Article 67:12 Assistance Payments

1 ARTICLE 67:12
ASSISTANCE PAYMENTS

Chapter
67:12:01 Assistance applications and eligibility.
67:12:02 Notice to applicants and recipients.
67:12:03 Fair hearings, Transferred.
67:12:04 Limitations on real property.
67:12:05 Limitations on personal property.
67:12:06 Budgeting.
67:12:07 Emergency assistance, Repealed.
67:12:08 Protective, vendor, or two-party payments, Repealed.
67:12:09 Job opportunities and basic skills, Repealed.
67:12:10 Food stamp program, Transferred.
67:12:11 Refugee resettlement program, Repealed.
67:12:12 Dependent children foster care.
67:12:13 Repatriate program.
67:12:14 Optional state supplemental program.
67:12:15 Dependent care, Repealed or Transferred.
67:12:16 Transitional child care, Repealed.
67:12:17 Transitional medical benefits, Repealed.
67:12:18 Unemployed parent program, Repealed.
67:12:19 Intentional program violations (IPVs), Repealed. 2 67:12:20 Transitional employment allowance, Repealed.
67:12:21 Time limits for AFDC benefits, Repealed.

3 CHAPTER 67:12:01
ASSISTANCE APPLICATIONS AND ELIGIBILITY Section
67:12:01:01 Definitions.
67:12:01:02 Application -- Inquiry, Repealed.
67:12:01:03 Signed application.
67:12:01:03.01 Client has right to be assisted or represented.
67:12:01:04 Repealed.
67:12:01:05 Method of determining initial and continuing eligibility.
67:12:01:06 Determination of eligibility within forty-five days.
67:12:01:06.01 Applicant to provide information promptly.
67:12:01:07 Prompt determination of continuing eligibility.
67:12:01:08 Proper application of time standards.
67:12:01:09 Case record to contain facts on eligibility decisions.
67:12:01:10 Applicants to be informed in writing and orally.
67:12:01:11 Date entitlement for financial assistance begins.
67:12:01:12 Recipient to report change of circumstances.
67:12:01:12.01 Repealed.
67:12:01:13 Full determination of continuing eligibility.
67:12:01:14 Citizenship and alienage.
67:12:01:14.01 Deeming of sponsor's income and resources to alien when
sponsor is an individual -- Cooperation of sponsor is
condition of eligibility. 4 67:12:01:14.02 Aliens exempt from sponsor deeming.
67:12:01:14.03 Eligibility of alien sponsored by public or private
organization or agency -- Cooperation of sponsor is
condition of eligibility.
67:12:01:15 Determination of residence of child in Aid to Families With
Dependent Children aid to families with dependent children
program.
67:12:01:16 Residence determination for applicants or recipients who
leave the state.
67:12:01:17 Eligibility of applicant or recipient who receives assistance
from another state.
67:12:01:18 Termination to result if caseworker cannot locate recipient
applicant.
67:12:01:19 Age requirements for Aid to Families With Dependent
Children aid to families with dependent children.
67:12:01:20 Repealed.
67:12:01:21 "Regularly attending school" defined.
67:12:01:22 "Full-time" and "half-time" student defined.
67:12:01:23 Medical-only coverage for certain children and pregnant
women.
67:12:01:23.01 and 67:12:01:24 Repealed.
67:12:01:25 Beginning of eligibility when only year of birth known.
67:12:01:26 Repealed. 5 67:12:01:27 Specific degree of relationship between child and parent or
relative.
67:12:01:28 Repealed.
67:12:01:29 Deprivation of parental support or care because of continued
absence from the home.
67:12:01:30 Absence of parent because of employment, seeking
employment, or attending school.
67:12:01:31 Absence of parent due to hospitalization, imprisonment, and
deportation.
67:12:01:32 Absence of parent due to uniformed service.
67:12:01:33 Absence of parent if mother not married to father of child.
67:12:01:34 Absence of parent due to divorce or separate maintenance
decrees.
67:12:01:35 Absence of parent by mutual agreement of separation.
67:12:01:36 Repealed.
67:12:01:37 Absence of parent in unstable family situation.
67:12:01:38 Repealed.
67:12:01:39 Deprivation of parental support or care because of physical
or mental incapacity of parent.
67:12:01:40 Determination of incapacity by disability incapacity
consultation team.
67:12:01:41 Definition of "physical or mental incapacity."
67:12:01:42 Patient's consent for release of medical information. 6 67:12:01:43 Medical examinations if information not available -- Choice
of examiners.
67:12:01:44 Psychiatric reports and records from mental hospital may be
sufficient.
67:12:01:45 Basis for payments for medical examinations and reports --
Authorization required for intensive procedures.
67:12:01:46 Incapacity related to ability to carry full-time job.
67:12:01:47 Repealed.
67:12:01:48 Parents receiving disability payments under other programs.
67:12:01:48.01 Eligibility of parents participating in vocational
rehabilitation training programs.
67:12:01:49 Cessation of incapacity.
67:12:01:50 Temporary absence of child or payee relative.
67:12:01:51 Emergency payee.
67:12:01:52 Unsuitable home.
67:12:01:53 Man not married to mother and living in household.
67:12:01:54 Inclusion of caretaker relative other than parent in Aid to
Families With Dependent Children aid to families with
dependent children grant.
67:12:01:55 Eligibility of second parent in Aid to Families With
Dependent Children aid to families with dependent children
grant.
67:12:01:56 Repealed. 7 67:12:01:57 Confidentiality of client's records.
67:12:01:58 and 67:12:01:59 Repealed.
67:12:01:60 Date of entitlement for medical coverage.
67:12:01:61 Transferred.
67:12:01:61.01 Continued medical coverage -- Child support.
67:12:01:61.02 Transferred.
67:12:01:62. Incapacity based on blindness or visual impairment --
Medical findings required.
67:12:01:63 to 67:12:01:65 Repealed.
67:12:01:66 Cooperation of caretaker relative as condition of eligibility.
67:12:01:66.01 Cooperation of applicant or recipient not required.
67:12:01:66.02 Applicant or recipient to establish good cause.
67:12:01:66.03 Applicant or recipient to provide timely evidence --
Extensions -- Failure to respond.
67:12:01:66.04 Evidence of good cause.
67:12:01:66.05 Department to investigate good cause claims.
67:12:01:66.06 Additional evidence may be required.
67:12:01:66.07 Departmental contact with absent parent.
67:12:01:66.08 Department to determine good cause and notify applicant or
recipient -- Contents of notice.
67:12:01:66.09 Appeal of good cause determination.
67:12:01:66.10 Criteria for basing good cause on emotional harm. 8 67:12:01:66.11 Biannual redetermination of good cause -- Notice of
rescindment.
67:12:01:67 and 67:12:01:68 Repealed.
67:12:01:69 Individuals who must be included in assistance unit.
67:12:01:70 Cooperation of applicant or recipient.
67:12:01:71 Denial of Aid to Families With Dependent Children aid to
families with dependent children benefits to strikers.
67:12:01:72 Pregnant women referred to Department of Health.
67:12:01:73 Assistance unit randomly assigned to groups.
67:12:01:74 Eligibility determinations for assigned groups.
67:12:01:75 Eligibility restrictions for a parent under the age of eighteen.
67:12:01:76 Exceptions to eligibility requirements for parents under the
age of eighteen.
67:12:01:77 Denial of assistance for fugitive felons and probation and
parole violators.
67:12:01:78 Denial of assistance for fraudulently misrepresenting place
of residence.
67:12:01:79 Assistance unit ineligible after sixty months.
9 67:12:01:15. Determination of residence of child in Aid to Families With
Dependent Children aid to families with dependent children program. For the Aid to
Families With Dependent Children aid to families with dependent children program, a
child is a resident of the state where the caretaker relative is a resident. The caretaker
relative is considered a resident of the state of South Dakota when physically present in the
state with an expressed intent to remain, when entering the state with a job commitment, or
when seeking employment in the state, whether or not currently employed in the state.

Source: SL 1975, ch 16, § 1; 7 SDR 23, effective September 18, 1980; 7 SDR 66,
7 SDR 89, effective July 1, 1981; 51 SDR 52, effective November 11, 2024.
General Authority: SDCL 28-6-1.
Law Implemented: SDCL 28-6-1.

Cross-Reference: Residence, 45 C.F.R. §§ 233.40(a)(1).
10 67:12:01:19. Age requirements for Aid to Families With Dependent Children
aid to families with dependent children. A child may be eligible for Aid to Families
With Dependent Children the aid to families with dependent children program if the child
is a dependent child.

Source: SL 1975, ch 16, § 1; 7 SDR 23, effective September 18, 1980; 7 SDR 66,
7 SDR 89, effective July 1, 1981; 10 SDR 68, effective January 1, 1984; 51 SDR 52,
effective November 11, 2024.
General Authority: SDCL 28-6-1.
Law Implemented: SDCL 28-6-1.
11 67:12:01:54. Inclusion of caretaker relative other than parent in Aid to
Families With Dependent Children aid to families with dependent children grant. A
caretaker relative other than the parent may be included in the aid to families with
dependent children grant if the caretaker relative meets the following conditions:
(1) The caretaker relative is not receiving a supplremental supplemental security
income payment or state supplement;
(2) The caretaker relative's income and that of the caretaker relative's spouse, if
any, is insufficient to meet needs; and
(3) The caretaker relative and the caretaker relative's spouse do not own real or
personal property that exceed department limits.

Source: SL 1975, ch 16, § 1; 2 SDR 88, effective July 1, 1976; 7 SDR 23, effective
September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 11 SDR 54, effective
October 1, 1984; 51 SDR 52, effective November 11, 2024.
General Authority: SDCL 28-6-1.
Law Implemented: SDCL 28-6-1.

Cross-References:
Limitations on real property, ch 67:12:04.
Limitations on personal property, ch 67:12:05.
Individuals who must be included in assistance unit, § 67:12:01:69.
12 67:12:01:55. Eligibility of second parent in Aid to Families With Dependent
Children aid to families with dependent children grant. The department must include
the second parent in the Aid to Families With Dependent Children aid to families with
dependent children (AFDC) grant if the AFDC household meets all of the following
qualifications:
(1) The second natural or adoptive parent or stepparent is living in the home;
(2) The incapacity of the natural or adoptive parent or stepparent of one or more of
the eligible children or the family is receiving unemployed parent program temporary
assistance to needy families benefits under chapter 67:12:18 article 67:10; and
(3) The second natural or adoptive parent or stepparent is not excluded from the
assistance unit under § 67:12:05:51.

Source: SL 1975, ch 16, § 1; 2 SDR 88, effective July 1, 1976; 3 SDR 52, effective
January 27, 1977; 5 SDR 48, effective December 19, 1978; 7 SDR 23, effective September
18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 12 SDR 4, effective July 21, 1985;
17 SDR 53, effective October 16, 1990; 51 SDR 52, effective November 11, 2024.
General Authority: SDCL 28-6-1.
Law Implemented: SDCL 28-6-1.

Cross-Reference: Needy child deprived by reason of, 45 C.F.R. § 233.90(c)(1)(i).
13 67:12:01:71. Denial of Aid to Families With Dependent Children aid to
families with dependent children benefits to strikers. Aid to Families With Dependent
Children families with dependent children (AFDC) benefits in the payment month are
affected if an eligible household member or a nonrecipient parent is participating in a strike
on the last day of the payment month. If the participating striker is the parent, the
department must deny benefits to the entire household.
If the participating striker is someone other than the parent, only the participating
striker's needs will be removed from the AFDC grant, unless the participating striker is the
only child in the AFDC grant. In this case, benefits must be denied to the entire household.
AFDC eligibility is not affected if the participating striker returns to work by the
last day of the payment month.
For purposes of this section, "parent" means that parent with whom the dependent
child is living.
For purposes of this section, "participating in a strike" means actual refusal, in
concert with others, to provide services to one's employer.

Source: 8 SDR 82, effective January 13, 1982; 10 SDR 144, effective July 1, 1984;
51 SDR 52, effective November 11, 2024.
General Authority: SDCL 28-6-1.
Law Implemented: SDCL 28-6-1.

Cross-References:
Denial of AFDC benefits to strikers, 45 C.F.R. § 233.106. 14 Recovery of overpayments, § 67:12:06:01.



15 67:12:02:01. Adequate notice to applicants. Adequate notice shall be a written
notice to applicants of public assistance and medical care at the time the decision is made
approving or rejecting each application. This The department must send adequate written
notice to an applicant of public assistance and medical care when an application is
approved or rejected. The written notice shall must include a:
(1) A statement of what action the agency intends to take, the;
(2) The reasons for the intended agency action, the;
(3) The specific regulations supporting such the action,; and
(4) An explanation of the individual's applicant's right to request:
(a) Request a conference and to be represented by others at the conference,
the right to and procedure for requesting;
(b) Request a fair hearing, the right to be and the procedure and time for
requesting a fair hearing; and
(c) Be represented by others at the hearing and the time in which a hearing
may be requested.
This The notice shall also must explain the individual's applicant's rights under the
Civil Rights Act of 1964, Pub. L. No. 88-352, 78 Stat. 236 (1975). Nothing in this section
shall be construed as indicating that the The department will may not pay for an applicant's
legal fees for representing applicants at the conferences or hearings any conference or
hearing held pursuant to this section.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1. 16 Law Implemented: SDCL 28-7-9, 28-7-10 28-6-1.
17 67:12:02:02. Requirements for timely and adequate notice. The department
shall mail timely and adequate notice to each recipient detailing the reason for a proposed
action which that may result in termination or reduction of payment or inability to
authorize payment. The notice shall inform recipients must:
(1) Inform the recipient of any changes in federal or state law requiring automatic
grant adjustments for classes of recipients and of a change in, or changes to the manner or
form of payment to a protective, vendor, or two-party payment. This notice shall state;
(2) State the specific rules supporting the action taken and explain;
(3) Explain the individual's recipient's right to request a conference and to be
represented by others at the conference,;
(4) Explain the right to request a fair hearing and the procedure and time
requirements for requesting a fair hearing,; and
(5) Explain the right to be represented by others at the hearing, and the time in
which a hearing may be requested.
The department shall mail this the timely notice ten days before the date of action,
which is the date when the recipient would normally receive an assistance check, or, in the
case of a Medicaid medicaid recipient, ten days before the intended change action would
be become effective.
In cases of probable fraud, notice of a proposed action which that may result in
termination or reduction of payment or inability to authorize payment is considered timely
if it the notice is mailed at least five days before the action would become effective. This
notice shall must also explain the circumstances under which assistance may be continued 18 if a hearing is requested. Timely and adequate notice is not required when the recipient of a
one-person case has died.

Source: SL 1975, ch 16, § 1; 4 SDR 10, effective August 28, 1977; 7 SDR 23,
effective September 18, 1980; 7 SDR 30, effective October 5, 1980; 7 SDR 66, 7 SDR 89,
effective July 1, 1981; 8 SDR 174, effective June 28, 1982; 21 SDR 172, effective April 3,
1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-9 28-6-1.

Cross-Reference: Continuance of aid pending hearing decision, § 67:12:02:09.

19 67:12:02:03. Adequate notice to recipients without timely notice. In the
following situations, the The department may dispense with timely notice and send an
adequate notice as provided in § 67:12:02:02 no later than the date of action, which is the
date when the recipient would normally receive an assistance payments check or, in the
case of a Medicaid medicaid recipient, the date the intended change action would be
effective, if:
(1) The department has factual information confirming the death of a the recipient
or of the AFDC aid to families with dependent children (AFDC) payee when there is no
relative available to serve as new payee;
(2) The department receives a clear, written statement signed by a the recipient that
the
(a) The recipient no longer wishes assistance; or that gives
(b) Provides information which that requires termination or reduction of
assistance, and indicates the recipient has indicated, in writing, that the recipient
understands that this is knowledge of the consequence of supplying such the information;
(3) The recipient has been admitted or committed to an institution, and further
payments to that individual the recipient do not qualify for federal financial participation
under the state plan;
(4) The recipient has been placed in skilled nursing care, intermediate care, or
long-term hospitalization;
(5) The claimant's whereabouts are unknown and mail from the department
directed to the claimant has been returned by the post office indicating no known
forwarding address. The department shall must mail the claimant's check to the claimant if 20 the whereabouts of the claimant become known during the payment period covered by a
returned check;
(6) A recipient has been accepted for assistance in another state and that fact has
been is established by the South Dakota Department of Social Services department;
(7) An AFDC child is removed from the home as a result of a judicial
determination or is voluntarily placed in an alternative care setting by the child's legal
guardian; or
(8) The department takes action because of information the recipient furnished in a
monthly report or because the recipient failed to submit a complete or timely monthly
report as required by § 67:12:06:34.

Source: SL 1975, ch 16, § 1; 1 SDR 53, effective January 22, 1975; 2 SDR 88,
effective July 1, 1976; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 174, effective
June 28, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-9, 28-7-18 28-6-1.

Cross-Reference: Alternative care, ch chapter 67:14:31.

21 67:12:02:03.01. Adequate notice to recipients using monthly report form. The
department shall send adequate notice as provided in § 67:12:02:02 when reducing or
terminating assistance to the a recipient who submits a completed monthly report form and
to the a recipient who fails to submit a timely or completed monthly report form. The
adequate notice must be received by the recipient no later than the date the recipient would
normally receive the assistance payment check or, in the case of Medicaid medicaid
eligibility, before the intended change would become effective.

Source: 7 SDR 30, effective October 5, 1980; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 8 SDR 125, effective April 4, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-9 28-6-1.

Cross-References:
How monthly reports are treated and what notices are required (AFDC), 45 C.F.R.
§ 233.37.
Completed monthly report form required, § 67:12:06:34.
How monthly reports are treated and what notices are required, 45 C.F.R. § 233.37.
Assistance to be terminated if required report form not received on time,
§ 67:12:06:37.

22 67:12:02:04. Recipients' right to request conference -- Time to make request.
A recipient whose payment cannot be authorized, whose payment is terminated or reduced,
or whose payment is changed in manner or form has the right to have a conference with the
staff of the department staff if the request is made during the 10-day ten-day advance
written notice period, or within 10 ten days from the date of action. The
An applicant who has received receives written notice of the a decision made in
regard to regarding the applicant's application may also request a conference within 10 ten
days after the written notice has been mailed.

