In determining eligibility and computing the assistance payment, the earned income exemption is applied as follows:

1. (1) Initial eligibility for a new applicant is determined without using the earned income exemption. If eligibility for a money payment can be established, the amount of the assistance payment is computed using the earned income exemption;
2. (2) When determining continuing eligibility and the amount of assistance, the earned income exemption is applied according to § 67:12:05:14;
3. (3) If a recipient is penalized for failing to report earned income or for terminating employment, reducing earned income, or refusing an offer of employment, the earned income exemption may not be applied for the month the penalty is in effect; and

4. (4) The earned income exemption is applied as follows in determining initial eligibility for a former recipient who is reapplying:

   1. (a) A thirty-dollar plus one-third of the remaining income exemption is applied if the former recipient is eligible under § 67:12:05:14 and received aid to families with dependent children in one or more of the four preceding months;
   2. (b) A thirty-dollar exemption is applied if the former recipient is eligible under § 67:12:05:14; and
   3. (c) Eligibility is determined according to subdivision (1) of this section if the former recipient does not qualify under subsection (a) or (b) of this section but is otherwise eligible under § 67:12:05:14.

Source: SL 1975, ch 16, § 1; 2 SDR 88, effective July 1, 1976; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982; 12 SDR 4, effective July 21, 1985 ; 52 SDR 55, effective December 2, 2025 .

General Authority: SDCL 28- 6-1 .

Law Implemented: SDCL 28- 6-1 .

Prior versions effective: 1985-07-21.