A claim shall be established when a household is over-issued
benefits. An over-issuance means the amount by which SNAP benefits issued to a
household exceeds the SNAP allotment.
4.801.1
Classification of Claims
Claims shall be classified as follows:
A. "Agency Error Claims" - A claim shall be
handled as an agency error claim if the over-issuance is caused by an error on
the part of the local office. Instances that may result in an agency error
claim include, but are not limited to, the following:
1. The local office failed to take prompt
action on a change reported by the household;
2. The local office incorrectly computed the
household's income or deductions, or otherwise assigned an incorrect
allotment;
3. The local office
continued to provide a household SNAP benefits after its certification period
expired without a recertification of eligibility.
4. The local office failed to provide a
household a reduced level of SNAP benefits when its PA grant
changed.
B. "Inadvertent
Household Error Claims" - A claim shall be handled as an inadvertent household
error claim if the over-issuance was caused by a misunderstanding or
unintentional error on the part of the household. Instances that may result in
an inadvertent household error claim include, but are not limited to, the
following:
1. The household unintentionally
failed to provide the local office with correct or complete
information.
2. The household
unintentionally failed to report changes in its household
circumstances.
3. The household
unintentionally 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.
4. The household was
receiving SNAP solely because of basic categorical eligibility and the
household was subsequently determined ineligible for Colorado Works (CW) or
Social Security Income (SSI) during the time that the benefits were being
received. The claim must be based on a change in net income and/or household
size.
5. The SSA failed to take
action that resulted in the household's basic categorical eligibility and
improper receipt of SSI. The claim must be based on change in net income and/or
household size.
C.
"Intentional Program Violation (IPV) /Fraud Claims" - A claim shall be handled
as an IPV/fraud claim only if:
1. An
administrative disqualification hearing (ADH) official or a court of
appropriate jurisdiction has found a household member has committed an IPV or
fraud; or,
2. A signed waiver of
ADH is received; or
3. A signed
disqualification consent agreement has been obtained.
Prior to a waiver or consent agreement being signed or the
determination of IPV/fraud, the claim against the household shall be handled as
an inadvertent household error claim.
4.801.2
Establishing Claims Against
Households
A. Establishing a claim
1. The local office shall establish claims in
accordance with the thresholds outlined below.
a. For participating households, the local
office shall not establish a claim for overpayment due to Administrative Error
(AE) or Inadvertent Household Error (IHE), except in the following
circumstances:
1. When the amount of the claim
is greater than $200; or
2. When
the over-issuance is identified through a federal or state level quality
control review; or,
3. When the IHE
claim is being pursued as an IPV, except that if the IHE claim does not result
in an IPV, collection shall not be pursued.
b. For households not participating in SNAP,
the local office shall not establish a claim for over-issuance except in the
following circumstances:
1. When the amount
of the AE claim is greater than $400;
2. When the amount of the claim is due to an
IHE and is greater than $200; or
3.
When the over-issuance is identified through a federal or state level quality
control review.
4. When an IHE
claim is being pursued as an IPV, except that if the IHE claim does not result
in an IPV, collection shall not be pursued.
2. An AE or IHE claim shall not be
established for a period of more than twelve (12) months from the date the
local office was notified, in writing or orally, or discovered through the
normal course of business, that an error occurred which led to the household
receiving more benefits than it was entitled to receive.
A claim associated with an IPV must be calculated back to the
month the act of IPV first occurred and cannot be established for a period more
than six (6) years from the date the local office was notified, in writing or
orally, or discovered through the normal course of business, that an error
occurred which led to the household receiving more benefits than it was
entitled to receive.
3.
Claims shall be established for benefits that are trafficked. The trafficking
of benefits means the same as described in 26-2-306, C.R.S. and
7 C.F.R.
271.2, which is incorporated by reference in
section 4.000.1, above.
4. Claims
shall be established against the following individuals:
a. All adult household members aged eighteen
(18) years of age or older at the time the over-issuance occurred, even if one
or more of the adult household members are participating in another SNAP
household at the time the claim is established; and
b. A person connected to the household, such
as an authorized representative, who traffics SNAP benefits or otherwise causes
an over-issuance to occur.
B. Timeframe to Establish a Claim
Local offices shall establish all claims before the last day
of the quarter following the quarter in which the over-issuance or trafficking
incident was discovered.
