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Notice #: 05532801
Public Hearings

STATE OF HAWAII
DEPARTMENT OF HUMAN SERVICES
BENEFIT, EMPLOYMENT AND SUPPORT SERVICES DIVISION


NOTICE OF PUBLIC HEARING

Pursuant to Sections 91-3 and 92-41, Hawaii Revised Statutes, notice is hereby given that the Department of Human Services will hold a public hearing to consider the proposed amendments to existing rules of the Benefit, Employment and Support Services Division for the purpose of conforming to federal and state statutes. A brief description of the proposed changes is listed below:

CHAPTER 17-602.1, HEARINGS

§17-602.1-10, Payment status of financial assistance recipients pending hearing.
Subsection (b) is amended to clarify that it is a change in the monthly assistance allowance, rather than grant reduction, as specified in 17-678-3.01 (c)(2), that allows adverse action to be taken pending a hearing decision. Also, there is no aid paid pending a hearing when the household is ineligible for a Grant Diversion payment due to non-compliance with participation requirements.

CHAPTER 17-647, APPLICATION PROCESSING REQUIREMENTS

§17-647-14, Time limits on disposition of application.
Subsection (a) is amended to simplify the language to state that the application process shall begin with the submittal of a signed application form, rather than an individual or family submitting a signed application form.

Subsection (b) is amended to clarify that applicants for the GA or AABD program shall receive financial assistance payment from the date of application through the eligible period if the application is approved.

Subsection (e) is amended to condense the language on presumptive eligibility for medical assistance.

CHAPTER 17-648, ELIGIBILITY REDETERMINATIONS

§17-648-4, Specific provisions for financial assistance.
Subsection (b) is amended to state that an AFDC recipient’s work eligible status, rather than eligibility for a First-to-Work exemption, shall be re-determined as part of the eligibility re-determination or when a change in circumstance occurs.

CHAPTER 17-650, REPORTING REQUIREMENTS

§17-650-18 (a)(2)(A), Other Reporting Requirements
Subsection (a) is being amended to say that the federal poverty limit used to require reporting of gross income will be updated upon notification by the U.S. Department of Health and Human Services.

CHAPTER 17-654, HAWAII NO-FAULT INSURANCE

§17-654-2, Definitions.
This section is amended by amending the definition of “valid driver’s license” to clarify that the driver’s license must be current to be considered a valid driver’s license.

§17-654-3, Eligibility for Hawaii no-fault auto insurance.
This section is amended to clarify that Medicaid recipients whose benefits have not terminated since July 1, 1994 are eligible for Hawaii no-fault insurance at no cost and further amends the language in this section to conform with the state law.

§17-654-7, Termination of Hawaii no-fault auto insurance.
This section is amended to require that the individual receive a written notice of prospective cancellation or non-renewal not less than thirty calendar days prior to the effective date of the cancellation or non-renewal. No-fault coverage shall continue for thirty days following the mailing of the notice.

CHAPTER 17-656.1, AID TO FAMILIES WITH DEPENDENT CHILDREN (AFDC)

§17-656.1-2, Definitions.
The definitions for the terms “exempt adult”, “exempt household”, “family” and “non- exempt household” were deleted. The new definitions of “family member”, “gainful employment”, “non-work eligible household”, “non-work eligible individual”, “other work eligible household”, “other work eligible individual”, “work eligible household”, and “work eligible individual” are added. The definition for the terms “adult”, “full-time employment”, “full-time student”, and “time eligible month” have been amended.

§17-656.1-3, Time limited benefits.
Subsection (a) is amended to replace the word “benefits” with “assistance” for consistency in the chapter. The term “exempt” is replaced with the terms “non work eligible” and “other work eligible” to explain who is not limited to sixty months of assistance and who is paid with state funds.

§17-656.1-6, Age requirement.
Subsection (b) is amended to require a child sixteen to eighteen years of age to participate with the First-to-Work program if the child is not a full time student in a secondary school or a program of an equivalent level of vocational or technical training; or has completed secondary school or a program of an equivalent level of vocational or technical training.

§17-656.1-8.1, Intake and orientation session requirement.
A new section is added to require that one adult in an AFDC applicant household attend an intake and orientation session within ten days from the application interview as a condition of eligibility for AFDC benefits. For non-work eligible applicants and applicants sixty-five years and older, the application interview shall satisfy the requirement of the intake and orientation session. For the applicant curing a sanction, the cure shall satisfy this requirement. For the Grant Diversion recipient for whom an AFDC program is automatically converted, the Grant Diversion orientation shall satisfy this requirement. For the other work eligible applicant, excluding those 65 years and older, the intake and orientation requirement shall be completed within ten days of the determination of disability or domestic violence victim status. Failure to attend the intake session shall result in a denial of AFDC benefits.

