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Discretionary Exemptions
Federal law provides that each county be allotted exemptions equal to a percentage of the county's ineligible caseload for CalFresh benefits because of the ABAWD time limit. These exemptions allow the county to extend CalFresh eligibility for ABAWDs subject to the time limit. These individual exemptions, previously known as 15 percent exemptions, are now called percentage exemptions.
Effective October 1, 2019, the Agriculture Improvement Act of 2018 reduces the number of percentage exemptions from 15 percent of covered individuals to 12 percent of covered individuals.
Effective October 1, 2023, the federal law (FRA 2023) decreases the State's annual allotment of ABAWD discretionary exemptions from 12 percent to 8 percent of the caseload subject to the ABAWD time limit. This law also limits the State's ability to carry over unused ABAWD discretionary exemptions to no more than one year.
Counties not qualifying for a statewide waiver of the ABAWD time limit accrue the discretionary exemptions. The number of accrued exemptions is based only on the portion of the CalFresh caseload subject to the time limit.
The following rules apply to the discretionary exemption:
- Each exemption extends eligibility to one ABAWD for one month.
- The discretionary exemption is only available to individuals at risk of losing federal CalFresh benefits due to not satisfying the work requirement. Therefore, it cannot be used while a state is under a statewide waiver.
- Individuals receiving CFAP benefits are not eligible for a federal percentage exemption.
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Note: Individuals receiving CFAP benefits who are at risk of losing state CFAP benefits due to not satisfying the ABAWD work requirement may receive state-funded percentage exemptions.
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- ABAWD individuals are not eligible to receive an exemption under the criteria below until they have exhausted their three countable months of benefits for the current 36-month period. To prevent over-utilization, the State recommends limiting the distribution of exemptions to three months per individual ABAWD per 36-month period.
- Percentage exemptions cannot be used to regain eligibility.
- The percentage exemption is a temporary exemption that counties may grant to ABAWDs who are unable to satisfy the ABAWD work requirement due to circumstances beyond their control.
The State has established statewide criteria for allocating the exemption to ABAWDs. The recommended statewide exemption criteria include:
Overissuance/Error Protection
Fifteen percent exemptions may be granted to individuals who were inadvertently issued CalFresh benefits after exhausting their three countable months and who did not satisfy the work requirement or qualify for an exemption in the month that the CalFresh benefits were issued.
For example, if an ABAWD subject to the time limit who has exhausted their three countable months makes a required mid-period report of a drop in work hours within 10 days of the date the change became known to their household, but after CalFresh benefits have already been issued for the month in which they were ineligible for benefits, the county may assign an exemption, rather than establish an overissuance claim.
Eligibility Extension for ABAWDs Making an Effort to Work
Fifteen percent exemptions may be granted to ABAWDs subject to the time limit who make an effort to satisfy the work requirement, but fall short on the number of required hours.
For example, an exemption may be provided to an ABAWD who worked 10-19 hours in a week (40 – 79 hours in a month), but fell short of the 20 hours per week (80 hours averaged monthly) requirement.
Special Circumstances
The EW may provide an exemption to ABAWDs experiencing one of the following special circumstances:
- Re-entry/Probation/Criminal Record
- Re-entering the community from prison or jail, who are completing probation, or who have a criminal record and as a result may experience unique challenges in securing employment or satisfying the work requirement.
- Seasonally Employed
- Were employed on a short-term or seasonal basis. Such as retail workers hired for the holiday season, employees hired during the tax season, seasonal agricultural workers, etc.
- Dependent Child Ages Out
- Were previously exempt from the ABAWD time limit due to living in a household with a child under 18. The ABAWD, who was previously exempt, may become subject to the time limit mid-period when the child turns 18. This can also be applied to the dependent child who, upon turning 18 mid-period, may become subject to the time limit.
- Former Foster Youth
- Were recently aged out of foster care. Due to the implementation of extended foster care in California, this may occur anytime from the foster youth’s 18th to 21st birthday.
- Family Reunification
- Are engaging in a family reunification program after having children temporarily removed from the home for more than 30 days.
- Exonerated Persons
- SB 1050 requires individuals who have been exonerated of a conviction of a crime be given priority for receipt of percentage exemptions.
In addition to the above, the following are percentage exemption criteria determined by the county that the EW can grant on a case-by-case basis:
- Lack of transportation lasts more than 2 months
- A father of an unborn child living in the home
- The month prior to the individual’s 50th birthday.
Note: Additional exemption criteria may be added to this section in the future as determined by the county.
Note: The State has granted the counties that implemented the ABAWD time limit on September 1, 2018, an allocation of percentage exemptions equal to the total number of ABAWDs subject to the time limit through December 31, 2019. All ABAWD individuals who are not exempt and do not meet the ABAWD work requirements will receive the percentage exemption until 12/2019 after their three countable months have been exhausted. Thereafter, the percentage exemption will be evaluated on a case-by-case basis.
Exception: When a client is discontinued from CalFresh due to other reasons (e.g., SAR 7, recertification, etc.) after using the three countable months, the percentage exemption cannot be granted when the client reapplies for CalFresh. The individual must either qualify for an ABAWD exemption on the reapplication month or satisfy the ABAWD work requirement for any consecutive 30 days prior to the reapplication date to regain CalFresh eligibility.
A client used 3 countable months in September, October, and November 2018. The percentage exemption was granted for December 2018 through August 2019. In January 2019, the client fails to submit a SAR 7 and the case is discontinued effective 1/31/2019. The client finds a job, working 80 hours per month staring 3/20/19, and reapplies for CalFresh on 4/10/19. The client does not qualify for any of the ABAWD exemptions. The percentage exemption cannot be granted. The client cannot regain CalFresh eligibility until 4/19/19 (i.e. at 30 consecutive days). [Refer to “Regaining Eligibility,” page 28-31] for more information.
Tracking Use of Percentage Exemptions
(This section is applicable to Fiscal staff).
Unlike those granted one of the ABAWD exemptions, persons who granted a percentage exemption are still considered ABAWDs and are counted as such for purposes of quarterly reports and estimated ABAWD counts in the E&T plan. Counties are required to accurately track the number of percentage exemptions that have been allocated to avoid under or over-utilization. Utilization is tracked via the quarterly STAT 47 Report - Part I, Entry 3.
Note: The number of “ABAWDs exempt under the criteria during the quarter,” which is reported by each county that does not have a time limit waiver, is a duplicate count. This is a duplicate count because each county must count each percentage exemption granted per month in a quarter and an individual ABAWD may receive a percentage exemption for multiple months in a quarter.
If 300 ABAWDs each receive a percentage exemption in each month of a given quarter, the county would enter 300 per month and 900 for the quarter total.
It is important to distinguish the exemption from the general ABAWD exemptions defined in Section 28.6. Those ABAWDs granted an exemption remain subject to the time limit and must satisfy the work requirement. When an ABAWD receives an exemption, they are only temporarily excused from satisfying the work requirement (i.e., for one month). Because these individuals are still considered ABAWDs subject to the time limit, they must be included, if the timing is applicable, when entering ABAWD data in Part A – Work Registrant and ABAWD Information and Part F - Point in Time Work Registrant and ABAWD Counts of the STAT 47 report.
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