This ACWDL makes corrections and clarifications to ACWDL 99-20 and 99-42. Seven specific corrections or clarifications to ACWDLs 99-20 and 99-42 are provided on a variety of matters on the first two pages of this ACWDL. Thus persons who read 99-20 and 99-42 should review 99-56 before relying on the information or answers provided in 99-20 or 99-42.

In addition to the corrections and clarifications, ACWDL 99-56 has sections discussing the following issues;

• Section 1931(b) MFBU Rules and Examples for Pregnant Women
• Section 1931(b) Rules and Examples for Minor Parents and Senior Parents/Caretaker Relatives
• Determining Care and Control by the Caretaker Relative for Section 1931(b)
• Section 1931(b) MFBU Rules and Examples for Adult Parents Who Live in the Home of a Caretaker Relative

This ACWDL provides more details about the new definition of unemployed parent and the increase in the 1931(b) income limit which becomes effective March 1, 2000. These subjects were discussed in ACWDL 99-54.

The first section of this ACWDL discusses changes in the definition of unemployed parent. The second section provides information about the March 1, 2000 increase in the 1931(b) income limit.

Assembly Bill 1107 expands the definition of unemployment to allow the principal wage earner (PWE) to work over 100 hours if the family's net nonexempt earned income is at or below the federal poverty level (FPL). This new definition applies to both applicants and recipients in the medically needy (MN) program and to applicants in the 1931(b) program.

Currently, recipients in the 1931(b) program are already allowed to receive 1931(b) Medi-Cal if the PWE works over 100 hours if family income is below the 1931(b) limit. The PWE in a 1931(b) recipient MFBU may continue to work in excess of 100 hours and the family may still receive 1931(b) Medi-Cal if the family continues to meet 1931(b) income and property limits. Furthermore, the PWE in a 1931(b) recipient MFBU is not subject to the unemployed parent earned income test unless there is a break in aid or deprivation changes to unemployment from some other type of deprivation such as incapacity or absence.

This ACWDL provides additional information and several examples of how the family net nonexempt earned income test is applied.

Effective March 1, 2000, the Section 1931(b) income limit for applicant MFBUs is increased to 100% of the FPL. Applicant MFBUs are eligible for 1931(b) if net nonexempt income is at or below 100% of the FPL.