Title of Regulation: 22VAC40-601. Supplemental Nutrition Assistance Program (repealing 22VAC40-601-50).

Statutory Authority: § 63.2-217 Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: April 15, 2022.

Agency Contact: Celestine Jackson, Human Services Consultant, Department of Social Services, 7 North 8th Street, Richmond, VA 23219, telephone (804) 726-7376, FAX (804) 726-7356, or email celestine.jackson1@dss.virginia.gov.

Basis: Section 63.2-217 of the Code of Virginia grants authority to the State Board of Social Services to promulgate rules and regulations to operate assistance programs in Virginia. 7 CFR 271.4 delegates responsibility to administer Supplemental Nutrition Assistance Program (SNAP) within a state to the agency assigned responsibility for other federally funded public assistance programs. 7 CFR 273.2(h) allows states an option to deny SNAP applications after 30 days or to extend the pending status for an additional 30-day period.

Purpose: SNAP applicants must apply for benefits in the city or county where they live. SNAP benefits are calculated from the date the application is filed. Local departments of social services normally have 30 days from the filing date to process SNAP applications. Federal regulations allow one of two options for processing applications if the local worker is unable to complete the processing of the application by the end of 30 days. States must either deny the unprocessed applications at the end of the 30-day period or extend the processing period by 30 additional days. For both processing methods, the day the applicant household supplies needed information will determine the amount of SNAP benefits authorized if the applicant provides the information after the 30th day.

The agency initiated 22VAC40-601-50 in an effort to reduce local workload activities. However, it was determined that the effort to implement the application processing method would not likely result in significant reduced work activities to offset the major system modifications needed, altered work activities and documents, and the retraining of the work force.

The chapter sets out the framework by which local departments of social services administer SNAP benefits. SNAP is essential to the health and welfare of citizens, as it provides for nutritional benefits to supplement the food budgets of eligible families. Repeal of 22VAC40-601-50 will not affect the health and safety of citizens. The welfare of citizens is also unaffected by this regulatory action, in that the amount of SNAP benefits one would receive would remain the same regardless of the application processing method states adopt.

Substance: The amendments repeal 22VAC40-601-50, which will mean the SNAP applications will be held pending for an additional 30 days if applicants fail to provide information or take required actions after the initial 30-day period. Applicants who fail to provide information or take action during the extended pending period will have their SNAP applications denied on the 60th day following the application date.

Issues: There are no advantages or disadvantages to the public or the Commonwealth in repealing 22VAC40-601-50.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The State Board of Social Services (Board) seeks to repeal section 50 Application Processing of 22VAC 40-601 Supplemental Nutrition Assistance Program (SNAP), which states that an application would be denied after 30 days if the applicant has not provided "verification or information needed to determine eligibility" for SNAP.

Background. Title 7, Section 271.4 of the Code of Federal Regulations (CFR) delegates authority to the Department of Social Services (DSS) to implement SNAP in the state.¹ Specifically, if an applicant fails to provide verification or information needed to determine eligibility of the household, 7 CFR § 273.2(h) gives states the option to either (i) deny a SNAP application after 30 days or (ii) extend its pending status for an additional 30 days.

Accordingly, section 50 currently requires that applications for SNAP benefits be disposed of within 30 days. As per the current text, "Applicants have 30 days to provide verification or information needed to determine eligibility of the household. If an application cannot be processed by the 30th day because such information is lacking due to the fault of the household, the application must be denied. If the applicant provides the information during the next 30 days, the eligibility worker must reinstate the application and prorate benefits to the date the last verification was provided." Thus, the approach taken by the Board appears to be a combination of the two options provided by the CFR.

The Board established section 50 in 2009 as a potential local work reduction effort. However, "full comprehension of federal requirements and system changes required for implementation of the provision extinguished hope for work reduction outcomes."² A periodic review of 22VAC40-601 resulted in the realization that the agency had not implemented the processing method outlined in section 50, and likely would never implement the provision.³ Repealing the provision would allow the agency to keep an application under review for up to 60 days, in keeping with the second option provided by the CFR.

Estimated Benefits and Costs. Since the provision has not been implemented, the proposed repeal would not likely have any impact beyond potentially reducing confusion among readers of the regulation. DSS does not expect any changes in the number of applications received or denied by local departments. There is no expected fiscal impact on local departments of social services, as local workers would have only needed additional training if the provision had actually been implemented in the first place.

Businesses and Other Entities Affected. The proposed amendment does not appear to affect businesses or other entities.

Small Businesses⁴ Affected. The proposed amendment would not affect small businesses.

Localities⁵ Affected.⁶ The proposed amendment does not affect local governments and is unlikely to affect any locality in particular.

Projected Impact on Employment. The proposed amendment is unlikely to affect employment by DSS or its local departments.

Effects on the Use and Value of Private Property. The proposed amendment is unlikely to affect the use and value of private property. Real estate development costs are not affected.

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¹See https://www.law.cornell.edu/cfr/text/7/273.2.

²See the Agency Background Document: https://townhall.virginia.gov/l/GetFile.cfm?File=73\5540\9186\AgencyStatement_DSS_9186_v1.pdf.

³See https://townhall.virginia.gov/l/ViewPReview.cfm?PRid=1737 for the periodic review.

⁴Pursuant to § 2.2-4007.04 of the Code of Virginia, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

⁵"Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

⁶§ 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency's Response to Economic Impact Analysis: The Department of Social Services reviewed the economic impact analysis prepared by the Department of Planning and Budget and has no comments.

Summary:

The proposed amendment repeals 22VAC40-601-50, which established a potential local work reduction effort but has since been abandoned as a possible change to processing applications for Supplemental Nutrition Assistance Program benefits.

22VAC40-601-50. Application processing. (Repealed.)

Applications for SNAP benefits must be disposed of within 30 days. Applicants have 30 days to provide verification or information needed to determine eligibility of the household. If an application cannot be processed by the 30th day because such information is lacking due to the fault of the household, the application must be denied. If the applicant provides the information during the next 30 days, the eligibility worker must reinstate the application and prorate benefits to the date the last verification was provided.