COMMENT DUE DATE:  

January 31, 2018

DATE: 

January 22, 2018

Laura Brown, Adult and Family Services (AFS) 405-521-4396

Dena Thayer, Programs Administrator, Legal Services (LS) Policy 405-521-4326

Nancy Kelly, Policy Specialist, LS Policy 405-522-6703

RE:  

Non-APA WF 18-B

It is very 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  Non-APA .  This proposal is not subject to Administrative Procedures Act

The proposed policy is Instructions to Staff (ITS) only.

SUBJECT:CHAPTER 50. SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

Subchapter 5. Non-Financial Eligibility Criteria

Part 3. Special Households

340:50-5-26 ITS only [Amended]

340:50-5-27 ITS only [Amended]

Part 7. Related Provisions

340:50-5-64 ITS only [Amended]

340:50-5-86 ITS only [Amended]

Subchapter 7. Financial Eligibility Criteria

Part 3. Income

340:50-7-29 ITS only [Amended]

340:50-7-30 ITS only [Amended]

Part 5. Determination of Income

340:50-7-46 ITS only [Amended]

Subchapter 11. Special Procedures

Part 5. Restoration of Lost Benefits

340:50-11-46 ITS only [Amended]

(WF 18-B)

SUMMARY:

Oklahoma Administrative Code (OAC) 340:50-5-26 ITS are revised to:(1) remove a no policy cite reference that is no longer needed; and (2) add clarifying language.

OAC 340:50-5-27 ITS are revised to update policy citations and terminology.

OAC 340:50-5-64 ITS are revised to define 'refugee' when referring to the population served by the Office of Refugee Resettlement.

OAC 340:50-5-86 ITS are revised to explain what types of employment exempt a person from work registration.

OAC 340:50-7-29 ITS are revised to clarify when unearned income, such as Social Security benefits, is received by a third party, it is counted as income for the person it is intended for and not the payee of the benefit.

OAC 340:50-7-30 ITS are revised to add:(1) an example to explain how to offset a self-employment farm loss when a household receives farm and non-farm income; and (2) clarifying language to explain what part of each tax return to use to calculate self-employment income.

OAC 340:50-7-46 ITS are revised to clarify: (1) what pay stubs are needed to process an initial application versus a mid-certification renewal or certification renewal; and (2) that an applicant is not required to provide a pay stub received on the interview date.

OAC 340:50-11-46 ITS are revised to update:(1) terminology; and (2) the process used to restore lost benefits when an overpayment is involved.

OAC 340:50-5-26 ITS are revised to:(1) remove a policy cite reference that is no longer needed; and (2) add clarifying language.

OAC 340:50-5-27 ITS are revised to update policy citations and terminology.

OAC 340:50-5-64 ITS arerevised to define 'refugee' when referring to the population served by the Office of Refugee Resettlement.

OAC 340:50-5-86 ITS are revised to explain what types of employment exempt a person from work registration.

OAC 340:50-7-29 ITS are revised to clarify when unearned income, such as Social Security benefits, is received by a third party, it is counted as income for the person it is intended for and not the payee of the benefit.

OAC 340:50-7-30 ITS are revised to add:(1) an example to explain of how to offset a self-employment farm loss when a household receives farm and non-farm income; and (2) clarifying language to explain what part of each tax return to use to calculate self-employment income.

OAC 340:50-7-46 ITS are revised to clarify: (1) what pay stubs are needed to process an initial application versus a mid-certification renewal or certification renewal; and (2) that an applicant is not required to provide a pay stub received on the interview date.

OAC 340:50-11-46 ITS are revised to update:(1) terminology; and (2) the process used to restore lost benefits when an overpayment is involved.

SUBCHAPTER 5. NON-FINANCIAL ELIGIBILITY CRITERIA

PART 3. SPECIAL HOUSEHOLDS

340:50-5-26. Drug addiction or alcoholic treatment centers

Revised 6-1-09

Residents of drug addiction or alcoholic treatment centers are certified for program participation through the use of an authorized representative who is an employee of, and designated by the publicly-operated, community mental health center or the private, non-profit organization or institution administering the treatment and rehabilitation program.The organization or institution receives and spends the food benefit allotment for food prepared by or served to a person who is drug or alcohol addicted.¢ 1

(1) Persons addicted to drugs or alcohol in treatment programs.Persons addicted to drugs or alcohol who regularly participate in publicly operated or private non-profit drug or alcoholic treatment and rehabilitative programs on a resident basis may voluntarily apply for the Supplemental Nutrition Assistance Program.¢ 21The child of a resident who lives with his or her parents in the treatment center may also qualify to participate.Residents have eligibility determined as a one person household or, when applicable, as a family unit.They may use all or part of the food benefits issued to them in the treatment center to purchase food prepared for them during the treatment program.

(A) Residents of treatment centers are certified using the same provisions that apply to all other applicant households except certification is completed through use of authorized representatives.

(B) Participants in a drug addict or alcoholic treatment and rehabilitative program are exempt from the work registration requirement.Participation must be verified through the organization or institution operating the program before granting the exemption if the information is inconsistent with other information on the application, previous application, or other documented information.

(2) Approved centers.The drug or alcohol treatment and rehabilitative center must be approved by the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS), or by Food and Nutrition Services (FNS) as a retailer.¢ 32

(3) Center responsibility.All treatment and rehabilitative centers must provide the local human services center (HSC) with a list of currently participating residents on a monthly basis.This list must include a statement signed by a responsible center official attesting to the validity of the list.¢ 43

(4) When participant leaves the center.When a participant leaves a treatment center, the center:

(A) notifies the departing resident household they may have food benefits left in their Electronic Benefit Transfer (EBT) account.

(i) The departing household receives its full food benefit if no food benefits have been spent on behalf of that person's household.These procedures are applicable any time during the month.

(ii) The center accesses only half of the food benefits in the resident's EBT account prior to the 15th of the month.

(iii) If the resident remains in the facility after the 15th day of the month, the remaining food benefits may be accessed on behalf of the resident.

(iv) If the household leaves after the 16th day of the month and the food benefits have already been issued and used, the household does not receive any further food benefits for that month;

(B) is no longer allowed to act as that person's authorized representative;

(C) provides, if possible, the person with Form 08FB038E, Changes in Household Circumstances, and advises the person to complete the form showing his or her new circumstances and to return the form to the local HSC within ten calendar days;

(D) informs the departing household they must go to the local HSC to secure their own Access Oklahoma card;

(E) deactivates immediately the Access Oklahoma card by calling the phone number shown on the back of the card; and

(F) notifies the HSC the participant left the treatment center.

(5) Reporting changes.The treatment center must notify the HSC of changes in the household income or other household circumstances required to be reported as outlined in OAC 340:50-9-5.

(6) Treatment center liability.The organization or institution is responsible for any misrepresentation or fraud it knowingly commits in the certification of treatment center residents.

(A) As an authorized representative, the organization or institution must be knowledgeable about the households' circumstances and carefully review these circumstances with residents prior to applying on their behalf.

(B) The organization or institution is strictly liable for all losses or misuse of food benefits held on behalf of resident households and for all over issuances which occur while the households are residents of the treatment center.¢ 54

INSTRUCTIONS TO STAFF 340:50-5-26

Revised 11-1-132-1-18

1.Refer to Oklahoma Administrative Code (OAC) 340:50-5-7(b)(2)(B) for information regarding persons considered residents of institutions.

2.To be considered a resident of the drug or alcohol treatment center, the treatment plan must require a minimum 30-calendar day stay in the center.

32.(a) Prior to certifying a resident for food benefits, the workerstaff verifies the treatment center is approved as a treatment center by the:

(1) Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS);

(2) United State Department of Agriculture (USDA) Food and Nutrition Services (FNS); or

(3) Adult and Family Services (AFS) Supplemental Nutrition Program (SNAP) Sectionstaff.AFS SNAP Sectionprogram field representative staff approves faith-based treatment centers.

(b) The workerStaff may view ODMHSAS, FNS, and AFS approved facilities on the Infonet under the AFS comprehensive job function page /SNAP.

43.(a) An employee of theA treatment center employee completes and sends Form 08FB013E, Supplemental Nutrition Assistance Program (SNAP) Daily Census Report, to the local county office on a monthly basis, within five-calendar days of the end of the report month.The treatment center keeps the original copy and makes it available to AFS staff when requested.

