COMMENT DUE DATE:
February 27, 2017
DATE:
February 17, 2017
Laura Brown, 405-521-4396
Dena Thayer, Programs Administrator, 405-521-4326
Nancy Kelly, Policy Specialist 405-522-6703
RE:
APA WF 17-13
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 STO.LegalServices.Policy@okdhs.org.The proposed policy is emergency.
SUBJECT:CHAPTER 20. Low Income Home Energy Assistance Program (LIHEAP)
Subchapter 1. Low Income Home Energy Assistance Program
340:20-1-11 [AMENDED]
(WF 17-13)
SUMMARY:The proposed revisions to Chapter 20, Subchapter 1 amends the rule to:(1) change the income standard for LIHEAP from net to gross income; (2) reorder information and add additional taglines; (3) add clarifying information regarding when income must be calculated and how to calculate earned income and income of an ineligible alien; (4) define unearned income; (5) change how self-employment income and business expenses are computed; (6) exempt all educational assistance income; (7) update language regarding income exclusions to better align with Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) rules; (8) exclude money from income and resource consideration deposited into or withdrawn from a qualified Achieving a Better Life Experience (ABLE) Program account per State Statute and federal regulations; and (9) add LIHEAP benefit amount information.
EMERGENCY APPROVAL:is requested.
LEGAL AUTHORITY:Director of Human Services; Section 162 and 4001.1 through 4001.5 of Title 56 of the Oklahoma Statutes; Sections 529A and 2503 of Title 26 of the United States Code (26 U.S.C. § 529A), and 42U.S.C. § 8621 and 8624.
Rule Impact Statement
To:Programs administrator
Legal Services - Policy
From:Jim Struby,Director
Adult and Family Services
Date:February 16, 2017
Re:CHAPTER 20. Low Income Home Energy Assistance Program (LIHEAP)
Subchapter 1. Low Income Home Energy Assistance Program
340:20-1-11 [AMENDED]
(Reference WF 17-13)
Contact:Laura Brown 405-521-4396
A.Brief description of the purpose of the proposed rule:
Purpose.
The proposed revisions to Chapter 20, Subchapter 1 amends the rule to:(1) change the income standard for LIHEAP from net to gross income; (2) reorder information and add additional taglines; (3) add clarifying information regarding when income must be calculated and how to calculate earned income and income of an ineligible alien; (4) define unearned income; (5) change how self-employment income and business expenses are computed; (6) exempt all educational assistance income; (7) update language regarding income exclusions to better align with Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) rules; (8) exclude money deposited into or withdrawn from a qualified Achieving a Better Life Experience (ABLE) Program account from income and resource consideration per State Statute and federal regulations; and (9) add LIHEAP benefit amount information.
Strategic Plan Impact.
The proposed amendments achieve Oklahoma Department of Human Services (DHS)goals by continuously improving systems and processes and improving communication with DHS clients and staff.
Substantive changes.
Subchapter 1. Low Income Home Energy Assistance Program
Oklahoma Administrative Code (OAC) 340:20-1-11 is amended to:(1) change the income standard for LIHEAP from net to gross income; (2) reorder information and add additional taglines; (3) add clarifying information regarding when income must be calculated and how to calculate earned income and income of an ineligible alien; (4) define unearned income; (5) change how self-employment income and business expenses are computed; (6) exempt all educational assistance income; (7) update language regarding income exclusions to better align with Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) rules; (8) exclude money from income and resource consideration deposited into or withdrawn from a qualified Achieving a Better Life Experience (ABLE) Program account per State Statute and federal regulations; and (9) add LIHEAP benefit amount information.
Reasons.
Emergency rules are proposed to comply with legislation, effective January 1, 2017, regarding Oklahoma ABLE accounts.Income changes are made to better align with SNAP and TANF rules and to provide clients and employees with clear, concise, and updated rules reflecting current processes to facilitate the accurate delivery of benefits and services to persons who are in need.
Repercussions.
If the proposed revision regarding Oklahoma ABLE accounts is 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 income in error.
