DPSS ePolicy

Eligible Food Items/Staple Foods

Federal regulation states any item that meets the following requirement(s) is considered an eligible food item:

1. Any food or food product intended for human consumption.
   
   
2. Seeds and plants to grow food for personal consumption or eligible households (HH).
   
   
3. Meals prepared and delivered by an authorized meal delivery service to HHs eligible to use food assistance benefits to purchase delivered meals; or meals served by an authorized communal dining facility for the elderly, for Supplemental Security Income (SSI) HHs or both, to HHs eligible to use food assistance benefits for communal dining. 
   
   
4. Meals prepared and served by a drug or alcoholic treatment and rehabilitation center to narcotic addicts or alcoholics and their children who live with them.
   
   
5. Meals prepared and served by a group living arrangement facility to residents who are blind or disabled. 
   
   
6. Meals prepared by and served by a shelter for battered women and children to its eligible residents.
   
   
7. In the case of certain eligible HHs living in areas of Alaska (where access to food stores is extremely difficult and the HHs rely on hunting and fishing for subsistence), equipment for the purpose of procuring food for eligible HHs, including nets, lines, hooks, fishing rods, harpoons, knives and other equipment necessary for subsistence hunting and fishing, but not equipment for purpose transportation, clothing or shelter, not firearms, ammunition or other explosives.
   
   
8. In the case of homeless CalFresh HHs, meals prepared for and served by an authorized public or private nonprofit establishment (e.g., soup kitchen, temporary shelter), approved by an appropriate State or local agency, that feeds homeless persons.    

In general, HHs can use CalFresh benefits to purchase foods for the HH to eat, such as (but not limited to): 

1. Breads and cereals
   
   
2. Fruits and vegetables
   
   
3. Meat, fish, poultry
   
   
4. Dairy products
   
   
5. Coffee
   
   
6. Tea
   
   
7. Cocoa
   
   
8. Soda
   
   
9. Non-carbonated drinks, such as:
   
   
   • Sports drinks,
     
     
   • Punches, and
     
     
   • Flavored waters
      
10. Candy
    
    
11. Cookies
    
    
12. Bakery cakes
    
    
13. Condiments
    
    
14. Spices

Note: When considering eligibility for items, such as vitamins and supplements, power bars, energy drinks, and other branded products, the primary determinant is the type of product label chosen by the product manufacturer in conforming to the Food and Drug Administration (FDA) label guidelines. Items that carry a nutrition facts label are eligible foods. 

Ineligible Food Items

HHs cannot use CalFresh benefits to purchase:

1. Beer, wine, liquor, cigarettes, or tobacco (food products that contain alcohol or tobacco).
   
   
2. Non-edible items such as pet food, soaps, paper products, and HH supplies (items that are not intended for human consumption). 
   
   
3. Vitamins (if they do not carry nutrition facts label) and medicines. 
   
   
4. Hot food (non-RMP participants).
   
   
5. Power bars, energy drinks, and other branded products that only carry supplemental facts labels classified by the FDA as supplements; and gift baskets that contain both food and non-food items in which the value of the non-food items exceeds 50% of the purchase price.

Note: Items that carry a supplemental facts label which are classified by the FDA as supplements are ineligible foods. 

Pumpkins, Holiday Gift Baskets, and Special Occasion Cakes

Pumpkins are considered an edible food item and therefore are eligible for purchase with CalFresh benefits as long as they are not edible gourds or pumpkins that are used solely for ornamental purposes.

Special occasion food items, such as birthday or other holiday cakes are eligible for purchase with CalFresh benefits as long as the value of non-edible decorations or other non-food items does not exceed 50% of the purchase price.

Restaurant Meals Programs (RMP)

RMP is a program that allows the following CalFresh participants to use their CalFresh benefits to purchase lower-cost prepared meals with their EBT cards at approved restaurants in participating counties:

1. Homeless
   
   
2. Disabled
   
   
3. Elderly (who are age 60 or over)

The spouse (husband, wife, common-law husband, common-law wife) of the disabled or the elderly is also eligible for the RMP. The RMP eligibility does not require that the spouse be disabled or elderly.

Retail Sale

All store sales including food, non-food, gas, and services (such as rental fees, games, dry cleaners, lottery, etc.).

Excessive Card Replacement (ECR)

Federal regulation requires that agencies monitor the number and frequency of requests for EBT card replacements and send a warning letter to participants who have requested four cards in a 12-month period.

If a participant requests a fifth replacement card, and the county agency has a reason to believe that the participant is trafficking, the Eligibility Staff must refer the case for possible fraud investigation.

Note: Please see Administrative Release (AR) 5328, Electronic Benefits Transfer Excessive Card Replacement for complete policy guidance. 

Water Dumping

The legal definition of “trafficking” has been expanded by federal regulations to incorporate not only the direct exchange of CalFresh benefits but also an indirect method called “water dumping.” It is an illegal practice of using CalFresh benefits in purchasing beverages in containers with returnable deposits for the sole purpose of discarding the product contents and returning the containers to obtain a cash refund.

To be eligible as an authorized retail store in the CalFresh Program, stores must sell food for home preparation and consumption and meet one of the following criteria: 

Option A

Offer for sale, at least three varieties of qualifying foods in each of the following four staple food groups, with perishable foods in at least two of the categories, on a continuous basis:

• Meat, poultry or fish
• Bread or cereal
• Vegetables or fruits
• Dairy products

Option B

More than one-half (50%) of the total dollar amount of all retail sales (food, non-food, gas and services) sold in the store must be from the sale of eligible staple foods. Note: Sales directly connected to the processing of staple foods such as raw meat, poultry, and fish may be calculated as staple food sales under this criterion.

Note: Ineligible retail stores include, but are not limited to, stores selling only accessory foods or ice cream, specialty doughnut shops, and restaurants (i.e., stores with more than 50% of their total gross retail sales in hot and/or cold prepared foods not intended for home preparation [such stores do not qualify for participation as authorized retail food stores under Criterion A or B]. This includes stores that primarily sell prepared foods that are consumed on the premises or sold for carryout).

The United States Department of Agriculture-Food and Nutrition Service (USDA-FNS) and the Office of the Inspector General (OIG), along with the California Department of Social Services (CDSS), Special Investigative Units (SIUs), county departments, and local law enforcement/investigative agencies, work together in a coordinated effort to eliminate CalFresh trafficking.

USDA-FNS and OIG

Are primarily responsible for monitoring and taking appropriate action against retailers involved in trafficking related incidents.

The USDA-FNS uses EBT and other data to investigate an allegation and determine if administrative actions are necessary, such as suspending or eliminating the retail store from its list of USDA-FNS-approved retailers.

The OIG concurrently assesses the merits of the case and determines if it will be accepted for investigation and possible prosecution.

CDSS CDSS/SIUs/County Departments/Local Law Enforcement or Investigative Agencies

Are responsible for monitoring and taking appropriate action against recipients who are involved in trafficking violations.

County departments may pursue their own retailer investigations only after approved by USDA-FNS and OIG directly or via the CDSS Fraud Bureau to ensure a federal investigation is not already in progress or is being planned.

Occasional instances do occur where federal and State/local agencies join to investigate retailer and/or recipient trafficking violations. For example, when a county agency receives a report of an alleged retailer trafficking violation, the matter is reported to the CDSS Fraud Bureau. The Fraud Bureau then reports the incident to the USDA-FNS and OIG. County agencies may report trafficking fraud directly to the USDA-FNS and OIG if there is an ongoing working relationship.