Tracking# 2010-00957 
FA/P 12/3/10, eff. 2/1/11

I:/10071901.rtf
[I:/10071901.doc] 

(10 CCR 2506-1)

[Instructions: insert before line 1514142. ] 
Revisions to Sections B-4011.1 through B-4011.11, B-4011.131 through B-4011.136, B-4011.22 through B-4011.23, B-4011.3, B-4220 through B-4220.12, B-4224, B-4230.1, B-4242.11 through B-4242.13, B-4430.11, B-4430.2 through B-4430.22 were final adoption following publication at the 12/3/2010 State Board meeting, with an effective date of 2/1/2011 (Rule-making# 10-7-19-1). 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, Division of Boards and Commissions, State Board Administration.

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[Instructions: replace lines 937521 through 937544. ] 
B-4011.1  APPLICATION PROCESSING [Rev. eff. 2/1/11]
The application process includes the filing and completion of an application form being interviewed and providing required and requested verification.
The food assistance office shall act promptly on all applications and provide food 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 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 B-4230.1).
Households applying for public assistance shall be notified of their right to apply for food assistance benefits at the same time, and shall be allowed to apply for food 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 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. 
A.  Eligibility 
1.  Expanded Categorical Eligibility (ECE) 
In order to be considered eligible for expanded categorical eligibility, households must receive a non-cash Temporary Assistance to Needy Families/Maintenance of Effort (TANF/MOE) funded service. Households will receive information about a service that promotes TANF Purpose Four (4): Encouraging the formation and maintenance of two-parent families, through language provided on the application, recertification application, the periodic report, and/or the statement of facts. 
a.  Households having their eligibility reviewed under expanded categorical eligibility rules must meet one of the following criteria: 
1)  Households that do not include a member who is elderly or a person with a disability must have a combined gross income amount at or below one hundred thirty percent (130%) of the federal poverty level in order to be considered an expanded categorically eligible household. These households must have a net income amount at or below one hundred percent (100%) of the federal poverty level, after appropriate deductions. 
2) Households that do include a member who is elderly or is a person with a disability must have a combined gross income amount at or below two hundred percent (200%) of the federal poverty level in order to be considered an expanded categorically eligible household. These households must have a net income amount at or below one hundred percent (100%) of the federal poverty level, after appropriate deductions. 
b.  A household’s eligibility cannot be determined using expanded categorical eligibility rules if, at the time of application: 
1)  Any member is disqualified for an intentional program violation. 
2)  Any member is disqualified for a fraud conviction, such as: 
a)  The individual has been found by a federal, state or local court to have used or received benefits in a transaction involving the sale of firearms, ammunition or explosives; or, 
b)  The individual has been convicted by federal, state or local court of having trafficked benefits for an aggregate amount of five hundred dollars ($500) or more. 
3)  Any member is a fleeing felon. 
4)  Any member has been convicted of a drug-related felony where food assistance benefits were used to purchase drugs. 
5)  A household that includes a member who is elderly or is a person with a disability and the combined gross income exceeds two hundred percent (200%) of the Federal poverty level. 
6)  A household that includes a member that has an active family preservation case and the combined gross income exceeds one hundred thirty percent (130%) of the federal poverty level. 
c.  A household may still be eligible for expanded eligibility if, at the time of application, it includes any of the following ineligible members: 
1)  An ineligible non-citizen; 
2)  An ineligible student; 
3)  A member who is ineligible due to failure to comply with work requirements; 
4)  A member disqualified due to not providing his/her Social Security Number. 
d.  All households found eligible under expanded categorical eligibility will not be subject to a resource limit and shall not have their resources verified. 
e.  To be eligible under expanded categorical eligibility, all households must meet the non-financial criteria set out in Section B.4209. 
f.  Households that are ineligible for expanded categorical eligibility shall have the following action taken: 
1)  Households that contain the following members shall have their eligibility further reviewed under basic categorical eligibility rules only when the household meets one of the following criteria: 
a)  Households that contain a member who is elderly or is a person with a disability and the household’s combined gross income exceeds two hundred percent (200%) of the Federal poverty level; 
b)  Households that include an elderly member who is unable to purchase and prepare meals, as described in Section B.4100, D;
c)  Households with a member who has an active family preservation case, and their gross income exceeds 130% of the Federal poverty level; 
d)  Households that contain a member who is a fleeing felon. 
2)  Households that contain a member who has an active Intentional Program Violation or fraud conviction shall only have their eligibility determined under standard eligibility rules. 
g.  Households that have a gross income exceeding 130% of the federal poverty level or net income exceeding 100% federal poverty level will be denied under food assistance expanded categorical eligibility rules unless the household’s eligibility can be further determined as per Section B-4011.1, A, 1, f. 
2.  Basic Categorical Eligibility (BCE) 
a.  Basic categorically eligible households are: 
1)  A household in which all members receive, or are authorized to receive, benefits from the Colorado Works Program, Supplemental Security Income (SSI), Old Age Pension (OAP), Aid to the Needy Disabled (AND), Aid to the Blind (AB) or a combination of these benefits. The Colorado Works, SSI, OAP, AND, or AB program(s) need only to authorize benefits for recipients in order for the household to be considered for basic categorical eligibility. Individuals who are authorized to receive a benefit, but who are not paid such benefits because the grant is less than a minimum benefit or the benefits are suspended or are being recouped, are still considered eligible under basic categorical eligibility rules. 
