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.)

Errata to EBT surcharge free ATM network

CDSS has issued an errata to its ACIN regarding the surcharge free ATM network.

The ACIN stated that MoneyPass would be surcharge free only until September 30, 2018. The errata states that the MoneyPass Network will remain surcharge free until at least September 30, 2018.

The ACIN stated that Bank of American ATMs would be surcharge free.The errata states that cardholders withdrawing from Bank of America ATMs will incur a surcharge which will be refunded within 24 to 48 hours with no action required by the cardholder.  (ACIN I-39-18E, August 3, 2018.)

Implementation of the Intensive Services Foster Care Program

The California Department of Social Services (CDSS) has issued instructions regarding the implementation of the Intensive Treatment Foster Care (ISFC) program.

The ISFC program is intended to serve children who require intensive treatment and behavioral supports, as well as children with specialized health care needs (including those served under ITFC). The program is designed to ensure that foster youth receive the services they need in a home-based family care setting and that they do not remain or enter a short-term residential program or Group Home.

To achieve this, the ISFC program provides core services and supports, including arranging access to mental health treatment, providing trauma-informed care, and providing transitional support during placement in a permanent home. ISFC program participants who meet the eligibility criteria of other publicly funded programs including mental health, education, and health services will have these services arranged for them by the Foster Family Agency (FFA) or the county.

Children eligible to receive help from the ISFC program are children or nonminor dependents in foster care who require higher level of supervision, as is determined by the Level of Care (LOC) Rate Determination Protocol.

An ISFC resource family includes a licensed foster family home or a certified family home of a licensed Foster Family Agency. An ISFC resource parent is a committed member of the youth’s team who has the ability to meet the individual’s intensive care needs. Non-related legal guardians and Kinship Guardianship Assistance Payment (Kin-GAP) Facilities are not eligible for the ISFC program.

To deliver these services, the ISFC program may either use a licensed FFA or a county licensed to run a FFA, or they may be operated directly by the county as a government program.  In either case, the ISFC program includes Therapeutic Foster Care (TFC) for youth under the age of 21 who are Medi-Cal eligible and meet medical necessity criteria. Each of the involved parties have several responsibilities. FFAs and Counties operating an ISFC must identify and train IFSC foster parents, placement matching, providing core services, and coordination of the appropriate professional and para-professional staff.

TFC parents and caregivers are specially trained and work under the supervision of the TFC agency and in conjunction with the ISFC staff (unless the youth is on probation or child welfare).

ISFC resource parents must complete participate in the development of the child’s plan ensure the well-being of the child, and be in the Resource Family Approval (RFA) program. They must also complete 40 hours of training prior to placement covering topics such as trauma, behavior de-escalation techniques, and cardiopulmonary resuscitation, and is described in depth in ACIN I-28-18.

For child placement, if a child requires immediate placement based on criteria behavioral identifiers, the Social Worker/Probation Officers may make immediate placement at the ISFC level to ensure safety pending an LOC rate determination. If a child has experienced any of the criteria behavioral identifiers within the last twelve (12) months, the placing agency may pay the ISFC rate for up to sixty (60) days, which may be extended pending local county manager approval. This extension should only be granted in the event that an HBFC setting cannot be found.

An ISFC level placement may be made before pre-placement training is completed if certain criteria are met depending on circumstance and those involved.

The ISFC does not allow more than two children in foster care and/or one ISFC eligible child placed in each resource family home, except in sibling group placements where the total number of children in a single resource family home is five (5).

FFA’s that have transitioned or are interested in transitioning to an ISFC program must submit an amended FFA Program Statement Template that is updated to reflect the new ISFC requirements to the Foster Care Rates Bureau. New ISFC programs that were not ITFC providers will receive a rate approval and issued rate letter, as well as a program letter from FCRB with a date effective. Counties not operating as an FFA that intend to opt-in to ISFC public delivery of benefits must submit an ISFC Program Description to the department pending approval.  (ACL 18-25, March 13, 2018.)