COMMENT DUE DATE:
December 28, 2016
DATE:
December 15, 2016
Laura Brown, Adult and Family Services Policy Liaison (405) 521-4396
Dena Thayer, Legal Services Programs Administrator 405-521-4326
Nancy Kelly, Legal Services Policy Specialist 405-522-6703
RE:
APA WF 16-09
The proposed policy is Emergency . This proposal is subject to Administrative Procedures Act
It is important that you provide your comments regarding the draft copy of policy by the comment due date. Comments are directed to Legal Services - Policy, *STO.Legal Services.Policy.
Emergency revisions have a proposed effective date of March 1, 2017.
SUBJECT:Chapter 10. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
Subchapter 3. Conditions of Eligibility - Need
Part 1. Resources
340:10-3-5 through 10-3-6 [AMENDED]
Part 3. Income
340:10-3-40 [AMENDED]
(Reference 16-09)
SUMMARY:The proposed revisions to Chapter 10, Subchapter 3 amend the rules to:(1) exclude from income and resource consideration money deposited into or withdrawn from a qualified Achieving a Better Life Experience (ABLE) Program account per state statute and federal regulations; (2) remove outdated information and staff instructions regarding stocks and bonds; (3) remove from 10-3-5 disregarded resources that are duplicated as disregarded income in 340:10-3-40; (4); exclude all educational income unless it serves the same purpose as TANF; (3) add information regarding how to verify loans received on a recurrent basis; (4) add clarifying and plain language for enhanced understanding; and (13) update terminology and a legal citation.
Emergency rulemaking is requested to comply with new legislation effective 1-1-2017.
LEGAL AUTHORITY:Director of Human Services; Section 162, 230.52, and 4001.1 through 4001.5 of Title 56 of the Oklahoma Statues; and Sections 529A and 2503 of Title 26 of the United States Code.
Rule Impact Statement
To:Programs Administrator
Legal Services - Policy
From:Jim Struby,Director
Adult and Family Services
Date:December 5, 2016
Re:Chapter 10. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
Subchapter 3. Conditions of Eligibility - Need
Part 1. Resources
340:10-3-5 through 10-3-6 [AMENDED]
Part 3. Income
340:10-3-40 [AMENDED]
(Reference 16-09)
Contact:Laura Brown 405-521-4396
A.Brief description of the purpose of the proposed rule:
Purpose.
The proposed revisions to Chapter 10, Subchapter 3 amend the rules to:(1) exclude from income and resource consideration money deposited into or withdrawn from a qualified Achieving a Better Life Experience (ABLE) Program account per state statute and federal regulations; (2) remove outdated information and staff instructions regarding stocks and bonds; (3) remove from 10-3-5 disregarded resources that are duplicated as disregarded income in 340:10-3-40; (4); exclude all educational income unless it serves the same purpose as TANF; (3) add information regarding how to verify loans received on a recurrent basis; (4) add clarifying and plain language for enhanced understanding; and (13) update terminology and a legal citation.
Strategic Plan Impact.
The proposed amendments achieve DHSgoals by continuously improving systems and processes and improving communication with DHS clients and staff.
Substantive changes.
Subchapter 3. Conditions of Eligibility - Need
Part 1. Resources
OAC 340-3-5 is amended to:(1) exclude from resource consideration money deposited into or withdrawn from a qualified ABLE Program account per state statute and federal regulations; (2) remove outdated information and staff instructions regarding stocks and bonds; (3) remove disregarded resources that are duplicated as disregarded income in 340:10-3-40; and (4) add clarifying and plain language for enhanced understanding.
OAC 340:3-6 is amended to:(1) exclude from resource consideration money deposited into or withdrawn from a qualified ABLE Program account per state statute and federal regulations; and (2) add clarifying and plain language for enhanced understanding.
Part 3. Income
OAC 340:10-3-40 is amended to:(1) exclude all educational income unless it serves the same purpose as TANF; (2) add information regarding how to verify loans received on a recurrent basis; (3) exclude from income consideration money deposited into or withdrawn from a qualified ABLE Program account per state statute and federal regulations; (4) update terminology and a legal citation; and (5) simplify language.
Reasons.
Emergency rules are proposed to comply with new legislation that is effective January 1, 2017 regarding Oklahoma ABLE accounts.Educational income is excluded and treatment of loans is clarified to align with proposed Supplemental Nutrition Assistance Program and Child Care Subsidy Program rules.
Repercussions.
If the proposed revisions are not implemented, rules will not be in compliance with new legislation and may result in staff considering funds deposited into or withdrawn from qualified ABLE accounts as countable resources and income in error.
Legal authority.
Director of Human Services; Section 162, 230.52, and 4001.1 through 4001.5 of Title 56 of the Oklahoma Statues; and Sections 529A and 2503 of Title 26 of the United States Code.
Emergency rulemaking approval is requested.Emergency rulemaking is requested to comply with new legislation effective 1-1-2017.
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 households applying for or receiving TANF cash assistance benefits 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 households applying for or receiving TANF 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:The revised rules do not have an economic impact on the affected entities.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 cost to DHS includes the cost of printing and distributing the rules estimated to be less than $20.The revised rules will result in enhanced delivery of services to households applying for or receiving TANF and may decrease DHS errors.
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:Implementation of the proposed rules may reduce health risks for families with qualified ABLE accounts and facilitate the delivery of benefits and services to persons who are in need..
J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented:If the proposed rule revisions are not implemented, health risks may not be reduced for persons with qualified ABLE accounts.
K.The date the rule impact statement was prepared and, if modified, the date modified:Prepared on December 5, 2016.
