N.J. Admin. Code § 10:88-3.8

Current through Register Vol. 57, No. 1, January 6, 2025

Section 10:88-3.8 - Adjustment

(a) Adjustment is the process whereby a debit or credit transaction is applied to a recipient's Families First NJ SNAP account to correct a system error or to correct an out-of-balance condition that is identified in the settlement process.

1. A system error is defined as an error resulting from a malfunction at any point in the posting or redemption process, from the Families First host computer, to the switch, to the third-party processors, to a store's host computer or to a POS device.

2. A Families First account can be either a cash benefit account or NJ SNAP benefit account.

(b) The State (including any contracted agent that the State employs to act as its EBT processor) shall correct a benefit amount erroneously posted to a recipient's Families First account, or an auditable, out-of-balance settlement condition that occurs during the NJ SNAP redemption process as a result of a system error.

1. If an error is discovered prior to the date on which those benefits are accessible to the recipient, an adjustment shall be performed by the State or its contracted agent that corrects the erroneous posting. In this situation, the recipient shall not be provided with notification that the correction has occurred.

2. If an error is discovered in an NJ SNAP account after the date on which those benefits are accessible to the recipient, an adjustment shall be performed by the State or its contracted agent to correct the error. However, in this situation, if the adjustment is a debit transaction, the recipient shall be provided with notification as described in (e) below.

3. The adjustment shall be equal to the amount of the original error transaction, and may result in either a debit or credit to the recipient's Families First NJ SNAP account.

(c) A recipient initiated NJ SNAP adjustment must be requested by the recipient within 90 days of the alleged error transaction and shall be addressed by the State agency or its contracted agent within 10 business days from the date the recipient notifies the State agency of the alleged error. Within this period, the State agency or its contracted agent must investigate, reach a decision, and, if warranted, move funds into the recipient's NJ SNAP account.

(d) A retailer- or commercial institution-initiated NJ SNAP adjustment shall be acted upon no later than 10 business days from the date the error occurred, by placing a hold on the adjustment balance in the household's account. Notification requirements are described in (e) below and the actual account adjustment shall be performed in accordance with (g) or (h) below.

(e) Upon receipt by the State of notification that a retailer or a commercial institution has requested an NJ SNAP debit adjustment, the recipient shall immediately be notified of the adjustment request.

1. The notice shall specify:

i. The full amount and type (debit) of the adjustment, including the date, time and location of the original error transaction;

ii. That any adjustment amount still owing is subject to collection from the household's next month's NJ SNAP benefits;

iii. Where the recipient may call to dispute the adjustment and request a fair hearing; and

iv. The right to delay the adjustment debit to the household, pending the outcome of a fair hearing, provided the hearing is requested within 10 business days of the notice date.

2. Subsequent transactions to move the funds or otherwise complete the NJ SNAP adjustment do not require additional household notification.

3. No notice is necessary if an adjustment is a credit to the household NJ SNAP account.

(f) The recipient shall have 90 days from the date of the notice of the adjustment to request a fair hearing.

(g) If the household does not request a hearing within 10 business days, the State agency, or its contracted agent, shall proceed to debit the recipient's Families First NJ SNAP account for the total amount erroneously credited.

1. If the household requests a fair hearing after the 10th business day, but before the 90th day expires, the fair hearing request shall be accepted; however, the adjustment process continues.

(h) Should the household dispute the adjustment and a hearing request is made within 10 business days of the notice, no further action shall be taken to adjust (debit) the household's NJ SNAP account until the fair hearing decision is rendered.

1. If the fair hearing decision is rendered in the household's favor, no additional action is needed.

2. If the Division of Family Development's (DFD) intended action regarding the adjustment is upheld by the hearing decision, DFD, or its contracted agent, shall debit the recipient's Families First NJ SNAP account immediately for the total amount erroneously credited when the fair hearing was requested.

(i) If the recipient's Families First NJ SNAP account does not have sufficient benefits to cover the total amount of the adjustment, DFD, or its contracted agent, shall only attempt the adjustment against a client's NJ SNAP account for one future month before the adjustment debt is cancelled. This also applies to adjustments that cannot be collected from a household that leaves NJ SNAP, regardless of whether that household returns to NJ SNAP at a later date.

N.J. Admin. Code § 10:88-3.8

Amended by 46 N.J.R. 2156(a), effective 11/3/2014.