Households not receiving, or authorized to receive, Temporary Assistance for Needy Families (TANF) Title IV-A or SSI benefits, who are entitled to Medicaid only shall not be considered SSI or Title IV-A recipients. 
2)  A household in which at least one member receives services from the Family Preservation Program. This determination must be documented in the case record. 
b.  Households eligible under basic categorical eligibility have been deemed to have met the income and resource requirements of the program that confers eligibility; therefore, no further verification is required beyond that gathered by the program that confers eligibility. This includes: 
1)  Net income; 
2)  Gross income; 
3)  Resources; 
4)  Residency; 
5)  Social Security Number; 
6)  Sponsored non-citizen information. 
c.  A household cannot be considered under basic categorical eligibility rules if, at the time of application: 
1)  Any member is disqualified for an intentional program violation. 
2)  Any member is disqualified for a fraud conviction  such as: 
a)  Individual has been found by federal, state or local court to have used or received benefits in a transaction involving the sale of firearms, ammunition, or explosives. 
b)  The individual has been convicted by federal, state or local court of having trafficked benefits for an aggregate amount of five hundred dollars ($500) or more. 
3)  The head of household is disqualified for failure to comply with an employment first program or workfare requirement as defined in Section B-4215.7. 
4)  The household is ineligible due to one member being a striker as determined in Section B-4218. 
5)  Any member of the household knowingly transferred resources for the purpose of qualifying or attempting to qualify for the program. 
d.  A household may still be eligible for basic categorical eligibility if, at the time of application, it contains any of  the following ineligible members: 
1)  An ineligible non-citizen; 
2)  An ineligible student; 
3)  A fleeing felon. 
e.  Households that are ineligible for food assistance benefits under basic categorical eligibility rules shall have eligibility determined under standard eligibility rules. 
3.  Standard Eligibility 
a.  Standard eligibility rules will only be applied to the following households: 
1)  Households that include a member who is serving a disqualification for an IPV or a fraud conviction. 
2)  Households that include a member who is elderly or a person with a disability whose gross income exceeded two hundred percent (200%) of the federal poverty level and was found ineligible under expanded and basic categorical eligibility. 
3)  Households that include a member who is a fleeing felon and that was found ineligible under basic categorical eligibility. 
b.  Households having their eligibility reviewed under standard eligibility rules must meet one of the following criteria: 
1)  Households that do not include a member who is elderly or a person with a disability must have a combined gross income at or below 130% of the federal poverty level. After all applicable deductions, the net income level must be at or below 100% of the federal poverty level. The household must have resources below two thousand dollars ($2,000). 
2)  Households that do include a member who is elderly or is a person with a disability must have a net income level at or below 100% of the federal poverty level after all applicable deductions. The household must have resources below three thousand dollars ($3,000). 
c.  To be eligible under standard eligibility rules, households must meet the non-financial criteria set out in Section B-4209. 
d.  Households, as defined in Section B-4011.1, A, 3, a, of this section, that are found ineligible under standard eligibility rules will be ineligible for the Food Assistance Program. 
4.  Food assistance households that are applying for or receiving other benefits in addition to food assistance are still required to meet the resource limits and follow the reporting and verifying requirements of that program. Such requests for information and verification shall not affect or delay the determination of food assistance eligibility. 
The State has entered into an agreement with the Social Security Administration (SSA) whereby each SSA office will complete and forward food assistance applications from households comprised of only persons who receive Supplemental Security Income (SSI) or one applying for SSI provided: 1) the household is not participating in the food assistance program, and 2) has no applications pending. After interviewing household and obtaining available verification, the SSA office will forward the application to the appropriate food assistance office for eligibility determination. Residents of public institutions who apply for SSI prior to their release from an institution under the Social Security Administration prerelease program for the institutionalized shall be permitted to apply for food assistance at the same time they apply for SSI. 
The agreement also provides that counties may outstation eligibility worker(s) at district SSA offices. In the event a county desires to outstation an eligibility worker(s) in the local SSA office to process food assistance applications, it would be necessary for the county to request the State to negotiate an appropriate revision of the agreement.
Applications will be screened as they are filed, or as individuals come in to apply, to determine eligibility for expedited service or for normal processing. Applicants entitled to expedited service shall be informed immediately and given a same day interview, whenever possible. Those eligible for expedited processing will be handled in accordance with Section B-4011.6 and those eligible for normal processing handled in accordance with Section B-4011.4 and B-4011.5. 
A joint public assistance application must be processed for food assistance purposes unless the household specifically indicates on the application that it does not want food assistance. 
For a household filing a joint application for food assistance and public assistance benefits or a household that has a public assistance application pending and is denied food assistance but is later determined eligible to receive public assistance benefits and is otherwise categorically eligible, the food assistance office shall provide benefits using the original application and any other pertinent information occurring subsequent to that application. The food assistance office shall not re-interview the household, but shall use mail or telephone contact to update any changes. 
No household shall have its food assistance benefits denied, solely on the basis that its application to participate in another program has been denied or its benefits under another program have been terminated, without a separate determination by the food assistance office that a household failed to satisfy a Food Assistance Program eligibility requirement. 
Households whose Public Assistance (PA) applications are denied shall not be required to file a new food assistance application. The household shall have its food assistance eligibility determined or continued based on the applications filed jointly for PA and food assistance purposes and any other documented information obtained subsequent to the application which may have been used in the PA determination.