SUBCHAPTER 3. CONDITIONS OF ELIGIBILITY - NEED
PART 1. RESOURCES
340:10-3-5. Personal property
Revised 7-1-123-1-2017
(a) This subsection describes personal property and how it is considered in determining eligibility for Temporary Assistance for Needy Families (TANF).
(1) Household goods and equipment.Items essential to day-to-day living, such as clothing, furniture, and other similarly essential items of limited value, are excluded as resources.
(2) Livestock and equipment used in a business enterprise.A person's equity in livestock, equipment, or inventory of merchandise in a business enterprise is considered as a resource only ifwhen the person is not actively engaged in the business enterprise.Equity is not counted ifwhen the person actively participates in the business or is only temporarily inactive, for example, the person is incapacitated and can reasonably expect and has plans to resume the business enterprise.Equity is established on the basis of oral or written information which the person has at hand and counsel with persons who have specialized knowledge about the particular resources.
(3) Livestock and home produce used for home consumption.Any livestock or produce grown and used by the assistance unit for home consumption is exempt.
(4) Cash savings and bank accounts.Money on hand or in a savings account is considered as a resource.The person's statement that he or she has no money on hand or on deposit is sufficient unless there are indications to the contrary.Money on hand orAvailable cash and money in a savings accountfinancial institution is considered as a resource.The person's statement that he or she has no moneydoes not have cash on hand or on depositin a financial institution is sufficient unless there are indications to the contrary.When there is information to the contrary or when the person does not have records to verify the amount on deposit, verification is obtained from bank records.Section 167.1 of Title 56 of the Oklahoma Statutes provides that financial records obtained for the purpose of establishing eligibility for assistance or services must be furnished without cost to the person or the Oklahoma Department of Human Services (OKDHS)(DHS).
(A) Checking accounts may or may not represent savings.Current bank statements are evaluated with the person to establish what, if any, portion of the account represents savings.Any income deposited during the current month is not considered.
(B) Accounts owned jointly are considered available to the person unless it can be established what part of the account actually belongs to each of the owners, the money is separated, and the joint account is dissolved.
(C) Per Section 4001.1 of Title 56 of the Oklahoma Statutes, 56 O.S. § 4001.1, money and assets deposited into or withdrawn from an individual savings or trust account owned by the designated beneficiary of the account and established to pay qualified disability expenses is excluded under the Oklahoma Achieving a Better Life Experience (ABLE) Program or an ABLE program in any other state for the purpose of determining eligibility to receive, or the amount of, any assistance or benefits from local or state means-tested programs.A person may have only one ABLE account.The client must provide documents to verify that the account meets exemption criteria before the funds are exempted from resource and income consideration.¢ 1When verified, the exclusion applies to money:
(i) deposited in the account up to the annual federal gift tax exclusion per Section 2503(b) of Title 26 of the United States Code.Any money deposited in the account in a calendar year that is in excess of the annual federal gift tax exclusion is considered a countable resource and income in the month deposited.
(ii) withdrawn to pay qualified disability expenses.Money withdrawn for reasons other than to pay qualified disability expenses is considered as income for the month of withdrawal.
(5) Insurance policies and prepaid funeral benefits.
(A) Life insurance policies.The cash surrender value (CSV) less any loans or unpaid interest of life insurance policies owned by members included in the TANF cash assistance is counted as a resource.Dividends which accrue and remain with the insurance company increase the amount of the resource.Dividends paid to a person are considered as income.Assignment of the face value of a life insurance policy to fund a prepaid burial contract is not counted as a resource.In this instance, the amount of the face value of the life insurance is evaluated according to (C) or, ifwhen applicable, (D) of this paragraph.
(B) Burial spaces.The value of a burial space for each family member whose needs are included in the cash assistance or whose income and resources are considered when computing the cash assistance is excluded from resources.
(C) Burial funds.Revocable burial funds not in excess of $1500 for each person included in the assistance unit are excluded as a resource if the funds are specifically set aside for the burial arrangements of the person.Any amount in excess of $1500 for each person included in the assistance unit is considered as a resource.Burial policies which require premium payments and do not accumulate cash value are not considered prepaid burial policies.
(i) BurialThe term burial funds means a prepaid funeralburial contract or burial trust with a funeral home or burial association whichthat is set aside to pay for the person's burial expenses.
(ii) The face value of a life insurance policy, when properly assigned by the owner to a funeral home or burial association, may be used for purchasing burial funds as described in (i) of this subparagraph.
(iii) The burial fund exclusion must be reduced by the face value of life insurance policies owned by the person and by the amounts in an irrevocable trust or other irrevocable arrangement.
(iv) Interest earned or appreciation on the value of any excluded burial funds is excluded ifwhen left to accumulate and become a part of the burial fund.
(v) IfWhen the person did not purchase the prepaid burial contract or trust, even ifwhen the person's money was used for the purchase, the person is not the owner and the prepaid burial funds cannot beare not considered a resource to the person.
(D) Irrevocable burial contract.Oklahoma law provides that a purchaser of a prepaid funeralburial contract may elect to make the contract irrevocable.Irrevocability becomes effective 30- calendar days after the contract is signed.
(i) IfWhen the irrevocable election was made prior to July 1, 1986, and the person received assistance on July 1, 1986, the full amount of the irrevocable contract is excluded as a countable resource.This exclusion applies only ifwhen the person does not add to the amount of the contract.Interest accrued on the contract is not considered as added.Any break in assistance requires that the contract be evaluated at the time of reapplication.
(ii) IfWhen the effective date for the irrevocable election or application for assistance is July 1, 1986, or later, the amount in any combination of an irrevocable contract, revocable prepaid burial contract or trust, and the cash value of unassigned life insurance policies cannot exceed $10,000.When the principal amount exceeds $10,000, the person is ineligible for assistance.Accrued interest is not counted as a part of the $10,000 limit, regardless of when it is accrued.
