Statutes, codes, and regulations
Colorado Administrative Code
Department 2500 - Department of Human ServicesDivision 2503 - Income Maintenance (Volume 3)
Rule 9 CCR 2503-6 - COLORADO WORKS PROGRAM
Section 9 CCR 2503-6-3.609 - Colorado Works Notice, Payments, Overpayment, Intentional Program Violations and Fraud, Dispute Resolution, Appeal and State Level Fair Hearing

9 Colo. Code Regs. § 2503-6-3.609

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Current through Register Vol. 47, No. 7, April 10, 2024
Section 9 CCR 2503-6-3.609 - Colorado Works Notice, Payments, Overpayment, Intentional Program Violations and Fraud, Dispute Resolution, Appeal and State Level Fair Hearing
3.609.1Notice
A. Each client of Colorado Works shall receive prior written notice of any agency action affecting his or her eligibility for or receipt of grant payments.
1. The client shall be notified in writing of county department approval of:
a. An application for Colorado Works.
b. Any change in the amount of grant payment.
c. The right to a county conference and/or state level fair hearing if the client is dissatisfied with the effective date of eligibility, or the amount or type of assistance authorized.
2. A client shall be given notice of any action by the county department, or any person or agency acting on its behalf, which adversely affects the client's eligibility for, or right to grant payments authorized under the Colorado Works program. Failure to give notice of an adverse action shall be grounds for setting aside the action on appeal. The notice must meet the following standards:
a. The notice must be in writing; and,
b. It must describe clearly and in plain language the action to be taken and the reason(s) for the action; and,
c. It must refer by number to the section(s) of the state department's rules that require or permit the action being taken, or cite the specific changes in federal or state law requiring the action; and,
d. It must state the effective date of the proposed action; and,
e. It must explain the client's right to request a county conference and/or state level fair hearing, the time period for requesting a conference or hearing, and the steps which must be taken to obtain a conference or hearing; and,
f. It must explain the client's right to continued grant payments and the obligation to repay if it is determined that the client was not eligible to receive them; and,
g. It must inform the client of his or her right to be represented or assisted by legal counsel, a relative, a friend, or a spokesperson of his or her choosing; and,
h. To the extent practicable, notice shall be in his or her primary language. If he or she is illiterate, the action shall also be explained verbally.
B. The county department shall notify a client of any change from his or her prior grant payment amount, the reason for the action, and the date the action becomes effective in writing.
C. Clients shall receive written timely notice, giving at least eleven (11) calendar days advance notice before any adverse action taken during the certification period, becomes effective, except as specified in section 3.609.7.C . The notice shall explain the reason for the proposed action and the date the action becomes effective.
1. When acting on a change, if the eleven (11) calendar day timely notice period can be given within the month the written timely notice is sent, the change will become effective the first day of the following month.
2. If the 11 calendar day timely notice period concludes in the following month, the change shall become effective the first day of the month after which the timely notice period concluded.
3. If the timely notice period ends on a weekend or holiday and a request for a state level fair hearing and continuation of grant payments is received the first business day after the timely notice period, the request shall be considered timely received.
4. Colorado Works grant payments must be discontinued or reduced after thirty-one (31) calendar days in the following situations:
a. The client's income exceeds the grant standard, after application of disregards.
b. All eligible dependent children in the assistance unit no longer meet the definition of living in the home.
c. A dependent child(ren) in the assistance unit no longer meet the definition of living in the home and Colorado Works is requested for the child(ren) by another caretaker.
d. An adult member of the assistance unit leaves the home and requests assistance in a new assistance unit.
e. All members of the assistance unit leave the state of Colorado to reside in another state or country.
f. An eighteen-year-old who is the only dependent child graduates from high school or stops attending school.

The thirty-one (31) day count begins on the first day of the month following the month in which the change occurred. Colorado Works benefits will be discontinued on the first day of the month following the month in which the thirty-first (31st) day falls.

An individual may be removed from the assistance unit according to D below, and prior to thirty-one (31) calendar days, when the change described in this section occurs simultaneously with a change in which adequate notice, not timely notice, is required.

D. Adequate notice, not timely notice, is required in the following situations:
1. When facts indicate an overpayment because of probable fraud or an intentional program violation and such facts have been verified to the extent possible, prior notice shall be mailed at least five (5) calendar days before the proposed effective date.
2. The client has died.
3. An adult member of the assistance unit formally requests for benefits to stop for themselves in their original assistance unit, or a caretaker who remains a part of the original assistance unit requests that they stop receiving benefits for another member who has left the home.
4. When an adult member of the assistance unit who is not the head of household requests for benefits to stop for themselves and their child(ren) when that adult makes a declaration that they have left the home due to domestic violence.
5. The client begins receiving Title-IV of the Social Security Act funds from another source such as foster care/ Title-IV kinship/adoption subsidies.
6. The client begins receiving benefits under another public assistance program which may not be received concurrently with a Colorado Works grant, such as Supplemental Security Income or Adult Financial programs.
7. At application or redetermination, when a certification period has not yet been set.
8. An adult member of the assistance unit has already received sixty months of assistance and a hardship extension has not been granted.
E. If the client's change in circumstances requires a reduction or termination of grant payments, the following action will be required:
1. Send a written timely or adequate notice, according to subsections C. and D., above.
2. If a client requests a county conference, conduct the county conference as specified in section 3.609.6 . If a client is dissatisfied with the results of the county conference and requests a state level fair hearing before an Administrative Law Judge, such a request shall be in accordance with section 3.609.7 . If a client does not request a county conference and only requests a state level fair hearing any time prior to the effective date of the timely notice, and the certification period has not expired, the client's grant payments shall be continued on the basis authorized immediately prior to the timely notice. Continued grant payments shall not be issued for a period beyond the end of the current certification period. Grant payments shall be continued until a final decision has been made by the Office Of Appeals or until the certification period ends, whichever occurs first. The county department shall explain to the client that repayment will be required for the amount of any grant payments determined by the hearing officer to have been overpaid or the continued grant payments to which the client was not eligible to receive.
3. If the certification period expires before the hearing process is completed, the client may reapply for benefits.
4. If the client does not appeal the timely notice to decrease or terminate grant payments within the timely notice period, the changes shall be made in accordance with timeframes outlined in section 3.609.1.
3.609.2Payments
A. A client shall be placed on an issuance schedule so that he or she receives grant payments on or about the same date each month once a certification period is established. Due to the effective date of eligibility, the date on which a client receives his or her initial payment need not be the date that the client must receive any subsequent payments.
1. Initial payment

The initial payment to eligible clients shall include assistance beginning with the date of application. Should the assistance unit be ineligible on the date of application, but become eligible prior to the time that a determination of eligibility is made, the initial payment shall include assistance beginning with the date on which the assistance unit became eligible.

To calculate partial month payments:

a. Determine the grant amount based on the size and composition of the assistance unit;
b. Deduct the total net countable income - this is the authorized grant amount for the entire month;
c. Determine the number of days for which payment is made and based on the table in subsection E. Below, find the decimal figure corresponding to the number of days of eligibility;
d. Multiply the authorized grant amount for the entire month by such decimal figure to determine the authorized grant amount for the partial month;
e. Subtract from authorized grant amount for the partial month any appropriate deductions, unless the authorized grant for the partial month is less than $10, in which case no payment is made. However, if the deductions from the authorized grant amount for the partial month results in an amount less than $10, such lesser amount shall be paid except when the amount is less than $1.00.

To calculate the partial month payments, the following table shall be used:

Days

Standard

Days

Standard

Days

Standard

1

.03288

11

.36164

21

.69041

2

.06575

12

.39452

22

.72329

3

.09863

13

.42739

23

.75617

4

.13151

14

.46027

24

.78904

5

.16439

15

.49315

25

.82192

6

.19726

16

.52603

26

.85480

7

.23014

17

.55890

27

.88768

8

.26302

18

.59178

28

.92054

9

.29590

19

.62466

29

.95342

10

.32876

20

.65754

30

.9863

2. Payment determination

For the certification period, eligibility and payment shall be determined prospectively.

