PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Amendment of section 352.5(e) of Title 18 NYCRR.
Statutory authority:
Social Services Law, sections 20(3)(d), 34(3)(f), 131(1) and 131-s(1); L. 2009, ch. 318
Subject:
Utility Repayment Agreements.
Purpose:
Extend the repayment term of utility repayment agreements from one year to two years to meet the requirements of Chapter 318 of the Laws of 2009.
Text of proposed rule:
Subdivision (e) of section 352.5 is amended to read as follows:
(e) Payment essential to continue or restore utility service for an applicant for family assistance, safety net assistance, veteran assistance or emergency public assistance. A payment must be made for utilities previously provided to an applicant for family assistance, safety net assistance, veteran assistance or emergency public assistance if such payment is essential to continue or restore utility service. Payment essential to continue or restore utility service may be provided to an applicant whose utility bill includes costs for service for the applicant's own residential unit and for space outside that unit. Payment may only be made when it is documented that the applicant is the tenant of record and the customer of record, as defined in subdivision (a) of this section, and alternative payment or housing accommodations cannot be made and the applicant is without liquid resources to continue or restore utility service. Payment must not exceed the cost of utilities provided to the applicant during the four most recently completed monthly billing periods or two most recently completed bi-monthly billing periods for which a bill has been issued immediately preceding the date of application for such assistance. Payment is limited to the applicant's proportionate share of the cost of service for the most recently completed four monthly or two most recently completed bi-monthly billing periods for which a bill has been issued immediately preceding the date of application for such assistance when the applicant's utility bill includes costs for service for the applicant's own residential unit and for space outside that unit. Payment must not exceed the balance due on the account. In a shared meter situation subject to the provisions of section 52 of the Public Service Law, the proportionate share is to be determined by the utility company's apportionment of retroactive charges upon completion of a shared meter investigation and determination. As a condition of receiving such assistance, an applicant not in receipt of recurring public assistance or supplemental security income whose gross monthly household income on the date of application exceeds the public assistance standard of need for the same size household must sign an agreement to repay the assistance within [one year] two years of the date of the payment. A household consists of all persons who occupy a housing unit. A house, an apartment or other group of rooms, or a single room is regarded as a housing unit when it is occupied or intended for occupancy as separate living quarters. A household includes related family members and all unrelated persons, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone, or a group of unrelated persons sharing a housing unit as partners, also constitutes a household. The public assistance standard of need is determined by applying the following statewide standards of need in accordance with office regulations: the pre-add allowance as set forth in Schedule SA-2a of section 352.3 of this Part; the shelter allowance as paid, but not to exceed the maximum allowance set forth in section 352.3 of this Part; the fuel allowance set forth in Schedule SA-6a, SA-6b or SA-6c of section 352.5 of this Part, if the applicant is the tenant of record and customer of record for the residential heating bill; the home energy and supplemental home energy payments (HEA and SHEA) as set forth in schedule SA-2b or SA-2c of section 352.1 of this Part; and, if applicable, the additional cost of meals for persons unable to prepare meals at home as set forth in schedule SA-5 of section 352.7 of this Part. The repayment agreement must set forth a schedule of payments that will assure repayment within [one year] two years of the date of payment. Subsequent assistance to continue or restore utility service must not be provided unless any prior utility arrearage payments have been repaid or are being repaid in accordance with the schedule of payments contained in each prior repayment agreement as of the date of application for such subsequent assistance, or unless the enforcement of such prior repayment agreement(s) is suspended by the local social services district during a period of cold weather, defined, for these purposes, as the time period from November 1st of each year and ending April 15th of the following year. Repayment agreements under this subdivision may be enforced in any manner available to a creditor, in addition to any other remedy the district may have pursuant to the Social Services Law.
Text of proposed rule and any required statements and analyses may be obtained from:
Jeanine Stander Behuniak, New York State Office of Temporary and Disability Assistance, 40 North Pearl Street, Floor 16C, Albany, New York 12243-0001, (518) 474-9779, email: Jeanine.Behuniak@OTDA.state.ny.us
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
Regulatory Impact Statement
1. Statutory authority:
Social Services Law (SSL) § 20(3)(d) authorizes the Office of Temporary and Disability Assistance (OTDA) to promulgate regulations to carry out its powers and duties.
