44-316 REPORTING CHANGES AFFECTING ELIGIBILITY AND GRANT DETERMINATIONS AND COUNTY ACTIONS

(a) If the recipient provides verification within the 10 days given in the request for verification notice, the change is effective the first of the month following the voluntary report except as provided in Section 44-316.312(a)(4).

(b) If the recipient does not provide the necessary verification, the county shall send a No Change NOA to the AU.

(c) If the recipient provides verification after the 10 days, the date the verification is provided shall be considered the date of the voluntary report.

(SAR) (d) If the recipient reported the change in income over the Income Reporting Threshold (IRT) for the first through fifth months of a current semiannual reporting period and the county was unable, before the first of the month following the change, to provide 10-day notice of the termination or reduction of benefits, the county shall not assess an overpayment for the month following the change.

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(AR/CO) (d) If the recipient reported the change in income over the IRT or household composition for an AU that does not include an eligible adult and the county was unable, before the first of the month following the change, to provide 10day notice of the termination or reduction of benefits, the county shall not assess an overpayment for the month following the change.

.312 Recipient voluntary reports include, but are not limited to, the following:

(a) Decreases in Reasonably Anticipated Income

(1) When an AU voluntary reports a decrease in income from the amount that was reasonably anticipated to be received, the county shall determine if the AU’s cash aid will increase based on the changed income amount.

(A) When an AU receives income from more than one source, and reports that its income has decreased, only the income that experienced the decrease shall be recalculated for the current and remaining months of the SAR/AR/CO Payment Period. The new grant amount shall be calculated using the existing income that didn't change and the recalculated income (the income that decreased).

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(B) When an AU consists of more than one person with income and one person experiences a decrease in income, only the changed income shall be recalculated. The new grant amount shall be based on that person’s recalculated income along with the existing AUs reasonably anticipated monthly income that did not change.

(2) When cash aid would increase due to a voluntary reported decrease in reasonably anticipated monthly income, the county shall determine a new monthly grant amount based on the report of decreased income.

(3) The county shall use the new reasonably anticipated income for the month in which the decreased income occurred or the month it was reported, whichever is later, and the reasonably anticipated monthly income determined for the rest of the SAR/AR/CO Payment Period in recalculating cash aid for the month in which the change was reported and remaining months of the SAR/AR/CO Payment Period.

(4) The county shall issue a supplement within ten days of receiving verification. The supplement shall be based on the difference between the recalculated cash aid and the cash aid that was paid for the month the decrease in income is reported or the month the change actually occurs, whichever is later, and when all verification has been provided (see Section 44-340.3(SAR/AR/CO).

(5) The county shall increase the grant amount for the remainder of the SAR/AR/CO Payment Period based upon the newly calculated grant in Section 44-316.312(a)(3).

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HANDBOOK BEGINS HERE

Example 1:

A non-exempt AU of three, in Region 1 is in the April through September SAR Payment Period and is receiving a grant of $536 per month. The grant was based on the parent having reasonably anticipated earned income of $1,377 per month. On June 15, the parent reports that they lost their job and will only receive a $975 paycheck for the month of June and anticipates no income for the remainder of the SAR Payment Period. The county requests verification of the job loss and the recipient provides the necessary documentation by June 20. The county shall recalculate their aid for the SAR Payment Period as follows:

$ 975 June Actual Income

-$600 Earned Income Disregard

$375

- 187 50% Earned Income Disregard*

$187 Net Nonexempt Income for June*

$925 MAP for three in Region 1

-187 Net Nonexempt Income*

$738 Grant Amount for June

- 94 June Grant Already Received

$644 Supplement for June

+ 0 Reasonably Anticipated Income for July through September

$925 MAP for Three in Region 1

$925 Grant Amount for July through September

* 50% Earned Income Disregard and Net Nonexempt Income must be rounded down to the nearest dollar amount: MPP Section 44-315.34

A supplement of $597 is issued for the family for the month of June (no later than June 30) and the cash aid is increased to $878 for July, August, and September.

