ARC Payment Rules

The following are payment rules that apply to the ARC Program:

• Each ARC becoming an assistance unit (AU of one.
• The county of court jurisdiction over the child is the county with the payment responsibility even if the child moves out of the county. The CalWORKs portion of the ARC payment is based on the county with jurisdiction even when the RC moves out of the county (see Inter County Transfers).
• Beginning Date of Aid (BDOA is the later date of the home approval completion or when the county receives the signed and dated ARC 1, and ALL other eligibility requirements are met.
• The ARC-eligible child cannot receive ARC and CalWORKs at the same time. This includes additional CalWORKs payments that include special needs, emergencies, homeless assistance, and pregnancy special needs.
• The ARC payment is increased on July 1st of each year based on the California Necessities Index (CNI.
• The ARC Program authorizes per-child, per-month payments. 
• Effective June 2017, ARC payments will be issued only for the number of days in care and will be paid the same as FC payments (retrospectively or after services).
• The ARC state general fund portion of the payment is offset by any Social Security or unearned income that an ARC-eligible child/youth receives. The CalWORKs portion of the ARC payment is not deducted. The parent’s income is not considered when determining ARC eligibility. The offsetting of Social Security income for the ARC general fund portion of the payment follows the current FC policy for unearned income. Refer to Social Security, SSI, or Veterans Benefits.

  • Note: The SSI/SSA SWC along with the Fiscal department will monitor the offsetting of ARC payments.

Children Who Do Not Qualify for CalWORKs

The ARC Program seeks to optimize the use of CalWORKs and ARC funds to provide payments for all ARC-eligible children. However, if the CalWORKs income and property sections of the ARC application make the child ineligible for the CalWORKs portion of the ARC payment, the child may still participate in the ARC Program. In these cases, the ARC payment will consist entirely of state general funds appropriated for the ARC Program. (See Funding Sources and ARC Aid Codes).

ARC Payment as Income

Payments received by the RC from the ARC Program cannot be considered income to determine other public benefits (except CalFresh in some circumstances). Thus, the ARC payment will not be included as income when determining the RC’s or other household member’s eligibility for CalWORKs.

Child Support Provisions

Family Code 17552, EAS 43-201, MPP 44-111
Effective January 1, 2023, a new state law created by Assembly Bill (AB) 1686 directs counties to presume that the parent's payment of support is likely to pose a barrier to the proposed reunification. Therefore, counties shall no longer refer parents to the Local Child Support Agency (LCSA) in foster care cases, including ARC, unless the case meets exception (income) criteria. Refer to Child/Medical Support Referrals for more information.

NOTE: If the CW 51 was completed on the denied FC case or the CalWORKs case, it is sufficient for the ARC case.

 

The information below applies only if the ARC case meets the child support exception (income) criteria at intake.

Child support may be recoupable for the entire ARC payment but only under aid codes 2S, 2T, and 2P. NMDs who have graduated and are receiving extended benefits under the AB 12 program are exempt from child support.

 

Note: The CalWORKs $100 disregard is not applied against the ARC payments.

Medi-Cal

All ARC-eligible children/youth must have Medi-Cal established using the ARC aid codes. 

Processing the ARC 1

The ARC 1 consists of two parts: Part 1 establishes eligibility for ARC, and Part 2 establishes eligibility for CalWORKs. The child is only assessed for CalWORKs to determine the appropriate ARC aid code for payment.

Reminder: The ARC 1 form must be signed by the Approved Relative Caregiver, the Eligibility Worker, and the Eligibility Worker Supervisor.

The following does not apply when determining eligibility for the CalWORKs portion of ARC (Questions 4, 5, and 6 on the ARC 1):

• Face-to-Face interview
• Statewide Fingerprinting Imaging System (SFIS)
• Photo-image of the approved relative caregiver (RC)
• Immunization records
• School Attendance
• Cal-Learn participation
• Welfare to Work
• Redetermination (follows the FC requirements for monthly visits and six-month review hearing)
• Periodic Reporting.

Note: Although the above requirements do not apply to the ARC Program, they are still required for the needy RC when applying for CalWORKs for themselves.

Existing CalWORKs Cases

For existing CalWORKs cases, Part One of the ARC 1 must be completed, and the application must be signed and dated by the RC. Part Two may be completed using the information found in the active CalWORKs case or on the SAWS 2 Plus found in the CalWORKs Imaged case.

Documentation

The following documents are needed for the ARC case:

• A “Foster Care Child’s Data Record and AFDC-FC Certification” form (SOC 158A)
• The signed and dated ARC 1

  • Reminder: The ARC 1 form must be signed by the RC, the EW, and the EW Supervisor.

• The "Resource Family Approval Certificate" form (RFA 05A)
• A copy of the FC 3 or any documentation where the federal foster care determination was denied
• A copy of the “Foster Care Caretaker Relative Documentation Chart” form (SCD 1383-FC) (may be obtained from the case or CW case)
• A copy of the court order from the most recent review hearing. If the order is unattainable, the FC EW must contact the assigned SW/PO and document in a CalSAWS Journal noting the court order was unattainable with the review hearing date. The continuing FC EW will need to follow up to obtain a copy of the court order
• "Notice of Language Services" form (GEN 1365). Until other translated materials are available, the relative caregiver (RC) must be given the GEN 1365. The RC may call the local FC number for free assistance in completing the required ARC documents.

Any additional documents obtained from the denied FC case, such as the "Intake Record" form (SCD 41) FC and the "Foster Care Cash Aid and Lump Sum Income" form (SCD 836), may also be retained in the ARC case.

Notices of Action (NOAs)

The CDSS has developed new NOAs for the ARC program, which are accessible through the DEBS Form Library.

• NA 1277 - ARC Program Overpayments
• NA 1278 - Approved ARC Payment
• NA 1279 - Deny ARC Payment
• NA 1280 - Discontinue ARC Payment
• NA 1281 - Change in Amount of ARC Payment

Below is a description of the forms:

• NA 1277 - ARC Program Overpayments: The use of the NA 1277 is for overpayments that occurred because a payment was made to an approved RC when the child was no longer eligible for ARC payments. For ARC overpayment rules, refer to the Overpayments  section in this topic.
• NA 1278 - Approved ARC Payment: Use the NA 1278 to approve cash aid under the ARC Program. The County of Santa Clara issues ARC payments through “warrants or checks.” The FC EW must check the box that indicates “A check mailed to you.” When CalSAWS has added ARC functionality, the RC may request Direct Deposit or Electronic Funds Transfer (EFT.
• NA 1279 - Deny ARC Payment: The ARC Program is a “Right to Apply,” which allows for anyone to complete an ARC 1. The use of the NA 1279 is to deny cash aid under the ARC Program. The FC EW must indicate a reason for denying ARC and check the appropriate box. The options available are:
  • Your home was not approved, and you received a Notice of Action-Denial of Home Assessment/Approval (NA 1271) from the county
  • The child is not under the jurisdiction of the California juvenile court system
  • The child is federally eligible under Title IV-E of the Social Security Act and qualifies for foster care funding (rather than ARC funding)
  • The child is not eligible because of age
  • Other (when none of the above applies, select other and add a detailed explanation of why benefits are denied).
• NA 1280 - Discontinue ARC Payment: The NA 1280 is used when the RC has received ARC payments and is no longer eligible to continue receiving payments. The FC EW must indicate the reason why the payments are being discontinued by selecting one of the following options:
  • The child is no longer placed with you (in their care)
  • Your home is no longer approved, and you received a Notice of Action-Denial of Home Assessment/Approval (NA 1271) from the County explaining why
  • The child is no longer under the jurisdiction of the California Juvenile Court System
  • The child is no longer eligible because of age
  • Other (when none of the above applies, select other and add a detailed explanation of why benefits are denied)
  • All of the above NOAs must accompany the NA BACK 9, which indicates “Your Hearing Rights.” Refer to Appeals for Foster Care, Kin-GAP and Adoptions. 
• NA 1281 - Change in the Amount of ARC Payment: For use in changing the amount of cash aid under the ARC Program.

Funding Sources and ARC Aid Codes

The ARC program is comprised of three funding sources:

• Federal, state, and county CalWORKs funds
• State general funds
• County general funds.

Together these funding sources are used to fund per-child, per-month payments. In other words, the amount that an ARC-eligible child receives per month from CalWORKs will be applied toward the child’s monthly ARC payment. The remaining balance is the ARC portion. The total balance of the monthly ARC payment to the RC is equivalent to the FC rate.

An example of how the ARC payment is calculated is the current CalWORKs Exempt Maximum Aid Payment (MAP) for an AU of one (in SCC), which is $387 (see CalWORKs Charts 1.3 Exempt AU Standard Chart Region 1).

An ARC-eligible 7-year-old child can receive the FC basic rate of $889 (based on the January 2017 FC rates). The CalWORKs portion is $387 and the ARC portion is the difference of $502. Thus, the RC would receive a monthly payment of $889. The county fiscal department is required to make the allocations based on the established ARC aid codes. The FC EW will only issue one ARC monthly payment per child.

The following aid codes are established to issue the ARC payment and for Medi-Cal (when available) benefits:

• 2S - ARC + Federal CalWORKs,
• 2T - ARC + State CalWORKs,
• 2U - ARC + State CalWORKs (NMDs)
• 2P - ARC Only, and
• 2R - ARC Only (NMDs).

Determining Eligibility for Benefits

In order to approve payment, the RC must review the ARC 1A, complete (sign and date) an ARC 1 for each eligible child, and return the ARC 1 to the county. The beginning date of aid for the ARC program is the later date of the home approval completion or when the county receives the signed and dated ARC 1, and ALL other eligibility requirements are met.

Although eligibility for CalWORKs is not a requirement for receiving an ARC payment, each ARC-eligible child must be assessed for CalWORKs to determine whether CalWORKs funds can be utilized for a portion of the ARC payment.

ARC Portion (Part One of the ARC 1)

Part 1 of the "Statement of Facts Supporting Eligibility For The ARC Funding Option" form (ARC 1) application establishes the child’s eligibility for the ARC Program. This consists of questions 1 through 3 of the ARC 1. The case number is obtained from the “Foster Care Identification and Intake Record” form (SCD 41 FC).

CalWORKs Portion (Part Two of the ARC 1)

Part 2 of the ARC 1 determines the CalWORKs portion of the ARC payment. Eligibility for the CalWORKs portion of the ARC payment is based only on the child’s income and property resources.

Income and resource eligibility is determined by applying the 1996 AFDC-FC income requirements. Up to $10,000 in income and resources may be retained. The child may receive income less than the ARC payment but have resources under the $10,000 limit and still be eligible for ARC.

When determined to be CalWORKs eligible, the CalWORKs portion of the ARC payment is based on the county of jurisdiction's exempt MAP. No further computations are needed. The MAP rate for Santa Clara County is $387, effective April 1, 2015. Refer to “Exempt (Unemployable) AU Standard Chart Region 1.” Any income allocated to the child must not be deducted from the MAP rate; it is only deducted from the ARC general fund portion.

Note: The Social Security Disability Based Income (DBI disregard rule for the CalWORKs Program is not used when determining the ARC Aid Code.

Determining Income Before Issuing Payments

When the RC is receiving Veteran’s benefits, Social Security Income in the form of survivor benefits or DBI the benefits are only deducted from the ARC General Fund portion of the ARC payment before it is issued. The income/resource limit for the ARC program is $10,000. 

Unless the ARC-eligible child’s income exceeds $10,000, the SSA income or veteran benefits must not be deducted from the CalWORKs portion of the ARC payment. 

A child receiving SSI income is not eligible for CalWORKs but is eligible for an ARC-only payment in the appropriate aid code (2P or 2R), the entire SSI income must be deducted from the ARC payment.

 

Note: When the RC is receiving benefits directly on behalf of an ARC-eligible child, the RC must be advised that a request to have the benefits payable to SSA is required for all court-dependent children. FC income offset and abatement rules remain in effect.

 

Below are examples of determining the appropriate Aid Code for ARC-eligible children receiving SSA survivor’s benefits, veteran benefits, and SSI income and issuing the initial payments.

ExampleExample

ExampleExample

ExampleExample

Social Service Agency Is The Payee For RSDI/SSI Benefits

When a child/youth enters FC under the supervision of DFCS/JPD and is receiving or eligible RSDI/SSI benefits, the provider must be informed that the future benefits will be sent to Social Service Agency. The Social Services Analyst (Analyst) is responsible for completing the necessary documents to become the Authorized Representative Payee (ARP.

