CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 560Introduced by Senator Smallwood-CuevasFebruary 20, 2025 An act to amend Sections 10980, 11004, and 18927.1 of, and to add Section 10981 to, the Welfare and Institutions Code, relating to public social services. LEGISLATIVE COUNSEL'S DIGESTSB 560, as introduced, Smallwood-Cuevas. Public social services.Existing law provides for various public social services programs, including, among others, the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families and individuals, and CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county.Existing law establishes criminal penalties for welfare fraud, defined as willfully and knowingly, with the intent to deceive, by specified means, including a false statement or representation, obtaining or retaining aid through designated public social services for oneself or for a child who is not in fact entitled thereto, as specified. Existing law makes any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh or federal Supplemental Nutrition Assistance Program benefits in any manner not authorized, as specified, guilty of a misdemeanor or felony depending on the face value of the benefits.This bill would delete the provision that establishes criminal penalties for an attempt to commit welfare fraud. The bill would delete criminal penalties for welfare fraud when the total amount of aid obtained or retained is above or below $950, and instead make welfare fraud when aid was obtained or retained in the total amount of $25,000 or more punishable by specified imprisonment in a county jail, by a fine, or by imprisonment and fine. The bill would require a county human services agency to determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS) and prohibit the agency from referring a case for criminal action if benefits were authorized in error. The bill would prohibit a person from being subject to criminal prosecution under these provisions for an overpayment or overissuance of benefits obtained under various public social services programs, including CalWORKs and CalFresh, under certain conditions, including that the person is in repayment status or grant or benefit reduction status.Existing law authorizes current and future grants payable to an assistance unit to be reduced due to prior overpayments. In cases in which the overpayment was caused by an agency error, existing law requires grant payments to be reduced by 5% of the maximum aid payment of the assistance unit. Prior to effectuating any reduction of current grants to recover past overpayments, existing law requires the recipient to be advised of the proposed reduction and of their entitlement to a hearing. Existing law prohibits a civil or criminal action from being commenced based on alleged unlawful application for or receipt of public social services if the case record or any consumer credit report used in the case has not been made available to that person or has been destroyed, as specified.This bill would provide that a person or household for whom their grant has or may be reduced under these provisions is only subject to administrative remedies available for responding to an overpayment. The bill would require a recipients case file to be reviewed by a qualified caseworker to identify any errors in determining the overpayment prior to advising the recipient of the proposed reduction. If it is determined during that review that an overpayment was not made, the bill would prohibit subsequent recovery efforts. The bill would also prohibit a civil or criminal action against a recipient if their case file was reviewed by qualified caseworker and it is determined that an overissuance was not made. The bill would provide that an overpayment determined to be an administrative error shall only be collected administratively by the county.Commencing on July 1, 2022, or on the date the Department of Social Services notifies the Legislature that a specified event has occurred, whichever date is later, existing law requires a county to only establish an overpayment if the overpayment occurred within 24 months prior to the county discovering the payment. Existing law also prohibits a county from collecting any portion of a nonfraudulent payment that occurred more than 24 months prior to the date the county discovered an overpayment.This bill would also prohibit a county from taking any other action related to a nonfraudulent overpayment that occurred more than 24 months prior to discovery of the overpayment.Existing law requires current and future CalFresh benefits to be reduced, as specified, to recover a benefit overissuance caused by inadvertent household error or administrative error. Existing law, beginning on July 1, 2022, or on the date the department notifies the Legislature that a specified event has occurred, whichever date is later, limits the period in which a county may establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error or administrative error to the 24 months preceding the month the county welfare department determined the overissuance occurred.The bill would require a recipients case file to be reviewed by a qualified caseworker to identify any errors in determining the overpayment prior to establishing a claim to recover an overissuance. If it is determined during that review that an overissuance was not made, the bill would prohibit any subsequent recovery effort. The bill would require a claim established under these provisions to only be pursued through the applicable administrative process provided by federal law or pursuant to specified procedures prescribed by state law.By expanding county duties relating to the administration of benefits, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 10980 of the Welfare and Institutions Code is amended to read:10980.(a)Any person who, willfully and knowingly, with the intent to deceive, makes a false statement or representation or knowingly fails to disclose a material fact in order to obtain aid under the provisions of this division or who, knowing he or she is not entitled thereto, attempts to obtain aid or to continue to receive aid to which he or she is not entitled, or to receive a larger amount than that to which he or she is legally entitled, is guilty of a misdemeanor, punishable by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine. (b)10980. (a) Any person who knowingly makes more than one application for aid under the provisions of this division with the intent of establishing multiple entitlements for any person for the same period or who makes an application for that aid for a fictitious or nonexistent person or by claiming a false identity for any person is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(c)(b) Whenever any person has, willfully and knowingly, with the intent to deceive, by means of false statement or representation, or by failing to disclose a material fact, or by impersonation or other fraudulent device, obtained or retained aid in the total amount of $25,000 or more under the provisions of this division for himself or herself themselves or for a child not in fact entitled thereto, the person obtaining this aid shall be punished as follows: by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(1)If the total amount of the aid obtained or retained is nine hundred fifty dollars ($950) or less, by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine.(2)If the total amount of the aid obtained or retained is more than nine hundred fifty dollars ($950), by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. (d)(c) Any person who knowingly uses, transfers, acquires, or possesses blank authorizations to participate in an electronic benefit transfer (EBT) card issued under the federal Supplemental Nutrition Assistance Program with the intent to use the benefits in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6 with the intent to defraud is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine.(e)(d) Any person who counterfeits or alters or knowingly uses, transfers, acquires, or possesses a counterfeited or altered authorizations EBT card with the intent to participate in the federal Supplemental Nutrition Assistance Program or to receive CalFresh benefits or electronically transferred benefits in any manner not authorized by the former federal Food Stamp Act of 1964 (Public Law 88-525 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) or the federal regulations pursuant to the act is guilty of forgery.(f)(e) Any person who fraudulently appropriates CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program with which he or she has they have been entrusted pursuant to his or her their duties as a public employee is guilty of embezzlement of public funds.(g)Any(f) (1) Any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6, or by the former federal Food Stamp Act of 1977 (Public Law 95-113 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) (1) is guilty of a misdemeanor if the face value of the benefits or the authorizations to participate is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine, or (2) is guilty of a felony if the face value of the CalFresh benefits or the authorizations to participate exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. is either:(A) Guilty of a misdemeanor if the face value of the benefits is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment or fine.(B) Guilty of a felony if the face value of the CalFresh benefits exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(2) Prior to commencing a criminal action under paragraph (1), a county human services agency shall determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS). If benefits were authorized as a result of an error in the CalSAWS, the county human services agency shall not refer the case for criminal action under paragraph (1). (h)(g) (1) If the violation of subdivision (f) or (g) (e) or (f) is committed by means of an electronic transfer of benefits, in addition and consecutive to the penalties for the violation, or attempted violation, of those subdivisions, the court shall impose the following punishment:(A) If the electronic transfer of benefits exceeds fifty thousand dollars ($50,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of one year.(B) If the electronic transfer of benefits exceeds one hundred fifty thousand dollars ($150,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of two years.(C) If the electronic transfer of benefits exceeds one million dollars ($1,000,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of three years.(D) If the electronic transfer of benefits exceeds two million five hundred thousand dollars ($2,500,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of four years.(2) In any accusatory pleading involving multiple charges of violations of subdivision (f) or (g), (e) or (f), or both, committed by means of an electronic transfer of benefits, the additional terms provided in paragraph (1) may be imposed if the aggregate losses to the victims from all violations exceed the amounts specified in this paragraph and arise from a common scheme or plan.(i)(h) A person who is punished by an additional term of imprisonment under another law for a violation of subdivision (f) or (g) (e) or (f) shall not receive an additional term of imprisonment under subdivision (h). (g).(j)(i) (1) A person shall not be subject to criminal prosecution, under this section or under any other law, for an overpayment or overissuance of benefits, obtained under the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), for any month in which the county human services agency was in receipt of any Income and Eligibility Verification System (IEVS) data match information indicating any potential for an overpayment or an overissuance and for which the county human services agency has not provided to the person a timely and adequate notice of action for the collection of the overpayment or the overissuance.(2) (A) For purposes of paragraph (1), the county human services agency shall be deemed to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following 45 days from the date of the county human services agencys possession of that information.(B) Notwithstanding subparagraph (A), if the county human services agency does not complete the required actions for an IEVS data match for a CalFresh or CalWORKs applicant or recipient within 45 days of receipt of information pursuant to Section 272.8 of Title 7 of, or Section 205.56 of Title 45 of, the Code of Federal Regulations, or their successors, but is authorized to exceed the 45-day period due to exceptions provided under those regulations or under any other federal law, the county human services agency shall be deemed, for purposes of paragraph (1), to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following the combined total of 45 days and the authorized delay from the date of the county human services agencys possession of that information.SEC. 2. Section 10981 is added to the Welfare and Institutions Code, immediately following Section 10980, to read:10981. A person shall not be subject to criminal prosecution under Section 10980 or any other law for an overpayment or overissuance of benefits obtained under a countys general assistance program, the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), or the federal Supplemental Nutrition Assistance Program if either of the following apply:(a) If the county has obtained a finding of intentional program violation, as defined in subdivision (c) of Section 273.16 of Title 7 of the Code of Federal Regulations, through court or administrative proceedings.(b) That person is in repayment status or grant or benefit reduction status.SEC. 3. Section 11004 of the Welfare and Institutions Code, as amended by Section 26 of Chapter 85 of the Statutes of 2021, is amended to read:11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(2) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(3) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) This section shall become inoperative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, as added by the act that added this subdivision, whichever date is later, and is repealed on January 1 of the following year.SEC. 4. Section 11004 of the Welfare and Institutions Code, as added by Section 27 of Chapter 85 of the Statutes of 2021, is amended to read:11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made, then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) (A) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(B) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(2) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(3) (A) Except in cases involving overpayments due to fraud, where there has been a conviction of fraud, a county shall only establish an overpayment if the overpayment occurred within 24 months prior to the date that the county discovered the overpayment.