The policy changes in this FSTL are effective August 1, 2000. This cover letter includes a statement of the policy to aid in your understanding. The statement references clearance control number (CCN) 4598 which was assigned when the policy change was placed in the clearance process. The clearance comments have been evaluated and where appropriate, incorporated in the rule.
Rule Review
Rule 5101:4-2-02 was reviewed in accordance with the Ohio Revised Code Section 119.032. Each state agency is required to review its rules a minimum of once every five years. The intent of the law is to ensure that rules are clearly written and that program requirements are accurate, up-to-date, and clearly expressed. To the extent possible, unnecessary paperwork will be eliminated and local agencies will be given increased flexibility. The purpose of a rule review is to determine whether a rule should be continued without amendment, be amended, or be rescinded, taking into consideration each rule's scope and purpose.
Background Information
On July 14, 1999, in an effort to provide support to working families and to help those leaving the welfare rolls retain their jobs and succeed in the workforce, the President announced a policy clarification related to categorical eligibility for food stamps along with other options to simplify complex food stamp rules. After the President's announcement, the United States Department of Agriculture (USDA) launched a campaign to better serve low-income working families and to better ensure adequate child nutrition through the Food Stamp program. USDA has made this campaign a high priority in an effort to address these food stamp changes.
The USDA Food and Nutrition Service (FNS) Regional Administrator immediately issued policy guidance to the States for implementation. This announcement and guidance was the most expedient way to address problems in the program without introducing legislation to amend the Food Stamp Act. FNS has encouraged states to move quickly on implementation, especially in the area of expanding categorical eligibility.
Categorically Eligible Assistance Groups
Current food stamp law provides that assistance groups (AGs) authorized to receive or receiving benefits under a program funded under Title IV-A of the Social Security Act (SSA) are categorically eligible for food stamps. The law also provides that the resources of individuals who are receiving such benefits are not counted for the purpose of determining food stamp eligibility.
The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 did not change categorical eligibility rules; however, it introduced a new, more flexible block grant program called Temporary Assistance for Needy Families (TANF). State TANF programs can be programs primarily funded with Federal money under Title IV-A and programs primarily funded with State money that are counted for maintenance of effort (MOE) purposes under the TANF program. In Ohio, the TANF program based on cash eligibility criteria is called the Ohio Works First (OWF) program. Ohio also administers the Prevention, Retention and Contingency (PRC) program under Title IV-A Federal regulations, State law, and the Title IV-A State plan, as amended. The PRC program is designed to provide benefits and services to needy families and low-income employed families who are in need of help with essential supports to move out of poverty and become self-sufficient.
Because the intent of the categorical eligibility provision in the Food Stamp Act is to deem eligibility for food stamp families, FNS has clarified that any time a member of an AG is authorized to receive or receiving benefits under a program for needy families and low-income employed families funded primarily (50% or more) through TANF (Title IV-A or MOE), whether cash or other benefits such as services, the State must confer categorical eligibility to those food stamp AGs. In Ohio, all PRC benefits and services are primarily funded through TANF or MOE.
Ohio is expanding categorical eligibility to include families transitioning off of cash assistance or low-income families not receiving OWF who are receiving or who are authorized to receive PRC benefits or services. Any PRC benefit or service authorized under the county's PRC plan would confer categorical eligibility to a food stamp applicant/recipient AG.
Purpose of PRC Benefits and Services
PRC by design has been developed to provide benefits and services that are not considered "assistance" in accordance with 45 CFR 260.31. More detailed information regarding the PRC program operation such as the use of PRC funds, PRC benefits and services, PRC program guidance, PRC program restrictions, AG composition, eligibility criteria, applicant responsibility, application processing, and notice of approval/denial has been published in OWF/PRC Guidance Letter #13.
PRC Family Defined
PRC benefits and services are available to a family AG which includes, at a minimum, a minor child or a pregnant individual. A minor child means an individual who has not attained 18 years of age or has not attained 19 years of age and is a full-time student in a secondary school (or in the equivalent level of vocational or technical training). Beyond the minimum requirements, PRC benefits and services may also be provided to other members of the household who could significantly enhance the family's ability to achieve economic self-sufficiency. In addition, PRC benefits and services may be provided to noncustodial parents of a minor child as defined in 45 CFR 260.30.
Examples of PRC Families and Their Affect on the Food Stamp AG
Example #1-A The AG consists of a mother and her two children. On January 3rd, the mother applies for PRC services and is authorized for continuing counseling services. On February 2nd, the children go to live with their father and on the same date the mother applies for food stamp benefits and reports that the children are now living with their father. The father is not on food stamps currently. The mother has her PRC approval notice for counseling services with her on the date of application. She is categorically eligible for at least the minimum food stamp benefit for a one-person AG because she was authorized for PRC counseling services which began on January 3rd and will continue until it is determined the counseling services are no longer needed. Continuing authorization of the counseling services must be verified at each food stamp reapplication.
