California Code, Welfare and Institutions Code - WIC § 11466.31

(a) When it has been determined that a provider participating in the AFDC-FC program owes an overpayment that is due and payable, the department may implement involuntary offset collection procedures to collect sustained overpayments from a provider if the provider does not enter into a voluntary repayment agreement with the department or the provider has three outstanding payments on a voluntary repayment agreement before the overpayment is repaid.

(b) The minimum monthly overpayment offset amount from monthly rate reimbursements shall be determined using the involuntary collection procedures developed pursuant to paragraph (4) of subdivision (d) of Section 11466.22. Overpayments shall be offset against current monthly rate reimbursement payments due and payable to a provider under this chapter.

(c) Failure to repay an overpayment shall be grounds for termination of the provider's rate and shall result in a referral to the department's Community Care Licensing Division for license revocation.