November 4, 2008 FOOD STAMP TRANSMITTAL LETTER NO Food Stamp Certification Handbook Holders

Transcription

1 November 4, 2008 FOOD STAMP TRANSMITTAL LETTER NO. 292 To: From: Food Stamp Certification Handbook Holders Helen E. Jones-Kelley, Director SUBJECT: 2008 Farm Bill: Food Stamp Reauthorization and October 1, 2008 Mass changes These rules were effective on an emergency basis 10/01/08. If no revisions are made to the proposed rules prior to the finalization by JCARR, the regular filing will become effective on a permanent basis on or about 12/18/08. Reason for Change On June 18, 2008 Congress enacted Public Law , The Food, Conservation, and Energy Act of 2008, otherwise known as the "Farm Bill". The law contains various provisions that affect food stamp eligibility, benefits and program administration. This Food Stamp Transmittal Letter (FSTL) incorporates the changes mandated by the Farm Bill that are associated with the October 1, 2008 annual cost-of-living adjustments. Previous Policy The standard utility allowance, standard telephone allowance, excess shelter deduction, maximum monthly allotments, net income standards (100% of poverty), gross income standards (130% of poverty), and separate assistance group standards for elderly and disabled assistance groups only (165% of poverty), are subject to change each October to reflect any cost-of-living adjustment (COLA). New Policy Effective October 1, 2008, the following changes are applicable. The significant increase in the standard utility allowance can be attributed to increased natural gas costs during the winter of

2 FSTL. No. 292 Page 2 Excess Shelter Deduction $446 Standard Utility Allowance $586 Standard Telephone Allowance $31 Homeless Shelter Deduction $143 (No change) Standard Deduction $144 for an AG size of 1-3 persons; $147 for an AG size of 4 persons; and $172 for an AG size of 5 persons; and, $197 for an AG size of 6 or more persons Dependent Care A provision of the Farm Bill eliminates the cap on the deduction for dependent care expenses (currently $175 or $200 per month, depending on the dependent's age) is being eliminated. The actual verified dependent care costs are to be utilized in calculating eligibility and benefit levels. 5101: Food stamps: definitions The Food Stamp Act of 1977 is renamed the Food and Nutrition Act of The "minimum benefit" for one and two person assistance groups has been increased from $10 to 8 percent of the minimum allotment of the one-person Thrifty Food Plan. The minimum allotment for the one and two-person assistance groups is now $ : Food stamp employment and training (FSET): required hours Language has been added to allow individuals who are voluntarily participating in Employment and Training to participate more than 120 hours per month or the number of hours based on their benefits divided by the state or federal minimum wage, whichever is higher.

3 FSTL. No. 292 Page : Food stamp employment and training (FSET): supportive services The cap on the deduction for dependent care expenses has been removed and the rule changed to allow assistance groups who are eligible for the deduction to deduct the entire verified amount of dependent care expenses when calculating eligibility and benefit levels. 5101: Food stamps: exempt resources This rule is being amended to reference rule 5101: for the exclusion of all retirement accounts as a countable resource. A chart providing a summary of taxpreferred retirement accounts/plans is attached as a desk aid for your reference. 5101: Food stamps: resources excluded by law All tax-preferred education accounts (e.g., 529s) and all tax-preferred retirement plans, contracts, or accounts described in sections 401(a), 403(a), 403(b), and 501(c)(18) of the Internal Revenue Code of 1986 and the value of funds in a Federal Thrift Savings Plan account as provided for in 5 U.S.C are excluded as resources. The rule also provides for the exclusion of any successor retirement accounts that are exempt from federal taxes. 5101: Food stamps: income standards This rule is being amended to reflect the adjustments to the Gross Monthly Income Standards, Net Monthly Income Standards, and the Separate Assistance Group Income Standards for Elderly and Disabled Assistance Groups. 5101: Food stamps: types of excluded income The references to the Food Stamp Act of 1977 are being replaced with Food and Nutrition Act of : Food stamps: deductions from income This rule is being amended to remove the cap on the deduction for dependent care expenses (currently $175 or 200 per month, depending on the dependent's age) and allows assistance groups eligible for the deduction to deduct the entire verified amount of dependent care expenses when calculating eligibility and benefit levels. This rule is also being amended to reflect the updated standard utility allowance, standard telephone allowance, standard deductions, and the excess shelter deduction. The minimum standard deduction for one, two, and three person assistance groups has increased to $144. Paragraph (C)(10) of this rule is being amended to define the reasonable costs of transportation to obtain medical treatment or services as the current federal or state

