2250 Living With Specified Relative

To be eligible for AFDC assistance, a dependent child must meet the "living with specified relative" requirement. This requirement involves the following two factors:

1. The child's "relative" must be in one of the degrees of relationship outlined in FA 2251, and
2. The child must be "living with" such relative in his/her home as defined in FA 2252.

Both of the above conditions must exist in order for the child to meet the "living with specified relative" requirement. When both of these conditions exist, then the relative with whom the child is living is referred to as the child's specified relative.

2251 Degrees of Relationship

The dependent child must be living with a relative who is in one of the following degrees of relationship to the child:

1. A blood or adoptive relative who is within the fifth degree of kinship. Such relatives by degree of kinship are as follows:

1st degree - Parent.

2nd degree - Grandparent, sibling.

3rd degree - Great-grandparent, uncle, aunt, nephew, niece.

4th degree - Great-great-grandparent, great-uncle, great-aunt, first cousin.

5th degree - Great-great-great-grandparent, great-great-uncle, great-great-aunt, first cousin once removed (i.e. the child of one's first cousin).

Half relationships will be considered the same as full relationships.

2. Step father, step mother, step brother, step sister.
3. Spouses of any persons named in the above groups. Such relatives may be considered within the scope of this provision though the marriage is terminated by death or divorce.

Relationship must be verified by birth certificates, baptismal records, Bureau of Vital Statistics Records, other authentic documents, or by written statement of a collateral which provides conclusive evidence that the relative is so related to the dependent child.

The dependent child must reside with the relative in his/her home. For purposes of the "living with specified relative" requirement, a home is defined as the family setting maintained or in the process of being established, as evidenced by the assumption and continuation of responsibility for the day to day care of the child by the relative. A home exists so long as the relative exercises responsibility for the care and control of the child, even though the child or the relative is temporarily absent from the customary family setting.

A child is considered to be "living with" the relative even though:

1. He is under the jurisdiction of a court (receiving probation services or protective supervision).
2. Legal custody is held by an agency or individual that does not have physical possession of the child.
3. He is in institutional residence as defined in Section 2252.1.

It should be noted that a child may reside in the same physical dwelling unit as a relative within one of the degrees of relationship but not be living in that relative's home as defined above. If the relative does not exercise care and responsibility for the child, then the child is not considered to be "living with" that relative and therefore, such relative would not be the child's specified relative. In addition, if a child resides in a dwelling unit separate from that of the relative who is exercising care and responsibility, the child is not considered to be "living with" such relative since he does not reside with him/her unless the absence from the relative's home is of a temporary nature.

When the child(ren) resides in a home where both parents are absent, the agency will set no pre-conditions upon the child's reason for living in the home or the applicant's purpose for electing to exercise care and responsibility for the child.

The presence of the child in the home of the specified relative must be verified by the Service Representative during the application process. When a child is residing in an institution, his presence will be verified by correspondence. The case narrative will reflect by name the presence of each child in the home and how this fact was verified.

The requirement that a child must be residing in the home of a specified relative in order to qualify for AFDC does not preclude the possibility of a child receiving assistance while residing in a public or private institution.

Assistance may be granted or continued to the assistance unit in behalf of a child in an institution for education, treatment, observation, or emergency care (such as the State School for the Blind, State School for the Deaf, Arkansas Children's Colony, private boarding school, vocational school, Jobs Corps training facility or college) provided the child spends the weekends and/or vacations in the home of the specified relative and provided the specified relative continues to exercise responsibility for the care of the child.

A child committed by court order to a training school or other penal institution or to the State Hospital is not eligible for financial assistance while in the institution whether the offense is criminal or non-criminal.

The "living with specified relative" requirement will be considered to be met even if the child or the specified relative is temporarily absent from the customary family setting. There is no maximum time period under which an absence can be considered to be temporary. However, the expected length of the absence should be, in the worker's best judgment, a reasonable period given the nature of the absence. For example, a child visiting another relative during the summer months but who will return to the home of the specified relative before school starts again can be considered temporarily absent. Another example of a temporary absence would be the hospitalization of the child or the specified relative.

A child or a specified relative absent from the home to attend educational or training programs will be considered temporarily absent as long as he/she intends to return to the home upon completion of the program.

During a period of temporary absence from the home, the needs of an otherwise eligible child or specified relative will be included in the budget.

An AFDC payee must meet the following requirements:

1. Such person must be at least 18 years of age or emancipated if below the age of 18 (Refer to FA 2253.1); and
2. Such person must reside with the dependent child(ren).

Except in unusual situations and situations in which the dependent child's parent is an un-emancipated minor, the AFDC payee will be the specified relative. In un-emancipated minor parent cases, the payee should be the person living in the home who exercises responsibility for the minor parent. There may be some unusual situations, particularly due to the Standard Filing Unit provision, in which the AFDC payee will not be the specified relative to all of the children included in the budget. In such a situation, the payee selected should be the specified relative to at least one of the children. The case record should be carefully documented in terms of the "living with specified relative" requirement for each child and should clearly reflect who each child's specified relative is, if not the payee.

In cases in which it is determined that the specified relative has mismanaged the AFDC check, then a protective payee for the relative should be selected according to FA 2640.

