California Department of Social Services - State Hearings Division
Notes from the Training Bureau - December 2, 1998

The Paoli court case determined that there was no legal authority to impose a period of ineligibility in AFDC or TANF after October 1996 due to receipt of lump sum income. This ACL advises of the retroactive portion of the Paoli case. The claims period for retroactive benefits ran from August 15, 1998 through November 30, 1998.

Potential class members will be able to request the claim form by returning the Temp 2158 informing notice to the county; by coming to the welfare office in person and requesting a claim form; or by calling the toll-free number listed on the Temp 2158.

If the amount of a lump sum was equal to or less than four months of the maximum aid payment for the assistance unit, the county must presume that the lump sum was spent down below the resource limit within one month. If the lump sum was greater than four months of the maximum aid payment for the assistance unit, the county should presume that the lump sum was spent down below the resource limit within four months, unless the family establishes by documentary evidence that the lump sum was spent down more quickly.

Counties are required to notify claimants that they cannot prove a lump sum was spent down sooner than four months by testimony, but they must document that the lump sum was spent down in less than four months if the lump sum was greater than four months of the maximum aid payment for the assistance unit.