RELATES TO:
KRS
205.200,
205.210,
205.2001,
205.211,
45 C.F.R. Parts
260-265,
400.66(d),
8 U.S.C.
1183a,
10 U.S.C.
1059,
20 U.S.C.
1088(b)(1),
2302(3),
(13),
25 U.S.C.
1401,
5501,
26 U.S.C.
6409,
29 U.S.C.
723(a)(5),
3241(a)(2),
34 U.S.C.
20102(c),
38 U.S.C. 1833,
42 U.S.C.
415(i),
1395w-141,
1381-1384,
1771,
1775,
3001,
4950-5084,
8621,
Pub. L.
92-254
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
194A.050(1) requires the
secretary to promulgate all administrative regulations authorized by applicable
state laws necessary to operate the programs and fulfill the responsibilities
vested in the cabinet or to qualify for the receipt of federal funds and
necessary to cooperate with other state and federal agencies for the proper
administration of the cabinet and its programs.
KRS
205.200(2) requires the
cabinet to prescribe, by administrative regulation, the conditions of
eligibility for public assistance, in conformity with the Social Security Act,
42 U.S.C.
601 to
619 and federal regulations.
KRS
205.200(2) and
205.210(1)
require that the secretary establish the standards of need and amount of
assistance for the Kentucky Transitional Assistance Program (KTAP), the block
grant program funded by 42
U.S.C. 601 to
619. This administrative
regulation establishes the standards of need for and the amount of a Kentucky
Transitional Assistance Program payment.
Section
1. Definitions.
(1) "Assistance"
is defined by 45 C.F.R.
260.31.
(2) "Benefit group" means a group composed of
one (1) or more children and may include as specified relative a person
pursuant to
921 KAR 2:006, Section
6.
(3) "Change in a circumstance"
means a change in income or dependent care expense affecting the ongoing KTAP
payment that includes:
(a) Beginning or ending
employment;
(b) Change in an
employer or obtaining additional employment;
(c) Increase or decrease in the number of
work hours;
(d) Increase or
decrease in the rate of pay;
(e)
Increase or decrease in the dependent care expense due to a change in:
1. Provider;
2. Number of hours of care;
3. Number of individuals for whom care is
given; or
4. Amount charged;
or
(f) Change in farm
cropping arrangement or type of self-employment activity.
(4) "Claimant" means the individual
responsible for the repayment of an overpayment.
(5) "Countable income" means income that
remains after excluded income and appropriate deductions are removed from gross
income.
(6) "Deduction" means an
amount subtracted from gross income to determine countable income.
(7) "Electronic benefit transfer" or "EBT"
means a computer-based electronic benefit transfer system in which an eligible
household's benefit authorization is received from a central computer through a
point of sale terminal or automated transfer machine.
(8) "Excluded income" means income that is
received but not counted in the gross income test.
(9) "Full-time employment" means employment
of thirty (30) hours per week or 130 hours per month or more.
(10) "Full-time school attendance" means a
workload of at least:
(a) The number of hours
required by the individual program for participation in:
1. An adult basic education
program;
2. A general educational
development program; or
3. A
literacy program;
(b) The
number of hours required by the individual program for participation in a
college or university; or
(c) The
number of hours required by the individual high school or vocational school to
fulfill the high school or vocational school's definition of full
time.
(11) "Gross income
limitation standard" means 185 percent of the assistance standard, as
established in Section 9 of this administrative regulation.
(12) "Kentucky Transitional Assistance
Program" or "KTAP" means the program established in
921 KAR 2:006.
(13) "Kentucky Works Program" or "KWP" means
the program established in
921 KAR 2:370 that assists a:
(a) Recipient of KTAP in obtaining education,
training, experience, and employment; or
(b) Former KTAP recipient with job retention
services.
(14) "Lump sum
income" means income that does not:
(a) Occur
on a regular basis; or
(b)
Represent accumulated monthly income received in a single sum.
(15) "Minor parent" means an
individual who:
(a) Has not attained eighteen
(18) years of age;
(b) Is not
married or is married and not living with the spouse; and
(c) Has a minor child in the applicant's or
recipient's care.
(16)
"Part-time employment" means employment of:
(a) Less than thirty (30) hours per week;
or
(b) Less than 130 hours per
month.
(17) "Part-time
school attendance" means a workload that is less than full-time school
attendance as determined by the educational institution.
(18) "Penalized individual" means a person
who is required to be included in the benefit group but fails to fulfill an
eligibility requirement, causing a reduction in benefits of the benefit group.
If otherwise eligible, a penalized individual remains a member of the benefit
group.
(19) "Recoupment" means
recovery of an overpayment of an assistance payment.
(20) "Sanctioned individual" means a person
who is required to be included in the benefit group, but who is excluded from
the benefit group due to failure to fulfill an eligibility
requirement.