SSL § 34(3)(f) requires the Commissioner of OTDA to establish regulations for the administration of public assistance and care within the State.
SSL § 131(1) requires local social services districts (local districts), insofar as funds are available, to provide adequately for those unable to maintain themselves, in accordance with the provisions of the SSL.
SSL § 131-s(1) enables local districts to provide utility arrears payments on behalf of certain applicants for public assistance, supplemental security income or additional state payments in order to prevent a utility shut-off or to restore utility services. Such applicants whose gross household income exceeds the public assistance standard of need for the same household size must sign repayment agreements and repay the utility assistance within two years.
Chapter 318 of the Laws of 2009 amended SSL § 131-s requiring local districts to extend the repayment term of utility repayment agreements from one year to two years effective August 11, 2009.
2. Legislative objectives:
It was the intent of the Legislature in enacting the above statutes that OTDA establish rules, regulations and policies so that adequate provision is made for those persons unable to provide for themselves so that whenever possible, such persons can be restored to a condition of self-support and self-care.
3. Needs and benefits:
SSL § 131-s and 18 NYCRR § 352.5(e) require certain households with utility (natural gas and/or electricity) emergencies to sign repayment agreements as a condition of eligibility for emergency utility arrears payments. Prior to August 11, 2009, SSL § 131-s required that certain applicants sign repayment agreements to repay the utility arrears assistance to the local districts within one year of the date of the payment. Effective August 11, 2009, Chapter 318 of the Laws of 2009 amended SSL § 131-s, and the repayment periods were extended from one year to two years. These proposed amendments to 18 NYCRR § 352.5(e) are necessary to bring the State regulations into compliance with statutory requirements.
The regulatory amendments, like the provisions of SSL § 131-s, would benefit low-income households who must sign repayment agreements. By extending the time period for low-income households to repay their utility arrears assistance from one year to two years, these amendments would reduce the households' monthly repayment amounts, making the payments more affordable. Lower monthly payments would help low-income families remain current on their utility repayment agreements during these difficult economic times and better enable them to meet their other monthly financial obligations.
By improving the ability of low-income households to comply with the terms of the repayment agreements, these amendments also would lessen the need for the local districts to utilize costly temporary housing options. Temporary housing options are utilized when applicants for SSL § 131-s have been noncompliant with past repayment agreements. If there is noncompliance with prior repayment agreements, local districts are prohibited from making additional payments under SSL § 131-s and 18 NYCRR 352.5(e). Thus these amendments would help local districts reduce the need for temporary housing assistance and would enable more persons to remain in their homes with the utility services they need.
4. Costs:
These regulatory amendments would have no fiscal impact. These amendments are needed to bring the State regulations into compliance with State law and with current policy and practices.
5. Local government mandates:
These regulatory amendments would not impose any additional programs, services, duties or responsibilities upon the local districts. These amendments reflect current policy and practices. Previous directives issued through the General Information System (GIS 09 TA/DC026) and as Administrative Directive (09-ADM-17) have advised local districts to use the revised two year version of the Utility Arrears Repayment Agreement in order to comply with the amendments to SSL § 131-s.
6. Paperwork:
There would be no additional forms required to support this process. The revised Utility Arrears Repayment Agreements reflect the change in the terms of repayment agreements from one year to two years. For those repayment agreements signed on or after August 11, 2009, but prior to the release of the General Information System (GIS 09 TA/DC026), the local districts must recalculate the terms of the agreements and advise those recipients of their reduced monthly payments due to the local districts.
7. Duplication:
These proposed amendments to 18 NYCRR § 352.5(e) are necessary to comply with State statute, and the amendments would not duplicate, overlap or conflict with any existing federal requirements.
8. Alternatives:
The alternative is to amend SSL § 131-s eliminating the two-year repayment periods and reinstating the one-year repayment requirement. However, such a reversal would not be beneficial to low-income households or the local districts.
