BEFORE THE DEPARTMENT OF PUBLIC

HEALTH AND HUMAN SERVICES OF THE

STATE OF MONTANA

 

In the matter of the amendment of ARM 37.70.107, 37.70.110, 37.70.115, 37.70.305, 37.70.311, 37.70.401, 37.70.402, 37.70.406, 37.70.407, 37.70.408, 37.70.601, 37.70.602, 37.70.607, and 37.70.901 pertaining to Low Income Assistance Program (LIEAP) amendments for the 2014-2015 and 2015-2016 heating season

) ) ) ) ) ) ) ) ) )

NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO: All Concerned Persons

 

          1. On November 4, 2015, at 2:30 p.m., the Department of Public Health and Human Services will hold a public hearing in Room 207 of the Department of Public Health and Human Services Building, 111 North Sanders, at Helena, Montana, to consider the proposed amendment of the above-stated rules.

 

2. The Department of Public Health and Human Services will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Public Health and Human Services no later than 5:00 p.m. on October 28, 2015, to advise us of the nature of the accommodation that you need. Please contact Kenneth Mordan, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; telephone (406) 444-4094; fax (406) 444-9744; or e-mail [email protected].

 

3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

 

          37.70.107 REFERRALS TO THE QUALITY ASSURANCE DIVISION, PROGRAM COMPLIANCE BUREAU (1) The Department of Public Health and Human Services (DPHHS), Quality Assurance Division, Program Compliance Bureau (PCB), has the power and duty to:

          (a) investigate matters relating to low income energy assistance LIEAP including, but not limited to, applications, awards of benefits, and information received relating to an application;

          (b) through (c)(ii) remain the same.

          (2) Local Ccontractors may must make reports of possible overpayments or fraud to the Department of Public Health and Human Services (DPHHS), department's Intergovernmental Human Services Bureau (IHSB), P.O. Box 202956, Helena, MT 59620-29536. IHSB will review cases referred prior to referral to the DPHHS Audit and Compliance Bureau PCB.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.110 FRAUD/TRANSFER OF RESOURCES (1) Whoever A person who knowingly obtains by means of a willfully false statement, representation, or impersonation or other fraudulent device, low income energy assistance LIEAP benefits to which he or she is not entitled is guilty of theft as provided in 45-6-301, MCA, and is ineligible for assistance for the entire current heating season.

          (2) If an individual a person appears to have received assistance fraudulently, the local contractor must report all facts of the matter to the Audit and Compliance Bureau Intergovernmental Human Services Bureau (IHSB) to determine if the case should be referred to the department's Quality Assurance Division, Program Compliance Bureau (PCB). The bureau PCB may in turn refer the matter to the Department of Justice or the county attorney of the county in which the recipient person resides for further action.

          (3) Resale or transfer of benefits to another party person is expressly prohibited.

          (4) Fuel vendors may not retain benefits of LIEAP beneficiaries households who have discontinued service.

          (5) Fuel assistance shall will not be granted to any a person who has deprived himself or herself, directly or indirectly, of any resources for the purpose of qualifying for assistance. Any A person who has transferred resources or interest in resources within one year of the date of application without receiving adequate consideration in money or money's worth shall will be presumed to have made such transfer for the purpose of qualifying for assistance.

          (a) The applicant or recipient A person may submit evidence that he or she did not make the transfer of resources for the purpose of to qualifying for assistance LIEAP benefits.

          (b) It is the responsibility of the applicant person to submit this evidence.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.115 OVERPAYMENTS AND UNDERPAYMENTS (1) When it is discovered that an administrative error resulted in an underpayment of low income energy assistance LIEAP benefits, it may be corrected by increasing the benefit award to cover the underpayment.

          (a) For purposes of determining financial eligibility, such retroactive corrective payments shall will not be considered as income.

          (2) Except as provided in (3), current and future program year payments of low income energy assistance LIEAP benefits will be reduced the full amount of prior overpayments, unless the administrative cost would exceed the amount of overpayment.

          (a) Additionally, cases in which the recipient a person willfully made false statements or withheld information causing overpayment are to must be referred to the audit and compliance bureau Intergovernmental Human Services Bureau (IHSB) to determine if the case should be forwarded to the department's Quality Assurance Division, Program Compliance Bureau (PCB) for determination of fraud as provided in ARM 37.70.110.

          (3) When it is discovered that the local contractor caused an overpayment of low income energy assistance LIEAP benefits or weatherization services, at the sole discretion of the department, the local contractor may be required to repay the entire overpayment to the department, rather than the overpayment being withheld from the recipient household's future payments.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.305 APPLICATION (1) Except as provided in (4), a new application for low income energy assistance LIEAP benefits must be made for each new heating season and when a household changes moves to a different residence during the heating season. An application is initiated Any adult member of the household may file by filing a signed written application on the form prescribed by the department at the office of the local contractor in the area where the applicant lives household resides. If necessary, the local contractor will provide assistance in completing the application form.

          (2) The application form may be submitted by mail or by other means to the local contractor's office. The department or its local contractor may, at their option, accept applications at locations other than the local contractor's office, such as a senior citizen center, as designated by the department or its local contractor.

          (3) An application for low income energy assistance LIEAP benefits generally must be filed during the heating season for which assistance is being sought, that is, between October 1 and April 30, except as provided in (4). If April 30 falls on a weekend or legal holiday observed by Montana state government, the local contractor must accept applications on the next business day after the weekend or legal Montana state government observed holiday. However, at the option of the department, applicants who use a household's application for certain types of deliverable heating fuel which are sold at lower prices during the summer months or applicants for emergency services may be permitted to file their applications filed prior to October 1 of the heating season for which they are a household is seeking assistance. In the case of applicants households who use other types of fuel and who are not seeking emergency services, the local contractor department may in its discretion accept applications prior to October 1, but the date of application will be deemed to be October 1.

          (4) Residents of publicly subsidized housing who receive a minimum benefit as provided in ARM 37.70.601(2) because their energy costs are included as a portion of their rent and their rent is a fixed portion of their income are required to file an application only once every five years if they continue to live in the same subsidized housing unit. When such a resident is found to be eligible for LIEAP, the household will be approved to receive a minimum benefit for a five-year period as provided in ARM 37.70.601(2) without filing a new application in the four subsequent heating seasons. A new application may be filed in the following situations, however: Publicly subsidized housing households whose energy costs are included as a fixed portion of their rent or households who reside in publicly subsidized housing and have an obligation to pay a base-load electric bill are not eligible for a regular LIEAP benefit computed using the benefit matrices and multipliers in the LIEAP Benefit Award Matrix and Table of Multipliers for the 2015-2016 heating season. However, these households are eligible for weatherization assistance as provided in ARM Title 37, chapter 71 and a modified LIEAP benefit.  The modified LIEAP benefit is equal to five percent of the amount of a regular LIEAP benefit computed using the benefit matrices and multipliers in ARM 37.70.601 or a minimum payment of $25, whichever is greater, paid to the household annually.  Households determined eligible for the modified LIEAP benefit whose economic and housing situation does not change are eligible for a period of five years.

          (a) (5)  A resident of p Publicly subsidized housing households who moves into nonsubsidized housing during the five-year eligibility period may reapply for a prorated benefit for the current heating season based on the resident's household's new circumstances as provided in ARM 37.70.602. The resident household will then be required to may file a new application for each subsequent heating season as long as the resident household lives in nonsubsidized housing, as provided in (1).

          (b) (6)  A resident of pPublicly subsidized housing households who moves to another publicly subsidized housing unit during the five-year eligibility period may file a new application for a minimum modified LIEAP benefit for another five-year period, which will run from the date of the new application, if the household's energy costs are included as a portion of its rent and its rent is a fixed portion of its income or if it has an obligation to pay a base-load electric bill.