(B) A county shall not collect any portion of a nonfraudulent overpayment or take any other action related to the overpayment that occurred more than 24 months prior to the date the county discovered an overpayment.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instruction that shall have the same force and effect as regulations until regulations are adopted.(n) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(o) This section shall become operative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later, except as otherwise specified in paragraph (2) of subdivision (i).SEC. 5. Section 18927.1 of the Welfare and Institutions Code is amended to read:18927.1. (a) A (1) A county shall establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error, as defined by subdivision (b) of Section 273.18 of Title 7 of the Code of Federal Regulations, or administrative error for which 24 months or fewer have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred. A(2) A county shall not establish a claim to recover an overissuance due to inadvertent household error or administrative error for which more than 24 months have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred.(3) Prior to establishing a claim to recover past overissuance pursuant to paragraph (1), the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance. During this review, if it is determined that an overissuance was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination.(b) A claim established pursuant to this section shall equal the total amount of overissuance during the 24 months immediately preceding the date the overissuance due to the inadvertent household error or administrative error was discovered. A county shall not collect any portion of an overissuance that occurred more than 24 months before the date the county discovered the overissuance.(c) (1) A claim established pursuant to this section shall only be pursued through the applicable administrative process provided by federal law or pursuant to the requirements under Section 18927.(2) No other action related to the claim to recover an overissuance shall be taken once the process established under paragraph (1) has been initiated. (c)(d) This section shall become operative on July 1, 2022, or upon the departments notification to the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later.(d)(e) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instructions, which shall have the same force and effect as regulations, until regulations are adopted.(e)(f) (1) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(2) The department may adopt emergency regulations to implement the changes made to this section by the act that added this paragraph.SEC. 6. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 560Introduced by Senator Smallwood-CuevasFebruary 20, 2025 An act to amend Sections 10980, 11004, and 18927.1 of, and to add Section 10981 to, the Welfare and Institutions Code, relating to public social services. LEGISLATIVE COUNSEL'S DIGESTSB 560, as introduced, Smallwood-Cuevas. Public social services.Existing law provides for various public social services programs, including, among others, the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families and individuals, and CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county.Existing law establishes criminal penalties for welfare fraud, defined as willfully and knowingly, with the intent to deceive, by specified means, including a false statement or representation, obtaining or retaining aid through designated public social services for oneself or for a child who is not in fact entitled thereto, as specified. Existing law makes any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh or federal Supplemental Nutrition Assistance Program benefits in any manner not authorized, as specified, guilty of a misdemeanor or felony depending on the face value of the benefits.This bill would delete the provision that establishes criminal penalties for an attempt to commit welfare fraud. The bill would delete criminal penalties for welfare fraud when the total amount of aid obtained or retained is above or below $950, and instead make welfare fraud when aid was obtained or retained in the total amount of $25,000 or more punishable by specified imprisonment in a county jail, by a fine, or by imprisonment and fine. The bill would require a county human services agency to determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS) and prohibit the agency from referring a case for criminal action if benefits were authorized in error. The bill would prohibit a person from being subject to criminal prosecution under these provisions for an overpayment or overissuance of benefits obtained under various public social services programs, including CalWORKs and CalFresh, under certain conditions, including that the person is in repayment status or grant or benefit reduction status.Existing law authorizes current and future grants payable to an assistance unit to be reduced due to prior overpayments. In cases in which the overpayment was caused by an agency error, existing law requires grant payments to be reduced by 5% of the maximum aid payment of the assistance unit. Prior to effectuating any reduction of current grants to recover past overpayments, existing law requires the recipient to be advised of the proposed reduction and of their entitlement to a hearing. Existing law prohibits a civil or criminal action from being commenced based on alleged unlawful application for or receipt of public social services if the case record or any consumer credit report used in the case has not been made available to that person or has been destroyed, as specified.This bill would provide that a person or household for whom their grant has or may be reduced under these provisions is only subject to administrative remedies available for responding to an overpayment. The bill would require a recipients case file to be reviewed by a qualified caseworker to identify any errors in determining the overpayment prior to advising the recipient of the proposed reduction. If it is determined during that review that an overpayment was not made, the bill would prohibit subsequent recovery efforts. The bill would also prohibit a civil or criminal action against a recipient if their case file was reviewed by qualified caseworker and it is determined that an overissuance was not made. The bill would provide that an overpayment determined to be an administrative error shall only be collected administratively by the county.Commencing on July 1, 2022, or on the date the Department of Social Services notifies the Legislature that a specified event has occurred, whichever date is later, existing law requires a county to only establish an overpayment if the overpayment occurred within 24 months prior to the county discovering the payment. Existing law also prohibits a county from collecting any portion of a nonfraudulent payment that occurred more than 24 months prior to the date the county discovered an overpayment.This bill would also prohibit a county from taking any other action related to a nonfraudulent overpayment that occurred more than 24 months prior to discovery of the overpayment.Existing law requires current and future CalFresh benefits to be reduced, as specified, to recover a benefit overissuance caused by inadvertent household error or administrative error. Existing law, beginning on July 1, 2022, or on the date the department notifies the Legislature that a specified event has occurred, whichever date is later, limits the period in which a county may establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error or administrative error to the 24 months preceding the month the county welfare department determined the overissuance occurred.The bill would require a recipients case file to be reviewed by a qualified caseworker to identify any errors in determining the overpayment prior to establishing a claim to recover an overissuance. If it is determined during that review that an overissuance was not made, the bill would prohibit any subsequent recovery effort. The bill would require a claim established under these provisions to only be pursued through the applicable administrative process provided by federal law or pursuant to specified procedures prescribed by state law.By expanding county duties relating to the administration of benefits, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 560
Introduced by Senator Smallwood-CuevasFebruary 20, 2025
Introduced by Senator Smallwood-Cuevas
February 20, 2025
An act to amend Sections 10980, 11004, and 18927.1 of, and to add Section 10981 to, the Welfare and Institutions Code, relating to public social services.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 560, as introduced, Smallwood-Cuevas. Public social services.
Existing law provides for various public social services programs, including, among others, the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families and individuals, and CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county.Existing law establishes criminal penalties for welfare fraud, defined as willfully and knowingly, with the intent to deceive, by specified means, including a false statement or representation, obtaining or retaining aid through designated public social services for oneself or for a child who is not in fact entitled thereto, as specified. Existing law makes any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh or federal Supplemental Nutrition Assistance Program benefits in any manner not authorized, as specified, guilty of a misdemeanor or felony depending on the face value of the benefits.This bill would delete the provision that establishes criminal penalties for an attempt to commit welfare fraud. The bill would delete criminal penalties for welfare fraud when the total amount of aid obtained or retained is above or below $950, and instead make welfare fraud when aid was obtained or retained in the total amount of $25,000 or more punishable by specified imprisonment in a county jail, by a fine, or by imprisonment and fine. The bill would require a county human services agency to determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS) and prohibit the agency from referring a case for criminal action if benefits were authorized in error. The bill would prohibit a person from being subject to criminal prosecution under these provisions for an overpayment or overissuance of benefits obtained under various public social services programs, including CalWORKs and CalFresh, under certain conditions, including that the person is in repayment status or grant or benefit reduction status.Existing law authorizes current and future grants payable to an assistance unit to be reduced due to prior overpayments. In cases in which the overpayment was caused by an agency error, existing law requires grant payments to be reduced by 5% of the maximum aid payment of the assistance unit. Prior to effectuating any reduction of current grants to recover past overpayments, existing law requires the recipient to be advised of the proposed reduction and of their entitlement to a hearing. Existing law prohibits a civil or criminal action from being commenced based on alleged unlawful application for or receipt of public social services if the case record or any consumer credit report used in the case has not been made available to that person or has been destroyed, as specified.This bill would provide that a person or household for whom their grant has or may be reduced under these provisions is only subject to administrative remedies available for responding to an overpayment. The bill would require a recipients case file to be reviewed by a qualified caseworker to identify any errors in determining the overpayment prior to advising the recipient of the proposed reduction. If it is determined during that review that an overpayment was not made, the bill would prohibit subsequent recovery efforts. The bill would also prohibit a civil or criminal action against a recipient if their case file was reviewed by qualified caseworker and it is determined that an overissuance was not made. The bill would provide that an overpayment determined to be an administrative error shall only be collected administratively by the county.Commencing on July 1, 2022, or on the date the Department of Social Services notifies the Legislature that a specified event has occurred, whichever date is later, existing law requires a county to only establish an overpayment if the overpayment occurred within 24 months prior to the county discovering the payment. Existing law also prohibits a county from collecting any portion of a nonfraudulent payment that occurred more than 24 months prior to the date the county discovered an overpayment.This bill would also prohibit a county from taking any other action related to a nonfraudulent overpayment that occurred more than 24 months prior to discovery of the overpayment.Existing law requires current and future CalFresh benefits to be reduced, as specified, to recover a benefit overissuance caused by inadvertent household error or administrative error. Existing law, beginning on July 1, 2022, or on the date the department notifies the Legislature that a specified event has occurred, whichever date is later, limits the period in which a county may establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error or administrative error to the 24 months preceding the month the county welfare department determined the overissuance occurred.The bill would require a recipients case file to be reviewed by a qualified caseworker to identify any errors in determining the overpayment prior to establishing a claim to recover an overissuance. If it is determined during that review that an overissuance was not made, the bill would prohibit any subsequent recovery effort. The bill would require a claim established under these provisions to only be pursued through the applicable administrative process provided by federal law or pursuant to specified procedures prescribed by state law.By expanding county duties relating to the administration of benefits, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law provides for various public social services programs, including, among others, the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families and individuals, and CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county.
Existing law establishes criminal penalties for welfare fraud, defined as willfully and knowingly, with the intent to deceive, by specified means, including a false statement or representation, obtaining or retaining aid through designated public social services for oneself or for a child who is not in fact entitled thereto, as specified. Existing law makes any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh or federal Supplemental Nutrition Assistance Program benefits in any manner not authorized, as specified, guilty of a misdemeanor or felony depending on the face value of the benefits.
This bill would delete the provision that establishes criminal penalties for an attempt to commit welfare fraud. The bill would delete criminal penalties for welfare fraud when the total amount of aid obtained or retained is above or below $950, and instead make welfare fraud when aid was obtained or retained in the total amount of $25,000 or more punishable by specified imprisonment in a county jail, by a fine, or by imprisonment and fine. The bill would require a county human services agency to determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS) and prohibit the agency from referring a case for criminal action if benefits were authorized in error. The bill would prohibit a person from being subject to criminal prosecution under these provisions for an overpayment or overissuance of benefits obtained under various public social services programs, including CalWORKs and CalFresh, under certain conditions, including that the person is in repayment status or grant or benefit reduction status.
Existing law authorizes current and future grants payable to an assistance unit to be reduced due to prior overpayments. In cases in which the overpayment was caused by an agency error, existing law requires grant payments to be reduced by 5% of the maximum aid payment of the assistance unit. Prior to effectuating any reduction of current grants to recover past overpayments, existing law requires the recipient to be advised of the proposed reduction and of their entitlement to a hearing. Existing law prohibits a civil or criminal action from being commenced based on alleged unlawful application for or receipt of public social services if the case record or any consumer credit report used in the case has not been made available to that person or has been destroyed, as specified.
This bill would provide that a person or household for whom their grant has or may be reduced under these provisions is only subject to administrative remedies available for responding to an overpayment. The bill would require a recipients case file to be reviewed by a qualified caseworker to identify any errors in determining the overpayment prior to advising the recipient of the proposed reduction. If it is determined during that review that an overpayment was not made, the bill would prohibit subsequent recovery efforts. The bill would also prohibit a civil or criminal action against a recipient if their case file was reviewed by qualified caseworker and it is determined that an overissuance was not made. The bill would provide that an overpayment determined to be an administrative error shall only be collected administratively by the county.
Commencing on July 1, 2022, or on the date the Department of Social Services notifies the Legislature that a specified event has occurred, whichever date is later, existing law requires a county to only establish an overpayment if the overpayment occurred within 24 months prior to the county discovering the payment. Existing law also prohibits a county from collecting any portion of a nonfraudulent payment that occurred more than 24 months prior to the date the county discovered an overpayment.
This bill would also prohibit a county from taking any other action related to a nonfraudulent overpayment that occurred more than 24 months prior to discovery of the overpayment.
Existing law requires current and future CalFresh benefits to be reduced, as specified, to recover a benefit overissuance caused by inadvertent household error or administrative error. Existing law, beginning on July 1, 2022, or on the date the department notifies the Legislature that a specified event has occurred, whichever date is later, limits the period in which a county may establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error or administrative error to the 24 months preceding the month the county welfare department determined the overissuance occurred.
The bill would require a recipients case file to be reviewed by a qualified caseworker to identify any errors in determining the overpayment prior to establishing a claim to recover an overissuance. If it is determined during that review that an overissuance was not made, the bill would prohibit any subsequent recovery effort. The bill would require a claim established under these provisions to only be pursued through the applicable administrative process provided by federal law or pursuant to specified procedures prescribed by state law.
By expanding county duties relating to the administration of benefits, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 10980 of the Welfare and Institutions Code is amended to read:10980.(a)Any person who, willfully and knowingly, with the intent to deceive, makes a false statement or representation or knowingly fails to disclose a material fact in order to obtain aid under the provisions of this division or who, knowing he or she is not entitled thereto, attempts to obtain aid or to continue to receive aid to which he or she is not entitled, or to receive a larger amount than that to which he or she is legally entitled, is guilty of a misdemeanor, punishable by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine. (b)10980. (a) Any person who knowingly makes more than one application for aid under the provisions of this division with the intent of establishing multiple entitlements for any person for the same period or who makes an application for that aid for a fictitious or nonexistent person or by claiming a false identity for any person is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(c)(b) Whenever any person has, willfully and knowingly, with the intent to deceive, by means of false statement or representation, or by failing to disclose a material fact, or by impersonation or other fraudulent device, obtained or retained aid in the total amount of $25,000 or more under the provisions of this division for himself or herself themselves or for a child not in fact entitled thereto, the person obtaining this aid shall be punished as follows: by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(1)If the total amount of the aid obtained or retained is nine hundred fifty dollars ($950) or less, by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine.(2)If the total amount of the aid obtained or retained is more than nine hundred fifty dollars ($950), by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. (d)(c) Any person who knowingly uses, transfers, acquires, or possesses blank authorizations to participate in an electronic benefit transfer (EBT) card issued under the federal Supplemental Nutrition Assistance Program with the intent to use the benefits in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6 with the intent to defraud is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine.(e)(d) Any person who counterfeits or alters or knowingly uses, transfers, acquires, or possesses a counterfeited or altered authorizations EBT card with the intent to participate in the federal Supplemental Nutrition Assistance Program or to receive CalFresh benefits or electronically transferred benefits in any manner not authorized by the former federal Food Stamp Act of 1964 (Public Law 88-525 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) or the federal regulations pursuant to the act is guilty of forgery.(f)(e) Any person who fraudulently appropriates CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program with which he or she has they have been entrusted pursuant to his or her their duties as a public employee is guilty of embezzlement of public funds.(g)Any(f) (1) Any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6, or by the former federal Food Stamp Act of 1977 (Public Law 95-113 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) (1) is guilty of a misdemeanor if the face value of the benefits or the authorizations to participate is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine, or (2) is guilty of a felony if the face value of the CalFresh benefits or the authorizations to participate exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. is either:(A) Guilty of a misdemeanor if the face value of the benefits is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment or fine.(B) Guilty of a felony if the face value of the CalFresh benefits exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(2) Prior to commencing a criminal action under paragraph (1), a county human services agency shall determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS). If benefits were authorized as a result of an error in the CalSAWS, the county human services agency shall not refer the case for criminal action under paragraph (1). (h)(g) (1) If the violation of subdivision (f) or (g) (e) or (f) is committed by means of an electronic transfer of benefits, in addition and consecutive to the penalties for the violation, or attempted violation, of those subdivisions, the court shall impose the following punishment:(A) If the electronic transfer of benefits exceeds fifty thousand dollars ($50,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of one year.(B) If the electronic transfer of benefits exceeds one hundred fifty thousand dollars ($150,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of two years.(C) If the electronic transfer of benefits exceeds one million dollars ($1,000,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of three years.(D) If the electronic transfer of benefits exceeds two million five hundred thousand dollars ($2,500,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of four years.(2) In any accusatory pleading involving multiple charges of violations of subdivision (f) or (g), (e) or (f), or both, committed by means of an electronic transfer of benefits, the additional terms provided in paragraph (1) may be imposed if the aggregate losses to the victims from all violations exceed the amounts specified in this paragraph and arise from a common scheme or plan.(i)(h) A person who is punished by an additional term of imprisonment under another law for a violation of subdivision (f) or (g) (e) or (f) shall not receive an additional term of imprisonment under subdivision (h). (g).(j)(i) (1) A person shall not be subject to criminal prosecution, under this section or under any other law, for an overpayment or overissuance of benefits, obtained under the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), for any month in which the county human services agency was in receipt of any Income and Eligibility Verification System (IEVS) data match information indicating any potential for an overpayment or an overissuance and for which the county human services agency has not provided to the person a timely and adequate notice of action for the collection of the overpayment or the overissuance.(2) (A) For purposes of paragraph (1), the county human services agency shall be deemed to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following 45 days from the date of the county human services agencys possession of that information.