SECTION 340:50-15-1. Scope and applicability

(a)   Scope and applicability. The scope and applicability of overpayment procedures contained in this Subchapter apply to Supplemental Nutrition Assistance Program (SNAP) food benefit issuance. Section 273.16 of Title 7 of the Code of Federal Regulations (7 C.F.R. § 273.16) contains federal requirements regarding disqualification for intentional program violations and 7 C.F.R. § 273.18 contains federal requirements regarding overpayment claims against households.

(b)   Overpayment claim definition. A SNAP food benefit overpayment occurs when a household receives more food benefits than it is entitled to receive or when benefits are trafficked.

(c)   Persons responsible for repaying an established overpayment claim. Refer to Oklahoma Administrative Code (OAC) 340:50-15-6 for repayment procedures. Persons responsible for repaying an established overpayment claim include:

(1)   every adult included in the food benefit allotment, when the overpayment or benefit trafficking occurred; and

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

(d)   Overpayment referral. When the worker determines an overpayment occurred, the worker sends an overpayment referral to Adult and Family Services (AFS) Benefit Integrity and Recovery (BIR) for overpayment classification and establishment. The overpayment referral consists of a completed Form 08OP005E, Report of Food Benefit (FB) Overissuance, and supporting documents. Reasons to submit an overpayment referral to AFS BIR include, but are not limited to, when:

(1)   the household:

(A)   failed to provide the Oklahoma Department of Human Services with correct or complete information;

(B)   failed to report changes in household circumstances per OAC 340:50-9-5;

(C)   chose to continue to receive benefits pending a fair hearing decision and the:

(i)   fair hearing decision finds the household ineligible or eligible for fewer benefits; or

(ii)   household withdraws the fair hearing request after food benefits were reopened or increased, pending the outcome of the hearing; or

(D)   trafficked SNAP food benefits per OAC 340:50-15-25;

(2)   the worker:

(A)   incorrectly computed the household's income or deductions or otherwise issued an excess benefit allotment;

(B)   failed to take prompt action on a change reported by the household resulting in an over-issuance;

(C)   incorrectly applied rules that resulted in an over-issuance or issuing benefits to an ineligible household;

(D)   incorrectly issued or renewed food benefits to an ineligible household; or

(E)   failed to reduce food benefits because the household's public assistance benefits changed;

(3)   the computer system incorrectly issued benefits to a household;

(4)   an AFS SNAP Quality Control staff discovered the over-issuance during a quality control review; or

(5)   the Oklahoma Inspector General (OIG) Investigative Unit discovered an over-issuance.

(e)   Overpayment classification and claim establishment. Per OAC 340:50-15-4, AFS BIR staff classifies an overpayment as an inadvertent household error, intentional program violation, or agency error and establishes the overpayment claim per OAC 340:50-15-3. Refer to OAC 340:50-15-2 for instances when an overpayment claim is not required.

(f)   Development of repayment plan. After AFS BIR staff verifies and calculates the overpayment claim, staff establishes the claim by notifying the debtor household of the overpayment debt. Once established, AFS BIR staff develops a repayment plan with the household per OAC 340:50-15-6.

(g)   Disqualification penalty. When a person commits an intentional program violation, the person is disqualified from receiving food benefits for a period of time per OAC 340:50-15-25, in addition to being responsible for repaying the overpayment debt.

[Source: Amended at 8 Ok Reg 3463, eff 7-31-91 (emergency); Amended at 9 Ok Reg 3945, eff 6-10-92 (preemptive); Amended at 9 Ok Reg 2473, eff 6-25-92; Amended at 10 Ok Reg 147, eff 9-14-92 (preemptive); Amended at 10 Ok Reg 1821, eff 5-13-93; Amended at 12 Ok Reg 1577, eff 1-27-95 (emergency); Amended at 12 Ok Reg 2443, eff 6-26-95; Amended at 19 Ok Reg 395, eff 12-1-01 (emergency); Amended at 19 Ok Reg 1119, eff 5-13-02; Amended at 20 Ok Reg 2924, eff 10-1-03 (emergency); Amended at 21 Ok Reg 841, eff 4-26-04; Amended at 25 Ok Reg 1329, eff 6-1-08; Amended at 26 Ok Reg 840, eff 6-1-09; Amended at 27 Ok Reg 1241, eff 6-1-10; Amended at 33 Ok Reg 1607, eff 9-15-16; Amended at 34 Ok Reg 1504, eff 9-15-17]