1. The
discovery date for AE claims is the date that the local office was notified, in
writing or orally, or discovered through the normal course of business that an
agency error occurred that caused the household to receive more benefits than
it was entitled to receive.
2. The
discovery date for IHE and IPV non-trafficking claims shall be the date that
verification used to calculate the over-issuance is obtained.
3. The discovery date for claims resulting
from trafficking is the date of the court decision or the date the household
signed a waiver of administrative disqualification hearing form or a
disqualification consent agreement.
4.801.3
Calculating the Amount of a
Claim
A. Compromising Claims
If the full amount or remaining amount of an AE or IHE claim
cannot be liquidated in three (3) years, the local office may compromise the
claim by reducing it to an amount that will allow the household to pay the
claim in three (3) years. IPV claims shall not be compromised, unless specified
in a court decision. The local office may use the full amount of the claim,
including any amount compromised, to offset lost benefits. Decisions regarding
compromises shall be documented in the case record.
A payment plan on a claim that has been compromised may be
renegotiated if necessary. Claims that are already reduced by either an
administrative or district court order are considered compromised claims, and
thus are not eligible for additional compromise.
Local offices shall review the household's circumstances and
determine if a compromise would be appropriate. Local offices do not have the
option of refusing to consider compromising claims. Local offices cannot
institute a policy of never compromising claims
Claims should be compromised if the household demonstrates
need, such as the inability to repay the claim within three (3) years, or if
the household proves that financial, physical, or mental hardship would exist
if forced to pay the full amount of the original claim. Some circumstances
include, but are not limited to, medical hardships, high shelter costs, loan
payments, and other extraordinary expenses. A compromise based on hardship may
be applied to a SNAP case regardless of whether the household is still
receiving SNAP benefits.
Consideration should be given to the future earning potential
of the household over the next three (3) years to pay back the claim based on
age, disability, and other household factors.
B. Claims Resulting from Trafficking
The value of claims resulting from trafficking related
offenses is the value of the trafficked benefits as determined by the
individual's admission, through adjudication, or the documentation that forms
the basis for the trafficking determination. Documentation could include such
items as notarized statements or printouts from the EBT
systems.
C. Agency Error and
Inadvertent Household Error Claims
1. If the
household received a larger allotment than it was entitled to receive, the
local office shall establish a claim against the household that is equal to the
difference between the allotment that the household received and the actual
allotment it should have received. Benefits authorized under Colorado
Electronic Benefits Transfer System (CO/EBTS) shall be used to calculate the
claim. After calculating the amount of a claim and establishing claims, the
local office must offset the amount of the claim against any amounts which have
not yet been restored to the household. Expungements and any return of benefits
that occur must be used to offset the amount of the claim.
2. The claim must also be offset against
restored benefits owed to:
a. Any household
that contains a member who was an adult member of the original
household;
b. Any household that
contains an authorized representative that caused the over-issuance or
trafficking.
c. In no circumstance
may the local office collect more than the amount of the
claim.
3. For households
eligible under BCE, a claim shall only be determined when it can be calculated
because of changed household net income and/or household size. A claim shall
not be established if there was not a change in net income and/or household
size.
If a household receives both TANF and SNAP and mis-reports
information to TANF in accordance with the TANF reporting requirements, and the
mis-report of information to TANF resulted in the household being over-issued
TANF or ineligible for TANF, any resulting SNAP claim should be based on the
actual TANF issued.
4. The
correct allotment shall be calculated using the same methods applied to
certification. The twenty percent (20%) earned income deduction shall not be
applied to that part of any earned income that the household failed to report
in a timely manner when this act is the basis for the claim; therefore, any
portion of the claim that is due to earned income being reported in an untimely
manner will be calculated without allowing the twenty percent (20%) earned
income deduction. The circumstances of the household shall be used to calculate
the claim. In instances when a claim is caused by the household's failure to
report information as required, the amount of the claim is based on the
allotment difference from what the household received compared to what the
household would have received if the household would have reported the
information as required. For example, if a simplified reporting household did
not report income at initial application as required, the income used to
calculate the over-issuance would be the income that the household received in
the month of application, as this would have been used to determine the
household's ongoing monthly amount. Actual income received each subsequent
month is not required to calculate each month of the claim, as any fluctuation
in monthly income that was received by the household after the initial month of
application was not required to be reported by the household. If the household
failed to report a change in household circumstances that would have resulted
in an increase in benefits during the period of the claim, the local office
shall act on the change in information as of the date the change was reported
to the local office.