4 mileage rate, whichever is higher. Currently, the Internal Revenue Service's (IRS) standard business rate of 58.5 cents per mile, rounded up to 59 cents per mile is to be FSTL. No. 292 Page 4 applied. This mileage reimbursement rate is also applicable for self-employment expenses described in rule 5101:4-6-11(B)(4). 5101: Food stamps: anticipating income This rule is being amended to remove references to the dependent care cap. 5101: Food stamps: determining the monthly allotment Appendix A of this rule is being amended to reflect the new maximum allotment amounts. Implementation: All applications and reapplications being processed for October 2008 and after shall have the new amounts applied. CRIS-E tables will be updated with the changes effective October 1, Alerts will be generated for all cases for which CRIS- E cannot update automatically and the eligibility determiner will be required to run ED/BC for these cases to implement these changes. Notice requirements are found in OAC rule 5101: (A). The allotment tables will be available on the Innerweb or may be calculated using the procedure found in paragraph (B) of Appendix A of OAC rule 5101: The elimination of the maximum dependent care deductions is effective October 1, In cases where the full dependent care costs (that exceeded the maximum allowed) were entered into CRIS-E and CRIS-E calculated the amount of the deduction, CRIS-E will automatically lift the cap and apply the actual dependent care costs during the mass change process. For cases in which the dependent care costs exceeded the maximum limit and the eligibility worker entered only the maximum limit, CRIS-E cannot automatically adjust the calculation to reflect actual dependent case costs. The eligibility worker must apply the actual verified costs at the time of recertification or when the case is next reviewed, whichever occurs first. If the case file shows that the assistance group had verified dependent care expenses in excess of the cap, the eligibility worker must restore benefits starting with the October 1, 2008 benefit. Example: Prior to October 1, 2008, an assistance group reported and verified monthly dependent care costs of $500 per month. If the eligibility worker entered the $500 per month, CRIS-E calculated the maximum allowable amount of the deduction based on the age of the dependent. The October 2008 mass change will lift the dependent care cap and allow $500 in the food stamp calculation. If the eligibility worker entered only the maximum allowed ($175 or $200 per month), the October mass change will not lift the cap and the maximum will continue to be used. When the eligibility worker next processes a change in the case or a recertification is being completed, and the case record shows that the

5 assistance group had previously verified dependent care expenses in excess of the cap, benefits must be restored back to October 1, In situations where the verified FSTL. No. 292 Page 5 amount of dependent care expenses were less than the cap, CRIS-E mass change will continue to use the amounts entered. Instructions: This transmittal letter obsoletes FACT No. 31. The FACT was implemented under emergency rule-filing with an effective date of October 1, Remove it and file as obsolete. Location Remove and File as Obsolete Insert/Replacement Glossary Food stamps: definitions Chapter 3000 Food stamp employment and training: required hours Food Stamps employment and training: supportive services Chapter 4000 Food stamps: exempt resources Food stamps: resources excluded by law 5101: (effective May 2, 2005) 5101: (effective January 8, 2007) 5101: (effective December 31, 2006) 5101: (effective June 12, 2008) 5101: (effective July 17, 2005) 5101: (December 18, 2008) 5101: (December 18, 2008) 5101: (December 18, 2008) 5101: (December 18, 2008) 5101: (December 18, 2008) Food stamps: income standards. 5101: (effective October 29, 2007) 5101: (December 18, 2008) Food stamps: types of excluded income Food stamps: deductions from income. Food stamps: anticipating income Chapter 5000 Food stamps: determining the monthly allotment. Desk Aid Appendix : (effective June 12,2008) 5101: (effective October 29, 2007) 5101: (effective May 22, 2004) 5101: (effective October 29, 2007) 5101: (December 18, 2008) 5101: (December 18, 2008) 5101: (December 18, 2008) 5101: (December 18, 2008) Summary of Tax-Preferred Retirement Accounts/Plans

6 Record of Changes to Handbook N/A Update with the number and date of this transmittal. HJK/smh

7 5101: Food stamps: definitions. (A) Terminology and meanings used in the administration of the food stamp program are as follows: "Alien Automated status verification system (ASVS)" means the automated verification system maintained by the department of homeland security (DHS), U.S. citizenship and immigration services (USCIS) office (formerly known as the immigration and naturalization service), which may be accessed by county agencies to verify immigration status. "Allotment" means the total value of food stamp benefits an assistance group (AG) is authorized to receive during each month or other time period. The allotment may be issued in the form of check (cash-out), electronic benefit transfer (EBT), or other approved methods. "Assessment" means an in-depth evaluation of employability skills coupled with counseling on how and where to search for employment. "Assistance group (AG)" means those persons determined potentially eligible or eligible to receive benefits together under one AG name. This was formerly referred to as the "food stamp household." The AG is also known as "standard filing unit (SFU)" in the CRIS-E system. "Assistance group (AG) name" means the case name. All AGs will have an AG name. The AG name may or may not be the applicant. The person designated as the AG name will be the person to receive all notices sent for each AG unless the applicant or AG has designated an authorized representative to apply in the AG's behalf. The AG name will assume all responsibilities such as reviewing the application form for completeness and validity, the face-to-face or interactive interview, and rights and responsibilities unless the AG has designated an authorized representative to apply in their behalf. The AG name is responsible for signing and dating the (JFS 07200) "Request for Cash, Food Stamp, and Medical Assistance" (rev. 5/05), and the printed copy of information (PCI) or the (JFS 01846) "Case Worksheet-Cash, Food Stamp, and Medical Assistance Interview" (5/05). "Assistance group payee (AG payee)" means a person who is designated to receive the benefits for an AG. The person who is the AG name will be the payee unless the AG has an authorized representative to receive the benefits and this authorized representative is active to receive the benefits. There will be only one AG payee per AG and benefits will be issued only to this person. No notices will be sent to the payee. "Base of eligibles" means employment and training mandatory participants. "Beneficiary and earnings data exchange (BENDEX)" means the system that is

