No. 38716 (Amendment): Rule R982-403. Energy Assistance Income Standards, Income Eligibility, and Payment Determination

(Amendment)

DAR File No.: 38716
Filed: 07/29/2014 04:42:11 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Home Energy Assistance Target (HEAT) program rules are being updated to reflect changes made in federal regulations and changes to the Utah HEAT Program policies and procedures.

Summary of the rule or change:

This proposed rule change reflects current policy in counting retirement income, reverse mortgage income, recurring gifts, and income from rental property as income in determining eligibility for HEAT. Other proposed changes are to better clarify current provisions.

State statutory or constitutional authorization for this rule:

• Section 35A-1-104
• Section 35A-8-1403
• Subsection 35A-1-104(4)

Anticipated cost or savings to:

the state budget:

This is a federally-funded program and there are no substantive changes which will impact the costs of the program so there are no costs or savings to the state budget.

local governments:

This is a federally-funded program and there are no substantive changes which will impact the costs of the program so there are no costs or savings to any local government.

small businesses:

This is a federally-funded program and there are no substantive changes which will impact the costs of the program so there are no costs or savings to any small business.

persons other than small businesses, businesses, or local governmental entities:

There will be no costs to persons other than small businesses, businesses or local government entities to comply with these changes because there are no costs or fees associated with these proposed changes.

Compliance costs for affected persons:

There are no compliance costs for this change to anyone, including persons affected by this change.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no compliance costs associated with this change. There are no fees associated with this change. There will be no cost to anyone to comply with these changes. There will be no fiscal impact on any business.

Jon Pierpont, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Workforce Services
Administration
140 E BROADWAY
SALT LAKE CITY, UT 84111-2333

Direct questions regarding this rule to:

• Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

09/15/2014

This rule may become effective on:

09/22/2014

Authorized by:

Jon Pierpont, Executive Director

RULE TEXT

R982. Workforce Services, Administration.

R982-403. Energy Assistance Income Standards, Income Eligibility, and Payment Determination.

R982-403-1. Energy Assistance Income Standards.

For HEAT assistance cases, the local HEAT office shall determine the countable income of the household. Income must be at or below 150% of the federal poverty level to qualify for HEAT assistance.

 

R982-403-2. Countable Income.

Countable income is gross income minus exclusions, disregards, and deductions.

 

R982-403-3. Unearned Income.

[1.](1) Countable unearned income is cash received by an individual for which no service is performed.

[2.](2) Sources of unearned income include the following:

[a.](a) Pensions and annuities including Railroad Retirement, Social Security, Supplemental Security Income, Veteran's benefits and Civil Service retirement benefits;

[b.](b) Disability benefits including Industrial Compensation, sick pay, mortgage insurance and paycheck insurance;

[c.](c) Unemployment Compensation;

[d.](d) Strike or union benefits;

[e.](e) Veteran's benefits;

[f.](f) Child support and alimony;

[g.](g) Veteran's Educational Assistance intended for family members;

[h.](h) Trust payments , withdrawals, and/or dividends received on a regular basis;

[i.](i) Tribal fund gratuities unless excluded by law.

[j.](j) Money from sales contracts and mortgages;

[k.](k) Personal injury settlements;

[l.](l) Financial payments made by the Department of Workforce Services;

[m.](m) Income from Rental Property. If the client also manages the property, the income is earned[.];

[n.](n) Temporary Assistance to Needy Families (TANF) ;

[o.](o) Emergency Work Program (EWP) ;

[p.](p) Work allowances[, included WHAT];

[q.](q) Foster Care Payments ;

[r.](r) Severance pay paid out weekly[.];

(s) 401K payments;

(t) Retirement income;

(u) Payments received or drawn down from assets like a reverse mortgage or withdrawals from accounts;

(v) Gifts received, or payments made on a client's behalf on a regular basis.

 

R982-403-4. Earned Income.

[1.](1) Earned income is income in cash or in kind received by an individual for which a service is performed.

[2.](2) Sources of earned income include the following:

[a.](a) Wages, including military base pay;

[b.](b) Salaries;

[c.](c) Commissions;

[d.](d) Rent amount, when client works in return for rent;

[e.](e) Monies from self-employment including baby-sitting;

[f.](f) Tips;

[g.](g) Sale of livestock and poultry;

[h.](h) Work Study;

[i. University Year for Action;

] [j.](i) Military payments to cover Basic Allowance for Quarters and Basic Allowance for Substance;

[k.](j) Money the employee chooses to have withheld for benefit plans including Flex Plans and Cafeteria Plans[.];

(k) Income from rental property if client also manages the property.

 

R982-403-5. Income Exclusions.

[1. The following definitions apply to this section:

a. "Bona fide loan" means a loan which has been contracted in good faith without fraud or deceit and genuinely endorsed in writing for repayment.

b. "JTPA" means Jobs Training Partnership Act.

