CalWORKs mental health and substance abuse services

CDSS has provided information about changes to CalWORKs mental health and substance abuse services that are effective between July 1, 2017 and July 1, 2018.  For that period, counties can provide mental health and substance abuse services to children of CalWORKs recipients, and can contract with community-based providers and other local agencies to provide these services.

Children are eligible for these services if the parent(s) are participating or required to participate in Welfare –to-Work (WTW), exempt volunteers or are sanctioned or removed from CalWORKs for failure to comply with WTW requirements.  At the county’s discretion, services can be provided to children of adults who have a temporary WTW exemption.  Services can be provided to children of timed out clients as a post aid service.  Children of adults who are ineligible for CalWORKs are not eligible for services.

This funding must be used in addition to, and not as a substitute for, available mental health or substance abuse funding available from other government programs.  Funding cannot be used for services covered under Medi-Cal or a county mental health plan.

A parent cannot be sanctioned because of a child’s refusal to participate in mental health or substance abuse services.  Refusal or failure of an adult to participate in assigned activities does not prevent children from being referred to or receiving mental health or substance abuse services.

Counties can now send clients to community based providers, including county mental health departments, for mental health evaluations.  That provider must evaluate the recipient and determine any treatment needs, including the extent to which the individual is capable of employment and under what conditions the individual can work. The evaluation must be considered in development of the WTW plan.  Activities and services in the WTW plan must accommodate any restrictions associated with any mental, emotional or substance abuse condition identified in the evaluation.  (ACL 18-04, January 25, 2018.)

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.)

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.)

EITC changes

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

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.)