Discontinued Households

Discontinued HH Reapplies in Month Following Discontinuance [63-504.362, 63-102.b(1)]

If a recipient reapplies for aid after the first working day of the SAR Payment Period following discontinuance for failure to submit a complete SAR 7, but during the calendar month following discontinuance, a determination must be made of whether the recipient had good cause for failure to submit a complete and timely SAR 7 for the previous SAR period.

Good Cause Determination

Good Cause exists in the following situations:

When the recipient is suffering from a mental or physical condition which prevents timely and complete reporting.
When the recipient’s failure to submit a timely and complete report is directly attributable to county error.
When the county finds other extenuating circumstances.

Erroneous Discontinuance

If it is determined that the client had good cause for failing to submit the SAR 7, the discontinuance must be rescinded and benefits issued at the prior level. The household must provide the SAR 7 due for the past data month.

Note: Ensure that the Batch AU Exception Special Indicator is entered for CalFresh in order to prevent the issuance of Transitional CalFresh in CalSAWS.

If information reported on the SAR 7 results in a decrease in benefits, a 10-day notice must be provided before taking action to decrease benefits. If the 10-day notice requirement prevents action from being taken to decrease benefits the first of the month following receipt of the late SAR 7, a mid-period change is made in the SAR Payment Period. An overissuance must be established for the months in the SAR Payment Period when benefits were issued at a higher level than the client is entitled to based on the information on the SAR 7 report due to 10-day noticing requirement.

If information reported on the SAR 7 results in a increase in benefits, a supplement shall be issued, if applicable, and benefits increased for the remaining months of the SAR Payment Period.

Restoration of Aid Waiver

If it is determined that the client did not have good cause for failing to submit the SAR 7, then the rules for Restoration of Aid Waiver will apply. [Refer to “Restoration of Aid Waiver,” page 25-19]

Discontinued HH Reapplies After a Calendar Month Break in Benefits [63-504.363]

A SAR 7 discontinuance may be rescinded until the end of the month following the date of discontinuance if the client had good cause for failing to submit a SAR 7 report. Once a full calendar month has passed since the discontinuance date, the recipient may not claim good cause and must reapply for benefits.

This application is considered an initial application with a new certification period.