63-108 BENEFIT REDUCTION, SUSPENSION, OR CANCELLATION 63-108

(a) Where there are computerized issuance systems, the program used for calculating allotments shall be altered to reflect the appropriate percentage reduction in the Thrifty Food Plan for each household size and the computer program shall be adjusted to allow for a minimum benefit of $10 for one and two-person households. The computer program shall also be adjusted to provide for the rounding of benefit levels of $1, $3, and $5 to $2, $4, and $6 respectively.

(b) Where manual issuance is used, CWDs shall reproduce the revised issuance tables provided by CDSS and distribute sufficient copies to issuance personnel in time to allow benefit reduction during the month ordered by SDSS.

(c) In a direct access issuance system using HIR cards, the CWD has the option to reduce benefits by changing all HIR cards before issuance for the affected month or by adjusting individual HIR cards when the household appears at the issuance office.

.3 Suspensions and Cancellations

.31 If a decision is made to suspend or cancel the distribution of food stamp benefits, CDSS shall notify the CWDs of the date suspension or cancellation shall take effect.

.32 In the event of a suspension or cancellation of benefits, the provision for a $10 minimum benefit level for households with one or two members only shall be disregarded and all households shall have their benefits suspended or cancelled.

.33 Upon receiving notification that an upcoming month's issuance is to be suspended or cancelled, CWDs shall take immediate action to effect suspension or cancellation. This may include computer adjustments, and notifying issuance agents and personnel.

.34 Upon being notified by CDSS that a suspension or cancellation of benefits is over, CWDs shall act immediately to resume issuing benefits to certified households in accordance with Section 63-602.42.

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MANUAL LETTER NO. FS-94-02 Effective 2/1/94

Page 79

FOOD STAMP REGULATIONS

Regulations GENERAL PROVISIONS 63-108 (Cont.)

63-108 BENEFIT REDUCTION, SUSPENSION, OR CANCELLATION 63-108

PROCEDURES (Continued)

.4 Affected Allotments

.41 Reduced benefits shall be calculated for all households; however, any households with one or two members whose reduced benefit would be less than $10 shall receive a minimum benefit of $10, except as specified in Section 63-108.22.

.42 Allotments or portions of allotments representing restored or retroactive benefits for a prior unaffected month shall not be reduced, suspended, or cancelled, even though they are issued during an affected month.

.5 Notification of Eligible Households

CWDs shall notify households of the reduction, suspension or cancellation of Program benefits.

.51 At such time as it is deemed necessary, CDSS shall inform CWDs of the method(s) for disseminating the notices of the reduction, suspension or cancellation of program benefits; and shall provide CWDs with both the language and format to be used in such notices.

.6 Restoration of Benefits

Households whose allotments are reduced or cancelled as a result of the enactment of these procedures are not entitled to the restoration of lost benefits at a future date. However, if the Food and Nutrition Service determines at a later date that previously reduced, cancelled, or suspended benefits are to be restored, CDSS will notify the CWDs of the amounts to be restored and the time frame in which restoration must be made.

.7 Records of Reduction, Suspension, or Cancellation

CWDs must be able to produce a record of the amount of benefits each household receives during a month in which a reduction is in effect along with a record of the amount of benefits each household would have received had full monthly allotments been distributed. Also, in the event benefits are cancelled, or suspended, CWDs must be able to produce a record of the amount of benefits each household would have received had full monthly benefits been distributed.

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FOOD STAMP REGULATIONS

63-108 (Cont.) GENERAL PROVISIONS Regulations

63-108 BENEFIT REDUCTION, SUSPENSION, OR CANCELLATION 63-108

PROCEDURES (Continued)

.8 Effects of Reductions, Suspensions or Cancellations on the Certification of Eligible Households

.81 CWDs shall accept and process applications (new and recertifications) during a month(s) in which a reduction, suspension, or cancellation is in effect. Except as otherwise provided in Section 63-108, applications shall be processed in accordance with Chapters 63-300, 63-400, and 63-500.

.82 If an applicant is found to be eligible for benefits and a reduction is in effect, the amount of benefits shall be calculated by reducing the Thrifty Food Plan amount by the appropriate percentage for the applicant's household size and then deducting 30 percent of the household's net food stamp income from the reduced Thrifty Food Plan amount.

EXAMPLE

If it is determined that a 25 percent reduction in the Thrifty Food Plan amount is to be made for all four-person households, the reduction would be calculated as follows: The Thrifty Food Plan amount for a four-person household ($209) would be reduced by 25 percent to $157. Then 30 percent of the net food stamp income would be deducted from the reduced Thrifty Food Plan Amount. For example, 30 percent of a net food stamp income of $200, ($60), would be deducted from the reduced Thrifty Food Plan Amount ($157), resulting in a reduced allotment of $97.

.83 If an applicant is found to be eligible for benefits while a suspension or cancellation is in effect, no benefits shall be issued to that applicant, until issuance is again authorized by CDSS.

.84 The reduction, suspension, or cancellation of allotments in a given month shall have no effect on the certification periods assigned to households.

.85 Households whose certification period expires during a month in which allotments have been reduced, suspended, or cancelled shall be recertified according to Section 63-504.6.

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FOOD STAMP REGULATIONS

Regulations GENERAL PROVISIONS 63-108 (Cont.)

63-108 BENEFIT REDUCTION, SUSPENSION, OR CANCELLATION 63-108

PROCEDURES (Continued)

.86 Expedited Services

.861 Reduced Benefits

Reduced allotments shall be provided within the time frame specified in Section 63-301.53.

.862 Suspended Benefits

If a suspension is in effect at the time a household has been determined eligible for both program benefits and expedited services, issuance of benefits shall be withheld until the suspension is ended. However, the time frame for completing the processing shall be no later than the close of business of the fifth calendar day following the date the application was filed.

.863 Cancellation of Benefits

Households determined eligible for both program benefits and expedited services during a month of benefit cancellation shall receive expedited processing. However, the time frame for completing the processing shall be no later than the close of business of the fifth calendar day following the date the application was filed, or the end of the month of application whichever date is later.

.864 Issuance after Suspension or Cancellation Period

After the suspension or cancellation period ends, benefits shall be issued in accordance with Section 63-301.531, except that the CWD shall use the final date of suspension or cancellation in lieu of the date of application.

.87 Issuance Services

In the months in which the issuance of benefits has been suspended or cancelled, issuance services shall be available to households receiving restored or retroactive benefits for a prior, unaffected month.

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FOOD STAMP REGULATIONS

63-108 (Cont.) GENERAL PROVISIONS Regulations

63-108 BENEFIT REDUCTION, SUSPENSION, OR CANCELLATION 63-108

PROCEDURES (Continued)

.9 State Hearings

Any household that has its allotment reduced, suspended, or cancelled as a result of an order issued by CDSS in accordance with these regulations may request a state hearing if it disagrees with the action, subject to the following conditions:

.91 CDSS shall not be required to hold state hearings unless the request for a state hearing is based on the household's belief that its new benefit level was computed incorrectly or that the rules were misapplied or misinterpreted.

.92 CDSS shall deny state hearing to those households who are merely disputing the fact that a reduction, suspension, or cancellation was ordered.

.93 Under these circumstances (.91 and .92 above) households are not entitled to a continuation of benefits pending the state hearing.

.94 A household may receive retroactive benefits in an appropriate amount if it is determined that its benefits were reduced by more than the amount by which the county was directed to reduce benefits.

