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COMMENT DUE DATE:  

February 5, 2008

DATE: 

January 23, 2008

Laura Brown    FSSD    (405) 521-4396

Dena Thayer   PMU Manager   (405) 521-4326

Pat McCracken   PMU Specialist   (405) 522-1017

RE:  

APA WF 07-40

It is very important that you provide your comments regarding the DRAFT COPY of policy by the comment due date. Comments are directed to *STO.LegalServices.Policy@okdhs.org

The proposed policy is  Permanent .  This proposal will go to the Commission meeting on

CHAPTER 50 FOOD STAMP PROGRAM

Subchapter 15. Overpayments and Fraud

Part 1. Overpayments

OAC 340:50-15- 1 through 340:50-15-7 [AMENDED]

OAC 340:50-15-9 [AMENDED]

Part 3. Fraud

OAC 340:50-15-25 [AMENDED]

OAC 340:50-15-27 [AMENDED]

SUMMARY:The proposed revisions to Subchapter 15 of Chapter 50 amend the rules to provide clarifying and updated information regarding overpayment procedures that includes:(1) current responsibilities for who writes and establishes overpayments; (2) revising the name of the Family Support Services Division (FSSD) Section that receives overpayments; (3) removing information about overpayment claims not being required in certain instances for categorically eligible households as this language was removed from federal regulations; (4) showing current form names and numbers; (5) removing language about using expunged benefits toward overpayment debts; (6) correcting a state statute reference; and (7) using current terminology and clarifying language.

PERMANENT APPROVAL:Permanentrulemaking approval is requested.

LEGAL AUTHORITY:Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution; Section 273.18 of Title 7 of the Code of Federal Regulations (CFR) and Sections 171 and 243 of Title 56 of the Oklahoma Statutes.

To:Dena Thayer, Programs Administrator

Policy Management Unit

From:Mary Stalnaker, Division Director

Family Support Services Division

Date:December 6, 2007

Re:CHAPTER 50 FOOD STAMP PROGRAM

Subchapter 15. Overpayments and Fraud

Part 1. Overpayments

OAC 340:50-15- 1 through 340:50-15-7 [AMENDED]

OAC 340:50-15-9 [AMENDED]

Part 3. Fraud

OAC 340:50-15-25 [AMENDED]

OAC 340:50-15-27 [AMENDED]

(Reference APA WF 07-40)

Contact: Laura Brown, 405-521-4396

A.Brief description of the purpose of the proposed rule:

Purpose.The proposed revisions to Subchapter 15 of Chapter 50 amend the rules to provide clarifying and updated information regarding overpayment procedures that includes:(1) current responsibilities for who writes and establishes overpayments; (2) revising the name of the Family Support Services Division (FSSD) Section that receives overpayments; (3) removing information about overpayment claims not being required in certain instances for categorically eligible households as this language was removed from federal regulations; (4) showing current form names and numbers; (5) removing language about using expunged benefits toward overpayment debts; (6) correcting a state statute reference; and (7) using current terminology and clarifying language.

Strategic Plan impact.The proposed rules achieve OKDHS goals by continuously improving systems and processes to achieve OKDHS efficiency.

Substantive changes.

340:50-15-1 is amended to include: (1) current responsibilities for who writes and establishes overpayments; (2) revising the name of the Family Support Services Division (FSSD) Section that receives overpayments; and (3) updating form numbers.

340:50-15-2 is amended to: (1) remove information about overpayment claims not being required in certain instances for categorically eligible households as this language was removed from federal regulations and (2) update language to current terminology.

340:50-15-3 is amended to: (1) update form names and numbers and (2) include current responsibilities for who writes and establishes overpayments.

340:50-15-4 is amended to: (1) update form numbers and (2) add clarifying information and current terminology.

340:50-15-5 is amended to: (1) update form numbers and (2) add clarifying information.

340:50-15-6 is amended to: (1) update form names and numbers; (2) remove language regarding using expunged benefits toward overpayment debts; (3) add clarifying language regarding repayment plans set by the court judiciary system; and (4) update language to current terminology.

340:50-15-7 is amended to update language to current terminology.

340:50-15-9 is amended to update language to current terminology.