8 5101: used to verify social security benefit information. "Case" means one or more AGs who live in the same household. The county agency shall make every effort to assign all AGs contained in the same case to one eligibility worker (EW). "Case Worksheet- Cash, Food Stamp, and Medical Assistance Interview" means the document which is utilized by the state of Ohio to gather data for the cash, food stamp, and medical assistance programs. The form will be completed by the county agency when CRIS-E is unavailable or for home visits and telephone interviews. The application/recipient will acknowledge the information on the form by signing and dating the form. "Certification unit (CU)" means a unit within a county agency responsible for determining the eligibility of applicant AGs. "Code of Federal Regulations (CFR)" means the codification of the rules published in the Federal Register by the United States government. "CRIS-E" means the client registry information system-enhanced. "Data management unit (DMU)" means a section primarily responsible for the maintenance of the food stamp master file and the production and reconciliation of food stamp benefits. "Date of entry" or "date of admission" means the date established by USCIS the immigration and naturalization service as the date an alien was admitted into the United States. "Department of housing and urban development (HUD)" means a governmental agency that provides housing to low-income households. "Disability financial assistance (DFA)" means the state and county funded program which provides cash assistance to individuals in accordance with Chapter 5101:1-5 of the Administrative Code. "Disability medical assistance (DMA)" means the state funded program which provides medical assistance to individuals who are medication dependent and ineligible for any category of medicaid in accordance with rule 5101: of the Administrative Code. "Drug addiction or alcoholic treatment and rehabilitation program" means any drug addiction or alcoholic treatment and rehabilitation program conducted by a private nonprofit organization or institution, or publicly operated community mental health center, under part B of Title XIX of the Public Health Service Act (42 USC 300x et seq.) (1/99)(1992), as amended. "Under part B of Title XIX of the Public Health

9 5101: Service Act" is defined as meeting the criteria which would make it eligible to receive funds even if it does not actually receive funding under part B of Title XIX. "Elderly or disabled member" means a member of an AG who: (1) is sixty years of age or older; or (2) receives supplemental security income benefits under Title XVI of the Social Security Act of 1935, as amended or disability or blindness payments under Title I, II, X, XIV, or XVI of the Social Security Act (1935); (3) is a veteran with a service-connected or nonservice-connected disability rated by the veterans' administration (VA) as total or paid as total under Title 38 of the United States Code (U.S.C.) (1958)(2002), as amended; (4) is considered in need of regular aid and attendance or permanently housebound under such title of the code; (5) is a surviving spouse of a veteran and considered by the VA to be in need of regular aid and attendance or permanently housebound or a surviving child of a veteran and considered by the VA to be permanently incapable of self-support under Title 38 of the United States Code U.S.C.; or (6) is a surviving spouse or surviving child of a veteran and considered by the VA to be entitled to compensation for a service-connected death or pension benefits for a nonservice-connected death under Title 38 of the United States Code U.S.C. and has a disability considered permanent under section 221(i) of the Social Security Act. "Entitled" as used in this definition refers to those veterans' surviving spouses and children who are receiving the compensation or pension benefits stated or have been approved for such payments, but are not receiving them; (7) receives federally or state-administered supplemental benefits under section 1616(a) of the Social Security Act provided that the eligibility to receive the benefits is based upon the disability or blindness criteria used under Title XVI of the Social Security Act; (8) receives disability retirement benefits from a governmental agency because of disability considered permanent under section 221(i) of the Social Security Act; (9) received an annuity payment under section (2)(a)(1)(iv) of the Railroad Retirement Act of 1974, as amended and is determined to be eligible to receive medicare by the railroad retirement board; or section (2)(a)(1)(v) of the Railroad Retirement Act of 1974 and is determined to be disabled based upon the criteria used under Title XVI of the Social Security Act; (10) is a recipient of interim assistance benefits pending the receipt of supplemental security income, or disability-related medical assistance benefits under Title XIX of the Social Security Act (medicaid); (11) receives federally or state administered supplemental benefits under section 212(a) of PL (7/93) 42 U.S.C. 1382, (03/2004). "Eligibility determination/benefit calculation (ED/BC)" means the automated process of determining eligibility and level of benefits by the CRIS-E system which is based on data entered into the system. "Eligibility worker (EW)" means an employee of the county agency responsible for determining eligibility for food stamps. "Eligible foods" means any food or food product intended for human consumption except alcoholic beverages, tobacco, and hot foods and hot food products prepared

