PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Amendment of sections 351.1(b)(2)(iv), 352.17(d), 352.19(b)(3), 366.3 and 366.4(g); repeal of section 351.24; and addition of section 366.11 to Title 18 NYCRR.
Statutory authority:
Social Services Law, sections 20(3)(d), 34(3)(f), 131(1), 131-t, 131-z(9) and 355(3)
Subject:
Public Assistance.
Purpose:
Quarterly reporting is being eliminated as a district optional requirement for the majority of public assistance recipients, but it remains a mandatory requirement for child assistance program participants.
Text of proposed rule:
Subparagraph (iv) of paragraph (2) of subdivision (b) of section 351.1 is amended to read as follows:
(iv) make a timely report to the district of any changes in his or her needs and resources. A report will be considered timely if made within 10 days of the changes except as provided in section 352.30(d)(4) of this Title. A report to a social services district concerning changes in income must be made timely. Such a report will be considered timely if made within the time frames specified in section [351.24(d)] 352.19(b) of this [Part] Title;
Section 351.24 is repealed and reserved.
Subdivision (d) of section 352.17 is amended to read as follows:
(d) Average monthly earned income is applied against need to determine the grant amount for each calendar month of [a payment quarter] an authorization period. The amount of average earned income applied must be recalculated at recertification [and when a quarterly report is received by the agency]. No other adjustments will be made, except as provided in section 352.31(c) of this Part, unless one of the following occurs:
Paragraph (3) of subdivision (b) of section 352.19 is amended to read as follows:
(3) failed without good cause to make a timely report of new or increased income. A report of income is considered timely if a recipient reports the receipt of new or increased income no later than 10 days after the receipt of the income. A report of such income made more than 10 days after receipt is not timely, but a report made more than 10 days prior to the end of the month is timely with respect to the next month and any succeeding month.
Section 366.3 is amended to read as follows:
(a) The following general provisions apply:
[(a)] (1) Families eligible for benefits under CAP are not eligible to receive assistance through Refugee Cash Assistance (RCA), FA, or SNA, unless otherwise specified in this Part.
[(b)] (2) Within the same household, family members must either all receive CAP or all receive non-CAP public assistance (RCA, FA, or SNA).
[(c)] (3) Non-CAP public assistance recipients can only be transferred from the non-CAP PA program to CAP on the first day of a month.
[(d)] (4) CAP participants will be eligible for medical assistance under Part 360 of this Title only to the extent that the participants meet the financial and categorical requirements for medical assistance.
[(e)] (5) When used in this Part, the phrase "poverty level" will refer to the poverty guidelines issued by the United States Bureau of the Census.
(b) The following definitions are used in this Part:
(1) "Authorization period" means the twelve-month period for which CAP benefits are authorized following a recertification pursuant to section 366.4(f) of this Part. Each authorization period is divided into four payment quarters.
(2) "Payment quarter" means the three-month period after the process month.
(3) "Process month" means the month in which information contained in a quarterly report or obtained during a recertification is reviewed. With respect to information obtained from a quarterly report, process months are the third, sixth and ninth month of an authorization period. With respect to information obtained at recertification, the process month is the last month of the authorization period.
(4) "Quarterly report" means a form upon which a participant reports income and household circumstances for that three-month period.
(5) "Quarterly reporting" refers to a procedure for obtaining information concerning the incomes and circumstances of certain CAP participants through annual recertifications and mailed reports sent in the second, fifth and eighth month of a CAP participant's authorization period. Quarterly reporting is a modified system of monthly reporting in which written reports are made at three- month intervals between annual recertification interviews and CAP grants are calculated prospectively.
(6) "Report quarter" means the three-month period covered by a quarterly report.
(7) "Timely Report" means a report made no later than 10 days after a change affecting eligibility occurs.
Subdivision (g) of section 366.4 is amended to read as follows:
(g) The quarterly reporting requirements of section [351.24] 366.11 of this [Title] Part will apply to CAP participants [, except that each family participating in CAP will receive and be required to complete three quarterly reports between each annual recertification].