340:50-15-25 is amended to: (1) update form names and numbers; and (2) update language to current terminology.

340:50-15-27 is amended to:(1) correct a state statute reference; and (2) update language to current terminology.

Reasons.The proposed revisions are being proposed to provide staff with clear and concise rules to facilitate the accurate delivery of benefits and services to persons who are in need which includes updating terminology and forms and clarifying who writes and establishes overpayments.

Repercussions. The proposed rules will make policy easier to understand for both human services center (HSC) staff and the public. If the proposed revisions are not implemented, there will be no negative impact.

Legal authority. Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution; Section 273.18 of Title 7 of the Code of Federal Regulations (CFR) and Sections 171 and 243 of Title 56 of the Oklahoma Statutes.

Permanent rulemaking approval is requested.

B.A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities: The classes of persons most likely to be affected by the proposed rules are Food Stamp households and OKDHS staff. The affected classes of persons will bear no costs associated with implementation of the rules.

C.A description of the classes of persons who will benefit from the proposed rule: The classes of persons who will benefit are Food Stamp households and OKDHS staff.

D.A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each: The revised rules do not have an economic impact on the affected entities. There are no fee changes associated with the revised rules.

E.The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency: The probable cost to OKDHS includes the cost of printing and distributing the rules, which is estimated to be less than $20. The revised rules will result in enhanced delivery of services to Food Stamp households.

F.A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule: The proposed rules do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivisions be required in implementation or enforcement of the rules.

G.A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act: There are no anticipated adverse effects on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act.

H.An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or non-regulatory methods or less intrusive methods for achieving the purpose of the proposed rule: There are no less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rule.

I.A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: Implementation of the proposed rules will have a positive impact on the health, safety, and well-being ofFood Stamp households by facilitating the delivery of benefits and services to individuals who are in need.

J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented:If the proposed rules are not implemented, current practices regarding the establishment of overpayments will not be reflected in policy which could impact the delivery of benefits and services.

K.The date the rule impact statement was prepared and, if modified, the date modified: Prepared December 6, 2007. Modified .January 18, 2008

SUBCHAPTER 15. OVERPAYMENTS AND FRAUD

PART 1. OVERPAYMENTS

 

340:50-15-1. Scope and applicability

Revised 10-1-036-1-08

An overissuance or overpayment of food stamp benefits occurs when a household receives more food stamp benefits than it is entitled to receive. When the worker determines a household may have received more food stamp benefits than it is entitled to receive, the worker makes a referral to Family Support Services Division (FSSD) Overpayment Section within 30 days of the date of discovery for determination of an overpayment documents the circumstances leading to the overpayment and computes the amount of the overpayment.¢ 1

(1) Instances which may result in referral for establishment of an overpayment determination claim include, but are not limited to:

(A) the household:

(i) failing to provide the Oklahoma Department of Human Services with correct or complete information;

(ii) failing to report changes in household circumstances;

(iii) electing to receive benefits pending a fair hearing decision which subsequently found the household ineligible or eligible for fewer benefits; or

(iv) trafficking benefits;

(B) the worker:

(i) assigning an incorrect allotment;

(ii) failing to take prompt action on a change reported by the household;

(iii) incorrectly computing the household's income, deductions, or both; or

(iv) incorrectly authorizing issuance to a household; or

(C) any overissuance discovered as a result of a Quality Control an Office of Inspector General Administrative Review Unit review.

(2) Persons responsible for paying a claim are:

(A) each person who was an adult member of the household when the overpayment or trafficking benefits occurred and which resulted in an established overpayment claim; or

(B) a person connected to the household, such as an authorized representative, who actually trafficks or otherwise causes an overpayment or trafficking.

(3) The Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section classifies overpayments as inadvertent client household error, intentional program violation also known as fraud, or agency error.The FSSD Overpayment Section treats all overpayments All food benefit overpayment claims are considered as inadvertent client household error or agency error until Form H-S-13A 08OP016E, Administrative Disqualification Hearing Waiver, is signed or a court of law finds a household guilty of fraud.¢ 2

(4) The FSSD Overpayment Section sends The worker and supervisor calculate all overpayment claims and establish any overpayments under $500 due to inadvertent household error and all agency error overpayments, regardless of the amount.Once established notices sent to the client include:

(A) Form FSP-S-18 08OP009E, Notification of Food Stamp Overpayment, to the client along with;

(B) page 1 of Form FSP-10 08OP005E, Report of Food Stamp Overissuance; and

(C) Form 08OP118E, Food Stamp Repayment Agreement.

