Sneede v Kizer

The income and property of an adult can be used only to determine eligibility and SOC for him/herself, his/her spouse, and his/her natural or adopted children. Therefore, the property and income of individuals who are not financially responsible for one another cannot be combined when it will result in either a denial for excess property or a SOC.

A Sneede case is one in which the MFBU has either excess property or a SOC, was not eligible for MAGI (or requested a Non-MAGI evaluation) and includes at least one of the following Sneede class members:

A stepparent, or
An unmarried couple with at least one mutual child, or
A child with his/her own nonexempt property and/or income, or
A caretaker relative, other than a parent, who chooses to be in the same MFBU with the child(ren) for whom care is provided.

Note: When an MFBU meets the criteria of a Sneede case, the family does not have the choice to not apply Sneede procedures, however they can choose to exclude a child with his/her own income or property.

Examples

Child with Separate Income Child with Separate Income The MFBU includes a mother who receives $740 per month Social Security disability benefits, and her child, who receives $370 per month Social Security based on his mother's disability. Together, they have a SOC. This is a Sneede case because the child's Social Security is considered to be his own separate income.

Stepparent Case Stepparent Case A mother, her son, a stepfather, and their mutual child are applying for MC. The mother has medical expenses and the stepfather is employed. Mom has UIB and the MFBU has a SOC. Sneede rules apply. The stepfather is responsible for himself, his wife and their mutual child, but not for his stepson.

Nonparent Caretaker Relative Nonparent Caretaker Relative

Two children live with their 55 year old grandmother. The grandma has no spouse nor children of her own living in the home. She is not disabled, and chooses to be in the MFBU. The grandma is employed part time and she receives $400 per month child support from the absent father of the grandchildren. Since the MFBU has a SOC, Sneede rules apply. Each person's income must be separated:

Grandmother with her earnings.
Child 1, with only his/her share of child support.
Child 2, with only his/her share of child support.

The grandmother has no financial responsibility for her grandchildren. The siblings are not combined, even though they receive equal amounts of support, as they are not financially responsible for each other. If there were no SOC, then all of their income would be combined in one MFBU.

Separate Determinations

Sneede property and income determinations are two separate and independent determinations.

When a Sneede class member meets property limits but has a SOC, Sneede procedures must be applied, but only to the SOC determination.

When a Sneede class member would have no SOC but is ineligible due to excess property, Sneede procedures are applied only to the property determination.

When a Sneede class member has both excess property and a SOC under existing MC regulations, Sneede procedures are applied first to the property determination and then if eligibility is established, Sneede is applied to the SOC determination.

Denial or Discontinuance of Sneede

Just as the Sneede decision limits financial responsibility to spouse-for-spouse and parent-for-child, denial/discontinuance actions for noncooperation are limited to the noncooperative individual and those for whom he/she is responsible. Those members of the MFBU who are not the responsibility of the noncooperative individual may not be denied or discontinued.

Sneede Screening in CalSAWS

If an MFBU has a SOC and includes children, the appropriate relationship identifiers and person-specific income will automatically identify cases which meet Sneede income criteria and CalSAWS will apply Sneede budgeting rules.

If an MFBU meets any of the screening criteria:

The 100/133/200% Programs are applied after a Sneede budget is completed.
Adjustments for unpaid medical bills (Hunt v Kizer) are applied after the Sneede budget is completed, if a SOC still remains.

Sneede property determinations are completed by CalSAWS. The property determination can be manually determined, if necessary, by completing the “Sneede V. Kizer Property Screening Questions” (MC 175 P).

The responsible relative determination is completed by CalSAWS, but can be manually determined, if necessary, by completing the “Sneede v Kizer Responsible Relative Determination” (MC 175 2).

Only one responsible relative determination is needed for each Sneede case, or for a Sneede property determination.

Income and Property Allocations

Net nonexempt property and income can only be allocated equally in one direction to eligible, ineligible, and excluded family members. The net nonexempt property of a spouse or parent must be equally divided within the MFBU among one’s self, spouse, and/or natural/adoptive child(ren)

Note: The allocation is not reduced by the amount of the spouse’s or child’s own property.

The net nonexempt income of a spouse or parent (less a $600 income deduction for his/her needs) must be equally divided within the MFBU among one’s spouse and/or natural/adoptive child(ren).

Allocations Not Allowed

The following rules explain when property and income allocations cannot be allowed.

A child’s own separate property/income cannot be allocated to his/her parent(s) or siblings.
If parents are unmarried, they cannot allocate property/income to each other.
There is never an allocation from anyone other than a spouse or a natural/adoptive parent. Example Example A non-parent caretaker relative is in the MFBU. If Sneede applies, the caretaker relative’s property/income is never allocated to the child(ren), as s/he is not financially responsible for them.
Never allocate to an unborn.
A parent may not allocate income to him/herself but is allowed a $600 income deduction for his/her needs prior to equally allocating income to his/her spouse and/or child(ren).

Allocation Example

An MFBU of 5 with a SOC includes a father, mother, their mutual child, their unborn, and the mother’s separate child.

