44-111 PAYMENTS EXCLUDED OR EXEMPT FROM CONSIDERATION

(a) They are a full-time student, or

(b) They have a school schedule that is equal to at least one- half of a full-time curriculum, and they are not employed full time.

.222 For purposes of this exemption the following definitions apply:

a. School attendance is defined as attendance in a school, college, university, or in a course of vocational or technical training designed to fit the child for gainful employment and includes a participant in the Job Corps program under the Economic Opportunity Act.

b. Part-time employment is defined as less than 173 hours per month.

.223 The student exemption applies to full- or part-time earnings between school terms or during vacation periods, if the child plans to continue to be a student next term or when the vacation period ends.

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

.224 This exemption is applied:

(a) For purposes of grant determination whether or not the student has received aid previously.

.23 Disability-Based Unearned and Earned Income Disregards

.231 A family shall have a set amount of disability-based unearned income (DBI) specified below and up to that set amount of any unused amount of the DBI disregard plus 50% of any remaining earned income disregarded as income. These disregards are applied as follows and subject to the computation method outlined in Section 44-113.2.

(a) Effective June 1, 2020, the DBI disregard is $500.

(b) Effective June 1, 2021, the DBI disregard is $550.

(c) Effective June 1, 2022, the DBI disregard is $600.

(d) If the disability-based unearned income is:

(1) Greater than the set disregard amount, the difference is added to any other nonexempt income.

(2) Less than the set disregard amount, up to the set disregard amount of the remaining disregard is subtracted from any earned income.

(3) Zero, the set disregard amount is applied against any earned income.

.232 Repealed by Manual Letter No. EAS-98-03, effective 7/1/98.

.233 Wages derived from a diverted grant and/or grant savings and paid to CalWORKs recipients who are participants in the grant-based OJT programs specified in Sections 42-701.2(g)(2). Sections 42701.2(s)(4) and 42-716.5 shall not be eligible for the disability-based income and earned income disregards.

.24 College Work Study Programs

Earned income from any college work study program is exempt. This exemption is applied for both eligibility and grant determination whether or not the student has received aid previously.

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

.25 Independent Living Program (ILP)

.251 Income and incentive payments earned by a child 16 years of age or older who is participating in the Independent Living Program (ILP) are exempt as income for purposes of eligibility and grant determination when received as part of the ILP written transitional independent living plan. There is no limit to the amount exempted under this subsection (see Section 30-002i.(1), for the definition and description of ILP).

.3 Exemption of Payments from Public Sources

(a) A relocation assistance benefit, paid by a public agency to a public assistance recipient who has been relocated as a result of a program of area redevelopment, urban renewal, freeway construction or any other public development, involving demolition or condemnation of existing housing, is exempt income.

(b) (Reserved)

(c) Workforce Innovation and Opportunity Act (WIOA)

(1) Payments, other than earnings, to a child (see Section 42-101 for age requirement) which are derived from participation in WIOA programs shall be disregarded as income for both eligibility and grant determinations. There is no time limit for this disregard. This disregard does not apply to earnings paid under the Act (see Section 44-111.21).

(2) Payments to an adult which are derived from participation in WIOA programs shall be exempt as income to the extent the payment reimbursements do not exceed actual expenses. This exemption does not apply to earnings paid under the Act.

(d) (Reserved)

(e) (Reserved)

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

(f) Payments made by CalWORKs for child care costs pursuant to Section 47-420.2.

(g) (Reserved)

(h) (Reserved)

(i) (Reserved)

(j) Payments made for out-of-pocket expenses of persons serving on advisory group(s) set up by the Department of Social Services and/or the California Health and Human Services Agency are exempt.

(k) Exempt the following payments or funds received from the California Franchise Tax Board:

(1) Renters Credits

(2) Senior Citizens Homeowners and Renters Property Tax Assistance Program

(applies to persons who are disabled, blind or 62 years of age or older)

(3) Senior Citizens Property Tax Postponement Program

(applies to persons 62 years of age and older)

(l) Special Tax Rebates and Credits

Tax rebates, credits or similar temporary tax relief measures which state or federal law specifically exclude from consideration as income are exempt.