(21) "Self-employment
income" means income from a business enterprise if taxes are not withheld prior
to receipt of the income by the individual.
(22) "Supplemental security income" or "SSI"
means a monthly cash payment made pursuant to
42 U.S.C.
1381 to
1384 to the aged, blind, or
persons with a disability.
(23)
"Unavailable" means that the income is not accessible to the KTAP benefit group
for use toward basic food, clothing, shelter, or utilities.
(24) "Workforce Innovation and Opportunity
Act" or "WIOA" means a program to assist adults, dislocated workers, and youth
with entering, retraining, and advancing within employment.
(25) "Work expense standard deduction" means
a deduction from earned income intended to cover mandatory pay check
deductions, union dues, and tools.
Section 2. Technical Eligibility.
(1) A benefit group shall include:
(a) A dependent child;
(b) A child's parent living in the home with
the dependent child who is:
1. Eligible for
KTAP; or
2. Ineligible for KTAP due
to benefit time limitations pursuant to
921 KAR 2:006, Section
16;
(c) An eligible
sibling living in the home with a dependent child, except for a sibling who is
an applicant or recipient of the Kinship Care Program pursuant to
922 KAR 1:130; or
(d) An eligible child who is:
1. In full-time school attendance or
part-time school attendance; and
2.
a. Sixteen through eighteen (18) years of
age; or
b. A minor
parent.
(2) If the KTAP benefits to a household would
be greater by excluding an otherwise eligible child related by subsidized
adoption to the other members, the child shall not be included in the benefit
group.
(3) If a dependent child's
parent is a minor living in the home with an eligible parent, the minor's
parent shall also be included in the benefit group if the minor's parent
applied for assistance.
(4) A
natural or adoptive parent of the child who is living in the home shall be
included as second parent if the technical eligibility factors of
921 KAR 2:006 are
met.
Section 3. Resource
Limitations.
(1) A liquid asset shall be
considered a countable resource if it is:
(a)
Available to the benefit group; and
(b) Owned in whole or in part by:
1. An applicant or recipient;
2. A sanctioned or penalized individual;
or
3. The parent of a dependent
child, even if the parent is not an applicant or recipient, if the dependent
child is living in the home of the parent.
(2) The total amount of resources reserved by
a benefit group shall not be in excess of $10,000 in liquid assets, excluding
an asset listed in subsection (3) of this section.
(3) Excluded resources.
(a) Resources from the following individuals
shall be excluded from consideration:
1. A
recipient of SSI or the state supplementation program living in the
home;
2. A child excluded from the
KTAP grant; or
3. An individual not
receiving assistance but living in the home including:
a. The stepparent;
b. The parent or legal guardian of a minor
parent;
c. The spouse of a
nonresponsible specified relative; or
d. The spouse of a minor dependent
child.
(b) The
following resources shall not be included in the resource limit established in
subsection (2) of this section:
1. Proceeds
(sale price less indebtedness) from the sale of a home, including initial or
down payment from land contract sale, for six (6) months if client plans to
invest in another home;
2. Funds in
an individual retirement account, retirement or deferred compensation account
during the period of unavailability;
3. An excluded income payment, pursuant to
Section 5 of this administrative regulation;
4. Principal and accrued interest of an
irrevocable trust during a period of unavailability;
5. Prepaid burial funds;
6. Cash surrender value of all burial
insurance policies per family member;
7. Principal of a verified loan;
8. Up to $12,000 to Aleutians and $20,000 to
an individual of Japanese ancestry for payment made by the United States
Government to compensate for hardship experienced during World War
II;
9. A payment made from the
Agent Orange Settlement Fund issued by Aetna Life and Casualty to a veteran or
veteran's survivor;
10.
a. Any federal tax refund or advance payment
of a refundable federal tax credit for a period of twelve (12) months from
receipt in accordance with 26 U.S.C.
6409; or
b. An earned income tax credit payment in the
month of receipt and the following month;
11. A payment received from the Radiation
Exposure Compensation Trust Fund;
12. A nonrecurring lump sum SSI retroactive
payment that is made to a KTAP recipient who is not ongoing eligible for SSI,
in the month paid and the next following month;
13. Up to a total of $15,000 in individual
development accounts, excluding interest accruing, pursuant to subsection (7)
of this section;
14. A payment
received from the National Tobacco Growers Settlement Trust;
15. Savings in a 529 college savings plan
account;
16. Savings in an ABLE
account, pursuant to KRS
205.200(13); and
17. A payment received from the Transitional
Compensation for Abused Dependents Program,
10 U.S.C.
1059.
(4) Disposition of resources.
(a) An applicant or recipient shall not have
transferred or otherwise disposed of a liquid asset in order to qualify for
assistance.