          (5) (7)  No person or family household or any of its members will be excluded from participation in the low income energy assistance program LIEAP or be discriminated against in regard to the amount of benefits or in any other regard on the basis of race, color, religion, sex, culture, age, creed, marital status, physical or mental disability, political beliefs, or national origin.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.311 PROCEDURES FOLLOWED IN PROCESSING APPLICATIONS AND VERIFIABLE ELIGIBILITY REQUIREMENTS (1) The procedures for determining eligibility for low income energy assistance LIEAP benefits is are as follows:

          (a) An application is filed by tThe applicant household files an application together with verification for determining financial eligibility and benefit award.

          (b) After an application is filed, the local contractor may request any additional information or documentation needed to determine the household's eligibility, or benefit amount, or both.

          (c) If an applicant a household fails to provide information or documentation necessary for a determination of eligibility within 45 days of the date of the most recent request for additional information, the application will be denied, but the household may reapply for assistance.

          (d) If an application is denied, the household may reapply for assistance.

          (i) (2)  Eligibility requirements that must be verified include but are not limited to:

          (A)  a social security number (SSN), for each household member and proof of U.S. citizenship, or lawful entry into the United States with the intent of establishing permanent residence for each member of the household over the age of three weeks; or proof of status as a qualified alien as defined in 8 U.S.C. 1641(b). Other elibibility requirements that may be verified include:

(B) (a) photo identification for each household member aged 18 years of age or older may be required if the SSN has not been verified.;

          (b) Ffor members under age 18, a birth certificate will be accepted if the SSN has not been verified;

          (C) (c)  current receipt of benefits under the Supplemental Nutrition Assistance Program (SNAP), supplemental security income, or cash assistance funded by temporary assistance for needy families (TANF);

          (D) (d)  household income/ and resources;

          (E) (e)  proof of lack of tax dependency status for individuals household members enrolled at least half time in an institution of higher education;

          (F) (f)  proof of the household's obligation to pay for the cost of heating its residence except for residents of publicly subsidized housing who are receiving only a minimum benefit, and type of primary heating fuel for the household's residence; and

          (G) (g)  receipts to support paid eligible energy costs when a household seeks direct reimbursement for paid eligible energy costs as provided in ARM 37.70.607(2). Failure to provide receipts to the local contractor within 45 days of the heating season's end or by June 25 20 in the case of an extended heating season will result in forfeiture of any remaining benefits for that heating season.

          (ii) (3)  If the local contractor reasonably doubts reasonable doubt exists as to the accuracy of the information provided by the client household, then the type of dwelling, the number of bedrooms, and/or the primary heating fuel/, and the primary fuel vendor must also be verified.

          (b) (4)  The local contractor may at its option conduct an interview with the applicant household members in person or by telephone, if necessary, to determine eligibility. In cases where the local contractor considers an interview to be necessary and neither the local contractor's office nor a telephone is reasonably accessible to the applicant household, the local contractor will conduct the interview at some place which is reasonably convenient for both the applicant the household and the local contractor.

          (c) (5)  After a household's eligibility and benefit amount has have been determined by the local contractor, notice of the decision will be given to the applicant household as provided in ARM 37.70.312.

          (2) (6)  A household's eligibility and benefit amount will be determined based on the household's circumstances in regard to the following at on the time date the application is filed, including, but not limited to,:

          (a) household income level;

(b) the type of the household's dwelling type,;

          (c) the number of bedrooms in the dwelling,;

          (d) the dwelling's primary heating fuel,;

          (e) the heating district in which the dwelling is located,;

          (f) verification of the identities and citizenship or lawful residence qualified alien status of those residing in the household,; and

          (g) the household's resources.

          (7) Eligibility in regard to income, however, is based on the household's income in the 12 months immediately preceding the month of application. If the household is ineligible using income in the 12 months preceding the month of application, eligibility will be determined by ascertaining the household's gross income in the three months immediately preceding the month of application and multiplying that figure by four to arrive at the household's annual income based on the three-month period.

          (3) (8)  The applicant household has the burden of proving that the household it meets all requirements for eligibility.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.401 DEFINITIONS (1) "Annual gross income" means all nonexcluded income including, but not limited to, wages, salaries, commissions, tips, profits, gifts, interest or dividends, retirement pay, workers' compensation, unemployment compensation, social security retirement and disability payments, supplemental security income payments, veterans administration payments, cash public assistance benefits such as temporary assistance for needy families or tribal, state, or county general relief, and capital gains received by the members of the household in the 12 months immediately preceding the month of application.

          (a) and (2) remain the same.

          (3)  "Applicant" means a person of legal age (18 years or older) or an emancipated minor applying for LIEAP benefits for all eligible household members in the household at the time of application. The applicant does not need to be an eligible member of the household.

          (4)  "Base-load electric" costs are the costs represented in a utility company's bill for electricity that powers lights and appliances other than for heating or cooling, and electric water heaters.

          (5) "Deliverable heating fuel" means heating fuel that can be delivered to the customer and stored for later use, for example, propane, fuel oil, kerosene, or coal.

(3) (6) "Disabled individual household" means a household in which resides at least one person who has been determined disabled based on the criteria for disability provided in Title II or Title XVI of the Social Security Act.

          (4) (7)  "Elderly" means a person who is 60 years of age or older.

          (5) (8)  "Eligible energy costs" means costs of the various types of energy supplied by the household's fuel vendors. Energy delivered by the household's fuel vendors prior to October 1 is ineligible for payment in the current heating season, except in the sole discretion of the department, charges incurred from July 1 through September 30 for certain types of deliverable fuels (e.g., wood, coal, fuel oil, and propane) to heat a residence are eligible for payment in the current heating season. Provided, however, that eligible energy costs may include energy delivered prior to October 1 for applications filed after September 30, when the type of fuel and the vendor's normal billing procedures make the above definition impracticable. Eligible energy costs include tank rental and replacing valves on portable propane tanks, but not deposits or fuel tank set ups.

(9)  "Eligible household member" is any person who is a U.S. citizen or qualified alien and is a member of a household that meets the LIEAP eligibility requirements.

          (10) "Emancipated Minor" is any person under the age of 18 that has been released from parental care or custody and granted full legal rights and responsibilities as provided in 41-1-401, MCA.

          (6) (11)  "Federal fiscal year (FFY)" means the period from October 1 of one calendar year through September 30 of the next calendar year. For example, federal fiscal year 2011 2016 means the period from October 1, 2010 October 1, 2015 through September 30, 2011 September 30, 2016.

(7) (12)  "Heating season" means the period from October 1 to April 30 of the following year. For example, the 2009 2015 through 2010 2016 heating season is the period from October 1, 2009 October 1, 2015, through April 30, 2010 April 30, 2016. The department may, however, in its sole discretion, extend the heating season beyond April 30. If the heating season is extended beyond April 30, LIEAP benefits may be applied against energy costs incurred in the additional months of the heating season, but no applications for benefits may be filed after April 30 except as provided in ARM 37.70.305. Should If the department extends the end of the heating season beyond April 30, requests for reimbursement must be received by the agency local contractor no later than June 25 June 20 of the same year.

          (8) (13)  "Household" means any individual or group of individuals who are living together as one economic unit for whom residential energy is customarily purchased in common together or who make undesignated payments for energy in the form of rent.

          (a) Any foster child or foster adult who lives in the household at the time of application and for whom foster care payments are being made may be either included or excluded from the household at the option of the LIEAP applicant. This option must be exercised by the household at the time of application and cannot be changed until a new application for the next heating season is made.

          (b) remains the same.

          (9) (14)  "Incurment" means that portion of a medically needy recipient person's income that exceeds the department's medically needy income level standard for the size of the filing unit household.

(15)  "Ineligible household member" is a person who is not a U.S. citizen or qualified alien that is a member of a household that meets the LIEAP eligibility requirements. An ineligible household member of legal age may apply for LIEAP benefits on behalf of eligible household members.

          (10) (16)  "In-kind income" means goods, services, or other nonmonetary benefits, including but not limited to meals, clothing, housing, or produce.

          (11) and (12) remain the same, but are renumbered (17) and (18).

          (19)  "Life threatening" means any of the conditions of emergency specified in ARM 37.70.901 that may cause death or severe permanent damage to the health of one or more household members.

          (13) (20)  "Local contractor" means a community-based organization with which the department has contracted to provide outreach and to receive and process applications for LIEAP and the Wweatherization assistance Pprogram.

          (14) (21)  "Medically needy" means an individual a person or family otherwise eligible for Montana Medicaid (medical assistance) but whose income exceeds medically needy income levels.

          (15) remains the same, but is renumbered (22).

          (16) (24) "Minimum Modified LIEAP benefit" means the fixed amount paid to eligible households who reside in publicly subsidized housing as provided in ARM 37.70.601 and whose energy costs are included as a fixed portion of their rent or who have an obligation to pay a base-load electric bill. The minimum benefit is not computed using the benefit matrices and income/climatic adjustment multipliers in ARM 37.70.601 but is a single payment of $50 for a five-year period. The modified LIEAP benefit is equal to 5 percent of the amount of a regular LIEAP benefit computed using the benefit matrices and multipliers in the LIEAP Benefit Award Matrix and Table of Multipliers for the 2015-2016 heating season or a minimum payment of $25, whichever is greater paid to the household annually.  Households determined eligible for the publicly subsidized housing modified LIEAP benefit, whose economic and housing situation does not change, are income eligible for a period of five years.

          (17) remains the same, but is renumbered (23).

          (18) through (20) remain the same, but are renumbered (25) through (27).

          (21) (28)  "Nonrecurring lump sum payment" means a single, one time sum of money paid at one time rather than in two or more separate payments.

          (22) remains the same, but is renumbered (29).

          (30) "Publicly subsidized housing" means government-sponsored economic assistance aimed towards providing affordable housing for persons in need.

          (31)  "Qualified alien" means an alien who, at the time of submitting a LIEAP application, is a qualified alien as defined by 8 U.S. Code 1641(b).

          (23) (32) "Self-employment deductions" means all costs, excluding depreciation costs, necessary for the creation of any income from self-employment. As an alternative, the local contractor may at the request of the household deduct 40 percent from the annual gross receipts for self-employment deductions.

          (24) (33) "Shelters" mean a dwelling unit or units whose principal purpose is to house on a temporary basis, individuals who may or may not be related to one another, including transients, students, or other individuals seeking short-term or nonpermanent living situations.

(25) remains the same, but is renumbered (34).

          (26) (35)  "Single family unit" means a building which contains a single shelter or rental unit for living purposes. For purposes of the program, a doublewide trailer or mobile home is considered a single family unit.

          (27) (36) "State fiscal year" means the period from July 1 of one calendar year through June 30 of the next calendar year. For example, state fiscal year 2011 2016 means the period from July 1, 2010 2015 through June 30, 2011 2016.

          (28) remains the same, but is renumbered (37).

          (29) (38)  "Valid loan" means a person's lawful promise to repay a monetary payment sum received from a source outside the household, including but not limited to a private individuals or a and commercial institutions, which must be repaid at a future date. The agreement to repay Unless otherwise provided in law, the loan may be either oral or written.

          (30) (39)  "Vendor payment" means a monetary payment made on behalf of the household by a person or entity which who is not a member of the household to a third party outside the household such as a creditor of the household or a person or entity providing vendor of services or goods to the household.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.402 GENERAL ELIGIBILITY REQUIREMENTS, ELIGIBILITY REQUIREMENTS FOR CERTAIN TYPES OF INDIVIDUALS, AND HOUSEHOLDS  

          (1) With the exception of residents of publicly subsidized housing described in (7), only hHouseholds that are obligated to pay for fuel to heat their homes are eligible for low income energy assistance LIEAP benefits.

          (2) Except as provided elsewhere in this rule, households which consist solely of members who are eligible for and receiving supplemental nutritional assistance payments (SNAP), supplemental security income (SSI), TANF-funded cash assistance, or county or tribal general assistance are automatically financially eligible for low income energy assistance LIEAP benefits awards.

          (3) Households which consist of members receiving SNAP, SSI, TANF-funded cash assistance, or county or tribal general assistance, and other individuals whose income and resources were not considered in determining eligibility for SNAP, SSI, TANF-funded cash assistance, or general assistance are not automatically eligible for low income energy assistance LIEAP benefits but must meet the financial requirements set forth in this rule.

          (4) Individuals living in shelters, including but not limited to, recipients of SNAP, SSI, TANF-funded cash assistance, or county or tribal general assistance, are not eligible for low income energy assistance LIEAP benefits. Individuals living in licensed group-living situations as defined in ARM 37.70.401 may be eligible if they meet all other requirements for eligibility. Individuals living in licensed group-living situations which are not group-living situations as defined in ARM 37.70.401 are not eligible for low income energy assistance LIEAP benefits.

          (5) Households which contain a member who is enrolled at least half time in an institution of higher education and who was claimed for the previous tax year as a dependent for federal income tax purposes by a taxpayer who is not a member of a household which is eligible in the current heating season, or which would be eligible in the current heating season if the household applied, are ineligible for low income energy assistance LIEAP benefits.

          (6) Households that are eligible for or that have received LIEAP benefits through an Indian tribal program funded by the U.S. Department of Health and Human Services may not receive LIEAP benefits from the department for the same heating season, unless the household changes residence during the heating season and the household is no longer eligible for tribal LIEAP benefits; in that case, the household may apply for a prorated LIEAP benefit based on the household's new circumstances as provided in ARM 37.70.602. Additionally, any individual who was a member of a household that received LIEAP benefits through an Indian tribal program funded by the U.S. Department of Health and Human Services may not receive LIEAP benefits from the department for the same heating season unless the individual leaves the household that received tribal LIEAP benefits during the heating season and is no longer eligible for tribal LIEAP benefits; in that case the individual may apply for a prorated LIEAP benefit from the department for the same heating season based on the circumstances of the individual's new household as provided in ARM 37.70.602.

          (7) Residents of publicly subsidized housing whose energy costs are included as a fixed portion of their rent and whose rent is a fixed portion of their income may be eligible to receive a minimum benefit and weatherization assistance as provided for in ARM Title 37, chapter 71. Residents of publicly subsidized housing who receive a minimum benefit and subsequently move into nonsubsidized housing during the five-year eligibility period may apply for a prorated benefit for the current heating season as provided in ARM 37.70.602. Residents of publicly subsidized housing who receive a minimum benefit and subsequently move into another subsidized housing unit during the five-year eligibility period may reapply for a minimum benefit for another five-year period from the date of reapplication within the current heating season or who reside in publicly subsidized housing and have an obligation to pay a base-load electric bill are not eligible for a regular LIEAP benefit computed using the benefit matrices and multipliers in the LIEAP Benefit Award Matrix and Table of Multipliers for the 2015-2016 heating season. However, these households are eligible for weatherization assistance as provided for in ARM Title 37, chapter 71 and a modified LIEAP benefit.  The modified LIEAP benefit is equal to five percent of the amount of a regular LIEAP benefit, or a minimum payment of $25, whichever is greater, paid to the household annually. Households determined eligible for the modified LIEAP benefit whose economic and housing situation does not change are eligible for a period of five years.

          (8)  In households consisting of eligible and ineligible household members, the income of all will be counted for benefit calculation purposes.  Only the eligible household members will be counted toward the total "number in the household" when counting the number of household members for benefit calculation purposes.

          (8) (9)  Current and future benefits will be denied to any individuals persons and households who refuse to submit social security numbers or proof of U.S. citizenship or lawful entry into the United States with the intent of establishing permanent residence proof of status as a qualified alien as defined in 8 U.S.C. 1641(b), or whose social security numbers, proof of residency, or citizenship cannot be verified.