Source: SL 1975, ch 16, § 1; 4 SDR 10, effective August 28, 1977; 7 SDR 23,
effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-9 28-6-1.

23 67:12:02:05. Conference held as soon as possible. Arrangement shall be made
for the The department shall arrange for a conference as soon as possible and at least
within five working days after the receipt of the a conference request made pursuant to §
67:12:02:04.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-9 28-6-1.

24 67:12:02:06. Final decision of conference. The department shall advise the
applicant or recipient must be advised of the final decision at the end of the conference
held pursuant to § 67:12:02:04. If a final decision cannot be made, the conference may be
extended until a decision is rendered and, after which written notice of final decision must
be delivered to the applicant or recipient at the conclusion. The applicant or recipient has
30 thirty days from the final decision of the conference to request a hearing.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-9 28-6-1.

25 67:12:02:07. Definition of conference. A conference is an informal meeting with
between the applicant or recipient and the caseworker or the caseworker's supervisor who
was involved in the decision determining the proposed action. At the conference, the
individual will be given an explanation of the reasons for the proposed action and will be
able to must be explained to the applicant or recipient, and the applicant or recipient may
present information to show that demonstrates the proposed action is incorrect. The
individual applicant or recipient may speak for himself or be represented by legal counsel
or by, a friend, or other spokesman another person. The department is not responsible for
the payment of the fees for such the applicant or recipient's representation.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-9 28-6-1.

26 67:12:02:08. Conference not required before fair hearing. The An applicant or
recipient may request a fair hearing without a conference with agency staff.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-10 28-6-1.

27 67:12:02:09. Continuance of aid pending hearing decision. If the a recipient
requests a fair hearing within ten days after the department mails the notice of adverse
action, the department shall must continue to provide AFDC or aid to dependent foster
children aid to families with dependent children assistance without reducing, terminating,
suspending, or changing the manner or form of payment until the fair hearing decision is
made, unless the recipient requests that continued assistance not be paid during that time.
In no case may assistance Assistance may not be continued if any of the following
circumstances exist:
(1) The recipient fails to submit a required, completed monthly report if one is
required;
(2) The hearing examiner determines at the hearing that the sole issue is one of
state or federal law or policy and not of an incorrect grant computation; or
(3) Pending the hearing decision, the recipient's circumstances change in a way
that affects the recipient's eligibility for or amount of assistance.
Aid continued under this section is subject to recovery by the department if, as a
result of the fair hearing, the department's action is upheld.

Source: SL 1975, ch 16, § 1; transferred from § 67:12:03:06, 2 SDR 71, effective
April 29, 1976; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 174, effective June 28,
1982; transferred from § 67:17:02:06, 21 SDR 172, effective April 3, 1995; 22 SDR 188,
effective July 8, 1996.
General Authority: SDCL 28-1-24.1 28-6-1.
Law Implemented: SDCL 28-1-24.1 28-6-1. 28
Cross-References:
Aid paid pending hearing decision, 45 C.F.R. § 205.10(a)(7).
Requirements for timely and adequate notice, § 67:12:02:02.
Department to investigate report -- Notice of action -- Payments made pending fair
hearing, § 67:12:16:23.
Aid paid pending hearing decision, 45 C.F.R. § 205.10(a)(7).

29 67:12:02:10. Written notice required if aid discontinued pending hearing
decision. The department shall must promptly inform the claimant recipient in writing if
aid to families with dependent children or aid to dependent foster children assistance will
be is discontinued pending the hearing decision.

Source: SL 1975, ch 16, § 1; transferred from § 67:12:03:07, 2 SDR 71, effective
April 29, 1976; 7 SDR 66, 7 SDR 89, effective July 1, 1981; transferred from
§ 67:17:02:07, 21 SDR 172, effective April 3, 1995.
General Authority: SDCL 28-1-24.1 28-6-1.
Law Implemented: SDCL 28-1-24.1 28-6-1.

30 67:12:02:11. Corrective payments. If the hearing decision is favorable to the aid
to families with dependent children or aid to dependent foster children claimant recipient,
or if the department decides in favor of the claimant recipient before the hearing, the
department shall must promptly make corrective payments retroactive to the date the
incorrect action was taken. Retroactive corrective payments may only be made only for the
12 twelve months preceding the month in which the underpayment is discovered.

Source: SL 1975, ch 16, § 1; transferred from § 67:12:03:29, 2 SDR 71, effective
April 29, 1976; 7 SDR 66, 7 SDR 89, effective July 1, 1981; transferred from
§ 67:17:02:29, 21 SDR 172, effective April 3, 1995.
General Authority: SDCL 28-1-24.1 28-6-1.
Law Implemented: SDCL 28-1-24.1 28-6-1.

31 67:12:02:12. Modification of aid. Nothing contained in the hearing decision
precludes the department from modifying the aid to families with dependent children or aid
to dependent foster children grant or other benefits of the appellant recipient after the
decision if there are changed conditions is a change in circumstances related to eligibility.

Source: SL 1975, ch 16, § 1; transferred from § 67:12:03:30, 2 SDR 71, effective
April 29, 1976; 7 SDR 66, 7 SDR 89, effective July 1, 1981; transferred from
§ 67:17:02:30, 21 SDR 172, effective April 3, 1995.
General Authority: SDCL 28-1-24.1 28-6-1.
Law Implemented: SDCL 28-1-24.1 28-6-1.

32 67:12:04:01. Definitions. Terms used in this chapter mean:
(1) "Equity value," the current fair market value less minus any encumbrances of
record as of the date of valuation;
(2) "Fair market value," the price an item will is likely to sell for on the open
market in the geographic area involved;
(3) "Homestead property," that property as defined in SDCL 43-31-2 and 43-31-3;
(4) "Other real property," real property other than that which has the characteristics
of homestead property or real property held in trust;
(5) "Property transferred or assigned," that real or personal property which that
was at one time owned by an applicant or recipient of public assistance, or by the spouse of
the applicant or recipient, if they the spouse and applicant or recipient were living together,
but was transferred or assigned to another;
(6) "Real property," that property as defined in SDCL 43-1-3; and
(7) "Real property held in trust," that real property to which the federal
government has the legal title but which is being held for the benefit of Indians and or
other citizens.

Source: SL 1975, ch 16, § 1; 7 SDR 23, effective September 18, 1980; 7 SDR 66,
7 SDR 89, effective July 1, 1981; 10 SDR 144, effective July 1, 1984.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.
33 67:12:04:01.01. Classification of real property. For purposes of public assistance
this article, real property shall be is classified as homestead property, real property held in
trust, and or other real property.

Source: 7 SDR 23, effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective
July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

34 67:12:04:03. Home exempt from consideration. The applicant's or recipient's
home which real property of an applicant or recipient that is the usual residence of the
assistance unit may not be considered when determining eligibility for AFDC aid to
families with dependent children. If the applicant or recipient is temporarily absent from
the home usual residence, the home usual residence may be exempted under the following
conditions if:
(1) The applicant or recipient intends to return to the home residence on a specific
date;
(2) The applicant or recipient agrees to immediately inform the department when
and if the intentions intention of the applicant or recipient to return to the home change
residence changes; and
(3) The absence will not exceed one year, unless the department authorizes a
longer period of time is specifically authorized by the department.
If the applicant or recipient has two or more homes which are used at different
times than one residence, the applicant or recipient may only claim only one home
residence as the residence exempt under this rule.
The residence may not include different lots and tracts unless they the lots or tracts
are contiguous to, or consistently or regularly used as part of, the residence.

Source: SL 1975, ch 16, § 1; 2 SDR 24, effective October 1, 1975; 7 SDR 66, 7
SDR 89, effective July 1, 1981; 8 SDR 58, effective November 29, 1981; 10 SDR 144,
effective July 1, 1984; 12 SDR 112, effective January 16, 1986.
General Authority: SDCL 28-7-2 28-6-1. 35 Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Definitions, § 67:12:04:01.

36 67:12:04:05. Real property held in trust affecting eligibility. Ownership of real
property held in trust by the United States government shall does not affect AFDC aid to
families with dependent children eligibility.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 10 SDR
144, effective July 1, 1984.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Periodic and lease income considered, § 67:12:05:49.


37 67:12:04:07. Proceeds from sale of real property held in trust. Proceeds
received from the sale of real property held in trust shall be are considered as a resource
and are subject to the resource limit contained in § 67:12:05:05, unless they were the
proceeds are paid under PL 92-254, PL 93-134, PL 94-114, or PL 94-540 the Act of March
18, 1972, Pub. L. No. 92-254, 86 Stat. 671 (1972); the Indian Tribal Judgment Funds Use
or Distribution Act, Pub. L. No. 93-134, 87 Stat. 466 (1973); the Act of October 17, 1975,
Pub. L. No. 94-114, 89 Stat. 577 (1975); or the Act of October 18, 1976, Pub. L. No. 94-
540, 90 Stat. 2503 (1976).

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR
82, effective January 13, 1982; 15 SDR 67, effective November 6, 1988.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.


38 67:12:04:09. Other real property subject to resource limit. The equity value of
other real property is subject to the maximum resource limit contained in § 67:12:05:05.

Source: SL 1975, ch 16, § 1; 2 SDR 24, effective October 1, 1975; 7 SDR 66, 7
SDR 89, effective July 1, 1981; 10 SDR 144, effective July 1, 1984.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

39 67:12:04:10. Other real property to be placed on market. The limitation on
ownership in § 67:12:04:09 may be waived for six months if the other real property is
placed on the market. Applications may be approved and assistance paid regardless of the
ownership of other real property if the owner or owners sign an agreement to sell the
property and to repay reimburse the department for the amount of assistance received that
would not have been received had the property been sold at the beginning of the period.
Repayment may not exceed the amount of the net proceeds of the sale.
After signing the agreement to sell the property, the owner must take immediate
action to sell the property. The action to sell must consist of listing immediately list the
other real property with a reputable and active real estate broker who will use best efforts
to find a buyer. Listing the property in the local newspaper is not sufficient. The property
must be sold for a reasonable price as determined according to § 67:12:04:10.01. If the
property is not sold within the six-month limit, or the family becomes ineligible for AFDC
aid to families with dependent children, the entire amount of assistance paid during this
period the six month period is considered an overpayment.

Source: SL 1975, ch 16, § 1; 2 SDR 24, effective October 1, 1975; 7 SDR 66, 7
SDR 89, effective July 1, 1981; repealed, 10 SDR 144, effective July 1, 1984; readopted,
12 SDR 112, effective January 16, 1986.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.
40 Cross-Reference: Exclusion of other real property, 45 C.F.R.
§ 233.20(a)(3)(i)(B)(5).
41 67:12:04:10.01. Determining value of other real property -- Responsibility of
applicant or recipient. An AFDC aid to families with dependent children applicant or
recipient must shall provide to the department evidence to the department of the value of
other real property which that the applicant or recipient owns or in which the applicant or
recipient has an interest. Evidence of value consists of the following a list of current
encumbrances of record against the property and the fair market value as determined:
(1) The fair market value as determined by By a real estate appraiser;
(2) The fair market value as determined by By a BIA Bureau of Indian Affairs
realty office;
(3) The fair market value as determined from From an average of three estimates
from individuals, other than the applicant or recipient, familiar with and able to place a
value on the property;
(4) The fair market value as determined by By a bank or savings and loan official;
or
(5) The fair market value as determined by By the Farmers Home Administration;
and
(6) A list of current encumbrances of record against the property.
Evidence The department may verify evidence submitted under this section may be
verified by the department.

Source: 10 SDR 144, effective July 1, 1984.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1. 42
Cross-References:
Applicant to provide information promptly, § 67:12:01:06.01.
Cooperation of applicant or recipient, § 67:12:01:70; Applicant to provide
information promptly, § 67:12:01:06.01.

43 67:12:04:10.02. Department reserves right to obtain independent valuation.
The department shall accept the evidence of the fair market value submitted by the
applicant or recipient unless the fair market value is obviously too high or too low. If, in
the department's opinion of the department, the fair market value submitted by the
applicant or recipient is obviously too unreasonably high or too low, the. The department
may then obtain an independent fair market valuation of the property. The department's
fair market valuation shall that must be used when determining equity value.
If discrepancies exist between the list of encumbrances obtained by the department
and the list submitted by the applicant or recipient, the department's list of encumbrances
shall must be used when determining equity value.

Source: 10 SDR 144, effective July 1, 1984.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References Cross-Reference: Determining value of other real property -
- Responsibility of applicant or recipient, § 67:12:04:10.01.

44 67:12:04:13. Property transferred, sold, or assigned by applicant. The
department shall determine an An applicant to be is ineligible for assistance if it can clearly
be shown that the department determines the applicant's intent in transferring, selling, or
assigning real or personal property, with or without reservations, was to render the
applicant eligible for assistance. In determining To determine the applicant's intent in
making the transfer, sale, or assignment of real or personal property, the department shall
consider the following factors:
(1) The time period between the applicant's transfer, sale, or assignment of real or
personal property and the time of the application for assistance; and
(2) Any information which would indicate Information indicating that the
applicant made the transfer, sale, or assignment with the intent of rendering the applicant
eligible for assistance.
Any legal reservation retained by the applicant in the transfer, sale, or assignment
of real or personal property, such as life estates, interest payments, rental payments, or
installment payments, is subject to the limitations on real property limitations of contained
in chapter 67:12:04 and income the limitations of on personal property contained in
chapter 67:12:05.

Source: SL 1975, ch 16, § 1; 3 SDR 52, effective January 27, 1977; 4 SDR 10,
effective August 28, 1977; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.
45 67:12:04:17. Full and adequate consideration in money or money's worth for
property transferred. Any item or service which is received for the property shall be
accepted as being transferred or assigned is within the meaning of the phrase "full and
adequate consideration in money or money's worth" as long as if the value of the item or
service equals the reasonable market value of the property transferred or assigned. When it
appears If property has been is transferred or assigned without full and adequate
consideration, the fair market value, determined according to § 67:12:04:10.01, less
encumbrances of record, shall must be used in determining if the recipient received the full
and adequate consideration in money or money's worth.

Source: SL 1975, ch 16, § 1; 3 SDR 52, effective January 27, 1977; 7 SDR 66, 7
SDR 89, effective July 1, 1981; 12 SDR 112, effective January 16, 1986.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

46 67:12:04:20. Periods of ineligibility. The department shall close the case or deny
assistance to a recipient or applicant who fails or refuses to disclose the consideration or
absence of consideration in the sale, transfer, or assignment of property transferred or
assigned, or the property sold, or who fails to disclose the receipt of a resource. The
applicant or recipient remains ineligible for assistance until the treatment of lump sum
income requirements of § 67:12:05:59 have been met. Section 67:12:05:59 applies when
determining periods of ineligibility in the following situations for:
(1) The A recipient who had previously failed or refused to provide a full
disclosure to the department;
(2) An applicant who has transferred, sold, or assigned property to become eligible
for assistance; or
(3) A recipient who has received money or should have received money from the
sale, transfer, or assignment of property.

Source: SL 1975, ch 16, § 1; 3 SDR 52, effective January 27, 1977; 4 SDR 10,
effective August 28, 1977; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82,
effective January 13, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Full and adequate consideration in money or money's worth of property transferred,
§ 67:12:04:17;. 47 Determining periods of ineligibility, § 67:12:04:21.
48 67:12:04:21. Determining periods of ineligibility. The period of ineligibility
shall be for an assistance unit is determined according to § 67:12:05:59 by including as
income and includes the fair market value received or the appraised fair market value of
the property transferred, or assigned, or the property sold as lump sum income.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR
82, effective January 13, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Treatment of lump sum income, § 67:12:05:59.


49 67:12:04:25. Date to begin charge-off computation to determine length of
ineligibility. The date to begin the charge-off computation to determine length of
ineligibility is as follows:
(1) For an applicant who transferred, sold, or assigned property for the purpose of
becoming eligible for AFDC aid to families with dependent children, the date to begin
charge-off computations to determine length of ineligibility is the month when the
instrument evidencing a transfer or assignment was delivered. If the date of delivery cannot
be determined, the department shall must consider the month when the instrument was
recorded or filed to be the month of the transfer or assignment; or.
(2) For a recipient who transferred, sold, or assigned property, the date to begin the
charge-off computation to determine length of ineligibility shall be is computed forward
from the date that ineligibility was determined and is not retroactive to the date of transfer
or receipt of the resources.

Source: SL 1975, ch 16, § 1; 3 SDR 52, effective January 27, 1977; 7 SDR 66, 7
SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.
50 CHAPTER 67:12:05
LIMITATIONS ON PERSONAL PROPERTY

Section
67:12:05:01 Definitions.
67:12:05:02 Sale, transfer, or assignment of personal property.
67:12:05:03 and 67:12:05:04 Repealed.
67:12:05:05 Maximum resource limit.
67:12:05:05.01 Repealed.
67:12:05:06 Tangible personal property considered a resource.
67:12:05:07 Bank account considered liquid asset.
67:12:05:08 Savings bond considered liquid asset.
67:12:05:09 Life insurance considered a resource.
67:12:05:09.01 Prepaid burial contracts.
67:12:05:09.02 Burial spaces excluded from resources.
67:12:05:10 Personal property held in trust considered a resource.
67:12:05:11 Repealed.
67:12:05:12 Earned income from business.
67:12:05:13 Repealed.
67:12:05:14 Earned income exemption for AFDC aid to families
with dependent children.
67:12:05:15 Reserves accumulated from earnings.
67:12:05:16 Treatment of tax refunds. 51 67:12:05:16.01 Treatment of earned income tax credit.
67:12:05:17 Repealed.
67:12:05:18 Standard earned income deduction.
67:12:05:19 Repealed.
67:12:05:20 Farming or other self-employment business expenses as
deductions from income.
67:12:05:21 Dependent care disregard from earnings -- Employed
caretaker relatives.
67:12:05:22 Alimony and child support paid by member of
assistance unit considered exempt income.
67:12:05:22.01 Repealed.
67:12:05:23 Supplementary medical insurance benefit premiums as
deductible from available income.
67:12:05:24 Foster care payment not considered as available income.
67:12:05:25 Consideration of JOBS participant's income, Repealed.
67:12:05:26 Repealed.
67:12:05:27 Exemption of vocational rehabilitation training
allowances.
67:12:05:28 Educational grants, stipends, or loans insured by
commissioner of education the Secretary of Education
not considered available income.
67:12:05:29 Scholarships, grants, awards, and loans for educational
purposes. 52 67:12:05:29.01 Treatment of moneys received under a college work-
study program.
67:12:05:29.02 Treatment of loans.
67:12:05:30 Repealed.
67:12:05:31 Food stamp coupon allotment Supplemental nutrition
assistance benefits not considered available income.
67:12:05:32 Value of federal donated commodities not considered
available income.
67:12:05:33 Payment received under the Relocation Act not
considered available income.
67:12:05:34 Use of earned income exemption in determining
eligibility and computing the assistance payment.
67:12:05:35 Repealed.
67:12:05:36 Determining continuing eligibility.
67:12:05:37 Repealed.
67:12:05:38 Application of child's earned income.
67:12:05:39 to 67:12:05:43 Repealed.
67:12:05:44 Real or personal property income or profits of applicants
or recipients of AFDC aid to families with dependent
children.
67:12:05:45 Real or personal property income or profits of parents of
dependent children.
67:12:05:46 Repealed. 53 67:12:05:47 Interest from savings.
67:12:05:48 Tips considered.
67:12:05:49 Periodic and lease income considered.
67:12:05:50 Repealed.
67:12:05:51 Individuals excluded from assistance unit --
Nondependent household members.
67:12:05:52 Treatment of income from nonrecipient.
67:12:05:52.01 Consideration of income of parent of minor parent.
67:12:05:53 Repealed.
67:12:05:54 Proceeds from life insurance.
67:12:05:55 Repealed.
67:12:05:56 Applicants or recipients to take advantage of all
resources.
67:12:05:57 Benefits to children and adults derived from government
sources.
67:12:05:58 Repealed.
67:12:05:59 Treatment of lump sum income.
67:12:05:60 County welfare funds or BIA Bureau of Indian Affairs
general assistance grants.
67:12:05:61 Benefits derived from private sources.
67:12:05:61.01 Income received as gift. 54 67:12:05:62 Income received by volunteers in the retired senior
volunteer program, foster grandparent program, and
older Americans community service program.
67:12:05:63 Repealed.
67:12:05:64 Judgment funds paid to Blackfeet Tribe and Gros Ventre
Tribe of Montana.
67:12:05:65 Indian judgment funds pursuant to Pub. L. No. 93-134.
67:12:05:66 Exclusion of payments received pursuant to Alaska
Native Claims Settlement Act.
67:12:05:67 to 67:12:05:70 Repealed.
67:12:05:71 Exclusion of payments received as volunteer under Title
I (VISTA).
67:12:05:72 Exclusion of value of supplemental food assistance.
67:12:05:73 Payments received as volunteer under Titles II and III.
67:12:05:74 Exclusion of dependent child's income received from
JTPA Job Training Partnership Act summer youth
employment program.
67:12:05:75 Exclusion of agent orange Agent Orange settlement
payments.
67:12:05:76 Exclusion of vehicle owned by dependent child.
67:12:05:77 Exclusion of savings account owned by dependent child.
67:12:05:78 Interest from child's savings account excluded.
67:12:05:79 Exclusion of dependent child's earnings. 55 67:12:05:01. Definitions. Terms used in this chapter mean:
(1) "Earned income," for an employed applicant or recipient income in cash or in
kind, before income taxes, social security taxes, insurance premiums, or savings bonds
deductions such as income taxes, social security taxes, insurance premiums, or savings
bonds, earned by an applicant or recipient through the receipt of wages, salary,
commissions, or fees; for. For a self-employed individual, that it is the income remaining
after deducting the business expenses allowed in § 67:12:05:12;
(2) "Encumbrance," a claim, lien, charge, legal debt, chattel mortgage, or liability
of record attached to and binding real property, personal property, or real and personal
property;
(3) "Equity value," the current fair market value minus encumbrances of record as
of the date of evaluation;
(4) "Fair market value," the price an item of a particular make, model, size,
material, or condition will is likely to sell for on the open market in the geographic area
involved;
(5) "Liquid assets," cash on hand, plus tangible or intangible personal property as
defined in SDCL 43-1-3 which can that may be readily converted into cash within 30 thirty
days, such as bank accounts, current value of securities, burial funds, loan value of
insurance policies, and collectible debts; and
(6) "Personal property," personal property as defined in SDCL 43-1-2 and 43-1-3.
For purposes of public assistance, personal property is divided into liquid assets, tangible
personal property, deductible income, and other benefits and earned income; and 56 (7) "Tangible personal property," as defined in SDCL 43-1-3, including such items
as livestock, farm implements, and automobiles.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR
82, effective January 13, 1982; 8 SDR 95, effective February 18, 1982; 9 SDR 46,
effective October 1, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

57 67:12:05:02. Sale, transfer, or assignment of personal property. Regulations
pertinent to The rules governing the sale, transfer, or assignment of real property also apply
to personal property. These regulations cover the sale, transfer, or assignment of personal
property and include any resulting ineligibility periods.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References Cross-Reference: Limitations on real property,
§§ 67:12:04:11 67:12:04:13 to 67:12:04:27 67:12:04:25, inclusive.


58 67:12:05:05. Maximum resource limit. For an AFDC aid to families with
dependent children assistance unit, the maximum resource limit is $1,000 one thousand
dollars. Real and personal property with an equity value of no more than $1,000 one
thousand dollars may be reserved for each assistance unit.

Source: SL 1975, ch 16, § 1; 2 SDR 24, effective October 1, 1975; 3 SDR 52,
effective January 27, 1977; 4 SDR 10, effective August 28, 1977; 7 SDR 23, effective
September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 95, effective
February 18, 1982; 12 SDR 112, effective January 16, 1986.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Need and amount of assistance, 45 C.F.R. § 233.20.
Cooperation of caretaker relative as a condition of eligibility, § 67:12:01:66.
Need and amount of assistance, 45 C.F.R. § 233.20(a)(3)(i)(B).
Other real property to be placed on market, § 67:12:04:10.

59 67:12:05:06. Tangible personal property considered a resource. Tangible
personal property of an applicant or recipient is considered a resource subject to §
67:12:05:05 and valued according to its equity value with the following exceptions, except:
(1) Household goods essential for day-to-day living, such as clothing, furniture,
appliances, utensils, and similarly essential personal effects, are excluded from the
resource limit;
(2) Items of unusual value such as expensive china, silver, or glassware; art works;
oriental, Persian, and similarly expensive carpets; antiques; hobby collections; jewelry,
excluding a personal wedding and engagement ring, made with precious stones or metals;
and furs are included when determining the resource limit if the item exceeds that have an
equity value of $500 less than five hundred dollars. Final determination of an item's value
must be made by an individual, other than the applicant, who is familiar with and can place
a value on the property;
(3) A personal wedding and engagement ring, made with precious stones or metals;
and
(3)(4) The equity in one vehicle of no more than $1,500 is excluded from the
resource limit as long as that one thousand five hundred dollars, if the vehicle is the
assistance unit's primary mode of transportation.

Source: SL 1975, ch 16, § ; 2 SDR 24, effective October 1, 1975; 7 SDR 23,
effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 95,
effective February 18, 1982; 14 SDR 140, effective May 1, 1988; 20 SDR 196, effective
May 23, 1994. 60 General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Need and amount of assistance, 45 C.F.R. § 233.20.
Maximum resource limit, § 67:12:05:05.
Need and amount of assistance, 45 C.F.R. § 233.20(a)(3)(i)(B)(2).
Exclusion of vehicle owned by dependent child, § 67:12:05:76.

61 67:12:05:07. Bank account considered liquid asset. Money on deposit in a bank
is included as a liquid asset resource when applying the resource limit in § 67:12:05:05
whether in a checking account, a savings account, or a certificate of deposit. Unless the
conditions of § 67:12:05:77 apply or the applicant or recipient produces clear and
convincing evidence to the contrary, money held in a joint account is considered available
to a liquid resource of the applicant or recipient, when applying the resource limit in §
67:12:05:05, if the applicant or recipient has the power to draw on is permitted to make
withdrawals from the account.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 12 SDR
112, effective January 16, 1986; 20 SDR 196, effective May 23, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

62 67:12:05:08. Savings bond considered liquid asset. A savings bond is included
as a liquid asset resource when applying the resource limit in § 67:12:05:05 to the extent of
its current value. Unless the applicant or recipient produces clear and convincing evidence
to the contrary, a savings bond held in co-ownership co-owned with another shall be
individual is considered available to a liquid resource of the applicant or recipient, when
applying the resource limit in § 67:12:05:05, if the applicant or recipient is the actual
purchaser or has the power to cash the bond.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 12 SDR
112, effective January 16, 1986.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

63 67:12:05:09. Life insurance considered a resource. The cash value of a life
insurance policies shall be policy is included as a liquid resource when determining
applying the $1,000 resource limitation limit in § 67:12:05:05.

Source: SL 1975, ch 16, § 1; 2 SDR 24, effective October 1, 1975; 2 SDR 88,
effective July 1, 1976; 7 SDR 23, effective September 18, 1980; 7 SDR 66, 7 SDR 89,
effective July 1, 1981; 8 SDR 95, effective February 18, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Need and amount of assistance, 45 C.F.R. § 233.20.
Maximum resource limit, § 67:12:05:05; Need and amount of assistance, 45 C.F.R.
§ 233.20(a)(3)(ii)(E).

64 67:12:05:09.01. Prepaid burial contracts. To a maximum of $1,500, the The
equity value, up to one thousand five hundred dollars, of a prepaid burial contract
designated for use by a member of the assistance unit shall be is excluded as a resource
when applying the resource limit in §67:12:05:05. The burial contract must meet the
criteria of SDCL 55-11-1, 55-11-2, and 55-11-3.

Source: 12 SDR 112, effective January 16, 1986.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Exclusion of bona fide funeral agreements, 45 C.F.R.
§ 233.20(a)(3)(i)(B)(4).

65 67:12:05:09.02. Burial spaces excluded from resources. Burial spaces owned by
the applicant or recipient may be are excluded from resources as a resource when applying
the resource limit in §67:12:05:05 if they are intended for use by a member of the
assistance unit. The number of burial spaces excluded may not exceed the number of
persons in the assistance unit. Burial spaces include gravesites, crypts, mausoleums, urns
or other repositories, caskets, and concrete vaults For the purposes of this section, "burial
space" is a gravesite, crypt, mausoleum, urn, or other repository, casket, or concrete vault.
A grave marker is part of the burial space.

Source: 12 SDR 112, effective January 16, 1986.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Exclusion of burial plot Need and amount of assistance, 45
C.F.R. § 233.20(a)(3)(i)(B)(4)(3).

66 67:12:05:10. Personal property held in trust considered a resource. The
department shall must consider personal property held in trust as a resource when applying
the resource limit in §67:12:05:05 if the trust instrument is:
(1) Is revocable, allows;
(2) Allows the administrator to sell property subject to the trust and use the
proceeds to meet the needs of any member of the assistance unit,; or allows
(3) Allows the administrator to invade the principal and use the principal to meet
the needs of any member of the assistance unit.
The department shall deem consider a personal property trust created for the
purpose of rendering to render an applicant, recipient, or dependent child eligible to
receive public assistance to be a transfer resulting that results in ineligibility. The
department shall account for the income received from a trust of personal property trust in
the same manner as any other income.

Source: SL 1975, ch 16, § 1; 4 SDR 10, effective August 28, 1977; 7 SDR 66, 7
SDR 89, effective July 1, 1981; 21 SDR 172, effective April 3, 1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.



67 67:12:05:12. Earned income from business. Net earned income or profit from a
business is computed by subtracting business expense expenses from gross business
income. Business expenses include the cost of merchandise and building or equipment
rental, but do not include depreciation or the purchase of equipment or property. Personal
expenses, such as income Income tax, lunches, and transportation to and from work, and
social security tax, are not considered business expenses but are covered under the standard
set for earned income deductions. The earned income exemption for eligible applicants or
recipients as specified in § 67:12:05:14 shall be is applied to the net income after the
standard earned income deduction as specified in § 67:12:05:18 and the dependent care
disregard specified in § 67:12:05:21.

Source: SL 1975, ch 16, § 1; 1 SDR 53, effective January 22, 1975; 7 SDR 66, 7
SDR 89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982; 9 SDR 24, effective
September 2, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.


68 67:12:05:14. Earned income exemption for AFDC aid to families with
dependent children. After the standard earned income deduction has been applied,
employed recipients whose financial needs are considered in the AFDC aid to families
with dependent children (AFDC) grant shall each receive an earned income exemption.
The amount of the earned income exemption is $30 a thirty dollars per month plus one-
third of the remaining income until the exemption has been applied for 4 four consecutive
months. For the next 8 eight consecutive months, the exemption is $30 thirty dollars. The 8
eight months are continuous regardless of whether the $30 thirty-dollar exemption was or
was not applied in these those months.
A person who becomes ineligible for AFDC after receiving the earned income
exemption for 4 four consecutive months, but before the 8 eight additional months of the
$30 thirty-dollar exemption have run out, is eligible for the remaining months of the $30
thirty-dollar exemption if the person returns to AFDC during that time.
The earned income exemption may not be applied again until the individual has
been a nonrecipient for 12 twelve consecutive months.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR
82, effective January 13, 1982; 12 SDR 4, effective July 21, 1985; 16 SDR 58, effective
October 1, 1989.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References: 69 Disregard of income and resources applicable only to AFDC, 45 C.F.R.
§ 233.20(a)(11).
Earned income from business, § 67:12:05:12.
Dependent care disregard from earnings -- Employed caretaker relatives,
§ 67:12:05:21.
Use of earned income exemption in determining eligibility and computing the
assistance payment, § 67:12:05:34.
Disregard of income, 45 C.F.R. § 233.20(a)(11)(i)(D) and 45 C.F.R.
§ 233.20(a)(11)(ii)(B).

70 67:12:05:15. Reserves accumulated from earnings. Reserves accumulated from
earnings shall be considered are treated in the same manner as reserves accumulated from
any other source.

Source: SL 1975, ch 16, § 1; 4 SDR 10, effective August 28, 1977; 7 SDR 66, 7
SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Liquid resources excluded from liquid assets and tangible
personal property limitations for AFDC recipients, § 67:12:05:05.01.

71 67:12:05:16. Treatment of tax refunds. Tax refunds received by an applicant or
recipient shall be excluded from are considered an allowable deduction for the purposes of
determining available earned income.

Source: SL 1975, ch 16, § 1; 7 SDR 23, effective September 18, 1980; 7 SDR 66,
7 SDR 89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982; 16 SDR 58,
effective October 1, 1989.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

72 67:12:05:16.01. Treatment of earned income tax credit. Earned An earned
income tax credit received by an applicant or recipient is excluded from considered an
allowable deduction for the purposes of determining available earned income.

Source: 8 SDR 125, effective April 4, 1982; 12 SDR 4, effective July 21, 1985; 16
SDR 58, effective October 1, 1989; 16 SDR 161, effective March 20, 1990; 17 SDR 153,
effective April 16, 1991.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-Reference: Treatment of earned income tax credit, 45 C.F.R.
§ 233.20(a)(6)(ix)(11)(viii).


73 67:12:05:18. Standard earned income deduction. The standard earned income
deduction is $90 ninety dollars. This amount must be deducted from the monthly gross
earned income of each employed member of the assistance unit whose earned income is
considered when determining the ADC aid to families with dependent children grant. If the
individual is self-employed, the deduction must be made after the allowable deductions
specified in §§ 67:12:05:12 and 67:12:05:20. The standard earned income deduction may
not exceed the earnings.
The standard earned income deduction covers items such as income tax, social
security, lunches, transportation to and from work, and mandatory insurance premiums or
retirement contributions.

Source: SL 1975, ch 16, § 1; 2 SDR 88, effective July 1, 1976; 4 SDR 10, effective
August 28, 1977; 4 SDR 60, effective March 26, 1978; 7 SDR 23, effective September 18,
1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982;
9 SDR 46, effective October 1, 1982; 10 SDR 144, effective July 1, 1984; 12 SDR 4,
effective July 21, 1985; 14 SDR 40, effective September 24, 1987; 16 SDR 58, effective
October 1, 1989.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Exemption of vocational rehabilitation training allowances, § 67:12:05:27.
Earned income from business, § 67:12:05:12. 74 Farming or other self-employment business expenses as deductions from income,
§ 67:12:05:20.
Consideration of JOBS participant's income, § 67:12:05:25.
Exemption of vocational rehabilitation training allowances, § 67:12:05:27.
Consideration of income of parent or of minor parent, § 67:12:05:52.01.


75 67:12:05:20. Farming or other self-employment business expenses as
deductions from income. Farming or other self-employment business expenses directly
related to producing the goods or services of the business, and without which the goods or
services could not be produced, are considered allowable deductions for the purposes of
determining available earned income.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 9 SDR
42, effective October 10, 1982; 21 SDR 172, effective April 3, 1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Definition of earned income for the self-employed individual Need and amount of
assistance, 45 C.F.R. § 233.20(a)(6)(v)(B);.
Earned income from business, § 67:12:05:12.