(B) Notwithstanding subparagraph (A), if the county human services agency does not complete the required actions for an IEVS data match for a CalFresh or CalWORKs applicant or recipient within 45 days of receipt of information pursuant to Section 272.8 of Title 7 of, or Section 205.56 of Title 45 of, the Code of Federal Regulations, or their successors, but is authorized to exceed the 45-day period due to exceptions provided under those regulations or under any other federal law, the county human services agency shall be deemed, for purposes of paragraph (1), to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following the combined total of 45 days and the authorized delay from the date of the county human services agencys possession of that information.SEC. 2. Section 10981 is added to the Welfare and Institutions Code, immediately following Section 10980, to read:10981. A person shall not be subject to criminal prosecution under Section 10980 or any other law for an overpayment or overissuance of benefits obtained under a countys general assistance program, the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), or the federal Supplemental Nutrition Assistance Program if either of the following apply:(a) If the county has obtained a finding of intentional program violation, as defined in subdivision (c) of Section 273.16 of Title 7 of the Code of Federal Regulations, through court or administrative proceedings.(b) That person is in repayment status or grant or benefit reduction status.SEC. 3. Section 11004 of the Welfare and Institutions Code, as amended by Section 26 of Chapter 85 of the Statutes of 2021, is amended to read:11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(2) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(3) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) This section shall become inoperative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, as added by the act that added this subdivision, whichever date is later, and is repealed on January 1 of the following year.SEC. 4. Section 11004 of the Welfare and Institutions Code, as added by Section 27 of Chapter 85 of the Statutes of 2021, is amended to read:11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made, then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) (A) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(B) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(2) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(3) (A) Except in cases involving overpayments due to fraud, where there has been a conviction of fraud, a county shall only establish an overpayment if the overpayment occurred within 24 months prior to the date that the county discovered the overpayment.(B) A county shall not collect any portion of a nonfraudulent overpayment or take any other action related to the overpayment that occurred more than 24 months prior to the date the county discovered an overpayment.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instruction that shall have the same force and effect as regulations until regulations are adopted.(n) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(o) This section shall become operative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later, except as otherwise specified in paragraph (2) of subdivision (i).SEC. 5. Section 18927.1 of the Welfare and Institutions Code is amended to read:18927.1. (a) A (1) A county shall establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error, as defined by subdivision (b) of Section 273.18 of Title 7 of the Code of Federal Regulations, or administrative error for which 24 months or fewer have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred. A(2) A county shall not establish a claim to recover an overissuance due to inadvertent household error or administrative error for which more than 24 months have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred.(3) Prior to establishing a claim to recover past overissuance pursuant to paragraph (1), the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance. During this review, if it is determined that an overissuance was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination.(b) A claim established pursuant to this section shall equal the total amount of overissuance during the 24 months immediately preceding the date the overissuance due to the inadvertent household error or administrative error was discovered. A county shall not collect any portion of an overissuance that occurred more than 24 months before the date the county discovered the overissuance.(c) (1) A claim established pursuant to this section shall only be pursued through the applicable administrative process provided by federal law or pursuant to the requirements under Section 18927.(2) No other action related to the claim to recover an overissuance shall be taken once the process established under paragraph (1) has been initiated. (c)(d) This section shall become operative on July 1, 2022, or upon the departments notification to the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later.(d)(e) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instructions, which shall have the same force and effect as regulations, until regulations are adopted.(e)(f) (1) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(2) The department may adopt emergency regulations to implement the changes made to this section by the act that added this paragraph.SEC. 6. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 10980 of the Welfare and Institutions Code is amended to read:10980.(a)Any person who, willfully and knowingly, with the intent to deceive, makes a false statement or representation or knowingly fails to disclose a material fact in order to obtain aid under the provisions of this division or who, knowing he or she is not entitled thereto, attempts to obtain aid or to continue to receive aid to which he or she is not entitled, or to receive a larger amount than that to which he or she is legally entitled, is guilty of a misdemeanor, punishable by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine. (b)10980. (a) Any person who knowingly makes more than one application for aid under the provisions of this division with the intent of establishing multiple entitlements for any person for the same period or who makes an application for that aid for a fictitious or nonexistent person or by claiming a false identity for any person is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(c)(b) Whenever any person has, willfully and knowingly, with the intent to deceive, by means of false statement or representation, or by failing to disclose a material fact, or by impersonation or other fraudulent device, obtained or retained aid in the total amount of $25,000 or more under the provisions of this division for himself or herself themselves or for a child not in fact entitled thereto, the person obtaining this aid shall be punished as follows: by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(1)If the total amount of the aid obtained or retained is nine hundred fifty dollars ($950) or less, by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine.(2)If the total amount of the aid obtained or retained is more than nine hundred fifty dollars ($950), by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. (d)(c) Any person who knowingly uses, transfers, acquires, or possesses blank authorizations to participate in an electronic benefit transfer (EBT) card issued under the federal Supplemental Nutrition Assistance Program with the intent to use the benefits in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6 with the intent to defraud is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine.(e)(d) Any person who counterfeits or alters or knowingly uses, transfers, acquires, or possesses a counterfeited or altered authorizations EBT card with the intent to participate in the federal Supplemental Nutrition Assistance Program or to receive CalFresh benefits or electronically transferred benefits in any manner not authorized by the former federal Food Stamp Act of 1964 (Public Law 88-525 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) or the federal regulations pursuant to the act is guilty of forgery.(f)(e) Any person who fraudulently appropriates CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program with which he or she has they have been entrusted pursuant to his or her their duties as a public employee is guilty of embezzlement of public funds.(g)Any(f) (1) Any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6, or by the former federal Food Stamp Act of 1977 (Public Law 95-113 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) (1) is guilty of a misdemeanor if the face value of the benefits or the authorizations to participate is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine, or (2) is guilty of a felony if the face value of the CalFresh benefits or the authorizations to participate exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. is either:(A) Guilty of a misdemeanor if the face value of the benefits is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment or fine.(B) Guilty of a felony if the face value of the CalFresh benefits exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(2) Prior to commencing a criminal action under paragraph (1), a county human services agency shall determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS). If benefits were authorized as a result of an error in the CalSAWS, the county human services agency shall not refer the case for criminal action under paragraph (1). (h)(g) (1) If the violation of subdivision (f) or (g) (e) or (f) is committed by means of an electronic transfer of benefits, in addition and consecutive to the penalties for the violation, or attempted violation, of those subdivisions, the court shall impose the following punishment:(A) If the electronic transfer of benefits exceeds fifty thousand dollars ($50,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of one year.(B) If the electronic transfer of benefits exceeds one hundred fifty thousand dollars ($150,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of two years.(C) If the electronic transfer of benefits exceeds one million dollars ($1,000,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of three years.(D) If the electronic transfer of benefits exceeds two million five hundred thousand dollars ($2,500,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of four years.(2) In any accusatory pleading involving multiple charges of violations of subdivision (f) or (g), (e) or (f), or both, committed by means of an electronic transfer of benefits, the additional terms provided in paragraph (1) may be imposed if the aggregate losses to the victims from all violations exceed the amounts specified in this paragraph and arise from a common scheme or plan.(i)(h) A person who is punished by an additional term of imprisonment under another law for a violation of subdivision (f) or (g) (e) or (f) shall not receive an additional term of imprisonment under subdivision (h). (g).(j)(i) (1) A person shall not be subject to criminal prosecution, under this section or under any other law, for an overpayment or overissuance of benefits, obtained under the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), for any month in which the county human services agency was in receipt of any Income and Eligibility Verification System (IEVS) data match information indicating any potential for an overpayment or an overissuance and for which the county human services agency has not provided to the person a timely and adequate notice of action for the collection of the overpayment or the overissuance.(2) (A) For purposes of paragraph (1), the county human services agency shall be deemed to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following 45 days from the date of the county human services agencys possession of that information.(B) Notwithstanding subparagraph (A), if the county human services agency does not complete the required actions for an IEVS data match for a CalFresh or CalWORKs applicant or recipient within 45 days of receipt of information pursuant to Section 272.8 of Title 7 of, or Section 205.56 of Title 45 of, the Code of Federal Regulations, or their successors, but is authorized to exceed the 45-day period due to exceptions provided under those regulations or under any other federal law, the county human services agency shall be deemed, for purposes of paragraph (1), to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following the combined total of 45 days and the authorized delay from the date of the county human services agencys possession of that information.
SECTION 1. Section 10980 of the Welfare and Institutions Code is amended to read:
### SECTION 1.
10980.(a)Any person who, willfully and knowingly, with the intent to deceive, makes a false statement or representation or knowingly fails to disclose a material fact in order to obtain aid under the provisions of this division or who, knowing he or she is not entitled thereto, attempts to obtain aid or to continue to receive aid to which he or she is not entitled, or to receive a larger amount than that to which he or she is legally entitled, is guilty of a misdemeanor, punishable by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine. (b)10980. (a) Any person who knowingly makes more than one application for aid under the provisions of this division with the intent of establishing multiple entitlements for any person for the same period or who makes an application for that aid for a fictitious or nonexistent person or by claiming a false identity for any person is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(c)(b) Whenever any person has, willfully and knowingly, with the intent to deceive, by means of false statement or representation, or by failing to disclose a material fact, or by impersonation or other fraudulent device, obtained or retained aid in the total amount of $25,000 or more under the provisions of this division for himself or herself themselves or for a child not in fact entitled thereto, the person obtaining this aid shall be punished as follows: by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(1)If the total amount of the aid obtained or retained is nine hundred fifty dollars ($950) or less, by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine.(2)If the total amount of the aid obtained or retained is more than nine hundred fifty dollars ($950), by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. (d)(c) Any person who knowingly uses, transfers, acquires, or possesses blank authorizations to participate in an electronic benefit transfer (EBT) card issued under the federal Supplemental Nutrition Assistance Program with the intent to use the benefits in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6 with the intent to defraud is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine.(e)(d) Any person who counterfeits or alters or knowingly uses, transfers, acquires, or possesses a counterfeited or altered authorizations EBT card with the intent to participate in the federal Supplemental Nutrition Assistance Program or to receive CalFresh benefits or electronically transferred benefits in any manner not authorized by the former federal Food Stamp Act of 1964 (Public Law 88-525 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) or the federal regulations pursuant to the act is guilty of forgery.(f)(e) Any person who fraudulently appropriates CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program with which he or she has they have been entrusted pursuant to his or her their duties as a public employee is guilty of embezzlement of public funds.(g)Any(f) (1) Any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6, or by the former federal Food Stamp Act of 1977 (Public Law 95-113 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) (1) is guilty of a misdemeanor if the face value of the benefits or the authorizations to participate is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine, or (2) is guilty of a felony if the face value of the CalFresh benefits or the authorizations to participate exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. is either:(A) Guilty of a misdemeanor if the face value of the benefits is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment or fine.(B) Guilty of a felony if the face value of the CalFresh benefits exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(2) Prior to commencing a criminal action under paragraph (1), a county human services agency shall determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS). If benefits were authorized as a result of an error in the CalSAWS, the county human services agency shall not refer the case for criminal action under paragraph (1). (h)(g) (1) If the violation of subdivision (f) or (g) (e) or (f) is committed by means of an electronic transfer of benefits, in addition and consecutive to the penalties for the violation, or attempted violation, of those subdivisions, the court shall impose the following punishment:(A) If the electronic transfer of benefits exceeds fifty thousand dollars ($50,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of one year.(B) If the electronic transfer of benefits exceeds one hundred fifty thousand dollars ($150,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of two years.(C) If the electronic transfer of benefits exceeds one million dollars ($1,000,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of three years.(D) If the electronic transfer of benefits exceeds two million five hundred thousand dollars ($2,500,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of four years.(2) In any accusatory pleading involving multiple charges of violations of subdivision (f) or (g), (e) or (f), or both, committed by means of an electronic transfer of benefits, the additional terms provided in paragraph (1) may be imposed if the aggregate losses to the victims from all violations exceed the amounts specified in this paragraph and arise from a common scheme or plan.(i)(h) A person who is punished by an additional term of imprisonment under another law for a violation of subdivision (f) or (g) (e) or (f) shall not receive an additional term of imprisonment under subdivision (h). (g).(j)(i) (1) A person shall not be subject to criminal prosecution, under this section or under any other law, for an overpayment or overissuance of benefits, obtained under the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), for any month in which the county human services agency was in receipt of any Income and Eligibility Verification System (IEVS) data match information indicating any potential for an overpayment or an overissuance and for which the county human services agency has not provided to the person a timely and adequate notice of action for the collection of the overpayment or the overissuance.(2) (A) For purposes of paragraph (1), the county human services agency shall be deemed to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following 45 days from the date of the county human services agencys possession of that information.(B) Notwithstanding subparagraph (A), if the county human services agency does not complete the required actions for an IEVS data match for a CalFresh or CalWORKs applicant or recipient within 45 days of receipt of information pursuant to Section 272.8 of Title 7 of, or Section 205.56 of Title 45 of, the Code of Federal Regulations, or their successors, but is authorized to exceed the 45-day period due to exceptions provided under those regulations or under any other federal law, the county human services agency shall be deemed, for purposes of paragraph (1), to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following the combined total of 45 days and the authorized delay from the date of the county human services agencys possession of that information.
(a)Any person who, willfully and knowingly, with the intent to deceive, makes a false statement or representation or knowingly fails to disclose a material fact in order to obtain aid under the provisions of this division or who, knowing he or she is not entitled thereto, attempts to obtain aid or to continue to receive aid to which he or she is not entitled, or to receive a larger amount than that to which he or she is legally entitled, is guilty of a misdemeanor, punishable by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine.
(b)
10980. (a) Any person who knowingly makes more than one application for aid under the provisions of this division with the intent of establishing multiple entitlements for any person for the same period or who makes an application for that aid for a fictitious or nonexistent person or by claiming a false identity for any person is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(c)(b) Whenever any person has, willfully and knowingly, with the intent to deceive, by means of false statement or representation, or by failing to disclose a material fact, or by impersonation or other fraudulent device, obtained or retained aid in the total amount of $25,000 or more under the provisions of this division for himself or herself themselves or for a child not in fact entitled thereto, the person obtaining this aid shall be punished as follows: by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(1)If the total amount of the aid obtained or retained is nine hundred fifty dollars ($950) or less, by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine.(2)If the total amount of the aid obtained or retained is more than nine hundred fifty dollars ($950), by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. (d)(c) Any person who knowingly uses, transfers, acquires, or possesses blank authorizations to participate in an electronic benefit transfer (EBT) card issued under the federal Supplemental Nutrition Assistance Program with the intent to use the benefits in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6 with the intent to defraud is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine.(e)(d) Any person who counterfeits or alters or knowingly uses, transfers, acquires, or possesses a counterfeited or altered authorizations EBT card with the intent to participate in the federal Supplemental Nutrition Assistance Program or to receive CalFresh benefits or electronically transferred benefits in any manner not authorized by the former federal Food Stamp Act of 1964 (Public Law 88-525 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) or the federal regulations pursuant to the act is guilty of forgery.(f)(e) Any person who fraudulently appropriates CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program with which he or she has they have been entrusted pursuant to his or her their duties as a public employee is guilty of embezzlement of public funds.(g)Any(f) (1) Any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6, or by the former federal Food Stamp Act of 1977 (Public Law 95-113 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) (1) is guilty of a misdemeanor if the face value of the benefits or the authorizations to participate is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine, or (2) is guilty of a felony if the face value of the CalFresh benefits or the authorizations to participate exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. is either:(A) Guilty of a misdemeanor if the face value of the benefits is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment or fine.(B) Guilty of a felony if the face value of the CalFresh benefits exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(2) Prior to commencing a criminal action under paragraph (1), a county human services agency shall determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS). If benefits were authorized as a result of an error in the CalSAWS, the county human services agency shall not refer the case for criminal action under paragraph (1). (h)(g) (1) If the violation of subdivision (f) or (g) (e) or (f) is committed by means of an electronic transfer of benefits, in addition and consecutive to the penalties for the violation, or attempted violation, of those subdivisions, the court shall impose the following punishment:(A) If the electronic transfer of benefits exceeds fifty thousand dollars ($50,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of one year.(B) If the electronic transfer of benefits exceeds one hundred fifty thousand dollars ($150,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of two years.(C) If the electronic transfer of benefits exceeds one million dollars ($1,000,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of three years.(D) If the electronic transfer of benefits exceeds two million five hundred thousand dollars ($2,500,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of four years.(2) In any accusatory pleading involving multiple charges of violations of subdivision (f) or (g), (e) or (f), or both, committed by means of an electronic transfer of benefits, the additional terms provided in paragraph (1) may be imposed if the aggregate losses to the victims from all violations exceed the amounts specified in this paragraph and arise from a common scheme or plan.(i)(h) A person who is punished by an additional term of imprisonment under another law for a violation of subdivision (f) or (g) (e) or (f) shall not receive an additional term of imprisonment under subdivision (h). (g).(j)(i) (1) A person shall not be subject to criminal prosecution, under this section or under any other law, for an overpayment or overissuance of benefits, obtained under the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), for any month in which the county human services agency was in receipt of any Income and Eligibility Verification System (IEVS) data match information indicating any potential for an overpayment or an overissuance and for which the county human services agency has not provided to the person a timely and adequate notice of action for the collection of the overpayment or the overissuance.(2) (A) For purposes of paragraph (1), the county human services agency shall be deemed to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following 45 days from the date of the county human services agencys possession of that information.(B) Notwithstanding subparagraph (A), if the county human services agency does not complete the required actions for an IEVS data match for a CalFresh or CalWORKs applicant or recipient within 45 days of receipt of information pursuant to Section 272.8 of Title 7 of, or Section 205.56 of Title 45 of, the Code of Federal Regulations, or their successors, but is authorized to exceed the 45-day period due to exceptions provided under those regulations or under any other federal law, the county human services agency shall be deemed, for purposes of paragraph (1), to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following the combined total of 45 days and the authorized delay from the date of the county human services agencys possession of that information.