The state shall promptly advise county welfare departments on the exempt status of other special tax rebates and credits in each program and shall prescribe the method of notifying recipients. Recipients must cooperate with county personnel by providing necessary information or documentation such as Form W-2 and Form 1040 to compute the correct grant amount. This section does not apply to annual refunds of income tax. Income tax refunds are excluded as income and resources for 12 months from receipt, after which they would be treated as resources.

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

(n) The allowance for training expenses paid to recipients participating in Department of Rehabilitation training programs.

(o) Payments received under the Energy Crisis Assistance Program or the Low Income Energy Assistance Program.

(p) (Reserved)

(q) Repealed by Manual Letter No. EAS-92-01, effective 1/1/92.

.4 Exclusions or Exemptions of Other Payments and Income

.41 Academic/Extracurricular Awards or Scholarships to Dependent Children

.411 Any awards or scholarships provided by public or private entity, to or on behalf of, a dependent child.

.42 County Supplementation and Voluntary Contributions

.421 County supplementation and/or voluntary contributions from persons or organizations having no liability for the support of the recipient, are not considered income when:

(a) The service to be provided is designated as a need by the State Department of Social Services, and

(b) The contribution would not be available for expenditure unless used in accord with conditions imposed by the donor, and

(c) The recipient's grant and other income are not sufficient to meet their total need within the limitations specified in the Need chapter for the particular program, or the designated need is one, all or a portion of, which is not included in the assistance standard for the particular program and thus cannot be met from the recipient's grant and income.

.422 Designated needs within the meaning of this section include:

(a) Housing Approved for Federal Rent Supplements Under the Housing Act of 1965.

Page 387.1

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

When the recipient qualifies for a rent supplement under the Federal Housing Act of 1965, the rent supplement payment made by the federal agency, on behalf of the recipient, to the landlord or sponsor, is disregarded as income.

.43 Loans and Grants

The following loans and grants are not considered income as specified: (See Section 42-213.2c for treatment as property.)

.431 Loans and grants received under the Carl D. Perkins Vocational and Applied Technology Education Act. These loans and grants are excluded only to the extent that the proceeds are used to meet attendance costs for a student attending school on at least a half-time basis, as defined by the institution. Attendance costs are defined as tuition, fees, rental or purchase of required equipment, materials or supplies, books, transportation, dependent care and miscellaneous personal education expenses.

HANDBOOK BEGINS HERE

a. The following examples apply to loans and grants under the Carl D. Perkins Vocational and Applied Technology Education Act only:

1. Example: Grant - Student is awarded a $1000 grant. $600 is for tuition, fees and books; $400 is used to meet current living expenses during the budget period. The $600 used to meet attendance costs is exempt from consideration as income. The $400 used to meet current needs, not associated with attendance costs, is taken into consideration as income in the month received.

2. Example: Loan - Student is awarded a $1000 loan. $600 is for tuition, fees and books; $400 is used to meet current needs during the budget period. The recipient provides a written agreement signed and dated by the lender and recipient which indicates an obligation to repay the loan and a repayment plan. The full loan is subject to exemption based on Section 44-111.437.

HANDBOOK ENDS HERE

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

.432 Loans or grants made under Title IV of the Higher Education Act or under the Bureau of Indian Affairs student assistance program.

(a) This includes student loans and grants that are partially funded under these programs, e.g. 50 percent Title IV funds and 50 percent state funds.

(b) Examples of Title IV and Bureau of Indian Affairs loans and grants include, but are not limited to:

(1) Supplemental Educational Opportunity Grant Program

(2) Carl D. Perkins Loans (NOTE: Differs from the student financial assistance provided under the Carl D. Perkins Vocational Act).

(3) Robert C. Byrd Honors Scholarship Program

(4) National Science Scholars Program

(5) State Student Incentive Grants

(A) Cal Grant Program

(6) Paul Douglas Teacher Scholarship Program

(7) College Work Study (See Section 44-111.25.)

(8) Income Contingent Loan (ICL) Program

(9) Bureau of Indian Affairs Higher Education Grant

(10) Indian Health Service Scholarship Program

(11) Pell Grant

(12) Federal Family Education Loan (FFEL) Program

(A) Guaranteed Student Loan (GSL) Program

(B) Stafford Loan Program

(C) Consolidation Loan Program

(D) Supplemental Loans for Students (SLS) Program

(E) Parent Loans for Students (PLUS) Program

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

.433 Any other grant to any postsecondary student for educational purposes made or insured under any program administered by the Federal Secretary of Education.

