A bill that would decriminalize welfare fraud under $25,000 in California for simple administrative errors is being pushed by a Democratic lawmaker.
State Sen. Lola Smallwood-Cuevas introduced Senate Bill 560, which would delete criminal penalties for welfare fraud below $25,000, and delete a provision for criminal penalties for any attempt at welfare fraud below $950, according to the legislation, which was introduced in February.
“California’s safety net should lift families up, not trap them in poverty,” Smallwood-Cuevas told Fox News Digital. “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 lawmaker said the bill “offers a smarter, more humane approach by allowing counties to resolve most overpayment cases administratively, holding people accountable without criminalizing poverty.”
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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 prohibit a person from being subject to criminal prosecution in certain instances for an overpayment or overissuance of benefits, the bill states.
“This bill is about keeping families out of the criminal justice system from making administrative errors on raising the threshold for welfare fraud prosecutions,” Smallwood-Cuevas said in an April 8 Instagram post.
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Most welfare fraud occurs when the reported absent parent is actually living in the home, unreported income, using an ineligible child or children not living in the home who are part of the recipient’s case, according to the California Department of Social Services.
In Los Angeles County, field investigators handle 15,000 to 20,000 fraud cases or referrals, according to the Department of Public Social Services.
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 and 95% result in a conviction.
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