Tracking# 2012-00243 
FA/P 5/4/12, eff. 7/1/12 

I:/12012701.rtf
[I:/12012701.doc] 

(10 CCR 2506-1)

At line 1514130, change title of rule volume to: Food Assistance Program. 

At line 1514131, change manual to: Rule Manual Volume 4B Food Assistance. 

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[Instructions:  insert before line 1514142.] 
Revisions of Sections B-4430.22 and B-4430.32 were final adoption following publication at the 5/4/2012 State Board meeting (Rule-making#  12-1-27-1), with an effective date of 7/1/2012. Statement of Basis and Purpose and specific statutory authority for these revisions were incorporate by reference into the rule. These materials are available for review by the public during normal working hours at the Colorado Department of Human Services, Office of Enterprise Partnerships, Division of Boards and Commissions, State Board Administration.

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[Instructions:  replace line 2164483.] 
B-4430.22  Collecting Agency Error and Inadvertent Household Error Claims [Rev. eff. 7/1/12]

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[Instructions:  replace lines 939667 through 939675.] 
D.  Food assistance offices may pursue collection action against any household which has a member who was an adult member, a sponsor, or an authorized representative of any household that received an overissuance. The claim may also be offset against restored benefits owed to any household which contains a member who was an adult member, sponsor, or authorized representative of the original household.
Under no circumstances shall the office collect more than the amount of the claim. 
Food assistance offices may pursue other collection actions, as appropriate, to obtain restitution of a claim against any household which fails to respond to a written demand letter for repayment of an agency error, or inadvertent household error claim. If the food assistance office chooses to pursue other collection actions and the household pays the claim, payments shall be submitted to the Colorado Department of Human Services as required by Section B-4430.6, “Submission of Payments”. The food assistance office's retention of recoveries shall be based on the actual amount collected from the household through such collections actions.
E.  Food assistance benefits will be accepted as full or partial payment of an agency error or inadvertent household error claim if the household chooses to use this method of repayment. 
F.  Other collection actions which the food assistance office may pursue include the use of a collection agent or a civil action. 
G.  Offset Against Taxpayer's State Income Tax Refund 
In accordance with Sections 26-2-133, and 39-21-108, C.R.S., the state and county departments may recover overpayments of public or medical assistance benefits through the offset (intercept) of a taxpayer's state income tax refund. Rent rebates are subject to the offset procedure. This method may be used to recover overpayments which have been: 
•  determined by final agency action, or 
•  ordered by a court as restitution, or 
•  reduced to judgment.

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[Instructions:  replace line 939725.] 
B-4430.32  Collecting Intentional Program Violation/Fraud Claims [Rev. eff. 7/1/12] 

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[Instructions:  replace lines 939728 through 939749.] 
B.  Collection action shall be initiated by sending the household arid adult members a written demand letter for the overissuance, Form FS-14A (Demand Letter for Overissuance). This letter informs the household of its rights and responsibilities concerning repayment of the claim as well as providing information on the availability of free legal service.
If the household against which collection action has been initiated for the repayment of an intentional program violation/fraud claim is currently participating in the program and does not respond to the written demand letter within three business days (two days for mailing plus one business day) of the date the notice is mailed, the food assistance office shall reduce the household's food assistance allotment with the first allotment issued ten (10) calendar days from the date given for the household to respond. A total of thirteen (13) calendar days is actually given prior to invoking an allotment reduction.
If a household is not participating when collection action is initiated, and does not respond to the first demand letter, additional demand letters shall be sent at reasonable intervals, such as thirty (30) days. These letters shall be sent until the household has responded by paying or agreeing to pay the claim, until the criteria for suspending collection action have been met, or until the food assistance office initiates other collection actions.
C.  Section B-4430.22, “Collecting Agency Error and Inadvertent Household Error Claims”, Item C, contains guidelines on when a claim is considered delinquent. The same guidelines apply for an IPV claim.
D.  The food assistance office may also pursue other collection action, as appropriate, to obtain restitution of a claim against any household which fails to respond to a written demand letter for repayment of an intentional program violation/fraud claim. If the food assistance office chooses to pursue other collection actions and the household pays the claim, payments shall be submitted to the Colorado Department of Human Services in accordance with procedures in Section B-4430.6, “Submission of Payments”. The food assistance office's retention of recoveries shall be based on the actual amount collected from the household through such collection actions.
E.  Food assistance benefits will be accepted as full or partial payment of an intentional program violation/fraud claim if the household chooses to use this method of repayment. 
F.  Other collection actions which the food assistance office may pursue include the use of a collection agent or a civil action.
G.  Offset against Taxpayer's State Income Tax Refund
In accordance with Sections 26-2-133 and 39-21-108, C.R.S., the state and county departments may recover overpayments of public or medical assistance benefits through the offset (intercept) of a taxpayer's state income tax refund. Rent rebates shall be subject to the offset procedure. This method may be used to recover overpayments which have been: 
●  determined by final agency action, or
●  ordered by a court as restitution, or
●  reduced to judgment .
Prior to certifying the taxpayer's name and other information to the Department of Revenue, Colorado Department of Human Services shall notify the taxpayer in writing at his/her last known address that the state intends to use the tax refund offset to recover the IPV/fraud overpayment. In addition to the requirements of Section 26-2-133(2), C.R.S., the pre-offset notice shall include the name of the food assistance office claiming the overpayment, a reference to food assistance as the source of the overpayment, and the current balance owed.
Effective August 1, 1991, the taxpayer is entitled to object to the offset by filing a request for an evidentiary conference or state hearing within thirty (30) calendar days from the date that the state department mails its pre-offset notice to the taxpayer. In all other respects, the procedures applicable to such hearings shall be those which are stated elsewhere in this staff manual. At the hearing on the offset, the county department or ALJ shall not consider whether an overpayment has occurred, but may consider the following issues if raised by the taxpayer in his/her request for a hearing: whether:
1.  The taxpayer was property notified of the overpayment
2.  The taxpayer is the person who owes the overpayment
3.  The amount of the overpayment has been paid or is incorrect
4.  The debt created by the overissuance has been discharged through bankruptcy.
H.  Federal Treasury Offset Program (TOP)
A delinquent IPV claim may also be submitted for a Federal Treasury Offset Program. The claim must be past due and legally enforceable.
A delinquent claim for the Federal Treasury Offset Program (TOP) is one which is past due more than ninety (90) calendar days but less than 10 years. A delinquent claim which is based on a debt which has been reduced to final judgment by a court order may be more than ten (10) years past due but must be less than twenty years past due. A clam is not considered delinquent if a fair hearing is pending concerning the claim. A claim is not considered delinquent if the claim has either been discharged by bankruptcy or is subject to the automatic stay of the bankruptcy court.
The same criteria and procedures that apply for an agency claim/inadvertent household error being referred for the Federal Treasury Offset Program will apply to the IPV claim. See Section B-4430.22, entitled “Collecting Agency Error and Inadvertent Household Error Claims”, for the detailed procedures.