.434 Educational grants to any postsecondary student when awarded on the basis of the student's need.

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

(a) The recipient shall provide a certification from an official at the student's school (preferably from the Financial Aid office) concerning the student's eligibility for this income exemption. The certification must state that the award is based on need and that the Public Assistance grant was considered in making the award.

.435 Educational grants other than those excluded in Sections 44-111.432, .433, and .434 only to the extent that the proceeds are used to meet educational expenses, such as fees, equipment, special clothing needs, transportation to and from school, child care services necessary for school attendance, etc.

(a) The necessary costs of transportation to and from school shall be allowed based on the mode most economically available and feasible in the particular circumstances. If it is determined that personal car usage meets the criteria above, all actual transportation costs will be prorated based on the percentage of miles driven to and from school to total miles driven. Allowable transportation costs include, but are not limited to, car payments, car insurance and registration and gasoline.

(b) The student must appropriately document their educational expenses for the county in order to receive this exemption.

.436 Any other grants when it is verified that the proceeds are not available to meet current needs. For purposes of this section current needs are defined as those items covered in Section 44-115.3.

.437 Loans other than those excluded in Sections 44-111.431 and .432 shall be exempt. A loan is defined as specified in Sections 44-111.437(a),(a)(1) and (a)(2):

(a) A written agreement signed and dated by the lender and applicant/recipient as parties to the agreement that clearly specifies:

(1) the obligation of the applicant/recipient to repay the loan; and

(2) a repayment plan which provides for installments of specified amounts that continue on a regular basis until the loan is fully repaid.

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

.44 Infrequent Income

.441 Income that is received in prospectively budgeted months and is received too infrequently to be reasonably anticipated, shall be exempt from consideration.

.45 Income in-Kind

.451 Home Produce

Home produce such as from garden, orchard, livestock, and poultry utilized by a recipient and their household for their own consumption is not income.

.452 Partial Items of Need

Income in kind for partial items of need is exempt.

.453 Offer of a Free Home

Except as provided in W&IC 11264, income in-kind for housing is exempt as income for an otherwise eligible child who does not have housing costs.

.454 Provided by a Private Nonprofit Organization

Any income in-kind, whether a full or partial item of need, whether earned or unearned, provided on the basis of need by a private nonprofit organization shall be exempt as income.

Private nonprofit organizations are religious, charitable, educational, or other organizations such as described in Section 501(c) of the Internal Revenue Code of 1954, which include but are not limited to the Salvation Army, Red Cross, and churches. (Actual tax exempt certification by IRS is not necessary.)

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

.46 Any income or stipend paid by the United States Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to the decennial census, is exempt as income for both eligibility and grant determinations.

.47 Child/Spousal Support Disregard

The first $50 per month of current child/spousal support paid to or on behalf of an assistance unit shall be disregarded when determining both eligibility and grant amount.

HANDBOOK BEGINS HERE

See Section 42-213.2(k).

HANDBOOK ENDS HERE

.471 When the child/spousal support payment is received by the county, the amount of the current support payment which is paid to the assistance unit shall be disregarded. This disregard is applied in the month in which the child/spousal support payment is received by the county for eligibility determination and applied in the month in which the disregard payment is received by the assistance unit, if different, for eligibility and grant determination.

.472 When a current child/spousal support payment is received or reasonably anticipated to be received by the assistance unit directly from the absent parent, the first $50 of such payment is disregarded and the balance of the support payment is considered income to the AU.

HANDBOOK BEGINS HERE

(a) See Sections 82-520.4 and .5.

HANDBOOK ENDS HERE

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

.473 The total amount of the current child/spousal support disregard attributable to any month shall not exceed $50 per assistance unit regardless of whether the child/spousal support is received by the county, with a portion paid to the assistance unit, or the support payment is received by the assistance unit directly. If in the same month the assistance unit receives a disregard payment from the county attributable to a prior month and also receives a current support payment directly from an absent parent/spouse, the assistance unit shall be entitled to both disregards. If the assistance unit receives a payment from the county which consists of payments from current child/spousal support for more than one month, the $50 limit shall apply only to the total child/spousal support disregard for the month to which the disregard is attributable.