§17-656.1-8.2, Grant Diversion requirement.
A new section is added for work eligible and other work eligible households to require receipt of four months of benefits in the Grant Diversion program and four months of compliance with the required work-related activity as a condition of eligibility for AFDC.

§17-656.1-10, AFDC work requirements.
Subsection (a) is amended to say the applicant shall be considered a work eligible individual unless the applicant claims an inability to work or has provided verification that the applicant is a non-work eligible individual. Applicants and recipients determined to be work eligible individuals or other work eligible individuals shall be required to participate with the First-to-Work program as specified in chapter 17-794.1. Subsection (d) has two new paragraphs to explain when there is more than one adult in the household who is subject to the same work participation requirements, the household shall decide which adult will be required to participate. When the adults do not have the same work participation requirements, the work eligible adult shall participate, and if there is no work eligible adult, then the other work eligible adult shall participate. A new subsection (e) is added to require that a child aged sixteen to eighteen who is not a full-time student in a secondary school or a program of an equivalent level of vocational or technical training or who has completed secondary school or a program of an equivalent level of vocational or technical training shall participate with First-to-Work. A new subsection (f) is added to establish the sanctions for failure or refusal to participate in the First-to-Work program.

§17-656.1-10.1, Participation requirements for individuals with a disability.
The language in this section heading is amended for consistency and the section has been amended to clarify that an individual who claims incapacity due to a physical or mental impairment, which prevents the individual from complying with the work requirements, shall provide the department with a current medical report to substantiate the claim.

§17-656.1-12, Voluntary quit.
Terms in this section are amended for consistency in this chapter and reference is also made to a new chapter 17-794.1.

§17-656.1-16, Essential person.
Terms in subsection (c) are amended for consistency in this chapter.

§17-656.1-18, Notification.
This section is amended to clarify that the applicant or recipient must receive an explanation of the program requirements and procedures for claiming to be a victim of domestic violence and an explanation of procedures for appealing the denial of a claim for domestic violence victim status.

§17-656.1-19, Identification.
The language in subsection (b) is amended. The phrase “determination of eligibility for a domestic violence exemption” is replaced with “determination of domestic violence victim status”.

§17-656.1-20, Participation requirements for domestic violence victims.
The heading and language of this section is reworded for consistency. New subsections (f), (g), (h), (i), and (j) are added to explain the sanctions for refusal or failure to participate in assessment and treatment services without good cause. The full-family sanction is the same as in section 17-656.1-10.1.

§17-656.1-21, Extending the domestic violence victim status.
The language in this section is reworded for consistency with section 17-656.1-19.

§17-656.1-22, Failure to comply with First-to-Work requirements; no sanction for victims of domestic violence. This section is repealed and made a part of section 17-656.1-20.

CHAPTER 17-656.2, OTHER FAMILY ASSISTANCE PROGRAMS

§17-656.2-2, Definitions.
The definitions for the terms “non-exempt household”, “participant”, and “work mandatory adult” have been deleted. The term “non-exempt” has been replaced by new definitions of “work eligible household” and “work eligible individual”. New definitions of “First-to-Work”, “gainful employment”, “Grant Diversion”, “Non-work eligible household”, “Other work eligible household”, and “Other work eligible individual” are also added. The definition for the terms “adult”, “Aid to families with dependent children”, “full-time employment”, and “time eligible month” have been amended.

§17-656.2-8, General eligibility requirements.
Subsection (b) is amended by replacing the term “non-exempt” with “work eligible” in the Employment Subsidy program for consistency in the chapter.

§17-656.2-10, Benefit determination.
Subsection (a) paragraph (3) is amended to require that each employed household member be employed thirty hours per week or one hundred twenty-nine hours a month from the twenty-fifth month through the sixtieth consecutive employment subsidy month instead of thirty-two hours a week or one hundred thirty-eight hours a month.

§17-656.2-15, General eligibility requirements.
Subsection (a) paragraph (2) is amended by replacing the phrase “work mandatory adult in a non-exempt household” with “an adult in a work eligible household.