76 67:12:05:21. Dependent care disregard from earnings -- Employed caretaker
relatives. Employed An employed recipient caretaker relatives relative whose earnings are
considered when determining eligibility for AFDC aid to families with dependent children
(AFDC) and the amount of the assistance grant are allowed a disregard for deduction from
the earnings in the amount of the cost of dependent care. The amount disregarded shall be
computed according to § 67:12:15:05
For a recipient caretaker relative who is employed full time throughout the budget
month, the deductible dependent care cost is the amount actually paid by the caretaker, not
to exceed one hundred seventy-five dollars per month for each dependent aged two or
older, or two hundred dollars per month for each dependent under the age of two.
For a recipient caretaker relative who is employed part time throughout the budget
month, the deductible dependent care cost is the amount actually paid by the caretaker, not
to exceed one hundred seventy-four dollars per month for each dependent aged two or
older, or one hundred ninety-nine dollars per month for each dependent under the age of
two.
The disregard deduction must be made after the earned income exemption in
§ 67:12:05:14 is applied.
Charges for dependent care must include all costs associated with the care.
Dependent care services are limited to those care services provided for the care of a
dependent child or an incapacitated adult who is living in the home and who is receiving
AFDC.
Dependent care services do not include those care services provided by the
dependent child's parent or caretaker relative. 77
Source: SL 1975, ch 16, § 1; 2 SDR 88, effective July 1, 1976; 3 SDR 40, effective
November 30, 1976; 7 SDR 23, effective September 18, 1980; 7 SDR 66, 7 SDR 89,
effective July 1, 1981; 9 SDR 24, effective September 2, 1982; 14 SDR 40, effective
September 24, 1987; 16 SDR 58, effective October 1, 1989.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Disregard of cost for care of dependent child or incapacitated adult, 45 C.F.R.
§ 233.20(a)(11)(i)(D).
Use of earned income exemption in determining eligibility and computing the
assistance payment, § 67:12:05:34; Dependent care, ch 67:12:15.


78 67:12:05:22. Alimony and child support paid by member of assistance unit
considered exempt income. The actual amount of alimony or child support, if any,
payable on a recurring monthly basis by a member of the assistance unit under court or
administrative order to maintain, in whole or in part, children or a former spouse in another
household, is exempt considered an allowable deduction for the purposes of determining
available income.

Source: SL 1975, ch 16, § 1; 7 SDR 23, effective September 18, 1980; 7 SDR 66,
7 SDR 89, effective July 1, 1981; 13 SDR 193, effective June 22, 1987.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Collection of child support, SDCL chapter 25-7A.


79 67:12:05:23. Supplementary medical insurance benefit premiums as
deductible from available income. In those medical only applicants or recipients of
payments assistance who are eligible for supplemental medical coverage under part B of
Medicare program, the The supplemental medical insurance premiums paid by them are
considered a medical-only applicant or recipient eligible for supplemental medical
coverage under medicare part B are deductible from considered an allowable deduction for
the purposes of determining available earned income.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Note: Those receiving a money payment will have the supplemental medical
insurance premium paid by the department through the buy-in contract with Social
Security Administration.

80 67:12:05:24. Foster care payment not considered as available income. In those
AFDC households an aid to families with dependent children (AFDC) household where a
child has been placed for foster care by the department, the foster care payment to the
foster parents shall not be is considered as an allowable deduction for the purposes of
determining available earned income in determining the AFDC grant. This The foster care
payment shall be is considered sufficient only to meet the needs of the foster child only
and shall may not result in any significant income or profit available to the foster parent.
The foster child shall must not be shown in the assistance plan.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

81 67:12:05:25. Consideration of JOBS participant's income. For all activities
under JOBS, advance payments or reimbursements to the participant for child care,
transportation, work-related expenses, or work-related support services are excluded when
determining eligibility and computing the amount of the assistance grant Repealed.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR
82, effective January 13, 1982; 8 SDR 174, effective June 28, 1982; 16 SDR 99, effective
December 7, 1989; 21 SDR 172, effective April 3, 1995.
General Authority: SDCL 28-7-2.
Law Implemented: SDCL 28-7-4.

Cross-References:
Earned income exemption for AFDC, § 67:12:05:14.
Definitions, § 67:12:09:00.
Supportive assistance, § 67:12:09:05.06.
CWEP-related expenses, § 67:12:09:05.08.
Use of earned income exemption in determining eligibility and computing the
assistance payment, § 67:12:05:34.
Need and amount of assistance, 45 C.F.R. § 233.20(a)(11)(v).


82 67:12:05:27. Exemption of vocational rehabilitation training allowances. A
training allowance paid to an applicant or recipient who is under in a vocational
rehabilitation training program is considered income available to the assistance unit only if
the training allowance duplicates a portion of the need standard as defined in
§ 67:12:06:00. The balance of the training allowance is exempt.

Source: SL 1975, ch 16, § 1; 1 SDR 30, effective October 13, 1974; 2 SDR 88,
effective July 1, 1976; 7 SDR 23, effective September 18, 1980; 7 SDR 66, 7 SDR 89,
effective July 1, 1981; 9 SDR 24, effective September 2, 1982; 12 SDR 204, effective July
1, 1986; 21 SDR 172, effective April 3, 1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

83 67:12:05:28. Educational grants, stipends, or loans insured by commissioner
of education the Secretary of Education not considered available income. Any grant,
stipend, or loan to any undergraduate student for educational purposes made or insured
under any program administered by the United States commissioner Secretary of education
shall not be considered available Education is considered an allowable deduction for the
purposes of determining available earned income.

Source: SL 1975, ch 16, § 1; 5 SDR 48, effective December 19, 1978; 7 SDR 66, 7
SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Educational grants insured by the commissioner Secretary of
education Education, 45 C.F.R. § 233.20(a)(4)(ii)(d).

84 67:12:05:29. Scholarships, grants, awards, and loans for educational
purposes. Scholarships, grants, awards, and loans for educational purposes which that are
given because of need or achievement by the Bureau of Indian Affairs,; state sources,;
federal sources,; civic, fraternal, and alumni organizations,; relatives,; and lending
institutions are considered complementary assistance. Complementary assistance is
assistance which is for a different purpose than AFDC. The total amount of such
complimentary assistance will must be disregarded.
Complementary assistance does not include social security benefits received by
full-time students in a postsecondary school, college, or university. Social security student
benefits will be are considered as income when determining eligibility and the amount of
the assistance grant.

Source: SL 1975, ch 16, § 1; 1 SDR 53, effective January 22, 1975; 7 SDR 66, 7
SDR 89, effective July 1, 1981; 9 SDR 42, effective October 10, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Consideration of income when determining amount No
duplication of other assistance, 45 C.F.R. § 233.20(a)(3)(ii)(vii).

85 67:12:05:29.01. Treatment of moneys received under a college work-study
program. Moneys received under a college work-study program shall be totally are
disregarded for the purposes of the AFDC aid to families with dependent children
program.

Source: 7 SDR 66, 7 SDR 89, effective July 1, 1981; 16 SDR 58, effective October
1, 1989.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-2 28-6-1.

86 67:12:05:29.02. Treatment of loans. A loan obtained in good faith and expected
to be paid back is excluded from considered an allowable deduction for the purposes of
determining available earned income.

Source: 14 SDR 140, effective May 1, 1988; 17 SDR 200, effective July 1, 1991.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Income and resources -- Treatment of loans, 45 C.F.R.
§ 233.20(a)(3)(iv)(B)(xxi).


87 67:12:05:31. Food stamp coupon allotment Supplemental nutrition assistance
benefits not considered available income. The value of the coupon allotment under the
federal Food Stamp Act of 1977 shall Supplemental nutrition assistance benefits are not be
considered available income when determining eligibility and the amount of the aid to
families with dependent children assistance grant.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Food Stamp Act of 1977, Pub. L. No. 95-113.

88 67:12:05:32. Value of federal donated commodities not considered available
income. The value of U.S. department of agriculture United States Department of
Agriculture donated foods shall is not be considered available income when determining
eligibility and the amount of the aid to families with dependent children assistance grant.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

89 67:12:05:33. Payment received under the Relocation Act not considered
available income. Any payment received under Title II of the federal Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 shall not be, 42 U.S.C. §§
4601 et. seq. (April 2, 1987), is not considered as a resource and shall may not count
against the liquid asset limitation or as income to meet current needs.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference Cross-References:
Disregard of income common to AFDC, 45 C.F.R. § 233.20(a)(4)(ii)(c).
Maximum resource limit, § 67:12:05:05.

Example: Urban renewal is taking place or the building of a highway causes
inconvenience to a recipient and the federal government compensates the recipient for this
inconvenience. In some instances this might be a payment of $500 to $1,000.

Collateral Reference: Definitions, "need standard", subdivision 67:12:06:00(7).
90 67:12:05:34. Use of earned income exemption in determining eligibility and
computing the assistance payment. In determining eligibility and computing the
assistance payment, the earned income exemption shall be is applied as follows:
(1) Initial eligibility for a new applicant shall be is determined without using the
earned income exemption. If eligibility for a money payment can be established, the
amount of the assistance payment shall be is computed using the earned income
exemption;
(2) When determining continuing eligibility and the amount of assistance, the
earned income exemption shall be is applied according to § 67:12:05:14;
(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) The earned income exemption shall be is applied as follows in determining
initial eligibility for a former recipient who is reapplying:
(a) The $30 A thirty-dollar plus one-third of the remaining income
exemption shall be is applied if the former recipient is eligible for it under § 67:12:05:14
and received AFDC aid to families with dependent children in one or more of the four
preceding months;
(b) The $30 A thirty-dollar exemption shall be is applied if the former
recipient is eligible for it under § 67:12:05:14; or and
(c) Eligibility shall be is determined according to subdivision (1) of this
section if the former recipient does not qualify under subsection (a) or (b) of this
subdivision section but is otherwise eligible under § 67:12:05:14. 91
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.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Earned income exemption for AFDC aid to families with
dependent children, § 67:12:05:14.


92 67:12:05:36. Determining continuing eligibility. To determine continuing
eligibility, the department shall apply total income, less minus exclusions, against the
applicable need standard in § 67:12:06:04.01 for a similar AFDC aid to families with
dependent children (AFDC) household. If this the income exceeds 185 one hundred eighty-
five percent of the standard, the assistance unit is no longer eligible for AFDC.
If the assistance unit is eligible, the department shall must review the case to
determine eligibility for the earned income exemption as specified in § 67:12:05:14. If a
member of the assistance unit is eligible for the earned income exemption, the department
shall must apply the member's gross income minus the standard earned income deduction,
the earned income exemption, and the dependent care disregard against the applicable need
standard. If income exceeds the need, the assistance unit is no longer eligible for AFDC.
If a member of the assistance unit is not eligible for the earned income exemption,
the department shall must apply the member's gross income minus the standard earned
income deduction and the dependent care disregard against the applicable need standard. If
income exceeds the need, the assistance unit is no longer eligible for AFDC.

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; 8 SDR 174, effective
June 28, 1982; 12 SDR 4, effective July 21, 1985; 12 SDR 112, effective January 16, 1986;
12 SDR 204, effective July 1, 1986; 16 SDR 58, effective October 1, 1989.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.
93 Cross-References:
Income and resources, 45 C.F.R. § 233.20(a)(3).
Standard earned income deduction, § 67:12:05:18.
Dependent care disregard from earnings -- Employed caretaker relative relatives,
§ 67:12:05:21.
Need and amount of assistance, 45 C.F.R. § 233.20(a)(3).

94 67:12:05:38. Application of child's earned income. When determining AFDC
aid to families with dependent children eligibility and the amount of the assistance grant, a
child's the earned income of a dependent child, except income earned from participation in
the JTPA Job Training Partnership Act summer youth employment program, is considered
as follows:
(1) The earned income of a dependent child who is Considered when the child is
not a student or who is a part-time student working full-time is considered when
determining eligibility and the amount of the assistance grant;
(2) The earned income of a dependent child who Considered when the child is a
part-time student working part time is considered when determining eligibility and
disregarded when determining the amount of the assistance grant; or and
(3) The earned income of a dependent child who Excluded when the child is a full-
time student is excluded when determining eligibility and the amount of the assistance
grant for a maximum of six months each calendar year. After six months of exclusion, the
child's earned income is considered when determining eligibility and disregarded when
determining the amount of the assistance grant.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR
82, effective January 13, 1982; 9 SDR 42, effective October 10, 1982; 12 SDR 4, effective
July 21, 1985; 20 SDR 196, effective May 23, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.
95 Cross-References:
Disregard of income and resources applicable only to AFDC, 45 C.F.R.
§ 233.20(a)(11).
Financial eligibility -- Gross income limit, § 67:12:06:03.
Exclusion of dependent child's income received from JTPA Job Training
Partnership Act summer youth employment program, § 67:12:05:74.
Exclusion of dependent child's earnings, § 67:12:05:79.
Financial eligibility -- Gross income limit, § 67:12:06:03.



96 67:12:05:44. Real or personal property income or profits of applicants or
recipients of AFDC aid to families with dependent children. The net income or profits
derived a dependent child derives from real or personal property by a dependent child,
such as interest, dividends, trust funds, annuities, or lease or rental income, is considered
available to the dependent child and deductible deducted from the need standard.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 21 SDR
172, effective April 3, 1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Need standard, § 67:12:06:04.01.

97 67:12:05:45. Real or personal property income or profits of parents of
dependent children. If the a dependent child is living in the home of the child's natural or
adoptive parents or stepparent, the department shall must consider the net income or profits
derived the child's parents derive from real or personal property by these parents to be
available to meet the requirements needs of the dependent child and shall deduct them the
net income or profits from the assistance plan.

Source: SL 1975, ch 16, § 1; 4 SDR 10, effective August 28, 1977; 7 SDR 23,
effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

98 67:12:05:47. Interest from savings. In those instances where the If an applicant
or recipient has savings less than the maximum resource limit, interest on the savings is
considered unearned income available to the assistance unit at the time it is credited to the
account.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 13 SDR
193, effective June 22, 1987; 20 SDR 196, effective May 23, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Maximum resource limit, § 67:12:05:05;.
Interest from child's savings account excluded, § 67:12:05:78.

99 67:12:05:48. Tips considered. Tips are considered earned income when
determining the assistance unit's financial eligibility and the amount of the assistance grant.

Source: SL 1975, ch 16, § 1; 2 SDR 88, effective July 1, 1976; 7 SDR 66, 7 SDR
89, effective July 1, 1981; 21 SDR 172, effective April 3, 1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

100 67:12:05:49. Periodic and lease income considered. The department considers
income received from trust land leases by the fiscal year, from July 1 through first to June
30 thirtieth.
Effective January 1, 1994, the The department shall exclude up to $2,000 a two
thousand dollars per year of lease income received by an Indian from real property held in
trust by the federal government. If the income from the trust land lease is expected to
continue to be over $2,000 two thousand dollars after the date of application or after the
date of the continuing eligibility determination, the department shall must prorate for the
current fiscal year the lease income received in the previous fiscal year when determining
eligibility and computing the current assistance grant. The department may consider only
that portion of income from the previous fiscal year's lease that is expected to continue in
the current fiscal year.
All other periodic or contractual lease income is prorated over the length of the
lease.

Source: SL 1975, ch 16,§ 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 10 SDR
48, effective November 21, 1983; 20 SDR 144, effective March 10, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

101 67:12:05:51. Individuals excluded from assistance unit -- Nondependent
household members. A nondependent household member must be excluded from the
assistance unit. The needs of a nondependent household member may not be considered
when determining the amount of the assistance grant. The following individuals are
considered nondependent household members and are excluded from the assistance unit;
their needs may not be considered when determining the amount of the assistance grant:
(1) Parents and siblings A parent or sibling who receive SSI receives supplemental
security income benefits;
(2) Parents and siblings A parent or sibling who are aliens is an alien and are is
ineligible for AFDC aid to families with dependent children (AFDC) because of the
application of sponsor-to-alien deeming required by § 67:12:01:14.01;
(3) Parents and siblings A parent or sibling who are aliens is an alien and are is
ineligible for AFDC because they do the parent or sibling does not meet the citizenship and
alienage requirements;
(4) Parents and siblings A parent or sibling who are is ineligible for AFDC as the
result of the imposition of a sanction;
(5) Parents and siblings A parent or sibling previously entitled to AFDC who are is
ineligible due to receipt of lump sum income; and
(6) Parents and siblings A parent or sibling for whom foster care maintenance
payments are received.

Source: SL 1975, ch 16, § 1; 2 SDR 88, effective July 1, 1976; 3 SDR 52, effective
January 27, 1977; 5 SDR 48, effective December 19, 1978; 5 SDR 102, effective June 6, 102 1979; 7 SDR 23, effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1,
1981; 11 SDR 54, effective October 1, 1984; 21 SDR 172, effective April 3, 1995; 22 SDR
70, effective November 19, 1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-1, 28-7-4 28-6-1.

Cross-References:
Definition, 45 C.F.R. § 233.90(a).
Application, determination of eligibility and furnishing of assistance, 45 C.F.R.
§ 206.10.
Citizenship and alienage, 45 C.F.R. § 233.50.
Deeming of sponsor's income and resources to Eligibility of sponsored alien aliens,
45 C.F.R. § 233.51.
Factors specific to AFDC, 45 C.F.R. § 233.90(a).
Individuals who must be included in assistance unit, § 67:12:01:69.

Collateral Reference: Definition, King v Smith, 392 U.S. 309 (1968).

103 67:12:05:52. Treatment of income from nonrecipient. Except for those
nonrecipients a nonrecipient whose income is deemed available to the assistance unit
according to §§ 67:12:01:14.01 and 67:12:05:52.01, income from a nonrecipient is treated
as follows:
(1) The cash contribution of a boarder shall be is considered as income. A boarder
is an individual who pays a home owner a stipulated sum for regular meals or meals and
lodging. If the household offers board to people as a business, the provisions of
§ 67:12:05:12 apply;
(2) The cash contribution of a roomer shall be is considered as income. A roomer
generally does not receive meals in addition to room. If the household offers room to
people as a business, the provisions of § 67:12:05:12 apply;
(3) The income of a sanctioned individual who, except for the sanction, would be
required to be included in the assistance unit according to § 67:12:01:69 shall be is
considered available to meet and shall must be deducted from the budgetary needs of the
assistance unit; and
(4) For an assistance unit in an independent living arrangement, as defined in §
67:12:06:00, the cash contribution made by a nonrecipient household member for the
assistance unit's rent or mortgage shall be is considered unearned income to the assistance
unit when either if the rent contribution is made in the absence of a landlord-tenant
agreement between the nonrecipient and the landlord or the mortgage contribution is made
in the absence of an agreement between the nonrecipient and the mortgage holder.
For purposes of this rule, a nonrecipient is an individual who is not a part of the
assistance unit for which income is being considered. 104
Source: SL 1975, ch 16, § 1; 5 SDR 102, effective June 6, 1979; 7 SDR 23,
effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82,
effective January 13, 1982; 11 SDR 54, effective October 1, 1984; 12 SDR 204, effective
July 1, 1986.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Definitions, § 67:12:06:00.

