Section 400.3011. Benefit overissuance collection and repayment actions.

(1) The department shall seek recoupment of food assistance program (FAP) benefit overissuances from active or inactive FAP groups by cash repayment or benefit reduction through administrative recoupment processes.

(2)    The department shall seek recoupment of benefit overissuances from any adult who was a group member when the overissuance occurred.

(3)   If the overpaid FAP group did not include a qualified or disqualified adult at the time of the overissuance, then a collection action will not be initiated unless the overissuance was established through court action or by obtaining a signed repayment agreement.

(4)    The department shall recoup overissuances to active FAP cases through benefit reduction, unless cash payments are ordered by a court.

(5)    If an overissuance is not paid in full, then FAP benefits will be reduced by the percentage specified in the food and nutrition act of 2008,7 U.S.C. §2022(b).

(6)   If a court orders cash repayment and the active FAP client does not make regular cash payments, then the department shall change the collection method to benefit reduction.

(7)    Local department offices may pursue collection from estates through probate court claim action for a person who dies and has an overissuance balance.

(8)    A payment received as restitution under the terms of probation will reduce the balance owed, but the completion of the probation period or the performance of a requirement of probation does not reduce the amount owed in excess of the actual dollar amount paid toward the overissuance.

History: 1997 AACS; 2014 AACS.