COMMENT DUE DATE:
March 19, 2015
DATE:
February 11, 2015
Laura Brown, AFS (405) 521-4396
Dena Thayer, OIRP Programs Administrator (405) 521-4326
RE:
APA WF 14-08
The proposed policy is Permanent . This proposal is not subject to Administrative Procedures Act
SUBJECT:CHAPTER 10. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
Subchapter 1. General Provisions
OAC 340:10-1-3 [AMENDED]
Subchapter 2. Temporary Assistance for Needy Families (TANF) Work Program
OAC 340:10-2-4 [AMENDED]
OAC 340:10-2-8 [AMENDED]
Subchapter 3. Conditions of Eligibility - Need
Part 3. Income
OAC 340:10-3-26 [AMENDED]
OAC 340:10-3-31.1 [NEW]
Part 5. Assistance Payments
OAC 340:10-3-56 through 340:10-3-57 [AMENDED]
OAC 340:10-3-59 [AMENDED]
Suchapter 10. Conditions of Eligibility - Deprivation
OAC 340:10-10-4 [AMENDED]
OAC 340:10-10-7 [AMENDED]
(Reference APA WF 14-01, 14-08)
SUMMARY:The proposed revisions to Chapter 10 Subchapter 1 amend the rules to:(1) add federal regulations, state statutes, and Oklahoma Department of Human Services (DHS) rules governing the Temporary Assistance for Needy Families (TANF) program; (2) add debit or electronic benefit transfer (EBT) card transaction restrictions to prevent use of cards containing federal or state funds in certain businesses; (3) define prohibited businesses and EBT card transaction; (4) add methods DHS uses to inform applicants and recipients of EBT card transaction restrictions; (5) add policy references for recipient benefit reduction penalties and debit card and direct deposit procedures; (6) update terminology; and (7) add clarifying information regarding appeal rights.
The proposed revisions to Chapter 10 Subchapter 2 amend the rules to:(1) clarify that a Subsidized Employment Program (SEP) position must include full time employment for a minimum of 35 hours per week; (2) simplify language describing SEP procedures and Temporary Assistance for Needy Families (TANF) work activity payments; (3) remove completion of an unnecessary form; (4) clarify the need to complete a child care application when a TANF client begins active participation in TANF Work activities; (5) add achievement bonuses for recipients that complete certain TANF Work activities; and (6) update terminology.
The proposed revisions to Chapter 10 Subchapter 3 amend the rules to:(1) clarify how a TANF client is notified when required to pursue potential income; (2) simplify and clarify general income provisions, household composition rules concerning who must, may, and may not be included in the TANF benefit, and temporary absence provisions; (3) add a requirement to exclude an adult parent or needy caretaker permanently deemed ineligible due to use of TANF cash assistance in a prohibited location and to allow the child living with the adult to receive TANF benefits to comply with state statute; (4) add requirements for a new earned income disregard available to certain TANF recipients; (5) separate information regarding denials and closures based on net income as certain TANF recipients may be eligible for an earned income disregard; (6) require the Adult and Family Services (AFS) worker to determine whether a TANF recipient is eligible for an earned income disregard prior to closing the TANF benefit; (7) change the name of a policy section to more closely match other programs; and (8) update terminology.The proposed revisions also amends the rules to:(1) update and clarify rules regarding concurrent receipt of TANF and another form of public assistance; (2) add benefit reduction penalties resulting from use of the TANF benefit in a prohibited business; (3) add clarifying language regarding the parent or needy caretaker's eligibility when Child Welfare Services (CWS) removes a child from the home with an expectation of returning the child within four months; (4) update terminology including the removal of references to the Commission for Human Services; (5) add clarifying language regarding availability of funds, minimum TANF payments, and overpayments; and (6) add policy references regarding payment to minors, TANF benefit issuance methods, and debit or EBT card transaction restrictions.
The proposed revisions to Chapter 10 Subchapter 10 amend the rules to:(1) remove the requirement for AFS staff to complete Child Support Services (CSS) forms as it is a duplication of effort; (2) simplify and clarify AFS staff responsibility in determining deprivation based on absence and paternity establishment; (3) remove outdated information regarding signature approval; (4) clarify the AFS worker's responsibility regarding retained support payments; (5) remove information regarding the non-cooperation determination when the client retains support and whether to reimburse the client when CSS receives excess support because these are CSS, not AFS, staff responsibilities; (6) clarify the AFS worker's responsibility to evaluate whether support is expected to continue prior to closing the TANF benefit when the support exceeds the TANF cash assistance payment; and (7) update terminology.