105 67:12:05:52.01. Consideration of income of parent of minor parent. The
department shall consider the income of a minor parent's parent when determining
eligibility for and the amount of the AFDC aid to families with dependent children
(AFDC) payment if the minor parent's parent lives in the same household as the minor
parent and the dependent child. The department shall consider the income of the minor
parent's parent available to meet the needs of the dependent child after the following
disregards are applied;:
(1) Ninety dollars for work expenses for each employed minor parent's parent;
(2) An amount equal to the applicable AFDC need standard for each minor parent's
parent living in the home who is not a part of the assistance unit but is a dependent of the
minor parent's parent;
(3) Amounts paid by the minor parent's parent to support an individual outside the
home who could be claimed as a dependent; and
(4) Payments by the minor parent's parent for child support and alimony to an
individual outside the home.
The needs of a sanctioned individual who would otherwise be required to be a
member of the assistance unit may not be taken into consideration when computing the
allowable disregards from the income of the minor parent's parent.
For purposes of this rule, a minor is one who is an individual under the age 18 of
eighteen, regardless of school attendance or marital status.
106 Source: 12 SDR 4, effective July 21, 1985; 12 SDR 204, effective July 1, 1986; 13
SDR 193, effective June 22, 1987; 16 SDR 58, effective October 1, 1989; 19 SDR 68,
effective November 9, 1992.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-2 28-6-1.

Cross-Reference Cross-References:
Consideration of income of minor parent's parent, 45 C.F.R. § 233.20(a)(3)(xviii).
Definitions, "need standard", subdivision 67:12:06:00(7).


107 67:12:05:54. Proceeds from life insurance. Receipt of proceeds Proceeds from
life insurance shall be are treated as specified in § 67:12:05:59.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR
82, effective January 13, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

108 67:12:05:56. Applicants or recipients to take advantage of all resources. An
applicant or recipient of assistance payments must take advantage of all resources to which
the applicant or recipient is entitled, such as social security, workers' compensation, and
unemployment compensation. Failure or refusal to do so affects may result in ineligibility
for the applicant's or recipient's eligibility status applicant or recipient.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

109 67:12:05:57. Benefits to children and adults derived from government
sources. All benefits derived from governmental sources, such as OASDI, unemployment
compensation, worker's compensation, military allotments, and compensations which that
are actually received by applicants for or recipients of public assistance shall must be
considered available to and deductible from the requirements recognized on the assistance
plan on the same basis as net income derived from real or personal property. If an
individual within the household receives SSI supplemental security income (SSI), the
department may not consider that individual's income or resources when determining
AFDC aid to families with dependent children (AFDC) eligibility and the amount of
assistance. If the recipient payee's only child is determined eligible for and becomes a
recipient of SSI, the recipient payee continues to be eligible for AFDC provided all other
eligibility factors are met.
If an individual receives educational assistance from the veterans' administration
Veterans' Administration, that the part of the payment that is for the student and that
actually is used for items such as tuition, books, fees, equipment, transportation for school
purposes, and child care services necessary for school attendance shall is not be considered
as income for purposes of the AFDC program. That The part of the payment received
from the veterans administration Veterans' Administration for the individual's dependents
who are in an AFDC assistance unit shall must be counted considered available as
nonexempt income.
110 Source: SL 1975, ch 16, § 1; 2 SDR 88, effective July 1, 1976; 4 SDR 27, effective
November 6, 1977; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 9 SDR 42, effective
October 10, 1982; 11 SDR 54, effective October 1, 1984.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References: Consideration of grants from other agencies, 45 C.F.R.
§ 233.20(a)(3)(vii); Exclusion of SSI benefits, 45 C.F.R. § 233.20(a)(3)(x).
Cross-Reference: Need and amount of assistance -- Income and resources, 45
C.F.R. § 233.20(a)(3)(vii) and (x).



111 67:12:05:59. Treatment of lump sum income. Nonrecurring earned or unearned
lump sum income not otherwise excluded shall must be added together with all other
monthly income received by the assistance unit and considered available for current use
after application of the disregards in §§ 67:12:05:14, 67:12:05:18, and 67:12:05:21 and in
subdivisions 67:12:05:38(2) and (3). When this If the total exceeds the need standard for
the family, each member of the assistance unit is ineligible for AFDC aid to families with
dependent children for the number of full months derived by dividing the total income by
the need standard applicable to the family. Any amount remaining after this calculation is
treated as if it is income received in the first month following the period of ineligibility and
is considered available for use at that time.
Lump sum income includes insurance settlements, personal injury awards, and
workers' compensation awards; retroactive payments such as OASDI from old-age,
survivors, and disability insurance and child support; and windfalls such as inheritances or
lottery winnings. A windfall is a sum that is not earned, does not occur regularly, and does
not represent accumulated monthly income received in a single sum.
Lump sum income earmarked and used for the purpose for which it was paid, for
example, money for back medical bills resulting from an accident or injury, funeral and
burial costs, replacement or repair of resources, or any portion of the lump sum designated
for a specific purpose, such as attorney fees involved in obtaining the lump sum income,
shall must be subtracted from the total lump sum income amount before determining the
length of ineligibility. 112 The department shall consider changes in circumstances requiring expenditure of
resources or income in connection with medical and life-threatening situations as
justification for shortening the period of ineligibility.

Source: SL 1975, ch 16, § 1; 5 SDR 48, effective December 19, 1978; 7 SDR 23,
effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 88,
effective January 13, 1982; 9 SDR 24, effective September 2, 1982; 10 SDR 11, effective
August 15, 1983; 12 SDR 4, effective July 21, 1985; 13 SDR 110, effective February 15,
1987; 15 SDR 67, effective November 6, 1988; 16 SDR 161, effective March 20, 1990; 17
SDR 200, effective July 1, 1991.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Need and amount of assistance -- Income and resources, 45
C.F.R. § 233.20(a)(3)(ii)(F).

113 67:12:05:60. County welfare funds or BIA Bureau of Indian Affairs general
assistance grants. County welfare funds or BIA Bureau of Indian Affairs (BIA) general
assistance grants payable to applicants for or recipients of AFDC shall aid to families with
dependent children (AFDC) must be considered as income only to the extent that the
county welfare funds or BIA general assistance grants are designated to meet all or a
portion of the needs of the eligible AFDC household.
County welfare funds or BIA general assistance grants for medical or hospital
expenses shall are not be considered in determining eligibility for or the amount of the
AFDC grant.

Source: SL 1975, ch 16, § 1; 3 SDR 52, effective January 27, 1977; 7 SDR 66, 7
SDR 89, effective July 1, 1981; 12 SDR 112, effective January 16, 1986; 13 SDR 193,
effective June 22, 1987.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

114 67:12:05:61. Benefits derived from private sources. All benefits derived from
private sources, including but not limited to contributions, pensions from various firms or
associations, and annuities, shall must be considered available to and deductible from the
requirements of the applicant or recipient on the same basis as net income derived from
real or personal property. These benefits may take the form of cash contributions.

Source: SL 1975, ch 16, § 1; 1 SDR 30, effective October 13, 1974; 2 SDR 88,
effective July 1, 1976; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

115 67:12:05:61.01. Income received as gift. Nonrecurring income in the amount of
$30 thirty dollars or less which that is received in the form of a gift shall be is excluded up
to a maximum of $30 thirty dollars per recipient per calendar quarter.
A gift received by one member of the assistance unit without evidence it is
intended for the entire assistance unit shall must be divided if the recipient claims that the
gift is intended for the entire assistance unit. A gift for the entire assistance unit shall must
be divided in the way that is most financially advantageous to the assistance unit.
For purposes of this rule, a gift is defined as section, "gift" means anything that is
bestowed voluntarily and without compensation. Birthday, Christmas, and graduation gifts
are considered nonrecurring.

Source: 13 SDR 193, effective June 22, 1987; 14 SDR 40, effective September 24,
1987.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Small nonrecurring gifts, 45 C.F.R. § 233.20(a)(3)(iv)(F).

116 67:12:05:62. Income received by volunteers in the retired senior volunteer
program, foster grandparent program, and older Americans community service
program. Compensation provided to individual volunteers under the retired senior
volunteer program, foster grandparent, and or older Americans community service
programs established under Title VI of the Older Americans Act of 1965, 42 U.S.C.
§ 3001, January, 1995 (September 30, 1992), is excluded when determining initial and
continuing eligibility for the AFDC aid to families with dependent children program.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 21 SDR
172, effective April 3, 1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.



117 67:12:05:64. Judgment funds paid to Blackfeet Tribe and Gros Ventre Tribe
of Montana. Per capita judgment funds paid under the Act of March 18, 1972, Pub. L. No.
92-254, 86 Stat. 671 (1972), to members of the Blackfeet Tribe of the Blackfeet Indian
Reservation, Montana, and the Gros Ventre Tribe of the Fort Belknap Reservation,
Montana, shall be are excluded as income or resources when determining eligibility and
the amount of the aid to families with dependent children assistance grant. Payments
received by the member as a result of the investment of the per capita judgment funds shall
be are considered income.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR
82, effective January 13, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

118 67:12:05:65. Indian judgment funds pursuant to Pub. L. No. 93-134. The per
capita payments of Indian judgment funds made pursuant to the provisions of the Indian
Tribal Judgment Funds Use or Distribution Act, Pub. L. No. 93-134, 87 Stat. 466 (1973),
shall be are excluded as income or resources when determining the extent of eligibility for,
and the amount of, the aid to families with dependent children assistance payment.
Payments received by the member as a result of the investment of the per capita judgment
funds shall be are considered income.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR
82, effective January 13, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

119 67:12:05:66. Exclusion of payments received pursuant to Alaska Native
Claims Settlement Act. Payments under the Alaska Native Claims Settlement Act, 43
U.S.C. § 1601 (August 13, 2018), which are exempt from taxation under 43 U.S.C. § 1620
(October 14, 1992) shall be, are excluded as income in when determining the eligibility
for, or the amount of, the aid to families with dependent children assistance payment.
Income which that is not exempted from taxation under the Alaska Native Claims
Settlement Act shall must be considered to the same extent as any other income. Payments
received by the member as a result of the investment of funds under this Act shall be are
considered income.

Source: 1 SDR 53, effective January 22, 1975; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 8 SDR 82, effective January 13, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 43 U.S.C. §§ 1601, 1620 28-6-1.


120 67:12:05:71. Exclusion of payments received as volunteer under Title I
(VISTA). Payments received as a volunteer under Title I (VISTA) of the Domestic
Volunteer Service Act of 1973, Pub. L. No. 93-113 shall, 87 Stat. 394 (1973), must be
excluded in determining AFDC aid to families with dependent children (AFDC) eligibility
and the amount of AFDC payment.

Source: 3 SDR 52, effective January 27, 1977; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 8 SDR 82, effective January 13, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Disregard of income common to AFDC, 45 C.F.R.
§ 233.209(a)(4)(ii)(h) Disregard of certain income received by participants in the VISTA
program, 45 C.F.R. § 233.20(a)(4)(ii)(h).

121 67:12:05:72. Exclusion of value of supplemental food assistance. The value of
supplemental food assistance under the Child Nutrition Act of 1966, Pub. L. No. 89-642,
80 Stat. 885 (October 11, 1966), as amended through Pub. L. No. 117-362 (January 5,
2023), and the special food service program for children under the National School Lunch
Act, 60 Stat. 230 (June 4, 1946), as amended through Pub. L. No. 118-42 (March 9, 2024),
shall be is excluded in determining AFDC aid to families with dependent children (AFDC)
eligibility and the amount of AFDC payment.

Source: 3 SDR 52, effective January 27, 1977; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 8 SDR 82, effective January 13, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Child Nutrition Act, Pub. L. No. 92-433 (September 26, 1972), 42 U.S.C. § 1774.
National School Lunch Act, Pub. L. No. 93-150 (June 30, 1974), 42 U.S.C. § 1752.
Disregard of income common to AFDC from supplemental food assistance, 45
C.F.R. § 233.20(a)(4)(ii)(i).

122 67:12:05:73. Payments received as volunteer under Titles II and III. Payments
received as a volunteer in the Service Corps of Retired Executives (SCORE), the Active
Corps of Executives, (ACE) or any other program under Title II or Title III shall be of the
Domestic Volunteer Service Act of 1973, Pub. L. No. 93-113 § 418 (1973), are excluded
in determining AFDC aid to families with dependent children (AFDC) eligibility and the
amount of AFDC payment.

Source: 4 SDR 10, effective August 28, 1977; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 8 SDR 82, effective January 13, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-Reference: Disregard of income common to AFDC from volunteering for
SCORE and ACE, 45 C.F.R. § 233.20(a)(4)(ii)(g).

123 67:12:05:74. Exclusion of dependent child's income received from JTPA Job
Training Partnership Act summer youth employment program. A dependent child's
income received as a result of participating in the JTPA Job Training Partnership Act
summer youth employment program is excluded when determining eligibility for and the
amount of AFDC aid to families with dependent children benefits. This exclusion is
limited to six months a per calendar year.

Source: 8 SDR 82, effective January 13, 1982; 10 SDR 144, effective July 1, 1984;
11 SDR 85, effective December 30, 1984.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Disregard of income earned under JTPA -- Income and expenses under JOBS, 45
C.F.R. § 233.20(a)(3)(xvii)(B).
Disregard of income and resources applicable only to AFDC, 45 C.F.R.
§ 233.20(a)(11)(v); Disregard of income earned under JTPA, 45 C.F.R.
§ 233.20(a)(3)(xvii)(B).

124 67:12:05:75. Exclusion of agent orange Agent Orange settlement payments.
Payments received pursuant to the agent orange an Agent Orange product liability
settlement are excluded when determining AFDC aid to families with dependent children
(AFDC) eligibility and the amount of the AFDC assistance payment.

Source: 17 SDR 8, effective July 23, 1990.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References: Pub. L. No. 101-201; Pub. L. No. 101-239
An act to exclude Agent Orange settlement payments from countable income and
resources under Federal means-tested programs, 103 Stat. 1795 (December 6, 1989).
Agent Orange settlement payments excluded from countable income and resources
under Federal means-tested programs, 103 Stat. 2489 (December 19, 1989).

125 67:12:05:76. Exclusion of vehicle owned by dependent child. The trade-in value
of a vehicle owned by a dependent child is excluded from the resource limit contained in
§ 67:12:05:05 if all of the following requirements are met:
(1) The household has been is assigned to the 1115 waiver group under the
provisions of § 67:12:01:73;
(2) The trade-in value does not exceed $2,500 two thousand five hundred dollars;
(3) The child who owns the vehicle is at least 14 fourteen years old;
(4) The child is at least a part-time student;
(5) The child is employed at least part-time or has been employed at least part-time
in the preceding 12 twelve months;
(6) The vehicle is owned solely by the child or is owned jointly by the child and
the child's caretaker or another adult relative; and
(7) A portion of the payment for the car comes from the child's earnings.
This exclusion is limited to one vehicle for each qualifying dependent child.

Source: 20 SDR 196, effective May 23, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-1 28-6-1.

126 67:12:05:77. Exclusion of savings account owned by dependent child. One or
more savings accounts with a cumulative balance of $1,000 one thousand dollars or less is
excluded as a liquid asset if all of the following requirements are met:
(1) The assistance unit has been is assigned to the 1115 waiver group under the
provisions of § 67:12:01:73;
(2) The excluded account is owned solely by the dependent child or the child owns
the savings account jointly with the caretaker or another adult relative;
(3) The child is at least a part-time student;
(4) The child is employed at least part-time or has been employed at least part-time
in the preceding 12 twelve months; and
(5) A portion of the account was is derived from the child's earnings.

Source: 20 SDR 196, effective May 23, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-1 28-6-1.

127 67:12:05:78. Interest from child's savings account excluded. The department
excludes interest as a liquid asset earned on a child's savings account if the requirements of
§ 67:12:05:77 are met.

Source: 20 SDR 196, effective May 23, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-1 28-6-1.

128 67:12:05:79. Exclusion of dependent child's earnings. When determining
eligibility and the amount of the assistance payment, the department excludes a dependent
child's earned income if the dependent child is at least a part-time student and a member of
an assistance unit assigned to the 1115 waiver group under the provisions of § 67:12:01:73.

Source: 20 SDR 196, effective May 23, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-1 28-6-1.

129 CHAPTER 67:12:06
BUDGETING

Section
67:12:06:00 Definitions.
67:12:06:01 Recovery of overpayments.
67:12:06:01.01 to 67:12:06:01.05 Repealed.
67:12:06:01.06 Recovery of overpayment to alien.
67:12:06:02 Correction of underpayments.
67:12:06:03 Financial eligibility -- Gross income limit.
67:12:06:04 Repealed.
67:12:06:04.01 Need standard amount.
67:12:06:05 and 67:12:06:06 Repealed.
67:12:06:07 Allowances for child attending college, vocational, or
boarding school Need standard when child regularly
attending school.
67:12:06:08 Repealed.
67:12:06:09 Transferred.
67:12:06:10 and 67:12:06:11 Repealed.
67:12:06:12 In-kind shelter considered unearned income --
Dependent living arrangement.
67:12:06:12.01 and 67:12:06:12.02 Repealed. 130 67:12:06:12.03 Need standard when nonrecipient individual resides
in household of applicant or recipient.
67:12:06:13 Rental subsidy considered unearned income --
Independent living arrangements.
67:12:06:14 Lodging expenses presumed in-kind.
67:12:06:15 to 67:12:06:25 Repealed.
67:12:06:26 Amount of assistance grant -- Limitation.
67:12:06:26.01 Repealed.
67:12:06:27 Unrestricted payments.
67:12:06:28to 67:12:06:31 Repealed.
67:12:06:32 Notification by recipient to initiate procedure for
writing duplicate warrant.
67:12:06:33 Definitions, Repealed.
67:12:06:34 Completed monthly report form required.
67:12:06:34.01 Assistance units exempt from monthly reporting.
67:12:06:35 and 67:12:06:36 Repealed.
67:12:06:37 Assistance to be terminated if required report form
not received on time.
67:12:06:37.01 Penalty for late filing of monthly report.
67:12:06:37.02 Good cause for late filing of monthly report.
67:12:06:38 Computing assistance payment and determining
eligibility in initial month of assistance for applicant
or former recipient. 131 67:12:06:38.01 Determination of initial month's benefits.
67:12:06:39 Computing assistance payment after initial month of
assistance.
67:12:06:40 Repealed.
67:12:06:41 Determining eligibility after initial month of
assistance.
67:12:06:42 Penalty for terminating employment, reducing earned
income, and refusing offer of employment.
67:12:06:42.01 Penalty for terminating employment -- 1115 waiver
group.
67:12:06:42.02 Medicaid eligibility when employment terminated --
1115 waiver group.
67:12:06:43 Good cause for terminating employment or reducing
earned income.
67:12:06:43.01 Good cause for terminating employment -- 1115
waiver group.
67:12:06:44 Good cause for refusal to accept employment.
67:12:06:45 Medical verification supporting applicant's or
recipient's inability to be employed.