(5) When the overpayment is $500 or more and due to inadvertent client error, it is sent to the FSSD Benefit Integrity and Recovery Section.FSSD Benefit Integrity and Recovery Section staff either establishes the overpayment claim and notifies the household of the overpayment with appropriate notices or refers the case to OIG for a possible judicial determination.

(A) When the case is transferred to OIG, the overpayment claim is not established and notices are not sent to clients until after OIG completes its determination.

(B) After OIG acquires a judicial determination and the claim is either determined to be an intentional program violation or fraud or remains an inadvertent household error, the claim is released back to the FSSD Benefit Integrity and Recovery Section to establish the overpayment claim.

(C) After the overpayment claim is established, the client is sent Form 080P009E, page 1 of Form 080P005E, and Form 080P118E to the household.

(5) The FSSD Overpayment Section postpones notification on cases being referred for judicial court decision until a court decision has been made.

(6) Food stamp overpayments benefit overpayment claims classified as inadvertent client household error or agency error do not cover more than 12 months prior to the month in which the overpayment was discovered.Food stamp benefit overpayments classified as fraud or intentional program violation may cover the entire time the overpayment occurred.However, the time covered cannot include periods more than six years prior to the date the overpayment was discovered.

(7) Food stamp benefit overpayments arising from trafficking related offenses are the value of the trafficked benefits as determined by the individual's person's admission, adjudication, or documentation that forms the basis for the trafficking determination.OIG refers these cases directly to the Family Support Services Division (FSSD) Benefit Integrity and Recovery Section for establishment of the claim and/or disqualification.

(8) When the worker and the Overpayment Section suspect an intentional program violation, the Overpayment Section makes a referral to the Office of Inspector General or to the Appeals Unit for a determination of fraud.

INSTRUCTIONS TO STAFF 340:50-15-1

Issued 6-1-08

1.The worker uses the Oklahoma Program Integrity (OPI) system to document the circumstances leading to the overpayment and calculates the amount of the overpayment claim.To be considered timely, per Section 273.18 of Title 7 of the Code of Federal Regulations, all food benefit overpayment claims must be established within the quarter following the quarter of discovery.

2.When fraud is established, the Family Support Services Division (FSSD) Benefit Integrity and Recovery Section codes the food benefit claim as intentional program violation in the OPI system with a agency error (AE), inadvertent household error (IHE), or intentional program violation (IPV) reason.

 

340:50-15-2. Instances when overpayment referral claim is not required

Revised 12-01-01 6-1-08

(a) Categorically eligible households are defined as households in which all household members are included in a State Supplemental Payment or Temporary Assistance for Needy Families (TANF) money payment or grant.For categorically eligible households, a claim or overpayment will only be determined when it can be computed on the basis of changed household net income and/or household size.A claim or overpayment shall not be established if there was not a change in net income and/or household size.[7 CFR 273.18(c)(1)(ii)]

(b) The social services specialist Per Section 273.18(e)(2)(ii) of Title 7 of the Code of Federal Regulations, the worker does not make establish an overpayment referral claim when the error causing the overpayment is classified as inadvertent client error or agency error and all of these the conditions included in (1) through (3) exist:.

(1) the The overpayment is less than $250;.

(2) the The household is not participating in the Food Stamp Program at the time of discovery of the overpayment; and.

(3) the The overpayment was not discovered in a Quality Control an Office of Inspector General Administrative Review Unit review.

340:50-15-3. Procedures for referring overpayments Overpayment claim procedures

Revised 2-1-97 6-1-08

(a) The earned income deduction is not allowed in determining the overpayment amount when a recipient fails to report earned income in a timely manner.