The household may voluntarily withdraw its application at any time prior to the determination of eligibility or, subsequently, may voluntarily terminate its participation. Any reason given by the household for withdrawal or termination should be documented in the case file. A Notice of Action form, indicating voluntary withdrawal of application or voluntary termination of eligibility, shall be sent to the household within ten days of the decision, to confirm the action taken. The household shall be advised of its right to reapply at any time subsequent to a withdrawal. 
B-4011.11  Availability of Application Forms [Rev. eff. 2/1/11]
The food assistance offices shall make application forms readily accessible to applicant households and groups and organizations. The food assistance offices shall also provide an application form to anyone who requests the form.
Application forms shall be made available in Spanish, or other appropriate languages for use in those counties where it has been determined in conjunction with the state food assistance office that there is a significant number of households without an adult member fluent in English. In addition, application forms in Spanish shall be made available during the period when there is a significant influx of migrant or seasonal farm workers into the county. 
Households must file food assistance applications by submitting the forms in person through an authorized representative by FAX or other electronic transmission, by mail or by completing an on-line electronic application. The food assistance office must provide households that complete an on-line electronic application in person at the food assistance office, the opportunity to review the information that has been recorded electronically and must provide the household with a copy of the information for its records. Food assistance offices shall advise applicants if a FAX machine or other electronic transmission is available for the submission of an application. 
Applications signed through the use of electronic signature technique or applications containing a handwritten signature, then transmitted by FAX or other electronic transmissions, are acceptable as a valid application when received by the food assistance office.
The food assistance office must document the date when the application was filed by recording the date of receipt by the food assistance office on the application form. 

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[Instructions: replace lines 937560 through 937597.] 
B-4011.131  Filing Application at SSA Office by Non-SSI Households [Rev. eff. 2/1/11] 
The SSA office shall refer non-SSI households and those in which not all members have applied for or received SSI to the correct food assistance office. The food assistance offices shall process those applications in accordance with the normal and expedited application processing procedures. Applications from such households shall be considered as filed on the date the signed application is taken at the correct food assistance office
B-4011.132  Expedited Processing of SSI Applicants [Rev. eff. 2/1/11] 
The SSA office is required to prescreen all food assistance applications for entitlement to expedited service and shall mark “expedited processing” on the first page of all applications of households that appear to be entitled to such processing. The SSA will inform households which appear to meet the criteria for expedited service that benefits may be issued a few days sooner if the household applies directly at the food assistance office. The household may take the application from the SSA office to food assistance office for screening, and interview and processing of the application. 
The food assistance office shall prescreen all applications received from the SSA office for entitlement to expedited service on the day the application is received at the correct food assistance office. All households entitled to expedited service shall be certified in accordance with B-4011.6, except that the expedited processing time standard shall begin on the date the application is received at the correct food assistance office. 
The expedited processing time standard for applicants who filed prior to the release from a public institution will begin on the date that the individual is released from the public institution. The SSA shall notify the food assistance office of the date of release of the applicant from the institution. 
B-4011.133  SSI Participation Controls [Rev. eff. 2/1/11] 
To prevent duplication, the food assistance office shall develop and implement a method to determine if members of SSI households whose applications are forwarded by the SSA office, are currently participating in the food assistance program.
B-4011.134  SSI Applicants [Rev. eff. 2/1/11] 
Households denied food assistance that have an SSI application pending shall be informed on the notice of denial of the possibility of categorical eligibility if they become SSI recipients. 
Residents of public institutions who apply jointly for SSI and food assistance benefits prior to their release from the institution shall not be eligible for food assistance until the individual has been released from the public institution. 
B-4011.1345  SSI Telephone Applications and Redetermination [Rev. eff. 2/1/11] 
If an SSA office takes an SSI application or redetermination on the telephone from a member of a pure SSI household, a food assistance application shall also be completed during the telephone interview. In these cases, the food assistance application will be mailed by the SSA office to the applicant for signature for return to the SSA office or to the food assistance office. The SSA office shall then forward any food assistance applications it receives to the food assistance office. The food assistance office may not require the household to be interviewed again in the food assistance office. The food assistance office shall not contact the household further in order to obtain information for certification for the food assistance benefits except in accordance with Section B-4011.23. 
The SSA office shall mail information of the client’s right to file a food assistance application at the SSA office (if they are members of a pure SSI household) or at their local food assistance office, and their right to an out-of-office food assistance interview to be performed by the county food assistance office if the household is unable to appoint an authorized representative. 
For households consisting entirely of applicants or recipients of SSI which apply for food assistance certification at an SSA office, the application shall be considered filed for normal processing purposes when the application is received by the SSA. 
B-4011.135  Information for SSI Households [Rev. eff. 2/1/11] 
An applicant or recipient of SSI shall be informed at the SSA office of the availability of benefits under the Food Assistance Program and the availability of the food assistance application at the SSA office. The SSA office is not required to accept applications for SSI applicants or recipients who are not members in a household consisting entirely of SSI recipients unless a county has outstationed a worker at the SSA office. The SSA office will refer non-SSI households to the correct food assistance office. 
Each county office shall provide and the SSA office shall distribute an information sheet to those households residing in the county office boundaries who had their food assistance applications processed by the SSA office. This material shall inform the household of the following: 
A.  The address and telephone number of the household's correct food assistance office.
B.  The remaining actions to be taken in the application process.
C.  A statement that a household should be notified of the food assistance determination within thirty days and can contact the food assistance office if it receives no notification within thirty days, or has other questions or problems,
D.  Client's rights and responsibilities (including fair hearings, authorized representatives, out-of-office interviews, reporting changes and timely reapplication),
E.  Information on how and where to obtain food assistance benefits, and
F.  Information on how to use food assistance benefits (including the commodities they may purchase with food assistance benefits). 
