This letter transmits rule modifications for inclusion in the Cash Assistance Manual, the JFS 07081. The proposed effective date of the rule changes contained in this MTL is July 1, 2002. If there are any changes made to any of the rules contained in this MTL during the JCARR review period, corrected rules will be sent out with the next MTL. This cover letter includes a summary statement of policy changes. Each statement references the clearance control number (CCN) assigned when the policy change was placed in the clearance process.

Chapter 2000 TANF :OWF and PRC

Chapter 2000 has been renamed "TANF: OWF and PRC", and the Outline of Contents pages have been revised to reflect the name change.

Rule 5101:1-1-01 Temporary Assistance for Needy Families (TANF) Definitions

This is a new rule that was created to provide definitions of terms used in both federal and state laws. This rule was created so that, instead of including references in our other OWF rules to federal regulations such as the code of federal regulations or the Social Security Act, a reference to this rule can be included instead. It was our intent that the rule would serve to efficiently provide the actual federal and state definitions within our manual, and eliminate the additional steps necessary to find the definition within the federal and state regulations. We foresee that this rule is a work in progress, in that as federal and state regulations and definitions are added or modified, this rule will also need to be modified. (CCN 4893)

Rule 5101:1-23-01 Ohio Works First (OWF) Time-limited Receipt of Assistance

Former rule 5101:1-23-01 has been rescinded and is replaced by new rule 5101:1-23-01. New rule 5101:1-23-01 contains all of the time limit provisions contained in the former version of the rule, including the policy regarding the extension of OWF due to "state hardship", and also provides new policy regarding the extension of OWF due to "good cause", pursuant to Section 5107.18 of the Revised Code. Additionally, the rule includes language regarding the federal 60-month TANF time limit, and the extension of OWF assistance beyond the 60-month limit due to "federal hardship" as provided in 45 CFR 264.1. While the proposed effective date of this rule is July 1, 2002, no assistance group can be determined eligible for OWF under the good cause provision, nor the federal hardship provision until October 1, 2002, because both provisions are only applicable for benefits issued on or after October 1, 2002.

There are several important points to note about good cause, state hardship and federal hardship extensions:

• the extension of OWF assistance to an assistance group under the good cause provision is not subject to the 20% limit required by statute for the state and federal hardship extensions, there is NO limit to the number of families that can receive OWF due to good cause;
• there is a 24-month "waiting period" after an assistance group hits the 36-month time limit before the assistance group can qualify for OWF under the good cause extension; the 24-month "waiting period" is always the 24-month period that starts the month after the assistance group's 36th month, and ends 24 months thereafter;
• the 24- month "waiting period" does not require the assistance group to have a 24-month break in receipt of OWF assistance between the loss of OWF due to the 36-month time limit and the extension of OWF due to good cause, as a state hardship extension can be provided to the assistance group during the 24-month "waiting period" following the expiration of the 36-month limit. The receipt of the state hardship extension during the 24-month waiting period does not interrupt the waiting period or delay the subsequent approval of good cause, 24 months after the assistance group lost OWF eligibility due to the 36-month limit;
• there is also a 24-month "durational limit" for good cause extensions, which means a good cause extension(s) may be provided to an OWF assistance group for no more than a total 24 months whether consecutive or not;
• while the months for which OWF assistance is received by the assistance group due to state hardship count toward the federal 60-month limit, thereby reducing the 24 months potentially available months under the good cause provision, the state hardship months do not delay the assistance group's potential eligibility for a good cause extension or interrupt the 24-month "waiting period";
• once eligibility under good cause is established, no subsequent determination of good cause shall be made as long as all other OWF eligibility requirements continue to be met;
• if an assistance group loses OWF eligibility while receiving a good cause extension due to a failure to comply with the terms of a self-sufficiency contract, no new application, nor determination of good cause is necessary to re-establish OWF eligibility due to good cause once the assistance group complies and the minimum sanction period has expired;
• if an assistance group loses OWF eligibility while receiving a good cause extension for any reason other than a self-sufficiency contract failure and there is at least a one-day interruption in assistance, a new determination of eligibility for OWF under good cause must be made if the assistance group subsequently reapplies to participate; the assistance group does not lose OWF eligibility if the assistance group appeals the proposal to terminate OWF and wins the appeal;
• assistance groups who are determined eligible for OWF due a good cause extension are OWF recipients and as such are subject to all OWF eligibility requirements, as are assistance groups in receipt of OWF assistance due to state or federal hardship extensions;
• an assistance group cannot receive OWF assistance for more than 60 months, in accordance with federal TANF regulations, unless the assistance group is determined eligible for a federal hardship extension beyond the 60-month TANF limit;
• receipt of OWF assistance under both the good cause and the state hardship extension counts toward the federal 60-month time limit.

Examples to illustrate the application of good cause extensions and the interplay with hardship extensions follow.

Example 1: An OWF assistance group receives 36 months of OWF benefits as of June 30, 2002. The CDJFS determines that the assistance group is eligible for an extension of OWF due to state hardship for 6 months, beginning with July 1, 2002. OWF assistance for the assistance group ends December 31, 2002, when the state hardship extension ends. The assistance group has 42 countable months toward the federal 60-month limit.