          (9) (10)  Current and future Benefits may be denied to any applicant or recipient person who, having been prioritized for weatherization services as a high excess energy user, according to the criteria set forth in ARM 37.71.401 and 37.71.601, refuses, for reasons within his or her control, energy conservation services for the weatherization assistance program (WAP). The applicant or recipient person may become eligible for benefits again by accepting the WAP energy conservation services.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.406 INCOME STANDARDS (1) Households with one through seven members with annual gross income at or below 60% percent of the estimated state median income for federal fiscal year (FFY) 2014 are eligible for low income energy assistance LIEAP benefits on the basis of income. Households with eight or more members are eligible for low income energy assistance LIEAP benefits on the basis of income only if the household's annual gross income is at or below 150% percent of the 2013 2015 U.S. Department of Health and Human Services poverty guidelines for a household of that size. Households with annual gross income above the applicable income standard are ineligible for low income energy assistance LIEAP benefits, unless the household is automatically financially eligible for LIEAP benefits as provided in ARM 37.70.402 because all members of the household are receiving SNAP, SSI, TANF-funded cash assistance, or county or tribal general assistance.

          (2) If a household that is otherwise eligible for low income energy assistance LIEAP benefits has annual gross income in excess of the applicable income standard, the department local contractor will determine the household's total gross monthly income for the three months immediately preceding the month in which the application for assistance was filed. If the product of four multiplied by the total gross monthly income for the three months immediately preceding the month of application is at or below the applicable income standard, the household is eligible for a three-month annualized income benefit as provided in ARM 37.70.601.

          (3) The table of income standards for households of various sizes for the 2014 heating season may be accessed at the department's web site at www.dphhs.mt.gov, or a copy may be obtained from the Department of Public Health and Human Services, Human and Community Services Division, Intergovernmental Human Services Bureau, P.O. Box 202956, Helena, MT 59620. The department adopts and incorporates by reference the department's Low Income Energy Assistance Program (LIEAP) Table of Income Standards, 2015-2016 heating season.  The LIEAP table of income standards, 2015-2016 heating season, is located at the department's web site at http://www.dphhs.mt.gov/hcsd/energyassistance.aspx or a copy may be obtained from the Department of Public Health and Human Services, Human and Community Services Division, Intergovernmental Human Services Bureau, P.O. Box 202956, Helena, MT 59620.

          (4) Households at or below 60% of the estimated state median income amount for FFY 2014 for the household's size are eligible for LIEAP are also eligible for LIEAP client education and outreach activities.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

37.70.407 EXCLUDED INCOME (1) through (1)(y) remain the same.

          (z) payments under Public Law 101-426, Radiation Exposure Compensation Act, are excluded as income and as a resource to the household.;

          (aa) amounts paid to satisfy an incurment for the medically needy programs.; and 

          (ab)  proof of out-of-pocket health insurance premiums paid by a member of the household for a household member or members will reduce the income when supplied at the time of application or prior to application eligibility determination.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.408 RESOURCES (1) The following nonbusiness resources are counted in determining a household's eligibility:

          (a) and (b) remain the same.

          (c) checking/ and savings accounts;

          (d) market value of stocks or bonds and/or other negotiable resources; and

          (e) remains the same.

          (2) The equity value of the household's business assets is counted in determining eligibility. The household may have business assets the equity value of which does not exceed $25,000.

          (3) The value of the family home a primary residence and the proceeds from the sale of the family home a primary residence are not included as a resource for 12 months from the date of sale of the family home.

          (4) In state fiscal year 2014, a household will be eligible if its total countable nonbusiness resources do not exceed $10,610 for a single person, $15,918 for two persons, and an amount equal to $15,918 plus $1,061 for each additional household member, up to a maximum of $21,223 per household. In addition, the household may have business assets whose equity value does not exceed $25,000.  The department adopts and incorporates by reference the department's LIEAP Table of Resource Standards, for the 2015-2016 heating season.  The LIEAP table of resource standards is located at the department's web site at http://www.dphhs.mt.gov/hcsd/energyassistance.aspx or a copy may be obtained from the Department of Public Health and Human Services, Human and Community Services Division, Intergovernmental Human Services Bureau, P.O. Box 202956, Helena, MT 59620.

          (5) The dollar limitations on nonbusiness resources listed elsewhere in this rule shall will be adjusted annually by the department on July 1 by increasing each limitation by an amount equal to the limitation amount for the previous year, multiplied by the lesser of:

          (a) the percentage increase in the consumer price index, (all items, United States city average), for the most recent calendar year completed before the beginning of the year for which the determination is being made; or

          (b) 3% percent.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.601 BENEFIT AWARD (1) Except as provided in (2), the benefit matrices in (1)(c) and (1)(d) are used to establish the benefit payable to an eligible household for a full heating season. The benefit varies by household income level, type of primary heating fuel, the type of dwelling (single family unit, multi-family unit, mobile home), the number of bedrooms in the dwelling, and the heating districts in which the household is located, to account for climatic differences across the state. 

The department adopts and incorporates by reference the department's LIEAP Benefit Award Matrix and Table of Multipliers, for the 2015-2016 heating season. The LIEAP Benefit Award Matrix is located at the department's web site at http://www.dphhs.mt.gov/hcsd/energyassistance.aspx or a copy may be obtained from the Department of Public Health and Human Services, Human and Community Services Division, Intergovernmental Human Services Bureau, P.O. Box 202956, Helena, MT 59620. These matrices are used to establish the benefit payable to an eligible household for a full heating season. The benefit varies by:

          (a) household income level;

          (b) type of primary heating fuel;

          (c) the type of dwelling: single family unit, multi-family unit, and mobile home;

          (d) the number of bedrooms in the dwelling;

          (e) the heating district in which the household is located, to account for climatic differences across the state;

          (f) verification of the identities and citizenship or qualified alien status of those residing in the household; and

          (g) the houshold's resources.

          (a) (2) The benefit payable to an eligible household will be computed by multiplying the applicable amount in the table of base benefit levels found in (1)(c) the LIEAP Benefit Award Matrix for the 2015-2016 heating season by the applicable matrix amount in the table of income/climatic adjustment multipliers found in (1)(d) the LIEAP Benefit Award Matrix for the 2015-2016 heating season.

          (b) (3) Applicants Households may claim no more bedrooms than household members except that single elderly and disabled individual households are entitled to claim two bedrooms if their dwelling unit contains more than one bedroom.

          (c) The following table of base benefit levels takes into account the number of bedrooms in a house, the type of dwelling structure, and the type of fuel used as a primary source of heating:

 

TABLE OF BENEFIT LEVELS

 

          (i) SINGLE FAMILY

 

# BEDROOMS	NATURAL GAS	ELECTRIC	PROPANE	FUEL OIL	WOOD	COAL
ONE	$ 482	$ 870	$ 1,030	$1,645	$ 707	$ 646
TWO	701	1,265	1,497	2,391	1,029	939
THREE	954	1,724	2,040	3,258	1,401	1,280
FOUR	1,313	2,371	2,806	4,482	1,928	1,761

 

          (ii) MULTI-FAMILY

# BEDROOMS	NATURAL GAS	ELECTRIC	PROPANE	FUEL OIL	WOOD	COAL
ONE	$ 407	$ 736	$ 871	$1,748	$ 597	$ 546
TWO	614	1,108	1,312	2,633	900	822
THREE	900	1,626	1,925	3,863	1,320	1,206
FOUR	1,052	1,900	2,249	4,513	1,543	1,409

 

          (iii) MOBILE HOME

 

# BEDROOMS	NATURAL GAS	ELECTRIC	PROPANE	FUEL OIL	WOOD	COAL
ONE	$   406	$   733	$ 868	$1,453	$ 596	$ 544
TWO	594	1,072	1,269	2,124	872	796
THREE	787	1,421	1,682	2,816	1,155	1,055
FOUR	878	1,586	1,877	3,143	1,289	1,178

 

          (d) The following table is based upon the household's income as a percentage of the federal poverty guideline and adjusted for climatic differences in the ten human resource development council service areas in the state of Montana:

 