Example #1-B On February 20th, the father of the children comes into the agency to apply for food stamps because he is not earning enough money to buy food for his children. He has with him a copy of the January 3rd PRC approval notice for counseling services for the mother of his children. The children were living with their mother at the time of her approval for PRC counseling services but when the children moved in with their father the PRC categorical eligibility did not confer to the father's AG because neither of the children were authorized to receive a PRC benefit or service. No members of this food stamp AG are authorized to receive a PRC benefit or service and therefore, the food stamp AG is not considered to be PRC categorically eligible.
NOTE: Only an authorized PRC member can confer PRC categorical eligibility to the food stamp AG. For example, if a new member(s) moving into an existing food stamp AG is not authorized to receive a PRC benefit or service and no other members of the existing food stamp AG are authorized to receive a PRC benefit or service, the food stamp AG is not PRC categorically eligible. If a new member(s) who has no approval for PRC benefits or services moves into a food stamp AG that has an authorized PRC member then PRC categorical eligibility is conferred to the new member(s). If there are no members in the food stamp AG authorized to receive a PRC benefit or service then no PRC categorical eligibility exists for that AG.
Example #2 An unemployed noncustodial father living alone is authorized for six months of parenting classes, as specified in the county's PRC plan, effective January 3rd . On March 6th, he comes into the agency to apply for food stamps and reports that his girlfriend and her four children moved in with him on March 2rd . He states that they all purchase and prepare their food together. He provides his eligibility worker with a written statement from the PRC program eligibility worker (signed and dated by the worker and a phone number) that he was authorized for PRC parenting class services on January 3rd for six months. Since the noncustodial parent is authorized for PRC parenting class services through June 30, 2000, the six-person AG is categorically eligible for food stamps.
Example #3 A mother is authorized for homemaker services for the period of time specified in the case plan. She is hoping to be reunited with her child who is currently in a foster home. During the time she is authorized for PRC homemaker services, if an application for food stamps is filed, she is categorically eligible for at least the minimum food stamp benefit for the period specified in the case plan.
NOTE: In the above examples, with the exception of #1-B, even though the AG is considered categorically eligible and not subject to the deemed eligibility factors such as the gross and net income test or the resource limits, the AG must meet all other food stamp eligibility and benefit determination requirements.
Requirements of PRC Categorical Eligibility
As described in the section of this cover letter titled, "PRC Family Defined", an AG as defined in the previous paragraph shall be categorically eligible for food stamps only for the number of months the PRC benefit or service is authorized. For example, a member of the AG is authorized for a one-time/one month PRC benefit or service, the food stamp AG would be considered categorically eligible for that one month. If a member of the AG is authorized for a PRC benefit or service that is intended to cover up to four months but it is authorized to be received in a one-time payment, the AG is categorically eligible for one month unless subsequent PRC benefits or services are authorized. PRC benefits and services may be authorized on a continuing basis with no set end date. In those situations the PRC categorical eligibility would continue through the food stamp certification period and the PRC authorization verified at each reapplication unless there is a reported or known change in the authorization of the PRC benefits or services during the certification period. Any reported or known change would require action in accordance with paragraph (G) of rule 5101:4-7-01. For purposes of conferring categorical eligibility to a food stamp AG in which a member has been "authorized" to receive a PRC benefit or service, "authorization" is defined as the "date of approval."
NOTE: If the authorization for PRC benefits or services ends during the food stamp certification period, the food stamp AG loses their categorical eligibility. There is no option to allow the AG to continue their categorical eligibility until the next reapplication. All reported or known changes during the certification period including those related to PRC benefits or services must be acted on timely.
An ODHS Account Managers memo was issued on September 28, 1998, titled, "Individuals Disqualified from a Federal, State, or Local Means-Tested Program Due to Failure to Comply." This memo allowed the continuation of categorical eligibility until the next reapplication, if the county chose to do so, rather than redetermine eligibility at the time of the loss of the categorical eligibility due to a failure to comply with theother program's requirements resulting in a penalty/disqualification from that program.
FNS has clarified that if a one-time PRC benefit payment is: 1) not expected to be received again within a 12-month period, 2) does not cover needs that extend beyond four months, 3) is designed to address barriers to achieving self-sufficiency rather than provide assistance for normal living expenses, and 4) the AG did not receive a regular OWF payment in the prior month or current month, then the payment is considered a nonrecurring lump sum payment for food stamp purposes and is excluded as income.