Father’s income (less a $600 income deduction for his needs) is divided by 2, and equally allocated to the mother, and their mutual child.

The mother’s income (less a $600 income deduction for her needs) is divided by 3 and equally allocated to her husband, their mutual child, and to her separate child.
The unborn does not receive an allocation from either parent. However, the unborn will later be included in the Mini Budget Unit which includes the mother.

Treatment of Children

The following chart summarizes the treatment of children in a Sneede case.

Sneede Children	Receive Income/Property Allocation from Parent(s)	Included in Maintenance Need and Property Limit	Link Other Family Members in MFBU
Unborns	No	*Yes, include in mother’s MBU	Yes
Eligible Children	Yes	Yes	Yes
Ineligible Children	Yes	Yes, if in the same MBU	No
Excluded Children	Yes	No	No

*An unborn may be included in its father’s MFBU/MBU if the mother receives SSI/SSP or CalWORKs.

Mini Budget Unit Determination

Mini Budget Units (MBUs) are separate sub-units within a family, which are derived from the initial MFBU in order to prevent the incorrect allocation of property and income of individuals who are not financially responsible for each other.

MBUs are based on family relationships (relative responsibility), and whether a child has his/her own separate nonexempt property or income.
A single family may have several MBUs.
An MBU determination is not the same as a responsible relative determination.
Each family member in an MFBU can only be included in one MBU.
Ineligible family members are included in MBUs.
Unborns are always included in their mother's (including a minor mother's) MBU.
- Exception: If the pregnant mother is not in the MFBU because she is receiving PA (for example, CalWORKs, SSI), the unborn is included in the father's MFBU/MBU.
Excluded children are NOT included in any MBU.
Married couples, and their mutual child(ren) with no countable income/property of their own, are together in one MBU.
Stepchildren are never included in an MBU with their stepparent.
Each child with nonexempt income/property of his/her own is in a separate MBU.
Separate child(ren) (with no income or property) of a parent who receives PA who is not in the MFBU are in a separate MBU with full maintenance need.

Property/Income MBUs are Separate

If a Sneede case has both excess property and a SOC, the MBU composition for property may not be the same as the MBU composition for income. For example, a child may have separate income (child support), but no separate property, or a stepparent may or may not have both property and income.

Minor Mothers

If Sneede applies to senior parent(s) case:

The minor mother is included as an eligible person in her parent(s)' MBU if she has no income/property of her own.
The minor mother will be in her own separate MBU if she has separate nonexempt income/property.

If Sneede applies to the minor mother’s child(ren)s' case:

The minor mother is an ineligible person in her child(ren)s' MBU, if the child(ren) have no countable separate property/income.
A separate MBU will be established for each child with separate nonexempt property/income.
If all of the minor mother's children have their own nonexempt income or property, separate MBUs will be established for the minor mother and for each child.

Non-Parent Caretaker Relative Households

A caretaker relative who lives with his/her spouse and/or children can choose to be in the same MFBU with the child for whom he/she is caring unless he/she requests otherwise and has his/her own linkage (ABD). The caretaker can also be in the same MFBU as his/her spouse and or children.The caretaker who is also a spouse or parent may be in two separate MFBU’s.

MBU Determinations

If the caretaker relative chooses to be in the same MFBU with the child(ren) and there is excess property or a SOC:

The caretaker relative is in a separate MBU.
All child(ren) with no countable income or property of their own will be in a separate MBU.

Each child with his/her own nonexempt separate property/income will have a separate MBU. ExampleExample

Two children reside with their aunt. One child receives $350 per month Social Security (RSDI) due to his deceased father. The other child has no income. Their aunt is age 57 and is employed part time. She has no spouse nor children of her own living in the home and she requests Medi-Cal. Together, the MFBU has a SOC, so Sneede procedures must be applied.

MBU “A”	MBU “B”	MBU “C”
Aunt	Nephew with RSDI	Nephew with no income

If only the child(ren) are in the MFBU and there is excess property or a SOC:
- One MBU will be established for all children with no countable property/income.
- A separate MBU will be established for each child with his/her own nonexempt separate property/income.

MC 175-4

CalSAWS determines the MBUs for Sneede cases, howver, the MC 175-4 may be used to complete “Mini Budget Units” determinations manually. The MC 175-4 is used for both Sneede property and income determinations. If both excess property and a SOC exist, two separate MC 175-4 forms need to be completed as follows:

List each person by name or person number in only one MBU according to the rules contained in this section.
Designate the primary MBU. The primary MBU includes the parent(s) and any mutual child(ren) with no countable income/property.
Enter each person's share of net non-exempt income or property.
Total the income or property for each MBU.
Enter the Sneede Maintenance Need Level or Property Limit, either:
1. The full standard limits, or
2. The prorated income if the MBU contains only child(ren).
If an MBU has excess property, check to see if linkage still exists for other family members. Determine eligibility for the appropriate Federal Poverty Level (FPL) Property Waiver Program for children under 19.
If an MBU has a SOC, determine eligibility for the appropriate Federal Poverty Level Programs (100/133/200%) for children under 19.
Establish “Mini Budget Units” as applicable.