(b) The worker Staff designated by the county director visits the treatment center at least once every calendar quarter and completes Form 08FB014E, Supplemental Nutrition Assistance Program (SNAP) Record of On-Site Visit, to document the visit.The workerStaff selects and compares one of the monthly Form 08FB013Es submitted to the county office within the last calendar quarter, with the treatment center's records, and notes all discrepancies and explanations offered by treatment center staff for the discrepancies on Form 08FB014E.

54.Local county office staff notifies the AFS SNAP Sectionstaff, when it has reason to believehe or she believes an organization or institution is misusing food benefits in its possession.When the workerstaff notes discrepancies on Form 08FB014E, he or she must submit a copy of the completed form to the AFS SNAP Sectionstaff within 10-calendar days of the on-site visit.

340:50-5-27. Disabled or blind residents of group homes

Revised 6-1-08

Residents of group homes may be certified for food benefits through the use of an authorized representative who is designated by and is an employee of the group home.The group home may either receive and spend the food benefits for food prepared by or served to the eligible resident or allow the eligible resident to use all or any portion of the food benefit allotment on his or her own behalf.¢ 1

(1) Residents in group homes.

(A) Residents of group homes who are disabled or blind as defined in OAC 340:50-5-4 may voluntarily apply for food benefits.The resident may apply and be certified:

(i) through an authorized representative employed and designated by the group home;

(ii) on his or her own behalf; or

(iii) through an authorized representative of his or her own choice.

(B) The group home determines what method the resident uses to make application based on the resident's mental and physical ability to handle his or her own affairs.The group home consults with other agencies providing services to the resident in making this determination.

(C) If the resident applies through the use of the group home's authorized representative, eligibility is determined for a single person household.The household must meet all conditions of eligibility.

(D) If the resident applies on his or her own behalf or through an authorized representative of his or her own choice, household size is determined in accordance with the definition in OAC 340:50-5-1.¢ 2

(i) The food benefits may either be turned over to the facility to be used to purchase food for meals served communally or individually to eligible residents, used by the eligible resident to purchase and prepare his or her own food, or to purchase meals prepared and served by the group.

(ii) The resident is responsible for reporting changes in circumstances.

(2) Approved group homes.The group home must be approved by the Developmental Disabilities Services Division (DDSD) or by Food and Nutrition Services (FNS) as a retailer.¢ 3

(3) Group home's responsibility.Each group home must provide the local human services center (HSC) with a list of currently participating residents on a monthly basis.Included on this list is a statement signed by a responsible official of the group home attesting to the validity of the list.¢ 4

(A) When the group home is acting in the capacity of authorized representative, it is responsible for notifying the HSC of changes in income or other household circumstances required to be reported.[OAC 340:50-9-5]

(B) The group home has no responsibility to report changes for residents certified on their own behalf or through an authorized representative of their own choice.

(4) When participant leaves the group home.

(A) When a participant leaves the group home, the group home acting as an authorized representative or retaining use of the resident's food benefits must:

(i) notify the departing resident there may be benefits remaining in his or her Electronic Benefit Transfer (EBT) account.

(I) The departing household receives its full food benefit if no food benefits have been spent on behalf of that individual household.These procedures are applicable any time during the month.

(II) The group home accesses only half of the food benefits in the resident's EBT account prior to the 15^th of the month.

(III) If the resident remains in the facility after the 15^th day of the month, the remaining food benefits may be accessed on behalf of the resident.

(IV) When the household leaves after the 16th of the month and the food benefits have already been issued and used, the household does not receive any further food benefits for that month;

(ii) no longer act as authorized representative for that person;

(iii) inform the departing household they must go to the local Oklahoma Department of Human Services (OKDHS) HSC office to secure their own Access Oklahoma card;

(iv) deactivate immediately the Access Oklahoma card by calling the phone number shown on the back of the card when the resident leaves the group home; and

(v) notify the HSC office the person left the group home.

(B) Residents who applied on their own behalf and retained use of their own food benefits are entitled to keep the food benefits when they leave.

(C) The group home, if possible, provides the household leaving the facility with a Form 08FB038E, Changes in Household Circumstances, and advises the person to complete the form showing his or her new circumstances and to return the form to the local OKDHS HSC within ten calendar days.

(5) Group home liability.When the group home is acting as an authorized representative, the organization is responsible for any misrepresentation or fraud it knowingly commits in the certification of residents.

(A) As an authorized representative, the organization must be knowledgeable about the household's circumstances and carefully review these circumstances with residents prior to applying on their behalf.

(B) The organization is strictly liable for all losses or misuse of food benefits held on behalf of resident households and for all over issuances which occur while the households are residents of the group home.

(C) The group home is not liable for over issuances for residents certified on their own behalf or through an authorized representative of their own choice.

INSTRUCTIONS TO STAFF 340:50-5-27

Revised 6-1-102-1-2018

1.See 340:50-5-7(b)(2)(C)Refer to Oklahoma Administrative Code (OAC) 340:50-5-7.1(3).

2.These residents are certified using the same procedures that apply to all other households.

3.Prior to certifying any resident for food benefits, the worker verifies the group home is approved by the Developmental Disabilities Services Division (DDSD)(DDS) and meets the criteria,outlined inper OAC 340:50-5-7(b)(2)(C)340:50-5-7.1(3).Residents of approved group homes are approved to participate in the Supplemental Nutrition Assistance Program ifwhen otherwise eligible.The list of facilities approved by DDSDDDS is available on the DDSD Web siteInfonet under the DDS Job Function page.

4.At least once every calendar quarter the worker,staff designated by the county director of the local human services center (HSC), visits the group home to ensure the accuracy of the listings and that the Oklahoma Department of Human Services (OKDHS) records are correct.

PART 7. RELATED PROVISIONS

340:50-5-64. Work requirements

Revised 9-15-17

(a) Able-bodied adults without dependents (ABAWDs).ABAWDs who are members of eligible households receiving food benefits must be exempt from, or comply with work requirements to be eligible to participate as a member of any food benefit household for longer than three months, consecutive or otherwise, during any 36-month period.It is the worker's responsibility to explain to the applicant the household member's work requirements and responsibility.At each application the worker must establish that each adult household member, per Section 273.24(a) of Title 7 of the Code of Federal Regulations (7 C.F.R. § 273.24(a)):

(1) works continuously 20 hours or more per week, averaged monthly.The employment may be paid, in-kind, unpaid, or volunteer work with religious or community organizations;¢ 1

(2) participates in and complies 20 hours or more per week with:

(A) Workforce Innovation and Opportunity Act (WIOA) Program assignment;

(B) Trade Adjustment Assistance Program assignment; or

(C) Employment and Training (E&T) Program, not including job search.However, job search or job search training activities, when offered as part of other E&T program components, are acceptable as long as those activities comprise less than half the total required time spent in the components; ¢ 2 or

(3) meets an exemption from the work requirements per (b) of this Section.

(b) Good cause for failure to meet the ABAWD work requirement.When an ABAWD has good cause for failure to meet the required number of work or participation hours in a given month per (a) of this Section, the month does not count toward the time limit.Good cause applies to situations in which the person normally meets the ABAWD work requirement by working or participating in a work program, but does not due to circumstances beyond the person's control.Per 7 C.F.R. § 273.7(i) and Oklahoma Administrative Code (OAC) 340:50-5-92, circumstances beyond the person's control include, but are not limited to:¢ 3

(1) illness;

(2) illness of another household member sufficiently serious to require the presence of the ABAWD;

(3) unavailability of transportation; or

(4) an unanticipated emergency.

(c) Exemptions from the work requirements.Per 7 C.F.R. § 273.7 or 7 C.F.R. § 273.24(c), a person is exempt from the work requirement provision of the Supplemental Nutrition Assistance Program when the person is:

(1) younger than 18 years of age or 50 years of age and older;

(2) medically certified as physically or mentally unfit for employment.A person is medically certified as physically or mentally unfit for employment when he or she:

(A) receives permanent or temporary disability benefits issued by governmental or private sources.¢ 4

(B) is obviously mentally or physically unfit for employment.When it is not obvious that he or she is unfit, the person must provide documented evidence from medically qualified sources to substantiate the medical exemption.¢ 5

(i) Medically qualified sources may include, but are not limited to a:

(I) licensed or certified psychologist, therapist, counselor, or social worker;

(II) physician or physician's assistant;

(III) nurse or nurse practiioner; or

(IV) designated representatives of a physician's office.

(ii) The documented evidence must indicate the person has a physical or mental condition that limits the person's ability to work.

