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Montana Administrative Register Notice 37-612 No. 22   11/23/2012    
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BEFORE THE DEPARTMENT OF PUBLIC

HEALTH AND HUMAN SERVICES OF THE

STATE OF MONTANA

 

In the matter of the amendment of ARM 37.70.406, 37.70.408, and 37.70.601 pertaining to annual update to LIEAP

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO:  All Concerned Persons

 

            1.  On December 13, 2012, at 1:30 p.m., the Department of Public Health and Human Services will hold a public hearing in Room 207 of the Department of Public Health and Human Services Building, 111 North Sanders, at Helena, Montana, to consider the proposed amendment of the above-stated rules.

 

2.  The Department of Public Health and Human Services will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice.  If you require an accommodation, contact Department of Public Health and Human Services no later than 5:00 p.m. on December 6, 2012, to advise us of the nature of the accommodation that you need.  Please contact Kenneth Mordan, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; telephone (406) 444-4094; fax (406) 444-9744; or e-mail dphhslegal@mt.gov.

 

3.  The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

 

            37.70.406  INCOME STANDARDS  (1)  Households with one through seven members with annual gross income at or below 60% of the estimated state median income for federal fiscal year (FFY) 2012  2013 are eligible for low income energy assistance on the basis of income.  Households with eight or more members are eligible for low income energy assistance on the basis of income only if the household's annual gross income is at or below 150% of the 2011 2012 U.S. Department of Health and Human Services poverty guidelines for a household of that size.  Households with annual gross income above the applicable income standard are ineligible for low income energy assistance, unless the household is automatically financially eligible for LIEAP benefits as provided in ARM 37.70.402 because all members of the household are receiving SSI, TANF-funded cash assistance, or county or tribal general assistance.

            (2) remains the same.

            (3)  The table of income standards for households of various sizes for the 2012 2013 heating season may be accessed at the department's web site at www.dphhs.mt.gov, or a copy may be obtained from the Department of Public Health and Human Services, Human and Community Services Division, Intergovernmental Human Services Bureau, P.O. Box 202956, Helena, MT 59620.

            (4)  Households at or below 60% of the estimated state median income amount for FFY 2012 2013 for the household's size are eligible for LIEAP client education and outreach activities.

 

AUTH:  53-2-201, MCA

IMP:     53-2-201, MCA

 

            37.70.408  RESOURCES  (1) through (3) remain the same.

            (4)  In state fiscal year 2012 2013, a household will be eligible if its total countable nonbusiness resources do not exceed $10,089 10,392 for a single person, $15,137 15,591 for two persons, and an amount equal to $15,137 15,591 plus $1,009 1,039 for each additional household member, up to a maximum of $20,182 20,786 per household.  In addition, the household may have business assets whose equity value does not exceed $25,000.

            (5) remains the same.

 

AUTH:  53-2-201, MCA

IMP:     53-2-201, MCA

 

            37.70.601  BENEFIT AWARD  (1) through (1)(b) remain the same.

            (c)  The following table of base benefit levels takes into account the number of bedrooms in a house, the type of dwelling structure, and the type of fuel used as a primary source of heating:

 

TABLE OF BENEFIT LEVELS

 

            (i)  SINGLE FAMILY

 

 

# BEDROOMS

NATURAL GAS

 

ELECTRIC

 

PROPANE

 

FUEL OIL

 

WOOD

 

COAL

 ONE

   $  395

   $  596

 $  946

$1,209

$  540

$  365

 TWO

       575

       866

  1,375

  1,757

    786

    531

 THREE

       783

    1,180

  1,874

  2,394

 1,070

    723

 FOUR

    1,077

    1,624

  2,578

  3,294

 1,473

    995

 

 

# BEDROOMS

NATURAL GAS

 

ELECTRIC

 

PROPANE

 

FUEL OIL

 

WOOD

 

