Current through Register Vol. 63, No. 9, September 1, 2024
Retroactively effective July 6, 2020, in the OSIP, OSIPM, and
QMB programs:
(1) For purposes of this
rule:
(a) "Business entity" includes a sole
proprietorship, a partnership, and an unincorporated limited liability
company.
(b) "Principal" means an
individual with significant authority in and responsibility for the success or
failure of a corporation or "business entity" (see subsection (a) of this
section), including:
(A) A sole
proprietor.
(B) A general partner
in a partnership.
(C) A member or
manager of a limited liability company.
(D) An officer or stockholder with
controlling shares in a closely-held corporation.
(2) This rule applies to an
individual who has an ownership interest in:
(a) A corporation; or
(b) A business entity, but
is not considered self-employed (see OAR
461-145-0915).
(3) For an individual with an
ownership interest in and actively working for a corporation:
(a) Unless the individual meets the specific
criteria for self-employment in OAR
461-145-0915, the individual is
not considered self-employed, regardless of whether or not the individual is a
principal (see subsection (1)(b) of this rule). Income from
actively working for the corporation is counted as earned income as provided in
OAR 461-145-0130.
(b) Dividends or profits are counted as
unearned income.
(c) Income not
paid to an individual but retained by the corporation is not considered income
of the individual.
(d) Property and
resources owned by the corporation are excluded.
(e) Except in the QMB-BAS, QMB-SMB, and
QMB-SMF programs, if maintaining an ownership interest in a corporation is
required for employment, the equity value (see OAR
461-001-0000) of the ownership
interest is excluded; otherwise it is counted as provided in subsection (6)(a)
of this rule.
(f) A non-business
expenditure - including, but not limited to, a car or housing payment - paid by
the corporation that benefits the individual is treated as earned income of the
individual.
(4) If the
individual has an ownership interest in a business entity, is
considered a principal, and is actively working in the
business entity, the individual is considered self-employed
(see OAR 461-145-0915).
(5) If the individual has an ownership
interest in a business entity, is not considered a
principal, and is actively working in the business
entity:
(a) The individual's income,
not including dividends or profits from the business entity,
is counted as earned income as provided in OAR
461-145-0130.
(b) Dividends or profits are treated as
unearned income.
(c) Except in the
QMB-BAS, QMB-SMB, and QMB-SMF programs, if maintaining an ownership in the
business entity is required for employment, the equity
value of the ownership interest is excluded; otherwise it is counted
as provided in subsection (6)(a) of this rule.
(d) A non-business expenditure - including,
but not limited to, a car or housing payment - paid by a business
entity that benefits the individual is counted as earned income of the
individual.
(6) If the
individual has an ownership interest in a corporation or business
entity, but is not actively working in the corporation or
business entity:
(a) Except
in the QMB-BAS, QMB-SMB, and QMB-SMF programs, and except as provided in OAR
461-140-0020, the equity
value of an ownership interest in a corporation or business
entity, other than stock in the corporation, is counted as a resource.
See OAR 461-145-0520 for how to treat
stock.
(b) Except as provided in
OAR 461-140-0040, income of the
individual from a corporation or business entity is counted as
unearned income of the individual.
(c) A non-business expenditure - including,
but not limited to, a car or housing payment - paid by a corporation or
business entity that benefits the individual is counted as
unearned income of the individual.
Statutory/Other Authority: ORS
409.050,
411.060,
411.070,
411.083,
411.404,
411.706,
413.085 &
414.685
Statutes/Other Implemented: ORS
409.010,
409.050,
411.060,
411.070,
411.083,
411.404,
411.706,
413.085,
414.685 &
414.839
