DPSS ePolicy

Revision of existing policy and/or form(s).

Changes are shown highlighted in gray throughout the document.

An Administrative Disqualification Hearing (ADH) at the state level shall be initiated when Los Angeles (LA) County Department of Public Social Services (DPSS) informs the Administrative Adjudications Division (AAD) of the California Department of Social Services (CDSS) that clear and convincing documentary evidence in DPSS' possession indicates that an administrative disqualification is appropriate. 

DPSS shall initiate a referral action for an ADH through CDSS in accordance with CDSS' Manual of Policies and Procedures (MPP) section 22-200, for cases under the following circumstances:

1. The prosecuting authority has determined that the facts do not warrant prosecution; or
2. The case was previously referred for prosecution and declined by the District Attorney (DA).

These cases shall be returned to DPSS, and DPSS shall initiate a referral action for an ADH through the CDSS in accordance with CDSS' MPP section 22-200.

N/A

Administrative Disqualification Hearing (ADH)

An ADH refers to an impartial review by an Administrative Law Judge (ALJ) of an individual's action involving an alleged Intentional Program Violation (IPV) that could result in the individual's disqualification from either or both the CalFresh and/or CalWORKs programs.

ADH Disqualification Start Period

The ADH disqualification period must begin with the first month which follows the date the household member receives written notification of the disqualification, or within five (5) calendar days from the postmarked date on the notice.

Administrative Law Judge (ALJ)

A person designated by the CDSS State Hearings Division (SHD) to conduct State hearings and Administrative Disqualification Hearings. 

Anti-Fraud Locator Electronic Benefits Transfer (EBT) Retail Transactions (ALERT)

Cases forwarded to counties of potential recipient trafficking activity stemming from retailer EBT terminals disqualified from the program.

Dismissed Without Prejudice

The dismissal shall be without prejudice in that the County may be permitted to file a new hearing request raising the identical issue provided that the request is filed timely pursuant to MPP section 22-060.

EBT Trafficking

The exchange of, or the intent to exchange, CalFresh benefits for cash or other considerations.

Excessive Card Replacement (ECR)

Cases where trafficking is suspected after four (4) card replacements by the client. Cases are not referred for investigation unless trafficking is suspected pursuant to 7 CFR 274.6(b)(6).

CalFresh (IPV)

A determination of having intentionally made a false or misleading statement, or misrepresented, concealed, or withheld facts; or committed any act which constitutes a violation of the CalFresh Program regulations, or any state statute relating to the use, presentation, transfer, acquisition, receipt or possession of CalFresh benefits. [§20-300.1].

CalWORKs (IPV)

A determination that an individual has intentionally made a false or misleading statement or misrepresented, concealed, or withheld facts; or committed any act intended to mislead, misrepresent, conceal, or withhold facts or propound a falsity; And committed these acts to establish or maintain CalWORKs eligibility, or to increase or prevent a reduction in the amount of the CalWORKs grant. [§20-351(i)].

IPV Sanction

A penalty imposed against persons found to have committed an IPV.

IPV State Online System

A repository for California's 58 counties to access CalFresh and CalWORKs disqualification records created in the state and a means of accessing national Supplement Nutrition Assistance Program (SNAP) disqualification records.

It facilitates county and state efforts to ensure CalFresh and CalWORKs benefits are granted to individuals not currently serving a disqualification period for committing an IPV within California or other states and territories.

Respondent

The individual accused of committing an IPV in the ADH process.

ADH Screening Criteria

ASH will verify that the criteria below are met for every referral received from the Welfare Fraud Prevention and Investigations (WFP&I) Section (Submitting ADH Referrals to the ADH Unit).

Items and Descriptions

Item 1

The respondent cannot be an undocumented non-citizen or a permanently disqualified drug felon.

Item 2

The CalWORKs Overpayment (OP) and/or CalFresh Overissuance (OI) must have occurred for at least two (2) consecutive months.

Item 3

The OP/OI may be, but is not limited to, unreported earned income, unreported unearned income, and unreported child support. 

Item 4

CalFresh-only cases must have a minimum OI of $250; there is no minimum for CalWORKs-only cases and for combined CalWORKs/CalFresh cases.

