Tracking# 2010-00042
FA/P 3/2/12, eff. 5/1/12 

I:/11111602.rtf
(I:/11111602.doc) 

(10 CCR 2506-1)

Instructions:  insert before line 1514142.] 
Revisions and/or repeals of Sections B-4225.62 through B-4225.63, B-4230.11 through B-4230.12, B‑4230.2 through B-4230.21, B-4240, B-4242.34 through B-4242.343, B-4242.35 through B-4242.36, B‑4315, B-4315.2, B-4317.4, B-4317.6, B-4600 through B-4611.1, B-4640 through B-4653, B-4691.1 through B-4697.2, B-4698 through B-4698.3, B-4730 through B-4733, B-4740 through B-4760, and B‑4800.1 through B-4800.3 were final adoption following publication at the 3/2/2012 State Board meeting (Rule-making# 11-11-16-2), with an effective date of 5/1/2012. 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, Office of Enterprise Partnerships, Division of Boards and Commissions, State Board Administration.

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[Instructions: correct typo by replacing line 938414.] 
B-4221.312  Verification of Student Income 

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[Instructions: replace lines 938751 through 938758; Sections B-4225.62 through B-4225.63 are deleted.] 

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[Instructions: replace lines 938856 through 938859.] 
B-4230.11  (None) [Rev. eff. 5/1/12] 
B-4230.12  Issuance of Benefits [Rev. eff. 5/1/12] 
The eligibility worker should be sufficiently familiar with issuance operations to answer any questions the household may have about when, where, and how to access one’s benefits from the Electronic Benefit Transfer (EBT) card. 

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[Instructions: replace lines 938860 through 938872; Sections B-4230.2 through B-4230.21 are deleted.] 
B-4240  CERTIFICATION PERIODS [Rev. eff. 5/1/12] 
Certification periods shall conform to calendar months. At the expiration of each certification period, entitlement to food assistance benefits ends. Further eligibility shall only be established on a newly completed application, an interview, and verification as required by Section B-4011.3 “Verification and Documentation”. Under no circumstances shall benefits be continued beyond the end of a certification period without a new determination of eligibility. 
Certification periods may not be shortened for households, unless the agency receives verified information that the household is ineligible for food assistance benefits. 
Certification periods shall conform to calendar months. The eligibility worker should use the guidelines given in the Section B-4240.1 “Certification Period Guidelines” in determining the appropriate period of eligibility.

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[Instructions: replace lines 1901916 through 1901944; Sections B-4242.34 through B-4242.343 are deleted.] 
B-4242.34  (None) [Rev. eff. 5/1/12] 
B-4242.35  Processing SSI Notices of Determination [Rev. eff. 5/1/12] 
In SSI/food assistance joint processed cases, the food assistance offices shall use SDX listings and/or questioning the household in order to obtain information on SSI determinations. If the information cannot be obtained through SDX listings and/or questioning the households, a written inquiry may be made to the SSA office to obtain information of the status of SSI determinations. Within ten days of learning of the determination of the SSI application, the food assistance office shall take action in accordance with Section B-4242.2 “Action on Reported Changes”. 
B‑4242.36  Notice of SSI Denial Determinations [Rev. eff. 5/1/12] 
In SSI/food assistance joint processed cases in which the SSI determination results in denial, and the food assistance office believes that food assistance eligibility or benefit levels may be affected, the office shall send the household a notice of expiration advising that the certification period will expire the end of the month following the month in which the notice is sent, and that it must reapply if it wishes to continue to participate. 
The notice shall also explain that its certification period is expiring because of changes in circumstances which may affect food assistance eligibility or benefit levels and that the household may be entitled to an out-of-office interview, in accordance with Section B-4011.21 “Waiver of Office Interview”. 

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[Instructions: replace lines 939132 through 939137.] 
B-4315  INELIGIBLE ALIENS [Rev. eff. 5/1/12] 
The ineligibility of certain aliens from program benefits will not prohibit the remaining household members from applying for and receiving food assistance. Ineligible aliens living in an applicant household shall not be considered household members for food assistance purposes.
B‑4315.1  APPLICATION 
When the eligible members of a household are all unemancipated minors and the only adult is an ineligible alien, the ineligible alien may make application on behalf of the eligible minors.  However, if there is any other eligible adult of emancipated minor in the household, even though they would not normally be considered the household head, that eligible person should make application as the head of household.

[Ed. note: Section B-4315.2 is deleted.] 

