BEFORE THE DEPARTMENT OF PUBLIC
HEALTH AND HUMAN SERVICES OF THE
STATE OF MONTANA
TO: All Concerned Persons
1. On December 3, 2019, at 9:00 a.m., the Department of Public Health and Human Services will hold a public hearing in the auditorium of the Department of Public Health and Human Services Building, 111 North Sanders, 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 November 26, 2019, to advise us of the nature of the accommodation that you need. Please contact Gwen Knight, 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) remains the same.
(2) Local contractors must make reports of possible overpayments or fraud to the department's Intergovernmental Human Services Bureau (IHSB) Human and Community Services Division (HCSD), P.O. Box 202956, Helena, MT 59620-2956. IHSB HCSD will review cases prior to referral to the PCB.
AUTH: 53-2-201, MCA
IMP: 53-2-201, MCA
37.70.110 FRAUD/TRANSFER OF RESOURCES (1) remains the same.
(2) If a person appears to have received assistance fraudulently, the local contractor must report all facts of the matter to the Intergovernmental Human Services Bureau (IHSB) department's Human and Community Services Division (HCSD) to determine if the case should be referred to the department's Quality Assurance Division, Program Compliance Bureau (PCB). The PCB may refer the matter to the Department of Justice or the county attorney of the county in which the person resides for further action.
(3) through (5) remain the same.
AUTH: 53-2-201, MCA
IMP: 53-2-201, MCA
37.70.115 OVERPAYMENTS AND UNDERPAYMENTS (1) remains the same.
(2) Except as provided in (3), current and future program year payments of 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 a person willfully made false statements or withheld information causing overpayment must be referred to the Intergovernmental Human Services Bureau (IHSB) department's Human and Community Services Division (HCSD) 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) remains the same.
AUTH: 53-2-201, MCA
IMP: 53-2-201, MCA
37.70.305 APPLICATION (1) through (3) remain the same.
(4) 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 2018-2019 2019-2020 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.
(5) through (7) remain the same.
AUTH: 53-2-201, MCA
IMP: 53-2-201, MCA
37.70.401 DEFINITIONS (1) remains the same.
(2) "Annual gross receipts" applies to households with income from self-employment and means all income before any deductions, including any nonexcluded income not from self-employment, which was received by members of the household in the 12 months immediately preceding the month of application or the three months annualized, based on whichever method was used in determining eligibility.
(3) remains the same but is renumbered (2).
(4) (3) "Base-load electric" costs are the costs represented in a utility company's bill for electricity that powers lights, and plug-in appliances, other than for heating or cooling, and electric and domestic water heaters heating.
(5) remains the same but is renumbered (4).
(6) (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, wood, or coal.
(7) through (12) remain the same but are renumbered (6) through (11)
(12) "Gross receipts" applies to households with income from self-employment and means all income before any deductions, including any nonexcluded income not from self-employment, which was received by members of the household in the six months immediately preceding the month of application.
(13) through (23) remain the same.
(24) "Mobile home" means a singlewide or doublewide trailer or, mobile home, manufactured home, camper, or recreational vehicle only.
(25) "Modified LIEAP benefit" means the amount paid to eligible households who reside in publicly subsidized housing 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 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 2018-2019 2019-2020 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.
(26) through (29) remain the same.
(30) "Nontraditional dwelling unit" means dwelling units that include mobile shelters and other structures not designed for year-round human habitation. Mobile shelters include, but are not limited to, RV's and campers.
(30) through (37) remain the same but are renumbered (31) through (38).
(39) "Traditional dwelling unit" means a residential housing structure, including, without limitation, a mobile home and a modular home when permanently connected to the required utilities (including plumbing, heating, and electrical systems contained therein) and designed to be used as a permanent residence.
(38) through (40) remain the same but are renumbered (40) through (42).
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) through (6) remain the same.
(7) Residents of publicly subsidized housing whose energy costs are included as a fixed portion of their rent 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 2018-2019 2019-2020 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) and (9) remain the same.
AUTH: 53-2-201, MCA
IMP: 53-2-201, MCA
37.70.406 INCOME STANDARDS (1) Households with one through seven eight members with annual gross income at or below 60 percent of the estimated state median are eligible for LIEAP benefits on the basis of income. Households with eight nine or more members are eligible for LIEAP benefits on the basis of income only if the household's annual gross income is at or below 150 percent of the 2018 2019 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 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, or TANF-funded cash assistance.
(2) The department adopts and incorporates by reference the department's Low Income Energy Assistance Program (LIEAP) Table of Income Standards, 2018-2019 2019-2020 heating season. The LIEAP table of income standards, 2018-2019 2019-2020 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.
(3) remains the same.
AUTH: 53-2-201, MCA
IMP: 53-2-201, MCA
37.70.408 RESOURCES (1) through (3) remain the same.
(4) The department adopts and incorporates by reference the department's LIEAP Table of Resource Standards, for the 2018-2019 2019-2020 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) remains the same.
AUTH: 53-2-201, MCA
IMP: 53-2-201, MCA
37.70.601 BENEFIT AWARD (1) The department adopts and incorporates by reference the department's LIEAP Benefit Award Matrix and Table of Multipliers, for the 2018-2019 2019-2020 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) through (g) remain the same.
(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 the LIEAP Benefit Award Matrix for the 2018-2019 2019-2020 heating season by the applicable matrix amount in the table of income/climatic adjustment multipliers found in the LIEAP Benefit Award Matrix for the 2018-2019 2019-2020 heating season.
(3) remains the same.
(4) 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 2018-2019 2019-2020 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 2018-2019 2019-2020 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
37.70.607 AMOUNT AND METHOD OF PAYMENT (1) Eligible households that are billed for energy costs directly by the fuel vendor will be paid a benefit in the amount computed using the benefit matrices and multipliers in the LIEAP Benefit Award Matrix and Table of Multipliers for the 2018-2019 2019-2020 heating season and will be paid as follows:
(a) through (d) remain the same.
(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 will be reimbursed for eligible energy costs paid by the household, provided that the amount paid to the household for the heating season does not exceed the benefit amount computed using the benefit matrices and multipliers in the LIEAP Benefit Award Matrix and Table of Multipliers for the 2018-2019 2019-2020 heating season. Reimbursement 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 by June 20.
(3) and (4) remain 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 (department) is proposing the amendment of ARM 37.70.107, 37.70.110, 37.70.115, 37.70.305, 37.70.401, 37.70.402, 37.70.406, 37.70.408, 37.70.601, and 37.70.607 pertaining to the Low-Income Energy Assistance Program (LIEAP). LIEAP is a program to help low income households save home heating costs and address health and safety issues. The department proposes to make the following changes to its administrative rules governing LIEAP.
ARM 37.70.107, 37.70.110, 37.70.115, 37.70.406, 37.70.408, and 37.70.601
The department is proposing to remove all references to Intergovernmental Human Services Bureau. The amendment is necessary to reflect upcoming changes to organization to certain bureaus within the department.
ARM 37.70.305, 37.70.401, 37.70.402, 37.70.601, and 37.70.607
The department is proposing to amend these rules by providing that an updated LIEAP Benefit Award Matrix will be used for the 2019-2020 heating season. ARM 37.70.601 provides that, in most cases, an eligible household's benefit is computed by multiplying the applicable amount in the table of base benefits found in the LIEAP Benefit Award Matrix by the applicable multiplier from the table of income/climatic adjustment multipliers also found in the LIEAP Benefit Award Matrix. The amounts in the table of base benefits vary based on the type of heating fuel the household uses and the type and size of the household's dwelling. The benefit amounts also take into consideration available funding, fuel costs, and the number of households expected to receive benefits in a given heating season, all of which change from year to year. The amounts in the benefit tables in the LIEAP Benefit Award Matrix for 2019-2020 are being revised based on estimates of the amount of funds available to pay LIEAP benefits for the 2019-2020 heating season, the estimated number of households that will apply and be found eligible for the 2019-2020 season, and fuel cost projections for the 2019-2020 heating season. If the amounts in the benefit tables were not updated for the 2019-2020 heating season, the amount of benefits paid out for the season might exceed available funding or a large amount of funds that could have helped low income households heat their homes might go unspent.
In addition to the table of base benefits, the LIEAP Benefit Award Matrix also contains a table of income/climatic adjustment multipliers. These multipliers are based on a household's income as a percentage of the federal poverty guidelines and on what part of the state the household lives in. The state is divided into ten regions with different multipliers to take into account the climatic differences from one part of the state to another, which have an impact on residential heating costs. It is not necessary to revise multipliers annually because the factors on which they are based do not vary significantly year to year. The department is not proposing any changes to the table of income/climatic adjustment multipliers in the LIEAP Benefit Award Matrix for 2019-2020 for this reason.