B-4011.136  Outstationing Eligibility Workers [Rev. eff. 2/1/11] 
If the county, with the approval of the State Department, chooses to outstation eligibility workers at SSA offices, with SSA's concurrence, the following actions shall be completed: 
A.  SSA will provide adequate space for State food assistance eligibility workers in SSA offices.
B.  The county shall have at least one outstationed worker on duty at all time periods during which households will be referred for food assistance application processing. In most cases, this would require the availability of an outstationed worker throughout normal SSA business hours. 
C.  The following households shall be entitled to file food assistance applications with, and be interviewed by, an outstationed eligibility worker. 
1.  Households containing an applicant for or recipient of SSI.
2.  Households which do not have an applicant for or recipient of SSI but which contain an applicant for or recipient of benefits until Title II of the Social Security Act, if the county and the SSA have an agreement to allow the processing of such households at SSA offices. 
D.  Households shall be interviewed for food assistance on the day of application unless there is insufficient time to conduct an interview. The county shall arrange for the outstationed worker to interview applicants as soon as possible.
E.  The outstationed eligibility worker(s) shall not refuse to provide service to an applicant because they do not reside in the county or project area in which the SSA office is located, provided, however, that they reside within the jurisdiction served by the SSA office and the State. The county is not required to process the applications of persons who are not residing within the SSA office jurisdiction but who do reside within the county's jurisdiction, other than to forward the forms to the correct food assistance offices. 
F.  The county may permit the eligibility worker outstationed at the SSA office to determine the eligibility of households, or may require that completed applications be forwarded elsewhere for the eligibility determination.
G.  Applications from households entitled to joint processing through an outstationed eligibility worker shall be considered filed on the date they are submitted to that worker. Both the normal and expedited service time standards shall begin on that date.
H.  Households not entitled to joint processing shall be entitled to obtain and submit applications at the SSA office. The outstationed eligibility worker need not process these applications except to forward them to correct food assistance office where they shall be considered filed upon receipt. Both the normal and expedited service time standards shall begin on that date. 

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[Instructions: replace lines 937620 through 937648.] 
B-4011.22  Interviews for Public Assistance (PA) Households [Rev. eff. 2/1/11] 
If a household is applying for both public assistance and food assistance, the county department of social/human services shall conduct a single interview at initial application for both public assistance and food assistance purposes. The applicant household shall complete the combined application for public assistance and food assistance. Following the single interview, the application may be processed by separate workers to determine eligibility and benefit levels for food assistance and public assistance. A household's eligibility for an out-of-office interview for food assistance purposes (B-4011.21) does not relieve the household of any responsibility for a face-to-face interview for public assistance purposes. Except for households which may be eligible under basic categorical eligibility, the household's food assistance eligibility and benefit level shall be based solely on food assistance eligibility criteria, all households shall be certified in accordance with the notice, procedural, and timeliness requirements of the food assistance regulations. 
The PA applicant household shall indicate on the single purpose application if it does not wish to apply for food assistance. 
B-4011.23  Interviews for SSI Households [Rev. eff. 2/1/11] 
Households in which all members are applying for SSI or receiving SSI, and are applying and being interviewed for food assistance by SSA, will not be required to see a food assistance eligibility worker or otherwise be subjected to an additional certification interview. The food assistance office shall accept SSA documentation and shall not contact the household to obtain additional information for the eligibility determination unless the application is improperly completed, mandatory verification required by B-4011.3 is missing, or the food assistance office determines that certain information on the application is questionable. In no event would the applicant be required to appear at the food assistance office to finalize the eligibility determination. Further contact made in accordance with this paragraph shall not constitute a second food assistance certification interview. 
B-4011.3  VERIFICATION AND DOCUMENTATION [Rev. eff. 2/1/11] 
Verification is the use of documentary evidence or contact with a third party to confirm information and to establish the accuracy of statements on the application form or the Change Report Form. 
A.  Notification
At initial determination and at redetermination, all applicants for food assistance benefits shall be notified through a written statement provided on or with the application form that information available through the Colorado Income and Eligibility Verification System (IEVS) will be requested, and that such information will be used, and shall be verified through collateral sources, such as contacts with the applicant or recipient when discrepancies are found by the agency, and that such information may affect the household's eligibility and level of benefits. 
B.  Initial Application
The food assistance office is required to verify the identity of the applicant, the household's gross nonexempt income, information available through IEVS, including Social Security Numbers (SSNs) for all household members, non-citizen status of persons identified as non-citizens on the application, allowable medical expenses less reimbursement, and legally obligated child support payments, rent/mortgage expenses, and dependent care expenses. Residency shall be verified except for homeless households, or households newly arrived in the county/district for whom third-party verification cannot reasonably be accomplished. For basic categorical eligible households, verification is not required for resources, gross and net income limits, SSN information, sponsored alien information and residency beyond that gathered by the program that confers eligibility. 
1.  Expanded Categorical Eligibility
For households eligible under expanded categorical eligibility, the food assistance office shall consider the food assistance application, redetermination application, periodic report or statement of facts as verification that the household has received information promoting TANF Purpose 4. 
2.  Basic Categorical Eligibility
For those households whose eligibility can be determined under basic categorical eligibility rules, the food assistance office shall verify that each member receives benefits or services from the program that confers basic categorical eligibility. 