A new section 366.11 is added to read as follows:
§ 366.11 Quarterly Reporting.
(a) All CAP households must submit a quarterly report form to the social services district in the three process months of an authorization period.
(b) The quarterly report form must contain the following information:
(1) periodic income and dates received, household composition and other circumstances relevant in determining the amount of assistance; and
(2) any changes in income, household composition or other relevant circumstances affecting eligibility for or the amount of benefits which the household expects to occur in the current or future months.
(c) The quarterly reporting process does not relieve participants of their responsibility to report changes that impact eligibility in a timely manner. Participants must submit timely reports of all changes affecting eligibility, with the exception of changes in income, no later than 10 days after each change occurs. Participants will not be required to report changes in income more frequently than quarterly.
(d)(1) Quarterly report forms must be provided to participants in sufficient time for participants to return completed reports to the social services districts by the tenth day of the process month.
(2) A quarterly report is considered complete when the participant has:
(i) answered all questions;
(ii) provided verification of all reported income; and
(iii) signed and dated the report on or after, but not before, the last day of the report quarter.
(e) Failure to submit a completed report. If a participant fails, without good cause, to return a completed quarterly report by the tenth day of the process month, the social services district must send a timely and adequate notice of discontinuance along with a copy of any quarterly report which was returned incomplete or along with a second quarterly report if no report has been returned.
(f) If the participant responds to the discontinuance notice and submits a completed report before the effective date of the discontinuance, the social services district must accept the completed quarterly report and void the notice of discontinuance.
Text of proposed rule and any required statements and analyses may be obtained from:
Kathryn Mazzeo, New York State Office of Temporary and Disability Assistance, 40 North Pearl Street, 16C, Albany, New York 12243-0001, (518) 473-3271, email: Kathryn.Mazzeo@OTDA.state.ny.us
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
Regulatory Impact Statement
1. Statutory authority:
Section 20(3)(d) of the Social Services Law (SSL) authorizes the Department of Social Services to promulgate regulations to carry out its powers and duties. Section 122 of Part B of Chapter 436 of the Laws of 1997 reorganized the Department of Social Services into the Department of Family Assistance with two distinct offices, the Office of Children and Family Services and the Office of Temporary and Disability Assistance (OTDA). The functions of the former Department of Social Services concerning the public assistance programs were transferred by Chapter 436 to OTDA.
Section 34(3)(f) of the SSL requires the Commissioner of the Department of Social Services to establish regulations for the administration of public assistance and care within the State. Section 122 of Part B of Chapter 436 of the Laws of 1997 provided that the Commissioner of the Department of Social Services would serve as the Commissioner of OTDA.
Section 131(1) of the SSL requires social services districts (districts), insofar as funds are available, to provide adequately for those unable to maintain themselves, in accordance with the provisions of the SSL.
Section 131-t of the SSL requires each public assistance or food stamp (FS) household which currently is receiving or received earned income to submit periodic reports relating to factors affecting eligibility, to the extent and in the manner required by State regulations.
Section 131-z(9) of the SSL requires that for eligibility determinations, child assistance program (CAP) participants must not be required to report changes in income more frequently than on a quarterly basis. The section provides that OTDA must promulgate regulations for the operation of CAP including, but not limited to, regulations concerning eligibility determinations, determinations of available income, and loss of eligibility.
Section 355(3) of the SSL requires OTDA to promulgate regulations to carry out the provisions of the SSL concerning the family assistance program.
2. Legislative objectives:
It was the intent of the Legislature in enacting the above statutes that OTDA establish rules, regulations and policies so that adequate provision is made for those persons unable to provide for themselves so that, whenever possible, such persons can be restored to a condition of self-support and self-care.
3. Needs and benefits:
Quarterly reporting is being eliminated as a district optional requirement for the majority of public assistance (PA) recipients but remains a mandatory requirement for CAP participants. There are seven regulatory changes being made as part of this packet. These are addressed individually below as A through G:
A. The first change underscores the obligation to report income timely.
B. The second change repeals and reserves section 351.24.
The PA quarterly reporting process was established in 1993 as a mandatory replacement for monthly reporting of earned income. At that time, both PA and FS policy adhered to the same process. With the advent of periodic reporting for FS, substantive changes were made in how the process worked for PA and FS. In addition, in 2002, section 351.24 was amended making the PA quarterly report process district optional, except for CAP.