Emancipation is legally defined as "The act by which one who was un-free, or under the power and control of another, is rendered free or set at liberty and made his own master."

The term as used here relates to the emancipation of a minor child by his parents or other individuals who have been acting as his parents. This involves an entire surrender of the right to the care, custody, and earnings of such child as well as a renunciation of parental duties.

An emancipated minor is one who has been given the right by a court to manage his own affairs or one who has acquired emancipation by common law.

1. Judicial Emancipation - -

A judicially emancipated minor is one who has been given the right by a court to manage his own affairs.

2. Common law Emancipation - -

A common law emancipated minor has also been given the right to manage his own affairs. Common law emancipation may be express, as by voluntary agreement of parent and child, or implied from such acts and conduct as import consent (i.e., has established a separate household or, if living in the parents' household, is actually paying an equal share of the total household expenses for all family members).

In relation to common law emancipation of a child under 18, it is important to note that the fact that a voluntary agreement to emancipation exists between parent and child may not impart emancipation. If the child is not actually responsible for and managerial of his own affairs as expressed by the agreement, emancipation does not exist.

The emancipation of a minor is revocable if the minor again becomes dependent upon and responsible to his parents, or other individuals who have acted or are acting as his parents. This applies to any type of emancipation. Therefore, emancipation status must be determined based on the actual current circumstances without regard to what has transpired in the past.

As a condition of eligibility, an individual cannot be participating in a strike on the last day of any month for which AFDC payment is made. In addition, participation in a strike does not constitute good cause to leave, or to refuse to seek or accept employment.

The effect of an individual's participation in a strike on the assistance unit's eligibility is as follows:

1. If the striker is the child(ren)'s parent, then the assistance unit is totally ineligible for AFDC.
2. If the striker is a dependent child, or a relative other than a parent, then his/her needs may not be included in determining eligibility or grant amount.

The purpose of Project SUCCESS is to provide Job Opportunities and Basic Skills Training (JOBS) to members of AFDC families so that they may become self-sufficient through unsubsidized employment. New Hope, a part of Project SUCCESS, provides services and assistance to teen parents to enable them to obtain the education required to become productive citizens. (For New Hope referral procedures, refer to FA 2277).

All AFDC applicants and recipients, including children, are automatically registered in the Project SUCCESS program by virtue of the signed AFDC application form, DCO-95. Recipients who do not meet any of the specified criteria for exemption are generally required to participate in Project SUCCESS as a mandatory condition of AFDC eligibility. Certain exempt recipients who wish to participate in the program may do so on a voluntary basis. Applicants will not be referred to Project SUCCESS until the application has been approved. Teen parents will be required to participate in New Hope unless determined to be exempt. (See FA 2273-2273.8 for determining PS status and who to refer to PS.)

Project SUCCESS is designed to improve the chances of employability of AFDC recipients through concentrated efforts in immediate and continuous job search activities. The Project SUCCESS activities include Job Search, Job Club, Work Experience, Education, Training and On the Job Training. These activities will be available to all AFDC recipients referred to Project SUCCESS.

Unless determined exempt according to FA 2273.1, both parents in an AFDC-UP family (Categories 70 and 71) are required to participate in Project SUCCESS.

One of the parents must participate for a total of at least 16 hours per week in work experience or on-the-job training. If such parent is under age 25 and does not have a high school diploma or equivalency, he/she may be required to participate in educational activities in lieu of work experience or on-the-job training.

If one of the parents fails to participate without good cause and the other parent is not a PS participant, then both parents will be sanctioned and only the needs of the children will be included in the assistance unit (Refer to FA 2274).

Project SUCCESS participation is not required for any member during the time the case is in AFDC-UP Medicaid Only (category 72) status. However, a category 72 individual may volunteer for Project SUCCESS participation.

To ensure proper implementation of the Project SUCCESS program, responsibilities for both Income Maintenance and Project SUCCESS staff are provided in the following sections.

The specific responsibilities of the Service Representative are as follows:

1. Explain the Project SUCCESS program, including New Hope and AFDC-UP participation requirements, if appropriate, to mandatory and exempt individuals. A pamphlet entitled "Project SUCCESS Participant's Handbook" should be given to the applicant or recipient during the interview.
2. Determine which persons included in the AFDC unit at application and at case review are required to participate in Project SUCCESS and New Hope, which are exempt from participation and want exemption, and which are exempt from participation but wish to participate as a volunteer.
3. Document via Form DCO-1401 that the Project SUCCESS program, including New Hope, if appropriate, has been explained to the applicant or recipient and inform mandatory participants in writing that failure to participate will mean that their needs will not be included in the AFDC unit or that the case will be closed.

The Service Representative will complete and review the DCO-1401 (AFDC Notice of Project SUCCESS Determination) with the applicant or recipient. The completed original of the form will be provided to the client and a copy filed in the AFDC case record.

