Potential Intentional Program Violation policy

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The California Department of Social Services (CDSS) has issued a policy about potential Intentiional Program Violations (IPVs).  Counties can only establish nonfraudulent CalWORKs overpayments and CalFresh overissuances for two years prior to the date of discovery.  Any benefits paid more than 24 months prior to the date of discovery cannot be included in a nonfraudulent overpayment or overissuance claim.

A fraudulent overpayment or overissuance claim is a claim caused by an IPV.  An IPV can only be established by an administrative disqualification hearing, a signed administrative disqualification hearing waiver, a criminal court conviction, or a signed disqualification consent agreement.  If a county determines that a claim previously established as nonfraudulent is fraudulent, the county must reclassify the claim as an IPV and issue a new notice.

CDSS has created the potential IPV claim for cases where the county believes there is an IPV, and the claim is beyond the 24-month establishment period.  When the county creates a potential IPV claim, there will be two claims on the case, the nonfraudulent claim and the potential IPV claim.  Collection on the potential IPV claim must be immediately suspended.

IPV claims are limited to six years before the date of discovery.

If a potential IPV claim is substantiated through either criminal prosecution or the administrative disqualification hearing process, the county must change the potential IPV to an IPV.  If a potential IPV is not substantiated through either criminal prosecution or the administrative disqualification hearing process, the county must delete the potential IPV claim.

Starting March 1, 2023, if a county investigation reveals sufficient evidence to refer the case for either criminal prosecution or an administrative disqualification hearing, the county must send a potential IPV informing notice to inform the client of the potential IPV amount beyond the 24-month period. (ACL 23-19, February 2, 2023.)

CalFresh waivers for the end of the Public Health Emergency

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California has been approved for three federal waivers to assist with the end of the federal COVID-19 Public Health Emergency.

California has a waiver for address changes that will be effective from April 1, 2023 to March 31, 2024.  Under the waiver, if a county receives a verified change of address, but does not receive updated shelter cost information, the county will not change the household’s shelter cost.  The county must send a notice encouraging the household to report any changes in shelter costs.  The county must also ask about shelter cost at the household’s next recertification or periodic report.  If the county believes the change of address information is questionable or unclear, the county must respond to the information as required in 7 C.F.R. 273.12(c)(3).

The waiver of the initial application and recertification interview is extended until March 31, 2024.  As part of the waiver extension, starting April 1, 2023 or upon completion of automation, counties must send a written explanation of simplified reporting to all households; provide a verbal explanation of the work requirement if the county contacts the household or the household is subject to mandatory employment and training; send a written notice to all households subject to the general work requirements, the Able-Bodied Adults without Dependents work requirements, and mandatory employment and training; and screen all households for exemptions from work requirements and the Able-Bodied Adults without Dependents work requirements.

The waiver of the recording requirement for telephonic signatures for initial applications and recertifications is extended to March 31, 2024. (ACWDL, March 28, 2023.)

Treasury Offset Program and Franchise Tax Board Intercept for CalFresh overissuances

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The California Department of Social Services (CDSS) has issued guidance on suspending collection of CalFresh overissuances by Treasury Offset Program (TOP) and Franchise Tax Board Intercept.  TOP is the federal program to collect overissuances from federal tax refunds or other federal benefits such as Social Security.

When an individual has an overissuance that becomes delinquent, it is referred to both TOP and the Franchise Tax Board for collection.  After three years, TOP is the only method that can be used to collect on CalFresh overissuances.  However, if the individual goes back on CalFresh, the overissuance can be collected by grant reduction.  In that instance, the case must be removed from TOP and Franchise Tax Board because grant adjustment is the only allowed method of collection.

If the individual stops receiving benefits, the case is then returned to TOP for collection as long as the case is delinquent.  The case is considered delinquent until the individual establishes or resumes a repayment agreement, the individual makes a satisfactory payment, the individual pays the entire debt, or, the individual begins receiving CalFresh again.

CDSS states that if an individual stops receiving CalFresh, the county can also reactivate collection by the Franchise Tax Board.   (ACL 23-07, January 11, 2023.)

Time limit exemption for zero basic grant cases.

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The California Department of Social Services has issued a reminder about counting zero basic grant cases toward the Temporary Aid to Needy Families (TANF) federal time on aid clock, and CalWORKs state time on aid.  TANF and CalWORKs each have a 60-month time on aid limit.  However, the federal TANF clock and the state CalWORKs time in aid clock can count slightly different months.  The TANF 60-month time limit applies to any months in which “assistance” is received.