132 67:12:06:00. Definitions. Words used in this chapter have the following meanings
unless specifically indicated otherwise mean:
(1) "Need standard," the amount recognized by the department as meeting an
assistance unit's basic living needs, such as shelter, utilities, food, clothing, household
items, and personal care items and, if applicable, day care costs pursuant to § 67:12:15:02
"Dependent living arrangement," a situation where the assistance unit resides in a
household owned or rented by an individual who is neither a member of the assistance unit
nor a caretaker relative who is receiving supplemental security income or where a member
of the assistance unit has a landlord-tenant agreement but is not expected to contribute
monetarily toward rent;
(2) "Dependent living arrangement," that situation which exists when the assistance
unit resides in a household owned or rented by an individual who is neither a member of
the assistance unit nor a caretaker relative who is a recipient of SSI or when a member of
the assistance unit has a landlord-tenant agreement but is not expected to contribute
monetarily toward rent "Homeowner's expenses," costs associated with residing in a home
owned by the assistance unit or a caretaker relative who is receiving supplemental security
income, including the mortgage payment, heat, electricity, water, real estate taxes,
insurance, trailer parking fees, and general maintenance;
(3) "Independent living arrangement," that a situation which exists when where a
member of the assistance unit or a caretaker relative who is an SSI recipient receiving
supplemental security income has a landlord-tenant agreement and contributes or expects
to contribute monetarily toward rent, or when where a member of the assistance unit or a 133 caretaker relative who is an SSI recipient receiving supplemental security income has
homeowner's expenses;
(4) "Homeowner's expenses," those costs associated with residing in a home owned
by the assistance unit or a caretaker relative who is an SSI recipient, such as mortgage
payments, heat, lights, real estate taxes, insurance, trailer parking fees, and general
maintenance "In-kind," the lodging expenses provided on behalf of the assistance unit at no
cost to the assistance unit;
(5) "Landlord-tenant agreement," an agreement between a landlord and a tenant
who do not reside in the same household in which the landlord gives the tenant temporary
possession and use of real property for a specified sum of money and the tenant agrees to
return the property to the landlord at a future time;
(5)(6) "Lodging expenses," those costs associated with residing in a home not
owned by the assistance unit or a caretaker relative who is an SSI recipient, such as rent,
heat, lights, and trailer parking fees receiving supplemental security income;
(6) "In-kind" or "In-kind shelter," for an assistance unit in a dependent living
arrangement, those lodging expenses provided in the assistance unit's behalf at no cost to
the assistance unit;
(7) "Need standard," the amount recognized by the department as meeting an
assistance unit's basic living needs and, if applicable, dependent care costs pursuant to
§ 67:12:15:02;
(8) "Payment month for retrospective budgeting," the calendar month for which the
aid to families with dependent children payment is made. The payment month for
retrospective budgeting immediately follows the retrospective budget month; 134 (9) "Rental subsidy," for an assistance unit in an independent living arrangement,
the difference between the amount the tenant pays for rent and the amount the department
of housing and urban development U.S. Department of Housing and Urban Development
or the farmers home administration Farmers Home Administration determines to be the
rent or operating costs for a particular rental unit; and
(8) "Landlord-tenant agreement," a bona fide agreement between a landlord and a
tenant who do not reside in the same household in which the landlord gives the tenant
temporary possession and use of real property for a specified sum of money and the tenant
agrees to return the property to the landlord at a future time
(10) "Retrospective budget month," the fifteenth day of a month to the fourteenth
day of the following month.

Source: 12 SDR 204, effective July 1, 1986; 15 SDR 67, effective November 6,
1988.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-Reference:
Budget methods for OAA, AB, APTD, and AABD -- Definitions, 45 C.F.R. §
233.21(b).


135 67:12:06:01. Recovery of overpayments. The department shall recover
overpayments as soon as possible through restitution by the individual or recovered
through recoupment by reducing the amount of the AFDC aid to families with dependent
children (AFDC) grant. The reduced grant combined with other income and liquid
resources may not be less than 90 ninety percent of the need standard for the assistance
unit.
An overpayment results when a recipient receives a larger AFDC allotment than the
recipient is entitled to receive. For recovery purposes, overpayments may result when any
of the following occur:
(1) The recipient fails to report a change in the household's circumstances;
(2) The recipient reports a change in the household's circumstances but the change
is reported incorrectly;
(3) The department fails to react to a reported change in circumstances; or
(4) There is a change in the household's circumstances after the AFDC payment is
made.

Source: SL 1975, ch 16, § 1; 1 SDR 30, effective October 13, 1974; 2 SDR 88,
effective July 1, 1976; 4 SDR 10, effective August 28, 1977; 5 SDR 48, effective
December 19, 1978; 5 SDR 102, effective June 6, 1979; 7 SDR 30, effective October 5,
1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 95, effective February 18, 1982;
12 SDR 204, effective July 1, 1986; 15 SDR 67, effective November 6, 1988.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1. 136
Cross-Reference: Recovery of overpayments and correction of underpayments for
AFDC, 45 C.F.R. § 233.20(a)(13).


137 67:12:06:01.06. Recovery of overpayment to alien. If an overpayment to an alien
is made by the department because the sponsor withheld information concerning the
sponsor's income and resources, the department shall must recover the overpayment
according to § 67:12:06:01. The sponsor and the alien are jointly and severally liable for
the repayment.

Source: 8 SDR 95, effective February 18, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References:
Overpayment to aliens, 45 C.F.R. § 233.52.
Deeming of sponsor's income and resources to alien when sponsor is an individual -
- Cooperation of sponsor is condition of eligibility, § 67:12:01:14.01.
Aliens exempt from sponsor deeming, § 67:12:01:14.02.
Overpayment to aliens, 45 C.F.R. § 233.52.

138 67:12:06:02. Correction of underpayments. Corrections of underpayments shall
be made by the The department shall correct any underpayment as soon as possible. The
amount of a retroactive payment made to a recipient shall may not be considered as income
or a resource when determining eligibility and the amount of the aid to families with
dependent children assistance in the month paid or in the following month; however, the.
The retroactive payment or any balance remaining shall be is considered in the
determination of the continuing eligibility for aid to families with dependent children
assistance of the recipient in the succeeding months.

Source: SL 1975, ch 16, § 1; 1 SDR 30, effective October 13, 1974; 4 SDR 10,
effective August 28, 1977; 7 SDR 30, effective October 5, 1980; 7 SDR 66, 7 SDR 89,
effective July 1, 1981; 8 SDR 95, effective February 18, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-Reference: Recovery of overpayments and correction of underpayments for
AFDC, 45 C.F.R. § 233.20(a)(13).

139 67:12:06:03. Financial eligibility -- Gross income limit. There is no financial
eligibility when if the assistance unit's nonexcluded income, without application of the
disregards set forth in §§ 67:12:05:14, 67:12:05:18, 67:12:05:21, and subdivisions
67:12:05:38(2) and (3), exceeds 185 one hundred eighty-five percent of the need standard
for the assistance unit.

Source: SL 1975, ch 16, § 1; 1 SDR 30, effective October 13, 1974; 7 SDR 66, 7
SDR 89, effective July 1, 1981; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82,
effective January 13, 1982; 8 SDR 174, effective June 28, 1982; 10 SDR 11, effective
August 15, 1983; 12 SDR 4, effective July 21, 1985; 12 SDR 204, effective July 1, 1986;
15 SDR 67, effective November 6, 1988.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References:
Need and amount of assistance -- Income and resources, 45 C.F.R.
§ 233.20(a)(3)(xiii).
Need standard, § 67:12:06:04.01; Need and amount of assistance -- Income and
resources, 45 C.F.R. § 233.20(a)(3)(xiii).


140 67:12:06:04.01. Need standard amount. Based on the number of members in the
assistance unit and the unit's living arrangement, the need standard amounts are as follows:

UNIT SIZE INDEPENDENT LIVING DEPENDENT LIVING
1 person $ 358 $ 204
2 persons 448 295
3 persons 507 354
4 persons 563 412
5 persons 622 470
6 persons 680 528
7 persons 738 587
8 persons 795 643
9 persons 852 701
10 persons 910 758
11 persons 968 816
12 persons 1,026 872
13 persons 1,083 931
14 persons 1,140 988
15 persons 1,198 1,047
16 persons 1,256 1,103
17 persons 1,312 1,160
18 persons 1,370 1,218
19 persons 1,428 1,275 141 20 persons 1,486 1,332
21 persons 1,543 1,390
22 persons 1,599 1,448
23 persons 1,658 1,505
24 persons 1,715 1,562
25 persons 1,772 1,620

Source: 1 SDR 30, effective October 13, 1974; 5 SDR 6, effective August 6, 1978;
7 SDR 66, 7 SDR 89, effective July 1, 1981; 10 SDR 144, effective July 1, 1984; 12 SDR
204, effective July 1, 1986; 15 SDR 67, effective November 6, 1988; 15 SDR 203,
effective July 2, 1989; 16 SDR 99, effective December 7, 1989; 17 SDR 8, effective July
23, 1990; 17 SDR 200, effective July 1, 1991; 19 SDR 26, effective August 23, 1992; 20
SDR 18, effective August 17, 1993; 21 SDR 172, effective April 3, 1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.


142 67:12:06:07. Allowances for child attending college, vocational, or boarding
school Need standard when child regularly attending school. An otherwise eligible
child who regularly attends a college, vocational school, or boarding school, as defined
described in § 67:12:01:21, and is at or away from home shall be is included as a
household member when figuring determining the need standard to be used. No additional
allowance for these educational arrangements may be is authorized.

Source: SL 1975, ch 16, § 1; 1 SDR 53, effective January 22, 1975; 7 SDR 23,
effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 12 SDR 204,
effective July 1, 1986.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.


143 67:12:06:12. In-kind shelter considered unearned income -- Dependent living
arrangement. In computing determining the AFDC aid to families with dependent
children grant, a standard amount of $112 one hundred twelve dollars is considered as
unearned income to an assistance unit in a dependent living arrangement when if all of the
assistance unit's lodging expenses are being supplied in kind in-kind.

Source: SL 1975, ch 16, § 1; 1 SDR 53, effective January 22, 1975; 6 SDR 11,
effective August 15, 1979; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 12 SDR 204,
effective July 1, 1986; 19 SDR 26, effective August 23, 1992; 20 SDR 18, effective
August 17, 1993; 21 SDR 172, effective April 3, 1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-Reference: Lodging expenses presumed in-kind, § 67:12:06:14.


144 67:12:06:12.03. Need standard when nonrecipient individual resides in
household of applicant or recipient. If a nonrecipient individual resides in the household
of an applicant or recipient, the need standard for the assistance unit shall be is determined
without additional allowances for the nonrecipient members individual.

Source: Transferred from § 67:12:06:09, 12 SDR 112, effective January 16, 1986;
12 SDR 204, effective July 1, 1986.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

145 67:12:06:13. Rental subsidy considered unearned income -- Independent
living arrangements. In computing the AFDC aid to families with dependent children
grant, an amount up to $150 one hundred fifty dollars but not exceeding the assistance
unit's average monthly rental subsidy, is considered as unearned income when the
assistance unit lives in an independent living arrangement and has benefit of a rental
subsidy.

Source: SL 1975, ch 16, § 1; 1 SDR 30, effective October 13, 1974; 7 SDR 23,
effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 12 SDR 204,
effective July 1, 1986; 19 SDR 26, effective August 23, 1992; 20 SDR 18, effective
August 17, 1993; 21 SDR 171, effective April 3, 1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

146 67:12:06:14. Lodging expenses presumed in-kind. In computing the AFDC aid
to families with dependent children grant, the lodging expenses of an assistance unit in a
dependent living arrangement is presumed to be furnished in-kind unless the assistance
unit can provide documentation to show that it participates in meeting those costs.
Based on the documentation submitted, if the department determines that the
assistance unit is participating in meeting the lodging expenses, the assistance unit will not
is not to be subject to the unearned income standard in § 67:12:06:12.

Source: SL 1975, ch 16, § 1; 1 SDR 30, effective October 13, 1974; 7 SDR 66, 7
SDR 89, effective July 1, 1981; 12 SDR 204, effective July 1, 1986; 19 SDR 26, effective
August 23, 1992; 20 SDR 18, effective August 17, 1993; 21 SDR 172, effective April 3,
1995.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

147 67:12:06:26. Amount of assistance grant -- Limitation. The amount of
assistance which can be paid to an assistance unit is derived by the following computation
computed by:
(1) Add Adding the earned and unearned income and other benefits available to or
received by the assistance unit, except unemployment compensation and disregarded and
excluded income;
(2) Subtract Subtracting the sum from the need standard specified in
§ 67:12:06:04.01;
(3) Multiply Multiplying the remainder by 85 eighty-five percent;
(4) Round Rounding the resulting figure down to the nearest dollar; and
(5) Subtract Subtracting unemployment compensation.
No payment may be made to a recipient in any month in which the amount of the
assistance payment, not considering recoupment amounts, is less than $10 ten dollars.
Those recipients A recipient denied solely because of this limitation shall be is considered
AFDC recipients an aid to families with dependent children recipient for all other
purposes.

Source: SL 1975, ch 16, § 1; 7 SDR 90, effective April 1, 1981; 7 SDR 66, 7 SDR
89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982; 19 SDR 26, effective
August 23, 1993.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.
148 Cross-References:
Determining financial eligibility and amount of the assistance payment, 45 C.F.R.
§ 233.20(a)(3)(ii)(B).
Assistance applications and eligibility, ch chapter 67:12:01.
Limitations on real property, ch chapter 67:12:04.
Limitations on personal property, ch chapter 67:12:05.
Budgeting, ch chapter 67:12:06.
Determining financial eligibility and amount of the assistance payment, 45 C.F.R.
§ 233.20(a)(3)(ii)(B).


149 67:12:06:27. Unrestricted payments. The department shall make payments
without direction on the warrant, without a letter or agreement as a condition of receiving
the payment, or without any other notification that the recipient must use the money in a
specified way or for specified purposes. The following conditions are construed as
restrictions on payments department may not:
(1) Directing Direct that all or part of the assistance payments must be applied to
specific bills or for the purchase of specified foods or services;
(2) Requiring Require that the recipient submit receipts for the purpose of showing
how the recipient spent all or any part of the assistance payments;
(3) Requiring Require the return to or deposit of all or part of the AFDC aid to
families with dependent children payments to the department or for use in a designated
way determined by the department; and or
(4) Providing Provide service to a recipient's creditors, such as assisting them
creditor or assist a creditor in the collection of the recipient's debt.
The department shall inform the client of the client's rights to an unrestricted
payment.

Source: SL 1975, ch 16, § 1; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.


150 67:12:06:32. Notification by recipient to initiate procedure for writing
duplicate warrant. To initiate the procedure for writing a duplicate warrant if a warrant is
lost, stolen, or forged, the recipient must notify the department of the nonreceipt of need
for a duplicate warrant within 10 ten days from the department's established mailing dates
and the normal time required for postal delivery to the recipient's locality.

Source: 2 SDR 62, effective April 5, 1976; 7 SDR 66, 7 SDR 89, effective July 1,
1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-12 28-6-1.

151 67:12:06:33. Definitions. Terms used in this chapter mean:
(1) "Prospective budgeting," the method of computing the amount of AFDC
assistance for a payment month based on the caseworker's best estimate of income and
circumstances which will exist in that month;
(2) "Prospective eligibility," the determination of a client's eligibility for AFDC
based on the caseworker's best estimate of income and circumstances which will exist in
that month;
(3) "Retrospective budgeting of income," the method of computing the amount of
AFDC assistance for a payment month based on actual income which existed in a previous
month, which is the budget month;
(4) "Retrospective budget month," the fifteenth of one month through the
fourteenth of the following month;
(5) "Prospective budget month," a calendar month;
(6) "To make an assistance payment," to deposit in the United States mail or to
hand deliver the assistance payments check to the recipient; and
(7) "Payment month for retrospective budgeting," the calendar month for which
the AFDC payment is made. The payment month for retrospective budgeting immediately
follows the retrospective budget month Repealed.

Source: 7 SDR 30, effective October 5, 1980; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 8 SDR 125, effective April 4, 1982.
General Authority: SDCL 28-7-2.
Law Implemented: SDCL 28-7-4, 28-7-9. 152
Cross-Reference: Definitions, 45 C.F.R. § 233.21(b).

153 67:12:06:34. Completed monthly report form required. The department shall
furnish each assistance unit with a monthly report form which shall be filled. A member of
the assistance unit must fill out, signed sign, and returned return the monthly report form to
the department or. A form returned by mail must be postmarked by the twentieth of the
month before the month of payment. The monthly report form contains must contain the
information necessary to allow the caseworker to determine eligibility and compute the
amount of assistance payment.