If the proposed amendment to reorder and update information, align income rules with SNAP and TANF rules, and add clarifying language is not implemented, it may result in employees not processing LIHEAP benefits correctly.
Legal authority.
Director of Human Services; Section 162 and 4001.1 through 4001.5 of Title 56 of the Oklahoma Statutes; Sections 529A and 2503 of Title 26 of the United States Code (26 U.S.C. §529A), and 42U.S.C. §§ 8621 and 8624.
Emergency rulemaking approval is requested because of reduced appropriations to DHS.Emergency rulemaking is requested to comply with new legislation effective January 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 amendment are LIHEAP applicants and employees.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 LIHEAP applicants and employees.
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 amendments 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 for clients.
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 amendment does 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.
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 February 16, 2017.
340:20-1-11. Income and liquid resources
Revised 7-1-124-15-17
(a) Income.All gross earned and unearned income received by the household, except for those income sources shown in exclusions per (b) of this Section, received by the household is considered in determining financial eligibility.When the household receives income more than once per month, income is converted to a monthly amount and rounded to the nearest dollar.¢ 1When a household member's income is reduced due to recoupment of an overpayment or garnishment, the gross amount before the recoupment or garnishment is considered.
(1) Gross income standard.Eligible The income of eligible households must meet not exceed the gross income standard less the earned income deductionas shown on per Oklahoma Department of Human Services (OKDHS) (DHS) Appendix C-7, Low Income Home Energy Assistance Program Income and Resource Level by Household Size.
(1) Income received on an annual basis is prorated over 12 months to determine the average monthly income.
(A) When the household includes one or more ineligible aliens, part of the ineligible alien(s)' income is considered in determining gross income for the other household members.Refer to (4) of this subsection to determine the countable portion of the ineligible alien(s)' income.The ineligible alien(s) is not considered in household size when determining the gross income standard for the other household members.
(B) When all household members and their income are included in Supplemental Nutrition Assistance Program food benefits, Temporary Assistance for Needy Families or State Supplemental Payment cash assistance, or Child Care Subsidy benefits, the gross income used to establish eligibility for the other program is used to determine eligibility for Low Income Home Energy Assistance Program benefits.When some, but not all, household members are included in other benefits, the gross income of the household member(s) whose income was not verified must be determined for the application month per (2) and (3) of this subsection.
(C) When the household does not receive other benefits, the household's gross income for the application month is calculated to determine income eligibility per (2) and (3) of this subsection.
(2) If the income is not received on a regular monthly basis, refer to OAC 340:10‑3‑31.Earned income.Earned income is income a household member receives in the form of wages, commission, self-employment, or training allowances, and for which he or she puts forth labor. When all household members' earned income is not established for another program and a household member works for an employer, gross earned income is calculated for the application month.When a household member is self-employed or a contract employee, the household member's income is averaged over 12 months to determine the average gross monthly income.
(A) When the household member receives an hourly wage, has not received all earned income for the month by the application date, and his or her income fluctuates, the last 30-calendar days of income is used to anticipate income for the pay periods not yet received.When the household member:
(i) receives an extra paycheck in the application month due to a third or fifth week and the income is ongoing, the last 30-calendar days of income is used to determine countable monthly income instead of counting the extra paycheck; or
(ii) started a new job and the amount of the first paycheck is not known, the earnings are not considered.
(B) When the household member's income does not fluctuate, income received during the month prior to the application month may be used.
(C) When the household member derives his or her annual income by contract or self-employment in a period of time shorter than one year or receives an annual salary, the income is divided over a 12-month period to determine countable monthly income.
(D) To arrive at the monthly gross earned income when the household member is self-employed and:
(i) filed an income tax return on the self-employment income for the most recent tax year, the gross self-employment income, including capital gains, shown on the income tax return is divided by 12 or the number of months the business was in operation when the business operated less than 12 months; or
(ii) did not file an income tax return for the most recent tax year, the gross self-employment income, including capital gains, shown on the household member's business records is divided by 12 or the number of months the business was in operation when the business operated less than 12 months.