(b) The social When the worker makes referrals for determination of an overpayment if the social worker believes a household received an overissuance of food stamp benefits., The social the worker makes the referral, regardless of whether suspected intentional program violation, agency error, or inadvertent error on the part of the household caused the overissuance documents the circumstances causing the overpayment and calculates the overpayment claim.The food benefit claim is considered established when the overpayment notice is dated and mailed to the client.¢ 1The FSSD Overpayment Section sends the client Form FSP-S-18, Notification of Food Stamp Overpayment, and advises the client of the amount, type of overpayment and follow-up requirements by sending the client computer generated Form:

(1) FSP-18-B, Food Stamp Repayment Agreement; or

(2) FSP-18-D, Food Stamp Repayment Agreement-Fraud Debt.

(c) The worker and supervisor establish overpayment claims classified as inadvertent household error and less than $500, and all agency error claims regardless of the amount. Notices sent to the client include:

(1) Form 080P009, Notification of Food Stamp Overpayment;

(2) page 1 of Form 080P005E; and

(3) Form 080P118E, Food Stamp Repayment Agreement.

(d) Calculated overpayments that are $500 and over that are not due to agency error are not established until reviewed by staff in the Family Support Services Division (FSSD) Benefit Integrity and Recovery Section staff.In most instances after calculation, FSSD staff sends these overpayments to the Office of the Inspector General (OIG) to determine fraudulent intent prior to establishing the overpayment.¢ 2

 

INSTRUCTIONS TO STAFF 340:50-15-3

Issued 6-1-08

1.The worker uses the Oklahoma Program Integrity (OPI) system to calculate the amount of the overpayment claim and document the circumstances leading to the overpayment in the Comments Section of OPI.

2.Once staff in the Office of the Inspector General (OIG) makes a determination regarding fraudulent intent, the overpayment is sent back to the Family Support Services Division (FSSD) Benefit Integrity and Recovery Section through OPI to establish the overpayment claim.

 

340:50-15-4. Overpayments by classification

Revised 12-1-01 6-1-08

(a) Overpayments Overpayment claim classified as inadvertent client household error.An overpayment claim is classified as an inadvertent client household error if the overissuance was caused by a misunderstanding or unintended error on the part of the household.Instances of inadvertent client household error which may result in an overpayment claim include, but are not limited to, when the household unintentionally inadvertently:

(1) failed to provide the Agency Oklahoma Department of Human Services (OKDHS) with correct or complete information;

(2) failed to report changes in household circumstances; or

(3) received benefits or more benefits than it was entitled to receive pending a fair hearing decision.

(b) Overpayments Overpayment claim classified as agency error.An overpayment claim is classified as an agency error if the overissuance was caused by Agency OKDHS action or failure to take action.Instances of agency error which may result in an overpayment include, but are not limited to, the Agency when OKDHS:

(1) failed to take prompt action on a change reported by the household;

(2) incorrectly computed the household's income or deductions, or otherwise assigned an incorrect allotment;

(3) incorrectly issued benefits to a household;

(4) incorrectly applied policy or procedure; or

(5) failed to provide a household a reduced level of reduce food stamp benefits because it's the household's public assistance grant benefits changed.

(c) Overpayments Overpayment claim classified as intentional program violation. An overpayment claim is classified as an intentional program violation when it is determined that a person has intentionally given false information or withheld facts in order to receive food stamp benefits or trafficked benefits for cash or non-food items.This determination is made through an administrative disqualification hearing, signing Form H-S-13A 08OP016E, Administrative Disqualification Hearing Waiver, or by a judicial court decision.Instances of intentional program violation which may result in an overpayment claim include, but are not limited to, an individual when a person in the household:

(1) made a false or misleading statement, or misrepresented, concealed, or withheld facts; or

(2) committed an act that constitutes a violation of the Food Stamp Program relative to the use, presentation, transfer, acquisition, receipt, or possession of food stamp benefits.

 

340:50-15-5. Right to appeal

Revised 6-1-03 6-1-08

If there is a disagreement with the overpayment decision, the household may request a hearing within 90 calendar days of the date on Form FSP-S-18 08OP009E, Notification of Food Stamp Overpayment.Upon notification from the Appeals Unit of receipt of Form H-1 13MP001E, Request for A a Fair Hearing, the Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section postpones reduction in food stamp benefits pending the hearing decision.

