BILL NUMBER: SB 1391 AMENDED
BILL TEXT
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 fraud, 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 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
in accordance with subdivisions (c) and (d) to recover a prior
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 , or fraud .
(b) Current and future CalFresh benefits shall be
reduced in accordance with subdivisions (c) and (d) to recover a
prior 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,
no a CalFresh overissuance caused by
administrative error shall not be established, or
and collection shall not be
attempted, when 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 when 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) Where 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 issuances
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.
(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 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.