B. When the county department determines that a client was ineligible for all or a part of a grant payment that the client has already received, the county department shall, subject to notice as described in 3.609.1 and these recovery rules, establish a claim, and if valid, initiate recovery.
C. If a client dies, payments to the client shall be treated as follows:
1. A client's eligibility shall end on the date of his or her death.
2. If a client dies before 12:00 a.m. on the first day of a month, no eligibility for a grant payment for the following month exists.
3. If a client dies on or after 12:00 a.m. on the first day of a month, any payment to which the person was eligible shall be maintained for release to the client's personal representative as defined in section 15-10-201(39), C.R.S., for a maximum of three (3) months. The following rules apply when a personal representative requests to receive a deceased client's last grant payment:
a. The individual claiming to be the personal representative of the deceased client must provide the court-issued letters described in section 15-12-103, C.R.S. to the county department in order to receive the deceased client's last grant payment; or
b. If the personal representative with court-issued letters presents a court order ordering the county department to pay the deceased client's last grant payment to a specific person or entity, the county department shall make the last grant payment payable to the person named in the order.
D. All payments, including partial payments, shall have any cents dropped to the nearest dollar.
E. The client has the right to decide how to use his or her grant payment. The county department shall not:
1. Impose any restriction, either direct or implied, on a client's use of his or her grant payment including, but not limited to, requesting a client to provide receipts or proof of how the money has been spent; or
2. Require the client to account for the use of the grant payment, except for the Electronic Benefits Transfer (EBT) card point of sale limitations listed in 26-2-104(2), C.R.S.; or,
3. Give assistance to creditors in the collection of the client's debts.
F. County departments shall not hold or delay the client's grant payment beyond the regular issuance date except when:
1. A final agency decision has been made authorizing the action;
2. In cases where a corrected payment is to be issued, the corrected payment shall be issued by the effective date of the original warrant and the incorrect payment shall be cancelled.
3. When the county department receives reliable information that the client no longer resides at the last known address and attempts to locate the person through the post office, relatives, friends, etc., have been unsuccessful, the client's grant payment shall be discontinued. Discontinuing the grant payment is an adverse action and notice shall be given following the policies outlined in section 3.609.1.C . If the client contacts the county department before grant payments are discontinued and provides the client's current address and all other eligibility criterion have been met, the client shall receive the grant payments they are eligible for;
4. Any grant payments issued to an Electronic Benefits Transfer (EBT) card and not accessed within two hundred seventy-four (274) days of issuance shall be expunged. The county shall reissue grant payments within 90 days of the expungement if requested by the client verbally, electronically, in person, or in writing. The county may reissue up to twelve (12) months of expunged grant payments.
G. The county department shall take prompt action to correct underpayments to clients of Colorado Works grant payments. There are two types of underpayments:
1) grant payment(s) received by or for a client that is less than the amount which the client should have received but not a denial or termination, or
2) the failure of the county department to issue a grant payment to an eligible client when such payment should have been issued (i.e., denials or termination of Colorado Works grant payments).
1. When a county department becomes aware of a potential underpayment, the county department shall:
a. Determine if an underpayment occurred; and,
b. Record the facts and basis of its determination in the case record.
2. A county shall correct any underpayments by the month following the discovery of such underpayments.
3. Underpayments shall be used to pay any validated claims against the client unless the county department has determined this action will cause an undue hardship to the client as determined on a case-by-case basis. Underpayments will be applied to claims using the following hierarchy:
a. Fraud or intentional program violation (IPV) claims first (undue hardship cannot be granted);
b. Client error claims second; and
c. Administrative error claims last. Instances that may result in an administrative error claim include, but are not limited to, the following:
1) The county failed to take timely action on a change reported by the client.
2) The county incorrectly computed the client's income or other information, or otherwise gave an incorrect grant payment.
3) Any other situation not caused by willful withholding of information on the part of the client and/or their authorized representative.
4) If an underpayment is discovered by the county department, the county department shall inform the client in writing of its determination of the underpayment.
5) Prompt action shall be taken to correct underpayments that occurred within the past twelve (12) months from the discovery date by issuing a retroactive payment. Retroactive payments shall not be made unless the amount is one dollar ($1.00) or more.
H. The county department shall reissue a lost or stolen payment if the loss or theft is not questionable and the county determines that such loss was beyond the client's control.

A loss will be considered within the client's control when:

1. The client has shared the EBT pin number or written the pin number on the EBT card itself, or
2. The client has given his or her card to another person for that person's use.
J. A client is prohibited from using or allowing the use of his or her EBT card at automated teller machines (ATMs) and point of sale (POS) devices located in establishments as described in section 3.602.1.E.2.k.

A client's transactions shall be monitored quarterly. Clients who use prohibited ATMs or POS devices (misuse) shall be contacted by the county department. Misuse shall result in:

1. A written warning that the use of the EBT card in prohibited establishments will result in the card being disabled. The county department shall provide education about appropriate use, access, and alternatives;
2. If continued misuse occurs (identified on the usage report after a warning has occurred), the cash portion of his or her EBT card shall be disabled for one month, requiring the county to inform the client of additional options for receipt of payment (direct deposit or county warrant) as well as notification of the dispute resolution process in accordance with state rules pursuant to section 3.609.6;
3. If misuse continues, the county department shall deny or discontinue the cash benefit for one month. The county shall require the client to complete a new application after the one-month time period if the client requests assistance. The county department shall not accept a new application from the client until the one-month denial or discontinuance expires. The county department shall follow the dispute resolution process pursuant to section 3.609.6; and,
4. After the one-month case closure for continued misuse, if/when the client reapplies, any future EBT card usage at prohibited establishments shall be considered continued misuse. Such subsequent violations will result in the one-month denial/discontinuance and reapplication process referred to in subsection 3, above.
3.609.3Overpayments

The county department shall establish a claim on an overpayment before the last day of the quarter following the quarter in which the overpayment was discovered.

A. An overpayment claim shall be adjusted if there is a record of any underpayment(s) for a prior period. Any underpayment must be applied to the overpayments in the following hierarchy:
1. Fraud or IPV claims first,
2. Client error claims second; and,
3. Administrative error claims last.
B. Liability for an overpayment must be legally established. Methods for legally establishing an overpayment include but are not limited to:
1. An executed promissory note;
2. A court judgment;
3. A final agency action; or
4. A signed public assistance repayment agreement form.

The state department's public assistance repayment agreement form shall be provided to the client once an overpayment claim is established.

C. Failure to sign the public assistance repayment agreement form shall be handled as follows:
1. If the client against whom a recovery has been initiated is currently participating in the Colorado Works program and does not respond to the public assistance repayment agreement form within eleven (11) calendar days of the date the notice containing the public assistance repayment form is mailed, grant payment reduction shall begin with the first month following the timely noticing period without further notice.
2. If the client against whom a recovery has been initiated is not participating in the program when a recovery for a claim is initiated or if a recovery has been initiated for repayment of a claim and no response is made to the public assistance repayment agreement form within eleven (11) calendar days of the date the notice is mailed, the county department shall pursue all legal recovery methods in order to recover the overpayment. Legal remedies include, but are not limited to, judgments, garnishments, claims on estates and the state income tax refund intercept process.
D. The amount of the overpayments involving income shall be calculated to allow for income disregards described in section 3.606.2.
E. All earned and unearned income received by the client are taken into consideration in the computation.

In the instances where the overpayment is the direct result of actions tied to the determination of IPV and/or fraud, which resulted in receipt of grant payments in error, or grant payments received that the client was not eligible to receive, the overpaid grant payments shall be recovered from the client and/or a liable individual.

F. The calculation of overpayment shall begin in the month that the overpayment occurred.
1. Start with the amount issued to the client;
2. Determine the correct payment;
3. Compare the amount issued to the client to the correct payment amount.
a. If the amount issued to the client is greater than the correct payment amount, the difference is the overpayment amount.
b. If the amount issued to the client is less than the correct payment amount, the difference is the underpayment amount; follow the procedures for underpayment in section 3.609.2.G.
4. If a client does not meet the non-financial eligibility requirements in any month, the client is totally ineligible for the month. Any payment received in such month(s) is an overpayment.
G. When the county department has determined that a client has received an overpayment, the department shall:
1. Take action to research the overpayment and determine the amount of the overpayment.
2. Determine if the overpayment is to be recovered.
3. Document the facts and situation that produced the overpayment. Document whether the overpayment is to be recovered. Retain all associated documentation and notices until the overpayment is repaid in full.
4. Determine whether there was willful withholding of information, fraud, or IPV.
5. Provide the client with timely or adequate notice as required by section 3.609.1 of the amount due and the reason for the recovery including:
a. The liable individual(s) responsible for the repayment;
b. The amount of the claim;
c. The period the claim is for;
d. The reason for the overpayment including whether the overpayment is a result of fraud/IPV, client error, or administrative error;
e. The client's rights and responsibilities;
f. The method of repayment;
g. How to obtain free legal assistance;
h. The applicable rules concerning the overpayment; and
i. Provide the public assistance repayment form.
6. Send quarterly statements with the balance due.
3.609.4Recovery
A. The recovery of valid overpayments is required regardless of when the overpayment occurred. Overpayments may be recovered from the client who was overpaid or who fraudulently received the assistance payment or another liable individual.

If a client is deceased, overpayments shall be recovered from the deceased client's estate.

B. The following rules for recovery do not apply in instances where the state or county department seeks recovery in a case that was transferred to the district attorney and prosecuted through the courts:
1. The client shall be notified of the recovery action to be taken, using the notice rules found at section 3.609.1.
2. When the overpayment is caused by an unintentional error, the client's willful withholding or an administrative error, such overpayment shall be deducted, after notice has been given, from subsequent grant payments while the client is actively receiving Colorado Works grant payments.
a. The client may choose to repay the county department the entire amount of the overpayment at one time. The client shall work with the county department to determine how a lump sum repayment can be made.
b. When the recovery amount is not to be repaid in a single payment per subsection a above, and the case remains active, the county department shall establish a monthly recovery deduction from subsequent grant payments. The monthly rate of recovery shall be ten dollars or ten percent of the assistance payment, whichever is higher.