4. Inform each person subject to the Project SUCCESS or New Hope participation requirements of his right to an administrative hearing to contest the decision that he be required to participate or the decision to close the AFDC case/drop his needs because he has not participated in the Project SUCCESS Program as required.
5. Refer to the Project SUCCESS Unit all recipients for whom referral has been determined appropriate. (See FA 2273.8 for who to refer to Project SUCCESS) Referrals will be system generated based on the individual's Project SUCCESS status code entered to WAFM. The status codes are located in the EMS User's Manual.
6. Inform recipients determined to be exempt from Project SUCCESS participation that they must report changes, which would affect their exempt status, to the Service Representative responsible for eligibility determination.
7. Refer all recipients determined to be exempt from Project SUCCESS participation, due to incapacity, for Rehabilitation Services on Form DHS-3300.
8. Complete re-determinations of the Project SUCCESS status of AFDC recipients at least every six months and whenever a change occurs which will affect the Project SUCCESS status. A re-determination due to the loss of exempt status between reevaluations may be delayed until the next regularly scheduled reevaluation (see FA 2273.6).
9. Notify the Project SUCCESS staff by memorandum or Form DCO-1410 of changes in the participant's circumstances which may affect participation and which are not entered to the ACES System. (The system will generate a change report to PS on changes entered to ACES, e.g., address or name changes.)
10. Re-determine eligibility and re-compute the budget when a Project SUCCESS participant begins regular employment or a salaried Project SUCCESS component and show the grant savings resulting from the employment on Form DCO-56 to be entered to the ACES System.
11. Within ten (10) days of the Economic Services Supervisor/Designee approving a sanction request, the Service Representative must send a DCO-1 advising the AFDC recipient of the proposed sanction.
12. Apply the penalties when a person determined to be a mandatory Project SUCCESS or New Hope participant refuses to participate without good cause.

The Project SUCCESS staff is responsible for carrying out the policies and procedures of the Project SUCCESS Program including the New Hope component. These generally include:

1. Accept system-generated referrals from the Service Representative.
2. Complete an assessment and develop an employability plan.
3. Assist to develop, arrange, and/or provide support services necessary to enable the participant to accept employment, training, or work experience.
4. Inform the Service Representative of changes in the circumstances of the Project SUCCESS participant which will affect the AFDC payment.
5. Establish job banks for unsubsidized jobs and for work experience worksites.
6. Provide services of the Project SUCCESS Program, such as: job club, job search, orientation, and work experience.
7. Provide information to interested employers on the availability of tax credits for hiring welfare recipients.
8. Provide information to potential employers regarding the Arkansas Project SUCCESS Program.
9. Determine and notify the Income Maintenance Unit when a participant has failed/refused to participate without good cause.

The Income Maintenance and Project SUCCESS units will work together to ensure that each AFDC recipient receives all appropriate services and assistance for which he/she may be eligible so that the family may become self-sufficient. Specifically, the IM and PS workers will coordinate activities to help a working recipient meet child care costs either through direct payment to the child care provider or the use of the child care deduction in the AFDC budget (Refer to FA 2365.5). Depending upon the individual case circumstances, one method of meeting the child care expense may be more beneficial to the family than another method would be. Therefore, the IM and PS workers will work together to determine the most beneficial method and to help the client make an informed decision regarding child care expenses.

In counties where the AFDC and Project SUCCESS Family Support Specialist is the same individual, he or she will be responsible for the tasks and duties outlined in FA 2272.1 - 2272.3. In this situation, though, it will not be necessary to complete a DCO-1410 to communicate information or action taken between the AFDC and PS cases unless a sanction is being imposed. The caseworker will indicate the information and take any necessary action in the appropriate case record(s).

Ex. Ms. Doe reported to the PS Family Support Specialist that she has moved. The PS Family Support Specialist is also Ms. Doe's AFDC Family Support Specialist. A DCO-1410 will not be completed in this instance. The Family Support Specialist will make the change of address in the AFDC case and document the change in both cases.

If a sanction for non-compliance with PS is being applied, a DCO-1410 will be completed to obtain the ES Supervisor's approval. Once approved, a copy of the DCO-1410 will be filed in the AFDC case record and appropriate action to impose the sanction taken. Documentation of the action taken on both cases will be included on the DCO-1410.

The Service Representative must determine the Project SUCCESS status of every person included in an AFDC/AFDC-UP unit. These persons will be determined to be: (1) exempt from participation requirements; (2) exempt from participation requirements but wishing to volunteer to participate; (3) non-exempt from participation requirements, i.e. mandatory participant; or (4) a mandatory or voluntary participant in the New Hope component. Target group status as outlined in FA 2273.7 must also be determined prior to referring persons to Project SUCCESS. Referrals will be made as outlined in FA 2273.8.

A person included in an AFDC/AFDC-UP unit may be exempt from Project SUCCESS or New Hope participation for any one of the reasons set out below when the reason for exemption is verified. A person determined to be exempt from Project SUCCESS may participate as a volunteer rather than be considered exempt if this is his/her choice and, if in Category 20 or 21, s/he meets target status as outlined in FA 2273.7. Any person determined to be exempt from the New Hope component, or who is in Category 70 or 71 (UP), may participate as a volunteer if this is his/her choice regardless of target status.

If there are two or more assistance units receiving AFDC in one household, each assistance unit will have the Project SUCCESS exemption criteria applied separately. When more than one of the exemptions apply to an individual, only the exemption appearing first in the following list which applies to the individual will be used.

The reasons for exemption are:

1.  A child, including a minor parent, under age 16.

NOTE: In Arkansas Welfare Demonstration Project (AWDP) counties which operate a New Hope program, this exemption does not apply to minor parents under age 16 except those assigned to the AWDP control group. (Refer to FA 10130.)