NOTE: Authority cited: Sections 10554 and 18904, Welfare and Institutions Code. Reference: 7 CFR 271.2 and Sections 10554 and 18904, Welfare and Institutions Code.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-94-02 Effective 2/1/94

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FOOD STAMP REGULATIONS

PROGRAM REQUIREMENTS

TABLE OF CONTENTS

Section

Program Requirements 63-200

General Terms and Conditions 63-201

Coupons as Income .1

No Aid Reduction .2

Disclosure .3

Information Available to the Public .4

Records and Reports .5

Retention of Records .6

Program Administration and Personnel Requirements 63-202

Merit Personnel .1

Bilingual Requirements .2

Internal Controls .3

Training .4

Forms .5

Nondiscrimination Compliance 63-203

Requirement .1

Right to File a Complaint .2

Program Monitoring Systems 63-204

Location and Hours of Operation of Certification and Issuance Services 63-205

Hours of Operation .1

Level of Service .2

Liabilities 63-206

CWD Rights and Responsibilities .1

Coupon Shortages, Losses, Unauthorized Issuances,

Overissuances and Undocumented Issuances .2

Coupon and Cash Liabilities .3

Reporting of Coupon and Mail Issuance Liabilities .4

Photo ID .5

Program Informational Activities 63-207

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MANUAL LETTER NO. FS-94-04 Effective 6/1/94

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FOOD STAMP REGULATIONS

Regulations PROGRAM REQUIREMENTS 63-201 (Cont.)

63-200 PROGRAM REQUIREMENTS 63-200

63-201 GENERAL TERMS AND CONDITIONS 63-201

.1 Coupons as Income

The coupon allotment provided any eligible household shall not be considered income or resources for any purpose under any Federal, State, or local laws including but not limited to laws on taxation, welfare, and public assistance programs.

.2 No Aid Reduction

Counties shall not decrease any assistance otherwise provided an individual or individuals because of the receipt of a coupon allotment.

.21 This section requires that the receipt or availability of food stamps cannot be considered when computing the amount of public assistance or general relief/assistance payments.

.3 Disclosure

.31 Use or disclosure of information obtained from food stamp applicant or recipient households, exclusively for the Food Stamp Program shall be restricted to the following persons:

.311 Persons directly connected with the administration or enforcement of the provisions of the Food Stamp Act or regulations, the Food Distribution Programs, other Federal or federally-assisted state programs which provide assistance on a means-tested basis to low income individuals; and general assistance programs that are subject to the joint processing requirements specified in Section 63-301.7;

.312 Employees of the Controller General's Office of the United States for audit examination authorized by any other provision of law;

.313 Local, state or federal law enforcement officials,

(a) For the purpose of investigating an alleged violation of the Food Stamp Act or regulations.

(1) The officer shall submit a written request that includes the identity of the individual requesting the information and his authority to do so, the violation being investigated, and the identity of the person on whom the information is being requested.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-98-03 Effective 7/1/98

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FOOD STAMP REGULATIONS

63-201 (Cont.) PROGRAM REQUIREMENTS Regulations

63-201 GENERAL TERMS AND CONDITIONS (Continued) 63-201

.314 Persons directly connected with the administration of the Child Support Program under Title IV-D of the Social Security Act in order to assist in the administration of that program.

.315 Employees of the Secretary of Health and Human Services as necessary to assist in establishing or verifying eligibility or benefits under Title II and Title XVI of the Social Security Act.

.316 Persons directly connected with the administration or enforcement of the programs which are required to participate in IEVS as specified in Section 20-006 to the extent the Food Stamp Program information is useful in establishing or verifying eligibility or benefit amounts under those programs.

.32 If there is a written request by a responsible member of the household, its currently authorized representative, or a person acting in its behalf to review materials contained in its case file, the material and information contained in the case file shall be made available for inspection during normal business hours. However, the county may withhold confidential information, such as the names of individuals who have disclosed information about the household without the household's knowledge, or the nature or status of pending criminal prosecutions.

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MANUAL LETTER NO. FS-97-05 Effective 11/6/97

Page 86

FOOD STAMP REGULATIONS

Regulations PROGRAM REQUIREMENTS 63-201 (Cont.)

