7740 Overissuance Due to Incorrect Sponsor Information (Food Assistance)

7740 Over-issuance Due to Incorrect Sponsor Information (Food Assistance) - Any non-citizen and his/her sponsor shall be, jointly and separately, liable for repayment of any over-issuance of coupons resulting from incorrect information provided by the sponsor. However, if the non-citizen's sponsor had good cause or was without fault for supplying the incorrect information, the non-citizen's household shall be solely liable for repayment of the over-issuance.

Good cause, under this provision, shall include, but not be limited to, the failure of the sponsored non-citizen to provide correct information to his/her sponsor regarding the information needed.

Where the sponsor did not have good cause, the agency shall establish a claim against both parties at the same time by completing one claim determination for the case and initiating collection action against both the sponsor and the non-citizen. Only the amount of the claim shall be collected. Any amounts repaid in excess of the total claim shall be returned to the non-citizen's sponsor and/or the non-citizen's household.

7741 Collecting Claims Against Sponsors - The agency shall initiate collection action by sending the non-citizen's sponsor a written demand letter which informs the sponsor of the amount owed, the reason for the claim, and how the sponsor may pay the claim. The sponsor shall also be informed that he/she will not be held responsible for repayment of the claim if the sponsor can demonstrate that he/she had good cause or was without fault for the incorrect information having been supplied to the agency. In addition, the agency shall follow up the written demand letter with a personal contact, if possible. The sponsor is entitled to a fair hearing either to contest a determination that the sponsor was at fault for providing incorrect information or to contest the amount of the claim.

The agency may pursue other collection actions as available and appropriate to obtain payment of a claim against any sponsor who fails to respond to a written demand letter. The agency may terminate a collection action against a sponsor at any time if there is documented evidence that the sponsor cannot be located or when the cost of further collection action is likely to exceed the amount which can be recovered.

If the non-citizen's sponsor responds to the written demand letter and is financially able to pay the claim at one time, the agency shall collect a lump sum cash payment. The agency may negotiate a payment schedule with the sponsor for repayment of the claim, as long as payments are provided in regular installments.

7742 Collecting Claims Against the Sponsored Non-citizen's Household - Prior to initiating collection action against the household of a sponsored non-citizen for repayment of an over-issuance caused by incorrect information supplied regarding the non-citizen's sponsor or sponsor's spouse, the agency shall determine whether such incorrect information was supplied due to inadvertent error or intentional misrepresentation or fraud on the part of the non-citizen. If sufficient documentary evidence exists to substantiate that the incorrect information concerning the non-citizen's sponsor or sponsor's spouse was provided due to intentional misrepresentation or fraud on the part of the non-citizen, the agency shall pursue the case in accordance with 11000 and 11200 . If the agency determines that the incorrect information was supplied due to misunderstanding or unintended error on the part of the sponsored non-citizen, the claim shall be handled as a client error in accordance with the procedures of 11121.2 .