<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s83248cd5-52cd-4e92-9224-8cce7a96444fP0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s83248cd5-52cd-4e92-9224-8cce7a96444fC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000002 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s83248cd5-52cd-4e92-9224-8cce7a96444f000003 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:59"><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000000">67:12:05:59</span></a><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000001">.  Treatment of lump sum income.</span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> Nonrecurring earned or unearned lump sum income not otherwise excluded </span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">must</span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> be added together with all other monthly income received by the assistance unit and considered available for current use after application of the disregards in §§ </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:14"><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000002">67:12:05:14</span></a><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">, </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:18"><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000002">67:12:05:18</span></a><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">, and </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:21"><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000002">67:12:05:21</span></a><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> and in subdivisions </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:38"><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000002">67:12:05:38</span></a><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">(2) and (3). </span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">If the</span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> total exceeds the need standard for the family, each member of the assistance unit is ineligible for </span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">aid to families with dependent children </span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">for the number of full months derived by dividing the total income by the need standard applicable to the family. Any amount remaining after this calculation is treated as income received in the first month following the period of ineligibility and is considered available for use at that time.</span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444f000003"> </span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">    Lump sum income includes insurance settlements, personal injury awards, and workers' compensation awards; retroactive payments </span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">old-age, survivors, and disability insurance</span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> and child support; and windfalls. A windfall is a sum that is not earned, does not occur regularly, and does not represent accumulated monthly income received in a single sum.</span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444f000003"> </span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">    Lump sum income earmarked and used for the purpose for which it was paid, or any portion of the lump sum designated for a specific purpose</span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> must</span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> be subtracted from the total lump sum income amount before determining the length of ineligibility.</span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444f000003"> </span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">    The department shall consider changes in circumstances requiring expenditure of resources or income in connection with medical and life-threatening situations as justification for shortening the period of ineligibility.</span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444f000003"> </span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">    </span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000001">Source:</span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> SL 1975, ch 16, § 1; 5 SDR 48, effective December 19, 1978; 7 SDR 23, effective September 18, 1980; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 88, effective January 13, 1982; 9 SDR 24, effective September 2, 1982; 10 SDR 11, effective August 15, 1983; 12 SDR 4, effective July 21, 1985; 13 SDR 110, effective February 15, 1987; 15 SDR 67, effective November 6, 1988; 16 SDR 161, effective March 20, 1990; 17 SDR 200, effective July 1, 1991</span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">; 52 SDR 55, effective December 2, 2025</span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">.</span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">    </span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000001">General Authority:</span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000002">28-</span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000002">6-1</span></a><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">.</span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">    </span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000001">Law Implemented:</span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000002">28-</span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000002">6-1</span></a><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">.</span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444f000003"> </span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0">    </span><span class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0-000001">Cross-Reference:</span><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444fC0"> Need and amount of assistance -- Income and resources, 45 C.F.R. § 233.20(a)(3)(ii)(F).</span></p><p dir="ltr" class="s83248cd5-52cd-4e92-9224-8cce7a96444fP0"><span xml:space="preserve" class="s83248cd5-52cd-4e92-9224-8cce7a96444f000003"> </span></p></div></body></html>