California Code, Welfare and Institutions Code - WIC § 14016.4

The department may enter into an agreement with a county to have the county detect and recover the value of any Medi-Cal benefits which have been improperly received or obtained by any person.  Counties shall receive an incentive amount not to exceed 30 percent of the amount remaining after reasonable county costs of the recovery have been deducted from the amount recovered.  As the single state agency for state plan purposes, the department is responsible for and has authority to impose procedural requirements necessary for federal compliance.

The administrative costs for the implementation of this section shall be controlled by the department.  The department shall establish and maintain a plan whereby costs for counties' administration of beneficiary collections will be effectively controlled.  The plan shall establish standards and performance criteria, including workload, productivity, and support services standards, to which counties shall adhere.