(iii) When the medical exemption is temporary, the person is required to comply with work requirements when released by a medically qualified source to return to work; or

(C) is chronically homeless;

(3) a parent or other member of a household with responsibility for care of an incapacitated person of any age;¢ 6

(4) pregnant;

(5) receiving or applied for unemployment insurance benefits;¢ 7

(6) a regular participant receiving treatment for drug or alcohol addiction in a rehabilitative program on a resident or non-resident basis;¢ 8

(7) an eligible student enrolled at least half-time in any recognized school, training program, or institution of higher education.This includes refugees participating in a refugee-specific training program approved, funded, or operated by the Office of Refugee Resettlement;¢ 9

(8) registered for, or participating in Temporary Assistance for Needy Families (TANF) Work;

(9) employed a minimum of 30 hours per week or receiving weekly earnings that equal the minimum hourly rate under the Fair Labor Standards Act of 1938, as amended, multiplied by 30 hours; or¢ 10

(10) a parent or other adult included in the food benefit household with a minor child less than 18 years of age.¢ 11

(d) Participation without time limits.Food benefit participation without time limits applies to a person who:

(1) is exempt;

(2) works continuously 20 hours or more per week, averaged monthly.The employment may be paid, in-kind, unpaid, or volunteer work with religious or community organizations; or¢ 12

(3) participates in, and complies with:

(A) WIOA Program assignment;

(B) Trade Adjustment Assistance Program assignment; or

(C) E&T Program, not including job search.However, job search or job search training activities when offered as part of other E&T program components, are acceptable as long as those activities comprise less than half the total required time spent in the components.¢ 2

(e) Participation with time limits.Persons who are not exempt or fail to comply with work participation requirements are eligible for only three months, consecutive or otherwise, during any 36-month period.Once the person reaches the three-month eligibility limit, eligibility can be regained for at least an additional three consecutive months when the person:¢ 13

(1) works 80 hours or more in any 30-day period; or¢ 14

(2) participates for 80 hours or more in, and complies with:

(A) WIA Program assignment;

(B) Trade Adjustment Assistance Program assignment; or

(C) E&T Program, not including job search.

(f) Persons who regain eligibility.A person can regain eligibility only one time for an additional three consecutive months during the 36-month period by meeting the requirements of (e)(1) or (2) of this Section.A person who regains eligibility maintains eligibility by complying with the requirements listed in (d) of this Section.If eligibility is subsequently lost, the person may receive food benefits only when he or she meets one of the exemptions listed in (c) of this Section or the 36-month period expires.¢ 15

(g) ABAWD work requirement waiver prohibition.Per 7 C.F.R. § 273.24(f), states are allowed to request an ABAWD work requirement waiver in certain instances.Effective October 1, 2013, Section 241.3 of Title 56 of the Oklahoma Statutes prohibits the Oklahoma Department of Human Services from requesting an ABAWD work requirement waiver from the United States Department of Agriculture.

INSTRUCTIONS TO STAFF 340:50-5-64

Revised 9-15-172-1-18

1.Working an average of 20 hours per week or 80 hours per month for some form of compensation is considered meetingmeets the work requirement.

2.The worker refers non-exempt able-bodied adults without dependents (ABAWDs)(ABAWD) in Oklahoma and Tulsa counties to the contracted service provider for the Supplemental Nutrition Assistance Program Employment and Training Program.The ABAWD'sABAWDs' participation in the program is voluntary.

3.Other circumstances beyond the person's control may include when the person's employer closes the business for one or more days because of a holiday or a natural disaster.

4.Examples of federal and state programs based on disability are:

(1) vocational rehabilitation;

(2) Veterans Benefits Administration disability compensation;

(3) Social Security Administration (SSA) disability benefits; and

(4) SSA Supplemental Security Income.

5.A doctor's statement providing a diagnosis is best, but when the client is unable to obtain a doctor's statement, a statement from another medically qualified source is sufficient.

6.More than one household member may be exempt as caretaker for the same person, as long aswhen they share caretaker responsibility.

7.This exemption includes persons who are involved in the unemployment insurance benefits appeals process.

8.Alcoholics Anonymous or Narcotics Anonymous meetings qualify when they are a part of the treatment plan.

9.(a) Refer to Oklahoma Administrative Code (OAC) 340:50-5-45 to determine student eligibility.

(b) In this instance, the term 'refugees' refers to all populations served by the Office of Refugee Resettlement including parolees, asylees, and special immigrant Visa holders.

10.A person working 30 or more hours per week automatically qualifies as exempt regardless of the amount earned or how the person is paid, such as work performed in exchange for rent or other goods and services.

(1) The amount a person earns is relevant in determining exempt status only when the employed or self-employed person works less than 30 hours per week.

(2) A person who works less than 30 hours per week must earn weekly wages at least equal to the federal minimum wage times 30 hours in order to qualify as exempt.

(3) Volunteer work or court-ordered community service is not considered.

11.When the other adult purchases food and prepares meals separate from the child, he or she is not eligible for this exemption.

12.Court-ordered community service is not considered.

13.The 36-month period begins when the first full month benefits are received and the person is not meeting the work requirement or not considered exempt.Any initial 'K' month in which an able-bodied adult without dependentsABAWDdoes not receive a full month of benefits must not be considered a countable month.For example, when benefits are prorated during the month of application, the prorated month is not a countable month.

14.Eligibility may be regained only after the person has received the initial-three months of benefits without being exempt or meeting the work requirement.A person cannot regain eligibility while receiving food benefits.

15.The additional-three months must be consecutive.When the person receives less than three months, the person is not entitled to receive the additional month(s) at a later date.

340:50-5-86. Persons exempt from work registration

Revised 6-1-09

Persons exempt from work registration include:

(1) Caretakers.A caretaker is a parent or other household member responsible for the care of a dependent child under age six or an incapacitated person.If the dependent child reaches age six within a certification period, the person responsible for the care of the child must comply with the appropriate work registration requirements as part of the next scheduled re-certification process unless he or she is otherwise exempt.

(2) Applicants for or recipients of unemployment compensation.

(A) A person who has applied for unemployment insurance benefits (UIB) is exempt from the requirement to register for work during the application process.This is verified by seeing the work registration card.Recipients of UIB are exempt from registration while receiving compensation.

(B) The household or individual household member is disqualified from participation in the Supplemental Nutrition Assistance Program (SNAP) for a period not to exceed two months if a household member is disqualified by the Oklahoma Employment Security Commission (OESC) for UIB for failure to:

(i) meet OESC employment assessment;

(ii) supply information to OESC for availability for work determination;

(iii) report for a job interview referred to by OESC; or

(iv) accept a suitable offer of employment when referred by OESC.

(C) Failure to comply with procedures described in OAC 340:50-5-88 apply to this exception.

(3) Physically or mentally incapacitated.Persons who are physically or mentally incapable of gainful employment on a permanent or temporary basis and food benefit applicants participating in federal or state programs based on disability are considered exempt.Other persons claiming exemption as unfit for employment must, in the absence of physical evidence, obtain documented evidence from medically qualified sources to substantiate a disability.Persons claiming temporary disability are required to register when they become able to accept employment.

(4) Addicts and alcoholics.A registered participant in a drug addiction or alcohol treatment and rehabilitative program, on a resident or non-resident basis is exempt.This may be verified through organizations or institutions operating the program.

(5) Students.A student is defined as a person enrolled at least half-time in any recognized school, training program, or institution of higher education.Only students who meet the criteria in OAC 340:50-5-45 may participate in SNAP.Students are exempt from work registration requirements and retain their student classification during school vacation or breaks providing the person plans to return to school the next term excluding summer school.Persons who do not qualify as students include:

(A) persons not enrolled at least half-time or who experience a break in their enrollment status due to graduation, expulsion, suspension, or who drop-out, or do not intend to return to school; and¢ 1

(B) persons enrolled in correspondence courses.

(6) Temporary Assistance for Needy Families (TANF) Work Program participants.Information contained in the TANF case record documents whether a household member is registered for or participating in the TANF Work Program.A household member disqualified from TANF because of TANF Work Program requirements is disqualified from participation in SNAP for a period not to exceed two months.The household member must reside in the human services center (HSC) boundaries participating in SNAP Job Search and the TANF disqualification resulted from an activity parallel to SNAP Employment and Training (E&T) Program activities described in OAC 340:50-5-88.

(7) Employed persons.Persons who are employed and working a minimum of 30 hours weekly or receiving weekly earnings equal to the federal minimum wage multiplied by 30 hours are exempt.Verification of the number of hours employed may be obtained from wage stubs, employers, or the verified hourly wage multiplied by 30.¢ 2

(A) Persons engaged in hobbies, volunteer work, or other activities for which they receive little or no payment cannot be considered gainfully employed regardless of the amount of time spent in such activities.