5. When a
household certified below 130% FPL, as defined in section 4.401.1, above fails
to report an increase in household income over 130% FPL. The local office shall
establish the claim for each month in which an over-issuance of SNAP has
occurred.
a. In cases involving household
failure to report an increase in income within the required timeframes, the
first (1st) month affected by the household's failure to report shall be the
first (1st) month in which the change would have been effective had it been
timely reported. However, in no event shall the determination of the first
(1st) month in which the change would have been effective be any later than two
(2) months from the month in which the change occurred. For purposes of
calculating the claim, the local office shall assume that the change would have
been reported properly and timely acted upon by the local office.
b. If the household timely reported an
increase in income but the local office failed to act on the change within the
required timeframes, the first (1st) month affected by the local office's
failure to act shall be the first (1st) month the office would have made the
change effective had it acted timely. If a Notice of Adverse Action was
required, the local office shall assume, for the purpose of calculating the
claim, that the Notice of Adverse Action period would have expired without the
household requesting a fair hearing.
D. IPV Claims
1. Prior to a waiver of ADH or consent
agreement being signed or the determination of IPV/fraud, the claim being
pursued as an IPV claim shall be pursued as an IHE claim.
2. For each month that a household received
an over-issuance due to an act of IPV/fraud, the local office shall determine
the correct amount of SNAP benefits, if any, the household was entitled to
receive. If the household member is determined to have intentionally failed to
report a change in its household's circumstances, the claim shall be
established for each month in which the failure to report would have affected
the household's SNAP allotment.
3.
Once the amount of the IPV claim is established, the local office shall offset
the claim against any amount of lost benefits that have not yet been restored
to the household.
E.
Court Actions
In cases where a household member was found guilty of fraud
by a court of appropriate jurisdiction, the local office should request that
the matter of restitution be brought before the court or addressed in the
agreement reached between the prosecutor and individual.
4.801.4
Collecting Payments
on Claims
A. Claim Liability
1. Liable Individuals
All adult household members aged eighteen (18) years or older
at the time the over-issuance occurred, sponsors, or other persons, such as an
authorized representative who trafficked or otherwise caused an over-issuance
or trafficking to occur, that are connected with the household shall be jointly
and severally liable for the value of any over-issuance of benefits to the
household.
2. Initiating
Collection Action
a. Local offices shall
initiate collection action against all adult members or persons connected to
the household at the time an over-issuance occurred. Under no circumstances
shall the office collect more than the amount of the claim.
b. The local office may pursue collection
action against any household that has a member that was connected to the
household that received or created an over-issuance.
c. The local office shall initiate collection
action for an unpaid or partially paid IPV claim even if collection action was
previously initiated against the household while the claim was being handled as
an IHE claim. Collection action shall be initiated unless the household has
already repaid the over-issuance because of an IHE demand letter described in
section 4.801.4, C, 1, below, or the local office has documentation that shows
the household cannot be located.
B. Postponing Collection Action
Collection action on IHE claims may be postponed in cases
where an over-issuance is being referred to an ADH or a court of appropriate
jurisdiction, and the local office determines that collection action will
prejudice the case. For cases in which the household is appealing an AE or IHE
claim, collection action shall be suspended pending a final decision. A
household's appeal may include, but not be limited to, the establishment of the
claim, the amount of the claim, and/or the household's liability to repay the
claim.
C. Notifying a
Household of a Claim
1. Notice of
Over-Issuance and Repayment Agreement
Local offices shall initiate collection action on agency
error and inadvertent household error claims by sending the household a
State-prescribed written demand letter for the over-issuance. The letter shall
inform the household of its rights and responsibilities concerning repayment of
the claim as well as providing information on the availability of free legal
services. All households that owe a claim shall be sent a demand letter. If the
claim or the amount of the claim was not established at a fair hearing, the
state agency must provide the household with a one-time Notice of Adverse
Action. If the hearing official determines that a claim does, in fact, exist
against the household, the household must be re-notified of the claim. The
demand for payment may be combined with the notice of the hearing decision.
Delinquency must be based on the due date of this subsequent notice and not on
the initial pre-hearing demand letter sent to the household.
2. Calculation of Claim
The local office shall mail the household an explanation of
how the claim was calculated, showing each individual month and the cause for
the claim. The State-prescribed form shall be used to determine and calculate
the amount of the claim and to notify the household of the calculation. The
form shall be mailed on a schedule that coincides with the mailing of the
demand letter.
D.
Negotiating Payment Plans
Households participating in the program are subject to
allotment reduction in accordance with Section 4.801.41. B, unless the claim is
being collected at a higher amount, per agreement with the household. Allotment
reduction must begin with the first allotment issued ten (10) calendar days
after the demand letter is mailed.
When a household is subject to allotment reduction, then a
repayment agreement is not necessary unless the household wants to make
voluntary payments in addition to the allotment reduction or elects to make
monthly payments in amount greater than what would be repaid through allotment
reduction.
If a household is not participating in the program, then the
local office shall negotiate a payment schedule with the household for
repayment of any amounts of the claim not repaid through a lump sum
payment.
1. Establishing a Payment
Plan
The local office shall negotiate a payment schedule with the
household for repayment of any amounts of the claim not repaid through a lump
sum payment or through allotment reduction. Payments shall be accepted in
regular installments. The household may use SNAP benefits as full or partial
payment of any installment. The local office shall ensure that the negotiated
amount of any payment schedule to be repaid each month through installment
payments is not less than the amount that could be recovered through an
allotment reduction. Once negotiated, the amount to be repaid each month
through installment payments shall remain unchanged regardless of subsequent
changes in the household's monthly allotment. However, both the local office
and the household shall have the option to initiate renegotiation of the
payment schedule if they believe that the household's economic circumstances
have changes enough to warrant such action.
2. Household's Failure to Respond to the
Repayment Agreement
If the household is not participating in the program when
collection action for claim is initiated or if collection action has been
initiated for repayment of a claim and no response is made to the first (1st)
demand letter, additional demand letters shall be sent at reasonable Intervals,
such as thirty (30) calendar days apart. The demand letters shall be sent until
the household responds by paying or agreeing to pay the claim, until the
criteria for suspending collection has been met or until the local office
initiates ether collection actions.
E. Determining Delinquency
1. Claims shall be considered delinquent
under the following circumstances:
a. If a
claim has not been paid by the due date on the demand letter or a satisfactory
payment arrangement has not been made. The claim shall remain delinquent until
payment is received in full, an allotment reduction is invoked, or a new
repayment schedule is negotiated. The date of delinquency for such claims is
the due date on the initial demand letter.
b. If a satisfactory payment arrangement has
been made for a claim and payment has not been received by the due date
specified in the established repayment schedule, the date of delinquency for
such claims is the due date of the missed installment payment, unless the claim
was delinquent prior to entering into a repayment agreement, in which case the
due date will be the due date on the initial demand letter. The claim will
remain delinquent until payment is received in full, allotment reduction is
invoked, or once the local office resumes or renegotiates the repayment
schedule.
c. For purposes of the
Federal Treasury Offset Program (TOP), a delinquent claim is one which is past
due more than one hundred twenty (120) calendar days.
2. Claims shall not be considered delinquent
under the following circumstances:
a. If
another SNAP claim for the same household is currently being paid, either
through an installment agreement or an allotment reduction, and the local
office expects to begin collection on the claim once the prior claim(s) is
settled;
b. If collection is
coordinated through the court system and the local office has limited control
over collection action; and
c. If a
household timely requests a fair hearing on the existence or amount of the
claim and the local office suspends collection action pending a final agency
decision. A claim awaiting a fair hearing decision shall not be considered
delinquent.
If the hearing officer determines that a claim does in fact
exist against the household, the household shall be sent another demand letter.
Delinquency shall be based on the due date of this subsequent demand letter and
not on the initial pre-hearing demand letter sent to the household. If the
hearing officer determines that a claim does not exist, the claim is deleted
and shall be terminated, and all collection activity
ceased.
F. Joint Collections Received for a
Combination SNAP and PA Claim
An unspecified joint collection is when funds are received in
response to correspondence or a referral that contained both the SNAP and other
program claims, and the debtor does not specify to which program to apply the
payment. The local office shall ensure that unspecified joint collections are
pro-rated among the programs involved. When an unspecified joint collection is
received for a combined PA and SNAP claim, each program shall receive its
prorated share of the amount collected.
