The rules in this MTL are effective January 1, 2001. This cover letter includes a summary statement of each policy change. Each statement references the clearance control number (CCN) assigned when the policy change was placed in the clearance process.

CHAPTER 3000

Rule 5101:1-3-01 OWF: Definitions of Assistance Group Composition for Work Participation Rates

Rule 5101:1-3-01 is being modified to amend the definition of two-parent assistance group for clarity. This amendment is being made so that the definition of two-parent assistance group reflects the language contained in the final federal TANF regulations issued April 12, 1999. Specifically, the definition includes language that addresses the fact that two-parent assistance groups contain both natural or adoptive parents of a common child. (CCN 4642)

Rule 5101:1-3-12 - OWF: Work Activity Participation and Child Care

Language removed from rule 5101:1-3-16 regarding good cause circumstances to exempt individuals from participation in work activities has been added to paragraph (F) of this rule. (CCN 4583)

Rule 5101:1-3-16 - The Subsidized Employment Program

In order to align SEP with the final TANF regulations, changes have been made to the policy and processing of SEP cases.

Rule 5101:1-3-16, "Ohio Works First (OWF) Work Activities" has been rescinded. Information contained in Paragraph (A) of that rule regarding good cause has been moved to Rule 5101:1-3-12. Rule 5101:1-3-16 has been reissued and retitled as "The Subsidized Employment Program (SEP)".

The SEP rule is divided into three sections. Section "A" outlines the criteria for an employer to receive a SEP subsidy. Section "B" describes the Subsidized Employment Program for OWF recipients. Section "C" outlines the option for issuing an employer subsidy under PRC.

Effective January 1, 2001, SEP can only be provided to an individual who receives OWF. As long as the assistance group remains eligible for OWF, the SEP employee is subject to all OWF requirements set forth in Chapter 5107 of the Revised Code and Chapter 5101:1 of the Administrative code. These requirements include such things as signing and cooperating with the provisions of the self-sufficiency contract, reapplication requirements, and time limits.

More than one individual in an assistance group can be placed in SEP concurrently. There are not any lifetime limits to the number of months an individual can be placed in SEP.

Under the terms of the SEP contract, the county will issue a subsidy of $350.00 per month to the employer for a time period not to exceed six payment months per individual placed with that employer.

Employers are eligible for the monthly SEP payment provided that 1) the employee is eligible for OWF, and 2) the terms of the SEP contract are met. The contract must indicate that the SEP placement is for at least 30 hours per week.

SEP is not a grant diversion program and SEP cases will not be "frozen". Earnings from SEP employment is counted as earned income. Once the assistance group becomes ineligible for OWF for any reason, including earnings from the SEP placement, the OWF assistance group will be terminated. After the OWF assistance is terminated, the employer may continue to be eligible for a subsidy provided that the county: 1) has designated the employer subsidy as a PRC service under the county's PRC plan, 2) the employee is eligible for PRC and 3) the individual is still working for the employer and the terms of the original SEP contract are met. The county should structure the program in such a way that the employer and participant will not notice the transition of the subsidy payment from SEP to PRC.

Rule 5101:1-3-16 (C) states that an individual who is not receiving OWF may potentially be eligible for an employer subsidy through PRC. Although not addressed in this rule, state statute allows individuals who are receiving OWF to be potentially eligible to receive an employer subsidy under PRC. In order to issue a PRC employer subsidy, the employer subsidy must be designated as a service in the county's PRC plan and the individual must be eligible for PRC. Unlike SEP, there are not any restrictions in state regulations as to the number of hours worked by the employee, the amount of the employer subsidy, or the number of months of employer subsidy issued under PRC.

These changes will affect how SEP is processed in CRIS-E. When an individual begins SEP employment, the worker will enter the SEP activity code on WPAS. The worker will then enter the SEP employment on AEIEI, with an employment type code "S". The worker will re-run eligibility and authorize the OWF and MAC AGs. The SEP subsidy may continue as long as 1) the individual is eligible for OWF and 2) the individual is still working for the SEP employer and the terms of the contract are met.

If the assistance group becomes ineligible for OWF during the SEP contract period, the worker will end-date the SEP assignment on WPAS and the OWF AG will be closed. The employer subsidy may continue under PRC if the requirements of rule 5101:1-3-16 (C) are met. If an employer subsidy is issued under PRC, the county worker will enter the subsidy amount on the SFPR screen, using reason code 013. Please refer to OWF/PRC Guidance Letter No. 9-A for further information on PRC reporting.

For SEP placements beginning January 1, 2001, or later, CRIS-E will not issue SEP checks to reimburse the county for SEP payments to employers. The county will issue the subsidy to the employer and code the subsidy payment on the ODHS 2827. If the subsidy payment is for an OWF recipient and the subsidy is not being paid through PRC, the 2827 financial code is 223-50. If the subsidy is being paid out of PRC funds, the 2827 financial code is 227 53. CRIS-E will continue to reimburse the CDJFS for those SEP cases that began prior to January 1, 2001.

