CalWORKs

EITC changes

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CDSS has notified counties about changes to the federal and state Earned Income Tax Credit (EITC) programs.  The maximum income and credit limits for federal EITC has increased for the 2017 tax year.  CDSS’ notice includes a table of the 2017 tax year maximum income and credit limits.

The California EITC is expanded to increase the income limit and to allow self-employment income to be eligible for the California EITC starting in the 2017 state tax year.  CDSS’ notice includes a table of the California maximum income and credits for the 2017 tax year.

EITC payments are exempt from consideration as income when determining CalWORKs eligibility and grant levels.  EITC payments are permanently excluded as income when determining eligibility and grant amounts for CalWORKs and CalFresh.

EITC payments are exempt from resource consideration for CalWORKs and CalFresh for 12 months starting with the month of receipt of payment.  Counties are encouraged to inform CalWORKs recipients that EITC payments are exempt from consideration as property for 12 months so that they do not need to spend down the EITC payment to maintain CalWORKs eligibility.  (ACL 17-120, December 5, 2017.)

CalWORKs and CalFresh Administrative Disqualification Hearings

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The California Department of Social Services has issued instructions about Administrative Disqualification Hearings (ADH) for CalWORKs and CalFresh.  Counties investigate cases of alleged Intentional Program Violation (IPV).  These cases are pursued either through administrative or criminal proceedings.

For CalFresh, an IPV is intentionally either making a false or misleading statement; misrepresenting, concealing or withholding facts; or committing any act that violates the Food Stamp Act or the CalFresh program regulations. The county can initiate a CalFresh ADH by informing CDSS State Hearings Division that it has clear and convincing documentary evidence of an IPV.

For CalWORKs, an IPV is intentionally making a false or misleading statement or misrepresenting, concealing or withholding facts; committing any act intended to mislead, misrepresent, conceal or withhold facts or propound a falsity; and committing these acts to establish or maintain CalWORKs eligibility or to increase or prevent a reduction in the amount of a CalWORKs grant.  The county can initiate a CalWORKs ADH when the county determines that the respondent has committed an ADH based on preponderance of the evidence.

If the case meets the definition of an IPV, the case must be referred to the District Attorney for prosecution or to the ADH process.  If the case is not accepted by the District Attorney or the District Attorney does not act on the referral, the county must initiate ADH proceedings.

Upon receipt of an ADH referral, CDSS will give written notice of a state hearing to the respondent at least 30 days before the hearing.  The notice of hearing must be either personally served or mailed by first class mail at least 30 days before the hearing.  If the respondent no longer receives benefits, the county must verify the respondent’s mailing address prior to mailing the IPV notice.  If the hearing notice is returned as undeliverable, the hearing will be postponed to allow the county to verify or obtain a valid mailing address.  If the hearing notice continues to be returned as undeliverable, a hearing will not be scheduled until the county obtains another verified address.

If an individual is found to have committed an IPV through the ADH process or the individual signs an ADH waiver, the county must send the individual an Administrative Disqualification Notice using a specified form.  (ACL 17-118, November 21, 2017.)

CalWORKs Educational Opportunity and Attainment Program

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The California Department of Social Services has issued instructions regarding implementation of the CalWORKs Educational Opportunity and Attainment Program at Welfare and Institutions Code Sections 11340-11346.  CalWORKs recipients can apply for a one-time $500 award for completing a high school diploma or its equivalent, and a one-time $1,000 stipend for enrollment in a term of an education or training program leading to a career technical education certificate, an associate’s degree or a bachelor’s degree.

The $500 award for completing a high school degree or its equivalent is available to any individual receiving CalWORKs on his or her behalf regardless of whether the recipient has a Welfare-to-Work plan for completion of a high school diploma or equivalent after January 1, 2018.  Cal-Learn participants are ineligible for this award.  If verification of completion is submitted before the 11th of the month, payment must be made by the end of the month.  If verification is submitted after the 11th of the month, payment must be made during the next month.

The $1,000 stipend requires enrollment in an education or training program that is included in the recipients Welfare-to-Work plan for a term that begins on or after January 1, 2018.  The county must certify eligibility for the stipend within 10 business days of receiving verification and must issue the payment at the outset of the term.  Completion of the term is not required to receive the stipend.

Recipients are ineligible for either the education incentive award or the education stipend in any month during which the recipient is sanctioned.  Recipients are permanently ineligible if they have exhausted their 48-month time on aid limit or have committed public assistance fraud.

For CalWORKs, the awards are considered a non-recurring lump sum and property in the month received and any subsequent months.  The awards are not income for CalWORKs.  For CalFresh, the awards are excluded as income and resources.

Counties cannot require recipients to use the awards for CalWORKs supportive services.

The program has $4 million in one-time funding.  Counties are required to provide the awards only to the extent funding is allocated.   (ACL 17-115, November 20, 2017.)

CalWORKs asset limit increase for families with an elderly or disabled member

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The California Department of Social Services (CDSS) has increased the CalWORKs asset limit for families that include an elderly (age 60 or over) or disabled household member to $3,500 effective October 1, 2017.  The CalWORKs asset limit remains the same for all other households.

If counties find that an assistance unit was denied CalWORKs or had their CalWORKs discontinued as a result of exceeding the prior $3,250 asset limit, counties must re-evaluate eligibility and restore any lost benefits effective October 1, 2017 and moving forward.

If the county has collected or is currently collecting an overpayment based on excess resources for a family with an elderly or disabled member after September 30, 2017, the county must review the case to determine if the family is under the new $3,500 asset limit, and if so must cancel the overpayment and return any funds collected.  (ACL 17-108, October 25, 2017.)

Hearing representative responsibilities and privileges process

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The California Department of Social Services (CDSS) has issued clarification about county hearing representative responsibilities before a hearing.  The county hearing representative initially impartially reviews the hearing request.  After the review, the hearings representative either orders the county to take corrective action or defends the action at hearing.  The county hearings representative also provides claimants with information about the hearing process, including preparing a position statement.

The county hearings representative ensues that aid paid pending is paid when appropriate, identifies the issues raised in the hearing request, reviewed the disputed action(s) based on available evidence and regulations, and determines whether the case can be resolved or should proceed to hearing.

The county hearings representative also must provide reasonable accommodations for claimant’s disabilities, and services for limited English proficient claimants, including using forms that have been translated and using an interpreter for communication with the claimant at no cost to the claimant.

If the hearings representative cannot identify the issues from the hearing request, the hearings representative should attempt to contact the claimant to discuss the case.  If the hearings representative cannot reach the claimant, the hearings representative should review the case file for 90 days prior to the hearing request to determine issues.  If the hearings representative still cannot determine the issues, the hearings representative should write a limited position statement for the hearing. If the issues are identified on the day of the hearing and the hearings representative and claimant cannot reach a resolution, the hearings representative can request postponement of the hearing.

If the hearings representative determines the county action is correct, the county hearings representative should contact the claimant to explain the basis for the county action.  The hearings representative cannot imply that the claimant cannot or should not proceed with the hearing.  The hearings representative can explain the claimant’s right to withdraw if the claimant states they do not want to proceed with the hearing, but the county hearings representative cannot request a withdrawal.

If the hearings representative determines the county action is incorrect, the county representative must contact the case worker to take corrective action.  The county hearings representative must also contact the claimant to resolve the case without a hearing.  If that resolution is a conditional withdrawal, the language of the conditional withdrawal must be specific regarding the duties of the county and claimant for the action to be corrected.  A conditional withdrawal that states the county will re-review its action is insufficient. Conditional withdrawals should be in writing.  The county must ensure that corrective action is completed within 30 days.  If the claimant still chooses to attend the hearing, the hearings representative must be prepared for the hearing.

The hearings representative should inform the claimant of their right to review the case file and provide that access in two business days.  If the hearings representative withholds documents from the claimant pursuant to a claim of privilege, the hearings representative must prepare and give to the claimant a form identifying the withheld documents and the basis of the claim of privilege or confidentiality.  Welfare fraud investigation information from an active investigation is confidential unless that information has been used or relied on by the county in making its decision to take administrative action.  When the claimant challenges a county claim of privilege or confidentiality, the administrative law judge will convene an in camera proceeding to adjudicate that claim.

Finally, CDSS has issued guidelines for the content and format of county position statements for hearings.  (ACL 17-102, September 29, 2017.)

Use of Immunization Registry and new immunization forms

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CDSS has issues recommendations and instructions regarding the process for verifying immunizations for children under age 6 who receive CalWORKs.  CDSS states that clients have a responsibility to provide verification of immunization of children under age 6 and counties must first ask client to provide verification of immunization.  If a client does not have the verification, CDSS strongly recommends that counties use the California Immunization Registry 2 to search for verification before asking the client to get the needed documents.  If the client is unable to provide the requested verification after a good faith effort, the county is required to assist in getting the needed verification.

Applicants under age six or children under age six being added to the household must provide verification of immunization within 30 days of being found eligible for Medi-Cal or within 45 days if already receiving Medi-Cal.  Counties must provide clients with the CW 2209 form to claim good cause.

The immunization penalty must be removed when all children in the Assistance Unit have reached age six.  Removal of the penalty must be done manually because it is not automated in the consortia computer systems.  The penalty continues if there is a child under age six in the Assistance Unit who has not been immunized and does not meet one of the exemption or good cause criteria.

CDSS issued a new CW 101 informing notice about the immunization requirement.  The form notice is now required.  Counties or computer consortia cannot change the form without CDSS’ approval.  (ACL 17-87, September 7, 2017.)