Source: 7 SDR 30, effective October 5, 1980; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 8 SDR 125, effective April 4, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References:
Monthly reporting (AFDC), 45 C.F.R. § 233.36.
Recipient to report change of circumstances, § 67:12:01:12.
Adequate notice to recipients using monthly report form, § 67:12:02:03.01.
Recipient to report change of circumstances, § 67:12:01:12.

154 67:12:06:34.01. Assistance units exempt from monthly reporting. An
assistance unit is exempt from the monthly reporting requirements contained in
§ 67:12:06:34 if it meets all of the following criteria:
(1) The caretaker relative is not a member of the assistance unit and is not
currently sanctioned for not cooperating with the department; and
(2) The members of the assistance unit have no earned income and have not
received any earned income in the past two months; and
(3) If receiving food stamps, the unit is exempt from monthly reporting under
§ 67:23:03:08.

Source: 15 SDR 203, effective July 2, 1989.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References:
Recipient to report change in of circumstances, § 67:12:01:12.
Cooperation of applicant or recipient, § 67:12:01:70.
Households exempt from monthly reporting, § 67:13:03:08.

155 67:12:06:37. Assistance to be terminated if required report form not received
on time. If the department does not receive the required report form from the recipient by
the date specified in § 67:12:06:34, the department shall must terminate assistance and
notify the recipient according to § 67:12:02:03.01. If the recipient notifies the department
to reclaim a need for assistance and files a completed report within 10 ten days after the
notice, assistance shall must be reinstated subject to penalty, as specified in
§ 67:12:06:37.01, provided the recipient is still eligible.

Source: 7 SDR 30, effective October 5, 1980; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 8 SDR 125, effective April 4, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References:
Adequate notice to recipients using monthly report form, § 67:12:02:03.01.
Action necessary due to non-receipt of report form, 45 C.F.R. § 233.29(c).
Completed monthly report not received by agency, 45 C.F.R. § 233.37(b).
Adequate notice to recipients using monthly report form, § 67:12:02:03.01.


156 67:12:06:37.01. Penalty for late filing of monthly report. If the caretaker
relative fails, without good cause, to report earned income on the monthly report form by
the date specified in § 67:12:06:34, the department shall must determine eligibility and
compute the amount of assistance without benefit of considering the disregards in
§§ 67:12:05:14, 67:12:05:18, and 67:12:05:21. In addition, when If earned income is
present, the disregard in § 67:12:05:14 shall be is counted as one of the four consecutive
months in the limitation specified in subdivision 67:12:05:34(4).

Source: 8 SDR 125, effective April 4, 1982; 9 SDR 24, effective September 2,
1982; 10 SDR 68, effective January 1, 1984; 15 SDR 67, effective November 6, 1988.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References:
Completed monthly report received but not timely, 45 C.F.R.
§ 233.20(a)(11)(iii)(C);.
Good cause for late filing of monthly report, § 67:12:06:37.02.

157 67:12:06:37.02. Good cause for late filing of monthly report. The department
shall consider the an applicant's transition into a reporting cycle and those circumstances
which that are beyond the a recipient's control as good cause for late filing of the monthly
report. Examples of these circumstances include weather conditions, mailing problems,
and the recipient's indisposition for health reasons. If the recipient can verify good cause,
the assistance shall may not be affected.

Source: 8 SDR 125, effective April 4, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-Reference: Good cause for failing to make a timely report, 45 C.F.R.
§ 33.20(a)(11)(iii)(C) 45 C.F.R. § 233.20(a)(11)(iii)(C).

158 67:12:06:38. Computing assistance payment and determining eligibility in
initial month of assistance for applicant or former recipient. The department shall
determine eligibility for AFDC aid to families with dependent children assistance for an
applicant or a former recipient and compute the assistance payment prospectively in the
initial month of assistance.
If a former recipient requests an assistance payment in the same month in which
that the former recipient was determined to be ineligible and the case was subsequently
terminated, the provisions of §§ 67:12:06:39 and 67:12:06:41 apply.

Source: 7 SDR 30, effective October 5, 1980; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 9 SDR 114, effective March 6, 1983.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References: Determining
Retrospective budgeting; determining eligibility and computing the assistance
payment in the initial one or two months, 45 C.F.R. § 233.24(a);.
Determination of initial month's benefits, § 67:12:06:38.01.

159 67:12:06:38.01. Determination of initial month's benefits. Effective October 1,
1982, the The first month's assistance payment shall be is prorated based on the date of
application. The payment level shall be is computed as follows: subtract by:
(1) Subtracting the date of application from 31 and multiply thirty-one;
(2) Multiplying the result by the full month's benefit; then divide and
(3) Dividing the total by 30 thirty.
Assistance units applying An assistance unit that applies on the 31st thirty-first of
the month shall be is considered as having to have applied on the 30th thirtieth of the
month. For purposes of this provision section, a month shall consist of 30 is thirty days.

Source: 9 SDR 72, effective December 14, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4 28-6-1.

Cross-References:
Application, determination of eligibility and furnishing of assistance, 45 C.F.R.
§ 206.10.
Date entitlement for financial assistance begins, § 67:12:01:11; Application,
determination of eligibility and furnishing assistance, 45 C.F.R. § 206.10(c)(6).

160 67:12:06:39. Computing assistance payment after initial month of assistance.
After the initial month of assistance, the department shall compute the amount of each
subsequent payment retrospectively and shall base the amount on the income received in
the corresponding budget month.
Noncontinuous income received before the month of application or previously
considered under § 67:12:06:38 may not be counted again.
The needs and income of an individual determined eligible for families with
dependent children assistance and added to an existing assistance unit shall must be
considered prospectively. Computing the amount of assistance prospectively is based on
the caseworker's best estimate of income and circumstances that will exist in that calendar
month.

Source: 7 SDR 30, effective October 5, 1980; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 8 SDR 125, effective April 4, 1982; 9 SDR 24, effective September 2, 1982; 9
SDR 114, effective March 6, 1983.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-Reference: Computing the assistance payment under retrospective
budgeting after the initial one or two months (AFDC), 45 C.F.R. § 233.35(a).


161 67:12:06:41. Determining eligibility after initial month of assistance.
Continued eligibility for all factors shall be is determined both retrospectively and
prospectively. However, a A regular and periodic extra paycheck from a recurring source
shall be is considered retrospectively but not prospectively.

Source: 7 SDR 30, effective October 5, 1980; 7 SDR 66, 7 SDR 89, effective July
1, 1981; 8 SDR 125, effective April 4, 1982; 9 SDR 42, effective October 10, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References:
Determining Retrospective budgeting; determining eligibility after the initial
month one or two months, 45 C.F.R. § 233.26.
Determining eligibility prospectively for all payment months (AFDC), 45 C.F.R.
§ 233.33.
Definitions, § 67:12:06:33.

162 67:12:06:42. Penalty for terminating employment, reducing earned income,
and refusing offer of employment. If an applicant or recipient terminates employment,
reduces earned income, or refuses an offer of employment without good cause, the amount
of assistance shall be is computed without benefit of the disregards in §§ 67:12:05:14,
67:12:05:18, and 67:12:05:21. In addition, the The disregard in § 67:12:05:14 shall be is
counted as one of the four consecutive months in the limitation specified in subdivision
67:12:05:34(4).

Source: 8 SDR 125, effective April 4, 1982; 9 SDR 24, effective September 2,
1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References:
Penalty for terminating employment, reducing earned income, and for refusing an
offer of employment, 45 C.F.R. § 233.20(a)(11)(iii).
Good cause for terminating employment or reducing earned income, § 67:12:06:43.
Good cause for refusal to accept employment, § 67:12:06:44.

163 67:12:06:42.01. Penalty for terminating employment -- 1115 waiver group. If
an applicant is a parent caretaker relative, is assigned to the 1115 waiver group, and
terminates employment without good cause within the 60 sixty days preceding the date of
application, the assistance unit is ineligible for AFDC aid to families with dependent
children (AFDC) cash payments. The period of ineligibility is limited to a maximum of 90
ninety days from the date the employment was terminated.
If a recipient is a parent caretaker relative, is assigned to the 1115 waiver group,
and terminates employment without good cause, the assistance unit is ineligible for AFDC
cash payments. The period of ineligibility is limited to three payment months. The first
month of ineligibility is the first month after the notice requirements of chapter 67:12:02
are met.
In either case, the The length of the penalty expires if the parent caretaker relative
secures employment with comparable hours and earnings or is no longer living in the
home.
The A member of the assistance unit must make a new application for AFDC cash
benefits when the penalty period expires, the parent caretaker relative secures employment
with comparable earnings, or the parent caretaker relative is no longer living in the home.

Source: 20 SDR 196, effective May 23, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-1 28-6-1.

Cross-Reference: Assistance unit randomly assigned to groups, § 67:12:01:73. 164 67:12:06:42.02. Medicaid eligibility when employment terminated -- 1115
waiver group. An assistance unit which that is ineligible for AFDC aid to families with
dependent children (AFDC) under § 67:12:06:42.01 is eligible for Medicaid medicaid if,
except for the penalty for terminating employment, the assistance unit meets all other
AFDC eligibility requirements.

Source: 20 SDR 196, effective May 23, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-1 28-6-1.

165 67:12:06:43. Good cause for terminating employment or reducing earned
income. Good cause criteria for voluntarily leaving employment or reducing earned
income include the following is established if:
(1) Continued employment or continuing to work full-time presents work is a
hazard to the client's applicant's or recipient's health;
(2) The employer required the client applicant or recipient to relocate the client's
applicant's or recipient's residence to hold the job;
(3) The employer's conduct demonstrates demonstrated a substantial disregard of
the standards of behavior that the client applicant or recipient as an employee has a right to
expect of from the employer;
(4) The employer has breached or substantially altered the employment contract
for employment; and or
(5) While on layoff, a client the applicant or recipient accepted employment which
that the client applicant or recipient quit in order to return to work for the client's
applicant's or recipient's regular employer.

Source: 8 SDR 125, effective April 4, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References: Good cause for terminating employment or reducing earned
income, 45 C.F.R. § 233.20(a)(11)(iii)(A); Cross-Reference: Medical verification of
evidence supporting applicant's or recipient's inability to be employed, § 67:12:06:45. 166 67:12:06:43.01. Good cause for terminating employment -- 1115 waiver
group. In addition to the criteria established in § 67:12:06:43, good cause criteria for an
applicant or recipient who is part of the 1115 waiver group and who voluntarily terminates
employment include the following is established if:
(1) The employment was less than 20 twenty hours a per week at federal minimum
wage;
(2) Child care arrangements are not available;
(3) The employer discriminated against the applicant or recipient;
(4) Working conditions or demands from the employer make continued
employment unreasonable, such as working without being paid on time;
(5) The applicant or recipient accepted other employment with comparable salary
or hours;
(6) The applicant or recipient is enrolled in an approved training program that
requires the applicant or recipient to leave employment; and or
(7) After accepting employment, the employment did not materialize for a reason
beyond the control of the applicant or recipient or became unsuitable for one of the reasons
contained in § 67:12:06:44. The fact that the job did not materialize must have been
beyond the control of the applicant or recipient.

Source: 20 SDR 196, effective May 23, 1994.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-1 28-6-1.
167 Cross-References:
Federal minimum Minimum wage, 29 U.S.C. § 206(a)(1).
Approved training -- State JOBS participant, § 67:12:09:11.04.
Assistance unit randomly assigned to groups, § 67:12:01:73.

168 67:12:06:44. Good cause for refusal to accept employment. For purposes of
public assistance, good cause for refusing to accept employment shall be determined by the
department on the basis of the following criteria is established if:
(1) The individual is not physically or mentally capable of performing the work on
a regular basis;
(2) The offered wages, hours, or other work conditions of the work offered are
substantially less favorable than those applicable or prevailing found for similar work in
the locality;
(3) The position is vacant due directly to a strike, lockout, or other labor dispute;
(4) The individual is, as a condition of being employed employment, required to
join or to, resign from, or refrain from joining a labor organization; and or
(5) The total daily commuting time to and from home to the work site by available
transportation exceeds two hours by available transportation, exclusive of the time
necessary to transport children to and from a child care facility. If a longer commuting
distance and time is generally accepted common in the community, the round trip
commuting time may not exceed the generally accepted commuting time common in the
community standards.

Source: 8 SDR 125, effective April 15, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.

Cross-References: 169 Good cause for refusing employment, 45 C.F.R. § 233.20(a)(11)(iii)(B);.
Medical verification of evidence supporting applicant's or recipient's inability to be
employed, § 67:12:06:45.
170 67:12:06:45. Medical verification supporting applicant's or recipient's
inability to be employed. If an applicant or recipient indicates that the applicant or
recipient is unable an inability to accept employment or continue employment for physical
or mental health reasons, either physical or mental, the applicant or recipient is responsible
for obtaining must obtain a written statement completed and signed by a licensed or
certified physician, physician's assistant, nurse practitioner, psychologist, or a psychiatric
social worker which verifies the applicant's or recipient's inability to be employed accept or
continue employment.

Source: 8 SDR 125, effective April 4, 1982.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-4, 28-7-9 28-6-1.




171 CHAPTER 67:12:12
DEPENDENT CHILDREN FOSTER CARE

Section
67:12:12:01 Eligibility for AFDC aid to families with dependent children
foster care.
67:12:12:01.01 Department to develop plan for alternative care and services.
67:12:12:01.02 Termination of parental rights not deprivation.
67:12:12:02 Redetermination of deprivation for continued eligibility.
67:12:12:03 Repealed.
67:12:12:04 Periodic review of eligibility.
67:12:12:05 Foster care rates.
67:12:12:06 to 67:12:12:08 Repealed.


172 67:12:12:01. Eligibility for AFDC aid to families with dependent children
foster care. Applicants An applicant for AFDC aid to families with dependent children
(AFDC) foster care funds must shall meet the following criteria:
(1) The child must have been removed from the home of the child's parent, parents,
or specified relative, as provided in | § 67:12:01:27, as a result of court action which that
determined that being in the home was contrary to the child's welfare for any reason. A
child removed from the child's home as a result of court action must also meet the criterion
established in either (a) or (b) as follows. This subdivision applies only if the removed
child:
(a) The child was living Lived with a specified relative and was a recipient
of AFDC benefits during the month the court action was initiated, or would have been
eligible to receive AFDC benefits had an application been made; or
(b) The child not living Did not live with a specified relative during the
month of initial the court action must have been living was initiated, but lived with a
specified relative as defined in § 67:12:01:27 during at any period of time within six
months prior to the month of initial the court action was initiated. If the specified relative
requirement is met, the child must also meet all other eligibility requirements which that
would have been required during the month of initial court action;
(2) The child's placement and care has been designated by the court to be has
placed the care of the child under the charge of the department or any public agency with
which the department has an effective contract; and
(3) All other eligibility requirements pursuant to chapters 67:12:01, 67:12:04, and
67:12:05, and 67:12:09 related to need, deprivation, age, work incentive status, residency, 173 submission of social security number, and notification and referral to OCSE the Office of
Child Support Enforcement must be met.

Source: 2 SDR 74, effective May 13, 1976; 4 SDR 10, effective August 28, 1977;
4 SDR 60, effective March 26, 1978; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-1, 28-7-17 28-6-1.

Cross-Reference: AFDC foster care Foster care maintenance and adoption
assistance, 45 C.F.R. § 233.110.

174 67:12:12:01.01. Department to develop plan for alternative care and services.
When If a child has been is removed from the home of a specified relative as a result of a
court action, the department, or the a public agency under contract shall with the
department, must develop a plan for alternative care and services as follows. The plan
must:
(1) Making Make available emergency care for the child;
(2) Improving Improve conditions in the home from which the child was removed;
(3) Providing Provide for the placement and care of the child in another
departmentally approved home approved by the department; or
(4) Proceeding Proceed with plans for the adoption of the child.

Source: 4 SDR 60, effective March 26, 1978; 7 SDR 23, effective September 18,
1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-14, 28-7-17 28-6-1.

Cross-References:
Foster care maintenance and adoption assistance, 45 C.F.R. § 233.110(a).
Specific degree of relationship between child and parent or relative, § 67:12:01:27;
AFDC foster care, 45 C.F.R. § 233.110(a).

175 67:12:12:01.02. Termination of parental rights not deprivation. A court order
terminating parental rights shall not qualify as a deprivation factor as defined in chapter
67:12:01 is not considered deprivation of parental support or care pursuant to this article
for the purpose of establishing initial eligibility for AFDC aid to families with dependent
children foster care benefits.

Source: 4 SDR 60, effective March 26, 1978; 7 SDR 66, 7 SDR 89, effective July
1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-1 28-6-1.

176 67:12:12:02. Redetermination of deprivation for continued eligibility. In
making For the department to make a redetermination of deprivation of parental care or
support for the purpose of determining continued eligibility for AFDC aid to families with
dependent children (AFDC) foster care benefits, a recipient shall meet either of the
following requirements:
(1) The recipient must meet the eligibility criteria as established in chapter
67:12:01; or
(2) A court order has terminated parental rights during the period the recipient was
must be receiving AFDC foster care benefits upon the termination of parental rights.

Source: 2 SDR 74, effective May 13, 1976; 4 SDR 60, effective March 25, 1978; 7
SDR 66, 7 SDR 89, effective July1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-18 28-6-1.

Cross-Reference: Application, determination of eligibility and furnishing of
assistance -- When reconsidered or redetermined, 45 C.F.R. § 206.10(a)(9).

177 67:12:12:04. Periodic review of eligibility. Eligibility for AFDC aid to families
with dependent children foster care shall benefits must be reviewed as often as whenever
there is a change in circumstances dictate but not less than and at least every six months.

Source: 2 SDR 74, effective May 13, 1976; 7 SDR 66, 7 SDR 89, effective July 1,
1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-18 28-6-1.

Cross-Reference: Recipient to report change of circumstances, § 67:12:01:12.

178 67:12:12:05. Foster care rates. The department shall determine the standard rates
of payment for family foster care shall be determined by OCYFS in cooperation with the
office of assistance payments, pursuant to articles 67:12 and 67:14. The payments shall
must cover the cost of maintenance, such as food and its preparation, housing, clothing,
personal needs, allowances, and routine supervision. For short-term group home care and
family foster care, which may be less than a month, reimbursement shall must be prorated
according to days in placement. Group care rates shall must be determined by the
department. Such group rates shall and include maintenance and service costs.

