California Department of Social Services - State Hearings Division
Notes from the Training Bureau - June 20, 1996

In Lopez v. Espy (1996), 83 F. 3d 1095, the U.S. Court of Appeals, held that the CDSS and its agents could not offset an FS administrative error overissuance against an FS underissuance. The court noted that 7 United States Code (U.S.C.) §2020(e)(11) requires agencies to provide for prompt restoration of coupons to households whose FS benefits were wrongly denied or terminated. The court concluded that 7 U.S.C. §2020(e)(11) allows for no exception to the prompt restoration requirement.

The court concluded that while 7 U.S.C. §2022(b)(2) provides for offsetting overissuances against underissuances, this section is ambiguous regarding offsetting underissuances against administrative error overissuances.

The CDSS is developing implementation authority. The current balancing regulations remain in effect until further notice.