10 5101: for immediate consumption; seeds and plants to grow foods for the personal consumption of eligible AGs; meals prepared and delivered by an authorized meal delivery service to AGs eligible to use food stamp benefits to purchase delivered meals; or meals served by a communal dining facility for the elderly and their spouses, disabled recipients who receive social security or supplemental security income (SSI) and their spouses, and to homeless AGs eligible to use food stamp benefits for communal dining; meals prepared and served by an authorized drug addict or alcoholic treatment and rehabilitation center to narcotic addicts or alcoholics and their children who live with them; meals prepared and served by a group living arrangement facility to residents who are blind or disabled as defined in criteria (2) to (11) of the definition of "elderly or disabled member" in this rule; meals prepared by and served by a shelter for battered women and children to its eligible residents; and in the case of a homeless food stamp AG, meals prepared and served by an authorized public or private nonprofit establishment (e.g., soup kitchen, temporary shelter), as determined by the county agency, which provides meals on a regular basis to homeless persons. "Employment and training component" means a work experience, work training or job search program as described in section (6)(4)(B)(iv) of the Food Stamp Act of 1977 Food and Nutrition Act of 2008 (7 USC 2014[2][4][b]) (7 U.S.C. 2015), (06/2008) designed to help food stamp recipients move promptly into unsubsidized employment. "Employment and training mandatory participant" means a food stamp program applicant or participant who is required to be work-registered under 7 USC U.S.C. 2014(d)(1) "Employment and training program (E&T)" means a program operated by each county agency consisting of one or more work, training, education or job search components. "Employment services (ES)" means the agency responsible for work registration and job search activities. "Exempted" for purposes of work registration requirements, persons not required to register due to meeting an exemption from work registration as outlined in rule 5101: of the Administrative Code. "Food and Nutrition Act" means the Food and Nutrition Act of 2008, Pub. L. No , (06/2008), and subsequent amendments thereto. "Food and nutrition service (FNS)" means the federal agency responsible for the overall administration of the food stamp program. (This agency was previously named the food and consumer service (FCS). "Food Stamp Act" means the Food Stamp Act of 1977 (PL ), and subsequent

11 5101: amendments thereto. "Food stamp program (FSP)" means a program designed to promote the general welfare and to safeguard the health and well-being of the nation's population by raising the levels of nutrition among low-income households. The Food Stamp Act of 1977 Food and Nutrition Act states, in part: "Congress hereby finds that the limited food purchasing power of low-income households contributes to hunger and malnutrition among members of such households. Congress further finds that increased utilization of food in establishing and maintaining adequate national levels of nutrition will promote the distribution in a beneficial manner of the Nation's agriculture abundance and will strengthen the Nation's agricultural economy, as well as result in more orderly marketing and distribution of foods. To alleviate such hunger and malnutrition, a food stamp program is herein authorized which will permit low-income households to obtain a more nutritious diet through normal channels of trade by increasing food purchasing power for all eligible households who apply for participation." "Grantor" when used in reference to educational loans, scholarships and grants means the originator of the funds. "Group home" means a public or private nonprofit residential setting that provides its residents with a majority of their meals (over fifty per cent of their meals daily), has no more than sixteen residents, and is certified by a public agency of the state of Ohio under section 1616(e) of the Social Security Act, or under standards determined by the secretary of the United States department of agriculture to be comparable to standards implemented by appropriate state agencies under section 1616(e) of the Social Security Act. To be eligible for food stamp benefits, a resident of such a group living arrangement must be blind or disabled as defined in criteria (2) to (11) of "elderly or disabled member" in this rule. "Group living arrangement" means the same as a group home. Refer to the definition of "group home" in this rule. "Homeless individual" means an individual who lacks a fixed and regular nighttime residence or an individual whose primary nighttime residence is: (1) a supervised shelter designed to provide temporary accommodations (such as a welfare hotel or congregate shelter); (2) a halfway house or similar institution that provides temporary residence for individuals intended to be institutionalized; (3) a nighttime residence which is a temporary accommodation for no more than ninety days from the date the temporary accommodation began in the residence of another individual; or (4) a place not designated for, or ordinarily used, as a regular sleeping accommodation for human beings (a hallway, a bus station, a lobby or similar places). "Homeless meal provider" means an authorized public or private establishment (e.g., soup kitchen, temporary shelter), which provides meals on a regular basis to

12 5101: homeless persons, as determined by the county agency. "Household" means a personal place of residence where persons live together at the same common address. The persons may be related or they may be unrelated. Group homes and commercial establishments such as hotels or boarding houses are not included in this definition of household. The entire household will be referred to as the case. A household may contain more than one AG. "Individual retirement account (IRA)" means a fund established for the purpose of savings. "Interactive interview (II)" means the conducting of a face-to-face interview with an applicant via a computer terminal to data enter information received enabling the automated determination of eligibility and level of benefits. "Internal revenue service (IRS)" means the federal agency responsible for the administration of governmental income from taxes. "Issuance unit (IU)" means a section responsible for the issuance of benefits to certified AGs. "Low-income AG" means an AG whose annual income does not exceed one hundred twenty-five per cent of the office of management and budget poverty guidelines. "Management evaluation (ME) review," means an analysis conducted to determine if a county is administering and operating the food stamp program in accordance with program requirements. "Minimum benefit" means the lowest full monthly amount of food stamps that an eligible one and two person AG may receive. By law, this amount is ten dollars eight per cent of the cost of the maximum allotment for an AG containing one member. "Nonassistance Non assistance (NA)" means an AG that participates in the food stamp program but at least one of its members does not receive public assistance (PA). "Newly work-registered" means a food stamp participant registered for work at the point of application. "Ohio bureau of employment services (OBES)" refer to the definition for "Employment Services" in this rule. "Overpayment" means the amount by which benefits issued to an AG exceeds the amount the AG was eligible to receive.