HANDBOOK ENDS HERE

STANDARDS OF ASSISTANCE

(6) If the AU voluntarily reports a decrease in earnings that resulted from a loss or reduction in hours of employment, and the county determines that the recipient did not have good cause for the job quit/reduction in hours, the county shall impose a sanction pursuant to Section 42-721.4. However, the county shall not wait to increase cash aid due to voluntary report of decreased income while determining if good cause exists before imposing the sanction. See Section 42-721.44 for the time frame for imposing sanctions.

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(SAR) (b) Adding Persons to an Existing AU

(SAR) (1) When an AU voluntarily reports a new person in the home, the county shall determine:

(SAR) (A) If the new person is CalWORKs eligible; and

(SAR) (B) If the new person were added into the AU, the AU would still meet all eligibility conditions; and

(SAR) (C) If the addition of the new person would increase or decrease the grant amount or render the AU ineligible.

(SAR) (2) In determining if the new person is CalWORKs eligible, the county shall use the reasonably anticipated income for the new person and the existing AU's income for the month in which the new person was voluntarily reported in the home and the remaining months of the SAR Payment Period. In making this determination, the county shall not recalculate the existing AU's reasonably anticipated monthly income that was previously computed.

(SAR) (3) When aid would increase due to the voluntary report of a new person, the county shall add the new person effective the first of the month following the report of the change, in which all verification has been provided and all eligibility conditions have been met.

(SAR) (A) The county shall include the new person’s reasonably anticipated monthly income along with the existing AU’s reasonably anticipated monthly income to recalculate cash aid for the month the new person is added and the remaining months of the SAR Payment Period.

(SAR) 1. The new person's income will be determined for the remaining months of the SAR Payment Period. The county shall not recalculate the existing AU's monthly income that was previously computed when adding a new person to the grant.

(SAR) 2. The new grant amount shall be based on the AU's existing monthly income and the new person's reasonably anticipated income for the months the new person would be included in the AU.

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(SAR) (B) The county shall increase the grant amount for the month the new person is added and the remaining months of the SAR Payment Period based on the recalculation of the AU’s cash aid (see Section 44-340.3(SAR)).

(SAR) (4) When adding a new person who would result in an increase in aid, but the new person does not meet all eligibility conditions before aid is authorized, the county shall not add the person nor discontinue the existing AU mid-period.

(SAR) (5) If the addition of a new person would result in a decrease in the existing AU's cash aid, the county shall not add the new person until the first day of the next SAR Payment Period that follows the mandatory reporting of the new person on the SAR 7 or SAWS 2 PLUS/Statement of Facts, after all verification has been provided and all eligibility conditions have been met (except as provided in Section 82-832.3(SAR)).

HANDBOOK BEGINS HERE

Example: A SAR AU of three (parent and two children) are in a January through June SAR Payment Period. The second parent, who is disabled and has a part time job, moves into the home February 10 and is voluntarily reported in February by the AU. The county recalculates aid for the SAR Payment Period using the second parent’s reasonably anticipated income for the period and determines the addition of the second parent would decrease aid for the existing AU. The county does not add the second parent into the AU mid-period. The county will send a No Change NOA and remind the existing AU to report the second parent during the redetermination in June. If the second parent is still living in the home, meets all eligibility conditions, and the AU remains eligible, the second parent will be added into the AU July 1 and their income will be used in the grant calculation for the July through December SAR Payment Period.

HANDBOOK ENDS HERE

(SAR) (6) If adding a new person would render the existing AU ineligible, the county shall not take action mid-period to discontinue the existing AU. The county shall discontinue the existing AU, with timely and adequate notice, at the end of the SAR Payment Period in which the new person is mandatorily reported on the SAR 7 or SAWS 2 PLUS/Statement of Facts.

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(SAR) (c) Request Discontinuance for Aid to Existing AU Members

(SAR) At any time during the SAR Payment Period, a voluntary request can be made to discontinue the entire AU or any individual AU member who is no longer in the home or is an optional person.