(b) The household's
application shall be denied, or assistance discontinued if:
1. The transfer was made expressly for the
purpose of qualifying for assistance; and
2. The amount of the transfer, when added to
total resources, exceeds the resource limit.
(c) The time period of ineligibility shall be
based on the resulting amount of excess resources and begins with the month of
transfer.
(d)
1. If the amount of excess transferred
resources does not exceed $2,500, the period of ineligibility shall be one (1)
month.
2. The period of
ineligibility shall be increased one (1) month for every $2,500 increment up to
a maximum of twenty-four (24) months.
(5) Lifetime care agreement.
(a) The existence of a valid agreement
between the applicant or recipient and another individual or organization that
the applicant or recipient surrendered resources in exchange for lifetime care
shall make the case ineligible.
(b)
The agreement shall be considered invalid if the individual or organization
with whom the agreement was made provides a written statement that the
resources have been exhausted.
(6) Resources held jointly by more than one
(1) person.
(a)
1. For a bank account requiring one (1)
signature for withdrawal, the total balance of the account shall be considered
available to the KTAP applicant or recipient, unless the other owner is a
recipient of SSI.
2. If the other
owner receives SSI, the:
a. Balance shall be
divided evenly by the number of owners; and
b. KTAP applicant or recipient's share shall
be considered available.
(b) For a bank account that requires more
than one (1) signature for withdrawal, the KTAP applicant or recipient's share
shall be determined by obtaining a written statement from the other owners as
to the division.
(c) If there is no
predetermined allocation of shares from a business enterprise, the applicant or
recipient's available share shall be determined by dividing the value of the
business enterprise by the number of owners.
(d) If a resource is held jointly, other than
a resource pursuant to paragraphs (a) through (c) of this subsection, the
applicant or recipient's share shall be determined by dividing the value of the
resource by the number of owners.
(e) Rebuttal of ownership shall be
accomplished if the applicant or recipient asserts no contribution to or
benefits from a jointly held resource and provides:
1. A written statement regarding ownership,
who may deposit and withdraw;
2. A
written statement from each of the other owners that corroborates the
applicant's or recipient's statement, unless the account holder is a minor or
is incompetent; and
3. Verification
that the applicant's or recipient's name has been removed from the
resource.
(7)
(a) To be considered an exempt resource, the
individual development account shall have been:
1. Established on or after May 1, 1997;
and
2. Funded through periodic
contributions by a member of the benefit group using funds derived from earned
income that was earned after May 1, 1997, for a qualified purpose.
(b) A qualified purpose to
establish an individual development account shall be for:
1. Postsecondary educational expense that
shall include:
a. Tuition and fees required
for the enrollment or attendance of a student at an eligible educational
institution;
b. Fees, books,
supplies, and equipment required for a course of instruction at an eligible
educational institution; and
c. An
eligible educational institution that shall be an:
(i) Institution pursuant to
20 U.S.C.
1088(b)(1); or
(ii) Area vocational education school
pursuant to 20 U.S.C.
2302(3) or
(13);
2. First home purchase that includes:
a. Costs of acquiring, constructing, or
reconstructing a residence; and
b.
Usual or reasonable settlement, financing, or other closing
costs;
3. A business
capitalization expenditure for a business that does not contravene a law or
public policy, as determined by the cabinet, pursuant to a qualified plan which
shall:
a. Include capital, plant, equipment,
working capital, and inventory expenses;
b. Be approved by a financial institution;
and
c. Include a description of a
service or a good to be sold, a marketing plan, and projected financial
statement. An applicant may use the assistance of an experienced
entrepreneurial advisor if needed; or
4. Other purpose allowed by a federal
regulation or clarification.
(c) Funds held in an individual development
account shall not be withdrawn except for one (1) or more of the qualified
purposes pursuant to paragraph (b) of this subsection.
(d) To be considered an exempt resource, an
individual development account shall be matched by funds from a:
1. Nonprofit organization; or
2. State or local government agency, funding
permitted, acting in cooperation with an organization pursuant to subparagraph
1 of this paragraph.
Section 4. Income Limitations. In determining
eligibility for KTAP, the following shall apply:
(1) Gross income test:
(a) The total gross non-KTAP income shall not
exceed the gross income limitation standard and shall include:
1. Income of the benefit group;
2. Income of a parent who does not receive
SSI or state supplementation pursuant to
921 KAR 2:015;
3. Income of a sanctioned or penalized
individual; and
4. An amount deemed
available from:
a. The parent of a minor
parent living in the home with the benefit group;
b. A stepparent living in the home;
or
c. An immigrant's sponsor and
sponsor's spouse if living with the sponsor;
(b) Excluded income types pursuant to Section
5(1) of this administrative regulation shall apply; and
(c) If total gross income exceeds the gross
income limitation standard, the benefit group shall be ineligible.