13 5101: "Ohio works first (OWF)" means a program funded under Title IV-A of the Social Security Act. This program was formerly referred to as the "TANF program" and the "ADC program." "Ohio works first (OWF) recipient" means any person who receives OWF money payment, whose entire OWF grant is being recouped, whose entire OWF AG is in suspended status, who has no actual OWF check issued because the monthly grant is less than the minimum amount for a check to be issued, or for whom OWF has been authorized but payment has yet to be received. "Placed in an employment and training program" means a county agency may count a person as placed in an employment and training program when the individual either commences a component or is sent an advance notice for noncompliance with a food stamp employment and training requirement. Persons who refuse to work register or who voluntarily quit a job and are sent an advance notice may not be considered placed. "Primary information person (PIP)" means the person who completes a JFS 07200, " Request for Cash, Food Stamp, and Medical Assistance" interactive interview and receives the initial verification checklist. Each AG will have a PIP. The PIP must either reside in the household for whom he or she has completed a JFS 07200/interactive interview or be the authorized representative for at least one AG on the JFS or JFS The county agency will complete the JFS when the system is down for an extended period or a home visit or a telephone interview is necessary. No notices will be mailed to the PIP unless the PIP is also the AG name or the authorized representative to apply. The PIP will be asked to notify other persons in the household that they may be eligible for benefits if the PIP resides with other persons who may be entitled to benefits. The PIP is not held liable for information given on the JFS or during the interactive interview and/or completion of the JFS unless the PIP is also the AG name or the authorized representative to apply for an AG. In the event an interpreter, social worker, etc., accompanies an applicant and aids in the application process, the applicant is entered as the PIP and the assisting person is documented in the running record. The person assisting with the application should also sign the JFS or JFS "Printed copy of information (PCI)" means the hard-copy application generated by CRIS-E based on the answers provided by an applicant/recipient during an interactive interview (II). "Project area" means the county designated by the state as the administrative unit for program operations. "Public assistance (PA)" means any of the following programs authorized by the Social Security Act of 1935, as amended: old-age assistance; TANF funded under

14 5101: Title IV-A of the Social Security Act, aid to the blind; aid to the permanently and totally disabled; and aid to the aged, blind, or disabled. Public assistance also refers to DFA/DMA, except for purposes of the employment and training program and for purposes of resource exclusions in accordance with rule 5101: of the Administrative Code. "Retail food store" means an establishment or recognized department of an establishment, or a house-to-house trade route, whose eligible food sales volume as determined by visual inspection, sales records, or other methods that are customary or reasonable in the retail food industry, is more than fifty per cent staple food items for home preparation and consumption; public or private communal dining facilities and meal delivery services; private nonprofit drug addict or alcoholic treatment and rehabilitation programs; publicly operated community mental health centers for drug addicts and/or alcoholics; public or private nonprofit group living arrangements; or public or private nonprofit shelters for battered women and children; public or private establishments, approved by an appropriate state or local agency, that feeds homeless persons; any private nonprofit cooperative food purchasing venture, including those whose members pay for food prior to receipt of the food; and a farmer's market. "Request for Cash, Food Stamp, and Medical Assistance (JFS 07200)" means the document (formerly referred to as the APPL) utilized by the state of Ohio as a registration device for an applicant for cash, food stamp, and medical assistance. It is also a screening device for determining entitlement to expedited food stamp benefits. It is the beginning step in the application process and is used in conjunction with and preceding the interactive interview. "Shelter for battered women and children" means a public or private nonprofit residential facility that serves battered women and their children. If such a facility serves other individuals, a portion of the facility must be set aside on a long-term basis to serve only battered women and their children. "Social security administration (SSA)" means the federal agency responsible for the administration of benefits for old age, unemployment, or disability. "Special supplemental nutrition program for women infants and children (WIC)" means a nutritional program. "Spouse" means either of two individuals: (1) who would be defined as married to each other under applicable state law; or (2) who are living together and are holding themselves out to the community as husband and wife by representing themselves as such to relatives, friends, neighbors, or tradespeople. "Standard filing unit (SFU)" means the automated process of determining which persons shall comprise an AG based on data entered into the CRIS-E system. "State agency" means the Ohio department of job and family services, including the

15 5101: local offices thereof, which have the responsibility for the administration of the federally aided public assistance programs within the state. "State data exchange (SDX)" means the system used to verify SSI benefits. "Supplemental security income (SSI)" means cash payments made under the authority of Title XVI of the Social Security Act, as amended, to the aged, blind, and disabled; or section 1616(a) of the Social Security Act. "Supplemental security income (SSI) recipient" means a person who receives SSI payments, whose entire SSI grant is being recouped, whose SSI case is in suspended status, or whose SSI has been authorized but payment has yet to be received. "Systematic alien verification for entitlements (SAVE)" means the U.S. citizenship and immigration services (USCIS) program (formerly known as immigration and naturalization service) under the department of homeland security (DHS), whereby county agencies may verify the validity of documents provided by aliens applying for food stamp benefits by obtaining information from a central data file. "Temporary assistance for needy families (TANF)" means a program funded under Title IV-A of the Social Security Act. This is the title used in federal legislation and regulations. Ohio has adopted the title "Ohio works first (OWF)" for its Title IV-A cash program and the prevention, retention, and contingency program (PRC) for its benefits and services program. "Thrifty food plan" means the diet required to feed a family of four persons consisting of a man and a woman twenty through fifty, a child six through eight, and a child nine through eleven years of age, determined in accordance with the secretary of agriculture's calculations. The cost of such diet shall be the basis for uniform allotments for all AGs regardless of their actual composition. In order to develop maximum food stamp allotments, the secretary of agriculture shall make AG size and other adjustments in the thrifty food plan taking into account economies of scale and other adjustments as required by law. "United States department of agriculture (USDA)" means the federal agency responsible for overseeing the FNS. "U. S. citizenship and immigration service (USCIS)" (formerly known as the immigration and naturalization service) is an agency under the department of homeland security (DHS). "Volunteers in service to America (VISTA)" means a federal employment program under Title I of the Domestic Volunteer Service Act of 1973, as amended. "Work program" means (1) a program under the Workforce Investment Act (1998)