§17-656.2-16, Program eligibility requirements.
Subsection (a) paragraph (2) is amended by deleting the phrase “good cause” and replacing it with “a reason”. Subsection (e) is amended by removing reference to chapter 17-684, which has been repealed, and replacing it with reference to chapter 17-794.1. Subsection (j) is amended by removing the exemption from monthly reporting under the Grant+ program and subsection (k) is added to state that the household shall be subject to the reporting requirements specified in chapter 17-650.

§17-656.2-25, Program eligibility requirements.
Subsection (b) is amended by replacing the phrase “one adult who is not exempt” with “one work eligible individual”. Subsection (f) is amended by replacing the term “family” with “assistance unit”. Subsection (h) is amended to say that an eligible household shall be exempt from the reporting requirements.

§17-656.2-26, Benefit determination.
Subsection (e) is amended by reformatting the subsection to add the “(3)” which was inadvertently omitted.

§17-656.2-32, General eligibility requirements.
A new subsection (b) is added to require that eligibility is limited to receipt of Grant Diversion payments for four months in the lifetime of the household. Subsection (b) is renumbered to subsection (c) and paragraphs (1), (2) and (3) of the new subsection (c) are being amended to clarify that the applicant household of the Grant Diversion program must not have received financial assistance in the AFDC category for two calendar months immediately preceding the application; must be a work eligible household or other work eligible household, and must not have any outstanding sanctions to cure from a prior AFDC involvement. Subsections (c) is deleted because it was moved to paragraph (3) of the new subsection (c) to state that an applicant household must not have any outstanding AFDC sanctions to cure. Subsection (d) which did not allow a work mandatory pregnant woman to participate in the Grant Diversion program is deleted. Subsections (e), (f), and (g) are renumbered to (d), (e) and (f). The new subsection (d) is amended to specify that an “adult” instead of “a work mandatory adult” who is employed thirty or more hours per week shall not participate in the Grant Diversion program. Subsection (h) that required the Grant Diversion household to be a non-exempt household is deleted. Subsections (i) through (k) are renumbered to (g), (h), and (i)

§17-656.2-33, Program eligibility requirements.
A new subsection (a) is added to require one adult in the household to attend an orientation session within five working days of the date of application. The new subsection (b) is amended to say that an application shall be presumptively approved if an adult in the household has attended the required orientation and eligibility interview sessions. Subsection (d) is amended to require that eligibility is limited to receipt of Grant Diversion payments for four months in the lifetime of the household and deletes the requirement that a prorated month shall not count as one of the four months. Subsection (e) is rewritten for clarity to say that months in which benefits are paid shall not count toward the household’s sixty-month time limit. Subsection (f) is amended to state that the monthly assistance allowance shall be changed to fifty per cent of the standard of need for the entire four-month fixed period. Subsection (g) is amended to state that a household that is subsequently determined to be a non-work eligible household shall become ineligible for the Grant Diversion program. Subsection (h) is amended to state that a household that terminates assistance before receiving a payment for each of the four months shall be subject to the provisions of the Grant Diversion program prior to receiving payments for the remaining months. Subsection (i) is amended to require that participation in the Grant Diversion program shall end when the household receives payments for four months of participation and the household shall have eligibility determined under the AFDC program.

§17-656.2-34, Participation requirements.
The title of this section is amended to “Participation requirements” instead of “Program participation requirements”. Subsection (a) is amended to say that participation shall begin with an intake session. Subsections (b), (c), (d) and (f) are deleted and replaced with new subsections (b) through (h). The new subsections (b) and (c) indicate the hierarchy to determine the adult who is required to comply with the work activities when there is more than one adult in the household. The new subsection (d) requires that the adult comply for a fourteen day period beginning with the date the intake session was attended before a payment for the first month may be authorized. The new subsection (e) requires compliance in the previous month before payments for each subsequent month may be authorized. The new subsection (f) states that the household shall be ineligible for one month following non-compliance; and only adequate notice needs to be provided when the household is determined ineligible due to non-compliance with participation requirements; and shall not reapply nor be allowed to participate in any required work-related activity in the ineligible month. Subsection (g) outlines the requirements for eligibility after being ineligible for one month.

§17-656.2-35, Failure to comply with program requirements, is repealed.

Chapter 17-656.2, Subchapter 6, is repealed.

§17-656.2-53, Definitions.
This section is amended by deleting the definition of “Grant Diversion” as this chapter pertains only to the Employment Bonus Program.

