BILL NUMBER: SB 1391 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 15, 2012
AMENDED IN SENATE MAY 25, 2012
AMENDED IN SENATE APRIL 23, 2012
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator Liu
FEBRUARY 24, 2012
An act to add Section 18927 to the Welfare and Institutions Code,
relating to CalFresh.
LEGISLATIVE COUNSEL'S DIGEST
SB 1391, as amended, Liu. CalFresh benefits: overissuance.
Existing federal law provides for the Supplemental Nutrition
Assistance Program (SNAP), known in California as CalFresh, under
which supplemental nutrition assistance benefits allocated to the
state by the federal government are distributed to eligible
individuals by each county. Existing federal law provides for the
collection of fraudulent and nonfraudulent overissuances of SNAP
benefits, and authorizes the United States Secretary of Agriculture
to delegate this power to the appropriate state agencies. Under
existing law, a county administering CalFresh, and operating an early
fraud detection and prevention program in accordance with existing
law, is required to make a referral for fraud investigation when
reasonable grounds for fraud exist, including when an overpayment or
overissuance of benefits, or both, may result from an applicant's
failure to report information pertinent to eligibility or benefits.
This bill would establish procedures, consistent with federal law,
for recovering CalFresh overissuances, including requiring benefits
to be reduced when an overissuance is caused by intentional program
violation or fraud, inadvertent household error, or when caused by
administrative error, under certain circumstances. This bill would
authorize the State Department of Social Services to establish a
minimum cost-effective threshold for collecting CalFresh
overissuances, as specified. The bill would prohibit collection of an
overissuance from being attempted, in connection with a household
that is no longer receiving CalFresh benefits, when the overissuance
is caused by administrative error and is less than $125, or a greater
threshold established by the state pursuant to a specified
provision, whichever is greater. This bill would require collection
of an overissuance to be attempted, in connection with a household
that is no longer receiving CalFresh benefits, when the overissuance
is caused by inadvertent household error and is $35 or more.
Because counties administer the CalFresh program, by requiring
that counties perform new duties, 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 these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares that CalFresh
shall be administered fairly, so that all applicants and recipients
receive the assistance to which they are entitled in a timely manner,
with due consideration for the needs of the applicants and
recipients.
(b) It is the intent of the Legislature to reduce the cost of
CalFresh administration through the establishment of a cost-effective
structure to address overpayments, and to protect the rights of all
applicants and recipients. It is further the intent of the
Legislature that nothing in this act shall overturn or otherwise
eliminate any existing right or protection to which an applicant or
recipient is entitled under existing state law or regulation.
SEC. 2. Section 18927 is added to the Welfare and Institutions
Code, to read:
18927. (a) Current and future CalFresh benefits shall be reduced
in accordance with subdivisions (c) and (d) to recover a
prior an overissuance caused by intentional
program violation, as defined in subdivision (c) of Section 273.16 of
Title 7 of the Code of Federal Regulations, or fraud, or inadvertent
household error.
(b) Current and future CalFresh benefits shall be reduced in
accordance with subdivisions (c) and (d) to recover a prior
an overissuance caused by administrative error
if required by federal law or if the overissuance exceeds one hundred
twenty-five dollars ($125) or the threshold established pursuant to
subdivision (h), whichever is greater.
(c) A household's CalFresh benefits shall not be reduced to
recover an overissuance as required or authorized by subdivision (a)
or (b) unless the household receives adequate and timely notice of
the overissuance, including, but not limited to, the budget worksheet
that includes the amount and calculation of the overissuance and the
reason for the overissuance.
(d) (1) In recovering an overissuance caused by administrative
error, a recipient household's monthly CalFresh benefits shall not be
reduced by more than 5 percent of the household's monthly CalFresh
benefits or ten dollars ($10), whichever is greater, unless the
recipient elects for the benefits to be reduced at a higher rate.
(2) In recovering an overissuance caused by inadvertent household
error, a recipient household's monthly CalFresh benefits shall not be
reduced by more than 10 percent of the household's monthly CalFresh
benefits or ten dollars ($10), whichever is greater.
(3) In recovering an overissuance caused by intentional program
violation, as defined in subdivision (c) of Section 273.16 of Title 7
of the Code of Federal Regulations, or fraud, a recipient household'
s monthly CalFresh benefits shall be reduced by 20 percent of the
household's monthly CalFresh benefit or twenty dollars ($20),
whichever is greater.
(e) If a household is no longer receiving CalFresh benefits, a
CalFresh overissuance caused by administrative error shall not be
established, and collection shall not be attempted, if the
overissuance is less than one hundred twenty-five dollars ($125) or
the threshold established pursuant to subdivision (h), whichever is
greater.
(f) If a household is no longer receiving CalFresh benefits,
collection shall be attempted if the overissuance is caused by
inadvertent household error and the overissuance is thirty-five
dollars ($35) or more. All overissuances caused by intentional
program violation, as defined in subdivision (c) of Section 273.16 of
Title 7 of the Code of Federal Regulations, or fraud shall be
collected as required by federal law.
(g) When an overissuance collection is attempted, reasonable
cost-effective methods of collection shall be implemented. The
department shall define reasonable cost-effective collection methods,
which shall include adequate and timely notice of the overissuance,
including, but not limited to, all of the following:
(1) The amount and calculation of, and reason for, the
overissuance.
(2) A statement of the monetary threshold described in this
subdivision.
(3) Information about how to appeal the overissuance.
(4) Instructions for timely commencement of repayment.
(5) Consequences of delinquent payment.
(h) The department may establish a minimum cost-effective
threshold for collecting CalFresh overissuances. If the department
determines that the minimum cost-effective threshold is greater than
one hundred twenty-five dollars ($125), this threshold shall be
included in the state's CalFresh claims
management plan submitted annually for federal approval.
(i) Nothing in this section shall prevent a county from writing
off or terminating an overissuance claim when it meets the provisions
of paragraph (8) of subdivision (e) of Section 273.18 of Title 7 of
the Code of Federal Regulations.
(j) Nothing in this section shall prevent a county or the state
from collecting all overissuances that are identified during a
quality control review, as required by Section 275.12 of Title 7 of
the Code of Federal Regulations.
(j)
(k) 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 this section through all-county
letters or similar instructions from the director no later than
January 1, 2013.
SEC. 3. 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.