63-201 GENERAL TERMS AND CONDITIONS (Continued) 63-201

.33 This section shall not prohibit the furnishing of such information to county supervisors of schools or supervisors of school districts only as necessary for the administration of federally assisted programs providing assistance in cash or in-kind services directly to the individual on the basis of need.

.34 Any of the persons specified in Sections 63-201.311 - .316 who receive food stamp case file information, shall adequately protect this information against disclosure to unauthorized persons or for purposes not specified in this section. In addition, information received through the IEVS shall be protected from unauthorized disclosure as required by regulations. Information released to the CWD by the Internal Revenue Service shall be subject to the safeguards specified in Section 19-002.2.

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MANUAL LETTER NO. FS-97-01 Effective 2/1/97

Page 86.1

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FOOD STAMP REGULATIONS

Regulations PROGRAM REQUIREMENTS 63-201

63-201 GENERAL TERMS AND CONDITIONS (Continued) 63-201

.4 Information Available to the Public or Applicant

.41 The State Food Stamp Manual shall be maintained by the CWD in each local food stamp office for examination by members of the public on regular work days during regular office hours.

.42 CWDs shall make available, upon request, a list of emergency food providers in the area served by each local food stamp office. In addition, this list may be used, where needed, to refer individuals to emergency food sites that may be able to provide assistance. The list shall be compiled and updated by CWDs based on information from the food providers.

.43 CWDs shall make available, upon the request of food stamp applicants, nonpromotional information containing the addresses and phone numbers of local legal services and welfare rights organizations.

.5 Records and Reports

CWDs shall keep such records and submit such reports and other information as required by SDSS.

.6 Retention of Records

CWDs shall retain all Food Stamp Program records in an orderly fashion, for audit and review purposes, for a period of three years from the month of origin of each record. CWDs shall retain fiscal records and accountable documents for three years from the date of fiscal or administrative closure. Fiscal closure means that obligations for or against the Federal Government have been liquidated. Administrative closure means that the CWD has determined and documented that no further action to liquidate the obligation is appropriate. Fiscal records and accountable documents include, but are not limited, to claims and documentation of lost benefits.

NOTE: Authority cited: Sections 10554 and 18904, Welfare and Institutions Code. Reference: 7 CFR 272.4(f); Food and Consumer Services Administrative Notice 96-13, dated December 7, 1995; and Sections 10554, 10830, and 18904, Welfare and Institutions Code; and P.L. 104-193 (Personal Responsibility and Work Opportunity Reconciliation Act of 1996) Section 837, 7 U.S.C. 2020(e)(8).

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MANUAL LETTER NO. FS-98-03 Effective 7/1/98

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FOOD STAMP REGULATIONS

63-202 PROGRAM REQUIREMENTS Regulations

63-202 PROGRAM ADMINISTRATION AND PERSONNEL REQUIREMENTS 63-202

.1 Merit personnel

.11 CWD personnel used in the certification process shall be employed in accordance with the current standards for a merit system of personnel administration or any standards later prescribed by the U.S Civil Service Commission under Section 208 of the Intergovernmental Personnel Act of 1970.

.12 CWD personnel meeting the above standards shall perform the interviews required in Section 63-300.4. Volunteers and other non-CWD personnel shall not conduct certification interviews or certify food stamp applicants. Exceptions to the use of merit system personnel in the interview and certification process are specified in Section 63-900.51 for emergency food stamp assistance in disasters. CWDs may use volunteers in activities such as prescreening, assisting applicants in the application and certification process, and in securing needed verification. Individuals and organizations who are parties to a strike or lockout, and their facilities, may not be used in the certification process except as a source of verification for information supplied by the applicant. Only authorized personnel of the CWD, coupon issuers, coupon bulk storage points, and federal or state personnel involved in administration of the program shall be permitted access to food coupons, authorization documents or other issuance documents.