§17-656.2-54, Exit bonus requirements.
Subsection (a) is amended to state that a timely application for the exit bonus must be submitted no later than the last calendar day in the month following the month action is taken to terminate benefits. Paragraph (3) is amended to delete the word “and” to properly set forth the list of conditions in this subsection. Paragraph (4) has been amended to correct the word “chapters” to “chapter” 17-676.

§17-656.2-55, Job retention bonus requirements.
Subsection (c) is amended for clarity to state that reason for closure will not affect eligibility for the job retention bonus, except for closure for the Self-Sufficiency Program as specified in 17-656.2-54(3)(A), where the household shall be considered recipients for the period the Self-Sufficiency payment was issued. Subsection (d) is amended by removing the requirement that all sanctions must be cured to be eligible for a three month, six month, twelve month and twenty-four month job retention bonus. Paragraph (5) is amended to update reference to section 17-794.1-40.

CHAPTER 17-675, ASSETS

§17-675-14, Evaluating assets for financial assistance.
Subsection (b) is amended to correct a grammatical error to add the word “an” between “of” and “applicant”. Subsection (d) is amended by stating that the assets of an SSI recipient shall not be considered in determining the eligibility of the remaining members in the household for the AFDC category instead of only for the federally funded AFDC category. This is consistent with section 17-656.1-17 which excludes all income and assets of the SSI person in determining the amount of the financial assistance payment for the remainder of the family members in the AFDC program. Subsection (e) is amended to consider the assets of the SSI recipient for only the General Assistance and state-funded assistance for aged, blind and disabled individuals. Subsection (h) is amended to clarify that assets of both parents, natural, legal, or adoptive, shall be considered available for each other and the support of their children. Subsection (k) is amended by replacing the word “family” with “household”.

CHAPTER 17-676, INCOME

§17-676-80, Income exemptions in the financial assistance programs.
This section is amended by amending paragraph (13) to change the phrase “monthly incentive payment” to “work incentive payments” to exempt payments made under the work programs (i.e. rent support, work-related expenses, work incentive payments, etc.). Citations of law have been updated in this section.

CHAPTER 17-678, FINANCIAL ASSISTANCE STANDARDS FOR INDIVIDUALS IN INDEPENDENT LIVING ARRANGEMENTS, RESIDENTIAL TREATMENT FACILITIES, OR DOMICIALIARY CARE HOMES

§17-678-3, Monthly assistance allowance for GA and AABD individuals in independent living arrangements or residential treatment facilities.
Subsection (b) is amended to change the monthly assistance allowance to fifty per cent of the standard of need for AABD individuals. Subsection (c) paragraph (2) is amended to say the monthly assistance allowance shall not exceed fifty percent of the standard of need instead of sixty-two and a half percent of the standard of need.

§17-678-3.01, Monthly assistance allowance for AFDC individuals in independent living arrangements or residential treatment facilities.
Subsection (a) has been amended by replacing the word “family” with “household”. Subsection (b) is amended to change the monthly assistance allowance to fifty per cent of the standard of need for all households other than work eligible households. Subsection (c) is amended to change the monthly assistance allowance to fifty per cent of the standard of need for work eligible households. After two full months of assistance, the monthly assistance allowance will be reduced to forty percent of the standard of need until the household becomes a non-work eligible household or other work eligible household. Subsection (d) is amended to allow work eligible independent minor parents to be exempt from the reduction in the monthly assistance allowance until the independent minor parent has completed secondary school.

§17-678-4, Standard of Need
Subsection (a) is to change the monthly standard of need to one hundred percent of the federal poverty level established by the federal government in 2006.

CHAPTER 17-681, ISSUANCE OF BENEFITS

§17-681-8, Protective payment.
Subsection (a) is amended by replacing reference to the repealed chapter 17-684 with new chapter 17-794.1.

§17-681-51, Definitions.
This section has been amended by replacing references to repealed chapter 17-684 with new chapter 17-794.1. Acronyms have been set apart from the terms for “Automated Clearing House” or “ACH”, “Automated teller machine” or “ATM”, “Electronic benefit transfer system” or “EBT”, Hawaii Automated Network of Assistance system” or “HANA”, “Hawaii Automated Welfare Information system” or “HAWI”, “Personal identification number” or “PIN”, and “Point-of-sale device” or “POS”. Grammatical changes were made to the word “network” and to “acquirer”. The word “malfunction” was replaced with the word “error” in the definition of the term “Reversal”.

