500 Intentional Program Violation Claim

A claim for overissuance shall be pursued as an intentional program violation claim if an Administrative Disqualification Hearing, or a court of appropriate jurisdiction, has found that a household member committed an intentional program violation, or if the individual has filed a signed waiver of his or her right to an Administrative Disqualification Hearing or entered into a consent agreement with the court. All claims established under the Food Stamp Act and future claims shall be collected in accordance with 106 CMR 367.500. (A) Calculating the Amount of an Intentional Program Violation Claim. The amount of an overissuance claim due to an intentional program violation is determined by calculating the difference between the amount actually received and the amount the household should have received during the time period at issue. When determining the amount of benefits the household should have received, the Department shall not apply the 20% earned income deduction to that portion of earned income which the household intentionally failed to report. The Department shall not include any portion of an overissuance that occurred in a month more than six years from the date the overissuance was discovered. If the household member is determined to have committed an intentional program violation by knowingly, willfully, and with deceitful intent failing to report a change in its household circumstances, the first month benefits were overissued shall be the first month the change would have been made effective had it been reported on time. (B) Collection of Intentional Program Violation Claim. (1) If the household member is found to have committed an intentional program violation at either an Administrative Disqualification Hearing or by a court of appropriate jurisdiction, or if the individual has entered into a consent agreement with the court or filed a signed waiver in accordance with 106 CMR 367.660, the Department shall send an IPV claim demand letter and a repayment agreement letter in accordance with 106 CMR 367.825 unless: (a) the household has already repaid the claim; (b) the Department has documentation which shows that no member of the household can be located; or (c) the legal representative prosecuting a member of the household for intentional program violation advises in writing that collection action will prejudice the case. (2) If the intentional program violation claim has not been repaid and a completed and acceptable signed repayment agreement letter has not been received by the Department within ten days of the date it was mailed, collection action shall be initiated by automatically reducing the household's benefit allotment each month. Any time benefits are automatically reduced due to an IPV, the allotment shall be reduced by 20% of the household's entitlement before sanctions, or $20, whichever is greater. Automatic benefit reduction shall continue until the claim is repaid. The acceptance of a completed and signed repayment agreement or renegotiation, in accordance with 106 CMR 367.500(B)(6), may change the method of repayment. The repayment agreement shall also state that failure at any time to honor the terms of a returned agreement shall result in benefit reduction to last until the terms are honored or the claim is repaid. In addition to the demand letter, contact with the household shall be made when appropriate. (3) If the household agrees to pay the claim, collection shall be in accordance with (4) The Department may lower a household's allotment below the minimum level in order to collect an intentional program violation claim. (5) If the household can be located but is not participating in SNAP, the Department shall attempt to collect the claim, and defer benefit reduction until the household resumes participation in the program. (6) Renegotiation of the repayment agreement may be requested by the household or the Department any time there is a substantial change in circumstances. At no time shall an agreement be made to collect less per month than could be collected through automatic benefit reduction. (C) Suspending Collection of a Claim Due to an Intentional Program Violation. Collection action shall be suspended at any time the household is no longer participating in SNAP and there is documentation that: (1) the cost of further collection action is likely to exceed the amount that can be recovered and the Department has sent at least one demand letter for claims under $100, at least two demand letters for claims between $100 and $400 and at least three demand letters for claims of more than $400; or (2) neither the household which contains the individual who committed the IPV, nor any individual responsible for the overissuance can be located. (D) Terminating Collections. A claim shall be determined uncollectible after three years in a suspended status. (E) Changes in Household Composition. If the household composition has changed since the overissuance occurred, collection action shall be initiated against any or all of the adult members of a household at the time an overissuance occurred. If a change in household composition occurs, the Department may pursue collection action against any household that has a member who was an adult member of the household that received the overissuance. The Department may also offset the amount of the claim against restored benefits owed to any household that contains a member who was an adult member of the original household at the time the overissuance occurred. The Department may not, under any circumstances, collect more than the amount of the claim. In pursuing claims, the Department may use any of the appropriate methods of collecting payments.