COAL

 ONE

   $  473

   $  896

 $  1,165

$1,804

$  678

$  674

 TWO

       688

    1,302

     1,694

  2,623

    986

    980

 THREE

       937

    1,775

     2,308

  3,574

 1,343

 1,335

 FOUR

    1,289

    2,441

     3,176

  4,917

 1,848

 1,836

 

 

            (ii)  MULTI-FAMILY

 

# BEDROOMS

NATURAL GAS

 

ELECTRIC

 

PROPANE

 

FUEL OIL

 

WOOD

 

COAL

 ONE

   $  334

   $  504

 $  800

$1,285

$  456

$  308

 TWO

       503

       759

  1,205

  1,935

    687

    464

 THREE

       739

    1,114

  1,768

  2,839

 1,008

    682

 FOUR

       863

    1,301

  2,066

  3,317

 1,178

    796

 

 

# BEDROOMS

NATURAL GAS

 

ELECTRIC

 

PROPANE

 

FUEL OIL

 

WOOD

 

COAL

 ONE

   $  400

   $  758

 $  985

$1,918

$  573

$  569

 TWO

       602

    1,141

  1,484

  2,888

    862

    857

 THREE

       884

    1,674

  2,178

  4,238

 1,265

 1,258

 FOUR

    1,033

    1,956

  2,544

  4,951

 1,478

 1,469

 

 

            (iii)  MOBILE HOME

 

 

# BEDROOMS

NATURAL

GAS

 

ELECTRIC

 

PROPANE

 

FUEL OIL

 

WOOD

 

COAL

 ONE

  $   333

 $   502

   $  797

 $1,068

$  455

$ 308

 TWO

       487

      734

    1,165

   1,561

    666

   450

 THREE

       646

      973

    1,545

   2,070

    882

   596

 FOUR

       721

   1,086

    1,724

   2,310

    985

   666

 

 

# BEDROOMS

NATURAL

GAS

 

ELECTRIC

 

PROPANE

 

FUEL OIL

 

WOOD

 

COAL

 ONE

  $   399

 $   755

   $  982

 $1,594

$  571

$ 568

 TWO

       583

   1,104

    1,436

   2,330

    835

   830

 THREE

       772

   1,463

    1,903

   3,089

 1,107

1,101

 FOUR

       862

   1,633

    2,124

   3,448

 1,236

1,228

 

            (d) through (2) remain the same.

 

AUTH:  53-2-201, MCA

IMP:     53-2-201, MCA

 

            4.  STATEMENT OF REASONABLE NECESSITY

 

The Department of Public Health and Human Services (the department) is proposing the amendment of ARM 37.70.406, 37.70.408, and 37.70.601 pertaining to Low Income Energy Assistance Program (LIEAP).  LIEAP is a federally funded program to help low income households pay their home heating costs.  The department proposes to make the following changes to its administrative rules governing LIEAP.

 

ARM 37.70.406

 

Because LIEAP is a needs-based assistance program, only households with income and assets below specified limits are eligible to receive LIEAP benefits.  ARM 37.70.406 contains the maximum income standards used to determine eligibility for LIEAP.  These income standards are computed as a specified percentage of the federal poverty guidelines (FPG) issued annually by U.S. Department of Health and Human Services (HHS).  The standards currently in ARM 37.70.406 are based on the HHS poverty guidelines for 2011.

HHS updates the poverty guidelines each year to take into account increases in the cost of living.  It has been the long-standing practice of the department to amend ARM 37.70.406 annually to provide that the updated version of the poverty guidelines will be used to set the income standards and benefit amounts for the current heating season.  The department uses the updated version of the guidelines because they are usually higher than the guidelines for the previous year.  If the department did not use the updated guidelines, some households might be ineligible for benefits or receive a smaller benefit due to inflationary increases in the household's income which do not reflect an increase in actual buying power.  Thus, ARM 37.70.406 is now being amended to provide that the 2012 rather than the 2011 poverty guidelines will be used for the 2012-2013 heating season.