(B) Migrant and seasonal farm workers who are under contract or similar agreement with an employer or crew chief to begin employment within 30 calendar days are exempt as employed persons.

(8) Self-employed persons.Persons who are self-employed working a minimum of 30 hours weekly or receiving weekly earnings equal to federal minimum wage multiplied by 30 hours are exempt.

(A) Verification of the amount of income from self-employment is sufficient to establish this exemption, provided the amount of income appears to be consistent with a conclusion of full-time employment, 30 hours per week.

(B) If the income is not sufficient to conclude full-time employment, the client must cooperate with the worker in establishing the income received is at least sufficient to be considered gainful employment and the volume of work the client is doing justifies a determination the self-employment enterprise is a full-time job for the purpose of this exemption.

(9) Other exemptions.A 16 or 17 year old person who is not the head of household is exempt.

INSTRUCTIONS TO STAFF 340:50-5-86

Revised 6-1-092-1-18

1.When information is questionable, the worker contacts the institution or place of training to determine if the schoolinstitution or training program is recognized by a federal or local government agency, and if the student's hours meet the half-time requirement.

2.The employment may be paid, unpaid, in-kind, unpaid, or volunteer work for a religious or community organizations.

SUBCHAPTER 7. FINANCIAL ELIGIBILITY CRITERIA

PART 3. INCOME

340:50-7-29. Income inclusions

Revised 9-15-17

(a) Sources of income considered.The worker considers all household income, unless specifically excluded per Section 273.9(c) of Title 7 of the Code of Federal Regulations (7 § C.F.R. 273.9(c)) and Oklahoma Administrative Code (OAC) 340:50-7-22, in determining monthly gross income.Income is classified as earned or unearned.

(1) When one or more household members are absent from the home, before deciding whether to consider the absent household member's income, the worker must determine if the person returns to the home for part of the month.

(A) Per OAC 340:50-5-2, the worker does not include the absent member in the benefit amount and only counts the portion of his or her income that he or she makes available to the rest of the household when the household member does not return for part of the month.¢ 1

(B) When the household member returns for part of each month, the worker includes him or her in the benefit amount and counts all of his or her income unless excluded per OAC 340:50-7-22.

(2) Per OAC 340:50-5-5, the household has the option of including a child receiving a foster payment that includes a payment for kinship care, or a Developmental Disability Services (DDS) room and board payment in the food benefit.When the household chooses not to include the child in the food benefit, the worker does not count the child's income, including the foster or DDS room and board payment.

(3) When the household adopts a child previously in the custody of the Oklahoma Department of Human Services (DHS) and receives an adoption subsidy payment for the child, the worker includes the child in the food benefit and counts the child's income, including the adoption subsidy payment.¢ 2

(4) When a member of the household becomes the guardian of a child and receives a guardianship payment from DHS, the payment is considered as income. The child for whom the payment is received must be included in the food benefit.

(b) Earned income.Per 7 C.F.R. § 273.9(b)(1), earned income is income a household receives in the form of wages, commission, self-employment, or training allowances, and for which a person puts forth physical labor.Temporary disability insurance payments and temporary workers' compensation payments are considered earned income when payments are employer-funded and the person remains employed.The types of earnings listed in (1) through (4) of this subsection, including money from the sale of whole blood or blood plasma or a DDS payment to an extended family care provider for services rendered in addition to the child's room and board payment, are considered earned income.

(1) Wages.Wages and salaries include sick pay paid by the employer to an employee who plans to return to work when recovered, excess benefit allowance payments, ¢ 3 and wages garnished or diverted to pay a third party for a household's expenses.¢ 4Countable wages for military personnel include any allowance included on the earnings statement, such as the Basic Allowance for Housing (BAH) and the Basic Allowance for Subsistence (BAS).

(2) Self-employment.Refer to OAC 340:50-7-30 for self-employment income procedures.

(3) Title I payments of the Domestic Volunteer Services Act.Countable earned income includes payments paid to a household member under Title I of the Domestic Volunteer Services Act of 1973 as amended per Public Law (P.L.) 93-113, unless excluded per OAC 340:50-7-22.

(4) On-the-job training (OJT).The worker counts income earned in OJT positions as earned income.This includes OJT provided per Section 3(44) of the Workforce Innovation and Opportunity Act of 2014, P.L. 113-128 for persons 19 years of age or older.¢ 5

(c) Unearned income.In general, unearned income is income a household receives and is not in the form of wages, self-employment, or training allowances, and for which a person does not put forth physical labor.The income listed in (1) through (6) of this subsection, while not all inclusive, are considered unearned per 7 C.F.R. § 273.9(b)(2).

(1) Assistance payments.The worker counts payments from a federally-aided public assistance program, such as Supplemental Security Income (SSI), Temporary Assistance for Needy Families (TANF), or assistance programs based on need, such as State Supplemental Payments, as unearned income.¢ 6

(A) A household's food benefit amount does not increase when the public assistance benefit the household receives under a federal, state, or local means-tested public assistance program is reduced, suspended, or closed because the public assistance program imposed a penalty due to an intentional program violation determined as fraud or a household member's failure to comply with a requirement of that program.

(i) To impose a food benefit sanction, the person must be certified for Supplemental Nutrition Assistance Program (SNAP) benefits at the time of the failure to comply and receiving regular benefits from the other program at the time fraud occurred or the household failed to comply with a substantive program requirement.

(ii) Examples of means-tested public assistance programs include SSI and TANF.

(iii) Substantive requirements are behavioral requirements of that program designed to improve the well-being of the household.For TANF, this includes:

(I) complying with TANF Work requirements per OAC 340:10-2.OAC 340:10-2-2 explains the TANF penalty considered for SNAP when the household fails to comply with TANF Work activities;¢ 67

(II) cooperating to obtain child support per OAC 340:10-10-5;

(III) providing a Social Security number per OAC 340:10-12-1;

(IV) ensuring school-age children regularly attend school per OAC 340:10-13-1;

(V) verifying children meet immunization requirements per OAC 340:10-14-1; and

(VI) not using the TANF benefit in a prohibited business per 340:10-1-3.

(iv) Procedural requirements that do not trigger a penalty include failing to:

(I) provide verification;

(II) complete an interview; or

(III) complete a benefit renewal.

(v) When a worker is not able to obtain the necessary information and cooperation from another federal, state, or local means-tested welfare, or public assistance program to comply with the provision in (A) of this paragraph, DHS is not held responsible.The worker must make a good faith effort to get the needed information and record the details and results of this effort in the case file.

(vi) The worker does not reduce, suspend, or close the household's current food benefit amount when the benefits under another assistance program are decreased.

(vii) When the worker adds eligible members to the food benefit, the benefit must be adjusted regardless of whether the household is prohibited from receiving benefits for the additional member under another federal, state, local welfare, or public assistance means-tested program.

(viii) Changes in household circumstances not related to the penalty imposed by another federal, state, local welfare, or public means-tested assistance program are not affected by the provision in (A) of this paragraph.

(ix) The application of the provision in (A) of this paragraph applies for the duration of the imposed penalty or until DHS cannot determine the amount of the penalty.For example, when the other program benefit closes or the person becomes ineligible for a non-penalty related reason, the worker stops imposing the food benefit sanction.

(x) SNAP sanctions extending beyond one year must be reviewed at least annually to determine if the sanction continues to apply.

(B) The provision in (A) of this paragraph does not apply to persons or households subject to disqualification from SNAP for noncompliance with a comparable work requirement per Title IV of the Social Security Act or an unemployment compensation work requirement.

(2) Pension and Social Security.Annuities, pensions, retirement, veterans' or disability benefits, workers' or unemployment compensation, survivors' or Social Security benefits, and strike benefits are unearned income.The worker considers disability payments as:¢ 6

(A) unearned income when the person is no longer considered an employee of the company and an agency outside of the company pays the disability benefits; and

(B) earned income when the person is still considered an employee of the company and the company pays the disability benefits.

(3) Support and alimony.The worker counts support and alimony payments paid directly to the household from non-household members as unearned income.¢ 78The worker also counts money deducted or diverted to a third party to pay a household expense as unearned income when the court order directs the payment be made to the household.The worker does not count money the court order states must be paid to a third party as income.¢ 89

(4) Grants, dividends, royalty, and interest payments.Payments from government sponsored programs, such as Agricultural Stabilization and Conservation Service Programs, grants, dividends, royalties, interest, and all other direct money payments from any source construed to be a gain or profit are considered income.The worker treats income from these sources as unearned income.The household must provide proof of income from these sources so income can be averaged to determine monthly countable income.