.2 Bilingual Requirements

.21 Bilingual staffing, certification, and program informational material shall be provided in accordance with the requirements of Division 21.

.3 Internal Controls

In order to safeguard certification and issuance records from unauthorized creation or tampering, the CWD shall establish an organizational structure which divides the responsibility for eligibility determinations and coupon issuance among certification, data management, and issuance units. The certification unit shall be responsible for the determination of household eligibility and the creation of records and documents to authorize the issuance of coupons to eligible households. The data management unit, in response to input from the certification unit, shall create and maintain the household master issuance file on cards, computer discs, tapes, or similar memory devices. The issuance unit shall provide certified households with the authorized allotments. In cases where personnel are, periodically or on a part-time basis, shifted from one unit to another, supervisory controls shall be sufficient to ensure that the unauthorized creation or modification of case records is not possible.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-91-03 Effective 3/1/91

Page 88

FOOD STAMP REGULATIONS

Regulations PROGRAM REQUIREMENTS 63-202 (Cont.)

63-202 PROGRAM ADMINISTRATION AND PERSONNEL REQUIREMENTS 63-202

(Continued)

.31 Exceptions

With prior written CDSS approval, the CWD may combine unit responsibilities if the controls specified above have been found to be administratively infeasible.

.311 To receive approval of combined operations, the CWD shall establish special review requirements which at a minimum include:

a) Biweekly reconciliation and verification of transactions; and

b) Second-party review of certification actions at least once every other month.

.312 The CWD shall annually determine whether each combined operation continues to be justified and shall so advise SDSS in writing.

.4 Training

.41 Minimum Requirements

.411 The CWD shall institute and maintain a continuing training program for food stamp eligibility workers.

(a) Sufficient training shall be provided to the eligibility workers prior to their initial assumption of job duties and, subsequently, on an as-needed basis.

.412 The CWD shall provide sufficient staff time to ensure that the eligibility worker training requirement is met.

(a) Training shall include, but not be limited to, the goals of and the methods for promptly and accurately certifying eligible households.

HANDBOOK BEGINS HERE

.42 Effective January 1, 1989, Welfare and Institutions Code Section 19804.25(b) states as follows: "Each county welfare department shall annually offer training on food stamp application procedures to homeless shelter operators."

HANDBOOK ENDS HERE

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-96-05 Effective 12/1/96

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FOOD STAMP REGULATIONS

63-202 (Cont.) PROGRAM REQUIREMENTS Regulations

63-202 PROGRAM ADMINISTRATION AND PERSONNEL REQUIREMENTS 63-202

(Continued)

.5 Forms

The CWD shall use the forms prescribed in the Food Stamp Manual, or comparable SAWS forms as directed by CDSS, to collect, document, and/or report Food Stamp Program information. Any modification or substitution of forms prescribed in the Food Stamp Manual shall be approved by CDSS prior to use. Procedures for approval are contained in Handbook Section 63-1250.

NOTE: Authority cited: Sections 10554 and 18904, Welfare and Institutions Code. Reference: 7 CFR 271.2, 7 CFR 272.4(d)(1)(i) and Sections 10554 and 18904, Welfare and Institutions Code.

63-203 NONDISCRIMINATION COMPLIANCE 63-203

.1 Requirement

CWDs shall not discriminate against any applicant or participant in any aspect of program administration, including, but not limited to, the certification of households, the issuance of coupons, the conduct of state hearings, or the conduct of any other program service in accordance with the provisions of Division 21.

.2 Right to File a Complaint

Individuals who believe that they have been subject to discrimination may file a complaint in accordance with Division 21.

