Library: Policy

340:50-15-6. Development of repayment

Revised 9-17-18

(a) Repayment of established overpayment claims. Households must make repayment on all established Supplemental Nutrition Assistance Program (SNAP) food benefit overpayment claims regardless of the reason or classification for the overpayment. Adult and Family Services (AFS) Benefit Integrity and Recovery (BIR) staff initiates collection efforts against all adult household members included in SNAP food benefits during the overpayment time.

(1) AFS BIR staff may initiate collection efforts from two separate households for the same claim.

(2) AFS BIR staff may use any repayment option per (c) of this Section to collect the overpayment claim from any adult:

(A) who was in the household at the time of the overpayment and who is not currently a member of a household undergoing allotment reduction; or

(B) connected to the household, such as an authorized representative or other individual when the person trafficked benefits or caused the overpayment.

(b) Repayment plan time frames. After AFS BIR staff establishes the overpayment, he or she mails the household the Notification of Food Benefit Overpayment notice and Form 08OP118E, Food Benefit Repayment Agreement. Form 08OP118E informs the household of the responsibility to repay the overpayment and explains the acceptable debt repayment methods. The household is responsible for completing and returning Form 08OP118E within the appropriate time frame.

(1) The SNAP food benefit overpayment claim is considered delinquent when, within 30-calendar days of the date shown on the Notification of Food Benefit Overpayment notice, the household does not:

(A) pay the claim in full; or

(B) complete and return Form 08OP118E. AFS BIR staff must approve the repayment plan proposed by the household.

(2) The SNAP overpayment claim is not considered delinquent when, within 30-calendar days of the date shown on the Notification of Food Benefit Overpayment notice, the:

(A) household's food benefit allotment reduction begins; or

(B) household is undergoing recoupment to repay a previous SNAP overpayment claim at the time AFS BIR staff mails the Notification of Overpayment notice.

(3) When allotment reduction stops because the SNAP food benefit closes for any reason, the household must repay the debt in full or contact AFS BIR to request a repayment arrangement within 30-calendar days of benefit closure, unless food benefits are reopened.

(c) Repayment options. Form 08OP118E informs the client of available repayment options and advises the client not to send cash through the mail.  • 1 Repayment options include repaying the overpayment claim:

(1) in one lump sum by personal check, money order, cashier's check, or Electronic Benefit Transfer (EBT) debit with a signed statement;

(2) in regular monthly installments, when he or she has an approved repayment agreement on file with AFS BIR. Payment may be made by personal check, money order, cashier's check, or approved EBT debit with a signed statement;

(3) by applying any lost benefit due the household toward the food benefit overpayment claim per Oklahoma Administrative Code 340:50-11-46;

(4) by authorizing a voluntary payment through a debit from the EBT Access account. The client or the household's authorized representative must mail, fax, or email a signed statement to AFS BIR giving permission for the debit before BIR staff debits the account;

(5) by allotment reduction. Allotment reduction is an involuntary method of collecting SNAP overpayment claims by reducing the monthly benefit amount a household receives. AFS BIR staff does not reduce benefits for the initial month of certification or use other involuntary collection methods against household members while the benefit allotment is reduced. When AFS BIR staff establishes an:

(A) agency error or inadvertent household error overpayment claim, he or she reduces the household's monthly benefit allotment by 10 percent or $10, whichever is greater. The client may request a higher reduction up to its monthly allotment; or

(B) intentional program violation overpayment claim, he or she reduces the household's monthly benefit allotment by 20 percent or $20, whichever is greater. The household may request a higher reduction up to its monthly allotment; or

(6) by court ordered restitution.

(d) Recalculation of debt. AFS BIR staff recalculates the household's overpayment claim balance, when staff becomes aware that some or all of the issued benefits within the overpayment period were expunged. Financial Services Payment Services staff expunges food benefits remaining in a household's EBT account when the household has not accessed the account for one year.

(e) Monthly statement. A monthly statement computer-generates to the household around the 20th day of each month, informing the household of the remaining debt obligation.  • 2

(f) Reconsideration of repayment plan. The client may request reconsideration of the repayment plan by submitting information regarding changes in family and financial circumstances directly to AFS BIR. AFS BIR staff makes adjustments to the repayment plan when circumstances warrant.

