Release of child support judgment liens

The California Department of Child Support Services (DCSS) has issued a new policy about release of judgment liens.  LSCAs are required to record real property liens as part of enforcing child support orders.  LCSA must release real property liens when closing a case.

Existing regulations allow Local Child Support Agencies (LCSAs) to either record lien releases or provide lien releases to obligors to record.  Effective January 1, 2018, the fee to record a release of lien is $75.  LCSAs are exempt from the new fee.  For that reason, LCSAs must now record record Release of Judgment Liens on behalf of the obligor unless an obligor asks to record it themselves or through an escrow transaction.

LCSA can record lien releases without a notary certificate.  Obligors must still provide a notary certificate if they record a lien release themselves.  (CSSP Letter 17-11, December 29, 2017.)

Veterans’ education, training, vocation or rehabilitation benefits and CalWORKs

CDSS has issued instructions implementing SB 570 regarding CalWORKs treatment of Veterans education, training, vocation or rehabilitation benefits.  Effective January 1, 2018, Veterans Administration benefits for education, training, vocation or rehabilitation are exempt as income for purposes of CalWORKs for veterans, dependents of veterans and spouses of veterans who either died in the line of duty or have a service-connected disability.  Asset rules continue to apply these benefits, meaning that they are considered property in future months.

The exemption also applies to households categorically eligible for CalFresh because they receive CalWORKs.  The exemption does not apply to CalFresh only households.

Veterans benefits now excluded as income for CalWORKs include but are not limited to GI Bill, Vocational Rehabilitation and Employment Services, Yellow Ribbon Program, Survivors and Dependant Assistance Program, Tutorial Assistance, License and Certification Reimbursement, National Call to Service Program, Compensated Work Therapy and Work Study.

Counties must create a manual business process to implement the veterans benefits exclusion until each respective computer consortia is programmed to implement the exclusion.  (ACL 17-125, December 29, 2017.)

Digital child care applications

The California Department of Education (CDE) has issued instructions regarding digital child care applications.  Contractors can now use digital applications for families to apply for child care and development services.  Digital applications must include all legally required information.

Contractors can also use digital signatures if the digital signature meets all legal requirements.  Digital applications must meet state and federal requirements for creation and maintenance of electronic records.  (Management Bulletin 17-13, October, 2017.)

Child support distribution error

CDSS has issued instructions about a programming error that caused incorrect child support distribution in about 28,000 cases.  The problem occurred in the implementation of repeal of the Maximum Family Grant rule.  The error caused some families who are receiving CalWORKs to receive the entire amount of current child support instead of only the $50 disregard.  In other cases, the error incorrectly caused the full amount of child support collected to be retained by the state when some or all of the collection should have been distributed to the family.

CDSS states that payments issued in error are unlikely to continue and therefore should not be considered income because they are not reasonably anticipated.  After two payments, the County Welfare Department should communicate with the Local Child Support Agency to determine if the payments will continue.  If the payments will continue, they will be considered to be reasonably anticipated going forward.

For cases where the $50 disregard was improperly retained by the State, the $50 disregard will be retroactively paid to the family.  These retroactive payments will not be considered income or property for CalWORKs.  (All County Welfare Directors Letter, December 28, 2017.)

CalWORKs eligibility for Southern California fire victims and evacuees

CDSS has issued instructions about CalWORKs eligibility for Southern California fire victims and evacuees.  New applicants who are fire evacuees may not have access to verification because of the fires.  If the applicant and the county make a good faith effort to obtain verification and are unable to do so, the county must accept the evacuee’s statements signed under penalty of perjury in lieu of verification.

Evacuees who are homeless are eligible for homeless assistance even if they have used homeless assistance in the last 12 months because displacement due to disaster is an exception to that time limit.

Evacuee families should be evaluated for immediate need.  Although liquid resources count when determining eligibility for immediate need, resources that cannot be converted to cash because of the disaster do not count as liquid resources when determining eligibility for immediate need.

Counties must consider whether income that was being received will be reasonably anticipated to continue because of the fires.  If income is not reasonably anticipated because of the fires, it does not count when determining CalWORKs eligibility.  Disaster assistance from federal, state or local governments, or disaster assistance organizations, does not count as income for CalWORKs.

Real and personal property that cannot be accessed, occupied or sold because of the fires does not count for purposes of CalWORKs eligibility.  If verification of property cannot be obtained because of the fires, the county must accept a statement under penalty of perjury.

Although family members may be separated because of the fire, family members are considered temporarily absent if they intend to reunite within one full calendar month.  Evacuees can maintain a home in a different county if they intend to return to their prior home county within  four months.

Families who are participating in Welfare-to-Work should be evaluated for good cause for non- participation or a Welfare-to-Work exemption.  Families should also be evaluated for barrier removal services such as mental health services or housing stabilization program.

Displaced families must comply with semi-annual and annual reporting requirements.  However, good cause rules apply for reports filed late because of the disaster.  If the report is filed in the first month after it is due, the county must evaluate good cause for late filing.  If the report is filed after the first month after it is due, the county must evaluate good cause on request from the assistance unit.  (All County Welfare Directors Letter, December 15, 2017.)

CalFresh for persons displaced by disaster

CDSS has issued instructions about CalFresh for persons displaced by disaster including the December 2017 Southern California fires.  The guidance is the same as was issued for the Northern California fires but makes clear that it applies to all emergencies that result in people being displaced within California.

County welfare departments statewide are to serve displaced applicants under regular CalFresh rules, including expedited service, regardless of whether they are permanent residents of the county of application.  If verification of residency or other verification is impossible, the county must accept self-certification.  The county must also provide options for mailing to persons without a permanent mailing address.

Counties statewide must serve displaced households with an active CalFresh case in the disaster-affected area.  The county may contact the county with the active case for assistance.  Counties  must displaced households regardless of the computer system consortia used by the county.

Food lost because of a disaster can be replaced.  A household must complete the Reinstatement and Affidavit/Authorization (CF 303) form to receive replacement benefits unless mass replacement benefits are issued.  Families cannot receive both individual replacement benefits and mass replacement benefits.

Counties are encouraged to inform displaced households about CalFresh availability and replacement benefits.  (All County Welfare Directors Letter, December 19, 2017.)