(iii) For an irrevocable contract to be valid, the election to make it irrevocable must be made by the purchaser or the purchaser's guardian or a person with power of attorney for the purchaser.
(E) Medical insurance.When a person has medical insurance whether directly purchased or available in conjunction with employment, the available benefits are applied toward thepayments made to the medical expense for which the benefits are paid.¢ 1If an assignment of the insurance is not made to the vendor and payment is made provider or directly to the person,and the payment must bepayments are applied to the cost of medical services, they are excluded from resource consideration.Any amount remaining after payment for medical services is considered a resource.¢ 2
(6) Stocks, bonds, mortgages, and notes.The person's equity in stocks,and bonds, including United States Savings Bonds, Series A through EE, ismortgages, and notes are considered a resourceas resources.
(A) The current market value less encumbrances is the equity of stocks or bonds.¢ 3
(B) Except for a bond which has been held beyond the maturity date, the current value is the redemption value listed in the table on the back of the bond for the anniversary date most recently reached.
(C) If the bond has been held beyond maturity date, it has continued to draw interest.
(D) The amount whichthat can be realized from notes, mortgages, and similar instruments, ifwhen offered for immediate sale, constitutes a resource.
(7) Non-negotiable resources.Installment payments received on a note, mortgage, and similar instruments, for which a buyer cannot be found, are considered as monthly income.
(8) Vehicles, pickups, and trucks.For each automobile, pickup, truck, motorcycle, or other vehicle, the market value of each year's make and model is established on the basis of the average trade-in value listed in the National Automobile Dealers Association (NADA) books, other blue books, or one of the Internet Web sites that provide data on the market value of used vehicles at no cost to the user.¢ 24In the eventWhen the person and worker cannot agree on the value ofstates the vehicle is worth less than the average trade-in value, the person secures written appraisals byfrom two persons familiar with current values.The appraisals should state the appraised value of the vehicle and why it is worth less than the average trade-in value.IfWhen there is a substantial unexplained divergencedifference between thesethe appraisals or between the blue book value and one or more of thesethe appraisals, the worker and the person jointly arrange for a third person familiar with current values and acceptable to both to establish the true market value to be established by an appraisal made by a third person who is familiar with current values and acceptable to both the person and workerof the vehicle.
(A) Exempt vehicles.OneThe equity value of up to $5,000 in one automobile, pickup, truck, motorcycle, or other vehicle used for the primary source of transportation for each assistance unit not to exceed an equity of $5,000 is exemptedexempt from resource consideration.The amount of the equity in excess of $5,000 is considered against the resource limit.
(B) Other vehicles.The equity in other automobiles, pickups, and trucks,as well as other personal property including boats, travel trailers, motorcycles, motor homes, campers, and similar itemsother vehicles is considered a resourceagainst the resource limit.The current market value less encumbrances on the vehicle is the equity.Only encumbrances that can be verified are considered in computing equity.
(9) Lump sum payments.¢ 35A lump sum settlement which compensates for the loss of a resource, such as an automobile, may be disregarded in the amount used to replace the loss.
(A) The person is given a reasonable amount of time to replace the loss not to exceed 30-calendar days.Extension beyond 30-calendar days may be justified in special instances when completion of the transaction is beyond the person's control.
(B) Any amount remaining after the replacement of the loss is considered as income.
(C) Income tax refunds, except for the portion that represents an earned income tax credit (EITC), must be treated as a resource and considered available to the person upon receipt.Per the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010 [Public Law 111-312], EITC payments received after December 31, 2009 as a result of filing a federal or state tax return are exempt as a resource for 12 months following receipt.
(D) Retirement benefits received as a lump sum payment at termination of employment are considered a resource.¢ 46These benefits are not treated as income because the retirement contribution was regarded as income in the month earned and withheld by the employer.
(10) Individual Development Accounts (IDAs).IDAs are dedicated savings accounts that are used for a qualified purpose such as purchasing a first home, education or job training expenses, capitalizing a small business, or other purposes designated by the IDA administrative entity.
(A) IDAs are managed by community organizations and accounts are held at local financial institutions.
(B) Cash deposits and interest accrued from the deposits made by a person in an IDA up to $2,000 are not considered as income or resources in determining TANF eligibility.
(C) The account deposits must be made from earned income, EITCs, or tax refunds.
(11) Saving For Education, Entrepreneurship, and Downpayment (SEED) Initiative accounts.SEED accounts are dedicated savings accounts for persons age 13 through 18 years of age that are used for a qualified purpose such as purchasing a first home, education or job training expenses, capitalizing a small business, or other purposes designated by the administrative entity.SEED accounts are managed by community organizations and accounts are held at local financial institutions.Cash deposits and interest accrued from the deposits made by a person in a SEED account up to $2,000 are not considered as income or resources in determining TANF eligibility.
