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September 16, 2014 REASON FOR THIS TRANSMITTAL [ ] State Law Change [ ] Federal Law or Regulation

Change [ ] Court Order [ ] Clarification Requested by One or More Counties [ X ] Initiated by CDSS ALL COUNTY LETTER (ACL) NO. 14-63 TO: ALL COUNTY WELFARE DIRECTORS ALL CALFRESH PROGRAM SPECIALISTS ALL CONSORTIA MANAGERS ALL QUALITY CONTROL COORDINATORS SUBJECT: HOUSEHOLDS ELIGIBLE FOR CALFRESH, BUT ENTITLED TO NO BENEFITS REFERENCE: ALL COUNTY INFORMATION NOTICE (ACIN) NO. I-50- 13 (August 23, 2013), TITLE 7 CODE OF FEDERAL REGULATIONS (CFR) PART 273.10 (e)(2)(iii)(A) and (B) The purpose of this letter is to provide instructions regarding the treatment of households comprised of three or more members who are categorically eligible (CE) to CalFresh, but whose net income would not entitle them to receive any benefits. For CE households, either “traditional” or “modified” categorical eligibility (MCE), it is possible for the household to be gross income eligible as a result of CE but actually not entitled to receive benefits due to their level of net income. This is especially the case with MCE households where the gross income limit (for TANF-funded service and subsequent CalFresh eligibility) is up to 200% of the Federal Poverty Level. If the calculation of benefits for an initial month would yield an allotment of less than $10 for the household, no benefits shall be issued to the household for the initial month. Except during an initial month, those CE households with one or two members would receive no less than the current minimum allotment regardless of their net income. However, households of three or more would only receive the benefit allotment that corresponds to the amount indicated on the tables of benefit issuance based on their net income even if the household’s net income exceeds the net income limit, and even if the corresponding