Pennsylvania Code & Bulletin
COMMONWEALTH OF PENNSYLVANIA

• No statutes or acts will be found at this website.

The Pennsylvania Code website reflects the Pennsylvania Code changes effective through 51 Pa.B. 1118 (February 27, 2021).

55 Pa. Code § 4305.64. Reason for adjustment of liability—substantial financial hardship.

§ 4305.64. Reason for adjustment of liability—substantial financial hardship.

 (a)  The county administrator shall have the power to reduce or eliminate the liability if the payment of the liability would cause substantial financial hardship on the client, a person owing a legal duty to support the person or the family of either.

 (b)  The following debt payments may not be considered when deciding if there is a substantial financial hardship.

   (1)  Mortgage or rent on principal residence.

   (2)  Utility payments.

   (3)  Automobile payments.

   (4)  Medical expenses already deducted under §  4305.36(5) (relating to deductions).

   (5)  Insurance premiums.

   (6)  A debt payment for which the liable person has not incurred a legal obligation to pay.

   (7)  Retail charge purchases for personal items, food and commodities.

   (8)  Debts incurred after treatment has begun if services are provided for less than 365-consecutive days.

   (9)  Debts not paid on a regularly scheduled basis.

 (c)  A debt not listed in subsection (b) shall be considered as allowable debt payments in reviewing the request for adjustment of the liability based upon substantial financial hardship.

 (d)  Debts caused by the cost of college or graduate school education may be considered as allowable debt payments in reviewing the request for adjustment of liability based upon substantial financial hardship.

 (e)  Debts caused by unforeseen circumstances over which the person has no control, such as loss from fire or flood not covered by insurance, shall be considered in reviewing the request for adjustment of the liability based upon substantial financial hardship.

 (f)  The county administrator shall compute the liability adjustment for substantial financial hardship as follows:

   (1)  If the amount of annual allowable debt payments divided by the adjusted family income amount exceeds or is equal to .8, the liability shall be eliminated.

   (2)  If the amount of annual allowable debt payments divided by the adjusted family income amount is less than .8, but greater than or equal to .7, the liability shall be reduced by 75%.

   (3)  If the amount of annual allowable debt payments divided by the adjusted family income amount is less than .7, but greater than or equal to .6, the liability shall be reduced by 50%.

   (4)  If the amount of annual allowable debt payments divided by the adjusted family income amount is less than .6, but greater than or equal to .5, the liability shall be reduced by 25%.

   (5)  If the amount of annual allowable debt payments divided by the adjusted family income amount is less than .5, the liability may not be adjusted.

Notes of Decisions

   Since the regulations providing for determination of parents’ liability for mentally retarded son’s care in State institution have a rational basis, relating payment to discretionary income of liable party, the regulations do not violate equal protection. Faix v. Department of Public Welfare, 499 A.2d 411 (Pa. Cmwlth. 1985).

   Regulations providing for determination of parent’s liability for mentally retarded son’s care in State institution are valid since they were promulgated to recover public funds whenever possible under section 501 of the Mental Health and Mental Retardation Act of 1966 (50 P.S. §  4501), thus evincing a rational relationship to a legitimate governmental interest. Faix v. Department of Public Welfare, 499 A.2d 411 (Pa. Cmwlth. 1985).

Cross References

   This section cited in 55 Pa. Code §  4305.15 (relating to delegation of authority); and 55 Pa. Code §  4305.67 (relating to decisions on requests for adjustment of liability).



No part of the information on this site may be reproduced for profit or sold for profit.


This material has been drawn directly from the official Pennsylvania Code full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.