RULE NO: RULE TITLE
65A-1.900: Overpayment and Benefit Recovery
(1) Administrative Definitions Applicable to Overpayment and Benefit Recovery.
(b) Intentional Program Violation: Intentional Program Violation (IPV) or fraud is defined pursuant to Section 414.39 (1)-(2) and (4), F.S., 7 C.F.R. §273.16 (c), and 45 C.F.R. §235.110 (a)(2) and Section 414.14, F.S.
(f) Notification: Notification, for purposes of this section, is any correspondence from the Department that advises an individual of the status of an overpayment. Any notification will be in compliance with 7 C.F.R. §273.18 (e)(3), 45 C.F.R. §235.110 and Section 414.14, F.S.
(2) Individuals Responsible for Repayment of Overpayment.
(b) Food stamp overpayments will be recovered from an individual as specified in 7 C.F.R. §273.18 (a)(4) (2009), incorporated by reference (2009).
(3) Monthly Repayment Amounts.
(b) Monthly repayment amounts of all food stamp overpayments will be determined in accordance with 7 C.F.R. §273.18 (c) (2009), incorporated by reference (2009).
(4) Method of Repayment.
1. As specified in 45 C.F.R. §233.20(a)(13) (2008), incorporated by reference (2008); or
(b) The method of repayment of all food stamp overpayment will be as specified in 7 C.F.R. §273.18 (f)-(g) (2009), incorporated by reference (2009).
(6) Compromising Food Stamp Claims. Effective August 1, 2001, a food stamp claim or any portion of a food stamp claim may be compromised with the exception of court ordered restitutions or IPVs. The Department reserves the right to approve or not approve the compromise.
(a) Individuals with an overpayment claim in the Food Stamp Program may request a compromise of their claim at any time after they are notified of the claim.
(b) For purposes of a compromise request made pursuant to this rule, the Department will determine the economic household circumstances reasonably demonstrate the overpayment claim will not be paid within three years of being notified of the overpayment claim and will compromise to zero dollars when at least one of the following is present: The Department will only consider such claims for individuals liable on the overpayment claim being considered or someone duly authorized to do so on behalf of the liable individual(s).
1. The death or prognosis of death of any liable individual within three years of being notified;
2. Pending litigation in a court, including a bankruptcy court, that involves any liable individual’s obligation to repay the overpayment within three years of being notified;
3. Any liable individual is sentenced to a period of incarceration that will expire after the three-year period the overpayment is expected to be paid; or
4. The liable individual(s) sole household’s income is based only on either age or disability projecting a fixed, limited economic potential to repay the overpayment within three years.
(c) The Department requires verification of subparagraphs 1. through 4. above. When a decision is made concerning the compromise request, the Department will provide written notice of the decision including information about hearing appeal rights. For purposes of a compromise request made pursuant to this rule, the Department will determine that an individual’s economic household circumstances reasonably demonstrate the overpayment claim or debt will not be paid within three years of the debtor being notified of the overpayment claim or debt only when the information or materials permitted by paragraph (d) below also include or involve at least one of the following:
1. The death of the debtor or liable individual(s);
2. The probability of an impending death of the debtor or liable individual(s);
3. Pending litigation in a court, including a bankruptcy court, that involves the debtor or liable individual’s obligation to repay the overpayment or debt;
4. The debtor or liable individual(s) are sentenced to a period of incarceration in a city, county, state or federal correctional institution that will exceed the three-year period by which the overpayment or debt is expected to be paid; or
5. The debtor or other liable individual(s) sole household’s income is based on either age or disability projecting a fixed, limited economic potential to repay the overpayment or debt within three years.
(d) For purposes of evaluating a compromise request, in addition to the information or materials required by paragraph (c) above, individuals liable for an overpayment claim or debt may submit to the Department any other information or written materials related to their household’s economic circumstances. Expenses taken into account include food, shelter, medical, transportation, clothing and personal and household incidentals, child or adult care and court ordered child support payments as described in subparagraphs (1)(g)1. through 7. Any items paid by someone outside the household are not used. The Department requires verification if it considers reported items excessive. The information or materials must state how the overpayment claim or debt will not be paid within the three-year period. When a decision is made concerning the compromise request, the Department will give the individual making the request a written notice of the decision including information about hearing appeal rights.
1. The overpayment or debt will be compromised to zero for situations indicated in subparagraphs 1. through 4. above.
2. The overpayment or debt will be compromised to no less than $5.00 per month for situations indicated in subparagraph 5. above.
