Code of Maine Rules › 10 - DEPARTMENT OF HEALTH AND HUMAN SERVICES › 144 - DEPARTMENT OF HEALTH AND HUMAN SERVICES - GENERAL › Chapter 301 - SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) RULES › FS-700's › 700 - ADMINISTRATION PROCEDURES › Section 144-301-700-FS 777-2 - Intentional Program Violation (IPV)

Current through 2024-29, July 17, 2024
GENERAL RULE
- Any suspected program
						violation shall be investigated. When there is sufficient documentary evidence
						to substantiate that the violation was intentional, initiate an administrative
						disqualification hearing, regardless of the current eligibility status of the
						individual. A second party, preferably the immediate supervisor, shall review
						the evidence prior to initiating a disqualification hearing.
Do not initiate any collection activity until a
						determination has been made as to whether or not an IPV has occurred.
DEFINITION OF INTENTIONAL PROGRAM
						VIOLATION
Federal rules at
						7 CFR
						273.16(c) state that an
						intentional program violation has been committed when:
1. A false or misleading statement has
					 intentionally been made. or
2. A
					 household member has intentionally misrepresented, concealed, or withheld
					 facts.
or
3. A
					 household member has intentionally committed any act that constitutes a
					 violation of the Food Stamp Act, the Food Stamp Program Regulations, the Food
					 Supplement Program regulations or any state statute relating to the use,
					 presentation, transfer, acquisition, receipt, trafficking (see FS 999-1 pages 5
					 and 6), or possession of the food supplement benefit.
The IPV determination can be made by a department hearing
						officer, a signed Waiver of Hearing, or a judge. The Eligibility Specialist may
						choose to begin the disqualification process with an interview, at which time
						the accused individual may choose to sign a Waiver of Hearing.
NOTE
: While most Intentional Program
						Violations result in a monetary loss to the program, a household's willful
						misrepresentation is sufficient grounds to pursue an IPV even when no
						overpayment of Food Supplement benefits occurred.
If it is determined that the violation does not meet the
						definition of a IPV, collection action shall be initiated as an unintentional
						or agency claim, as appropriate.
REFERRAL FOR CRIMINAL PROSECUTION Individuals determined
						to have committed an IPV through the administrative disqualification process
						are automatically referred to the Fraud Investigation and Recovery Unit (FIRU)
						via the computer, when IPV overpayments are input into the computer system.
						FIRU staff consider these individuals for prosecution.
NOTE
: Do not delay the FS disqualification
						penalty and collection action pending prosecution.
ADMINISTRATIVE DISQUALIFICATION
						PROCEDURES
Written notice to the person accused of the violation
						shall be mailed at least 45 days in advance of the scheduled hearing in order
						to assure that the notice is received 30 days prior to the hearing. The first
						notice shall be mailed "CERTIFIED/RETURN RECEIPT REQUESTED/RESTRICTED
						DELIVERY". The notice shall contain:
1)
					 the date, time and place of the hearing.
2) the charges against the household
					 member.
3) a summary of the
					 evidence, and how and where it can be examined.
4) a warning that the decision will be based
					 solely on information provided by the Food Supplement Program office if the
					 household fails to appear at the hearing.
5) a statement that the household member or
					 representative will have 10 days from the date of the scheduled hearing to
					 present good cause for failure to appear in order to receive a new
					 hearing.
6) a warning that a
					 determination of intentional program violation will result in a 1 year
					 disqualification for the 1st violation (six months if the alleged IPV offense
					 occurred before 8/22/96), 2 year disqualification for the 2nd violation (one
					 year if the alleged IPV offense occurred before 8/22/96), and permanent
					 disqualification for the 3rd violation and a statement of which penalty is
					 applicable to the case scheduled for a hearing.
NOTE
: To determine the approximate
						disqualification period, the Disqualified Recipient Subsystem (DRS) must be
						checked for prior IPV(s) in other states. If it is discovered that an IPV
						occurred in another state, independent verification of the IPV must be obtained
						and notice provided to the applicable household member before the DRS
						information can be used in determining an appropriate disqualification period
						for any subsequent IPV. A recipient has the right to request a fair hearing if
						the recipient disagrees with the length of the disqualification that DRS
						indicates was imposed by a State. However, the fair hearing cannot reverse a
						determination established at a previous administrative disqualification hearing
						that the recipient has committed an Intentional Program Violation.
A copy of the hearings procedures and the opportunity to
						waive the right to the hearing shall also be provided.
The person is entitled to one postponement, provided it
						is requested at least 10 days prior to the scheduled date. The postponement
						shall be for no more than 30 days. Requests for postponements within 10 days of
						the scheduled date may be granted, provided both the local office and the
						accused agree in writing.
