Limits collection of CalWORKs overpayments

Existing federal law provides for allocation of federal funds through the federal Temporary Assistance for Needy Families (TANF) block grant program to eligible states. Existing law provides for the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which, through a combination of state and county funds and federal funds received through the TANF program, each county provides cash assistance and other benefits to qualified low-income families.

Existing law authorizes current and future grants payable to an assistance unit to be reduced due to prior overpayments. Existing law prohibits a county from attempting to recover payments when the outstanding overpayments are less than $35, if the individual is no longer receiving aid under the CalWORKs program.

This bill would instead set the limit of the outstanding overpayments at $250, or a higher threshold established by the State Department of Social Services, if the department determines that a higher threshold is more cost effective. The bill would prohibit the department from establishing a lower threshold. The bill would require a county to expunge an overpayment if the county determines that the overpayment has been caused by a major systemic error or negligence. The bill would make conforming changes to related provisions.

Existing law requires, if an overpayment has been made to an assistance unit that is no longer receiving public social services, that the recovery be made by an appropriate action under state law against the income or resources of the individual responsible for the overpayment or against the family.

This bill would instead provide that, if 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 and, except in cases involving an investigation into suspected fraud, deem an overpayment uncollectible and expunge that overpayment if the individual responsible for the overpayment has not received aid under CalWORKs for 36 consecutive months or longer.

Existing law prohibits the commencement of a civil or criminal action 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 also prohibit the commencement of the action if the case record or any consumer credit report used in the case has not been made available or has been destroyed, as specified.

This bill would authorize the State Department of Social Services to implement these provisions through an all-county letter or similar instruction until emergency regulations are adopted, and would require the department to adopt emergency regulations on or before January 1, 2021, and to adopt final regulations thereafter.

This bill would make its provisions operative on July 1, 2019.

By increasing the duties of county agencies, 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 the statutory provisions noted above.

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.