BILL NUMBER: SB 1391 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Liu
FEBRUARY 24, 2012
An act to add Sections 18927 and 18927.1 to the Welfare and
Institutions Code, relating to CalFresh.
LEGISLATIVE COUNSEL'S DIGEST
SB 1391, as introduced, 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 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 for recovering CalFresh
overissuances, including requiring benefits to be reduced only when
an overissuance is caused by intentional program violation or fraud,
or when otherwise required by federal law. This bill would authorize
the State Department of Social Services to establish a minimum
cost-effective threshold for collecting CalFresh overissuances, as
specified. This bill would prohibit an overissuance caused by
administrative error from being established with respect to a
household receiving CalFresh benefits, except as specified. The bill
would prohibit collection of an overissuance from being attempted, in
connection with an individual who is no longer receiving CalFresh
benefits, when the overissuance is less than $125, or a greater
threshold established by the state pursuant to a specified provision,
whichever is greater.
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. Section 18927 is added to the Welfare and Institutions
Code, to read:
18927. (a) The Legislature finds and declares that CalFresh shall
be administered fairly, so that all applicants receive the
assistance to which they are entitled in a timely manner, with due
consideration for the needs of applicants.
(b) Current and future benefits shall be reduced only when prior
overissuances are caused by intentional program violation or fraud.
(c) Current and future benefits may be reduced because of prior
overissuances caused by administrative error, if required by federal
law.
(d) A household's benefits shall not be reduced to recover an
overissuance as required or authorized by subdivision (b) or (c)
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.
(e) In recovering an overissuance, a recipient household's monthly
benefits shall not be reduced by more than 5 percent or ten dollars
($10), whichever is less, unless the recipient elects for the
benefits to be reduced at a higher rate.
(f) If an individual is no longer receiving CalFresh benefits, no
CalFresh overissuance caused by administrative error shall be
established, or collection attempted, when the overissuance is less
than one hundred twenty-five dollars ($125) or the threshold
established pursuant to subdivision (a) of Section 18927.1, whichever
is greater. Where the 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.
SEC. 2. Section 18927.1 is added to the Welfare and Institutions
Code, to read:
18927.1. (a) 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 plan submitted
annually for federal approval.
(b) Except when required by federal law, no CalFresh overissuance
caused by administrative error shall be established or collected from
a household that is receiving benefits.
(c) 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 an all-county
letter or similar instructions from the director no later than
January 1, 2013.
SEC. 3. No appropriation pursuant to Section 15200 of the Welfare
and Institutions Code shall be made for purposes of this act.
SEC. 4. 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.