California Department of Social Services - State Hearings Division
Notes from the Training Bureau - December 3, 1997

Item 97-12-01D
CDSS ACL 97-63 -- November 7, 1997 (Synopsis): Elimination of the Lump Sum Rule

Reference: Paoli v. Anderson

Paoli v. Anderson requires counties to immediately cease applying the lump sum rule and to rescind any lump sum notices of action which have been issued to persons for whom a period of ineligibility has not yet begun.

Paoli also requires counties no later than November 21, 1997, to provide an informing notice (Temp 2148) stating that the welfare lump sum rule has ended in all cases which counties can identify through electronic data processing as currently being in a period of ineligibility because of the lump sum rule.

For persons who apply for aid and would otherwise be in a period of ineligibility due to the lump sum rule, counties must use the standard process to determine eligibility and pay benefits, including evaluating immediate need.

Counties must orally ask applicants who identify themselves as being in a period of ineligibility because of the lump sum rule whether they are currently in any of the emergency situations specified in MPP 40-120.13, and must prominently display a "Welfare lump sum rule has ended" poster (Temp 2149) from November 21, 1997 through December 31, 1997, in all county welfare offices.

An All-County Letter addressing retroactive benefits will be issued separately. Counties are required to flag all cases known to be in a period of ineligibility or to have been in a period of ineligibility on or after November 1, 1996, to facilitate any future implementation.