4.801.41
Methods of Collecting Payment
on Claims
The local office shall collect claims through one of the
following methods:
A. Lump Sum
The local office shall collect payments for total or partial
payments of a claim in one lump sum if the household is financially able to pay
the claim; however, the household shall not be required to liquidate all of its
resources to make this repayment. If the household requests to make a lump sum
cash and/or food benefit payment as full or partial payment of the claim, the
local office shall accept this method of payment.
B. SNAP Allotment Reduction
1. The local office shall collect payments
for claims from households currently participating in the Program by reducing
the household's SNAP allotment. For claims where there is a court-ordered
judgment for repayment, allotment reduction shall not occur.
Prior to reduction, the local office shall inform the
household of:
a. The appropriate
formula for determining the amount of SNAP to be recovered each
month;
b. The amount of SNAP the
local office expects will be recovered each month; and,
c. The availability of other methods of
repayment.
2. The
household's allotment will be reduced based on the recoupment amounts for each
type of claim unless a payment schedule has been negotiated with the household.
The local office may collect on a claim by invoking benefit
allotment reduction on two (2) separate households for the same claim. However,
the local office is not required to perform this simultaneous
reduction.
3. The amount of
SNAP to be recovered each month through allotment reduction shall be determined
as follows:
a. For AE claims and IHE claims,
the amount of SNAP to be recovered each month from a household shall either be
ten percent (10%) of the household's monthly allotment or ten dollars ($10)
each month, whichever is greater.
b. For IPV claims, the amount of SNAP benefit
reduction shall either be twenty percent (20%) of the household's monthly
allotment or twenty dollars ($20) per month, whichever is
greater.
4. Benefits
authorized for an initial month will not be reduced to offset a claim. Ongoing
benefits will be recouped based on the above criteria.
C. Benefits from an EBT Account
1. A household may pay all or a portion of
the claim by using benefits from its EBT account.
The local office shall obtain written permission from the
household to deduct benefits from the EBT account to pay a claim. The written
agreement shall be obtained prior to removing benefits from the EBT account and
shall include:
a. A statement that
this collection activity is strictly voluntary;
b. The amount of the payment;
c. The frequency of the payments (i.e.,
whether monthly or one (1) time);
d. The length of the agreement; and
e. A statement that the household may revoke
this agreement at any time.
2. If the household provides oral permission,
the local office can make a one- time deduction from an active EBT account for
a one (1)-time reduction. The county shall provide the household with a written
receipt within ten (10) business days. The receipt shall contain the
information used for an active EBT account and indicate that this is a one-time
reduction.
3. When a local office
pursues payment on a claim by applying SNAP benefits from the household's stale
EBT account, prior written notice shall be given to the household of the
existing stale EBT account that may be applied to an outstanding claim. The
county shall notify the household that the benefits will be applied to the
claim unless the household objects to this offset. The household must be given
ten (10) calendar days to object before the benefits can be applied as a
payment to the claim. A stale EBT account means an account that has benefits
but has not been accessed for at least three (3) consecutive calendar
months.
D. Offset Against
Taxpayer's State Income Tax Refund
1. The
state department and local office may recover over-issuances of PA benefits
through the offset (intercept) of a taxpayer's state income tax refund. Rent
rebates are subject to the offset procedure. This method may be used to recover
over-issuances that have been:
a. Determined
by final agency action;
b. Ordered
by a court as restitution; or,
c.
Reduced to judgment.
2.
Pre-Offset Notice
Prior to certifying the taxpayer's name and other information
to the Department of Revenue, the state department 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 over-issuance. The pre-offset notice shall include
the name of the local office claiming the over-issuance, a reference to SNAP as
the source of the over-issuance, and the current balance owed.
3. Household Objection to Pre-Offset Notice
The taxpayer is entitled to object to the offset by filing a
request for a DRC or state-level hearing within thirty (30) calendar days from
the date the state department mails the pre-offset notice to the taxpayer. At
the hearing on the offset, the local office or administrative adjudicator shall
not consider whether an over-issuance has occurred, but may consider, if raised
by the taxpayer in his or her request for a hearing, whether:
a. The taxpayer was properly notified of the
over-issuance;
b. The taxpayer is
the person who owes the over-issuance;
c. The amount of the over-issuance has been
paid or is incorrect;
d. The debt
created by the over-issuance has been discharged through bankruptcy;
e. Other special circumstances exist as
described in Section 4.801.42.