Counties must continue to explore eligibility for food stamps, Medicaid, child care, transportation and other supportive services necessary to support the individual's participation in SEP or any PRC subsidy program.

Because Medicaid and OWF are delinked, a separate eligibility determination is required for Medicaid. Ohio Revised Code 5101:1-40-02(D) currently provides that OWF AGs participating in SEP, but whose grant has been diverted to the employer, are considered to remain eligible for Medicaid as though they remained eligible for OWF. However, the revised rule contained in this MTL eliminates the diversion of the assistance grant and clearly delineates between the subsidy which is paid to the employer for someone who remains eligible for OWF and the subsidy which may be paid for someone who loses eligibility for OWF. In addition to Transitional Medicaid, some families will also remain eligible for MAC if their income remains under 100% of the federal poverty level. OAC 5101:1-40-02(D) has been pending revision due to concerns relating to the impact on Medicaid. Recently, federal clarification has been received and 5101:1-40-02(D) will be revised to reflect the clarification contained in this paragraph. (CCN 4591)

Rule 5101:1-23-01 - OWF: Time Limited Receipt of Assistance

Welfare-to-Work

Rule 5101:1-23-01, "OWF: Time-Limited Receipt of Assistance" is being amended to add language from the federal regulations regarding receipt of Welfare-to-Work (WtW) assistance as it relates to the OWF time limits. We have received several inquiries regarding how federal Welfare-to-Work (WtW) provisions impact OWF time limits, so we are expanding this rule to include this information, which has been in federal law since the issuance of the TANF regulations, and was also included in final federal regulations issued April 12, 1999. Each CDJFS is bound by these federal regulations.

There are two types of WtW grants: (1) formula grants to states, and (2) competitive grants to local communities. Ohio does not currently receive any of the formula grant monies but there are a number of counties and communities that receive competitive grant monies.

Pursuant to federal regulations set forth in 45 CFR §260.32, WtW assistance can be provided in the form of WtW "cash" assistance and "non-cash" assistance. WtW cash assistance benefits are countable toward the 60-month TANF time limit - and as a result, count toward the 36-month OWF time limit, while WtW non-cash assistance benefits do not count against the TANF (or OWF) time limit.

The federal definition of WtW cash assistance differs somewhat from the federal definition of TANF assistance. 45 CFR §260.32 defines WtW cash assistance. WtW cash assistance only includes benefits that: (1) meet the definition of assistance at §260.31; and (2) are directed at basic needs. Thus it includes benefits described in paragraphs (a)(1) and (a)(2) of §260.31, but excludes benefits described in (a)(3) and (b) of §260.31.

In defining "WtW cash assistance", HHS started with the presumption that, to be considered "WtW cash assistance", a benefit must fall within the definition of "assistance". The federal definition of TANF assistance is found at 45 CFR §260.31. First, "WtW cash assistance" includes assistance designed to meet a family's ongoing, basic needs. Second, it includes such benefits as cash assistance to the family, even when provided to participants in community service or work experience (or other work activities) and conditioned on work. The definition of "WtW cash assistance" also incorporates both cash payments and benefits in other forms that can be legally converted to currency. This definition does not limit the types of WtW benefits for which families that have received 60 months of TANF benefits are eligible. Under 45 CFR §264.1(a)(3), State and local agencies may provide cash and noncash WtW assistance and other benefits to such families beyond the 60-month limit on assistance.

Paragraphs (a)(1) and (a)(2) of 45 CFR §260.31 state, in part:"... 'assistance includes cash payments, vouchers, and other forms of benefits designed to meet a family's ongoing basic needs...It includes such benefits even when they are provided in the form of payments by a TANF agency, or other agency on its behalf, to individual recipients, and conditioned on participation in work experience or community service...". Thus, services, work supports, and nonrecurrent, short-term benefits that are excluded from the definition of assistance at 45 CFR §260.31(b) are not "WtW cash assistance".

If a benefit falls within the TANF definition of assistance, but does not meet the definition of "WtW cash assistance", it is considered "noncash assistance". By statute at Section 408(a)(7)(G) of the Social Security Act, WtW "noncash assistance" does not count against the 60-month TANF time limit. Examples of WtW "noncash assistance" would include housing vouchers or a State version of food stamps. Also excluded are supportive services provided to nonworking families. Although these services meet the TANF definition of assistance, these WtW benefits are services designed to meet specific nonbasic needs, and are thus not like cash.

Paragraphs (a)(3) and (b) of 45 CFR§260.31 provide for the following exclusions from the definition of TANF "assistance":

(1)Nonrecurrent, short -term benefits designed to deal with a specific crisis situation or episode, are not intended to meet recurrent or ongoing needs, and will not extend beyond four months;

(2)Work subsidies - payments to employers or third parties to help cover the costs of employee wages, benefits, supervision and training;

(3)Supportive services such as child care and transportation to families who are employed;

(4)Refundable earned income tax credits;

(5)Contributions to and distributions from Individual Development Accounts (IDA);

(6)Services such as counseling, peer support, child care information and referral, transitional services, job retention, job advancement and other employment-related services that do not provide basic income support; and

(7)Transportation benefits provided under a Job Access or Reverse Commute project, pursuant to Sections 404(k) of the Act, to an individual who is not otherwise receiving assistance.

