California Democratic Lawmakers Propose Bill to Decriminalize Welfare Fraud Under $25,000 Due to Administrative Errors
The bill would require officials to determine whether benefits were authorized as a result of an error
A Democratic lawmaker is pushing a bill that would decriminalize welfare fraud under $25,000 in California when it stems from simple administrative errors.
State Senator Lola Smallwood-Cuevas introduced Senate Bill 560, which would eliminate criminal penalties for welfare fraud involving amounts under $25,000 and would remove a provision for criminal penalties for any attempted welfare fraud under $950, according to the legislation introduced in February.
“California’s safety net should lift families up, not trap them in poverty,” Smallwood-Cuevas told Fox News Digital. “Right now, missing a deadline or making a paperwork error can result in felony charges that tear families apart—even when there’s no intent to deceive.”
The lawmaker stated that the bill “offers a smarter and more humane approach by allowing counties to resolve most overpayment cases administratively—holding people accountable without criminalizing poverty.”
A hearing for the bill is scheduled for May 5.
The bill would require a county agency to determine whether welfare benefits were authorized as a result of an error in the California Statewide Automated Welfare System (CalSAWS).
It would prohibit individuals from facing criminal prosecution in certain cases for overpayments or overissuance of benefits, according to the bill.
“This bill is about keeping families out of the criminal justice system for making administrative errors by raising the threshold for prosecuting welfare fraud,” Smallwood-Cuevas said in an April 8 Instagram post.
State Senator Lola Smallwood-Cuevas speaks to the media outside a Starbucks Coffee on Central Avenue in downtown Los Angeles. The Democratic lawmaker is pushing a bill that would decriminalize welfare fraud under $25,000 resulting from administrative errors. (Mel Melcon / Los Angeles Times via Getty Images)
Most welfare fraud cases occur when a reported absent parent is actually living in the home, fails to report income, or includes ineligible children who don’t live in the household but are listed on the beneficiary’s case, according to the California Department of Social Services.
In Los Angeles County, field investigators handle between 15,000 and 20,000 fraud cases or referrals annually, according to the Department of Public Social Services.
Local store with an EBT sign showing that it accepts Electronic Benefit Transfer cards. (Photo by: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
Each year, investigators uncover fraud in approximately 5,000 to 8,000 cases. Of those, 200 are referred to the Los Angeles County District Attorney’s Office, and 95% end in convictions.
