Limitations period for collecting CalFresh overissuances

The California Department of Social Services (CDSS) informs counties that they must stop all noticing and collection efforts for CalFresh overissuances except for Treasury Offset Program, when a claim has been delinquent for three consecutive years.  This letter supercedes Manual of Policy and Procedure Section 63.801.53 which does not comply with federal regulations.  This applies to all CalFresh overissuance types.

A CalFresh overissuance claim is delinquent if the claim has not been paid by the due date and payment arrangements have not been made, or a repayment agreement has been made and a payment not made.  A claim is established when the initial notice of action is sent to the household.  When the claim is established, the household has 30 days to respond to state how they have chosen to pay or to request a hearing.  If a household that is no longer receiving aid does not respond in 30 days, the claim is delinquent.

A claim is not delinquent if it is being paid through a repayment agreement or through allotment adjustment.  A claim is delinquent on the date of a missed installment payment.  A claim remains delinquent until either a repayment agreement is established or resumed, a payment is made by a former recipient, payment is received in full, or the recipient reenrolls in CalFresh and allotment reduction begins.

Once a claim is delinquent for three years, the only allowable collection method is the federal Treasury Offset Program.  All other collection efforts by the county or county revenue and recovery department must stop.  (ACL 20-24, March 26, 2020.)