Bill Text: CA AB1613 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: CalWORKs: benefits overpayment.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2014-08-14 - In committee: Held under submission. [AB1613 Detail]

Download: California-2013-AB1613-Amended.html

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BILL NUMBER: AB 1613	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 7, 2014
	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 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.   error
or 10% of the   maximum aid payment when the overpayment
was for any other reason.  Existing law prohibits a county from
attempting, if an individual is no longer receiving 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 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 require current and future grant
payments be reduced by 5% of the monthly payment when the overpayment
is because of agency error or 10% of the monthly payment when the
overpayment was for any other reason.  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.
   (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.
   (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 (b) and to report promptly any changes
in those facts.
   (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  
monthly  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
  monthly payment  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.
   (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.
   (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.
   (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 (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) 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 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 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.
   (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.
   (j) Where an overpayment has been made to an assistance unit 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.
   (k) No civil, administrative, or criminal action may be commenced
against any person based on alleged unlawful or erroneous application
for or receipt of public social services, if the case record of that
person has been destroyed after the expiration of the three-year
retention period pursuant to Section 10851.
   (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.
   (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 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.