(5) Monies withdrawn or dividends that are or could be received by a household from trust funds.Dividends the household has the option of either receiving as income or reinvesting in the trust are considered income in the month they become available to the household.

(6) Department of Veteran's Affairs (VA) Aid and Attendance.When a person receives VA Aid and Attendance income and does not pay someone outside of the food benefit household to care for him or her, this is countable income.Any portion of the VA Aid and Attendance paid to someone outside of the food benefit household for care is excluded.

(d) Income of excluded household members.Per OAC 340:50-5-10.1, excluded household members are termed as disqualified or ineligible.The worker does not consider the needs of a disqualified or ineligible household member when determining the household's size for purposes of assigning a benefit level to the household or comparing the household's monthly income with the income eligibility standard per 7 C.F.R. § 273.11(c)(2)(iv).

(1) Disqualified household members.The worker counts the disqualified household member's income in its entirety as available to the remaining household members per 7 C.F.R. § 273.11(c)(1)(i).The worker does not prorate utility, medical, dependent care, child support expenses, or excess shelter deductions.Per OAC 340:50-5-10.1, disqualified household members are those excluded for:

(A) committing an intentional program violation per Oklahoma Administrative Code (OAC) 340:50-5-7 or 340:50-15-25;

(B) meeting fleeing felon criteria per OAC 340:50-5-10.1; or

(C) being a probation or parole violator per OAC 340:50-5-10.1.

(2) Ineligible household members.The worker prorates the income of ineligible household members among all household members per 7 C.F.R. § 273.11(c)(2)(ii).

(A) Per OAC 340:50-5-10.1, ineligible household members are those excluded because they do not meet a program requirement, such as:

(i) failure to obtain or refusal to provide a Social Security number per OAC 340:50-5-68;

(ii) not being a citizen or qualified alien per OAC 340:50-5-67; or

(iii) being an able-bodied adult without dependents and not meeting work requirements per OAC 340:50-5-64.

(B) The worker counts a pro rata share of the ineligible household member's income as income available to the remaining members by first subtracting the allowable income exclusions per OAC 340:50-7-22 from the ineligible member's income and dividing the income evenly among the eligible household members and the ineligible member.

(C) The worker counts all but the ineligible member's share as income available to the remaining household members.The earned income deduction, per OAC 340:50-7-31 and DHS Appendix C-3, Maximum Food Benefit Allotments and Standards for Income and Deductions, applies to the prorated income attributed to the household when it was earned by the ineligible member.

(D) The portion of the household's allowable shelter, child support, and dependent care expenses paid by or billed to the ineligible member is divided evenly among the household members, including the ineligible member.All but the ineligible member's share is considered a deductible shelter expense for the remaining household members, with the exception of utility expenses per 7 § C.F.R. 273.9(d)(6)(iii)(F).When the household is responsible for utility expenses, the household is allowed the full utility standard for which it qualifies per OAC 340:50-7-31.¢ 910

(E) The portion of the household's allowable shelter, child support, and dependent care expenses paid by or billed to the ineligible member is divided evenly among the household members, including the ineligible member.All but the ineligible member's share is considered a deductible shelter expense for the remaining household members, with the exception of utility expenses per 7 C.F.R. § 273.9(d)(6)(iii)(F).When the household is responsible for utility expenses, the household is allowed the full utility standard for which it qualifies per OAC 340:50-7-31.¢ 9

INSTRUCTIONS TO STAFF 340:50-7-29

Revised 9-15-172-1-18

1.(a) Examples of household members who do not return for part of the month include persons away from home due to military deployment or employment in another state.

(b) When the absent member makes all or part of his or her income available to the rest of the household, the worker counts it as a contribution.

(c) When the absent member deposits his or her wages in a joint bank account, the worker only counts the portion of the wages the absent member states is for the household's use.

2.The worker counts adoption subsidy payments as income to the parent, not the child.

(1) The worker documents adoption subsidy payments in Family Assistance/Client Services (FACS) case notes as income for the parent but enters the income in the FACS Income tab for the child when the child is included in the food benefits.

(2) When the child is not included in the food benefit or when the parent is an ineligible or disqualified household member, the worker enters the income in the FACS Income tab for the parent as a contribution and documents the reason in FACS case notes.

3.When the employer adds money to the employee's gross income as a benefit allowance to pay for a reimbursable expense, such as insurance or dependent care, the worker counts the regular gross earnings plus any excess money left after deducting the reimbursable expense as income.For example, when a person:

(1) receives a $300 benefit allowance to purchase insurance and uses the entire amount to purchase the insurance, none of the benefit allowance is counted as income;

(2) receives a $300 benefit allowance but only purchases $280 in insurance, the worker counts the remaining $20 as income;

(3) has an option of purchasing insurance with a $300 benefit allowance ifwhen insurance was purchased or receiving $150 of the $300 benefit allowance as cash ifwhen insurance is not purchased, the worker counts the $150 as an excess benefit allowance when the person chooses not to purchase insurance; or

(4) receives any excess benefit allowance at the end of the year instead of monthly, the worker excludes the one-time payment as income as it is considered a non-recurring lump sum payment, per Oklahoma Administrative Code (OAC) 340:50-7-22(10)(C).

4.Examples of wages garnished or diverted and paid to a third party for a household's expenses include wages withheld to pay:

(1) child support;

(2) rent, even when the employer is also the landlord; or

(3) the employer for uniforms or tools required to be purchased for use on the job.

5.This provision does not apply to household members 18 years of age and younger who are under the parental control of another adult household member, regardless of school attendance.For the purpose of this provision, earnings include monies paid under the Workforce Investment Act and monies paid by the employer.

6.When unearned income, such as Supplemental Security Income (SSI) or Social Security Administration (SSA) benefits, is received by a third party, it the income is counted as income to the person for to whom it is legally owed.Examples include:

(1) when a mother applies for food benefits for herself and her 10 year-old son.The son receives SSA benefits as a dependent of his disabled father and his father is the payee for his son's SSA benefit.Since the son is included in his mother's food benefit application, the portion of the SSA benefit legally owed to the son is counted as unearned income for the food benefit household; or

(2) when a child receives SSI income and resides half of the month with his mother and the other half with his father.The child and his father receive food benefits and the mother is the payee for the child's SSI income.Since the SSI is legally owed to the child, the SSI is counted as unearned income for the food benefit household.

67.Refer to OAC 340:10-2-2 Instructions to Staff # 4(6) to determine when theTemporary Assistance for Needy Families (TANF) penalty income is removed.

78.The worker counts child support as income to the parent, not the child.The worker counts cash medical payments as income when the child does not receive a SoonerCare (Medicaid) benefit.The worker verifies if the household receives cash medical by viewing the KI1 screen.

(1) The worker documents child support in FACS case notes and codes it as income in FACS on the Income tab for the child, even though it is considered income to the parent, ifwhen the child is included in the food benefits unless:

(A) child support is paid to a parent whose child is no longer in the food benefit; or

(B) the parent is an ineligible or disqualified household member.

(2) In the circumstances listed in (1)(A) or (B) of this Instruction, the worker codes the child support on the Income tab for the adult as a contribution.

89.(a) Example of when a payment to a third party counts as income.The household receives $400 in court-ordered monthly child support payments.At benefit renewal the household reports the non-custodial parent now pays $200 of the $400 directly to a creditor of the food benefit household.In this instance the worker continues to count the entire $400 as unearned income because the payment is from money owed to the household.

(b) Example of when a payment to a third party does not count as income.The household receives $400 in court-ordered child support.In addition, the court order directs the non-custodial parent to pay $200 to a bank for repayment of a loan.The worker does not count the additional $200 as income because the court order did not direct this payment be made to the household.

910.Example of when the household size is four, including the disqualifiedineligible household member.TheWhen the rent is $400, and the household pays heating and cooling costs, the worker divides the rent by four and enters $300 in the 'shelter cost' field C54 and S in the 'utility indicator' field C59 of the FACS Shelter tab.

340:50-7-30. Self-employed households

Revised 9-15-17

(a) Person considered self-employed.A person is considered self-employed when:

(1) he or she declares himself or herself to be self-employed;

(2) there is an employer/employee relationship and the employer does not withhold income taxes or Federal Insurance Contributions Act (FICA), even when required by law to do so; or

(3) the employer withholds taxes and the person provides proof he or she files taxes as self-employed.