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[Instructions: replace lines 939164 through 939170.] 
B-4317.4  (None) [Rev. eff. 5/1/12] 
B-4317.5  Work Registration [Rev. eff. 11/1/86] 
Any resident or non‑resident participant in a drug or alcohol center's treatment and rehabilitation program is exempt from the work registration requirement. This exemption is not meant to discourage participants in such program from seeking and accepting employment on their own.
B-4317.6  Individuals Participating as Non-Residents [Rev. eff. 5/1/12] 
Any member of an eligible household who regularly participates in a drug or alcohol treatment and rehabilitation program on a non‑resident basis may use all or any part of his food assistance benefits to purchase food prepared for or served to him during the course of such program provided the program has been authorized by FNS for such purposes. 
The applicant household containing such a member must qualify as a household, complete the application process through head of household or through an authorized representative, and must meet all financial and non-financial criteria unless specifically exempt as required by the food assistance rules. 

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[Instructions: replace lines 939798 through 939810.] 
B-4600  FOOD ASSISTANCE ISSUANCE AND ACCOUNTABILITY [Rev. eff. 5/1/12] 
Food assistance offices shall establish issuance and accountability systems to comply with these regulations and to ensure that only certified eligible households receive benefits, that EBT cards are accepted, stored and protected after delivery to receiving points, that benefits are timely distributed in the correct amounts, and that benefit issuance and reconciliation are properly conducted and accurately reported.
Electronic benefits issuance will be handled through the Colorado Department of Human Services, Food Assistance Programs Division, and at designated contractor sites through the Colorado Electronic Benefit Transfer System (CO/EBTS). 
B‑4610  RESPONSIBILITIES OF CERTIFICATION UNITS [Rev. eff. 5/1/12]
Certification functions include determining eligibility for a household and ensuring that the eligibility is current and accurate. Eligibility shall be updated and maintained in the automated system. 
It shall be the responsibility of the certification unit to complete all necessary actions in the automated system to authorize the issuance of benefits. Data entry of case information may be completed by either the certification unit or a separate data entry unit, but not by the issuance unit.
B‑4611  SEPARATION OF CERTIFICATION AND ISSUANCE UNITS [Rev. eff. 5/1/12]
Food assistance offices shall assure a separation of certification functions from issuance functions and thereby provide for internal controls and prevention of fraud. 

[Ed. note: Section B-4611.1 is deleted.] 

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[Instructions: replace lines 939858 through 939880.] 
B-4640  FOOD ASSISTANCE BENEFITS AS OBLIGATIONS OF THE UNITED STATES; CRIMES AND OFFENSES [Rev. eff. 5/1/12] 
Pursuant to Section 15(d) of the Food Stamp Act, coupons are an obligation of the United States within the meaning of 18 United States Code (USC) 8. The provisions of Title 18 of the United States Code, "Crimes and Criminal Procedure, Relative to Counterfeiting, Misuse and Alteration of Obligations of the United States" are applicable to food assistance benefits. Copies of the U.S. Code are available for public inspection by contacting the Food Assistance Director during regular business hours at the Colorado Department of Human Services, Food Assistance Program, 1575 Sherman Street, Denver, Colorado 80203; or at a state publications depository library. No later editions or amendments are incorporated. 
B‑4641  PENALTIES [Rev. eff. 5/1/12] 
Any unauthorized issuance, use, transfer, acquisition, alteration, possession, or presentation of food assistance benefits may subject an individual, partnership, corporation, or other legal entity to prosecution. 
B‑4650  (None) [Rev. eff. 5/1/12] 
B‑4651 - B-4652 (None) [Rev. eff. 5/1/12] 
B‑4653  SECURITY PROCEDURES [Rev. eff. 5/1/12] 
The electronic benefit issuance area shall be physically separated (cage, counter, railing, etc.) from both recipients and other employees of the office who are not responsible for benefit issuance and accountability. Persons not specifically responsible for benefit issuance accountability shall also be barred from the electronic benefit card storage area.
Food assistance offices (including contract issuers) shall take all precautions necessary to avoid acceptance, transfer, negotiation, or use of counterfeit food benefits and to avoid any unauthorized use, transfer, acquisition, alteration or possession of benefits. Electronic Benefit Transfer (EBT) cards shall be safeguarded from theft, embezzlement, loss, damage or destruction. 
Issuance supervisors shall give each cashier a daily supply of blank Electronic Benefit Transfer cards from the bulk card inventory. On high volume issuance days, the cashier's supply may need to be replenished during issuance hours from an office vault. Such a vault containing bulk card inventory shall remain locked unless opened to withdraw cards. Keys and lock combinations shall be controlled and restricted to as few individuals as possible. Combinations and locks should be changed whenever an individual who has received them leaves the employ of the office. 
Ebt cards must be removed from public view and reach. It is required that each cashier operate from a card drawer rather than from sources on top of the counter. The Ebt cards must be locked in the drawer whenever the cashier leaves the issuance area for any reason. In small offices where it is not possible for each cashier to have a separate supply of EBT cards, the number of EBT cards shall be counted whenever one cashier assumes duties of another cashier at the issuance counter, and transferred to that cashier's responsibility. 
The office shall never be left unattended during hours of issuance; for instance, during breaks or lunch, unless the building is secured as it would be after business hours.

