NEWFOUNDLAND AND LABRADOR REGULATION 7/03

CNLR 1027/96
as amended

1. Section 2 of the Social Assistance Regulations is repealed and the following substituted:

Definitions

2. In these regulations

(a) "Act" means the Social Assistance Act;

(b) "applicant" means a person who has requested social assistance by completing an application form approved by the minister for that purpose;

(c) "disabled adult" means an adult who, in the opinion of an officer of the department, requires supportive services to aid independent living;

(d) "disabled person" means a person who, in the opinion of an officer of the department, requires supportive services to aid independent living;

(e) "employable single parent family" means a family where the single parent is able-bodied and has no children under the age of 2 years;

(f) "exempt income" means income received by an applicant or the applicant's spouse in a form that is considered neither income nor liquid assets when determining the applicant's eligibility for social assistance, provided that the income is obtained by means of

(i) a federal compensation payment or part of it in respect of a person who

(A) has contracted AIDS through the blood system,

(B) has suffered birth defects as a result of the use of thalidomide, or

(C) is a Japanese Canadian who is eligible under an agreement between the Canadian government and the Japanese Canadian Association,

(ii) the Canada Child Tax Benefit received by an applicant or the applicant's spouse for a dependent child or children under the age of 18 years,

(iii) income from interest from cash in a bank, stocks, bonds, or dividends from a corporation,

(iv) the Newfoundland and Labrador child benefit,

(v) a payment under the 1986-1990 Hepatitis C Settlement Agreements, unless the payment is compensation for loss of income or loss of support under section 4.02 or 6.01 of the Transfused HCV or Hemophiliac HCV Plans,

(vi) the Newfoundland and Labrador low income senior's benefit, or

(vii) other federal and Newfoundland and Labrador refundable tax credits received by an applicant or an applicant's spouse;

(g) "family with a disabled child" means a family that , in the opinion of an officer of the department, needs supportive services to care for the child at home;

(h) "liquid assets" means

(i) cash on hand or in the bank, and

(ii) readily marketable securities and investments in corporations

but does not include

(iii) funds held in trust for a prepaid funeral by a funeral home at the time of application for social assistance,

(iv) a Registered Education Savings Plan,

(v) funds from a severance package for the period described in subsection 12(4), or

(vi) a Registered Retirement Savings Plan for the value and period described in subsection 12(5);

(i) "minister" means the minister appointed under the Executive Council Act to administer the Act;

(j) "non-exempt income" means

(i) payments under the Canada Pension Plan, old age security, veterans' allowance, compensation under the Workplace Health, Safety and Compensation Act, employment insurance benefits, strike pay and pensions to the applicant or his or her spouse or to his or her dependent children from other sources,

(ii) interest and income received from a support trust by a disabled adult or a family with one or more disabled adults in accordance with subsection 12(3),

(iii) income received from federal training allowances,

(iv) the assessment based on 50% of the receipts from rental of rooms on property used as a residence by the applicant or the applicant and his or her family,

(v) payments which are monetary in nature or which are quantifiable in monetary terms including payments which are by way of arrears and which are received as child or spousal maintenance or support by the applicant or the applicant's spouse under a private agreement, a domestic contract or a court order,

(vi) payments received under the Canada-Newfoundland Student Loan Program and designated for living expenses,

(vii) net income received from a severance package which an applicant receives upon permanently severing from his or her employer for the period of time that the severance package is payable,

(viii) income resulting from the sale of property or the sale of a fishing licence,

(ix) payments received as a result of an inheritance or from an estate, and

(x) rental income assessed based on 50 % of that income after the deduction of municipal property taxes of rental or real property that is not used by the applicant or the applicant and his or her family;

(k) "partially exempt income" means income to which an exemption under section 3.1 applies and includes

(i) salary and wages of the applicant and his or her spouse, including income obtained from self-employment,

(ii) winnings and games of chance or a lottery,

(iii) board and lodging income assessed based on 20% of the receipts of board and lodging income from a boarder who is not a relative and that receipt shall not be less than an amount contemplated by paragraph 6(1)(c),

(iv) income tax refunds,

(v) scholarships or bursaries, and

(vi) incentive allowances as approved by the minister;

(l) "relative" means a son, daughter, mother, father, grandmother or grandfather; and

(m) "support trust" means a trust fund established for the use and benefit of a disabled adult.

2. Section 3 of the regulations is repealed and the following substituted:

Deduction

3. An officer of the department may authorize a deduction from partially exempt income in a case where, in order to earn that income, expenditure must be incurred.

3. The regulations are amended by adding immediately after section 3 the following:

Exemptions

3.1 The following exemptions shall be applied to partially exempt income as described in paragraph 2(k)

(a) for income described in subparagraph 2(k)(i), (ii) or (iii),

(i) in the case of a single adult, $75 per month,

(ii) in the case of 2 or more persons, $150 per month,

(iii) in the case of an adult with a disability described in paragraph 2(c) or (d), $95 per month,

(iv) in the case of a family with a disability of one or more persons as described in paragraph 2(c), (d) or (g), $190 per month;

(b) for income described in subparagraph 2(k)(iv), for an adult or family, $500 per year;

(d) for income described in subparagraph 2(k)(vi), in the case of an adult or family, $175 per month.

4. Paragraph 6(3)(a) of the regulations is amended by deleting the phrase and brackets "(which in this subsection means a parent, a grandparent, a child or a grandchild of a recipient)".

5. Subsection 11(1) of the regulations is repealed and the following substituted:

Determination of assistance

11. (1) When determining the amount of social assistance to be granted under these regulations, an officer of the department shall deduct from the social assistance to which the applicant is entitled under section 6

(a) all non-exempt income; and

(b) all partially exempt income minus

(i) the deduction described in section 3, and

(ii) the allowed exemptions described in section 3.1.

6. Section 12 is amended by adding immediately after subsection (3) the following:

(4) Notwithstanding subsections (1) and (2), a severance package

(a) is exempt from the provisions of this section for the covering period of the severance package; and

(b) after the period referred to in paragraph (a) has expired, shall be considered a liquid asset.

(5) A Registered Retirement Savings Plan owned by an applicant or his or her spouse which is valued at less than $10,000

(a) is exempt from the other provisions of this section for the first 90 days in which an applicant or his or her spouse receives social assistance; and

(b) after the period referred to in paragraph (a) has expired, shall, if the Registered Retirement Savings Plan is readily liquefiable, be considered a liquid asset.

7. Section 23 of the regulations is repealed and the following substituted:

Determination of social assistance

23. (1) An applicant is entitled to social assistance where, for the 60 days preceding the date of his or her application for social assistance, his or her net income described in paragraph 2(j), and in paragraph (k) less the amount described in section 3, in that period does not exceed the rates for social assistance applicable for that period as described in paragraphs 6(1)(a), (c) and (d), plus 40%, and

(a) where the applicant and his or her family are occupying a rented property in that period an amount up to but not exceeding the rates for social assistance applicable for that period as specified in paragraphs 6(3)(a), (b) or (c), plus 40%; or

(b) where, in that period, the applicant and his or her family are occupying a house owned by the applicant that is subject to a mortgage, an amount up to but not exceeding the rates for social assistance applicable for that period as specified in subparagraphs 6(1)(b)(i), (ii) or (iii), plus 40%; and

(2) An applicant who is not entitled to social assistance in accordance with subsection (1) may be reconsidered on the date on which his or her income during the past 60 days has decreased to the level set out in subsection (1).

Commencement

8. These regulations shall come into force on February 1, 2003.