Background Information

On May 13, 2002, the President signed Public Law 107-171, which includes the Food Stamp Program reauthorization. A number of provisions in that law affected the Food Stamp Program. This Food Stamp Transmittal Letter (FSTL) is dedicated to incorporate the new simplified optional provisions for Section 4102, Simplified Definition of Income and Section 4107, Simplified Definition of Resources. These rules are effective June 1, 2003 on an emergency basis and if no revisions are made to the proposed rules prior to JCARR, they will become effective June 16, 2003 on a permanent basis. If changes are necessary, a copy of the revised rules will be forwarded to you at that time.

Implementation

The simplified definition of income and resources from the 2002 Farm Bill will be effective June 1, 2003. These provisions are to be applied at applications, reapplications, or changes processed on or after June 1, 2003.

Rule Review

All rules in this FSTL were 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 The purpose of a rule review is to determine whether a rule should be continued without amendment, be amended, or be rescinded, taking into consideration each rule's scope and purpose. Rules reviewed include the following:

5101:4-4-01, 5101:4-4-03, 5101:4-4-07, 5101:4-4-13, 5101:4-4-19, and 5101:4-4-31.

5101:4-4-01: Food Stamps: Resource Eligibility Standards

This rule has been amended to remove the funds held in Individual Retirement Accounts (IRAs) and funds held in Keogh plans with no contractual obligation with non-assistance group members from the definition of resources.

5101:4-4-03: Food Stamps: Exempt Resources

The following resources are now included as exempt resources for determining the resources of an assistance group (AG):

• Individual Retirement Accounts (IRAs).
• Keogh plans that involve no contractual obligation with anyone who is not a household member.
• Simplified Employer Pension plans, often referred to as SEP-IRAs, which are operated like IRAs and in which employers make direct deposits in IRA-like retirement accounts for workers.
• Individual Development Accounts (IDAs), regardless of their funding source.

5101:4-4-07: Food Stamps: Special Resource Situations

This rule has been amended to remove Individual Retirement Accounts (IRAs) and Keogh plans from special resource situations.

5101:4-4-13: Food Stamps: Types of Excluded Income

All student financial assistance, including grants, scholarships, fellowships, educational loans on which payment is deferred, work study, veterans' educational benefits, and the like, which are awarded to an AG member enrolled at a recognized institution of post-secondary education, at a school for the handicapped, in a vocational education program, in a vocational or technical school, or in a program that provides for obtaining a secondary school diploma or the equivalent of a secondary school diploma shall be excluded from consideration as income for food stamp purposes.

The following miscellaneous income exclusions have been added:

• Income from blood and blood plasma sales;
• Income from garage sales;
• Interest income from savings or other financial accounts; and
• Income from bingo winnings.

5101:4-4-19: Food Stamps: Countable Income

This rule has been amended to remove all student financial assistance as countable income for food stamp purposes.

5101:4-4-31: Food Stamps: Anticipating Income

This rule has been amended to remove the requirements for mandatory income averaging for earned and unearned educational income since all student financial assistance shall be excluded from consideration as income for food stamp purposes.

Miscellaneous

The following forms are no longer applicable for student financial assistance and are being rescinded:

• JFS 07375 - Educational Information Sharing Form
• JFS 07370 - Record for Educational Expenses
• JFS 07440 - Student Financial Aid Worksheet and Instructions
• Example 8

Training and Technical Assistance

Training and technical assistance needs to implement these rules will be minimal. Clarification regarding these rules will be available to county staff by ODJFS through the Bureau of County Oversight and Support program policy staff.

Fiscal Impact

There should be little or no fiscal impact for the county agencies to implement this FSTL. By eliminating the complicated verification process, these changes will reduce the time spent by caseworkers to process cases and reduce administrative costs for the counties.

FSTL Instructions: