department of health and social services

Division of Social Services

final

ORDER

4002.2 Available Resources; 4002.5 Excluded Resources

NATURE OF THE PROCEEDINGS:

Delaware Health and Social Services (“Department”) / Division of Social Services initiated proceedings to amend the rules in the Division of Social Services Manual (DSSM) used to determine eligibility for cash assistance as it relates to the special Education and Business Investment Accounts (EBIAs). The Department’s proceedings to amend its regulations were initiated pursuant to 29 Delaware Code Section 10114 and its authority as prescribed by 31 Delaware Code Section 512.

The Department published its notice of proposed regulation changes pursuant to 29 Delaware Code Section 10115 in the January 2006 Delaware Register of Regulations, requiring written materials and suggestions from the public concerning the proposed regulations to be produced by January 31, 2006 at which time the Department would receive information, factual evidence and public comment to the said proposed changes to the regulations.

Citation:

Background:

In addition to the current resource limit, families are allowed to establish special Education and Business Investment Accounts (EBIAs) of up to $5,000.00, including interest. Families contribute directly to their EBIAs. Funds in such accounts are not considered as a resource. Withdrawals from such accounts must be for approved purposes, as defined in TANF. If funds are withdrawn for non-approved purposes, the money will be counted as a resource in the month received. Approved reasons for withdrawal of funds for self-sufficiency needs include, but are not limited to dependent care expenses, security deposit for an apartment or house, or vehicle repair costs.

Summary of Proposal

DSSM 4002.2, Available Resources and DSSM 4002.5, Excluded Resources: Language is revised and new language is added:

SUMMARY OF COMMENTS RECEIVED WITH AGENCY RESPONSE

The Governor’s Advisory Council for Exceptional Citizens (GACEC) and the State Council for Persons with Disabilities (SCPD) offered the following observations.

Since the resource exemption would facilitate independence and opportunities for vocational training, the Councils endorse this proposed regulation. The only caveat is that DSS may wish to verify that the $500,000 figure in Par. 14, line 2, is accurate. Perhaps, it should be $5,000 based on other references in Par. 14.

Agency Response: The figure in Par. 14, line 2 should be $5,000. This was a publication error. The final order text shows $5,000. DSS thanks the Councils for their endorsement.

FINDINGS OF FACT:

The Department finds that the proposed changes as set forth in the January 2006 Register of Regulations should be adopted.

THEREFORE, IT IS ORDERED, that the proposed regulation to amend the Division of Social Services Manual (DSSM) as it relates to the special Education and Business Investment Accounts (EBIAs) is adopted and shall be final effective March 10, 2006.

Vincent P. Meconi, Secretary, DHSS, 2/14/06

DSS FINAL ORDER REGULATION #06-11

REVISIONS:

4002 Resources

4002.2 Available Resources

Any income or resource which a client actually has on hand for immediate use is an available resource. Cash on hand, checking accounts, any form of savings or bank accounts, State and Federal Income Tax Refunds.

Savings:

Note: In addition to the current resource limit, Temporary Assistance for Needy Families (TANF) families will be allowed to establish Special Educational and Business Investment Accounts of up to $5000.00, including interest.

Do not consider funds in such accounts as a resource for TANF or Food Stamp purposes. Withdrawals from such accounts must be for approved purposes. If funds are withdrawn for non-approved purposes, count the money as a resource in the month received. Approved reasons for withdrawal of funds for self-sufficiency needs include, education expenses, employment start-up needs, entrepreneurship, and fulfill life-improvement initiatives.

The special Education and Business Investment Accounts are not counted as available resources unless withdrawals are made for non-approved purposes. SEE DSSM 4002.5 #14.

A family budget group is not eligible for cash assistance if its available resources exceed $1,000.00.

Available resources must be documented in the case record.

(Break in Continuity of Sections)

4002.5 Excluded Resources

The equity value of real and personal property owned by a family budget group cannot exceed $1,000.00. Resources excluded from the $1,000.00 resource limitation are:

1. The home which is the usual residence of the family budget group.

FOR DELAWARE’S TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM

2. Exclude the equity value of a primary automobile, up to the annually adjusted Food Stamp program's fair market value of vehicles which is excluded in determining the household resources. The excluded amount effective October 1996 is $4,650. The equity value is the difference between the automobile's fair market value and the amount still owed for it. The equity value in excess of $4,650.00 is counted towards the $1,000.00 resource limitation. The entire equity value of other automobiles owned by the individual is counted as a resource.

NOTE: The fair market value of an automobile is determined by finding the car's trade in value in the NADA Used Car Guide. If the client disagrees with this valuation, he/she may obtain a statement of the car's value from a automobile dealer.

FOR GENERAL ASSISTANCE

One automobile, the equity value of which does not exceed $1,500.00. The equity value is the difference between the automobile's fair market value and the amount still owed on it. The equity value in excess of $1,500.00 is counted towards the $1,000.00 resource limitation. The entire equity value of other automobiles owned by the individual is counted as a resource.

The increased value of a motor vehicle specially equipped with devices for the handicapped is not counted. Farm vehicles that are used to produce income are excluded from consideration as a resource.

3. One burial plot for each member of the assistance unit.

4. Bona fide funeral agreements (e.g., pre paid burial contracts) up to a total of $1,500.00 for each member of the budget group.

NOTE: If a funeral agreement valued in excess of $1,500.00 includes both prepaid burial expenses and a burial plot, the worker will require that the client provide an itemized statement of the estimated value of the plot and the expenses. The value of the burial plot is an excluded resource and will be considered separately from the value of the prepaid expenses.

5. Basic maintenance items essential for day-to-day living such as clothes, furniture, and other similarly essential items.

6. For a period not to exceed six months, real property that is not used as a residence (see DSSM 4002.6).

7. Tools and equipment necessary to produce income in a self employment enterprise, even if the owner is not engaged in business currently, but plans to continue it at a future date.

8. Federal major disaster and emergency assistance provided to individuals and families and comparable disaster assistance provided by State, local governments, and disaster assistance organizations under P.L. 100 707.

"Emergency" means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States.

"Major Disaster" means any natural catastrophe...which in the determination of the President causes damage of sufficient severity and magnitude to warrant major disaster assistance to supplement the efforts of available resources of states, local governments, and disaster relief organizations in alleviating the damage, loss, hardship, or suffering caused thereby.

9. Restitution made to United States' citizens and permanent resident aliens of Japanese ancestry who were interned during World War II pursuant to Title I. of P.L. 100-383.

10. Restitution made by any Aleut who was relocated by authority of the United States from his or her home village on the Pribilof Islands or the Aleutian Islands during World War II pursuant to Title II of P.L. 100 383.

11. Payments made from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.).

12. Earned Income Tax Credits (EITC), including Advance EITC.

Applicants:

Disregard as a resource EITC payments received in the month of application or in the month preceding the month of application. Any remaining EITC amounts received before this period are a resource.

Recipients:

Disregard as a resource for the month in which the EITC is received and the following month. After this period, any remaining amounts are a resource.

13. Cash Value of Life Insurance Policies

14. The designated Education and Business Investment Account (EBIA) is excluded up to the $5000.00 maximum. In addition to the current resource limit, Delaware’s Temporary Assistance For Needy Families Program (TANF” and General Assistance (GA) Program families will be allowed to establish special Education and Business Investment Accounts (EBIA) of up to $5000.00, including interest.

Do not consider funds in such accounts as a resource for TANF, GA or Food Stamp purposes. Withdrawals from such accounts must be for approved purposes. If funds are withdrawn for non-approved purposes, count the money as a resource in the month received. Approved reasons for withdrawal of funds for self-sufficiency needs include education expenses, employment start-up needs, entrepreneurship, and to purchase a vehicle or home. If staff are unsure if the withdrawal meets an approved purpose, contact the policy unit for clarification.

Furthermore, a Saving for Education, Entrepreneurship and Down payment (SEED) accounts is considered an EBIA account and is excluded up to the $5000.00 limit.