Colorado § 26-2-709 - Benefits - cash assistance - programs - rules - legislative intent - repeal.

§ 26-2-709. Benefits - cash assistance - programs - rules - legislative intent - repeal.

(1) Standard of need - basic cash assistance grant.

(a) The state department shall promulgate rules determining the standard of need for eligibility for a basic cash assistance grant, whether an applicant or participant meets the standard of need, and the amount of the basic cash assistance grant. The state department shall annually review and promulgate rules as necessary to update the standard of need to ensure the standard of need is equitable, promotes economic mobility and self-sufficiency, and reflects the current economic situations in the state. In addition to any other rules necessary for the implementation of this part 7, the state department's rules shall:

(I) Adopt a statewide standard of need for eligibility for a basic cash assistance grant that is not less than the basis for standard of need pursuant to this subsection (1) as it existed on July 1, 2009;

(II) Establish criteria for determining whether an applicant or participant meets the standard of need, including but not limited to what constitutes countable and excludable income for the purposes of eligibility for a basic cash assistance grant;

(III) No later than July 1, 2023, establish the calculation for determining the amount of an eligible applicant's or participant's basic cash assistance grant, which calculation must include an earned income disregard that is applied to the gross countable earned income of an applicant or participant who is employed and a gradual step down of the amount of income disregarded following the initial earned income disregard. The initial earned income disregard and gradual step down must promote work and self-sufficiency, be responsive to family circumstances and need, and benefit the applicant or participant by reducing the unintended economic consequences of becoming employed. The rules promulgated by the state department pursuant to this subsection (1)(a)(III) must not establish an earned income disregard that results in an applicant or participant having fewer financial resources available to the applicant or participant than a similarly situated applicant or participant would have had under the earned income disregard pursuant to section 26-2-709 as it existed on July 1, 2009.

(IV) Establish the calculation for determining the amount of the basic cash assistance grant, which calculation shall disregard current child support payments made to a participant pursuant to section 26-2-111 (3)(a.5). However, such payments, with applicable disregards, shall be considered income for purposes of determining eligibility for the grant.

(b) (I) For the state fiscal year commencing July 1, 2028, and each state fiscal year thereafter, the amount of basic cash assistance must be equal to or exceed the amount of basic cash assistance for the previous state fiscal year plus a two percent cost of living adjustment or a cost of living adjustment that is equal to the average of the federal social security administration's cost of living adjustment for that fiscal year plus the previous two fiscal years, whichever is greater.

(I.5) (A) For the state fiscal years commencing July 1, 2026, and July 1, 2027, a cost of living adjustment is not applied to an applicant's or participant's basic cash assistance grant.

(B) This subsection (1)(b)(I.5) is repealed, effective July 31, 2028.

(II) (A) On July 1, 2022, the state treasurer shall transfer twenty-one million five hundred thousand dollars from the economic recovery and relief cash fund, created in section 24-75-228, to the Colorado long-term works reserve to cover any increase in basic cash assistance pursuant to this section above the amount of basic cash assistance in state fiscal year 2021-22.

(B) The money transferred pursuant to subsection (1)(b)(II)(A) of this section must be expended in accordance with section 24-75-226 (4)(d).

(C) This subsection (1)(b)(II) is repealed, effective July 1, 2027.

(III) (A) Beginning state fiscal year 2023-24, and each state fiscal year thereafter, to cover any increase in basic cash assistance pursuant to this section above the total spending of basic cash assistance in state fiscal year 2021-22, the state department shall first expend any money remaining that is transferred to the Colorado long-term works reserve pursuant to subsection (1)(b)(II) of this section. The state department shall then expend money in an amount equal to one-third of the amount necessary to cover any such increase in basic cash assistance from available TANF funds, which must include funds in the Colorado long-term works reserve and the total statewide county TANF reserve, and an amount equal to two-thirds of the amount necessary to cover any such increase in basic cash assistance that the general assembly appropriates to the state department from the state general fund or any other available fund, including the Colorado long-term works reserve, in accordance with section 26-2-721 (5). The state department and counties shall identify an equitable portion of the Colorado long-term works reserve and total statewide county TANF reserve for the implementation of this subsection (1)(b)(III)(A). The general assembly shall appropriate money to the state department for the implementation of this subsection (1)(b)(III)(A).

(B) and (C) Repealed.

(IV) Repealed.

(V) The state department and a county department that receives money from the state department pursuant to this section shall comply with the compliance, reporting, record-keeping, and program evaluation requirements established by the office of state planning and budgeting and the state controller in accordance with section 24-75-226 (5).

(c) Except as otherwise provided in this part 7 and subject to available appropriations, an applicant or participant who meets the eligibility criteria established by the state department pursuant to paragraph (a) of this subsection (1) shall receive a basic cash assistance grant in an amount determined by the state department pursuant to paragraphs (a) and (b) of this subsection (1). An increase in the amount of the basic cash assistance grant approved by the state department shall not take effect unless the funding for the increase is included in the annual general appropriation act or a supplemental appropriation act.

