Ala. Admin. Code r. 660-4-4-.03

Current through Register Vol. 43, No. 1, October 31, 2024

Section 660-4-4-.03 - Action On Overpayment As A Result Of Intentional Program Violation

(1) If an overpayment occurs and an intentional program violation is suspected, the county may initiate action for an administrative disqualification hearing or appropriate court action. After notification of the impending action, the suspect may negotiate to waiver his/her rights and become immediately subject to disqualification and collection action.

(2) Individuals found to have committed an IPV either through an ADH, by a court of appropriate jurisdiction, or by a signed waiver or consent agreement, shall be ineligible to participate in the food assistance program:

* For a period of twelve months for the first IPV.

* For a period of twenty-four months for the second IPV.

* Permanently for the third occasion of any IPV.

* Individuals found by a federal, state or local court to have used or received benefits in a transaction involving the sale of a controlled substance shall be ineligible to participate in the program for a period of twenty-four months upon the first occasion of such violation and permanently upon the second occasion of such violation.

* Individuals found by a federal, state or local court to have used or received benefits in a transaction involving the sale of firearms, ammunition or explosives shall be permanently ineligible to participate in the program upon the first occasion of such violation.

* Individuals convicted by a federal, state or local court having trafficked benefits for an aggregate amount of $500 or more shall be permanently ineligible to participate in the food stamp program upon the first occasion of such violation.

* Individuals found to have made a fraudulent statement or representation with respect to their identify and/or place of residence in order to receive multiple benefits simultaneously shall be ineligible to participate in the Food Stamp Program for a period of 10 years.

There are situations where a client is suspected of multiple Intentional Program Violations over a period of time. Multiple violations may be the subject of a single hearing. The client may be found guilty of each violation separately, but only one disqualification penalty shall be imposed.

* When there are two or more separate program violations causing

* overissuances at different times, but discovered at the same time, one claim shall be established and one penalty imposed when fraud is confirmed.

* When there have been two program violations occurring at essentially the same time, but the second violation is not discovered until the client is already serving a disqualification period, a second disqualification shall not be imposed. This is due to the fact that a disqualification for that period of time is already being served.

* The second violation must have occurred after the client was interviewed about the first violation and advised of penalties for subsequent violations before a second disqualification can be imposed. However, there must be a hearing to determine what classification should be given to this second violation.

* Should a second program violation occur after the claim for the first program violation has been established, a new claim shall be established. The next level of disqualification will be imposed if the household is found guilty of IPV.

* If a second disqualification, for whatever reason, is imposed while a client is currently serving a disqualification, the second disqualification shall run concurrently with the first disqualification.

If a court fails to impose a disqualification or a disqualification period for any IPV case, the agency shall impose the appropriate disqualification penalty specified in this section.

One or more IPVs that occurred prior to April 1, 1983 shall be considered as only one previous disqualification when determining the appropriate penalty to impose in a case under consideration.

Only the individual found to have committed the IPV, or who signed the waiver or the consent agreement shall be disqualified and not the entire household.

Although the individual is disqualified, the household, as defined in Section 100, is responsible for making restitution for the amount of any overpayment. All IPV claims must be established and collected in accordance with established procedures.

The Disqualified Recipient Subsystem (DRS), found on the Comprehensive Claims System's fraud menu, allows states to share disqualification records. This system should be accessed to determine if the individual to be disqualified has any prior Intentional Program Violations in order to determine the appropriate period of disqualification for the current offense.

Once an individual has been found guilty of an IPV, the appropriate disqualification penalty should be registered on the Comprehensive Claims System Disqualification Add screen for tracking of the disqualification imposed and to allow adding the disqualification to the DRS.

(3) Repayment may be accepted in the same fashion as for inadvertent overpayment except if the household fails to negotiate a repayment agreement, a prescribed amount will automatically be withheld from the household allotment in all cases involving an active household. In addition, any negotiated amount may not be less than the prescribed amount of the allotment withholding.

(4) No household may benefit materially as a result of the disqualification of a household member.

Ala. Admin. Code r. 660-4-4-.03

Effective June 28, 1983.

Amended by Alabama Administrative Monthly Volume XXXVII, Issue No. 01, October 31, 2018, eff. 11/23/2018.

Author: Jeremy Barnes

Statutory Authority:7 C.F.R. 273.16, 273.18; Code of Ala. 1975, § 38-2-6.