2.  A parent or other eligible specified relative of a child under age one who is caring for the child with only very brief and infrequent absences from the child. The child under the age of one need not be in the unit. The term "brief and infrequent absences" is defined to include (a) irregular and unpredictable absences of any duration, and (b) recurring and scheduled absences of 15 hours per week or less.

NOTE: This exemption does not apply to the following persons:

1. The "principal wage earner" (PWE) in an AFDC-UP case.
2. A parent age 16 through 19 who has not yet obtained a high school diploma or equivalency. If this would be such a parent's only exemption, then the parent will be required to participate in the New Hope program (Refer to FA 2277).
   

3.  A parent, who is not the PWE in an AFDC-UP case, or other eligible specified relative of a child under age 6 unless the state guarantees child care and requires no more than 20 hours of participation per week. This exemption will be determined by the Project SUCCESS Case Manager. If a parent or other relative of a child under age 6 is not exempt for another reason, the Service Representative will make a mandatory referral to Project SUCCESS. If child care is not available, the Case Manager will notify the Service Representative in writing (DCO-1410 or memorandum) that the participant is "Exempt - child care is not available." The Service Representative will document the case record and update the person's PS status code on ACES to reflect the exemption

4.  A person who is currently employed and is working or is expected to work an average of not less than 30 hours per week in unsubsidized employment. To be considered employed, the person must receive some type of pay, either in cash or in-kind, for the work performed.

NOTE: A person who was referred to Project SUCCESS as a mandatory participant cannot be exempted due to employment if he becomes employed while in Project SUCCESS. This employment becomes the participant's participation requirement. This is true if the job is found as a direct result of Project SUCCESS participation or if the client found the job on his own.

5.  A person who is 60 years or older.

6.  A person who lives in a location which is so remote from a Project SUCCESS program or activity that effective participation is precluded. The person is considered remote if a round trip of more than 2 hours, exclusive of time necessary to transport children to and from a child care facility, would be required for a normal work or training day. However, if normal round trip commuting time in the area is more than 2 hours, then the round trip commuting time will not exceed the generally accepted community standards. It should be noted that the lack of transportation does not constitute remoteness in and of itself. To be considered remote, the person must still live in a location which, if transportation were available, would require more than 2 hours round trip commuting time.

NOTE: If the PWE in an AFDC-UP case is exempted from PS participation due to remoteness, then he must register with the local Employment Security Division (ESD) office and provide verification of such registration.

7.  A child, including a minor parent, age 16 or 17 who is attending an elementary, secondary, vocational or technical school on a full-time basis as defined by the school. A child is considered in regular attendance in the months of official school or training program vacation provided he/she was attending when the vacation began and plans to return when school resumes. In addition, a child is considered in regular attendance during any period of temporary absence due to illness, family emergency, etc.

The Service Representative will verify attendance at case re-evaluation with school officials or interview the child if school is not currently in session.

NOTE: A person who is attending school full-time as a result of Project SUCCESS or New Hope participation cannot be exempted due to school attendance.

8.  A person who is incapacitated with a medically determined physical or mental impairment which, by itself or in conjunction with age, prevents the individual from engaging in employment or training under the Project SUCCESS Program, and which is expected to exist for a continuous period of at least six months.

9.  A person who has an illness or injury verified by a physician which temporarily prevents his entering employment or training. This exemption will not exceed 180 days and should be reviewed for possible determination as "incapacity."

10.  A person, otherwise non-exempt, whose presence is required in the home (on a substantially continuous basis) to aid in the care of another member of the household with a medically determinable condition. The presence of the person as a caretaker is required when the medical conditions of the other household member does not permit self-care. The duration of this exemption may vary from three months to long-term, depending upon the particular case. Persons exempt under the provision of "needed in the home" will be required to participate when no longer needed in their caretaker role.

11.  A woman who is in at least her 4th month or 2nd trimester of pregnancy. Medical verification is required prior to allowing this exemption.

12.  A full-time volunteer serving under the Volunteers In Service To America (VISTA) program.

For active cases, all medical exemptions must be cleared by the Service Representative within 30 days from the date the recipient was notified to verify the information. If the recipient does not verify the exemption within the 30 days, then he will be referred to Project SUCCESS as a mandatory participant. Such person may be exempted from participation after referral if the medical verification is later received.

For applications, all medical exemptions must be cleared by the Service Representative. If verification of the medical exemption has not been received by the 25th day from the date of application, advance notice advising of delay will be sent to the applicant. If after the advance notice period, verification of the medical exemption has not been received, the person will be referred to the Project SUCCESS Unit as a mandatory participant upon certification of the application.

Exemption of an AFDC applicant/recipient from the Project SUCCESS Program on the basis of incapacity must be substantiated by medical documentation. The Service Representative is responsible for securing necessary medical documentation when incapacity is claimed by the applicant/recipient or suspected by the Project SUCCESS staff. The Project SUCCESS Program will not pay for a medical examination.

The incapacity exemption must be cleared by the Service Representative prior to referral to Project SUCCESS if the applicant/recipient claims incapacity during the interview. If the applicant/recipient claims incapacity after referral or the PS staff suspect incapacity, the Service Representative still has responsibility for clearing the claimed exemption upon notification from the PS staff.