3.  Deductible Expense
If a deductible expense must be verified and obtaining verification may delay the household's certification, the food assistance office shall advise the household that the household's eligibility and benefit level will be determined without providing deduction for the claimed, but unverified expense. If the expense cannot be verified within thirty (30) calendar days of the date of application, the food assistance office shall determine the household's eligibility and benefit level, without providing a deduction for the unverified expense. 
4.  Non-Citizens
All applicants for food assistance benefits shall be notified on the application form that the non-citizen status of any household member will be subject to verification by the U.S. Citizenship and Immigration Service (USCIS) through the submission of information from the application to USCIS. The information received from USCIS may affect the household's eligibility and level of benefits. The application shall contain a statement signed by an adult representative from each household which attests, under penalty of perjury, to citizenship or non-citizen status of each member. 
The non-citizen registration number of applicants will be submitted to the State office to be verified through the Systematic Alien Verification for Entitlement (SAVE) program. The food assistance office shall use the information from the USCIS SAVE program to determine eligibility for benefits. 
If the office determines that the documentation presented is questionable or the documents that are used to determine eligibility are not issued by USCIS, the office will use a secondary SAVE process. The secondary verification process will also be used when primary verification is not available through SAVE. 
5.  The secondary verification process will consist of submitting a photocopy of the documentation presented, with form G-845, to the Division of Colorado Refugee Services Program (CRSP). 
C.  Redetermination
At redetermination, all households shall verify a change in unearned income, allowable medical expenses, rent/mortgage expenses, legally obligated child support, and dependent care expenses if the source has changed or the amount has changed by more than $25 since the last time they were verified. A change in total monthly earned income of $100 or more for each member must be verified at redetermination. Verification of the above factors, except earned income, is optional if information is unchanged or changes by $25 or less. A reported Social Security Number(s) not verified at initial determination and newly obtained Social Security Numbers shall be verified through the Colorado Income and Eligibility Verification System. 
D.  Other Eligibility Factors
Other eligibility factors not verified by the Colorado Income and Eligibility Verification System (IEVS) should be verified at redetermination only if they are incomplete, inaccurate, inconsistent, or outdated and would affect a household's eligibility or benefit level. Unchanged information shall not be verified unless the information is incomplete, inaccurate, inconsistent, or outdated. 
For households subject to an asset test, the household's written declaration of resources in excess of the resource limit is an acceptable form of verification. 
E.  Responsibility for Documentation
The household has the primary responsibility for providing documentary evidence for required verification and to resolve questionable information. The food assistance office shall assist the household to obtain the necessary documentation provided the household is cooperating with the food assistance office. Households may supply documentary evidence in person, through the mail, by facsimile or other electronic device, or through an authorized representative. The food assistance office shall not require the household to present verification in person at the office. The food stamp office shall accept any pertinent documentary evidence provided by the household, and shall be primarily concerned with how adequately the verification proves the statements on the application. If written verification cannot be obtained, the eligibility worker shall substitute an acceptable collateral contact or a scheduled home visit. Home visits shall be used as verification only if documentary evidence cannot be obtained and the visit is scheduled in advance with the household. Home visits are to be used on a case-by-case basis where the supplied documentation or verification is insufficient. 
The food assistance office shall provide each household at the time of application for initial determination and redetermination with a notice that informs the household of verification requirements that the household must meet as part of the application process. The notice will inform the household that the food assistance office will assist the household in obtaining verification, provided the household is cooperating with the office. The notice shall be written in clear and simple language and shall meet bilingual requirements. 
Detailed information regarding the verification of individual eligibility criteria will be found in the appropriate section.

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[Instructions: replace lines 938294 through 1549860.] 
B-4220  FINANCIAL CRITERIA [Rev. eff. 2/1/11] 
Financial criteria for eligibility shall apply to all households except for those eligible under basic categorical eligibility in regards to net or gross income tests. Income shall be considered prospectively for the issuance month based on the eligibility worker's anticipation of the household's monthly income and the value of its resources. 
B-4220.1  INCOME ELIGIBILITY STANDARDS [Rev. eff. 2/1/11] 
Participation in the program shall be limited to those households whose incomes are determined to be a substantially limiting factor. The gross and net income standards of eligibility shall be based on the federal income poverty levels established as provided in Section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) and as stated in Section 273.9(A) of the Code of Federal Regulations; no later editions or amendments are incorporated. Copies of these regulations 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. 
Income eligibility is determined based on the composition of the household: 
A.  Expanded categorically eligible households that do not include a member who is elderly or is a person with a disability shall have gross income at or below one hundred thirty percent (130%) of the federal poverty level and have a net income at or below one hundred percent (100%) of the federal poverty level. 
Households that do include a member who is elderly or a person with a disability shall have gross income at or below two hundred percent (200%) of the federal poverty level and have net income at or below one hundred percent (100%) of the federal poverty level.
B.  Basic categorically eligible households shall be deemed as having met gross and net income limits. 
C.  Households which are not considered expanded or basic categorically eligible shall meet income eligibility standards as follows: 
1.  Households that do not include a member who is elderly or is a person with a disability shall have gross income at or below one hundred thirty percent (130%) of the federal poverty level and have a net income at or below one hundred percent (100%) of the federal poverty level. 
2.  Households that do include a member who is elderly or is a person with a disability shall have a net income at or below one hundred percent (100%) of the federal poverty level. 
D.  For household members who are persons that are elderly or have a disability, who are unable to purchase and prepare meals because he or she suffers from a disability considered permanent under the Social Security Act or a non disease-related, severe, permanent disability, may be considered, together with his or her spouse (if living there), a separate household from the others with whom the individual lives. The combined income of the others with whom the elderly disabled individual resides (excluding the income of the elderly and disabled individual and his or her spouse) must not exceed one hundred sixty five percent (165%) of the poverty level. 
Household members who are ineligible due to citizenship status, intentional program violation, failure to cooperate with work programs, or failure to provide or apply for a Social Security Number, shall be excluded when determining the household size and the appropriate income eligibility maximum and/or level of benefits. 

B-4220.11  Net Income for Eligibility [Rev. eff. 2/1/11] 
All households except those who are eligible under basic categorical eligibility, whose income does not exceed the gross income level as outlined in Section B-4220.12, shall have their eligibility for benefits computed allowing the earned income, standard, dependent care, and shelter deductions, as appropriate. The household shall be eligible only if its monthly gross income, less the allowable food assistance deductions, is below the maximum net eligibility level. A household that exceeds the eligibility level must be denied. 
A household that is ineligible for either expanded or basic categorical eligibility and includes a member who is elderly or is a person with a disability, as defined in Section B-4214.1, Subsection C, shall be eligible for food assistance benefits if its monthly nonexempt earned and unearned income, less all applicable deductions, including the earned income, standard, medical, dependent care and unlimited excess shelter deduction, does not exceed the maximum net income level. Information regarding income limits and deductions shall be sent to all county departments of human services every October in an Agency Letter; no later editions or amendments are incorporated. This information may be accessed on the Colorado Department of Human Services web site at: www.cdhs.state.co.us/policies.htm or by contacting: Director, Food Assistance Programs Division, Colorado Department of Human Services, 1575 Sherman Street, Denver, Colorado 80203. 
If a household contains a member who is fifty-nine (59) years old on the date of application, but who will become sixty (60) years of age before the end of the month of application, the food assistance office shall determine the household's eligibility as if the person is sixty (60) years of age. 
B-4220.12  Gross Income Eligibility Determination [Rev. eff. 2/1/11] 
A household, except those eligible under basic categorical eligibility, that does not include a member who is elderly or is a person with a disability, 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 for households that do not include a member who is elderly or a person with a disability is one hundred thirty percent (130%) of the federal poverty level. The gross income level for households eligible under expanded categorical eligibility that include an elderly or disabled member is two hundred percent (200%) of the federal poverty level. Information regarding income limits and deductions shall be sent to all county departments of social/human services every October in an Agency Letter; no later editions or amendments are incorporated. This information may be accessed on the Colorado Department of Human Services web site at: www.cdhs.state.co.us/policies.htm or by contacting: Director, Food Assistance Programs Division, Colorado Department of Human Services, 1575 Sherman Street, Denver, Colorado 80203. 
Except for households that are eligible under basic categorical eligibility, a household without an elderly or a person with a disability shall be ineligible for food assistance if its monthly income, before deductions, exceeds the gross income level. In such case, there is no computation to consider deductions. Instead, a Notice of Action is completed to deny the household. 

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[Instructions: replace lines 938697 through 938703.] 
B-4224  RESOURCE ELIGIBILITY STANDARDS [Rev. eff. 2/1/11] 
A.  The food assistance office shall consider households eligible under either expanded or basic categorical eligibility to have satisfied the resource eligibility criteria of this section. For households eligible under basic categorical eligibility, the case shall be documented to show that all household members have been approved for and/or are receiving benefits from the program that confers basic categorical eligibility. 
B.  Households not categorically eligible shall have their nonexempt resources, as anticipated to be available in the issuance month, used to determine household eligibility. The resources of non-household members shall not be counted as available to the household. However, the resources of a person who is excluded from household composition because of intentional program violation/fraud determination, failure to provide or acquire a Social Security Number or who is an ineligible non-citizen shall be counted, in their entirety, as household resources. The resources of a sponsor and spouse considered toward a non-citizen household shall be the sponsor's total resources less two thousand dollars ($2,000). (See the section entitled “Consideration of Sponsor's Income and Resources Toward the Sponsored Alien”.)
C.  The maximum allowable value of resources shall apply to all households not categorically eligible and shall not exceed: 
1.  Two thousand dollars ($2,000) for households that do not include a person who is elderly or is a person with a disability. 
2.  Effective October 1, 2002, three thousand dollars ($3,000) for households with at least one member who is elderly or a person with a disability. 
An elderly member is a member who is sixty (60) years of age or older. A disabled member is defined in Section B-4214.1, C. 

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[Instructions: replace lines 938843 through 938855.] 
B-4230.1  INITIAL MONTH ALLOTMENT PRORATION [Rev. eff. 2/1/11] 
A household's benefit level for the initial month of application (see Section B-4011.12 for definition) shall be based on the day of the month it applies for benefits. Benefits for the initial month shall be prorated from the date of application to the end of the month. A household applying on the thirty first (31st ) of a month will be treated as though it applied on the thirtieth (30th) of the month. 
A.  Applicant households consisting of residents of a public institution who apply jointly for SSI and food assistance prior to release from an institution will have their eligibility determined for the month in which the applicant household was released from the institution. The benefit level for the initial month of certification shall be based on the date of the month the household is released from the institution and the household shall receive benefits from the date of the household's release through the end of the month. 
B.  The only exception to the pro-ration policy shall be migrant and seasonal farm worker households who are in the job stream and the break in participation does not exceed thirty (30) days. These households are entitled to a full month allotment.