ARM 37.70.401
The department is proposing amendments to clarify terms used in this rule. This is necessary to ensure defined terms are interpreted as the department intends.
The department proposes to amend the "annual gross receipts" definition to ensure the LIEAP rules are consistent with current practice. The update to ARM 37.70.401(2) was missed during the previous rule amendment. The department amended the rules last year to change LIEAP eligibility related to household income to be based on 6 months' income annualized instead of 12 months. This allows for more low-income households to qualify for LIEAP. "Annual" will be omitted from the term "annual gross receipts" and the definition will be updated to reference the 6 months preceding the month of application. The department is proposing to amend this rule to remove the LIEAP eligibility requirement related to household income based on 3 months preceding the month of application. The reference to 3 months annualized is outdated.
The program intends to modify the definition of "base-load electric" to include all plug-in appliances and domestic water heating. This proposed change ensures compliance with current program policy and practice and ensures "base-load electric" is interpreted as the department intends. This proposed change will provide better clarity.
The program intends to add "wood" to the "deliverable heating fuel" term. Wood is considered a deliverable heating fuel for LIEAP. This proposed addition ensures compliance with current program policy and practice. This proposed addition ensures "deliverable heating fuel" is interpreted as the department intends. This proposed change will provide better clarity.
The program intends to modify the definition of "mobile home" to include manufactured home, campers, or recreational vehicles. This proposed modification ensures "mobile home" is interpreted as the department intends.
It is necessary to add a definition for "nontraditional dwelling unit" and for "traditional dwelling unit" to explain the different types of dwelling units. These terms will ensure compliance with current program policy and practice. This proposed change addresses the increased demand for assistance with different types of dwelling units.
ARM 37.70.406
The department proposes to amend this rule to provide that it will use the U.S. Department of Health and Human Services′ poverty guidelines for 2019-2020, in the table of income standards used to determine eligibility for LIEAP for the 2019-2020 heating season. This change is necessary to take into account increases in the cost of living. The department uses the poverty guidelines for the current year because they are usually higher than the guidelines for the previous year, resulting in higher standards for the current heating season. If the department did not use the updated guidelines, some households might be ineligible for LIEAP due to inflationary increases in the household′s income that do not reflect an increase in buying power.
To accurately reflect changes made to the State Median Income estimates by household size the department intends to amend the rule to indicate that households with one through eight members with annual gross income at or below 60 percent of the estimated state median are eligible for LIEAP benefits on the basis of income. Households with nine or more members are eligible for LIEAP benefits on the basis of income only if the household's annual gross income is at or below 150 percent of the 2019 U.S. Department of Health and Human Services poverty guidelines for a household of that size.
ARM 37.70.408
The department is proposing to amend this rule by updating the date of the LIEAP Table of Nonbusiness Resource Limits used to determine LIEAP eligibility on the basis of resources. This is necessary because (5) provides that the dollar limits on nonbusiness resources will be revised annually to adjust for inflation by multiplying the current dollar limits by either the percentage increase in the consumer price index (CPI) for the previous calendar year or 3 percent, whichever is less. The increase in the CPI for 2016 was 0.7 percent and in 2017 it was 2.1 percent. The nonbusiness resource limits for the 2019-2020 heating season will also increase by 2.1 percent. If the resource limits were not revised annually to adjust for inflation, some households might be ineligible for LIEAP because their resources exceed the resource limit although the buying power of their resources was less than in previous years due to inflation.
Fiscal Impact
LIEAP is 100 percent federally funded. Based upon the information available at this time, the department estimates that Montana will receive comparable funding to the last heating season. Benefit levels for households using all types of heating fuel and for all dwelling types are expected to be comparable to the 2018-2019 heating season. It is estimated that 20,000 households will qualify for LIEAP benefits this year which is comparable to last year.
The department intends to apply these changes retroactively to October 1, 2019. A retroactive application of these proposed rule amendments does not result in a negative impact to any affected party.
5. 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: Gwen Knight, 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., December 6, 2019.
6. The Office of Legal Affairs, Department of Public Health and Human Services, has been designated to preside over and conduct this hearing.
7. 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 5 above or may be made by completing a request form at any rules hearing held by the department.
8. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
9. 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.
/s/ Jennifer C. Kaleczyc /s/ Sheila Hogan
Jennifer C. Kaleczyc Sheila Hogan, Director
Rule Reviewer Public Health and Human Services
Certified to the Secretary of State October 29, 2019.