(2) Benefit calculation:
(a) If the benefit group meets the criteria
pursuant to subsection (1) of this section, benefits shall be determined by
subtracting excluded income and applicable deductions pursuant to Section 5(1),
(2), and (3) of this administrative regulation;
(b) If the benefit group's income, after
subtracting excluded income and applicable deductions, exceeds the standard of
need for the appropriate benefit group size pursuant to Section 9 of this
administrative regulation, the benefit group shall be ineligible; and
(c) Amount of assistance shall be determined
prospectively.
(3)
Ineligibility period:
(a) A period of
ineligibility shall be established for a benefit group whose income in the
month of application or during a month the assistance is paid exceeds a limit
pursuant to subsection (2) of this section due to receipt of lump sum
income;
(b) The ineligibility
period shall be:
1. The number of months that
equals the quotient of the division of total countable income by the standard
of need pursuant to Section 9 of this administrative regulation for the
appropriate benefit group size; and
2. Effective with the month of receipt of the
nonrecurring lump sum amount; and
(c) The ineligibility period shall be
recalculated if:
1. The standard of need
pursuant to Section 9 of this administrative regulation increases and the
amount of grant the benefit group would have received also changes;
2. Income, that caused the calculation of the
ineligibility period, has become unavailable for a reason that was beyond the
control of the benefit group;
3.
The benefit group incurs and pays a necessary medical expense not reimbursable
by a third party;
4. An individual,
who is required to be a member of the benefit group, joins the KTAP household
during an established ineligibility period; or
5. The benefit group reapplies during an
established ineligibility period and the cabinet determines that policy has
changed to exclude the criteria originally used to establish the ineligibility
period.
Section
5. Excluded Income and Deductions.
(1) Gross non-KTAP income received or
anticipated to be received shall be considered with the application of excluded
income and deduction policy:
(a) By the:
1. Benefit group;
2. Sanctioned or penalized
individual;
3. Natural
parent;
4. Spouse of a dependent
child;
5. Parent of a minor parent
living in the home with the benefit group; or
6. Stepparent living in the home;
and
(b) Pursuant to
subsections (2) to (4) of this section.
(2) Gross income test. An income listed in
this subsection shall be excluded:
(a) A
deduction applicable to stepparent income, income of the spouse of a minor
dependent child, or income of the parent of a minor parent in the home with the
benefit group, pursuant to Section 7 of this administrative
regulation;
(b) A deduction
applicable to an immigrant sponsor's income, pursuant to Section 8 of this
administrative regulation;
(c) A
deduction applicable to self-employment income;
(d) Allowances, earnings, and payments
received under WIOA programs in accordance with
29 U.S.C.
3241(a)(2);
(e) Value of United States Department of
Agriculture program benefits including:
1.
Donated food;
2. Supplemental food
assistance received pursuant to
42 U.S.C.
1771;
3. Special food service program for a child
pursuant to 42 U.S.C.
1775;
4. Nutrition program for the elderly pursuant
to 42 U.S.C.
3001; and
5. The monthly Supplemental Nutrition
Assistance Program (SNAP) allotment;
(f) Reimbursement for transportation in
performance of an employment duty, if identifiable;
(g) The value of Kentucky Works Program
supportive services payment pursuant to
921 KAR 2:017;
(h) Nonemergency medical transportation
payment;
(i) Payment from
complementary program if no duplication exists between the other assistance and
the assistance provided by KTAP;
(j) Educational grant, loan, scholarship,
work study income, or other type of financial assistance for education pursuant
to KRS
205.200(8);
(k) Highway relocation assistance;
(l) Urban renewal assistance;
(m) Federal disaster assistance and state
disaster grant;
(n) Home produce
utilized for household consumption;
(o) Housing subsidy received from federal,
state or local governments;
(p)
Funds distributed to a member of certain Native American tribes by the federal
government pursuant to 25
U.S.C.
1401,
5501, and
Pub. L.
92-254;
(q) Funds distributed per capita to or held
in trust for a member of a Native American tribe by the federal government
pursuant to 25 U.S.C.
1401,
5501, and
Pub. L.
