(a) All of the earned income of a dependent child in receipt of Family Assistance (FA) or Safety Net Assistance (SNA), who is a full-time student or part-time student is exempt and must be disregarded as income or resources in determining eligibility or degree of need. For the purpose of this subdivision:

1. (1) full-time student means attending a school, college or university or a course of vocational or technical training designed to fit a person for gainful employment or participation in the Job Corps under the Job Training Partnership Act; and
2. (2) part-time student means attending a school, college or university or a course of vocational or technical training designed to fit a person for gainful employment or participation in the Jobs Corps under the Job Training Partnership Act equal to at least one half of a full- time curriculum as determined by the educational authority.

(c) For all FA households or any SNA household which contains a pregnant woman or a dependent child who meets the FA age requirements found at section 369.2(c) of this Title, after work expense disregards have been applied, 42 percent of the remainder of the recipient's monthly earned income is exempt and must be disregarded as income or resources in determining eligibility and degree of need; provided, however, that the percentage amount must be adjusted in June of each year beginning in 1998 to reflect changes in the most recently issued poverty guidelines of the United States Bureau of the Census, so that a household of three without special needs and without unearned income, living in a heated apartment in the City of New York, would become ineligible for assistance if gross earnings equal the poverty level. This disregard will be allowed only if such person had not:

1. (1) terminated employment or reduced earnings without good cause within the period of 30 days preceding such month;
2. (2) refused without good cause, within a period of 30 days preceding such month, to accept employment in which he/she is able to engage, offered by the State Employment Service, or any other bona fide offer of employment; or

3. (3) failed without good cause to make a timely report of income;

   The disregard specified in this subdivision must be provided only to recipients residing in housing provided under section 352.3(a), (b), (c) or (d) or section 352.8(b)(1) of this Part. Other recipients not residing in such housing may have income in excess of the poverty level but the disregard must be provided only to the extent that earnings do not exceed the poverty level.

(e) The earned income exemption specified in subdivision (c) of this section shall be applied against the earnings of a legally responsible caretaker relative whose needs are not included in the public assistance grant in determining the amount of such relative's earnings which are available to such relative's FA or SNA dependents. When such dependents are applicants for FA or SNA, the earned income of the nonapplying, legally responsible caretaker relative shall be treated in accordance with conditions set forth in subdivision (d) of this section.

(f) Safety Net Assistance (SNA) plan of self-support.

All of the earned income and/or resources of an SNA, or veteran assistance recipient which are necessary to fulfill a plan of self-support, which has been authorized and approved by a social services official, are exempt and must be disregarded when determining eligibility for or degree of need for such assistance for a period not to exceed one year.