TABLE OF INCOME/CLIMATIC ADJUSTMENT MULTIPLIERS
PERCENT OF POVERTY	AEM	IV	V	VI	VII	VIII	IX	X	XI	XII
0 - 11	1.00	1.08	0.98	0.99	0.93	1.02	1.08	0.90	0.92	1.09
> 11 - 23	0.95	1.02	0.94	0.94	0.89	0.97	1.03	0.86	0.87	1.04
> 23 - 35	0.90	0.97	0.89	0.89	0.84	0.92	0.98	0.81	0.82	0.98
> 35 - 47	0.85	0.92	0.84	0.84	0.79	0.87	0.92	0.77	0.78	0.93
> 47 - 59	0.80	0.86	0.79	0.79	0.75	0.82	0.87	0.72	0.73	0.87
> 59 - 71	0.75	0.81	0.74	0.74	0.70	0.77	0.81	0.68	0.69	0.82
> 71 - 83	0.70	0.75	0.69	0.69	0.65	0.71	0.76	0.63	0.64	0.76
> 83 - 95	0.65	0.70	0.64	0.64	0.61	0.66	0.70	0.59	0.60	0.71
> 95 - 107	0.60	0.65	0.59	0.59	0.56	0.61	0.65	0.54	0.55	0.65
>107 - 119	0.55	0.59	0.54	0.54	0.51	0.56	0.60	0.50	0.50	0.60
>119 - 131	0.50	0.54	0.49	0.49	0.47	0.51	0.54	0.45	0.46	0.55
>131 - 143	0.45	0.48	0.44	0.44	0.42	0.46	0.49	0.41	0.41	0.49
>143 - 150*	0.40	0.43	0.39	0.39	0.37	0.41	0.43	0.36	0.37	0.44
* This category also applies to those whose income exceeds 150% of the poverty guideline and meets the criteria of ARM 37.70.406(1)

 

(2) (4)  Eligible households who are residents of publicly subsidized housing whose energy costs are included as a portion of their rent and whose rent is a fixed portion of their income will receive one payment of $50 for the entire five-year period from the date of application and are not eligible for low income energy assistance benefits provided for in (1). Publicly subsidized households whose energy costs are included as a fixed portion of their rent or who reside in publicly subsidized housing and have an out-of-pocket obligation to pay a base-load electric bill are not eligible for a regular LIEAP benefit computed using the benefit matrices and multipliers in the LIEAP Benefit Award Matrix and Table of Multipliers for the 2015-2016 heating season. However, these households may be eligible for a modified LIEAP benefit. The modified LIEAP benefit is equal to five percent of the amount of a regular LIEAP benefit computed using the benefit matrices and multipliers in the LIEAP Benefit Award Matrix and Table of Multipliers for the 2015-2016 heating season or a minimum payment of $25, whichever is greater, would be paid to the household annually. Households determined eligible for the modified LIEAP benefit whose economic and housing situation does not change would be determined eligible for a period of five years.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.602 BENEFIT AWARDS: MISCELLANEOUS (1) and (2) remain the same.

          (3) Except as provided in (5), wWhen an eligible household changes residence during the heating season, the household must file a new application. The household's benefit award will then be recomputed based on its new circumstances residence, and the new benefit will be equal to the benefit award the household would have received had its original application been for the new circumstances prorated from the date of the change of residence. Any unused portion of the original benefit award reverts to the department. When an eligible household changes its type of primary heating fuel during the heating season, the household is not required to file a new application but must have its benefit award recomputed based on the new type of fuel. The new benefit will be prorated from the date of the change of type of fuel. Any unused portion of the original benefit reverts to the department.

     (4) Benefit awards will be prorated for applicants households new to the state or not previously responsible for heating costs from the date of residency or responsibility for the remainder of the heating season. Benefits will also be prorated for households or individuals who live in an area served by an Indian tribal LIEAP if the household or individual moves from the service area during the heating season and applies for benefits through the state of Montana's LIEAP. Such households or individuals are eligible for a prorated benefit for the remainder of the heating season from the date the household or individual moved from the service area served by the tribal LIEAP.

          (5) If a resident of publicly subsidized housing who has received a minimum benefit as provided in ARM 37.70.601 changes residence during the five-year eligibility period, the following rules apply:

          (a) If the resident moves into nonsubsidized housing, the resident may reapply for a prorated benefit for the current heating season based on the resident's new circumstances.  The benefit will be computed by multiplying the applicable amount in the table of base benefit levels found in ARM 37.70.601 times the applicable matrix amount in the table of income/climatic adjustment multipliers in ARM 37.70.601 and then taking a pro rata portion of that result determined by dividing the number of days from the date of reapplication through the last day of the heating season by the total number of days in the heating season. The resident will then be required to file a new application for each subsequent heating season as long as the resident lives in nonsubsidized housing.

          (b) If the resident moves to another publicly subsidized housing unit during the five-year eligibility period, the resident may file a new application for a minimum benefit for another five-year period which will run from the date of the new application.

          (6) (5)  When a household changes primary fuel vendors any remaining LIEAP attributable credit balance will be returned to the department by the original fuel vendor. The department may reissue the unused portion of the benefit award may be forwarded to the new fuel vendor or reimbursed reimburse to the household as outlined provided in ARM 37.70.607.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.607 AMOUNT AND METHOD OF PAYMENT (1) Eligible households that are billed for energy costs directly by the fuel vendor shall will be paid a benefit in the amount provided by ARM 37.70.601  computed using the benefit matrices and multipliers in the LIEAP Benefit Award Matrix and Table of Multipliers for the 2015-2016 heating season and shall will be paid as follows:

          (a) and (b) remain the same.

          (c) Application for benefits for the current heating season will not be processed until the credit balances for each of the household's fuel vendors attributable to previous years' program awards total less than $50 or less.

          (d) All credit balances are presumed to be from previous program awards unless the applicant household provides proof to the contrary.

          (2) Eligible households that pay energy costs for heating their homes that are not billed directly by the fuel vendor because the fuel account is not in the name of a member of the household shall will be reimbursed for eligible energy costs paid by the household, provided that the amount paid to the household for the heating season shall does not exceed the benefit amount provided by ARM 37.70.601 computed using the benefit matrices and multipliers in the LIEAP Benefit Award Matrix and Table of Multipliers for the 2015-2016 heating season. Reimbursement shall will be made by check payable to the household. The household must provide receipts to document paid eligible energy costs claimed. The household must provide receipts to support the paid eligible energy costs to the local contractor within 45 days of the end of the heating season or by June 25 20 if the department has extended the heating season beyond April 30 for which benefits are sought.

          (3) For eligible households that have their energy costs included in their rental payments:

          (a) The household shall will be paid a benefit computed on a monthly basis. For each month of the current heating season for which the household provides a paid rent receipt, the household shall will be reimbursed a pro rata portion, (determined by dividing one by the number of months in the heating season), of the benefit amount provided in ARM 37.70.601; provided, however, that the benefit paid to the household for any month shall must not exceed 50% percent of the rent paid for that month as evidenced by the rent receipt. Failure to provide rent receipts to the local contractor within 45 days of the end of the heating season or by June 25 20 if the department has extended the heating season beyond April 30 shall will result in the forfeiture of any benefits to which the household would otherwise be entitled.

          (b) The benefit shall will be paid by check payable to the household.

          (4) Benefits for eligible households using wood to heat their dwelling shall will be paid as follows:

          (a) remains the same.

          (b) at the option of the local contractor, by payment directly to the household for future purchases of wood,; provided, however, that households which receive a direct payment shall will not be entitled to any additional benefits for the current heating season which the household might otherwise be entitled to receive due to a move to a different dwelling or other change in circumstances, except an emergency as defined in ARM 37.70.901; or

          (c) when the household provides receipts to verify that the household has purchased wood between July 1 and the end of the heating season of the current state fiscal year, by a payment directly to the household reimbursing the household for wood already purchased.  Households which are reimbursed by a direct payment do not lose their right to additional benefits for the current heating season as provided in (4)(b). Failure to provide receipts verifying wood purchases to the local contractor within 45 days of the end of the heating season or by June 25 20 if the department has extended the heating season beyond April 30 shall will result in the forfeiture of any benefits to which the household would otherwise be entitled.

          (5) Reimbursement may, at the discretion of the department only, be made to or on behalf of residents of publicly subsidized housing whose energy costs are included as a portion of their rent and whose rent is a fixed portion of their income. 

