340:50-15-1. Scope and applicability
(a) Scope and applicability. The scope and applicability of overpayment procedures contained in this Subchapter apply to Supplemental Nutrition Assistance Program (SNAP) food benefit issuance. Section 273.16 of Title 7 of the Code of Federal Regulations (7 C.F.R. § 273.16) contains federal requirements regarding disqualification for intentional program violations and 7 C.F.R. § 273.18 contains federal requirements regarding overpayment claims against households.
(b) Overpayment claim definition. A SNAP food benefit overpayment occurs when a household receives more food benefits than it is entitled to receive or when benefits are trafficked.
(c) Persons responsible for repaying an established overpayment claim. Refer to Oklahoma Administrative Code (OAC) 340:50-15-6 for repayment procedures. Persons responsible for repaying an established overpayment claim include:
(1) every adult included in the food benefit allotment, when the overpayment or benefit trafficking occurred; and
(2) a person connected to the household, such as an authorized representative or other individual, when the person trafficked benefits or caused the overpayment.
(d) Overpayment referral. When the worker determines an overpayment occurred, the worker sends an overpayment referral to Adult and Family Services (AFS) Benefit Integrity and Recovery (BIR) Unit for overpayment classification and establishment. The overpayment referral consists of a completed Form 08OP005E, Report of Food Benefit (FB) Overissuance, and supporting documents. • 1 Reasons to submit an overpayment referral to AFS BIR Unit include, but are not limited to, when:
(1) the household:
(A) failed to provide Oklahoma Human Services (OKDHS) with correct or complete information;
(B) failed to report changes in household circumstances, per OAC 340:50-9-5;
(C) chose to continue to receive benefits pending a fair hearing decision and the:
(i) fair hearing decision finds the household ineligible or eligible for fewer benefits; or
(ii) household withdraws the fair hearing request after food benefits were reopened or increased, pending the outcome of the hearing; or
(D) trafficked SNAP food benefits, per OAC 340:50-15-25;
(2) the worker:
(A) incorrectly computed the household's income or deductions or otherwise issued an excess benefit allotment;
(B) failed to take prompt action on a change reported by the household resulting in an over-issuance;
(C) incorrectly applied rules that resulted in an over-issuance or issuing benefits to an ineligible household;
(D) incorrectly issued or renewed food benefits to an ineligible household; or
(E) failed to reduce food benefits because the household's public assistance benefits changed;
(3) the computer system incorrectly issued benefits to a household;
(4) AFS SNAP Quality Control staff discovered the over-issuance during a quality control review; • 2 or
(5) the Oklahoma Inspector General Investigative Unit discovered an over-issuance.
(e) Overpayment classification and claim establishment. AFS BIR Unit staff classifies an overpayment as an inadvertent household error, intentional program violation, or agency error, per OAC 340:50-15-4, and establishes the overpayment claim, per OAC 340:50-15-3. Per 7 C.F.R. § 273.18(e)(2)(ii), AFS BIR Unit staff does not establish an overpayment claim when the error causing the overpayment is classified as inadvertent client error or agency error and the:
(1) overpayment is less than $250;
(2) household is not participating in SNAP when the overpayment is discovered; and
(3) overpayment was not discovered in an AFS Quality Control Review Unit review.
(f) Repayment plan development. AFS BIR Unit staff verifies and calculates the overpayment claim, and establishes the claim by notifying the debtor household of the overpayment debt. Once established, AFS BIR Unit staff develops a repayment plan with the household, per OAC 340:50-15-6.
(g) Disqualification penalty. When a person commits an intentional program violation, in addition to being responsible for repaying the overpayment debt, the person is disqualified from receiving food benefits for a time period, per OAC 340:50-15-25. • 3
(h) Fair hearing rights. When the household disagrees with the overpayment decision, the household may request a fair hearing within 90-calendar days of the date on the Notification of Food Benefit Overpayment notice, per 7 C.F.R. § 273.15(g). When OKDHS Legal Services Appeals Unit or county staff notifies AFS BIR Unit staff that the household requested a timely fair hearing, AFS BIR Unit staff ceases all collection efforts, including allotment reduction, pending the hearing decision. An item mailed by OKDHS is presumed to be received on the second day mail is delivered, following the date on the notice, per OAC 340:2-5-63.
INSTRUCTIONS TO STAFF 340:50-15-1
1. (a) The worker uses the FSCALC transaction to calculate the overpayment amount.
(b) When possible, Adult and Family Services (AFS) county office staff sends completed Form 08OP005E, Report of Food Benefit (FB) Overissuance, and supporting documents to AFS Benefit Integrity and Recovery (BIR) within 30-calendar days of discovery by:
(1) email to firstname.lastname@example.org;
(2) fax to 405-522-0952; or
(3) inter-office mail.
(c) Supporting documents are documents that verify when an overpayment occurred, why it occurred, who is responsible, and the overpayment amount. Refer to Oklahoma Administrative Code 340:50-3-3 and 340:50-7-45 for documentation sources.
2. AFS BIR staff complete all overpayment claims discovered as a result of federally required quality control case action reviews. The automated notice, Decision of Quality Control Error and Corrective Action Request, issued by AFS SNAP to designated county directors explains county staff are not responsible for completing QC error-related overpayment claims.
3. When AFS BIR staff establishes an overpayment based on an intentional program violation, he or she:
(1) removes the disqualified person from the Supplemental Nutrition Assistance Program (SNAP) food benefit or closes the food benefit when it is a one person case;
(2) mails Form 08AD019E, Program Penalty/Disqualification Notice, to the household; and
(3) enters the person's name, the date the disqualification began, and the length of the disqualification period into the national SNAP disqualification database. After entering this information into the database, the person appears on the Food Stamp Disqualification data exchange screen.