Item 5 

The respondent must have signed all necessary documents as outlined in the ADH Evidence Checklist. 

Item 6

WFP&I forwards the cases/investigations to ADH once sufficient evidence is obtained to proceed with an IPV, independent of the recovery accounts.

The OP/OI NOA must be language-compliant according to and in knowledge of the respondent's preferred language. 

Item 7

The case record must show clear intent that:

• The County did not possess information that could have avoided OP/OI.
  For example, the Employment Development Department (EDD) new hire hit must not have been ignored by the County.

For example, the EDD new hire, received via Income and Eligibility Verification System (IEVS) Abstract must have been addressed/processed timely.

• The respondent did not report to a Welfare-to-Work activity, Focus 360, etc. 
• There are no CalSAWS Journal entries indicating that the respondent voluntarily or informally reported information. 

Item 8

The respondent must indicate demonstrated knowledge of reporting responsibilities by signed documents, such as SAWS 1, SAWS 2 Plus, SAWS 2A SAR, CF 37, or DFA 285 (2 and 3). For online applications, the submitted Rights and Responsibilities printout can be used as the attachment to the Allegation.

• For example, for mandatory mid-period actions, the SAR 2 explained the Income Reporting Threshold (IRT) rule. If the income is under the IRT and within the reporting period, then the household is not mandated to report the change.  If the income is over the IRT, then the household should report the change within ten (10) calendar days. 

Item 9

Address Verification:

• The respondent is currently on aid or has left aid within the last six (6) months.
• Last known address verified by the United States Postal Service (USPS), LexisNexis, or forwarding address verified by USPS.
• Commercial service to locate the address for respondent verified by USPS.

N/A

CalFresh Program (MPP 20-300)

IPV Situation and Fraud Penalties

Persons found to have committed an IPV either through an ADH or by a court of appropriate jurisdiction:

• 1st Violation - 12 Months
• 2nd Violation - 24 Months
• 3rd Violation - Permanently

Persons found guilty of falsifying the identity of the place of residence in order to receive multiple CalFresh benefits simultaneously:

• 10 Years Sanction Period

Individuals guilty of trafficking CalFresh benefits of $500 or more, which applies only to ADH-EBT trafficking cases:

• 1st Violation - Permanently

CalWORKs (MPP 20-353)

IPV Situation – Fraud Penalties

Individuals found to have committed an IPV either through an ADH or by a court of appropriate jurisdiction.

Fraud Prior To 01/01/1998:

• 1st Violation - 6 Months
• 2nd Violation - 12 Months
• 3rd Violation - Permanently

Individuals found guilty of submitting more than one application of the same period and for the purpose of receiving more than one Grant of aid.

Fraud Prior To 01/01/1998:

• 1st Violation - 2 Years
• 2nd Violation - 4 Years
• 3rd Violation - Permanently

Individuals found guilty of submitting documentation for nonexistent children or showing ineligible children as eligible for aid.

Fraud Prior To 01/01/1998:

• 1st Violation - 2 Years
• 2nd Violation - 4 Years
• 3rd Violation - Permanently

Fraud On or After 01/01/1998:

• Permanently

Individuals found guilty of receiving cash benefits in excess of $10,000 through fraudulent means.

Fraud On or After 01/01/1998:

• Permanently

Individuals convicted of a felony in State or Federal court for receipt or attempted receipt of cash benefits in excess of $5,000 through fraudulent means.

Fraud On or After 01/01/1998:

• Permanently

Individuals who make false/misleading statements or misrepresent, conceal, withhold facts, or propound to falsify to establish/maintain the family's eligibility for aid or increase/prevent reduction in the amount of aid.

Fraud On or After 01/01/1998:

• Permanently

Individuals convicted of a felony in State or Federal court for receipt or attempted receipt of cash benefits in excess of $2,000 but less than $5,000 through fraudulent means.

Fraud On or After 01/01/1998:

• 5 Years Sanction Period

Individuals convicted of a felony in State or Federal court for receipt or attempted receipt of cash benefits by fraudulent means resulting in an overpayment of less than $2,000.

Fraud On or After 01/01/1998:

• 2 Years Sanction Period