Source: 2 SDR 74, effective May 13, 1976; 4 SDR 10, effective August 28, 1977;
4 SDR 60, effective March 26, 1978; 7 SDR 23, effective September 18, 1980; 7 SDR 66,
7 SDR 89, effective July 1, 1981.
General Authority: SDCL 28-7-2 28-6-1.
Law Implemented: SDCL 28-7-9 28-6-1.

Cross-Reference:
Reimbursement for family foster care, group care, residential treatment, and
intensive residential care treatment, § 67:14:31:26.



179 CHAPTER 67:12:15
DEPENDENT CARE
(Repealed or Transferred)
Section
67:12:15:01 Definition of dependent care services, Repealed.
67:12:15:02 Dependent care limits -- Caretaker relative in certain activities,
Repealed.
67:12:15:03 Repealed.
67:12:15:04 Required verification of dependent care costs -- Disregard from
earnings, Repealed.
67:12:15:05 Computing disregarded dependent care cost, Repealed.
67:12:15:06 Transferred.
67:12:15:07 Repealed.
67:12:15:08 Supplemental amount, Repealed.


180 67:12:15:01. Definition of dependent care services. Dependent care services
under this chapter are limited to those care services for a child or an incapacitated adult
necessitated by one of the following situations:
(1) The recipient caretaker relative is employed;
(2) The recipient caretaker relative is participating in JOBS training or a JOBS
training-related activity which is expected to last less than 30 days; or
(3) The recipient caretaker relative is participating under the provisions of
§ 67:12:21:08 in an activity other than employment which is expected to last less than 30
days.
The 30-day limit contained in subdivisions (2) and (3) of this section does not
apply when the dependent care services are for an incapacitated adult.
Dependent care services cover only those times during which the recipient
caretaker relative is unavailable to care for the child or incapacitated adult because of
employment, participation in JOBS training, participation in a JOBS training-related
activity, or participation in an activity other than employment under § 67:12:21:08.
Dependent care services include the time the child or incapacitated adult is in care while
the caretaker relative travels to and from the employment, training, or service site.
A JOBS-related activity includes job search services and job interviews Repealed.

Source: 9 SDR 24, effective September 2, 1982; 12 SDR 204, effective July 1,
1986; 13 SDR 141, effective April 5, 1987; 14 SDR 40, effective September 24, 1987; 17
SDR 8, effective July 23, 1990; 19 SDR 68, effective November 9, 1992; 21 SDR 172, 181 effective April 3, 1995; dependent care limits transferred to § 67:12:15:02, 22 SDR 70,
effective November 19, 1995; 22 SDR 188, effective July 8, 1996.
General Authority: SDCL 28-7-2.
Law Implemented: SDCL 28-7-4.

Cross-References:
Dependent care disregard from earnings -- Employed caretaker relatives,
§ 67:12:05:21.
Dependent care limits -- Caretaker relative in certain activities, § 67:12:15:02.
Definitions, § 67:12:09:00.
Approved training -- State JOBS participant, § 67:12:09:11.04.

182 67:12:15:02. Dependent care limits -- Caretaker relative in certain activities.
Dependent care payments under this section are limited to recipient caretaker relatives who
are participating in JOBS training, in a JOBS training-related activity, or in an activity for
the purpose of meeting the requirements of § 67:12:21:08. Unless the care is for an
incapacitated adult, the training or activity must be expected to last less than 30 days. A
participant under the state JOBS program must be under a training program approved by
either the department or DOL according to § 67:12:09:11.04. A participant under the tribal
JOBS program must be under a training program approved by the tribal JOBS office.
Dependent care payments are subject to the availability of funds.
The caretaker relative must provide verification of dependent care costs on a form
provided by the department. The provider and the caretaker relative must complete, sign,
and return the form to the department within the same time limits established for the
submission of the monthly report form. A form lacking the information needed to
determine the amount of allowable dependent care or missing any of the required
signatures is considered incomplete. Failure to return the form or submission of an
incomplete form affects only the dependent care allowance.
The amount recognized by the department is the actual cost incurred not to exceed
the lower of $1.50 an hour or $300 a month for the first child of a family and the lower of
$1.10 an hour or $220 a month for each additional child.
For families with more than one child under the age of one, child care costs
recognized by the department may not exceed the lower of $1.50 an hour or $300 a month
for each child under the age of one. 183 For a dependent child who is physically or mentally incapable of self-care, as
verified by a physician or licensed or certified psychologist, or for a child under court
supervision, as verified by the juvenile probation officer, child care service costs
recognized by the department are the actual costs incurred not to exceed the lower of $2
and hour or $400 a month for each child.
In no case may the department recognize more than 200 hours a month for each
child in care.
The department considers the child requiring the most child care service hours as
the first child in care.
Dependent care services recognized by the department are limited to those care
services provided for the care of a dependent child under age 13 or an incapacitated adult
who is living in the home and who is receiving AFDC or who would be receiving AFDC
except for the receipt of benefits under SSI or foster care under chapter 67:12:12.
Dependent care services may include care services for a dependent child age 13 or over if
the child is physically or mentally incapable of self-care, as verified by a physician or a
licensed or certified psychologist, or if the child is under court supervision, as verified by
the juvenile probation officer. Dependent care services do not include those care services
provided by the dependent child's parent, caretaker relative, legal guardian, or a member of
the AFDC assistance unit Repealed.

Source: 9 SDR 24, effective September 2, 1982; 9 SDR 42, effective October 10,
1982; 13 SDR 141, effective April 5, 1987; training requirements transferred from
§ 67:12:15:06, 14 SDR 40, effective September 24, 1987; 14 SDR 140, effective May 1, 184 1988; 15 SDR 67, effective November 6, 1988; 16 SDR 99, effective December 7, 1989;
17 SDR 8, effective July 23, 1990; 21 SDR 172, effective April 3, 1995; dependent care
limits transferred from § 67:12:15:01, 22 SDR 70, effective November 19, 1995; 22 SDR
188, effective July 8, 1996.
General Authority: SDCL 28-7-2.
Law Implemented: SDCL 28-7-4.

Cross-Reference: Completed monthly report form required, § 67:12:06:34.

185 67:12:15:04. Required verification of dependent care costs -- Disregard from
earnings. The actual dependent care costs of an employed caretaker relative must be
verified. Verification must be on a form provided by the department. The form must be
completed and signed by the provider. The form must be signed by the caretaker relative
and returned to the department within the same time limits established for the submission
of the monthly report form.
A form lacking the information needed to determine the amount of the dependent
care disregard or missing any of the required signatures is considered incomplete. Failure
to return the form or submission of an incomplete form affects only the dependent care
disregard Repealed.

Source: 9 SDR 24, effective September 2, 1982; 9 SDR 148, effective May 26,
1983; 14 SDR 40, effective September 24, 1987.
General Authority: SDCL 28-7-.
Law Implemented: SDCL 28-7-4.

Cross-References: Completed monthly report form required, § 67:12:06:34;
Dependent care disregard from earnings -- Employed caretaker relatives § 67:12:05:21.

186 67:12:15:05. Computing disregarded dependent care cost. For a recipient
caretaker relative who is employed full time throughout the budget month, the disregarded
dependent care cost is the amount actually paid by the caretaker, not to exceed $175 a
month for each dependent age two or over or $200 a month for each dependent under age
two.
For a recipient caretaker relative who is employed part time throughout the budget
month, the disregarded dependent care cost is the amount actually paid by the caretaker,
not to exceed $174 a month for each dependent age two or over or $199 a month for each
dependent under age two.
Charges for dependent care must include all costs associated with the care, such as
transportation, meals, and snacks furnished by the provider.
Dependent care services are limited to those care services provided for the care of a
dependent child or an incapacitated adult who is living in the home and who is receiving
AFDC.
Dependent care services do not include those care services provided by the
dependent child's parent or caretaker relative Repealed.

Source: 9 SDR 24, effective September 2, 1982; 9 SDR 46, effective October 1,
1982; 13 SDR 141, effective April 5, 1987; 14 SDR 40, effective September 24, 1987; 15
SDR 67, effective November 6, 1988; 16 SDR 99, effective December 7, 1989; 17 SDR 8,
effective July 23, 1990; 19 SDR 68, effective November 9, 1992; 22 SDR 70, effective
November 19, 1995.
General Authority: SDCL 28-7-2. 187 Law Implemented: SDCL 28-7-4.

Cross-Reference: Dependent care disregard from earnings -- Employed caretaker
relatives, § 67:12:05:21.

188 67:12:15:08. Supplemental amount. If the charges and actual amount paid for
dependent care services necessitated by the recipient caretaker relative's employment is
greater than the maximum dependent care disregard allowed in § 67:12:15:05, the
department shall pay a supplemental amount to the caretaker relative. To determine the
supplemental amount payable, calculate the dependent care payment using the written
verification method contained in § 67:12:15:02 and subtract the disregard allowed
according to § 67:12:15:05. The difference is the supplemental amount payable Repealed.

Source: 22 SDR 70, effective November 19, 1995.
General Authority: SDCL 28-7-2.
Law Implemented: SDCL 28-7-4.

Cross-Reference: Supplemental payment, 45 C.F.R. § 255.3(f)(2).


189 CHAPTER 67:12:18
UNEMPLOYED PARENT PROGRAM
(Repealed)

Section
67:12:18:01 Definitions, Repealed.
67:12:18:02 Unemployed parent program available to certain AFDC households,
Repealed.
67:12:18:03 Determination of principal wage earner, Repealed.
67:12:18:04 Criteria used to establish unemployment, Repealed.
67:12:18:05 Circumstances under which a PWE is not considered unemployed,
Repealed.
67:12:18:06 Initial eligibility, Repealed.
67:12:18:07 Continuing eligibility, Repealed.
67:12:18:08 Cash assistance limited -- Family continues to be eligible for
medical assistance, Repealed.
67:12:18:09 JOBS participation required before payment made, Repealed.
67:12:18:10 Sanctions for parents not cooperating with JOBS, Repealed.


190 67:12:18:01. Definitions. Terms used in this chapter mean:
(1) "Principal wage earner" or "PWE," an AFDC household's principal wage earner
determined under the provisions of § 67:12:18:03.
(2) "Unemployment insurance" or "UI," unemployment insurance benefits available
through the Department of Labor; and
(3) "Unemployed parent program" or "UPP," cash and medical assistance available
to certain AFDC households that have an unemployed parent Repealed.

Source: 17 SDR 53, effective October 16, 1990.
General Authority: SDCL 28-7-1.1, 28-7-2.
Law Implemented: SDCL 28-7-1.1, 28-7-2.

Cross-References: Unemployment benefits, SDCL ch 61-6; Unemployment
compensation, ARSD art 47:06.

191 67:12:18:02. Unemployed parent program available to certain AFDC
households. A dependent child who would be eligible for AFDC except that the child is
not otherwise deprived of parental support may be eligible for assistance under the
unemployed parent program if the unemployed parent determined by the department to be
the principal wage earner meets the requirements of this chapter Repealed.

Source: 17 SDR 53, effective October 16, 1990.
General Authority: SDCL 28-7-1.1, 28-7-2.
Law Implemented: SDCL 28-7-1.1, 28-7-2.

Cross-Reference: Definition of dependent child, SDCL 28-7-1.

192 67:12:18:03. Determination of principal wage earner. The parent who earned the
most gross income in the 24 months immediately preceding the month of application for
UPP is the principal wage earner. This applies regardless of when the relationship between
the two parents began.
If the applicant cannot secure the evidence needed by the department to determine
which parent is the PWE or if the earned income of both parents is equal, the department
shall designate the PWE based on the best evidence available.
The parent designated as the PWE remains the PWE throughout the period of UPP
eligibility, including the period of continued medical assistance under § 67:12:18:09
Repealed.

Source: 17 SDR 53, effective October 16, 1990.
General Authority: SDCL 28-7-1.1, 28-7-2.
Law Implemented: SDCL 28-7-1.1, 28-7-2.

193 67:12:18:04. Criteria used to establish unemployment. The PWE is considered
unemployed if one of the following exists:
(1) The PWE will be employed less than 100 hours in the payment month; or
(2) The PWE will be employed more than 100 hours in the payment month but was
employed for less than 100 hours in the two months immediately preceding the payment
month and will be employed for less than 100 hours in the month following the payment
month Repealed.

Source: 17 SDR 53, effective October 16, 1990.
General Authority: SDCL 28-7-1.1, 28-7-2.
Law Implemented: SDCL 28-7-1.1, 28-7-2.

194 67:12:18:05. Circumstances under which a PWE is not considered unemployed.
A PWE is not considered unemployed in any of the following situations:
(1) The PWE is participating in a labor dispute;
(2) The PWE's conduct has resulted or would result in disqualification for UI
benefits under the provisions of article 47:06 and SDCL chapters 61-6 and 61-7; or
(3) The PWE has been or would be disqualified for UI benefits because of the
existence of other circumstances determined under the provisions of article 47:06 and
SDCL chapters 61-6 and 61-7 Repealed.

Source: 17 SDR 53, effective October 16, 1990.
General Authority: SDCL 28-7-1.1, 28-7-2.
Law Implemented: SDCL 28-7-1.1, 28-7-2.

195 67:12:18:06. Initial eligibility. For initial eligibility for UPP, the unit must meet the
other AFDC requirements in this article except for the deprivation factor and the PWE
must meet the following criteria:
(1) The PWE must have been unemployed for at least 30 days preceding receipt of
UPP benefits. The first day of the 30-day period begins with the first day of the calendar
month in which the PWE was employed less than 100 hours;
(2) The PWE has not, without good cause, refused an offer of employment within
the 30 days preceding receipt of UPP benefits;
(3) The PWE applied for and has accepted UI benefits;
(4) The PWE received or was qualified to receive UI benefits in the year preceding
application for UPP, or the PWE has 6 or more quarters of work in a period of 13 calendar
quarters which ended in the year preceding application; and
(5) The PWE is available for employment.
Unemployment benefit determinations are made by the Department of Labor under
the provisions of article 47:06 and SDCL chapters 61-6 and 61-7.
For purposes of this rule, a calendar quarter of work is a period of three consecutive
calendar months in which an individual either received earned income of not less than $50
or participated in JOBS. The calendar quarters are January 1 through March 31, April 1
through June 30, July 1 through September 30, and October 1 through December 31
Repealed.

Source: 17 SDR 53, effective October 16, 1990; 17 SDR 153, effective April 16,
1991. 196 General Authority: SDCL 28-7-1.1, 28-7-2.
Law Implemented: SDCL 28-7-1.1, 28-7-2.

Cross-References:
Deprivation of parental support or care by reason of continued absence from the
home, § 67:12:01:29.
Deprivation of parental support or care by reason of physical or mental incapacity of
a parent, § 67:12:01:39.
Incapacity based on blindness or visual impairment -- Medical findings required,
§ 67:12:01:62.
Dependent children of unemployed parents, 45 C.F.R. § 233.101.
Criteria used to establish unemployment, § 67:12:18:04.

197 67:12:18:07. Continuing eligibility. For continuing eligibility for UPP, the unit
must meet the following conditions:
(1) The unit must continue to meet the requirements of this chapter;
(2) The unit must continue to meet the other AFDC eligibility requirements in this
article;
(3) The PWE must apply for UI benefits at any time the benefits are available;
(4) The PWE must continue to be available for employment and, except for JOBS
participation, may not be involved in any other activity that would restrict the PWE's
availability to accept employment; and
(5) The PWE has not, without good cause, refused an offer of employment within
the 30 days preceding receipt of UPP benefits Repealed.

Source: 17 SDR 53, effective October 16, 1990; 17 SDR 153, effective April 16,
1991.
General Authority: SDCL 28-7-1.1, 28-7-2.
Law Implemented: SDCL 28-7-1.1, 28-7-2.

Cross-References:
Assistance applicants and eligibility, ch 67:12:01.
Limitations on real property, ch 67:12:04.
Limitations on personal property, ch 67:12:05.
Budgeting, ch 67:12:06.
Protective, vendor, or two-party payments, ch 67:12:08. 198 Job opportunities and basic skills, ch 67:12:09.
Dependent care, ch 67:12:15.
Dependent children of unemployed parents, 45 C.F.R. § 233.101.

199 67:12:18:08. Cash assistance limited -- Family continues to be eligible for
medical assistance. A family may not receive UPP cash assistance for more than 6 out of
12 months, including the current payment month. A family continues to be eligible for
medical assistance when the time limit for receiving UPP cash assistance expires as long as
the conditions of this chapter continue to be met Repealed.

Source: 17 SDR 53, effective October 16, 1990.
General Authority: SDCL 28-7-1.1, 28-7-2.
Law Implemented: SDCL 28-7-1.1, 28-7-2.

200 67:12:18:09. JOBS participation required before payment made. Before cash
assistance is mailed to the family, each parent must have met the JOBS participation
requirements. If either has not met the JOBS participation requirements, the department
shall apply the sanctions contained in § 67:12:18:10 before payment is made. Payment
made by the department to eligible family members shall be mailed on the last working
day of the month Repealed.

Source: 17 SDR 53, effective October 16, 1990.
General Authority: SDCL 28-7-1.1, 28-7-2.
Law Implemented: SDCL 28-7-1.1, 28-7-2.

Cross-Reference: JOBS participation requirements, ch 67:12:09.

201 67:12:18:10. Sanctions for parents not cooperating with JOBS. Sanctions
applied for refusing to participate in JOBS or refusing to accept employment shall be
applied for the UPP payment month. If one parent is sanctioned for not cooperating with
JOBS, the second parent is also sanctioned even if the second parent is exempt from JOBS
participation. If the second parent is participating in JOBS, the sanction is applied only
against the parent who is not cooperating Repealed.

Source: 17 SDR 53, effective October 16, 1990.
General Authority: SDCL 28-7-1.1, 28-7-2.
Law Implemented: SDCL 28-7-1.1, 28-7-2.

Cross-References: Refusal to participate in JOBS or accept employment,
§ 67:12:09:10; Subsequent eligibility, § 67:12:09:11.