(b) This subsection describes resources disregarded in determining need.Disregarded resources are:
(1) food benefit allotments under the Food and Nutrition Act of 2008income disregarded per OAC 340:10-3-40;
(2) any payments received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;
(3) education grants, including work study, scholarships, and similar grants, if receipt is contingent upon the student regularly attending school.The student's classification, graduate or undergraduate, is not a factor;
(4) loans, regardless of use, if a bona fide debt or obligation to pay can be established.Criteria to establish a loan as bona fide includes an acknowledgment of obligation to repay or evidence that the loan was from an individual or financial institution in the loan business.The borrower's acknowledgment of obligation to repay, with or without interest, is considered to indicate that the loan is bona fide.If When the loan agreement is not written, Form 08AD103E, Loan Verification, is completed by the borrower attesting the loan is bona fide and signed by the lender verifying the date and amount of loan;
(5) Indian payments, including judgment funds or funds held in trust, distributed per capita by the Secretary of the Interior, Bureau of Indian Affairs (BIA) or distributed per capita by the tribe subject to approval by the Secretary of the Interior.For purposes of this paragraph, per capita is defined as each tribal member receiving anequal amount.Any interest or investment income accrued on such funds while held in trust or any purchases made with judgment funds, trust funds, interest, or investment income accrued on such funds is disregarded.Any income from mineral leases or tribal business investments is disregarded as long as the payments are paid per capita.Any interest or income derived from the principal or produced by purchases made with the funds after distribution is considered as any other income;
(6) special allowances for school expenses made available upon petition, in writing, from funds held in trust for the student;
(7)(2) trusts of a child(ren)included in a TANF benefit if it is determined by the workerwhen the funds are to be used for educational purposes for the child(ren).Any court established trust must be examined to determine if the court has restricted the trust for other purposes.The workerclient must verify at application and redeterminationrenewal if funds have been withdrawn.¢ 57Any funds withdrawn are treated as lump sum unearned income unless it can be documented the funds were used for the child(ren)'s educational purposes;¢ 68
(8)(3) any accounts, stocks, bonds, or other resources held under the control of a third party if the funds are designated for educational purposes for a child(ren) eligible for TANF, even if the child(ren)'s name is on the account and the third party holder is required to access the funds;
(9) benefits from state and community programs on aging from Title III and Title V are disregarded.Both Title III and Title V are under the Older Americans Act (OAA) of 1965 amended by Public Law (P.L.) 100-175 to become the OAA as amended 2000;
(10) unearned income received, such as needs based payments, cash assistance, compensation in lieu of wages, or allowances from programs funded by the Workforce Investment Act (WIA), including Job Corps income.This includes WIA earned income received as wages;¢ 7
(11) payments for supportive services or reimbursement of out-of-pocket expenses made to individual volunteers serving as foster grandparents, senior health aides, or senior companions, and to persons serving in the Service Corps of Retired Executives (SCORE), Active Corps of Executives (ACE), and any other programs pursuant to the National and Community Service Trust Act of 1993 (NCSTA);
(12) payments to volunteers under the NCSTA, such as Americorps VISTA;
(13) the value of supplemental food assistance received under the Child Nutrition Act or the special food service program for children under the National School Lunch Act;
(14) any portion of payments made under the Alaska Native Claims Settlement Act to an Alaska Native which are exempt from taxation under the Settlement Act;
(15) Experimental Housing Allowance Program (EHAP) payments made under Annual Contributions Contracts entered into prior to January 1, 1975, under Section 23 of the U.S. Housing Act of 1937, as amended;
(16) refunds of federal and state EITC received after December 31, 2009 as a result of filing a federal or state tax return are exempt as a resource for 12 months following receipt per the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010, [Public Law 111-312];
(17) payments from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.);
(18) payments made from the Radiation Exposure Compensation Trust Fund as compensation for injuries or deaths resulting from the exposure to radiation from nuclear testing and uranium mining;
(19) federal major disaster and emergency assistance provided by Section 5515(d) of Title 42 of the United States Code (U.S.C.), and comparable disaster assistance provided by state, local governments, and disaster assistance organizations;
(20) interests of individual Indians in trust or restricted lands.However, any disbursements from the trust or restricted lands are considered as income;
(21)(4) a migratory farm worker's out-of-state homestead if the farm worker's intent is to return to the homestead after the temporary absence;
(22)(5) a non-recurring lump sum Supplemental Security Income (SSI) retroactive payment, made to a TANF recipient, in the month paid and the next following month.The amount remaining in the second month after the month of receipt is a countable resource;
(23) payments received under the Civil Liberties Act of 1988.These payments are made to persons of Japanese ancestry who were detained in internment camps during World War II;
(24) payments made to persons because of their status as victims of Nazi persecution;
(25) payments made from the crime victims compensation program as amended in section 1403 of the Victims of Crime Act of 1984, Section 10602 of Title 42 of the U.S.C.;
(26) reimbursements made to a foster care parent(s);
(27) payments as described in Section 1823(c) of Title 38 of the U.S.C. provided to certain persons who are children of Vietnam War veterans; and
(28)(6) funds in education accounts established under Section 529 and 530 of the Internal Revenue Code or exempted by Section 4000 of Title 56 of the Oklahoma State Statues; and¢ 89
(29)(7) child support collected from a child support tax intercept for the month received.The amount remaining in the second month after the month of receipt is a countable resource.
INSTRUCTIONS TO STAFF 340:10-3-5
Revised 7-1-123-1-17
1.(a) The Oklahoma State Treasurer is responsible for certifying an achieving a better life experience (ABLE) account.Rules regarding an ABLE account include:
(1) only persons whose disability was established before age 26 can set up ABLE Act accounts and one account is allowed per person.
(2) there is no limit to the number of persons who can contribute to the ABLE account; and
(3)upon the death of an ABLE Act participant, every dollar remaining in the account must be paid to the state Medicaid agency to repay costs of care received by the participant during life.
(b) Since ABLE accounts are set up for persons with disabilities, it is more likely that a family member in an Aid to the Disabled companion case may have an ABLE account than it is for a TANF participant to have one.
(c) At application and renewal, the client must provide proof from the financial institution of the dates and amounts of money deposited into and withdrawn from the ABLE account in the last 12 months.Any amount in excess of the annual federal gift tax exclusion amount is considered a countable resource and income in the month of deposit.The current gift tax exclusion amount is $14,000 per calendar year.The client must verify, preferably from the financial institution, that any funds withdrawn were used for qualified disability expenses.Funds withdrawn and not used for qualified disability expenses are considered as income for the month of withdrawal.