Certification periods for food stamps shall continue to be assigned in accordance with rule 5101:4-5-03; earned income cases subject to status reporting requirements are to be certified for no more than three months. If the authorized PRC benefit or service renders the food stamp AG categorically eligible for less than three months, it would be prudent to certify the AG for one or two months and redetermine food stamp eligibility at the end of the one- or two-month certification period. In situations where the county is authorizing a one-time only benefit or service, it may be administratively easier and less error prone for a county to authorize case management services, counseling, or other continuing services at the same time as the one-time only benefit or service is authorized. For example, an individual with earned income has applied for assistance with the payment of a gas shut-off and is also applying for food stamps. The county is going to authorize the PRC payment for the gas shut-off which is a one-time only benefit payment that will render the food stamp AG categorically eligible for one month. While authorizing the one-time only benefit payment for the gas shut-off, the county may choose to also authorize a money management class for a period of three, six, nine, twelve months or on a continuing basis to allow the period of PRC categorical eligibility to align with the appropriate food stamp certification period(s). PRC benefits or services authorized on a continuing basis with no specified end date must be verified at each food stamp reapplication and any changes during the certification period acted on timely.
If any member of the food stamp AG is authorized to receive or receiving a PRC benefit or service, the AG is categorically eligible for food stamps, if otherwise eligible. Although the AG is considered "categorically eligible," an ineligible member (as defined in rule 5101:4-2-03) of the food stamp AG authorized to receive or receiving a PRC benefit or service cannot be included in the food stamp AG size when determining the benefit amount. The income and resources of the ineligible member shall be determined in accordance with rules 5101:4-6-13 and 5101:4-6-15.
For OWF AGs, eligibility factors which are deemed for food stamp eligibility without the verification required in accordance with rule 5101:4-2-09 of the Administrative Code (because of their OWF status) are resource, gross and net income limits, social security number information, sponsored alien information, and residency. For those applicant/recipient food stamp AGs gaining categorical eligibility under an authorized PRC benefit or service, these deemed eligibility requirements may or may not have been documented/verified prior to authorizing the PRC benefit or service. The PRC application and approval process differs from county-to-county and may have different verification requirements than the OWF application process. The OWF application process requires earned and unearned income verification, social security number information, sponsored alien information, and residency information. (Note: There is no resource limit for OWF.) Due to this difference, all earned and unearned income, social security number information, sponsored alien information and residency of an AG determined to be categorically eligible due to the authorization or receipt of an authorized PRC benefit or service must be verified in accordance with rule 5101:4-2-09 if it has not been documented and verified under the PRC application process. The food stamp AG containing a member with an authorized PRC benefit or service is not subject to the food stamp gross and net income standards or the resource limits. Any other required verification such as allowable expenses and factors that are questionable shall be verified in accordance with rule 5101:4-2-09.
Detailed verification of income as outlined in rule 5101:4-4-31 is especially important in determining the correct allotment for the food stamp AG. It should not be assumed that the income has been verified for the authorized PRC benefit or service. For example, some counties may accept a client's statement or declaration of income when authorizing a PRC benefit or service; this would not be sufficient to determine the food stamp allotment.
Even though an AG is categorically eligible for food stamps, an AG of three or more members may not be entitled to an allotment because the net income exceeds the level at which benefits are issued. All categorically eligible AGs of one or two persons must be provided the minimum benefit as required by rule 5101:4-4-39. Any AG determined to be categorically eligible is subject to all other Food Stamp program eligibility and benefit determination requirements.
The county eligibility worker should encourage applicants/recipients of PRC to apply for food stamps. It is our recommendation to advise an authorized PRC AG that although they are not subject to the 130% and 100% income eligibility standards or the resource limits for food stamps, if their gross income prior to any deductions is close to the gross and/or net income eligibility standard for their AG size and the AG has little or no allowable food stamp deductions, eligibility for a food stamp allotment may not exist after the budgeting process is complete. One- and two-person AGs may be advised that if their gross income is close to the income eligibility standards for an AG size of one or two, they may only be eligible for the "minimum benefit."
A model PRC approval notice has been developed for use when authorizing PRC benefits or services. The model notice was developed from the Notice of Approval of Your Application for Assistance, ODHS 4074. The language content of the ODHS 4074 notice was not changed; a sentence was added to the notice to inform AG members who are authorized to receive PRC benefits or services that they may be eligible for food stamps and if interested, to contact their local county department of job and family services. The model FSTL No. 230 notice will be issued under separate cover.