PERMANENT APPROVAL:Permanent rulemaking is requested.
LEGAL AUTHORITY:Director of Human Services; Section 162 of Title 56 of the Oklahoma Statues (O.S. 56 § 162); 56 O.S. §§ 230.50, 230.52, 241.4, Part 261.10 of Title 45 of the Code of Federal Regulations; and Section 401 and 408 of the Social Security Act [Section 601 and 608 of Title 42 of the United States Code]. Public Law 112-96 § 4004 (42 U.S.C. § 608(a)(12)); 7 U.S.C. § 2012; and SB 1706 effective November 1, 2014.
Rule Impact Statement
To:Programs administrator
Office of Intergovernmental Relations and Policy
From:Jim Struby, Director
Adult and Family Services
Date:January 16, 2015
Re:CHAPTER 10. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
Subchapter 1. General Provisions
OAC 340:10-1-3 [AMENDED]
Subchapter 3. Conditions of Eligibility - Need
Part 5. Assistance Payments
OAC 340:10-3-57 [AMENDED]
OAC 340:10-3-59 [AMENDED]
(Reference WF 14-01)
Contact:Laura Brown 405-521-4396
A.Brief description of the purpose of the proposed rule:
The proposed revisions to Chapter 10 Subchapter 1 amend the rules to:(1) add federal regulations, state statutes, and Oklahoma Department of Human Services (DHS) rules governing the Temporary Assistance for Needy Families (TANF) program; (2) add debit or electronic benefit transfer (EBT) card transaction restrictions to prevent use of cards containing federal or state funds in certain businesses per Section 4004 of the Middle Class Tax Relief and Job Creation Act of 2012, Section 608(a)(12) of Title 42 of the United States Code (42 U.S.C § 608(a)(12)), and Section 241.4 of Title 56 of Oklahoma Statutes (56 O.S. § 241.4); (3) define prohibited businesses and EBT card transaction; (4) add methods the DHS uses to inform applicants and recipients of EBT card transaction restrictions; (5) add policy references for recipient benefit reduction penalties and debit card and direct deposit procedures; (6) update terminology; and (7) add clarifying information regarding appeal rights.
The proposed revisions to Chapter 10 Subchapter 3 amends the rules to:(1) update and clarify rules regarding concurrent receipt of TANF and another form of public assistance; (2) add benefit reduction penalties resulting from use of the TANF benefit in a prohibited business per 42 U.S.C. § 608(a)(12) and 56 O.S. § 241.4; (3) add clarifying language regarding the parent or needy caretaker's eligibility when Child Welfare Services (CWS) removes a child from the home with an expectation of returning the child within four months; (4) update terminology including the removal of references to the Commission for Human Services; (5) add clarifying language regarding availability of funds, minimum TANF payments, and overpayments; and (6) add policy references regarding payment to minors, TANF benefit issuance methods, and debit or EBT card transaction restrictions.
Strategic Plan Impact.
The proposed rules achieve the DHS goals by supporting the DHS mission to maintain a culture of accountability, including fiscal integrity, at all DHS levels.
Substantive changes.
Oklahoma Administrative Code (OAC) 340:10-1-3 is amended to:(1) add federal regulations, state statutes, and DHS rules governing the TANF program; (2) add debit or EBT card transaction restrictions to prevent use of cards containing federal or state funds in certain businesses; (3) define prohibited businesses and EBT card transaction; (4) add methods DHS uses to inform applicants and recipients of EBT card transaction restrictions; (5) add policy references for recipient benefit reduction penalties and debit card and direct deposit procedures; (6) update terminology; and (7) add clarifying information regarding appeal rights.
OAC 340:10-3-57 is amended to:(1) update and clarify rules regarding concurrent receipt of TANF and another form of public assistance; (2) add a benefit reduction penalty as a result of using the TANF benefit in a prohibited businesses; (3) update terminology; and (4) add clarifying language regarding the parent or needy caretaker's eligibility when CWS removes a child from the home with an expectation of returning the child within four months.
OAC 340:10-3-59 is amended to:(1) update terminology including the removal of references to the DHS Commission; (2) add clarifying language regarding availability of funds, minimum TANF payments, and overpayments; and (3) add policy references regarding payment to minors, TANF benefit issuance methods, and debit or EBT card transaction restrictions.