(c) Qualified disability expenses means any expenses related to the eligible individual's blindness or disability and approved under Section 529A of the Internal Revenue Code that are made for the benefit of an eligible individual who is the designated beneficiary, including, but not limited to, expenses for:
(1) education;
(2) housing;
(3) transportation;
(4) employment, training and support;
(5) assistive technology and personal support services;
(6) health, prevention and wellness, financial management and administrative expenses;
(7) legal fees;
(8) oversight and monitoring; and
(9) funeral and burial expenses.
2.The type of insurance is documented in Case Notes on Family Assistance/Client Services (FACS).
3.Paper savings bonds were last issued in 2011 at half of the face value on the savings bond.Electronic savings bonds began issuing in 2012 at full face value.Refer to Savings Bond Calculator at savingsbonds.gov to determine the current value of a savings bond.
24.(a) The average trade-in value listed in the National Automobile Dealers Association (NADA) books can be used, other blue books, or one of the Internet Web sites which provide data on the market value of used vehicles at no cost to the user.Available Web sites include:
(1) CarPriceswww.carprices.com;
(2)AutoWorldwww.autoworld.com;
(3) Intellichoicewww.intellichoice.com;
(4) Edmund'swww.edmunds.com;
(5) Kelley Blue Bookwww.kbb.com.; and
(6) NADAwww.nada.com.
(b) The value of a vehicle cannot be increased by adding the value of low mileage or optional equipment.The Kelley Blue Book requires users to include mileage prior to calculating a vehicle's value.Other online services with a mileage field assume average mileage if the mileage field is left blank.To ensure any vehicles are not assigned a higher value based on unusually low mileage the worker uses the greater of the vehicle's actual mileage or 12,000 miles per year.
(c) The case record must include sufficient documentation indicating the Web site or blue book used to determine the market value of the vehicle.
35.Refer toPer Oklahoma Administrative Code (OAC) 340:10-3-28(6), any remaining part of a lump sum payment received by a non-recipient prior to the date of application is considered as a resource.
46.Refer to OAC 340:10-3-28(1) for consideration of a lump sum retirement benefit received at the time of retirement.
57.Refer to OAC 340:10-3-6 for information regarding trust accounts.
68.Funds for educational purposes are for any necessary expenses related to school activities, such as fees, books, and clothing.
7.Refer to OAC 340:10-3-40(34).
89.Money withdrawn from an education account is not considered unless withdrawn for use other than education.This exclusion includes:
(1) Oklahoma College Savings Plan accounts.Information about these accounts may be found at http://www.ok4saving.com/;
(2) Coverdell Education Savings also known as Section 530 accounts; and
(3) Qualified Tuition Program also known as Section 529 accounts.
340:10-3-6. Trust accounts
Revised 6-1-103-1-17
Monies held in trust foran individualWhen a person applying for or receiving Temporary Assistance for Needy Families (TANF) must havehas monies held in trust, a decision regarding the availability of the funds determinedmust be made.Funds held in trust are considered available both when actually available and when the applicant or recipient has a legal interest in a liquidated sum and has the legal ability to make such sum available for support and maintenance.In this circumstance, a decision regarding availability is made by the worker.¢ 1Funds may also be held in trust and under the control of someone other than the TANF parent or caretaker relative, such as the courts, agencies, other individuals, or the Bureau of Indian Affairs (BIA).The availability of these funds is determined by using the procedures described in (1) and (2)through (3) of this Section.
(1) Funds held in trust by courts, agencies, or other individuals.Certain informationThe applicant or recipient must be obtainedprovide trust documents at the time of application or at the time it is learned awhen the worker becomes aware of the existence of a trust is in existence.This information mustDocuments include a copy of the trust instrument, when applicable,and a copy of all relevant court documents includingthat may include a Journal Entry, Order, Settlement Agreement, and documentation as to date, amount, and purpose reflectingof any prior disbursements.
(A) Release of trust by written petition or written request.The availability of the trust can only be determined after the TANF payee sends a written petition to the court for the release of the total funds has been made or a written request is made to the trustee ifwhen the trust is not in a court supervised account for the release of the total funds.The individual is instructed in writing to petition the court in writing or submit a written request to the trustee for release of the total amount of the funds in the trust account.
(i) The worker sends a written notice to the TANF caretaker relative informspayee informing him or her to:
(I) file the written petition with the court or submit a written request must be filed with the court or submitted to the trustee within 30 calendar days from the date of the notice;
(II) provide a copy to the worker; and that
(III) failure to do so results in case denial or closure due to the county not being able to determineas benefit eligibility cannot be determined.
(ii) Upon receipt of a copy of the petition or request, the trust account at issue is considered unavailable.The worker instructs the TANF payee is instructed to provide the worker with a copy of the court or trustee's response when received.
(ii)(iii) When the TANF caretaker relative complies timely withpayee submits the petition or request timely but cannotdoes not get a response from the court or trustee, the worker offers assistance, such as writingwith the client's permission, to write a letter, with his or her written permission, to the court or trustee.¢ 2
(iii)(iv) When the court or trustee's response to the petition or request is explicit as to the availability of funds, the worker takes appropriate action.Otherwise, the information is submitted under cover memo toWhen the response is not explicit, the worker asks Adult and Family Support Services Division (FSSD) TANF Sectionstaff to make a decision regarding the availability of funds.IfWhen necessary, AFS TANF staff obtains a decision is obtained from the Legal DivisionServices about the availability of the funds held in trust.
(iv)(v) A decision regarding trust availability is rendered in one of two ways.The trust monies are considered:
(I) Trust is not available.The trust monies are considered unavailable to the child(ren) and further review is not needed unless the trust instrument is amended. or
(II) Trust is available.The trust monies are considered available as a resource in determining eligibility.