The following procedure shall be used to arrive at the monthly recovery deduction amount:

1) If the error is a result of an agency error and the client does not meet criteria set forth in section 3.609.4.L, compute ten percent (10%) of the Colorado Works grant payment amount. If the resulting percentage amount is less than ten dollars ($10), the deduction from the grant payment amount shall be ten dollars ($10).
2) Deduct the percentage amount or ten dollars ($10), whichever is higher, from the grant payment. The result shall be rounded to the next lower whole dollar amount, if not already a whole dollar amount. This rounded amount is the final payment amount.
3) When the authorized payment amount is less than ten dollars ($10), the case is considered a "no payment" case and no deduction shall be made.
4) When the recovery is due to a fraudulent action on the part of the client and interest may be added thereto, the interest amount shall not be included in the grant payment deduction unless the client agrees to such inclusion. If the client does not so agree, the interest amount shall be collected separately.
5) The amount of the grant payment deduction for recovery shall be recorded in the client's case file and collected via the statewide automated system.
c. The county department shall not establish a claim unless the amount of the claim is greater than $200, except in the following circumstances:
1) The overpayment is identified through a federal or state level quality control review; or,
2) The claim is being pursued as and results in an IPV.
3. When the overpayment is caused by an unintentional error, the client's willful withholding of information or an administrative error, and the Colorado Works case is no longer active, recovery of such overpayment shall be based upon the public assistance repayment agreement form or other methods of recovery.
a. The county shall establish a monthly repayment agreement with a former client. The repayment agreement shall not exceed twenty-five percent (25%) of available monthly income. Determination of the repayment amount must be clearly documented in the electronic case file.
b. The client may choose to repay the county department the entire amount of the overpayment at one time. The client shall work with the county department to determine how a lump sum repayment can be made.
c. The county department may write-off unpaid valid claims as follows:
1) Valid administrative error claims less than one hundred twenty-five dollars ($125.00) can be written off ninety (90) days after the termination of all public assistance.
2) Valid claims for client error, fraud, and IPV less than three hundred dollars ($300.00).
3) Any unpaid valid claim of $125 or more for an individual who was not convicted of an IPV or fraud specific to the overpayment, is no longer receiving public assistance, and the overpayment was established six (6) or more years ago, and the county department has determined that it is no longer cost effective to pursue collection.
4) Once written off, a claim is not subject to recovery.
d. If the client begins to receive Colorado Works grant payments again after the overpayment has been established and still has a claim balance, the deduction of grant payments shall occur as described in section 3.609.5.
C. The client may issue the state a refund of any overpaid grant payments from his or her existing balance of Colorado Works grant payments on his or her electronic benefits transfer (EBT) card by contacting the county department. This requires a written statement from the client.
D. Clients are not entitled to grant payments that were paid in error or mistakenly provided to the client based on a data entry error into the statewide automated system or an error resulting from the statewide automated system. The county shall create a claim and may retrieve the grant payments from the client's EBT card within twenty-four (24) hours of the issuance without prior written authorization by the client. The client shall have no appeal rights in relation to this grant payment because he or she was not eligible for the initial receipt of the grant payment(s) in the first instance.

When grant payments issued in error are not retrieved from the client's EBT card within twenty-four (24) hours, funds shall not be taken from the card using this method unless permission is granted from the client in writing using the state prescribed form. If permission is not granted, the county department shall pursue other methods of recovery.

E. The client may request voluntary deductions be applied to the overpayment. These are considered to be an amount in addition to the deduction from the grant payment as established through the recovery calculations. The client shall be provided written confirmation of the amount to be deducted and that he or she has the right to stop the voluntary deduction at any time by written request.
F. A claim may be filed against the estate of a client for overpayment. This includes cases where overpayments were made and not recovered. The county department's legal advisor must be consulted in determining the amount of assistance payments for which a claim is to be filed.
G. In accordance with sections 26-2-133 and 39-21-108, C.R.S., the State and county departments may recover overpayments of public or medical assistance benefits through the offset (intercept) of a taxpayer's state income tax refund. Tax refunds shall not be offset in instances where the taxpayer is making regular, ongoing payments as agreed to in the public assistance repayment agreement and/or based on arrangements between the taxpayer and the county(ies). Unless agreed to by the client, the county shall not offset tax refunds during the same month the client makes a payment on a claim if the payment agreement was established prior to the offset. Rent rebates are subject to the offset procedure.

The offset of the taxpayer state income tax refund and/or rent rebate may be used to recover overpayments that have been:

1. Determined by final agency action; or,
2. Ordered by a court as restitution; or,
3. Reduced to judgment.
H. Prior to certifying the taxpayer's name and other information to the Colorado Department of Revenue, the Colorado Department of Human Services shall notify the taxpayer, in writing at his or her last-known address, that the State intends to use the tax refund offset to recover the overpayment. In addition to the requirements of section 26-2-133(2), C.R.S., the pre-offset notice shall include the name of the county department claiming the overpayment, the program that made the overpayment, and the current balance owed.
I. Effective August 1, 1991, the taxpayer is entitled to object to the offset by filing a request for a county conference or state level fair hearing within thirty (30) calendar days from the date that the state department mails its pre-offset notice to the taxpayer. In all other respects, the procedures applicable to such hearings shall be those that are stated in section 3.609.7 . At the hearing on the offset, the county department or ALJ shall not consider whether an overpayment has occurred because overpayment has already been otherwise legally established, but may consider the following issues if raised by the taxpayer in his or her request for a hearing:
1. Whether the taxpayer was properly notified of the overpayment;
2. Whether the taxpayer is the person who owes the overpayment;
3. Whether the amount of the overpayment has been paid or is incorrect;
4. Whether the debt created by the overpayment has been discharged through bankruptcy; or,
5. Whether other special circumstances exist, (i.e., facts that show that the taxpayer was without fault in creating the overpayment and will incur financial hardship if the income tax refund is offset).
J. If a tax refund offset is established, an overpayment shall not be recovered using another method in the month the offset occurs unless prior authorization is received from the individual making the recovery payments.
K. The county department is required to pursue collection of the overpayment from the client/responsible payee who managed and administered the Colorado Works funds. The county department shall pursue all available overpayment recovery options to collect the overpayment from the client/responsible payee first and then any other liable individuals legally responsible for overpayments, unless otherwise specified.
1. In instances where a trustee has used a client's trust income or property in a manner contrary to the terms of the trust, the county department shall:
a. Determine whether an overpayment of Colorado Works grant payments has occurred as a result of the client's loss of income based on the trustee's improper actions;
b. Consult with the county attorney or other legal resource to determine how to pursue action against a trust/trustee;
c. Advise the trustee of the overpayment circumstances; and d. If the trustee disagrees with such circumstances and overpayment, pursue the recovery establishment and collection through appropriate legal means; or e. Take appropriate steps to secure repayment with the cooperation of the trustee; or,
f. Report such behavior or action by the trustee to the county protective services to ensure the protection of the client's rights in the trust.
2. In instances where a power of attorney has used his or her legal authority for purposes other than for the benefit of the client, the county department shall:
a. Determine whether an overpayment of Colorado Works grant payments has occurred as a result of the power of attorney's improper actions;
b. Consult with the county attorney or other legal resource to determine how to pursue action against a power of attorney;
c. Advise the holder of the power of attorney of the overpayment circumstances; and,
d. If the holder of the power of attorney disagrees with such circumstances and overpayment, pursue the recovery establishment and collection through appropriate legal means; or
e. Take appropriate steps to secure repayment with the cooperation of the holder of the power of attorney; or
f. Report such behavior or action by the trustee to the county protective services to ensure the protection of the client's rights and benefits.
L. In any case in which an overpayment has been made, there shall be no recovery from any person:
1. Who is without fault in the creation of the overpayment; and,
2. Who has reported any increase in income or other circumstances affecting the client's eligibility within the timely reporting requirements for the program; and,
3. Who would be deprived of income required for ordinary and necessary living expenses such that it would be against equity and good conscience to seek recovery. The fact that the client is receiving public assistance shall not be the only factor in making a determination that the person would be deprived of income required for ordinary and necessary living expenses and that equity and good conscience exist.
a. If a client has ten (10) percent or more of income remaining after necessary living expenses, he or she shall not be considered deprived of income.
b. If a client's expenses exceed his or her income, additional questions must be asked to determine how he or she is meeting expenses to ascertain if other income (i.e. gift, in-kind) needs to be included in the income calculation.
M. When the overpayment recovery is not pursued, such fact, together with the reason, shall be documented in the statewide automated system. All information pertaining to the reason, establishment, and collection of claims shall be retained in the case record until the claim is written off or paid in full.
3.609.5Intentional Program Violation (IPV) and Fraud
A. All clients must be provided with their rights in relation to IPV as follows:
1. The client has the right to an administrative disqualification hearing (ADH) before an administrative law judge (ALJ).
2. The county department may offer an ADH at the county. This does not preclude the client from requesting the initial ADH or a second ADH be held before an ALJ under subsections M and O.
3. A client may waive the right to an ADH, either before an ALJ or with the county department, by signing a waiver of ADH form. Clients have a right to look at all the evidence that would be used at an ADH before deciding whether to waive the right to an ADH.
4. If a client chooses to appear at the ADH he or she has the right to represent him or herself or to be represented by an attorney at his or her expense.
5. The client may choose to be represented by any other person he or she chooses pursuant to section 26-2-127(1)(a)(IV), C.R.S.
6. A client and/or his or her representative, upon providing a signed release, may look at his or her case file, including all the evidence that will be used at the ADH. The client and/or his or her representative has the right to look at his or her case file before and during the ADH.
7. The county department shall provide a free copy of the evidence to be utilized during the ADH to the client at least fifteen (15) days prior to an ADH heard by the county. Upon request, the county department will provide a free copy of any other parts of the case file that the client determines is needed at the ADH.
8. A client may bring witnesses to speak on his or her behalf at the ADH.
9. The client and or his or her representative has the right to question or deny any evidence or statements made against him or her at the ADH. This includes the right to ask questions of persons testifying against him or her.
10. The client has the right to present any evidence that he or she feels is important to prove his or her case.
B. All Colorado Works clients must be provided with a written notice of the penalties for an IPV on the application form. All Colorado Works clients shall be notified of the penalties for an IPV when reporting changes on the redetermination form.
C. A county department is required to refer the investigation to the appropriate investigatory agency for any client or representative payee whenever there is an allegation or reason to believe that individual has committed an IPV as described below.

When conducting an interview for IPV and/or fraud, the county department investigator or representative has the responsibility to ensure the following:

1. That an explanation was given to the individual regarding the reason the interview is taking place; and,
2. That the individual's rights have been provided to him or her (section 3.609.6.A); and,
3. That the individual's rights and responsibilities including confidentiality of records and information, the right to non-discrimination provisions, the right to a county conference, and the right to a state level fair hearing have been provided to him or her; and,
4. That the rights and responsibilities presented in the "what I should know" section of the application that the client acknowledged when he or she signed the application form have not been violated; and,
5. That the county and/or representative of the county shall not threaten the individual or engage in any other intimidation tactics toward the client.
D. If the county receives questionable information that is necessary for determining a client's eligibility and the verification requested by the county department is not supplied by the client as required by the county department's verification request timeframes (section 3.604.3), grant payments may be reduced and/or the case closed and grant payments terminated for a client's failure to prove eligibility following the notice policies outlined in section 3.609.1 . These actions and notification shall not be used as an intimidation tactic or threat.
E. Following an investigation, the county must take action on cases where documented evidence exists to show a client has committed one or more acts of IPV. The county must take action through:
1. Obtaining a "waiver of administrative disqualification hearing"; or,
2. Proceeding with an ADH, either at the county department or in front of an ALJ, or both as described in subsections M. and O. below; or,
3. Referring the case for civil or criminal action in a county or district court; or,
4. Documenting in the case file the county department's decision to take no action to pursue IPV using documented evidence to support the decision.
5. Establishing a claim based on the IPV, if appropriate.
F. In proceeding against a client who is alleged to have committed an IPV, the county department must coordinate any action with actions taken under the food assistance program where the factual issues are the same or related.
G. Overpayment actions shall be initiated in the statewide automated system within ten (10) calendar days of the investigation's conclusion, unless otherwise specified in the case file. This is required in all cases even if ADH procedures or referral for prosecution is not initiated, except in instances where notification of overpayments may prejudice the ongoing criminal case or investigation. In these instances, the county department may make the determination to postpone notification of claims to the client if the overpayment is being referred to a court of appropriate jurisdiction. The determination to postpone notification must be clearly documented in the case file.
H. The state department will not condone any actions of the county department that could be determined to be a violation of state or federal law. Any actions taken by a county department that is determined to be in violation of state or federal law may be subject to corrective action per 9 C.C.R. 2501-1 section 1.150.
I. These rules apply to all clients who commit an IPV who are recipients or representative payees of grant payments and/or services. The determination of IPV shall be based on clear and convincing evidence that demonstrates intent to commit IPV.
J. Supporting evidence warranting the pursuit of an IPV disqualification must be documented and reviewed by a supervisor. If the county department determines there is evidence to substantiate that a person has committed an IPV, the person has a right to an ADH. However, the county department shall allow that person the opportunity to waive the right to an ADH.
1. The State approved IPV forms shall be provided to the individual suspected of an IPV. These may be offered to the individual during the investigation or mailed once it has been suspected an IPV has occurred, but there is no plan to pursue criminal charges.
2. One of the state approved forms affords the individual the right to waive the ADH. If the individual chooses to waive his or her right to an ADH, the individual shall have fifteen (15) calendar days from the date the IPV forms are hand-delivered or mailed by the county to return the waiver. If the form is not returned, the county department shall pursue an ADH.
3. The completion of the waiver is voluntary and the county department may not require, nor by its actions appear to require, the completion of the waiver.
K. An IPV ADH must be requested whenever:
1. The facts of the case do not warrant civil or criminal prosecution;
2. Documentary evidence exists to show an individual has committed one or more acts of IPV; and
3. The individual has failed to sign and return the waiver of ADH form.
L. An ADH may be requested against an accused individual whose case is currently being referred for prosecution on a civil or criminal action in county or district court.
M. A county department may conduct an ADH or may use the Office of Administrative Courts (OAC) to conduct the ADH.
1. The individual may request verbally, in writing, electronically, or in person that the OAC conduct the ADH in lieu of a county ADH. Such an ADH must be requested ten (10) calendar days before the scheduled date of the county ADH.
2. The OAC or the county department must mail by certified mail, return receipt requested, a notice of the date of the ADH on the form prescribed by the state department, to the individual alleged to have committed an IPV. The notice must be mailed at least thirty (30) calendar days prior to the ADH date, to the individual's last known address. The notice form shall include a statement that the individual may waive the right to appear at an ADH.
3. The ALJ or ADH officer shall not enter a default judgment against the individual for failure to file a written answer to the notice of hearing or failure to appear at the ADH, but shall base the initial decision upon the evidence introduced at the ADH.
4. The ADH must be continued at the accused individual's request if good cause is shown. The request for continuance must be received by the presiding ALJ or ADH officer at least ten (10) calendar days prior to the ADH.

The ADH shall not be continued for more than a total of thirty (30) calendar days from the original ADH date. One additional continuance is permitted at the ADH officer or ALJ's discretion. If the ADH officer or ALJ considers it necessary, a medical assessment may be ordered to substantiate or disprove a good cause statement of an accused individual. Such assessment shall be obtained at the agency's expense and made part of the record.

5. In the event that the ADH was heard by the county, the client may request an ADH to be heard by the OAC within fifteen (15) calendar days of the date the county department mails the local ADH decision to the client.
N. Disqualification for IPV shall be as follows:
1. If the individual signs and returns the request for waiver of ADH within fifteen (15) calendar days from the date the waiver is sent, that person shall be provided with a notice of the period of disqualification.
2. The disqualification period shall begin no later than the first day of the following month from the date determined through the ADH process or, if the individual signed an ADH waiver, the date he or she signed the waiver.
a. Once the disqualification is imposed it shall continue without interruption. To consider a disqualification period served, the client shall have a break in grant payments totaling the time period of the disqualification. The disqualification period shall remain in effect unless and until the finding is reversed by the Office of Appeals or a court of appropriate jurisdiction or until the period of disqualification is served per section c below.
b. The disqualification may be in addition to any other penalties which may be imposed by a court of law for the same offenses (i.e. criminal or civil sanctions).
c. The disqualification shall be in effect for twelve (12) months upon the first occasion of any such offense; twenty-four (24) months upon the second occasion of any such offense and permanently upon the third such offense, pursuant to section 26-2-128(1), C.R.S. all disqualifications imposed shall run and be served consecutively.
3. The disqualification penalizes only the individual(s) found to have committed an IPV. If a client's spouse and/or sponsor(s) have received an IPV on his or her own case(s), the spouse's and/or sponsor(s)' income and resources, when applicable, will be considered available to the client and used for determining eligibility.
4. An IPV disqualification in one county is valid and effective in all other Colorado counties. A county department shall consider a disqualification imposed by another county department when determining the appropriate disqualification penalty for the disqualified individual without an additional ADH or further right to appeal.
O. If, as a result of the ADH, the county ADH officer or ALJ finds the individual has committed an

IPV, a written notice shall be provided to notify the individual of the decision. The county hearing decision notice shall be a state prescribed form, which includes a statement that a state ADH at the OAC may be requested.

1. In the event that the ADH was heard by the county, the client may appeal the decision of the county ADH to the OAC. An appeal must be received by the county department or by the OAC within fifteen (15) calendar days of the date the county department mails the local ADH decision to the client. See section 3.609.7 for rules regulating the appeal process.
2. A copy of the county ADH decision shall be forwarded to the state department's employment and benefits division for review at the same time the decision is mailed to the client. If the client does not appeal the county ADH decision to the OAC, it becomes an initial decision and if no response is sent by the employment and benefits division to the county department, the county's decision becomes a final decision. If the employment and benefits division disagrees with the county department decision, they may: remand the decision to the county department or require the county to send the ADH request to OAC for determination of IPV, as described in M.5 above.
3. In an ADH before an ALJ, the determination of IPV shall be an initial decision, which shall not be implemented while pending state department review and a final agency decision. The initial decision shall advise the client that failure to file exceptions to findings of the initial decision will waive the right to seek judicial review of a final agency decision under section 24-4-106, C.R.S. affirming the initial decision.
4. When an individual waives his or her right to an ADH, a written notice of the disqualification penalty shall be mailed to the individual. This notice shall be on a state prescribed notice form.
P. When the county department determines that it has paid a client a grant payment as a result of fraud, the facts used in the determination shall be reviewed with the department's legal counsel within the attorney general's office and/or a representative from the district attorney's office. If suspected fraud is substantiated by the available evidence, the case shall be referred to the district attorney. All referrals to the district attorney shall be made in writing and shall include the amount of assistance fraudulently received by the client.
Q. If any deduction is being made from the client's assistance payment it must be consistent with any court order resulting from a prosecution by the district attorney. If the individual being prosecuted is not a Colorado Works program client, another method of recovery shall be used to collect amounts due to the department.
1. Interest shall be charged from the month in which the overpayment was received until the date the overpayment is recovered. Interest shall be calculated at the legal rate.
2. The client may choose to repay the county department the entire amount of the overpayment at one time or establish a repayment plan. In either instance, the fraud charge should be discussed with the district attorney or appropriate investigative authority.
R. If the district attorney declines to prosecute, the amount of overpayment due, as established by the department, will continue to be recovered by deduction from subsequent grant payments or other method of recovery if the individual is not a current client of Colorado Works grant payments.
3.609.6Dispute Resolution

The dispute resolution process is available for disputes concerning county department actions related to eligibility, reduction of grant payment amounts, redetermination procedures, and other county actions that do not involve allegations of fraud or IPV on the part of the client. If there is a dispute regarding fraud or IPV, that dispute must be handled according to sections 3.609.1 and 3.609.5 regarding IPVs and fraud.

In order to resolve disputes between county departments and clients, county departments shall adopt procedures for the resolution of disputes consistent with this section. The procedures shall be designed to establish a simple, non-adversarial format for the informal resolution of disputes.

A. The county department, prior to taking action to deny, terminate, recover, initiate vendor payments, or modify financial assistance provided under the Colorado Works program to a client, shall, at a minimum, provide the client an opportunity for a county conference.
1. The right of a client to a county conference is primarily to ensure that the proposed action is valid, to protect the client against an erroneous action concerning grant payments, and to ensure reasonable promptness of county action. The client may choose, however, to bypass the county conference and appeal directly to the state office of administrative courts, pursuant to section 3.609.7.
2. The client is entitled to:
a. Representation by an authorized representative retained at his or her own expense, such as legal counsel, relative, friend, or another spokesperson, or he or she may represent himself or herself;
b. Examine the contents of the case file and all documents and records used by the county department or agency in making its decision. Examination of the file is available at a reasonable time before the conference and during the conference. However, the file shall not include names of confidential informants, privileged communications between the county department and its attorney, or the nature and status of pending criminal prosecutions and any other information that is confidential or privileged under state or federal law; and c. Present new information or documentation to support reversal or modification of the proposed adverse action.
3. Failure of the client to request a county conference within ninety (90) calendar days from the date timely notice of the proposed action was mailed, absent the client requesting a postponement within that same ninety (90) days, shall constitute abandonment of the right to a conference. The client does not lose the right to appeal directly to the OAC pursuant to section 3.609.7.
4. Failure of the client to appear at the scheduled county conference without making a request for postponement prior to the scheduled date of the conference shall constitute abandonment of the right to a conference unless the client can show good cause for his or her failure to appear. The client does not lose the right to appeal directly to the OAC pursuant to section 3.609.7.
B. The county conference shall be held before a person in the county department or agency where the proposed decision is pending who was not directly involved in the initial determination of the action in question. The county worker or contractor who initiated the action in dispute shall not conduct the county conference.
1. The person designated to conduct the conference shall be in a position which, based on knowledge, experience, and training, would enable him or her to determine if the proposed action is valid. This could include, but is not limited to, a supervisor, quality assurance personnel, or a manager with no previous knowledge of the case.
2. Two or more county departments may schedule a joint county conference related to the same client. If two or more counties schedule a joint county conference, the location of the conference need not be held in the county taking the action, and the conference location shall be convenient to the client.
3. The county conference may be conducted either in person, by telephone, or by video conference. A telephonic or video conference must be agreed to by the client.
4. The county/agency worker or other county or department employee or contractor shall attend the county conference and present the factual basis for the disputed action.
5. The county conference shall be conducted on an informal basis. The county department/agency must provide specific reasons for the proposed action, and the applicable state department's rules or county policy. In the event the client does not speak English or other language services are needed, an interpreter shall be provided by the county department/agency.
6. The county/agency shall have available at the conference all pertinent documents and records in the case file relevant to the specific action in dispute.
7. To the extent possible, the county conference shall be scheduled and conducted prior to grant payments being reduced or terminated.
8. The county department shall provide notice to the client at least four (4) days prior to the scheduled time and location for the conference, or the time of the scheduled telephone or video conference. Notice should be in writing. The client may provide a written or verbal waiver that written notice of the scheduled conference is not necessary when the county department is able to conduct the conference within four (4) days.
9. The county department may consolidate a client's disputes regarding the Colorado Works program, the food assistance program, or any other public assistance program if the facts are similar and consolidation would facilitate resolution of all disputes.
10. The goal of the county conference is to reach an agreement between the client and the county department.
C. At the conclusion of the conference, the person presiding shall summarize the discussion in writing. The summary shall include whether the issue was resolved and include the client's appeal rights as described in section 3.609.7. A copy of the written summary shall be provided to the client and/or his or her representative within eleven (11) calendar days. A copy of the summary will also be maintained in the client's case file.
3.609.7Appeal and State Level Fair Hearing
A. These rules apply to all state-level fair hearings of county department actions concerning assistance payments and actions taken pursuant to state rules or official county policies governing the Colorado Works program. An affected client who is dissatisfied with a county department action or the result of a county conference or failure to act concerning grant payments may appeal to the Office of Administrative Courts (OAC) for a fair hearing before an independent Administrative Law Judge (ALJ). This will be a full evidentiary hearing of all relevant and pertinent facts to review the decision of the county department. The time limitations for submitting a request for an appeal are:
1. When the client elects to avail himself of a county conference, but is dissatisfied with that decision, the request must be submitted in writing and mailed or hand-delivered as described in subsection 3 below, within the ninety (90) day period specified in 2, below;
2. When the client elects not to avail himself of a county dispute resolution conference but wishes to appeal directly to the state, a written request for an appeal must be mailed or hand-delivered as described in 3 below no later than ninety (90) calendar days from the date the notice of the proposed action was mailed to the client;
3. A request for an appeal must be mailed or hand-delivered to the office of administrative courts. If the request is sent to or mailed to the county department, the county shall forward such request to the OAC.
B. Requests for state hearings may result from such reasons as:
1. The opportunity to make application or reapplication has been denied;
2. An application for assistance or services has not been acted upon within the maximum time period for the category of assistance;
3. The application for assistance has been denied, the grant payment has been modified or discontinued, vendor payments have been initiated, requested reconsideration or a grant payment amount deemed incorrect has been refused or delayed, payment has been delayed through the holding of payments, the county department is demanding repayment for any part of a grant payment which the client does not believe is justified, or the client disagrees with the type or level of benefits or services provided.
C. The basic objectives and purposes of the appeal and state hearing process are:
1. To safeguard the interests of the client;
2. To provide a practical means by which the client is afforded a protection against incorrect action on the part of the county department;
3. To bring to the attention of the state department and county department information that may indicate need for clarification or revision of state and county policies and procedures;
4. To assure equitable treatment through the administrative process without resort to legal action in the courts.
D. Any clear expression verbally or in writing by the client or his or her representative, that the client wants an opportunity to have a specific action of a county department reviewed by the state department is considered a request for a state level fair hearing. The county department shall, when asked, aid the person in preparation of a request for a hearing. If the request for a hearing is made verbally, the county department shall prepare a written request within ten (10) calendar days for the client or his or her representative's signature or have the client prepare such request, specifying the action he or she would like to appeal and the reason for appealing that action.
1. The client is entitled to:
a. Representation by any person he or she chooses pursuant to section 26-2-127(1)(a)(iv), C.R.S., legal counsel retained at the client's own expense, or he or she may represent him or herself;
b. Examine the complete case file and any other documents, records, or pertinent material to be used by the county at the state level fair hearing, including the hearing packet as described in section 3.609.711.D.3, before the date of hearing as well as during the hearing. However, the file shall not include the names of confidential informants, privileged communications between the county departments and its attorney, the nature and status of pending criminal prosecutions, and any other information that is confidential or privileged under state or federal law.
2. The client and staff of the county department are entitled to:
a. Present witnesses;
b. Establish all facts and circumstances pertinent to the decision being appealed;
c. Advance any arguments without undue interference;
d. Question or refute any testimony or evidence, including opportunity to confront and cross-examine adverse witnesses.
3.609.71Hearing Procedures
3.609.711State Level Fair Hearing Procedures

The procedures in this section apply to all hearings in front of the OAC. One or more persons from the Colorado Department of Personnel and Administration, Office of Administrative Courts (OAC), are appointed to serve as ALJs for the state department.

All hearings described in this section shall be conducted in accordance with section 24-4-105, C.R.S.

A. The State Administrative Law Judge shall, in preparation for the hearing, review the reasons for the decision under appeal and be prepared to interpret applicable Departmental rules and/or official written county policies governing the Colorado Works program and pertaining to the issue under appeal.
B. The county department shall forward copies of its applicable Colorado Works policies and any subsequent amendments, including effective dates, to the OAC. Clients appealing a county action shall be provided reasonable opportunity to examine the county's policies.
C. When legal counsel does not represent the client and/or the department, the ALJ shall assist in bringing forth all relevant evidence and issues relating to the appeal.
D. Upon receipt by the OAC of an appeal request, OAC assigns a case number. The OAC sets a hearing date at least ten (10) days from the date the appeal was requested, and sends a letter by first class or certified mail, or by email through the electronic filing system to the appellant and the county department notifying them of the date, time, and place of the hearing.
1. The appellant is told that if these arrangements are not satisfactory, he or she must notify the OAC. An ALJ will decide if good cause exists, and whether the date, time, and/or place of the hearing will be changed.
2. An information sheet shall be enclosed to explain the hearing procedures to the appellant. The information sheet informs the appellant that: he or she has the right to representation retained at his or her own expense, such as legal counsel, a relative, a friend, or another spokesperson, or he or she may represent himself or herself under section 26-2-127(1)(a)(iv), C.R.S.; the appellant or his or her representative has the right to examine all materials to be used at the hearing, before and during the hearing.
3. For all hearings except IPV ADH hearings, the information sheet shall also include a notice that failure to appear at the hearing as scheduled, without having secured a proper extension in advance, or without having shown good cause for failure to appear, shall constitute abandonment of the appeal and cause a dismissal thereof. Pursuant to section 3.609.5.M.2 -3., failure to appear does not result in a dismissal of an ADH hearing.
4. If OAC sets the hearing forty-five (45) days or more from the date of the notice of hearing, the county department/agency shall, within fifteen (15) days but no later than thirty (30) days prior to the hearing, prepare and mail a hearing packet to the appellant with a copy to OAC. If the hearing is set less than 45 days from the date of the notice of hearing, the county department/agency shall, within five (5) days but no later than ten (10) days prior to the hearing, prepare and mail the hearing packet. The hearing packet shall contain the following information:
a. The reasons for the decision of the county department and a specific explanation of each factor involved, such as the amount of excess income or residence factors;
b. The specific state rules governing the Colorado Works program or county policy on which the decision is based with a numeric reference to each such rule, including the appropriate Code of Colorado Regulations (C.C.R.) cites;
c. Notice that the county department will assist him or her by providing relevant documents from the case file for his or her claim, if he or she so desires, and that he or she has the opportunity to examine rules and other materials to be used at the hearing concerning the basis of the county decision.
5. Information that the appellant or his or her representative does not have an opportunity to see shall not be made available as a part of the hearing record or used in a decision on an appeal. No material made available for review by the ALJ may be withheld from review by the appellant or his or her representative.
6. In Colorado Works program appeals, the ALJ has twenty (20) calendar days from the hearing date to arrive at an initial decision. Once an initial decision is rendered, the OAC immediately sends the case and the initial decision to the State Department, Office of Appeals. The Office of Appeals serves the initial decision on the parties via first class mail and provides for an opportunity for the parties to file exceptions to the initial decision prior to the Office of Appeals issuing a final agency decision.
7. The initial decision shall not be implemented pending review by the Office of Appeals and entry of a final agency decision. All final agency decisions on these appeals shall be made within ninety (90) calendar days from the date the request for hearing is received.
E. When the client has had a county conference and wishes to appeal the county department's action to the OAC, the following procedures shall be followed:
1. As part of the local conference the client is informed that if he or she wishes to appeal to the OAC for a hearing, the county department shall provide relevant documents from the case file for the client's claim, if he or she so desires, and that he or she may have the opportunity to examine materials as described in the section 3.609.
2. The county department shall forward a copy of the decision being appealed and a copy of the written notification given to the client to the OAC.
3. A copy of the OAC's notice to the client setting a date for the hearing is forwarded to the county department. The county department shall provide the client with a hearing packet in accordance with section 3.609.711 .D.3.
4. If the client indicates to the county department that he or she desires to withdraw the appeal, the county shall attempt to obtain a statement to that effect in writing and forward it to the OAC.
5. If a client has legal counsel or another authorized representative for the appeal, the county department will not discuss the merits of the appeal or the question of whether or not to proceed with it with the client unless the discussion is in the presence of, or with the permission of, such counsel or such other authorized representative.
6. If the county department learns that legal counsel will represent the client, the county department shall make every effort to ensure that it, too, is represented by an attorney at the hearing. The county department may be represented by an attorney in any appeal that it considers such representation desirable.
7. If the appellant needs interpretation services, the county department shall arrange to have present at the hearing a certified interpreter who will be sworn to translate correctly.
8. The fact that an appellant and the county department have been notified that a hearing will be held does not prevent the county department from reviewing the case and considering any new factors which might change the status of the case, or taking such action as may be indicated to reverse its decision or otherwise settle the issue. Any change, which results in a voiding of the cause of appeal, shall be immediately reported to the OAC.
9. Upon receipt of notice of a state hearing on an appeal, the county department shall arrange for a suitable hearing room appropriate to accommodate the number of persons, including witnesses, who are expected to be in attendance, taking into consideration such factors as privacy; absence of distracting noise; and the need for table, chairs, electrical outlets, adequate lighting and ventilation, and conference telephone facilities.
F. Telephonic hearings may be conducted as an alternative to in-person hearings unless otherwise requested by any of the parties. All applicable provisions of the in-person hearing procedures will apply, such as the right to be represented by counsel, the right to examine and cross-examine witnesses, the right to examine the contents of the case file, and the right to have the hearing conducted at a reasonable time and date.
G. The county department shall have the burden of proof, by a preponderance of the evidence, to establish the basis of the ruling being appealed. Every party to the proceeding shall have the right to present his or her case or defense by verbal and documentary evidence, to submit rebuttal evidence, and to conduct such cross-examination as may be required for a full and true disclosure of the facts. Subject to these rights and requirements, where a hearing is expedited and the interests of the parties will not be subsequently prejudiced thereby, the ALJ may receive all or part of the evidence in written form or by verbal stipulations.
H. The following provisions govern the procedure at state hearings before the ALJ:
1. The hearing is closed to the public however, any person or persons whom the appellant wishes to appear for or with him or her may be present, and, if requested by the appellant and in the record, such hearing may be public;
2. The purpose of the hearing is to determine the pertinent facts in order to arrive at a fair and equitable decision in accordance with the rules of the state department. In arriving at a decision, only the evidence and testimony introduced at the hearing is considered by the ALJ. However, in circumstances when it is shown at the hearing that medical or other evidence could not, for good cause, be obtained in time for the hearing, the ALJ may permit the introduction of such evidence after the hearing. The opposing party must also be furnished with a copy of this new evidence and must have the opportunity to controvert or otherwise respond to it. Delays in rendering the initial decision will be attributed to the party requesting that the ALJ hear additional evidence after the hearing;
3. Although the hearing is conducted on an informal basis and an effort is made to place all the parties at ease, it is essential that the evidence be presented in an orderly manner so as to result in an adequate record;
4. When an ALJ makes a decision regarding the merits of the case, or the dismissal of the appeal, that decision is called an initial decision.
5. A complete and exact record of the proceedings shall be made by electronic or other means. When requested by the party, the OAC shall cause the proceedings to be transcribed.
6. When the ALJ dismisses an appeal for reasons other than failure to appear, the decision of the ALJ shall be an initial decision, which shall not be implemented until the Office of Appeals completes its review and enters a final decision.
7. The ALJ shall not enter a default against any party for failure to file a written answer in response to the notice of hearing, but shall base the initial decision upon the evidence introduced at the hearing. However, an appellant may be granted a postponement of the hearing if the county department has failed to provide the hearing packet required by section 3.609.711, and the appellant has therefore been unable to prepare for the hearing.
8. When OAC has notified the appellant of the time, date, and place of the OAC hearing and the appellant fails to appear at the hearing, without giving notice to the ALJ of acceptable good cause for his or her inability to appear at the hearing, then the appeal shall be considered abandoned. The ALJ shall enter an order of dismissal and the OAC shall serve it upon the parties. The dismissal order shall not be implemented pending review by the Office of Appeals and entry of an agency decision.

However, the appellant shall have ten (10) calendar days from the date the order of dismissal was mailed to draft and send a letter to the ALJ explaining the reason for his or her failure to appear. If the ALJ then finds that there was good cause for the appellant not appearing, the ALJ shall vacate the order dismissing the appeal and reschedule the hearing date.

If the appellant does not submit a letter seeking to show good cause within the ten (10) day period, the order of dismissal shall be filed with the Office of Appeals of the state department. The Office of Appeals shall review the dismissal of the appeal and give the appellant time to file exceptions before issuing a final agency decision in accordance with the procedures in section 3.609.72.

After the final agency decision is served on the parties, the county department shall carry out the necessary actions within ten (10) calendar days of the final agency decision becoming effective. The actions may be: to provide assistance or services in the correct amount, to terminate assistance or services, to recover assistance incorrectly paid, and/or other appropriate actions in accordance with the rules. Pursuant to section 24-4-106(5), C.R.S., the effective date of the final agency decision may be postponed if the appellant makes a request for postponement due to irreparable injury to the state department or the court reviewing the final agency action on judicial review.

3.609.72Decision and Notification
A. Following the conclusion of the state level fair hearing, the ALJ shall promptly prepare and issue an initial decision and file it with the State Department, Office of Appeals.

The Office of Appeals of The State Department is the designee of the State Department's executive director for reviewing the initial decision of the ALJ. The Office of Appeals enters a final agency decision on behalf of the executive director affirming, modifying, or reversing the initial decision.

1. The initial decision shall make an initial determination whether the county or state department or its agent acted in accordance with, and/or properly interpreted, the rules of the state department and/or the county policies governing the Colorado Works program.
2. The ALJ has no jurisdiction or authority to determine issues of constitutionality or legality of Colorado Statute, departmental rules, or county policy(ies) governing the Colorado Works program.
3. The initial decision shall advise the client who brought the appeal that failure to file exceptions to the initial decision will waive the right to seek judicial review under section 24-4-106, C.R.S. of a final agency decision that affirms the initial decision.
4. The Office of Appeals shall promptly serve the initial decision upon each party by first class mail, and shall transmit a copy of the decision either electronically or by mail to the division of the state department that administers the program(s) pertinent to the appeal.
5. The initial decision shall not be implemented pending review by the Office of Appeals and entry of an agency decision.
B. Upon receiving the initial decision, the Office of Appeals may issue an order of remand based on an issue that warrants an immediate remand before the initial decision is even mailed to the parties.

Additionally, the Office of Appeals may issue an order of remand after its substantive review of an initial decision, and prior to issuing a final agency decision, based on the need for further clarification, findings, conclusions of law, and/or further proceedings. An order of remand is not a final agency decision that is subject to judicial review under section 24-4-106, C.R.S.

C. Any party seeking final agency decision which reverses, modifies, or remands the initial decision of the ALJ shall file exceptions to the decision with the Office of Appeals, within fifteen (15) days (plus three days for mailing) from the date the initial decision is mailed to the parties. If that date falls on a weekend or State holiday, the due date shall be moved to the next business day. Exceptions must state specific grounds for reversal, modification or remand of the initial decision.
1. If the party asserts that the ALJ's findings of fact are not supported by the weight of the evidence, the party shall, simultaneously with, or prior to, the filing of exceptions request the OAC create a transcript of all or a portion of the hearing and file it with the Office of Appeals. No transcript is required if the review is limited to a pure question of law. Similarly, if the exceptions assert only that the ALJ improperly interpreted or applied State rules or statutes, the party filing exceptions is not required to provide a transcript or recording to the Office of Appeals.

If applicable, the exceptions shall state that a transcript has been requested. Within five (5) days of the request for transcript, the party requesting it shall advance the cost therefore to the transcriber designated by the OAC unless the transcriber waives prior payment.

2. A party who is indigent and unable to pay the cost of a transcript may file a written request, which need not be sworn, with the Office of Appeals for permission to submit a copy of the hearing recording instead of the transcript. If submission of a recording is permitted, the party filing exceptions must promptly request a copy of the recording from the OAC and deliver it to the Office of Appeals. Payment in advance shall be required for the preparation of a copy of the recording.
3. The Office of Appeals shall serve a copy of the exceptions on each party by first class mail. Each party shall be limited to ten (10) calendar days from the date exceptions are mailed to the parties in which to file a written response to such exceptions. The Office of Appeals shall not permit oral argument.
4. The Office of Appeals shall not consider evidence that was not part of the record before the ALJ. However, the case may be remanded to the ALJ for rehearing if a party establishes in its exceptions that material evidence has been discovered which the party could not with reasonable diligence have produced at the hearing.
5. While review of the initial decision is pending before the Office of Appeals, the record on review, including any transcript or recording of testimony filed with the Office of Appeals, shall be available for examination by any party at the Office of Appeals during regular business hours.
6. The state department's division(s) responsible for administering the program(s) relevant to the appeal may file exceptions to the initial decision, or respond to exceptions filed by a party, even though the division has not previously appeared as a party to the appeal. The division's exceptions or responses must be filed in compliance with the requirements of this section exceptions filed by a division that did not appear as a party at the hearing shall be treated as requesting review of the initial decision upon the state department's own motion.
7. In the absence of exceptions filed by any party or by a division of the state department, the Office of Appeals shall review the initial decision, and may review the hearing file of the ALJ and/or the recorded testimony of witnesses, before entering a final agency decision. Review by the Office of Appeals shall determine whether the decision properly interprets and applies the rules of the state department and/or relevant statutes, and whether the findings of fact and conclusions of law support the decision. If a party or division of the state department objects to the final agency decision entered upon review by the Office of Appeals, the party or division may seek reconsideration of the final agency decision pursuant to subsection c, below.
8. The Office of Appeals shall mail copies of the final agency decision to all parties by first class mail.
9. For purposes of requesting judicial review under section 24-4-106, C.R.S., the effective date of the final agency decision shall be the third day after the date the decision is mailed to the parties, even if the third day falls on Saturday, Sunday, or a legal holiday. The parties shall be advised of this in the final agency decision.
10. The State or county department shall initiate action to comply with the final agency decision within three (3) business days after the effective date. The department shall comply with the decision even if reconsideration is requested, unless the effective date of the agency decision is postponed by order of the Office of Appeals or a reviewing court pursuant to section 24-4-106(5), C.R.S.
D. No motion for reconsideration shall be granted unless it is filed in writing with the Office of Appeals within fifteen (15) days of the date that the final agency decision is mailed to the parties. The motion must state specific grounds for reconsideration of the final agency decision.

The Office of Appeals shall mail a copy of the motion for reconsideration to each party of record and transmit electronically or in writing to the appropriate division of the state department.

A motion for reconsideration of a final agency decision may be granted by the Office of Appeals for the following reasons:

1. A showing of good cause for failure to file exceptions to the initial decision within the fifteen (15) day period allowed by section 3.609.7; or,
2. A showing that the agency decision is based upon a clear or plain error of fact or law. An error of law means failure by the Office of Appeals to follow a rule, statute, or court decision, which controls the outcome of the appeal.
E. When a final agency decision concludes that an action of the county or state department was not in accordance with rules of the department, or when the county or state department determines that its action was not supported by the state department's rules after the client makes a request for a hearing, the adjustment or corrective payment is made retroactively to the date of the incorrect action.
F. The client is to be fully informed by the final agency decision of his or her further right to apply for judicial review of the agency decision. Judicial review can be started by filing an action for review in the appropriate state district court. Any such action must be filed in accordance with section 24-4-106, C.R.S. and with the Colorado Rules of Civil Procedure within thirty-five (35) days after the final agency decision becomes effective.
G. The state department will establish and maintain a method for informing, in summary and depersonalized form, all county departments and other interested persons concerning the issues raised and decisions made on appeals.
3.609.73Protections to the Individual
A. Confidentiality

All information obtained by the county department concerning a client of Colorado Works is confidential information.

1. The county department shall inform county officials and other persons who have dealings with the department as to the confidential nature of information, which may come into their possession through transaction of department business.

When a county worker consults a bank, current/former employer of a client, another social agency, etc., to obtain information or eligibility verification information, the identification of the county worker as an employee of the county department will, in itself, disclose that an application for assistance has been made by a client. In this type of contact, as well as other community contacts, the department shall strive to maintain confidentiality whenever possible.