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          37.70.901 EMERGENCY ASSISTANCE (1) Emergency assistance under the Low Income Energy Assistance Program LIEAP may be provided to an eligible household in the following circumstances only when such circumstances present a serious, immediate an imminent threat to the health and safety of the household:

          (a) and (b) remain the same.

          (c) hazardous or potentially hazardous conditions exist in the household's primary home water heating system, and/or space heating systems, and or safety modifications to the system are required; or

          (d) any other home energy-related conditions caused by severe weather conditions, fuel shortages, and/or acts of God.; or

          (e)  the household has a documented medical need for home energy related safety modifications.

          (2) Eligibility requirements:

          (a) A household eligible for the low income energy assistance program LIEAP which that has an emergency as defined above is eligible for emergency assistance.

          (b) A household which that would be eligible for the low income energy assistance program LIEAP had the household applied and which has an emergency as defined above is also eligible for emergency assistance.

          (3) The household is responsible, at its own expense, for documenting that circumstances exist which present a serious, immediate an imminent threat to the household as defined in (1)(a) through (d) (e). The local contractor may, however, in its discretion and subject to the priorities and restrictions specified in its contract with the department, assist the household in identifying and documenting such circumstances, if the local contractor has the expertise and resources to do so.

          (4) remains the same.

          (5) Subject to the provisions of (6), after a household has requested emergency assistance and provided proof that it is financially and otherwise eligible for such assistance, the local contractor shall must provide some form of assistance to resolve the emergency:

          (a) through (6)(b) remain the same.

          (7) The identification, removal, and/or abatement of asbestos is not an allowable use of emergency assistance funds.

          (8) remains the same.

 

AUTH: 53-2-201, MCA

IMP: 53-2-201, MCA

 

          4. STATEMENT OF REASONABLE NECESSITY

 

The Department of Public Health and Human Services (the department) is proposing the amendment of 37.70.107; 37.70.110; 37.70.115; 37.70.305; 37.70.311; 37.70.401; 37.70.402; 37.70.406; 37.70.407; 37.70.408; 37.70.601; 37.70.602; 37.70.607; and 37.70.901 pertaining to Low Income Energy Assistance Program (LIEAP). LIEAP is a federally funded program to help low-income households pay their home heating costs. The department proposes to make the following changes to its administrative rules governing LIEAP:

 

All Above-Described Rules Generally

 

As a matter of general housekeeping, the department proposes to replace multiple outdated, inconsistent, or verbose terms with fewer ones, which is consistent with current department efforts to achieve clear and efficient rulemaking. For example, terms such as applicant, recipient, beneficiary, party, individual, person, household, and household member have been inconsistently applied to refer to people who participate in LIEAP. The department believes it is necessary for clarity and consistency to limit references, when possible, to "person," "individual," or "household member," or their plural variations, and to refer to "households" more often when describing overall living arrangements within a residence.  The term "low income energy assistance" is also proposed to be replaced with "LIEAP benefits" when referring to the benefits a person or household receives, and with "LIEAP" when program-specific references are made. Other minor word choice amendments are proposed to achieve gender neutrality, to reflect the current style of administrative rules writing, or to fix previous language errors. "Must" is a proposed substitution of "shall," which is an increasingly problematic modifying word when describing duties or requirements imposed on people and objects.

 

The department does not believe these word choice substitutions affect the meaning of the rules and they are consistent with changes made to several other departmental program administrative rules.

 

ARM 37.70.107 and 37.70.401

 

The terms "agency," "contractors," and "local contractors" are used interchangeably in these rules to mean a community-based organization with which the department has contracted to provide outreach and process applications for LIEAP and the Weatherization Program. For uniformity and clarity when referring to these organizations with which the department contracts, the department determines it necessary to substitute references to "agency" and "contractors" with "local contractors." This will not change any definitions or the duties of the local contractor.

 

ARM 37.70.107, 37.70.110, and 37.70.115

 

ARM 37.70.107(2) currently provides that the department's Intergovernmental Human Services Bureau (IHSB) will review cases in which fraud is suspected before making referrals to DPHHS' Audit and Compliance Bureau. The name of the Audit and Compliance Bureau was changed some time ago to the Program Compliance Bureau (PCB) although the name was not changed in rule due to oversight. The department proposes to update the name of the bureau and also insert in ARM 37.70.107(1) and (2) and 37.70.110(2) the name of the division of which the PCB is a part, the Quality Assurance Division. These changes are necessary to designate clearly and accurately the entity to which fraud referrals are made. Additionally, ARM 37.70.115(2)(a) currently provides that fraud matters are referred to the Audit and Compliance Bureau. In practice, local contractors contact IHSB, not the PCB, when they suspect fraud has occurred. The department proposes to amend ARM 37.70.115(2)(a) to specify that cases of suspected fraud must be forwarded to the IHSB, which will determine whether to make a referral to the PCB. This change is necessary to describe accurately the department's fraud referral procedure.

 

ARM 37.70.305

 

In (1), the words "moves to a different" is being substituted for "changes" in the phrase "changes residence." This is a revision in terminology to avoid ambiguity pertaining to what constitutes "change" and does not affect existing department policy. In (1) and (2) "contractor" is being changed to "local contractor" for the reasons discussed above in connection with the amendment of ARM 37.70.107. In (3) the term "local contractor" is being changed to "department" because the decision to accept applications prior to October 1 must be made by the department, as local contractors are not authorized to make those decisions.

 

In (1) and (2) "contractor" is being changed to "local contractor" for the reason discussed above in connection with the amendment of ARM 37.70.107, 37.70.401, and 37.70.901.  Section (3) currently provides that, subject to one exception, a LIEAP application must be filed between October 1 and April 30, unless April 30 falls on a weekend or legal holiday. The department proposes to substitute "holiday" observed by Montana state government as set forth in 1-1-216, MCA, for the term "legal holiday." This is necessary because "legal holiday" has no clear cut meaning that would be understood by everyone reading the rule.  The holidays observed by Montana state government are specified in 1-1-216, MCA, and thus can be readily ascertained by referring to that statute.

 

Section (3) states that, at the discretion of the local contractor, households that use heating fuel sold at lower prices in the summer may file their applications prior to October. The term "local contractor" is being changed to "department" because the decision to accept applications prior to October 1 must be made by the department so that there will be consistency throughout the state regarding when applications can be filed. This is not a change in policy.  In recent years the department, not the local contractors, has made the decision to accept such applications from July 1 through September 30, but the rule was never changed to bring it in line with the current practice. The word "deliverable" is being inserted before "heating fuel" to clarify that fuels sold at a lower price in the summer are fuels like propane and heating oil that can be delivered to the customer and stored for later use.

 

Finally, (3) currently states that when applications are accepted prior to October 1 the date of the application is deemed to be October 1. This provision is being deleted because the LIEAP rules provide that a household's eligibility and benefit amount are based on its income in the month of application, which for these households would be July, August, or September. If the date of these applications is deemed to be October 1, the household's income during the month of October would have to be used rather than its income in the month when the application was actually filed. This would result in inconsistency between these households and households that must apply between October 1 and April 30 in the way their income is calculated. This change is being made so that the income of all households will be calculated as of the month in which the application was actually filed, which is fairer.

 

Section (4) currently provides that residents of publicly subsidized housing whose energy costs are included as a portion of their rent are eligible for a single payment of $50 for a period of five years, called a minimum benefit. The department proposes to change the benefit paid to eligible residents of publicly subsidized housing. Instead of receiving a minimum benefit, they will receive a benefit equal to five percent of the amount of a regular LIEAP benefit or a payment of $25, whichever is greater. This benefit, called a "modified benefit," will be paid to the household each year for a five-year period. The department also proposes authorizing payment of a modified benefit to households that are obligated to pay a base-load electric bill.