45 CFR §264.1(a)(3) provides that a state must not count any month for which an individual receives only noncash assistance provided under WtW, pursuant to section 403(a)(5) of the Social Security Act. 45 CFR §264.1(a)(3) also provides policy excluding months of assistance from the federal five year time limit, including the provisions that a state may provide cash [and non-cash] assistance under WtW, pursuant to section 403(a)(5) of the Social Security Act, to a family that is ineligible for TANF solely because it has reached the five-year time limit.

Because of the potential impact on OWF time-limited receipt of assistance, it is important to note and understand all of the ramifications associated with the use of WtW assistance in serving needy families. A family's time-limited OWF assistance will not be adversely affected by the receipt of WtW non-cash assistance services. This is an important difference between OWF (TANF) regulations and WtW regulations - an unemployed family can be served with WtW noncash assistance, and such receipt does not count as receipt of cash assistance for WtW or OWF/TANF. Conversely, supportive services provided to an unemployed family with OWF monies are countable toward the OWF time limit. Consequently, we encourage providers to carefully examine the circumstances of the individuals in the population to be served with WtW assistance so that both the WtW and OWF monies are maximized to the benefit of the families who are served.

In those situations where the agency has determined that WtW cash assistance services have been provided to individuals for whom the OWF time limit is countable, those months for which WtW cash assistance was provided are countable toward the individual's 36-month limit. Months of receipt of WtW cash assistance from 10/01/97 for countable individuals must be added to the individual's time limit count in CRIS-E. Those WtW cash assistance benefits will have to be added for countable individuals via the TLOS CRIS-E screen.

Head-of-Household Designation

• Two-Parent Assistance Groups

This rule is also being amended to add language to paragraph (C), regarding the designation of head-of-household in a two-parent assistance group. This paragraph was expanded to include language which addresses those situations when another parent becomes a required member of an existing two-parent assistance group. When this situation occurs, a new head-of-household designation may need to be made, depending on the ages and marital status of each of the parents who are required assistance group members.

For example, if a two-parent assistance group contains two adult parents who are unmarried, one of the unmarried parents is designated as head-of-household. If another adult parent becomes a required member of the assistance group (because the incoming parent has a child in common with one of the other adult parents), a new head-of-household designation will need to be made. The same would be true if another adult parent becomes a required member of the two-parent assistance group containing married adult parents. A head-of-household designation is necessary because the entering adult parent can be designated head-of-household. If, however, the entering adult parent is not designated as head-of-household, then both the married parents in the original two-parent assistance group are countable for time limits; one as head-of-household and the other as the spouse of the head-of-household.

Another example is when a two-parent assistance group contains two unmarried minor parents. Because they are unmarried, one of the minor parents is designated as head-of-household for OWF time limit purposes. Another minor parent then becomes a required member of the two-parent assistance group. Therefore, a new head-of-household designation will need to be made because the assistance group contains three minor parents and one of them must be designated as head-of-household. Conversely, if the parent who becomes a required member of this two-parent assistance group is an adult, there is no head-of-household designation to be made; the adult parent is the head-of-household. With the inclusion of the adult parent, neither of the minor parents are considered to be a minor head-of-household (i.e., a minor child who is a parent of a child included in the same assistance group that does not include an adult, as set forth in Section 5107.02 of the Revised Code).

• Assistance groups excluding an adult and containing two minor sibling parents and their sibling(s)

An additional paragraph was added to the rule under paragraph (C) to address the head-of-household designation when an assistance group does not contain an adult, but contains (at least) two minor parents and their children, and a sibling(s) of these minor parents. In accordance with standard filing unit policy, because the minor parent siblings are each required to be in two separate filing units (i.e., each minor parent in an assistance group with their child, and also in an assistance group with their siblings), the filing units must be combined into one assistance group. Even though this assistance group contains more than one parent, it is not a two-parent assistance group, as defined in rule 5101:1-3-01, which states that a two-parent assistance group contains both natural or adoptive parents of a common child. As a result, this assistance group is not subject to a head-of-household designation, and both of the minor parents are countable for OWF time limit purposes. In these cases, CRIS-E Help Desk intervention will be necessary to ensure that both minor parents are identified in CRIS-E as countable for time limits.

Paragraph (E) of the rule has also been amended for clarity. A sentence has been added to paragraph (E) which states that any month for which any of the conditions set forth in paragraphs (E)(1) to (E)(12) exist that appear on an individual's time limit count must be removed from the individual's time limit count via CRIS-E screen TLIN. (CCN 4642)

CHAPTER 4000

ODJFS 02132 "Affidavit in Support of Application for Replacement Warrant"

The ODHS 2132 has been revised effective November 2000 to change references from the County Department of Human Services to County Department of Job and Family Services. The revised form is available in the warehouse.

INSTRUCTIONS: