Ariz. Admin. Code § 6-14-308

Current through Register Vol. 30, No. 50, December 13, 2024

Section R6-14-308 - Claim Compromise

A. In accordance with the Department's Claim Compromise policy and procedures as contained in the Arizona Cash and Nutrition Assistance Policy manual, the Department may compromise an entire claim or any portion of a claim if it can be reasonably determined that a household's economic circumstances dictate that the claim will not be paid in three years.

B. For purposes of a claim compromise "household" means the following persons who are residing together:

1. Adults who were members of the Nutrition Assistance household for which the claim was established, and who were adults at the time the claim was established, and

2. Minor children for whom adult household members are responsible.

C. When a household reports that it is unable to pay the claim in the equal monthly increments specified in R6-14-307(A) or (B), the Department shall inform the household that it may request a one-time compromise of the claim and shall provide the household with instructions for requesting a compromise. The Department may compromise the claim by reducing the claim amount and the resulting monthly payment amount when:

1. The household contacts the Department, orally or in writing, and requests a compromise of the claim,

2. The claim was established as an Agency Error claim or an Inadvertent Household Error claim,

3. There is no pending Appeal of the claim,

4. The Department has not previously approved a compromise of the claim, and

5. The Department approves the compromise request as provided in this rule.

D. When the Department receives a compromise request, and there is no pending appeal of the claim for which the compromise is requested, the Department shall send the household a Financial Statement form requesting necessary information and verification required for the Department to determine eligibility for a claim compromise.

E. The household must return the completed Financial Statement with requested information and verification to the Department no later than the thirtieth calendar day following the date that the Department mailed or otherwise transmitted the Financial Statement to the household. When the household requests assistance or additional time, the Department shall allow an additional thirty calendar days for the household to provide a completed Financial Statement. The Department shall deny the compromise claim request when the Financial Statement is not provided by the household by the thirtieth calendar day or the agreed upon extension date, unless the delay was for good cause. Good cause includes circumstances beyond the household's reasonable control such as illness, illness of another household member requiring the presence of the adult member, or a household emergency.

F. When the Financial Statement is timely provided to the Department, and all information and verification is complete, the Department shall complete the determination of eligibility for a compromise and send a notice no later than the twentieth working day, as defined in R6-14-402, following the date that the Department received the Financial Statement and all required information and verification.

G. When the compromise request is approved the Department shall notify the household of the compromised claim amount, the repayment plan for the new claim amount, and the household's right to file an appeal of the Department's action. The compromised claim amount shall be final unless modified by an appeal hearing decision.

1. The household shall pay a monthly payment in one of the following amounts until the compromised claim balance is paid in full:

a. An amount equal to the balance of the compromised claim amount, divided by 36.

b. When the amount in (1)(a) is equal to or less than $10.00, the monthly payment shall be $10.00.

c. When the household is currently participating in the Nutrition Assistance program, the Department shall reduce the household's monthly Nutrition Assistance benefit allotment by the greater of $10 or 10 percent.

d. When the household is no longer participating in the Nutrition Assistance program, the household shall be responsible to pay the original claim compromise monthly payment amount calculated in accordance with R6-14-308(G)(1)(a) and (b). The Department shall notify the household of the claim compromise monthly payment obligation.

2. The approval of a compromise request shall apply only to the household that requested the compromise and does not affect the responsibility of any person:

a. Who is not a member of the household that requested the compromise, and

b. Who is responsible for paying the claim under 7 CFR 273.18(a)(4).

H. When the compromise request is denied the Department shall notify the household of the denial and the household's right to file an appeal of the Department's action.

I. The household may appeal the following actions or inaction related to a request for a compromise:

1. The Department's inaction or untimely action on processing the compromise request;

2. The amount of the approved compromise balance; or

3. A denial of the compromise request.

Ariz. Admin. Code § R6-14-308

R6-14-308 recodified from A.A.C. R6-3-2108 effective February 13, 1996 (Supp. 96-1). Section expired under A.R.S. §1056(E) at 11 A.A.R. 1450, effective February 28, 2005 (Supp. 05-1). New Section made by emergency rulemaking at 24 A.A.R. 2081, effective July 6, 2018 for for 180 days (Supp. 18-3). Amended by final rulemaking at 26 A.A.R. 263, effective 1/21/2020.