C.  Eligible households are entitled to a full month allotment for all months except an initial month of application. 
D.  Effective May 1, 2004, the State automated system will utilize the exact number of days in the calendar month to determine the proration of benefits. The following formula shall be used to determine the amount of prorated benefits. 
1.  Number of days in month plus one; 
2.  Subtract date of application; 
3.  Multiply by full month's benefits; 
4.  Divide by number of days in the month. 
E.  Exceptions
Except during an initial month, all eligible one and two person households shall receive the minimum monthly allotments. The minimum monthly amount of food assistance will be reviewed annually. The current amount of the minimum benefit for a one- or two-person household will be sent in an Agency Letter to all county departments of human/social services every October; no later editions or amendments are incorporated. This information may be accessed on the Colorado Department of Human Services web site at: www.cdhs.state.co.us/policies.htm or by contacting: Director, Food Assistance Programs Division, Colorado Department of Human Services, 1575 Sherman Street, Denver, Colorado 80203. 
Except for households that are eligible under basic categorical eligibility, households with three or more members who are entitled to zero benefits shall have the food assistance application denied. This provision does not apply if zero benefits are due to the pro-ration requirements or due to the initial month's allotment being less than ten dollars ($10). 

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[Instructions: replace lines 1901832 through 1901852.] 
B-4242.11  Changes Households are Required to Report [Rev. eff. 2/1/11] 
A.  Simplified Reporting Households
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. 
1.  All households with certification periods of six months and twenty-four months shall be considered simplified reporting households. 
2.  Households with six-month certifications are required to report changes at redetermination. 
3.  Households with twenty-four month certifications are required to report changes at the twelve-month interim reporting period and at redetermination. 
All simplified reporting households shall be required to report and verify changes in the household’s combined gross income if the amount exceeds one hundred thirty percent (130%) of the federal poverty level with one exception. The exception is for households eligible under expanded categorical eligibility rules that include a member who is elderly or is a person with a disability, who is required to report changes in the household’s combined gross income if the amount exceeds two hundred percent (200%) of the federal poverty level. 
Upon benefit approval at the initial application, redetermination, and an interim change report, the household shall be provided with a notice of the gross income level that applies to its household size. Information containing income limits will be provided every October in an Agency Letter to all county departments of human/social services; no later editions or amendments are incorporated. This information may be accessed on the Colorado Department of Human Services web site at: www.cdhs.state.co.us/policies.htm or by contacting: Director, Food Assistance Programs Division, Colorado Department of Human Services, 1575 Sherman Street, Denver, Colorado 80203. 
The county food assistance office must act on any change reported by a simplified reporting household that would increase benefits in accordance with the provisions of this section. The county food assistance office must not act on changes under simplified reporting rules that would decrease benefits unless: 
1.  The head of household requests that his/her case be closed; 
2.  The head of household requests that any member be removed; 
3.  An adult member requests to be removed from the case; 
4.  An adult member requests that he/she and his/her children be removed from the case; 
5.  The agency has information about the household’s circumstances considered verified upon receipt (see Section B-4011.31); 
6.  There has been a change in the household’s public assistance grant. 
Simplified reporting households that exceed the one hundred thirty percent (130%) or two hundred percent (200%) gross income level, as applicable to their household composition, will have ten (10) days from the end of the month in which the change occurred to report the change to the food assistance office. 
The county food assistance office must act on any changes reported by those households filing an 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 allowing the deduction. 
B.  Non-Simplified Reporting Households 
Non-simplified reporting households are those households that include an Able Bodied Adult Without Dependents (ABAWD). ABAWD households shall be required to: 
1.  Report and verify changes of more than fifty dollars ($50) in the amount of the household’s gross monthly unearned income, and more than one hundred dollars ($100) in the 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, if eligibility is determined using standard eligibility rules. 
6.  Report and verify changes in the legal obligation to pay child support and changes in the amount legally obligated to be paid.
B-4242.12  Reporting Changes [Rev. eff. 2/1/11] 
Households shall report changes no later than ten (10) days from the end of the calendar month in which the change occurred. Changes reported by the household by telephone or in person shall be acted upon in the same manner as those reported on the Change Report Form. If reporting by mail, households will have met the reporting requirement provided the envelope is postmarked within the required ten (10) day period. Public Assistance (PA) households which report a change in circumstances to the PA worker shall be considered to have reported the change for food assistance purposes. 
An applicant household shall report all changes related to its food assistance eligibility and benefits at the certification interview. If a change is reported in a beginning month and the application has not yet been processed, the food assistance office shall act on the most current information. Changes that households are required to report which occur after the interview, but before the date of the Notice of Eligibility, shall be reported by the household within ten (10) calendar days of the date of the notice. 
B-4242.13  Failure to Report Changes [Rev. eff. 2/1/11] 
If food assistance benefits are overissued because a household fails to timely report changes in household circumstances or income as required, a claim will be established and a notice of overpayment and a repayment agreement will be mailed. If the discovery is made within the certification period, the household must be given advance notice if its benefits are to be reduced. A claim is not required if changes are timely reported by the household and timely acted on by the food assistance office. A household shall not be held liable for a claim because of a change in household circumstances which it is not required to report. 

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[Instructions: replace lines 939627 through 939656.] 