(3) Total income is rounded to the nearest dollar.Unearned income.Unearned income is income a household receives that is not in the form of wages, self-employment, or training allowances, and for which a person does not put forth labor.Unearned income received or expected to be received during the month of application is considered unless it is excluded per (b) of this Section.
(4) When a person's income is reduced due to recoupment of an overpayment or garnishment, the gross amount before the recoupment or garnishment is considered.
(5) Countable income is computed as outlined in (A) through (D) of this paragraph.
(A) For each employed household member, subtract the earned income deduction as shown on OKDHS Appendix C-7 (.pdf, 1 pp, 52 KB).If the employed household member is self-employed, business expenses are allowed as described at (a)(6) of this Section.
(B) Add the unearned income of all household members.
(C) Subtract all applicable deductions as shown in (c) of this Section.
(D) The remaining amount is the amount considered available to the household members eligible for the Low Income Home Energy Assistance Program (LIHEAP).
(6) When a household member is self-employed, the net income as shown on the tax return is used as the income for this person.
(A) When the household did not file an income tax return on its self-employment income for the most recent year, the worker uses (i) through (iii) of this subparagraph to determine the net monthly self-employment income.
(i) The gross self-employment income, including capital gains, is computed using the client's self-employment business records.
(ii) If the client declares they incurred business expenses, the worker then subtracts 50% of the gross self-employment income as business expenses.If the household did not incur business expenses, a business expense deduction is not given.
(B) The monthly net self-employment income is added to all other earned income received by the household.Income calculation for an ineligible alien.An ineligible alien is a person who does not meet the eligibility criteria described in Oklahoma Administrative Code (OAC) 340:20-1-8.When an ineligible alien is part of an eligible household, the earned and unearned gross income of the ineligible alien and his or her ineligible dependents are not included when determining the LIHEAP benefit level is calculated in the same manner as it is for other household members.The countable portion of his or her the ineligible alien's income is computed as outlined in per (A) through (E) of this paragraph and added to household income for the eligible members before determining if the household meets the gross income standard per Appendix C-7.An ineligible alien is a person who does not meet the eligibility criteria described in OAC 340:20-1-8.
(A) For each employed household member, subtract Subtract the earned income deduction as shown on OKDHS per Appendix C-7 for each employed ineligible alien.
(B) Add the unearned income of the ineligible alien.
(C) Subtract the need standard on OKDHS per DHS Appendix C-1, Schedule of Maximum Income, Resource, and Payment Standards Schedule IX, for the appropriate number of persons.Persons counted for the need standard are the ineligible alien and his or her ineligible alien dependents who:
(i) are claimable for federal personal income taxes;
(ii) live in the same household; and
(iii) are not included in the household size when determining the gross income standard or the LIHEAP benefit level because they are ineligible aliens for the eligible household members.
(D) Subtract all applicable deductions as shown in per (c) of this Section for the ineligible alien(s).
(E) The remaining amount is the amount considered available to added to the countable income of the household members eligible for LIHEAP.
(b) Income exclusions.In determining income, exclude Exclude from countable income:
(1) the food benefit amount 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, veteran's education benefits, and the like are exempt 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.¢ 2The student's classification, whether graduate or undergraduate, is not a factor;
(4) loans, regardless of use, if when 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 is from a person or financial institution in the loan business.
(B) If When the loan is from a person(s) not in the loan business, the borrower's acknowledgment of obligation to repay, with or without interest, is required to indicate that the loan is bona fide;
(5) Indian per capita payments including distributed from judgment awards or trust funds or funds held in trust and 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 made pursuant to Public Law (P.L.) 98-64.
(A) Exclude 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.
(B) Exclude per capita payments, for example, such as Osage tribe headrights of Osage tribe, income from mineral leases, or other tribal business ventures, as long as when they meet the distribution requirements as stated in this paragraph.¢ 2
(C) Consider as income, interest or income derived from the principal or produced by purchases made with the funds after distribution.