(b) Self-employment income. Self-employment income received by household members whose income is derived from a self-employment enterprise owned solely or in part by the household member or when the household member works for an employer, but is considered self-employed per (a) of this Section, is treated per (1) through (10) of this subsection.

(1) Capital gains.The worker counts as income the proceeds from the sale of capital goods or equipment and calculates it in the same manner as a capital gain for federal income tax purposes.Even though a percentage of the proceeds from the sale of capital goods or equipment are taxed for federal income tax purposes, the worker counts the full amount of capital gain as income.

(2) Profit sharing.Households who operate S corporations, general or limited partnerships, or limited liability companies may receive profit sharing that is reported on the household's personal income tax return.When a household member:

(A) actively participates in the operations, the income from profit sharing is considered part of the household's self-employed earned income; or

(B) does not actively participate in the operations, the income from profit sharing is considered part of the household's unearned income.

(3) Self-employed farm income.To be considered a self-employed farmer, the farmer must receive or anticipate receiving annual gross proceeds of $1,000 or more from the farming enterprise.

(A) Farming is defined as cultivating or operating a farm for profit either as owner or tenant.

(B) A farm includes stock, dairy, poultry, fish, fruit, truck farms, or plantations, ranches, ranges, or orchards.

(i) A fish farm is an area where fish are grown or raised, artificially fed, protected, and cared for, and does not include an area where they are only caught or harvested.

(ii) A plant nursery is a farm for purposes of this definition.

(C) Per Section 273.11(a)(2)(ii) of Title 7 of the Code of Federal Regulations (7 C.F.R. § 273.11(a)(2)(ii)), when the cost of producing self-employment farm income exceeds the income received, the worker offsets the losses against other countable household income by:

(i) first offsetting the losses against other self-employment income; and

(ii) then offsetting any remaining farm self-employment losses against the total amount of earned and unearned income received by the household after applying the earned income deduction per Oklahoma Administrative Code (OAC) 340:50-7-31(a)(2).¢ 1

(4) Monthly self-employment income.Self-employment income received on a monthly basis that represents a household's annual support, is normally averaged over a 12-month period.When the averaged amount does not accurately reflect the household's actual monthly circumstances because the household experienced a substantial increase or decrease in business, the worker calculates the self-employment income based on anticipated earnings.

(5) Seasonal self-employment income.Self-employment income intended to meet the household's needs for only part of the year is averaged over the period of time it is intended to cover.For example, the income of self-employed vendors who work only in the summer and supplement their income from other sources during the balance of the year is averaged over the summer months rather than a 12-month period.

(6) Annualized self-employment income.Self-employment income that represents a household's annual support must be annualized over a 12-month period, even when the income is received in a shorter period of time.For example, self-employment income received by crop farmers must be averaged over a 12-month period when the income represents the farmer's annual support.

(A) When the household's self-employment income has been received for less than a year, the income must be averaged over the period of time received and the monthly amount projected for the coming year.¢ 12

(B) When the household's self-employment income has been received for a short time and there is insufficient data to make a reasonable income projection, the worker does not consider income from this source until the benefit renewal or certification renewal month.At benefit renewal or certification renewal, the worker averages the income over the number of months received until a full year's information is available.¢ 23

(7) Determining net monthly annualized self-employment income.When the household has business expenses associated with its self-employment income, the business expenses must be deducted before determining if the household meets the maximum gross income standards per Oklahoma Department of Human Services(DHS) Appendix C-3, Maximum Food Benefit Allotments and Standards for Income and Deductions.When the household does not have business expenses, the gross self-employment income is used.

(A) When the household filed an income tax return on its self-employment income for the most recent year, the worker uses the gross self-employment income shown on the income tax return, subtracts 50 percent of the income for claimed business expenses, and divides the net self-employment income by the number of months to be averaged per 7 C.F.R. § 273.11(b)(3)(iv).¢ 34

(B) 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 worker computes gross self-employment income, including capital gains, using the household's self-employment business records or employer records, when applicable.

(ii) When the household declares incurred business expenses, the worker subtracts 50 percent of the gross self-employment income as business expenses per 7 C.F.R. § 273.11(b)(3)(iv).When the household did not incur business expenses, a business expense deduction is not given.

(iii) The worker then divides the net self-employment income by the number of months to be averaged.

(C) The worker adds monthly net self-employment income to all other earned income received by the household.When the household reports a loss instead of a profit on the business, the worker does not deduct the loss from other household income.

(i) The worker adds the total monthly earned income, less the earned income deduction per DHS Appendix C-3 to all other monthly income received by the household.

(ii) The worker subtracts the standard deduction, dependent care, and shelter costs as for any other household per OAC 340:50-7-31 to determine the monthly net income of the household.

(8) Anticipated income.When a household who would normally have the self-employment income annualized experiences a substantial increase or decrease in income, the worker does not calculate self-employment income on the basis of prior earnings, such as income tax returns.Instead, the worker calculates the self-employment income using only the income that can reasonably be anticipated to project future earnings.The worker uses procedures in (b)(7)(B) and (C) of this Section to determine net monthly self-employment income.

(9) Household with income from boarders.A household that operates a commercial boarding house may be considered a food benefit household and self-employed per (7) of this subsection.A household with boarders or roomers that is not a commercial boarding house may receive food benefits per (A) through (C) of this paragraph.

(A) The worker excludes a person paying a reasonable amount for room and board from the household and counts payments from the boarder as self-employment income when determining the household's eligibility and benefit level.

(i) The income from a boarder includes all direct payments to the household for room and meals, including contributions to the household for part of the household shelter expense.

(ii) The worker does not count expenses paid directly by a boarder to someone outside the household as income to the household.

(B) The worker excludes 50 percent of the boarder payment as the cost of doing business.

(C) The worker includes the net income from self-employment with other earned income minus the earned income deduction.

(i) The worker computes the shelter cost incurred by the household, even when the boarder contributes part of the shelter expense, to determine if the household qualifies for a shelter deduction.

(ii) The shelter and utility cost must not include any expense billed to and directly paid by the boarder to a third party.

(10) Income from rental property.The worker considers income received from rental property as self-employment income.

(A) The worker treats rental income as earned income when a member of the household actively manages the property an average of at least 20 hours per week.

(B) When a household member does not actively manage the property at least 20 hours each week, the worker considers the income as unearned.The person is eligible for business expenses per (7) of this subsection.

INSTRUCTIONS TO STAFF 340:50-7-30

Revised 9-15-172-1-18

1.(a) Example:The food benefit household's income includes self-employment farm income and non-farm self-employment income.The household files Form 1040, Schedule F for the farm income and Schedule C for the non-farm income.Schedule F, line 34 shows a loss of $15,500 and Schedule C, line 7 shows $37,500 in non-farm self-employment income.The worker:

(1) first determines the net non-farm income by subtracting 50 percent for business expenses.This equals $18,750;

(2) then subtracts the $15,500 from the net non-farm income to offset the farm income losses.This equals $3,200 in yearly self-employment income.$3,200 divided by 12 equals $267 in monthly self-employment;

(3) enters $267 in the self-employment income field and zero in the business expense field in the Interview Notebook Income tab of the Family Assistance/Client Services (FACS) system; and

(4) documents income calculations in FACS case notes.

(b) Example:The food benefit household's income includes self-employment farm income and earnings.The household files Form 1040 with Schedule F for the farm income.Schedule F, line 34 shows a farm loss of $12,000 for the year.$12,000 divided by 12 equals $1,000 per month in farm losses.The household furnished the last 30-calendar days of earnings that, after calculation, equal $2,500 per month.The worker:

(1) subtracts the $1,000 in farm losses from the $2,500 montly earnings.This calculates as $1,500 of monthly countable income;

(2) does not enter any self-employment income or business expenses in FACS;

(3) enters $1,500 in the earned income field of the FACS Interview Notebook's Income Tab for the person; and

(4) documents income calculations in FACS case notes.

12.(a) To average the income and expenses when the self-employment is received for less than a full year, the worker divides the total income by the number of months received.For example, when the household receives varied self-employment income from February 18th to the application month of November, the worker averages the income from February, the first month the business started, through October, the last complete month when computing an annualized figure for new self-employment income.

(b) The worker documents in the Family Assistance/Client Services (FACS) Case Notes how income was calculated and why the full 12-month average was not used.

23.(a) When the person is self-employed as a contract laborer, receives a set salary that does not vary, and has been employed for a period of time where sufficient data is available from the employer to make a reasonable income projection, but not sufficient to annualize income, earnings are anticipated by multiplying the amount received by the appropriate conversion factor.For example, the client starts a new self-employment contract labor job and he or she works 40 hours per week at $10 per hour.The client received two-weekly checks in the amount of $400 each.The month is not over, but the employer states the person will continue to be paid $400 weekly.It is correct to use $400 X 4.3 to anticipate the person's monthly income.