63-204 PROGRAM MONITORING SYSTEMS 63-204

(Reserved)

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MANUAL LETTER NO. FS-96-05 Effective 12/1/96

Page 90

FOOD STAMP REGULATIONS

Regulations PROGRAM REQUIREMENTS 63-205

63-205 LOCATION AND HOURS OF OPERATION OF CERTIFICATION AND 63-205

ISSUANCE SERVICES

.1 Hours of Operation

CWDs are responsible for determining the location and hours of operation of certification and issuance services available to Food Stamp applicants and recipients based on an assessment of their needs. To make this determination, CWDs shall conduct an annual review of the hours of operation of Food Stamp certification and issuance offices to ensure that the needs of recipients who work are adequately met. The results of these reviews shall be submitted to the California Department of Social Services to be retained for review by the federal Food and Nutrition Service. Requirements for CWD offices that are not open to the public eight hours per day, Monday through Friday, are specified in Section 11-601.

.2 Level of Service

.21 Basic certification services consist of distributing and accepting applications, interviewing applicants, and accepting notices of change in household circumstances.

.22 A wide variety of issuance methods may be used, including mail issuance, to fulfill issuance service needs.

NOTE: Authority cited: Sections 10553 and 10554, Welfare and Institutions Code. Reference: Section 18902, Welfare and Institutions Code, 7 CFR 272.4(g), Blanco v. Anderson Court Order, United States District Court, Eastern District of California, No. Civ. S-93-859 WBS, JFM, dated January 3, 1995.

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MANUAL LETTER NO. FS-95-04 Effective 7/1/95

Page 90.1

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FOOD STAMP REGULATIONS

Regulations PROGRAM REQUIREMENTS 63-206 (Cont.)

63-206 LIABILITIES 63-206

.1 CWD Rights and Responsibilities

.11 CWDs shall establish and maintain secure control over coupons and cash for which the regulations designate them accountable. CWDs shall be strictly liable as specified in Section 63-206.3 for shortages/losses of cash or coupons, and shall make payment upon demand as provided in these regulations.

.12 CWDs shall be responsible for preventing losses of federal funds in the certification of households for participation in the Food Stamp Program. Certification functions end with the creation of the master issuance file. CWDs shall be liable for losses from incorrect coupon issuance resulting from CWD fraud or negligence in the certification of households.

.13 CWDs shall be responsible for preventing losses or shortages of federal funds in the issuance of benefits to households participating in the Food Stamp Program. CWDs shall be liable for all losses, thefts and unaccounted shortages that occur during issuance, unless otherwise specified. Issuance functions begin with the creation of a record-for-issuance to generate each month's issuances from the master issuance file.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-94-04 Effective 6/1/94

Page 91

FOOD STAMP REGULATIONS

63-206 (Cont.) PROGRAM REQUIREMENTS Regulations

63-206 LIABILITIES (Continued) 63-206

.14 Whenever a liability is asserted against a CWD, under this section, the CWD shall have the right to provide any information necessary to assist SDSS in resolving the amount of the claim.

HANDBOOK BEGINS HERE

.15 SDSS determination of CWD compliance deficiencies may result in securing injunctive relief to compel compliance and/or disallowance of CWD claims for the federal share of administrative funds. SDSS is authorized to determine whether to seek injunctive relief, suspend or disallow administrative funds, to do both together, or to do each in sequence in each instance of noncompliance.

HANDBOOK ENDS HERE

.2 Coupon Shortages, Losses, Unauthorized Issuances, Overissuances and Undocumented Issuances

CWDs shall be responsible to FNS for any financial losses involved in the acceptance, storage and issuance of coupons. All coupon issuances shall be documented and the CWD shall make available all primary documentation (e.g. transaction receipts or authorization documents) or secondary (e.g. computer listings of transaction receipts or authorization documents), if the primary has been inadvertently destroyed, when required to do so. CWDs shall pay upon demand, the amount of any such losses. Unauthorized issuances, overissuances and undocumented issuances for which the CWDs are strictly liable include, but are not limited to, the following:

.21 Losses resulting from authorization documents lost in transit from a manufacturer to the CWD and untransacted authorization documents lost in transit from an issuer to the CWD; and

.22 The value of coupons overissued and coupons issued without authorization, except for those duplicate issuances in the correct amount that are the result of replacement issuances made in accordance with Section 63-603. Overissuances and unauthorized issuances for which CWDs are liable include, but are not limited to, the following:

.221 Single unmatched issuances;

.222 Duplicates made that are not in accordance with Section 63-603; and

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-91-03 Effective 3/1/91

Page 92

FOOD STAMP REGULATIONS

Regulations PROGRAM REQUIREMENTS 63-206 (Cont.)