(8) Notification of Overpayment. The Department must notify the individuals responsible for repayment of overpayment in writing that overpayment exists and that they are required, by law, to repay the entire amount pursuant to Section 414.41 (1), F.S., or that they may seek compromise of a food stamp overpayment pursuant to 7 C.F.R. §273.18(e)(3), (7) (2009), incorporated by reference (2009).
(10) Determination of Intentional Program Violation.
(a) Pursuant to Sections 414.33, 414.36 and 414.39 and 414.41, F.S., when the Department has information that an individual has committed fraud, it will refer the case to the Florida Department of Law Enforcement, Public Assistance Fraud (PAF) Unit for investigation. In cases where PAF the Department determines that an individual has committed fraud in the cash assistance or Food Stamp Programs, it will pursue a determination of IPV through either court action, administrative disqualification hearing, or both, where permitted by 7 C.F.R. §273.16 (a) (2009), incorporated by reference (2009), or 45 C.F.R. §235.110 (2008), incorporated by reference (2008) and Section 414.41, F.S. The PAF Unit will pursue a determination of IPV through court action in instances where it determines that an individual has committed fraud in the Medicaid Program.
(b) Individuals found by an administrative hearing officer or court to have committed an act of IPV while receiving, or attempting to receive, food stamp, cash assistance, or food stamp and cash assistance benefits will be disqualified from participation in the program(s) under which that act was committed or attempted in accordance with 7 C.F.R. §273.16 (b) (2009), incorporated by reference (2009), 45 C.F.R. §235.110 or Section 414.41, F.S. Section 414.14, F.S.
(11) Treasury Offset Program.
(a) The Department will refer individuals who owe past-due, legally enforceable federal food stamp overpayment debts to the U.S. Department of the Treasury for purposes of collection of such debt through offset against federal payments pursuant to 26 U.S.C. §6402 (d)(1)-(2), (f) 26 U.S.C. 6402 (d)(1)-(2), (f). Referral of individuals owing such debt will be completed in accordance with procedures and criteria contained in 26 C.F.R. §301.6402-6 26 C.F.R. Part 301 §301.6402-6 and 31 C.F.R. Part 5 Subpart C et. seq., as provided for in 7 C.F.R. §3.46 7 C.F.R. Part 3 Subpart D §3.46.
(b) A past-due, legally enforceable debt exists when an individual in receipt of overpayment as defined in Section 414.41(1), F.S. and paragraph (1)(a) (1)(b) of this rule is at least 180 days delinquent in repayment of the overpayment, and the overpayment has not been discharged through administrative or legal action.
(c) The Department must make a reasonable attempt as defined in 26 C.F.R. §301.6402-6(d) 26 C.F.R. Part 301, §301.6402-6(d), to notify individuals owing such debt that:
(12) The following forms, incorporated by reference, are used by the Department in the process of establishing and recovering overpayment: Information Concerning Administrative Disqualification Hearings, CF-ES 3057, 09/2009 09/2006; Request for Additional Information, CF-ES 3400, 09/2009 02/2006; Waiver of Administrative Disqualification Hearing With a Program Loss, CF-ES 3410, 09/2006; Waiver of Administrative Disqualification Hearing Without a Program Loss, CF-ES 3410A, 09/2006; Disqualification Consent Agreement, CF-ES 3414, 11/2007; and Notice of Compromise Decision, CF-ES 3110, 09/2009 03/2009. Copies of the forms and materials incorporated by reference are available from the ACCESS Florida Headquarters Office, 1317 Winewood Boulevard, Tallahassee, Florida 32399-0700. Forms are also available on the Department’s web site at http://www.dcf.state.fl.us/DCFForms/Search/DCFFormSearch.aspx.
Rulemaking Authority 409.919, 414.41, 414.45 FS. Law Implemented 414.31, 414.36, 414.41 FS. History–New 7-21-92, Amended 1-5-93, 9-5-93, Formerly 10C-1.900, Amended 7-9-98, 4-2-00, 2-26-02, 3-18-03, 7-21-05, 1-19-09,________.
IF REQUESTED WITHIN 7 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: October 29, 2009, 2:00 p.m.
PLACE: 1317 Winewood Boulevard, Building 3, Room 455, Tallahassee, FL 32399
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Cindy Keil, ACCESS Florida Program Policy, (850)410-3291, 1317 Winewood Boulevard, Building 3, Tallahassee, Florida 32399-0700, cindy_keil@dcf.state.fl.us.