CalWORKs

Administrative review and state hearing requests for Franchise Tax Board intercepts for CalWORKs overpayments

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California Department of Social Services (CDSS) can use the Franchise Tax Board (FTB) Interagency Intercept Collection Program to intercept state income tax refunds, lottery winnings and unclaimed property disbursements for CalWORKs overpayments.  FTB intercepts were suspended effective March, 2020 because of COVID-19.  FTB intercepts restarted on July 13, 2022.

Prior to a CalWORKs debt being submitted to FTB, the CalWORKs recipient can request a county administrative review if they believe that all or part of the debt is either not delinquent or not legally enforceable.  The recipient must submit a written request to the county for an administrative review within 30 days of receiving the FTB pre-offset notice. If the request for administrative review is submitted within this period, the county must not submit the debt to FTB until the conclusion of the administrative review process.  If the administrative review review request is submitted after that period, the county must submit the debt to FTB, and stop collection only if the recipient wins the administrative review.

If requested, recipients are entitled to inspect and copy county records related to the debt prior to the administrative review.  Counties must mail copies of records to the recipient as a reasonable accommodation for recipients unable to come to the county office.

The administrative review must: confirm the notice was adequate and language compliant,  verify that a demand letter/notice was properly issued; ensure CalWORKs overpayments resulting from client error and administrative error do not exceed the $250 collection threshold and are within the two-year collection period from the date of computatation; verify that the recipient was given the opportunity to appeal the claim and any state hearing decision; verify that no responsible party to the claim is an active member of a CalWORKs assistance unit; verify the current balance of the claim and any collections or payment agreements; verify the claim meets the criteria for referral to the FTB per MPP section 20-403; and consider any evidence provided by the recipient.

The county must issue a decision on the administrative review within 30 days of receiving the request.  The administrative review decision must include: the reason the debt is past due and legally enforceable; that the county intends to refer the claim to the FTB; and that the recipient  may request a State Hearing to review the county’s decision.

If the administrative review finds for the claimant, the county must delete the debt and return any intercepted money within 10 days of receiving the decision.

If the recipient requests a state hearing either before requesting an administrative review, or while the administrative review is pending, the request will be considered an appeal of the CalWORKs overpayment.

The recipient can request a state hearing to appeal the administrative review decision within 90 days of either the initial notice of action establishing the overpayment or the county administrative review decision.  If the hearing request is submitted within this time period, the debt cannot be submitted to FTB.

If the hearing request is submitted within 180 days of either the initial notice of action establishing the overpayment or the county administrative review decision, and the Administrative Law Judge finds good cause for late filing, FTB intercept must stop.

If the hearing request is submitted after 180 days of either the initial notice of action establishing the overpayment or the county administrative review decision, FTB intercept continues pending the hearing decision.

If the hearing request is submitted more than 90 days after either the initial notice of action establishing the overpayment or the county administrative review decision, or the county believes the issues were decided in a prior state hearing, the county can request bifurcation of the hearing in order to address state hearing jurisdiction first.

If the county wins the state hearing, the decision will state a new payment date.  If it does not, the county must issue a new demand letter or notice.  If the recipient wins the state hearing, the county must delete the debt and return any intercepted money within 10 days of receiving the decision.

If the county requests rehearing, it must comply with the hearing decision pending the outcome of the rehearing request.  If the recipient requests rehearing, and rehearing is granted within 180 days of either the initial notice of action or demand letter for payment, FTB intercept continues pending issuance of the rehearing decision.  (ACL 23-86, October 4, 2023.)

 

CalWORKs Pregnancy Special Needs revised notices of action

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California Department of Social Services (CDSS) has issued new notices of action regarding CalWORKs Pregnancy Special Needs payments.  The notice approving a CalWORKs Pregnancy Special Needs payment (M-44-211L) has been revised to include the option to provide a sworn statement or verbal attestation when medical verification is not available at the time of application. Recipients who provide a sworn statement or verbal attestation must provide medical verification of pregnancy within 30 working days following submittal of the sworn statement or verbal attestation for benefits to continue. The revised notice also informs recipients that if the pregnancy ends prior to the estimated delivery date and does not result in the live birth of a child, they are required to report that to the county within 30 days of the end of the pregnancy.

The Notice to Discontinue Pregnancy Special Needs Supplement (M44-211N), and Notice to Discontinue Cash Aid for Pregnant Person Only Assistance Unit (M82-820D) have been revised to add two new reasons to end the CalWORKs Pregnancy Special Needs Supplement: (1) when the pregnancy ends prior to the estimated delivery date and does not result in the live birth of a child, and (2) when medical verification has not been given to the county within 30 working days of receipt of the sworn statement or verbal attestation, and the recipient has not provided evidence of a good faith effort to comply with the verification requirement.

The new Notice to Discontinue Cash Aid for Pregnant Person Only Assistance Unit (M82-820D) Pregnancy Special Needs Supplement (M44-211N) has been revised to add two new reasons to end the CalWORKs Pregnancy Special Needs Supplement: (1) when the pregnancy ends prior to the estimated delivery date and does not result in the live birth of a child, and (2) when medical verification has not been given to the county within 30 working days of receipt of the sworn statement or verbal attestation, and the recipient has not provided evidence of a good faith effort to comply with the verification requirement.