E. Federal Treasury Offset Program (TOP)
The TOP, including the Federal Salary Offset Program (FSOP),
is a mandatory government-wide delinquent debt matching and payment offset
system in which Colorado SNAP participates.
The TOP allows collection of delinquent debts by intercepting
any allowable payment from the federal government. Federal payments eligible
for offset include federal income tax refunds, federal employee salary, federal
retirement payments (including military), contractor or vendor payments, and
federal benefits such as Social Security and railroad retirement.
1. Claims Submitted for Offset
a. A delinquent claim may be submitted to the
USDA, FNS for the TOP. To submit a claim to the TOP, the claim must be
determined to be past due and legally enforceable. To determine that a claim is
past due and legally enforceable, it must be determined that notification and
collection attempts have taken place.
b. For purposes of the TOP, a delinquent
claim is one which is past due more than one hundred twenty (120) calendar
days.
c. A claim is not considered
delinquent if a fair hearing is pending concerning the claim; or the claim has
either been discharged by bankruptcy or is subject to the automatic stay of the
bankruptcy; or the claim is not considered delinquent as described within
Section 4.801.4, E, 2.
2.
Processing Fee
TOP, including the FSOP, is authorized to apply a processing
fee each time a successful offset for collection occurs. Federal payroll
offices participating in the TOP process may add another separate processing
fee. The delinquent SNAP debtor is responsible for the fee each time it is
applied. A TOP offset taken in error and later refunded will have the
processing fee refunded, except for partially refunded
offsets.
3. Notifying a
Household of the TOP
At the time delinquent debts are sent to be certified to the
FNS for intercept by the TOP, all delinquent debts for every individual are
sent at one time. Prior to a claim being certified to the FNS as a debt owed to
the local office, the individual shall be mailed an offset notice. The notice
shall provide the following information:
a. The local office has documentation that
the individual identified with his or her Social Security Number (SSN) is
liable for the specified unpaid balance of the claim;
b. The individual has been notified about the
claim and prior collection efforts have been made. The claim is past due and
legally enforceable. All adults are liable for the over-issuance of SNAP if
they were household members when the SNAP benefits were over-issued. False
statements concerning such liability may subject individuals to legal action
(see Section 4.801.4, A);
c. Debts
over one hundred twenty (120) days delinquent to be referred to the Treasury
for an administrative offset. The local office intends to refer the claim
within sixty (60) days of the date of the notice unless the individual makes
other repayment arrangements acceptable to the local office;
d. Instructions on how to pay the claim,
including the name, address, and telephone number of a person in the county who
can discuss the claim and the intended offset with the individual;
e. The individual is entitled to request a
review of the debt's eligibility for referral to TOP. Individual review
requests must be honored, regardless of whether they are received after the
deadline requested. Claims that are currently under review will not be referred
for the tax intercept; and
f. All
claims for the household that are to be certified to TOP.
4. The individual may document any legitimate
reason that the claim is not past due or legally enforceable.
5. The individual should contact the local
office if they believe that a bankruptcy proceeding prevents the collection of
the claim or if the claim has been discharged in bankruptcy.
6. In some circumstances, the married
individual may want to contact the IRS before filing his/her income tax return.
This is true if the individual is filing a joint return and his or her spouse
is not responsible for the SNAP claim and has income and withholding and/or
estimated federal income tax payments. In such cases, the spouse may receive
his or her portion of any joint return based on procedures prescribed by the
IRS.
7. A federal employee may have
his or her net disposable pay subject to garnishment under the offset. The
Treasury may garnish up to fifteen percent (15%) of the net disposable pay. A
federal employee may petition for a hearing only at the federal level to
dispute the existence or the amount of the claim. The hearing occurs after the
review period at the state-level and the subsequent submission to the Treasury
as a valid offset.
8. An OOA
adjudicator within CDHS will review the proposed offset and issue only a final
agency decision. The OOA shall find that the claim is past due and legally
enforceable unless the household can provide documentation to show one (1) of
the following:
a. The claim is not delinquent
or was already paid, and the individual provides proof of payment.
b. The individual is not the person that is
liable for the claim.
c. A
bankruptcy action prohibits collection of the claim because the automatic stay
under Section 362 of the Bankruptcy Code is in effect with respect to the
individual or his or her spouse, or that the claim was discharged by a
bankruptcy proceeding.
d. There is
some other reason that the claim is not delinquent or is not legally
enforceable.
9. The final
agency decision by the OOA regarding the paper review will be issued by means
of written findings. No oral argument is permitted. The written findings shall
include the following:
a. If the OOA
determines that the claim is past due and legally enforceable:
1. The individual shall be notified that the
claim will continue to be referred for the offset; and,
2. The individual is entitled to have the FNS
review the OOA's decision. FNS must receive a request to do so within thirty
(30) calendar days after the date of the state agency's notice of review
decision. A request for FNS review shall include the individual's SSN. The
notice shall also provide the address of the regional office including the
phrase "Tax Offset Review" in the address.
b. If the OOA determines that the claim is
not past due or legally enforceable, it shall notify the individual and the
local office that the claim will not be referred for the offset.
c. While the OOA or FNS is conducting a
review of the debt, the debt is not eligible for referral to
TOP.
F.
Pursuing Other Collection Activities
1. Local
offices may pursue other collection actions, as appropriate, to obtain
restitution of a claim against any household which fails to respond to a
written demand letter for repayment of an agency error or inadvertent household
error claim. In cases where a household member was found guilty of fraud by a
court of appropriate jurisdiction, the local office may request that the matter
of restitution be brought before the court or addressed in the agreement
reached between the prosecutor and individual.
2. Other collection actions that the local
office may pursue include the use of a collection agent, civil action, or
criminal filing.
3. If the local
office chooses to pursue other collection actions and the household pays the
claim, payments shall be submitted to the Colorado Department of Human Services
as required by Section 4.801.8. The local office's retention of recoveries
shall be based on the actual amount collected from the household through such
collections actions.
4. The local
office shall not use other, involuntary collection methods against individuals
in a household that is already having its benefit reduced.
4.801.42
Criteria for
Suspending Collection Action [Rev. eff. 1/1/16]
The provisions within this section apply to Agency Error (AE)
claims, Inadvertent Household Error (IHE) claims, and intentional Program
violation (IPV) claims, unless otherwise stated.
A. The local office shall document the reason
for suspending collection action. Suspended claims may be reactivated to offset
a restoration of lost benefits or to pursue collection should collection action
become feasible.
B. Collection
action on a claim shall be suspended only under the following circumstances:
1. A claim may be suspended if no collection
action was initiated because of one of the following conditions:
a. The local office has documentation that
shows the household cannot be located; or,
b. A court decision postpones collection
activity for a period of time.
2. If collection action was initiated and at
least one (1) demand letter was sent, further collection action against an
agency error claim or an inadvertent household error claim for a
non-participating household may be suspended when:
a. The household cannot be located.
b. The cost of further collection action is
likely to exceed the amount that can be recovered.
c. The household is determined to be
financially unable to pay the claim.
d. If the local office can document that an
individual found guilty of intentional program violation/fraud cannot be
located, collection action shall be suspended.
3. Collection action may be suspended on any
claim for a non-participating household after six (6) months of no response.
The local office should be alert to other methods of pursuit of the claim (see
Section 4.801.41, F).
4.801.43
Criteria for Terminating
Collection Action [Rev. eff. 1/1/16]
The provisions within this section apply to Agency Error (AE)
claims, Inadvertent Household Error (IHE) claims, and intentional Program
violation (IPV) claims.
A. A
terminated claim is a claim in which all collection activity has ceased. A
terminated claim is no longer considered a receivable subject for continued
state and federal agency collection and reporting requirements unless otherwise
stated.
Voluntary payments from a household on a terminated claim do
not reactivate the claim. A terminated claim cannot be reactivated to pursue
collection.
B. Collection
action on a claim shall be terminated only in the following situations:
1. A claim may be determined uncollectible
after the collection action has been suspended for three (3) years. Prior to
terminating such a claim, the local office may submit the claim for state or
federal offset or pursue other collection actions. A terminated claim may not
be reactivated to offset restoration of lost benefits.
2. A claim may be terminated if it has been
delinquent for a period of three (3) years. Prior to terminating such claim,
the local office may submit the claim for state or federal offset or pursue
other collection actions.
3. A
claim shall be terminated if found to be invalid by an administrative fair
hearing decision or a court determination.
4. A claim shall be terminated if all adult
members are deceased and the agency is not pursuing collection from the
estate.