(D) The per capita exclusion applies per person rather than per family;
(6) special allowance for school expenses made available upon petition in writing from trust funds of the student;
(7) benefits from State state and Community Programs community programs on Aging [aging from Title III] and Title V.Income from the Older American Community Service Employment Act [Title V], including American Association of Retired Persons (AARP) and Green Thumb organizations as well as employment positions allocated at the discretion of the Governor of Oklahoma, is counted as earned income Title III and Title V are under the Older Americans Act (OAA) of 1965, amended by P.L. 100‑175 to become the OAA, as amended in 2000.Each state and various organizations receive 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) U.S. 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;
(8) unearned income received by a child receiving Temporary Assistance for Needy Families (TANF), such as a needs based payment, cash assistance, allowances, stipends, earnings, compensation in lieu of wages, or allowance, from a program funded by the grants, and other payments made for participation in Workforce Investment Innovation and Opportunity Act (WIA) including Job Corps income, and WIA earned income received as wages, not to exceed six months in any calendar year (WIOA) of 2014, or other federally-funded workforce training program to persons of all ages and student status with the exception of income paid to persons 19 years of age and older for on-the-job training.This income is treated as any other earned income; ¢ 3
(9) 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);
(10) payments, to volunteers under the Domestic Volunteer Service Act of 1973 allowances, or earnings to persons participating in programs under Title I of the National and Community Service Act, such as University Year for Action (UYA), Senior Companion Program, AmeriCorps Volunteers in Service to America (VISTA),unless the gross amount of VISTA payments equals or exceeds the state or federal minimum wage, whichever is greater and other AmeriCorps Programs;
(11) 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;
(12) 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;
(13) 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;
(14) earnings of a minor dependent child who is a full-time student;
(15) rental or housing subsidies by governmental agencies, for example, such as the United States Department of Housing and Urban Development (HUD), received in-kind or in cash for rent, mortgage payments, or utilities;
(16) reimbursements from an employer for out-of-pocket expenditures and allowances for travel or training to the extent the funds are used for expenses directly related to such travel or training.Uniform allowances are excluded if when the uniform is uniquely identified with the company name or logo.Any amount the employer adds to the employee's gross income as a benefit allowance to pay for a reimbursable expense, such as insurance or dependent care is excluded.When the monthly benefit allowance exceeds the monthly expense and the employer includes the excess in the employee's pay each month, the worker counts the excess benefit allowance as earned income;
(17) advance payments of Earned Income Tax Credit (EITC) received as part of a paycheck or EITC refunds of EITC as a result of filing a federal income tax return;
(18) refunds of state EITC as a result of filing a state income tax return;
(19) payments made from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the IN RE In Re Agent Orange Product Liability Litigation, M.D.L. No. 381 (E.D.N.Y.) are not considered as income or as a resource in determining eligibility for or the amount of the benefit;
(20) payments received for Emergency Assistance to Needy Families with Children;
(21) payments made by others on the household's behalf;
(22) in-kind benefits received by an employee from an employer in lieu of wages or in conjunction with wages;
(23) payments made under the Radiation Exposure Compensation Act (P.L. 101-426) enacted October 15, 1990;
(24) federal major funds distributed by Federal Emergency Management Assistance (FEMA) due to a disaster and or emergency assistance provided under the Disaster Relief Act of 1974, and to persons directly affected by the event.This exclusion also applies to comparable disaster assistance provided by states, local governments, and disaster assistance organizations.For payments to be excluded, the disaster or emergency must be declared by the President of the United States;
(25) interests of individual Native Americans in trust or restricted lands;
(26) income up to $2,000 per calendar year received by individual Native Americans, which that is derived from leases or other uses of an individually-owned trust or restricted lands.Any remaining disbursements from the trust or the restricted lands are considered as unearned income; ¢ 4
(27) payments made to persons because of their status as victims of Nazi persecution;
(28) monetary allowances as described in per Section 1823(c) of Title 38 of the United States Code (USC)(U.S.C.) provided to certain persons who are children of Vietnam War veterans; and
(29) Family Support Assistance Payment Program payments paid to persons by the OKDHS DHS Developmental Disabilities Services Division (DDSD); and
(31) 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 when the client:¢ 5
(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 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 are 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.