(d) Repealed.

(e) Beginning July 1, 2021, and each year thereafter, the joint budget committee of the general assembly shall review the sustainability of the Colorado long-term works reserve created in section 26-2-721.

(f) No later than July 1, 2026, the state department shall submit a report to the joint budget committee that includes the following information related to the standard of need for eligibility for basic cash assistance:

(I) How Colorado's current eligibility for basic cash assistance compares to other states;

(II) The amount of money other states invest in their TANF program;

(III) A list of states that exemplify how to determine whether to update eligibility for basic cash assistance and how to do so;

(IV) A proposed updated standard of need that reduces extreme child poverty, promotes economic mobility and self-sufficiency, and reflects the state's current economic conditions;

(V) The number of additional families that would have access to basic cash assistance based on the proposed updated standard of need created in subsection (1)(f)(IV) of this section; and

(VI) The estimated cost of the proposed updated standard of need.

(1.3) Redetermination of eligibility for persons receiving cash assistance. The state board shall promulgate rules that require county departments to perform a redetermination of eligibility for all assistance units receiving cash assistance. Eligibility processes from other public assistance or entitlement programs may be used when redetermining eligibility. When possible, the state board is strongly encouraged to align redetermination timelines with other public assistance or entitlement programs.

(1.5) Rules concerning cash assistance. The state department shall promulgate rules as may be necessary to comply with changes in federal regulations relating to the definition of the term "cash assistance".

(2) Other assistance.

(a) Subject to available appropriations, a county department may provide assistance, including but not limited to cash assistance, in addition to the basic cash assistance grant described in subsection (1) of this section that is authorized pursuant to the provisions of the federal law or this section. Such other assistance shall be based upon a participant's assessed needs.

(b) and (c) (Deleted by amendment, L. 2008, p. 1960, § 11, effective January 1, 2009.)

(3) (Deleted by amendment, L. 2008, p. 1960, § 11, effective January 1, 2009.)

Source: L. 97: Entire part added, p. 1202, § 1, effective June 3. L. 98: (2) amended, p. 335, § 1, effective April 17. L. 99: (1.5) added, p. 31, § 2, effective July 1. L. 2000: (1.5) amended, p. 25, § 2, effective March 10. L. 2001: (1)(a) amended, p. 212, § 1, effective March 28. L. 2002: (1)(a.5) added, p. 904, § 1, effective May 31. L. 2003: (1)(a) and (1)(a.5) amended and (1.3) added, p. 802, § 4, effective August 6. L. 2006: (1)(b) repealed, p. 593, § 2, effective April 24. L. 2008: (1)(a), IP(1)(a.5), (1)(c), (2), and (3) amended, p. 1960, § 11, effective January 1, 2009. L. 2010: (2)(a) amended, (HB 10-1043), ch. 92, p. 316, § 13, effective April 15; entire section amended, (SB 10-068), ch. 160, p. 551, § 5, effective January 1, 2011. L. 2013: (1.3) amended, (HB 13-1055), ch. 10, p. 25, § 1, effective August 7. L. 2015: (1)(a)(II) and (1)(a)(III) amended and (1)(a)(IV) added, (SB 15-012), ch. 282, p. 1155, § 3, effective August 5. L. 2020: (1)(d) and (1)(e) added, (SB 20-029), ch. 220, p. 1086, § 2, effective July 2. L. 2022: IP(1)(a), (1)(a)(III), (1)(b), and (1.3) amended, (HB 22-1259), ch. 348, p. 2482, § 6, effective June 3; (1)(b)(II)(B) amended, (HB 22-1411), ch. 271, p. 1960, § 16, effective June 3. L. 2025: (1)(f) added, (HB 25-1279), ch. 271, p. 1402, § 2, effective August 6. L. 2026: (1)(b)(I) amended, (1)(b)(I.5) added, and (1)(b)(III)(B), (1)(b)(III)(C), and (1)(b)(IV) repealed, (SB 26-181), ch. 313, p. 1836, § 2, effective June 2.

Editor's note: (1) Amendments to subsection (2) in House Bill 10-1043 and Senate Bill 10-068 were harmonized, effective January 1, 2011.

(2) Subsection (1)(d)(II) provided for the repeal of subsection (1)(d), effective July 1, 2021. (See L. 2020, p. 1086.)

Cross references: For the legislative declaration in SB 20-029, see section 1 of chapter 220, Session Laws of Colorado 2020. For the legislative declaration in HB 22-1259, see section 1 of chapter 348, Session Laws of Colorado 2022.

ANNOTATION

Although the "no entitlement" language under § 26-2-704 modifies the unconditional entitlement to welfare benefits previously available under the AFDC program, the language in subsection (1)(a)(I) does not vitiate all forms of property rights in welfare benefits. Weston v. Cassata, 37 P.3d 469 (Colo. App. 2001).