9. Federal standards:
The proposed amendments would not conflict with federal standards for public assistance.
10. Compliance schedule:
The local districts would be in compliance with these proposed amendments upon their adoption. The regulatory amendments reflect current policy and practices.
Regulatory Flexibility Analysis
1. Effect of rule:
These proposed amendments would not impact small businesses. However, the proposed amendments would benefit all local districts by updating State regulations to comply with statutory requirements and to reflect local policy and practices.
2. Compliance requirements:
These amendments to 18 NYCRR § 352.5(e) would clarify that local districts must extend the repayments terms of the Utility Arrears Repayment Agreements from one year to two years. Due to the statutory amendments to SSL § 131-s, the General Information System (GIS 09 TA/DC026), and the Administrative Directive (09-ADM-17), this policy is already in place in the local districts. Thus these regulatory amendments would not impose any mandates on the local districts.
3. Professional services:
The proposed amendments would not require small businesses or local governments to hire additional professional services. Local districts already have implemented the two-year repayment terms pursuant to SSL § 131-s, the General Information System (GIS 09 TA/DC026), and the Administrative Directive (09-ADM-17).
4. Compliance costs:
The proposed amendments would have no fiscal impact on local governments or small businesses. The amendments would simply bring State regulations into compliance with State law and with current policy and practices.
5. Economic and technological feasibility:
All local districts have the economic and technological ability to comply with these proposed amendments.
6. Minimizing adverse impact:
There would be no adverse economic impact on local governments and small businesses.
7. Small business and local government participation:
All local districts were notified that Chapter 318 of the Laws of 2009 had amended SSL § 131-s requiring the districts to extend the repayment terms of the utility repayment agreements from one year to two years. This notification was made through the General Information System (GIS 09 TA/DC026) and the Administrative Directive (09-ADM-17). OTDA has not received opposition from any local districts in response to the two-year repayment requirement.
Rural Area Flexibility Analysis
1. Types and estimated numbers of rural areas:
The proposed amendments would benefit all local districts in rural areas by updating the State regulations to comply with statutory requirements and to reflect local policies and practices.
2. Reporting, recordkeeping and other compliance requirements; and professional services:
No additional record keeping would be required. The proposed amendments reflect current policy and practices in rural districts.
3. Costs:
The proposed amendments would not impose initial capital costs or any annual costs upon rural districts to comply with the rule. The regulatory amendments would simply bring State regulations into compliance with State law and current policy and practices.
4. Minimizing adverse impact:
The proposed amendments would not have an adverse impact on rural districts. In fact, the regulatory amendments would assist rural districts in meeting the needs of applicants. Those applicants determined ineligible for relief under SSL § 131-s due to defaults on their past repayment agreements, and with no other means to restore utility services or prevent disconnections, may become eligible for temporary housing assistance. In rural districts, there are often only limited options for temporary housing. Rural districts may need to place persons in local hotels and motels at substantial costs to the districts, or based upon availability, rural districts may need to make out-of-district placements while retaining fiscal responsibility for the persons. By reducing monthly repayment amounts and facilitating compliance with lower repayment terms, these amendments would promote compliance with the SSL § 131-s repayment agreements. Such compliance would facilitate subsequent utility assistance payments, if needed, and reduce the need for the re-housing of persons with emergency needs.
5. Rural area participation:
All local districts, including rural districts, were notified that Chapter 318 of the Laws of 2009 had amended SSL § 131-s requiring the districts to extend the repayment terms of the utility repayment agreements from one year to two years. This notification was made through the General Information System (GIS 09 TA/DC026) and the Administrative Directive (09-ADM-17). OTDA has not received opposition from any rural districts in response to the two-year repayment requirement.
Job Impact Statement
A Job Impact Statement is not required for the proposed amendments. It is apparent from the nature and the purpose of the proposed amendments that they would not have a substantial adverse impact on jobs and employment opportunities. The proposed amendments would not affect in any real way the jobs of the workers in the local districts. Thus the changes would not have any adverse impact on jobs and employment opportunities in the State.