(c) Income deductions.Certain When applicable, subtract deductible expenses per (1) through (3) of this paragraph from the gross income may be applied when applicable, such as.Deductible expenses may include:
(1) out-of-pocket verified non-reimbursed medical expenses paid by persons age 60 and years of age or older or persons considered disabled per OAC 340:50-5-4 and 340:50‑7‑31(b)(3);¢ 6
(2) legally binding child support paid by a household member to or for a non-household member when verified, including payments made to a third party on behalf of the non-household member; and
(3) the earned income deduction as shown on OKDHS per DHS Appendix C-7 for each employed household member.In addition, if when a household member is self-employed, see (a)(6) of this Section for deduct 50 percent of the household member's gross self-employment deductions income for incurred business expenses.When the household member did not incur business expenses, he or she is not eligible for a business expense deduction.
(d) Benefit amount.Refer to Appendix C-7-A, Estimated Low Income Home Energy Assistance Program (LIHEAP) Benefit Level for all Households, to determine the LIHEAP benefit amount.The LIHEAP benefit amount is based on household size, excluding ineligible aliens, the household's net income after applicable deductions are subtracted per (c) of this Section, and the primary energy source.
(e) Resources.Liquid resources, such as cash on hand, checking or savings accounts, certificates of deposits, and or stocks or bonds, cannot exceed the allowable resource level as shown on OKDHS per Appendix C-7.The applicant's statement is accepted as verification unless the information received is inconsistent or questionable.
Instructions TO Staff 340:20-1-11
Revised 7-1-124-15-17
1.Exempt student income includesWhen income is received on a:
(1) any money from Title IV of the Higher Education Act including federal or state work study daily basis, there is consistency in the days worked each week, and a regularity of pay dates, it is converted to a weekly amount and multiplied by 4.3 to arrive at a monthly amount.When there is no consistency in the work offered or when pay is received, all income received in the calendar month is added together to arrive at a monthly amount.When more than one month of irregular income is available, the worker totals the income and divides it by the number of months used;
(2) educational assistance funded through the Veterans Administration (VA) such as the Montgomery GI Bill weekly basis, add together the most recent consecutive pay checks, divide by the number of pay checks used, and multiply the income by 4.3 to arrive at the monthly amount;
(3) grants biweekly basis, add together the most recent consecutive pay checks, divide by the number of pay checks used, and multiply the income by 2.15 to arrive at the monthly amount; or
(4) scholarships twice per month, add together the most recent consecutive pay checks, divide by the number of pay checks used, and multiply the income by 2 to arrive at the monthly amount;
(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; and
(11) Workforce Investment Act (WIA).
2.Student income that is not exempt includes:
(1) money that is 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.Per capita payments or income from tribal business ventures, such as some of the tribal gaming payments do not always have to meet the distribution requirements to be exempt.When it is not known if the payments meet the distribution requirements of Public Law 98-64, the tribe must be contacted to verify if the payment meets the requirements.
3.(a) There are numerous programs for which income is excluded.Some of the more common examples include income received from Youthbuild, Summer Youth, Job Corps, and paid classroom training.For less common examples, the worker must determine if the program is a federally-funded workforce training program.
(b) Income, aid, services, or incentives received by households participating in programs funded by Health Profession Opportunity Grants (HPOG) per Section 5507 of the Affordable Care Act (ACA) are exempt.HPOG may be granted to state agencies, workforce investment boards, community-based organizations, or institutions of higher learning.
4.(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.When the client received more than $2,000, the amount over $2,000 is divided by 12 to determine monthly countable income.For example, when total disbursements equaled $2,100, the calculation is $2,100 minus $2,000 equals $100.The $100 is then divided by 12 to determine monthly countable income.
(b) When other household members also receive disbursements, the first $2000 is disregarded for each household member before any income is counted.
5.(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 26 years of age can set up ABLE Act accounts and only one account is allowed per person.
(2) 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 per Section 529A of Title 26 of the United States Code 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.
6.Refer to Oklahoma Administrative Code 340:50-7-31 for a list of allowable medical expenses.
