Determining eligibility. Income restrictions.

(a) Definitions. As used in this section, the following terms shall have the following meanings: (1) "Applied income" means the portion of the counted income of a person or needs group that remains after subtracting applicable deductions, as described in subsection (e) of this section; (2) "Earned income" means income that a person receives (A) from a third party in exchange for the performance of duties, or (B) through self-employment, and may be in the form of wages, salary, benefits or proceeds from self-employment, but does not include income derived from renting property; (3) "Gross income" or "gross counted income" means a person's or needs group's counted income prior to subtracting applicable deductions, as described in subsection (e) of this section; (4) "Income in kind" means goods, commodities or services, valued according to their fair market value, that are provided to a person or to a third party on such person's behalf in lieu of cash that is owed to such person; (5) "Personal employment expenses" means costs incident to being employed, including, but not limited to, the cost of transportation, parking, professional licensure and certification, tools and a uniform or other work-appropriate clothing; and (6) "Unearned income" means income that does not constitute compensation for work, services performed or business conducted and includes returns from capital investments and the rent of property when the person is not actively involved in the production of the income. (b) Income limits. (1) No person who belongs to a needs group consisting of one person shall be eligible for assistance pursuant to SAGA if such needs group has monthly (A) gross income that exceeds three hundred per cent of the maximum SSI benefit for an individual who has no income and lives alone, or (B) applied income that is equal to or exceeds the applicable payment standard for such person, as described in subsection (b) of section 17b-198-10 of the Regulations of Connecticut State Agencies. (2) No person who belongs to a needs group that includes his or her spouse shall be eligible for assistance pursuant to SAGA if such needs group has monthly (A) gross income that exceeds six hundred percent of the maximum SSI benefit for a married couple, or (B) applied income that is equal to or exceeds the applicable payment standard for such person, as described in subsection (b) of section 17b-198-10 of the Regulations of Connecticut State Agencies. (c) Counted income. (1) Subject to the provisions of subsections (f) to (s), inclusive, of this section, income that is not excluded under subsection (d) of this section shall be included among the counted income of such person and the needs group to which he or she belongs for purposes of calculating the gross income and applied income of such person and needs group. An assistance unit member shall, as a condition of eligibility for assistance pursuant to SAGA, cooperate with the department in verifying all counted income of such member and the needs group to which he or she belongs. Such cooperation shall be provided at the time of application, during each renewal of eligibility and whenever such income changes. (2) Counted income shall be treated as such only in the month received and as a counted asset each subsequent month to the extent retained. (d) Excluded income. The following income shall be excluded from the counted income of such person and the needs group to which he or she belongs if the source of the income is verified: (1) Any federal, state or local adoption assistance payment; (2) Any federal, state or local assistance payment for the care of a foster child who is placed in the care of such person (3) Any supplemental food assistance received under the Child Nutrition Act of 1966, Public Law 89-642, as amended by Public Law 92-433, or assistance provided pursuant to the special food service program for children under the National School Lunch Act of 1946, Public Law 79-396, as amended by Public Law 93-150; (4) The value of allotments made under SNAP; (5) Not more than thirty dollars per calendar quarter that is received as a gift to commemorate a special occasion or is otherwise distinguishable from income due to its infrequent or irregular receipt; (6) Income in kind; (7) Any payment received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended from time to time; (8) Any federal, state or local payment made under a means-tested energy assistance program; (9) Any money received as a protective payee for another person pursuant to SAGA or a program administered by the Social Security Administration, provided such money is used exclusively for such other person's support; (10) Any payment made to such person by the department for the expense of day care or essential services unless such person is the provider of such day care or services; (11) Any payment received as a volunteer under Title I of the Domestic Volunteer Service Act of 1973, Public Law 93-113, as amended from time to time, unless such payment is equal to or greater than the minimum wage in effect under the Fair Labor Standards Act of 1938, as amended from time to time, or the state minimum wage, whichever is greater; (12) Any disaster assistance paid under the Disaster Relief Act of 1974, Public Law 93-288, as amended from time to time, including the individual and family grant program administered by the Federal Emergency Management Agency, and comparable disaster assistance provided by states, local governments and private organizations; (13) Any payment made to such person by the Department of Labor to offset the cost of pursuing employment; (14) Any security deposit returned to such person; (15) Any portion of a grant, loan, scholarship or work-study payment that is provided to an undergraduate student by the federal government, a state government or any private source and is intended for books, tuition or fees, but not any portion intended for food, shelter, clothing or transportation, provided such student (A) verifies his or her status as a student, (B) verifies that the portion to be excluded is intended for a purpose warranting exclusion, and (C) maintains or is able to identify the portion to be excluded separate from other counted income and counted assets; (16) Any benefit received from the Puerto Rico nutrition assistance program; (17) Any payment received as earned or unearned income under the Workforce Investment Act of 