 

340:50-15-6. Development of repayment

Revised 10-1-03 6-1-08

(a) Repayment of established overpayments overpayment claims.Households must make repayment on all established overpayment claims regardless of the reason for the overpayment.Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section initiates collection efforts against all adult household members except those who are deceased.Collection may be received from two separate households for the same claim.Any other collection method repayment option shown at (d) of this Sectionmay be used against to collect the overpayment claim from any adult individual who was in the household at the time of the overpayment and who is not a current currently a member of the household undergoing allotment reduction.

(b) Repayment plan time frames.The After the overpayment is established, the FSSD Overpayment Benefit Integrity and Recovery Section sends the client Form FSP-18-B 08OP118E, Food Stamp Repayment Agreement that explains the acceptable methods of repayment for the debt classification.The client is responsible for completing and returning Form FSP-18-B 08OP118E within the appropriate time frame.The food stamp benefit overpayment claim is considered delinquent if the overpayment claim is not paid within 30 calendar days of the date of the Form FSP-S-18 08OP009E, Notification of Food Stamp Overpayment, or a monthly payment, as designated on the repayment agreement, has not been made by the due date.An overpayment claim is not considered delinquent if another food stamp benefit overpayment claim for the same household is currently being paid either through a previous repayment agreement or allotment reduction.

(c) Consequences of non-return of repayment agreement.Paragraphs (1) through and (2) of this subsection describe the basis for acceptable methods of consequences of non-return of the repayment agreement and within appropriate time frames for client responses.

(1) Agency error or inadvertent client household error.To make a voluntary plan of repayment of an agency error or inadvertent client household error debt claim, the client must complete and return Form FSP-18-B 08OP118E within 30 days of the date on the form.If the client fails to return Form FSP-18-B 08OP118E, FSSD begins recoupment from the client's food stamp benefits or other collection methods.

(2) Intentional program violation.To make a voluntary plan of repayment of an intentional program violation debt, the client must complete and return Form FSP-18-D 08OP118E, Repayment Agreement Fraud Debt, within 30 calendar days of the date on the form.If the client fails to return Form FSP-18-D 08OP118E, FSSD begins recoupment from the client's food stamp benefits or other collection methods.¢1

(bd) Repayment options.

(1) Payment in full.The client may repay an overpayment claim in one lump sum by personal check, money order, cashier's check, or Electronic Benefit Transfer (EBT) debit with a signed statement.

(2) Monthly payments.The client may repay an overpayment claim in regular monthly installments by personal check, money order, cashier's check, or approved EBT debits.The amount to be repaid in monthly installments cannot be less than the amount that could be recovered through allotment reduction.

(3) Food stamp allotment reduction.

(A) Agency error or inadvertent client household error.The FSSD Overpayment Benefit Integrity and Recovery Section processes the reduction in the amount of 10% of the client's monthly allotment or $10, whichever is greater.The client may request a reduction up to the client's maximum monthly allotment.

(B) Intentional program violation.The FSSD Overpayment Benefit Integrity and Recovery Section processes the reduction in the amount of 20% of the client's monthly allotment or $20, whichever is greater.The client may request a reduction up to the client's maximum monthly allotment.

(43) Lost benefit reductions. Any lost benefit due the household is used as payment on a food stamp benefit overpayment claim.

(54) Client authorized EBT debits.A household may make a voluntary payment through a debit from the EBT Access account.In order to debit the EBT account, a signed statement must be received from the client or the household's authorized representative giving permission for the debit.This statement is faxed to the FSSD Overpayment Benefit Integrity and Recovery Section for immediate processing.

(6) Expunged benefits.Expunged food stamp benefits are those where the account has not been accessed for one year.These expunged benefits, when known and identified with an overpayment account are used to adjust the overpayment balance by the amount of the expunged benefit.

(75) Stale benefits.Stale food stamp benefits are those where the account has not been accessed for three months.These benefits, when known and identified with an overpayment account, are may be used as payment on a food stamp benefit overpayment claim.This is done only after the client is notified of this intent on the Form 08OP014E, Important! EBT Inactivity and Collection of Debt Notice, and given 30 calendar days from the date of the notice to request these benefits be left in the account for client use.

