The California Department of Social Services (CDSS) has issued guidance regarding counting benefits from new unemployment programs as income for CalFresh. Benefits from the Pandemic Unemployment Compensation (PUC), Pandemic Emergency Unemployment Compensation and Pandemic Unemployment Assistance program are unearned income for purposes of CalFresh eligibility and benefits. (ACWDL, April 21, 2020.)
Summaries of select CalWORKs, CalFresh, Health and Housing Regulations
CalFresh / SNAP
COVID-19 overpayment and overissuance collection
The California Department of Social Services (CDSS) has issued guidance regarding temporary changes to Franchise Tax Board (FTB) and Treasury Offset Program (TOP) collection of CalWORKs overpayments and CalFresh overissuances.
On March 25, 2020, FTB suspended all non-tax collection, including CalWORKS and CalFresh debts, until July 15, 2020 because of COVID-19. FTB pre-offset letters will be suspended.
California was granted permission by the Food and Nutrition service to suspend TOP offsets for CalFresh debt between April 6, 2020 and July 6, 2020. TOP pre-offset letters will continue to be generated for debts that are 120 days delinquent.
Counties may approve refund requests for circumstances related to COVID-19 for TOP and FTB collections that occurred on or after March 1. This is discretionary with the county. These debts will remain outstanding to be collected starting in July, 2020. Any refunds must also include administrative fees.
Counties may continue to accept payments and enter into new repayment agreements. Counties can modify agreements or defer payments on request to mitigate the effects of COVID-19.
All other collection activities should continue. (ACWDL, April 16, 2020.)
COVID-19 treatment of individual stimulus for CalWORKs and CalFresh
The California Department of Social Services (CDSS) has issued guidance about how the individual stimulus payment is to be treated for purposes of CalWORKs, CalFresh and TCVAP.
Individual stimulus payments are excluded from being considered income in the month received and will not be considered as asset for 12 month following receipt. (ACWDL, April 15, 2020.)
Implementation of EBT online purchasing
The California Department of Social Services (CDSS) informs counties that Electronic Benefits Transfer online purchasing will be available on April 28, 2020. EBT online purchasing will initially be available at Amazon and Walmart.
Both Amazon and Walmart accept EBT for food purchases using CalFresh benefits. Walmart also accepts EBT purchases of non-food items using CalWORKs benefits. Federal law prohibits using CalFresh benefits to pay delivery charges or other fees for online purchases. Walmart accepts CalWORKs benefits via EBT to pay for delivery fees. Amazon offers Amazon cash to deposit money to pay for delivery fees or other purchases.
Counties should refer clients to the retailer’s website or the customer service number on the back of the EBT card for assistance with online purchasing. (ACWDL, April 14, 2020.)
Limitations period for collecting CalFresh overissuances
The California Department of Social Services (CDSS) informs counties that they must stop all noticing and collection efforts for CalFresh overissuances except for Treasury Offset Program, when a claim has been delinquent for three consecutive years. This letter supercedes Manual of Policy and Procedure Section 63.801.53 which does not comply with federal regulations. This applies to all CalFresh overissuance types.
A CalFresh overissuance claim is delinquent if the claim has not been paid by the due date and payment arrangements have not been made, or a repayment agreement has been made and a payment not made. A claim is established when the initial notice of action is sent to the household. When the claim is established, the household has 30 days to respond to state how they have chosen to pay or to request a hearing. If a household that is no longer receiving aid does not respond in 30 days, the claim is delinquent.
A claim is not delinquent if it is being paid through a repayment agreement or through allotment adjustment. A claim is delinquent on the date of a missed installment payment. A claim remains delinquent until either a repayment agreement is established or resumed, a payment is made by a former recipient, payment is received in full, or the recipient reenrolls in CalFresh and allotment reduction begins.
Once a claim is delinquent for three years, the only allowable collection method is the federal Treasury Offset Program. All other collection efforts by the county or county revenue and recovery department must stop. (ACL 20-24, March 26, 2020.)
COVID-19 CalFresh waiver of interview and signature requirements
The California Department of Social Services (CDSS) has issued guidance regarding federal waivers of the initial application interview and signature requirements. These waivers are effective from March 27, 2020 to May 31, 2020. The waivers can be applied to any application pending at the time of the release of the guidance.
Counties may waive the requirement for an interview at initial certification of eligibility for benefits if the county has verified the identity of the applicant and has completed all mandatory verifications. Households entitled to expedited service and whose identity is verified within the three-day expedited service timeframe will have their initial interview waived prior to benefit issuance. If an expedited service household does not provide missing mandatory verification, benefits will be discontinued per existing CDSS policy.
To verify identity counties must accept any readily available documentary evidence which reasonably establishes the applicant’s identity. If documentary evidence is not readily available, counties may verify identity using collateral contacts.
For other verification, counties should use electronic verification such as Work Number when it is available.
Verification of job loss is not a mandatory verification for CalFresh. Verification of job loss should be requested only if the job loss is questionable. A client’s statement of job loss is sufficient evidence that the client cannot reasonably anticipate income from that job.
For households whose interviews cannot be waived, counties may require the household to completed a telephone interview even if they request a face-to-face interview.
Counties can document in the case file that the client verbally attested to the information provided on the application instead of having an audio recording of a telephonic signature. This flexibility can only be used when a telephonic or electronic signature is not available and a wet signature has not been provided.
Counties must ensure that their phone systems have capacity and staffing to implement these waivers. Phone system performance, including dropped calls, wait times, call completion times and staff adequacy, must be monitored and adjusted to adequately serve incoming calls. (All County Welfare Directors Letter, April 2, 2020.)