PROPOSED RULES
SOCIAL AND HEALTH SERVICES
(Economic Services Administration)
Original Notice.
Preproposal statement of inquiry was filed as WSR 01-01-069.
Title of Rule: WAC 388-410-0020 Food assistance overpayments, 388-410-0025 Food assistance overpayment liability, and 388-410-0030 Food assistance overpayment amount and recovery.
Purpose: Conforms to federal regulations requiring allotment reduction to recover administrative error overpayments from households participating in food assistance programs. Allows states to not establish overpayments $125 or less, if the household is not currently participating in food assistance programs.
Statutory Authority for Adoption: RCW 74.04.510.
Statute Being Implemented: 7 C.F.R. 273.18.
Summary: States are required to recover administrative error overpayments through allotment reduction. For households not participating in food assistance programs, overpayments of $125 or less will not be established.
Reasons Supporting Proposal: Federal regulations at 7 C.F.R. 273.18.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Joan Wirth, 1009 College Street S.E., Lacey, WA 98503, (360) 413-3073.
Name of Proponent: Department of Social and Health Services, governmental.
Rule is necessary because of federal law, 7 C.F.R. 273.18.
Explanation of Rule, its Purpose, and Anticipated Effects: Requires allotment reductions for food assistance households with administrative overpayments. Overpayments $125 or less will not be established for households not currently participating in food assistance programs.
With implementation, administrative error overpayments will be recovered at less cost. Smaller ($125 or less) overpayments (belonging to households not currently receiving benefits) will not be established due to cost considerations.
Proposal Changes the Following Existing Rules: WAC 388-410-0020, 388-410-0025, and 388-410-0030, this proposal requires states to recover administrative error overpayments through allotment reduction. In addition, overpayments $125 or less will not be established for households not currently participating in food assistance programs.
No small business economic impact statement has been prepared under chapter 19.85 RCW. This rule does not impact small business. The Department of Social and Health Services is submitting this rule to comply with federal regulations at 7 C.F.R. 273.18.
RCW 34.05.328 does not apply to this rule adoption. This section does not apply to rules incorporating without material change federal statutes or regulations.
Hearing Location: Blake Office Building East, 4500 10th Avenue S.E., Rose Room, Lacey, WA 98503, on June 26, 2001, at 10:00 a.m.
Assistance for Persons with Disabilities: Contact Kelly Cooper by June 21, 2001, phone (360) 664-6094, TTY (360) 664-6178, e-mail coopeKD@dshs.wa.gov.
Submit Written Comments to: Identify WAC Numbers, Kelly Cooper, Rules Coordinator, Rules and Policies Assistance Unit, P.O. Box 45850, Olympia, WA 98504-5850, fax (360) 664-6185, by June 26, 2001.
Date of Intended Adoption: No sooner than June 27, 2001.
May 15, 2001
Brian H. Lindgren, Manager
Rules and Policies Assistance Unit
2945.3(1) An administrative error overpayment defined as an overpayment caused solely by:
(a) The department's action or failure to act causing an incorrect determination of categorical eligibility (CE); and
(b) A resulting claim which can be computed based on a change in net income or assistance unit size.
(2) An inadvertent household error overpayment defined as any overpayment caused by either misunderstanding or unintended error by a household that is:
(a) The result of Social Security Administration (SSA) action or failure to act causing an incorrect determination of CE; and
(b) A resulting claim which can be computed based on a change in net income or assistance unit size.
(3) An intentional program violation overpayment defined as any overpayment resulting from an intentional program violation as specified under chapter 388-446 WAC.)) (1) If you have an overpayment, you received more benefits than you were supposed to receive. Your overpayment can be:
(a) An administrative error overpayment if caused by an action or failure to take action by the department; or
(b) An inadvertent household error overpayment if caused by either your misunderstanding or unintended error; or
(c) An intentional program violation overpayment if caused by something you did on purpose. See chapter 388-446 WAC.
(2) We set up an administrative overpayment when we:
(a) Discover the overpayment within twelve months of its occurrence; and
(b) Mail the household a recovery demand letter and the overpayment calculation within twenty-four months of discovery date.
(3) We set up an inadvertent household error overpayment when we:
(a) Discover the overpayment within twenty-four months of its occurrence; and
(b) Mail the household a recovery demand letter and the overpayment calculation within twenty-four months of discovery date.
(4) We set up an intentional program violation overpayment when we:
(a) Discover the overpayment within seventy-two months of its occurrence; and
(b) Mail the household a recovery demand letter and the overpayment calculation within twenty-four months of discovery date.
[Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057 and 74.08.090. 98-16-044, 388-410-0020, filed 7/31/98, effective 9/1/98.]