Types of Medical Verification include (not all inclusive):

1. Psychiatric examination stating that the applicant/recipient is not able to accept full-time employment.
2. Physician or clinic statement completed by a physician stating that an applicant/recipient is not able to accept full-time employment.
3. Forms DCO-109 or DCO-109A completed by the Medical Review Team.
4. Statement of disability completed by Rehabilitation Services when a recipient is accepted by Rehabilitation Services. Additional medical evidence necessary to substantiate the disability may be obtained from Rehabilitation Services, if necessary.
5. Verification from SSA that the person is receiving Social Security benefits or SSI due to his/her disability.

Each case record must fully support the decision on participation status/ exemption and indicate that each person who is referred to Project SUCCESS understands the significance of the action (the completed DCO-1401 will serve this purpose.) Allowed exemptions will be documented in the case record on Form DCO-96. The appropriate PS Status Code will be shown on the DCO-56 to be entered to the ACES System. (Refer to the EMS Users Manual for the PS codes.)

The client or Project SUCCESS staff may disagree with the determination by the Service Representative that the person does not meet the exemption criteria. These specific disagreements will be handled as follows:

1. The Service Representative will tell all applicants that they have the right to an administrative hearing through the regular agency hearing procedures to contest a determination that they should be required to participate because they do not meet the criteria for exemption.
2. If an individual protests a determination that he does not meet the criteria for exemption due to illness, injury, or incapacity, that individual will be considered exempt for no more than 30 days to give him time to obtain medical information substantiating his exempt status.
3. If, after referral to the Project SUCCESS Program, the mandatory participant is believed to be exempt by a member of the Project SUCCESS staff, the Project SUCCESS Program staff will state the reason(s) in writing to the Service Representative and request a review of the Project SUCCESS status of the individual. The Service Representative must review the status of the individual and send a written report (Form DCO-1410 or memorandum) to the Project SUCCESS staff within 30 days stating the decision on the Project SUCCESS status of the person. If it is determined that the person is exempt, then at the time of the determination, the Project SUCCESS Status code will be updated on WAFM to reflect the current reason for exemption.

If it is determined that the person is not exempt, or the participant did not provide verification of exempt status, then the Service Representative will advise the Project SUCCESS Staff that the participant will continue as a mandatory participant.

The client will be allowed only one 30 day period after AFDC approval to verify the same medical exemption claim. For example, an applicant claims a medical exemption and is provided time to verify it prior to certification but does not. The application is certified with the client referred to PS as a mandatory participant. The client than alleges the same medical exemption to the PS Case Manager who notifies the Service Representative. The client will be allowed a 30 day period to verify the claim but if s/he does not verify it during that time, s/he will not be allowed additional 30 day periods for the same allegation. At the end of the 30 days, the Service Representative will notify the PS Case Manager that the medical verification has not been provided and that the client continues to be a mandatory participant. The client may provide the medical verification at any time after that but s/he will not be allowed another 30-day non-participation period to do so.

The Service Representative will review the status of all exempt persons at each reevaluation and should be particularly alert to changes which may have occurred since certification or the last reevaluation, e.g., the time period for an exemption due to illness has elapsed, the youngest child reaches age 1, etc. Medical exemptions should be carefully reviewed in terms of the continuing existence of the condition on which the exemption is based. If the most recent medical documentation does not clearly establish that the condition is of an on-going nature, then additional documentation will be obtained.

If an age 16 or 17 child is exempted due to school attendance, the Service Representative must verify the child's attendance at case reevaluation with school officials or interview the child as to his intent to return to school if school is not currently in session. If the child does not intend to return to school, the child will be referred as a mandatory participant unless he/she meets one of the other exemption criterion.

Persons who are no longer exempt and who fall into one of the target groups listed in FA 2273.7 will be referred to the PS Unit via a system generated referral as mandatory participants. To generate the referral, the person's Project SUCCESS Status Code on WAFM will be updated to reflect mandatory participation status. The reason for exemption for persons who remain exempt will be documented in the case record. If the reason for exemption has changed or an otherwise mandatory participant does not meet target group status, then the Project SUCCESS Status code on WAFM must be updated to reflect the current reason for exemption/non-referral.

When an exempt individual loses his/her exemption status between reevaluations, the re-determination of status and referral to Project SUCCESS, if appropriate, may be delayed until the next regularly scheduled case reevaluation. The printout entitled "AFDC Children Who Will Be Reaching Ages 1, 6, 16, & 18" is generated and sent to county offices in the month preceding the month in which the birthdays occur. If the exemption re-determination for a case listed on the printout is delayed until the next reevaluation, the case may be cleared from the Pending Case Action file with an "F" code.

Prior to referring a participant to Project SUCCESS, it must be determined whether the individual falls into a Project SUCCESS target group. For AFDC-Regular (categories 20 & 21) non-New Hope participants, only those who are determined to be in a target group will be referred to Project SUCCESS for participation. This applies equally to AFDC-Regular mandatory and voluntary individuals.

Both mandatory and voluntary AFDC-UP and New Hope participants will be referred for participation regardless of target status. However, the Service Representative should still determine target status for UP and New Hope individuals and document the case record accordingly.