5. A claim that is
twenty-five dollars ($25) or less and delinquent for ninety (90) calendar days
may be terminated.
4.801.5
Claims Discharged Through
Bankruptcy
A. IPV claims tied to an
actual determination of fraud through either an ADH or a court hearing cannot
be discharged through bankruptcy. If an individual signs an ADH waiver and
admits to committing fraud or guilt when accepting the disqualification, the
IPV claims cannot be discharged through bankruptcy. If the individual signs the
ADH waiver without admitting to fraud or guilt, there is no actual
determination of fraud and the IPV claim may potentially be dischargeable
through bankruptcy.
B. Local
offices shall act on behalf of, and as an agent of, FNS in any bankruptcy
proceedings against bankrupt households owing SNAP claims. Local offices shall
possess any rights, priorities, liens, and privileges and shall participate in
any distribution of assets, to the same extent as FNS. Acting as FNS, local
offices shall have the power and authority to file objections to discharge
proof of claims, exceptions to discharge, petition for revocation of discharge,
and any other documents, motions, or objections which FNS might have
filed.
4.801.6
Interstate Claims Collection
In cases where a household moves out of the state, the local
office that last handled the case involving a claim may initiate or continue
collection action against the household for any over-issuance that occurred
while the household was under that local office's jurisdiction. Counties may
transfer a claim to another state or Colorado county if the other state or
Colorado county accepts the transfer.
Counties are not obligated to accept the transfer of a claim
from another state or Colorado county but have the option of accepting the
claim and pursuing collection on that claim. Counties that accept the transfer
of a claim shall pursue collection activities and retain appropriate incentives
for the collection.
4.801.7
County Retention of Recoveries
Counties may retain twenty percent (20%) of collections from
inadvertent household error claims and thirty-five percent (35%) of collections
from intentional Program violation/fraud claims. The total amount of
collections from agency error claims is retained by the USDA, Food and
Nutrition Service.
4.801.8
Submission of Claim Payment Activity to USDA, FNS
The FNS-209 Report (Status of Claims against Households) is
an automated report and is run quarterly. The report is utilized to reflect all
claims activities during a quarter and reflects all the payments made during
the quarter. SNAP benefits received as a claim payment shall be recorded in the
automated system and any corrections that need to be made to payments are made
through the automated system.
The report is available for review from the first of the
month immediately following the end of the quarter and continues to be
available through the last working day of the quarter. A consolidated final
report is available to be printed by local offices following the last working
day of the quarter.
This FS-209 report is run quarterly even if the local office
has not collected any payments or other claims activities. The local office
shall not be required to submit Form FS-209 if the material on the automated
system FS-209 is accurate and complete for that local office.
Notes
10 CCR 2506-1-4.801
37
CR 15, August 10, 2014, effective 9/1/2014
37
CR 21, November 10,2014, effective 12/1/2014
38
CR 23, December 10, 2015, effective 1/1/2016
39
CR 01, January 10, 2016, effective
2/1/2016
39
CR 05, March 10, 2016, effective
4/1/2016
39
CR 07, April 10, 2016, effective
5/1/2016
39
CR 15, August 10, 2016, effective
9/1/2016
39
CR 17, September 10, 2016, effective
10/1/2016
39
CR 19, October 10, 2016, effective
11/1/2016
39
CR 23, December 10, 2016, effective
1/1/2017
40
CR 11, June 10, 2017, effective
7/1/2017
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
42
CR 01, January 10, 2019, effective
2/1/2019
42
CR 03, February 10, 2019, effective
3/15/2019
42
CR 17, September 10, 2019, effective
10/1/2019
42
CR 18, October 10, 2019, effective
10/1/2019
42
CR 23, December 10, 2019, effective
12/30/2019
43
CR 01, January 10, 2020, effective
1/30/2020
43
CR 05, March 10, 2020, effective
2/7/2020
43
CR 07, April 10, 2020, effective
4/30/2020
43
CR 21, November 10, 2020, effective
11/30/2020
44
CR 21, November 10, 2021, effective
11/30/2021
45
CR 05, March 10, 2022, effective
3/30/2022
45
CR 19, October 10, 2022, effective
10/1/2022
45
CR 19, October 10, 2022, effective
11/1/2022
45
CR 21, November 10, 2022, effective
11/30/2022
46
CR 17, September 10, 2023, effective
9/30/2023