 

The change to the modified benefit is necessary because the department recognizes that publicly subsidized housing households whose energy costs are included as a fixed portion of their rent or who have an obligation to pay a base-load electric bill need assistance even though they are not directly paying a vendor for heating and cooling costs.  They are being paid only 5% of the regular LIEAP benefit or $25, whichever is more, because they generally do not pay as much as households who directly pay for heating and cooling. Paying these households a modified benefit of at least $25 per year will also allow residents of publicly subsidized housing who do not have to pay the costs of heating or cooling their homes to qualify for a higher Supplemental Nutrition Assistance Program (SNAP) benefit in accordance with Section 4006 of Title IV of the Agriculture Act of 2014, commonly known as the Farm Bill of 2014.

 

ARM 37.70.311

 

This rule sets out the procedures for processing LIEAP applications. The department has determined through its current business practices that a LIEAP applicant's verified social security number (SSN) is sufficient to prove identity without photo identification and, alternatively, that an applicant's birth certificate is sufficient to prove identity without a verified SSN. The department proposes an amendment to specify that photo identification is not required if the SSN is verified and provide that a birth certificate will be accepted as proof of identity if the SSN cannot be verified for persons under 18 years of age. The department deems the proposed changes necessary as an accommodation for persons who may not otherwise have alternate forms of identification when applying for LIEAP benefits.

 

Subsection (2)(b) and (6) are being amended to include the requirement to obtain proof of lawful entry into the United States as a "qualified alien."  The U.S. Department of Health and Human Services, Administration for Families and Children, Office of Community Services, the federal agency that administers LIEAP, has issued new guidance to encourage states to develop LIEAP policies and procedures that do not "discourage, delay or deny" LIEAP benefits to eligible persons, including eligible children residing with ineligible non-citizens.

 

Subsection (2)(e) currently provides that receipt of Supplemental Security Income (SSI) or Temporary Assistance for Needy Families (TANF) benefits must be verified. A household that consists solely of members who receive SSI or TANF is automatically financially eligible for LIEAP because they are needs-based programs and thus there is no need to investigate the household's finances to determine LIEAP eligibility. The addition of SNAP to the list of assistance programs the receipt of which must be verified is proposed because SNAP is also a needs-based program, the receipt of which makes the household automatically financially eligible for LIEAP.

 

Subsection (2)(i) currently states that households need to submit paid energy receipts to the local contractor within 45 days of the end of the heating season or by June 25 if the department has extended the heating season beyond April 30 for which benefits are sought. This section is being amended to simplify the last day of the heating season.  The last day to submit receipts for a LIEAP benefit will be June 20.  

 

ARM 37.70.401

 

The department proposes to add or clarify terms used in the rule. This is necessary to ensure defined terms used in the rule are interpreted as the department intends.

 

Several changes are necessary due to guidance recently issued by the agency that administers LIEAP, namely the Division of Energy Assistance, which is part of the U.S. Department of Health and Human Services, Administration for Families and Children, Office of Community Services. Transmittal No. LIHEAP-IM-2014-07 issued in December 2014 encourages states to develop LIEAP policies and procedures that do not "discourage, delay or deny" LIEAP benefits to eligible persons, including eligible children residing with ineligible non-citizens. The transmittal does not specify who qualifies as an eligible child, but the department has determined that a child who is a emancipated minor as defined by Montana law should be eligible to file a LIEAP application.  It is therefore necessary to include a definition of the term "emancipated minor" in ARM 37.82.401.

 

Additionally, the department also is taking this opportunity to state in rule that with the exception of emancipated minors a person must be 18 years of age to file a LIEAP application.  The rules currently do not contain any age requirement for filing a LIEAP application.  The department believes that emancipated minors and persons who have attained the age of 18, which is the age of majority in Montana, are generally mature enough to understand the importance of providing accurate information about the household so that eligibility and benefit amount can be correctly determined, while younger persons may not be. A definition of "applicant' is therefore being added to specify that a person must be 18 or an emancipated minor to apply for LIEAP.

 

The definition of "applicant" also provides that a person does not have to be an eligible household member in order to apply on behalf of eligible members. This provision is being included because Transmittal No. LIHEAP-IM-2014-07 clarifies that an ineligible household member may apply for an eligible member or members. This will allow an eligible member who might find it hard to file an application for a reason such as poor health, disability, or limited ability to read or write to receive benefits by having an ineligible member file the application on behalf of the eligible member. ARM 37.70.401 currently does not define "eligible household member" or "ineligible household member" because these terms are not used in the LIEAP rules.  It is necessary to define these terms now because they are used in the definition of "applicant" that is being added. 

 

A definition for the term "applicant" is a proposed amendment to the rule because the federal agency that administers LIEAP, the U.S. Department of Health and Human Services, Administration for Families and Children, Office of Community Services, has issued new guidance to encourage states to develop LIEAP policies and procedures that do not "discourage, delay or deny" LIEAP benefits to eligible persons, including eligible children residing with ineligible non-citizens.  A LIEAP applicant doesn't need to be an eligible household member. This change to the rule makes it clear that an ineligible household member can submit a LIEAP application for the household.

 

It is necessary to add a definition of "base-load electric" bill to correspond with the proposed amendment of ARM 37.70.305, providing that residents of publicly subsidized housing who are obligated to pay a base-load electric bill are entitled to receive a modified LIEAP benefit.

 

A definition for the terms "eligible household member" and "ineligible household member" are proposed because the federal agency that administers LIEAP, the U.S. Department of Health and Human Services, Administration for Families and Children, Office of Community Services, has issued new guidance to encourage states to develop LIEAP policies and procedures that do not "discourage, delay or deny" LIEAP benefits to eligible persons, including eligible children residing with ineligible non-citizens.  These definitions clarify that the person needs to be a U.S. citizen or qualified alien to be an eligible household member.

 

A definition for the term "deliverable heating fuel" must be added because the word "deliverable" is being added to the words" heating fuel" in ARM 37.70.305 for the reason explained above.

 

The amendment to the term "federal fiscal year" is necessary to update the dates displayed in the example provided. The federal fiscal year "2011" will be changed to "2016". The federal fiscal year period will be updated from "October 1, 2010 through September 30, 2011" to October 1, 2015 through September 30, 2016.  This amendment does not change the meaning of the term "federal fiscal year."

 

The amendment to the term "heating season" is necessary to update the dates displayed in the example provided.  The example "2009 through 2010" will be updated to "2015 through 2016."  The heating season period from "October 1, 2009 through September 30, 2010" will be updated to "October 1, 2015 through April 30, 2016." In addition, the definition for the term "heating season" currently states requests for reimbursement must be received by the local contractor no later than June 25.  This definition is being amended to simplify the last day of the heating season.  The last day to submit receipts for a LIEAP benefit is June 20.

 

A definition for the term "life-threatening" is proposed because the federal agency that administers LIEAP, the U.S. Department of Health and Human Services, Administration for Families and Children, Office of Community Services, noted in a compliance review that the department uses the term "life-threatening" in ARM 37.70.901 concerning emergency assistance without providing a definition.

 

Amendments for the definitions of "incurment" and "medically needy" are necessary for clarification. The term "minimum benefit" is proposed for amendment to "modified benefit" to correspond to changes in the subsidized rent households LIEAP benefit. The proposed changes do not change the definitions of the above-described terms. A new definition for "publicly subsidized housing" is proposed as it is needed for use with modified LIEAP benefits and subsidized rent households. The Table of Benefit Levels referenced in ARM 37.70.601 as the "Table," is used to calculate a household's benefit amount and classifies homes as single family homes, multi-family homes, and mobile homes.  The definition of "single family unit" as it applies to the table provides that a doublewide trailer or mobile home is considered a single family unit. This statement is proposed for deletion and is necessary because it is incorrect and conflicts with the definition of "mobile home" currently in (17), which specifies that singlewide or doublewide trailers and mobile homes are all considered mobile homes.

 

A definition for the term "qualified alien" is proposed because the federal agency that administers LIEAP, the U.S. Department of Health and Human Services, Administration for Families and Children, Office of Community Services, has issued new guidance to encourage states to develop LIEAP policies and procedures that do not "discourage, delay or deny" LIEAP benefits to eligible persons, including eligible children residing with ineligible non-citizens.  This definition identifies the documentation required to verify a person is a qualified alien.