(a) Receiving more food assistance benefits than it was entitled to receive; or
(b) Containing an adult member who was an adult member of another assistance unit receiving more benefits than it was entitled to receive.
(2) All persons who were adult members of a food stamp assistance unit at the time of a food stamp overpayment are jointly and separately liable and are subject to collection action.
(3) A food assistance administrative error claim or inadvertent household error claim cannot be established unless the assistance unit:
(a) Signed the application form; and
(b) Was certified by the community service office (CSO) in the correct catchment area; or
(c) Cashed an expired food coupon authorization card that was altered by the assistance unit.
(4) An administrative error overpayment is established when:
(a) Discovered within twelve months of its occurrence; and
(b) The household is mailed a recovery demand letter and the overpayment is calculated within twenty-four months of discovery.
(5) An inadvertent household error overpayment is established when:
(a) Discovered within twenty-four months of its occurrence; and
(b) The household is mailed a recovery demand letter and the overpayment is calculated within twenty-four months of discovery.
(6) An intentional program violation overpayment is established when:
(a) Discovered within seventy-two months of its occurrence; and
(b) The household is mailed a recovery demand letter and the overpayment is calculated within twenty-four months of discovery)) When your assistance unit receives more food assistance benefits than it was entitled to receive, the department sets up an overpayment claim.
(2) All adult members of your assistance unit at the time of a food assistance overpayment are each responsible for the total overpayment amount until the overpayment is paid. You remain responsible even if you change assistance units.
[Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057 and 74.08.090. 98-16-044, 388-410-0025, filed 7/31/98, effective 9/1/98.]
(a) The allotment actually authorized; and
(b) The allotment that should have been authorized.
(2) The monthly allotment the assistance unit should have been authorized is determined counting the actual income received by the assistance unit.
(3) A food assistance overpayment can be reduced by a food assistance underpayment if the underpayment was:
(a) Not previously restored; or
(b) Already used to reduce an overpayment.
(4) All inadvertent household or administrative error claims are subject to collection unless:
(a) The entire overpayment claim is cancelled by an underpayment;
(b) The administrative error claim is less than one hundred dollars;
(c) The inadvertent household error claim is less than thirty-five dollars;
(d) The department cannot locate the liable household; or
(e) An attempt to collect will prejudice an inadvertent household error case referred for possible prosecution or administrative disqualification.
(5) An intentional program violation is subject to collection action against the liable assistance unit unless:
(a) The assistance unit has repaid the overpayment;
(b) The assistance unit cannot be located; or
(c) The department determines collection action will prejudice the case against an assistance unit member referred for prosecution.
(6) An assistance unit or assistance unit member may repay an overpayment by:
(a) A lump sum;
(b) Regular installments under a payment schedule as specified in subsection (7) of this section; or
(c) Allotment reduction.
(7) Currently participating food assistance units liable for an inadvertent household error or intentional program violation overpayment may repay by a negotiated monthly installment amount. The repayment amount must not be less than the amount that could be recovered through allotment reduction. The payment schedule may be renegotiated by either the department or the assistance unit member.
(8) Food assistance units repaying overpayments by allotment reduction will repay:
(a) An administrative error overpayment by an amount agreed to by the assistance unit;
(b) An inadvertent household error overpayment by the greater of:
(i) Ten percent of the assistance unit's monthly allotment; or
(ii) Ten dollars per month.
(c) An intentional program violation overpayment by the greater of:
(i) Twenty percent of the household's monthly allotment; or
(ii) Ten dollars per month.
(9) Involuntary reduction of the allotment an assistance unit is currently receiving is authorized when the household is liable for an inadvertent household error; and
(a) Fails to notify the department of their chosen repayment agreement; or
(b) Fails to request a fair hearing and continued benefits within twenty days of receipt of notice from the department of collection action.
(10) An assistance unit that is liable for an intentional program violation claim must chose a repayment agreement within ten days of receipt of notice of collection action. Failing to do so will subject the assistance unit to involuntary reduction of their current food assistance allotment.
(11) A household that fails to meet the terms of an agreed repayment schedule is subject to involuntary reduction of their current food assistance allotment unless:
(a) Overdue payments are caught up; or
(b) The household requests renegotiation of the payment schedule.
(12) Collection action is suspended when:
(a) A liable household member cannot be located; or
(b) Cost of further collection action is likely to exceed the amount that can be recovered.
(13) The amount of an overpayment can be negotiated if the amount offered approximates the net amount expected to be collected prior to the expiration of the collection period by statute.
(14) Prior to the expiration of the collection period, unpaid overpayments are written off and any applicable liens are released when:
(a) There is no further possibility of collection;
(b) There was an accepted offer of compromise leaving an unpaid balance after payment; or
(c) There is an unpaid balance remaining after a case has been in suspense for three consecutive years.
(15) Food assistance overpayments occurring in another state may be collected in this state if the originating state does not intend to pursue collection and provides the following:
(a) Documentation of the overpayment computation and overpayment notice prepared for the client; and
(b) Proof of service showing the client received the overpayment notice)) The department calculates the amount of your food assistance overpayment by counting the difference between:
(a) The benefits actually authorized; and
(b) The benefits that should have been authorized.
(2) We determine the monthly benefits you should have been authorized by counting the actual income received by your assistance unit.
(3) We reduce your overpayment by an underpayment if the underpayment amount was:
(a) Not previously returned to you; or
(b) Already used to reduce a different overpayment.
(4) We establish and take action to collect all overpayments discovered through the department's quality control system regardless of:
(a) The overpayment amount; and
(b) Whether or not you are currently receiving food assistance.
(5) Except for subsection (4) of this section, we take action to collect all inadvertent household or administrative error claims unless:
(a) The entire overpayment claim is canceled by an underpayment;
(b) The claim is one hundred twenty-five dollars or less and the claim cannot be recovered by benefit reduction;
(c) The department cannot locate a responsible assistance unit member; or
(d) The department determines collection action will negatively affect an inadvertent household error case referred for possible prosecution or administrative disqualification.
(6) We take action to collect an intentional program violation overpayment unless:
(a) Your assistance unit has repaid the overpayment;
(b) Responsible assistance unit members cannot be located; or
(c) The department determines collection action will negatively affect the case against an assistance unit member referred for prosecution.
(7) You may repay an overpayment by:
(a) A lump sum;
(b) Regular installments under a payment schedule as specified in subsection (8) of this section; or
(c) Benefit reduction.
(8) Currently participating assistance units responsible for an overpayment may repay by a negotiated monthly installment amount. The repayment amount must be greater than the amount that could be recovered through benefit reduction. The payment schedule may be renegotiated by either the department or the assistance unit.
(9) We automatically reduce your monthly benefits when you are responsible for an administrative or inadvertent household error; and you:
(a) Fail to notify us of your chosen repayment agreement; or
(b) Fail to request a fair hearing and continued benefits within ten days of receipt of the department's collection action notice.
(10) Except for your initial benefits when first certified, we can reduce your monthly benefits to repay the overpayment.
(a) If you have an administrative or inadvertent household error overpayment, we reduce your benefits by the greater of:
(i) Ten percent of your monthly benefits; or
(ii) Ten dollars per month.
(b) If you have an intentional program violation overpayment, we reduce your benefits by the greater of:
(i) Twenty percent of your monthly benefits; or
(ii) Twenty dollars per month.
(11) If you are responsible for an intentional program violation claim, you must chose a repayment agreement within ten days of receipt of your collection action notice. Failing to do so will subject you to involuntary reduction of your current benefit amount.
(12) We automatically reduce your current food assistance benefits when you fail to meet the terms of an agreed repayment schedule unless you:
(a) Catch up with all overdue payments; or
(b) Request re-negotiation of the payment schedule.
(13) If you are no longer receiving food assistance, we must refer your overpayment claim for federal collection if the claim is delinquent for one hundred eighty or more days. Federal collection includes reducing your income tax refund or social security benefits. Your claim is delinquent if you have not:
(a) Repaid the entire overpayment by the due date; or
(b) Met the requirements of your scheduled repayment agreement.
(14) If you are no longer receiving food assistance, we can garnish your wages, file a lien against your personal or real property, or otherwise access your property to collect the overpayment amount.
(15) We suspend collection action when:
(a) A responsible assistance unit member cannot be located; or
(b) Cost of further collection action is likely to exceed the amount that can be recovered.
(16) We can negotiate the amount of an overpayment if the amount offered approximates the net amount expected to be collected prior to the end of the legal collection period.
(17) At the end of the collection period, we write off unpaid overpayments and release any applicable liens when:
(a) There is no further possibility of collection;
(b) There was an accepted offer of compromise leaving an unpaid balance after payment; or
(c) There is an unpaid balance remaining after a case has been in suspense for three consecutive years.
(18) We may collect an assistance unit's overpayments from another state if the originating state does not intend to pursue collection and provides the following:
(a) Documentation of the overpayment computation and overpayment notice prepared for the client; and
(b) Proof of service showing the client received the overpayment notice.
[Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057 and 74.08.090. 98-16-044, 388-410-0030, filed 7/31/98, effective 9/1/98.]