(B) Periodic reviewrenewal. If the funds areFunds determined to be unavailable to the individual, theyperson are excluded as a resource at that time.However, atuntil the next redeterminationrenewal or reapplication.At renewal, the worker obtains information from the court or trustee regarding any modification to the trust instrument and any disbursements.¢ 3Any disbursementsDisbursements are considered as income the month received.IfWhen modification or disbursements havedid not occurredoccur, the funds continue to be considered as unavailable until the next renewal is due.
(2) Funds held in trust by BIA.Interests of individual Indians in trust or restricted lands are not considered a resource in determining eligibility for assistance under the Social Security Act or any other federal or federally assisted program.
(3) Funds held in trust in an Achieving a Better Life Experience (ABLE) Program account.Funds held in a trust account owned by the designated beneficiary of the account and established to pay qualified disability expenses under the Oklahoma Achieving a Better Life Experience (ABLE) Program or an ABLE program in any other state are excluded under the Oklahoma ABLE program or an ABLE program in any other state is excluded for the purpose of determining eligibility to receive, or the amount of, any assistance or benefits from local or state means-tested programs per Sections 4001.1 through 4001.5 of Title 56 of the Oklahoma Statutes or per the Achieving a Better Life Experience Act of 2014, (26 U.S.C. § 529A).The applicant or recipient must provide documents to verify that the trust account meets exemption criteria before the funds in the trust account are exempted from resource and income consideration.¢ 4When verified, the exclusion applies to money:
(A) deposited in the account up to the annual federal gift tax exclusion per Section 2503(b) of Title 26 of the United States Code.Any money deposited in the account in a calendar year that is in excess of the annual federal gift tax exclusion is considered a countable resource and income in the month deposited.
(B) withdrawn to pay qualified disability expenses.Money withdrawn for reasons other than to pay qualified disability expenses is considered as income for the month of withdrawal.
INSTRUCTIONS TO STAFF 340:10-3-6
Revised 6-1-10
1.Refer to OAC 340:10-3-5(10)(G) and (H)(a)(4)(C) and(b)(7) and (8), Resourcefor trust resource disregards, and OAC 340:10-3-40(7) and (8), Incomefor trust income disregards.
2.The worker sends Form 08AD092E, Client Contact and Information Request to the client to instruct him or her to submit the written petition or request for the release of the total funds in the trust account.When the petition or request is denied, the funds are considered unavailable.
3.IfWhen the court or trustee does not respond within 30-calendar days, the worker submits a memo to theAdult and Family Support Services Division (FSSD)(AFS) Temporary Assistance for Needy Families (TANF) explaining the situation, including the efforts made to obtain a response to the petition or request.
3.(a) Refer to OAC 340:65-3-8(d), Review or recertificationfor benefit renewal time frames.
(b) If eitherWhen a modification or a disbursement has occurredoccurs, the worker sends details to the FSSDAFS TANF Section whereto make a decision regarding availability of the resource is made.
4.(a) The Oklahoma State Treasurer is responsible for certifying an achieving a better life experience (ABLE) account.Rules regarding an ABLE account include:
(1) only persons whose disability was established before age 26 can set up ABLE Act accounts and one account is allowed per person.
(2) there is no limit to the number of persons who can contribute to the ABLE account; and
(3)upon the death of an ABLE Act participant, every dollar remaining in the account must be paid to the state Medicaid agency to repay costs of care received by the participant during life.
(b) Since ABLE accounts are set up for persons with disabilities, it is more likely that a family member in an Aid to the Disabled companion case may have an ABLE account than it is for a TANF participant to have one.
(c) At application and renewal, the client must provide proof from the financial institution of the dates and amounts of money deposited into and withdrawn from the ABLE account in the last 12 months.Any amount in excess of the annual federal gift tax exclusion amount is considered a countable resource and income in the month of deposit.The current gift tax exclusion amount is $14,000 per calendar year.The client must verify, preferably from the financial institution, that any funds withdrawn were used for qualified disability expenses.Funds withdrawn and not used for qualified disability expenses are considered as income for the month of withdrawal.
(c) Qualified disability expenses means any expenses related to the eligible individual's blindness or disability and approved under Section 529A of the Internal Revenue Code that are made for the benefit of an eligible individual who is the designated beneficiary, including, but not limited to, expenses for:
(A) education;
(B) housing;
(C) transportation;
(D) employment, training and support;
(E) assistive technology and personal support services;
(F) health, prevention and wellness, financial management and administrative expenses;
(G) legal fees;
(H) oversight and monitoring; and
(I) funeral and burial expenses.
PART 3. INCOME
340:10-3-40. Income disregards
Revised 6-1-133-1-17
Income that is disregarded in determining eligibility for Temporary Assistance for Needy Families (TANF) is:
(1) the food benefit allotment under the Food and Nutrition Act of 2008;
(2) any payment received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;
(3) educational assistance including grants, work study, scholarships, fellowships, educational loans on which payment is deferred, veterans education benefits, and the like if receipt is contingent upon the student regularly attending school and the money received is intended to offset the costs of education and expenses as identified by the institution, school, program, or other grantor.¢ 1If the money is not intended to be a reimbursement and is a gain to the client, it is considered income.¢ 2When the educational assistance is serving the same purpose as TANF cash assistance, such as when the client receives a stipend for living expenses, the stipend is countable income.The student's classification as a graduate or undergraduate is not a factor;
(4) loans, regardless of use, if a bona fide debt or obligation to pay can be established.
(A) Criteria to establish a loan as bona fide includes an acknowledgment of obligation to repay or evidence that the loan was from a person or financial institution in the loan business.