2. Ensuring privacy while interviewing and the continuous confidentiality of information are essential. This involves both office facilities and county worker discretion. Office procedures and facilities should be such that information is not inadvertently revealed to persons not concerned with the affairs of a particular client. The county worker must also use discretion in mentioning department business outside the office.
3. The county or state department may share information across systems so that a client is efficiently served by programs using other systems to determine eligibility/maintain information to the extent allowable under section 26-1-114, C.R.S.
B. Confidentiality must be treated as follows:
1. Aggregated information not identified with any client, such as caseload statistics and analysis, is not confidential and may be released for any purpose.
2. Information secured by the county department for the purpose of determining eligibility and need is confidential.
3. Unless disclosure is specifically permitted by the state department, the following types of information are the exclusive property of, and are restricted to use by, the state and county departments:
a. Names and addresses of Colorado Works clients, and/or the grant payment amount;
b. Information contained in applications, reports of medical examinations, correspondence, and other information concerning any person from whom, or about whom, information is obtained by the county department;
c. Records of state or county departmental evaluations of the above information.
d. All information obtained through the Income and Eligibility Verification System (IEVS).
4. No one outside the state or county department shall have access to records of the department except for the following individuals: those executing the Income and Eligibility Verification System (IEVS); child support services officials; the SSA; and federal and State auditors and private auditors for the county these individuals shall have access only for purposes necessary for the administration of the program.
a. Client records may be used as exhibits for administrative, civil and/or criminal proceedings when the proceedings relate directly to the receipt of Colorado Works Programs.
b. Additional individuals shall have access to the client's records as long as the client is notified and his or her prior permission for release of information is obtained, unless the information is to be used to verify income or eligibility under administration of the IEVS.
c. If the information is needed to provide benefits to a client in an emergency situation, and the client is physically or mentally incapacitated to the extent that he or she cannot sign the release form, and time does not permit obtaining the client's consent prior to release of information, the county department must notify the client within eleven (11) calendar days after supplying the information. If the applicant or client does not have a telephone or cannot be personally contacted within eleven (11) days, the county department must send written notification containing the required information. The verbal or written notification shall include the name and address of the agency that requested the information, the reason the information was requested and a summary of the information released.
d. The release of records is strictly conditioned upon the information being used solely for the purpose authorized and the person requesting the information must certify the use to be made of the information and that it will not be disclosed or used for any other purpose.
5. The district attorney or county human services board member, shall have access to the records of the department, excluding IEVS information, if the following identified consent or notice conditions are met.
a. A district attorney upon presentation of a written request accompanied by evidence that fraud is the reason for the request
b. A county human services board member, as described in section 26-1-116, C.R.S. if the board member has an obligation to perform Colorado Works duties per county business processes or county policies approved by the state department as described in section 3.600.2 .

When a county board member or a district attorney who has met the above conditions needs information about a client that is not in the possession of the county department, the requestor, with the aid of the county department, may contact the state department to inquire as to the appropriate methods of securing it.

6. County departments shall not release information regarding clients to law enforcement agencies unless a valid search warrant is received by the county or state department, except as provided in section 3.609.73.B.4.
7. Upon request to the state department by the Colorado Bureau of Investigation, with the responsibility for location and apprehension of a person with an outstanding felony arrest warrant, the addresses of a fleeing felon who is a client of Colorado Works programs shall be released pursuant to section 26-1-114(3)(a)(iii) C.R.S.
8. The client shall have an opportunity to examine such pertinent records concerning him or her as constitutes a basis for adverse action and in the case of a county conference or a state level fair hearing. Other requests for information by the client shall be honored only when the client makes the request in person and his or her identity is verified or the request is in the form of a written and signed statement.

The client may designate an individual, firm, or agency to represent him or her at conferences and hearings. The client must put the designation of such representative in writing. The representative shall have access to all pertinent records.

9. The client may give a formal written release for disclosure of information to other agencies, such as hospitals or advocate agencies. If the client is not present, or the opportunity to agree or object to the use or disclosure cannot practicably be provided because of the client's incapacity or an emergency circumstance, the department may, in the exercise of professional judgment, determine whether the disclosure is in the best interests of the client and, if so, disclose only the minimum confidential information necessary that is directly relevant to the client's care.
10. Information provided to agencies and/ or individuals must be limited to the specific information required to determine eligibility, conduct ongoing case management, or otherwise necessary for the administration of the Colorado Works program. Information obtained through IEVS will be stored and processed so that no unauthorized personnel can acquire or retrieve the information. County departments are responsible for limiting IEVS data to only those individuals requiring access to determine eligibility or otherwise administer the programs.

All persons with access to information obtained pursuant to the income and eligibility verification requirements will be advised of the circumstances under which access is permitted, how data will be utilized, confidentiality of data, and the sanctions imposed for illegal use or disclosure of the information.

3.609.74Protection Against Discrimination

County departments are to administer Colorado Works in such a manner that no client will, on the basis of race, color, religion, creed, national origin, ancestry, sex/gender (including transgender status), pregnancy, age, sexual orientation, gender identity, political affiliation, or physical or mental disability, or any other protected groups as described in the state department's anti-discrimination policy, be excluded from participation, be denied any aid, care, or services, or other benefits of, or be otherwise subjected to discrimination in his or her interactions with the Colorado Works program.

A. The references to "aid" includes all forms of assistance, including direct and vendor payments, work programs and information and referral services.
B. The county department shall not, directly or through contractual or other arrangements, on the grounds of race, color, religion, creed, national origin, ancestry, sex/gender (including transgender status), pregnancy, age, sexual orientation, gender identity, political affiliation, or physical or mental disability, or any other protected status: :
1. Provide any aid to an individual which is different, or is provided in a different manner, from that provided to others;
2. Subject a client to segregation barriers or separate treatment in any manner related to access to or receipt of assistance, care services, or other benefits;
3. Restrict a client in any way in the enjoyment or any advantage or privilege enjoyed by others receiving aid, care, services, or other benefits provided under assistance programs;
4. Treat a client differently from others in determining whether he or she satisfies any eligibility or other requirements or conditions which must be met in order to receive aid, care, services, or other benefits provided under the Colorado Works program;
5. Deny a client an opportunity to participate in assistance programs through the provision of services or otherwise, or afford him or her an opportunity to do so which is different from that afforded others under programs of assistance.
6. Deny a client the opportunity to participate as a member of a planning or advisory body that is an integral part of the program.
C. No distinction is permitted in relation to the use of physical facilities, intake and application procedures, caseload assignments, determination of eligibility, and the amount and type of benefits extended by the county department to clients.
D. The county department shall ensure that other non-federal agencies, persons, contractors and other entities with which it contracts business are in compliance with the above prohibition of discrimination requirements on a continuing basis. The county department staff is responsible for being alert to any discriminatory activity of other agencies and for notifying the state department concerning the situation.
E. The State department, through its various contacts with agencies, persons, and referral sources, will be continuously alert to discriminatory activity and will take appropriate action to assure compliance with these prohibitions against discrimination the county department, on notification by the state department, will also terminate payments to the offender or association with any agency, person, or resource being used which has been found by the state department or the Colorado Civil Rights Division to continue discriminatory activity against clients.
F. A client who believes he or she is being discriminated against may file a complaint with the county department, the state department, the Colorado Civil Rights Division or directly with the federal government. When a complaint is filed with the county department, the county director is responsible for an immediate investigation of the matter and taking necessary corrective action to eliminate any discriminatory activities found. If such activities are not found, the client is given a written explanation of the outcome. If the client is not satisfied, he or she is requested to direct his or her complaint, in writing, to the state department, client services section, which will be responsible for further investigation and other necessary action. The client services section can be reached by email at cdhs_clientservices@state.co.us.]
3.609.75Additional Programs and Services
3.609.751Optional Noncustodial Parent Programs

A county may provide services under the Colorado Works program to a noncustodial parent (as defined in section 3.601), in accordance with the county's policy. A noncustodial parent shall not be eligible to receive basic cash assistance under the program.

A. Such services provided to a noncustodial parent shall be intended to promote the sustainable employment of the noncustodial parent and enable such parent to pay child support.
B. Provision of such services shall not negatively impact the custodial parent's eligibility for benefits or services.
C. Any services offered to a noncustodial parent shall be based on the county's review of:
1. The noncustodial parent's request for services; and,
2. The county's assessment of the noncustodial parent's needs.
D. All services offered to a noncustodial parent shall be outlined in an Individualized Plan entered into by the county and the noncustodial parent.
E. Services may include, but are not limited to, parenting skills, mediation, workforce development, job training activities, and job search.

9 CCR 2503-6-3.609

37 CR 17, September 10, 2014, effective 10/1/2014
38 CR 11, June 10, 2015, effective 7/1/2015
38 CR 15, August 10, 2015, effective 9/1/2015
38 CR 23, December 10, 2015, effective 1/1/2016
39 CR 19, October 10, 2016, effective 11/1/2016
40 CR 03, February 10, 2017, effective 2/14/2017
40 CR 17, September 10, 2017, effective 10/1/2017
41 CR 15, August 10, 2018, effective 9/1/2018
40 CR 23, December 10, 2017, effective 12/30/2018
43 CR 01, January 10, 2020, effective 1/30/2020
43 CR 13, July 10, 2020, effective 8/1/2020
43 CR 23, December 10, 2020, effective 1/1/2021
44 CR 21, November 10, 2021, effective 3/1/2022
45 CR 03, February 10, 2022, effective 3/2/2022
45 CR 13, July 10, 2022, effective 6/3/2022
45 CR 15, August 10, 2022, effective 8/30/2022
46 CR 09, May 10, 2023, effective 6/1/2023