1998, Public Law 105-220, as amended from time to time; and (18) Notwithstanding the provisions of subsection (l) of this section, Aid and Attendance pension benefits paid to such person by the United States Department of Veterans Affairs. (e) Income deductions. For purposes of calculating the applied income of a needs group, the department shall make the following deductions from the gross counted income of such needs group if the applicability of such a deduction is verified: (1) Up to one hundred fifty dollars for personal employment expenses shall be deducted from the gross earned income of each person in such needs group who is employed full or part time, except that no such deduction shall be made in any month during which a person fails to report his or her income within ten days of receipt of such income; (2) Business expenses, including overhead expenses such as rent, fuel, utilities and equipment, the cost of stock and raw materials and payments to or on behalf of employees, shall be deducted from the gross earned income derived from such business for any person in such needs group who is self-employed; (3) The following expenses associated with renting real or personal property shall be deducted from gross unearned income derived from renting such property, provided that no such deduction shall be made for any expense associated with a portion of real property occupied by a member of such needs group: (A) The cost of labor, including wages paid to employees or money paid to independent contractors; (B) Interest on the principal of a loan used to purchase such property; (C) Insurance premiums; (D) Taxes, assessments and the cost of utilities paid for such property; (E) Service and repair of such property; (F) Rental of business equipment and property used in connection with such property; (G) The cost of advertising such property; (H) The cost of any licenses or permits necessary for such property; (I) Any legal or other professional fees incurred in connection with the acquisition or rental of such property; and (J) Business supplies used in connection with the rental of such property; (4) For income derived from providing a room without board, the costs associated with operating and maintaining the residence shall be deducted from such income after prorating such costs according to the number of bedrooms rented for such purpose; (5) For income derived from providing room and board, one of the following shall be deducted: (A) The cost of a Thrifty Food Plan for a SNAP assistance unit of a size that is equal to the number of boarders involved; or (B) An amount calculated by adding the actual cost of providing a room, as described in subdivision (4) of this subsection, and meals if (i) such amount is greater than the cost permitted as a deduction pursuant to subparagraph (A) of this subdivision, and (ii) such actual costs are separate and identifiable as the costs of providing room and meals to the boarders. (f) Intermittent income. (1) For purposes of this subsection, "intermittent income" means money received on a recurring, sporadic basis in intervals exceeding one month, and includes both earned and unearned income. Such income includes, but is not limited to: (A) Payment of money earned by a person over a past period that exceeds one calendar month; (B) Advance payments that are made pursuant to a contract for expected future expenses, provided such payments are made in intervals exceeding one month; (C) Payments made in intervals exceeding one month due to an agreement between a payor and payee, such as, but not limited to, money paid due to a settlement with an insurer and payment of dividends and interest or from a pension or annuity; and (D) Compensation for sporadic, short-term employment. (2) Each payment of intermittent income shall be divided by the number of months for which such payment is intended to compensate, reimburse or otherwise be applied and the resulting amount shall be treated as counted income for each such month. Intermittent income intended to compensate, reimburse or otherwise be applied during past months shall be treated as counted income in such months retroactively. Whenever treating intermittent income as counted income retroactively results in an assistance unit's ineligibility for assistance pursuant to SAGA for a month during which such assistance was previously paid, such previous payment of assistance shall be treated as an overpayment, as described in section 17b-198-17 of the Regulations of Connecticut State Agencies. (g) Lump-sum payments. Any lump-sum payment shall be treated as a counted asset, rather than as counted income, of the person receiving such payment and the needs group to which he or she belongs. For purposes of this subsection, "lump-sum payment" has the same meaning as provided in subsection (j) of section 17b-198-8 of the Regulations of Connecticut State Agencies. (h) Housing subsidies. (1) For purposes of this subsection, "housing subsidy" means housing assistance provided pursuant to Section 8 of the Housing Act of 1937, as amended from time to time, or the state rental assistance program established pursuant to section 8-345 of the Connecticut General Statutes, or in federal low-income public housing. (2) Any housing subsidy provided to an assistance unit member shall be treated as the counted unearned income of such member and the needs group to which he or she belongs. Such subsidy shall be valued according to an amount equal to eight per cent of the appropriate payment standard for such member, as determined under the provisions of subsection (b) of section 17b-198-10 of the Regulations of Connecticut State Agencies. (i) Alimony and child support. Any alimony payment received by a person shall be treated as the counted unearned income of such person and the needs group to which he or she belongs. Any arrearage of child support received by a person shall be treated as a lump-sum payment pursuant to subsection (g) of this section if received in a lump sum, and as the counted unearned income of such person if received in routine, periodic installments. The provisions of this subsection concerning child support arrearages shall apply regardless of whether such arrearage is paid directly to the person entitled to such arrearage or to the department's Bureau of Child Support Enforcement. (j) Annuities, pensions, trusts, dividends, royalties and interest. (1) Any payment received by a person from an annuity plan, pension