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[Instructions: replace lines 940068 through 940080.] 
B-4695.1  FURTHER ACTION ON REPLACEMENT ISSUANCES [Rev. eff. 5/1/12] 
On at least a monthly basis, county offices shall report to the appropriate office of the Postal Inspection Service all EBT cards reported as stolen or lost in the mail. The office shall assist the Postal Inspection Service during any investigation thereof. 

[Ed. note: Sections B-4696 through B-4697.2 are deleted.] 

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[Instructions: replace lines 940081 through 940091; Sections B-4698 through B-4698.3 are deleted.] 

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[Instructions: replace lines 940127 through 940139] 
B-4730  REDEMPTION OF FOOD ASSISTANCE BENEFITS [Rev. eff. 5/1/12] 
As the Food Assistance Program is a national program, food benefits issued to eligible households may be used for the purchase of eligible food in every state. 
B-4731  RETAIL STORES [Rev. eff. 5/1/12] 
Food benefits received by an eligible household may be used at any time by the household or other persons whom the household selects to purchase eligible food for the household. Eligible food means: 
A.  Any food or food product intended for human consumption, except alcoholic beverages, tobacco, and hot food and hot food products prepared for immediate consumption. 
B.  Seeds and plants to grow foods for the personal consumption by eligible households. 
EBT cards should be presented only to retailers authorized by USDA/FNS to accept food benefit payment for food purchases.  
B-4732  (None) [Rev. eff. 5/1/12] 
B‑4733  RETAILER AUTHORIZATION [Rev/ eff. 5/1/12]
Retailers must be authorized by USDA/FNS to be eligible to accept food assistance benefits for eligible food purchases. 
All FNS-authorized retailers must comply with USDA/FNS regulations regarding acceptance and deposit of food assistance benefits. 

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[Instructions: replace lines 940140 through 940147.] 
B-4740  DINING FACILITIES [Rev. eff. 5/1/12] 
Households with special circumstances, such as being handicapped, elderly, or center residents, may be authorized to use food benefits to buy food from authorized communal dining facilities, meals on wheels, drug or alcohol treatment and rehabilitation centers and shelters for battered women and children.
Homeless households may also use food assistance benefits to purchase prepared meals from approved restaurants. 
See certification manual for information regarding households eligible to participate in a dining facility program and the proper annotation required on the household's ID card. 
B‑4750  (None) [Rev. eff. 5/1/12] 
B‑4760  HOMELESS MEAL PROVIDER: PUBLIC OR PRIVATE NONPROFIT [Rev. eff. 5/1/12] 
Homeless food assistance households may use food benefits for meals prepared for and served by an authorized provider (for example, soup kitchen or temporary shelter) that feeds homeless persons. 

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[Instructions: replace lines 940148 through 940158.] 
B‑4800  COLORADO ELECTRONIC BENEFIT TRANSFER SYSTEM (CO/EBTS) [Rev. eff. 5/1/12] 
Colorado Electronic Benefit Transfer System (CO/EBTS) will provide access through the use of a plastic debit card to recipients of food assistance and public assistance programs. The overall rules for CO/EBTS are in the Special Projects Staff Manual, Section 12.100 (12 CCR 2512-2). 
B-4800.1  CARD/PIN ISSUANCE ACCOUNTABILITY [Rev. eff. 5/1/12] 
A.  The county department of social/human services will establish procedures for issuance of CO/EBTS debit cards and personal identification numbers (PINS).  The household will be issued a debit card within six days for expedited cases and within thirty (30) calendar days for non-expedited cases. 
B.  The county department of social/human services shall maintain debit cards on site at its primary location and satellite offices. The EBTS contractor will provide counties with an initial supply of sequentially numbered cards with pre-embossed primary account numbers. County departments must reorder cards to ensure an adequate supply at all times. 
The cards will be secured and accounted for through appropriate inventory and distribution forms. 
C.  The household PIN will be issued through encryption devices supplied by the Colorado Department of Human Services, Food Assistance Programs Division. 
B-4800.2  CO/EBTS PROCESSING [Rev. eff. 5/1/12] 
Eligibility determinations in the Colorado automated system will be processed nightly to make food assistance benefits available the following day for initial certification. Ongoing cases will have benefits posted during a ten (10) calendar day cycle with the Social Security Number (SSN) as the basis. The ending number of the SSN will indicate the date for the posting of benefits. An SSN ending with 1 will be posted on the first day of the month, 2 on the second day of the month, etc. 
During the implementation stages of CO/EBTS, counties that are issuing coupons will verify the amount of EBTS benefits from the previous county when a household is moving into the county.  The food assistance benefits available through EBTS will be converted to coupons by the gaining county. 
B-4800.3  (None) [Rev. eff. 5/1/12] 

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