By late 2006, all 58 districts had decided whenever possible to no longer require PA recipients with earned income to quarterly report. Some of the different reasons for eliminating this requirement are outlined below:
• Simplify reporting requirements for both districts and clients - When PA and FS periodic/quarterly reporting procedures began to markedly diverge, the initial advantages of program compatibility and simplicity in reporting were lost. Since both programs still used the same form, but required it to be returned to the districts at different times for PA and FS purposes, there was an element of confusion involved in the reporting process.
• Reduce administrative requirements - Districts have argued that the increased contact resulting from quarterly reporting is not cost effective. Under prospective budgeting procedures, recipients are required to report changes in income when the change occurs, and the increased contact resulting from quarterly reporting was not justifying the additional administrative work that went along with rebudgeting cases every three months. Essentially, districts contend that when using a prospective budgeting system, the financial cost to them in terms of benefits provided is the same regardless of whether contact is made four times a year (two recertifications and two quarterly reports) or twice a year (two recertifications).
• Compatibility with Welfare-to-Work (WTW) reporting requirements - The quarterly reporting process is not as compatible with WTW reporting requirements which anticipate immediate reporting of changes in hours worked. In addition, many districts strive to reduce reporting requirements for employed recipients rather than have requirements become more onerous. In short, their goal is to make it easier to work rather than more difficult.
• Cost - With all of the districts having opted to eliminate PA quarterly reporting whenever possible, it is not cost effective to retain this option on the State's Welfare Management System for a few PA cases, not involving CAP, should a district decide to return to the process.
C. The amendments to section 352.17 (d) delete references to quarterly reporting in the prospective budgeting section of the regulations.
D. The amendments to section 352.19(b)(3) add the definition of timely reporting that was contained in section 351.24 (e). The definition of timely reporting is still required for PA reporting purposes.
E. The amendments to section 366.3 provide definitions concerning quarterly reporting for CAP purposes. These amendments are based upon the definitions that were contained in section 351.24; however, these new definitions located in section 366.3 address the CAP requirements only, and not PA. It is noted that quarterly reporting is a cornerstone of CAP, and thus it is not being eliminated pursuant to these regulations.
F. The amendments to section 366.4(g) remove the reference to section 351.24, which is now being repealed, and replace it with a reference to the new section 366.11. The amendments also remove the general information regarding quarterly reports from section 366.4 and instead rely upon the specifics set forth in the new section 366.11. It is noted that the new section is being added since the text from section 351.24 was too extensive to be added to section 366.4.
G. The last amendment adds a new section 366.11 to reflect CAP quarterly reporting requirements. This new section is based upon the requirements that were contained in section 351.24; however, since the new quarterly reporting provisions are specific to CAP only, all references to general PA provisions that do not apply to CAP have been eliminated.
4. Costs:
There will be minimal fiscal impact as a result of these changes, as all districts have now elected to eliminate quarterly reporting whenever possible, and all PA recipients, except CAP recipients, will still be required to report changes in income or employment in a timely manner. There may be some small administrative savings associated with simplification and efficiency.
5. Local government mandates:
These amendments will not impose any programs, services, duties or responsibilities upon the districts since all 58 districts have already opted out of the quarterly reporting process for PA generally and no changes are being made to the CAP process.
6. Paperwork:
There will be no additional forms required to support this process. However, the periodic/quarterly reporting form (DSS-4310) will be amended to remove any language related to the former PA quarterly reporting requirement. This will help simplify the reporting process for clients and districts. This change will have no impact on CAP.
7. Duplication:
These proposed amendments do not duplicate, overlap or conflict with any existing State or federal regulations.