The target groups, as defined by federal regulations, are as follows. (The number shown in parentheses following each group is the group number for federal reporting purposes.) If an individual falls into more than one group, s/he will be assigned to the group appearing first in the following list.

1. The youngest child included in the AFDC case is 16 or 17 years old. (Group #2)
2. The participant is a parent under age 24 who has not completed a high school education or equivalency and, at the time target status is being determined, is not enrolled in high school or an equivalency course of instruction. (Group #3)
3. The participant is a parent under age 24 who has little or no work experience in the preceding year. "Little" work experience is defined as having been employed a total of 60 or less calendar days during the previous 12 months. A partial day will be considered a day for this purpose. (Group #4)
4. The participant has received AFDC in any state for any 36 of the preceding 60 months. To be considered to have "received AFDC", the person's needs must have been included in the assistance unit. The client's statement regarding the number of months received and/or receipt of assistance in another state may be accepted. (Group #5)

Once an individual is determined to belong in one of the above target groups, subsequent changes in circumstances will not affect the person's target status for as long as the individual continues to participate in Project SUCCESS. Therefore, target status will not be re-determined for as long as the person is participating in Project SUCCESS. If, though, a person terminates PS participation, (e.g. AFDC case closes or the person's needs are removed from the unit) but is later referred to Project SUCCESS, then target status will be re-determined prior to referral.

Target group status for persons who do not fall into a target group (i.e. non-target) will be re-determined at each subsequent AFDC reevaluation for as long as the person remains non-targeted.

The following persons will be referred to Project SUCCESS for participation:

1. All AFDC-Regular (categories 20 & 21) persons who are mandatory targeted participants (i.e. non-exempt and fall into one of the target groups 2 - 5).
2. All AFDC-Regular (Categories 20 & 21) persons who are exempt but wish to volunteer for participation and who fall into one of the target groups 2-5.
3. All mandatory and voluntary New Hope participants regardless of target status.
4. All AFDC-UP (categories 70 & 71) persons who are mandatory or voluntary participants regardless of target status.
5. Any AFDC-UP Medicaid Only (category 72) person who was participating in Project SUCCESS while in UP Grant status (category 70) and who wishes to volunteer for Project SUCCESS when the case converts to category 72.

Referrals to Project SUCCESS will be system generated based on the person's Project SUCCESS Status code on ACES.

Refusal to participate can occur if the participant refuses or fails without good cause: to accept assigned employment or an employment appointment; to accept a bona fide offer of employment; to accept work experience; to honor Project SUCCESS scheduled activities related to orientation, job club, job search, testing, other training and skill development activities, or to accept suitable child care which meets the required standards, and as a result, is unable to participate in Project SUCCESS activities. Refusal to participate also occurs when a participant terminates employment without good cause.

The Project SUCCESS staff (with the Economic Services Supervisor's approval) is responsible for making the decision regarding refusal to participate without good cause. The PS staff will notify the Service Representative in writing (memorandum or Form DCO-1410) of the participant's refusal to participate without good cause and identify the component to which he was assigned.

When the written request for sanction is received from the PS staff indicating the participant has refused to participate, the Service Representative will take the following actions:

1. For voluntary participants who continue to meet the criteria for exemption, consider the person exempt from Project SUCCESS/New Hope requirements and update the person's Project SUCCESS status code on WAFM to reflect the exemption.
2. For mandatory participants:

1. Apply the AFDC sanction for refusal to participate (Refer to FA 2274.3).
2. If the individual also receives Food Stamps:

1. Insure that appropriate action regarding the sanction is taken on the Food Stamp case in accordance with Food Stamp Certification policy FSC 3521; or
2. Notify the Food Stamp worker via Form DCO-85 (Information/ Change Transmittal), or other county office system, that a sanction has been imposed in the AFDC case.

It is the responsibility of the Project SUCCESS staff and Economic Services Supervisor to determine good cause prior to approving a sanction request. An individual is considered to have good cause for refusing to participate if:

1. The person is ill, incapacitated or age 60 or older.
2. No means of transportation to and from the job site can be arranged for the individual.
3. The individual's presence is required in the household on a continual basis because of illness or incapacity of a member of the household.
4. The working conditions would be a risk to the person's health or safety.
5. The worksite is available because of a labor dispute.
6. The individual was subjected to discriminatory practices in terms of age, sex, race, religion, handicap or ethnic origin by his/her employer or supervisor.
7. The individual is the parent or other relative personally providing care for a child under age 6 and the employment would require such individual to work more than 20 hours a week.
8. The individual must have child care or daycare for an incapacitated person living in the home, and such care is not available and the State agency fails to provide such care.
9. A net loss of cash income is experienced by the participant's family as a result of accepting the job.

A Project SUCCESS participant, for whom a determination has been made for refusal to participate, will have the right to apply for an Administrative Hearing through the regular appeal process (Refer to FA policy #9300).

Upon notification from the Project SUCCESS staff that a mandatory participant has refused to participate, without good cause, the Service Representative will apply the sanction for such refusal as follows:

1. If the person is an adult, or a teen parent, assistance for such person will be dropped/denied, and his needs will not be included in the AFDC unit. If such person is the parent of a dependent child included in the unit, then his income and resources will continue to be included in determining eligibility and grant amount. The standard earned income deductions, exclusions, if appropriate, and child care will be allowed from such person's earned income.