] [2. ]The income listed below is not counted when determining eligibility:

[a.](1) Earned income of an unemancipated household member[.];

[b.] (2) Cash over which the household has no direct control[.];

[c.](3) Reimbursements for expenses directly related to employment, training, schooling, and volunteer activities[.];

[d.](4) Reimbursements for incurred medical expenses[.];

[e.](5) Bona fide loans. A bone fide loan is a loan which has been contracted in good faith without fraud or deceit and genuinely endorsed in writing for repayment;

[f.](6) Compensation paid to individual volunteers under the Retired Senior Volunteers Program, Green Thumb and the Foster Grandparent Program[.];

[g.](7) Incentive and training expenses paid by the HEAT Self Sufficiency program.

[h.](8) Earned Income Tax Credit[.];

[i.](9) Financial payments from [JTPA.]Workforce Investment Act;

[j.](10) Value of Food Stamps; [Coupons, Food Stamp Cash Out checks, and surplus commodities donated by the U.S. Department of Agriculture.]

[k.](11) Educational loans, grants, scholarships or college work study with the exception of Veterans Educational Assistance intended for the family members of the student. The student's portion is exempt[.];

[l.](12) Interest or [D]dividend [I]income[.];

[m.](13) Compensation or reimbursement paid to Volunteers In Service To America, Senior Health Aides, Senior Core of Retired Executives, Senior Companions and ACE[.];

[n.](14) Church cash assistance and voluntary cash contributions by others unless received on a regular basis[.];

[o.](15) Rental subsidies and relocation assistance[.];

[p.](15) Utility subsidies[.];

(16) The full military pay for an active duty soildier not in the home. However, any amount taken out of his or her military pay and sent home for the family's support is counted; and

[q.](17) Any funds, payments, or tribal benefits required by Public Law 98-64, Public Law 93-134(7), Public Law 92-254, Public Law 94-540, Public Law 94-114 and Public Law 96-240(9)[.];[

r. Payments required by] Public Law 92-203[.],[

s. Payments required by] Public Law 101-201 or Public Law 101-239(10405)[.],[

t. Payments required by] Public Law 100-383[.],[

u. Payments required by] Public Law 101-426[.],[

v. Payments required]or by Public Law 100-707.

 

R982-403-6. Income Disregard.

[1. The following definition applies to this section:

a. "Disregard" means a portion of income that is not counted.

][2.](1) 20% of earned income, including self-employment earned income, will be disregarded.  "Disregard" means a portion of income that is not counted.

[3.](2) For self-employed households the cost of doing business will be deducted. The 20% disregard will be applied to the remainder.

 

R982-403-7. Income Deductions.

[1. Medical

](1) A deduction for payments on uncompensated medical bills will be allowed when those payments are actually made by a member of the household during the same time period as the income being counted.

[a.](a) The client must verify the payment was made directly to a medical provider by a member of the household, for a member of the household in the month prior to the month of application and that they will not be reimbursed by a third party.

[b.](b) Health and accident insurance payments, dental insurance payments, and Medical Assistance Only (MAO) payments are considered medical expenses.

[2. Child Support and Alimony

a.](2) A deduction for child support and alimony payments will be allowed when those payments were actually made by a member of the household during the same time period as the income being counted.

[b.](a) The client must verify the payment was actually made directly to the custodial adult or through the court.

[c.](b) Payments in lieu of child support and alimony, including car payments or mortgage payments, are deductible.

 

R982-403-8. Self-Employment Income.

[1.](1) A self-employed person [actively]is someone who earns income directly from [their]his or her own business, trade, or profession.

[2.](2) Self-employment income will be determined by using the previous year's tax return or as follows:

[a.](a) All gross self-employment income is counted, including capital gains.[

i. Capital gains will be included.

ii.] The proceeds from the sale of capital goods or equipment will be calculated in the same way as a capital gain for Federal income tax purposes. Even if only part of the proceeds from the sale of capital goods or equipment is taxed, the full amount of the capital gain will be counted as income for HEAT program purposes.

[b.](b) The cost of doing business will be deducted.

[i.](i) Allowable business costs include:

[A.](A) labor;

[B.](B) stock;

[C.](C) raw materials;

[D.](D) seed and fertilizer;

[E.](E) interest paid toward the purchase of income producing property;

[F.](F) insurance premiums;

[G.](G) taxes paid on income producing property;

[ii.] (H) Transportation costs will be allowed only if the person must move from place to place in the course of business.

[iii.](ii) The following items will not be allowed as business expenses:

[A.](A) [P]payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery and other durable goods[.];

[B.](B) [N]net losses from previous periods[.];

[C.](C) [F]federal, state and local income taxes, money set aside for retirement purposes, and other work related personal expenses[.];

[D.](D) [D]depreciation.

 

R982-403-9. HEAT Financial Eligibility and Payment Determination.

[1 ]All countable income received in the previous calendar month for the current applicant household will be used to determine eligibility. Terminated income received in the previous calendar month or the month of application is exempt if no new source of income is identified. Failure to provide verification of income will result in the HEAT application being denied.

Verification of countable income includes preceding or current month's SSI or SSA checks, divorce decrees, award letters, or current check stubs if the income is stable and the amount is the same as the actual income received in the previous calendar month.

 

KEY: energy assistance, self-employment income, income eligibility, payment determination

Date of Enactment or Last Substantive Amendment: [July 9, 2012]2014

Authorizing, and Implemented or Interpreted Law: 35A-8-1403

 

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