Reasons.The proposed amendments are made to comply with 42 U.S.C. § 608(a)(12) that mandates states maintain policies and practices as necessary to prevent TANF cash assistance from being used in any EBT transaction in prohibited businesses and include this information in the TANF State Plan.The components of the Oklahoma TANF State Plan are contained in Chapter 10 and Chapter 65 rules.The benefit reduction penalty is part of DHS policies and practices to prevent TANF cash assistance from use in prohibited businesses.The penalty coincides with Senate Bill (SB) 1706, effective November 1, 2014.Other amendments made in the affected Sections update terminology and add clarity to the rules.
Repercussions.
Per 42 U.S.C § 608(a)(12), the State's TANF grant may be reduced by 5 percent if the state fails to implement and maintain required policies and practices.
Legal authority.Director of Human Services; O.S. 56 § 162; Public Law 112-96 § 4004 (42 U.S.C. § 608(a)(12)); 7 U.S.C. § 2012; 56 O.S. § 241.4; and SB 1706 effective November 1, 2014.
Permanent rulemaking approval is requested. Permanent rulemaking approval is requested.
B.A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities:The classes of persons most likely to be affected by the proposed rules are TANF applicants and recipients and DHS staff.The affected classes of persons bear no costs associated with implementation of the rules.
C.A description of the classes of persons who will benefit from the proposed rule:The classes of persons who may benefit from the proposed rule are taxpayers opposed to government benefits being used in liquor stores, casinos, gaming establishments, retail establishments providing adult oriented entertainment, or retail establishments whose primary business is selling tobacco products and TANF children if the client has been using benefits in restricted places and stops doing so due to the proposed rule changes.
D.A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each fee change:If TANF recipients are penalized for using benefits in prohibited locations, TANF benefits reduce.A reduction in the benefit would have an economic impact on the assistance unit.There are no fee changes associated with the revised rules.
E.The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency:The probable DHS cost includes the cost of printing and distributing the rules, estimated to be less than $20 and mailing costs associated with client notification.Failure to comply with federal law may result in a 5 percent reduction in TANF funding.
F.A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule:The proposed rules do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivision be required in implementation or enforcement of the rules.
G.A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act:Small businesses, such as casinos and liquor stores, may experience minimal revenue loss if TANF recipients used DHS issued funds and stop doing so.
H.An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rule:There are no less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rules.
I.A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: Implementation of the proposed rules will have no effect on public health, safety, or environment risks if the adult recipient has not spent TANF funds in the designated prohibited businesses.Implementation of the proposed rules may reduce the risks to the public health, safety, and environment for children included in the TANF cash assistance benefit if the adult recipient spends the TANF benefit for basic needs instead of for products or services in prohibited businesses.
J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented:Failing to approve the proposed rules may reduce TANF recipients' and DHS staff awareness of the new restrictions on use of DHS issued funds.This may lead recipients to continue using funds in prohibited locations, thereby continuing to put themselves and their families at greater financial insecurity.In addition, federal TANF funding may be reduced resulting in a reduction of benefits and services to TANF clients and other citizens served by programs using TANF funds, such as Child Welfare Services and the Child Care Subsidy Program.
K.The date the rule impact statement was prepared and, if modified, the date modified: Prepared 4/8/2014; modified 4/22/2014; modified January 16, 2015.
Rule Impact Statement
To:Programs administrator
Office of Intergovernmental Relations and Policy
From:Jim Struby, Director
Adult and Family Services
Date:January 16, 2015
Re:CHAPTER 10. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
Subchapter 2. Temporary Assistance for Needy Families (TANF) Work Program
OAC 340:10-2-4 [AMENDED]
OAC 340:10-2-8 [AMENDED]
Subchapter 3. Conditions of Eligibility - Need
Part 3. Income
OAC 340:10-3-26 [AMENDED]
OAC 340:10-3-31.1 [NEW]
Part 5. Assistance Payments
OAC 340:10-3-56 [AMENDED]
Suchapter 10. Conditions of Eligibility - Deprivation
OAC 340:10-10-4 [AMENDED]
OAC 340:10-10-7 [AMENDED]
(Reference APA WF 14-08)
Contact: Laura Brown 405-521-4396
A.Brief description of the purpose of the proposed rule:
The proposed revisions to Chapter 10 Subchapter 2 amend the rules to:(1) clarify that a Subsidized Employment Program (SEP) position must include full time employment for a minimum of 35 hours per week; (2) simplify language describing SEP procedures and Temporary Assistance for Needy Families (TANF) work activity payments; (3) remove completion of an unnecessary form; (4) clarify the need to complete a child care application when a TANF client begins active participation in TANF Work activities; (5) add achievement bonuses for recipients that complete certain TANF Work activities; and (6) update terminology.
