People v. Hudson

113 Cal. App. 4th 924 (Cal. App. 2003) ; Clearinghouse Number: 55500

Description

County Welfare Agency Must Apply Earned Income Disregard in Calculating Food Stamp Restitution After Recipient’s Fraud Conviction

Abstract

The California Court of Appeal ruled that state law allowed county welfare agency to collect in restitution only the amount to which it would have been entitled in the absence of defendant’s fraud. Regardless of administrative regulations, agency must apply the earned income disregard in calculating the food stamp benefit restitution that was a condition of defendant’s probation. Between 1997 and 2001 defendant received various benefits, including food stamps. She failed to report the full amount of her unemployment benefits and wages, was charged with welfare fraud, and pleaded no contest. Restitution was a condition of her probation. At her restitution hearing, agency employee testified that under state regulations, although food stamp recipients were entitled to a 20 percent earned income disregard in determining their benefits, those who failed to report income were not to receive the benefit of the disregard in calculating overpayments. Ruling that this approach impermissibly penalized defendant, the court ordered agency to recalculate the restitution amount by using the income disregard. Agency refused, and the court declined to order any food stamp restitution. On defendant’s appeal, the appellate court said that agency’s position violated People v. Crow, 6 Cal. 4th 952 (1993), which interpreted California Penal Code § 1202.4(f), the statutory basis for victim restitution. The appellate court noted that, under Crow, agency was entitled only to the amount that it would have paid had no fraud occurred, in which case it would have applied the income disregard. While the regulations might govern agency’s right to impose administrative penalties, Crow governed restitution following a criminal conviction. However, the appellate court said that the lower court had alternatives short of complete denial of restitution.

Additional Information

Attorney Information
Docket Date
2003-11-26 00:00:00+00:00

Files

Filed under: