Democrat lawmakers in California have introduced new legislation that seeks to decriminalize welfare fraud in the state if the amount stolen is below $25,000.
The bill would allow fraudsters to escape criminal penalties by writing off welfare overpayments up to $25K as “administrative errors.”
Senate Bill 560 would also delete a provision for criminal penalties for any attempt at welfare fraud below $950.
The legislation was introduced by Democrat State Sen. Lola Smallwood-Cuevas.
In a statement, Smallwood-Cuevas said:
“California’s safety net should lift families up, not trap them in poverty.
“Right now, a missed deadline or paperwork mistake can lead to felony charges that tear families apart — even when there’s no intent to deceive.”
The Democrat state senator said the bill “offers a smarter, more humane approach by allowing counties to resolve most overpayment cases administratively, holding people accountable without criminalizing poverty.”
The legislation is set for a hearing on May 5.
The bill would require a county agency to determine whether the welfare benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS).
It would essentially place the responsibility for the fraudulent payments on CalSAWS.
As such, people who receive fraudulent welfare payments up to $25k would not face criminal penalties because it would be considered an “administrative error” by CalSAWS.
It would prohibit a person from being subject to criminal prosecution for an overpayment or overissuance of benefits, the bill states.
In an April 8 Instagram post, Smallwood-Cuevas said:
“This bill is about keeping families out of the criminal justice system from making administrative errors on raising the threshold for welfare fraud prosecutions.”
According to the California Department of Social Services, most welfare fraud occurs when the recipient has made innacurate claims about their living situation.
Such examples include when a reported absent parent is actually living in the home, there is unreported income, or the claimant is using an ineligible child or children not living in the home who are part of the recipient’s case.
According to the Department of Public Social Services, field investigators in Los Angeles County handle 15,000 to 20,000 fraud cases or referrals every year.
Annually, investigators find fraud in around 5,000 to 8,000 cases.
Of that, 200 cases are sent to the Los Angeles County District Attorney’s office.
95% of prosecuted cases result in a conviction.