63-206 LIABILITIES (Continued) 63-206

.223 Transacted authorization documents that are altered, counterfeit, from outside of the CWD, or expired (including those unsigned by the designated household member and/or not date stamped by the issuer).

.3 Coupon and Cash Liabilities

CWDs shall be strictly liable for the face amount of all coupon shortages and losses that occur after the coupons have been accepted by the CWDs' receiving point(s) and that occur during storage or the movement of coupons between the CWDs' bulk storage points and issuance offices. Such coupon shortages and/or losses include, but are not limited to, any of the following:

.31 Theft;

.32 Embezzlement;

.33 Cashier errors (e.g. errors by issuance office personnel in counting coupon books);

.34 Natural disasters, if the CWD cannot provide reasonable evidence that the coupons were destroyed and not redeemed;

.35 Unexplained causes; and,

.36 Coupon overissuances resulting from noncompliance with CDSS instructions implementing benefit reductions, suspensions or cancellations as required under Section 63-108.

.37 Cash losses including monies collected from overissuance claims which have been lost, stolen, or otherwise not accounted for in accordance with the provisions in Section 63-801.8.

.4 Issuance losses for which CWDs shall be strictly liable include but are not limited to the following:

.41 Issuances which cannot be supported by the required documentation;

.42 Issuances made to households not currently certified;

.43 Issuance loss during an official investigation, unless the investigation was approved by FNS prior to the loss;

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MANUAL LETTER NO. FS-94-02 Effective 2/1/94

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FOOD STAMP REGULATIONS

63-206 (Cont.) PROGRAM REQUIREMENTS Regulations

63-206 LIABILITIES (Continued) 63-206

.44 Mail issuance losses that exceed either of the following tolerance levels as appropriate:

.441 Mail losses in excess of .5 percent of the dollar value of the total quarterly mail issuance in a county where $300,000 or more per quarter of coupons are issued in the mail.

.442 Mail losses in excess of $1,500 per quarter in a county where less than $300,000 per quarter of coupons are issued in the mail.

(a) For the purpose of this section, "mail issuance" means all original coupon issuances distributed through the mail. "Mail Loss" means all replacements of mail issuance except for replacements of returned mail issuances. Coupons are "in the mail" when deposited with the Postal Service.

HANDBOOK BEGINS HERE

(b) FNS will assume financial liability for all coupons lost in the mail if the coupons were issued in accordance with required policies and procedures and the loss did not exceed the specified tolerance levels.

HANDBOOK ENDS HERE

.5 Reporting of Coupon and Mail Issuance Liabilities

The CWD's shortages and losses shall be determined from the FNS-250 and its supporting documents and the FNS-46. The CWD's mail loss liability shall be computed using data from the FNS-259. These reports shall be reviewed and adjusted as follows:

.51 The CWD shall review all billing letters for liabilities on these reports to ensure that the amount to be adjusted is correct. If the CWD does not agree with the alleged liability, a written rebuttal to the disputed amount of liability shall be submitted to CDSS within two weeks from the date of the billing letter. The rebuttal shall include the CWD's adjusted liability together with justification for that amount.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-94-02 Effective 2/1/94

Page 94

FOOD STAMP REGULATIONS

Regulations PROGRAM REQUIREMENTS 63-206.62

63-206 LIABILITIES (Continued) 63-206

.52 Failure to provide a written response within the two-week period shall result in the CWD Food Stamp Program administrative advance being adjusted by the billed amount. If the CWD's failure to respond timely precludes CDSS's opportunity to appeal to FNS, the obligation in the amount specified shall be deemed correct and final.