16 5101: of 1998 (Public Law Pub. L. No ); (2) a program under section 236 of the Trade Act of 1974 (49 U.S.C. 2296); and (3) a program of employment and training operated or supervised by a state or political subdivision of a state that meets standards approved by the governor of the state, including a program under subsection (d)(4) of the Food Stamp and Nutrition Act. "Workforce Investment Act (WIA)" means the legislation providing funding for job training, adult education, education for youths, employment for dislocated workers, and vocationally rehabilitation. This legislation was formerly administered by the Job Training Partnership Act (JTPA) of (1982). (B) These definitions are not intended to fully explain or to limit by their meaning the scope of any action in the administration of the food stamp program.

17 5101: Effective: 12/18/2008 R.C review dates: 05/01/2010 Certification Date Promulgated Under: Statutory Authority: Rule Amplifies: , , Prior Effective Dates: 6/2/80, 12/1/80, 10/1/81, 7/1/82, 6/1/83, 12/25/83 (Temp.), 2/1/84 (Temp), 2/16/84 (Temp.), 4/1/84, 8/1/84 (Emer.), 10/20/84, 2/15/85 (Emer.), 5/12/85, 8/16/85 (Emer.), 11/1/85 (Emer.), 1/1/86, 6/15/86 (Emer.), 9/13/86, 1/16/87 (Emer.), 4/10/87 (Emer.), 6/22/87, 7/1/87 (Emer.), 9/28/87, 1/1/88 (Emer.), 2/26/88, 3/24/88 (Emer.), 6/18/88, 7/11/89 (Emer.), 9/17/89, 10/1/89 (Emer.), 12/21/89, 1/5/90 (Emer.), 4/7/90, 7/1/91, 2/3/92, 7/1/92, 8/1/92 (Emer.), 10/30/92, 6/1/93, 8/1/94, 9/1/94 (Emer.), 10/17/94, 12/1/94 (Emer.), 1/1/95, 5/1/95, 8/1/95 (Emer.), 10/13/95, 2/1/96, 9/22/96 (Emer.), 12/21/96, 4/1/97 (Emer.), 6/6/97, 10/1/97 (Emer.), 12/15/97, 7/15/99, 10/1/01 (Emer.), 05/02/05, 10/1/08 (Emer.)

18 5101: Food stamps: exempt resources. In determining the resources of an assistance group (AG), only those resources specified in this rule and rule 5101: of the Administrative Code shall be exempted. (A) Home and surrounding property The home and surrounding property that is not separated from the home by intervening property owned by others is considered part of the home which is an exempt resource. Public rights of way, such as roads which run through the surrounding property and separate it from the home, will not affect the exemption of the property. The home and surrounding property shall remain exempt when temporarily unoccupied for reasons of employment, training for future employment, illness, or uninhabitability caused by casualty or natural disaster if the AG intends to return. If the AG does not already own a home, the value of a lot purchased to build a permanent home on is excluded. If the new permanent home is partially completed, its value is also excluded. When a portion of the surrounding property (as defined in this paragraph) is income-producing or potentially income-producing (such as farm land, a vacant house or half of a double house), the entire value of the property is exempt, and the income-producing test defined in paragraph (D) of this rule does not apply. However, any income received from such property must be considered. (B) Household and personal goods, life insurance, pension funds, burial plot, revocable funeral agreement Household goods, personal effects, the cash value of life insurance policies, one burial plot per AG member, and the value of one bona fide (revocable) funeral agreement per AG member, provided that the agreement does not exceed one thousand five hundred dollars in equity value. In the event that the equity value in such a funeral agreement exceeds one thousand five hundred dollars, the equity value above one thousand five hundred dollars is counted. The cash value of pension plans or funds and retirement accounts shall be excluded, including public employees retirement system (PERS) and Ohio public employees deferred compensation program funds as long as the funds remain in PERS or Ohio deferred compensation, respectively, individual retirement accounts (IRAs), Keogh plans that involve no contractual obligation with anyone who is not a household member and simplified employer pension (SEP) 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. in accordance with paragraph (A) of rule 5101: of the Administrative Code. (C) Vehicles Vehicles shall be totally excluded in accordance with Ohio's temporary assistance for needy families (TANF) plan as permitted by the Agriculture, Rural