B-4430.2  ESTABLISHING AGENCY ERROR AND INADVERTENT HOUSEHOLD ERROR CLAIMS [Rev. eff. 2/1/11] 
The food assistance office shall establish a claim against any household that received an overissuance of benefits that totals one hundred twenty five dollars ($125) or more. The claim will be established for amounts under one hundred twenty five dollars ($125) if the household is participating and the claim can be collected by reducing the monthly allotment. 
A.  Instances that may result in an agency error claim include, but are not limited to, the following: 
1.  The food assistance office failed to take prompt action on a change reported by the household;
2.  The food assistance office incorrectly computed the household's income or deductions, or otherwise assigned an incorrect allotment;
3.  The food assistance office continued to provide a household food assistance allotments after its certification period has expired without benefit of a reapplication of determination;
4.  The food assistance office failed to provide a household a reduced level of food assistance benefits because its public assistance grant changed. 
B.  Instances that may result in an inadvertent household error claim include, but are not limited to, the following: 
1.  The household unintentionally failed to provide the state agency with correct or complete information.
2.  The household unintentionally failed to report changes in its household circumstances.
3.  The household unintentionally received benefits or more benefits than it was entitled to receive pending a fair hearing decision because the household requested a continuation of benefits based on the mistaken belief that it was entitled to such benefits.
4.  The household was receiving food assistance solely because of basic categorical eligibility and the household was subsequently determined ineligible for Colorado Works/SSI during the time that the benefits were being received. The claim must be based on a change in net income and/or household size. 
5.  SSA failed to take action which resulted in the household's basic categorical eligibility and improper receipt of SSI. The claim must be based on change in net income and/or household size. 
B-4430.21  Calculating the Amount of an Agency Error and Inadvertent Household Error Claim [Rev. eff. 2/1/11] 
A.  County offices shall calculate the amount of an agency error or inadvertent household error claim back to the month the overissuance occurred. However, in no event shall the amount of the claim be calculated for any period prior to six years from the date the overissuance was discovered. If the amount of the claim is less than one hundred twenty five dollars ($125), it will not need to be calculated unless the claim can be collected by a recoupment from the allotment. If the claim is less than one hundred twenty five dollars ($125), no further action is required if the household is not participating.
B.  An Inadvertent Household Error (IHE) claim that is due to earned income being reported in an untimely manner will be calculated without allowing the twenty percent (20%) earned income deduction.
C.  The correct allotment shall be calculated using the same methods applied to an actual certification, such as prospective or retrospectively. In cases involving reported changes, the food assistance office shall establish the claim for each month in which the error would have affected the household's food assistance allotment. In cases involving household failure to report a change in circumstances within the required timeframes, the first month affected by the household's failure to report shall be the first month in which the change would have been effective had it been timely reported. However, in no event shall the determination of the first month in which the change would have been effective be any later than two months from the month in which the change occurred. For purposes of calculating the claim, the food assistance office shall assume that the change would have been reported properly and timely acted upon by the food assistance office. The actual circumstances of the household will be used to calculate the claim. If the change was an un-reportable change, it will not be considered in the calculation of the claim. 
D.  If the household timely reported a change but the food assistance office failed to act on the change within the required timeframes, the first month affected by the food assistance office's failure to act shall be the first month the office would have made the change effective had it acted timely. If a notice of adverse action was required, the food assistance office shall assume, for the purpose of calculating the claim that the notice of adverse action period required in the section, entitled Advance Notice of Adverse Action, would have expired without the household requesting a fair hearing. 
E.  If the household received a larger allotment than it was entitled to receive, the food assistance office shall establish a claim against the household that is equal to the difference between the allotment the household received and the actual allotment it should have received. Benefits authorized under Colorado Electronic Benefits Transfer System (CO/EBTS) will be used to calculate the claim. CO/EBTS benefits that are staged for expungement will be used to offset the amount of the claim. See Section B-4430.4, “Methods of Collecting Payment on Claims”.
F.  Claims being established for trafficking shall be based on the value of benefits as determined by an individual admission, adjudication, or the documentation that forms the basis for the trafficking determination. 
G.  For households eligible under basic categorical eligibility, a claim shall only be determined when it can be computed on the basis of changed household net income and/or household size. A claim shall not be established if there was not a change in net income and/or household size. 
H.  After calculating the amount of the agency or inadvertent household error claim, the food assistance office shall offset the amount of the claim against any amounts which have not yet been restored to the household in accordance with Section B-4410.51, entitled “Procedure to Restore Lost Benefits”. Expungements and any return of benefits that occur during the period that the claim is to cover shall also be used to offset the amount of the claim. The food assistance office shall then initiate collection action for the remaining balance, if any. The State prescribed form shall be used to determine and calculate the amount of the claim. 
B-4430.22  Collecting Agency Error and Inadvertent Household Error Claims [Rev. eff. 2/1/11] 
A.  Food assistance offices shall initiate collection action on all agency error and inadvertent household error claims. The food assistance office shall initiate collection action against any and all of the adult members of a household at the time an overissuance occurred, unless one of the following conditions apply: 
1.  The claim is collected by offsetting lost benefits that were to have been restored to the household.
2.  The total amount of the claim is less than one hundred twenty five dollars ($125), and the claim cannot be recovered through allotment reduction. 
3.  The food assistance office has documentation which shows that the household cannot be located. 
Collection action on inadvertent household error claims may be postponed in cases where an overissuance is being referred to an intentional program violation hearing or a court of appropriate jurisdiction and the food assistance office determines that collection action will prejudice the case. 
B.  Food assistance offices shall initiate collection action on agency error and inadvertent household error claims by sending the household a State prescribed written demand letter for the overissuance. 

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