The proposed revisions to Chapter 10 Subchapter 3 amend the rules to:(1) clarify how a TANF client is notified when required to pursue potential income; (2) simplify and clarify general income provisions, household composition rules concerning who must, may, and may not be included in the TANF benefit, and temporary absence provisions; (3) add a requirement to exclude an adult parent or needy caretaker permanently deemed ineligible due to use of TANF cash assistance in a prohibited location and to allow the child living with the adult to receive TANF benefits to comply with state statute; (4) add requirements for a new earned income disregard available to certain TANF recipients; (5) separate information regarding denials and closures based on net income as certain TANF recipients may be eligible for an earned income disregard; (6) require the Adult and Family Services (AFS) worker to determine whether a TANF recipient is eligible for an earned income disregard prior to closing the TANF benefit; (7) change the name of a policy section to more closely match other programs; and (8) update terminology.
The proposed revisions to Chapter 10 Subchapter 10 amend the rules to:(1) remove the requirement for AFS staff to complete Child Support Services (CSS) forms as it is a duplication of effort; (2) simplify and clarify AFS staff responsibility in determining deprivation based on absence and paternity establishment; (3) remove outdated information regarding signature approval; (4) clarify the AFS worker's responsibility regarding retained support payments; (5) remove information regarding the non-cooperation determination when the client retains support and whether to reimburse the client when CSS receives excess support because these are CSS, not AFS, staff responsibilities; (6) clarify the AFS worker's responsibility to evaluate whether support is expected to continue prior to closing the TANF benefit when the support exceeds the TANF cash assistance payment; and (7) update terminology.
Strategic Plan Impact.The proposed rules achieve the Oklahoma Department of Human Services (DHS) goals by supporting the DHS mission to administer public resources in a fiscally responsible and ethical manner.
Substantive changes.
OAC 340:10-2-4 is revised to:(1) clarify that a SEP position must include full time employment for a minimum of 35 hours per week; (2) simplify language describing SEP and TANF Work activity payments; and (3) update terminology.
OAC 340:10-2-8 is revised to:(1) simplify language describing TANF Work activity payments; (2) remove completion of an unnecessary form; (3) clarify the need to complete a child care application when a TANF client begins active participation in TANF Work activities; (4) add achievement bonuses for recipients that complete a high school diploma, general educational development (GED) certificate, or career readiness certificate (CRC); and (5) update terminology.
OAC 340:10-3-26 is revised to:(1) clarify how a TANF client is notified when required to pursue potential income; (2) simplify and clarify general income provisions; (3) separate information regarding denials and closures based on net income as certain TANF recipients may be eligible for an earned income disregard; (4) require the AFS worker to determine whether a TANF recipient is eligible for an earned income disregard prior to closing the TANF benefit; and (5) update terminology.
OAC 340:10-3-31.1 is created to add requirements for a new earned income disregard available to certain TANF recipients.
OAC 340:10-3-56 is revised to:(1) change the name of a policy section to more closely match other programs; (2) simplify and clarify household composition rules concerning who must, may, and may not be included in the TANF benefit and temporary absence provisions; (3) add a requirement to exclude an adult parent or needy caretaker permanently deemed ineligible due to use of TANF cash assistance in a prohibited location and to allow the child living with the adult to receive TANF benefits to comply with state statute; and (4) update terminology.
OAC 340:10-10-4 is revised to:(1) remove the requirement for AFS staff to complete CSS forms as it is a duplication of effort; (2) simplify and clarify AFS staff responsibility in determining deprivation based on absence and paternity establishment; and (3) update terminology.
OAC 340:10-10-7 is revised to:(1) remove requirement for AFS staff to complete CSS forms as it is a duplication of effort; (2) remove outdated information regarding signature approval; (3) clarify the AFS worker's responsibility regarding retained support payments; (4) remove information regarding the non-cooperation determination when the client retains support and whether to reimburse the client when CSS receives excess support because these are CSS,not AFS, staff responsibilities; (5) clarify the AFS worker's responsibility to evaluate whether support is expected to continue prior to closing the TANF benefit when the support exceeds the TANF cash assistance payment; and (6) update terminology.