Any PRC benefits or services authorized by the county as specified in the county's PRC plan shall meet the requirements of conferring categorical eligibility to the food stamp applicant/recipient AG. This can be documented in the casefile with a copy of the approval notice from the PRC Program or other written documentation from the PRC Program confirming authorization of a PRC benefit or service. If the authorized PRC benefit or service has been entered on the SFPR screen in CRIS-E and documented in CLRC to connect the two, this would also be acceptable verification of authorization of the PRC benefit or service. The period of authorization must be verified if it is not included on the approval notice or on other written documentation. PRC benefits or services authorized on a continuing basis must be verified at each food stamp reapplication. Any changes during the certification period must be acted upon in accordance with rule 5101:4-7-01(G).
Funds Not Conferring Categorical Eligibility
TANF funds transferred to Title XX or Child Care Development Block Grant (CCDBG) for child care services are no longer considered funding under Title IV-A of the SSA, and are thus not subject to categorical eligibility. All other TANF funds are considered funded under Title IV-A of the SSA, regardless of which agency administers the funds.
Opportunity to Apply for Food Stamps
The county departments of job and family services (CDJFS) shall ensure that all individuals contacting the agency are given an opportunity to file an application for food stamps on the date of contact with the CDJFS. Individuals diverted from applying for OWF shall not be diverted from applying for food stamp benefits and other support services. OWF AGs going off of cash assistance may still qualify for food stamps. A greater number of OWF food stamp AGs transitioning off OWF who are authorized to receive PRC benefits or services rendering them categorically eligible for food stamps is expected to increase the food stamp caseload which is the goal of the Food Stamp program.
Implementation
Policy conferring categorical eligibility to a food stamp AG in which a member is authorized to receive or receiving a PRC benefit or service is effective August 1, 2000. Implementation of this policy shall be at the time of application, reapplication, or a reported change. A casefile review is not necessary.
Quality Control Reviews
Quality Control Reviews of PRC categorical eligibility will be based upon Ohio's identification of the PRC benefits and services in our State. A list of generic PRC benefits and services has been developed and submitted to the Food and Nutrition Service. For your information, a copy of the list is included with this transmittal. Reviewers will accept documentation of eligibility for benefits/services which would result in categorical eligibility without seeking verification that such benefits/services were received. Documentation in the case file may consist of a copy of the PRC approval notice, other written documentation from the PRC Program confirming authorization of a PRC benefit or service, or documentation in CLRC of the authorized PRC benefit or service entered on SFPR. The documentation must contain the period of authorization or specify continuing authorization of benefits or services.
The Quality Control Review process of OWF/SSI/DA AGs categorically eligible for food stamps shall remain unchanged.
CRIS-E PROCEDURE
There will be a question/statement added to screen AEISD in CRIS-E. "PRC AUTH" , "Y/N" (yes/no) to prompt the worker to ask if the applicant/recipient is authorized to receive a PRC benefit or service which confers categorical eligibility for food stamps. A "Y" will prompt the CRIS-E driver to bypass/ignore the gross and net income tests and the resource limits for eligible members of the food stamp AG. The begin and end date fields for the authorized PRC benefit or service must be entered on the new field under "Categorical PRC" on the AEISD screen. If there is more than one benefit or service authorized, enter the one that is authorized for the longest period of time. If the PRC benefit or service has a specific end date or the end date is known, enter the end date. If the PRC benefit or service is authorized on an ongoing basis enter an end date of no greater than the certification end date. If the PRC end date is before the certification end date, the EW will receive an alert that PRC authorization is ending. At reapplication/certification, CRIS-E will blank out the "Y/N" and the begin and end dates under " Categorical PRC." At reapplication, the EW must verify the status of PRC benefits or services authorized on a continuing basis or that extend beyond the original food stamp certification period. If the PRC benefit or service is not authorized to continue for the new certification period, enter a "N" under "PRC AUTH" and enter an end date. If a change occurs during the certification period related to the PRC authorization end date, the EW must end date the PRC benefit or service appropriately before rerunning eligibility. Ineligible members in the food stamp AG will continue to have their income/resources counted in determining the net adjusted income and the food stamp allotment in accordance with rules 5101:4-6-13 and 5101:4-6-15.
Rule Amendment
Rule 5101:4-2-02 has been amended to include the policy regarding PRC program categorical eligibility. Other changes have been incorporated into the rule to reflect new provisions that were implemented under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
It should be noted that the implementation and expansion of categorical eligibility under the PRC program does not change the policy and procedure in determining categorical eligibility for OWF/SSI/DA AGs or a combination of OWF, SSI and/or DA member AGs categorically eligible for food stamps due to all members of the AG being authorized to receive or receiving OWF, SSI and/or DA benefits.