California State Senator Lola Smallwood-Cuevas has introduced Senate Bill 560, proposing to decriminalize certain instances of welfare fraud involving amounts under $25,000. The bill aims to reclassify specific welfare fraud cases as administrative issues rather than criminal offenses, particularly when they result from alleged ‘administrative errors.’
Under current California law, welfare fraud is treated as a criminal offense, with penalties varying based on the amount involved. SB 560 seeks to eliminate criminal penalties for welfare fraud cases under $25,000, shifting the focus to administrative remedies.
Supporters of the bill, including the Service Employees International Union (SEIU) and various welfare rights organizations, argue that the current system disproportionately affects marginalized communities. They cite data indicating that 75% of welfare fraud convictions involve women, and 50% involve Black and Hispanic women.
Opponents, such as the California District Attorneys Association and the San Bernardino County Sheriff’s Department, contend that the bill could lead to increased welfare fraud by reducing deterrents. They argue that welfare fraud requires specific intent to deceive and that removing criminal penalties may undermine the integrity of public assistance programs.
The bill is scheduled for a hearing on May 5. If passed, it would represent a significant shift in how California addresses welfare fraud, emphasizing administrative resolution over criminal prosecution for cases involving less than $25,000.
