34.22.4 “Section 1931(b) Vehicle Determination Worksheet”
34.29 Comparison Chart - Section 1931(b) & AFDC-MN
Topic Section 1931(b) Only AFDC-MN/MI
SHARE OF COST Always zero share of cost (SOC). Can be SOC or no SOC.
AGE Children must be under 18 years of age, or 18 years old and a full-time student graduating before his/her 19th birthday.
The unborn of a pregnant woman with other deprived children is included in the MFBU size from the onset of pregnancy.
The unborn of a pregnant woman with NO other children is considered a child when the mother is in her third trimester.
Children must be under 21 years of age.
UNEMPLOYMENT DEPRIVATION
100-Hour Rule/100% FPL Earned Income Test must be met when establishing U/P deprivation for the first time (applicant) or when deprivation changes from absent to unemployment.
If the PWE in a U/P case becomes incapacitated, and then changes back to U/P status, he/she does not have to meet the 100 Hour Rule/100%
FPL Earned Income Test again.
100-Hour Rule/100% FPL Earned Income Test used to determine U/P deprivation applies to recipients AND applicants.
INCOME-IN-KIND Use values from the AFDC State Plan as of 7/16/96. Use Medi-Cal chart values or actual amount.
SELF-EMPLOYMENT Customer has the choice of using:
• Actual verified business expense, or
• 40% of total self-employment income.
Customer has the choice of using:
• Actual verified business expense, or
• IRS allowable business expenses averaged over 12-month period.
STEPPARENT INCOME Must be included in the MFBU, regardless of if Medi-Cal is requested for him/her. Sneede rules apply.
Medi-Cal requested for:
• Separate children only--Do NOT count stepparent income.
• Parent and/or stepparent--Count stepparent income.
DISABILITY-BASED INCOME Private Disability benefits, and
Disability benefits from Social Security Administration (RSDI) Note: TWC and DIB are treated as earned income
Not applicable.
Note: TWC, DIB, and Temporary Private Disability are treated as earned income
DISABILITY-BASED INCOME DEDUCTIONS
100% FPL TEST - No deductions allowed.
MBSAC TEST - $240 deduction (50% deduction NOT allowed) Other applicable deductions.
Not Applicable.
EARNED INCOME DEDUCTIONS
APPLICANTS 100% FPL TEST USED:
$90 work expense
RECIPIENTS The EW must use the most advantageous of these two tests: $90 work expense
Dependent care deduction
Health Insurance premium deductions NOT allowed. Health Insurance premium deductions allowed.
Topic Section 1931(b) Only AFDC-MN/MI
PROPERTY
Property Limits MFBU of 1 = $3,000 MFBU of 2 = $3,000
Increases by $150 for each additional family member.
MFBU of 1 = $2,000 MFBU of 2 = $3,000
Increases by $150 for each additional family member.
Property of Insignificant Value Any property item that, if sold or disposed of, would produce less than 1/2 of the applicable property limit is exempt.
Note: Not applicable to vehicles or financial instruments.
Not applicable.
Stepparent Property If stepparent does not receive Medi-Cal, do not count stepparent’s separate property or half of community property.
Note: This does not change whether or not the parent wishes to receive Medi-Cal.
If parent receives Medi-Cal, count ALL of stepparent’s property. Otherwise, exempt stepparent’s property.
REAL PROPERTY
Principal Residence Principal residence is exempt:
• If the MFBU is living in it, or
• During a temporary absence if the customer plans to return and it appears that he/she has the ability to return.
Principal residence is exempt:
• If the MFBU is living in it, or
• If the MFBU has the intent to return.
Real Property for Sale Each parcel of real property listed for sale is considered unavailable for up to nine months. After the nine months expire, the full net market value is included in the property reserve.
Listed for sale and verified - Considered exempt for an indefinite period of time (Beltran v. Myers). Exempt property may be disposed of without adequate consideration.
Topic Section 1931(b) Only AFDC-MN/MI
Marital Separation and Real Property
The home is exempt in the month of application (or separation) and the following 3 months. After the 3 months expire, the customer’s share of the home is:
• Counted in the property reserve, or
• Considered unavailable if there is a court order to not liquidate property, until court determines ownership.
Not applicable.
Other Real Property (ORP) Utilization is not applicable. Utilization rules apply.
PENSION PLANS Exempt total value Exempt if steps are taken to obtain periodic payments.
IRAs Count Net Market Value (lowest face value minus penalties) in property reserve.
Exempt if steps are taken to obtain periodic payments.
KEOGHs Established with persons within the MFBU - Consider available and counted in the property reserve.
Contractual agreement with persons outside the MFBU - Consider unavailable and not included in the property reserve.
Exempt if steps are taken to obtain periodic payments.
MOTOR VEHICLES
Exempt Motor Vehicles Exempt all vehicles used for any of the following reasons:
• Used as household’s residence (one per household).
• Used to transport a physically disabled individual living in the home (one car per disabled person).
• Used on the job or for income producing purposes, even if only on a seasonal basis or temporarily unemployed.
• Necessary for long distance travel essential to individual’s employment, other than daily commuting.
• Used to transport the primary source of heating fuel or water.
Exempt:
• A vehicle used as the principal residence.
• Any one vehicle chosen by the customer.
Topic Section 1931(b) Only AFDC-MN/MI
Non-Exempt Motor Vehicles Include in the property reserve the lesser of:
• The Excess Fair Market Value (FMV), or
• Equity Value (Subtract $1,500 from the vehicle with the highest Equity Value).
Definitions:
Fair Market Value (FMV) = Blue Book / DMV chart /appraisal Net Market Value (NMV) = FMV - $1,500
Excess FMV = FMV - $4,650
Equity Value = FMV - Encumbrances
Include in the property reserve the Net Market Value of each nonexempt vehicle.
Definitions:
Fair Market Value (FMV) = Blue Book / DMV chart /appraisal
Net Market Value (NMV) = FMV - Encumbrances
LIFE INSURANCE - CSV Exempt the cash surrender value (CSV) of all life insurance policies. Exempt term life insurance.
Combined face value of all policies for each person is
$1500 or less -CSV exempt.
Combined face value of all policies for each person exceeds $1500 - CSV included in the property reserve.
SNEEDE Parental Needs allowance is MBSAC for one less $1. Parental Needs allowance is GAMMA deduction of
$600.
FOUR MONTH CONTINUING (AID CODE 54)
Available to families who were:
• Eligible for Section 1931(b) in 3 of the last 6 months, and
• Discontinued from Section 1931(b) due to an increase in child and/or spousal support payments.
Not applicable.
TMC Available to the families who were:
• Eligible for Section 1931(b) in 3 of the last 6 months, and
• Terminated from Section 1931(b) due to increased earnings.
Note: When a family is discontinued from CalWORKs, determine ongoing Section 1931(b) eligibility before determining TMC eligibility.
Not applicable.
Topic Section 1931(b) Only AFDC-MN/MI