1. (a) The following types of unearned income are not counted in determining a family’s transitional employment assistance (TEA) eligibility or payment amount:

   1. (1)

      1. (A) Supplemental Security Income benefits and other income of Supplemental Security Income recipients/eligibles.
      2. (B) This includes individuals who do not receive a Supplemental Security Income payment due to an increase in income that exceeds the Supplemental Security Income benefit level but are receiving Medicaid in a Supplemental Security Income category.
      3. (C) These individuals are:

2. (i) Widows or widowers with a disability who would be eligible for Supplemental Security Income if the 1984 reduction factor increase and any subsequent COLAs were disregarded (Medical Services Policy Manual, B-343);

   1. (ii) Widows or widowers over age sixty (60) with a disability (Medical Services Policy Manual, B-344) (categories 31 and 41);

      1. (iii) Pickle eligibles (Medical Services Policy Manual, B-342);

         1. (iv) Widows and widowers with a disability and surviving divorced spouses who have a disability (Medical Services Policy Manual, B-345); and
         2. (v) Adult children with disabilities (Medical Services Policy Manual, B-346) (categories 31 or 41);

   2. (2)

      1. (A) Educational assistance/awards.
      2. (B) This includes student loans, grants, scholarships, incentives, work study, etc.

      3. (C) Such assistance may be from:

         1. (i) A governmental entity (federal, state, or local); or
         2. (ii) Private agencies or organizations;
   3. (3) Incentives, reimbursements, or any other payment made from TEA funds resulting from participation in work activities;

   4. (4)

      1. (A) Assistance from other agencies and organizations that is based, in whole or in part, on financial need.

      2. (B) Such assistance includes, but is not limited to:

         1. (i) Subsidized United States Department of Housing and Urban Development housing, including utility allowances;
         2. (ii) Payments for rehabilitative services or training, including sheltered workshop payments;
         3. (iii) Home Energy Assistance Program (HEAP) payments; and
         4. (iv) Cash payments from churches or other charitable organizations for rent, food, or other basic needs;

   5. (5)

      1. (A) Bona fide loans from any source, e.g., bank, any other establishment engaged in the business of making loans, or an individual.

      2. (B) A loan is considered bona fide if it meets any of the following conditions:

         1. (i) There is a written agreement to repay the money within a specified time, or it was obtained from an individual or establishment engaged in the business of making loans;
         2. (ii) The borrower acknowledges the obligation to repay, with or without interest; or
         3. (iii)
3. (a) (a) The borrower expresses intent to repay either by pledging real or personal property or anticipated income.

4. (b) (b) It is not necessary that the loan be secured solely by specific items of collateral such as real or personal property.

   1. (c) (c) It is only necessary that the borrower express the intent to repay the loan when funds become available in the future and indicate that repayment of the loan will begin when future anticipated income is received;
   2. (6) Any cash contribution from a friend or relative;

   3. (7)

      1. (A) Lump sum payments.
      2. (B) This includes insurance settlements, a single payment intended to cover a period of time, such as a Social Security lump sum, and other one-time payments that exceed the income eligibility standard.
      3. (C) Such payments are considered as resources in the month of receipt;
   4. (8) Earned Income Tax Credits and other tax refunds;

   5. (9)

      1. (A) Inconsequential income.
      2. (B) This is defined as income that is less than five dollars ($5.00) per month.
      3. (C) It may be received on a regular or irregular basis and may be from any source.
      4. (D) An example of such income would be interest income paid on a small savings account that amounts to less than five dollars ($5.00) per month;

   6. (10)

      1. (A) Irregular income.
      2. (B) This is income that is not received on a regular basis and is usually not predictable.
      3. (C) Such income may be of any amount and may be from any source.
      4. (D) An example of such income would be a cash gift given to a family member for a birthday or other special occasion;
   7. (11) Emergency or disaster assistance payments made by any federal, state, or local agency or entity;
   8. (12) Payments made directly to landlords and other vendors on behalf of the family;
   9. (13) Federal or state foster care board payments;

   10. (14)

       1. (A) Any type of income that must be disregarded according to federal or state statute.
       2. (B) See subsection (b) of this section;
   11. (15) When the family unit consists of a minor parent and his or her child, the income of the minor parent’s parent, parents, or stepparent; and
   12. (16) The income of the spouse of a nonparent relative who is included in the TEA cash assistance unit.

5. (b) Note.

   1. (1) At any time there is a question as to whether a particular payment may be disregarded under subdivision (a)(13) of this section, the pertinent documents concerning the payment should be submitted to the Office of Program Planning and Development, Slot S332, for a determination.
   2. (2) This information should include the specific federal or state statute under which it is believed the disregarded treatment is required.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “04/08/19”