XMILITARY COMBAT PAY

XDISASTER RELIEF EMPLOYMENT FUNDED UNDER NATIONAL EMERGENCY GRANTS

XDISASTER UNEMPLOYMENT ASSISTANCE

These rules are proposed to be effective July 2005. If no revisions are made to the proposed rules prior to the finalization by JCARR, they will become effective on a permanent basis on July 11, 2005. If changes are necessary, a copy of the revised rules will be forwarded to you at that time.

This transmittal obsoletes FACT No. 25. The FACT was implemented under emergency rule filing with an effective date of March 15, 2005 for the military combat pay. The disaster relief employment and disaster unemployment assistance exclusions were implemented with an immediate effective date.

MILITARY COMBAT PAY

Reason for Change:

On December 8, 2004, the President signed The Consolidated Appropriations Act, 2005, Public Law 108-447. This law contains a provision which excludes from consideration as income in the Food Stamp Program additional pay received by military personnel as a result of deployment to a combat zone. Public Law 108-447 reads in pertinent part:

notwithstanding section 5(d) of the Food Stamp Act of 1977, any additional payment received under chapter 5 of title 37, United States Code, by a member of the United States Armed forces deployed to a designated combat zone shall be excluded from household income for the duration of the member's deployment if the additional pay is the result of deployment to or while serving in a combat zone, and it was not received immediately prior to serving in the combat zone.

Under existing policy, the absent member would not be included as an assistance group (AG) member for purposes of determining food stamp benefit level. Additionally, only money actually made available to the applicant or participating food stamp AG by the absent family member is counted as income for food stamp purposes. Money is generally made available to the applicant or participating food stamp AG via a direct deposit of all or a portion of the military person's pay into a joint checking account. Occasionally such funds are made available to the AG via an "allotment" arrangement made by the military person for a portion of his or her pay to be sent to the AG. More often than not, when an "allotment" arrangement is made, it is the military person who receives the "allotment" with the bulk of his or her pay being sent directly to his or her family. Regardless of the arrangement made by the absent family member for his or her military pay, only that portion of his or her pay to which the AG has access should be counted when determining the AG's income for food stamp purposes.

Action Required:

As a result of Public Law 108-447, county agencies will now be required to determine if any of the "allotment" made available to the AG by an absent member deployed to a designated combat zone should be excluded when establishing the AG's income for food stamp purposes. A current listing of designated combat zones is attached for your reference and will be posted on the Innerweb in the Manual Desk Aids of the Food Stamp Certification Handbook under "http://emanuals.jfs.ohio.gov/work/FSH".

To determine if any of the military "allotment" made available to an AG by an absent member deployed to a designated combat zone should be excluded when determining eligibility, county agencies should:

(1)Establish what amount for food stamp purposes of the military person's pay that was actually available to the AG prior to the deployment of the military person to a designated combat zone.

XIf the military person was part of the AG for food stamp purposes prior to deployment this amount would be his or her net military pay.

XIf the military person was not part of the AG for food stamp purposes prior to the military person's deployment to a designated combat zone, this amount is the amount the absent military person actually made available to the family prior to deployment to the designated combat zone.

(2)Determine the amount of his or her military pay that the absent member deployed in a designated combat zone is making available to his or her family.

(3)If the amount of his or her military pay that the absent member deployed in a designated combat zone is making available is equal to or less than the amount the AG was receiving from the military person prior to deployment to a designated combat zone, all of the military "allotment" would be counted as income to the AG for food stamp purposes. Any portion of the amount that exceeds the amount the AG was receiving prior to deployment of the military person to a designated combat zone should be excluded when determining the AG's income for food stamp purposes.

