An Advocate's Guide
to Electronic Benefit Transfer (EBT) in California

Jessica Bartholow
Alameda County Community Food Bank

Debra Garcia
Consumers Union of U.S., Inc.
West Coast Regional Office

November 2002

Report in PDF format

Report
Acknowledgements
Glossary
List of Website & Contacts
List of Appendices

EXEMPTIONS TO CASH EBT

Statewide

In those counties that have chosen to use EBT for their cash aid recipients, recipients may request to be exempted from the cash EBT system for hardship. According to state regulations, a recipient may be granted an exemption to cash EBT, and can continue to receive a paper check (warrant) if he or she is unable to use the EBT system due to a permanent or temporary physical or mental condition that prevents "successful" use of the EBT system, or due to "other barriers." The recipient will have to provide verification of the reason he or she is requesting an exemption and he or she will only be granted an exemption after "consideration of other available alternatives." (See MPP 16-325.) One of the "other available alternatives" in many counties is direct deposit of the recipient's benefits into his or her personal bank account.

In mid-August 2002, the same month the pilot counties rolled out EBT, the State developed a form that could be used by recipients wishing to request an exemption to cash EBT for hardship. This form may not be as client-friendly as the form developed by Alameda County with the input of advocates. A substitute to the State form is permitted by the State. (See Appendices M and Q for copies of the State and county-developed forms.)

In Alameda County

In Alameda County, advocates had a long discussion early on about the process recipients would have to follow to receive an exemption to cash EBT. Advocates had requested that the County and the State allow certain groups, such as the mentally disabled, homebound, or elderly immigrants, to be automatically exempted as a group. The State indicated that it would not allow for these types of "group exemptions." The State will only allow for "case-by-case" exemptions from cash EBT.

Recipients were informed about their ability to "opt-out" of (or receive an exemption from) cash EBT for hardship in one of the six client mailers that were distributed prior to EBT roll-out. However, there was no information about this option at the client trainings and the forms have not been readily available to recipients. Advocates have reported that some County staff (even management) are not aware of this option. With all of the new procedures that staff will be expected to follow with EBT implementation, exemption from cash EBT may not get the attention it should. Yet, it is something that is very important for the minority of recipients who will be unable to successfully access their cash benefits using EBT.

Prior to EBT roll-out, Alameda County developed and translated its own form, with the input of the EBT Advisory Committee, as the State had not yet developed a form for cash exemption requests. Alameda County advocates feel that this county-developed form is more useful for recipients than that developed by the State. (See Appendix M for a copy of the County form.)

"Opt-In" Option for GA/GR Recipients

Just five months prior to roll-out, Alameda County advocates learned that the County had the option to treat General Assistance (GA) recipients differently with regard to cash EBT, because GA is a county-administered program, unlike CalWORKs. One of the requests that advocates made was for the County to allow GA recipients, or a subgroup of GA recipients, such as elderly or LEP recipients, to be able to "opt-in" to cash EBT rather than "opt-out." This request was made because a large percentage of GA recipients are disabled, elderly, LEP, or have low literacy skills, making it more difficult for them to maneuver the cash EBT "opt-out," or "exemption" process. Advocates felt that it would be much easier for those GA recipients who wished to do so to "opt-in," rather than have those who were less able "opt-out." The request was denied in Alameda County, but it is an option that other counties could consider.

Suggestions for Advocates

• Suggest that your county use the Alameda County "Request for Exemption From Cash EBT" form (Form # 50-124) as a model rather than the State form.
  
• Ask your county to make sure that these forms (and relevant translations) are available to recipients at all recipient trainings and in all benefits offices during roll-out.
  
• Ask your county to specify their plan to make sure county workers know about the cash exemption for hardship option.
  
• Get copies of the exemption request form to assist your own clients in applying for the exemption when needed.
  
• Talk to your county about choosing an "opt-in" approach for GA/GR recipients.

THREE-DAY CASH BENEFITS STAGGER

Statewide

State law requires that CalWORKs benefits delivered through EBT be staggered over the first three calendar days of the month. (See Welfare & Institutions Code section 10072(c).) This stagger uses the last digit of the recipient's case number to determine which day of the month the recipient will first be able to access his or her cash assistance benefits. A recipient whose case number ends with the digit 1, 2 or 3 will be able to access his or her cash on the 1st day of each month, while those who have case numbers ending in 8, 9 or 0 will be able to access their cash on the 3rd day of each month. Please see the table below that appears on page 10 of the State's EBT training brochure.

Case-by Case Exemption for Hardship

For many recipients throughout the state, this cash stagger system will be new and will merely require some adjustment. However, for some recipients, not having access to their cash benefits on the first day of each month will be a hardship. If a recipient needs to pay rent, child care, or other important bills on the 1st of each month, waiting until the 3rd could pose a serious problem. For recipients facing such hardship, State law allows counties to exempt recipients on a case-by-case basis from the cash stagger and to provide benefits to those recipients on the first day of the month. (See Welfare & Institutions Code sections 10072(c) & (l); MPP 16-215.62.) In most counties, choosing direct deposit may offer recipients another way to avoid problems related to cash stagger.

Countywide Exemption to the Stagger

State law allows a county to request a countywide exemption to the three-day cash benefits stagger so that they may issue cash benefits in a shorter time frame. (See Welfare & Institutions Code sections 10072(c); MPP 16-215.61.) The county must submit a written waiver request to the California Department of Social Services. (See page 15 of the PDF version for this report for further discussion.)

In Alameda County

Alameda County sent out an explanation of the cash stagger with benefits checks three months prior to roll-out. This notice (Appendix V) also included information about the 10-day food stamp stagger and explained how to determine the last number of the recipient's case number, as many recipients do not know their case numbers.

One month before roll-out, the County sent another reminder about the cash stagger to recipients, letting them know how they could apply for an exemption to the cash stagger for hardship. To the dismay of advocates, this notice informed recipients that in order to get the exemption, they would need a statement from their landlord confirming that their rent was due on the first and it would not be accepted any later. Advocates worked hard to change the County's process to one that was in line with the more broad State regulation which says, "Hardship includes, but is not limited to, the incurrence of late charges on an individual's housing payments." (See MPP 16-215.62.) Eventually, the cash stagger exemption form was changed to let recipients know that due dates imposed by any creditor, not just landlords, could constitute a hardship and that recipients need not obtain a statement from the creditor to apply for the exemption. The County's "EBT Card and PIN Responsibility Statement" now reads:

Cash benefits will now be issued over the first three (3) days of each month, depending on your case number. However, a hardship will allow you to continue to get your cash aid on the first of every month. To be approved for a hardship you must:

• Give your worker a sworn statement that you will suffer a hardship if you do not receive your cash aid on the first of the month; or,
• Give your worker a statement from your landlord or other creditor (Form 50-125) that says you must pay your rent or other payment on the first of every month.

Alameda County has also developed a corresponding "Exemption from Cash EBT Stagger" form (Appendix N) that allows a recipient to request an exemption to cash stagger by making a sworn statement. There is no exemption to the 10-day food stamp stagger.

Upon roll-out of EBT, the cash stagger and insufficient training about the stagger were very problematic for recipients, merchants, and county staff. Many recipients whose benefits were not available until day three were trying to access their benefits on day one. In addition, the Citicorp Helpline was unable to assist recipients who called on day one if their benefits were not available until day two or day three, because the Helpline system does not recognize accounts until benefits are initially posted. The State is currently looking into reducing confusion by reprogramming the ARU to give a "zero" balance when benefits are pending, but not yet posted. The possible message may be: "Your food stamp balance is zero" and/or "Your cash account balance is zero." Hopefully, this (potential) change to the ARU will help alleviate confusion for recipients in future EBT counties.

Suggestions for Advocates

• Request that your county inform recipients (in appropriate languages) of the cash stagger and how to apply for an exemption well in advance of roll-out.
  
• Make sure that your county has a form that allows recipients to request an exemption from cash stagger with only a sworn statement and that this form is translated in all necessary languages. Request to review these forms.
  
• Prior to roll-out, ask your county to inform recipients that information about their accounts will not be available on the Helpline until benefits are first posted on their cash stagger day.
  
• Ask your county how they will be training caseworkers to inform recipients of their right to request an exemption to the cash stagger for hardship.
  
• Make sure that each of the training appointment letters and walk-in sites have reminders about cash stagger, information about how to request an exemption to cash stagger, and forms to do so.
  
• Ask the State to ensure that recipients are able to access all services on the Citicorp Helpline beginning day one of your county's roll-out or before - no matter what the recipient's cash stagger day is.
  
