs of the dwelling, the full BUA will be allowed for each assistance group sharing in the utility costs. 
3.  One Utility Allowance (OUA) 
Households must be responsible for only one non-heating or one non-cooling utility expense. The OUA is not allowed if the household’s only utility expense is a telephone. 
If more than one assistance group shares in paying one non-heating or one non-cooling utility costs of the dwelling, the full OUA will be allowed for each assistance group sharing in the utility costs. 
4.  Telephone Allowance
The telephone allowance is available to households whose only utility expense is for a telephone. 
If more than one assistance group shares in paying the telephone expense and that is the only utility expense of the dwelling, the full phone standard will be allowed for each assistance group sharing in the telephone expense.
The HCUA, BUA, OUA, and telephone allowance shall be reviewed annually and adjusted each year, based on Federal approval, to reflect Colorado's increased cost of utilities. 

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B-4224.1  LIQUID RESOURCES [Em. eff. 10/1/08, permanent eff. 12/1/08]
Liquid resources are assets such as cash on hand, money in checking or savings accounts, saving certificates stocks or bonds, lump sum payments as specified in the section titled “Nonrecurring Lump Sum Payments”.
B-4224.2  NON-LIQUID RESOURCES [Em. eff. 10/1/08, permanent eff. 12/1/08]
A non-liquid resource is any tangible real property including, but not limited to, licensed and unlicensed automobiles and motorcycles, utility trailer, seasonal or recreational vehicles (such as any camper, motor home, boat. snowmobile, water skidoo, or airplane) and real property (such as buildings, land. and vacation homes).
The value of non-liquid resources, unless exempt under Section B-4225 “Exempt Resources”  or specified under Section B-4224.4 “Determining Value of Resources” , shall be the equity value. The equity value is the fair market value minus the verified amount owed.
B-4224.3  JOINTLY OWNED RESOURCES [Em. eff. 10/1/08, permanent eff. 12/1/08]
Nonexempt liquid and non-liquid resources owned jointly by separate households shall be considered available in their entirety to each household, unless it can be demonstrated by the applicant household that it does not have access to such resources. If only a portion of the resource is accessible, that portion which is available to the household is considered as a resource The resource shall be considered totally inaccessible to the household if the resource cannot practically be subdivided and the household's access to the value of the resource is dependent on the agreement of a joint owner who refuses to comply. For the purpose of this provision, ineligible non-citizens or disqualified individuals residing with the household shall be considered household members.

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B-4225.5  HOUSEHOLD GOODS, PERSONAL EFFECTS, BURIAL PLOT, LIFE INSURANCE, PENSION FUNDS, RETIREMENT ACCOUNTS, EDUCATIONAL ACCOUNTS, AND PRE-PURCHASED FUNERAL AGREEMENTS [Em. eff. 10/1/08, permanent eff. 12/1/08]
Household goods, personal effects, including one burial plot per household member, the cash value of life insurance policies, and livestock not excluded as income producing property are exempt resources. 
All retirement accounts with Federal tax preferred retirement status are exempt resources. The following retirement accounts are exempt: 
A.  Pension or traditional defined benefit plan; 
B.  401(K) plan and simple 401(K); 
C.  501C (18); 
D.  403(B) plan; 
E.  457 plan;
F.  Federal employee thrift savings plan; 
G.  Keogh plan;
H.  Individual Retirement Account (IRA);
I.  Roth IRA and simple IRA;
J.  Simplified employer plan;
K.  Profit sharing plan; and,
L.  Cash balance plans. 
All tax preferred education accounts are exempt resources.  The two types of tax preferred education savings accounts are: 1) Section 529 qualified tuition programs, which allow owners to prepay a student’s education expenses or to contribute to an account to pay those expenses and 2) Coverdell education savings accounts and IRA type of account designed to pay a student’s education expense. 
One bona fide pre-purchased funeral agreement per household member which may include one burial plot per household member, shall be excluded provided that the agreement does not exceed $1,500 in equity value; the equity value over $1,500 is counted as a resource. If a burial plot is included in the agreement, the burial plot portion will be exempted prior to determining the equity value of the funeral agreement.

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[Instructions:  replace lines 1514300 through 1514308]
B-4230  COUPON ALLOTMENTS AND IDENTIFICATION CARDS [Em. eff. 10/1/08, permanent eff. 12/1/08]
After eligibility has been established, the monthly coupon 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 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 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.  If the allotment for a one- or two person household is less than $10, round the allotment up the minimum benefit allowed for one- or two-person household.
THRIFTY FOOD PLAN (TFP) TABLE				
Household Size	TFP Amount	
1	$ 176	
2	$ 323	
3	$ 463	
4	$ 588	
5	$ 698	
6	$ 838	
7	$ 926	
8	$1,058	
Each additional member	+$132	

The food coupon allotment tables will be adjusted every October 1 as announced by the USDA, Food and Nutrition Service.

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[Instructions:  replace lines 1514309 through 1514324.]
B-4242.11  Changes Households are Required to Report [Em. eff. 10/1/08, permanent eff. 12/1/08]
A.  Simplified Reporting
Simplified reporting households are defined as households consisting of migrant and seasonal farm workers, homeless, elderly or disabled, and all other households that do not include an able-bodied adult without a dependent (ABAWD) member, as defined in Section B-4215.45. Simplified reporting households shall be required to report and verify changes in income if the amount exceeds 130% of poverty level. The gross income limit, which is 130% poverty level, is contained in Section B-4220.12. The household shall be provided a notice of the gross income level that applies to its household size. 
The county food assistance office must act on any change reported by a simplified reporting household that would increase benefits in accordance with provisions of this section. The county food assistance office must not act on changes that would decrease benefits unless: 
1.  The household requests that its case be closed;  
2.  The agency has information about the household’s circumstances considered verified upon receipt; or, 
3.  There has been a change in the household public assistance grant.  
Simplified reporting households who exceed the 130% gross income level will have ten (10) days from the end of the month that the change occurred to report the change to the food assistance office. All households with certification periods of six months will be considered simplified reporting households. 
Simplified reporting households certified for twenty-four (24) months under this provision shall be required to submit an interim report at twelve-month intervals with any changes required by Item B of this section. The county food assistance office must act on any changes reported by such households on the interim report in accordance with the change reporting processes of this section. If the household files a complete report that results in reduction or termination of benefits, the agency shall send a notice of adverse action. The notice of adverse action must be mailed at least two (2) working days prior to the date that benefits are normally received by the household. If the household fails to provide sufficient information or verification regarding a deductible expense, the county food assistance office shall not terminate the household but shall instead determine the household’s benefits without regard to the deduction.  
B.  ABAWD households shall be required to: 
1.  Report and verify changes of more than $50 in the amount of the household’s gross monthly unearned income, and more than $100 in household’s gross monthly earned income, except mass changes or changes in the public assistance grant which are already known to the county department. 
2.  Report and verify changes in the source of income.
3.  Report all changes in household composition, such as the addition or loss of a household member, and verify if questionable. 
4.  Report and verify changes in residence and the resulting change in shelter costs. 
5.  Report and verify changes in the total amount of cash on hand, stocks, bonds or money in a bank account or savings institution if such changes make the total reach or exceed the maximum resource limit for the household. 
6.  Report and verify changes in the legal obligation to pay child support and changes in the amount legally obligated to be paid. 

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