The California Department of Social Services (CDSS) has issued a policy about potential Intentiional Program Violations (IPVs). Counties can only establish nonfraudulent CalWORKs overpayments and CalFresh overissuances for two years prior to the date of discovery. Any benefits paid more than 24 months prior to the date of discovery cannot be included in a nonfraudulent overpayment or overissuance claim.
A fraudulent overpayment or overissuance claim is a claim caused by an IPV. An IPV can only be established by an administrative disqualification hearing, a signed administrative disqualification hearing waiver, a criminal court conviction, or a signed disqualification consent agreement. If a county determines that a claim previously established as nonfraudulent is fraudulent, the county must reclassify the claim as an IPV and issue a new notice.
CDSS has created the potential IPV claim for cases where the county believes there is an IPV, and the claim is beyond the 24-month establishment period. When the county creates a potential IPV claim, there will be two claims on the case, the nonfraudulent claim and the potential IPV claim. Collection on the potential IPV claim must be immediately suspended.
IPV claims are limited to six years before the date of discovery.
If a potential IPV claim is substantiated through either criminal prosecution or the administrative disqualification hearing process, the county must change the potential IPV to an IPV. If a potential IPV is not substantiated through either criminal prosecution or the administrative disqualification hearing process, the county must delete the potential IPV claim.
Starting March 1, 2023, if a county investigation reveals sufficient evidence to refer the case for either criminal prosecution or an administrative disqualification hearing, the county must send a potential IPV informing notice to inform the client of the potential IPV amount beyond the 24-month period. (ACL 23-19, February 2, 2023.)