These new notice of action messages will only be available in the CalSAWS computer system.  Counties may continue to use the prior versions of these notice of action messages until they are automated for all counties.  The letter does not include a timeframe for automation of these new notice of action messages.   (ACL 23-78, September 12, 2023.)

 

ebtEDGE application

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California Department of Social Services (CDSS) has provided information about the new ebtEDGE mobile and web-based application.  The ebtEDGE application will allow people who receive CalWORKs and/or CalFresh benefits with an electronic benefits transfer card to manage their card in several different ways, including: freezing and unfreezing the card, resetting the PIN, blocking interstate transactions, blocking out of state transactions, requiring biometric identification to log in to the account, account services such as change password, update email address, and update challenge questions and answers, dispute transactions (not including lost or stolen cards and fraudulent transactions), view transaction history, and set language preference.

All existing and active web-based user name and passwords will be maintained to allow immediate access to ebtEDGE through the EBT Cardholder Website.  Users will not need to create a new username or password. These same usernames and passwords can also be used when installing the mobile application on mobile devices.  (ACIN I-50-23, September 25, 2023.)

NOTE: By separate email, CDSS announced that ebtEDGE will be available for use beginning early morning on November 10, 2023, and for new accounts beginning on November 10, 2023 at 9:00 am.

New NA Back 9 form

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The California Department of Social Services (CDSS) has issued a revised version of the NA Back 9 form, which is the form on the back of every Notice of Action for a CDSS administered program about hearing rights and how to request a hearing.  The new NA Back 9 form includes the ability to request a preferred hearing modality, instructions on submitting hearing requests online or by email, and information about on-line hearings accounts.

Counties must begin using the new NA Back 9 form when automation in the CalSAWS computer system is complete.  All county generated notices must include the revised NA Back 9 after it is programmed into CalSAWS.  CDSS does not state when to expect the revised NA Back 9 to be programmed into CalSAWS or state a deadline for that programming.

Counties must include the local legal aid office(s) in the “Get Help” section of the new NA Back 9.

Agencies that use a form other than the NA Back 9 to request a hearing must have those forms reviewed and approved by the CDSS State Hearings Division.  (ACL 23-81, September 19, 2023.)

CalWORKs Income Reporting Threshold for Fiscal Year 2024

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Effective October 1, 2023, new CalWORKs Income Reporting Threshold (IRT) will be effective.  The new IRT amounts are in a chart attached to this ACL.  Income over the IRT amount must be reported mid-period, that is, when it occurs between semi-annual reports or annual recertifications.  Income that must be reported is the total combined earned and unearned income of the assistance unit.  The IRT reporting amount is 55% of the federal poverty level for a family of 3, plus the amount of income used most recently used to determine the assistance unit’s grant.  Income over the IRT must be reported within 10 days of receipt.

Assistance Units with no income or only unearned income are required to report income changes only if they receive new earned income that, when combined with other earned income, exceeds the IRT.

When income over the IRT is reported to the county, the county must determine if the income is reasonably anticipated to continue.  If it is reasonably anticipated to continue, the county must redetermine the CalWORKs grant amount using the new income amount.  If the grant will be decreased, the county must give timely and adequate notice to decrease the grant at the end of the month.  If the new income amount exceeds 130% of the Federal Poverty Level, the county must discontinue CalWORKs at the end of the month after timely and adequate notice is given.

It is possible that there will be some cases that are over the IRT, but under 130% of the Federal Poverty Level, where the assistance unit will not be eligible for a cash grant.  Those cases will have zero grant, but will be eligible for supportive services and CalWORKs special needs.

Counties must inform recipients of their IRT at application approval, at least once per semi-annual reporting period, and whenever the IRT amount changes.  The IRT level which the recipient was last notified of is used for reporting purposes.  (ACL 23-75, August 31, 2023.)

Increase in CalWORKs Maximum Aid Payment

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Effective October 1, 2023, the CalWORKs Maximum Aid Payment (MAP) will increase by 3.6%.  In addition, the 10% MAP increase that was scheduled to end on September 30, 2023 will continue.

The 3.6% increase in the MAP may cause a decrease in CalFresh benefits.  Counties must give written notice of any CalFresh grant decrease because of the MAP increase no later than September 20, 2023.

Counties must send a notice to all CalWORKs recipients informing of the MAP increase and the potential CalFresh decrease no later than September 1, 2023. Counties must also send individualized notices giving each assistance unit information specific to their CalWORKs grant amount.

CDSS has updated the child MAP charts to reflect the October 1, 2023 MAP increase.  The child MAP is used to determine if child support received on behalf of a child is more than the CalWORKs grant amount for that child.  If the child support received on behalf of a child is more than then CalWORKs grant amount for that child, the assistance unit has the option of having that child opt-out of the assistance unit.  The county may add the child back into the grant mid-period if the child support received is no longer greater than the CalWORKs grant amount.  If the child support received remains lower than the CalWORKs grant amount, the county must add the child to the CalWORKs grant at the next semi-annual review or annual recertification.

These changes must be programmed into the CalSAWS computer system no later than October 1, 2023.  If they are not, CalSAWS must provide counties with a manual work-around to ensure that families receive the correct amount of benefits.  (ACL 23-74, August 30, 2023.)