When benefits are received by the Social Service Agency, the RSDI/SSI benefits are abated against the ARC payments. The abatement process follows the current policy for handling RSDI/SSI income except for the CW portion of the ARC payment, which is not abated.

When the RC receives the benefits directly, it must be deducted from the ARC payment, as displayed in the above examples. When the Social Service Agency becomes the payee for RSDI/SSI benefits, the benefits received are retained in a Child Sub Payee Account (CSP Account.

The Analyst will complete the SCD 2432 AR and forward it to the Accounts Receivable section of the fiscal department for the distribution of benefits. The Analyst must forward a copy of the SCD 2432 to FC Clerical to image the document under the associated ARC case. For more information regarding the RSDI/SSI program, refer to Social Security Administration Benefits.

Six-Month Review Hearing

All RCs supervised by DFCS/JPD are required to complete a six-month court review hearing. After the hearing, a minute order (MO) will be issued. A copy of the MO is sent to FC Clerical. The MO, along with the RFA certificate and the redetermination dates, will be used to continue placements and payments.

When there is a change of placement, the FC EW must follow the current process. Additionally, if there is a needy care relative with an established CalWORKs case, an e-mail must be sent to the designated continuing CalWORKs unit or assigned EW. 

Redeterminations (RDs)

45-202.12,  45-203, WIC 11401.5, 11461.3

As with all Resource Family placements, an annual redetermination is required. As per All County Letter (ACL) 22-16, the annual Foster Care RD shall no longer consist of re-evaluating the income or deprivation of the child or non-minor dependent. Instead, the review will consist of examining circumstances of a child or non-minor dependent that are subject to changes, including but not limited to home approval updates, age, eligible facility, etc. The assigned SW/PO must continue to provide monthly visits and the six-month review hearings must continue.

The ARC 2 replaces the FC 2 for ARC RDs. Medi-Cal must continue to remain active for ARC-eligible children. The MC 250 is only required at intake, not during RD. Workers will send the “Notice of ARC Eligibility Redetermination” cover letter (SCD 2626) to the Social Worker or Probation Officer.

For more information, refer to Annual Redeterminations (RDs) for ARC.

State-Hearing

WIC 10950

If payments are reduced to an approved RC, the RC retains his or her existing right to appeal.

The appeal policy is outlined in the Appeals Overview.

Overpayments (OPs)

The establishment of OPs will follow FC rules for the ARC payments, including the CalWORKs portion. Collection is prohibited if one of the following conditions applies:

• The cost of collection exceeds the amount of the OP
• The child was temporarily removed from the home for the following reasons:
  • Payment was owed to the relative to maintain the child’s placement
  • The child was temporarily absent from the relative’s home
  • The child was on a runaway status and subsequently returned
  • The payment was made to the relative to meet the child’s needs
• The OP was exclusively the result of a county administrative error, or both the county and the relative were unaware of information that would establish the foster child was not eligible for ARC benefits
• The relative did not know of and did not contribute to the cause of the OP.

The NA 1277 is to be used for the ARC Program. For more information, refer to Foster Care Overpayments (O/P).

Termination of ARC Payment

The ARC payments will terminate for the following reasons:

• The RC requests termination of benefits
• The RC wishes to apply for CalWORKs for ARC-eligible children
• The SW/PO has transferred the case to another county (Jurisdictional Change)
• The youth has reached the age of 18 years old and does not agree to participate in Extended Foster Care (EFC)
• The youth agrees to participate in (EFC )as a non-minor dependent (NMD) but the change of placement is not with an RC
• The youth requests a SILP placement as an NMD 
• The child/youth under 18 years old changes placement that is not a RC
• The RC home approval is terminated
• The court dismissed dependency.

  Intake ARC Procedures

Refer to New Foster Care Application, Approve Relative Caregiver (ARC) Funding Option.

Change of Placement from an Existing Non-Federal Case to an ARC Case

Refer to Change of Placement from an Existing Non-Federal Case to an ARC Case

Related Topics

Relative Placements