(ce) Reconsideration of repayment plan.The client may request reconsideration of the repayment plan, with the exception of those payments set by the court judiciary system, by submitting information regarding changes in family and financial circumstances directly to the FSSD Overpayment Benefit Integrity and Recovery Section.The FSSD Overpayment Benefit Integrity and Recovery Section reconsiders any repayment plan, except those set by the judiciary system, if circumstances warrant.Payments set by the court are legally binding and FSSD Benefit Integrity and Recovery Section does not have the authority to reset those payments.

(df) Referrals for Treasury Offset Program (TOP).If the client fails to pay the overpayment claims or payments have become delinquent, the FSSD Overpayment Benefit Integrity and Recovery Section will make referrals makes a referral to TOP.

(1) Criteria for TOP.The criteria for state and federal tax offsets are the:

(A) amount owed must be at least $25;

(B) claim is under ten years delinquent except for judgment claims;

(C) claim is delinquent by 180 days;

(D) overpayment claim is not part of a bankruptcy stay or under litigation or review;

(E) client received the original notification of the debt; and

(F) overpayment claim is not being collected through allotment reduction, also known as recoupment, or under an approved repayment plan.

(2) Notification of TOP.The FSSD Overpayment Benefit Integrity and Recovery Section notifies individuals a person of any intended referral to TOP and mails the notices as the overpayment claim meets the criteria in paragraph (1) of this subsection and 60 calendar days prior to referring the overpayment claim to TOP.The Overpayment Section mails TOP notices to individuals notice is mailed to the household at the address provided by United States Department of Agriculture (USDA), Food and Nutrition Service.Information contained in the notice includes:

(A) the individual's person's Social Security number;

(B) the citation of the statutory authority for the offset;

(C) the instructions on how to pay the claim;

(D) the individual's person's right to request a review;

(E) all TOP exemptions and restrictions;

(F) information regarding spousal protection from offset;

(G) a statement that all adult household members who were members when the overpayment occurred are liable for repayment of the food stamp benefit overpayment claim; and

(H) the individual's person's right to review applicable records.

(3) Request for review of intended action.Individuals A person whose food stamp benefit overpayment claim(s) are being claim is referred to TOP may ask for a review of the intended action.The individual's person's contention that the claim is not past due or legally enforceable is the basis for the review.

(A) A claim is not past due and legally enforceable if the person:

(i) claim has been paid and the individual proves it the claim has been paid;

(ii) individual cited for offset is not the person who owes the claim;

(iii) individual substantiates bankruptcy action; or

(iv) individual denies he or she was informed of the overpayment claim and a review of Oklahoma Department of Human Services files substantiates the denial.

(B) The client must request the review within 60 calendar days of the TOP notice date.FSSD Overpayment Benefit Integrity and Recovery Section sends written notification of the review decision to individuals persons requesting reviews.The notice informs individuals the person requesting a review why the overpayment is or is not being referred to TOP and further review rights to which they are he or she is entitled.

(C) The individual person can avoid referral to TOP if the individual person pays the overpayment claim in full or a payment specified by the FSSD Overpayment Benefit Integrity and Recovery Section along with an acceptable repayment agreement by is received within 60 calendar days from the date of the TOP notice.

INSTRUCTIONS TO STAFF 340:50-15-6

Issued 6-1-08

1.If the court has ruled the client is to make specific monthly payments, the payments cannot be renegotiated.The court ruling is legally binding until the debt is paid in full.If the court has set restitution of the claim at a lesser amount than the established overpayment claim, the court's amount is the restitution amount and satisfies the court's requirement's.The full amount of the overpayment claim established by the Oklahoma Department of Human Services (OKDHS) is the amount owed to OKDHS per Section 171 of Title 56 of the Oklahoma Statutes.

340:50-15-7. Suspension of collection efforts

Revised 12-1-01 6-1-08

(a) The Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section suspends collection action on cases no longer receiving food stamp benefits when the:

(1) head of household is deceased and there are no remaining adult household members responsible for the overpayment;

(2) household cannot be located; or

(3) cost of further collection action is likely to exceed the amount that can be recovered.