or trust, or as interest, a dividend or a royalty, shall be treated as the counted unearned income of such person and the needs group to which he or she belongs. (2) When a payment from a trust, annuity or pension is received on a recurring basis less frequently than monthly, each payment received shall be averaged forward over the number of months that transpire between such payments in order to calculate the monthly gross counted income of such member and needs group. (3) Whenever an interest payment or a payment from a trust, dividend or royalty could be paid to a person but instead is left to accumulate with existing principal or is reinvested, the amount of the payment that could have been made shall be treated as the counted income of such person and the needs group to which he or she belongs in the month first payable, and shall be treated as a counted asset each month thereafter. (k) Public assistance from other states. Any public assistance paid by another state to a person during any month in which the application for assistance pursuant to SAGA is pending shall be treated as the counted unearned income of such person and the needs group to which he or she belongs. (l) Social Security and veterans' benefits. Any Social Security survivor or retirement benefits or veterans' benefits issued by the United States Department of Veterans Affairs that are paid to a person shall be treated as the counted unearned income of such person and the needs group to which he or she belongs. (m) Uniformed services pay. Any money paid to a person as compensation for service in the uniformed services, including, but not limited to, the United States Army, Navy, Air Force, Marine Corps, Coast Guard and Public Health Services, shall be treated as the counted earned income of such person and the needs group to which he or she belongs. The provisions of this subsection shall apply to money paid to a person as a dependent's allotment of compensation earned by another person for service in the uniformed services, but such compensation shall be counted as unearned income. (n) Cash contributions. Any cash contribution paid to a person by a relative, friend, agency or organization shall be treated as the counted unearned income of such person and the needs group to which he or she belongs if such contribution is made regularly and predictably, exceeds thirty dollars in a calendar quarter and is not legally required. Any such cash so received that is subject to a repayment agreement shall be treated as a loan, as described in subsection (p) of this section, rather than a cash contribution. (o) Gratuities and special allowances. (1) If a person's compensation for employment involves receipt of a gratuity and such person is able to distinguish such gratuity from other earned wages, the actual amount of such gratuity shall be treated as the counted earned income of such person and the needs group to which he or she belongs. If such person is unable to distinguish such a gratuity from other earned wages, an amount equal to fifteen per cent of such person's monthly gross wages attributable to the job for which a gratuity was earned shall be treated as the counted earned income of such person and the needs group to which he or she belongs. (2) If a person's compensation for employment includes a special allowance for items such as, but not limited to, uniform cleaning and meals, and such allowance is provided in addition to basic wages, such special allowance shall be treated as the counted earned income of such person and the needs group to which he or she belongs. (p) Loans. (1) For purposes of this subsection, "loan" means any money paid by a person or organization to another person or organization that is subject to repayment pursuant to a written contract or agreement. (2) Any loan received by a person in one lump sum shall be treated as a counted asset, rather than the counted income, of such person and the needs group to which he or she belongs. Any loan received by a person in regular installments, including money derived from a reverse mortgage or home equity conversion plan, shall be treated as the counted unearned income of such person and the needs group to which he or she belongs in the month received, but shall be treated as a counted asset each following month to the extent retained. (3) Any money received by a person as repayment of a loan provided by such person shall be treated as a counted asset of such person and the needs group to which he or she belongs to the extent such money represents a repayment of loan principal. Any money paid to a person who provided a loan that constitutes interest or a penalty on such loan, or that otherwise represents a gain or profit, shall be treated as the counted unearned income of such person and the needs group to which he or she belongs in the month received, and as a counted asset each following month to the extent retained. (q) Connecticut Uniform Relocation Assistance Act. Any payment received by a person pursuant to the Connecticut Uniform Relocation Assistance Act, section 8-266 of the Connecticut General Statutes, et seq., shall be treated as excluded income to the extent that such payment is maintained or can be identified separate from other funds and used for the purposes for which such payment was made, and shall otherwise be treated as a lump sum payment, as described in subsection (g) of this section. (r) Cashed-in fringe benefits, unemployment compensation, workers' compensation and severance pay. Any money received by a person as compensation for use of accrued sick or vacation time or severance pay shall be treated as the counted earned income of such person and the needs group to which he or she belongs. Any unemployment compensation, workers' compensation or reimbursement pursuant to a private insurance policy for lost wages and other expenses due to injury or sickness shall be treated as the counted unearned income of such person and the needs group to which he or she belongs. (s) Room and board. Any money received by a person for providing room or room and board shall be treated as earned income derived from self-employment. The monthly amount of income derived from such self-employment shall be determined by dividing the total amount received on an annual basis by twelve, unless this calculation does not accurately reflect current circumstances or such income is only intended to cover the assistance unit's needs for a portion of the year.