19 5101: Development, Food and Drug Administration and Related Agencies Appropriations Act of 2001, (PL Pub. L. No , (10/2000). (D) Income-producing property (1) Definitions of "income-producing property" (a) Property which annually produces income consistent with its fair market value, even if only used on a seasonal basis: such property shall include rental homes and vacation homes (if income producing); (b) Property, such as farm land, which is essential to the employment or the self-employment of a household member; (c) Work-related equipment, such as the tools of a tradesman or the machinery of a farmer, which is essential to the employment or self-employment of a household member; (d) Installment contracts for the sale of land or buildings if the contract or agreement is producing income consistent with its fair market value. The value of the property sold under contract or held as security in exchange for a purchase price consistent with the fair market value of that property is also excluded; (e) Property essential to the self-employment of an AG member engaged in farming shall continue to be excluded for one year from the date the AG member terminates the member's self-employment from farming. (2) Determining fair market value The county agency shall use the following guidelines in determining the fair market value of property: (a) If it is questionable that property is producing income consistent with its fair market value, the county agency may contact local realtors, local tax assessors, the small business administration, farmer's home administration, or other similar sources to determine the prevailing rate of return, e.g., square foot rental for similar usage of real property in the area. (b) If the county agency determines that the property is not producing income

20 5101: consistent with its fair market value (for instance, the property is being leased for a token payment), the fair market value of such property less encumbrances is counted as a resource. However, if the property was leased for a return that was comparable to other property in the area leased for similar purposes, it is considered as producing income consistent with its fair market value and is not considered a resource. (c) All findings shall be thoroughly documented in the case file as required in paragraph (I) of rule 5101: of the Administrative Code. (d) Property exempt as essential to employment need not be producing income consistent with its fair market value. For instance, the land of a farmer is essential to the farmer's employment; a good or bad crop year would not affect the exemption of such property as a resource. (E) Inaccessible resources Resources are exempted if the cash value is not accessible to the AG such as, but not limited to, irrevocable trust funds, security deposits on rental property or utilities, property in probate, and real property which the AG is making a good faith effort to sell at a reasonable price and which has not been sold. The county agency may verify that the property is for sale and that the AG has not declined a reasonable offer. Verification may be obtained through a collateral contact or documentation, such as an advertisement for public sale in a newspaper of general circulation or a listing with a real estate broker. Resources shall be considered inaccessible to the AG as long as they were truly unknown to the AG. At the point the AG discovers or is made aware of the resources that are legally available to the AG, the resources must be counted in determining the AG's eligibility for food stamps. Any funds transferred to a trust, and the income produced by that trust, shall be considered inaccessible to the AG if: (1) The trust is under the control and management of an institution, corporation, or organization (the trustee) which is not under the direction or ownership of any AG member, or an individual appointed by the court who has court-imposed limitations placed on his or her use of the funds that meet the requirements of this paragraph; (2) The funds held in irrevocable trust are either: established from the AG's own funds, if the trustee uses the funds solely to make investments on behalf of the trust or to pay the educational or medical expenses of any person named by the AG creating the trust; or established from non AG funds by a non AG member;

21 5101: (3) The trust investments do not directly involve or assist any business or corporation under the control or influence of an AG member; (4) The trust arrangement will not likely cease during the certification period; and (5) No AG member has the power to revoke the trust arrangements or change the name of the beneficiary during the certification period. Sections and of the Revised Code allow prepaid (prearranged or pre-need) burial contracts to establish burial accounts as irrevocable trust funds. A "prepaid burial contract" is an agreement among the recipient, the financial institution, and the funeral director. The agreement directs the financial institution to deliver to the funeral director, upon the recipient's death, the funds from a designated payable-on-death (POD) account which is on deposit at the financial institution. Since prepaid burial contracts can establish either revocable or irrevocable trust funds, it will be necessary for the county agency to evaluate prepaid burial contracts against the criteria of this rule to determine if the funds are inaccessible resources. (F) Other exclusions from resources (1) Earmarked resources Any governmental payments which are designated for the restoration of the home which has been damaged in a disaster, if the AG is subject to a legal sanction if the funds are not used as intended. Examples of payments are those made by the department of housing and urban development (HUD) through the individual and family grant program and disaster loans or grants made by the small business administration. (2) Prorated income Resources, such as those of self-employed persons, which have been prorated and counted as income. (3) Indian lands Indian lands held jointly with the tribe, or land that can be sold only with the approval of the department of interior's bureau of Indian affairs. (4) Energy assistance

22 5101: Energy assistance payments or allowances excluded as income under rule 5101: of the Administrative Code. (5) Non-liquid assets Non-liquid assets against which a lien has been placed as a result of taking out a business loan and the AG is prohibited by the security or lien agreement with the lien holder (creditor) from selling the assets. (6) Property directly related to use and maintenance of vehicles Property, real or personal, to the extent that it is directly related to the maintenance or use of an income-producing vehicle. Only that portion of real property determined necessary for maintenance or for use of the vehicle is excludable under this rule. For example, an AG that owns a produce truck to earn its livelihood may be prohibited from parking the truck in a residential area. The AG may own a one-hundred-acre field and use a quarter-acre of the field to park and/or service the truck. Only the value of the quarter-acre would be excludable under this rule, not the entire one-hundred-acre field. (7) Insignificant return of funds This paragraph does not apply to financial instruments such as stocks, bonds, and negotiable financial instruments. A non-liquid resource, that as a practical matter, the AG is unable to sell for any significant return because the costs of selling the AG's interest would be relatively great shall be excluded as a resource. A resource shall be so identified if its sale or other disposition is unlikely to produce any significant amount of funds for the support of the AG or the cost of selling the resource would be relatively great. The county agency may require verification of the value of a resource to be excluded if the information provided by the AG is questionable. (a) In order to identify these kinds of resources, the following definitions shall be used: (i) "Significant return" means any return, after estimated costs of sale or disposition, and taking into account the ownership interest of the AG, that the county agency determines are more than fifteen hundred dollars; and (ii) Any "significant amount of funds" means funds amounting to more than fifteen hundred dollars.