HANDBOOK BEGINS HERE

Example #1: the county received current child/spousal support payments for an assistance unit (AU) of two (one parent and one child) of $150 in January, $150 in February and issued the AU a payment of $200 in March. The total $200 shall be disregarded in March for purposes of determining eligibility and grant since it is attributable to January and February.

Example #2: the county received current child/spousal support payments for an AU of three (one parent and two children) of $250 in January, $250 in February, and issued the AU a payment of $400 in March. The total $400 shall be disregarded in March for purposes of determining eligibility and grant since it is attributable to January and February.

HANDBOOK ENDS HERE

.48 Income Received by a Child whose Needs are Excluded from the MAP

.481 The income of a child not included in the number of needy persons used to calculate the MAP pursuant to Section 82-507.

STANDARDS OF ASSISTANCE

.482 Child support received on behalf of a child not included in the number of needy persons used to calculate the MAP pursuant to Section 82-507. The total amount of child support received for a child whose needs are excluded pursuant to the Child Support in Lieu of CalWORKs Grant Option shall not be subject to the child/spousal support disregard per Section 44-111.47.

49 Benefits and related allowances received from the United States Department of Veterans Affairs

.491 Education, training, vocation and rehabilitation benefits, and related allowances received from the United States Department of Veterans Affairs are exempt from consideration as income.

a. Benefits and related allowances include, but are not limited to:

(1) Yellow Ribbon Program

(2) Survivors' and Dependents' Educational Assistance (DEA) Program Chapter 35

Page 394.1a

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

(3) Vocational Rehabilitation and Employment (VR&E) Services

(4) National Call to Service Program

(5) Compensated Work Therapy (CWT)

(6) Tutorial Assistance

(7) Monthly Housing Allowance

(8) Licensing and Certification Reimbursement

(9) Work Study

(10) Ground Infantry (GI) Bill implemented by Senate Bill 1767, formerly known as the Servicemen’s Readjustment Act of 1944 and the Galvanized Iron Bill

b. Individuals eligible to receive the exemption include:

(1) Veterans

(2) Dependents of a veteran

(3) Spouse of a veteran who either died in the line of duty or has a service-connected disability

________________

HANDBOOK BEGINS HERE

The following examples apply to education, training, vocation and rehabilitation benefits and related allowances from the United States Department of Veterans Affairs only:

(1) Example: A veteran with an Assistance Unit (AU) of 3 in Region 1 receives $875 in Veterans Disability Compensation (VDC) income, which receives a $600* disability-based unearned income disregard. The veteran receives benefits from the Compensated Work Therapy (CWT) program in the amount of $238 per month. The veteran also attends community college and receives assistance through the Ground Infantry (GI) Bill, including $552 each semester for tuition and fees, $2,108 per month for a monthly housing allowance and $500 each semester for books.

(2) Amounts received from the GI Bill and the CWT program are exempt. Income from VDC is considered income after the disabilitybased unearned income disregard is applied.

HANDBOOK CONTINUES

Page 394.1

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

HANDBOOK CONTINUES

Computation of Benefits and Allowances to Determine Monthly CalWORKs Grant Amount

$ 875 Disability-Based Unearned Income

- 600 Disability-Based Income Disregard*

$ 275 Nonexempt Disability-Based Income

$ 238 CWT program amount earned per month (Exempt)

$ 552 GI Bill tuition and fees per semester

2,108 Housing allowance per month

+ 500 Book Stipend

$3,160 Total GI Bill Amount (Exempt)

$1,035 Current Maximum Aid Payment (MAP) for AU of 3**

- 275 Nonexempt disability-based income

$ 760 Monthly CalWORKs Grant Amount

*Disability-based unearned income disregard = $600; income disregard amounts are subject to change.

**Exempt MAP for AU of 3, Region 1 = $1,035; MAP amounts are subject to change.

HANDBOOK ENDS HERE

.5 Nonexempt Income

Payments which do not fall within the limitations specified in the foregoing subsections, represent nonexempt income to be considered in determining the recipient's grant.

.6 Other income which is mandatorily and specifically exempt by federal law and shall be exempt from the effective date as specified in federal law.

