The end of SSI cash-out

The California Department of Social Services has issued instructions implementing the end of SSI cash-out.  SSI/SSP recipients are ineligible for CalFresh.  Instead, SSI/SSP recipients receive an extra $10 per month in SSP benefits.  AB 1811 Sections 38-41 end the SSI cash-out.  When implemented, this change will make SSI/SSP recipients eligible for CalFresh. The change will be implemented on June 1, 2019.  If automation cannot be completed implementation can be delayed until August 1, 2019. Newly eligible households, that is new applicants in which all members are SSI/SSP recipients, will be eligible for CalFresh as of the implementation date.  If a newly-eligible SSI/SSP only household submits an application within the calendar month prior to implementation, the county must process the application but will not issue benefits until the implementation date.

SSI/SSP recipients in ongoing households will be eligible for CalFresh at the household’s next periodic report, annual recertification, or when voluntarily requested by the household.  A new application will not be required to add an SSI/SSP recipient to an ongoing household.

Grants under the Cash Assistance Program for Immigrants increase by $10 per individual and $20 per couple.  SSI/SSP recipients will be eligible for the Food Distribution Program on Indian Reservations.

All SSI/SSP recipients will be considered elderly and/or disabled household members for CalFresh purposes.

Income, resources and deductions of the SSI/SSP recipient will be considered when determining CalFresh eligibility.  Households in which all members of household receive SSI/SSP will be considered categorically eligible for CalFresh. This means that no additional verification is needed for resources, gross or net income, Social Security Number, sponsored immigrant information or residency.

Households will not be required to report termination of SSI/SSP mid-period.  However, if termination of SSI/SSP becomes known to the county it must take action mid-period.

Transitional CalFresh cases will be treated like other ongoing CalFresh cases.

Counties must provide reasonable accommodations for the disabilities of newly eligible SSI/SSP recipients. (ACL 18-90, July 31, 2018)

CalFresh Reinstatement of Benefits

The California Department of Social Services (CDSS) has issued instructions regarding the approved extension of Food and Nutritional Services (FNS) waiver 2090046 which allows a household participating in CalFresh that has become ineligible for failure to complete semi-annual reporting or annual recertification to be made eligible again by remedying the problem within 30 days.

This extension continues current policy to reinstate the eligibility of a Non-Assistance CalFresh (NACF) household that becomes ineligible for benefits for failure to complete semi-annual report (SAR 7) or annual recertification. Reinstatement is dependent on the household providing the missing report within 30 days of the effective date of ineligibility. Then, the county will reinstate the household for the remaining months of the certification period if the household still meets all eligibility requirements.  Benefits will be prorated beginning on the date the household takes the required action.

The waiver extension beings on July 1, 2018 and ends on June 30, 2019.

The conditions for the waiver are:

  • The household’s case must be in closed status;
  • Reinstatement depends on the applicant providing the required report, information, or verification within 30 days of the date of ineligibility;
  • The household has at least one month remaining in the certification period after the effective date of ineligibility;
  • The household must fully resolve the reason for the case closure and reestablish eligibility;
  • The household must still be eligible for benefits for the remaining months of the reinstatement period;
  • Benefits for the initial month of reinstatement must be prorated from the date household performed the required action; and
  • The county must retain the established recertification period.

(ACL 18-96, August 9, 2018.)

New Treasury Offset Program Pre-Offset Warning Notices

The California Department of Social Services has issued updated Treasury Offset Program (TOP) and Franchise Tax Board pre-offset warning letters.  These letters give notice of submission of a CalFresh overissuance debt to TOP and to the Franchise Tax Board.  TOP offsets federal debts, including CalFresh overissuances, from federal payments, including federal income tax refunds.  A pre-offset warning letter is a required step in the tax intercept process.

The updated letter states that clients can request a county administrative review of the debt submitted to the TOP.  If the client disagrees with the result of the county administrative review, the client can request a federal review within 30 days of the outcome of the county review.  The letter remove reference the right to a state administrative hearing.

The letter states that additional guidance on debtor’s rights will be issued in a separate All County Letter.

The letter states that the new TOP and Franchise Tax Board pre-offset warning notices will be accompanied by a multi-language insert.  (ACL 18-66, July 16, 2018.)

CalWORKs underpayments versus supplemental payments

The  California Department of Social Services has issued instructions about CalWORKs underpayments and supplemental payments.

An underpayment occurs when the applicant or recipient receives less than the amount of aid they are entitled to in any given month.  Counties must take all reasonable steps to promptly correct underpayments.  Counties must correct underpayments for current recipients no later than the next annual redetermination or date of termination of benefits, whichever is earlier.  For reapplications and requests for restoration of aid, counties must correct underpayments within 60 days of the date aid is granted.  In all other cases, counties must correct underpayments within 60 days of a request for review.

Underpayments do not occur when the client does not voluntarily report a mid-period change.