Verification

In regard to verifying the deployed person's income and location, Food and Nutrition Service contacts with the military indicate that the deployed person's military pay record, the Leave and Earnings Statement (LES), is often sent directly to the family back home or can be mailed to the family back home by the deployed person. When the family back home has the LES, it will identify combat pay if it is being received and can be used to establish deployment to a combat zone and the amount of combat pay. Deployment to a combat zone can also be established through orders issued to the military person. Frequently entire units are deployed and the place of their deployment is a matter of public record. While specific arrangements can vary among the services and from base to base, AGs have various ways to obtain the pay information of the deployed person. Some have access via the web. Others can seek assistance via the local base financial office.

Implementation

Due to the legislative requirement, this policy is retroactive to October 1, 2004. Any AG that had an increase in income as a result of the deployment of the service member to a designated combat zone that was counted in their food stamp case as of October 1, 2004, is entitled to restoration of lost benefits. County agencies should make such a determination at the AG's next recertification, unless the AG requests a review of its case prior to that time. An AG that was denied because excludable income was counted, would also be entitled to a restoration of lost benefits. Any income excluded under the legislation would remain excluded until the AG's next recertification, in the event the exclusion is not renewed for fiscal year 2006. The income exclusion of military combat pay is effective March 15, 2005. The 120-day Quality Control variance exclusion applies to this provision. The 120-day variance exclusion period begins March 15th and ends July 13, 2005.

This income exclusion is being added to our updated list of excluded income in OAC 5101:4-4-13. Any of these funds that are kept in an account shall be treated in accordance with OAC 5101:4-4-03(G).

DISASTER RELIEF EMPLOYMENT FUNDED UNDER NATIONAL EMERGENCY GRANTS

Clarification

The Food and Nutrition Service has provided clarification on the treatment of disaster relief employment income received from a National Emergency Grant. National Emergency Grants are part of the Workforce Investment Act (WIA, Public Law 105-220). Section 181(a)(2) of the Workforce Investment Act states that allowances, earnings, and payments to individuals participating in programs under Title I of WIA must not be considered as income for purposes of determining eligibility for and the amount of income transfer and in-kind aid furnished under any Federal or federally assisted program based on need, other than as provided under the Social Security Act (42 U.S.C. 301 et seq.).

One of the reasons for national emergency grants is to provide assistance to an area within a state that has suffered an emergency or a major disaster as defined in the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Funds may be expended through public and private organizations, and may be used for temporary job creation in areas declared eligible for public assistance by FEMA, subject to the limitations of WIA section 173(d)(20 CFR 671.170).

Funds are used to provide disaster relief employment on projects that provide food, clothing, shelter, and other humanitarian assistance for disaster victims, and projects regarding demolition, cleaning, repair, renovation, and reconstruction of damaged and destroyed structures, facilities, and lands located within the disaster area. Individuals are eligible to be offered disaster relief employment if the individual is a dislocated worker, is a long-term unemployed individual, or is temporarily or permanently laid off as a consequence of the disaster. No individual can be employed for more than 6 months related to a single natural disaster.

The source of the income should be verified if the client suffered a job loss or was unemployed due to a recent disaster, if the employment is deemed temporary (less than six months), and if the type of work is disaster-related.

Additional information about National Emergency Grants can be found under section 173 of WIA and the exclusion of income is also codified in 20 CFR 667.272(c).

Implementation

The income exclusion of the disaster relief employment was effective with the publication of FACT #25. This income exclusion is being added to our updated list of excluded income and resources in OAC rules 5101:4-4-03.3 and 5101:4-4-13.

DISASTER UNEMPLOYMENT ASSISTANCE

Clarification

Public Law 100-707 authorizes the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act to pay Disaster Unemployment Assistance to any individual unemployed as a result of a major disaster. Individuals cannot be eligible for any other unemployment compensation and also receive disaster unemployment benefits. Payments are limited to 26 weeks.

Because disaster unemployment assistance is considered Federal major disaster and emergency assistance under the Stafford Act, it cannot be considered as income or as a resource when determining food stamp benefits. County agencies need only verify the source of the unemployment income only if the client suffered a job loss or was unemployed due to a recent disaster.

