Collection Action on Claims

(a) In accordance with 7 CFR 273.18(e)(2)( i ), the department shall not pursue payment of a claim, as follows:

(1) An agency error (AE) claim, as described in 7 CFR 273.18(b)(3), when the gross AE claim is less than $ 450 ; and

(2) Inadvertent household error (IHE) claim, as described in 7 CFR 273.18(b)(2), when the gross IHE claim is less than $300.

(b) Collection on court adjudicated claims shall be conducted as follows:

(1) When criminal or civil proceedings are brought against an individual suspected of intentional program violation (IPV) as defined in 7 CFR 273.16(c), the following shall apply:

a. If the court orders the individual to make restitution to the department, the court's directive on the method and schedule of repayment shall be followed; or

b. If the individual is fined, imprisoned, or both and no repayment is ordered by the court, collection action shall be pursued; and

(2) If criminal proceedings are brought against the individual and a verdict of not guilty is rendered, the department shall pursue collection action in the instance when a court's verdict does not relate to:

a. Whether an overpayment has occurred; or

b. Whether repayment to the department is required.

(c) The department shall postpone a collection action on an IHE claim, as described in 7 CFR 273.18(b)(2), when it is determined that a collection action will prejudice legal action on the case being referred for:

(1) Possible prosecution ; or

(2) Administrative disqualification in accordance with 7 CFR 273.16.

(d) In accordance with 7 CFR 273.18(e)(7)( i ), the department shall reduce the gross amount of an AE claim, if the AE claim cannot be repaid by the household within 3 years of the AE claim.

(e) Pursuant to (d) above, households that are current recipients at the time the AE claim is established shall have the net AE claim amount calculated by multiplying 10 percent of the household’s current monthly allotment or $10, whichever is greater, by 36 months.

(f) If the household’s net AE claim amount calculated in (e) above is:

(1) Equal to or greater than the gross AE claim amount, the AE claim amount shall not be reduced; or

(2) Less than the gross AE claim amount:

a. The net AE claim amount calculated in (e) above shall become the AE claim amount that shall be collected; and

b. The difference between the gross AE amount and the net AE amount calculated in (e) above shall be the compromised amount, pursuant to 7 CFR 273.18(e)(7)( i ).

(g) If overpayment on a claim occurs, the household shall be repaid within 10 calendar days of the date the overpayment is received and processed, pursuant to 7 CFR 273.18(h)(1).

Source. (See Revision Note at chapter heading for He-W 700) #5133, eff 5-2-91; ss by #6507, INTERIM, eff 5-1-97, EXPIRES: 8-29-97; ss by #6549, eff 8-1-97; amd by #8388, eff 7-8-05; paragraphs (d)-(f) EXPIRED: 8-1-05; ss by #10368, eff 7-8-13; ss by #13762, eff 9-28-23

PART He-W 709 ADMINISTRATIVE DISQUALIFICATION HEARINGS ON INTENTIONAL PROGRAM VIOLATION