(g) Consequences of a delinquent claim. When an overpayment claim becomes delinquent, AFS BIR staff must refer it to the Treasury Offset Program (TOP) for collection per (g) of this Section or use other involuntary collection actions including, but not limited to:

(1) referrals to collection and/or other similar private and public sector agencies;

(2) state tax refund and lottery offsets;

(3) wage garnishments;

(4) property liens; and

(5) small claims court.

(h) Referrals for TOP. AFS BIR staff refers delinquent overpayment claims to TOP for collection when criteria in (1) of this subsection are met. Debts are collected in TOP through interception of federal monies including, but not limited to, federal income tax refunds, Social Security Administration benefits, and federal employee wages. The client may be responsible for paying any collection or processing fees charged by the federal government.

(1) TOP criteria are, the:

(A) amount owed must be at least $25;

(B) claim is delinquent by 120-or more calendar days and legally enforceable;

(C) claim is not part of a bankruptcy stay, under litigation, or under review per (3) of this subsection; and

(D) the debtor is not a current SNAP recipient in Oklahoma whose claim is being collected through allotment reduction or under an approved repayment plan.

(2) At least 60-calendar days before referring an overpayment claim to TOP, AFS BIR staff notifies the person of the intended referral. AFS BIR staff mails the 60-calendar day notice to the address provided by TOP. Information contained in the notice includes:

(A) the debtor's Social Security number;

(B) the citation of the statutory authority for the offset;

(C) instructions on how to avoid the TOP referral;

(D) the right to request a review of the intended action per (3) of this subsection;

(E) information regarding all TOP exemptions and restrictions;

(F) information regarding spousal protection from the offset; and

(G) the debtor's right to review applicable records.

(3) Request for review of intended action. To consider a request timely, the person being referred to TOP must request a review of the intended action in writing, within 60-calendar days of the date AFS BIR staff sends the 60-calendar day letter. The person's contention that the claim is not past due or legally enforceable is the basis for the review.

(A) A claim is not past due and legally enforceable when the person provides proof:

(i) the claim is paid in full;

(ii) the person cited for the offset is not the person who owes the claim;

(iii) that substantiates bankruptcy action; or

(iv) the household's benefit allotment is currently being reduced to repay the debt.

(B) AFS BIR staff conducts the requested review and sends the person written notification of the review decision within 30-calendar days of the request. The review decision notice informs the person requesting the review:

(i) if the debt is past due and legally enforceable;

(ii) if the overpayment is, or is not being referred to TOP; and

(iii) of his or her right to appeal the decision by requesting another review from the Food and Nutrition Services (FNS) Regional Office within 30-calendar days of the date on the review decision letter. The notice includes the FNS Regional Office address and the contact person's name.

(C) When, after review, AFS BIR staff finds the debt is past due and legally enforceable, the person may avoid referral to TOP by paying the overpayment claim in full or setting up an acceptable repayment agreement with AFS BIR staff.

(i) Case record retention. The Oklahoma Department of Human Services is mandated to retain case records containing overpayments for three years from the date: • 3

(1) the overpayment debt is paid in full; or

(2) no further action is taken to collect the debt because of reasons, such as the client dies or files bankruptcy that discharges the debt.

Revised 9-15-17

1.  Adult and Family Services (AFS) Benefit Integrity and Recovery (BIR) staff enters the recoupment code in the computer system to reduce the client's monthly benefit and inform the client of the new benefit amount.

2. The monthly statement contains the:

(1) statement date;

(2) client identification number;

(3) overpayment case number(s);

(4) client name and address;

(5) new overpayment amounts;

(6) itemized payment amount, payment dates, and new overpayment amounts since the last billing cycle;

(7) billing date;

(8) account balance; and

(9) overpayment balances by program.

3.To ensure the Oklahoma Department of Human Services meets the federal requirement, local county office staff must image all overpayment documents submitted to AFS BIR and all documents AFS BIR staff returns to the county office in the client's case record and label the imaged packet OVERPAYMENTS/DO NOT DELETE.