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The agency has not involved small businesses in the development of these rules as business input was not needed.
A. If small businesses were involved in the development of the rules, please identify the business(es).
Small businesses were not involved in the development of these rules.
Cost-Benefit Analysis of Rules (independent of statutory impact)
26. Estimate the actual statewide compliance costs of the rule amendments on businesses or groups.
There will be agency costs in reconfiguring the Department’s MiCSES system and associated interface with the
Bridges system in complying with the rules. Further the agency will incur costs of training staff on the new rule
impact. Costs are approximated at MiCSES unit of work, including training in support of this change is $483,121.
These are agency costs only, and there are not any costs affecting businesses or groups.
A. Identify the businesses or groups who will be directly affected by, bear the cost of, or directly benefit from the
proposed rules.
Small businesses, food stores in general, and families will directly benefit from the rule. Removing the cooperation
requirement and reinstating benefits provides for more funds to use for family’s groceries that will be spent at both
rural and urban stores. During economic downturns, every $1 in new SNAP benefits issued can increase gross
domestic product by $1.54. Others who are not filing for FAP benefits if not for the cooperation requirement can now
submit applications for their own families’ needs. And child support services will always be available for any
applicant who chooses.
B. What additional costs will be imposed on businesses and other groups as a result of these proposed rules (i.e.
new equipment, supplies, labor, accounting, or recordkeeping)? Please identify the types and number of businesses
and groups. Be sure to quantify how each entity will be affected.
No additional costs will be imposed on businesses or other groups.
27. Estimate the actual statewide compliance costs of the proposed rules on individuals (regulated individuals or
the public). Include the costs of education, training, application fees, examination fees, license fees, new
equipment, supplies, labor, accounting, or recordkeeping.
There are no costs associated to individuals who are receiving FAP benefits. There may be costs to businesses in
more labor costs if more Michigan residents apply for FAP benefits given the cooperation requirements are no longer
needed. That cost is speculative until such time those numbers are known.
A. How many and what category of individuals will be affected by the rules?
All FAP grantees in non-cooperation. There are currently 14,560 disqualified for FAP benefits due to non-
cooperation for child support. There are approximately 287 small businesses that are Mom and Pop grocery/party
stores that could potentially see an increase in sales due to the reinstatement of all FAP benefits to the family.
B. What qualitative and quantitative impact do the proposed changes in rules have on these individuals?
Full benefits will be restored to the family once the grantee is moved out of non-cooperation, which allows more
funds for food purchases and better living conditions for families. Small businesses will see an increase in business
by both families restored to full FAP benefits and may allow families considering applying for FAP to do so once the
cooperation requirement is removed. Child support services will remain available to all applicants who desire them.
28. Quantify any cost reductions to businesses, individuals, groups of individuals, or governmental units as a result
of the proposed rules.
There are no quantitative cost reductions as a result of this rule. FAP family households will see an increase in FAP
benefits and businesses should see in increase in profits due to the full benefits being provided to the family.
29. Estimate the primary and direct benefits and any secondary or indirect benefits of the proposed rules. Please
provide both quantitative and qualitative information, as well as your assumptions.
There are currently 14,560 grantees who have been disqualified for FAP benefits due to non-cooperation. These
grantees would directly benefit from these rules as their benefits would be reinstated to the original group FAP
amount. Businesses will experience a direct benefit of increased sales through reinstated benefits. The indirect
benefit is the increased number of families who need food assistance but for the cooperation aspect will now sign up
for FAP without fear of being denied or found non-cooperative. Further, child support services will always be
available to these families at any time the family chooses to use those child support services.
30. Explain how the proposed rules will impact business growth and job creation (or elimination) in Michigan.
MCL 24.245(3)