DPSS ePolicy

To convert existing policy to new writing style only – No concept changes

An Intentional Program Violation (IPV) is determined by a State or federal court, or pursuant to an Administrative Disqualification Hearing (ADH), including any determination made on the basis of a plea of guilty or nolo contendere that an applicant/participant 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. 

Note: Penalties are not subject to review or revision.

Effective January 1, 1998, California Assembly Bill 1542 (Chapter 270, Statutes of 1997) implemented the CalWORKs Program and created penalties for individuals who fail to cooperate with certain program requirements. As of July 1, 1998, these penalties are used to disqualify individuals who are convicted of an IPV regardless of when the IPV was committed.

Nolo Contendere

A plea by which a defendant in a criminal prosecution accepts conviction as though a guilty plea had been entered but does not admit guilt.    

Administrative Disqualification Hearing 

A formal, impartial review by a Hearing Judge to determine if an individual committed an IPV.

IPV penalty period

A period in which an individual cannot receive CalWORKs but is otherwise eligible. If the individual goes off aid prior to imposing or during the IPV penalty period, the IPV penalty is suspended until the individual is determined eligible for CalWORKs by joining another AU or reapplying at a later date.  

Convicted Individuals

Individuals who are convicted of an IPV regardless of when the IPV was committed will:

• Remain in the Assistance Unit (AU); 
• Have all of their income counted;
• Not have their needs considered in the Maximum Aid Payment when determining the AU’s CalWORKs eligibility and grant amount;
• Continue to receive cash-based Medi-Cal;
• Have the time on aid continue to count towards the CalWORKs 60-Month Time Clock; and 
• Continue to be required to participate in the GAIN Program. 

Note: For CalFresh policy, please refer to Administrative Release 63-805 – Intentional Program Violation

Penalties

The following penalties apply to individuals who are found to have committed a fraudulent act on or after January 1, 1998, by a State, or federal court, including any determination made on the basis of a plea of guilty or nolo contendere. The finding that an individual committed a fraudulent act may also be made at an ADH. 

Note: Penalties are not subject to review or revision.

• Six-Month Penalty
  • A six-month penalty is applied upon the first occasion of the applicant/participant establishing or maintaining the family’s eligibility for aid, or increasing and/or preventing a reduction in the amount of that aid by:
    • Making false or misleading statements or misrepresenting, concealing, or withholding facts; or
    • Committing any act intended to mislead, misrepresent, conceal, or withhold facts or propound a falsity.
• Twelve-Month Penalty
  • A twelve-month penalty is applied upon the second occasion of the applicant/participant establishing or maintaining the family’s eligibility for aid or increasing, and/or preventing a reduction in, the amount of that aid by: 
    • Making false or misleading statements or misrepresenting, concealing, or withholding facts; or
    • Committing any act intended to mislead, misrepresent, conceal, or withhold facts or propound a falsity. 
• Two-Year Penalty
  • A two-year penalty is applied to participants convicted of a felony in State or federal court, including any determination made on the basis of a plea of guilty, or nolo contendere that does not meet the permanent penalty criteria and:
    • The overpayment is less than $2,000; or
    • The participant is found to have committed fraud, upon the first occasion, due to the submission of more than one application for the same type of aid, for the same period of time, for the purpose of receiving more than one grant of aid in order to establish or maintain the family’s eligibility for aid, or increasing, or preventing a reduction in the amount of that aid.
• Four-Year Penalty
  • A four-year penalty is applied to applicants/participants who have committed fraud, upon the second occasion, due to the submission of more than one application for the same type of aid for the same period, for the purpose of:
    • Receiving more than one grant of aid in order to establish or maintain the family’s ligibility for aid; or
    • Increasing or preventing a reduction in the amount of aid.
• Five-Year Penalty
  • A five-year penalty is applied to applicants/participants convicted of a felony in State or federal court, including any determination made on the basis of a plea of guilty or nolo contendere, that does not meet the permanent penalty criteria and the overpayment is more than $2,000 but less than $5,000. 
• Permanent Penalty
  • A permanent penalty is applied to an applicant/participant who: 
    • Has been found to have committed any of the following acts: 
      • Made fraudulent statements or representation regarding their place of residence, in order to receive assistance simultaneously, from two or more states or counties;
      • Submitted false documentation for nonexistent or ineligible children; or
      • Received cash benefits in excess of $10,000 through fraudulent means.
    • Has been convicted of a felony in State or federal court, including any determination made on the basis of a plea of guilty or nolo contendere, for receipt of cash aid benefits in excess of $5,000 through fraudulent means;
    • Has been found to have committed, upon the third occasion, any of the following acts:
      • Making false or misleading statement or misrepresenting, concealing, or withholding facts; and
      • Committing any act intended to mislead, misrepresent, conceal, or withhold facts or propound a falsity.
    • Has been found to have committed fraud, upon the third occasion, due to the submittal of more than one application for the same type of aid for the same period of time, for the purpose of receiving more than one grant of aid, in order to establish or maintain the family’s eligibility for aid, or increasing, or preventing a reduction in the amount of that aid. 

Note: IPV committed over a period of time must not be separated to apply multiple penalties.

Penalties Applicable Prior to January 1, 1998

Individuals found to have committed an IPV either through:

• An ADH; or
• By a court of appropriate jurisdiction, shall be ineligible to receive CalWORKs benefits as follows:
  • Six months for the first violation.
  • Twelve months for the second violation. 
  • Permanently for the third violation. 

Individuals found to have committed an IPV either through:

• An ADH or by a court of appropriate jurisdiction, based upon submitting more than one application for the same period of time and for the purpose of receiving more than one grant of aid; or
• Submitting documentation for nonexistent children, or submitting false documentation for the purpose of showing ineligible children to be eligible for aid, shall be ineligible to receive CalWORKs benefits as follows:
  • Two years for the first violation.
  • Four years for the second violation.
  • Permanently for the third violation.

Postponement and Suspension of IPV

At the time the disqualification period is to begin, the following must be taken into consideration:

Postponement - If the individual has a GAIN sanction or failed to assign ChildSupport Rights, the IPV will be postponed until the sanctionhas been resolved.

Suspension - If the individual is not eligible for the CalWORKs Program at the time the disqualification period is to begin, the period shall be suspended until the person applies for and is determined to be eligible for benefits.

Inter-County Transfer (ICT)

An IPV disqualification period is applicable in Los Angeles County when the CalWORKs participant was disqualified in another county and the disqualification period has not
ended.

Authorized Representative

An individual disqualified for an IPV must not act as an  Authorized Representative during the disqualification period. This determination must be documented in the case record. 

When a participant elects an Authorized Representative, the Case-Carrying Eligibility Worker (EW) must verbally ask if the elected individual is an IPV.

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