92-254;
(r) Payment for supporting services or
reimbursement of out-of-pocket expense made to an individual volunteering as a:
1. Senior health aide; or
2. Member of the:
a. Service Corps of Retired Executives; or
b. Active Corps of
Executives;
(s)
Payment made to an individual from a program pursuant to
42 U.S.C.
4950 to
5084 if less than the minimum wage
under state or federal law, whichever is greater including:
1. Volunteers in Service to America
(VISTA);
2. Foster
Grandparents;
3. Retired and Senior
Volunteer Program; or
4. Senior
Companion;
(t) Payment
from the cabinet for:
1. Child foster care;
or
2. Adult foster care;
(u) Energy assistance payment made
under:
1. The Low Income Home Energy
Assistance Program (LIHEAP) pursuant to
42 U.S.C.
8621; or
2. Other energy assistance payment made to an
energy provider or provided in-kind;
(v) The first fifty (50) dollars of child
support payment;
(w) Earnings of an
individual attending school who is age nineteen (19) or under;
(x) Earnings of a dependent child under
eighteen (18) who is a high school graduate;
(y) Nonrecurring monetary gifts totaling 100
dollars or less per month per individual;
(z) The principal of a verified
loan;
(aa) Up to $12,000 to Aleuts
and $20,000 to an individual of Japanese ancestry for payment made by the
United States Government to compensate for a hardship experienced during World
War II;
(bb) Income of an
individual receiving SSI, including monthly SSI benefits and any retrospective
SSI benefits;
(cc) The essential
person's portion of the SSI check;
(dd) Income of an individual receiving
mandatory or optional state supplementary payment pursuant to
921 KAR 2:015;
(ee)
1. Any
federal tax refund or advance payment of a refundable federal tax credit;
or
2. The advance payment or refund
of earned income tax credit;
(ff) Payment made directly to a third party
on behalf of the applicant or recipient by a non-responsible person;
(gg) Interest and dividend income unless
derived from a corporate business;
(hh) In-kind income;
(ii) Income of a technically ineligible
child;
(jj) Payment made from the
Agent Orange Settlement Fund;
(kk)
KTAP payment including back payment;
(ll) Income of legal guardian of a minor
parent, unless the guardian meets the degree of relationship pursuant to
921 KAR 2:006, Section
6;
(mm) Payment made from the
Radiation Exposure Compensation Trust Fund;
(nn) Up to $2,000 per year of income received
by individual Native Americans denied from a lease or other use of
individually-owned trust or restricted lands;
(oo) Payment made to an individual because of
the individual's status as a victim of Nazi persecution;
(pp) Income received from temporary
employment from the United States Department of Commerce, Bureau of the
Census;
(qq) A payment received
from the National Tobacco Growers Settlement Trust;
(rr) A payment received from a crime victim
compensation program according to the Antiterrorism and Effective Death Penalty
Act of 1996 pursuant to 34
U.S.C.
20102(c);
(ss) A payment received from the Kinship Care
Program, pursuant to
922 KAR 1:130, including back
payment;
(tt) A payment made to
children of Vietnam veterans and certain other veterans, pursuant to
38 U.S.C.
1833;
(uu) A discount or subsidy provided to
Medicare beneficiaries pursuant to
42 U.S.C.
1395w-141;
(vv) Any cash grant received by the applicant
under the Department of State or Department of Justice Reception and Placement
Programs pursuant to 45
C.F.R.
400.66(d);
(ww) Reimbursement payment for a vocational
rehabilitation individual participating in Preparing Adults for Competitive
Employment pursuant to 29
U.S.C.
723(a)(5);
and
(xx) A payment received from
the Transitional Compensation for Abused Dependents Program,
10 U.S.C.
1059.
(3) Benefit calculation. Excluded income
pursuant to subsection (2) of this section and an applicable deduction listed
in this subsection shall be applied as follows:
(a) Work expense standard deduction of 175
dollars for full-time and part-time employment;
(b) If the caregiver is not the parent, legal
guardian, or a member of the benefit group, the dependent care disregard shall:
1. Be allowed as a work expense for:
a. An able-bodied child age thirteen (13) or
over and not under court supervision;
b. An incapacitated adult living in the home
and receiving KTAP;
c. A KTAP case
that is otherwise ineligible for KTAP without the benefit of the disregard for
child care, at the option of the recipient; or
d. The month of application for KTAP
benefits; and
2. Not
exceed:
a. $175 per month per individual for
full-time employment;
b. $150 per
month per individual for part-time employment; or
c. $200 per month per individual for child
under age two (2);
(c) Child support payment received and
retained until notification of eligibility for KTAP is received;
(d) Child support payment assigned and
actually forwarded or paid to the cabinet;
(e) For six (6) months, the first fifty (50)
percent of earned income not already deducted for each member of the benefit
group;
(f) Until an individual has
earnings, reported timely, from new employment, the deductions shall not be
available to the individual after expiration of the time limits; and
(g) For new employment, or increased wages,
acquired after approval and reported timely, a two (2) time only disregard per
employed adult member of the benefit group, the amount of six (6) full calendar
months earnings calculated as follows:
1. The
six (6) months earnings disregard shall be consecutive, and at the option of
the recipient; and
2. If otherwise
eligible, a sanctioned or penalized member of the benefit group may receive the
six (6) months earnings disregard.
(4) Deductions from earnings pursuant to
subsection (3)(a), (b) and (e) of this section shall not apply for a month the
individual:
(a) Reduces, terminates, or
refuses to accept employment within the period of thirty (30) days preceding
such month, unless good cause exists pursuant to
921 KAR 2:370, Section 6(1);
or
(b) Fails to report an increase
in earnings, that impacts eligibility, within ten (10) days of the change,
unless good cause exists as follows:
1. The
benefit group has been directly affected by a natural disaster;
2. An immediate family member living in the
home was institutionalized or died during the ten (10) day report period;
or
3. The responsible relative in
the case and the member employed, if different, is out of town for the entire
ten (10) day report period.
Section 6. Child Care Expense. With the
exception of those circumstances pursuant to Section 5(3)(b) of this
administrative regulation, a child care expense incurred as a result of
employment shall be paid pursuant to
922 KAR 2:160.
Section 7. Income and Resources of an
Individual Not Included in the Benefit Group.
(1) The income provisions of this section
shall apply to the following individuals, living in the home but not included
in the benefit group, pursuant to subsection (2) of this section:
(a) A stepparent;
(b) The spouse of a minor dependent
child;
(c) The spouse of a
specified relative other than a parent; and
(d) A parent of a minor parent.
(2) The gross income of the
individual shall be considered available to the benefit group, subject to the
following deductions:
(a) The first 175
dollars of the gross earned income; and
(b)
1. An
amount equal to the KTAP standard of need for the appropriate family size,
pursuant to Section 9 of this administrative regulation for:
a. The support of the individual;
and
b. A person living in the home
if:
(i) The needs of the person are not
included in the KTAP eligibility determination; and
(ii) The person is or may be claimed as a
dependent for the purpose of determining his federal personal income tax
liability by the individual;
2. An amount actually paid to a person not
living in the home who is or may be claimed by him as a dependent for the
purpose of determining his personal income tax liability by the individual;
or
3. Payment for alimony or child
support to a person not living in the home by the
individual.
(3)
A resource shall not be considered in determining eligibility of the parent,
minor dependent child, or specified relative other than a parent or the benefit
group that belongs solely to the:
(a)
Stepparent;
(b) Spouse of a minor
dependent child;
(c) Spouse of a
specified relative other than a parent; or
(d) Parent of a minor parent.
Section 8. Immigrant
Sponsor Income and Resources.
(1)
(a) For the purpose of this section, the
immigrant's sponsor and sponsor's spouse, if living with the sponsor, shall be
referred to as sponsor.
(b) This
subsection and subsections (2) though (6) of this section shall apply to an
immigrant who has an agreement executed other than an agreement pursuant to
8 U.S.C.
1183a.
(2) The gross non-KTAP income and resources
of an immigrant's sponsor shall be deemed available to the immigrant, subject
to a deduction established in this section, for a period of three (3) years
following entry into the United States.
(3) If an individual is sponsoring two (2) or
more immigrants, the income and resources shall be prorated among the sponsored
immigrants.
(4) If adequate
information on the sponsor or sponsor's spouse is not provided, a sponsored
immigrant shall be ineligible for a month.
(5) If an immigrant is sponsored by an agency
or organization, that has executed an affidavit of support, the immigrant shall
be ineligible for benefits for a period of three (3) years from date of entry
into the United States, unless it is determined that the sponsoring agency or
organization:
(a) Is no longer in existence;
or
(b) Does not have the financial
ability to meet the immigrant's needs.
(6) The provisions of this subsection shall
not apply to an immigrant pursuant to subsection (5) or (7) of this section.
(a) The gross income of the sponsor shall be
considered available to the benefit group subject to the following deductions:
1. Twenty (20) percent of the total monthly
gross earned income, not to exceed $175;
2. An amount equal to the KTAP standard of
need for the appropriate family size pursuant to Section 9 of this
administrative regulation of:
a. The sponsor;
and
b. Other person living in the
household:
(i) Who is or may be claimed by the
sponsor as a dependent in determining the sponsor's federal personal income tax
liability; and
(ii) Whose needs are
not considered in making a determination of eligibility for KTAP;
3. An amount
paid by the sponsor to a non-household member who is or may be claimed as a
dependent in determining the sponsor's federal personal tax
liability;
4. Actual payment of
alimony or child support paid to a non-household member; and
5. Income of a sponsor receiving SSI or
KTAP.
(b) Resources
deemed available to the immigrant shall be the total amount of the resources of
the sponsor and sponsor's spouse determined as if the sponsor were a KTAP
applicant in this state, less $9,500.
(7)
(a) For
a sponsored immigrant who enters the United States on or after December 19,
1997, who is required to complete a sponsorship agreement pursuant to
8 U.S.C.
1183a, the total gross income and resources
of an immigrant's sponsor and sponsor's spouse shall be deemed available to the
immigrant.
(b) The sponsor's
obligation shall be available until the:
1.
Immigrant:
a. Becomes a United States
citizen;
b. Is credited with forty
(40) quarters of work; or
c. Ceases
to hold the status of an immigrant lawfully admitted for permanent residence;
or
2. Sponsor
dies.
(c) The immigrant
shall provide the sponsorship agreement pursuant to
8 U.S.C.
1183a.
(8)
(a) The
actual amount provided by the sponsor shall be considered for a period up to
twelve (12) months from the date of determination, if an:
1. Amount less than the amount in the
sponsorship agreement is made available to the immigrant; and
2. Immigrant is determined
indigent.
(b) An
immigrant shall be determined indigent if:
1.
The amount of the sponsor's income and resources given to the immigrant is less
than the amount in the agreement; and
2. Without KTAP assistance and after
consideration of the immigrant's own income, cash, food, housing or assistance
provided by an individual including the sponsor, the immigrant is unable to
obtain food and shelter.
(9) Deeming of the sponsor's income shall not
apply for twelve (12) months if the:
(a)
Immigrant or immigrant's child has been subjected to extreme cruelty or battery
while living in the United States and the individual committing the battery or
extreme cruelty does not live with the child or parent if committed by a:
1. Spouse or parent; or
2. Spouse or parent's family living with the
immigrant or immigrant's child and the spouse or parent allows the cruelty or
battery; or
(b) Immigrant
is a child who lives with a parent who has been subjected to extreme cruelty or
battery while living in the United States, and the individual committing the
battery or extreme cruelty does not live with the child or parent if committed
by a:
1. Spouse; or
2. Member of the spouse's family living in
the same household and the spouse allows the cruelty or
battery.
Section
9. Payment Maximum.
(1) The KTAP
payment maximum includes an amount for food, clothing, shelter, and
utilities.
(2)
(a) Countable income, pursuant to Section 10
of this administrative regulation, shall be subtracted in determining
eligibility for and the amount of the KTAP assistance payment as follows:
Number of Eligible Persons
|
Payment Maximum
|
Standard of Need
|
1 person
|
$372
|
$481
|
2 persons
|
$450
|
$552
|
3 persons
|
$524
|
$631
|
4 persons
|
$656
|
$710
|
5 persons
|
$766
|
$790
|
6 persons
|
$864
|
$869
|
7 or more persons
|
$964
|
$948
|
(b) The
gross income limit shall be as follows for the appropriate family size:
Number of Eligible Persons
|
Maximum Gross Income Limits
|
1 Person
|
$890
|
2 Persons
|
$1,021
|
3 Persons
|
$1,169
|
4 Persons
|
$1,315
|
5 Persons
|
$1,462
|
6 Persons
|
$1,608
|
7 or more Persons
|
$1,754
|
(3) Since the payment maximum does not meet
full need, a forty-five (45) percent ratable reduction shall be applied to the
deficit between the family's countable income and the standard of need for the
appropriate family size.
(4)
(a) The assistance payment shall be the
lesser amount of either:
1. Fifty-five (55)
percent of the deficit pursuant to subsection (3) of this section; or
2. The payment maximum pursuant to subsection
(2)(a) of this section.
(b) As a result of applying the forty-five
(45) percent ratable reduction pursuant to subsection (3) of this section, an
eligible payment to an otherwise eligible family with no income shall be
calculated pursuant to
KRS
205.200(2).
(5) If a benefit group's assistance payment
equals zero (0), the benefit group shall be ineligible for KTAP.
(6) To the extent funds are available, the
payment maximum, gross income limit, and standard of need shall be the amount
established in this section in addition to cost of living adjustments
determined by the Social Security Administration that have taken place
beginning in 2023 pursuant to
42 U.S.C.
415(i) and published at
https://www.ssa.gov/cola/.
Section 10. Best Estimate.
(1) The benefit shall be computed by using a
best estimate of income that may exist in the payment month.
(2) The following method shall be used to
calculate a best estimate:
(a) For a case
with earned income, other than self-employment earned income, a monthly amount
shall be determined as follows:
1. Cents
shall:
a. Not be rounded to the nearest
dollar before adding or multiplying hourly or daily earnings; and
b. Be rounded to the nearest dollar before
adding or multiplying weekly, biweekly, semimonthly, monthly, quarterly, or
annual amounts.
2. Unless
it does not represent the ongoing situation, income from all pay periods in the
preceding two (2) calendar months shall be used.
3. A monthly amount shall be determined by:
a. Adding gross income from each pay
period;
b. Dividing by the total
number of pay periods considered;
c. Converting the pay period figure to a
monthly figure by multiplying a:
(i) Weekly
amount by four and one-third (4 1/3);
(ii) Biweekly amount by two and one-sixth (2
1/6); or
(iii) Semi-monthly amount
by two (2); and
d.