(B) IfWhen the loan was from a person(s) not in the loan business, the borrower'sclient's acknowledgment of obligation to repay, with or without interest, is required to indicate that the loan is bona fide.
(C) IfWhen the loan agreement is not written, the client and lender must complete and sign Form 08AD103E, Loan Verification, must be completed by the borroweror a written statement, attesting that the loan is bona fide and signed bythe lender verifying the date and amount of loan.
(D) When copies of written agreements or Form 08AD103E are not available, detailed case documentation must include information that the loan is bona fide and how the debt amount and date of receipt was verifiedthe client receives loans on a recurrent or regular basis from the same source to meet expenses, the client and lender must sign a notarized affidavit that states the payments are loans that must be repaid or that payments will be made in accordance with an established repayment schedule;
(5) Indian payments, including judgment funds or funds held in trust, distributed per capita by the Secretary of the Interior, Bureau of Indian Affairs (BIA) or distributed by the tribe subject to approval by the Secretary of the Interior.For purposes of this paragraph, per capita is defined as each tribal member receiving an equal amount.
(A) Any interest or investment income accrued on such funds while held in trust or any purchases made with judgment funds, trust funds, interest, or investment income accrued on such funds is disregarded.
(B) Any income from mineral leases or from tribal business investments is disregarded as long as the payments are paid per capita.
(C) Any interest or income derived from the principal or produced by purchases made with the funds after distribution is considered as any other income;
(6) special allowance(s) for school expenses made available upon petition in writing from trust funds of the student;
(7) income from trusts of a child(ren) included in a TANF benefit if it is determined bywhen the worker determines that funds are to be used for educational purposes for the child(ren).Any court established trust must be examined to determine if the court has restricted the trust for other purposes.The worker must verify at application and redeterminationrenewal if funds have beenwere withdrawn.¢ 31Any funds withdrawn are treated as lump sum unearned income unless it can beis documented the funds were used for the child(ren)'s educational purposes;¢ 42
(8) income from accounts, stocks, and bonds held under the control of a third party ifwhen the funds are designated for educational purposes for a child(ren) in a TANF benefit even when the child(ren)'s name is on the account and the third-party holder is required to access the funds;
(9) benefits from state and community programs on aging from Title III and Title V. Title III and Title V are under the Older Americans Act (OAA) of 1965 amended by Public Law (P.L.) 100‑175 to become the OAA as amended 2000.Each state and various organizations receive some Title V funds.These organizations include:
(A) Experience Works;
(B) National Council on Aging;
(C) National Council of Senior Citizens;
(D) American Association of Retired Persons (AARP);
(E) United States (US) Forest Service;
(F) National Association for Spanish Speaking Elderly;
(G) National Urban League;
(H) National Council on Black Aging; and
(I) National Council on Indian Aging;
(10) unearned income received by a child(ren) in a TANF benefit, such as a needs based payment, cash assistance, compensation in lieu of wages, or allowance from a program funded by the Workforce Investment Act (WIA)Innovation and Opportunity Act (WIOA) of 2014 including Job Corps income and WIA earned income received as wages;
(11) payments for supportive services or reimbursement for out-of-pocket expenses made to individual volunteers serving as foster grandparents, senior health aides, or senior companions, and to persons serving in the Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE);
(12) payments to volunteers under the National and Community Service Trust Act of 1993 (NCSTA), such as AmeriCorps VISTA;¢ 53
(13) the value of supplemental food assistance received under the Child Nutrition Act or the special food service program for children under the National School Lunch Act;
(14) any portion of payments, made under the Alaska Native Claims Settlement Act to an Alaska Native that are exempt from taxation under the Settlement Act;
(15) any income of an adult or child(ren) in the family group living in the home and receiving Supplemental Security Income (SSI) is not considered in determining the TANF benefit.His or her individual income is considered by the Social Security Administration in determining eligibility for SSI and includes any payment made by the Developmental Disabilities Services Division through the Family Support Assistance Payment Program on behalf of a child(ren) receiving SSI and any other earned or unearned income of the person;
(16) Experimental Housing Allowance Program (EHAP) payments made under Annual Contributions Contracts entered into prior to January 1, 1975, under Section 23 of the US Housing Act of 1937, as amended;
(17) earnings of a child(ren) in a TANF benefit who is a full-time student;
(18) government rental or housing subsidies by governmental agencies, for example, Housing and Urban Development (HUD) which are received in-kind or in cash for rent, mortgage payments, or utilities;
(19) reimbursements from an employer, the Department of Labor, or the Bureau of Indian Affairs, for out-of-pocket expenditures and allowances for travel, training, meals, or supplies including uniforms, to the extent the funds are used for expenses directly related to such travel, training, meals or supplies;
(20) Low Income Home Energy Assistance Program (LIHEAP) payments for energy assistance and payments for emergency situations under Emergency Assistance to Needy Families with Children;
(21) refunds of federal or state Earned Income Tax Credit (EITC) received after December 31, 2009, as a result of filing a federal or state tax return are exempt as income for 12 months following receipt per the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010 [Public Law 111-312];
(22) payments made from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.);
(23) payments made from the Radiation Exposure Compensation Trust Fund as compensation for injuries or deaths resulting from the exposure to radiation from nuclear testing and uranium mining;
(24) federal major disaster and emergency assistance provided by Section 5515(d) of Title 42 of the United States Code (U.S.C.) and comparable disaster assistance provided by states, local governments, and disaster assistance organizations;
(25) interests of individual Indians in trust or restricted lands;;