(b) FSSD Overpayment Benefit Integrity and Recovery Section may:

(1) reopen debts held in suspension based on changes in household circumstances.FSSD Overpayment; or

(2) initiates initiate reduction in the food stamp allotment benefit if the client reapplies and becomes eligible in the future.

340:50-15-9. Termination of collection of food stamp benefit debt

Revised 12-1-01 6-1-08

In the case of repayment in full, the household and the county human services center are notified that the debt has been satisfied.

PART 3. FRAUD

340:50-15-25.Cases referred for intentional program violation determination

Revised 12-1-01 6-1-08

(a) Cases determined by administrative disqualification hearing (ADH).For a determination of intentional program violation, Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section and DHS Oklahoma Department of Human Services (OKDHS) Office of Inspector General (OIG) staff make referrals for an ADH to the DHS OKDHS Appeals Unit.The cases referred contain documentary evidence of intentional program violation, but do not warrant civil or criminal prosecution.

(1) Waiving of ADH.Clients A client suspected of intentional program violation may choose to waive their his or her rights to an ADH.The client must complete and sign Form H-S-13A 080P016E, Administrative Disqualification Hearing Waiver, if the client requests a waiver.A waiver of the hearing subjects the client to the same penalties as if the hearing process determined intentional program violation.

(2) Penalties for intentional program violation. When theADH results in an intentional program violation determination or the client waives his or her right to the hearing process, the FSSD Overpayment Benefit Integrity and Recovery Section imposes the penalties in (A) - (B) of this paragraph.

(A) Disqualification.

(i) Notification.FSSD Overpayments Benefit Integrity and Recovery Section sends Form ADM-S-15 08AD019E, Program Penalty/ Disqualification Notice, to the disqualified member.Form ADM-S-15 08AD019E includes information regarding the remaining household members' eligibility.

(ii) Period of disqualification.The period of disqualification for an individual is one year for the first violation, two years for the second violation, and permanently for the third violation.Any person disqualified for intentional program violation prior to April 1, 1983, is considered to have one violation regardless of the number of prosecutions.An individual A person is disqualified for a period of ten years if the individual person is found to have made a fraudulent statement or representation with respect to identity or place of residence in order to receive multiple benefits simultaneously under the Food Stamp Program.

(iii) Disqualification effective date.Disqualification begins the first possible effective month following the date of Form ADM-S-15 08AD019E, or the date specified on the ADH decision letter.Once the disqualification begins, it runs continuously until the end of the period imposed.

(iv) Disqualification computation. Either the social services specialist worker or FSSD overpayment Benefit Integrity and Recovery staff remove removes the disqualified person from the household size.The social services specialist worker counts the resources and gross income of the disqualified person in their entirety as available to the remaining household members and allows all applicable deductions for remaining household members.¢ 1The computation used in this unitensures that the household is prohibited from receiving an increase in benefits due to disqualification of a household member for an intentional program violation.

(B) Repayment.Clients A client must repay food stamp benefit overpayments regardless of any disqualification penalty.FSSD Overpayment Benefit Integrity and Recovery Section notifies the client of the necessity for making a repayment plan by Form FSP-18-B 080P118E, Food Stamp Repayment Agreement.The options for the repayment plan are the same as those listed in OAC 340:50-15-6.

(b) Cases determined by a judicial court.The FSSD Overpayment Benefit Integrity and Recovery Section refers all cases suspected of intentional program violation not referred for administrative disqualification hearings to OIG.The Overpayment Section makes referrals to OIG for to make a determination of whether judicial court action is feasible.

(1) DHS OKDHS staff must not discuss the overpayment claim with the client until court action is completed or the FSSD Overpayment Benefit Integrity and Recovery Section notifies the county office human services center (HSC) of any action to be taken.Local staff forwards further information or directs client inquiries to the FSSD Overpayment Benefit Integrity and Recovery Section, State Office.

(2) A court of appropriate jurisdiction may find one or more individuals persons of a in the household guilty of obtaining food stamp benefits by fraudulent means.The court may charge the individual person with either a misdemeanor or felony depending on the amount of food stamp benefits obtained fraudulently.

(3) Procedures for disqualification penalties are the same as in cases determined by administrative disqualification hearings at (a)(2) of this Section with four the exceptions included in (A) through (D).¢ 2

(A) The court may specify the length of the disqualification.These court specified periods of disqualification override OAC 340:50-15-25 (a)(2)(ii) of this Section.

(B) An individual A person determined by a court to have committed intentional program violations of trading benefits for firearms, ammunition, explosives, or controlled substances is subject to disqualification:

(i) for two years for the first offense and permanently for the second offense involving the sale of a controlled substance for food stamp benefits; and

(ii) permanently for the first offense involving the sale of firearms, ammunition, or explosives for food stamp benefits.

(C) An individual A person convicted of trafficking food stamp benefits of $500 or more is permanently disqualified from participation in the Food Stamp Program.Trafficking includes:

(i) fraudulently using, transferring, altering, acquiring, or possessingElectronic Benefit Transfer (EBT) cards or access devices; or

(ii) presenting food stamp benefits for payment or redemption knowing the same to have been fraudulently obtained or transferred.

(D) An individual A person is disqualified from participation in the Food Stamp Program for a 10-year period if the individual person is found to have made a fraudulent statement or representation with respect to identity or place of residence in order to receive multiple benefits simultaneously under the Food Stamp Program.

(4) The court may also stipulate a repayment plan.The repayment plan cannot be renegotiated.The Overpayment Benefit Integrity and Recovery Section may refer the case back to the district attorney's office if the client fails to comply with the repayment plan.

INSTRUCTIONS TO STAFF 340:50-15-25

Revised 12-1-01 6-1-08

1.(a) See OAC 340:50-7-31 340:50-7-29(c)(1) mandates staff not to prorate the income, resources, or deductions of a disqualified person.

(b) To ensure the household is prohibited from receiving an increase in benefits, the worker must code the person as disqualified in the Family Assistance Client Services (FACS) Household tab of the Interview Notebook.

2.See OAC 340:50-15-25(a)(2).

340:50-15-27. Other penalties for misuse of benefits

Revised 6-1-03 6-1-08

Section 43 243 of Title 56 of the Oklahoma Statutes provides for state penalties due to misuse of food stamps benefits for those recipients who receive them benefits fraudulently.¢ 1Federal penalties for misuse of food stamp benefits are found in Section 15 (b) and (c) of the Food Stamp Act [7 U.S.C. § 2024].¢ 2

INSTRUCTIONS TO STAFF 340:50-15-27

1.Oklahoma Statutes stipulate any person who receives food stamps benefits in a fraudulent situation fraudulently shall be guilty of a misdemeanor if the amount of food stamps or coupons is $500 or be imprisoned at the discretion of the (state) court.Also, if one is found guilty of a felony, food stamps or coupons obtained or transferred in excess of $500 and upon conviction shall be fined not more than $5,000 or be imprisoned for not more than two years or by both such fine and imprisonment at the discretion of the court.In addition, federal law provides grounds for potential federal prosecution of coupon abuse.

2.(a) Section 15(b) of the Food Stamp Act states, "Whoever knowingly uses, transfers, acquires, alters, or possesses coupons or authorization cards in any manner not authorized by this Act or the regulations issued pursuant to this Act shall, if such coupons or authorization cards are of the value of $100 or more, be guilty of a felony and shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than five years, or both, or if such coupons or authorization cards are of a value of less than $100, shall be guilty of a misdemeanor and shall, upon conviction thereof, be fined not more than $1,000 or imprisoned for not more than one year, or both."

(b) Section 15(c) of the Food Stamp Act states, "Whoever presents, or causes to be presented, coupons for payments or redemption of the value of $100 or more, knowing the same to have been received, transferred, or used in any manner in violation of the provisions of the Act or the regulations issued pursuant to this Act shall be guilty of a felony and shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than five years, or both, or, if such coupons are of a value of less than $100, shall be guilty of a misdemeanor and shall, upon conviction there of, be fined not more than $1,000 or imprisoned for not more than one year, or both."

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