 

The amendment for the term "self-employment deductions" is necessary to allow the local contractors the option to deduct 40 percent from the annual gross receipts for self-employment. The self-employment policy changed to allow the local contractors to count 60 percent of the gross self-employment income.  Annual gross income will be calculated by taking annual gross receipts times 60 percent.  For households with self-employment income, annual gross income means annual gross receipts (all self-employment income before deductions) minus self-employment deductions.  The self-employment deduction would be 40 percent of the total gross self-employment income.  The local contractor still has the option to calculate self-employment income using actual deductions if this calculation method benefits the client.

 

The amendment to the term "state fiscal year" is necessary to update the dates displayed in the example provided. The state fiscal year "2011" will be changed to "2016". The state fiscal year period will be updated from "July 1, 2010 through June 30, 2011" to July 1, 2015 through June 30, 2016.  This amendment does not change the meaning of the term "state fiscal year."

 

ARM 37.70.402

 

This rule currently provides that certain residents of publicly subsidized housing may receive a minimum benefit. For the reasons discussed in connection with the amendment of ARM 37.70.305, above, these households will now be eligible for a modified LIEAP benefit instead of the minimum benefit and this rule also requires amendment to reflect this change.

 

Section (8) needs to be amended to explain how LIEAP benefits will be calculated when eligible and ineligible household members reside together. The U.S. Department of Health and Human Services, Administration for Families and Children, Office of Community Services, the federal agency that administers LIEAP, has issued new guidance to encourage states to develop LIEAP policies and procedures that do not "discourage, delay or deny" LIEAP benefits to eligible persons, including eligible children residing with ineligible non-citizens.  The gross income will be counted for all household members (eligible and ineligible).  Only the eligible household members will be counted for purposes of calculating the LIEAP benefit.

 

ARM 37.70.406

 

The department proposes to incorporate by reference the table of income standards used to determine eligibility for LIEAP. This amendment is necessary so the income standards will have the force of law.

 

ARM 37.70.407

 

The department is proposing to amend this rule by excluding out-of-pocket health insurance premiums as income when calculating income to determine a LIEAP household's poverty level. The amendment was initiated due to the Health and Economic Livelihood Partnership (HELP) Act.  The HELP Act extends health care coverage to people between the ages of 19-64 earning less than 138 percent of the federal poverty level.  The HELP Act will provide low-cost health insurance to Montanans that make too much money for traditional Medicaid, but too little to receive subsidies on the health insurance exchange.  The department doesn't want to penalize a person paying for health insurance coverage. Therefore, all out-of-pocket health insurance premiums will not be considered countable income under LIEAP.

 

ARM 37.70.408

 

The department is proposing to amend this rule by removing the dollar amounts of the nonbusiness resource limits and adopting and incorporating by reference the department's 2015 LIEAP table of nonbusiness resource standards located on the department's web site. The rule also adds information on how to obtain a copy of the LIEAP table of nonbusiness resource standards.

 

This proposed rule change is necessary for increased efficiency in departmental rulemaking and is consistent with current department efforts to adopt by reference, where possible, regularly changing data that is currently in rule with internet or policy manual references that do not require formal rulemaking when updated.

 

ARM 37.70.601

 

The dollar amounts listed in the Table of Benefit Levels, more commonly known as the benefit award matrix, are used to calculate a household's benefit amount. The figures in the matrix are updated each year to take into consideration new information regarding the amount of funds available to pay LIEAP benefits for the current heating season, projected changes in fuel costs, and estimates of the number of households that will apply and be found eligible for the heating season.

 

The department is proposing to amend this rule by removing the matrix and incorporating by reference matrix data as it is periodically revised by the department and located on the department's web site. The amendment also instructs interested persons as to how to obtain a copy of the matrix.

 

ARM 37.70.607

 

Subsection (1)(c) currently provides that LIEAP benefits for the current heating season will not be issued until a household's total credit balance with all of its fuel vendors from LIEAP benefits paid from previous heating seasons, is less than $50. The proposed amendments providing that a credit balance may be $50, but not more than $50, are necessary to be consistent with ARM 37.70.607(1)(b) which provides that fuel vendors must return any credit balance in excess of $50 to the department at the end of the heating season.

 

Sections (2), (3)(a), and (4)(c) currently state that households need to submit paid energy receipts to the local contractor within 45 days of the end of the heating season or by June 25 if the department has extended the heating season beyond April 30 for which benefits are sought. This section is being amended to simplify the last day of the heating season. The last day to submit receipts for a LIEAP benefit will be June 20.  

 

Additionally, the department proposes to remove (5). Section (5) currently provides that the department has discretion to reimburse residents of publicly subsidized housing whose energy costs are included as a portion of their rent and whose rent is a fixed portion of their income. Removal of this provision is necessary because it is no longer accurate. Residents of publicly subsidized housing who meet those requirements are now eligible for a modified LIEAP benefit, described in ARM 37.70.305.

 

ARM 37.70.901

 

The language in (1) and (3) pertaining to "serious, immediate" is proposed for change to "imminent" to align with the terminology used by the U.S. Department of Health and Human Services, Administration for Families and Children, Office of Community Services, the federal agency that administers LIEAP. "Documented medical need" is also proposed for addition as (1)(e) as a circumstance under which emergency assistance may be provided. This addition is reasonably necessary, as an audit issue arose from the Office of Community Services, which indicates the department should allow documented medical need as a circumstance under which emergency assistance may be provided.

 

The department proposes to amend and clarify (5) by substituting the word "shall" with "must" as it pertains to a LIEAP contractor's duty to provide emergency assistance within 48 hours after the request is made in all cases and within 18 hours after a request is made if the emergency is life-threatening. The proposed amendment is necessary as the department moves towards removal of the word "shall" for the preferred plain English alternate of "must," as several court jurisdictions that have determined "shall" to imply additional meanings that legal document drafters did not intend. Further clarification of rule language aids the department's contention that the intent of 42 U.S.C. 8623(c) imposing these time limits is for the household to receive emergency assistance within 48 or 18 hours of the time the household requests assistance even if it makes the request outside of normal business hours. Therefore, local contractors providing LIEAP services must have systems in place to ensure emergencies are addressed within the 18/48 hour rules even when the request is received within normal business hours.

 

Fiscal Impact

 

LIEAP is 100% federally funded. Congress has not yet appropriated funds for LIEAP for the 2015-2016 heating season, but based on current available information the department estimates that Montana will receive LIEAP funds of approximately $17 million to $18 million for the current heating season. This compares to LIEAP funding of $18 million for the 2014-2015 heating season. It is estimated that 20,000 households will qualify for LIEAP benefits this year, which is comparable to last year.

 

          5. The department intends to apply these rule amendments retroactively to October 1, 2015. A retroactive application of the proposed rule amendments does not result in a negative impact to any affected party.

 

          6. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Kenneth Mordan, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; fax (406) 444-9744; or e-mail [email protected], and must be received no later than 5:00 p.m., November 12, 2015.

 

7. The Office of Legal Affairs, Department of Public Health and Human Services, has been designated to preside over and conduct this hearing.

 

8. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 6 above or may be made by completing a request form at any rules hearing held by the department.

 

9. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register.  The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered.  In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

 

10. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

11. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rules will not significantly and directly impact small businesses.

 

12. Section 53-6-196, MCA, requires that the department, when adopting by rule proposed changes in the delivery of services funded with Medicaid monies, make a determination of whether the principal reasons and rationale for the rule can be assessed by performance-based measures and, if the requirement is applicable, the method of such measurement.  The statute provides that the requirement is not applicable if the rule is for the implementation of rate increases or of federal law.

 

The department has determined that the proposed program changes presented in this notice are not appropriate for performance-based measurement and therefore are not subject to the performance-based measures requirement of 53-6-196, MCA.

 

/s/ Barbara Banchero                            /s/ Robert Runkel for Richard H. Opper 

Barbara Banchero, Attorney                  Richard H. Opper, Director

Rule Reviewer                                       Public Health and Human Services

 

Certified to the Secretary of State October 5, 2015.