This filing was published in the 06/15/2007, issue, Vol. 2007, No. 12, of the Utah State Bulletin.
Workforce Services, Employment Development
Assets That Are Not Counted (Exempt) for Eligibility Purposes
NOTICE OF PROPOSED RULE
DAR File No.: 29974
Filed: 05/25/2007, 04:07
Received by: NL
Purpose of the rule or reason for the change:
The purpose of this amendment is to exempt motorized vehicles.
Summary of the rule or change:
The goal of the Family Employment Program (FEP) is to help clients become self-sufficient. Most FEP clients must be employed to remain eligible. Employment often requires a vehicle. Because FEP eligibility was linked to Medicaid eligibility, the Department had a $8,000 equity value limit for vehicles. That amount is unrealistic. The Department has determined that very few families will be eligible under this change which were not eligible before the change. The change will save the Department the administrative burden of verifying the value of vehicles. Under this proposed change, all motor vehicles will be exempt.
State statutory or constitutional authorization for this rule:
Subsection 35A-3-302(5)(b), Section 35A-1-104, and Subsection 35A-1-104(4)
Anticipated cost or savings to:
the state budget:
This is a federally-funded program and there will be no costs of savings to the state.
This is a federally-funded program and there will be no costs of savings to any local government.
There are no costs or savings to any other persons as there are no fees associated with this program and it is federally-funded.
Compliance costs for affected persons:
There are no costs or savings to affected persons as there are no fees associated with this program and it is federally-funded.
Comments by the department head on the fiscal impact the rule may have on businesses:
There are no compliance costs associated with this change. There are no fees associated with this change. There will be no cost to anyone to comply with these changes. There will be no fiscal impact on any business. Kristen Cox, Executive Director
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:Workforce Services
140 E 300 S
SALT LAKE CITY UT 84111-2333
Direct questions regarding this rule to:
Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at email@example.com
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
This rule may become effective on:
Kristen Cox, Executive Director
R986. Workforce Services, Employment Development.
R986-200. Family Employment Program.
R986-200-231. Assets That Are Not Counted (Exempt) for Eligibility Purposes.
The following are not counted as an asset when determining eligibility for financial assistance:
(1) the home in which the family lives, and its contents, unless any single item of personal property has a value over $1,000, then only that item is counted toward the $2,000 limit. If the family owns more than one home, only the primary residence is exempt and the equity value of the other home is counted;
(2) the value of the lot on which the home stands is exempt if it does not exceed the average size of residential lots for the community in which it is located. The value of the property in excess of an average size lot is counted if marketable;
(3) water rights attached to the home property are exempt;
a maximum of $8,000 equity value of one
vehicle. The entire equity value of one
vehicle equipped to transport a disabled individual is exempt from the asset
limit even if the vehicle has a value in excess of $8,000];
(5) with the exception of real property, the value of income producing property necessary for employment;
(6) the value of any reasonable assistance received for post-secondary education;
(7) bona fide loans, including reverse equity loans;
(8) per capita payments or any asset purchased with per capita payments made to tribal members by the Secretary of the Interior or the tribe;
(9) maintenance items essential to day-to-day living;
(10) life estates;
(11) an irrevocable trust where neither the corpus nor income can be used for basic living expenses;
(12) for refugees, as defined under R986-300-303(1), assets that remain in the refugee's country of origin are not counted;
(13) one burial plot per member of the household. A burial plot is a burial space and any item related to repositories used for the remains of the deceased. This includes caskets, concrete vaults, urns, crypts, grave markers, etc. If the individual owns a grave site, the value of which includes opening and closing, the opening and closing is also exempt;
(14) a burial/funeral fund up to a maximum of $1,500 per member of the household;
(a) The value of any irrevocable burial trust is subtracted from the $1,500 burial/funeral fund exemption. If the irrevocable burial trust is valued at $1,500 or more, it reduces the burial/funeral fund exemption to zero.
(b) After deducting any irrevocable burial trust, if there is still a balance in the burial/funeral fund exemption amount, the remaining exemption is reduced by the cash value of any burial contract, funeral plan, or funds set aside for burial up to a maximum of $1,500. Any amount over $1,500 is considered an asset;
(15) any interest which is accrued on an exempt burial contract, funeral plan, or funds set aside for burial is exempt as income or assets. If an individual removes the principal or interest and uses the money for a purpose other than the individual's burial expenses, the amount withdrawn is countable income; and
(16) any other property exempt under federal law.
KEY: family employment program
Enactment or Last Substantive Amendment:
May 1, ]2007
Notice of Continuation: September 14, 2005
Authorizing, and Implemented or Interpreted Law: 35A-3-301 et seq.
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For questions regarding the content or application of this rule, please contact Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at firstname.lastname@example.org
For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.
Last modified: 06/13/2007 11:53 AM