CHAPTER 17-684.1, FOOD STAMP WORK REQUIREMENTS

Chapter 17-684.1 is adopted to specify that as a condition of eligibility for food stamps, able-bodied adults between 16 and 60 must register for work, accept suitable employment, and take part in an employment and training program to which they are referred by the food stamp office. Failure to comply with these requirements can result in disqualification from the Program. In addition, able-bodied adults between 18 and 50 who do not have any dependent children can get food stamps only for 3 months in a 36-month period if they do not work or participate in an employment and training program. This requirement is waived in some locations.

Chapter 17-684.1 is based substantially on subchapters 3 and 4 of Chapter 17-684, which is being repealed. A significant change is being proposed in the disqualification periods to be uniformly applied as follows:

For applicant households in which a household member failed to comply with a work requirement or voluntarily reduced work hours or quit a job:
(1) For the first violation, the individual shall be ineligible until the later of:
(a) The date the individual complies with the work requirement; or
(b) Thirty days from date of application; or
(c) In the case of a job quit or reduction of work hours, thirty days from the
date of job quit or reduction of work hours.
(2) For the second violation, the individual shall be ineligible until the later of:
(a) The date the individual complies with the work requirement; or
(b) Ninety days from the date of application; or
(c) In the case of a job quit or reduction of work hours, ninety days from
the date of job quit or reduction of work hours.
(3) For the third or subsequent violation, the individual shall be ineligible
until the later of:
(a) The date the individual complies with the work requirements; or
(b) One hundred eighty days from the date of application.
(c) In the case of a job quit or reduction of work hours, one hundred eighty
days from the date of job quit or reduction of work hours.

For participating households, the individual determined ineligible shall be disqualified as follows:
(1) For the first violation, the individual shall be ineligible until the later of:
(a) The date the individual complies with the work requirement; or
(b) One month.
(2) For the second violation, the individual shall be ineligible until the later of:
(a) The date the individual complies with the work requirement; or
(b) Three months.
(3) For the third or subsequent violation, the individual shall be ineligible
until the later of:
(a) The date the individual complies with the work requirement; or
(b) Six months.

A public hearing will be held at the following date, time and place:

Monday, December 17, 2007, 1:30 p.m.; Haseko Center, Suite 606, Conference Room 2, 820 Mililani Street, Honolulu, Hawaii.

All interested persons are invited to attend the hearing to state their views relative to the proposed rules either orally or in writing. Should written testimony be presented, five (5) copies shall be made available to the presiding officer at the public hearing or within seven (7) days before the hearing to:

Department of Human Services
Benefit, Employment & Support Services Division
820 Mililani Street, Suite 606
Honolulu, Hawaii 96813

Residents of Hawaii, Kauai, Maui, and Molokai wishing to present oral testimonies may also contact the Benefit, Employment and Support Services Section Administration office on the respective islands within seven (7) days before the Honolulu hearing date to have their testimony recorded:

East Hawaii Section Administrator
1900 Kinoole Street, Suite 111
Hilo, HI (981-7288)

West Hawaii Section Administrator
75-5722 Hanama Place, Room 1105
Kailua-Kona, HI (327-4765);

Kauai Section Administrator
Dynasty Court
4473 Pahee Street, Suite G
Lihue, HI (241-3663);

Maui Section Administrator
1955 Main Street, Suite #325
Wailuku, HI (243-5875);

Molokai Income Maintenance Unit
Kaunakakai Civic Center, Phase 2
55 Makaena Place, Room 1
Kaunakakai, HI (553-1715)

A copy of the proposed rules will be mailed at NO COST to any interested person requesting a copy by writing to:

Department of Human Services
Benefit, Employment & Support Services Division
820 Mililani Street, Suite 606
Honolulu, Hawaii 96813
or by calling 586-5230. Neighbor island residents may request a copy of the proposed rules at NO COST by contacting the Benefit, Employment and Support Services Division office during regular business days and hours.

Proposed rules are available on the internet at www.hawaii.gov/ltgov/office/adminrules

Special accommodations (i.e., Sign language interpreter, large print, taped materials, or accessible parking) can be made, if requested at least five (5) working days before the scheduled public hearing on Oahu by calling 586-5230. Neighbor island residents needing special accommodations should contact the Benefit, Employment and Support Services Section Administration office on the respective islands with their requests.

DEPARTMENT OF HUMAN SERVICES
LILLIAN B. KOLLER, DIRECTOR
(SB05532801 11/14/07)