If the person is the casehead, then a protective payee to receive the grant on behalf of the family will be found. The sanctioned adult may remain as the payee while the search for a protective payee continues and/or if a suitable protective payee cannot be found. (Refer to FA 2640-2642)

2. If the sanctioned person is a parent in an AFDC-UP case and the other parent is not a Project SUCCESS participant (i.e. has not been referred for participation), then the needs of the second parent as well as the sanctioned parent will not be included in the assistance unit. Only the needs of the children will be included. The income and resources of both parents will continue to be included in determining eligibility and grant amount. The standard earned income deductions, exclusions, if appropriate, and child care will be allowed from the earned income of both parents.

If the other parent in an AFDC-UP case is a Project SUCCESS participant, then the needs of that parent will continue to be included in the assistance unit even though one parent is sanctioned.

3. If the person is the only dependent child in the unit, the AFDC case will remain open if the child's parent or other specified relative is included in the unit. The parent or specified relative who is included will receive assistance for his needs only. The income and resources of the dependent child who was sanctioned will continue to be counted in the budget although his needs will be removed from the budget. The standard earned income deductions, exclusions, if appropriate, and child care will be allowed from the earned income of the dependent child.

If the sanctioned child is the only person included in the unit, then the AFDC case will be closed/denied.

4. If the person is one of several dependent children in the unit, assistance for such child will be dropped/denied, and his needs will be excluded from the AFDC unit. If such child is an otherwise required member of the unit due to the Standard Filing Unit provision, then his income and resources will continue to be included in determining eligibility and grant amount for the remaining members of the unit. The standard earned income deductions and exclusions, if appropriate, will be allowed from such person's earned income. If such child is not an otherwise required member of the unit, then his income will be considered only to the extent it is actually made available to the remaining members of the unit.

The sanction for refusal to participate will be taken and remain in effect for the time periods described below:

1. First Refusal

For a first refusal to participate, the sanction may be prevented prior to the grant being affected, or may be ended at any time.

To prevent the sanction, the participant must contact the Service Representative and state his willingness to participate. This may occur during the 10-day advance notice period to impose the sanction, or outside the 10 day notice period but prior to the first day of the payment month in which the grant amount paid will be affected by the sanction. If the participant states he is willing to participate to prevent the sanction, he will be referred to the PS Case Manager who will complete an employability plan update and instruct the participant as to what action he must take in order to prevent the sanction. The Case Manager will then inform the Service Representative in writing to either apply the sanction or not apply it. It should be noted that, even if the client prevents the sanction from being applied, this is still considered a first refusal to participate. The next refusal will be treated as a second refusal to participate.

If the sanction has already been imposed (i.e. at least one payment month's grant has been affected by the sanction), the client may end the sanction at any time by submitting an DCO-95 and stating his willingness to participate.

2. Second Refusal

For a second refusal to participate, the sanction will be imposed for a minimum of three consecutive calendar payment months. The participant will not be given the opportunity to prevent the sanction prior to the grant being affected. However, the client will still have the right to apply for an Administrative Hearing.

In order to be added to the AFDC unit after the three-month period has expired, the sanctioned person must state his willingness to participate and a new DCO-95 must be completed and submitted.

3. Third and Subsequent Refusals

For a third and subsequent refusals to participate, the sanction will be imposed for a minimum of six consecutive calendar payment months. The participant will not be given the opportunity to prevent the sanction prior to the grant being affected. However, the client will still have the right to apply for an Administrative Hearing.

In order to be added to the AFDC unit after the six month period has expired, the sanctioned person must state his willingness to participate and a new DCO-95 must be completed and submitted.

For a first sanction which has continued for 3 months, or for a second sanction, the Service Representative will send a notice to the client in the 3rd month notifying him of what actions he must take in order to be added back to the unit. For a six-month sanction, the Service Representative will send such notice in the third month notifying the client that he may be added back to the unit at the end of the six-month period. Form DCO-1424, "Project SUCCESS Participation Notice", will be used for this purpose. No further action by the Service Representative is required unless the client responds to the notice and wishes to be added back to the unit.

A mandatory participant who has been sanctioned for refusal to participate may not be re-referred to the Project SUCCESS Unit for participation until the appropriate sanction period has elapsed. In addition, the person must state that he is now willing to participate and submit a new DCO-95. A re-referral may be made during the last month of the sanction period so that the person's needs may be reflected in the grant paid in the first payment month following the last sanction month.

When a sanctioned person states that he is now willing to participate and wishes to be included in the AFDC unit, Form DCO-1401 will be completed. The participation status shown on the form will be "Previously sanctioned - Now willing to participate - Mandatory participation." The referral to Project SUCCESS will be system generated when the person is opened on the ACES System (WAFM).

A voluntary participant who has been determined to have refused to participate may be re-referred to Project SUCCESS/New Hope at any time if it is his/her first refusal. For subsequent refusals, the participant may not be re-referred to Project SUCCESS/New Hope for 12 consecutive calendar months. However, there is no effect on the AFDC grant during that time.

Any change in a participant's circumstances which will change the participation status of the person or have some bearing upon participation must be reported to the PS staff. The following types of changes will be reported to the PS staff via the system when ACES is updated to reflect the change.