• Discuss with your county the option of requesting a countywide waiver to the three-day cash benefits stagger.

TEN-DAY FOOD STAMP BENEFITS STAGGER

Statewide

As EBT rolls out, state policy requires all counties throughout the state to distribute food stamps on a uniform 10-day stagger schedule. (See Appendix W.) This stagger uses the last digit of the recipient's case number to determine the first day the recipient will be able to access his or her food stamp benefits. A recipient whose case number ends in the digit "1" will be able to start accessing food stamp benefits the 1st day of each month, while those who have case numbers ending in "0" will be able to start accessing benefits on the 10th day of each month. Please see the table below that appears on page 10 of the State's EBT training brochure.

The State consulted with counties about their current practices and developed this stagger schedule to have the least impact on counties and recipients throughout the state; however, for some counties, moving to this new stagger schedule will be difficult for recipients. Although these counties may have distributed food stamps on a 10-day stagger before EBT, the stagger may have been based on recipients' names or activation dates rather than their case numbers. Even in counties where the 10-day food stamp stagger used case numbers to determine availability dates, some had set the stagger in reverse so that recipients whose case numbers ended in a "0" received their benefits on the 1st day of each month, rather than the 10th.

Some recipients in counties where the food stamp stagger will be changed may find this transition problematic. Of particular concern is the fact that some recipients who may have received their food stamps on the 1st or 2nd day of each month will now not receive their benefits until the 9th or 10th day of each month. For the first month of EBT, this change could mean that the recipient's food stamp allotment will be expected to last an additional nine days. Food stamp benefits currently only last families an average of two-and-a-half weeks, which means that unless the State and county intervene with an extra nine day supply of emergency food stamps, or some other alternative, families are likely to go hungry during this transition period.

In Alameda County

In Alameda County, food stamp recipients were not affected by the State's new uniform stagger policy. Food stamps in Alameda County have been distributed using the same stagger schedule as described above for the past ten years. Everyone could expect to have their food stamp benefits available through their EBT cards on the same day they had picked up their food stamp coupons the month before. The only difference after EBT roll-out was that recipients no longer had to go into the benefits office, or the check casher that the County contracted with, to pick up their coupons. In this respect, food stamp use with the EBT card should be easier for most recipients.

Regardless of the fact that the food stamp stagger in Alameda County did not change with the EBT system, the stagger presented one of the biggest problems during roll-out. Recipients thought that because they had their cards, and perhaps their cash benefits, that their food stamp benefits would also be available on the first day of the month. This caused a great deal of confusion at grocery stores and benefits offices across the county during the first 10 days of roll-out. The State has since created a benefits stagger "cheat-sheet" for merchants that will hopefully alleviate some of the confusion. (See Appendix X.)

In Yolo County

In Yolo County, moving to the uniform EBT food stamp stagger was a more complicated issue than in Alameda County, because the new stagger was different than the one they had previously been using. At one point, the County had considered the problem of those with up to a nine-day gap in services solved because the local food bank offered to give out bags of food to recipients. After much discussion, the County felt that it was not fair to put the additional burden on the community and the County asked the State if the County could provide additional food stamp benefits to those affected by the changed stagger schedule. The State responded that Food Stamp Program regulations would not allow this option.

The County did not do any additional outreach to those who would be affected by the stagger to propose solutions. However, they did respond to those clients who, on their own initiative, asked the County for help. Ten households requested help. Two of those households met the criteria to have expedited services (emergency food stamps) and were able to get their benefits sooner than their stagger date. Unfortunately, these were not "extra" benefits, so the recipients were still faced with the same problem the following month. The County referred those recipients who did not meet the criteria for early release of food stamp benefits to the local food bank.

Suggestions for Advocates

• Find out soon whether your county will have a new food stamp stagger schedule for some or all recipients as a result of the change to a uniform statewide stagger.
  
• If your county will be changing the food stamp stagger, ask your county to develop and explain their plan to serve those people who will be without benefits for an additional one to nine days as a result of the change.
  
• If your county will be changing the food stamp stagger, ask that they inform recipients well in advance of EBT implementation.
  
• To avoid the confusion that happened in Alameda County, even in counties where the stagger does not change, make sure that your county has a plan to remind recipients that the stagger will still exist with the new EBT system.