BILL NUMBER: AB 1613 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 21, 2014
INTRODUCED BY Assembly Member Stone
FEBRUARY 6, 2014
An act to amend Section 11004 of the Welfare and Institutions
Code, relating to CalWORKs.
LEGISLATIVE COUNSEL'S DIGEST
AB 1613, as amended, Stone. CalWORKs: benefits overpayment.
Existing law establishes various social services programs that
provide cash assistance and other benefits to qualified low-income
families and individuals, including the California Work Opportunity
and Responsibility to Kids (CalWORKs) program. Existing law requires
applicants for, and recipients of, public social services
programs for which state grants-in-aid are
made to counties to accurately report facts material to
eligibility and grant payment determinations. Existing law authorizes
current and future grants payable to an assistance unit to be
reduced because of prior overpayments, and requires grant payments to
be reduced by 5% of the maximum aid payment when the overpayment was
caused by agency error. Existing law prohibits a county from
attempting, if an individual is no longer receiving cash
aid, CalWORKs benefits, to recover overpayments
when the outstanding overpayments are less than $35, and requires
reasonable cost-effective efforts at collection to be implemented if
the overpayment amounts owed are $35 or more. Under existing law,
however, a county is prohibited from establishing a CalWORKs
overpayment based on any differences between the amount of income the
county prospectively determined for the recipient and the income the
recipient actually received, if the recipient's report was complete
and accurate. Existing law provides that no civil or criminal
action may be commenced against a person based on alleged unlawful
application for or receipt of public social services if the case
record of the person has been destroyed after the required retention
period.
This bill would specify that these overpayment provisions apply
only to grants of CalWORKs cash aid. The bill would instead require
grant payments to be reduced by 5% of the monthly payment in cases
where the overpayment was caused by agency error and the amount to be
collected is greater than an established minimum cost-effectiveness
threshold or if the recipient would not be able to claim an equitable
estoppel defense. The bill would prohibit the attempt to recover
overpayment if the costs of collecting the outstanding overpayments
are expected to exceed the amount to be recovered by the county. The
bill would require reasonable cost-effective efforts to be
implemented in all cases of recovering overpayments and authorizes
the State Department of Social Services to establish an annual
minimum cost-effectiveness threshold for collecting overpayments of
cash aid. By increasing the duties of county agencies, this bill
would create a state-mandated local program.
This bill would authorize the State Department of Social Services
to establish a minimum cost-effectiveness threshold, as specified,
for collecting an overpayment established under CalWORKs that is
greater than $125, and would require counties to implement the new
threshold if one is established by the department pursuant to these
provisions. The bill would prohibit a county from establishing an
overpayment if the costs of collecting the outstanding payments are
expected to exceed the average amounts to be recovered by the county,
or the amount of the overpayment is less than $125, or the minimum
cost-effectiveness threshold, whichever is greater. The bill would
prohibit a county from attempting to recover CalWORKs overpayments if
an individual is no longer receiving CalWORKs benefits and the
outstanding overpayments are less than $125, or the minimum
cost-effectiveness threshold, whichever is greater. The bill would
also prohibit a civil, administrative, or criminal action against a
person based on alleged unlawful or erroneous application for or
receipt of public social services if the case record of the person
has been destroyed after the required retention period. By increasing
the duties of county agencies, this bill would create a
state-mandated local program.
Existing law continuously appropriates moneys from the General
Fund to defray a portion of county costs under the CalWORKs program.
This bill would instead provide that the continuous appropriation
would not be made for purposes of implementing the bill.
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. Section 11004 of the Welfare
and Institutions Code is amended to read:
11004. (a) 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 such 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)
(b) Any applicant for, or recipient or payee of, such
public social services shall be informed as to the provisions of
eligibility and his or her responsibility for reporting facts
material to a correct determination of eligibility and grant.
(b)
( c) Any applicant for, or recipient or
payee of, such public social services shall be responsible for
reporting accurately and completely within his or her competence
those facts required of him or her pursuant to subdivision
(a) (b) and to report promptly any changes in
those facts.