10980. (a) Any person who knowingly makes more than one application for aid under the provisions of this division with the intent of establishing multiple entitlements for any person for the same period or who makes an application for that aid for a fictitious or nonexistent person or by claiming a false identity for any person is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(c)(b) Whenever any person has, willfully and knowingly, with the intent to deceive, by means of false statement or representation, or by failing to disclose a material fact, or by impersonation or other fraudulent device, obtained or retained aid in the total amount of $25,000 or more under the provisions of this division for himself or herself themselves or for a child not in fact entitled thereto, the person obtaining this aid shall be punished as follows: by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(1)If the total amount of the aid obtained or retained is nine hundred fifty dollars ($950) or less, by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine.(2)If the total amount of the aid obtained or retained is more than nine hundred fifty dollars ($950), by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. (d)(c) Any person who knowingly uses, transfers, acquires, or possesses blank authorizations to participate in an electronic benefit transfer (EBT) card issued under the federal Supplemental Nutrition Assistance Program with the intent to use the benefits in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6 with the intent to defraud is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine.(e)(d) Any person who counterfeits or alters or knowingly uses, transfers, acquires, or possesses a counterfeited or altered authorizations EBT card with the intent to participate in the federal Supplemental Nutrition Assistance Program or to receive CalFresh benefits or electronically transferred benefits in any manner not authorized by the former federal Food Stamp Act of 1964 (Public Law 88-525 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) or the federal regulations pursuant to the act is guilty of forgery.(f)(e) Any person who fraudulently appropriates CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program with which he or she has they have been entrusted pursuant to his or her their duties as a public employee is guilty of embezzlement of public funds.(g)Any(f) (1) Any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6, or by the former federal Food Stamp Act of 1977 (Public Law 95-113 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) (1) is guilty of a misdemeanor if the face value of the benefits or the authorizations to participate is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine, or (2) is guilty of a felony if the face value of the CalFresh benefits or the authorizations to participate exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. is either:(A) Guilty of a misdemeanor if the face value of the benefits is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment or fine.(B) Guilty of a felony if the face value of the CalFresh benefits exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.(2) Prior to commencing a criminal action under paragraph (1), a county human services agency shall determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS). If benefits were authorized as a result of an error in the CalSAWS, the county human services agency shall not refer the case for criminal action under paragraph (1). (h)(g) (1) If the violation of subdivision (f) or (g) (e) or (f) is committed by means of an electronic transfer of benefits, in addition and consecutive to the penalties for the violation, or attempted violation, of those subdivisions, the court shall impose the following punishment:(A) If the electronic transfer of benefits exceeds fifty thousand dollars ($50,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of one year.(B) If the electronic transfer of benefits exceeds one hundred fifty thousand dollars ($150,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of two years.(C) If the electronic transfer of benefits exceeds one million dollars ($1,000,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of three years.(D) If the electronic transfer of benefits exceeds two million five hundred thousand dollars ($2,500,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of four years.(2) In any accusatory pleading involving multiple charges of violations of subdivision (f) or (g), (e) or (f), or both, committed by means of an electronic transfer of benefits, the additional terms provided in paragraph (1) may be imposed if the aggregate losses to the victims from all violations exceed the amounts specified in this paragraph and arise from a common scheme or plan.(i)(h) A person who is punished by an additional term of imprisonment under another law for a violation of subdivision (f) or (g) (e) or (f) shall not receive an additional term of imprisonment under subdivision (h). (g).(j)(i) (1) A person shall not be subject to criminal prosecution, under this section or under any other law, for an overpayment or overissuance of benefits, obtained under the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), for any month in which the county human services agency was in receipt of any Income and Eligibility Verification System (IEVS) data match information indicating any potential for an overpayment or an overissuance and for which the county human services agency has not provided to the person a timely and adequate notice of action for the collection of the overpayment or the overissuance.(2) (A) For purposes of paragraph (1), the county human services agency shall be deemed to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following 45 days from the date of the county human services agencys possession of that information.(B) Notwithstanding subparagraph (A), if the county human services agency does not complete the required actions for an IEVS data match for a CalFresh or CalWORKs applicant or recipient within 45 days of receipt of information pursuant to Section 272.8 of Title 7 of, or Section 205.56 of Title 45 of, the Code of Federal Regulations, or their successors, but is authorized to exceed the 45-day period due to exceptions provided under those regulations or under any other federal law, the county human services agency shall be deemed, for purposes of paragraph (1), to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following the combined total of 45 days and the authorized delay from the date of the county human services agencys possession of that information.
10980. (a) Any person who knowingly makes more than one application for aid under the provisions of this division with the intent of establishing multiple entitlements for any person for the same period or who makes an application for that aid for a fictitious or nonexistent person or by claiming a false identity for any person is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.
(c)
(b) Whenever any person has, willfully and knowingly, with the intent to deceive, by means of false statement or representation, or by failing to disclose a material fact, or by impersonation or other fraudulent device, obtained or retained aid in the total amount of $25,000 or more under the provisions of this division for himself or herself themselves or for a child not in fact entitled thereto, the person obtaining this aid shall be punished as follows: by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.
(1)If the total amount of the aid obtained or retained is nine hundred fifty dollars ($950) or less, by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine.
(2)If the total amount of the aid obtained or retained is more than nine hundred fifty dollars ($950), by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine; or by imprisonment in a county jail for a period of not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.
(d)
(c) Any person who knowingly uses, transfers, acquires, or possesses blank authorizations to participate in an electronic benefit transfer (EBT) card issued under the federal Supplemental Nutrition Assistance Program with the intent to use the benefits in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6 with the intent to defraud is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine.
(e)
(d) Any person who counterfeits or alters or knowingly uses, transfers, acquires, or possesses a counterfeited or altered authorizations EBT card with the intent to participate in the federal Supplemental Nutrition Assistance Program or to receive CalFresh benefits or electronically transferred benefits in any manner not authorized by the former federal Food Stamp Act of 1964 (Public Law 88-525 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) or the federal regulations pursuant to the act is guilty of forgery.
(f)
(e) Any person who fraudulently appropriates CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program with which he or she has they have been entrusted pursuant to his or her their duties as a public employee is guilty of embezzlement of public funds.
(g)Any
(f) (1) Any person who knowingly uses, transfers, sells, purchases, or possesses CalFresh benefits, electronically transferred benefits, or authorizations to participate in benefits or an EBT card issued under the federal Supplemental Nutrition Assistance Program in any manner not authorized by Chapter 10 (commencing with Section 18900) of Part 6, or by the former federal Food Stamp Act of 1977 (Public Law 95-113 and all amendments thereto) or the federal Food and Nutrition Act of 2008 (7 U.S.C. Sec. 2011 et seq.) (1) is guilty of a misdemeanor if the face value of the benefits or the authorizations to participate is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment and fine, or (2) is guilty of a felony if the face value of the CalFresh benefits or the authorizations to participate exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine. is either:
(A) Guilty of a misdemeanor if the face value of the benefits is nine hundred fifty dollars ($950) or less, and shall be punished by imprisonment in a county jail for a period of not more than six months, by a fine of not more than five hundred dollars ($500), or by both imprisonment or fine.
(B) Guilty of a felony if the face value of the CalFresh benefits exceeds nine hundred fifty dollars ($950), and shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of 16 months, two years, or three years, by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine, or by imprisonment in a county jail for a period of not more than one year, or by a fine of not more than one thousand dollars ($1,000), or by both imprisonment and fine.
(2) Prior to commencing a criminal action under paragraph (1), a county human services agency shall determine whether benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS). If benefits were authorized as a result of an error in the CalSAWS, the county human services agency shall not refer the case for criminal action under paragraph (1).
(h)
(g) (1) If the violation of subdivision (f) or (g) (e) or (f) is committed by means of an electronic transfer of benefits, in addition and consecutive to the penalties for the violation, or attempted violation, of those subdivisions, the court shall impose the following punishment:
(A) If the electronic transfer of benefits exceeds fifty thousand dollars ($50,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of one year.
(B) If the electronic transfer of benefits exceeds one hundred fifty thousand dollars ($150,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of two years.
(C) If the electronic transfer of benefits exceeds one million dollars ($1,000,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of three years.
(D) If the electronic transfer of benefits exceeds two million five hundred thousand dollars ($2,500,000), an additional term pursuant to subdivision (h) of Section 1170 of the Penal Code of four years.
(2) In any accusatory pleading involving multiple charges of violations of subdivision (f) or (g), (e) or (f), or both, committed by means of an electronic transfer of benefits, the additional terms provided in paragraph (1) may be imposed if the aggregate losses to the victims from all violations exceed the amounts specified in this paragraph and arise from a common scheme or plan.
(i)
(h) A person who is punished by an additional term of imprisonment under another law for a violation of subdivision (f) or (g) (e) or (f) shall not receive an additional term of imprisonment under subdivision (h). (g).
(j)
(i) (1) A person shall not be subject to criminal prosecution, under this section or under any other law, for an overpayment or overissuance of benefits, obtained under the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), for any month in which the county human services agency was in receipt of any Income and Eligibility Verification System (IEVS) data match information indicating any potential for an overpayment or an overissuance and for which the county human services agency has not provided to the person a timely and adequate notice of action for the collection of the overpayment or the overissuance.
(2) (A) For purposes of paragraph (1), the county human services agency shall be deemed to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following 45 days from the date of the county human services agencys possession of that information.
(B) Notwithstanding subparagraph (A), if the county human services agency does not complete the required actions for an IEVS data match for a CalFresh or CalWORKs applicant or recipient within 45 days of receipt of information pursuant to Section 272.8 of Title 7 of, or Section 205.56 of Title 45 of, the Code of Federal Regulations, or their successors, but is authorized to exceed the 45-day period due to exceptions provided under those regulations or under any other federal law, the county human services agency shall be deemed, for purposes of paragraph (1), to be in receipt of IEVS data match information indicating any potential for an overpayment or an overissuance following the combined total of 45 days and the authorized delay from the date of the county human services agencys possession of that information.
SEC. 2. Section 10981 is added to the Welfare and Institutions Code, immediately following Section 10980, to read:10981. A person shall not be subject to criminal prosecution under Section 10980 or any other law for an overpayment or overissuance of benefits obtained under a countys general assistance program, the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), or the federal Supplemental Nutrition Assistance Program if either of the following apply:(a) If the county has obtained a finding of intentional program violation, as defined in subdivision (c) of Section 273.16 of Title 7 of the Code of Federal Regulations, through court or administrative proceedings.(b) That person is in repayment status or grant or benefit reduction status.
