11466.24.
(a)
In accordance with this section, a county shall collect an overpayment, discovered on or after January 1, 1999, made to a foster family home, an approved home of a relative, or an approved home of a nonrelative legal guardian, for any period of time in which the foster child was not cared for in that home, unless any of the following conditions exist, in which case a county shall not collect the overpayment:
(1)
The cost of the collection exceeds that amount of the overpayment that is likely to be recovered by the county. The cost of collecting the overpayment and the likelihood of collection shall be documented by the county.
(2)
The child was temporarily removed from the home and payment was owed to the provider to maintain the child’s placement.
(3)
The overpayment was exclusively the result of a county administrative error or both the county welfare department and the provider were unaware of the information that would establish that the foster child was not eligible for foster care benefits.
(4)
The provider did not have knowledge of, and did not contribute to, the cause of the overpayment.
(b)
(1)
After notification by a county of an overpayment to a foster family home, an approved home of a relative, or an approved home of a nonrelative legal guardian, and a demand letter for repayment, the foster parent, approved relative, or approved nonrelative legal guardian may request the county welfare department to review the overpayment determination in an informal hearing, or may file with the department a request for a hearing to appeal the overpayment determination. Requesting an informal hearing shall not preclude a payee from seeking a formal hearing at a later date. The county welfare department shall dismiss the overpayment repayment request if it determines the action to be incorrect through an initial review prior to a state hearing, or through a review in an informal hearing held at the request of the foster parent, relative, or nonrelative legal guardian.
(2)
If a review does not result in the dismissal of the overpayment, or a hearing is not requested, or on the 30th day following a formal appeal hearing decision, whichever is later, foster family home overpayment shall be sustained for collection purposes.
(3)
The department shall adopt regulations that ensure that the best interests of the child shall be the primary concern of the county welfare director in any repayment agreement.
(c)
(1)
The department shall develop regulations for recovery of overpayments made to any foster family home, approved home of a relative, or approved home of a nonrelative legal guardian. The regulations shall prioritize collection methods, that shall include voluntary repayment agreement procedures and involuntary overpayment collection procedures. These procedures shall take into account the amount of the overpayment and a minimum required payment amount.
(2)
A county shall not collect an overpayment through the use of an involuntary payment agreement unless a foster family home, an approved home of a relative, or an approved home of a nonrelative legal guardian has rejected the offer of a voluntary overpayment agreement, or has failed to comply with the terms of the voluntary overpayment agreement.
(3)
A county shall not be permitted to collect an overpayment through the offset of payments due to a foster family home, an approved home of a relative, or an approved home of a nonrelative legal guardian unless this method of repayment is requested by the provider in a voluntary repayment agreement, or other circumstances defined by the department by regulation.
(d)
If a provider is successful in its appeal of a collected overpayment, it shall be repaid the collected overpayment plus simple interest based on the Surplus Money Investment Fund.
(e)
A county may not collect interest on the repayment of an overpayment.
(f)
There shall be a one-year statute of limitations from the date upon which the county determined that there was an overpayment.