(26) income up to $2,000 per calendar year received by individual Indians that is derived from leases or other uses of individually owned trust or restricted lands.Any remaining disbursements from the trust or the restricted lands are considered unearned income;¢ 64
(27) payments received under the Civil Liberties Act of 1988.These payments are made to persons of Japanese ancestry who were detained in internment camps during World War II;
(28) payments made to persons because of their status as victims of Nazi persecution;
(29) interest accrued from the deposits made by ana person into an Individual Development Account (IDA) up to $2,000;¢ 75
(30) stipends paid to students participating in the Indian Vocational Education Program (IVEP) through the Carl D. Perkins Vocational and Applied Technology Education Act;
(31) payments made from the crime victims compensation program as amended in section 1403 of the Victims of Crime Act of 1984, Section 10602 of Title 42 of the United States Code (42 U.S.C. § 10602);
(32) reimbursements made to a foster care parent(s) or a potential foster care parent(s);¢ 86
(33) payments as described in Section 1823(c) of Title 38 of the U.S.C. provided to certain persons who are children of Vietnam War veterans;
(34) allowances, stipends, earnings, compensation in lieu of wages, or other payments made for participation in WIAWIOA or other federally funded grants and workforce training programs paid to persons of all ages and student status; and¢ 97
(35) child support judgments or arrearage payments received for a child no longer age eligible for the TANF cash benefit.; and
(36) money deposited into or withdrawn from a qualified Oklahoma Achieving a Better Life Experience (ABLE) Program account per Sections 4001.1 through 4001.5 of Title 56 of the Oklahoma Statutes or a qualified ABLE Program account set up in any other state per the ABLE Act of 2014, (26 U.S.C. § 529A) is excluded as income or a resource when the client:¢ 8
(A) provides documents to verify the account meets exemption criteria;
(B) verifies money deposited in the account does not exceed the annual federal gift tax exclusion amount per 26 U.S.C. § 2503(b).Any money deposited in the account in the calendar year that is in excess of the annual federal gift tax exclusion amount is considered as countable income in the amount deposited;and
(C) verifies withdrawals from the account were used to pay qualified disability expenses.Money withdrawn for reasons other than to pay qualified disability expenses is considered as income for the month of withdrawal.
INSTRUCTIONS TO STAFF 340:10-3-40
Revised 6-1-133-1-17
1.Exempt student income includes:
(1) any money from Title IV of the Higher Education Act including federal or state work study;
(2) educational assistance funded through the Veterans Affairs (VA), such as the Montgomery GI Bill;
(3) grants;
(4) scholarships;
(5) subsidized and unsubsidized Stafford loans;
(6) federal PLUS loans;
(7) TRIO grants;
(8) Robert C. Byrd Honors Scholarship Program;
(9) Bureau of Indian Affairs (BIA) student assistance;
(10) money from the Carl D. Perkins Vocational Education Act, such as the Native American Career and Technical Education Program (NACTEP); and
(11) Workforce Investment Act (WIA).
2.Student income that is not exempt includes:
(1) money paid directly to the student and not sent through the bursar's account other than funds listed in Instructions to Staff # 1 of this Section;
(2) institutional work study; or
(3) money intended as an incentive for school attendance or grades rather than the school expenses.
3.Refer to Oklahoma Administrative Code (OAC) 340:10-3-6 for trust accounts policy.
42.Refer to OAC 340:10-3-28 for lump sum payments policy.
53.Refer to OAC 340:10-2-4(c)(2) for on-the-job training.
64.(a) The client must provide proof of total disbursements received for the previous calendar year to determine how much, if any, of the income counts.IfWhen the client received more than $2000, the amount over $2000 is divided by 12 to determine monthly countable income.For example, when total disbursements equaled $2100, the calculation is $2100 minus $2000 equals $100.The $100 is divided by 12 to determine monthly countable income.
(b) When other household members receive disbursements, the first $2000 is disregarded for each household member before any income is counted.
75.Refer to OAC 340:10-3-5(a)(10) for Individual Development Accounts.
86.An example of a reimbursement is a pre-service training stipend or Kinship Start Up Stipend (KSUS) payment.Refer to OAC 340:75-7-24.
97.There are numerous programs that exclude income.Some of the more common examples include income received from Youthbuild, Summer Youth, Job Corps, and paid classroom training.A less common example is the Health Profession Opportunity Grant (HPOG) per Section 2008 of Title XX of the Social Security Act.For less common examples, the worker must determine if the program is a federally funded workforce training program.
8.(a) The Oklahoma State Treasurer is responsible for certifying an achieving a better life experience (ABLE) account.Rules regarding an ABLE account include:
(1) only persons whose disability was established before age 26 can set up ABLE Act accounts and one account is allowed per person.
(2) there is no limit to the number of persons who can contribute to the ABLE account; and
(3)upon the death of an ABLE Act participant, every dollar remaining in the account must be paid to the state Medicaid agency to repay costs of care received by the participant during life.
(b) At application and renewal, the client must provide proof from the financial institution of the dates and amounts of money deposited into and withdrawn from the ABLE account in the last 12 months.Any amount in excess of the annual federal gift tax exclusion amount is countable income.The current gift tax exclusion amount is $14,000 per calendar year.The client must verify, preferably from the financial institution, that any funds withdrawn were used for qualified disability expenses.Funds withdrawn and not used for qualified disability expenses are considered as income for the month of withdrawal.
(c) Qualified disability expenses means any expenses related to the eligible individual's blindness or disability and approved under Section 529A of the Internal Revenue Code (Section 529A of Title 26 of the United States Code) that are made for the benefit of an eligible individual who is the designated beneficiary, including, but not limited to, expenses for:
(1) education;
(2) housing;
(3) transportation;
(4) employment, training and support;
(5) assistive technology and personal support services;
(6) health, prevention and wellness, financial management and administrative expenses;
(7) legal fees;
(8) oversight and monitoring; and
(9) funeral and burial expenses.