SEC. 2. Section 10981 is added to the Welfare and Institutions Code, immediately following Section 10980, to read:
### SEC. 2.
10981. A person shall not be subject to criminal prosecution under Section 10980 or any other law for an overpayment or overissuance of benefits obtained under a countys general assistance program, the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), or the federal Supplemental Nutrition Assistance Program if either of the following apply:(a) If the county has obtained a finding of intentional program violation, as defined in subdivision (c) of Section 273.16 of Title 7 of the Code of Federal Regulations, through court or administrative proceedings.(b) That person is in repayment status or grant or benefit reduction status.
10981. A person shall not be subject to criminal prosecution under Section 10980 or any other law for an overpayment or overissuance of benefits obtained under a countys general assistance program, the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), or the federal Supplemental Nutrition Assistance Program if either of the following apply:(a) If the county has obtained a finding of intentional program violation, as defined in subdivision (c) of Section 273.16 of Title 7 of the Code of Federal Regulations, through court or administrative proceedings.(b) That person is in repayment status or grant or benefit reduction status.
10981. A person shall not be subject to criminal prosecution under Section 10980 or any other law for an overpayment or overissuance of benefits obtained under a countys general assistance program, the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), or the federal Supplemental Nutrition Assistance Program if either of the following apply:(a) If the county has obtained a finding of intentional program violation, as defined in subdivision (c) of Section 273.16 of Title 7 of the Code of Federal Regulations, through court or administrative proceedings.(b) That person is in repayment status or grant or benefit reduction status.
10981. A person shall not be subject to criminal prosecution under Section 10980 or any other law for an overpayment or overissuance of benefits obtained under a countys general assistance program, the California Work Opportunity and Responsibility to Kids (CalWORKs) program (Chapter 2 (commencing with Section 11200) of Part 3) or the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), or the federal Supplemental Nutrition Assistance Program if either of the following apply:
(a) If the county has obtained a finding of intentional program violation, as defined in subdivision (c) of Section 273.16 of Title 7 of the Code of Federal Regulations, through court or administrative proceedings.
(b) That person is in repayment status or grant or benefit reduction status.
SEC. 3. Section 11004 of the Welfare and Institutions Code, as amended by Section 26 of Chapter 85 of the Statutes of 2021, is amended to read:11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(2) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(3) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) This section shall become inoperative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, as added by the act that added this subdivision, whichever date is later, and is repealed on January 1 of the following year.
SEC. 3. Section 11004 of the Welfare and Institutions Code, as amended by Section 26 of Chapter 85 of the Statutes of 2021, is amended to read:
### SEC. 3.
11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(2) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(3) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) This section shall become inoperative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, as added by the act that added this subdivision, whichever date is later, and is repealed on January 1 of the following year.
11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(2) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(3) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) This section shall become inoperative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, as added by the act that added this subdivision, whichever date is later, and is repealed on January 1 of the following year.
11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(2) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(3) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) This section shall become inoperative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, as added by the act that added this subdivision, whichever date is later, and is repealed on January 1 of the following year.
11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.
(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.
(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.
(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.
(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.
(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.
(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination.
(e)
(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.
(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.
(g) (1) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.
(2) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.
(3) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.
(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.
(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.
(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.
(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:
(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.
(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.
(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.
(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.
(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.
(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.
(m) This section shall become inoperative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, as added by the act that added this subdivision, whichever date is later, and is repealed on January 1 of the following year.
SEC. 4. Section 11004 of the Welfare and Institutions Code, as added by Section 27 of Chapter 85 of the Statutes of 2021, is amended to read:11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made, then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) (A) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(B) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(2) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(3) (A) Except in cases involving overpayments due to fraud, where there has been a conviction of fraud, a county shall only establish an overpayment if the overpayment occurred within 24 months prior to the date that the county discovered the overpayment.(B) A county shall not collect any portion of a nonfraudulent overpayment or take any other action related to the overpayment that occurred more than 24 months prior to the date the county discovered an overpayment.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instruction that shall have the same force and effect as regulations until regulations are adopted.(n) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(o) This section shall become operative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later, except as otherwise specified in paragraph (2) of subdivision (i).
SEC. 4. Section 11004 of the Welfare and Institutions Code, as added by Section 27 of Chapter 85 of the Statutes of 2021, is amended to read:
### SEC. 4.
11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made, then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) (A) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(B) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(2) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(3) (A) Except in cases involving overpayments due to fraud, where there has been a conviction of fraud, a county shall only establish an overpayment if the overpayment occurred within 24 months prior to the date that the county discovered the overpayment.(B) A county shall not collect any portion of a nonfraudulent overpayment or take any other action related to the overpayment that occurred more than 24 months prior to the date the county discovered an overpayment.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instruction that shall have the same force and effect as regulations until regulations are adopted.(n) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(o) This section shall become operative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later, except as otherwise specified in paragraph (2) of subdivision (i).
11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made, then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) (A) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(B) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(2) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(3) (A) Except in cases involving overpayments due to fraud, where there has been a conviction of fraud, a county shall only establish an overpayment if the overpayment occurred within 24 months prior to the date that the county discovered the overpayment.(B) A county shall not collect any portion of a nonfraudulent overpayment or take any other action related to the overpayment that occurred more than 24 months prior to the date the county discovered an overpayment.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instruction that shall have the same force and effect as regulations until regulations are adopted.(n) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(o) This section shall become operative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later, except as otherwise specified in paragraph (2) of subdivision (i).
11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made, then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination. (e)(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.(g) (1) (A) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.(B) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.(2) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.(3) (A) Except in cases involving overpayments due to fraud, where there has been a conviction of fraud, a county shall only establish an overpayment if the overpayment occurred within 24 months prior to the date that the county discovered the overpayment.(B) A county shall not collect any portion of a nonfraudulent overpayment or take any other action related to the overpayment that occurred more than 24 months prior to the date the county discovered an overpayment.(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.(m) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instruction that shall have the same force and effect as regulations until regulations are adopted.(n) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(o) This section shall become operative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later, except as otherwise specified in paragraph (2) of subdivision (i).
11004. The provisions of this code relative to public social services for which state grants-in-aid are made to the counties shall be administered fairly to the end that all persons who are eligible and apply for those public social services shall receive the assistance to which they are entitled promptly, with due consideration for the needs of applicants and the safeguarding of public funds.
(a) Any applicant for, or recipient or payee of, those public social services shall be informed as to the provisions of eligibility and the responsibility to report facts material to a correct determination of eligibility and grant.
(b) Any applicant for, or recipient or payee of, those public social services shall be responsible for reporting accurately and completely within the applicants, recipients, or payees competence those facts required pursuant to subdivision (a) and to promptly report any changes in those facts.
(c) Current (1) Current and future grants payable to an assistance unit may be reduced because of prior overpayments. In cases in which the overpayment was caused by agency error, grant payments shall be reduced by 5 percent of the maximum aid payment of the assistance unit. Grant payments to be adjusted because of prior overpayments because of any other reason shall be reduced by 10 percent of the maximum aid payments for the assistance unit. A recipient may have an overpayment adjustment in excess of the amounts allowable under this section if the recipient requests it.
(2) A person or household for whom their grant has or may be reduced pursuant to this subdivision shall only be subject to administrative remedies available for responding to an overpayment and no other actions shall be taken.
(d) A determination of ineligibility shall not be made retrospectively so as to result in an assessment of an overpayment when there is a failure on the part of an applicant or recipient to perform an act constituting a condition of eligibility, if the failure is caused by an error made by a state agency or a county welfare department, human services agency, and if the amount of the grant received by the applicant or recipient would not have been different had the act been performed.
(e) (1) Prior to advising the recipient pursuant to paragraph (2) and before effectuating a reduction of current grants to recover past overpayments, the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid under Section 10503 to identify any errors in determining the overpayment. During this review, if it is determined that an overpayment was not made, then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination.
(e)
(2) Prior to effectuating any reduction of current grants to recover past overpayments, the recipient shall be advised of the proposed reduction and of the recipients entitlement to a hearing on the propriety of the reduction.
(f) If the department determines after a hearing that an overpayment has occurred, the county providing the public social services shall seek to recover the overpayment in accordance with subdivision (c), including any amount paid while the hearing process was pending. That adjustment shall be permitted concurrently with any suit for restitution, and recovery of overpayment by adjustment shall reduce by the amount of such recovery the extent of liability for restitution.
(g) (1) (A) If the individual responsible for an overpayment is no longer receiving aid under Chapter 2 (commencing with Section 11200), recovery of overpayments received under that chapter shall not be attempted when the outstanding overpayments are less than two hundred fifty dollars ($250). When an overpayment collection is attempted, reasonable cost-effective efforts at collection shall be implemented. Reasonable efforts shall include notification of the amount of the overpayment and that repayment is required. The department shall define reasonable cost-effective collection methods. In cases involving fraud, every effort shall be made to collect the overpayments regardless of the amount.
(B) The department may establish a threshold higher than two hundred fifty dollars ($250) if it determines that a higher threshold is more cost effective, but the department shall not set a lower threshold than that amount.
(2) Notwithstanding subdivision (c), a county shall discharge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence, as those terms are defined by the department.
(3) (A) Except in cases involving overpayments due to fraud, where there has been a conviction of fraud, a county shall only establish an overpayment if the overpayment occurred within 24 months prior to the date that the county discovered the overpayment.
(B) A county shall not collect any portion of a nonfraudulent overpayment or take any other action related to the overpayment that occurred more than 24 months prior to the date the county discovered an overpayment.