Counties can offset overpayments from underpayments.  However, prior to offsetting, the county must properly establish the overpayment and provide a notice of action to the client.

A supplemental payment is issued to a recipient for the current month when the county recalculates the grant for the current month because of a change in circumstances and determines a client is eligible for a larger payment than was issued.  Supplemental payments are not subject to offsetting with overpayments.  Mid-period supplemental payments from a voluntary mid-period report are not underpayments and are not subject to offsetting.

An overpayment is any amount paid that the assistance unit was not entitled to.  An overpayment does not occur when an applicant or recipient fails to perform an act that is a condition of eligibility for aid, the failure to act is caused by state agency or county error and the amount of aid would have been the same if the condition had been performed.

Counties cannot demand repayment of nonfraudlent overpayments that are less than $35 from persons no longer receiving aid.  Counties can demand repayment of nonfraudlent overpayments that are more than $35 from persons no longer receiving aid but no further collection efforts can be made if the county determines that the cost of collection is more than the amount to be recovered.  (ACIN I-45-18, July 19, 2018.)

Implementation for IHSS of the Lesbian, Gay, Bisexual, and Transgender Disparities Reduction Act

The California Department of Social Services (CDSS) has issued instructions regarding the implementation of AB 959, also known as the Lesbian, Gay, Bisexual, and Transgender Disparities Reduction Act in the In-Home Supportive Services Program.

As of July 1, 2018. CDSS, Department of Health Care Services, Department of Public Health, and the California Department of Aging must collect information on individuals’ sexual orientation and gender identity. This information will be used to coordinate care, improve services, and understand client diversity to guide funding and policy decisions.

The State will collect this information on the SOC 295, the application for In-home Supportive Services. While counties must ask for this information, applicants are not required to respond. Counties will not be required to collect this information from current IHSS recipients, and the information that is collected will not be connected to the individual providing the response.

Several other changes have also been made the SOC 295 Application form:

  • The Household Information section now includes all people living in the home, not just family members. This section has been modified to include a non-relatives checkbox.
  • The Ethnic and Language Information Section now includes two separate questions, one about an individual’s preferred language to read, and one about their preferred language to speak. The list of ethnic codes now includes the options of “Other” and “Mixed Ethnicity” as well.
  • The Communication Accommodations Section now includes the option of the Electronic Timesheet System.

CDSS is responsible for compiling sexual orientation and gender identity information and giving it to the legislature.  (ACL 18-77, June 27, 2018.)

Stepsibling or half-sibling opt-out of CalWORKs Assistance Unit

CDSS has issued instructions regarding SB 380.  Effective November 1, 2018, a CalWORKs assistance unit can receive full child support payments for a stepsibling or half-sibling of an eligible child instead of cash aid for the step/half sibling.  Those child support payments will not be considered in determining CalWORKs eligibility or grant amount.

Current law requires that most CalWORKs applicants and recipients assign their right to collect child support to the county. Current law also requires that the income of the sibling of an eligible child living in the same home as the eligible child be counted as income for CalWORKs.

The new rule allows CalWORKs applicants or recipients to exclude the needs of stepsiblings or half-siblings when determining the amount of CalWORKs the family will receive and allows such families to keep all current child support payments made on behalf of that child if: (1) The stepsibling or half-sibling lives with at least one eligible child; (2) He or she is a child for whom child support payments are received; (3) The amount of current child support received for that child is greater than the cash aid amount for that child and (4) The parent or caretaker relative requests in writing that the child not be included in determining the CalWORKs grant amount.

The stepsibling or half-sibling is considered when determining the maximum amount of income the family can have and be eligible for CalWORKs.  The stepsibling or half-sibling will be eligible for CalFresh, Medi-Cal, child care and special needs.  All other eligible members of the household will continue to receive CalWORKs.

The designation of whether to exclude a step/half-sibling can only be reevaluated at redetermination or semi-annual reporting.  The parent or caretaker relative can also ask to end the exclusion of the step/half-sibling mid-period if the child support payments decrease or end. Parents or caretaker relatives will need to provide all necessary verifications for the child in order to end the exclusion mid-period.

When the stepsibling or half-sibling ages out of CalWORKs, any child support arrears collected will count as income for CalWORKs.

When a stepsibling or half-sibling receiving child support is excluded, all of that child’s income does not count for the Assistance Unit.  For example, if the child is receiving both child support and Social Security Disability, the Social Security Disability will also not count as income for CalWORKs.

Social Security dependent’s benefits are considered child support when determining whether a stepsibling or half-sibling can be excluded.

When determining if the child support amount a stepsibling or half-sibling exceeds the CalWORKs grant, only child support directed to that child is considered.  This means that if a child support order is unallocated among multiple children, that child support is not a basis for excluding the child.  In that situation, the family needs to seek a modification of the child support order to have it expressly allocated.

Counties must notify applicants and recipients in writing at application and at each retermination. (ACL 18-82, August 1, 2018.)