(b) At mid-certification renewal or certification renewal, the worker averages the income over the number of months received until a full year's information is available.

34.Self-employment income tax return forms include, but are not limited to:

(1) Form 1040 with Schedule C for sole proprietors and some limited liability companies.Use the gross income shown on line 7 of Schedule C and allow a 50 percent deduction for claimed business expenses;

(2) Form 1065 and/or Form 8865 with Schedule 8865 K-1 for partnerships.Use the gross income shown on line 1 of Schedule K-1 and allow a 50 percent deduction for claimed business expenses;

(3) Form 1120-S with Schedule K-1 for S corporations;.Use the gross income shown on line 1 of Schedule K-1 and allow a 50 percent deduction for claimed business expenses; or

(4) Form 1040 with Schedule F for farmers.Use the gross income shown on line 9 of Schedule F to determine farm income and line 34 to determine the net loss or profit of the farm.When line 34 shows a loss, offset the loss per (b)(3)(C) of this Section.When line 34 shows a profit, use line 9 and determine net monthly income the same as all other self-employment income.

PART 5. DETERMINATION OF INCOME

340:50-7-46. Converting to monthly income

Revised 9-15-17

(a) Converting income.When the household receives income more often than monthly, the worker converts the income to a monthly amount as indicated in (1) through (5) of this subsection.When the amounts to be converted differ, such as fluctuating daily, weekly, or biweekly amounts, the worker averages the income per (c) of this Section.The worker carries cents through all steps and then rounds the monthly income amount to the nearest dollar with one cent through 49 cents rounded down and 50 cents through 99 cents rounded up.¢ 1

(1) Daily.The worker converts income received on a daily basis to a weekly amount.When there is a consistency in days worked each week and a regularity of pay dates, the worker multiplies the weekly income by 4.3.When there is no consistency, refer to (5) of this subsection for irregular income processing.¢ 2

(2) Weekly.The worker multiplies income received weekly by 4.3.

(3) Twice a month.The worker multiplies income received twice a month by 2.

(4) Biweekly.The worker multiplies income received every two weeks by 2.15.

(5) Irregular income.The worker does not convert income received at irregular intervals by 4.3, 2, or 2.15, when there is no consistency in the work offered or when pay is received.Instead, the worker adds all irregular income received in the calendar month together to arrive at a monthly average.When more than one month of irregular income is available, the worker totals the income and divides it by the number of months used.¢ 3

(b) Anticipating income.For the purpose of determining the household's eligibility and monthly benefit allotment, the worker takes into account the income already received by the household and any anticipated income the household is reasonably certain to receive during the certification period per Section 273.10(c)(1) of Title 7 of the Code of Federal Regulations (7 C.F.R. § 273.10).

(1) Application month income.In the application month, the household's anticipated income may be less than a full month's wages.In this case, the worker uses actual or actual anticipated income for the month of application.When the person receives an extra paycheck in the application month due to a third or fifth week and the income is ongoing, the worker converts the income to anticipated income for the application month.For the remaining months of the certification period, the worker averages and converts the income to a monthly amount.¢ 4

(2) Uncertain income.The worker does not count income when the date and amount to be received is uncertain.Examples of uncertain income include, when a household's anticipated income is from a new job and the date and amount of the first paycheck is not known or when a household member recently applied for public assistance or unemployment benefits and does not know if or when the initial payment may be made.

(A) The worker does not consider the anticipated payment unless there is reasonable certainty concerning the month the payment will be received and the amount of the payment.

(B) When some, but not all, household income is not known, the portion that can be anticipated with reasonable certainty must be considered as income.

(C) When the worker can reasonably anticipate income receipt, but the monthly amount fluctuates, the worker may elect to average the income per (c) of this Section.

(D) Households are advised to report all changes in gross monthly income as required.

(3) Income received in the past 30-calendar days.Income received during the past 30-calendar days may be used as an indicator of income anticipated to be available to the household during the next certification period.Past income is not used to anticipate future income for any month in which an income change occurred, can be anticipated, or terminated.¢ 5

(4) Regular employment.When the head of the household or other members of the household have regular employment, income from previous months is a good indicator of the amount of income to anticipate for the application month and subsequent months.When the household or collateral contact supplies information indicating future income will differ substantially from the previous month's income, the worker uses the information to make a reasonable estimate of the anticipated income.¢ 6

(5) Withheld wages.Wages withheld at the request of the employee are considered income to the household in the month the wages would otherwise be paid by the employer.Wages withheld by the employer as a general practice, even when in violation of the law, are not counted as income to the household unless the household anticipates it will ask for and receive an advance, or the household anticipates that it will receive income from previously held wages.Advances on wages are counted as income when they can be reasonably anticipated.

(c) Averaging income.Households, except for destitute and migrant or seasonal farm worker households, may have their income averaged per 7 C.F.R. § 27310(c)(3).To determine the household's eligibility, the worker adds all other income to the averaged monthly income and subtracts applicable income exclusions and deductions in the normal manner.

(1) Fluctuating income.Households with fluctuating income may elect to have the income averaged.

(A) When the household indicates the most recent 30-calendar days income is representative of anticipated future earnings, the worker uses this income to compute gross monthly income.

(B) When the household indicates the most recent 30-calendar days of income is not representative of anticipated future income, the worker averages additional months of income to compute a representative anticipated monthly gross income.

(C) Income received more often than monthly is converted to a monthly income prior to determining a monthly average.The number of months used to arrive at the average income need not be the same as the number of months in the certification period.For example, if fluctuating income for the past 30-calendar days and the month of application are known and, with reasonable certainty, are representative of the income fluctuations anticipated for the coming months, the income for the two months may be averaged and projected over the certification period.

(2) Employment contract and self-employment.When households derive their annual income by contract or self-employment in a period of time shorter than one year, the worker annualizes the income over a 12-month period.These households may include school employees, sharecroppers, farmers, and other self-employed households.These provisions do not apply to migrant or seasonal farm workers or to contracted employees who receive income on an hourly or piece work basis.¢ 7

(d) Income from the Social Security Administration (SSA).When using the Beneficiary and Earnings Data Exchange System (BENDEX) or the State Data Exchange System (SDX) to verify SSA benefits or Supplemental Security Income, the worker drops any cents from the gross benefit amount.¢ 8

INSTRUCTIONS TO STAFF 340:50-7-46

Revised 9-15-172-1-18

1.The worker exercises caution when determining whether to multiply income twice per month or biweekly.

2.For example, when a person is paid daily and employed:

(1) five days per week, Monday through Friday, the worker converts daily income to a weekly amount and multiplies the weekly income by 4.3 to arrive at the monthly gross wage; or

(2) three days per week, Monday, Wednesday, and Friday, the worker converts daily income to a weekly amount and multiplies the weekly income by 4.3 to arrive at the monthly gross wage.

3.Examples include, when a person:

(1) is registered with a day labor agency but has only worked two days in the last two full months:May 16, $60, and June 21, $50.The appropriate method for determining monthly gross wage is to average these two months income:$60 + $50 = $110 divided by 2 = $55.; or

(2) started working for a day labor agency on May 2nd and applied for food benefits on May 10th.The person worked three days before applying and does not know how many more days he or she will work before the end of the month.It is appropriate to total the wages earned so far in the application month and use that amount as the countable earned income for the initial and ongoing months, as there is no reasonable way to anticipate earnings.

4.Examples of when actual income is not used are, when:

(1) all income for the month has not been received;

(2) the person is paid every two weeks and received three checks in the month of certification from ongoing employment; or

(3) the person is paid weekly and received five checks in the month of certification from ongoing employment.

5.(a) When income fluctuates to the extent that a 30-day period alone does not provide an accurate indication of anticipated income, a longer period of past income may be requested and used to determine representative income.For example, the client may state he or she worked additional hours in the most recent 30-day period to cover for an absent employee who has now returned.

(1) When the client and the worker are unable to obtain additional pay information to better anticipate future income, the worker uses the best available information, per Oklahoma Administrative Code (OAC) 340:50-7-45(b) to calculate income.This may include basing the computation on the client's explanation for the fluctuation.The worker documents the income computation method used in the Family Assistance/Client Services (FACS) case notes.

(2) When the worker requests additional verification at application, mid-certification, or certification renewal and the client fails to provide the verification without explanation, the worker denies or closes the food benefit.