Implementation

The income exclusion of disaster unemployment assistance was effective with the publication of FACT #25. This income and resource exclusion is being added to our updated list of excluded income and resources in OAC rules 5101:4-4-03.3 and 5101:4-4-13.

Rule Review

The following rules were reviewed in accordance with the Ohio Revised Code Section 119.032. Each state agency is required to review its rules a minimum of once every five years. The intent of the law is to ensure that rules are clearly written and that program requirements are accurate, up-to-date, and clearly expressed. To the extent possible, unnecessary paperwork will be eliminated and local agencies will be given increased flexibility. The purpose of a rule review is to determine whether a rule should be continued without amendment, be amended, or be rescinded, taking into consideration each rule's scope and purpose.

Rules reviewed include the following: 5101:4-4-03.3 and 5101:4-4-13.

5101:4-4-03.3 - Food Stamps: Resources Excluded by Law

In addition to adding the previously mentioned exclusions, this rule has been amended to include the effective dates of various public laws, U.S. Code sections, and federal acts as required in Ohio Revised Code 121.75. Other various technical corrections have been made to the rule.

5101:4-4-13 - Food Stamps: Types of Excluded Income

In addition to adding the previously mentioned exclusions, this rule has been amended to reflect the change in the name from disability assistance (DA) to disability financial assistance (DFA). Other various technical corrections have been made to the rule.

Procedure 14 - AG Subject to Verification Requirements for Refusing to Cooperate with Quality Control Reviewer

Procedure 14 is being removed from the Food Stamp Certification Handbook as obsolete because the information contained in this procedure is provided in 5101:4-2-07 and 5101:4-2-09.

Training and Technical Assistance

Training and technical assistance needs to implement these rules will be minimal. Clarification regarding these rules will be available to county staff by ODJFS through the Bureau of County Oversight and Support.

Fiscal Impact

There should be no fiscal impact for the county agencies to implement these rules. No additional staff will be needed. No additional supplies, equipment or travel is involved.

FSTL Instructions

Combat Zone Tax Exclusion Areas - Page 1

Executive Order 12744 (effective January 17, 1991) - Arabian Sea Portion that lies North of 10 degrees North Latitude and West of 68 degrees East Longitude

• Bahrain
• Gulf of Aden
• Gulf of Oman
• Iraq
• Kuwait
• Persian Gulf
• Qatar
• Oman
• Red Sea
• Saudi Arabia
• United Arab Emirates

Direct Support of Executive Order 12744

• Turkey effective January 1, 2003
• Israel effective January 1, 2003 through July 31, 2003
• Eastern Med effective March 19, 2003 through July 31, 2003
• Jordan effective March 19, 2003
• Egypt effective March 19, 2003 through April 20, 2003

Executive Order 13239 (effective September 19, 2001)

• Afghanistan

Direct Support of Executive Order 13230

• Pakistan effective September 19, 2001
• Tajikistan effective September 19, 2001
• Jordan effective September 19, 2001
• Incirlik AFB Turkey effective September 21, 2001
• Kyrgyzstan effective October 1, 2001
• Uzbekistan effective October 1, 2001
• Phillipines (only troops with orders that reference OEF) effective January 9, 2002
• Yemen effective April 10, 2002
• Djibouti effective July 1, 2002

Combat Zone Tax Exclusion Area - Page 2

Executive Order 13119 (effective March 24, 1999)

Public Law 106-21 Establishing Kosovo as Qualified Hazardous Duty Area (March 24, 1999)

• The Federal Republic of Yugoslavia (Serbia/Montenegro)
• Albania
• The Adriatic Sea
• The Ionian Sea north of the 39th parallel

Public Law 104-117 Establishing a Qualified Hazardous Duty Area (November 1995)

• Bosnia
• Herzegovina
• Croatia
• Macedonia