Rounding to the nearest dollar.
4. If income has recently begun, and the
applicant or recipient has not received a calendar month of earned income, the
anticipated monthly income shall be computed by:
a. Multiplying the hourly rate by the
estimated number of hours to be worked in a pay period; or
b.
(i)
Multiplying the daily rate by the estimated number of days to be worked in the
pay period; and
(ii) Converting the
resulting pay period figure to a monthly amount pursuant to subparagraph 3c of
this paragraph and rounding to the nearest dollar.
(b) For a case with
unearned income, other than unearned self-employment income, a monthly amount
shall be determined by:
1. Rounding cents to
the nearest dollar;
2. Using the
gross monthly amount of continuing, stable unearned income received on a
monthly basis; and
3. Averaging the
amount of unstable unearned income received in the three (3) prior calendar
months, unless it does not represent the ongoing situation.
(c) For a case with
self-employment income, a monthly amount shall be determined as follows:
1. If the self-employment enterprise has been
in operation for at least a year, the income shall be prorated by dividing the
income from the last calendar year by twelve (12);
2. If the self-employment enterprise has been
in operation for less than a year, the income shall be prorated by dividing by
the number of months the business has been in existence; and
3. Profit shall be determined by:
a. Rounding the total gross income to the
nearest dollar;
b. Rounding the
total amount of allowable expenses to the nearest dollar;
c. Dividing each by twelve (12), or the
appropriate number of months, and rounding to the nearest dollar; and
d. Subtracting the rounded monthly expense
from the rounded monthly income.
(3) The best estimate shall be recalculated:
(a) At six (6) month intervals for a case
with earned, unearned, or self-employment income;
(b) If the agency becomes aware of a change
in a circumstance; or
(c) To
reflect a mass change in the standard of need or payment maximum standard
pursuant to Section 9 of this administrative regulation.
Section 11. KTAP Recoupment. The
following provisions shall apply for recoupment of a KTAP overpayment.
(1) Necessary action will be taken promptly
to correct and recoup an overpayment.
(2) An overpayment shall be recovered:
(a) From an adult claimant, whether currently
receiving KTAP benefits:
1. After notice and
an opportunity for a fair hearing pursuant to
921 KAR 2:055 is given;
2. After administrative and judicial remedies
have been exhausted or abandoned; and
3. Including assistance paid:
a. Pending the hearing decision; or
b. Due to cabinet error;
and
(b)
Through:
1. Repayment by the claimant to the
cabinet;
2. Reduction of future
KTAP benefits, that shall result in the benefit group retaining, for the
payment month, family income and liquid resources of not less than ninety (90)
percent of the amount of assistance paid to a like size family with no income
pursuant to Section 9 of this administrative regulation;
3. Civil action in the court of appropriate
jurisdiction; or
4. If the cabinet
becomes aware of expunged electronic benefits transfer (EBT) payments,
reduction of the overpayment balance by an amount equal to the expunged
benefits.
(3)
In a case that has both an overpayment and an underpayment, the overpayment and
underpayment shall be offset one against the other in correcting the payment to
a current recipient.
Section
12. Avoiding an Overpayment.
(1)
A KTAP recipient may voluntarily:
(a) Return a
benefit payment; or
(b) Give
permission to the cabinet to use EBT benefits by completing and returning a
written statement requesting this option to avoid an overpayment if the case:
1. Is totally ineligible for the month the
payment is issued; and
2. Has not
been reduced for recoupment of a previous overpayment.
(2) If a payment is voluntarily
returned, the cabinet shall determine whether the recipient is due a refund as
described in Section 13 of this administrative regulation.
Section 13. Refund. A recipient shall be due
a refund in the following situations:
(1) An
amount in excess of the actual overpayment is recouped;
(2) An overpayment and an underpayment is
offset and a balance is owed to the recipient; or
(3) A KTAP payment that is voluntarily
returned to avoid an overpayment is compared to the current month obligation of
child support collected by the cabinet during the month the KTAP payment was
intended to cover, leaving a balance owed to the recipient.
Section 14. Correction of
Underpayments. The following provisions shall apply to a KTAP payment:
(1) An underpayment shall be promptly
corrected to:
(a) A current KTAP recipient;
or
(b) One (1) who would be a
current recipient if the error causing the underpayment had not
occurred.
(2) The
difference between the payment received by the recipient and the actual
entitlement amount shall be issued to the underpaid assistance group.
(3) In a determination of ongoing
eligibility, the corrective payment to the assistance group shall not be
considered as income or a resource in the:
(a)
Month the payment is paid; or
(b)
Next following month.