(AR/CO) (c) Request Discontinuance for Aid to Existing AU Members

(AR/CO) At any time during the AR/CO Payment Period, a voluntary request can be made to discontinue the entire AU.

(1) If a voluntary request for discontinuance is made verbally, the county shall discontinue cash aid at the end of the month in which timely and adequate notice can be provided.

(2) If the request for discontinuance was made in writing, the county shall discontinue cash aid at the end of the month with adequate notice.

(3) If an individual requests discontinuance from an existing AU, the county shall discontinue the individual even when that individual’s request results in a decrease in aid for the remaining AU members.

(SAR) (A) The county shall not presume that a mid-period report of an individual leaving the home is a voluntary request for discontinuance of that AU member. In such circumstances, the county shall verify with the AU if the AU is seeking to discontinue that individual, and shall inform the AU that such a discontinuance shall result in decreased cash aid to the remaining AU members.

(SAR) (B) If an individual AU member who has left the home requests a discontinuance, but the AU has not voluntarily reported the departure, the individual's request for discontinuance takes precedence over the AU's decision to not make this voluntary mid-period report.

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(d) Request for Recurring Special Needs

(1) Recurring special needs that have been requested mid-period and have been verified and approved will begin the first of the month in which either the need was reported or the verification substantiates that the need exists, whichever is later, and shall remain in effect until the end of the Payment Period in which the special need is expected to end, except as provided in Section 44-211.641 (SAR/AR/CO).

(SAR) (2) When an AU member becomes pregnant mid-period, the county shall make payments according to existing pregnancy special need rules (see Sections 44-211.6 et seq.) and will continue payment of the special need until the end of the SAR Payment Period in which the child is expected to be born.

(AR/CO) (2) When a teen AU member becomes pregnant mid-period, the county shall make payments according to existing pregnancy special need rules (see Sections 44-211.6 et seq.) and will continue payment of the special need until the end of the AR/CO Payment Period in which the child is expected to be born.

(SAR) (A) If the pregnancy is verified to extend beyond the estimated date of confinement and extends into the next SAR Payment Period, the county shall continue the pregnancy special need payment until the end of the SAR Payment Period in which the new estimated date of confinement is established or until the newborn is added to the AU. See Section 44-318.15 (SAR) for when to add the newborn.

(AR/CO) (A) If the pregnancy is verified to extend beyond the estimated date of confinement and extends into the next AR/CO Payment Period, the county shall continue the pregnancy special need payment until the newborn is added to the AU. See Section 44-318.15(AR/CO) for when to add the newborn.

STANDARDS OF ASSISTANCE

.32 Recipient Mid-Period Mandatory Reports

Recipients shall report in person, verbally or in writing, specific changes during the SAR/AR/CO Payment Period within ten (10) days of when the change becomes known to the AU, unless otherwise specified below:

.321 The following occurrences shall be reported by the recipient to the county:

(a) Reserved

(b) Fleeing felon status

(c) Violation of conditions of probation or parole

(d) Address changes

(1) The act of failing to report an address change shall not, in and of itself, result in a reduction in aid or a termination of benefits.

(e) Income exceeding the lowest of two levels of the Income Reporting Threshold (IRT)

(AR/CO) (f) Changes in household composition

(1) Changes in household composition may include, but are not limited to, individuals moving in or out of the home, a change in immigration status, citizenship, or child adoption.

(g) For pregnant persons, when the pregnancy ends prior to the expected delivery date, not resulting in the live birth of a child. This report must be made within 30 days following the end of the pregnancy (see Section 44211.651 and Section 82-836.31).

.322 The county shall discontinue cash aid to the recipient at the end of the month in which timely and adequate notice can be provided when changes specified in Sections 44-316.321(b) and (c) are reported.

.323 The county shall act on address changes, in accordance with regulations and procedures regarding changes of residence.

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.324 Income Reporting Threshold (IRT)

(a) The level of income that triggers the need for a CalWORKs AU to report a mid-period change in income. There are two tiers of the IRT under the SAR and AR/CO Payment Periods, the lowest of which will be the AU's current IRT amount (These figures are updated annually. Updates are published by CDSS through an All County Letter. See the most recent All County Letter available on CDSS’s website for the current figures at https://cdss.ca.gov/inforesources/letters-regulations/letters-and-notices/all-county-letters. Select the link for the most recent year, then search for “Income Reporting Threshold.” If no IRT ACL is located in the most recent year, select the prior year in sequence and reperform the above search steps):

(1) Tier One: 55 percent of the Federal Poverty Level for a family of three, plus the amount of income last used to calculate the AU’s monthly grant amount.

(A) Income over Tier One of the IRT will usually result in a decrease to the grant amount and will not usually result in the AU losing eligibility for CalWORKs.

(2) Tier Two: 130 percent of the Federal Poverty Level or the level at which a household becomes financially ineligible for federal SNAP benefits (called CalFresh in California).

(A) Income over Tier Two of the IRT that is reasonably anticipated to continue for more than one month will result in CalWORKs discontinuance.

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(b) If any member of the AU or person included in the family MAP, when the AU's current grant was determined, has earned income or begins receiving earned income, the AU must report to the county when the family's combined gross monthly income, earned and unearned, exceeds the AU's IRT during the SAR/AR/CO Payment Period.

(1) An AU that has earned income only or a combination of earned and unearned income shall report when the family’s combined gross monthly income exceeds the AU's IRT.

(2) An AU that has no income or has unearned income only shall report if they begin to receive earned income that, once combined with other family income, exceeds the AU's IRT.

(c) When an AU reports income in excess of the IRT, the county shall redetermine the AU's financial eligibility and grant amount for the SAR/AR/CO Payment Period.

(1) When the AU reports income in excess of the IRT in the first through fifth month of the current SAR Payment Period, or in the first through eleventh month of the current AR/CO Payment Period, the county shall first determine if the reported income is reasonably anticipated to continue. If the income is reasonably anticipated to continue to exceed the AU's Tier Two IRT for the remainder of the SAR/AR/CO Payment Period, the county shall determine the AU financially ineligible and shall discontinue the AU at the end of the month in which the AU first received the income that exceeded the AU's Tier Two IRT, with timely and adequate notice (see Section 44-207.23(SAR) and (AR/CO)).

If the income is reasonably anticipated to continue and will not exceed the AU’s Tier Two IRT, the county shall determine whether the AU's net nonexempt monthly income determined for the remainder of the current SAR/AR/CO Payment Period will result in a lower grant amount. If the income is reasonably anticipated to continue to result in a lower grant amount for the remainder of the SAR/AR/CO Payment Period, the county shall recalculate the AU’s grant amount for the remainder of the SAR/AR/CO Payment Period.

STANDARDS OF ASSISTANCE

(A) If the AU reports that the income will no longer exceed the IRT prior to the effective date of the decrease or discontinuance, and the county determines that this is reasonably anticipated, the county shall rescind the decrease or discontinuance.

(B) If the AU requests restoration of cash aid after the SAR/AR/CO Payment Period in which they were discontinued for income over the IRT, financial eligibility shall be determined in accordance with Sections 40-125.91 and .92(SAR).

(2) When an AU reports income in excess of the IRT in the sixth month of the current SAR Payment Period or in the twelfth month of the current AR/CO Payment Period, the county shall determine if the reported income is reasonably anticipated to continue. If the income will continue, the county shall use that information together with the SAR 7 or SAWS 2 PLUS/Statement of Facts information to prospectively determine eligibility and cash aid amount for the next SAR/AR/CO Payment Period.

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(d) If income that was reported as being in excess of the IRT is only expected to exceed the IRT for that one month and will not continue to exceed the IRT, the county shall not take action to decrease or discontinue cash aid. If the recipient's report indicates there will also be a decrease in the income previously anticipated for the SAR/AR/CO Payment Period, the county shall treat this additional information as a mid-period report.

HANDBOOK BEGINS HERE

Example 1: An AR/CO AU is in an April through March AR/CO Payment Period. In May, the AU reports timely to the county that their earned income exceeded the IRT due to overtime. When determining the reasonably anticipated income for the rest of the AR/CO Payment Period for the AU due to the IRT report, it is discovered that the AU will lose their job at the end of May and have no income for the remaining months of the AR/CO Payment Period. Since the income over the IRT will not continue, the AU’s grant is not decreased or discontinued. The county shall treat the information about the decreased income as a mid-period report and recalculate the cash aid amount, after verification is received, for the remaining months of the AR/CO Payment Period (June through March).

HANDBOOK ENDS HERE

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STANDARDS OF ASSISTANCE

(AR/CO) .325 The county shall act on household compositions changes reported mid-period.

(AR/CO) (a) Adding Persons to an Existing AU

(AR/CO) (1) When an AU reports a new person in the home, the county shall determine:

(AR/CO) (A) If the new person is CalWORKs eligible; and

(AR/CO) (B) If the new person were added into the AU, the AU would still meet all eligibility conditions; and

(AR/CO) (C) If the addition of the new person would increase or decrease the grant amount or render the AU ineligible.

(AR/CO) (b) In determining if the new person is CalWORKs eligible, the county shall use the reasonably anticipated income for the new person and the existing AU's income for the month in which the new person was reported in the home and the remaining months of the AR/CO Payment Period. In making this determination, the county shall not recalculate the existing AU's reasonably anticipated monthly income that was previously computed.

(AR/CO) (c) When aid would increase due to the report of a new person, the county shall add the new person effective the first of the month following the report of the change, in which all verification has been provided and all eligibility conditions have been met.

(AR/CO) (1) The county shall include the new person’s reasonably anticipated monthly income along with the existing AU’s reasonably anticipated monthly income to recalculate cash aid for the month the new person is added and the remaining months of the AR/CO Payment Period.

(AR/CO) (A) The new person's income will be determined for the remaining months of the AR/CO Payment Period. The county shall not recalculate the existing AU's monthly income that was previously computed when adding a new person to the grant.

(AR/CO) (B) The new grant amount shall be based on the AU's existing monthly income and the new person's reasonably anticipated income for the months the new person would be included in the AU.

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(AR/CO) (2) The county shall increase the grant amount for the month the new person is added and the remaining months of the AR/CO Payment Period based on the recalculation of the AU’s cash aid (see Section 44340.3(AR/CO)).

(AR/CO) (d) If the addition of a new person would result in a decrease in the existing AU's cash aid, the county shall decrease the grant after all verification has been provided and all eligibility conditions have been met. The county shall provide the AU with timely and adequate notice of the decrease in the AU's grant effective the first of the month following month in which the change occurred.

(AR/CO) (e) If adding a new person would render the existing AU ineligible, the county shall take action mid-period to discontinue the existing AU. The county shall discontinue the existing AU with timely and adequate notice effective the end of the month in which the change occurred.

.33 County-Initiated Mid-Period Changes

The county must take mid-period action on certain specified changes in eligibility and grant status at the end of the month in which the change occurred even if it results in a decrease in cash aid.

.331 County-initiated actions include:

(SAR) (a) An adult in the AU exhausts the CalWORKs 60-month time limit;

(b) The county imposes a sanction or financial penalty on an individual member of the AU. Sanctions must not be imposed on an adult in the AU during the month of, and the month following, the death of a child in the AU;

(SAR) (c) The county removes the sanction of an individual who corrects his/her welfare-to-work participation problem, in accordance with Section 42721.48;

(d) The county removes the penalty for an AU that complies with the CalWORKs program requirements;

(SAR) (e) A Cal-Learn participant earns a Cal-Learn bonus or sanction;

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(f) A child in the AU reaches the age limit (see Section 42-101);

(g) A child in the AU is placed in Foster Care;

(SAR) (h) A Refugee Cash Assistance (RCA) recipient reaches the eight-month RCA time limit;

(i) Aid is authorized for an individual who is currently aided in another AU;

(SAR) (j) Late SAR 7 adjustment;

(l) When an AU becomes a Family Reunification case;

(m) An AU member is no longer a California resident;

(SAR) (n) County acts on redetermination information in accordance with Section 40-181.1(SAR).

