Section 1240-01-20-.01 - CLAIMS AGAINST HOUSEHOLDS(1) Establishing Claims Against Households. The Department shall establish a claim against any household that has received more food stamp benefits than it is entitled to receive, except as provided in (2) of this section. Claims shall be classified as follows:(a) Inadvertent Household Error Claims. A claim shall be handled as an inadvertent household error claim if the overissuance was caused by a misunderstanding or unintended error on the part of the household. Instances of inadvertent household error which may result in a claim include, but are not limited to, the following: 1. The household unintentionally failed to provide the state agency with correct or complete information; or2. The household unintentionally failed to report to the state agency changes in its household circumstances and the recipient or responsible person states that he/she did not understand his/her responsibility to provide full information or to report changes in circumstances or he/she did not understand the eligibility requirements and the record does not show that all of these considerations were explained; or3. The household received benefits or more benefits than it was entitled to receive pending a fair hearing decision, because the household requested a continuation of benefits based on the mistaken belief that it was entitled to such benefits.(b) Administrative Error Claims. A claim shall be handled as an administrative error claim if the overissuance was caused by the Department. Instances of administrative error which may result in a claim include, but are not limited to the following: 1. A county office failed to take prompt action on a change reported by the household.2. A county office incorrectly computed the household's income or deductions or otherwise assigned an incorrect allotment.3. A county office incorrectly issued duplicate ATPs to a household which were subsequently transacted.4. The county office continued to provide a household food stamp allotments after its certification period had expired without benefit of a recertification.5. The county office failed to provide a household a reduced level of food stamp benefits because its public assistance grant changed.(c) Intentional Program Violation. A claim shall be handled as an intentional program violation claim only if:1. An administrative disqualification hearing official or a court of appropriate jurisdiction has determined that a household member committed intentional program violation as defined in Section 1240-1-20-.02; or2. The household member is disqualified as a result of signing a waiver of his/her administrative disqualification hearing; or3. The household member signed a disqualification consent agreement in cases of pre-trial diversion,(2) Instances When Claims Shall Not Be Established. A claim shall not be established against any household if an overissuance occurred as a result of the following: (a) Procedural Errors. The county office failed to ensure that a household fulfilled the following procedural requirements:1. Signed the application form; or2. Completed a current work registration form; or3. Was certified in the correct project area.(b) Expired ATP. A household transacted an expired ATP card, unless the household altered its ATP card.(3) Calculate The Amount Of Claims. The amount of an overissuance claim shall be equal to the difference between the allotment the household received and the allotment the household should have received for each month of overissuance. Once the amount of a claim is established, the county shall offset the claim against any amount of lost benefits that have not yet been restored to the household. (a) Inadvertent household and administrative error claims shall be calculated based on the amount of overissuance which occurred during the 12 months preceding the date the overissuance was discovered.(b) Intentional program violation claims shall be calculated back to the month the act of intentional program violation occurred, but no more than six years prior to discovery, providing case record and issuance information are available. No claim shall be calculated for any month prior to March 1, 1979.(c) In cases involving reported (or non-reported) changes, the county shall determine the month the overissuance initially occurred as follows:1. If the household inadvertently or intentionally failed to report a change in its circumstances within the required time frame, the first month of overissuance shall be the first month in which the change would have been effective had it been timely reported.2. If the household timely reported a change, but the county did not act on the change within the required time frame, the first month affected by the county's failure to act shall be the first month the county would have made the change effective had it timely acted.3. In no event shall the county determine as the first month in which the change would have been effective any month later than two months from the month in which the change in household circumstances occurred.(d) When a household has failed to report earned income in a timely manner, no earned income deduction, as described in 1240-1-4-.17(8)(a) 6.(i), shall be allowed in determining the amount of overissuance that has occurred.Tenn. Comp. R. & Regs. 1240-01-20-.01
Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed June 28, 1985; effective July 28, 1985. Amendment filed April 4, 1997; effective June 18, 1997.Authority: T.C.A. §§ 14-27-106, 14-27-113; 7 CFR 273.18.