387.19 Claims against households.
(a) All adult household members will be jointly and severally liable for the value of any over-issuance of benefits to the household. Local departments must establish a claim(s) against any household that has received more food stamp benefits than it is entitled to receive or any household which contains an adult member who was an adult member of another household that received more food stamp benefits than it was entitled to receive.
(1) Collection of claims against any or all adult members of a household will be initiated at the time the over-issuance occurred. If a change in household composition occurs, collection action must be pursued against any household which has a member who was an adult member of a household that received the over-issuance. The amount of the claim may also be offset against restored benefits owed to any household which contains a member who was an adult member of the household at the time the over-issuance occurred. Under no circumstances can the collection exceed the amount of the claim.
(2) Collection of overissuances. A social services district must collect any overissuance of food stamp benefits issued to a household by:
(i) direct payment;
(ii) reducing the allotment of the household as provided in paragraph (5) of this subdivision;
(iii) withholding amounts from unemployment compensation from a member of the household, provided State computer supports are in place;
(iv) recovering from Federal pay or a Federal income tax refund, provided State computer supports are in place; or
(v) any other means as directed by the State.
Social services districts may use additional means to collect overissuances provided such means are cost effective and do not violate any other provisions of this Part.
(3) Suspending collection of inadvertent household or administrative error claims.
(i) Social services districts may suspend collection action on an inadvertent household or administrative error claim if no collection action was initiated because of one of the following conditions:
(a) the total amount of the claim is less than $35, and the claim cannot be recovered through benefit level reduction;
(b) the social services district has documentation which shows that the household cannot be located; or
(c) the case is being referred for possible prosecution or for administrative disqualification and the social services district determines that collection action would prejudice the case.
(ii) The collection of an inadvertent household error claim against a non-participating household or the collection of any administrative error claim may be suspended if collection action has already been initiated and at least one demand letter has been sent and:
(a) The household cannot be located; or
(b) The cost of further collection action is likely to exceed the amount that can be recovered.
(4) Suspending collection of intentional program violation claims.
(i) A social services district may suspend collection action on an intentional program violation claim at any time if it has documentation that the household cannot be located.
(ii) The collection of any intentional program violation claim against a non-participating household may be suspended if the cost of further collection action is likely to exceed the amount that can be recovered and demand letters have been sent as follows:
(a) claims under $100 - at least one demand letter;
(b) claims between $100 and $400 - at least two demand letters; or
(c) claims of more than $400 - at least three demand letters.
(5) Recoupment of claims through reduction of current benefits must be applied as follows:
(i) for an inadvertent household error or an administrative error as defined in section 387.1 of this Part--10 percent of the household's monthly allotment or $10 per month, whichever is greater; and
(ii) for an intentional program violation as defined in section 387.1 of this Part--20 percent of the amount the household would have received if the household member(s) had not be disqualified or $10 per month, whichever is greater.
(6) Terminating collection of claims. Social services districts may determine a claim to be uncollectable after it has been suspended for a period of three years. A suspended or terminated claim must be offset against restored benefits as provided in section 387.18(f) of this Part.
(b) Calculating the amount of claims.
(1) Inadvertent household error and administrative error claims.
(i) For each month that a household received an overissuance due to an inadvertent household error or administrative error, the social services district which issued the food stamps must determine the correct amount of food stamp benefits the household was entitled to receive. The amount of the inadvertent household or administrative error claim must be calculated based on the amount of the overissuance which occurred during the 12 months preceding the date the overissuance was discovered. In cases involving reported changes, the social services district must determine the month the overissuance initially occurred as follows:
(a) If, due to an inadvertent error on the part of the household, the household failed to report a change in its circumstances within the required timeframes, the first month affected by the household's failure to report is the first month in which the change would have been effective had it been timely reported. However, in no event may the social services district determine as the first month in which the change would have been effective any month later than two months from the month in which the change in household circumstances occurred.
(b) If the household timely reported a change but the social services district did not act on the change within the required timeframes, the first month affected by the district's failure to act is the first month the district would have made the change effective had it acted timely. However, in no event may the social services district determine as the first month in which the change would have been effective any month later than two months from the month in which the change in household circumstances occurred. If a notice of adverse action was required but not provided, the social services district must assume for the purpose of calculating the claim that the maximum advance notice period would have expired without the household requesting a fair hearing under Part 358 of the Title.
(ii) If the household received a larger allotment than it was entitled to receive, the social services district must establish a claim against the household equal to the difference between the allotment the household received and the allotment the household should have received.
(iii) After calculating the amount of the inadvertent household or administrative error claim, the social services district must offset the amount of the claim against any amounts which have not yet been restored to the household. The social services district must then initiate collection action for the remaining balance, if any.
(2) Intentional program violation claims.
(i) For each month that a household received an overissuance due to an act of intentional program violation, the social services district must determine the correct amount of food stamp benefits, if any, the household was entitled to receive. The amount of the intentional program violation claim must be calculated retroactive to the month the act of intentional program violation occurred, regardless of the length of time that elapsed until the determination of intentional program violation was made. However, the social services district must not include in its calculation any amount of the overissuance which occurred in a month more than six years from the date the overissuance was discovered. If the household member is determined to have committed an intentional program violation by intentionally failing to report a change in its household's circumstances, the first month affected by the household's failure to report is the first month in which the change would have been effective had it been reported.
(ii) If the household received a larger allotment than it was entitled to receive, the social services district must establish a claim against the household equal to the difference between the allotment the household received and the allotment the household should have received.
(iii) When determining the amount of benefits the household should have received, the social services district must not apply the 20 percent earned income deduction to that portion of the earned income which the household intentionally failed to report.
(iv) Once the amount of the intentional program violation claim is established, the social services district must offset the claim against any amount of lost benefits that have not yet been restored to the household.