(b) When the client states he or she received a pay raise or his or her hours increased or decreased and the changes are not reflected on the past 30-calendar days of pay stubs, the worker requests additional pay information from the employer.

6.(a) The worker fully documents the method used to compute income in FACS case notes.

(b) The worker follows procedures listed in (1) through (5) of this subsection when using pay stubs to compute ongoing earned income.

(1) The worker must useuses the most recent 30-calendar days of pay stubs for an initial application.When the applicant expects to receive a paycheck on the interview date but does not bring it a paycheck to the interview, the worker does not request it.For mid-certification renewals and certification renewals, use the paystubs provided by the client as long as when they are consecutive and were received after the notice date for the renewal.

(2) Pay stubs must be consecutive.Using a calendar to identify the pay dates ensures there are no missing pay stubs.

(3) Gross amounts of income must be used in the calculation process.

(4) When the hours worked fluctuate each pay period, the worker asks the client why hours fluctuate and documents the reason in FACS case notes.

(5) Only those pay periods determined as representative pay for the next certification period are used in the calculation.The worker documents in case notes the reason for excluding any pay stubs.

(c) When a person receives a benefit allowance from his or her employer, count the regular gross earnings, plus any money left after deducting the cost of the reimbursable expenses covered by the benefit allowance as earned income.Count as earned income any amount the employer provides in the employee's pay for a reimbursable expense, when the employee chooses not to use it for the expense.

(d) When a person has not received a full pay check from new employment, it is appropriate to use an employer's statement or Form 08AD094E, Employment Verification, when completed by the employer.The statement or form must include the client's scheduled hours per week, rate of pay, and how often paid.When anticipating new income based on an employer's statement only, the worker converts the income to a monthly amount, per calculation methods described in (a) of this Section.

7.The worker verifies if the contract pay is hourly or salaried and:

(1) annualizes salaried contract pay; or

(2) converts hourly pay to a monthly amount, per OAC 340:50-7-46(a).

8.(a) The Beneficiary and Earnings Data Exchange System (BENDEX) provides verification of Social Security Administration (SSA) benefits and Medicare entitlement.To view, enter BEN space Social Security claim number.The worker may view BENDEX code information by clicking on the Infonet Job Functions tab, choosing Adult and Family Services, and clicking on Systems Help under Tools/Data Exchange/BENDEX.

(1) When using BENDEX to verify Social SecuritySSA benefits, the worker drops any cents from the gross benefit amount in BENDEX Field B27 and uses only the whole dollar figure.For example, round $349.50 to $349.00.(2) When a person is dually entitled to receive Social SecuritySSA benefits under two claim numbers, the person may receive benefits under one or both claim numbers.

(A) When the person receives a combined benefit, BENDEX displays two records for the person.Each record displays a D for dual entitlement in Field C21 and the cross referenced claim number in BENDEX Field B20.

(i) The worker counts the income displayed under the BENDEX record with a current pay (CP) payment status code in Field B20.The CP means current pay.The person receives the combined Social SecuritySSA benefit amount under this claim number.

(ii) The worker does not count the income displayed in the BENDEX record with the adjusted for dual entitlement (AD) in payment status code Field B20.The AD means adjusted for dual entitlement and the person does not receive income under this BENDEX record.

(B) The SSA benefit issuance process used by SSA may cause a $1 or $2 difference in the actual payment made to a person who receives combined benefits.

(C) When the person receives benefits under both claim numbers, each BENDEX record displays a CP in the payment status code Field B20.The worker adds the whole dollar figures in Field B20 together and drops the cents to arrive at the person's SSA income.For example, when one record shows $202.51 and the other shows $361.23, the worker adds $202 to $361 to arrive at the person's countable income of $563.

SUBCHAPTER 11. SPECIAL PROCEDURES

PART 5. RESTORATION OF LOST BENEFITS

340:50-11-46. Restoration of lost benefits

Revised 6-1-08

(a) Worker responsibility.A worker is responsible to restore lost benefits when the loss was caused by Oklahoma Department of Human Services (OKDHS) error.Benefits cannot be restored if they are lost more than 12 months prior to the most recent of the:

(1) month the worker was notified by the household, by another person, or an agency in writing or orally of the possible loss to the specific household;

(2) month the worker discovered in the normal course of business that a loss to a specific household has occurred;

(3) date the household requested a fair hearing to contest the adverse action which resulted in the loss; or

(4) date the household initiated court action.

(b) Error discovered by human services center (HSC) staff.If HSC staff determines that a loss of benefits has occurred and the loss was not caused by the household, the worker takes action to restore any benefits that were lost.No action by the household is necessary.

(c) Disputed benefits.

(1) If HSC staff determines a household is entitled to restoration of lost benefits but the household does not agree with the amount to be restored, the household may request a fair hearing.If a fair hearing is:

(A) requested prior to or during the time lost benefits are being restored, the household receives the lost benefits as determined by the worker pending results of the fair hearing; and

(B) favorable to the household, the worker restores the lost benefits in accordance with that decision.

(2) If the household believes it is entitled to restoration of lost benefits and after reviewing the case file the HSC staff does not agree, the household has 90 days from the date of the HSC decision to request a fair hearing.The HSC restores lost benefits to the household only if the fair hearing decision is favorable to the household.

(d) Computing amount to be restored.After correcting the loss for future months and excluding the months for which benefits have been lost prior to the 12-month time limit, the worker calculates the amount to be restored.

(1) If the loss resulted in an incorrect allotment but the household was determined eligible, the loss of benefits is calculated only for those months the household participated.

(2) If the loss was caused by incorrect delay, denial, or termination of benefits, the months affected by the loss are calculated according to subparagraphs (A) or (B) of this paragraph.

(A) If an eligible household's application was erroneously denied, the month the loss initially occurred is the month of application, or, for an eligible household filing a timely reapplication, the month following the expiration of its certification period.

(B) If a household's benefits were erroneously terminated, the month loss initially occurred is the first month benefits were not received as a result of the erroneous action.

(3) Lost benefits are computed beginning with the month the loss initially occurred and ending either the first month the error is corrected or the first month the household is found ineligible.

(e) Offsetting claims.If the household has an unpaid overpayment or an overpayment held in suspense, the amount to be restored is offset against the amount of the overpayment.The balance, if any, is restored to the household.Benefits received at initial certification or because of retroactive certification are not used to offset claims against a household.¢ 1

(f) Lost benefits to persons disqualified for willful misrepresentation.A person disqualified for willful misrepresentation is entitled to restoration of any benefits lost during the months the person was disqualified only if the decision which resulted in disqualification is subsequently overturned or reversed.A person is not entitled to restoration of lost benefits for the period of disqualification based solely on the fact that a criminal conviction could not be obtained, unless the person successfully challenged the disqualification in a separate court action.

(1) For each month the person was disqualified, the amount to be restored, if any, is determined by comparing the allotment the household received with the allotment the household would have received had the disqualified member been allowed to participate.

(2) The disqualification period cannot exceed 12 months prior to the date OKDHS was notified of lost benefits.

(3) If the household received a smaller allotment than it should have received, lost benefits is the difference between the amount the household was entitled to receive and what they actually received.

(g) Method of restoration.Whether the household is currently eligible or ineligible, the worker restores benefits equal to the amount of benefits that were lost.The amount of restoration is issued in addition to the allotment currently eligible households are entitled to receive.¢ 2

INSTRUCTIONS TO STAFF 340:50-11-46

Revised 6-1-102-1-18

1.TheAdult and Family Support Services Division (FSSD)(AFS) Benefit Integrity and Recovery Sectionstaff is responsible for this actiondetermining the amount to apply to an unpaid overpayment.

2.To restore lost benefits, the worker must usestaff uses the Food Stamp Lost Benefit (FSLB) transaction.If there is an overpayment recoupment neededWhen the client has an unpaid overpayment, an error message alertsdisplays on FSLB to alert staff to send the request to the FSSDemail AFS Supplemental Nutrition Assistance Program (SNAP) Sectionstaff at snap@okdhs.org, to determine if restored benefits need to be applied to an unpaid overpayment.A completed Form 08FB116E, Authorization for Food Stamp and ATP Issuance/Disposition, andThe worker Staff attaches a copy of the FSLB transaction is sent to the FSSD SNAP Section requesting restoration of lost benefitsto the email.FSSDAFS SNAP Section staff makes a determinationconsults with AFS BIR staff regarding the recoupment and notifies the human services centerthe workerlocal county office of the household's entitlement to restoration of lost benefitsdecision.