23 5101: (b) Examples of resources that can be affected by this paragraph are: (i) A non-liquid resource with multiple owners; (ii) Real estate that requires improvements (such as razing an unusable building to make it suitable for sale); (iii) Real estate with liens and encumbrances in amounts large enough to realize no significant return as defined in paragraph (F)(7)(a) of this rule; and (iv) Real estate which, after the real estate agent's fee and other costs associated with the sale of property, results in less than a significant amount of funds, as defined in paragraph (F)(7)(a) of this rule. (c) An AG shall not subdivide a single resource solely to obtain an exclusion under paragraph (F)(7) of this rule. Any subdividing of property solely to obtain an exclusion under paragraph (F)(7) of this rule shall be subject to the transfer of resources provisions of rule 5101: of the Administrative Code. (8) Individual development accounts (IDAs) IDAs are excluded regardless of their funding source (G) Handling excluded funds Excluded funds that are kept in a separate account and that are not commingled in an account with other non-excluded funds shall retain their resource exclusion for an unlimited period of time. The resources of self-employment AGs that are excluded and are commingled in an account with non-excluded funds shall retain their exclusion for the period of time over which they have been prorated as income. All other excluded monies that are commingled in an account with non-excluded funds shall retain their exemption for six months from the date of commingling. After six months from the date of commingling, all funds in the commingled account shall be counted as a resource.

24 5101: Effective: 12/18/2008 R.C review dates: 06/01/2013 Certification Date Promulgated Under: Statutory Authority: Rule Amplifies: , , Prior Effective Dates: 6/2/80, 12/1/80, 4/1/81, 6/18/81, 1/22/82, 2/12/82, 7/1/82, 9/27/82, 6/1/83, 6/10/83, 8/1/83, 11/1/83 (Temp.), 12/22/83, 12/25/83 (Temp.), 2/1/84 (Temp.), 3/1/84, 3/2/84, 8/16/85 (Emer.), 11/1/85 (Emer.), 1/1/86, 4/11/86 (Emer.), 7/1/86, 8/20/86 (Emer.), 11/15/86, 8/1/87 (Emer.), 10/25/87, 10/1/88 (Emer.), 11/18/88, 1/5/90 (Emer.), 3/22/90, 2/17/91, 5/1/91 (Emer.), 6/1/91, 12/1/91, 7/1/92, 8/1/92 (Emer.), 10/30/92, 8/1/93, 9/1/94, 5/1/95, 2/1/96, 7/1/96, 10/1/96 (Emer.), 12/5/96, 4/1/97 (Emer.), 6/6/97, 8/1/98, 7/15/99, 10/11/02 (Emer.), 12/26/02, 6/1/03(Emer.), 6/16/03, 6/12/08, 10/1/08 (Emer.)

25 5101: Food stamps: resources excluded by law. Resources are exempted if excluded for food stamp purposes by express provision of federal statute or court decision. Where an exclusion applies because of use of a resource by or for an assistance group (AG) member, the exclusion shall also apply when the resource is being used by or for an ineligible alien or disqualified person whose resources are being counted as part of the AG's resources. For example, work-related equipment essential to the employment of an ineligible alien or disqualified person shall be excluded in accordance with paragraph (D) of rule 5101: of the Administrative Code, as shall one burial plot per ineligible alien or disqualified member in accordance with paragraph (B) of rule 5101: of the Administrative Code. The following is a listing of some of the resources excluded by federal statute. The listing is divided into general resource exclusions and exclusions applicable to resources of American Indians or Alaska Natives. (A) General exclusions (1) Assistance provided to children under the school lunch program, the summer food service program for children, the commodity distribution program and child and adult care food program, (PL Pub. L. No , (6/1946) section 12(e) of the National School Lunch Act of 1946, as amended by section 9(d) of PL Pub. L. No , (10/1975). (2) Assistance provided to children under the special milk program, special supplemental food program for women, infants, and children (WIC) and the school breakfast program, (PL Pub. L. No , (10/1966) of the Child Nutrition Act of 1966, section 11(b).). (3) Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970, (PL Pub L. No , (02/1971) section 216.). (4) Benefits received from the special supplemental food program for women, infants and children (WIC), (PL Pub. L. No , (1972) section 9.). (5) Payments received under section 321(d), the Disaster Relief Act of 1974, (PL Pub. L. No , (05/1974), as amended by section 105(i), the Disaster Relief and Emergency Assistance Amendments of 1988, November 23, 1988, (PL Pub. L. No , (11/1988). Payments precipitated by an emergency or major disaster as defined in this act, as amended, are not counted as a resource for food stamp purposes. This exclusion applies to federal assistance provided to persons directly affected and to comparable disaster assistance provided by states, local governments, and disaster assistance organizations. A "major disaster" is any natural catastrophe such as a hurricane or drought, or, regardless of cause, any fire, flood, or explosion, which the president of