Zero basic grant cases do not count toward the TANF time clock.  Zero basic grant cases are: when aid payments are not issued when the grant is under $10, months when a payment is not issued due to a penalty which reduces the payment to zero, the grant is under $10, the grant is $0 because of overpayment recoupment, and the grant is diverted to an employer to offset the recipient’s wages in an on-the-job training program.

By contrast, except for when the grant is under $10, zero basic income cases count towards the CalWORKs time limit.

Nonrecurring, short-term benefits such as homeless assistance do not count toward the TANF time clock.  This means that months where someone receives only short-term benefits such as homeless assistance do not count toward the TANF time clock.

However, special needs payments such as homeless assistance count toward the CalWORKs time clock.  This means that months where someone receives only short-term benefits such as homeless assistance count toward the TANF time clock.  (ACIN I-67-22, October 11, 2022.)

February 2023 emergency CalFresh allotment and end of emergency allotments

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California has been approved to issue an emergency allotment of CalFresh for February. 2023.  All households will receive at least the maximum CalFresh allotment.  Households eligible to receive the maximum allowable allotment based on household size are now eligible to receive an emergency allotment of $95 per month. Households who are not eligible to receive the maximum allowable allotment based on household size, but whose emergency allotment would be less than $95 per month to receive the maximum allotment, will receive additional CalFresh benefits to raise their emergency allotment to the $95 minimum.

The emergency allotment will be issued on March 26, 2023.

The February, 2023 emergency allotment will be the last emergency allotment.  Beginning April 2023, CalFresh benefits will return to the regular amount listed on the most recent notice of action.  All CalFresh recipients are mailed an informing notice regarding the end of the emergency allotment.  CDSS is also doing a communications campaign to inform CalFresh recipients about the end of the emergency allotments

Counties are reminded that there are several income deductions, allowances, and exclusions that can help maximize household allotments while minimizing the impact of the end of emergency allotments.  These deductions include the earned income deduction, self-employment deduction, standard deduction, excess shelter deduction, homeless shelter deduction, standard utility allowance, limited utility allowance, telephone utility allowance, dependent care deduction, standard medical deduction, excess medical expense deduction, and child support exclusion.    (ACWDL, February 2, 2023.)

Disaster Unemployment Assistance for December and January storms

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Californians in multiple counties can now apply for Disaster Unemployment Assistance (DUA).  DUA is available to workers business owners, and self-employed persons who lost their job or business, or had their work hours reduced or interrupted because of impacts of the severe storms.

DUA applies to losses beginning the week of January 1, 2023.  Eligible full-time workers and self-employed persons can get between $166 and $450 per week for up to 28 weeks.  Part-time workers and part-time self-employed persons may be eligible.  The last payable week of DUA ends July 15, 2023.

DUA is available to storms victims who meet any of the following criteria:

  1. Worked or were a business owner or self-employed, or were scheduled to begin or resume work or self-employment, in the disaster area and lost work or had their hours reduced or interrupted because of the disaster.
  2. Cannot reach work because of the disaster or can no longer work or perform services because of physical damage or destruction to the place of employment or self-employment as a direct result of the disaster.
  3. Live in the major disaster area and cannot reach their place of work or self-employment outside the major disaster area because of the disaster.
  4. Cannot perform work or self-employment because of an injury caused by the disaster.
  5. Became the major support for their household because of the death of their head of household caused by the disaster.

Persons must have applied for and used all regular unemployment insurance benefits, or be ineligible for regular unemployment benefits, and remain unemployed, to be eligible for DUA.  In addition, the work or self-employment that the person can no longer do must have been their primary source of income.

Applicants must submit all required documentation within 21 days of applying.  Required documentation includes the most recent federal tax form or check stubs, or other documentation to support that the applicant was working or self-employed when the disaster happened.

Unless the applicant has good cause, applications for DUA must be filed by:

February 22, 2023 for residents of Sacramento, Merced, Santa Cruz, Monterey, San Luis Obispo, Santa Barbara, and San Joaquin counties.

February 27, 2023 for residents of Calaveras County.

March 2, 2023 for residents of San Mateo County.

March 9, 2023 for residents of Alameda, Contra Costa, Mendocino, and Ventura counties.

(EDD News Releases 23-02, January 23, 2023; 23-03, January 26, 2023; 23-04, January 31, 2023, and 23-05, February 7, 2023.)