1. Changes which will result in the termination of Project SUCCESS services.

1. The participant has been determined to be AFDC ineligible and assistance has been terminated.
2. A mandatory participant now meets the criteria for exemption and the person's PS Status Code is updated to reflect the exemption.
3. The AFDC case has been closed for another reason.

     2.  Changes which will result in a change in participation status or which the PS Staff will need to know to work with the participant.

1. The participant's status changes from voluntary to mandatory or vice versa. The person's PS Status Code must be updated to reflect the change.
2. The participant moves to another county.
3. The participant's address changes.

Other changes in a participant's circumstances which may affect participation but which are not entered to ACES should be reported to the PS Staff via memorandum or DCO-1410.

Welfare savings will be reported anytime assistance is terminated or benefits reduced because a person in the assistance unit refused to participate in the Project SUCCESS Program or an individual in the assistance unit referred to Project SUCCESS began employment. The employment may have been obtained and/or reported by either the household member or the PS staff. Welfare savings will be reported when the recipient refuses to verify actual earnings and the case is closed. It is the responsibility of the Service Representative to report welfare savings via the ACES system. The savings amount and type will be entered to WACE in the "WP SAV" and "WP TP" fields.

The amount of savings to be reported will be determined as follows:

1. Savings due to Employment

When an AFDC grant is reduced because the client or other assistance unit member became employed, the date employment began must be determined. If the employed person was referred to Project SUCCESS and the date of the referral was prior to the employment date, Project SUCCESS savings will be reported.

If the unit is determined to be ineligible due to the employment, savings will be reported when the AFDC case is closed. The amount of savings reported will be the amount of the last AFDC grant paid prior to the case being closed.

If the unit is determined to be eligible, savings will be reported for the first month inclusion of the earned income reduces the grant amount. The amount of savings reported will be the difference between the grant amount paid in the month immediately preceding the payment month which will first reflect the earnings and the grant amount which has the earnings included. Savings will not be reported in subsequent months unless a change occurs in the client's employment which results in ineligibility and the case is closed, i.e. goes from part-time to full-time employment or receives an increase in hourly wages.

2. Savings due to the Sanction for Refusal to Participate

When the needs of an otherwise eligible person are excluded from the assistance unit due to the sanction for refusal to participate in Project SUCCESS, savings will be reported. The amount of savings reported will be the difference between the last grant amount paid prior to the imposition of the sanction and the grant amount which reflects the sanction.

The purpose of New Hope is to provide assistance to teen parents who are recipients of AFDC. It is designed to ensure that these recipients are enrolled in basic education or training to obtain the necessary skills that will assist them in becoming productive citizens.

In counties in which New Hope has been implemented, participation in New Hope will be required for any non-exempt parent under the age of 20 who has not obtained a high school diploma or equivalency and whose child is living in the home with the parent. The New Hope participation requirements apply to any such parent regardless of whether the parent is included in the AFDC unit as a dependent child, as a minor parent, or as the adult. Teen parents who are exempt from New Hope participation may volunteer for New Hope and receive supportive services.

Teen parents in non-New Hope counties will be subject to regular Project SUCCESS requirements until such time as New Hope is implemented in those counties.

The Service Representative must determine if the teen parent should be referred to New Hope or to Project SUCCESS.

Unless determined to be exempt from New Hope participation as described in FA 2277.2, the following persons will be mandatory New Hope participants:

1. All minor parents age 16 or 17, unless they have obtained a high school diploma or equivalency.
2. All parents age 18 or 19 who do not have a high school diploma or equivalency; e.g. a senior in high school.
3. In Arkansas Welfare Demonstration Project (AWDP) counties, all minor parents under the age of 16 except those who are assigned to the AWDP control group. (Refer to FA 10130.)

Teen parents who have obtained their high school diploma or equivalency are subject to regular Project SUCCESS participation requirements.

Referrals will be system generated based on the individual's Project SUCCESS status code entered to WAFM.

The exemptions outlined in FA 2273.1 for Project SUCCESS participation requirements will be the same for New Hope participation with the exception of the "under age 16" exemption in AWDP counties and "caring for a child under age 1." A person age 16 through 19 whose only exemption is caring for a child under age one will be required to participate in New Hope activities. Also, if a participant is attending school full time as a result of Project SUCCESS/New Hope participation, he may not be exempted due to school attendance.

Refusal to participate in New Hope, without good cause, will result in a sanction being applied to the AFDC grant.

Refusal to participate in New Hope can occur if the participant refuses or fails to attend trainings or assessments, refuses or fails to accept supportive services, etc. The Project SUCCESS New Hope staff with the Economic Services Supervisor/Designee's approval, is responsible for determining if a participant has refused to participate without good cause. The participant will have the right to an Administrative Hearing through the regular appeal process (Refer to FA 9300).

The sanction for refusal to participate in New Hope will be the same as for refusal to participate in Project SUCCESS (Refer to FA 2274.3). The sanction time periods for a first, second, third and subsequent refusals, as well as other sanction procedures, will be the same as for Project SUCCESS (Refer to FA 2274 - 2274.5).

Welfare savings will be reported for grant reductions due to a New Hope sanction (Refer to FA 2276 #2).

The procedures are the same as Project SUCCESS. Refer to FA 2275.