HANDBOOK BEGINS HERE

.53 CWD liabilities will be adjusted by an offset from the CWD's Food Stamp Program administrative advance. These offset adjustments will be identified as "FNS-250 Liabilities," "FNS-46 Liabilities" or "FNS-259 Liabilities".

HANDBOOK ENDS HERE

.54 The CWD shall prepare and submit the FNS-250 in accordance with Fiscal Handbook Section 25-1030; the FNS-46 in accordance with Fiscal Handbook Section 25-1010; and the FNS-259 in accordance with Fiscal Handbook Section 25-1040.

.6 Photo ID

.61 CWDs shall include in any contract with an issuing agent a provision establishing the agent's strict liability for the face value of coupons issued in any authorization document transaction when:

.611 The authorization document is found to have been stolen or otherwise not received by the household; and

.612 The CWD or issuing agent's cashier has not recorded the serial number of the photo ID card on the authorization document, or the person presenting the authorization document is not pictured on the ID card as specified in Section 63-504.85.

.62 CWDs shall be strictly liable for losses by CWD issuing agents where reconciliation shows noncompliance with photo ID requirements.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-91-03 Effective 3/1/91

Page 95

FOOD STAMP REGULATIONS

63-206.63 PROGRAM REQUIREMENTS Regulations

63-206 LIABILITIES (Continued) 63-206

.63 The strict liability referred to in Section 63-206.61 shall apply (to counties or parts of counties) notwithstanding the fact that FNS previously granted waiver(s) of provisions of the photo ID requirements.

.64 In CWDs using a direct access system the strict liability conditions of Sections 63-206.61, .62, and .63 apply in a like manner.

NOTE: Authority cited: Sections 10554 and 18904, Welfare and Institutions Code. Reference: 7 CFR 271.2; 7 CFR 276.1; 7 CFR 276.2; and Sections 10554 and 18904, Welfare and Institutions Code.

63-207 PROGRAM INFORMATIONAL ACTIVITIES 63-207

.1 CWDs shall participate in program informational activities. Program informational activities are those activities that convey information about the Food Stamp Program, including household rights and responsibilities, to applicant and recipient households through means such as publications, telephone hotlines, films, media and face-to-face contacts.

.2 The CWD shall be responsible for liaison with state staff and shall order from the state warehouse the following:

.21 Nutrition information materials regarding foods containing substantial amounts of the recommended daily allowances of protein, minerals and vitamins; menus making use of these foods; and the relationship between health and diet;

.22 Informational materials that explain the Special Supplemental Food Program for Women, Infants and Children (WIC) and the Commodity Supplemental Food Program (CSF);

.23 Informational materials explaining household rights and responsibilities.

.3 The CWD shall display the posters and make pamphlets and fliers available at food stamp and public assistance offices.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-94-02 Effective 2/1/94

Page 96

FOOD STAMP REGULATIONS

Regulations PROGRAM REQUIREMENTS 63-207

63-207 PROGRAM INFORMATIONAL ACTIVITIES (Continued) 63-207

.4 All program informational material shall include a statement that the Food Stamp Program is available to all without regard to race, color, sex, age, handicap, religious creed, national origin, or political beliefs.

.5 The CWD shall notify SDSS of its needs for program informational material in languages other than English as required by Welfare and Institutions Code 18915.

.6 The CWD shall encourage recipients to participate in the Expanded Food and Nutrition Education Program (EFNEP) and, wherever practicable, allow EFNEP personnel to come into Food Stamp offices to distribute informational materials and to speak with recipients.

NOTE: Authority cited: Sections 10554 and 18904, Welfare and Institutions Code. Reference: 7 CFR 272.5.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-92-05 Effective 6/1/92

Page 97

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