(AR/CO) (n) County acts on redetermination information in accordance with Section 40-181.1(AR/CO);

(SAR) (o) Adjustments to correct erroneous payments caused by (1) incorrect or incomplete recipient SAR 7, SAWS 2 or mid-period reporting; or (2) incorrect action or lack of action by the county on SAR 7, SAWS 2 or mid-period information reported by the recipient;

(AR/CO) (o) Adjustments to correct erroneous payments caused by (1) incorrect or incomplete recipient SAWS 2 or mid-period reporting; or (2) incorrect action or lack of action by the county on SAWS 2 or mid-period information reported by the recipient;

(SAR) (p) When it becomes known to the county that an AU member is deceased. If the AU experiences the death of a child member of the AU, the deceased child must not be removed from the AU in the month of, and the month following, the child’s death. However, the county is not required to take any mid-period action if it is not aware of the death of an AU member;

(1) Upon receiving notification of the death of a child in the AU, and the death of the child does not render the AU ineligible for CalWORKs, the child must not be removed from the AU in the month of and the month following the child’s death.

STANDARDS OF ASSISTANCE

(2) Upon receiving notification of the death of a child in the AU, and the death of the child renders the AU ineligible for CalWORKs, the case must be discontinued at the end of the month following the month in which the death of the child in the AU occurred.

(3) Upon receiving notification of the death of a child in the AU, the county must assist the adult(s) in accessing services for which they may be eligible. These services may include, but are not limited to, nutrition supplement programs, housing assistance, and other cash aid programs. The county must also provide information about mental health services, including but not limited to information and referral to services provided by the county human services agency.

(AR/CO) (p) The AU is required to report the death of an AU member within 10 days and the CWD is required to recalculate the CalWORKs grant based on this change. However, when an AU experiences the death of a child who is a member of the AU, the deceased child must not be removed from the AU in the month of and the month following the child’s death;

(1) Upon receiving notification of the death of a child in the AU, and the death of the child does not render the AU ineligible for CalWORKs, the child must not be removed from the AU in the month of and the month following the child’s death.

(2) Upon receiving notification of the death of a child in the AU, and the death of the child renders the AU ineligible for CalWORKs, the case must be discontinued at the end of the month following the month in which the death of the child in the AU occurred.

(3) Upon receiving notification of the death of a child in the AU, the county must assist the adult(s) in accessing services for which they may be eligible. These services may include, but are not limited to, nutrition supplement programs, housing assistance, and other cash aid programs. The county must also provide information about mental health services, including but not limited to information and referral to services provided by the county human services agency.

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(q) An AU is transferred to a Tribal TANF program;

(r) Cost-of-living adjustments for Minimum Basic Standards of Adequate Care (including income in-kind), Maximum Aid Payment, and Social Security;

(s) When it becomes known to the county that an individual is confined in a correctional facility on the first of a month and is expected to remain for a full calendar month or more (see Section 82-812.61).

(t) Nine-month real property exemption expires (see Section 42-213.12).

(u) A non-minor dependent is transferred into their own AU.

(AR/CO) (v) The county determines an overpayment occurs and begins collecting overpayment via grant adjustment.

NOTE: Authority cited: Sections 10553, 10554, and 11450, Welfare and Institutions Code; and Assembly Bill (AB) 2062 (Chapter 795, Statutes of 2016, Section 3). Reference: Section 10063, 11251.3, 11265, 11265.1, 11265.2, 11265.3, 11265.45, 11265.47, 11321, 11450, 11450.05, 11450.5, and 11454, Welfare and Institutions Code; Federal Register, Vol. 75, No. 19, dated January 29, 2010, pages 4928 and 4929 [7 CFR 273.12 (a)(1)(vii)].

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STANDARDS OF ASSISTANCE