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STATE OF CALIFORNIA--HEALTH AND HUMAN SERVICES AGENCY ARNOLD SCHWARZENEGGER, Governor August 16, 2006 ALL COUNTY LETTER NO. 06-31 TO: ALL COUNTY WELFARE DIRECTORS ALL FOOD STAMP COORDINATORS ALL CalWORKs PROGRAM SPECIALISTS SUBJECT: IMPLEMENTATION OF FOOD STAMP SIMPLIFICATION OPTIONS EFFECTIVE, OCTOBER 1, 2006 REFERENCE: FOOD STAMP REAUTHORIZATION ACT OF 2002, (PUBLIC LAW 107-171 OF May 13, 2002), ALL COUNTY INFORMATION NOTICE I-40-06. The purpose of this letter is to provide County Welfare Departments (CWDs) with initial implementation instructions for the Food Stamp Program (FSP) Simplification options provided in the Farm Security and Rural Investment Act of 2002. All changes discussed below will be effective October 1, 2006 and counties are advised to take necessary actions to implement on October 1, 2006. The changes to program policy are intended to simplify and, in certain circumstances, align the FSP with the California Work Opportunity and Responsibility to Kids (CalWORKs) program. Changes include: (1) treatment of legally obligated child support payments to non-household members as an income exclusion rather than as an income deduction; (2) exclusion of certain restricted accounts as a resource; (3) exclusion of certain types of income that also are not counted as income or used for eligibility determination purposes in the CalWORKs program; (4) elimination of the household’s choice to elect actual utility costs in lieu of a Standard Utility Allowance (SUA); (5) implementation of a Limited Utility Allowance (LUA) for households that do not qualify for the SUA, but incur at least two other utility expenses other than heating and cooling; and, (6) allowance of a Telephone Utility Allowance (TUA) for households not qualified to receive a SUA or LUA. Proposed regulations are attached showing the above changes in FSP policy (enclosed as Attachment A). IMPLEMENTATION SCHEDULE For new applications: All changes are effective with new applications received on or after October 1, 2006. DEPARTMENT OF SOCIAL SERVICES 744 P Street, Sacramento, CA 95814 REASON FOR THIS TRANSMITTAL [ ] State Law Change [X] Federal Law or Regulation Change [ ] Court Order or Settlement Agreement [ ] Clarification Requested by One or More Counties [ ] Initiated by CDSS