8. Alternatives:
The alternative is not to repeal section 351.24. However, this would continue to allow districts an option to require recipients to comply with quarterly reporting as a condition for all PA eligibility. This is problematic if only a few of the 58 districts find value in and opt for the quarterly reporting process. This would require that two PA reporting processes be maintained and that forms, system support and informational material be developed and maintained for a small number of impacted clients. This would be inefficient and confusing. It would be inefficient because it monopolizes administrative effort for a small percentage of the PA population. In the last several years of the PA quarterly reporting process, less than 5 % of the State's earned income caseload was subject to this process since all the large districts had opted to withdraw from the process. It would be confusing to clients since explaining two processes in the same publications is by its very nature prone to misinterpretation. Since all 58 districts already have opted whenever possible to withdraw from the quarterly reporting process for PA purposes, a reasonable conclusion is that the process is no longer necessary or efficient for PA programs generally.
9. Federal standards:
These proposed amendments do not conflict with federal standards for PA.
10. Compliance schedule:
There is no compliance schedule since all districts already have opted to withdraw from quarterly reporting for general PA purposes. The last 16 districts converted to non-quarterly reporting status in April 2007. Necessary systems changes, client notification procedures and an administrative directive were provided to assist in this process. An administrative directive was released by the Office of Temporary and Disability Assistance in March 2007 and addressed the elimination of quarterly reporting system requirements for all PA programs, except CAP.
Regulatory Flexibility Analysis
1. Effect of rule:
The proposed amendments will have an effect on local governments, but not on small businesses.
2. Compliance requirements:
At the present time, all 58 social services districts (districts) already have opted not to require quarterly reporting as a condition of general public assistance (PA) eligibility. The last 16 districts opted to eliminate this requirement under existing regulatory authority (the rule is district optional) and converted to non-quarterly reporting status in April 2007. Necessary systems changes, client notification procedures and an administrative directive were provided to assist in this process. An administrative directive was released by the Office of Temporary and Disability Assistance one month prior to the conversion and addressed the elimination of quarterly reporting system requirements for all PA programs, except CAP. Thus there will be no compliance requirements when this rule is filed as the necessary changes have already been completed.
3. Professional services:
The proposed amendments will not require small businesses or local governments to hire additional professional services.
4. Compliance costs:
The proposed amendments will not require additional compliance costs for small businesses or local governments.
5. Economic and technological feasibility:
All small businesses and local governments have the economic and technological ability to comply with these proposed regulations.
6. Minimizing adverse impact:
There will be no adverse economic impact on local governments and small businesses.
7. Small business and local government participation:
Several local districts were informed of the proposed amendments, and no objections to the proposed amendments were expressed. All 58 districts already have opted to eliminate quarterly reporting as a condition of PA eligibility whenever possible.
Rural Area Flexibility Analysis
1. Types and estimated numbers of rural areas:
The proposed amendments will affect the 44 rural social services districts (districts) in the State.
2. Reporting, recordkeeping and other compliance requirements; and professional services:
The rural districts will no longer have the option of requiring all public assistance (PA) recipients to quarterly report as a condition of eligibility. However, no rural districts currently would like to exercise this option of requiring all PA recipients to quarterly report. As of April 2007, all districts have withdrawn from the quarterly reporting process under the district optional authority which exists in the current regulations. As a result, these proposed amendments will not require any further action by the rural districts.
3. Costs:
The proposed amendments will not impose initial capital costs or any annual costs upon the rural districts to comply with the rule.
4. Minimizing adverse impact:
The proposed amendments will not have an adverse impact on the rural districts.
5. Rural area participation:
The rural districts that were informed of the proposed rule had no objections to the proposed changes.
Job Impact Statement
A Job Impact Statement is not required for the proposed amendments. It is apparent from the nature and the purpose of the proposed amendments that they will not have a substantial adverse impact on jobs and employment opportunities. The proposed amendments will not affect in any real way the jobs of the workers in the social services districts. The proposed amendments will reduce reporting responsibilities for employed public assistance (PA) recipients; however, this is expected to make it easier for employed PA recipients to remain employed and comply with PA eligibility requirements. Thus the changes will not have any adverse impact on jobs and employment opportunities in the State.