On or after July 1, 2004, the assistance group is potentially eligible for an OWF extension due to good cause. This is because it has been 24 months since the assistance group lost OWF eligibility on June 30, 2002, due to the 36-month time limit. Even though the assistance group received OWF for an additional 6 months due to a state hardship extension during the 24-month "waiting period", the 6 months of state hardship do not affect the fact that the assistance group lost eligibility due to the 36-month time limit on June 30, 2002. So, on or after July 1, 2004, the assistance group can be determined to have good cause for reapplying and be eligible for a good cause extension as of that date. Receipt of OWF for the 6 months due to state hardship reduced the potentially available number of months under good cause from 24 to 18 months, but does not delay the date on which the assistance group can be determined eligible under good cause or interrupt the assistance group's 24-month "waiting period".

Example 2: An assistance group receives 36 months of OWF benefits as of June 30, 2002, and OWF assistance is terminated. On January 2, 2003, the assistance group is determined to be eligible for an extension of OWF benefits due to state hardship for 10 months. On September 30, 2003, the OWF extension due to state hardship is extended for another 10-month period. OWF eligibility due to the state hardship extension ends June 30, 2004 and OWF assistance is terminated. The assistance group has received 56 months toward the federal 60-month time limit.

As of July 1, 2004, the assistance group can be determined to be eligible for an extension of OWF benefits due to good cause, because it has been 24 months since the assistance group lost OWF eligibility on June 30, 2002, due to the 36-month time limit. However, as the assistance group has received 56 months of OWF assistance, the assistance group may be determined eligible (if otherwise eligible) under the good cause extension for only 4 additional months. After the 4 months under the good cause extension have been received due to the 60-month federal time limit, the CDJFS may determine that the assistance group is eligible for an extension beyond the 60-month limit due to federal hardship or must terminate the assistance group's OWF because it has reached the 60-month federal time limit.

CRIS-E programming changes are being made to fully support the application of the good cause and federal 60-month time limit policy. These programming changes are scheduled to be operational by cut-off in August 2002, so that the first possible extensions under good cause and federal hardship for October 1, 2002 will be supported in CRIS-E. (CCN 4893)

Rule 5101:1-23-01.1 OWF Time Limits: Calculation of the Twenty Per Cent Limit For State and Federal Hardship Extensions

Former rule 5101:1-23-011 has been rescinded and is replaced by new rule 5101:1-23-01.1. New rule 5101:1-23-01.1 contains all of the provisions contained in the former rule and includes policy regarding the calculation of the 20% limit for each CDJFS for both the state and federal hardship extensions. (CCN 4893)

Rules 5101:1-23-20 OWF: Income and Eligibility and 5101:1-24-20 Prevention, Retention and Contingency (PRC) Program: Excluded Income and Resources

In accordance with the provisions set forth in Am. S.B. 170 of the 124th General Assembly, the ODJFS is required to exclude payments made to individuals under this legislation for means-tested programs, including the OWF, PRC, RCA and DA programs. Essentially, these payments represent certain child support arrearage payments paid to the state during 1997 through 2000. Rule 5101:1-23-20 sets forth the policy for the OWF program, and rule 5101:1-24-20 sets forth the policy for the PRC program. (CCN 4796)

Please note that while the counties normally have flexibility in setting income and resource methodologies for inclusion in their PRC plans, Am. H.B. 170 requires that the payments made to individuals under the provisions contained in Am. S.B. 170 be disregarded.

Am. S.B. 170 was signed by the Governor on October 25, 2001, and was effective immediately upon the Governor's signature. The policy change is effective as of October 25, 2001 and any payments received by eligible individuals under Am. S.B. 170 must be excluded in determining eligibility for OWF, DA, RCA, and/or PRC. If the CDJFS becomes aware of any assistance group that has been adversely affected because of the receipt of a payment made under Am. S.B. 170, the CDJFS shall redetermine the assistance group's eligibility for OWF, DA and/or PRC excluding such payment, and restore any benefits lost by the adverse determination.

The payments to which these exclusions refer are those made to a "support payee" which is defined below. This definition has been included in the attached amendments to rules 5101:1-23-20, 5101:1-5-30 and 5101:1-5-40, and in new rule 5101:1-24-20.

A "Support payee" means a person who is entitled to receive support payments made under a child support order and with respect to whom both of the following apply:

(a)The person is a member of an assistance group that applied for and began participating in Ohio works first on or after October 1, 1997.

(b)Prior to the person's application for participation in Ohio works first, a support arrearage accrued under the child support order to which all of the following apply:

(i)The support arrearage was collected from payments on the support arrearages and not payments of current support.

(ii)The support arrearage was not collected pursuant to section 464 of Title IV-D of the "Social Security Act," 95 Stat. 860 (1981), 42 U.S.C. 664, as amended.

(iii)The support arrearage was collected on and after the date the assistance group of which the person is a member ceased participating in Ohio works first.

Chapter 3000

Rules 5101:1-5-30 DA: Resources and 5101:1-5-40 DA: Income

These two DA rules have been amended to provide for the exclusion of payments made under Am. S.B. 170 as income or resources in the DA program. The specific provisions affecting the rule changes are delineated in the narrative provided in this cover letter above under the sub-heading 5101:1-23-20 and 5101:1-24-20. (CCN 4796)

FOOD STAMP BENEFITS:

For the purpose of determining eligibility for food stamp benefits, Am. S.B. 170 allows exclusion of these payments to the extent permitted under federal law. In accordance with federal regulations at 7 CFR 273.8(c)(1) and 273.9(c)(8), the Food Stamp Program excludes nonrecurring lump sums as income in the month received; nonrecurring lump sums are considered as resources in the month received, unless specifically excluded from consideration as a resource by other federal laws. Administrative Code rules supporting this policy are 5101:4-4-07(B) and 5101:4-4-13(J).

INSTRUCTIONS: