Governor Newsom has issued an executive order that CARES Act stimulus payments and any other payments in response to COVID-19 are exempt from attachment, levy, execution, or garnishment without a claim. This includes financial institution offsets and liens for including fees charged to or debts arising from the account in which the funds are held. Only exceptions are for child support, spousal support or criminal restitution payable to victims. Any money collected prior to the date of the order must be return without any further action. (Executive Order N-57-20, April 23, 2020.)
Summaries of select CalWORKs, CalFresh, Health and Housing Regulations
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COVID-19 admissions to and discharges from facilities under DDS jurisdiction
The Department of Developmental Services (DDS) has issued a directive regarding admissions to and discharges from facilities under its jurisdiction. DDS is now denying admission and delaying discharge from the Porterville Developmental Center, the Canyon Springs Community Facility and all Stabilization, Training, Assistance and Reintegration homes under its jurisdiction and control.
DDS and Regional Center staff can continue to prepare for admissions and discharges. For people in community transition planning, the regional resource development project will have conversations to ensure where feasible that such planning continues. (Regional Center Executive Directors Letter, March 25, 2020, extended to May 20, 2020.)
COVID-19 individual stimulus payment for dependents of Social Security, SSI and VA benefits
The Internal Revenue Service (IRS) has issued a special alert that Social Security and Railroad Retirement recipients who enter information on the IRS portal by noon Eastern time on April 22, 2020 can get the $500 per dependent payment at the same time as their individual stimulus payment. After noon Eastern Time on April 22, 2020, Social Security recipients the will no longer be available to enter dependent information. After noon Eastern time on April 22, 2020, Social Security and Railroad Retirement recipients will only be able to get the $500 per dependent payment by filing a tax return and the $500 per dependent payment will be issued sometime after the $1,200 individual payment.
SSI and VA benefits recipients will have more time to enter dependent information into the portal. Their deadline has not yet been determined. Note that a Social Security press release states that the deadline will be in April. After that deadline, SSI and VA benefits recipients will need to file a tax return to get the $500 per dependent payment. (IR 2020-76, April 20, 2020.)
COVID-19 insurance refunds, credits and reductions
The Department of Insurance (DOI) has orders insurers to make premium refunds for March and April, 2020 because of COVID-19 because of curtailed activities of policyholders. These refunds are for private auto insurance, commercial auto insurance, workers’ compensation insurance, commercial multiple peril insurance, commercial liability insurance, medical malpractice insurance, and any other line of coverage where measures of risk have become substantially overstated because of COVID-19.
Insurers can reclassify exposure or reduce the exposure base (miles driven, payroll receipt etc) without prior approval of rates or rules by DOI if done consistent with the insurer’s existing rate plan.
Insurers may refund premium without prior DOI approval if they apply a uniform premium reduction for all policyholders in an individual line of insurance. The amount of the refund can be an average percentage based on estimated change in risk and/or reduction in exposure base.
Alternatively, insurers can reassess the classification and exposure bases of affected risks on a case-by-case basis. For example, an insurer could reclassify a personal automobile exposure from commute use to pleasure use and reduce estimated miles driven accordingly for the duration of COVID-19.
Insurers must provide each affected policyholder a notice of the amount of the refund, and a check, premium credit, reduction, return of premium or other adjustment within 120 days. Insurers must report to DOI actions taken and planned to refund premiums within 60 days. (Bulletin 2020-3, April 13, 2020.)
COVID-19 PUA implementation and stimulus payments for undocumented persons
Governor Newsom has issued an Executive Order and press release regarding implementation of Pandemic Unemployment Assistance (PUA) and state stimulus payment for undocumented workers. PUA will provide benefits for persons ineligible for regular unemployment insurance, including independent contractors, persons who are self-employed, gig workers, and persons who do not have a sufficient employment history to be eligible for regular Unemployment Insurnace, who are unemployed or partially unemployed because of COVID-19. The PUA program will begin in California on April 28, 2020. Benefits will be issued within 24-48 hours.
The Employment Development Department (EDD) will launch a new call center that will be open 7 days per week from 8:00 am to 8:00 pm. EDD will also expedite access to the Work Share program to avert layoffs.
Governor Newsom also announced state funded stimulus payments for undocumented persons in California of $500 per person and a maximum $1,000 per household beginning in May. These funds will be disbersed through regional nonprofit organizations.
Governor Newsom also reiterated that COVID-19 testing, evaluation and treatment is considered emergency services under Medi-Cal, regardless of where they are received. This means all Medi-Cal beneficiaries can receive COVID-19 treatment regardless of documentation status. (Executive Order N-50-20 and Press Release, April 15, 2020.)
COVID-19 automatic individual stimulus payments to SSI recipients
SSI recipients will receive the federal individual stimulus payments automatically. The payments will be made by direct deposit, Direct Express debit card or paper check depending on how the recipient normally receives their SSI benefits. SSI recipients should receive the payment by early May.
SSI recipients who have dependent children will need to register on the Internal Revenue Service portal or file a tax return to receive the payment for their dependents.
The individual stimulus payment will not be considered income for purposes of SSI and will be excluded as a resource for 12 months. (Department of the Treasury Press Release, April 15, 2020.)