(h) If the individual responsible for the overpayment to the assistance unit becomes a member of another assistance unit, recovery of overpayments shall be made against the individual or the individuals present assistance unit, or both.
(i) (1) If an overpayment has been made to an assistance unit that is no longer receiving public social services, recovery shall be made by appropriate action under state law.
(2) This paragraph shall be operative when the Statewide Automated Welfare System (SAWS) can automate its provisions. Except in cases involving overpayments due to fraud or an investigation into suspected fraud, if the individual responsible for the overpayment has not received aid under Chapter 2 (commencing with Section 11200) for 36 consecutive months or longer, the county shall deem an overpayment uncollectible and discharge, in accordance with existing discharge procedures, an overpayment received under that chapter.
(j) A (1) A civil or criminal action shall not be commenced against any person based on alleged unlawful application for or receipt of public social services if the case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment, has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851. either of the following apply:
(A) The case record, or any consumer credit report used in the civil or criminal case of that person for the purpose of determining that the overpayment has not been made available to that person or has been destroyed after the expiration of the three-year retention period pursuant to Section 10851.
(B) The recipients case file was reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance and it was determined, during this review, that an overissuance was not made.
(2) An overpayment determined to be an administrative error shall only be collected administratively by the county.
(k) (1) When an underpayment or denial of public social services occurs and, as a result, the applicant or recipient does not receive the amount to which the applicant or recipient is entitled, the county shall provide public social services equal to the full amount of the underpayment unless prohibited by federal law. In cases that have both an underpayment and an overpayment, the underpayment shall be offset against the overpayment prior to correcting any remaining underpayment.
(2) Any corrective payments made pursuant to this subdivision shall be disregarded in determining the income of the family and shall be disregarded in determining the resources of the family in the month the corrective payment is made and in the following month.
(l) This subdivision is applicable only to applicants, recipients, and payees under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9. Any suits to recover overpayments described in subdivision (f) shall be brought on behalf of the county by the county counsel unless the board of supervisors delegates that duty to the district attorney by ordinance or resolution.
(m) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instruction that shall have the same force and effect as regulations until regulations are adopted.
(n) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.
(o) This section shall become operative on July 1, 2022, or on the date the department notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later, except as otherwise specified in paragraph (2) of subdivision (i).
SEC. 5. Section 18927.1 of the Welfare and Institutions Code is amended to read:18927.1. (a) A (1) A county shall establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error, as defined by subdivision (b) of Section 273.18 of Title 7 of the Code of Federal Regulations, or administrative error for which 24 months or fewer have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred. A(2) A county shall not establish a claim to recover an overissuance due to inadvertent household error or administrative error for which more than 24 months have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred.(3) Prior to establishing a claim to recover past overissuance pursuant to paragraph (1), the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance. During this review, if it is determined that an overissuance was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination.(b) A claim established pursuant to this section shall equal the total amount of overissuance during the 24 months immediately preceding the date the overissuance due to the inadvertent household error or administrative error was discovered. A county shall not collect any portion of an overissuance that occurred more than 24 months before the date the county discovered the overissuance.(c) (1) A claim established pursuant to this section shall only be pursued through the applicable administrative process provided by federal law or pursuant to the requirements under Section 18927.(2) No other action related to the claim to recover an overissuance shall be taken once the process established under paragraph (1) has been initiated. (c)(d) This section shall become operative on July 1, 2022, or upon the departments notification to the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later.(d)(e) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instructions, which shall have the same force and effect as regulations, until regulations are adopted.(e)(f) (1) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(2) The department may adopt emergency regulations to implement the changes made to this section by the act that added this paragraph.
SEC. 5. Section 18927.1 of the Welfare and Institutions Code is amended to read:
### SEC. 5.
18927.1. (a) A (1) A county shall establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error, as defined by subdivision (b) of Section 273.18 of Title 7 of the Code of Federal Regulations, or administrative error for which 24 months or fewer have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred. A(2) A county shall not establish a claim to recover an overissuance due to inadvertent household error or administrative error for which more than 24 months have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred.(3) Prior to establishing a claim to recover past overissuance pursuant to paragraph (1), the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance. During this review, if it is determined that an overissuance was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination.(b) A claim established pursuant to this section shall equal the total amount of overissuance during the 24 months immediately preceding the date the overissuance due to the inadvertent household error or administrative error was discovered. A county shall not collect any portion of an overissuance that occurred more than 24 months before the date the county discovered the overissuance.(c) (1) A claim established pursuant to this section shall only be pursued through the applicable administrative process provided by federal law or pursuant to the requirements under Section 18927.(2) No other action related to the claim to recover an overissuance shall be taken once the process established under paragraph (1) has been initiated. (c)(d) This section shall become operative on July 1, 2022, or upon the departments notification to the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later.(d)(e) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instructions, which shall have the same force and effect as regulations, until regulations are adopted.(e)(f) (1) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(2) The department may adopt emergency regulations to implement the changes made to this section by the act that added this paragraph.
18927.1. (a) A (1) A county shall establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error, as defined by subdivision (b) of Section 273.18 of Title 7 of the Code of Federal Regulations, or administrative error for which 24 months or fewer have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred. A(2) A county shall not establish a claim to recover an overissuance due to inadvertent household error or administrative error for which more than 24 months have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred.(3) Prior to establishing a claim to recover past overissuance pursuant to paragraph (1), the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance. During this review, if it is determined that an overissuance was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination.(b) A claim established pursuant to this section shall equal the total amount of overissuance during the 24 months immediately preceding the date the overissuance due to the inadvertent household error or administrative error was discovered. A county shall not collect any portion of an overissuance that occurred more than 24 months before the date the county discovered the overissuance.(c) (1) A claim established pursuant to this section shall only be pursued through the applicable administrative process provided by federal law or pursuant to the requirements under Section 18927.(2) No other action related to the claim to recover an overissuance shall be taken once the process established under paragraph (1) has been initiated. (c)(d) This section shall become operative on July 1, 2022, or upon the departments notification to the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later.(d)(e) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instructions, which shall have the same force and effect as regulations, until regulations are adopted.(e)(f) (1) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(2) The department may adopt emergency regulations to implement the changes made to this section by the act that added this paragraph.
18927.1. (a) A (1) A county shall establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error, as defined by subdivision (b) of Section 273.18 of Title 7 of the Code of Federal Regulations, or administrative error for which 24 months or fewer have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred. A(2) A county shall not establish a claim to recover an overissuance due to inadvertent household error or administrative error for which more than 24 months have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred.(3) Prior to establishing a claim to recover past overissuance pursuant to paragraph (1), the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance. During this review, if it is determined that an overissuance was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination.(b) A claim established pursuant to this section shall equal the total amount of overissuance during the 24 months immediately preceding the date the overissuance due to the inadvertent household error or administrative error was discovered. A county shall not collect any portion of an overissuance that occurred more than 24 months before the date the county discovered the overissuance.(c) (1) A claim established pursuant to this section shall only be pursued through the applicable administrative process provided by federal law or pursuant to the requirements under Section 18927.(2) No other action related to the claim to recover an overissuance shall be taken once the process established under paragraph (1) has been initiated. (c)(d) This section shall become operative on July 1, 2022, or upon the departments notification to the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later.(d)(e) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instructions, which shall have the same force and effect as regulations, until regulations are adopted.(e)(f) (1) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.(2) The department may adopt emergency regulations to implement the changes made to this section by the act that added this paragraph.
18927.1. (a) A (1) A county shall establish a claim to recover an overissuance of CalFresh benefits due to inadvertent household error, as defined by subdivision (b) of Section 273.18 of Title 7 of the Code of Federal Regulations, or administrative error for which 24 months or fewer have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred. A
(2) A county shall not establish a claim to recover an overissuance due to inadvertent household error or administrative error for which more than 24 months have elapsed between the month the overissuance occurred and the month the county welfare department human services agency determined the overissuance occurred.
(3) Prior to establishing a claim to recover past overissuance pursuant to paragraph (1), the recipients case file shall be reviewed by a caseworker qualified to make a determination of aid pursuant to Section 10503 to identify any errors in determining the overissuance. During this review, if it is determined that an overissuance was not made then subsequent recovery efforts shall not be pursued. The review may include a consultation with the recipient or their authorized representative if necessary to correct an error in the overpayment determination.
(b) A claim established pursuant to this section shall equal the total amount of overissuance during the 24 months immediately preceding the date the overissuance due to the inadvertent household error or administrative error was discovered. A county shall not collect any portion of an overissuance that occurred more than 24 months before the date the county discovered the overissuance.
(c) (1) A claim established pursuant to this section shall only be pursued through the applicable administrative process provided by federal law or pursuant to the requirements under Section 18927.
(2) No other action related to the claim to recover an overissuance shall be taken once the process established under paragraph (1) has been initiated.
(c)
(d) This section shall become operative on July 1, 2022, or upon the departments notification to the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement this section, whichever date is later.
(d)
(e) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through all-county letters or similar instructions, which shall have the same force and effect as regulations, until regulations are adopted.
(e)
(f) (1) The department shall adopt emergency regulations implementing this section no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, any emergency regulation previously adopted pursuant to this section. The initial adoption of regulations pursuant to this section and one readoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State, and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.
(2) The department may adopt emergency regulations to implement the changes made to this section by the act that added this paragraph.
SEC. 6. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 6. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 6. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
### SEC. 6.