Reasons.The proposed revisions provide clear, concise, and up-to-date rules to facilitate the accurate delivery of benefits and services to persons who are in need.
The proposed revision to begin paying achievement bonuses to TANF recipients that complete high school, a GED, or CRC certificate is implemented as an incentive for recipients to complete these activities as they are crucial to obtaining sustainable employment.This revision aligns with the goals of the Governor’s workforce efforts and a performance dashboard measure for Statewide Program Objectives.
The proposed revision adding an earned income disregard for certain TANF recipients is implemented to increase the recipient's ability to remain employed by being given time to stabilize their family situation and pay for initial work related costs before the TANF benefit closes.This revision aligns with the goals of the Governor’s workforce efforts and a performance dashboard measure for Statewide Program Objectives.
The proposed revision to add a requirement to exclude an adult parent or needy caretaker permanently deemed ineligible due to use of TANF cash assistance in a prohibited location to comply with changes made to Section 241.4 of Title 56 of Oklahoma Statutes [56 O.S. §§ 241.4] effective November 1, 2014.
The proposed revisions concerning deprivation are clarified to reflect the current process and avoid duplication of effort between AFS and Child Support Services staff.
Repercussions.The proposed revisions are intended to improve the accuracy of benefits distribution.Achievement bonuses and earned income disregard is intended to incentivize education and training completion to improve sustained employment and financial independence of recipients.Failure to add the requirement to exclude an adult parent or needy caretaker permanently deemed ineligible due to use of TANF cash assistance in a prohibited location complies with 56 O.S. §§ 241.4.
Legal authority.Director of Human Services; Section 162 of Title 56 of the Oklahoma Statues (O.S. 56 § 162); 56 O.S. §§ 230.50, 230.52, 241.4, Part 261.10 of Title 45 of the Code of Federal Regulations; and Section 401 and 408 of the Social Security Act [Section 601 and 608 of Title 42 of the United States Code].
Permanent rulemaking approval is requested.
B.A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities:The classes of persons most likely to be affected by the proposed rules are TANF applicants and recipients and DHS staff.The affected classes of persons will bear no costs associated with implementation of the rules.
C.A description of the classes of persons who will benefit from the proposed rule:The classes of persons who will benefit are TANF applicants and recipients and DHS staff.
D.A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each fee change:There are no fee changes associated with the revised rules.
E.The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency:
The revised rules will result in enhanced delivery of services to positively impact TANF applicants and recipients. The probable DHS cost of printing and distributing the rules is estimated to be less than $20.
The below projected costs are included in the current TANF budget with no additional state appropriation necessary.
The new earned income disregard rule that allows certain TANF recipients to remain eligible for TANF for three additional months after obtaining employment, is estimated to cost $200,000 per month ($2,400,000 annually). The cost was estimated using data compiled from TANF earned income closures effective November 2013.
The TANF achievement bonus is estimated to cost $4167 per month ($50,000 annually). The cost was estimated using data compiled from TANF recipients completing one of these goals for the semester ending in May 2013 and the semester starting in August 2013.
F.A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule:The proposed rules do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivisions be required in implementation or enforcement of the rules.
G.A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act:There are no anticipated adverse effects on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act.
H.An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rule: There are no less costly or non-regulatory methods or less intrusive methods for achieving the purpose of the proposed rules.
I.A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: The implementation of the proposed rules are anticipated to increase family safety and stability for TANF recipients eligible for an achievement bonus or the earned income disregard if these rule changes help them find sustainable employment that helps lift them out of poverty.These efforts are aimed at ensuring completion of proven career progression and opportunities for secure employment for TANF recipients.
J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented:The proposed revisions are intended to improve the accuracy of benefits distribution.Achievement bonuses and earned income disregard is intended to incentivize education and training completion to improve sustained employment and financial independence of recipients.Failure to add the requirement to exclude an adult parent or needy caretaker permanently deemed ineligible due to use of TANF cash assistance in a prohibited location complies with 56 O.S. §§ 241.4.
K.The date the rule impact statement was prepared and, if modified, the date modified: Prepared 5/19/2014; modified January 16, 2015.
