BILL NUMBER: SB 1391 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 23, 2012
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator Liu
FEBRUARY 24, 2012
An act to add Sections 18927 and 18927.1
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, inadvertent household error, or fraud, or when
otherwise required by federal law 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. 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 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 dollars 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
when in accordance with subdivisions (c) and
(d) to recover a prior overissuances are
overissuance caused by intentional program violation,
inadvertent household error, or fraud.
(b) Current and future benefits shall be reduced because
of in accordance with subdivisions (c) and (d) to
recover a prior overissuances
overissuance caused by administrative error ,
if required by federal law , or
when the amount of the overissuance exceeds the threshold
established in Section 18927.1 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 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) 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 greater ,
unless the recipient elects for the benefits to be reduced at a
higher rate.
(e) If an individual a household 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 (h) , whichever
is greater. Where the
(f) If a household is no longer receiving CalFresh benefits,
collection shall be attempted when 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 or fraud shall be collected as required by federal
law.
( g) Where 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 issuances. 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.
(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) 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. 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, if the overissuance is less
than one hundred twenty-five dollars ($125) or the amount established
in this section, whichever is greater.
(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. 4. 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.