(c)
( d) (1) Current and
future grants payable to an assistance unit may be reduced because of
prior overpayments. In cases where 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 county shall not establish an overpayment if at least one of
the following conditions is met:
(A) The costs of collecting the outstanding overpayments are
expected to exceed the average amounts to be recovered by the county.
(B) The amount of the overpayment is less than one hundred
twenty-five dollars ($125) or the minimum cost-effectiveness
threshold established by the department pursuant to subdivision (n),
whichever is greater.
(d)
( e) No determination of ineligibility shall
be made retrospectively so as to result in an assessment of an
overpayment in circumstances where 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, and if the amount of the grant
received by the applicant or recipient would not have been different
had the act been performed.
(e)
( f) Prior to effectuating any reduction of
current grants to recover past overpayments, the recipient shall be
advised of the proposed reduction and of his or her entitlement to a
hearing on the propriety of the reduction.
(f)
( g) If the department determines after a
hearing that an overpayment has occurred, the county providing the
public social services shall seek to recover in accordance with
subdivision (c) (d) the full amount of
the overpayment to the assistance unit, including any amount paid
while the hearing process was pending. Such
This adjustment shall be permitted concurrently with any suit
for restitution, and recovery of overpayment by adjustment shall
reduce by the amount of such the
recovery the extent of liability for restitution.
(g)
( h) If the individual is no longer
receiving aid under Chapter 2 (commencing with Section 11200) ,
recovery of overpayments received under that chapter shall not
be attempted where the outstanding overpayments are less than
thirty-five dollars ($35). Where one hundred
twenty-five dollars ($125) or the minimum cost-effectiveness
threshold established by the department pursuant to subdivision (n),
whichever is greater. If the overpayment amounts owed
are thirty-five dollars ($35) or more, exceed one
hundred twenty-five dollars ($125) or the minimum cost-effectiveness
threshold established by the department pursuant to subdivision (
n), if that amount is greater, 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.
(h)
( i) If the individual responsible for the
overpayment to the assistance unit is no longer eligible for public
social services or if he or she becomes a member of another
assistance unit, recoupment of overpayments shall be made against the
individual or his or her present assistance unit, or both.
(i)
( j) Where an overpayment has been made to
an assistance unit which that is no
longer receiving public social services, recovery shall be made by
appropriate action under state law against the income or resources of
the individual responsible for the overpayment or against the
family.
(j)
( k) No civil or ,
administrative, or criminal action may be commenced against any
person based on alleged unlawful or erroneous application
for or receipt of public social services, where
if the case record of such that
person has been destroyed after the expiration of the
four-year three-year retention period pursuant
to Section 10851.
(k)
( l) (1) When an
underpayment or denial of public social service occurs and as a
result the applicant or recipient does not receive the amount to
which he or she 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.
Any
(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 )
(m) This subdivision shall be 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)
(g) shall be brought on behalf of the county by
the county counsel unless the board of supervisors delegates such
duty to the district attorney by ordinance or resolution.
(n) The department may establish a minimum cost-effectiveness
threshold consistent with Part 225 of Title 2 of the Code of Federal
Regulations for collecting an overpayment established under Chapter 2
(commencing with Section 11200) that is greater than one hundred
twenty-five dollars ($125). If the department establishes such a
threshold, each county shall implement the new threshold.
SEC. 2. No appropriation pursuant to Section 15200
of the Welfare and Institutions Code shall be made for purposes of
this act.
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.
SECTION 1. Section 11004 of the Welfare and
Institutions Code is amended to read:
11004. (a) The provisions of this code relative to cash aid
provided pursuant to Chapter 2 (commencing with Section 11200) shall
be administered fairly to the end that all persons who are eligible
and apply for cash aid shall receive the assistance to which they are
entitled promptly, with due consideration for the needs of
applicants and the safeguarding of public funds.