If the notice is returned marked "undelivered" or
						accepted by someone other than the addressee, personal service shall be
						arranged by any other method which provides proof of receipt at least 30 days
						prior to the hearing. It will be necessary to reschedule the hearing, allowing
						another 45 days. Hearings will be scheduled and arranged by the local office,
						and will be held on Mondays and Fridays. Copies of all notices and waivers will
						be sent to the Hearings Unit. When the accused replies that he wants a hearing,
						the Hearings Unit shall be notified of the time and place.
If the notice is returned marked "refused", it shall be
						assumed that the addressee received notice.
Should the client fail to appear at the hearing, and the
						notice was received at least 30 days prior to the hearing date, the hearing
						shall still be conducted. The hearing officer will base his decision on the
						evidence presented by the Department.
TIME LIMITS
- The Department has ninety days
						from the date the hearing notice is received to hold the hearing, render the
						decision, and notify the household.
PARTICIPATION PENDING A HEARING
- Continued
						eligibility and benefit level shall be determined, as for any other
						household.
CRITERIA FOR DETERMINING INTENTIONAL PROGRAM
						VIOLATION
- The hearing officer shall base the determination on clear
						and convincing evidence which demonstrates that the household member committed,
						and intended to commit, an intentional program violation as defined at
						7 CFR 273.16
						(c) and page 1 of this section of the Maine
						Food Supplement Manual.
DISQUALIFICATION PENALTIES
- The
						disqualification applies to the individual who was determined to have committed
						an intentional program violation. The disqualification period will begin with
						the first month which follows the date the household member is sent written
						notification of the disqualification that results from the hearing decision.
						The disqualification periods are as follows:
1) first violation - 1 year (6 months if the
					 alleged IPV offense occurred before 8/22/96);
2) second violation - 2 years (one year if
					 the alleged IPV offense occurred before 8/22/96);
3) third violation - forever.
Certain intentional program violations carry more severe
						penalties. Those violations and their disqualification periods are as
						follows:
1) a first finding by a court
					 that the recipient used Food Supplement benefits or FS EBT card in exchange for
					 controlled substances - 2 years;
2)
					 a second finding by a court that the recipient used Food Supplement benefits of
					 FS EBT card in exchange for controlled substances - forever.
3) a first finding by a court that the
					 recipient has used Food Supplement benefits or FS EBT card in exchange for
					 firearms, ammunition, or explosives - forever.
4) conviction of the individual for
					 trafficking (see FS 999-1 pages 5 and 6) Food Supplement benefits or FS EBT of
					 $500 or more - forever.
5) a
					 finding by a hearing officer or court that a fraudulent representation was made
					 by an individual with respect to his/her identity or place of residence in
					 order to receive multiple (simultaneous) Food Supplement benefits - 10 years.
See FS 444-4 for treatment of income and assets of
						disqualified individuals.
NOTE
: All disqualifications for violations
						committed prior to May 1, 1983, will be counted as a single violation for
						purposes of determining penalties.
NOTIFICATION OF DECISIONS
- When the
						household member is determined to have committed an IPV, a written notice shall
						be provided prior to the disqualification. It shall note the date the
						disqualification begins and ends. Advance notice is not required. See FS 777-3
						for collection action.
DISQUALIFIED RECIPIENT SUBSYSTEM
						(DRS)
DRS is a centralized national database which contains
						information on IPV disqualifications from all of the states. Updates are
						received by the national database and matched with Maine's Food Supplement
						Program caseload on a monthly basis. When a match occurs, the originating state
						must be contacted for independent verification of the IPV disqualification
						information. This information must be used to determine if a recipient should
						be serving a disqualification period imposed by another state and to determine
						the proper disqualification penalty for an individual found or suspected to
						have committed an IPV. The originating state should be asked whether the IPV
						disqualification is under appeal and requested to inform you if the IPV
						disqualification is reversed. If an IPV disqualification is reversed, the
						individual must be reinstated if the household is eligible and benefits lost as
						a result of the disqualification must be restored.
A recipient has the right to request a fair hearing if
						the recipient disagrees with the length of the disqualification that DRS
						indicates was imposed by a State. However, the fair hearing cannot reverse a
						determination established at a previous administrative disqualification hearing
						that the recipient has committed an Intentional Program Violation.
Once a disqualification period has been imposed against a
						currently participating member, the disqualification period continues
						uninterrupted until completed. The household would be subject to a claim for
						any benefits overissued as a result of the disqualified individual's
						participation during the period of
						disqualification.