 

ARM 37.70.408

 

In determining eligibility for LIEAP, the department considers not only income but also assets (known as "resources") the household has that can be used to pay heating costs.  ARM 37.70.408 specifies the rules relating to resources.  ARM 37.70.408(4) currently specifies the maximum amount of nonbusiness resources that households of varying sizes can have and still qualify for LIEAP in state fiscal year 2012.  ARM 37.70.408(5) provides that the dollar limits on nonbusiness resources will be revised annually to adjust for inflation, so it is necessary to amend ARM 37.70.408(4) to increase the dollar amounts for fiscal year 2013.  ARM 37.70.408(5) specifies that the revised nonbusiness resource limits will be computed by multiplying the current dollar limits by the percentage increase in the national consumer price index (CPI) for the previous calendar year or by 3%, whichever is less.  The increase in the CPI for calendar year 2011 was 3.2%, so the dollar amounts in ARM 37.70.408(4) would increase by 3% from FY 2012 to 2013.  Therefore, in accordance with the formula provided in ARM 37.70.408(5), ARM 37.70.408(4) must be amended to increase the maximum amounts of nonbusiness resources a total of 3% from FY 2012 to FY 2013.

 

ARM 37.70.601

 

ARM 37.70.601 governs the computation of benefits for eligible households.  ARM 37.70.601(1)(a) provides that an eligible household's benefit is computed by multiplying the applicable amount in the table of benefits in ARM 37.70.601(1)(c) by the applicable multiplier from the table of income/climatic adjustment multipliers in ARM 37.70.601(1)(d).  The benefit amounts in ARM 37.70.601(1)(c) vary based on the type of heating fuel the household uses and the type and size of the household's dwelling.  The benefit amounts also take into consideration available funding and the number of households expected to receive benefits in a given heating season.  The benefit amounts in the tables are being revised based on estimates of the amount of funds available to pay LIEAP benefits for the 2012-2013 heating season as well as fuel cost projections and an estimate of the number of households that will apply and be found eligible for LIEAP for the 2012-2013 heating season.  The revised benefit amounts in ARM 37.70.601(1)(c) for 2012-2013 are based on the department's estimate that 24,000 households will qualify for LIEAP benefits for the current heating season and based on the department's estimates of the federal LIEAP funds it will receive.

 

Fiscal Impact

 

LIEAP is 100% federally funded.  Congress has not yet appropriated funds for LIEAP for the 2012 - 2013 heating season, but based on the information available at this time the department estimates that Montana will receive LIEAP funds of approximately $19.9 million for the current heating season.  This compares to LIEAP funding of $19.9 million for the 2011-2012 heating season.  Benefit levels for households using all types of heating fuel and for all dwelling types will comparable to the 2010-2011 heating season.  It is estimated that 24,000 households will qualify for LIEAP benefits this year, which is comparable to last year.

 

            5.  The department intends the proposed rule changes to be applied effective October 1, 2012.  A retroactive application of the proposed rule does not result in a negative impact to any affected party.

 

            6.  Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing.  Written data, views, or arguments may also be submitted to: Kenneth Mordan, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; fax (406) 444-9744; or e-mail dphhslegal@mt.gov, and must be received no later than 5:00 p.m., December 21, 2012.

 

7.  The Office of Legal Affairs, Department of Public Health and Human Services, has been designated to preside over and conduct this hearing.

 

8.  The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  Such written request may be mailed or delivered to the contact person in 6 above or may be made by completing a request form at any rules hearing held by the department.

 

9.  An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register.  The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered.  In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

 

10.  The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

 

 

 

/s/ Barbara B. Hoffman                               /s/ Anna Whiting Sorrell                            

Rule Reviewer                                             Anna Whiting Sorrell, Director

                                                                      Public Health and Human Services

           

Certified to the Secretary of State November 13, 2012.

 

 

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