(b) An applicant for, or recipient or payee of, cash aid provided
pursuant to Chapter 2 (commencing with Section 11200) shall be
informed as to the provisions of eligibility and his or her
responsibility for reporting facts material to a correct
determination of eligibility and grant.
(c) An applicant for, or recipient or payee of, cash aid provided
pursuant to Chapter 2 (commencing with Section 11200) shall be
responsible for reporting accurately and completely within his or her
competence those facts required of him or her pursuant to
subdivision (b) and to report promptly any changes in those facts.
(d) Current and future grants payable to an assistance unit may be
reduced because of prior overpayments, unless the agency is
prohibited from requiring the collection of, or establishing, the
overpayment pursuant to subdivision (h) of this section or
subdivision (b) of Section 11004.1. In cases where the overpayment
was caused by agency error, and the amount to be recovered is greater
than the minimum cost-effectiveness threshold established pursuant
to subdivision (h) or if the recipient would not be able to claim an
equitable estoppel defense, grant payments shall be reduced by 5
percent of the monthly payment of the assistance unit. Grant payments
to be adjusted because of prior overpayments for 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.
(e) A determination of ineligibility shall not be made
retrospectively so as to result in an assessment of an overpayment in
circumstances 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, and if the amount of the grant received by
the applicant or recipient would not have been different had the act
been performed.
(f) Prior to effectuating any reduction of current grants to
recover past overpayments, the recipient shall be advised of the
proposed reduction and his or her entitlement to a hearing on the
propriety of the reduction.
(g) If the department determines after a hearing that an
overpayment has occurred, the county providing the cash aid pursuant
to Chapter 2 (commencing with Section 11200) shall seek to recover in
accordance with subdivision (d) the full amount of the overpayment
to the assistance unit, including any amount paid while the hearing
process was pending. This adjustment shall be permitted concurrently
with any suit for restitution, and recovery of overpayment by
adjustment shall reduce by the amount of the recovery the extent of
liability for restitution.
(h) Regardless of whether the individual is currently receiving
aid under Chapter 2 (commencing with Section 11200), recovery of
overpayments received under that chapter shall not be attempted if
the cost of collecting the outstanding overpayments are expected to
exceed the amount to be recovered by the county, unless otherwise
required in this section. In all cases, reasonable cost-effective
efforts at collection shall be implemented. The department shall
define reasonable cost-effective collection methods, and may
establish an annual minimum cost-effectiveness threshold for
collecting overpayments of cash aid. In cases involving fraud, every
effort shall be made to collect the overpayments regardless of the
amount.
(i) If the individual responsible for the overpayment to the
assistance unit is no longer eligible for cash aid provided pursuant
to Chapter 2 (commencing with Section 11200), or if he or she becomes
a member of another assistance unit, recoupment of overpayments
shall be made against the individual or his or her present assistance
unit, or both.
(j) When an overpayment has been made to an assistance unit that
is no longer receiving cash aid provided pursuant to Chapter 2
(commencing with Section 11200), recovery shall be made by
appropriate action under state law against the income or resources of
the individual responsible for the overpayment or against the
family.
(k) No civil or criminal action may be commenced against any
person based on alleged unlawful application for or receipt of cash
aid provided pursuant to Chapter 2 (commencing with Section 11200),
if the case record of that person has been destroyed after the
expiration of the three-year retention period specified in Section
10851.
(l) (1) When an underpayment or denial of cash aid provided
pursuant to Chapter 2 (commencing with Section 11200) occurs and as a
result the applicant or recipient does not receive the amount to
which he or she is entitled, the county shall provide cash aid 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.
(m) This subdivision shall be applicable only to applicants,
recipients and payees under Chapter 2 (commencing with Section
11200). Any suits to recover overpayments described in subdivision
(g) shall be brought on behalf of the county by the county counsel
unless the board of supervisors delegates this duty to the district
attorney by ordinance or resolution.
SEC. 2. No appropriation pursuant to Section
15200 of the Welfare and Institutions Code shall be made for purposes
of this act.
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.