.61 Income which is mandatorily exempt under federal law includes but is not limited to:

(a) Public Law (PL) 92-254 or PL 94-540 which exempts any funds distributed per capita or held in trust for members of any Native American tribe under PL 92-254 or PL 94-540.

(b) PL 93-134, PL 97-458 and PL 98-64 which exempt as income the funds of Native American tribes including interest earned from, and investment income derived from such funds when the funds have been:

Page 394.2

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

(1) Distributed by the Secretary of the Interior on a per capita basis; or

(2) Held in trust by the Secretary of the Interior.

(c) PL 103-66 which exempts, up to $2,000 in any 12 consecutive month period, the income of individual Indians when such income is derived from individually owned interests in trust or restricted lands.

(d) PL 89-73 which exempts compensation received by recipients 60 years old, or older, for volunteer services performed under the Retired Senior Volunteer Program, the Foster Grandparents Program, or the Older Americans Community Service Program of the National Older Americans Act.

(e) PL 92-433 and PL 93-150 which exempt the value of supplemental food received under the Child Nutrition Act (WIC) and the National School Lunch Act.

(f) PL 93-113 which exempts payments made under the Domestic Volunteer Services Act of 1973 to welfare recipients who are Vista Volunteers, and payments made for supportive services or reimbursement of out-of-pocket expenses made to persons serving in the Service Corps of Retired Executives (SCORE) and the Active Corps of Executives (ACE) pursuant to Section 418.

(g) PL 100-241 which exempts distributions to a household, individual Native or descendent of a Native when received from a Native Corporation established pursuant to the Alaskan Native Claims Settlement Act (ANCSA). Exempt distributions include:

(1) Cash (including cash dividends on stock received from a Native Corporation) to the extent it does not exceed $2,000 total per person per annum, stock, a partnership interest, land or interest in land, and interest in a settlement trust.

(h) PL 100-383 which exempts payments received as restitution made to U.S. citizens and permanent resident noncitizens of Japanese ancestry and payments received as restitution made to Aleuts as a result of being relocated by the United States government during World War II.

(i) PL 100-707 which exempts federal major disaster and emergency assistance provided under the Disaster Relief Act and comparable disaster assistance provided by the state, local governments and disaster assistance organizations.

STANDARDS OF ASSISTANCE

AS INCOME (Continued)

(j) PL 101-201 and PL 101-239 which exempt payments received from all Agent Orange settlements.

(k) PL 101-426 which exempts payments received under the Radiation Exposure Compensation Act.

(l) PL 101-508 which exempts Earned Income Credit (EIC) payments.

(m) PL 103-286 which exempts payment received as restitution made to victims of Nazi persecution.

(n) Payments received from any federal, state, or local Adoption Assistance Program.

NOTE: Authority cited: Sections 10553 and 10554, Welfare and Institutions Code; SB 72 (Chapter 8, Statutes of 2011, Section 42), Senate Bill 1041 (Chapter 47, Statutes of 2012), Senate Bill 80 (Chapter 27, Statutes of 2019, Section 136), Assembly Bill 807 (Chapter 440, Statues of 2019, Section 2) and AB 1004 (Chapter 99, Statutes of 2021). Reference: Sections 10553, 11008.14, 11008.15, 11157, 11250.9, 11265.2, 11322.6, 11322.6(f)(3), 11322.85, 11450.5, 11450.12, 11450.17, and 11451.5, Welfare and Institutions Code; Section 8, Public Law 93-134; Section 2, Public Law 98-64; Section 13736, Public Law 103-66; Section 1, Public Law 100-286, Section 202(a), Public Law 100-485; Public Law 112-240, Section 6409 and 20 USC 1087uu; 45 CFR 233.20(a)(1)(ii); 45 CFR 233.20(a)(3)(iv)(B), (a)(3)(x) and (a)(3)(xxi); 45 CFR 233.20(a)(4)(ii) and (a)(4)(ii)(d); 45 CFR 233.20(a)(4)(ii)(p) and (q); 45 CFR 233.20(a)(11)(v)(C); 45 CFR 400.66; 45 CFR 401.12; Federal Action Transmittals ACF-AT-94-27 and 94-4 and FSA-IM-89-1; and Cadaret v. Wagner (Super. Ct. Sacramento County, 2011, No. 34-2009-80000302, Stipulation for Settlement and Order).